Trade finance faced a turbulent year in 2025, with global tariffs, high-profile bankruptcies, legal disputes, and evolving export credit agency (ECA) practices dominating headlines. Here’s a breakdown of the biggest developments.
An $11bn Collapse: The First Brands Scandal
The bankruptcy of US auto parts manufacturer First Brands has rapidly escalated into one of the most serious financial scandals in recent years, far exceeding the company’s mid-market profile.
Best known for supplying pumps, filters, and other automotive components to retailers such as AutoZone and Walmart, First Brands pursued aggressive expansion funded by complex layers of debt. That strategy ultimately unravelled. Creditors estimate exposure of more than $11bn, reportedly including roughly $6.1bn in on-balance sheet debt, $2.3bn in off-balance sheet financing, $800mn in supply-chain finance, and $2.3bn tied to factoring arrangements.
The fallout spread well beyond the company itself. Working capital platform Raistone, which relied on First Brands for around 80% of its revenue, reportedly told the court that expected income from factoring facilities “simply vanished.” Interim managers alleged that founder Patrick James raised billions against inventory and invoices that either did not exist or were pledged multiple times: accusations James firmly denied as “baseless and speculative.”
UK Non-Bank Lending Under Strain: The Collapse of Artis Finance
London-based non-bank lender Artis Finance collapsed into administration in March 2025 after it was revealed that key financial data and servicing reports provided to investors had been misrepresented, obscuring the true performance of its loan portfolio. This included a large share of loans that were far more overdue than disclosed, and the quiet lapse of trade credit insurance that had been backing the assets.
Artis had used a special purpose vehicle, Artis Loanco 1 PLC, to issue $260 million in bonds marketed as safe, investment-grade debt to institutional investors. Once the misreporting came to light, rating agencies withdrew their ratings, and administrators from PwC began a forensic investigation into the firm’s practices.
The episode has highlighted broader risks in non-bank structured bond programmes that rely on opaque trade receivables, leaving investors exposed when underlying assets sour and disclosures fail, reported OpenPR.
Tether at $170bn: Stablecoin Dominance in 2025
While traditional finance grapples with governance failures, the digital asset world tells a very different story. In 2025, Tether (USDT) cemented its status as the world’s dominant stablecoin, with a market capitalisation exceeding $170bn, around 58% of the global stablecoin market. USDT now operates across 13 blockchains, with Tron and Ethereum hosting the majority of supply. Its role is central to crypto trading, decentralised finance, and cross-border remittances, particularly in emerging markets.
Tether is also preparing a return to the US market with a new regulated stablecoin, USAT, and is reportedly in discussions to raise $15–20bn, potentially valuing the company at $500bn. Large holdings of cash and US Treasuries continue to generate substantial yields, reinforcing confidence in the token’s backing.
Nestlé at a Crossroads After CEO Shake-Up
In the consumer goods sector, Nestlé – facing renewed investor pressure following the abrupt departure of CEO Laurent Freixe over a personal conduct issue. His successor, Philipp Navratil, inherits a business confronting slowing growth, rising costs, and a share price that has fallen around 40% since 2022.
Shareholders and analysts are calling for decisive action: slimming down Nestlé’s 2,000-strong product portfolio, reducing headcount, and enforcing tighter cost discipline to remain competitive with rivals such as Unilever. CFO Anna Manz has pointed to Navratil’s success at Nespresso, where he combined simplification with growth, as evidence that he can stabilise the group during a sensitive transition. Whether that playbook can be applied across Nestlé’s sprawling global operations remains a central question.
ECA Support in a War Zone: Denmark Backs Ukrainian Wind Power
Amid geopolitical uncertainty, export credit agencies continue to play a pivotal role in sustaining investment. The Danish Export and Investment Fund (EIFO) guaranteed a $420mn loan from Danske Bank to support the expansion of a wind farm near Ukraine’s conflict zone. The financing, extended to private energy company DTEK, carries a 12-year maturity and a two-year grace period. It underscores Denmark’s commitment to supporting Ukrainian infrastructure and energy resilience, even as war-related risks remain acute.
From opaque trade finance structures and governance failures to the growing role of ECAs and the rise of stablecoins as global financial infrastructure, these stories highlight a system in transition. Transparency, risk management, and regulatory clarity are emerging as decisive factors, whether in traditional lending, corporate leadership, or digital finance.
