Highland Capital Plans To Buy The New Bond Issue By The Government Of Argentina

Argentina has finally decided to re-enter the international capital markets after making a deal with the bondholders who had withheld the country from issuing more debt in the global market. President Mauricio Macri played a crucial par in making it possible after he promised the investors and global creditors about the reforms the country wants to implement. The Argentine Congress is expected to vote on the issue to finalize the deal which Macri’s government made to the creditors. When Congress finally votes the deal, it will position the country in a clear way to issue the largest amount of debt from any emerging market country in two decades.

Despite the eroded confidence with the former government and the court battle with bondholders, financial institutions, and international investors are still interested in the new debt according to Bloomberg reports. James Dondero, the current chairperson and co-founder of Highland Capital Management, said that the firm is looking forward to the upcoming issuance and is planning to buy “significant amounts” of new securities.

James Dondero stated that Highland Capital is planning to hold the bonds it has on the original bonds issue and is looking forward to buying some of the new issuance. James is confident about where Argentina’s government may be planning to trade its debt and the price of the debt. The expected date of issue is April, and the yield for the bond will range 7.5% to 8%. However, the government of Argentina hopes the yields will eventually fall to 6% depending on the outlooks of the country.

James Dondero and Mark Okada founded the firm in 1993 and situated the headquarters in Dallas, Texas. The company is known for its leadership in the development of the Collateralized Loan Obligation (CLO) market and credit-oriented solutions for both retail and institutional investors around the world. Mr. Jim Dondero and Mark Okada acts as the executive arm of the firm. Mr. Dondero is also very active in philanthropy, and he has participated in supporting the veterans’ affairs, supporting initiatives in education, and public policy.

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Source: http://www.bloomberg.com/news/articles/2016-03-08/argentina-luring-highland-shows-distressed-bond-buyers-to-stay

Additional Links:

http://dallaslinks.com/highland-capital-powerhouse-president-james-dondero/

http://www.bloomberg.com/research/stocks/private/person.asp?personId=2159086&privcapId=37846394

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