The unexpected collapse of auto parts supplier First Brands has sent shockwaves through Wall Street, revealing significant vulnerabilities in private credit markets. Billions of dollars are reportedly unaccounted for, alarming creditors and investors as a federal inquiry has been initiated. Major firms such as Jefferies and UBS face considerable exposure, with Jefferies disclosing a $715 million investment tied to First Brands. The bankruptcy has raised concerns of a potential financial contagion, akin to previous market crises, and numerous stakeholders, including insurers and investors, are preparing for the fallout. The situation has ignited discussions regarding the implications for trade finance accounting practices and the broader risks associated with private lending.