Even as worries escalate about the ability of highly rated countries to fund themselves, there is a buzz at the other end of the credit spectrum. Leveraged loans, a source of funding for private-equity acquisitions, are drawing investor interest again after a long period in the doldrums.

In the US, there are signs of life in the collateralised-loan-obligation market, with the year's first deal not only refinancing an existing CLO but bringing in new money, too. In Europe, HarbourVest Partners is launching a listed fund to invest in midmarket leveraged loans. Leveraged-finance bankers are more bullish, and new loans have started to flow.