Recently in news, Argentina has announced the country’s new entrance into the international bond sales. Argentina has announced that the country has plans to release the several billions of dollars to potential investors. Among potential investors will be Highland Capital Management which has shown great interest in buying bonds from this emerging country. James Dondero, the leader of this company states that they want to increase the flow of their current assets which equates to around $19 billion. This asset management firm includes hedge credit funds as well as emerging market credit funds. co-founder of this company, Dondero has made his company the biggest holder of Argentina’s $4 billion of notes which are due in 2033.
This Dallas-based hedge fund firm is one of the top investment companies in the country. With Dondero deciding to invest in Argentina, this is a positive way for Argentina to potentially sell some of the country’s debt in order to pay for certain settlements. Though Mr. Dondero states that they plan to hold what they have in the books, the company is also looking to buy some of the new issuance. James Dondero is also confident as to where Argentina will price their debt with relation to other Latin American sovereign states.
The total issuance from Argentina will plan to be around 12 billion dollars worth of bonds. These bonds plan to yield 7.5 to 8 percent in mid-April. In addition to this, the country will sell a total of three bonds with maturities of 5, 10, and 30 years. The debt that is issued under New York law is expected to fall around 6 percent total in the short-term. This will improve Argentina’s overall outlook for the country’s fiscal as well as monetary situation. This will be the mark of Argentina re-entering the international bond market. The country has not been involved in this process ever since 2001.
Highland Capital Management has been able to see Argentina’s potential within the international industry. James Dondero specifically states that this is a rich in resource country that has only been shrinking in production due to the running down of their foreign reserves. Highland Capital Management was founded in 1993 with the intention of offering every client a credit-based solution. This new investment in Argentina is a market that this hedge fund is ahead of their time through the many innovative ideas made by the leader.