Tranche

/ˈtrænʃ/

Definitions

  1. (n.) A portion or slice of a financial arrangement, such as a loan or security, divided from the whole based on risk, interest, or maturity.
    The investment was divided into several tranches to appeal to different risk tolerances.

Forms

  • tranche
  • tranches

Commentary

In financial and legal contexts, 'tranche' implies segmentation for allocation of rights or obligations, often requiring precise drafting to clarify each tranche's terms and priorities.

This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.

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