Argentina is making a comeback in the international bond market. Highland Capital Management, a firm led by James Dondero will help the country in raising $12 billion. This has been noted as a good sign by financial experts. The hedge fund firm plans to scoop huge amounts in the securities deal. Highland Capital Management was previously holding the lion share of notes worth $4 billion in Argentina. However, six months ago, it started paring. James Dondero said the hedge fund firm is planning to buy more bonds in the new issuance.
A Big Win for Highland Capital Management
Previously, the country was disadvantaged in global trading because of a legal ban. However, U.S District Judge Thomas Griesa is expected to lift the ban on paying restricted debt. When this happens, the hedge fund firm will take the lion share of the new opportunity. The Argentina bonds have already earned 20% annualized returns according to James Dondero. This seems a big win for the firm that is operating in a country with poor tax policies plus huge subsidies.
Promising Venture in Argentina
While other people may fear venturing in a country with poor tax policies and huge subsidies, Highland Capital Management President James Dondero is seeing great opportunities. He said there is a possibility of starting an Argentina fund. The great opportunity is also getting bigger after the defaulted debt is paid. This is according to Sebastian Rondeau and Jane Brauer who are both analysts working with the Bank of America Corporation. The analysts argue that the holders of the debt will reinvest in the country upon getting paid.
James Dondero Career
Dondero has had a successful career even before founding Highland Capital Management where he serves as President and Co-founder. His massive success at Protective Life GIC subsidiary is reflected in Capital Highland Management. He has accumulated over 30 years of experience. His mega skills in equity market have enabled him to deal efficiently in distressed investing. He is the pioneer of Collateralized Loan Obligation.
His career started in 1984 where he worked as an analyst. Mr. Donderois an alumnus of University of Virginia where he studied Accounting and Finance and scored the highest honors. Today, he is a Certified Management Accountant with 30 years of experience. He has also earned the designation of being a Chartered Financial Analyst. The fund he has managed has been highly praised in the hedge fund market. He resides in Dallas Texas.
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