tranche

Meanings

Noun

• A slice, section or portion.
• A distinct subdivision of a single policyholder's benefits, typically relating to separate premium increments.
• A pension scheme's or scheme member's benefits relating to distinct accrual periods with different rules.
• 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

• To divide into tranches.

Origin

• Borrowed from French tranche, form of trancher, from Old French trenchier ("cut, make a cut"), possibly from Vulgar Latin *trinicāre ("cut in three parts"). Cognate to English trench.