What Oil Price Would Hurt Credit and Equity Markets?

The video discusses the US high yield market's vulnerability due to its exposure to the energy sector, particularly if oil prices weaken. It highlights the resilience of this market despite rising US Treasurys. The video also examines the impact of past oil price crashes on emerging markets with high production levels. Additionally, it explores how energy stocks have been generating high free cash flow, making them attractive to equity investors, despite a balance sheet recession mode and limited capital expenditure.

What is meant by 'balance sheet recession mode' in the context of energy companies?

Why were energy stocks favored by equity investors despite oil price fluctuations?