Egypt’s Distressed Debt Lures Buyers as IMF Eases Default Fears
- Egyptian dollar bonds outperform developing peers this week
- Some longer bonds still quoted around 50 cents on the dollar
The city skyline in Cairo, Egypt.
Photographer: Amir Makar/Getty ImagesThis article is for subscribers only.
Investors have started rummaging through Egypt’s beaten-down debt for bargains amid optimism that a loan from the International Monetary Fund may help the north African nation avoid default.
Egypt’s dollar bonds have gained 5% this week, among the top three emerging-market performers, according to Bloomberg indexes. Credit-default swaps on its debt remain above 1,000 basis points -- a level typically considered distressed.