The default rate for leveraged loans held by CLOs rated by Fitch Rating remains benign, at 0.4%, although slight concerns remain about bankruptcies looming defaults from speculative-grade debt held by key retail, media and energy firms.

Near the top of the list worries is $2.89 billion in debt by oil and gas offshore exploration company Seadrill Partners Ltd., a company saddled with imminent default ratings that is held by 66 CLOs to rate as the second highest “loan of concern” on Fitch’s watchlist of CLO-exposed debt.

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