An Insight into the International Bond Market

As the demand for infrastructure across countries continues to rise, most of them are resorting to the international bond market. The market provides countries with an avenue that they can use to raise resources within a short period of time. Argentina has not been left behind in a quest to look for more resources. The country is projected to float a bond in the international market on March, 2016.

The highland capital management company is projected to be the main buyer of the bond. It is important to note that the company specializes mainly in asset management. Indeed, the company is responsible for the management of a whooping 19 billion US dollars. The company is also tasked with managing certain hedge funds for their clients.

The expression of interest by Highland Capital Management Company has been seen as a silver lining for, Argentina, which has been in default previously. A big percentage of the money that will be raised is mean to be used for settling the amount that is currently owed to holdout creditors. For instance, the country still owes a lot of money to billionaire businessman, Paul Singer.

Currently, the company amounts to the biggest holder of the bonds that Argentina has issued. The original bonds that are held by the company are projected to mature in 2033. The president of the company, James Dondero, has stated that the company intends to retain the bonds that it has currently purchased. This is because the country is likely to price the bond better than other southern American countries.

Government officials in the country have stated that they would like to have the bond regulated by New York laws. Indeed, there is a lot of optimism that there will be an impressive reception of the bond for various reasons. First and foremost, there have been short term rating upgrades that have been implemented on the country.
There are various things that have contributed to the success of Highland Capital Management. First and foremost, the company has a competent president, James Dondero.

The competence of James Dondero has been recognized across many quotas. For instance, the president has received a myriad of accolades during his period at the company. His academic background has also contributed to his success. This is because he is an alumnus of the University of Virginia where he majored in accounting and finance.

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Source: http://www.bloomberg.com/news/articles/2016-03-08/argentina-luring-highland-shows-distressed-bond-buyers-to-stay

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