Egypt debt insurance costs hit record high after anti-Morsi protests

Reuters, Monday 1 Jul 2013

Egypt's 5-year credit default swaps rise 34 basis points to record highs of 900 bps on Monday after millions protest against Muslim Brotherhood president

anti-Mursi protests
(Photo: Bassem Abo EL-Abas)

The cost of insuring Egypt's debt against default rose sharply on Monday after millions of Egyptians rallied against President Mohamed Morsi.

Egypt's five-year credit default swaps rose 34 basis points to record highs of 900 bps, according to Markit. A CDS level of 1,000 bps typically indicates distressed debt.

Literally under fire overnight as its national headquarters were set alight, Morsi's Muslim Brotherhood remains besieged by liberals and others who want him to resign. Even some fellow Islamists say he must make concessions.

Egypt's CDS have leapt 200 bps since mid-June, as political tensions rose.

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