Deutsche Bank is preparing another multibillion-dollar sale of leveraged loans on its books, adding to the evidence of a rally in corporate credit markets.

The growing demand for such credits is an encouraging sign because banks are trying to sell a backlog of about $100bn in leveraged loans they are still holding. Banks want to sell the loans – used to finance private equity buy-outs – to free up capital after suffering heavy losses in the subprime mortgage meltdown.