Bloomberg writes "Nordea 'Very Active' in U.S. Money Market as Reform Deters Banks." The article explains, "The biggest Nordic bank is among an elite group of issuers undeterred by the most dramatic reform to hit the U.S. money market in over three decades. While some European lenders have found it hard to access the dollar market since new regulations went into effect last year, Nordea Bank AB says it's offered almost $1 billion in certificates of deposit already this year, and is planning more offerings, also in commercial paper. 'We will keep the door open for further issuance,' Jaana Sulin, head of short-term funding at Nordea in Helsinki, said by phone. 'We are still very active both in CDs and CP out of the U.S. market.... When you look at the general market today, most European banks can't issue six and 12 months anymore because of this reform.'" Bloomberg explains, "But banks would rather issue longer-dated papers, Sulin said. Longer maturities mean more stable funding, which is a goal of bank regulators. Issuing longer maturities also makes it easier for banks to meet liquidity requirements. The clash in regulations has created a headache for issuers, Sulin said. Banks are 'required to issue longer short-dated paper to be more solid' while the investor gets 'pushed the other way around.'" They add, "But for Nordea, its ratings are helping. Funds are willing to buy its instruments at the longer end of the short-term horizon if the ratings are right -- and Nordea's are, Sulin said."

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