Archive

Update of Musical Chairs: UBS Hires MLP Banker Rob Pierce

29Aug
For those of you who don't care about the ongoing theater of bankers moving from bank to bank, go ahead and skip this post.  Back in September of last year, UBS's Houston investment banking office was gutted when Stephen Trauber left the firm to join Citi (see here for details of that move in a Wall Street Journal article), for a reported $30mm deal.

MLP Week Thoughts: Crazy Nature, Boring Bernanke and Markets

28Aug
This week, MLPs acted sort of the opposite of last week.  Last week, MLPs were up on Monday, then down sharply the rest of the week.  This week, as shown below, MLPs were down big Monday, then recovered strongly the rest of the week, to finish up 1.8% for the week.   From Monday’s close to Friday’s MLPs were up 4.3%. MLPs have outperformed

Week Thoughts: Vegas Baby

22Aug
MLPs had another rough week, slightly outperforming the S&P 500, while everything under-performed gold.  Treasuries yields dropped even lower than last week, briefly ticking below 2% on Thursday.   Right now is all about liquidity sucking out of the markets and fleeing to safety, so as yet there has been no positive impact on MLPs from the lower

MLP Week Thoughts: Fed Speak Clearer

15Aug
What a ride for the markets and MLPs last week.   On Monday, the MLP Index dropped 7.1%, the third largest percentage drop in a single day for the index ever.  Tuesday saw a huge reversal, with the MLP Index jumping 8.4%, the fourth largest percentage gain for the MLP index in a single day.  Most of these gains came after the Fed’s release.  As the

Updated Chart of Big MLP Moves

10Aug
Here is the update to the chart I posted yesterday, turns out it was the 4th largest percentage gain, 2nd largest point gain ever.  Today, MLPs are up big again, 3.9% so far.  In case you were wondering, there have never been two 5%+ positive days in a row before, but there have been two days of 5%+ losses in a row.

Ranking: Biggest MLP Index Moves in History

09Aug
I was inspired by this post from Josh Brown at The Reformed Broker Blog that showed the top 20 worst days (in point losses) ever for the Dow Jones Industrial Average, and how the last few rough days ranked.  So, I decided to go through the brief history (index dates to 1996) of the MLP Index (AMZ) to see how many times the index has dropped more than 5% as

MLP Week Thoughts: Look out Below

08Aug
MLPs dropped 6.1% this week, which is the 9th worst week over week drop since 2000 for MLPs, and the worst week since the “flash crash” week of May 2010, when MLPs were down 7.9%.  It’s not uncommon for MLPs to drop on the week when many of them trade ex-dividend during the week, which was the case this week.  Clearly, however, this week’s

Week Thoughts: Paralysis by Politics

31Jul
MLPs, along with the rest of the market, were held hostage by what Jon Stewart calls Armadebtdon 2011.  At this point, still no resolution on the debt ceiling and no word on what the yet to be agreed upon deal will include in terms of tax changes, including potential MLP taxation (although that's still very unlikely).  In the absence of a resolution to

MLP Equity, Debt and M&A Update

26Jul
Capital markets remain wide open to MLPs.  Equity raised through June 30th totalled $9.5 billion.  Thus far in July, there have been 3 follow on equity offerings and 1 IPO for a total of $702 million.  If equity issuance continues at this pace, 2011 will be the biggest year ever for total MLP equity issuance (in total dollar terms, but probably not as a