Dallas-based Highland Capital Management LP is apparently the most suitable bet for Argentina’s long awaited come-back to the international market in the coming month with an expected bid of raising about $12 billion. The asset management firm sits at a stable financial position with a $19 billion. This includes credit hedge funds as well as emerging market credit funds.
In an article that appeared in Bloomberg, Highland Capital LP co-founder and president, James Dondero revealed that the firm will be keen to snap up a sizable piece of the to-be-released securities.
The investment by Highland will be a huge endorsement to Argentina’s attempt to sell an unprecedented debt amount as settlements payment with holdout creditors. This also suggests that distressed debt investors who have recently piled into Argentina may remain, buyers of the country’s debt, long after it makes its exit from default status.
Dondero expressed Highland’s plan to hold what they have in the original bonds even as they look to purchase some of the new issuance. He expressed optimism on the price tag that Argentina is likely to place on the debt and its most likely market. This more especially relates to the rest of the Latin American sovereigns.
Argentina looks set to issue $11.68 billion of bonds which will yield between 7.5 to 8 percent according to its Finance Ministry officials. This is the amount that Highland is set to win big in the acquisition. They came to the rescue of Argentina in 2014 by settling with their holdouts at a time when they were in a financial pariah state.
James has a longstanding experience of more than 30 years specialized around credit and equity market and largely focusing on distressed and high-yield investing. He began his career in 1984 as an analyst in the Morgan Guaranty training program. He had a stint at American Express as a Corporate Bond Analyst.
‘Jim’ as he is fondly known from his high school days, graduated from the University of Virginia with the highest honors (Beta Gamma Sigma, Beta Alpha Psi) with double majors in Accounting and Finance. Dondero is also a Certified Management Accountant (CMA).