tranche

Meanings

1. A slice, section or portion.
2. A distinct subdivision of a single policyholder's benefits, typically relating to separate premium increments.
3. A pension scheme's or scheme member's benefits relating to distinct accrual periods with different rules.
4. 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.

1. 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.