Nordea Traders Hit by Losses on Surging Interest Rate Outlook

Nordea Bank Abp’s rates traders were wrong-footed in March when the Iran war caused a rapid change in the market outlook for monetary policies.

That month, the Helsinki-based lender suffered “exceptional losses across certain desks caused by unexpected sharp increases” in expectations for euro and Swedish krona interest rates, it said in its first-quarter report on Wednesday. That cut the bank’s net fair value result from treasury and market making to €19 million ($22 million) in the period from €77 million a year ago.