TYG - Revisiting MLP Performance As Interest Rates Rise
By Stacey Morris
With the 10-year Treasury yield recently touching highs not seen since 2011, it seems like an opportune time to revisit MLP performance in a rising interest rate environment. We discussed this topic in detail in a 2015 white paper, which provides historical context going back to the mid-1990s. Today, we'll focus on how MLPs have performed in rising rate environments since 2013 and key differences with the current environment that could have a bearing on MLP performance as rates increase.
For MLPs, rising interest rates can be a headwind in two