Matilda Bond

Written By
Paul Tracy
Updated November 4, 2020

What is a Matilda Bond?

Also known as a kangaroo bond, a Matilda bond is a bond issue in the Australian market by a non-Australian company.
 

How Does a Matilda Bond Work?

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 bonds to build a factory. Because Company XYZ feels there will be considerable demand from Australian investors, it lists the bonds on the Australian market. These are Matilda bonds.

Why Does a Matilda Bond Matter?

Matilda bonds may be issued by foreign parties, but they are subject to the securities regulations of Australia. Companies might issue kangaroo bonds to tap into interest in foreign markets, as was the case in our example, but they also might issue Matilda bonds to diversify their currency exposure (the bonds are denominated in Australian dollars).

Activate your free account to unlock our most valuable savings and money-making tips
  • 100% FREE
  • Exclusive money-making tips before we post them to the live site
  • Weekly insights and analysis from our financial experts
  • Free Report - 25 Ways to Save Hundreds on Your Monthly Expenses
  • Free Report - Eliminate Credit Card Debt with these 10 Simple Tricks
Ask an Expert
All of our content is verified for accuracy by Paul Tracy and our team of certified financial experts. We pride ourselves on quality, research, and transparency, and we value your feedback. Below you'll find answers to some of the most common reader questions about Matilda Bond.
Be the first to ask a question

If you have a question about Matilda Bond, then please ask Paul.

Ask a question

Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 3 million monthly readers.

If you have a question about Matilda Bond, then please ask Paul.

Ask a question Read more from Paul
Paul Tracy - profile
Ask an Expert about Matilda Bond

By submitting this form you agree with our Privacy Policy

Don't Know a Financial Term?
Search our library of 4,000+ terms