European high-yield bonds got off to a fairy-tale start this year. January’s issuance climbed tenfold over the previous month from $784m to $7.1bn, but bankers say investors are still selective rather than aggressive.

Last week, insurance group Towergate Partnership came to market with a £520m bond that was five times oversubscribed - but only after the company injected an extra £200m into its balance sheet, by selling a minority stake to private equity firm Advent International. Seven months ago, it had to cancel the deal, as liquidity drained out of the market.