Jim Chanos Sees More Corporate Collapses After First Brands: FT

Short seller Jim Chanos predicts that more corporate collapses in the private market could happen after First Brands Group’s bankruptcy, in an interview with the Financial Times.

• “I suspect we’re going to see more of these things, like First Brands and others, when the cycle ultimately reverses,” Chanos says
• With the advent of private credit, institutions are putting money into “this magical machine that gives you equity rates of return for senior debt exposure,” he says
  • Chanos adds that high yields for seemingly safe investments “should be the first red flag”
• NOTE: First Brands Lenders Hand Lifeline to ‘Effectively ...