Reuters reported the use of term loans to finance acquisitions by highly-rated U.S. companies is rising amid a late surge of M&A activity in the fourth quarter as companies opt for more medium-term financing to give greater flexibility around when to tap volatile bond markets.

Reuters notes it’s been a busy year for M&A in the U.S. has been capped by a run of multibillion acquisition loans in recent weeks which show the increasing use of term loans to finance acquisitions.

Reuters said while higher-paying term loans are good news for investor banks looking to add higher-paying funded assets to their portfolios, including liquid U.S. regional banks, some lenders could face capacity issues if drawn term loans increase.