ValueMaven Posted March 30, 2020 Share Posted March 30, 2020 ETP-PD and ETP-PC are two MLP preferreds which are getting serious whacked right now. These are $25 pars - trading in the low-$12 range. What are the pros and cons of MLP Preferreds? Do they issue K1s? ETP's equity is down about 20% right now - but does have a $25B market cap and is lead by Kelcy Warren - who is well known in the MLP space. These might be interesting 'defensive' preferred securities trading 50% of par ValueMaven Link to comment Share on other sites More sharing options...
BG2008 Posted March 30, 2020 Share Posted March 30, 2020 Kelcy Warren is known for screwing minority and you should read the preferred documents very closely. If he can get away with it, he will. Link to comment Share on other sites More sharing options...
NoCalledStrikes Posted March 30, 2020 Share Posted March 30, 2020 Preferred Units issue K-1s. The boxes are filled out a little different than regular MLP units as all the income effectively gets reported as interest and there is no depreciation, but its still a K-1. But the killer for me is that you still have multi-state tax filings to deal with depending on how much you invest in the preferred and how much you worry about getting a letter from out of state 5 years from now asking about a filing penalty. Link to comment Share on other sites More sharing options...
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