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.”
August 18, 2013
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MLPs dropped 2.1% this week, roughly the same as the S&P 500 (-2.0%). MLPs were unable to withstand the broader market breakdown for two consecutive weeks, and the multiple MLP equity offerings we saw this week. So after outperforming last week when the S&P 500 was down 1.0%, MLPs succumbed this week. While MLPs were down for the week, the losses happened early in the week and MLPs were actually up slightly on the weakest day of the week for the S&P 500 (Thursday).
Usually, when the market falters, at least some of the money flows into US treasuries. That didn’t happen this week, with the US 10 YR interest rate rising to a fresh 52-week high at 2.83%, which doesn’t bode well for MLPs. Gold was the trade of the week, up 4.5%. Energy commodities were also all up this week, with propane continuing its recent run up another 5.3% to lead the way this week.
Short post this week and probably next week to recharge my batteries. Expect MLPs to drift higher once the equity printing presses shut down in late August.
Winners & Losers
GLP bounced back this week to lead the MLP sector with 9.2% pop. The news that MMLP was getting a new GP partner in Alinda Capital sent it higher Thursday. The list of independent GPs with no private equity or corporate backing continues to shrink. Expect those MLPs that still have an unattached GP to outperform going forward. On the negative side, EVEP was down 10% in what seems to be a reaction to the news from last Friday on the first sale of Utica acreage. Also notable, USAC was down on earnings and the acquisition announcement that adds 7.4mm to the unit count.
For the year, no change in the bottom five constituents. On the top five, MMLP and AMID popped into the top five, LGP and BPL dropped out of the top 5.
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