James Dondero who is the current CEO of Highland Capital Management recently said in an interview that his firm had predicted that something had to give in 2014 when looking at Argentina and what a resource rich country they were. At the time they were minimizing their production and depleting their foreign reserves. This set them up for failure. The country was a financial outcast due to the fact that they had price manipulations, very bad tax policies and large subsidies and this all led to a turning point. James Dondero and his team predicted this would happen as well as knowing that this will cause the bonds to trade at a higher price because they had to settle with holdouts.
The company, Highland Capital Management will be looking beyond just the sovereign debt and is also looking for other investment opportunities as well as starting an Argentina fund. Those other companies similar to Highland Capital that are also holding the sovereign debt might also be looking to reinvest into the country once they are paid. This is latest information from analyst Sebastian Rondeau and Jane Bauer from Bank of America Corp.
The same analyst also mentioned in a March 3rd report that there had been an expectation that those distressed investors would exit the country upon completion of the transaction but this is not the case as many funds are creating dedicated Argentina funds to re-invest in private equity, equity and debt. They believe the new bond is priced very well and is a good investment compared to other Argentina assets. For a full recap on the report please visit the Bloomberg Business website.
Jim Dondero or as most people know him, James Dondero attended the University of Virginia where he graduated with honors. He received Beta Alpha Psi and Beta Gamma Sigma which are the highest accolades from the McIntire School of Commerce. James studied a dual major in both Finance and Accounting. Jim is also a certified public accountant, chartered financial analyst as well as a certified management accountant. As well as being involved as the CEO of Highland Capital Management he is the current chairman of Cornerstone Healthcare and NexBank. Jim also serves on the board of the MGM Studios and American Banknote. All this has kept James Dondero humble and active within the community.