A month ago, the mood on the credit trading desks of JPMorgan was decidedly dark. As turmoil erupted in the credit markets this summer, activity in many parts dried up and traders at the US investment bank were seeing far more sellers than buyers.

But a shift has since occurred. “In structured credit our desks [are seeing] more bids than offers – a clear improvement,” says Jan Loeys, a JPMorgan economist, who points out that investors are also putting money into risky bond funds at the fastest pace since 2005.