Argentina Plans to sell $12 billion of its debt and HCM is in best position to buy it

James Dondero is the co-founder and president of Highland Capital Management (HCM). Also referred to as Jim, CPA and CFA, he is also the president and chairman of the board of directors of NextPoint Hospitality Trust Inc. Highland Capital Management specializes in high-yield fixed income. With over years of experience in credits markets, Jim Dondero served as the Chief Investment Officer of Protective Life’s GIC subsidiary. James Dondero helped the business to grow from inception to over $2 billion in value from 1989 to 1993. He has a vast management experience in mortgaged-backed securities, high yields bonds, investment grade corporates real estate, leveraged bank loans, preferred stocks, derivatives and ordinary shares.

Being an experienced person in the international bond market, Argentina’s $12 billion return to international bond markets next month would be in good hands under Highland Capital Management LP as one of the buyers. Highland Capital Management currently oversees over $19 billion that include emerging market funds and credit hedge funds. James Dondero has said this deal is looking forward to snapping up “significant amounts” of securities. HCM had gained trust with Argentina after it was the biggest holder of the country’s $4 billion of notes due in 20133 over the past six months.
The state believes that the distressed debt investors may still be the main buyers of the country’s debt when it comes out of default. Mr. Dondero has indicated that there is a plan to hold what the HCM have in the original bonds and still buy the new issuance. According to Jim┬áDondero, HCM is optimistic about the price Argentina will place on the debt and where it is most likely to trade based on the Latin American Sovereigns.
The plan in place for Argentina is to issue $11.68 billion of bonds expected to yield 7.5 to 8 percent by mid-April according to a statement by the country’s finance minister to the Congress. The state plans to sell three bonds with maturities of 5,10 and 30 years. Upon selling the debt under New York law, Argentina expects the yields to fall to 6 percent in the short run due to rating upgrades and then a continuous improvement based on the country’s outlook fiscal and monetary situation. President Mauricio Macri is moving swiftly to regain market confidence by reversing the policies of former President Cristina Fernandez de Kirchner. Refer tohttp://www.bloomberg.com/news/articles/2016-03-08/argentina-luring-highland-shows-distressed-bond-buyers-to-stay

One thought on “Argentina Plans to sell $12 billion of its debt and HCM is in best position to buy it

  1. The HCM plan to invest is a significant point of confidence for Argentina as the country attempts to sell off its national debt to pay settlements with creditors such as Paul Singer. To the ones who pay to write paper I have a good thing to say to them and I think it’s very necessary too for that to happen.

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