The collapse of two US companies could be a sign of wider problems in the financial system and "alarm bells" were ringing, the governor of the Bank of England has said.
Andrew Bailey told a House of Lords committee that it was important to take the failure of car parts supplier First Brands and subprime car lender Tricolor "very seriously" - and drew parallels with the 2008 financial crisis.
He said it was unclear whether these were one-off issues, or a case of "the canary in the coal mine".
Mr Bailey also said the Bank of England was planning to run a "stress test" of private equity and credit firms.
The bankruptcies of First Brands and Tricolor have raised questions about the quality of deals in what is known as the private credit market - where companies arrange loans from non-bank lenders.
