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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: mopgcw who wrote (54115)	6/30/2014 6:08:48 PM
From: Spekulatius	Respond to of 78594

Re MLP - a return to more normalized interest rates will impact more than just the MLPs share price. you may want to consider understanding how higher rates will impact your companies' ability to satisfy their debts, their covenants, raise capital, manage capex etc... I am not that concerned about this. I only own KMI, which is investment grade and also has a relatively high yield (or cost or capital depending on how you slice it), but that has little to do with interest rates. Some MLPs have shown supercharged growth because the low cost of capital allows for very accretive acquisitions and those are much more vulnerable since they trade as growth stock multiples rather than yield as they used to.