Inside the $12 Billion Bankruptcy That Has Wall Street Worried | Robert Smith of the Financial Times

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Robert Smith, Corporate Finance Editor at the FT, joins Jack to discuss the recent $12 billion bankruptcy of First Brands Group that has shocked the financial world. He explains the history of First Brands, its collapse, and the company’s ongoing bankruptcy proceedings. Robert also discusses the larger world of private credit and if First Brands is the first of many ‘credit cockroaches.’ The bankruptcy is of particular interest given the fact that it could be a signal of further problems on the horizon of the private credit market. Recorded on November 21st, 2025. Follow Jack Farley on Twitter https://x.com/jackfarley96 Follow Monetary Matters on: Apple Podcasts https://rb.gy/s5qfyh Spotify https://rb.gy/x56dx5 YouTube https://rb.gy/dpwxez Follow Robert Smith on Twitter https://x.com/BondHack Follow Robert Smith on Bluesky https://bsky.app/profile/bondhack.ft.com Read Robert’s FT Articles https://www.ft.com/robert-smith First Brands Collapse in a nutshell https://on.ft.com/48ptTUu Timestamps 00:00 Intro 00:51 What is First Brands Group (FBG)? 02:51 Debt Structure of First Brands Group (FBG) 07:34 FBG's Off-Balance-Sheet Financing 09:07 FBG's Funding Sources 10:40 Onset Financial: FBG's Hidden Creditor 16:16 Bank Exposure of First Brands Fallout 19:09 Private Credit vs. Direct Lending 22:19 Asset Backed Finance with Missing Assets 25:48 First Brands Restructuring 27:31 Debtor-in-Possession Loan 29:11 Bankruptcy Financing 30:35 Underlying Value of First Brands’ Assets 34:31 Private Credit and Defaults 42:25 Jefferies & UBS 47:04 Raistone 47:33 Institutional Response to Bankruptcies 50:28 Private Credit Ratings and Industry Growth #bankruptcy #economics #credit #bonds #finance #macro #privatecredit #banking #macroeconomics #financialtimes #markets #collapse