The former heads of European distressed debt trading at Deutsche Bank and proprietary trading at Morgan Stanley have returned to the markets to launch a new independent distressed debt-focused broker, the latest of a band of boutiques established this year.

Simon Mullaly and Lars Lemonius, who left Deutsche Bank and Morgan Stanley in London more than a year ago, co-founded Yorvik Partners earlier this year, but launched the European debt brokerage business this week in an effort to take advantage of the "unprecedented scale of distress" and a "lack of credible dealing alternatives".