Kangaroo Bond

If we ride around in the pouch of a kangaroo for more than a few hours, we’re likely to form a pretty strong bond with that kangaroo. That has nothing to do with kangaroo bonds...it was just, um...something we were thinking about and wanted to share.

Anyway, “kangaroo bonds” are basically foreign-issue bonds that are available through the Australian market and denominated in Australian currency. (Fun fact: they’re also called “matildas,” like in everyone’s favorite childhood song, “Waltzing Matilda.”)

So, for example, if a company in Myanmar really needs capital but knows it can’t get what it needs from its own domestic market, it might issue kangaroo bonds in the Australian market. This way, it can attract Australian investment money, and potentially pay lower interest rates than it would at home. These bonds are regulated by Australian securities laws, which also might make them more appealing to investors than if they were only offered through Myanmar’s stock market, which is maybe not quite as robust as markets found elsewhere.