In this paper we consider boundary integral methods applied to boundary val
ue problems for the positive definite Helmholtz-type problem -DeltaU + alph
a U-2 = 0 in a bounded or unbounded domain, with the parameter alpha real a
nd possibly large. Applications arise in the implementation of space-time b
oundary integral methods for the heat equation, where alpha is proportional
to 1/root deltat, and deltat is the time step. The corresponding layer pot
entials arising from this problem depend nonlinearly on the parameter alpha
and have kernels which become highly peaked as alpha --> infinity, causing
standard discretization schemes to fail. We propose a new collocation meth
od with a robust convergence rate as alpha --> infinity. Numerical experime
nts on a model problem verify the theoretical results.