The retreat from risk in global credit markets gathered pace on Thursday as investors demanded stricter terms for high-yield bond issues and a London hedge fund said it would wind down after suffering big losses on US subprime mortgages.

Caliber Global Investment, a London-listed fund, said it would sell its assets and return capital to investors after a review found “insufficient demand currently” for exposure to the subprime mortgage market. The review was triggered by an $8.8m (£4.4m) net loss from subprime investments.