Friday word: Tranche

[med_cat]

tranche, n. \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

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.

Recent Examples on the Web

"Biden announces first tranche of Russia sanctions, targets banks and debt"
--Reuters.com, 22 Feb. 2022

The green bond was a tranche in a larger $7 billion offering.
— Kristin Broughton, WSJ, 1 Nov. 2021

The Biden administration is banking on a $4 billion strategy through 2025 — including an initial tranche of $861 million
proposed this year — to help stabilize the region.

— Lara Jakes, New York Times, 13 Apr. 2021

Comments

[sallymn]

Wonderful word!

[med_cat]

Yeah, isn't it? Not come across it before