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Tranche

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Tranches
By Kimberly Amadeo
Definition: A tranche is a way to slice into a bundle of loans so you can just invest in the portion with similar risk. For example, adjustable-rate mortgages often have different interest rates.


CD
Banking
certificate of deposit sold in series over time a certificate of deposit that is part of a set that is sold by the issuing bank over a period of time. Each of the CDs in a has the same maturity date.

tranche

A portion of a securities issue. A public offering, for instance, is normally divided into an institutional and a retail (investor) tranche.

DEBT - s in a multi-class security that have seniority ranking, for repayment, ahead of ...
DEBT-EQUITY RATIO - The ratio of a company's liabilities to its equity. Long-term debt-equity is the ra...

Tranche
Tranche It refers to a security that is offered at the same time as many other similar securities. Such securities of the same offering can have different maturity, risk and reward characteristics.

. A piece, portion or slice of a deal or structured financing. This portion is one of several related securities that are offered at the same time but have different risks, rewards and/or maturities.

Tranche:
(1) A term used to refer to IMF's borrowing facilities. The reserve tranche refers to the 25% of a member's quota paid in reserve assets.
(2) In security markets, the term indicates a part issue of securities.


A segment or tier within a loan or security. Also known as a class. For example, collateralized mortgage obligations (CMOs) are securities for which the cash flows are segregated into s and sold separately.

Tranche
When a security is issued in a series rather than all at once, each of the related series is referred to as a tranche.
Transaction ...


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

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, ...

: A separate portion of a project financing, perhaps with different lenders, margins, and terms.

Active Tranche
A Collateralized Mortgage Obligation (CMO) tranche currently making principal payments.

Active
Active basically stands for REMIC or Real Estate Mortgage Investment Conduit. The REMIC is basically a bond that is backed up by a large set of mortgages.

Credit Tranches.
The credit tranche policy is the International Monetary Fund's (IMF) basic policy on the use of its general resources. Credit is made available in four tranches, each equivalent to 25 percent of a member's quota.

s offer widely divergent risk-return profiles with different exposures to interest rate and prepayment risks. Some s receive principal only, some receive interest only.

Tranche (in banking)
Related answers:
Triple bond consists of sigma bond and pi bond whereas a double bond consists of sigma bond and pi bond? Read answer...

- Is the piece, portion or slice of a deal or structured financing. The so called "A to Z" securities of a CMO offering of a partitioned MBS portfolio. It can also refer to segments which are offered domestically and internationally.

Tranche d'imposition
Tranche de revenu assujettie à un taux d'imposition donné. Ce taux s'accroît à mesure que l'on passe à une tranche de revenu supérieur.
Unité ...


A part of a financing, from the French word meaning "slice." A single credit facility are often divided into different s with different maturity, drawdown, interest payment, repayment, credit support, etc. conditions.
Trust Account ...

Z-Tranche
A special type of bond class in a sequential pay collateralized mortgage obligation. This class of bond does not receive any interest or principal payments until all other tranches have been completely paid off.

For the CMO , the date the last payment would occur at zero CPR.
Popular terms ...

In this case, the different bonds are called tranches. If the securitization is structured as a pass-through, there is only one tranch, and all investors participate proportionately in the net cash flows from the assets.

Past sales. Often used in the valuation of companies that have negative cash flows or earnings. The company is said to be valued at some multiple of past sales - usually, the last 12 months sales.
...

Tranche
One of a combined group of related securities which offer various risk, reward and maturity alternatives....(Read more)
Transaction Fees ...

A class offered by some CMOs that has a sinking fund schedule and an ability to make principal payments that are not subordinated to other classes. Pacific Stock Exchange Used for listed equity securities.

issued in two tranches: in the first tranche repayment increases with the price of the other security, and in the
second tranche repayment decreases with the price of the other security.

Targeted Amortization Class (TAC) bondsBonds offered as a class of some CMOs, according to a sinking fund schedule.

Stated maturity For the CMO tranche, the date the last payment would occur at zero CPR.

Collateralized mortgage obligation (CMO) A security backed by a pool of pass-throughs , structured so that there are several classes of bondholders with varying maturities, called s.

Dual syndicate equity offering An international equity placement where the offering is split into two tranches - domestic and foreign - and each tranche is handled by a separate lead manager.

Collateralized debt obligations are sold in various s. Each of a collateralized debt obligation offers a different risk level and depending on the type of collateralized debt obligations, a different maturity as well.

These tranches, which are often designated as A to Z pieces or securities, are engineered from mortgage backed securities used as the underlying collateral.

UK wine merchants face an unprecedented practical problem with this year's EP campaign: Demand is higher than for any previous vintage (by multiples!) but first allocations will be considerably reduced - the châteaux are expected to release ...

mortgage-backed bond that separates mortgage pools into different maturity classes, called tranches.

In contrast, the pool of mortgages in a CMO is divided into four s, each with a different interest rate and term.

The portfolio is put together by a bank and sold in tranches according to their level of risk to investors through a special purpose vehicle (SPV). Higher risk tranches offer higher coupon payments.

Interest-only obligation (or IO obligations): A of mortgage-backed securities whose owner receives only the interest (or a portion of the interest) on the underlying mortgages.

Definition: Bonds offered as a tranche class of some CMOs, according to a sinking fund schedule. They differ from PAC bonds whose amortization is guaranteed as long as prepayments on the underlying mortgages do not exceed certain limits.

This has happened occasionally with privatisations that went wrong, like the BP of shares which was sold just after the market crashed in October 1987 or the flotations of satellite broadcaster, ...

See also: See also: Index, Transaction, Sector, Banks, Convertible Bond

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