Uncertainty over how a recession might hit European corporate debt has prompted Arini, a $2.3 billion hedge fund run by a former Credit Suisse banker, to unveil plans to launch two new credit funds this year, according to a report by Reuters.

Uncertainty over how a recession might hit European corporate debt has prompted Arini, a $2.3 billion hedge fund run by a former Credit Suisse banker, to unveil plans to launch two new credit funds this year, according to a report by Reuters.

The report cites a recent investor letter as revealing that one fund will require investors to commit capital for a longer period to buy stressed and distressed bonds and other debt instruments.

The riskiest tranches of debt products meanwhile, will be the focus of the second fund , which and may also trade derivatives meant to hedge against the possibility of a company default.

Arini's flagship Master Fund, which was launched by London-based Hamza Lemssouguer in January 2022 was uo 14% in January having chalked up a 6% return in its first full year of trading.