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 ?
The First Tranche consisted of 2,040,000 units (each, a 'Unit') of the Company at a price of $0.25 per Unit for gross proceeds of $510,000.
- The Third tranche has a size of SAR 588 million, and a total tranche size of SAR 9,109 billion, matures in 2034.
The first tranche is to be paid Friday to shareholders on the register at at June 28 and the balance will be paid as a second tranche "on a date to be determined by the board following release of the company's half-yearly results".
The PCOO said it had already submitted in the first quarter of 2019 the liquidation reports on the first tranche of the funds.
40% (+/- 5bps) on the 5-year tranche, and 7.60% (+/- 5 bps) on the long 10-year tranche.
Only $21,000 was confirmed as liquidation for the third tranche. Remolacio said documents are now being completed to comply with the outstanding liquidation requirements.
The first tranche of these bonds is worth $1.750bn and had an interest rate of 6.125%, due on 31 January 2022; the second tranche is worth $1bn with an interest rate of 7.5bn and is due on 31 January 2027, while the third tranche was worth $1.25bn with an interest rate of 8.5% to be repaid on 31 January 2047.
However, in February 2017, President Duterte approved P2,000 increase in the SSS pension, with the initial P1,000 increase effective retroactively in January 2017, but, the second tranche or the additional P1,000 to be implemented in year 2022 or earlier.
The company said the repricing resulted in a 100 basis point reduction in the interest rate for the new USD B-5 term loan tranche and a 125 basis point reduction in the interest rate for the new EUR C-4 term loan tranche.
The Tranche one Sukuk's rating reflects a 4-notch uplift from MBSB's long-term A2 financial institution rating (FIR).
" Second tranche of Gold Bond Scheme: About 3.16 lakh applications for 2,790 kgs gold involving subscription of Rs 726 crore received,'' Economic Affairs Secretary Shaktikanta Das tweeted.