Jefferies Reveals $715M First Brands Exposure

First Brands Group filed for Chapter 11 late last month with more than $10 billion in liabilities and stopped forwarding payments to creditors around Sept. 15, rattling the auto-parts supply chain. Jefferies disclosed that Point Bonita Capital, a Leucadia Asset Management fund it manages, holds roughly $715 million of receivables tied to First Brands, much of it owed by major retailers and auto‑parts buyers. Jefferies says its own direct exposure is about $161 million, including a roughly $113 million equity stake in Point Bonita, and is working with advisors to assess and protect investors’ rights. Jefferies’ subsidiary Apex Credit Partners also manages CLO assets that include about $48 million in First Brands term loans. The developments have prompted market turbulence and scrutiny of concentrated trade‑finance structures and potential knock‑on risks for regional banks, including possible exposure at Western Alliance via a leveraged facility tied to the Jefferies‑linked fund.