Japan’s Nomura flags $2 billion loss at U.S. unit, cancels bond issue

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The estimated amount of the subsidiary’s claim against the client is approximately $2 billion based on market prices as of March 26, the brokerage and investment bank said in a statement.

This estimate could change depending on the unwinding of the transactions and fluctuation in market prices, it said.

In a separate statement on Monday, Nomura said it would cancel the planned issuance of U.S. dollar senior notes, citing “an event that occurred after pricing that could impact the company’s consolidated financial results.”

Nomura said it is still assessing the impact of the potential loss on its consolidated earnings.

Shares of Nomura were down nearly 15% in early trade on Monday, after being hit with a deluge of sell orders at market open.