By Manya Saini
(Reuters) -Auto parts maker First Brands’ bankruptcy has sent ripples through credit markets in recent weeks, casting a spotlight on the exposure of some of the world’s top financial institutions.
The company filed for bankruptcy protection late last month, listing more than $10 billion in liabilities, highlighting the scale of losses facing lenders and investors.
The bankruptcies of First Brands and car dealership Tricolor have prompted soul-searching on Wall Street and stoked worries of weakness in the credit market.
“Although the broader risk of contagion appears contained for now, a loss of confidence could still trigger significant stress,” Morningstar analyst Kenneth Lamont said.
“A broader sell-off in private credit and mass redemptions would expose these vehicle