In addition to demanding higher interest rates, investors are resisting many bonds and loans whose terms they believe to be too easy on borrowers. Investors have rejected a number of recent deals that included "payment-in-kind" provisions, which allow companies to postpone debt payments to their lenders if they run short of cash. Investors also have rejected loans that are light on certain common performance requirements, known as covenants.

"A lot of managers are starting to get miffed about deals with no covenants and the fact that underwriters seem to have little regard for the risks investors are assuming," said Bradley Kane, who manages a portfolio of corporate loans at SCM Advisors LLC in San Francisco.