Now, only Argentina, Greece, Venezuela and Cyprus are seen as greater default risks than Egypt and it is more expensive to buy Egyptian CDS than it is to buy the same swaps on Pakistan’s government debt, report Robin Wigglesworth and Heba Saleh for the Financial Times.

The bottom line is that removing Morsi and the Muslim Brotherhood from power could eventually boost Egyptian stocks, but EGPT’s near-term reaction to more political strife in Egypt is unlikely to be favorable for investors.

Market Vectors Egypt ETF

ETF Trends editorial team contributed to this post.