Strong demand for leveraged loans is already driving borrowers to rejig deal structures as the first transactions of the year cross the finish line. This dynamic is likely to persist in upcoming deals such as AthenaHealth, which is giving early looks at its LBO debt.

With the Fed widely expected to hike rates three times this year starting in March, investors are clamoring for more floating-rate exposure. That is driving them towards leveraged loans just as January’s deal pipeline kicks into high gear.