MASTER LIMITED PARTNERSHIPS

Wednesday, October 22, 2008

Watching the markets deflate here with the dow touching minus 400 pretty quickly this morning...now minus 342. MLP index down about 7 points. Its funny how you get use to these moves.

Buckeye Holdings up over 2 dollars on the tender offer. Most mlps are lower with some 1 to 2 point losses in Martin Midstream (MMLP) Natural Resource (NRP) Nustar (NS) Oneok (OKS) Holly Partners (HEP) and some others. Crude taking a 4 dollar hit right now before inventory numbers.

2 comments:

Anonymous said...: Most of time it's a battle between Fear and Greed.

Today it's a battle between Fear and extreme Fear!

HS

BTW: MLPs need the long term Bond market to unfreeze. The reason we're selling off is the fear that Debt. can't be rolled over. That means either equity financing ( dilution ), high priced debt ( reduced money available for distros ), or BK.; 10/22/2008 4:15 PM
Anonymous said...: Some "Good News":

There were fears that the Lehman CDS settlement would cause insurers of Lehman Debt to lose up to 400 billion, now the settlement is estimated to be 5.2 billion.

HS

This may result in a perceived lessoning in counter party risk, and a thawing of credit markets.

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Payment on Lehman CDS only around $5.2 bln - DTCC
Wed Oct 22, 2008 2:53pm EDT

NEW YORK, Oct 22 (Reuters) - Net payments of only around $5.2 billion were made to settle an estimated $400 billion in credit default swaps on the debt of failed investment bank Lehman Brothers, The Depository Trust & Clearing Corporation (DTCC) said on Wednesday.

DTCC clears the majority of trades in the $55 trillion, privately-traded market. Concerns had escalated ahead of Tuesday's deadline to settle the contracts that payments needed to settle losses would wreak new havoc on markets.

Analysts said these concerns were misplaced because large players in the market, such as dealers and some hedge funds, had both bought and sold protection, subsequently taking both gains and losses on Lehman's default that offset each other. (Reporting by Karen Brettell; Editing by Theodore d'Afflisio)

http://www.reuters.com/article/marketsNews/idUSN2238599120081022; 10/22/2008 4:41 PM