Since the credit crunch hit last year, the distressed debt industry has been undergoing a somewhat surprising shake-up. In recent months, bankers in distressed debt trading, research or proprietary investing have been quietly leaving long-held positions.

The departures come as reports abound of vulture funds amassing war chests in preparation for a new cycle of opportunities in the bonds or loans of struggling companies. But a year after the credit crunch began, some of the most experienced and successful in this business say it is too early to jump in.