MASTER LIMITED PARTNERSHIPS

Friday, August 22, 2008

With all the Lehman talk....maybe if they get taken over....we could get an all clear signal on MLPS?

Maybe that is the catylist we've been waiting for.

27 comments:

Anonymous said...: I would think(hope) that LEH has dumped the bulk of its MLP book by now. They have been in trouble for months.

But getting LEH out of the way would at least clear the air somewhat.; 8/22/2008 10:57 AM
Anonymous said...: APL what is the problem?; 8/22/2008 11:02 AM
joewxman said...: not sure whats going on with APL. Its been a slow drip down with them along with Atlas Holdings (AHD). Somebody has been selling steadily.

At least it appears that the WIlliams selling has stopped.; 8/22/2008 11:11 AM
Anonymous said...: On the other hand, if LEH is not rescued or bought, their position could deteriorate rapidly. That could cause them to keep dumping MLPs and could cause a broader market decline.

Interesting times.

Bruce; 8/22/2008 11:11 AM
Anonymous said...: Does anyone have the latest 13HF for Lehman? What are the MLP holdings they still have?; 8/22/2008 11:23 AM
Anonymous said...: One of the things that pisses me off about the last few months is that you constantly hear about "forced selling" yet we never seem to hear any facts as to who these mystery sellers are.

The last few days we've seen NGLS get hammered, WPZ trade a block 2 points below the close and today APL/AHD falling apart. Every day seems to bring another "forced seller" out.

Who are these idiots who sell at historically cheap valuations and why do they sell MLP's versus other things in their portfolios?

Does anyone here ever actually speak to any of these guys?; 8/22/2008 11:36 AM
Anonymous said...: there's talk that the atlas guys are lying about some of their un-hedging that gave them much of that pop a few months ago hence the selling pressure; 8/22/2008 12:07 PM
Anonymous said...: For those who are asking why specific issues are being devalued, I think you are missing the point. With few exceptions, this has nothing to do with indiviual issues.

The entire universe of MLPs and GPs has been trashed. This has to do almost solely to the forced liquidation by Lehmann and God knows who else. They are being forced to unwind their leverage by selling what they can since they can't sell the real problem stuff. Until that bad stuff is dealt with, everything is at risk. It makes no difference that distributions are increasing and business is good. If there are more sellers than buyers, which there certainly are, then prices will go DOWN. It's that simple. Sorry if that sounds harsh, but it's my reality.

steve; 8/22/2008 12:15 PM
Anonymous said...: If you want to see a great example of divergence between the GP and LP look at OKS and OKE. I'm scooping up OKE.; 8/22/2008 12:19 PM
Anonymous said...: Many of the GPs are carving out nice bases.

I agree with the posters blunt asessement of the MLP sector. There are just too many sellers out there. Yields, fundamentals, distribution growth, etc mean nothing when you get a margin call and have to sell something.; 8/22/2008 12:31 PM
Anonymous said...: Isn't the bulk of OKE's corporate structure a utility? Comparing OKS to OKE is not the same as BPL to BGH.; 8/22/2008 12:34 PM
Anonymous said...: APL heading for a 12% yield. 13.07% on the 09 projected yield!

Let's be honest here, there are still no takers! GLORY!; 8/22/2008 12:36 PM
Anonymous said...: If you like APL at nearly a 12% yield, you'll love TNH with a yield of almost 14%! When MLPs get back in vogue, accumulators at these levels will look like geniuses.

Incidentally, yesterday someone posted a link to the Kayne Anderson MLP conference call (thank you, whoever you are). If you missed it, it is absolutely worth a few minutes of your time. Here's the link again: http://www.kaynefunds.com/webcasts.htm

Enjoy...

Lee; 8/22/2008 1:03 PM
Anonymous said...: Lee let's hope we can survive until these things recover. It's already been a year in hell with these things.

As for looking like genuises, let's hope so.; 8/22/2008 1:37 PM
Anonymous said...: Natural gas going down the crapper again today...; 8/22/2008 1:38 PM
joewxman said...: both Linn Energy and Eagle Rock Energy are seeing some selling today and both are heavy lehman holdings..although those holdings have been reduced.

Meanwhile LEH is rallying back to its days highs. Praying very hard for a deal so these guys can go away.; 8/22/2008 1:44 PM
Anonymous said...: Joe,

I agree. I too wish LEH would go away. You can add FNM and FRE to that list as well. The overhang of all this financial detritus will continue to weigh on the markets. The sooner we resolve these issues the better.

Mr. Pipes; 8/22/2008 2:01 PM
Anonymous said...: Have MLP's always had such ridiculous volatility? 3% daily moves? Intraday swings of 4-5 or more percent?; 8/22/2008 2:06 PM
Anonymous said...: I guess the latest "forced seller" is trying to exit APL? Great day to do it (a Friday in summer with nobody working). True genuis at work here.; 8/22/2008 2:07 PM
Anonymous said...: If a GP and its MLP yield the same amount-why would anyone buy the MLP?; 8/22/2008 2:09 PM
Anonymous said...: GP's represent a leveraged claim on the LP so that they grow their distributions more quickly but they also suffer more if distribution growth reverses.

Higher risk, higher reward.

Bruce; 8/22/2008 2:20 PM
Anonymous said...: There must be a few "forced sellers" in crude this afternoon.; 8/22/2008 2:24 PM
Anonymous said...: APL last traded at this price in 2004. Is it really that bad?; 8/22/2008 2:43 PM
Anonymous said...: under the Lehman banner, is Neuberger Berman. One of the specialty portfolios of NB is the Rachlin portfolio. They invest exclusively in MLP's. The minumum investment is 2mm. They have a fabulous long term performance, but have lost heavily for over a year. Many of these investors are bailing and, as they liqidate positions [at least 2mm at a time], they are sold through the parent, Lehman. Hence, the huge evidence of MLP dumping via leh.; 8/22/2008 3:01 PM
Anonymous said...: under the Lehman banner, is Neuberger Berman. One of the specialty portfolios of NB is the Rachlin portfolio. They invest exclusively in MLP's. The minumum investment is 2mm. They have a fabulous long term performance, but have lost heavily for over a year. Many of these investors are bailing and, as they liqidate positions [at least 2mm at a time], they are sold through the parent, Lehman. Hence, the huge evidence of MLP dumping via leh.; 8/22/2008 3:01 PM
Anonymous said...: Do MLPs ever go up on days that the broad market rally's?; 8/22/2008 3:04 PM
Anonymous said...: "Do MLPs ever go up on days that the broad market rally's?"

As I write this, oil is down $6--the biggest one day drop since '91. Nat gas is down, too.All things energy are getting hit.

Bruce; 8/22/2008 3:22 PM