Please note: This article was updated to reflect closing bell prices.

What has happened with MLPs is that the sector has been under pressure for more than a week. The key exchange-traded product we track in this sector is the JPMorgan Alerian MLP Index ETN (NYSE: AMJ), and its price has fallen in each and every session for six days in a row before Thursday’s trading. Will the selling trend be snapped on Thursday as shares of this ETN is actually up 0.9% at $44.51 in mid-afternoon trading against a 52-week trading range of $35.83 to $49.31. If the last distribution remains static, the “yield-equivalent” is about 4.85%. Closing price Thursday: up 2.86% at $45.35

We are also seeing the same six-day streak in the closed-end fund Kayne Anderson MLP Investment Company (NYSE: KYN), although that could more easily be a 7-day losing streak because mid-day trading on Thursday is down 7-cents at $34.75 versus a 52-week range of $27.25 to $39.07. The yield equivalent here is 6.5% but we would caution that this closed-end fund does use leverage to control more assets. Shares closed up 3-cents at $34.85 to break its streak.

Read Also: Rising Interest Rate Risks for MLPs

One of the key drivers on Thursday is Enterprise Products Partners L.P. (NYSE: EPD) as the largest of the MLP with a market cap of almost $54 billion. Its “yield equivalent” distribution is still somewhat low compared to other MLPs at 4.5%, but the units are up 1.4% at $59.35 against a 52-week range of $47.26 to $63.56. Closing update: Units closed up 1.44% at $59.36.

Another gain is being seen in units of Kinder Morgan Energy Partners, L.P. (NYSE: KMP) with a gain of 0.9% at $82.86. Its 52-week range is $74.59 to $92.99 and its “yield equivalent” distribution screens out at 6.2% as of now. Units closed up 2.3% at $84.03.

One ETF which has not followed the every day drop is Global X Junior MLP ETF (NYSE: MLPJ), although it is down 1-cent at $15.53 against a post-launch range of $15.09 to $16.37. Be advised that this ETF is much more thinly traded and has a yield around 7.2% if that remains static. The ETF closed up 3-cents at $15.57.

Read Also: Value Among the Most Battered Big-Cap REITs

We have been featuring the interest rate sensitive sectors with frequency so that investors are not caught off balance when rates really do start to rise again (whenever that may be). From trough to the peak of the rate rise, the move in longer yields was only about 60 basis points. Imagine what could happen to the pricing here if rates rose 150 basis points or 250 basis points.

We have featured many sectors this week for a rising interest rate risk group. Dividend investors better pay attention. Some of these have what may be severe risk if interest rates rise, even if the overall equity market remains strong. The move may push some investors toward growth. Other investors will simply decide that if they can make a half-point or full point higher in Treasury yields without the equity market risk then they will take that. We already saw that investors would suddenly chase higher interest rates in this week’s Treasury note auctions.

Not all banks will flop under higher or rising interest rates. Banks generally just have to avoid inverted yield curves. One analyst report from the team at Merrill Lynch went on to show that Wells Fargo & Co. (NYSE: WFC) and others would win in higher rates, while others would lose. That full list is here.

Before looking further, we did issue a primer in the recent days that is meant to act as a How-To Guide on how to short Treasury bonds. If the next great short is bonds there are ways that Joe Public can make money just like the hedge fund managers.

The high payouts from the Master Limited Partnership sector are considered to be at risk by some investors, although the risk is likely an asset preference risk by investors more than a serious business risk. Deutsche Bank gave a list of the safer MLPs, showing that Enterprise Products Partners L.P. (NYSE: EPD) topped its list. We would caution that JPMorgan Alerian MLP Index ETN (NYSE: AMJ) tracks this broad sector and it has been in a downward trend for almost two weeks and is down close to 10% from its recent highs. There may be value when the dust settles, but investors often shoot first and ask questions later.

