Two former Citigroup executives who oversaw some of the Wall Street giant’s huge losses are starting a hedge fund.

Randy Barker and Geoff Coley, who headed fixed-income at Citi before their departures late last year, are in the early stages of planning the fund and have spoken with some potential investors, according to Reuters. The fund is expected to focus on distressed debt and other credit strategies.

Barker and Coley are also in the market to hire traders and other staffers for the new venture.

At Citi, Barker and Coley oversaw a division responsible for a big chunk of the firm’s huge credit losses.