A good way to correlate actual political risk is to look at Credit Default Swaps and their prices, credit default swaps allow a foreign investor to insure risky assets in the developing world. It is part of the shadowy derivatives world of modern finance. Egypt's CDS is through the roof and if the people come out into the streets despite government threats , it will explode. It is time the Ikhwan take a stand and sacrifice... We ask all to keep the people of Egypt in their du'aa.. Queen Raina, watch that rolex, I would ship it off as well. Wake up ya muslimeen!!!
LONDON Jan 26 (Reuters) - The cost of insuring Egyptian debt against default rose to a fresh 18-month high on Wednesday on political concerns, but Lebanon debt insurance costs fell in volatile markets.
Egypt's five-year credit default swaps rose 11 basis points to 345 bps, according to Markit, after demonstrations on Tuesday demanding an end to President Hosni Mubarak's 30-year rule.
Lebanese five-year credit default swaps fell 34 bps, however, to 340 bps, after hitting 18-month highs in the previous session following the collapse of the Lebanese government earlier this month.
Lebanon is an illiquid credit, Markit analysts said.
Tunisian central bank five-year CDS also rose, by 4 bps to 188 bps, with protests in Tunisia also continuing.
(Reporting by Carolyn Cohn; Editing by Susan Fenton)
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