Image alt tag

Error!

X

There was a problem contacting the server. Please try after sometime.

Sorry, we are unable to process your request.

Error!

X

We're sorry, but the Insights and Intelligence Tool is temporarily unavailable

If this problem persists, or if you need immediate assistance, please contact Customer Service at 1-888-522-2388.

Error!

X

We're sorry, but the Literature Center checkout function is temporarily unavailable.

If this problem persists, or if you need immediate assistance, please contact Customer Service at 1-888-522-2388.

Tracked Funds

You have 0 funds on your mutual fund watch list.

Begin by selecting funds to create a personalized watch list.

(as of 12/05/2015)

Pending Orders

You have 0 items in your cart.

Subscribe and order forms, fact sheets, presentations, and other documents that can help advisers grow their business.

A verification Email Has Been Sent

Close

An email verification email has been sent to .
Follow the instructions to complete the email validation process.

I have not received my verification email

Check your SPAM mailbox and make sure that twelcome@lordabbett.com is allowed to send you mail.

I'm still having trouble

If you're still having trouble verifying your email address. feel free to contact us.

1-888-522-2388
clientservices@lordabbett.com


OK

We're sorry. We found no record of the email address you provided.

Close

Register For a LordAbbett.com Account
Using Your Email Address.

  • Registered Financial Advisors gain access to:
  • Our data mining tool, Insight & Intelligence
  • Best in-class practice management content
  • Educational events, videos and podcasts.
  • The Lord Abbett Review - Subscribe now!

Registered but Having Problems?

If you believe you are registered and are having problems verifying your email address, feel free to contact us.

1-888-522-2388 clientservices@lordabbett.com

Terms & Condition

X

These Terms of Use ("Terms of Use") are made between the undersigned user ("you") and Lord, Abbett & Co. ("we" or "us"). They become effective on the date that you electronically execute these Terms of Use ("Effective Date").

A. You are a successful financial consultant that markets securities, including the Lord Abbett Family of Funds;

B. We have developed the Lord Abbett Intelligence System (the "Intelligence System"), a state of the art information resource that we make available to a limited community of broker/dealers through the Internet at a secure Web site (the "LAIS Site"); and

C. We wish to provide access to the Intelligence System to you as an information tool responsive to the demands of your successful business pursuant to these Terms of Use. Accordingly, you and we, intending to be legally bound, hereby agree as follows:]

1. Overview. · Scope. These Terms of Use (which we may amend from time to time) govern your use of the Intelligence System. · Revisions; Changes. We may amend these Terms of Use at any time by posting amended Terms of Use ("Amended Terms of Use") on the LAIS Site. Any Amended Terms of Use will become effective immediately upon posting. Your use of the Intelligence System after any Amended Terms of Use become effective will be deemed to constitute your acceptance of those Amended Terms of Use.We may modify or discontinue the Intelligence System at any time, temporarily or permanently, with or without notice to you. Purpose of the Intelligence System. The Intelligence System is intended to be an information resource that you may use to contribute to your business research. The Intelligence System is for broker/dealer use only; it is not to be used with the public in oral, written or electronic form. The information on the Intelligence System and LAIS Site is for your information only and is neither the tax, legal or investment advice of Lord Abbett or its third-party sources nor their recommendation to purchase or sell any security.

2. Your Privileges. · Personal Use. Your use of the Intelligence System is a nontransferable privilege granted by us to you and that we may deny, suspend or revoke at any time, with or without cause or notice. · Access to and Use of the Intelligence System. The User ID and password (together, an "Access ID") issued by us to you (as subsequently changed by you from time to time) is for your exclusive access to and use of the Intelligence System. You will: (a) be responsible for the security and use of your Access ID, (b) not disclose your Access ID to anyone and (c) not permit anyone to use your Access ID. Any access or use of the Intelligence System through the use of your Access ID will be deemed to be your actions, for which you will be responsible. · Required Technology. You must provide, at your own cost and expense, the equipment and services necessary to access and use the Intelligence System. At any time, we may change the supporting technology and services necessary to use the Intelligence System. · Availability. We make no guarantee that you will be able to access the Intelligence System at any given time or that your access will be uninterrupted, error-free or free from unauthorized security breaches.

