When JPMorgan Chase & Co. took the lead last year in financing the $55 billion takeover of Electronic Arts Inc., a record-setting leveraged buyout, Wall Street saw it as a sign that a lucrative period of bankrolling super-sized private equity deals might come roaring back.

A flare up in high-profile corporate buyouts is likely to spread into 2026, spurring demand for leveraged financing that could double by some estimates, according to debt managers.

Banks from Wells Fargo & Co. to smaller Japanese lenders are flocking to top-rated collateralized loan obligation deals, pushing up secondary prices for buyout debt.

Wells Fargo & Co. is ramping up buying top-rated collateralized loan obligations, after largely staying away from the $1.3 trillion market following interest rate hikes in 2022, according to people with knowledge of the matter.

Junk bonds don’t seem quite so junky anymore. US investors are piling into an asset class that has grown a little safer in recent years, and in recent weeks has drawn investors seeking a safe harbor from market turbulence.