Continued protests keep Egyptian CDS spreads volatile

Eurozone risk perceptions fall while Egypt remains on a knife edge

The cost of insuring against an Egyptian default remained volatile today, as the tense stand-off between protesters and government supporters continued across the country. Spreads on Egyptian credit default swaps (CDS) narrowed from 389 basis points at close of play yesterday to 377bp by 1.00pm UK time today, according to financial data provider Markit. Although the violence that has raged between the two groups over the past two days seems to have abated, pro-democracy forces remain entrenched