The volume of high-yield debt financing, a type of debt used to fund private equity-backed buyouts, has reached the highest monthly total, suggesting the industry is on the road to recovery following the summer's credit crunch.

Syndication of debt used to fund a slew of buyouts stalled earlier in the year as the credit crunch took hold, forcing banks to hang on to large tranches of debt or renegotiate financing arrangements for buyout deals.