They were previously shut out of global markets because of a $95 billion dollar default in 2001. Argentina was unable to pay the holders of the restructured foreign-law bonds, even going so far as to defy U.S. court orders to settle in July 2014. Argentina has a new president who is committed to regaining market access and reverse the policies of his predecessor. This has lead to Argentina issuing $11.68 billion dollars in bonds to yield 7.5-8% in mid-April. There will be three bonds with maturities of 5, 10, and 30 years. U.S. Judge Thomas Griesa will lift the ban that’s prevented the country from paying its restructured debt. This reversal of fortunes was seen by one man, Highland Capital president, Jim Dondero.
Highland has $4 billion dollars of Argentinian notes that are due in 2033. They are also planning on not only holding on to what they have but to invest in more of the bonds that will be offered. Jim explained, “We’re optimistic on where Argentina is likely to price the debt and where it’s likely to trade, especially relative to other Latin American sovereigns. Highland has earned annualized returns on Argentina bonds of close to 20 percent since June 2014.” Jim also stated, “Our view, which I think was a good interpretation and ended up being correct, was that there was an intermediate-term inevitability to settle with holdouts that would have the bonds trade higher.” Once they are paid, James Dondero said that he would be open to starting an Argentian fund.
Jim Dondero’s board of director’s positions are numerous. He is chairman of NexBank, Cornerstone Healthcare, and CCS Medical Corporation. His education backs up his 30 years of experience with certifications of Management Accountant and a Chartered Financial Analyst, and a BS from the University of Virginia.
In addition to being a financial wizard, Jim Dondero also has a heart working with several charities like George W. Bush Presidential Library and Institute, Perot Museum of Natural Science, Education is Freedom, Snowball Express, Uplift Education and SMU’s Tower Scholars Program.
With Jim Dondero’s foresight at the helm, especially where the global marketplace is concerned Highland Capital Management will continue to be a leader in the industry.