Egypt debt insurance costs hit record highs
The cost of insuring Egypt's debt against default has risen to record highs in the five-year credit default swap market, according to Markit, on concerns about political unrest.
An opposition campaign for mass rallies demanding the resignation of President Mohamed Mursi on June 30, the anniversary of his inauguration, has been preceded by shows of strength by Mursi's supporters and some street clashes in which at least two men died at the weekend.
Mursi, who has been accused of fuelling sectarian hatred, promised swift justice on Monday for a deadly attack on minority Shi'ite Muslims.
Egypt's CDS jumped around 80 basis points on Monday to a record high of 847 basis points. That indicates it costs investors $847,000 a year to insure exposure to $10 million worth of Egyptian debt for a five-year period.
Markit said Egypt's CDS were not sufficiently liquid for it to provide a live price on Tuesday.