The Blackstone Group is building a distressed debt capability to focus on smaller, efficiently traded issues.John Dionne, who was previously a partner at hedge fund Bennett Restructuring Fund, has taken up the post of senior managing director and cio of Blackstone Distressed Debt Advisors. According to a statement, Blackstone believes it is an opportune time to be in the asset class due to back-to-back record years of high-yield issuance, the high leverage levels and prospect of significantly higher default rates in the future. A Blackstone spokesman declined comment.