tranche
/tɹɑ̃ʃ/ noun, verb
Forms tranches tranching tranched
- noun A slice, section or portion.
- noun (insurance) A distinct subdivision of a single policyholder's benefits, typically relating to separate premium increments.
- noun (pensions) A pension scheme's or scheme member's benefits relating to distinct accrual periods with different rules.
- noun (finance) One of a set of classes or risk maturities that compose a multiple-class security, such as a CMO or REMIC; a class of bonds. Collateralized mortgage obligations are structured with several tranches of bonds that have various maturities.
- verb (finance, transitive) To divide into tranches.
Etymology
Unadapted borrowing from French tranche, form of trancher (“to cut, to slice”), from Old French trenchier (“cut, make a cut”), possibly from Vulgar Latin *trinicāre (“cut in three parts”). Doublet of traunch and trench.
Sources: Wiktionary — from the Wiktionary entry “tranche”, CC BY-SA 4.0. Details