Western Alliance, Jefferies, UBS and the First Brands Debacle - Why It Isn’t a Credit Crisis (Yet) ...

First Brands has rippled through the finance world, and yes, my DMs now read like an auction for “worst takes.” Let’s set one thing straight: First Brands Group is no fly‑by‑night. Think Big Tom Callahan in Tommy Boy, selling oil filters and brake pads across America, but at institutional scale. First Brands is a major U.S. auto‑parts aftermarket player, owning brands like FRAM (filters), Raybestos (brake systems), TRICO/ANCO (wipers), and more. The company grew via aggressive, debt-fueled acquisitions and leaned hard on invoice factoring and receivables financing to turn future cash into immediate liquidity. In September 2025, it filed for Chapter 11 bankruptcy, disclosing over $11 billion in liabilities and raising red flags about documentation irregularities, off-balance-sheet financing, and possible double‑pledging of invoices.

So is this going to take down Jefferies, UBS, and Western Alliance and leave them in a pile of smouldering rubble? That’s what the doomers will have you think … but you know how I feel about them.