Bloomberg recently released an article that discussed how Argentina will be allowed to release its debt onto the international bond market. The country’s goal is to raise 12 billion dollars and, according to Bloomberg, Highland Capital Management will be one of the major buyers. Bloomberg got this information directly from Highland Capital’s founder and chief executive officer, James Dondero. Dondero and his firm already manages about 19 billion dollars in assets. A significant portion of this 19 billion dollars is already Argentinian debt that is due in 2033.
Argentina’s goal is to sell enough so that they can pay settlements with Paul Singer and other holdout creditors. Dondero is confident that Argentina will price the debt fairly and he is hoping that it will trade better than other emerging economies. Dondero has the numbers to back up his confidence. They have been seeing returns on their Argentinian bonds of around 20 percent annually. This is major when you compare it to the average 3.3 percent return for other emerging markets.
Highland Capital Management is an investment banking firm that has been around for more than 2 decades. James Dondero sits at the helm and has the goal of leading the company to success in the niche market of collateralized loan obligations. The firm also offers high yield credit, structured products, long and short equity, distressed and special situation, health care, emerging markets and real estate. The company invests both in real estate equity and real estate debt. In the emerging markets division, Highland Capital has many options for investing in Brazil and they are now also looking at opening up a fund in Argentina as another emerging market investment opportunity. In the health care division, Highland Capital offers their investors options in equity, fixed income and loan assets. The long and short equity division has many different strategies available to investors, such as fund with typical net long exposure of 20 to 60 percent. Highland Capital Management also offers their investors the opportunity to invest in distressed or special situations in the healthcare, industrial and media or telecom sectors.
To read the full article, please click here: http://www.bloomberg.com/news/articles/2016-03-08/argentina-luring-highland-shows-distressed-bond-buyers-to-stay