One of a set of classes or risk maturities which comprise a multiple-class security, such as a CMO or REMIC.
string Enumeration Controlled Vocabulary specifying type of portion applicable. Literally "slice".
French word for a slice. Used widely. An agreed instalment of a credit or loan which may be drawn down as required. Also refers to a country's drawings from the International Monetary Fund, which are made in tranches. Also the subsequent part, or parts, of a public debt offering by a government.
Risk maturity or other classes into which a multi-class security, such as a Collateralized Mortgage Obligation (CMO) or a Real Estate Mortgage Investment Conduits (REMIC) is split.
A level or class of investment interest in a CMO or REMIC differentiated by maturity, interest rate and/or accrual structure.
Classes within the CMO structure that have different principal and interest cash flow priorities. Each CMO will consist of one or more tranches, each with a distinct coupon, maturity and other features.
An individual bond in a CMO structure. See " CMO".
Is the piece, portion or slice of a deal or structured financing. The so called "A to Z" securities of a CMO offering of a partitioned MBS portfolio. It can also refer to segments which are offered domestically and internationally. Tranches have distinctive features which for economic or legal purposes must be financially engineered or structured in order to conform to prevailing requirements.
One of the classes, portions or segments of a bond or mortgage-backed security, such as a collateralized mortgage obligation (cmo). Each tranche normally offers different terms, usually involving the length of time it takes for principal to be repaid to investors. With this type of security, all payments of principal from the underlying mortgages are diverted initially to the first tranche. When all principal has been repaid in the first tranche, payments of principal begin to the second tranche and, after the second tranche is retired, the payments continue in turn to the rest of the tranches, like a series of steps, until investors in the last tranche have been repaid. By selecting a particular tranche, investors choose whether they want their funds repaid quickly or whether they want to lock in their investment for a longer period of time. In another meaning, tranche also refers to a portion of a bond that is distributed in another geographic area, such as a foreign country.... read full article
A class of securities. CMBS offerings are generally divided into rated and unrated classes, or tranches, according to seniority and risk. Higher-rated tranches allow for internal credit enhancements; lower-rated classes offer higher yields. [Go to source
one of several related securities which comprise a multiple class security and offered at the same time with different risk, reward or maturity
French word for “slice”; a class of investment interest in a CMO.
A French word used to describe segments of the IPO being sold in different countries. A multi-tranche distribution is commonly used for large U.S. and foreign IPOs where there is demand both in the U.S. and in their home country.
A class of bonds in a CMO offering which shares the same characteristics. "Tranche" is the French word for "slice."
Term to describe a specific class of bonds within an offering, usually each tranche offers varying degrees of risk to the investor
Funds flowing from investors to a company tat represent a partial round or an "early close." Subsequent funds of the single round are generally under the same terms and conditions as the first tranche (or early close), however, those funding the early tranches may receive bonus warrant coverage, in consideration of the additional risk. (a French word meaning a slice or cutting)
Refers to the name for the different classes in which Collateralized Mortgage Obligations (CMOs) are split.
One of several related securities offered at the same time. Tranches from the same offering usually have different risk, reward, and/or maturity characteristics.
A portion of a bond offering, delineated by maturity.
A term applied to describe classes of CMBS securities, i.e., "AAA" Tranche".
A part of a single market operation which may have shared documentation, but different terms; e.g., a $200 million issue, one tranche of $100 million having a maturity of 5 years and the second tranche of $100 million having a 10 year maturity. Generally used for CMOs and ABS. French word for "slice."
In structured finance the word tranche (sometimes traunche) refers to one of several related securitized bonds offered as part of the same deal. The word tranche is French for slice; in the financial sense of the word, each bond (¿tranche?) is a slice of the deal's risk. The legal documents (see indenture) usually refer to the tranches as "classes" of notes identified by letter (e.g. the Class A, Class B, Class C securities).