3. Rights in Data. Our use of information collected from you will be in accordance with our Privacy Policy posted on the LAIS Site. Our compliance with our Privacy Policy will survive any termination of these Terms of Use or of your use of the Intelligence System.

4. Your Conduct in the Use of the Intelligence System. You may access, search, view and store a personal copy of the information contained on the LAIS Site for your use as a broker/dealer. Any other use by you of the Intelligence System and the information contained on the LAIS Site these Terms of Use is strictly prohibited. Without limiting the preceding sentence, you will not: · Engage in or permit any reproduction, copying, translation, modification, adaptation, creation of derivative works from, distribution, transmission, transfer, republication, compilation or decompilation, reverse engineering, display, removal or deletion of the Intelligence System, any portion thereof, or any data, content or information provided by us or any of our third-party sources in any form, media or technology now existing or hereafter developed, that is not specifically authorized under these Terms of Use.

· Remove, obscure or alter any notice, disclaimer or other disclosure affixed to or contained within the Intelligence System, including any copyright notice, trademark and other proprietary rights notices and any legal notices regarding the data, content or information provided through the Intelligence System.

· Create a hyperlink to, frame or use framing techniques to enclose any information found anywhere on the LAIS Site without our express prior written consent.

· Impersonate any person, or falsely state or otherwise misrepresent his or her affiliation with any person in connection with any use of the Intelligence System.

· Breach or attempt to breach the security of the Intelligence System or any network, servers, data, or computers or other hardware relating to or used in connection with the Intelligence System; nor (b) use or distribute through the Intelligence System software or other tools or devices designed to interfere with or compromise the privacy, security or use of the Intelligence System by others or the operations or assets of any person.

· Violate any applicable law, including, without limitation, any state federal securities laws. 5. Your Representations and Warranties. You hereby represent and warrant to us, for our benefit, as of the time of these Terms of Use and for so long as you continue to use the Intelligence System, that (a) you are, and will continue to be, in compliance with these Terms of Use and any applicable laws and (b) you are authorized to provide to us the information we collect, as described in our Privacy Policy.

6. Disclaimer of Warranties.

· General Disclaimers.

THE INTELLIGENCE SYSTEM, THE LAIS SITE AND ALL DATA, INFORMATION AND CONTENT ON THE LAIS SITE ARE PROVIDED "AS IS" AND “AS AVAILABLE” AND WITHOUT ANY REPRESENTATIONS OR WARRANTIES OF ANY KIND. WITHOUT LIMITING THE PRECEDING SENTENCE, LORD ABBETT, ITS AFFILIATES, AGENTS, THIRD-PARTY SUPPLIERS AND LICENSORS, AND THEIR RESPECTIVE EMPLOYEES, CONTRACTORS, DIRECTORS, OFFICERS AND SHAREHOLDERS (COLLECTIVELY, THE “LORD ABBETT GROUP”) EXPRESSLY DISCLAIM ALL WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY, INCLUDING THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, AND NONINFRINGEMENT. YOU EXPRESSLY AGREE THAT YOUR USE OF THE LAIS SITE, THE INTELLIGENCE SYSTEM, AND THE DATA, INFORMATION AND CONTENT PRESENTED THERE ARE AT YOUR SOLE RISK AND THAT THE LORD ABBETT GROUP WILL NOT BE RESPONSIBLE FOR ANY (A) ERRORS OR INACCURACIES IN THE DATA, CONTENT AND INFORMATION ON THE LAIS SITE AND THE INTELLIGENCE SYSTEM OR (B) ANY TERMINATION, SUSPENSION, INTERRUPTION OF SERVICES, OR DELAYS IN THE OPERATION OF THE LAIS SITE OR THE INTELLIGENCE SYSTEM.

· Disclaimer Regarding Investment Research.