Mortgage REITs face a dual risk at the current time. Rising rates creating duration risk is one thing, but low prepayments and a low supply of conventional mortgage-backed securities is another. Annaly Capital Management, Inc. (NYSE: NLY) is considered one of the best of the MBS REITs and it screens out having a 12.5% yield. To show just how bad the rate risk is here, Annaly shares have rallied only once in about two weeks and that rally was so small it was unnoticed. Investors can also look at the close to the same trading pattern in the more diversified Market Vectors Mortgage REIT ETF (NYSE: MORT). Oppenheimer has loosely defended some of the players in this sector but the verdict remains out.

One of the biggest risk sectors is in electric utility stocks. Investors used to use these as the new equivalent of CDs, but higher rates mean that the long-term borrowing costs go much higher to finance long-term power projects that may have a life of 30 to 40 years. The Utilities Select Sector SPDR (NYSE: XLU) may have finally stabilized, but this was down almost 10% from the highs at the start of May. FirstEnergy Corp. (NYSE: FE) was hit hard with an analyst downgrade this last week and shares have not recovered much, leaving it with a dividend yield back above 5%.

Drug stocks are supposed to be safe havens as well. Pfizer Inc. (NYSE: PFE) has performed poorly in recent days and shares are now down 10% from their recent highs. Merck & Co. (NYSE: MRK) has still held up well likely because its yield is higher at 3.6%. Procter & Gamble Co. (NYSE: PG) has now pulled back more than $5 from its $82.54 high even though the activists succeeded in getting its CEO out of the picture. Its yield is about 2.9%, but investors are staying away as P&G still trades at almost 20-times earnings.

We recently reviewed that Sterne Agee went out defending the homebuilder sector. While this group is not known for paying out high dividends at all (or any dividends), housing is of course very prone to being interest rate sensitive. PulteGroup, Inc. (NYSE: PHM) was defended in this call, but the entire group remains at least at some risk here even as housing markets are recovering.

Perhaps the ultimate risk in rising rates, or at least a huge unknown, is gold. Gold has been battered and has lost its reserve currency alternative status for investors after a 12-year bull market. What is interesting is that despite the risks in being a miner is that the mining stocks got back to 2008 or 2009 levels and have become so cheap to gold that value investors have to at least given them a review.

Are interest rates going to rise as fast as the worst case scenario? Probably not, but when rates do reverse the easy-money status that has been in place for years you can bet that the move higher will be much more than just the 50 basis points or so that you have seen in recent weeks.

Keep in mind that a rising interest rate environment is not likely to make companies decide to stop lifting their dividends. What may change is that investors will become much more selective about their dividend investments, and they may avoid some of the sectors which had been in so much favor for dividend lovers of late.

Investors need to understand that MLPs are technically “units” rather than shares, as these are partnership interests rather than shares of stock. The largest MLP conference of the year is on tap, and the mood is expected to be considerably more festive this year than last year. Fundamentals remain strong, particularly in the oil production area, though pipeline additions are contributing to falling basis. Natural gas liquids (NGL) production continues also to surprise to the upside, especially in the Marcellus and Utica shale plays.

Here are Credit Suisse’s top MLPs to buy now for the next 12 months.

Williams Companies Inc. (NYSE: WMB) is the top stock to buy at Credit Suisse. The company’s strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins and increase in stock price during the past year. The Credit Suisse price target for the stock is $49. The Thomson/First Call estimate is $40.50. Shareholders receive a 3.60% distribution. Remember, MLP distributions can contain return of principal.

QR Energy L.P. (NYSE: QRE) may be a stock to buy for yield-hungry investors. QR Energy recently has expanded into the Permian Basin, and it now makes up 35% of production and proved reserves. Credit Suisse has a $20 price target, and the consensus is at $20 as well. Investors are paid a whopping 11.20% distribution.

Cheniere Energy Inc. (NYSEMKT: LNG) is the operator of the coveted Sabine Pass LNG terminal and is the leader in the export of the product. Credit Suisse has a $38 price target, but the consensus target is much lower at $32. The company does not pay a distribution.

Targa Resources Corp. (NYSE: TRGP) recently completed a $625 million senior note offering to reduce current borrowing costs. Credit Suisse has an $82 target on this top name. The consensus is much lower at $73. Shareholders are paid a 2.90% distribution.

