Definition of Tranche:
Securities: Class of the US debt securities issued as part of a bond instrument, each part (tranche) characterized by a unique set of features such as maturity, interest (coupon) rate, interest payment date, to suit the needs of different investors. A single bond, such as collateralized mortgage obligation (CMO) may be issued with several tranches, each with its own priority of principal repayment and own CUSIP number. A typical CMO, for example, has four tranches: A (fast pay), B (medium pay), C (slow pay), and Z (no coupon but receives cash flow from the collateral remaining after the previous three tranches have bee satisfied). As one trance matures the next consecutive tranche takes its place.
General: Specific part of a larger transaction such a loan installment; French for, slice.
A portion of something, especially money.
Synonyms of Tranche
Piece, Part, Bit, Section, Chunk, Division, Portion, Slice, Fragment, Component, Wedge, Lump, Slab, Hunk, Parcel, Tranche
How to use Tranche in a sentence?
- They released the first tranche of the loan.
- We focused on a specific tranche of the deal and wanted to see if the overall trade would benefit us in the long run.
- When investing in bonds you want it comprised of tranche s with CMOs (Collateralized Mortgage Obligations,) that are actively paying a return on investment to reduce risk.
- The tranche element of the investment equation we were analyzing was deserving of more time and attention to understand its best use.
Meaning of Tranche & Tranche Definition