BNP Paribas has announced the creation of a new unit within its commercial and investment banking focusing on distressed finance. The group will be headed by Alain Dib who until now has been co-head of Euroepan high yield capital markets. Distressed debt and special situations trader Monique Hill will lead the business in the US and will report to Dib.

The French bank says it believes the current climate makes it attractive to set up a business activity focusing on distressed trading, rescue financing and turnaround investing.