Reuters reported that thanks to an imbalance in supply and demand, issuers and sponsors are returning to the leveraged loan market in Europe seeking more attractive debt terms.

According to Reuters, the market has seen renewed demand from CLOs and more deals have been launched, including junior debt refinancings, repricings and dividend recapitalizations.

Since a February drop in secondary prices, supply has declined and total issuance for the first six months of the year was only $45.5 billion, down 65% year over year from $129.1 billion during the same period in 2015, according to Thompson Reuters LPC.