Debt in Disguise

November 2007 by

Why does WESCO International Inc. use accounts-receivables securitization, a form of financing so closely linked to the subprime-mortgage meltdown? “Because we can,” says senior vice president and CFO Stephen Van Oss. Van Oss is speaking only partly tongue-in-cheek. His company, a $5.3 billion distributor of electrical products, has a high-quality customer base and a robust IT platform for tracking the performance of receivables, capabilities demanded by banks and credit rating agencies.

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