THE INTELLIGENCE SYSTEM INCORPORATES DATA, CONTENT AND INFORMATION FROM VARIOUS SOURCES THAT WE BELIEVE TO BE ACCURATE AND RELIABLE. HOWEVER, THE LORD ABBETT GROUP MAKES NO CLAIMS, REPRESENTATIONS OR WARRANTIES AS TO THE ACCURACY, TIMELINESS, COMPLETENESS OR TRUTHFULNESS OF SUCH DATA, CONTENT AND INFORMATION. YOU EXPRESSLY AGREE THAT YOU ARE RESPONSIBLE FOR INDEPENDENTLY VERIFYING YOUR INVESTMENT RESEARCH PRIOR TO FORMING YOUR INVESTMENT DECISIONS OR RENDERING INVESTMENT ADVICE. THE LORD ABBETT GROUP WILL NOT BE LIABLE FOR ANY INVESTMENT DECISION MADE BY YOU OR ANY OTHER PERSON BASED UPON THE DATA, CONTENT AND INFORMATION PROVIDED THROUGH THE INTELLIGENCE SYSTEM OR ON THE LAIS SITE.

· Survival.

THIS SECTION 6 SHALL SURVIVE ANY TERMINATION OF THESE TERMS OF USE OR YOUR USE OF THE INTELLIGENCE SYSTEM..

7. Limitations on Liability.

NONE OF THE MEMBERS OF THE LORD ABBETT GROUP WILL BE LIABLE TO YOU OR ANY OTHER PERSON FOR ANY DIRECT, INDIRECT, INCIDENTAL, CONSEQUENTIAL, PUNITIVE, SPECIAL OR EXEMPLARY DAMAGES (INCLUDING LOSS OF PROFITS, LOSS OF USE, TRANSACTION LOSSES, OPPORTUNITY COSTS, LOSS OF DATA, OR INTERRUPTION OF BUSINESS) RESULTING FROM, ARISING OUT OF OR IN ANY WAY RELATING TO THE INTELLIGENCE SYSTEM, THE LAIS SITE OR YOUR USE THEREOF, EVEN IF THE LORD ABBETT GROUP HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THIS SECTION 7 WILL SURVIVE ANY TERMINATION OF THESE TERMS OF USE OR YOUR USE OF THE INTELLIGENCE SYSTEM.

8. Miscellaneous Provisions.

· Governing Law. This Agreement will governed by and construed in accordance with the laws of the State of New York, without giving effect to applicable conflicts of law principles.

THE UNIFORM COMPUTER INFORMATION TRANSACTIONS ACT OR ANY VERSION THEREOF, ADOPTED BY ANY STATE, IN ANY FORM ("UCITA") WILL NOT APPLY TO THESE TERMS OF USE. TO THE EXTENT THAT UCITA IS APPLICABLE, THE PARTIES HEREBY AGREE TO OPT OUT OF THE APPLICABILITY OF UCITA PURSUANT TO THE OPT-OUT PROVISION(S) CONTAINED THEREIN.

The Intelligence System is not intended to be used by consumers, nor are the consumer protection laws of any jurisdiction intended to apply to the Intelligence System. You agree to initiate and maintain any action, suit or proceeding relating to these Terms of Use or arising out of the use of the Intelligence System exclusively in the courts, state and federal, located in or having jurisdiction over New York County, New York.

YOU HEREBY CONSENT TO THE PERSONAL JURISDICTION AND VENUE OF THE COURTS, STATE AND FEDERAL, LOCATED IN OR HAVING JURISDICTION OVER NEW YORK COUNTY, NEW YORK. YOU AGREE THAT YOU WILL NOT OBJECT TO A PROCEEDING BROUGHT IN YOUR LOCAL JURISDICTION TO ENFORCE AN ORDER OR JUDGMENT OBTAINED IN NEW YORK.

· Relationship of Parties. The parties to these Terms of Use are independent contractors and nothing in these Terms of Use will be construed as creating an employment relationship, joint venture, partnership, agency or fiduciary relationship between the parties.

· Notice. All notices provided under these Terms of Use will be in writing and will be deemed effective: (a) when delivered personally, (b) when received by electronic delivery, (c) one business day after deposit with a commercial overnight carrier specifying next day delivery, with written verification of receipt, or (d) three business days after having been sent by registered or certified mail, return receipt requested. We will only accept notices from you in English and by conventional mail addressed to: General Counsel Lord, Abbett & Co. 90 Hudson Street Jersey City, N.J. 07302-3973 We may give you notice by conventional mail or electronic mail addressed to the last mail or electronic mail address transmitted by you to us.

