Entries by Lord Abbett Editorial Staff

    Muni Bonds: Rising Rates? Think Short—and High

    January 17, 2017 1:20 PM by Lord Abbett Editorial Staff

    A strategy employing short-duration, high-yield municipal bonds historically has performed well during periods of rising U.S. Treasury yields.

    The U.S. Federal Reserve (Fed) raised its key interest rate by 25 basis points (bps) on December 14, sending a signal to investors that policymakers have confidence in the state of the U.S. economy. While investors might voice concerns around how some segments of the U.S. fixed-income market may fare in the wake of the Fed’s actions, one asset class may be poised to do quite well: short-term, high yield municipal bonds.

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    Election 2016: Some Insights for Equity Investors

    November 4, 2016 3:32 PM by Lord Abbett Editorial Staff

    Here’s a look at how stocks have fared in the wake of past U.S. presidential elections—and some equity strategies that may be well suited for today’s environment. 

    On November 8, U.S. voters will put an end to one of the most contentious election cycles in modern history. Over the last year, market pundits and economists have speculated about the direction of markets once the forty-fifth U.S. president is voted in. Perhaps it’s time to put aside the speculation and turn to the historical record for some insight.

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    Fixing Health Care

    July 19, 2016 3:33 PM by Lord Abbett Editorial Staff

    Can "bundled payments" drive better care and lower costs? Lord Abbett research analysts discuss the investment implications. 

    While the current political environment may be as polarized as ever, it is much easier to find consensus on America’s healthcare system: it’s a mess.

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    Brexit Vote: The Market Impact

    June 24, 2016 10:04 AM by Lord Abbett Editorial Staff

    Great Britain’s decision to leave the European Union sparked volatility in global markets on June 24.

    With last night’s public referendum votes tallied, Great Britain became the first country in the European Union’s (EU) 60-year history to leave the EU bloc of nations—a momentous decision with enormous consequences for financial markets, the economy, politics, and business.  It seems appropriate that the U.K. media are calling it “Independence Day,” considering the fireworks taking place.

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    Drilling for Oil Bonds

    May 13, 2016 11:33 AM by Lord Abbett Editorial Staff

    While overleveraged exploration and production (E&P) companies most exposed to the shale boom remain pressured, some investment opportunities have arisen.

    While many actively managed fixed-income strategies were underweight the oil sector through most of the commodities correction, some shifted to an overweight of E&P in early winter of 2016, as companies with substantial high-yield debt but solid long-term fundamentals (and no trigger for default) appeared attractive.

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    Argentina and Brazil: Lessons Learned the Hard Way

    May 6, 2016 11:25 AM by Lord Abbett Editorial Staff

    Argentina’s successful return to the capital markets is a reminder that elections matter. Can Brazil turn things around as well?

    It’s been four months since Argentina’s voters ousted former president Cristina de Kirchner’s populist government and replaced it with the business-friendly administration of Mauricio Macri. And the result has been little short of miraculous. Last week, Argentina returned to the international capital markets with the largest ever bond issue from an emerging market economy—its first sovereign sale in more than 15 years—and global bond investors clamored for a share. In the end, the Argentinian issue was four times oversubscribed, and $16.5 billion of sovereign bonds had been sold.

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    2016 Outlook: Value Managers Share Their Views on Earnings Trends for Key Sectors

    December 10, 2015 3:07 PM by Lord Abbett Editorial Staff

    Some earnings estimates in hardest-hit sectors still look too high. 

    Lord Abbett partners Justin Maurer and Tom Maher, the portfolio managers of the micro, small, and smid-cap value products, have updated their earnings and sector outlooks for 2016. Of course, earnings estimates are largely dependent on sectors/end-market exposure, but this is more extreme than usual, given current problems within the energy, materials, and industrials sectors.

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    China's Latest Tech Push

    December 8, 2015 4:03 PM by Lord Abbett Editorial Staff

    China, the world’s largest consumer of semiconductors, is moving aggressively into manufacturing them, which threatens producers in Korea and Taiwan.

    Although China consumes half of the world’s semiconductors (see Chart 1), it doesn’t have a single domestic manufacturer among the 10 biggest chipmakers, according to Bloomberg News. Taiwan and South Korea account for the lion’s share of production. But with China’s government pushing to grow its own semiconductor industry for national security and lessen its dependence on foreign technology, recent deal making suggests a new world order may be in the offing.

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    Fishin' Chips: How M&A Is Transforming Technology

    December 1, 2015 5:18 PM by Lord Abbett Editorial Staff

    The $330 billion global semiconductor industry is undergoing historic consolidation, but innovation in some quarters has stalled, say analysts.

    In 15 years of covering the technology sector, Lord Abbett Research Analyst Eric Ghernati has never seen anything like the merger and acquisition (M&A) activity of the last several years. (See Chart 1.)

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    Finding Value in Volatility: Companies Where M&A is a Core Competency

    November 23, 2015 12:17 PM by Lord Abbett Editorial Staff

    Unlike past cycles, the market is rewarding companies with proven deal making skills.

    (Third of a three-part series)

    In managing small cap, smid cap and micro cap value strategies, Lord Abbett partners and portfolio managers Justin Maurer and Tom Maher continue to focus on U.S.-centric companies that have financial and capital management flexibility to compete strategically. Along those lines, mergers and acquisitions (M&A) have been a significant investment theme—both in terms of potential buyers and sellers. 

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