Nasdaq OMX Iceland has for the first time listed a fixed income exchange-traded fund issued by the Icelandic fund management company Landsbref.
The new bond ETF, Landsbref – LREAL, tracks the Nasdaq OMX Iceland Inflation-linked Benchmark Bonds index (NOMXIREAL).
NOMXIREAL consists of inflation-linked benchmark bonds, which are the most liquid inflation-linked treasury and housing financing fund bonds. The inflation-linked bond market is an important asset class in Iceland. The total market capitalisation of the NOMXIREAL constituents is between ISK1,000bn and ISK1,100bn, which is between two and three times the market capitalisation of nominal benchmark bonds. LREAL now makes it possible to buy and sell this important asset class in a single transaction.
“Nasdaq OMX Iceland has traditionally had a very strong bond market, so it is with great pleasure that we now welcome the first ever fixed income ETF on our market,” says Magnus Hardarson, vice-president Nasdaq OMX Iceland. “I must also congratulate Landsbref for being the first issuer of this product, which undoubtedly strengthens the foundation of the Icelandic ETF segment.”
“Landsbref has aimed at a leading role in exchange traded funds on the Icelandic market,” says Sigthor Jonsson, chief executive of Landsbref. “The new bond ETF we are now issuing supports our work in this direction, and earlier this fall we issued a new equity ETF. We expect to list further fixed income ETFs in the coming months and thereby further strengthen investor opportunities on the Icelandic fixed income market.”
Landsbankinn will act as a market maker to provide liquidity.
