The cost of insuring against an Argentine debt default has increased after holdout creditors, as expected, rejected the country's latest payment offer. A U.S. appellate court must decide whether the holdouts need to be treated equally to debt holders who have agreed to a restructuring. "We always viewed the court response as more critical since a cram-down from the courts was necessary to cure the risk of technical default since there could be 'tagalong' litigants that later reject the offer terms," Jefferies' Siobhan Morden wrote in a note to clients.

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