Apollo Global Management (APO) has amassed a short position against the debt of First Brands Group, using a credit default swap that will pay off if the supplier fails to service its loans, the Financial Times reported Friday, citing people familiar with the matter.

The contract is reportedly a bespoke CDS written against FBG's loans, and Apollo has held the position for at least a year, paying substantial fees to maintain the short.

First Brands Group is an Ohio-based seller of windshield wipers and fuel pumps, and last month shelved a planned $6 billion loan deal due to concerns over its financial reporting, the news outlet reported.

FBG disclosed more than $2 billion of invoice-factoring facilities at the end of 2024 and has hired Deloitte for a quality-of-earnings review, the FT reported.

Apollo and First Brands Group did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)