Why Highland Capital Management Is Investing In Argentina

Highland Capital Management, L.P., is an investment company based in Dallas, Texas. Between the parent company and its subsidiaries they manage about $17.7 billion in assets. This company was founded in 1993 by Mark Okada and James Dondero and they have built this company into one of the leading alternative credit managers in the world. Read more about Highland Capital at prnewswire.com.

For several decades Latin America has been a place with many financial issues. High inflation has often been a problem for countries in this region of the world as well as fiscal imprudence and currencies that haven’t been stable. A number of countries in Latin America, particularly Brazil, have had numerous corruption scandals erupt. However, the team at Highland Capital Management have identified Argentina as a country that is now a good investment opportunity, separating it from the rest of Latin America in this regard.

For almost 50 years Argentina was run with populist policies in place. They subsidized various industries to keep markets artificially low, like other countries in Latin America do. However, this all changed when they elected a new president in Argentina in December 2015, Mauricio Macri. He is a center-right politician who has reversed many of populist policies. His new policies are designed to be market-oriented which has unleashed the economy.

Read: https://www.dallasnews.com/business/jobs/2017/09/25/executive-changes-hirings-promotions-enseo-ericsson-highland-capital-sept-25-29

In order to reverse the fortunes of Argentina Mauricio Macri knew that he needed global companies to invest in his country. Access to foreign capital was critical to jump-starting the economy and achieving growth. Highland Capital Management was one of the firms that took a big interest in Argentina early in Mauricio Macri’s presidency. They are buying Argentina’s intermediate-term bonds which provide the best mix of yield and duration. The bonds they are buying range from 5 to 15 years and the accompanying yields are from 6.5% to 7%.

Highland Capital Management also held quite a bit of Argentina’s defaulted debt. However, this worked out well for this company. Mauricio Macri worked out a deal with the owners of this debt just after he was elected. Resolving this issue was what allowed Argentina to once again be part of the international markets. Visit highlandcap.com to know more.

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