Tranches are segments created from a pool of securities—usually debt instruments such as bonds or mortgages—that are divvied up by risk, time to maturity, or other characteristics in order to be marketable to different investors. ... Tranche is a French word meaning slice or portion.
What does Tranche mean in legal terms?
Legal Definition of tranche
: a division or portion of a pool or whole: as. a : an issue of bonds derived from a pooling of like obligations that is differentiated from other issues especially by maturity or rate of return. b : a bond series issued for sale in a foreign country.
How do you use the word Tranche?
Tranche in a Sentence ?
- Becky was able to withdraw a tranche of her retirement funds from and used the money to pay off debt.
- A tranche of the Wallstreet stocks was transferred from one stockholder to the other.