Cheniere Energy Partners L.P. (NYSEMKT: CQP) is a subsidiary of Cheniere Energy. This is the Cheniere entity that actually owns and operates the Sabine Pass LNG terminal. Credit Suisse has a $31 target for the stock. The consensus is $26, which is below its current trading level. Shareholders are paid a solid 6.00% distribution.

Crosstex Energy L.P. (NASDAQ: XTEX) engages in gathering, transmission, processing and marketing natural gas, natural gas liquids (NGLs) and crude oil primarily in the north Louisiana, north Texas and Ohio River Valley. Credit Suisse has a $22 price objective, while the consensus is at $21. Shareholders receive a very nice 6.40% distribution.

Access Midstream Partners L.P. (NYSE: ACMP) is one of the MLP names to buy. The company has established a large-scale position in all the key unconventional basins in the United States. Credit Suisse’s $46 price target is right in line with the consensus target. Investors are paid a 4.30% distribution.

Genesis Energy L.P. (NYSE: GEL) announced it will expand its existing rail terminal in Natchez, Miss., designed to handle straight and minimally diluted bitumen delivered by the Canadian National Railway, and construct a new unit train loading facility in the heart of the Powder River Basin of the Niobrara Shale Play. Credit Suisse has posted a $53 price target. The consensus is at $51. Investors are paid a 3.80% distribution.

The Credit Suisse team has stressed and continues to emphasize a more defensive posture, and they are focusing their attention on large, relatively liquid, investment grade MLPs or affiliates with exposure to the coming crude oil production boom in North America. Given the solid run by MLP names so far this year, that advice makes good sense for investors.

The MLP research team at Merrill Lynch agrees with that theory and, in a new report out today, highlight the stocks they think can grow and expand their current business models, while increasing their distributions to shareholders. We always like to remind our readers that distributions from MLP stocks may contain return of principal.

We screened the Merrill Lynch top picks for the stocks to buy that may have the highest distribution increases.

Access Midstream Partners L.P. (NYSE: ACMP) fits the model, as it just increased its distribution last week by 4%. Merrill Lynch’s price target for the stock is $44. The Thomson/First Call estimate is also $44. Unitholders receive a 4.40% distribution.

Buckeye Partners L.P. (NYSE: BPL) recently hit a 52-week high. The Merrill Lynch price target for this top name is $65. The consensus price target is much lower at $58.50. Buckeye pays a 6.60% distribution.

Enbridge Energy Partners L.P. (NYSE: EEP) owns the U.S. portion of the world’s longest liquid petroleum pipeline, which transports crude oil and natural gas from western Canada to refining centers in the Midwest and Ontario, Canada. Merrill Lynch’s target for the stock is $32. The consensus estimate is $30. Enbridge pays a 7.40% distribution.

Enterprise Products Partners L.P. (NYSE: EPD) reported solid numbers today. The Merrill Lynch price objective for the stock is $64. The consensus target is also $64. Unitholders receive a 4.40% distribution.

Genesis Energy L.P. (NYSE: GEL) is another top pipeline name. Merrill Lynch has a $50 price target. The consensus estimate is at $47. Genesis pays a 4.20% distribution.

Inergy Midstream L.P. (NYSE: NRGM) just increased its distribution for the fourth consecutive time. Merrill Lynch has a $27 price target. The consensus is $26. Unitholders are paid a 6.20% distribution.

Markwest Energy Partners L.P. (NYSE: MWE) just raised its payout 5.1% year-over-year. Merrill Lynch has a $64 target. The consensus target is $61. Unitholders are paid a 5.30% distribution.

Plains All American Pipeline L.P. (NYSE: PAA) rounds out the Merrill Lynch list. This widely held named recently raised its distribution 10% and has increased its payout for 15 straight quarters, and 34 of the past 36 quarters. Merrill Lynch’s price objective is $58. The consensus estimate is close at $57. Unitholders are paid a 4.00% distribution.

There are three key vehicles that offer diversification in the MLP sector as well. Two key ETFs are JPMorgan Alerian MLP Index ETN (NYSEMKT: AMJ) and ALPS Alerian MLP ETF (NYSEMKT: AMLP). The key closed-end fund for this sector is the Kayne Anderson MLP Investment Co. (NYSE: KYN), although we would remind investors that this fund employs leverage in its holdings.

