Rimsa savings is a savings institution that provided Carson Company with a mortgage for its office building. Rimsa currently offered to refinance the mortgage if Caron Company will change to a fixed-rate loan to an adjustable rate-loan. Assume there is an upward-sloping yield curve.

If Rimsa maintains the mortgage on the office building purchased by Carson Company, who is the ultimate source of money that was provided for the office building? If Rimsa sells the mortgage in the secondary market to a pension fund, who is the source that is essentially financing the office building? Why would a pension fund be willing to purchase this mortgage in the secondary market?