MASTER LIMITED PARTNERSHIPS

Wednesday, July 09, 2008

Down 100 points on the dow....big energy as measured by the DJ Oil and gas index (DJUSEN) is down .75% and @ the lows of the day...and the MLP index is up over 5 and over 270.

Go figure. Maybe 262 is it kids.

6 comments:

Anonymous said...: Well there it is. The Dow has managed to lose all of yesterday's gain. Shouldn't be long before MLP's go down the tubes.

Glory!; 7/09/2008 3:05 PM
Anonymous said...: BPL has 45 minutes left to turn negative...; 7/09/2008 3:13 PM
Anonymous said...: Fannie and freddie are bringing the whole market down.

If the GSEs can't function properly, then real estate losses will get much worse, and the credit crisis will intensify.

Mean while the senate is taking it's sweet time with the Housing Bill.; 7/09/2008 3:14 PM
Anonymous said...: And how does that impact MLP's?; 7/09/2008 3:30 PM
Anonymous said...: How do the GSE's effect MLPs?
If the mortgage market colapses then....

Massive demand destruction for everything including oil and gas, coupled with a credit market colapse.

Any MLP ( or company ) that needs access to capital and/or lines of credit to function, may not get it.

If a note comes due ( that would have been rolled over in ordinary times , and no money is available ) then bankruptcy.

I am not short MLPs, but I do fear for America.; 7/09/2008 3:38 PM
Anonymous said...: Take a deep breath. Demand destruction to what extent? 5%? Power plants need natgas, public transport still runs on diesel, etc.

MLP's are borrowing against hard assets, they have credit lines in place generally for hundreds of millions or for the large guys billions of dollars that they can access. If they had to they could issue equity to GP's for capital(like BWP and APL did a few months ago), they could do secondaries, private placements, etc. There is no evidence that MLP's would not get funding.

Hard assets are king.; 7/09/2008 3:50 PM