Too much demand, not enough supply to feed it. That is the fear of many in the market following a surge of collateralised loan obligation launches in Europe in March and April.

The market for buying up loans and bundling them together to make new debt products roared to life after a European Central Bank announcement in March saying that it would start buying corporate bonds later in 2016. The problem, according to some market executives, is that the low levels of leveraged loan issuance will not be enough to satisfy the new products.