Kangaroo bonds or Matilda bonds are Australian dollar-denominated bonds issued by non-Australian issuers after complying with local laws and regulations. They represent the largest share of the Australian domestic bond market after Australian Government Securities (AGS) and semi-government securities (semis) (Bergmann & Nitschke, 2018). The bond issuers are major banks and financial institutions of high credit quality who participate in the Australian foreign exchange and derivative markets. The experience of these firms in the Australian bond market also helps other countries develop their domestic bond markets (Batten, Hogan & Szilagyi, 2008). A company normally enters a foreign market to gain access to better interest rates. Kangaroo bonds are normally issued when interest rates in Australia are low relative to the domestic rate of the foreign corporation. This will help to lower the interest expense and cost of borrowing for the issuer. These bonds, which are denominated in the local currency, form an attractive investment opportunity for

investors who wish to diversify their portfolios past their local borders. In effect, they offer opportunities to invest in foreign companies without having to manage the effects of currency exchange fluctuations ('Kangaroo Bond', 2018). The Kangaroo bond market is undergoing a transformation with the advent of bond-i by Commonwealth Bank of Australia. CBA has taken steps to develop the world's first blockchain bond with the support of Northern Trust, QBE and Treasury Corporation of Victoria. Once launched, the bond will operate on the blockchain platform maintained by World Bank and CBA in Washington and Sydney (Rivera, 2018). Given the potential of this technology to simplify processes for raising capital, improve operational efficiency and enhance regulatory oversight, this initiative is predicted to be a positive development for bond markets.