Surging credit hedge funds have lured at least 10 senior people from investment banks this year, according to International Search, a recruitment consultant.

Cairn Capital, the credit firm, founded last year by Tim Frost, confirmed it has hired Stephan Michel, former head of credit research at Barclays Capital, to take the lead role in credit research at the new firm. It has hired Duncan Needham from JP Morgan's credit trading desk as a risk manager.