Talks on foreign aid are failing to quell concern that Egypt’s economy is struggling to recover, imperiling a bond rally that returned about twice as much as Middle East non-investment-grade debt this year.
Investors in the Arab nation’s 5.75% dollar-denominated bonds due in April 2020 lost 1.9% in September, paring this year’s return to 22% on Tuesday, data compiled by Bloomberg show. That’s the biggest monthly decline of the year and compares with a 2.5% gain in the HSBC/Nasdaq Dubai Middle East Sub Investment Grade US Dollar Sukuk/Bond Index. The index has returned 9.6% in 2012………………………………………..Full Article: Source