The credit crunch has prompted BNP Paribas to create a distressed finance group, which it says will focus on exploiting opportunities in distressed trading, rescue financing and turnround investing.

The bank will announce today that it has appointed Alain Dib as the global head of the new group. Mr Dib was previously co-head of high-yield markets in Europe. Monique Hill, recently in charge of distressed trading in the US, will report to Mr Dib.