UBS is assessing the effect of First Brands’ bankruptcy on its investment funds, with exposure totaling over $500 million. The U.S. auto parts supplier filed for bankruptcy following financial irregularities, triggering concerns across private credit and corporate debt markets.
- UBS exposure spans O’Connor hedge fund units and other fund structures via supply chain finance agreements.
- Jefferies also disclosed $715M exposure through a fund.
- UBS emphasizes focus on protecting client interests while determining potential performance impacts.
While the economic impact is manageable for UBS, analysts note the reputational and regulatory implications amid ongoing Swiss banking capital rule debates.