MASTER LIMITED PARTNERSHIPS

Monday, September 15, 2008

We are taking out the bottom of a year long base that goes back to 2005 and this has dire implications as there really is no support untill you get to around 200 on the MLP index. I guess that occurs if you see the dow drop another 1000 points from here.

Not out of the question.

6 comments:

Anonymous said...: I wonder how long it will be before ETE falls far enough so that it yields more than ETP. Don't laugh--it's posssible.

Meanwhile, MGG is holding up pretty well--although I cannot figure out why.

Bruce; 9/15/2008 3:25 PM
Anonymous said...: There are really no catalysts for an MLP recovery. We had blow out distributions and earnings last quarter and nobody cared. I assume more of the same this qtr.; 9/15/2008 3:30 PM
Anonymous said...: There doesn't seem to be any catalyst for an S+P or Dow recovery.

It's hard to imagine a MLP recovery without the S+P and Dow leading it.; 9/15/2008 3:47 PM
Anonymous said...: Well, what a difference a week makes.

The GSE bail-out though good for markets was incomplete, in that it screwed the preferred shareholders damaging small banks.

Lehman fails, no one even wanted it for a buck. On Sept 8, it was over 17.00 a share.

Oil colapses and the market doesn't noitice any bullish implications.

AIG looks like it can't survive, it was over 24.00 on Sept. 8.

Now everyone is scared s**tless.; 9/15/2008 4:16 PM
Anonymous said...: Assuming the market is telling us anything, as opposed to random panic selling, the reason LPs are doing somewhat better than GPs, is because MR. Market is expecting that there will be a decline (or least not much of a rise) in distributable funds.

Most MLPs have a structure that gives LPs a superior first call on distributable funds than GPs.; 9/15/2008 4:36 PM
Anonymous said...: Also notice that the yields of MGG and MMP are within a half percent of each other! Before the meltdown, the market had been keeping the yield spread in the range of 200+ basis points, presumably because of the leverage to distribution growth at MGG. MMP/MGG are two trading instruments representing the same underlying entity -- could this and other MLP/GP situations be ripe for an arbitrage play?; 9/15/2008 11:18 PM