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 ?
From December 9, 2025, hybrid notes of tranche 2 will bear interest according to a fixed reset interest rate to be determined according to the relevant 5-year swap rate and an additional margin of 5.
Meanwhile, the reaffirmation of the rating of the Tranche A Sukuk reflects our opinion that the adjusted valuation of the Properties (of MYR 656.
Reckson intends to use the proceeds from the tranche I closing of approximately US$128 million, net of debt assumed by the LPT, to fund a portion of the Company's recently announced acquisitions and for the repayment of outstanding indebtedness.
The CMO structure allows the issuer to meet different maturity requirements and to distribute the impact of prepayment variability among tranches in a deliberate and sometimes uneven manner.
Assuming a 30% recovery estimate on the Ambac Assurance credit event (as reported on CreditFlux), an estimated 32 CDO tranches would likely face impairment.
The tranche dimension will be $45 million as an ADB loan.
Tranche A's note rate is LIBOR + 500 basis points, with a LIBOR floor of 1.
The tranche size will reach $45 million as an ADB loan, the Bank stated.
The new V-1 through V-10 scale provides greater differentiation among tranches than the previous V-1 through V-5 scale.
Derivative Fitch has rated 100 public and private TRR CLO mezzanine tranches originally rated 'BBB+', 'BBB' or 'BBB-' since 1996.
Bank of Queensland Limited ( BOQ ) has, with APRA s approval, given notice to the holders to redeem the A$45 million second tranche of its privately placed A$150 million Lower Tier 2 Convertible Notes ( Convertible Notes ) issued in June 2010.
The leveraging of small tranches reflects the impact of one dollar of loss on an underlying mortgage loan on a particular security's yield.