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About Me
- joewxman
- a meteorologist with a knack for trading and investing in MLPS! I also like horse racing, enjoy cigars and a good port wine.
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2 comments:
Joe, I am intrigued by the new MLP ETN, MLPL; supposed to return twice the monthly price move and twice the dividend. I have not yet pulled the trigger on buying shares because, as they say, something that sounds too good to be true probably is. Any thoughts on what sort of dividend/interest it may pay this quarter (admittedly, MLPL has been in existence only part of the quarter), next quarter, and quarters beyond? Also, I wonder how the dividend will hold up if/when MLPs go down and/or interest rates in general go up.
Thanks,
JCarroll
Since mlpl is supposed to pay 2x the yield on the mlp index, it will be certainly interesting to see and i guess they wont payout until everyone else has. So that makes the ex distribution date here very important.
You pose a very good question and i guess the answer depends on whether your willing to accept 2x the risk, 2x the volatility. And i have been posing the question of how this is going to play on the overall volatility of mlps in general should we have another one of those mass exodus's aka Lehman. There etn did a number on mlps in the great lehman unwind. Not saying that UBS is Lehman but after 2008, you have to consider if there is another crisis one day down the road....what if?????
In the short term however we're still very close to all time highs here and i guess for now that remains the primary driver. In the end i leave you with this question. What if all these etfs and etns coming on line is a sign of froth and pointing to some sort of longer term top. Something i guess we'll only know in hindsight.
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