Growing distributions while growing the business, that is the key for MLP stocks for the rest of 2013. Investors can anticipate yields will stay low for the foreseeable future. So even if the total return figures for the sector slow the rest of the year, they should still provide solid returns for investors.

MLPs have payouts rather than traditional dividend yields. They are passing on some income out that is taxed, but the tax advantage from so much of the payout comes from the fact that the lion’s share of payouts is structured as a return of capital rather than income. These payouts are to units rather than shares and they can make your taxes harder for some tax preparers as well. So with most MLPs tied to the oil business and with Washington D.C. wanting revenue from wherever it can find it, this tax-advantage situation is a constant threat to the sector. It also needs to be known that MLPs are not the big oil companies that the public generally debates about tax breaks.

Fitch’s take is that any phase-out of the pass-through tax status of U.S. master limited partnerships could bring a significant restructuring of the sector with different implications for both bond and equity holders. Trust us when we say that a change in the tax structure would destroy billions upon billions market value in this MLP sector. As a reminder, MLPs are generally the pipelines and storage systems in the oil and gas sector rather than being in exploration, drilling, and the like.

One key issue to consider is that when this happened in Canada, it was devastating to investors there. Another point is that this may actually trigger M&A activity in the sector. Fitch pointed out that the smaller MLPs would become attractive candidates for merger and acquisition activity. Several positive analyst views have been issued of late and we have covered many of these in recent days and weeks:

• UBS Positive on MLPs
• Deutsche Bank Sees Pipelines & MLPs Rising Big in Q2
• Many MLPs recently raised billions in new investment capital
• Credit Suisse Shows MLPs That Will Thrive Even Under Higher Rates
• Top MLP Stocks (Units) For 2013 from Credit Suisse

Fitch said, “The longstanding focus in Congress on locating new sources of tax revenue and the fact that the sector has seen explosive growth over the last several years highlight the importance of examining any potential impact of a phase-out scenario on MLP issuers… A tax status change would eliminate the cost-of-capital advantage that MLPs have traditionally had in bidding for industry assets against traditional corporate competitors.”

The MLP sector has held up rather well during the recent volatility. JPMorgan Alerian MLP Index ETN (NYSEMKT: AMJ) trades at $45.95 and the all-time high and 52-week high is $46.22. This payout is listed as 4.59%.

Another ETF is the ALPS Alerian MLP ETF (NYSEMKT: AMLP) and at $17.71 it is within a dime of a 52-week and all-time high. Its payout is listed as 5.72%.

One last MLP for this sector is an interesting play as it tracked the junior and smaller market value MLPs that most ETFs overlook. This is the Global X Junior MLP ETF (NYSEMKT: MLPJ) and this new ETF’s indicated payout was closer to 7% but we would stress that this was based solely off of one distribution only so far.

Kayne Anderson MLP Investment Company (NYSE: KYN) is a closed-end mutual fund that uses some leverage for its investors. As of April 1, its investments per share were $57.44 versus net assets of $32.95 per share after backing out items. This mutual fund has a payout “yield” of about 6.4% based on its latest payout.

We would note one more issue on this perceived tax threat on MLPs. A group called the National Association of Publicly Traded Partnerships (or NAPTP) is made up of 134 full and associate members and represent 85 MLPs. This group has the back of MLP investors and it recently sent a letter to the House Ways and Means Committee regarding energy tax reform just on April 15, 2013. Some excerpts are as follows:

• NAPTP strongly recommends that Congress continue to preserve the ability of business enterprises to choose the structure that is the most efficient and effective for their particular business activities, whether it be a pass-through structure or a C-corporation, in any future tax legislation.
• At the end of March the total market capital of MLPs was about $445 billion, of which just under $400 billion was in the natural resource sector.
• The change would affect the value of over 100 MLPs, adversely impacting their direct investors, as well as the investors in dozens of open- and closed-end mutual funds, ETFs, and other investment vehicles whose assets consist wholly or largely of MLPs. Billions of dollars of assets would be devalued with one stroke of the pen.

