Neuberger Berman is bullish on the Egypt carry trade in 2018: Neuberger Berman Managing Director Middle East and Africa Jahangir Aka likes Egypt’s domestic currency and FX debt and believes that the Egypt carry trade should continue to shine in 2018. “On a macro-level, Egypt is heading in the right directions and doing all the right things,” he said. And as the spread continues to tighten with flows of capital to the market, this will continue to be attractive to bond investors who make money on the bond valuations as well as the carry trade (watch, runtime: 4:00).

NB isn’t alone: Renaissance Capital CEO Ahmed Badr told us in an interview last week that the carry trade looks like it will continue to attract attention heading into the back half of the year.

The strength of the Egypt story hasn’t escaped the notice of the international business press, with CNBC’s Dawn Kissi noting that investors are “still enthusiastic buyers of the country’s recovery story.” Despite talk of unfair elections and human rights issues, Kissi says (see Egypt in the News, below, for the latest examples), “investors are giving the country a second look. Egypt is primed to offer solid returns” and is already seeing its economic reform program pay off. In addition to an FX boom following its decision to float the EGP, Egypt is seeing “steadily improving macro environment, coupled with the real potential for much-needed mega-projects such as infrastructure.”