If you want to discuss the reach for yield, ground zero has been MLP's. The strong consistent yields have been a place where investor flows have run to. The "safety" of MLP was a key argument for their preference over high yield. Their higher yields made them more attractive to dividend paying stocks and corporates, but the decline in energy prices and the continued supply from issuers have changed the dynamics of this "cheap" source of yield.
This is a "canary in the coal mine" for the what is going to happen with credit products if we have economic slowdown and a rise in interest rates. If there is a return of RO/RO trading, MLP's will see further deterioration versus other yield products. The search for yield may become the demand for safety sooner than we think.
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