Oct. 10 at 6:56 AM
$SPY $DIA $AIG $COFAF $QQQ
A First Brand Disaster.
The financial meltdowns of the past usually start with a generally unknown giant falling into credit default.
This pushes their lenders to have to cover. Their options at this point are usually limited. In general they could: overextend and play down impact, write-down and hurt margin/revenue, litigate and add costs, take on more debt (generally cheaper and riskier) in hopes to supplement, government bailout and even default.
This cycle then repeats down stream. It is quite a viscious virtuous circle.
All these actions lead to increasing investor scrutiny. Increased costs to borrow and increased liabilty on existing debt for each cascading default.
Bubbles don't happen because of valuations, they happen because misallocated investment and unhealthy credit markets.
https://www.bloomberg.com/news/articles/2025-10-09/first-brands-how-jefferies-ubs-ended-up-exposed-to-its-collapse
