“When you have a hot asset class like this, the quality of new issues gets lower and lower the more investors thirst for it,” said Peter Langas, head of investment strategies at Bessemer Trust, in the WSJ story.
Finally, MLPs and ETFs tracking the sector have complicated tax issues that investors need to understand before jumping in. [Master Limited Partnership ETF: Morningstar Warns on Taxes]
JPMorgan Alerian MLP Index ETN
Full disclosure: Tom Lydon’s clients own AMLP.