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 second tranche has a size of SAR 258 million, and a total tranche size of SAR 2,628 billion, matures in 2028.
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".
In a statement on Friday (June 28), the PCOO said only its efforts made the PCOO's current administration aware of the shortcomings of the previous administration in liquidating the first tranche of funds released to PCOO.
The long 10-year tranche marks the longest tenor issuance to date in the international market, underlining the international investor community's continued support for Sri Lanka and their confidence in the country's economic fundamentals and long-term growth prospects.
Furthermore, the ministry of finance succeeded in January 2018 in offering three tranches which attracted $4bn.
A total of three ratings from Australia were upgraded in the quarter and all other reviewed tranches were affirmed.
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.
RAM Ratings has reaffirmed the respective AAA, AA2, A1, A2 and AAA ratings of the Tranche A1, Tranche A2, Tranche A3, Tranche A4 Sukuk (collectively, the Tranche A Sukuk) and the Tranche B Sukuk under Menara ABS Berhad's MYR 1 billion Sukuk Ijarah Programme (2008/2023).
The disbursement schedule of the Greek economic adjustment programme foresees the payment of one 4.2 billion tranche from the European Financial Stability Facility (EFSF) in the first quarter of 2013 and another 3.2 billion tranche in the second quarter.
Barclays Plc (LSE: BARC) (NYSE: BCS), Citigroup Inc (NYSE: C), Credit Suisse Group AG (NYSE: CS) (ZHR: CSGN) (CSGN.VX), JPMorgan Chase & Co (NYSE: JPM) and Santander GBM are joint book-runners on the six bonds that are already open, while Barclays, Macquarie Bank (NYSE: MQG) and National Australia Bank (AX: NAB) (OTC: NABZY) are running the Australian dollar tranche, and Barclays and Santander are managing the dual US dollar and sterling deal.
The deal consists of a CHF370m 1.125% tranche due 2 September 2016, CHF180m 1.375% tranche due 2 September 2021 and CHF395m 1.625% tranche due 2 September 2024.