What You Can Learn from James Dondero’s Approach on High Yield Credit

With extensive experience in the high-yield market, James Dondero is a prolific business and investment specialist. He dedicated most of his career managing long-term separate accounts and commingled funds in the industry. Dondero is the co-founder and president of a reputable high-yield credit company known as Highland Capital Management (HCM). Learn more about James Dondero at High Yield Credit.

Dondero’s Education and Background

James Dondero got a dual degree in Accounting and Finance from the McIntire School of Commerce. He’s also a Certified Public Accountant (CPA), Chartered Financial Analyst (CFA) and Certified Management Accountant (CMA). Dondero started his professional career as an analyst at the Morgan Guaranty training program in 1984.

Dondero served as a Portfolio Manager and a Corporate Bond Analyst at American Express between 1985 and 1989. James Dondero is also notable for helping grow the value of Protective Life (a GIC subsidiary) to over $2 billion between 1989 and 1993. His current executive roles include board member at MGM Studios and chairperson at NexBank, CCS Medical, and Cornerstone Healthcare.

Check: https://investors.jernigancapital.com/leadership/director/james-dondero

Dondero’s Tenure at HCM

Highland Capital Management manages to stay relevant by developing credit-oriented solutions that target international retail and institutional investors. With over $13 billion in bank loan assets under management, HCM contributes to the growth and development of the ever-changing Collateralized Loan Obligation (CLO) market. The company’s high-yield credit portfolio includes REITs, ETFs, private equity funds and hedge funds. As president of HCM, James Dondero helps the company develop product offerings such as mutual funds, CLOs, and separate institutional accounts.

Dondero’s Approach to High Yield Credit

James Dondero believes that retail funds, separate accounts, and commingled funds can achieve high returns. In his work, he uses the total return approach, which offers exposure to high-yield credit markets and focuses on returns with the potential of exceeding benchmarks. He also uses a bottom-up fundamental assessment combined with a top-down technical to understand the underlying collateral, portfolio positioning, macro perspectives, and industry uniqueness. Read more about James Dondero at Wikipedia.com.