The MLP team at UBS point out that natural gas and oil from shale is triggering an evolution in the energy sector, and the MLPs are forecast to play a major role in this transformation. Aided by their existing infrastructure, access to lower cost capital and management expertise, the analysts believe MLPs will build-out the necessary infrastructure for oil transportation and storage and natural gas transportation, processing and fractionation capacity. Such infrastructure investments will be accretive to distributable cash flow which, in turn, should result in distribution growth well-above that of the overall market.

They list five top stocks investors can buy now despite the big advance.

PAA Natural Gas Storage L.P. (NYSE: PNG) kicks off the UBS list and is considered one of the undervalued small-cap names. Its revenues have grown smartly with the price of natural gas. The UBS price target for the stock is $21. The Thomson/First Call estimate is $20.50. Investors are paid a 6.70% distribution. We remind readers that MLP distributions may contain return of principal.

Eagle Rock Energy Partners L.P. (NASDAQ: EROC). With more than 8,000 miles of natural gas pipelines, this high-yielding name may be a total return winner. The UBS price target is $11. The Wall St. consensus estimate is $10.50. Investors are paid a hefty 9.10% distribution.

Access Midstream Partners L.P. (NYSE: ACMP) is a name we have seen on many firms’ top buy lists. The UBS price target is $46. The consensus estimate is lower at $41. Unitholders receive a 4.60% distribution.

Genesis Energy L.P. (NYSE: GEL) finds a spot on the UBS list of top names. Having just increased its cash distribution this week 10.6% yearly, this solid name has a record of consistent distribution increases. The UBS price target is $48 and the consensus price target is $47. The company pays a 4.30% distribution.

The final name to make the UBS list is Energy Transfer Equity L.P. (NYSE: ETE). Taking advantage of the strong market, the company recently completed a secondary stock offering. This often provides investors with a good entry point as the stock can trade down with the new supply. The UBS price target is $63. The consensus target is $64. Investors are paid a 4.50% distribution.

With interest rates likely to stay low for the foreseeable future, quality MLPs should continue to be among the best stocks for investor total return. With the growth of the U.S. energy complex gaining steam, earnings and revenue growth should stay strong.

We evaluated many key market and economic issues for this April bull market road map. Companies raising dividends, the lists of stocks to buy and stocks to sell, the top merger trends, activist investors, gold and oil, tax issues, quantitative easing, the best bank stocks to buy, the earnings season on the way and many more key issues were considered.

In case you missed the last trading day of the quarter, here is the closing bell report for March 28. There are generally two sides of a story, and so it is with the bullish case for stocks. It is interesting that some of the financial media already has started discussing whether investors should take the “sell in May and go away” strategy in 2013 when April’s trends are not even set or determined. We wanted to review a few key statistics so far year-to-date (YTD), now that the first quarter has officially ended.

• After a 52-point gain to 14,578.54, the DJIA is up 11.2% YTD.
• After a six-point gain to 1,569.19, the S&P 500 Index is up 10.0% YTD.
• Gold ended up 1% in March at $1,596, but is down about 5% YTD.
• The 30-year Treasury yield was 2.95% at the end of 2012 and closed at 3.10% at the end of the first quarter.
• Risk-On: The S&P Speculative Composite Spread (junk bonds over Treasuries) was about 566 basis points at the end of 2012, but was down to 509 basis points at the end of March.

We have indicated how and why 10 big stocks will lead the charge to take the S&P 500 to new all-time highs with the likes of General Electric Co. (NYSE: GE), Exxon Mobil Corp. (NYSE: XOM) and Google Inc. (NASDAQ: GOOG). What is so interesting is that Apple Inc. (NASDAQ: AAPL) has fallen by 16% year-to-date and is currently the largest market cap of all stocks. Imagine how well the market would be if it actually was participating in the rally.

Watch for dividend news. International Business Machines Corp. (NYSE: IBM) should be just one of the five big cap dividend hikes we expect in April, and watch for more share buyback news from the company as well. Also on the dividend and tax front, UBS gave a list of closed-end funds that are tax-free municipal bond funds.

