AMUB - The Renaissance Of Pipelines

March, 09 2021 11:07 AM ETRACS Alerian MLP Index ETN Series B due July 18 2042

Pipelines are undergoing a renaissance of cash generation today. The pandemic and low commodity prices increased uncertainty in the industry, and pipeline companies stopped investing in new projects and have thus been generating enormous cash flows.
This trend did not start in 2020, but a few years back, as their shareholder base changed from retail to institutional investors. They generate cash flows and then decide what is the best use for the cash (after they pay a reasonable dividend).
Two companies stood out when we analyzed pipelines in January 2020: Magellan Midstream and Enterprise Products Partners. However, at the time we decided to do nothing - they were not cheap enough. Ten months later, they were.

For further details see:

Company Name:	ETRACS Alerian MLP Index ETN Series B due July 18 2042
Stock Symbol:	AMUB
Market:	NYSE