Archive

Week Thoughts: No Action, Positive Reaction

25Sep
MLPs snapped back hard with their best week since April, up 4.5% over last week.  Large cap MLPs outperformed smaller MLPs (EPD’s big week helped AMZ outperform the equal weight version by 50 bps).  Wednesday’s confirmation of 3 more months of current rates from the Fed spurred risk assets higher, especially those that offer income (UTY +3.4%, S&P

Week Thoughts: Hot IPO, Cold MLPs

18Sep
Correlation between oil prices and MLPs came back this week, shattering the recent relative calm for MLPs.  The index dropped 3.6%, moving in the opposite direction of yield-based equities (UTY +2.2%), equities in general (S&P 500 +0.5%) and natural gas prices. MLPs either followed oil lower, or dropped on an increase in risk premiums across the

Week Thoughts: A Pipe in the Ground is Worth Two in Limbo

11Sep
It was a short, action-packed week.  MLPs caught a wave of positive M&A vibes and higher commodity prices that carried the sector higher through Thursday, then crapped out with the rest of the market on Friday to finish the week down 1.0% overall.  MLPs outperformed the S&P 500 and utilities, which were both down 2.4%.  Friday was the worst day

Week Thoughts: MLPs Fall in the Woods

28Aug
MLPs dropped this week, after a few weeks of treading water.  The index is on pace to finish August negative, skewed by EPD (20% of the index) having a very bad month (-6.6% so far).  In any event, MLPs were due for a pause after 5 straight positive months. Given we’re in the middle of two of the sleepiest market weeks of the year, seeing MLPs

Week Thoughts: Dealer Bust, MLPs Winning

21Aug
The MLP Index finished the week roughly flat overall, but the equal weight version was up 1.0%.  The variance is attributable to several large cap MLPs dropping more than 1% for the week, including EPD, MMP and OKS.  Some of the more commodity sensitive smaller members balanced that weakness with commodity-driven gains, and WPZ traded up on the EPD

Week Thoughts: MLPs Clean Up

14Aug
MLPs outperformed in a flat week for stocks, finishing up 0.8% with distributions.  The Alerian MLP Total Return Index is now down less than 5% year over year.  MLPs have treaded water for the last month or so, but comparables vs. last year continue to improve.  Oil prices rebounded this week, up more than 6%.  Natural gas and light NGLs didn’t fare

Week Thoughts: Pull Lever to Fix Leverage, MLP Math in Action

07Aug
In a week crowded with earnings, strategic announcements and macro, MLPs continued their recent slide.  The MLP Index was down 0.4% including distributions.  Oil prices were volatile, but crossed back above $40 definitively after Wednesday’s inventory report.  Friday’s strong jobs report pushed interest rates higher and pressured utilities.  MLPs

MLP Week Thoughts: Keep It Together

31Jul
MLPs finally broke down a bit this week under the weight of still dropping oil prices (another 6% decline this week).  The chase for yield, plus some pretty solid earnings results this week kept MLPs from falling further, and a 1.1% move Friday helped MLPs avoid a worse fate. If MLPs were going to break down, its not a surprise to see it happen on a