Wall Street, including more than a few hedge funds, seem to be prepping for a credit downturn. Last June, Goldman Sachs successfully recruited James Sprayregan, a pre-eminent bankruptcy lawyer. Hedge fund Avenue Capital Group that specializes in distressed securities recruited Rick Shinder from Merrill Lynch. There are a lot of other bets being wagered. PricewaterhouseCoopers Corporate Advisory & Restructuring was launched recently. Other firms seem to be stepping up. Can all these firms be wrong? Well, it's fair to say that the credit binge we're now experiencing will have to end at some point. So this is all well-timed. It's a bit like the last days of the subprime bubble. We all knew it would end, it was just a matter of when and how.

For more:
- here's an Investment Dealers' Digest article (For FierceFinance readers)