A more tangible risk to the MLP space is the recent flurry of IPOs. CNBC's Bob Pisani reported that of 44 IPOs since September, seven of them have been MLPs. Demand for MLPs and funds that own MLPs is hot and, in a pattern repeated many times before, the investment industry is creating more supply to meet the demand. The risk is that too much supply is created and prices go down.
For now, though, investors need yield and the market is not saturated now with MLPs, which makes for a continued favorable backdrop for the segment.
At the time of publication the author had no position in any of the stocks mentioned.