My latest column at equities.com is up. Click here to read it.
In the column I discuss the very short term and medium term impact of the 10-year U.S. treasury rate on MLP Index performance, in light of the “spike” in that yield from 1.98% to 2.38% in one week (it has since settled back below 2.3%), and speculation that the rise in rates is having a negative impact on MLPs. In short, I don’t believe rates are the issue. More relevant is the outperformance of stocks year to date relative to MLPs, the massive amount of equity issued year to date (see my post from earlier today), and the generally weaker fourth quarter results from MLPs.