Argentina is coming back to the international bond market to make nearly 12 billion dollars. One company that is looking at buying a large portion of these securities is Highland Capital Management. This firm already oversees 19 billion dollars in emerging market credit funds, credit hedge funds and more.
As shown over the previous months, Highland Capital has been shaving down its holdings, but before it did that, it was the biggest hold of Argentinian notes that will be due in 2033. This type of confidence in Argentinian investment is good for the country because they are trying to sell of an unheard of amount of debt in order to pay off settlements. But because of their effort to pay off their settlements, many distressed debt investors will keep investing in Argentina.
James Dondero is excited for Argentina to put their debt up for sale. In a Bloomberg Business article, Dondero explained that he believes the price will be good, especially compared to other Latin American countries. The Finance Ministry of Argentine told their congress that they are planning on issuing almost 12 billion dollars of bonds, which will yield at 7.5 or 8 percent. They will sell a 5, 10 and 30 year bond maturity levels. They were presenting a debt bill in an attempt to clear the rest of the holdouts on the deal.
Highland Capital Management has been making these kinds of deals since it was founded in 1993. James Dondero founded the company after years of experience with various financial companies, including the Morgan Guaranty training program, American Express and a GIC subsidiary. He worked for over a decade for these various companies and then decided it was time to go out on his own.
All of these areas include further products and services such as managed CLOs, funds and separately managed accounts. Jim Dondero has managed to help the company receive the highly coveted Institutional Investor’s Rising Star of Mutual Funds Award and the Alt Credit Intelligence US Performance Award. Jim has been leading Highland Capital Management to success as its Co-Founder and its CEO for more than 20 years.
Please find the full article here: http://www.bloomberg.com/news/articles/2016-03-08/argentina-luring-highland-shows-distressed-bond-buyers-to-stay