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

In June, the Organization of Petroleum Exporting Countries and its partners outlined a road map to gradually restore in monthly tranches 2.2 million barrels a day of output halted over the past two years. —Grant Smith, Fortune, 3 Nov. 2024

Then there’s the huge tranche of footage filled with little banalities, like the regular ritual of producers collecting participants for organized trips to the bathroom, or the small areas of the lounges that rarely appear onscreen because they’re lined with baskets of personal items. —Kathryn Vanarendonk, Vulture, 24 Oct. 2024

In a letter, the trustee confirmed that the first tranches of bitcoin had been delivered to some of the exchanges responsible for distributing coins to individual Mt. Gox customers, with the rest to follow. —Joel Khalili, WIRED, 5 July 2024

The fifth tranche of the Homeless Housing Assistance and Prevention program will distribute $827 million statewide and come with more stringent accountability and transparency measures than in the past, Newsom said. —Doug Smith, Los Angeles Times, 29 Oct. 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