Yorkville High Income MLP (YMLP)
It only took a few weeks last May for YMLP to fall 6% in value. From some people’s perspective, it may be difficult to get excited about an investment where most of the annualized cash flow could be wiped out in a few weeks of rapidly rising rates. Then again, with $250 million in assets under management and a distribution yield of 8.9%, there are plenty of dollars chasing the pipeline possibility.
Perhaps surprisingly, YMLP recently hit a 52-week high. If rates manage to finish 2014 where I expect them to finish — with the 10-year at 2.75% — YMLP could see a modicum of capital appreciation to add to “junk-bond-like” cash flow. Keep in mind, I am not recommending that investors hold-n-hope for a particular outcome with this price sensitive investment; rather, I am pointing out that yield chasing has not evaporated in the wake of expert predictions that rates have to go higher.