According to @business, analysts on a Goldman Sachs trading desk told clients they have serious doubts that auto-parts supplier First Brands will be able to avoid bankruptcy (source: Bloomberg/@business). Historically, rising default risk and tightening financial conditions have coincided with wider high-yield spreads and weaker performance in risk-on assets, including BTC and ETH (source: IMF 2022 blog 'Crypto Prices Move in Tandem With Stocks'). Traders should watch for any spillover from First Brands-related credit stress into broader HY risk premia and crypto volatility given the documented cross-asset sensitivity (source: IMF 2022 blog 'Crypto Prices Move in Tandem With Stocks').