Investors are lending to corporate borrowers with fewer strings attached, with data from S&P Capital IQ showing that so-called “covenant-lite” loans account for more than half of lending in the European leveraged finance market in 2015.

Cov-lite lending involves a relaxing of the protections for lenders, making it harder for them to restructure loans if the borrower runs into difficulties. Strong demand from investors in the European leveraged loan market is enabling borrowers to get better terms.