Highland Capital is one of the United States foremost credit expert. This company was founded in 1993 by James Dondero and has since then offered credit-based solutions to both private as well as public individuals and corporations. This Texas-based company continues to grow as more and more customers are seeking sound financial advice for future investments. In recent news, Highland Capital Management has decided to become and recommend the buying of Argentina’s bonds. After Argentina has returned to the international bond market and has raised over $12 billion, Highland Capital Management plans to be involved with the new transactions that could be beneficial for everyone.
Highland Capital Management, thanks to James Dondero, already handles over $19 billion in assets alone. With the company’s current holdings, Highland Capital Management will also be the biggest holder of Argentina’s $4 billion of notes that will be officially due in 2033. This new plan of Highland Capital Management to invest in Argentina is seen as a good sign. This will give Argentina the chance to sell the country’s debt with holdout creditors that is led by investor, Paul Singer.
Jim Dondero, President of Highland Capital Management is confident and states that that the company is looking to buy some of the new issuance. With that said, Argentina plans to trade $11.68 billion of bonds that will yield a 7.5 to 8 percent rate of interest. In addition to this, the country will also sell three bonds with the maturities of five, ten, as well as thirty years. The result of this trade will lead to a short term fall of ratings. In addition to this, the country will be expected to have a new and improve outlook for the country’s fiscal as well as monetary situation.
Ever since 2001, Argentina has been shut out of the global market. However, with this new emergence, James Dondero is taking full advantage of a new opportunity. As the leader of Highland Capital Management, Mr. Dondero is pursing new investment opportunities that are beyond sovereign debt. Thanks to Jim Dondero, other investors are now looking to Argentina to invest for the purpose of re-sparking the economy. Corporations such as Bank of America Corp are now looking with interest at Argentina’s economy. With the new spark of investment, James Dondero will be known as the mastermind behind this plan.