Energy companies may be highly represented in the U.S. speculative grade debt market, but that doesn’t necessarily bode ill for securitizations of speculative grade loans, according to Standard & Poor’s.

Based on a review of about 700 U.S. CLO’s rated by S&P, the average exposure to energy companies is only about 3.3%; that’s a much lower concentration than these companies have in overall junk bond and leveraged loan markets, at 17%.

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