The cost of insuring Egypt's government debt against default has risen above the cost of insuring Dubai's, a sign of growing concern about political stability ahead of elections scheduled to begin next month. Egypt's credit default swap spreads, which track the amount of money investors would have to pay for protection against a debt default, rose above Dubai's on Tuesday for the first time in about a month, according to a Bloomberg News report.
Dubai's swap spreads have been some of the highest in the region since the onset of the financial crisis forced several big government-owned businesses to restructure debt to avoid default.
"We should never underestimate the importance of the political process, especially in emerging markets," said Plamen Monovski, the chief investment officer at Renaissance Asset Managers.
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