- The historical excess yield spread between MLPs and 10 Year Treasuries is around +300 basis points
- An MLP, like all partnerships, is a pass-through entity which pays no tax itself. It is treated by the tax code not as a separate entity, but as a collection of partners. The unit-holder is treated for tax purposes as if he is directly earning the MLP's income.
- Each unit-holder is allocated a proportionate share of the MLP's income, gain, deductions, losses, and credits. This is reported annually in the K-1 Form.
- Under the tax code, the distributions are a return of capital and are not taxed when received.
** Information provide from the National Association of Publicly Traded Partnerships