Definition

• Kangaroo bonds are issued by in the Australian market by non-Australian firms in the Australian currency.
  
  

Considerations

• Also known as the "matilda bond," these bonds are subject only to Australian investing laws and regulations.
  
  

Function

• Kangaroo bonds, and other bonds issued for similar purposes, are used to provide issuers with access to another capital market outside of their own.
  
  

Features

• Kangaroo bonds are also used by firms and corporations to diversify their investment holdings, giving them more international capital and opportunities.
  
  

Significance

• Investors looking to improve their overall currency exposures are able to use these kangaroo bonds to raise funds in Australian dollars, instead of other currencies.
  
  

Identification

• Around the world, the major issuers of kangaroo bonds have been large economies, like the United States and Germany.
  
  

Fun Fact

• Bonds with similar uses and purposes include samurai bonds and bulldog bonds, and are likewise prominent throughout Asia and other international markets.