CBRE Global Investors, combined with CBRE Clarion Securities and CBRE Caledon, is one of the world’s leading real asset investment managers providing real estate and infrastructure investment solutions to over 500 clients worldwide.
CBRE Global Investors is the investment management division of CBRE Group, Inc. the world’s premier commercial real estate services and investment firm. The company’s shares trade on the New York Stock Exchange under the symbol “CBRE.”
September 7, 2013
Viewed 901 times
The see-sawing week to week since June finally ended with a second straight losing week for the Alerian MLP Index. But this time MLPs way under-performed the S&P 500, despite oil prices closing out the week at a new 52-week high (although natural gas and lighter NGLs were down sharply). Rising interest rates likely had something to do with the MLP sell off, as the US 10-year Treasury rate peaked intra-day above 3.0% on Thursday, and settled up 19 basis points for the week (and 118 basis points so far this year). The S&P 500 also took over the lead vs. MLPs for YTD total returns.
Not much else to say, too much yard work and actual work to get done this weekend…Looking forward to hearing more about Syria and the Fed this week, aren’t you?
Winners & Losers
Odd mix of winners and losers this week. One compression MLP was in the bottom 5, one in the top five on no news. No upstream MLPs in the bottom five at all. The big noise was around KMI and the pending Hedgeye report where they plan to expose KMI as a “house of cards”. It is amazing how much publicity these guys have generated through social media and how quickly the MLP sector can be worked up into a tizzy. KMI was down 7.1% this week, expect more fireworks next week when the report actually gets released. I expect equity research analysts to defend KMI and KMP.
I like KMI, have owned it in separate accounts since its dip below $30 shortly after its IPO, and in our fund we own call options on it, and we’ve sold puts on it as well. We like it because KMP and EPB are run with tight coverage and therefore both need equity very frequently, so why not own a piece of the company that holds an non-dilutive override on distributions made to any of those new units.
EQM had a good week, and popped into the top 5, no other constituents changed.
News of the (MLP) World
One debt deal, another on the road this week. No equity offerings, but MWE filed an updated and much larger ATM. This week, we’ll see probably a few equity deals. On the IPO front, Plains GP Holdings, Western Refining Logistics, and MidCoast Energy Partners updated their S-1s. OCI Resources launched its IPO.
Equity
Debt
M&A / Growth Projects