Dondero said he’s pursuing investment opportunities in the country beyond sovereign debt and may be looking to start an Argentina fund. Like Highland, other holders of the nation’s defaulted debt are likely to reinvest in Argentina after they are paid, according to Bank of America Corp. analysts Jane Brauer and Sebastian Rondeau.
“There has been an expectation that distressed investors will exit when the transaction is complete, but instead we see many funds creating dedicated Argentina funds to invest in debt, equity or even private equity,” they said in a March 3 report. “The new bonds, if priced correctly, would be just another asset for providing potential upside compared to alternative Argentina assets.”