As the coronavirus has continued to negatively affect the world’s economy and plague social services, the Federal Reserve has once again returned to its zero-interest rate policy (ZIRP) to spur growth. For income seekers, this has continued to make their jobs harder. With lower rates, finding sources of good yields mean venturing back into unchartered waters and asset classes. With their double-digit yields, master limited partnerships (MLPs) are once again on the menu.
Investors may want to consider the sector – albeit, in small doses.
The sector is no longer as stable as it once was. And those high yields now represent some big risks. However, valuations for the sector may be worth the gamble given the potential.
Check out our guide on MLPs here.