- It’s understandable that energy MLPs would trade lower along with the broader energy sector, but they should not fall as far as direct plays on oil and they should not be performing even worse - but by some measures, that is exactly what is happening, Barron's Amey Stone writes.
- Raymond James analysts believe MLP's correlation with high-yield bonds in a rising rate environment is a big reason for the group's underperformance, and that the current pricing action may be an overreaction.
- The analysts believe MLPs will trade considerably higher than current levels over the next 12-plus months, as both organic and inorganic growth in the midstream/MLP sector drives investors to allocate capital to the companies and partnerships with the most visible pathway to creating long-term value.
- ETFs: AMLP, AMJ, KYN, MLPL, YMLP, TYG, SRV, KYE, CEM, MLPI, NML, FEN, NTG, MLPA, KMF, EMLP, FMO, MLPN, SRF, FEI, JMF, CBA, MLPG, MLPX, GMZ, EMO, MLPS, MLPY, TTP, CTR, YMLI, AMU, CEN, MLPJ, ZMLP, GER, AMZA, SMM, MIE, DSE, ENFR, FPL, ATMP, JMLP, MLPC, MLPW, IMLP