Low interest rates have helped MLPs raise capital at a reasonable cost, enabling returns well...

|By:, SA News Editor

Low interest rates have helped MLPs raise capital at a reasonable cost, enabling returns well above their cost of capital and supporting cash distribution growth, but Simmons analysts say investor interest should remain strong even as rates rise - though due diligence will be more important than ever. Darren Schuringa says it's crucial to measure an MLP’s coverage ratio rather than the actual money it pays out.