James Dondero decided that his firm Highland Capital was capable of handling Argentina’s debt. It did play well in their favor, especially when Mauricio Macri was elected president. Who knew that an exploration in 2012 would lead to Argentina becoming the global economic competitor? This is what happens when you take a risk, it works out. Read this article at barrons.com.
— Highland Capital (@HighlandCapMgmt) July 16, 2018
Mauro Staltari came aboard as an analyst to help with locating provinces within Argentina that would turn out great yields for debt. It ended up being a good thing. As more and more provinces came forward, their yields increased. This was all Dondero needed to put his economic investment strategy in place. President Macri did his part by changing some of the governmental policies that concerned Argentina’s finances. As a result, they were able to $16.5 billion which was done at a huge record-setting pace. The country at this point is now part of the global market. James Dondero also took the initiative to increase the equity holdings in the country. Things are liking really good for Argentina, but there is still a lot of work to do. They do not want to regress and become like their neighbors. So it is imperative that they fix their deficit problems. This is crucial in maintaining their countries economic growth. While the other countries are in financial turmoil because of their government, Argentina decided to learn from their mistakes and handle things differently. Change is good especially if it will have a huge impact on the economy. Visit Patch.com to know more about James.
Dondero made the right call here investing into Argentina’s debt. With the cooperation of their government, things are looking up. Of course, there is always room for improvement. For right now the country should take things one step at a time. They are definitely on the right path.