MASTER LIMITED PARTNERSHIPS

Wednesday, October 01, 2008

The mlp tape when it was down 3 points had a feel of a reversal and indeed it has reversed and turned higher by 1.50. The leaders are Magellan (MMP) Oneok (OKS) and Nustar (NS) all showing 1 point plus gains. The Crosstexes (XTXI, XTEX) are down 3 and 1.75 respectively as the biggest losers although both are well off their lows of the day.

Its the market dog wagging the mlp tail but being higher is always a good thing.

4 comments:

Anonymous said...: Oct. 1 (Bloomberg) -- General Electric Co. plans to offer $12 billion in common shares and billionaire investor Warren Buffett's Berkshire Hathaway Inc. will buy $3 billion stake of preferred shares.

Buffett's stake will pay an annual 10 percent dividend and are callable after three years at a 10 percent premium, Fairfield, Connecticut-based GE said today in a statement distributed by Business Wire. Buffett also gets warrants to buy $3 billion of common stock with a strike price of $22.25 a share for five years.

GE paying 10%!

The relative value argument for owning MLPs gets thrown out the door. If GE has to pay 10% for 3 year money, how the hell can MLPs make it?; 10/01/2008 2:15 PM
Anonymous said...: Prices offered as of 2:18 pm today for AAA 10 year paper.

Often one can negotiate a price lower by a buck or so with a large buy order.

Warren Buffett gets extra yeild for his "Seal of approval".

HS
-----------------------------------
717081AQ6
Industrial 7
5 Pfizer Inc
Non Callable, NYBE, PFE 4.650 03-01-2018
Aa1/AAA 4.618
Mat 100.239 Buy Sell
717081AQ6
Industrial 1289
20 Pfizer Inc
Non Callable, NYBE, PFE 4.650 03-01-2018
Aa1/AAA 4.790
Mat 98.944 Buy Sell
717081AQ6
Industrial 269
5 Pfizer Inc
Non Callable, NYBE, PFE 4.650 03-01-2018
Aa1/AAA 4.807
Mat 98.820 Buy Sell
36966RDL7
Financial 16
16 Ge Capital Internotes
Callable, Next Call 01-15-2009 @ 100.000, Spec Redemp 5.250 04-15-2018C
Aaa/AAA 6.332
Mat 92.307 Buy Sell
36962G3U6
Financial 100
5 General Elec Cap Corp Mtn Be
Non Callable, NYBE, GE 5.625 05-01-2018
Aaa/AAA 7.138
Mat 89.631 Buy Sell
36962G3U6
Financial 100
25 General Elec Cap Corp Mtn Be
Non Callable, NYBE, GE 5.625 05-01-2018
Aaa/AAA 6.945
Mat 90.879 Buy Sell
084664BC4
Financial 19
5 Berkshire Hathaway Fin Corp
Non Callable, Rule 144A*, Make Whole Calls 5.400 05-15-2018
Aaa/AAA 5.246
Mat 101.148 Buy Sell
36966REP7
Financial 10
10 Ge Capital Internotes
Callable, Next Call 11-15-2008 @ 100.000, Spec Redemp 5.000 05-15-2018C
Aaa/AAA 6.342
Mat 90.446 Buy Sell
36966RFT8
Financial 50
5 Ge Capital Internotes
Callable, Next Call 11-15-2008 @ 100.000, Spec Redemp 4.650 06-15-2018C
Aaa/AAA 6.447
Mat 87.075 Buy Sell
36966RFT8
Financial 47
10 Ge Capital Internotes
Callable, Next Call 11-15-2008 @ 100.000, Spec Redemp 4.650 06-15-2018C
Aaa/AAA 6.117
Mat 89.293 Buy Sell
36966RFN1
Financial 21
21 Ge Capital Internotes
Callable, Next Call 11-15-2008 @ 100.000, Spec Redemp 4.500 06-15-2018C
Aaa/AAA 6.011
Mat 88.919 Buy Sell
869049AG1
Unknown 15
15 Susa Partnership L P
Non Callable, Make Whole Calls 7.450 07-01-2018
Aaa/AAA 7.431
Mat 100.114 Buy Sell
478160AU8
Industrial 250
10 Johnson & Johnson
Non Callable, Make Whole Calls, NYBE 5.150 07-15-2018
Aaa/AAA 4.877
Mat 102.088 Buy Sell
478160AU8
Industrial 350
5 Johnson & Johnson
Non Callable, Make Whole Calls, NYBE 5.150 07-15-2018
Aaa/AAA 4.910
Mat 101.834 Buy Sell
478160AU8
Industrial 100
5 Johnson & Johnson
Non Callable, Make Whole Calls, NYBE 5.150 07-15-2018
Aaa/AAA 4.771
Mat 102.920 Buy Sell
478160AU8
Industrial 470
5 Johnson & Johnson
Non Callable, Make Whole Calls, NYBE 5.150 07-15-2018
Aaa/AAA 4.850
Mat 102.301 Buy Sell
71713UAQ5
Industrial 250
10 Pharmacia Corp
Non Callable, Make Whole Calls 6.500 12-01-2018
Aa1/AAA 5.135
Mat 110.687 Buy Sell
71713UAQ5
Industrial 570
5 Pharmacia Corp
Non Callable, Make Whole Calls 6.500 12-01-2018
Aa1/AAA 5.065
Mat 111.271 Buy Sell
71713UAQ5
Industrial 1211
20 Pharmacia Corp
Non Callable, Make Whole Calls 6.500 12-01-2018
Aa1/AAA 5.044
Mat 111.448 Buy Sell; 10/01/2008 2:22 PM
Anonymous said...: What you're missing is that Buffet is OK with his investment as it is. But you can bet that he is betting that these conditions are temporary and that by the time these prfds are callable, he will have a very substantial gain in them, while having collected a 10% return for waiting. The problem for us that we don't know how "temporary" these conditions are. Time works against us because credit lines have to rolled over or renewed from time to time.; 10/01/2008 2:22 PM
Anonymous said...: "The relative value argument for owning MLPs gets thrown out the door. If GE has to pay 10% for 3 year money, how the hell can MLPs make it?"

It is clear that expansion plans for MLPs need to be dramatically scaled down until credit markets calm down.

Now lowering capital needs should be the rule.

A secure distro of 9-12 percent will look good ( even if there is little or no growth of distros ) once armageddon is taken off the table.; 10/01/2008 2:32 PM