The Boeing Co. (NYSE: BA) woes may not be fully behind it, but the 787 Dreamliner tests are being expanded, and by the end of April the market should have a very clear picture about the battery situation on the new planes. The stock is challenging 52-week highs, but there is another $14 or so of upside before the stock chart is back at all-time highs.

Biogen Idec Inc. (NASDAQ: BIIB) is leading the biotech wave to all-time highs on the heels of a new FDA approval for yet another solid multiple sclerosis drug. Analysts are going to have play catch up or they will be forced to downgrade the stock on valuation. This stock hit new all-time highs in both of the final two trading days of March. A group called PropThink has offered up a list of its favorite biotech ideas to buy, and we would note that most of the big biotechs are at or close to all-time highs.

Verizon Communications Inc. (NYSE: VZ) is going to be one to watch. The short interest has risen sharply, likely on the growing pressure that Vodafone Group PLC (NASDAQ: VOD) wants to do something with its 45% stake in Verizon Wireless.

Here is a list of stocks to buy from the Merrill Lynch core portfolio holdings. Another very important list of stocks is the Deutsche Bank A.G. (NYSE: DB) list of 20 continued winning stock picks for the secular bull market. Secular bull market? That means very long term.

If you think that quantitative easing is about to end and that interest rates are due to scream higher, the speech from Fed President Evans shows internal support for keeping the genie in the bottle for well through the end of 2013 and perhaps much longer.

One thing to watch is a growing bubble in dividend stocks. It seems that some of these juicy dividend yields are getting a bit overbought as short sellers are really going on the offensive here against these high-quality high-yield dividend stocks. The biggest bubble looks to be forming in American Electric Power Co. (NYSE: AEP), unless it raises its payout again.

Japan remains key to the quantitative easing measures. If you want to know if all of that quantitative easing effort in Japan really will get rid of all the historic 20-plus year trend of stagflation and no growth, all you have to do is watch the WisdomTree Japan Hedged Equity (NYSEMKT: DXJ). This tracks Japanese stocks but eliminates the yen-weakening risk. That exchange traded fund is up a sharp 17.1% year-to-date,while its unhedged counterpart is up 10.7% year-to-date.

Also, watch out for the trends following activist investors and mergers. The Dell Inc. (NASDAQ: DELL) merger bidding war against (or with) Michael Dell is just one small tip of this activist investor iceberg. We have warned of an activist investor bubble influencing hundreds of billions of dollars worth of companies. This may keep taking shape throughout April, May and as long as the bull market keeps supporting attacks on management to milk out slightly better returns. Merrill Lynch also gave a list of the next leveraged buyout candidates of stocks to buy.

And there is just so much more to consider.

About a month ago, analysts at Credit Suisse AG (NYSE: CS) touted several master limited partnerships (MLPs) with Overweight ratings and raised price targets. The companies in that list included Targa Resources Corp. (NYSE: TRGP), Genesis Energy L.P. (NYSE: GEL), Access Midstream Partners L.P. (NYSE: ACMP) and Plains All American Pipeline L.P. (NYSE: PAA). Today, the Credit Suisse analysts looked at the other side of the coin. The payouts remain solid, but some are not as lofty as they have been.

El Paso Pipeline Partners L.P. (NYSE: EPB) was downgraded from Outperform to Neutral based on valuation. The analysts see decelerating distribution growth as the company absorbs the drop-downs associated with the acquisition of El Paso Corp. by Kinder Morgan Inc. (NYSE: KMI). The price target was raised by $1.00 to $44.00, and the total return was forecast at 9% to 13%.

Tesoro Logistics L.P. (NYSE: TLLP) was downgraded from Outperform to Neutral because the analysts believe the company is fairly valued. The target price on the common units was raised from $49 to $53. Credit Suisse sees a compound annual growth rate of 17.3% over the next five years.

EQT Midstream Partners L.P. (NYSE: EQM) also was downgraded from Outperform to Neutral on a valuation basis. The unit price has increased 25% so far in 2013, which Credit Suisse considers to be the company’s fair value. The target price was raised from $39 to $41 on a total return potential of 7% to 14%.

