Underwriting banks are slowly starting to shift the backlog of leveraged loans financing European private equity buyouts but a dearth in demand from structured credit funds and other institutional buyers is creating uncertainty for larger transactions, according to a new report.

Ratings agency Standard & Poor's said yesterday the €76bn ($110bn) mound of hung leveraged loans in Europe has barely moved since mid-August, one of the volatile periods amid this summer's credit crisis, but some €22bn of the total is being syndicated by banks.