12 Sep 2025
"Apollo Global Management has amassed a short position against the debt of a US automotive parts supplier that has come under scrutiny for its accounting policies and financing techniques.
Apollo holds a credit default swap against First Brands Group, according to five people familiar with the matter, an Ohio-based seller of windscreen wipers and fuel pumps that last month shelved a $6bn loan deal because of concerns about its financial reporting.
The derivative contract means that Apollo will profit if FBG fails to continue paying its debts. The trade has pitted one of the largest private credit specialists on Wall Street, with $840bn in assets, against a company that has borrowed billions of dollars away from the glare of public debt markets.
In order to short FBG’s private debt, Apollo obtained a so-called “bespoke” contract written against the company’s loans, according to people familiar with the trade. They added that the firm had held the position for at least as long as a year and had paid a significant amount in fees to maintain the short".
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