MLP Market Commentary-Third Quarter 2015

Investments

Given the heightened volatility in the MLP market over the past several months, we found this piece from Cumberland Advisors to be both timely and insightful. The author points to several causes of the sector’s recent decline, including the precipitous fall in crude prices, investors’ expectation of rising rates and lower overall trading liquidity, coupled with some forced selling by closed-end MLP funds. Mr. Daskin’s outlook for the MLP space is positive, given the attractive tax-advantaged yield levels (both on a relative and absolute basis) and attractive underlying valuations, post-selloff, particularly for the larger MLPs whose business models are more akin to “toll-roads,” and as such, are less exposed to commodity prices, in general.

Article: Cumberland Advisors Market Commentary – MLPs, Third Quarter 2015