tranche

noun
\ ˈträⁿsh How to pronounce tranche (audio) \

Definition of tranche

: 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

This year, the highest-yielding deal has come from Kenya, which sold a 30-year tranche at 8.25 percent in mid-February. Bloomberg.com, "On Sale: This Year’s Juiciest Dollar Bond, Paying Close to 10%," 2 May 2018 The top tranche has often received a sterling triple-A grade from rating firms. Cezary Podkul, WSJ, "‘I Can Be the Bank’: Individual Investors Buy Busted Mortgages," 20 Nov. 2018 This tranche is going to show again that there's anomalies. Fox News, "Kennedy: Kavanaugh is firm that allegation didn't happen," 18 Sep. 2018 The bank had sent over a tranche of cash a few months before. Max Colchester And Margot Patrick, WSJ, "Hiding Russian Money Was Easy. Quitting Was Harder.," 4 Aug. 2018 The program started four months after the first tranche of federal Department of Housing and Urban Development disaster relief grants were released. Katie Honan, WSJ, "New York City’s Sandy Rebuilding Program Was Plagued From the Start, Study Says," 11 Feb. 2019 Once a peace-and-trees party of hippie scolds, over the past 20 years the party has absorbed a new tranche of more-realistic voters and leaders. Joseph C. Sternberg, WSJ, "Germany’s Green Party Emerges as the Center-Left Opposition," 25 Oct. 2018 That has left bondholders in the double-C tranche bracing for losses. Ben Eisen, WSJ, "Investors Rev Up the Risk in Subprime Auto Deals," 1 Dec. 2018 Under a stand-by arrangement, Argentina will face regular reviews of its economic policies, and loan tranches will only be disbursed once the fund is satisfied progress is being made. Andrew Mayeda, Bloomberg.com, "Argentina Seeks ‘Stand-By’ Agreement With IMF," 10 May 2018

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'tranche.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of tranche

1893, in the meaning defined above

History and Etymology for tranche

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

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Dictionary Entries near tranche

tran

trance

trancedly

tranche

tranche de vie

tranchet

traneen

Statistics for tranche

Last Updated

15 Jun 2019

Look-up Popularity

Time Traveler for tranche

The first known use of tranche was in 1893

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More Definitions for tranche

tranche

noun
\ ˈträⁿsh How to pronounce tranche (audio) \

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

History and Etymology for tranche

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

Comments on tranche

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