Fixed Income

The two largest issuers of fixed income securities listed on the NASDAQ OMX Iceland are the Icelandic Government (through the Central Bank of Iceland - Government Debt Management) and the state-owned Housing Financing Fund (HFF). The Nominal Treasury Bonds are benchmarks for non-indexed bonds, while HFF bonds serve as indexed benchmarks.
 
A feature of the market is the listing of bonds and bills on NASDAQ OMX Iceland. As listed instruments, they benefit from a well established order-driven trading structure and safeguards. Trades can be executed both on and off-exchange. All trades must be reported to the Stock Exchange within short time limits. 

The Government and the Housing Financing Fund have both signed agreements with Primary Dealers regarding market making  arrangement in benchmark series. The agreements have proven to be effective for the market, leading to increased turnover and liquidity for the benchmark series.

Icelandic Treasury securities can be purchased from Primary Dealers. They also provide custody services including regular statements of holdings and portfolio movements, and the monitoring of domestic and foreign securities i.e. dividends, bonus shares, mergers, interest payments and redemptions etc.

International settlement is now also an option, as Icelandic Treasury Securities have been eligible in Clearstream Banking since April 2004 and the HFF issues from the Housing Finance Fund are issued at Euroclear.

Related FAQ


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, KAUP, 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.


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.


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.


Where are Icelandic bonds traded?
Icelandic bonds are traded on NASDAQ OMX Nordic Exchange Iceland. (Members of OMX 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).


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


What is the settlement rule in NASDAQ OMX Nordic Exchange Iceland for bonds?
Settlement takes place the next business day after trading or T+1.


Yield Curve

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Non-IndexedPriceYield
RIKV 13 0618 99.426.51%
RIKV 13 071598.986.32%
RIKV 13 081598.456.30%
RIKV 13 0916 97.906.33%
RIKV 13 101597.406.36%
RIKV 13 1115 97.006.12%
RIKB 14 0314 100.623.95%
RIKB 15 0408100.854.02%
RIKB 16 1013105.084.36%
RIKB 19 0226117.165.23%
RIKB 22 1026107.216.21%
RIKB 25 0612114.306.27%
RIKB 31 012499.006.59%
IndexedPriceYield
RIKS 21 0414111.352.22%
HFF150224107.452.37%
HFF150434111.802.58%
HFF150644114.002.76%

CPI Change

Current Value410.70
12 Months Change*3.95%
3 Months Change*8.73%
Last Month Change0.20%
Daily CPI411.16

* Annualized rates

Exchange rate

ISK10001000
EUR158.2158.6
USD123.38123.69
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