US regional lender Western Alliance Bancorp faces exposure to the collapse of auto-parts supplier First Brands Group through a leveraged facility with a fund linked to Jefferies Financial Group Inc.
Point Bonita Capital, a division of Jefferies’ Leucadia Asset Management that manages trade-finance assets on behalf of third-party institutional investors and others, has about $715 million invested in receivables owed to First Brands, mostly from Walmart Inc., AutoZone Inc., NAPA, O’Reilly Automotive Inc. and Advance Auto Parts Inc., Jefferies disclosed Wednesday. That’s nearly a quarter of its $3 billion trade-finance portfolio.
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