Reported about 15 hours ago
Jefferies Financial Group's asset management division has disclosed a significant investment of approximately $715 million in receivables associated with First Brands Group Inc., an auto parts supplier that recently filed for bankruptcy. This exposure forms part of Jefferies' broader $3 billion trade finance portfolio, primarily managed through Point Bonita Capital. Following the cessation of payments from First Brands on September 15, analysts have estimated potential losses for Jefferies at around $44.6 million, a manageable impact on shareholders' equity. The fallout highlights ongoing issues in the trade finance sector, which has been marred by recent fraud cases.
Source: YAHOO