Drop in Oil Prices Causing Pain for High-Yield Energy Bonds

The video discusses the ongoing decline in oil prices, marking the longest losing streak in over two years. This decline is impacting heavily indebted companies in the shale patch and is linked to reduced growth expectations globally. The video examines the effect on high yield energy bonds, which are underperforming compared to the broader bond index. Specific companies like Diamond Offshore, Rowan, and Volaris are highlighted for their financial struggles. The discussion also touches on the historical context of the 2014 oil price plunge and the current distress among overlevered drilling companies.

What historical event is referenced in relation to the current state of the energy market?

What are the implications of the current oil prices on the viability of drilling companies?