Blog Charting Opportunity in Midstream Energy North American oil and gas production will likely be a critical input to the global growth engine, and the midstream sector underpins this growth.
With the balance sheet and financing challenges that had plagued the midstream sector since 2014 now largely in the rearview mirror, we believe oil and gas master limited partnerships (MLPs) appear poised to capitalize on the North American energy renaissance. Earnings for midstream energy companies have continued to rise despite volatility in oil prices, as the chart shows, reflecting their lower correlation to oil prices, greater exposure to production volume and ability to generate predictable revenue streams from long-lived assets. With demand for oil and natural gas likely to remain robust, we believe midstream energy now offers one of the more attractive secular growth stories among all asset classes, with support from a favorable – and much improved – entry point. For more on our outlook on MLPs and midstream energy, see “Tapping Opportunity in Oil and Gas Infrastructure.” For more charts critical to understanding markets, economics and policy, visit our Smart Charts library. ACCESS NOW
Blog The ECB Is Not Done Yet The European Central Bank raised its policy rate, and more hikes are coming.
Blog Fed Seeks to Balance Competing Risks Investors face mixed signals between the Federal Reserve’s policy guidance and recent economic developments.
Blog Trying to Make Apple Juice From Oranges: The Problem With Comparing Market Pricing and Fed Projections As investors seek to pinpoint market expectations for Federal Reserve policy, it’s critical to consider not just rate projections and derivatives pricing, but the degree of uncertainty and distribution of outcomes.
Viewpoints The U.S. Debt Ceiling Debate: Expecting Resolution, Appreciating the Stakes We believe Congress will reach an agreement before the debt limit is reached, but markets could face turbulence later this year.
Blog Dollar Strength: Sum of All Fears The dollar is set to weaken as fears over last year’s shocks abate.
Blog European Outlook: Less Downside Now, But Caution Still Warranted Focusing on high quality and liquidity when taking risk in portfolios will be key in 2023, as pressure on monetary policy remains intense.
Blog Cyclical Outlook Key Takeaways: Strained Markets, Strong Bonds High quality fixed income investments can help center portfolios while offering attractive yield potential amid a likely recession in 2023.
Blog OPEC+ Production Cuts Show Energy Security Has a Price The OPEC+ plan to curb oil production complicates the global economic, inflation, and geopolitical outlook and will likely lead to higher prices for key commodities.
Blog California Climate Bills Should Support Carbon Prices The state takes a long view on environmental policy, potentially benefiting California’s cap-and-trade program.