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State Bank of India CDS rise on new CDs from 3G auction

|Includes:AAB, ADRE, EPI, FNI, HDB, IBN, IFN, IGC, ING Groep N.V. (ING), INR, MTNOY, RELFF, RS, VOD

State Bank of India (NYSEMKT:SBI) credit default swaps are seeing increasing activity as the main bank involved in financing India’s latest 3G wireless spectrum auction a couple weeks ago is expected to provide up to 20,000 crores (~ US$4.5 billion), of the total 35,000 crores being funded by the country’s banks, by today. In order to fund this commitment, SBI and other banks have driven a surge in certificates of deposit (CDs) issuances.

Disclosure: long all stocks

Stocks: ING, IBN, HDB, IFN, IGC, EPI, FNI, INR, VOD, RELFF, RS, MTNOY, AAB, ADRE