Highbridge Capital Management is the latest hedge fund to try to take advantage of distressed bank debt with plans for a $1 billion fund.

The JPMorgan Chase unit began marketing Highbridge Leveraged Loan Partners last week, the New York Post reports. The fund will buy distressed paper originating over the past year-and-a-half that banks are seeking to get off their balance sheets amid the credit crisis.

The new fund will reportedly impose a three-year lockup period.