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Must-know: 1 important way Fed tapering affects MLPs

Must-know: 1 important way Fed tapering affects MLPs (Part 1 of 3)

Why rising interest rates affect master limited partnerships

Interest rates and MLPs

With Fed tapering now in effect, interest rates have been creeping up since reaching practically all-time lows in late 2012 and early 2013. Master limited partnerships, or MLPs, frequently tap the capital markets to raise funds for growth projects. So higher interest rates mean that the cost of this capital is more expensive.

10 Year TreasuryEnlarge Graph

In this series, we’ll discuss the current interest rate environment and why it affects MLPs in particular.

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