Ned Davis suggests six MLPs to own as interest rates rise

|By:, SA News Editor

MLPs face dangerous headwinds despite the U.S. energy production boom as borrowing coasts rise, Ned Davis Research says, so the firm unveils an MLP Bond Bear Survival Portfolio containing six recommended names with the ability to produce aggressive growth in distributions.

MLPs with strong distribution growth in the next 12 months should outperform other MLPs by 15% per year, the report concludes.

Magellan Midstream (MMP), Plains All American Pipeline (PAA) and Sunoco Logistics (SXL) boast the best overall traits, the report says, but Access Midstream (ACMP), Enterprise Products (EPD) and Williams Partners (WPZ) also make the grade.