Tranche


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Tranche

One of several related securities offered at the same time. Tranches from the same offering usually have different risk, reward, and/or maturity characteristics.

Tranche

A part of an issue. A tranche sometimes refers to a single issue of a security released at different times. For example, a company may announce that is intends to issue $10,000,000 in bonds in two tranches of $5,000,000. Tranches are important to collateralized mortgage obligations, which are backed by pools of mortgages. These mortgages are arranged in tranches that mature at different times, for instance in 10 years, 15 years, and 30 years.

tranche

A class of bonds. Collateralized mortgage obligations are structured with several tranches of bonds that have various maturities.

Tranche.

Certain securities, such as collateralized mortgage obligations (CMOs), are made up of a number of classes, called tranches, that differ from each other because they pay different interest rates, mature on different dates, carry different levels of risk, or differ in some other way.

When the security is offered for sale, each of these tranches is sold separately.

Similarly, a large certificate of deposit (CD) may be subdivided into smaller certificates for sale to individual investors. Each smaller certificate, or tranche, matures on the same date and pays the same rate of interest, but is worth a fraction of the total amount.

tranche

A class of securities. Collateralized mortgage backed securities are usually divided into tranches according to seniority and risk.

References in periodicals archive ?
Due to the high interest from institutional investors the order book for both tranches exceeded in aggregate EUR 4 bn.
Profit payments on the Tranche A Sukuk are covered by lease payments from TM while the principal redemption will be met via proceeds from either refinancing, repurchase by TM or the disposal of the Properties in the open market.
Third Tranche Units consisting of $100,000 principal amount of Third Tranche Eligible Note and Third Tranche Eligible Warrants to purchase 21,368 shares of common stock of the Company, or a pro-rata portion thereof.
The three properties sold in tranche II were 6800 and 6900 Jericho Turnpike, a 207,583 s/f and a 100,989 s/f building, respectively, located on Long Island, and 710 Bridgeport Avenue, a 452,414 s/f building, located in Fairfield County, Connecticut.
PAC tranches use a mechanism similar to a "sinking fund" to establish a fixed principal payment schedule that directs cash-flow irregularities caused by faster- or slower-than-expected prepayments away from the PAC tranche and toward another "companion" or "support" tranche (see below).
Previously the Bank delayed the authorization of the fourth tranche of the MFF of 2007 by the Board of Directors from 22 June 2012 for 22 June 2013.
The transaction has been structured to be completed in three tranches.
Therefore, Fitch expects to see negative rating pressure as well as principal impairments on exposed tranches rated 'CCC' and below.
Previously the Bank delayed authorization of the fourth tranche of MFF of 2007 by the Board of Directors from 22 June 2012 for 22 June 2013.
Based on information provided by Mellon Investor Services, LLC, the depositary for the offer, 155,502 Tranche B Warrants, representing 25.
Tranche A's note rate is LIBOR + 500 basis points, with a LIBOR floor of 1.
and RBS Greenwich Capital acting as the co-managers for the Class A tranche and Credit Suisse acting as co-manager on the Class B tranche.