Archive

MLP Business Model Will Survive

29Sep
We are compelled to respond to the sky-is-falling scenario outlined a few days ago by Valuentum Securities.  The market may or may not be responding to the “MLPs may not survive” sensationalism.  Hard to pin 5%+ consecutive down days on one article.  But maybe because he starts it with “Warren Buffet…”  If Warren said it, it must be true,

Week Thoughts: MLP Deflation Escalation

27Sep
MLPs fell for the fourth week in a row, with this week’s 5.9% decline the worst of the streak so far. The broad market was weak (S&P 500 -1.2%), struggling to find footing after the Fed’s announcement last Thursday, while utilities outperformed. Oil futures finished the week up 2.1%, but were again volatile around the weekly inventory report. Oil

MLP Week Thoughts: Certain Uncertainty

20Sep
Conditions were not met for the Fed to increase rates this week, and conditions for an MLP liftoff didn’t quite fall into place either. The Fed’s rate liftoff is delayed at least until the end of 2016. MLP liftoff timing is even more uncertain, as are the conditions. But rising rates are no longer standing in the way, and the removal of that headwind

MLP Week Thoughts: Back…To the Woodshed

12Sep
There may have been more people in the office this week, but they weren’t buying MLPs, which declined 4.3%, a multiple of the decline in oil prices this week. MLPs continue to capture a disproportionate share of the oil-related downside and limited upside. On August 24th, oil hit its most recent bottom just above $38/bbl. Oil has rebounded more than 17%

MLP Week Thoughts: A Little Too Quiet

06Sep
The see-saw action for MLPs continued this week, with the Alerian MLP Index giving back half of last week’s gains, which had made up for the prior week’s losses. MLPs did continue their run of outperformance relative to the S&P 500, which was down 3.4%. Friday’s weaker than expected employment report, combined with light trading volume and