Default Swaps Jump Most in BRICs on Food Subsidy: India Credit
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India’s plan to boost food subsidies by 50 percent is threatening efforts to cut the budget deficit, extending the biggest jump in bond risk among the largest developing nations.
The cost to protect the debt of State Bank of India, seen as a proxy for the nation, against non-payment rose 234 basis points in 2011 to 395 basis points, the most in three years, according to data provider CMA. Credit-default swaps on China’s government bonds increased 82 to 150, while those for Russia climbed 129 to 276 and Brazil’s added 53 to 164.