Demand for high-rated complex loan products, which became "toxic" as defaults rose, has returned for the first time since the financial crisis began in mid-2007 after a closely-watched fire sale yesterday achieved a better-than-expected price.

Whistlejacket, a structured investment vehicle that went bust after investing in a variety of complex credit assets, yesterday held an auction of up to $400m collateralised loan obligations, which invest in leveraged loans, as part of a liquidation of $2.5bn assets.