Highland Capital Management and James Dondero, Co-Founder and President said they are looking forward to purchasing Argentina′s New Securities. Although Former Argentine President, Christina Fernandez de Kirchner refused to settle debts with U.S. creditors during the eight years of being in office, creditors have a change of heart. According to the Highland Global Allocation Fund, the firm holds $270 million in Argentine debt. Online magazine, Bloomberg Business featured an article saying President Mauricio Macri has worked quickly to enter international markets and reverse policies of the previous President, Christina Fernandez. President Macri fulfilled his works by influencing the lower house of Congress to vote for his legislative decision to remove the legal barriers.
James Dondero predicted the Argentine government would work towards setting the debt owed to U.S. creditors. He also predicted that “yields on the Argentina currency bonds due 2033 would fall to six percent minimum, based on the weakness of other sovereigns trade.″ Dondero made the assumption that the country will create the agreement during the first quarter of 2015. He was correct about Argentina reaching an agreement to settle debt, but his assumption of the government creating the agreement was off while Hernandez remained in office.
President Mauricio Macri created the agreements to repay U.S. holdout creditors and it passed successfully before Congress. An article in online magazine, Reuters stated Argentina’s House of Congress passed legislative laws to lift the Lock Law and the Argentine Congress Sovereign Payment Law. After approximately twenty years of Argentina defaulting on debt owed to creditors, U.S. District Judge Thomas Griesa lifts the ban that prevents Argentina from paying its reorganized debt. Among the winning U.S. creditors was Highland Capital Management and Jim Dondero. The whole ordeal pertaining to the Argentina government and Former President, Christina Hernandez denying the U.S. Supreme Court orders to pay its debt is finally over.
After all the trouble with the Argentina government, James Dondero believes there is hope for the country and global markets. New leadership is obviously what the country of Argentina needs after nearly two decades of defaulted debts. Since he took office December 2015, things are looking promising for the future of trading securities internationally. Hopefully the economic relationship of the United States and Argentina will grow. Highland Capital Management is planning to continue purchasing Argentine securities.
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