Why NextEra Energy Partners Rallied This Week
Shares of NextEra Energy Partners (NYSE: NEP) soared 16% this week, according to data from S&P Global Market Intelligence.
This yield company, whose model is to buy renewable-energy projects and pay out virtually all cash flow as distributions to unitholders, had fallen on hard times this year. Due to its need to consistently raise or refinance its capital, NextEra Partners is extremely sensitive to interest rates, so the summer's sharp rise in long-term rates caused the stock to crash.
But on Wednesday of this week, the Federal Reserve appeared to pivot its posture from a focus on how high to raise rates and toward when to cut them. That led to a relief rally in rate-sensitive stocks, including NextEra.
Source Fool.com
