Archive

MLP Week Thoughts: Powering Through to Earnings

24Jul
MLPs beat oil again this week (+0.8% vs. -3.7%), but oil’s slow motion slide towards $40 is becoming a nuisance.  MLP continue to get a boost from the market’s thirst for yield, as long as oil prices don’t fall to far.  MLP trading has been stagnant, but positive leaning lately, helped by positive fund flows and ATM blackout periods. It feels

MLP Week Thoughts: Say Anything

17Jul
MLPs resumed their rally this week, the MLP Index hit a new year-to-date high and outperformed oil prices again.  MLPs also beat the S&P and utilities, despite a 22 basis points increase in the U.S. 10 year rate week over week.  MLPs reacted positively to company-specific announcements that offered clarity to cloudy situations (PAA) or highlighted

Week Thoughts: Oil Slick, MLPs Stick

10Jul
The short trading week was dominated by “the macro” and capped by a better than expected monthly payroll report.  Interest rates declined to new lows, U.S. equities rallied to new highs, and MLPs were basically flat.  Commodities were the big loser, with global economic growth uncertainty and U.S. Dollar strength leading to skittish trading in oil

Week Thoughts: Those Beaches will be Open

01Jul
MLPs bounced along with the rest of the market early this week, then seemed to be supported Thursday by some end of the quarter window dressing when MLPs traded up while oil traded down.  In recent quarters, portfolio managers have wanted to disavow ownership of MLPs heading into a quarterly close, but this quarter MLPs have outperformed most asset

Week Thoughts: World Caught Offside, MLPs Stay Onside

26Jun
MLPs carried a streak of 7 straight positive days into Friday’s market-crushing Brexit debacle.  The MLP Index declined 3.3% Friday, but had banked enough gains earlier in the week to finish up 1.5% since last Friday. Oil prices recovered to more than $50/bbl by Thursday, which helped MLPs keep the momentum going from last week.  Also, news

Week Thoughts: MLPs Outperform as Votes Loom

19Jun
MLPs found themselves caught up in global risk off action early in the week as fears over Brexit spread across Europe, pushing the dollar higher and oil prices lower.  After dipping below 300 briefly in the morning Tuesday, the MLP Index recovered, trading up the last 3 days of the week, defying falling oil prices Wednesday and Thursday, and digesting the

MLP Week Thoughts: Pumping the Brakes

12Jun
MLPs continued last week’s rally early on this week, adding an additional 2.9% over Monday and Tuesday, helped by strength in commodity prices.  The rally faded late in the week, picking up downside momentum Friday when oil prices dropped back below $50/bbl in a broad market sell-off. MLPs closed the week down 0.2% overall, with large cap strength

Week Thoughts: Half Full Glasses Back On

05Jun
MLPs traded up 3 out of 4 days this week to resume the rally that paused last week, finishing up 2.9% over last Friday.  MLPs rallied despite lower oil prices, helped by a surge in natural gas prices, supportive interest rates, MLP conference enthusiasm and an MLP rollup that the market actually likes. MLP Conference The hot topics at the

Week Thoughts: Clenching & Clinching Pre-Conference

29May
MLPs declined 1.1% this week, pausing after the recent surge that took the index above 300.  The index was down despite an oil price and broad market rally.  The equal weight version of the MLP Index was essentially flat, and absent PAA (-11% this week) it would have been positive, so action wasn’t as bad as the overall index would