(Bloomberg) – An asset manager by a unit of Jefferies Financial Group Inc. has been controlled, nearly a quarter of its $ 3 billion trading portfolio in debtors at the Auto Parts supplier First Brands Group Inc. connected, sunken, the bank announced on Wednesday. The Portfolio of Point Bonita Capital has invested about $ 715 million in debtors conducted by the first brands’ customers, including Walmart Inc. and Autozone Inc. Problems with the debtors emerged on September 15 when the company stopped making these payments. Jefferies also said that most of his own exposure to the narrow bank pants enterprise came through Point Bonita, a division of the firm’s Leucadia asset management that manages the trading financing assets on behalf of the third-party investors. Leucadia has a $ 113 million shares in that fund, according to the statement. In addition, Jefferies has a 50% stake in Apex Credit Partners, which owns about $ 48 million in loans to first brands through subpoening commitments. Analysts at Morgan Stanley estimated that Jefferies will face $ 44.6 million in possible losses linked to first brands. They noted that it would be a ‘manageable’ hit for the tangible shareholders’ equity. The announcement reveals more about Jefferies’ tires with First Brands, a supplier of the wiper blades and oil filters who filed for bankruptcy last week after investigating a refinancing of investors debt. Jefferies marketed the refinancing for the business, and many of Wall Street’s biggest names imposed losses with their exposure to first brands. Court documents from earlier this month showed that funds under the UBS group AG umbrella are facing more than half a billion dollars of exposure to the car supplier. It is the latest bloating in the dark world of trade financing, a sector that has been hit by numerous fraud over the past few years, often facing banks and insurers. The largest bust in the industry came in 2021, when Greensill Capital applied for insolvency after bank deposits and insurance funds were channeled to risky companies in short -term loans, and eventually contributed to the collapse of the Credit Suisse Group AG. Jefferies noted that First Brands in bankruptcy indicated that his special advisers were investigating the receipt of the debtors after receiving third-party factors and whether debtors may have been taken into account more than once. (Updates with Morgan Stanley Analyst commentary in the fifth paragraph. An earlier version of this story was corrected to explain the nature of Jefferies’ exposure to first brands.) More stories like this are available on Bloomberg.com © 2025 Bloomberg LP
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