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Traunch
In structured finance, a tranche is one of a number of related securities offered as part of the same transaction. The word tranche is French for slice, section, series, or portion, and is cognate to English trench (‘ditch’). In the financial sense of the word, each bond is a different slice of the deal’s risk. Transaction documentation (see indenture) usually defines the tranches as different “classes” of notes, each identified by letter (e.g., the Class A, Class B, Class C securities) with different bond credit ratings (ratings).
The term tranche is used in fields of finance other than structured finance (such as in straight lending, where multi-tranche loans are commonplace), but the term’s use in structured finance may be singled out as particularly important. Use of “tranche” as a verb is limited almost exclusively to this field.
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Tranche
In structured finance, a tranche is one of a number of related securities offered as part of the same transaction. The word tranche is French for slice, section, series, or portion, and is cognate to English trench (‘ditch’). In the financial sense of the word, each bond is a different slice of the deal’s risk. Transaction documentation (see indenture) usually defines the tranches as different “classes” of notes, each identified by letter (e.g., the Class A, Class B, Class C securities) with different bond credit ratings (ratings).
The term tranche is used in fields of finance other than structured finance (such as in straight lending, where multi-tranche loans are commonplace), but the term’s use in structured finance may be singled out as particularly important. Use of “tranche” as a verb is limited almost exclusively to this field.
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Traunch (noun)
One of a series of allotments (of funds for a certain purpose).
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Traunch (noun)
One set or portion of a series.
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Traunch (verb)
To divide into parts or portions of a series (especially of allotments of funds).
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Traunch (adjective)
Divided into portions or parts of a series (especially of allotments of funds).
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Tranche (noun)
A slice, section or portion.
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Tranche (noun)
A distinct subdivision of a single policyholder’s benefits, typically relating to separate premium increments.
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Tranche (noun)
A pension scheme’s or scheme member’s benefits relating to distinct accrual periods with different rules.
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Tranche (noun)
One of a set of classes or risk maturities that compose a multiple-class security, such as a CMO or REMIC; a class of bonds. Collateralized mortgage obligations are structured with several tranches of bonds that have various maturities.
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Tranche (verb)
To divide into tranches.
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Tranche (noun)
a portion of something, especially money
“they released the first tranche of the loan”