What it is:
Also known as a Matilda bond in the Australian by a non-Australian company., a kangaroo bond is a
How it works (Example):
Let's say Company XYZ is headquartered in San Diego. It specializes in research and products designed to preserve the Great Barrier Reef. It wants to open a center in Sydney, so it sells $10 million in to build a factory. Because Company XYZ feels that there be considerable demand from Australian investors, it lists the bonds on the Australian markets. These bonds are kangaroo bonds.
Why it Matters:
Kangaroo bonds may be issued by foreign parties, but they are subject to the securities regulations of Australia. Companies might issue kangaroo bonds to diversify their exposure (the are denominated in Australian dollars).kangaroo bonds to tap into interest in foreign markets, as was the case in our example, but they also might