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 ?
As a result of this change, the B and NR traunches will be carried as available for sale and the BB and above rated bonds will be carried as trading securities.
Following the first traunche of both the Sale Agreement and the EVS Investment Agreement, Alon will hold approximately 34% of EVS' issued and outstanding share capital, and Elbit will hold approximately 26%, of EVS' issued and outstanding share capital.
Traunche B will be for a 55% interest and the price will total US$ 55
the nation's fastest growing reseller of previously-owned capital medical equipment (CME) to the healthcare practitioner industry today announced its successful completion of a three million dollar first traunche of a private placement equity financing.
OTC: DMXP) has received and banked the first traunche of proceeds resulting from its financing agreement.
During the quarter the company closed on the final traunche of a $70 million variable rate mortgage.
With the first traunche of switches now being deployed, it is expected that DCI's London switch will be up and operating by early June 1999.
White also outlined significant developments, including the filing of new patents for the Company's unique technology, and the recent closing of a second financing traunche of approximately $3 million, which followed an earlier traunche also totaling approximately $3 million.
In consideration of the first traunche, Viragen will issue a series of 8% Redeemable Convertible Notes to the investors.
The first traunche of funding for $650,000 has been completed in the form of a secured convertible debenture with a fixed conversion price.