tranche (transh), n. [French “slice”] Securities. 1. A bond issue derived from a pooling of similar debt obligations. • A tranche usu. differs from other issues by maturity date or rate of return. 2. A block of bonds designated for sale in a foreign country. — Also spelled tranch; trench. See COLLATERALIZED MORTGAGE OBLIGATION.
collateralized mortgage obligation. Securities. A bond secured by a group of mortgage obligations or pass-through securities and paid according to the payment schedule of its class (or tranche). • CMOs are issued by the Federal Home Loan Mortgage Corporation, and benefit from predictable payments of interest and principal. — Abbr. CMO. See pass-through security under
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