tranche

noun

ˈträⁿsh 

: a division or portion of a pool or whole

specifically : an issue of bonds derived from a pooling of like obligations (such as securitized mortgage debt) that is differentiated from other issues especially by maturity or rate of return

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Finance and Tranche

In French, tranche means "slice." Cutting deeper into the word's etymology, we find the Old French word trancer, meaning "to cut." Tranche emerged in the English language in the late 19th century to describe financial appropriations. Today, it is often used specifically of an issue of bonds that is differentiated from other issues by such factors as maturity or rate of return. Another use of the French word tranche is in the French phrase une tranche de vie, meaning "a cross section of life." That phrase was coined by the dramatist Jean Jullien (1854-1919), who advocated naturalism in the theater.

Examples of tranche in a Sentence

Recent Examples on the Web

That was one of the drivers of Wenner’s sale of Wenner Media, which encompassed Rolling Stone, Us Weekly, and Men’s Journal, to Penske Media Corporation in two tranches, in 2017 and in 2020. —Fortune Editors, Fortune, 5 June 2024

Prices in the lowest tranche of the housing economy are growing at a faster rate in than any other category. —Rukmini Callimachi, New York Times, 2 June 2024

Ukraine may achieve local successes, but not a comprehensive defeat of the enemy; for their part, Kyiv’s Western partners tend to think only about the next tranche of supplies. —Andriy Zagorodnyuk, Foreign Affairs, 21 May 2024

This tranche of funds would also help support the district’s 1:1 technology policy that ensures every student in the district has a laptop. —Caroline Beck, The Indianapolis Star, 18 Apr. 2024

Word History

Etymology

French, literally, slice, from Old French, from trenchier, trancher to cut — more at trench

First Known Use

1893, in the meaning defined above

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Legal Definition

tranche

noun

ˈträⁿsh 

: 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

Etymology

French, literally, slice, from Old French, from trenchier, trancher to cut