Egypt Debt Buoyed by Obama Guarantee for $1 Billion Eurobonds
June 14th, 2011How many houses of cards are being held up by the U.S. Dollar regime??? The thing is insidious. It has crept into most countries. This is why I’ve always maintained that it’s going to be impossible to determine the implications of a hard U.S. Dollar collapse.
Via: Bloomberg:
President Barack Obama’s guarantee on $1 billion of Egyptian Eurobonds is poised to reduce the country’s borrowing costs, helping the transition to democracy after six decades of autocratic rule.
The support that Obama pledged last month may cut yields on the five-year debt by 200 basis points, or the equivalent of $100 million, according to the median estimate of five fund managers surveyed by Bloomberg. Yields on Egypt’s one-year bills jumped to the highest level since November 2008 following the uprising that ousted President Hosni Mubarak in February. The country last sold international debt in April 2010.
“The American backing is a complete game changer,” Michael Cirami, who helps manage $12 billion in assets for Boston-based Eaton Vance Corp., said in a telephone interview. “There may be a spill-over effect that it’s going to reduce the risk premium of their non-guaranteed debt and help them re-enter the market eventually on their own.”
