Advisers have warned of “aggressive” sponsor terms buried in covenant packages, which could spell trouble for investors as private equity firms seek to take advantage of demand for high-yield bonds.

This year is shaping up to be a busy period for financial sponsor-related high-yield issuance in Europe, with 20 issuances valued at $9bn recorded in January and February compared to eight issuances valued at $5.3bn during the same period last year, according to data provider Dealogic.