Interest Rates

Currently, the 30-year fixed-rate mortgage is averaging 3.82%, roughly a two-year low, according to Freddie Mac.

CPI

CONSUMER PRICE INDEX –DECEMBER 2018

The Consumer Price Index for All Urban Consumers (CPI-U) declined 0.1 percent 
in December on a seasonally adjusted basis after being unchanged in November, 
the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, 
the all items index increased 1.9 percent before seasonal adjustment.

MLPs

In the news …

Credit Suisse downgraded Teekay Corp. (NYSE: TK) from Outperform to Neutral with a price target of $20.00 (from $41.00).Analyst Gregory Lewis commented, “TK took the axe to its quarterly distribution, dropping it 90% to $0.055 from $0.55 which puts TK’s distribution yield at 1.3%. We are downgrading TK to Neutral from Outperform and cutting our target price to $20 (from $41). Management acted conservatively in cutting distributions at TK, TOO, and TGP but with TK only yielding 1% and the prospect of distribution increases at least a year away we are moving to the sidelines.”


RBC Capital downgrades TK to Sector Perform from Outperform and lowers its price target to $16 from $52, as difficult but necessary distribution cuts put the company in a holding pattern for foreseeable future; the firm also lowers its price targets for TOO to $11 from $20 and TGP to $23 from $29.


MoneyShow says: Valuations Are Attractive but No Near-term Catalysts

Although the MLP sector looks attractive from a historical perspective, there are no near-term catalysts in sight. We do, however, expect to see a rally once the technical selling pressure is over.

Over the long-term, we expect to see MLPs trade much higher than current levels as organic and inorganic growth drive investors to the companies that have the most visible path to creating long-term value.

Remain Constructive on Long-term Outlook

We continue to prefer MLPs with geographically diverse asset portfolios, stable/visible cash flow profiles, ample liquidity to capitalize on growth initiatives, low-risk organic growth projects, manageable capital needs, and experienced management teams.
Some of the partnerships that we expect to outperform the market on a longer-term basis are: Antero Midstream Partners LP(AM), Enterprise Products Partners LP (EPD), Energy Transfer Equity LP (ETE), Rose Rock Midstream (RRMS), Plains GP Holdings (PAGP), Tesoro Logistics (TLLP), Targa Resources Corp. (TRGP), and Vanguard Natural Resources (VNR).

Leopards

In the news …

Incapital introduces, Long Execution oPreferred and Related Debt Securities