Since the financial crisis hit markets, European Banks have resisted unloading troubled corporate loans for fear of having to record heavy losses. In past years, demand for these bonds has been so low that banks were unable to sell this debt for a price that could cover their initial investment. But in another promising sign for the economy’s recovery, demand for these risky bonds in europe has surged in recent weeks, driving up the price to a point at which european banks can unload these troubled assets from their balance sheets. Demand has surged because of a sharp decline in bankruptcy filings and defaults in the US, leaving investors with fewer opportunities to buy distressed debt and sell it off for a profit through restructuring. This is a boon for economic recovery because it demonstrates the strengthening financial health of US companies, allows European banks to finally unload these risky investments from their balance sheets, and introduces increased liquidity into the struggling European debt market.