The Blackstone Group, the US alternative assets manager, is weighing up the launch of a European restructuring unit to take advantage of any fall-out from a current boom in buy-outs funded with high degrees of debt.

Stephen Schwarzman, chairman and co-founder of the group, said the firm was considering the option because levels of high-yield debt, or high-risk debt issued by companies with low credit ratings, was at the same level as at the beginning of the internet stock bubble in 1998.