Barclays Capital is to set up three new debt funds to invest in high yield bonds and leveraged loans in Europe and the US, under its Barclays Capital Asset Management (BCAM) umbrella.

The fund management arm will launch a European fund to invest purely in leveraged loans in October and another fund next year. It will also soon launch a US fund, designed to invest in loans and bonds, said Elliot Asarnow, global head of research and credit portfolio at the bank.