: 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
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
Rolled out in two tranches, the first $20-million list will include apparel, alcohol and certain household products (mostly made in conservative states), and the second $90-billion wave will be announced in about three weeks, the prime minister said. Kate Nishimura, Sourcing Journal, 4 Mar. 2025 Right at the end of the report is an interesting nugget about a refinancing agreement from lenders signed in March 2024 to the tune of 95M euros, which would be paid in three tranches across 2024. Andreas Wiseman, Deadline, 4 Mar. 2025 The first tranche of funding is expected to be disbursed next week, according to the UK government. Rob Picheta, CNN, 2 Mar. 2025 Under the first tranche, SALIC will buy 44.6% of Olam Agri for $1.78 billion, bringing its shareholding to 80%. Ian Sayson, Forbes, 24 Feb. 2025 See All Example Sentences for tranche

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

Time Traveler
The first known use of tranche was in 1893

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Cite this Entry

“Tranche.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/tranche. Accessed 12 Mar. 2025.

Legal Definition

tranche

noun
: 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

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