This week we continue our conversation with Mary Katherine DuBose, Co-Head of Asset Backed Finance and Securitization, Asset-Backed Finance, Wells Fargo Securities. ABF provides direct structured lending as well as the underwriting and distribution of asset-backed securities for over 500 clients and a risk portfolio of approximately $120BN across consumer, commercial, residential and corporate debt sectors. Second of two parts – View part one.
The Lead Left: And your warehouses stay in place, correct? Once the CLO is done.
Mary Katherine DuBose: Yes. It is important to note that the CLOs are not takeout vehicles. Our warehouse facility stays in place. It’s drawn, paid down with the permanent vehicle, and then redrawn. Couple that with our research capabilities, which you know well, gives us an important independent view. All in all, Wells Fargo is fully invested in the asset class.
TLL: Do you have a view on liability spreads, where they’re headed, particularly in the middle market?