Founded by Mark Okada and James Dondero, Highland Capital Management is one of the biggest investment banks in the U.S. with over $19 billion under its management. The main products managed by the company include Collateralize Loan Obligation (CLOs), ETFs, separate accounts, hedge funds, distressed debt, and mutual funds. It was founded in 1993 and has steadily grown to become one of the largest and most experienced global alternative equity and credit managers providing alternative investment solutions for over 20 years.
The company invests across various classes of assets and structures but within the alternative landscape. The company has a diversified client base which includes corporations, public pensions plans, financial institutions, and high-net-worth individuals. The investment opportunity under watch list by Highland Capital Management is the scheduled international bond issue by the Argentina’s government. Highland already holds bonds issued in the 1970s by the country and which the company is scheduled to benefit after the U.S. District Judge ordered the Argentina’s government to pay the creditors their dues.
According to the CEO and co-founder of the Highland Capital Management, James Dondero, Argentina plans to issue the bond of $11.68 billion and the yield will be 7.5 to 8 percent in April. However, the Finance Ministry officials told the Congress that the passing of the debt bill will pave the way for the issue. The plan in place is to sell three bonds with maturities of 5,10, and 30 years. James Dondero also believes that he knows the price of the debt and where it will be trade relative to other Latin American sovereigns.
The government of Argentina has already started implementing the new reforms putting the country on course for growth. In fact, Argentina’s government hopes that the yield for the debt to be issued under the New York Law will fall at about 6 percent in the short term as the rating upgrade and the improving outlook for the country’s fiscal and monetary situation. The new President of Argentina, Mr. Mauricio Maacri has been in the forefront in these reforms having reversed the policies of his predecessor Cristina Fernandez de Kirchner after he took office on December 10, 2015.
Dondero has over three decades of experience in the field of finance and has received numerous accolades and awards in his career. Some of the awards include Morningstar’s 5-star designation for Global Allocation in 2014. He was recognized as the Morningstar’s #1 ranked Healthcare for both long and short Equity Fund in 2014 and the Lipper Award for Floating Rate Opportunities. Follow him on Twitter and like his Facebook page.