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. Australian Future Fund

    A sovereign wealth fund established by the government of Australia. ...
  4. Global Bond

    This type of bond can be traded in a domestic or European market. ...
  5. Bond

    A debt investment in which an investor loans money to an entity ...
  6. Dollar Price

    The percentage of par, or face value, at which a bond is quoted. ...
Related Articles
  1. 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.
  2. 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.
  3. 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.
  4. Investing

    How Exchange Risk Affects Foreign Bonds

    Investors include foreign bonds in their portfolios to take advantage of higher interest rates or yields, and to diversify their holdings. However, the higher return expected from investing in ...
  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

    Spice Up Your Portfolio With International Bonds

    Going global can add flavor and diversity to an otherwise bland basket of bonds.
  9. Investing

    Corporate Bond Basics: Learn to Invest

    Understand the basics of corporate bonds to increase your chances of positive returns.
  10. Investing

    Investing in Bonds: 5 Mistakes to Avoid in Today's Market

    Investors need to understand the five mistakes involving interest rate risk, credit risk, complex bonds, markups and inflation to avoid in the bond market.
RELATED FAQS
  1. 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 >>
  2. 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 >>
  3. Can Mutual Funds Only Hold Bonds?

    Find out which mutual funds include only bonds in their portfolios. Learn why some funds invest in different types of bonds ... Read Answer >>
  4. How does face value differ from the price of a bond?

    Discover how bonds are traded as investment securities and understand the various terms used in bond trading, including par ... Read Answer >>
Hot Definitions
  1. Racketeering

    A fraudulent service built to serve a problem that wouldn't otherwise exist without the influence of the enterprise offering ...
  2. Aggregate Demand

    The total amount of goods and services demanded in the economy at a given overall price level and in a given time period.
  3. Fixed Cost

    A cost that does not change with an increase or decrease in the amount of goods or services produced. Fixed costs are expenses ...
  4. Blue Chip

    A blue chip is a nationally recognized, well-established, and financially sound company.
  5. Payback Period

    The length of time required to recover the cost of an investment. The payback period of a given investment or project is ...
  6. Collateral Value

    The estimated fair market value of an asset that is being used as loan collateral. Collateral value is determined by appraisal ...
Trading Center