The esoteric securities market underpinning demand for the riskiest corporate loans is perking up, raising hopes that it could become easier for banks to sell a range of loans, including those that they failed to syndicate last year.

More corporate loans are being bundled this spring into collateralised loan obligations, which buy loans from junk-rated companies and repackage them into securities that pay varying levels of interest based on which get paid off first if the underlying loans go bad.