FAQ

Where can I buy Icelandic Government securities and HFF bonds?
This website was created to provide information to parties interested in the Icelandic financial market, but not for the purpose of selling securities. We however provide a list of Dealers in Iceland that do offer securities to international investors. Investors have a choice of signing a custody agreement with any of our Primary Dealers, or of internetional settlement through agents like Clearstream or Euroclear.


Where are Icelandic bonds traded?

Icelandic bonds are traded on NASDAQ Iceland Exchange. (Members of NASDAQ submit their bid and ask offers on the Exchange between 09:30 and 15:30 GMT each business day. Yield and price information are shown on our Market Overview page (15 min. delay).



When is the currency market in Iceland open?
The currency market in Iceland is open from 9:15 to 16:00 GMT on business days.


Can I buy bonds myself at NASDAQ Iceland Exchange?

No, you need to go through a member of NASDAQ Iceland, preferably one of the Primary Dealers in Government Securities or HFF bonds



Do I need to pay withholding tax on capital income from Icelandic securities?
Interest paid to non-residents is subject to withholding tax. However, non-residents can apply to the local tax commissioner for tax exemption/reduction if covered by treaty. To apply for a withholding tax exemption/redustion is a simple process and can be done through an agent.


What is the ISIN# of a particular bond?

Left-Click once with the mouse on the name of the security you need more information about on the banner on the right. That action will call forth detailed information about that instrument. 



Is there a minimum amount, when I buy Icelandic bonds and open a custody account?
Each dealer sets his own rules for their service. Some have minimum amounts and others none. Fees for custody accounts are also different depending on deposit amount. For detailed information contact individual dealers


What is the settlement rule in the NASDAQ Iceland Exchange for bonds?

Settlement takes place two business days after trading or T+2.



What is the settlement standard in the Icelandic currency market?
In Iceland the standard is two days, T+2, for currency transactions.


Should Iceland be viewed differently than other countries?
Yes, it is the smallest country in the world with its own currency and flexible exchange rate. It is a small flexible economy and in such countries there is a case to interpret the current account differently since it is more volatile. A current account deficit might be optimal since it has to absorb large, lumpy investments and due to consumption smoothing.


What is the maturity of bond X?
Final maturity, date of interest and principal payments etc. are called forth with a left-click of the mouse on the name of a security on the banner to the right.


Can I find information on Icelandic bonds on my Bloomberg terminal?

Yes, the Government Debt Management (GDM) and the Housing Financing Fund provide information on their Bloomberg pages ICDO and HFFI. Some Primary Dealers also have their own pages ISLA, ARIO, KVIK and LAIS. You can also find overview on the Icelandic TSY and Money Market on the page BTMM IC. For news type NI ICE GO.



What is the next step if I want to purchase Icelandic Government-backed securities?

Icelandic Government-backed securities can be purchase from Primary Dealers. You find a list with contact information here.



Can I find information from Islandsbanki on my Bloomberg terminal?
Yes, on page ISLA


Can I find information from Arion Bank on my Bloomberg terminal?

Yes, the page is ARIO



Can I find information from Landsbanki on my Bloomberg terminal?
Yes, the page is LAIS.


Can I find information from Kvika Banki on my Bloomberg terminal?

Yes, the page is KVIK.



What is Financial Instablity?
Financial instability occurs when there is a disruption to financial markets in which asymmetric information and hence adverse selection and moral hazard problems become much worse, so that financial markets are unable to efficiently channel funds to those who have the most productive investment opportunities.


What causes Financial Instability to occur?
There are three major routes to this occuring: 1) Deterioration in bank balance sheets, 2) Deterioration in non-financial balance sheets and 3) Currency crises. A floating FX regime is less likely to lead to instability than a pegged regime (according to Stanley Fischer).


Yield Curve

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Non-IndexedPriceYield
RIKV 17 1215 99.763.94%
RIKV 18 011599.384.20%
RIKV 18 0215 99.024.26%
RIKV 18 0315 98.684.30%
RIKV 18 0416 98.294.35%
RIKV 18 051597.954.36%
RIKB 19 0226105.304.31%
RIKB 20 0205103.464.55%
RIKB 22 1026110.854.73%
RIKB 25 0612120.024.77%
RIKB 28 1115 100.764.91%
RIKB 31 0124115.014.92%
IndexedPriceYield
RIKS 21 0414105.852.00%
HFF150224104.702.28%
RIKS 30 0701115.701.84%
HFF150434114.252.02%
HFF150644122.951.98%

CPI Change

Current Value446.70
12 Months Change*1.87%
3 Months Change*3.48%
Last Month Change0.47%
Daily CPI446.70

* Annualized rates