$4B wiped out: First Brands bankruptcy sends shockwaves through CLO markets and exposes hidden cracks in Wall Street’s debt machine. More corporate failures to come?

First Brands BANKRUPTCY shakes credit markets:

The collapse WIPED OUT $4 billion in leveraged loans held across ~80 CLOs from PGIM, Franklin Templeton, Blackstone, and others.

The sudden failure is a major warning for the broader credit market and leveraged loan sector…

More corporate failures to come?

Shares of Zions Bancorp plunged 12% after it disclosed a $50 million charge-off for a loan underwritten by its wholly-owned subsidiary, California Bank & Trust, in San Diego.
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Regional banks, Jefferies shares tank as concerns about sour loans grow on Wall Street