Definition of Tranche:

  1. 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.

  2. General: Specific part of a larger transaction such a loan installment; French for, slice.

  3. 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?

  1. They released the first tranche of the loan.
  2. We focused on a specific tranche of the deal and wanted to see if the overall trade would benefit us in the long run.
  3. 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.
  4. 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


What is Tranche?

A class or category of securities that is included in the offerings of major securities and which generally present a different risk to investors. For example, security can be issued in two separate phases, each with its own risk characteristics. Section A can be framed in such a way that the bond issuer is not at risk, so that he can get good quality ratings from one or more rating agencies. Tranche B may be designed to withstand additional risk (for example, the investor is fully or partially at risk) and therefore not suitable for investment grade rating. A separate installment will be prepared to meet the needs of individual investors. Destructive bonds with internships (and therefore a risk profile) only attract investors whose risk profile is attractive. However, by taking several steps, the issuer can significantly increase the security focus for investors.

Describe parts of loans, investments, etc. It's part of tomorrow.

Meanings of Tranche

  1. Especially money for something.

Sentences of Tranche

  1. Issued the first installment of the loan