One of the most influential investment firms as of present day is the Highland Capital Management Firm. What has earned Highland Capital this prestigious title is the company’s new found interest in investing in Argentina and buying into some of the country’s debt. This is being done for the purpose of introducing Argentina back into the investment world. In mid-April of 2016, Argentina made plans to sell over $12 billion of the country’s overall debt. This will mark the country’s long-awaited return into the international bond market. As the company went on to sell billions of dollars in debt to potential investors, Highland Capital Management was one of the most eager buyers of the debt.
Currently the leader and co-founder of the firm, James Dondero, is proud of what his company has accomplished over the last few years. As of currently, this asset management firm oversees around $19 billion in total assets. Currently Highland Capital Management has been known to be one of the biggest holders of the Argentine debt which is estimated to be around $4 billion in bank noted which will be officially due in 2033. The overall interest in this large and international investment firm is seen as a good sign for Argentina because it will attract more and more investors to eventually eliminate the building debt within this country.
Dondero of Highland Capital has stated that though the company plans to keep its original bonds, the investment firm has also been looking to buy new issuance. Highland Capital is extremely optimistic in knowing where Argentina will likely price the debt as well as trade the debt in regards to other Latin American countries. As of mid-April, Argentina planned to initiate around $11.68 billion of bonds that planned to yield around 7.5 to 8 percent. This deal also plans to sell the overall bonds at different maturities of 5, 10, as well as 30 years.
Thanks to Jim Dondero and his 20 year old investment firm, Argentina’s prospects are looking up in regards to the fiscal as well as the monetary situation of the country. James Dondero has been the leader of Highland Capital Management Firm and has since then made risky yet innovative decisions which have proven to benefit the company. With the new news of Argentina, James Dondero and his company have become some of the most sought after names in the investment industry.