Index Maven

Bear Stearns' New MLP ETN - Seeking Insight

Roger,

I have all the docs but can't attach them here and the SEC link does not auto transfer. However, if you go to the link below and serch the term "AMZS" you will find what you're looking for. The hook with this ETN is the K-1 tax issue. When a U.S. person buys an MLP that person may find themselves filing in 30 or more states (not fun). I think most people that buy MLPs ignore the state filing but that is dangerous. There is no ETF to invest in MLPs (due to a different tax issue affecting registered investment companies). However, there is a new CEF on the market to play MLPs (see ticker MTP). There are other CEFs that are MLP dedicated like FEN, FMO, KYE, TYG, TYY, KYN --- but only MTP has the tax favored status of being a registered investment company like many ETFs. The Bear ETN (ticker BSR) and the new fund MTP provide access the asset class with no tax issues. Note that BSR is not tax favorable -- all coupons are fully taxable.
Link to BSR FWP:
searchwww.sec.gov/EDGA...