Posts Tagged:MLP

Master Limited Parternship Warning from Morningstar

Morningstar has issued a research note warning investors about the ALPS Alerian MLP ETF (AMLP).  (Morningstar)  The reason?  Hot money is flowing into this ETF because the industry giant, JPMorgan Alerian MLP Index ETN (AMJ), has hit its $5 billion asset limit and stopped creating new units.  This means AMJ is now a closed-end fund…

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Moody’s Master Limited Partner Research

Moody’s has come out with research on Oil and Gas bond covenants and has come to the conclusion that MLPs offer the least investor protection.  (Finanzen) “Our review of bonds issued between January 2011 and October 2012 showed that those of US midstream limited partnerships have the worst covenant quality,” says Andrew Brooks, Moody’s Vice…

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The Bubble in Yield Plays Continues to Grow

Nathaniel Popper, reporting in the New York Times, has a good piece on how individual investors are plowing into junk bonds just as they are getting more risky.  (NYT)  This continues the trend of yield chasing we have documented with our coverage of Energy plays in Master Limited Partnerships here. The scenario is simple, the…

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Shale Gas Pain Continues

Clifford Krauss and Eric Lipton continue the excellent New York Times coverage of the shale gas boom and bust.  (NYT) There are some fascinating revelations in the article: 1.  The drilling companies were forced under contract to keep drilling, even as the price of natural gas collapsed: The land that the natural gas companies had…

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Master Limited Partnerships and REITS

S&P CreditMatters TV has put out a video comparing MLP and REIT characteristics. (S&P)  At 8:34, it’s not too in-depth, but for those of you wanting a quick introduction, it’s useful.

Uh-Oh. Master Limited Partnerships Continue to Go Mainstream after 10 Years of Outperformance

The New York Times has joined the drumbeat of MLP coverage, noting how the relatively high yields and tax advantages of MLPs are drawing investors. (NYT) Here’s some facts that should give everyone pause before investing in these complex products: They have an average 16.7 percent annual return for the past 10 years This return…

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Historical Background on Master Limited Partnerships

Investment Consultants NEPC have one of the better background pieces on Master Limited Partnerships.  (NEPC)  They do a nice job showing the growth of these vehicles over the past 15 years or so.

Master Limited Partnership (MLP) Links

Below are some helpful links for your MLP research efforts: Comparison of different MLP ownership vehicles. Jim Cramer does a good job giving a folksy explanation of MLP basics.  Some historical information as well as an update on the MLP market.  Overview of MLP IPO issuance in 2012 as well as a 10-year chart of…

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