FBR Capital Markets, an Arlington, Va.-based investment, broker and asset manager, is setting up a credit trading team and debt origination business, according to Bloomberg.

The company is aiming to trade and sell loans, bonds and distressed credits, as well as originate and close debt. This effort will be overseen by Michael Lloyd, who runs FBR’s convertibles business. FBR has hired Vik Natarajan, a former distressed trader at UBS, to act as the head of distressed debt trading. It also hired Todd Dahlstrom and Michael Cunningham, who were both at Morgan Stanley and both sold debt. Their positions at FBR have not been finalized.

Other firms, such as ING, which started its own European debt advisory business, have begun new endeavors even as the economy sours, At the same time, new firms such as North Sea Advisors, which was co-founded by Jon Calder, Citigroup’s former head of credit sales for North America, have sprung up to take advantage of the dislocation in the market

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