I’m staying pat on Apache even though the street seems to be pushing down the stock on Egypt anxiety. Then again, maybe something else is afoot as the Egyptian stock market is rallying and credit default swaps on the sovereign debt is decreasing, On Tuesday the cost of insuring against an Egyptian government debt default tumbled as news of the Gulf aid packages calmed fears that Egypt’s already fragile economy could be hit by a balance-of-payments crisis.
Egyptian credit-default swaps, which investors use as insurance against defaults or to bet on creditworthiness of countries and companies, fell by 120 basis points to 691bp by midday Tuesday, down from a record 925bp touched earlier this month according to Financial Times