Highland Capital Management is set to invest in the Argentine International Bond Markets, this comes after the company raised over $12 million to facilitate acquisition of this bonds. James Dondero who is the CEO of the asset management firm has indicated the firm’s intention to buy into the Argentina Bonds, an undertaking which is not alien to them. The firm has previously invested in the Argentine Bonds, boasting of being the biggest holder of Argentina’s $4 Billion of notes set to mature in 2033.
The announcement by Highland Capital Management LP is a great relief to Argentina, who are looking to make a return to the international bond market in an attempt to to raise capital to clear their debts. Rumors have emerged about the distressed investors being potential buyers of the bonds, but it remains to be seen if this eventuality will pass.
Highland Capital Management has no intention of selling the original bonds but is looking to add to the original bonds through buying into the new issuance. James Dondero who is seen by many as an authority with regards to international trade is optimistic that the acquisition of the bonds will pay off.
Argentina has announced issuance of $11.68 billion of bonds expected to yield 7.5 to 8 percent in Mid-April, this is according to the finance ministry officials who presented the debt bill to congress. In an attempt to clear the debt of most hold outs the bonds have been categorized in three phases, one maturing at 5, 10 and 30 year. The move by Argentina to make a return to the Bond Market comes through attempts by President Mauricio Macri seeking to propel the country’s economy to the right direction.
The Argentina has faced very hard economic times with the policies of the Former President Fernandez de Kirchner driving the country deeper into debt and economic depression.
U.S District Judge Thomas Griesa lifted the ban which expressly stopped the country from paying its restructured debt. The new administration seems to have it all figured out with regards to growing the country’s economy. Investors like James Dondero of Highland Capital Management LP, has indicated his intention of pursuing further investments in the country.