AMERICAS DISTRESS DAILY: JPMorgan Warns of First Brands Fallout

The collapse of auto-parts supplier First Brands could have an indirect impact on the banking sector, with knock-on risks including legal claims and regulatory action, according to analysts at JPMorgan.

• The collapse shines a light on the growth in non-bank financial intermediation alongside the connections between banks, traditional asset managers and the private credit market, the analysts said.
• The analysts see the impact for UBS Group AG as primarily limited to its asset management business and not its balance sheet.
• The decline in Jefferies Financial Group Inc.’s share price in recent weeks reflects market concerns about indirect risks, as well ...