Egyptian dollar bonds rebounded from record lows this week and confidence improved in the nation’s ability to honor debts as economic growth prospects outweighed concern protests may destabilize the country.
The yield on Egypt’s 5.75 percent bond due in 2020 rose 3 basis points, or 0.03 percentage point, to 6.5 percent at 1:13 p.m. in Cairo after reaching a peak of 7.2 percent Jan. 31. The cost of insuring Egypt’s debt for five years with credit-default swaps fell less than 1 basis point to 378 after hitting 430 on Jan. 28, the highest since April 2009, CMA prices in London show. The contracts remain 76 basis points higher than before thousands of protesters took to the streets Jan. 25 to unseat President Hosni Mubarak.
“As the week progressed, markets started to react to events rationally,” Haissam Arabi, chief executive officer of Gulfmena Alternative Investments in Dubai, said in an interview yesterday. “Investors started to realize that this may be a great bargain-hunting opportunity. The country remains a domestic growth story.”
No comments:
Post a Comment