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Egypt’s World-Beating Bonds Poised for an Influx of Passive Cash

  • Local bonds set for double-digit returns, investors say
  • Index inclusion adds to draw of high inflation-adjusted rates
Updated on

Egypt’s red-hot bond market has made it a favorite of emerging-market investors, and they’re counting on another year of big gains.

JPMorgan Chase & Co. will add Egypt -- which has $26 billion of eligible government bonds -- to a group of indexes this month, setting the market up to receive an influx of cash from passive money managers. Investors have already been enticed by Egypt’s hefty interest rates, which rank as the highest in the world after adjusting for inflation.