Argentina is planing on issuing their debt up for sale under New York law. They are expecting the yields to fall in the short term to roughly 6 percent and they have optimistic outlooks for the monetary and fiscal situation in the country, according to Argentinian Finance Secretary, Luis Caputo.
It was in 2001 that it was shut out of global markets. The new president, Mauricio Macri is making efforts to turn the situation around. This situation was unfortunately created by his predecessor, Cristina Fernandex de Kirchner.
Judge Thomas Griesa, of the United States District, is expected to lift the ban on Argentina in April and Highland Capital Management plans on being one of the first to pick up some of the securities. James Dondero, the founder and CEO loves Argentinian bonds. The ones that they got in 2014 have brought in an annual return of 20 percent and this was a major help with the losses that the energy sector has been feeling recently.
James Dondero founded highland capital in the early 1990s and has been leading it for over 2 decades. Jim did not start off at the top though. After graduating with honors from the University of Virginia, he took his dual degree in finance and accounting to the Morgan Guaranty training program. He worked there for about a year and he then moved on to American Express where he worked as a corporate bond analyst and a portfolio manager for several years. Jim Dondero actually managed a portfolio that was valued at 1 billion dollars at the time. Dondero was then asked to join the Protective Life team in a GIC subsidiary. He served as the Chief Investment Officer for 4 years and helped to grow the company up to 2 billion dollars. It was at this stage that Jim and another individual decided to buy out the subsidiary. This subsidiary was then turned into Highland Capital Management and they are now managing more than 19 billion dollars in assets.
If you would like to read the full article, it can be found here: http://www.bloomberg.com/news/articles/2016-03-08/argentina-luring-highland-shows-distressed-bond-buyers-to-stay