Reuters reported huge takeovers by companies including cable operator Charter Communications and chipmaker Avago Technologies promise to propel merger and acquisition loan volume from strong to certifiably robust as deals were announced at a record-breaking pace in May.

According to Reuters , leveraged deals are taking a backseat to investment-grade deals, as corporations with strong balance sheets and huge amounts of cash on their books are beating out sponsors already burdened by the constraint of leveraged lending guidance that has limited leverage to around 6.0 times on most deals.

Reuters said further industry insiders expect both leveraged and investment-grade M&A activity to remain strong throughout the remainder of the year, with demand for debt outweighing supply despite the rush of new deals.

To read the entire Reuters article, click here.