CVR Refining L.P. (NYSE: CVRR) has been upgraded from Neutral to Outperform based on a comparison with its MLP peers, and the distribution forecast was raised to $6.15 per common unit, which is near the upper end of the company’s $5.30 to $6.30 guidance. Credit Suisse raised the price target to $34.00, which the analysts believe could be conservative if the WTI-Brent spread widens.

We have noted before that the S&P 500 outperformed the Alerian MLP Index (AMZX) in 2012 and that the MLPs are making up some ground so far in 2013. Both the Alerian MLP Index ETN (NYSEMKT: AMJ) and the Kayne Anderson MLP Investment Co. (NYSE: KYN) closed-end fund are outperforming the S&P 500 by about 4% or so since the beginning of the year. But all MLPs are not created equal, as Credit Suisse pointed out today.

Fitch Ratings expects continued strong growth of master limited partnerships (MLPs) in the energy sector over the next several years, driven by the ongoing hunt for yield in an era of rock bottom interest rates and MLPs’ relatively large and tax-advantaged payouts. It said, “MLP growth will also continue to be driven by the high levels of infrastructure spending associated with U.S. shale plays and increased acceptance of what types of businesses can be fit into an MLP structure.” Fitch went on to show the top 10 structural and operating differences between MLP and corporate issuers based upon tax efficiency, asset mix, distribution policy, financial flexibility, cost of capital, governance, and growth strategies.

Most recently we featured some Credit Suisse research pounding the table for its top picks in this sector for 2013. Earlier this year, Credit Suisse called for a big catch-up rally to come in 2013 and they nailed that call since these have done very well so far this year. The good news is that there are two very liquid ETFs:   We also recently showed how Global X Funds launched the Junior MLP ETF (NYSEMKT: MLPJ) to track the smaller-cap MLPs.

We would note that there are several closed-end funds and exchange-traded funds (ETFs) which are large and very liquid for investors here following the MLP theme. Many investors use the Kayne Anderson Partners MLP Investment Co. (NYSE: KYN), which is a closed-end fund that employs some leverage in its portfolio. The two big exchange-traded products here are the JPMorgan Alerian Index ETN (NYSEMKT: AMJ) and ALPS Alerian MLP (NYSEMKT: AMLP).

The MLP sector often trades on a yield-adjusted basis, although these yields are technically distributions as they include a return of capital. As MLP stocks rally, the stated yield for new investors entering the stocks is lower. After a strong rally off the market lows in 2009, peak pricing for most MLPs topped out in late 2011 and early 2012. Research indicates that MLPs have had a difficult time when aggregate yields are below the 6% level.

The current rally in the MLP space started to catch some steam near the end of 2012, as oil prices crept back over the $90 level and natural gas prices hovered in the mid $3 range. With strong fundamentals continuing to propel the energy space, the Credit Suisse team thinks there is still time to participate in current move up. With a projected average yield for MLPs in the 6% to 6.25% area, they are estimating total returns for stocks to be in the mid-teens (percentages). Total return is a combination of interest paid to the unit holder and increases in unit pricing.

So how do investors become involved in the space? One name that Credit Suisse upgraded to Outperform is Exterran Partners L.P. (NASDAQ: EXLP). Closing yesterday at $22.10, Exterran Partners provides natural gas contract operations services to customers in the United States. It is currently yielding 9.22%, paid quarterly.

Credit Suisse downgraded the following MLPs to Neutral for 2013: AmeriGas Partners L.P. (NYSE: APU), Boardwalk Pipeline Partners L.P. (NYSE: BWP), Spectra Energy Partners .L.P (NYSE: SEP) and Suburban Propane Partners L.P. (NYSE: SPH).

Many investors like to participate in funds that own a basket of MLP stocks for diversification. Kayne Anderson Partners MLP Investment Co. (NYSE: KYN), JPMorgan Alerian Index ETN (NYSEMKT: AMJ) and ALPS Alerian MLP (NYSEMKT: AMLP) all fill the bill.

MLP investing offers a unique and often more conservative way to be involved in the oil and gas industry. With a tax-preferred status the limited partnership provides amid a rising tax environment it may be time to get involved in the MLP “catch up” rally.