· Third-Party Beneficiaries. The members of the Lord Abbett Group are third-party beneficiaries of the rights and benefits provided to us under these Terms of Use. You understand and agree that any right or benefit available to us or any member of the Lord Abbett Group hereunder will also be deemed to accrue to the benefit of, and may be exercised directly by, any member of the Lord Abbett Group to the extent applicable.

· Survival. This Section 8 will survive any termination of these Terms of Use or your use of the Intelligence System. The undersigned hereby signs these Terms of Use. By electronically signing and clicking "Accept" below, these Terms of Use will be legally binding on me. To sign these Terms of Use, confirm your full name and enter your User ID and Password (as your electronic signature) in the fields indicated below and click the “I Accept” button.

Reset Your Password

Financial Professionals*

Your password must be a minimum of characters.

Confirmation Message

Your LordAbbett.com password was successully updated. This page will be refreshed after 3 seconds.

OK

 

Fixed-Income Insights

Trump’s policies are a mixed bag in terms of their potential effect on emerging markets in 2017.

In general, emerging market (EM) debt and currency markets traded lower immediately following the U.S. presidential election, largely reflecting investor uncertainty about the new administration’s policy agenda. As currently understood, President-elect Donald Trump’s policies are a mixed bag in terms of their potential impact on EM investment opportunities in 2017. 

On the positive side, we believe the proposed tax cuts, deregulation, and fiscal-spending portions of the agenda should provide a boost to U.S. growth, or at the very least to growth expectations, which could be positive for emerging markets overall.

The counterpoint to that is that those same policies risk widening the U.S. budget deficit, leading to increased U.S. Treasury issuance, higher inflation, and a steeper yield curve.  At least in the near term, investment assets would be attracted to the United States, at the expense of emerging markets. Over time, however, as global growth improves, we would expect to see spreads between EM local rates and U.S. Treasuries widen, attracting assets back to the emerging markets, and strengthening EM currencies.  

The protectionist side of the new U.S. administration’s agenda—labeling China as a currency manipulator, imposing tariffs on Chinese imports, renegotiating the North American Free Trade Agreement (NAFTA), deporting all illegal immigrants, and building a southern border wall—is all negative for both EM economies and currencies. Trade barriers, such as import tariffs, would weaken the transmission of higher U.S. growth to the rest of world, harming many EM economies, especially those that are net exporters to the United States

On the other hand, if significant trade barriers are not erected, commodities, and the currencies of countries who export them, should benefit from increased infrastructure spending in the United States. In our opinion, any significant rise in commodity prices will be capped by a rising U.S. dollar. In fact, facing both appreciation and depreciation pressures, commodity prices are likely to be relatively stable in 2017, especially compared with what we saw in 2014 through the beginning of 2016.

How the U.S. Federal Reserve (Fed) reacts to the new administration’s policy agenda also will be an important factor. Will it accelerate interest-rate hikes in response to easier fiscal policy? Or will the rise in Treasury yields, steepening of the curve, and related rise in the trade-weighted U.S. dollar continue to make the Fed more cautious about raising rates too rapidly? A rapid acceleration in rate hikes would be negative for EM currencies that have come to rely on easy money globally. In our opinion, the European Central Bank and the Bank of Japan likely will maintain their easy monetary policy stances, which will help—although not enough to offset a significantly tighter Fed policy. Our view is that as long as Fed rate hikes are commensurate with increases in growth and inflation and/or inflation expectations, EM assets should be relatively unaffected.

The bottom line for currencies in 2017 is that we see many scenarios whereby the U.S. dollar rises versus other major developed currencies, such as the euro and the yen. The outlook for EM currencies, however, will depend on how aggressive the new administration is on trade protectionism and whether U.S. growth really does accelerate.  

We do think that there will be some differentiation among the EM local bond markets. Certain countries, such as Brazil, Russia, and Colombia, are in a very different economic cycle than that of the United States, with declining inflation. As such, they should be easing monetary policy (as long as their currencies do not depreciate too much). This should benefit the yields in those countries. Others, such as Mexico and Turkey, will be much more dependent on Fed policy. Mexico likely will have to hike rates at least as much as the Fed, if not more, depending on how negative the new U.S. administration’s trade policies are for Mexico. In Asia, Fed rate hikes will likely prevent any rate cuts, with the possible exception of India.

