Litigation risk for years to come

No matter how successful the Argentine exchange offer is, there will always be holdouts ? investors that refuse to enter into the exchange in the hope of getting a better deal later. Many investors are worried about these holders of original debt. Will they pose a credible threat of seizing coupon payments on Argentina's new bonds? If they do, they could keep Argentina in financial purgatory, without access to investment, and with artificially high bond spreads because of the risk of coupon attachment, even though a supermajority of creditors had agreed to a restructuring. Reassuringly, the answer is that the holdout threat is probably not all that credible, although nobody knows for sure.