More Banks See Exposure Amid Loose Underwriting Fears

While some may disagree about the threat private credit poses to markets, a new crisis reared its head on Thursday. It seems that Barclays and Atlas Partners—the structured-credit arm of Apollo Global Management—are among firms that helped arrange more than $2.7 billion of loans to a UK mortgage-finance company that’s unraveled amid allegations of financial irregularities.

Market Financial Solutions collapsed into a UK form of insolvency yesterday, with the judge overseeing the case citing accusations of fraud and double-pledging of assets. Barclays and Atlas each lent it hundreds of millions of dollars. Jefferies Financial Group and Wells Fargo are also among those with exposure.