MASTER LIMITED PARTNERSHIPS

Wednesday, October 01, 2008

I don't know the basis for the Goldman downgrade on Crosstex (XTXI) but its down 4 and Crosstex (XTEX) which i do not see a downgrade for. Still XTXI is down 4 to 20 and XTEX is down 3 and change to under 15!

MLPS down about 3 points as the dow hits minus 200.

6 comments:

Anonymous said...: An example of the bullshit going on right now:

Doug Kass
Explaining the Paper Chase
10/1/2008 10:10 AM EDT

This is important and might help to explain the blowout in credit spreads on General Electric paper.
We are hearing that a $30 billion Gordian Knot sponsored SIV (SIGMA) was invested heavily in asset-backed and unsecured debt in financials -- including GE credit bonds.

According to sources, SIGMA has been borrowing heavily to make coupon payments, and yesterday a counterparty (apparently JPMorgan) called in their collateral backing of a repo line to them.

Much of that collateral was in the form of GE Commercial credit -- which is being sold -- and resulting in GE CDS spreads widening out.; 10/01/2008 10:29 AM
Anonymous said...: If I can buy 10 year GE paper for 8%, why would anyone buy an MLP yielding 9%?; 10/01/2008 10:31 AM
Anonymous said...: "If I can buy 10 year GE paper for 8%, why would anyone buy an MLP yielding 9%?"

They aren't, and haven't been.; 10/01/2008 10:52 AM
Anonymous said...: "If I can buy 10 year GE paper for 8%, why would anyone buy an MLP yielding 9%?"

They aren't, and haven't been.; 10/01/2008 10:53 AM
Anonymous said...: If 10 year GE paper is selling today to yield 8%, because of some disruption... the issue really is what will this paper be selling in 2 or 3 weeks.

I'd think Dan Fuss ( Loomis Sayles ) and others will be buying this paper with both hands.

HS; 10/01/2008 11:27 AM
Anonymous said...: I thought this - somebody would buy with both hands - already long time ago with reference to MLPs, Closed Ends etc. but nobody seems to have enough or surplus cash any more.

The point is: there will be a stop to this free fall and it is simply around the 20% level, as then each quater the holders get 5% and are thus able to absorb the sales of the forced sellers after which at some point there will be no more sellers and the bottom is in.; 10/01/2008 12:40 PM