Recently in news, James Dondero of Highland Capital Management has announced his plans to invest in Argentina’s new international bond market. This recent news has coincided with Argentina’s new plans to sell almost $12 billion of Argentina’s current bonds in mid-April. James Dondero has announced that this new sale will include Highland Capital Management as one of the top investors in the country.
Highland Capital Management is an investment firm that already oversees around $19 billion worth of assets. This total amount of assets includes hedge funds as well as emerging market credit funds. In addition to this, the new purchases will look to snap up a large amount in assets that is worth a significant amount in securities. James Dondero, President of Highland Capital Management is looking forward to this new purchase that will mark Argentina’s re-entrance into the international bonds market.
Dondero and his Dallas-based firm has been the biggest holder of Argentine assets that has equated to around $4 billion notes. This current amount of notes is currently due in 2033. Mr. Dondero states that his company plans to continue to hold their original bonds, but also is looking for new issuance. Dondero is especially looking forward to Argentina’s new price of debt that is especially relative to Latin American sovereigns.
In total, Argentina plans to sell $11.68 billions of bonds in mid-April with the goal that it will yield 7.5 to 8 percent. The bonds will be sold at a maturity of five years ten years, as well as thirty years. With this new issue of of debt under New York law, yields are expected to fall to around six percent in the overall short term.
With the help of James Dondero and his hedge fund, President Mauricio Macri of Argentina is looking optimistically to the future. Since 2001, Argentina has been shutout of the global market with a record default of $95 billion that was calculated in 2001. Mr. Dondero’s firm is a company that specializes in credit-base solutions for both private as well as public institutes. Highland Capital Management was founded in 1993 under the premise to offer the best solutions to each customer that yields the best results.