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Nomura Lost About $30 Million on U.K. Inflation Trades in 2021

  • Lender had tried to expand sterling-based inflation strategy
  • Volatile conditions in rates market as consumer prices rise

Nomura Holdings Inc. lost tens of millions of dollars on transactions linked to U.K. inflation when a new trading strategy backfired, people familiar with the matter said.

The Tokyo-based lender attempted to expand its sterling-based inflation-trading business in early 2021, the people said. But the Nomura traders were stung by sharp moves in U.K. consumer prices and lost about $30 million last year instead, one of the people said.