CAPL - E-Brakes Slam Midstream
In a rough week for stocks of all kinds, energy stocks and midstream/MLPs stood out as particularly weak. The MLP Index declined 5.9%, including distributions, the first 5%+ decline week in nearly two years (since February 2016). The 10-year treasury rate rose another 17 basis points and sits just 17 more bps from 3.00%. Oil prices held up well and propane prices were positive even as natural gas prices cratered.
Pulling the E-Brake
The backdrop for midstream stocks was negative due to a nasty confluence of macro and micro factors, coincidentally starting with the letter