Sovereign risk rises again as Egypt violence worsens

map of egypt

Escalating violence between pro- and anti-Mubarak factions in Cairo and other Egyptian cities today pushed credit default spreads on the country's sovereign debt wider, reversing most of the decline earlier this week. Spreads reached 393 basis points at 4:00pm UK time today, from 385bp at close of trading yesterday, according to market data provider Markit. The spreads peaked on January 31 at 433bp before dropping on February 1 and 2. Elsewhere in the region, Bahrain went from 223bp to 253bp