DEFINITION of 'Matilda Bond'

A bond denominated in the Australian dollar and issued on the Australian market by a foreign entity that seeks to raise capital from Australian investors. A Matilda Bond may attract demand from Australian investors who wish to diversify their security holdings without the attendant currency risk.


Better known as a "kangaroo bond."

BREAKING DOWN 'Matilda Bond'

Demand for Matilda bonds has risen substantially in recent years as corporate treasurers look to diversify their exposure. The strong Aussie dollar has also fueled demand for Matilda bonds from cash-rich investors in Asia, since most investors prefer to invest in assets denominated in strengthening currencies in order to boost returns.

RELATED TERMS
  1. Kangaroo Bond

    A type of foreign bond that is issued in the Australian market ...
  2. AUD (Australian Dollar)

    The currency abbreviation for the Australian dollar (AUD), the ...
  3. Foreign Bond

    A bond that is issued in a domestic market by a foreign entity, ...
  4. Australian Future Fund

    A sovereign wealth fund established by the government of Australia. ...
  5. Maple Bond

    A bond denominated in Canadian dollars that is sold in Canada ...
  6. Aussie

    Slang term that is used to refer to the Australian dollar.
Related Articles
  1. Investing

    3 Best Dividend-Paying Australian Equity Mutual Funds

    Discover analyses of the top dividend-paying Australian equity mutual funds, and learn about the characteristics and historical performances of the funds.
  2. Investing

    3 Australian Mutual Funds to Avoid

    Learn about several catalysts that may have a negative effect on the Australian economy. Discover three mutual funds to avoid in 2016.
  3. Investing

    ABSIX,ANAYX,FINUX: High-Yielding Australia Bond Mutual Funds

    Discover Australian bonds and learn about a variety of high-yielding mutual funds that gives investors access to this asset class.
  4. Investing

    3 Best High-Yielding Australia Bond ETFs (AUNZ, BOND.AX)

    Discover detailed analyses of the top three high-yielding Australian bond ETFs, and learn about their yields, duration and characteristics.
  5. Investing

    The Top 3 ETFs For Investing in Australia

    Learn about some of the best performing exchange-traded funds that investors use to obtain exposure to stock investments in Australia.
  6. Insights

    Is It Time to Invest in Australia?

    Australia a country rich in natural resources and one increasingly gaining attention from investors. Is it time to put some of your international allocation to work in Australia?
  7. Trading

    The Australian Dollar: What Every Forex Trader Needs To Know

    With its unique relationship to the Japanese yen, the AUD is an important currency for FX traders.
  8. Investing

    Will Australia Do Away With Its $100 Bill?

    UBS analysts suggest that Australia should get rid of its highest denomination bill.
  9. Investing

    3 Best Dividend-Paying Australia Equity ETFs (EWA, QAUS)

    Take a look at three ETFs in the category of Australian equities that offer the highest dividend yields available for ETFs focused on the Australian market.
  10. Investing

    Spice Up Your Portfolio With International Bonds

    Going global can add flavor and diversity to an otherwise bland basket of bonds.
RELATED FAQS
  1. Why are simple-interest loans preferred by payday loan companies and pawn shops?

    Learn how you can invest in the corporate bond market without investing a large amount of capital through bond funds and ... Read Answer >>
  2. What forms of debt security are available for the average investor?

    Discover the various different types of debt securities, issued by government entities or corporations, that are available ... Read Answer >>
  3. What determines the price of a bond in the open market?

    Learn more about some of the factors that influence the valuation of bonds on the open market, and why bond prices and yields ... Read Answer >>
Hot Definitions
  1. Book Value

    1. The value at which an asset is carried on a balance sheet. To calculate, take the cost of an asset minus the accumulated ...
  2. Dividend Yield

    A financial ratio that shows how much a company pays out in dividends each year relative to its share price.
  3. Fixed-Income Security

    An investment that provides a return in the form of fixed periodic payments and the eventual return of principal at maturity. ...
  4. Free Cash Flow - FCF

    A measure of financial performance calculated as operating cash flow minus capital expenditures. Free cash flow (FCF) represents ...
  5. Leverage Ratio

    Any ratio used to calculate the financial leverage of a company to get an idea of the company's methods of financing or to ...
  6. Two And Twenty

    A type of compensation structure that hedge fund managers typically employ in which part of compensation is performance based. ...
Trading Center