Here We Go Again: Billions Vaporized In Spectacular Private Credit Collapse

What happens when you mix the Tricolor's (failed) nonbank-finance ambitions to fill a gap - intentionally, we can now conclude - left in place by major banks, with First Brands desire to criminally rehypotecate its collateral twice, three, or more times, leaving bank landers with a huge ROI crater and one giant bag of nothing when they ask for their money back?

Why, you get the latest credit blowup: Market Financial Solutions (MFS) a UK bridging lender with a £2.4 billion loan book and over £2 billion in institutional funding lines, which has just collapsed in London to very little fanfare as it just the latest cockroach to emerge in the private credit bandwagon. And to prove that nobody has learned anything from last year's mega implosions of Tricolor, which handed out car loans to illegal aliens, and First Brands, whose specialty was devising delightfully arcane SPVs to make collateral disappear under the innocent guise of a car parts rollup, some of the names in the developing scandal are exactly the same: Banco Santander and Jefferies - both of which sank in the First Brands swamp - are once again scrambling to recoup whatever they can from an embattled company, only this time, they’re joined the "sophisticated" likes of Apollo’s Atlas SP Partners, Barclays, Wells Fargo and Castlelake.