Highland Capital Management is an asset management company that is tasked with managing over $19 billion in terms of assets. Its services are focused on credit hedge funds as well as emerging market credit funds. Highland Capital Management is said to be gearing its efforts and resources to invest in a large portion of Argentina’s bonds. Argentina is reported to be planning to issue its bonds, which are worth an estimated $12billion, in its latest efforts to make a comeback in the International bond markets.
Before integrating its holdings in the past several months, Highland Capital Management was a top stakeholder of Argentina’s $4 billion notes, which are set to be due in 2033. The plans by the company are a sign of hope for Argentina in its endeavors to repay holdout creditors by selling its outstanding debt.
James Dondero, the president and co-founder of HCM, stated that his firm intends to continue holding its stake in the original bonds while still making an effort to purchase the upcoming issuance by Argentina. The company also expressed hopes on the point or level that Argentina will set the debt prices as well as trade the debt in comparison to other Latin American sovereigns.
The bonds, which are estimated at $11.68, are expected to be trigger results of about 8% by the middle of April after being issued. However, yields are anticipated to drop to 6% in the upcoming future. Three distinct maturities of five, ten as well as thirty years are to be utilized in selling the bonds.
Dondero boasts of an outstanding reputation that runs for over 30 years in both the credit and equity markets, which are devoted to high-yield and distressed investing. He derived his knowledge in this field of operation from his academic experience in finance and accounting fields from the McIntre School of Commerce. His other qualifications include being a Chartered Financial Analyst as well as a Certified Public Accountant.
Before establishing Highland Capital Management, he served as the CIO of Protective Life, which was GIC’s Subsidiary. During his term, he helped the company to grow significantly to more than $2 billion regarding the value. He serves in different capacities such as the chairperson of Cornerstone Healthcare and CCS Medical.
The information is available on Bloomberg http://www.bloomberg.com/news/articles/2016-03-08/argentina-luring-highland-shows-distressed-bond-buyers-to-stay
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