James Dondero/Stock Market 2016

Posted in Business on Mar 25, 2016

Argentina returns to bond markets on the international level. They intend to raise $12 billion, and the nation will count on a prominent buyer, Highland Capital Management LP.

James Dondero is the co-founder and president of this management firm. At his discretion this firm oversees $19 billion, market credit funds, credit hedge funds and will look to purchase a significant amount of the securities. James Dondero’s firm has been Argentina’s largest holder of $4 billion of notes due in 2033.

As Highland plans to invest in Argentina’s debt to pay creditor settlements. It is the distressed debt that investors have heaped into Argentina in the last few years that could remain buyers of the country’s debt even though it gets out of default.

The Dallas firm plans to hold what they have in original bods but want to buy a partial amount of new issuance. Jim Dondero sates that they are optimistic on the price that Argentina may price the debt, as well as where it’s likely to trade. It is Argentina’s plans for issuance of $11.68 billion of bonds to yield 7.5 to 8 percent during mid-April.

The U.S. District Judge Thomas Griesa will lift the ban that’s prevented Argentina from paying its restructured debt. Highland is in line to be the largest winner. In June of 2014 the fund purchased the 2033 bonds, as they were trading in the 70s. Dondero comments that his firm has earned annualized returns on Argentina bonds is close to 20 percent.

It is Dondero’s desire to continue to invest in opportunities in Argentina beyond the debt and could start an Argentina fund. It is Highland and other holders of the nation’s debt will like to reinvest in Argentina after the debt is paid, this is according to Bank of America Corp. analysts Jane Brauer and Sebastian Rondeau.

The March 3rd report showed that if the new bonds are correctly priced, this action could be another asset for providing upside when in comparison to alternative Argentina assets.

This article recapped http://www.bloomberg.com/news/articles/2016-03-08/argentina-luring-highland-shows-distressed-bond-buyers-to-stay

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