MASTER LIMITED PARTNERSHIPS

Wednesday, September 24, 2008

MLP index has turned lower by a small fraction.

3 comments:

Anonymous said...: If Congress chooses not to pass the bailout plan I would expect the Dow to implode.; 9/24/2008 1:32 PM
Anonymous said...: Loans Prices Tumble to Record Lows as Bailout Plan Is Debated

By Pierre Paulden

Sept. 24 (Bloomberg) -- Prices of high-risk, high-yield loans fell to record lows as Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke sought to convince Congress to pass legislation to stabilize financial markets.

The price of the average actively traded leveraged loan fell 0.42 cent to 83.74 cents on the dollar, according to Standard & Poor's LCD. Prices have slumped 3.84 cents since Sept. 11, four days before Lehman Brothers Holdings Inc. filed for bankruptcy protection.

Price declines will make it harder for junk-rated companies to borrow as investors opt instead to buy existing debt trading at distressed levels. Lehman's withdrawal from lending, the acquisition of Merrill Lynch & Co. by Bank of America Corp. and other potential finance mergers may exacerbate already tight lending conditions, Fitch Ratings said in a Sept. 22 report.

``The bottom line is that if world-class former investment- grade companies are finding it difficult to raise capital, speculative-grade companies will find it even harder to obtain funding,'' said Christopher Garman, chief executive officer of Garman Research LLC in Orinda, California.

Some hedge fund managers are selling assets to prepare for client redemptions at the end of the month and Lehman could unload holdings, Garman said. Lehman had $7.1 billion of high- yield loans and bonds on its book, the bank reported Sept. 10.; 9/24/2008 1:36 PM
Anonymous said...: Now Bernanke + Paulson have the task of frightening Congress (about the DIRE consequenses of not adopting the Paulson plan into action) without frightening investors even more.

My prediction is that Congress will approve a slightly modified version of the bill, with a voice vote... there will be Aye's + Nays,

It will be called as the Ayes have it....but every member of Congress can claim to have been a Nay!

Maybe... It's just wishful thinking, but I hope Congress will act responsibly.

HS; 9/24/2008 2:23 PM

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