In Alerian’s efforts to help investors make informed decisions about MLPs and energy infrastructure, it highly prioritizes objective, transparent, and useful research. Below are the long-form white papers written as a result of these efforts. Additional research can be found in Alerian Insights.
Crude Correlations and MLPs – The Biggest Frustration of 2017
Why have MLPs exhibited a higher correlation with WTI as oil fell and a lower correlation with WTI as oil prices improved from their February 2016 bottom? In this analysis, we examine MLPs’ correlation with crude at both the index level and individual MLP level.
Size Matters: Defining and Comparing Small-, Mid-, and Large-cap MLPs
They say that everything is bigger down here in Texas but is bigger really better? What does bigger necessarily mean, especially in the context of MLPs? In the finance world, the “size” of a company is generally associated with its market capitalization, but how do we define what the difference is between a large-cap and a small-cap MLP?
Taking the Passive Versus Active Debate to MLPs
How do you choose between over 85 publicly traded MLP access products? The first step is to decide between passive or active. This study compares return, distribution growth, risk-adjusted performance, and alpha generation between the Alerian MLP Index (AMZ) and active C-corp closed-end funds and mutual funds.
How do MLPs Respond in Rising Interest Rate Environments?
With interest rates at historic lows and interest rate fears at historic highs, this piece examines how MLPs have responded in previous rising rate environments. Due to their use of primarily long-term, fixed-rate debt, as well as built-in inflation hedges, MLPs show little meaningful correlation with interest rates over the long term.