The U.S. Securities and Exchange Commission is investigating Jefferies Financial Group Inc. (NYSE:JEF) over whether the investment bank adequately informed investors about its exposure to First Brands Group, the now-bankrupt car parts supplier whose collapse triggered widespread scrutiny across the private credit sector.
According to an exclusive Financial Times report on Thursday, the SEC's civil probe focuses on Jefferies' Point Bonita Capital fund, which held approximately $715 million in receivables linked to First Brands before the auto parts company filed for Chapter 11 bankruptcy in September, burdened with $12 billion in debt.
