Fixed Income

The two largest issuers of fixed income securities listed on the NASDAQ 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 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, ARIO, MPBA 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 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).



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 the NASDAQ Iceland Exchange for bonds?

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



Yield Curve

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Non-IndexedPriceYield
RIKV 17 071799.344.57%
RIKV 17 081598.964.67%
RIKV 17 111597.764.71%
RIKB 19 0226106.564.75%
RIKB 20 0205103.504.82%
RIKB 22 1026111.654.75%
RIKB 25 0612121.304.75%
RIKB 28 1115 102.164.75%
RIKB 31 0124117.314.75%
IndexedPriceYield
RIKS 21 0414104.252.63%
HFF150224102.952.89%
RIKS 30 0701111.002.27%
HFF150434111.702.35%
HFF150644118.502.31%

CPI Change

Current Value442.10
12 Months Change*1.94%
3 Months Change*5.23%
Last Month Change0.50%
Daily CPI442.10

* Annualized rates