Over the last several years, most of the Latin American countries have been struggling with high inflation, fiscal imprudence, and unstable currencies. Brazil, for example, has been hit with corruption scandals that have seen the nation lose billions of dollars. Venezuela has seen an increase in the number of people leaving the country due to hyperinflation, deterioration of the economy, and a crumbling energy sector. While not all nations in Latin America are going through troubled times, some have shown economic growth and progress, but all in all, investors are afraid to invest in the markets. Learn more about Highland Capital at Crunchbase.
Argentina is one of the few nations in Latin America that is somehow different. Though the country has gone through years of weakening economy due to political tensions, it has the power to rise again due to a significant number of educated people and several natural resources. According to Mauro Staltari an analyst working for Highland Capital Management, Argentina is so unique and provides unique investment opportunities that can be explored to achieve a promising economic future.
Highland Capital management was one of the leading firms that were tasked with recovering the backtracked Argentine debt. After the 2016 election of Mauricio Macri, the government reached an agreement with Highland Capital and other financial lenders to help Argentina in its economic recovery and reentry into international markets. Highland capital had started putting into place various investment strategies even before the agreement was reached. Read more at bloomberg.com.
James Dondero the president of Highland Capital began looking into investing in the Argentine sovereign debt back in 2012. The employment of Mauro Staltari as a specialized analyst was part of his plans to enter Argentina. Dondero is confident that the economic policies put in place by the new president will work out as planned. In 2016, the corporation started localizing its investments plans.
Apart from the Argentine provincial debt, the firm has been exploring and aims to increase its equity holdings in the country. The pro-business initiatives and markets reforms developed under Macri’s administration have encouraged other businesses to pursue IPOs and exploit new methods of accessing capital. While the equity market is still small, the improved business climate and policy changes have shown excellent results with improvement in liquidity and market growth.