MASTER LIMITED PARTNERSHIPS

Thursday, October 09, 2008

Up nearly 9 points on the MLP index in the early going which was really a no brainer dead cat bounce open. Now lets see if it gets extended as the day goes on.

2 comments:

Anonymous said...: CP Rates Fall

By Tony Crescenzi
RealMoney.com Contributor
10/9/2008 9:48 AM EDT

Bloomberg data indicate that dealer-placed commercial paper rates fell 115 basis points to 2.35% today. That is of course a good sign. Other signs of thawing over the past two days:

drop in 10-year swap rate
rise in Treasury yields
big drop in yields Fannie Mae paid in sale of discount notes (bills)
If these conditions continue, it is likely that key gauges such as the two-year swap rate and LIBOR will finally break in a direction that sparks a rally in riskier assets such as stocks and corporate bonds. Investors in particular want to see LIBOR fall. This will be signaled by the two-year swap rate and trading in near-term eurodollar contracts, as well as in the markets mentioned above.; 10/09/2008 10:10 AM
Anonymous said...: Well well my spreadsheet has all this green ink on it ( instead of red ) this AM. I kinda like this color. Even if dead cats do bounce, if the credit markets do thaw and unemployment claims were down 20K this past stay at even modest upturns, we may muddle through.

How long before investors creep back into the market? Who cares, 12 -15% longterm returns and the Citi report of 10/06 told us that most of these MLPs have no concerns about paying the dividends and even continuing their capex programs for the next year. There were six or seven names which might have to alter or stretch out their capex programs. Everyone else was good to go.

GM; 10/09/2008 10:18 AM