DISTRESS WATCH: First Brands Fuels Increase in US Credit Stress

The crisis of US auto parts firm First Brands added to the global tally of distressed debt, bucking a global trend of easing credit conditions.

The total amount of bonds and loans in Bloomberg News’ global distressed debt tracker decreased 1.6% to $479.7 billion during the week ended Sept. 19. But while the measure declined 6.9% in EMEA and 1% in APAC, it rose by 0.9% in the Americas to $186.1 billion.

It was the first weekly increase in the US distressed tally in about a month, with the measure 1.7% higher at $148.8 billion, as First Brands saw ...