There was once a school of thought that master limited partnerships were not sensitive to oil prices, but few would beg to differ that this income-generating asset class is sensitive to fluctuations in interest rates.
This year, the latter thesis is in tact while the former has been dealt a significant blow. Over the past 90 days, one of every nine of the worst-performing exchange traded products are MLP funds or exchange traded notes (ETNs). The goods news for disciples of this beloved income asset class is that, for patient investors, things could get better.
New Research
As Barron's reports, new research from Credit Suisse notes that MLPs “post gains in the year following points when the yield spread over the 10-year Treasury is more than 5 percentage points. It is just 3 basis points from that level now. He (analyst John Edwards) judges the index has 40% total return potential from here.”
There is no shortage of ways with which to play a potential MLP rebound with ETFs, but there are some funds with decent exposure to some of Credit Suisse's top ...
/www.benzinga.com/trading-ideas/long-ideas/15/08/5758084/there-might-be-some-good-news-for-mlp-etfs alt=There Might Be Some Good News For MLP ETFs>Full story available on Benzinga.com
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