In terms of EM external debt (i.e., corporate debt denominated typically in U.S. dollars), we view the election results as negative at the margin in the medium term due to likely additional U.S. rate increases (resulting from inflationary fiscal and trade policies) and a consequent decline in capital flows from the United States to EM countries. 

Nevertheless, we expect the search for yield to continue for some time yet, providing strong inflows to the asset class. EM corporates still offer historically attractive yields within a relatively expensive and broader credit asset class. Over the near term, there is a risk of spread widening, as investors refocus on relative value spreads within investment grade and express increased comfort with high yield due to stabilizing leverage ratios, adequate liquidity, and, consequently, diminishing default risk.

In terms of regional risks and opportunities, the implication of less trade with the United States is enormous for Asia, according to the Financial Times. The region’s export exposures to the United States—taking into account direct and indirect linkages—range from 11% to 21%. Singapore, for instance, only derives 6% of its export earnings directly from the United States, but when one acknowledges global production chains, what is revealed is a more substantial U.S. exposure of 14%. An environment of trade protectionism would put the heavily export-dependent economies in Asia at risk.

An alternative avenue of growth for Asia, if the United States turns inward and protectionist, would be to deepen its intraregional trade ties. Asian economies increasingly have moved toward China over the past decade, and the overall exposure now rivals that of the United States. The region also has room to further tap the rest of its neighbors, such as the members of the Association of Southeast Asian Nations and India, where domestic demand likely will remain a key source of growth.

We are more positive on emerging countries in Europe and the Middle East than the other regions: it is less exposed to U.S. trade policy and financial flows, and may see some easing in tensions around Syria and Ukraine. The bilateral trade linkages between the United States and most emerging European countries are small. The largest trade exposures to the United States as a share of gross domestic product (GDP) are in Hungary and Israel, each at around 5% of GDP, while it is smaller for the rest of the region. Foreign direct investment from the United States also is limited, given the European Union’s dominance.

In Latin America, the immediate impact of the U.S. presidential election has been weaker local currencies, particularly the Mexican peso. Weaker foreign exchange could hurt corporate bonds with currency mismatches in consumer sectors such as telecom, retail, food, airlines, and, possibly, utilities. Another important outcome is the potential for changes in U.S. trade policies (e.g., renegotiation of NAFTA or imposition of broader import tariffs), which could reduce export/import flows. Among the large countries, Mexico's exports to the United States were the largest (27% of GDP in 2015; latest available data), according to the Financial Times, and growth likely would fall significantly if the United States repealed NAFTA and imposed tariffs on Mexican products.

(The potential impact for Canada is more mixed. It is the largest destination for U.S. exports and the second largest importer into the United States. While the United States has a sizable trade deficit with Canada in goods, it has an even larger trade surplus in services. This is one reason why Canada was not signaled out the way Mexico was on the campaign trail.)

Although we do not expect future inflows into EMs to produce the spread tightening that we experienced in 2016, we do expect inflows—albeit with a temporary disruption—that will support stable spreads from here on out, as long as U.S. rates rise gradually. The search for yield should continue to support the current wider spreads in the medium term. We believe demand for EM corporates will exceed supply in 2017, given the amount of maturing debt in 2017, likely investor inflows to the asset class, and limited new issuance. Overall, we see initial risk appetite as low, but likely will return in 2017, as macro factors such as foreign exchange and inflation, as well as corporate credit metrics, remain under control. 

 

RELATED TOPICS

ABOUT THE MANAGERS

RELATED FUND
The Lord Abbett Emerging Markets Currency Fund seeks to produce a high total return primarily through exposure to currencies of emerging market countries.
RELATED FUND
The Lord Abbett Emerging Markets Corporate Debt mutual fund seeks to deliver current income and long-term growth of capital. View portfolio and more.

Lord Abbett's Blog

videoOur blog, The Investment Conversation, features timely commentary and analysis from Lord Abbett experts. Join the conversation.

Please confirm your literature shipping address

Please review the address information below and make any necessary changes.

All literature orders will be shipped to the address that you enter below. This information can be edited at any time.

Current Literature Shipping Address

* Required field