Cracks in the Credit Boom

The recent bankruptcies of Tricolor Holdings and First Brands Group have raised fears of contagion—but are these failures signs of systemic risk or just isolated incidents from bad actors?

With the recent bankruptcies of Tricolor Holdings, a subprime auto lender, and First Brands Group, an auto parts supplier, it seems everyone is worried about what this means for the current environment. Jamie Dimon, whose bank just posted results on pace for another record year of profits, commented in reference to the two implosions:

“My antenna goes up…