adbrite ads

Your Ad Here
Your Ad Here

tickers

$IN

amazon

Wednesday, August 20, 2008

Even though it is like watching paint dry...or watching water boil...or ice melt....all three eventually get there. We have been literally going up 1 tick at a time as the mlp index closes in on a 1 point gain. Is 266 possible?
Posted by at

7 comments:

Anonymous said...

There is only one thing that is going to fix the MLP sector: Time.

Mr. Pipes

8/20/2008 1:41 PM
Anonymous said...

I agree with Mr Pipes. We need to have the fixed income markets stabilize, the financial scare to settle down, the volatility in the petroleum complex to calm down, all of these sludge will eventually wind its way through the system and then we can return to normalcy. Until then we just have to ride the greased pig and hold on.

8/20/2008 1:50 PM
Anonymous said...

I agree, Mr. Pipes.

And the irony is that all those people who are moaning and groaning so much now will be eargerly buying units at higher prices and lower yields.

8/20/2008 1:51 PM
joewxman said...

let me put this out there. Suppose Fannie and Freddie go under. Isn't possible that event might immediately bring some relief to these asset classes like MLPS that have been victims of the credit markets and their demise? Could these groups just breathe a huge sigh of relief and rally strongly just by just removing that overhang?

8/20/2008 1:56 PM
Anonymous said...

Look at the bright side. If you invest $100,000 in MLP's yielding a static 9.0% (meaning the yield NEVER increases) you double your money in 8 years. This assumes zero principal gain or loss and reinvestment of divs at 9.0%.

Thats not too bad and we all know there are plenty of MLP's yielding more than 9.0%.

Mr. Pipes

8/20/2008 2:00 PM
Anonymous said...

Joe: I will say the equity of Fannie and Freddie will go to zero, you could probably add Lehman to that list also.

Maybe we need a big event to finally purge the system.

8/20/2008 2:02 PM
Anonymous said...

Yield spreads between Fannie's and Freddie's debt securities and U.S. Treasuries are sharply narrower for a second day following a period of steady widening, according to data from Bloomberg. The tightening was probably helped by Freddie's $3 billion auction of five-year notes yesterday, which was oversubscribed, even though the participation by Asian investors was less than usual. Today's narrowing might reflect the sense that additional government involvement is imminent -- involvement that would primarily protect debt holders, not equity holders, most believe.

8/20/2008 2:06 PM

Post a Comment

Subscribe to: Post Comments (Atom)