Babson Capital Europe, the European debt fund manager which spun out of Duke Street Capital, is positioning itself to take advantage of the booming high yield market in Europe as it prepares to launch its first high yield fund in the next month.

The debt fund manager has hired industry veteran Kam Tugnait as a managing director to co-manage the European high yield fund. He will report to Zak Summerscale, head of loans & high yield.