Hi Lew,
I can't tell you what fly works well with coyote fur, but I can tell you that a 243 with a 60 grain hollow point works well ON coyote fur, that is if you are trying to collect some.
Seriously, though, a few years ago I had a coyote tail in my garage, but when I noticed it got nasty/odorous it immediately got pitched. I had looked it over pretty good before pitching it, though, and I think it would have made great winging material for streamers. If the stuff is light enough in color, it could be dyed to some nice colors too.
It had a certain kinky type character to the fibers, so rather than being straight and compact as a wing, a small amount would make a bulky wing . It also looked rough (non-smooth) enough that I thought it would tie in well and not slip out easily. The nice thing about the fibers having kink to them is that makes them bulky so that the they might appear more translucent on the fly, a good thing in my view.
If I had some coyote I would dye it up as a few colors, and then would tie up some old standard streamer patterns with it to test.
Regards,
Gandolf