James Dondero’s Investment in Argentina’s Sovereign Debt

The country of Argentina has experienced hyperinflation due to the economy’s energy sector, among other factors. The currencies of Latin America have not been stable. Much of the Latin population has left the country, while some countries have shown great investment potential.

President Macri has been working to counteract populist policies. These policies have kept the market’s low due to subsidies. Macri is leading the charge with policies that are more oriented to the market. He was elected in December 2015, but things really began to change for Argentina in 2016. Prior to Macri, Argentina had been experiencing energy tariffs for ten years.

Macri raised the controls on currency in the belief that this would cause more investments to flow into the country because it entered global capital markets. Before Macri, the country had not been involved in capital markets since 2001. Highland Capital Management is looking to have more equity holdings in Argentina. Learn more about James Dondero at Affiliate Dork.

The Dallas-based company Highland Capital, is focusing on Argentina as a major generator of economic progress in the region. Argentina manages to experience success in the capital markets by managing to accumulate $16.5 billion dollars, while sovereign debt from developed countries was trading negatively.

The maturities from this issuance had tranches that lasted Between 3 and 30 years With an 8% yield. The 8% yield Applies to the longest lasting maturity. The investment climate gave an average yield of 6% according to JP Morgan emerging markets bond global diversified index. In 2016 calmer a 10 year bond issued from Argentina would have a 7.5% yield. Read more at Huffington Post about James Dondero.

The government of Argentina realized that it would be necessary to have foreign capital to achieve growth goals. Highland Capital Management became an early investor in Argentina. The company became involved with Argentine’s debt prior to macrys election. Argentina was able to enter International markets again because of the agreements reached with lenders and 2016.

Co-founder and President of Highland Capital, James Dondero, began reviewing Argentina as a potential investment in 2012. This led him to discover sovereign debt and the opportunity it would yield. Since then, Staltari has joined the ranks as an investment analyst. Highland Capital Management is focusing on expanding provincial debt and equity holdings in Argentina. According to Staltari, the company’s portfolio has been positioned to align with economic reform.

View: https://www.crunchbase.com/person/james-dondero