Kiwi Bond

DEFINITION of 'Kiwi Bond'

Retail stock offered directly to the public and available only to New Zealand residents. Application forms and investment statements are available from the new Zealand Debt Management Office (NZDMO) Registry, as well as some registered banks, NZX firms, NZX brokers, chartered accountant, solicitors, investment advisors and investment brokers.

BREAKING DOWN 'Kiwi Bond'

New Zealanders are often referred to as Kiwis. Kiwi bonds are denominated in new Zealand dollars, with a fixed interest rate that is paid quarterly in arrears. Kiwi bonds are redeemable on maturity or at the option of the bondholder and are issued in six-month, one-year and two-year maturities. The minimum investment is $1,000 New Zealand dollars, with a maximum investment of $500,000 on any single issue. Interest rates for Kiwi bonds are set periodically by the New Zealand Debt Management Office (NZDMO) based on moving averages of domestic wholesale rates.

RELATED TERMS
  1. Bond

    A debt investment in which an investor loans money to an entity ...
  2. Maintenance Bond

    A type of surety bond purchased by a contractor that protects ...
  3. NZD (New Zealand Dollar)

    The currency abbreviation or currency symbol for the New Zealand ...
  4. Reserve Bank Of New Zealand

    The Reserve Bank of New Zealand is New Zealand's central bank ...
  5. International Bond

    Debt investments that are issued in a country by a non-domestic ...
  6. Global Bond

    This type of bond can be traded in a domestic or European market. ...
Related Articles
  1. Stock Analysis

    6 Risks International Stocks Face in 2016

    Learn about risk factors that can influence your investment in foreign stocks and funds, and what regions are more at-risk than others.
  2. Investing

    3 Things About International Investing and Currency

    As world monetary policy continues to diverge rocking bottom on interest rates while the Fed raises them, expect currencies to continue their bumpy ride.
  3. Investing News

    Tufts Economists: TPP Will Reduce U.S. GDP

    According to economists at Tufts University, the TPP agreement will destroy half a million jobs in the U.S. by 2025.
  4. Economics

    Governments Ask Tech Giants to Join War on ISIS

    In the US and Israel, governments have asked their respective nations' tech industries to help in the war against ISIS.
  5. Economics

    4 Ways China Influences Global Economics

    Learn the four ways China's economy can influence the global economy. The recent decline in Chinese stock markets should be the least of your worries.
  6. Economics

    Three Reasons 2016 Could Be A Better Year for the Global Economy

    The diminishing commodities market and China's slowing growth hurt a lot of companies and economies worldwide. However, there is a chance that much of the shaking out has already occurred.
  7. Fundamental Analysis

    South Korea - King of Exports

    Read about one the most important and successful exporting countries in the world, and learn more about the types of products it exports.
  8. Investing Basics

    Why You Need More International Stocks

    Most investors never stray beyond their borders. That’s a shame.
  9. Fundamental Analysis

    How Globalization Affects Developed Countries

    The increase in communications technology has companies competing in a global market.
  10. Stock Analysis

    The Biggest Risks of Investing in Altria Stock (MO)

    Learn the biggest risks to Altria Group stock through fundamental analysis. Also discover what external risks pose a threat to Altria and the tobacco industry.
RELATED FAQS
  1. How do mutual funds work in India?

    Mutual funds in India work in much the same way as mutual funds in the United States. Like their American counterparts, Indian ... Read Full Answer >>
  2. What kinds of costs are included in Free on Board (FOB) shipping?

    Free on board (FOB) shipping is a trade term published by the International Chamber of Commerce or ICC, that indicates which ... Read Full Answer >>
  3. What are the differences between B-shares and H-shares traded on Chinese stock exchanges?

    Equity listings in China generally fall under three primary categories: A shares, B shares and H shares. B shares represent ... Read Full Answer >>
  4. What are the differences between H-shares and A-shares on Chinese and Hong Kong stock ...

    Publicly trade companies in China generally fall under three share categories: A shares, B shares and H-shares. A-shares ... Read Full Answer >>
  5. What are the advantages of foreign portfolio investment?

    Foreign portfolio investment is the type of investment that an investor has abroad. There are many benefits of having a foreign ... Read Full Answer >>
  6. Why are financial markets considered to be transparent?

    Financial markets are considered transparent due to the fact it is believed all relevant information is freely available ... Read Full Answer >>
Hot Definitions
  1. Super Bowl Indicator

    An indicator based on the belief that a Super Bowl win for a team from the old AFL (AFC division) foretells a decline in ...
  2. Flight To Quality

    The action of investors moving their capital away from riskier investments to the safest possible investment vehicles. This ...
  3. Discouraged Worker

    A person who is eligible for employment and is able to work, but is currently unemployed and has not attempted to find employment ...
  4. Ponzimonium

    After Bernard Madoff's $65 billion Ponzi scheme was revealed, many new (smaller-scale) Ponzi schemers became exposed. Ponzimonium ...
  5. Quarterly Earnings Report

    A quarterly filing made by public companies to report their performance. Included in earnings reports are items such as net ...
Trading Center