The clearance of some $300bn (€212bn) of leveraged loans resting on banks' balance sheets is one of the most important factors in restoring confidence in the vexed corporate bond, bank capital and asset-backed securities markets, according to a leading European bond and loan investor.

Joe Biernat, director of research at European Credit Management, a specialist fixed-income manager in London, said in a meeting this morning that the success of banks in selling-down or syndicating leveraged loans was paramount to bolstering confidence throughout the credit markets.