Archive

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

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