​​Tranche

One of several related securities issued in a Securitization transaction. Tranches in the same transaction may have different maturity, subordination and interest rate characteristics, and may represent a different slice of the transaction's risk. Transaction documentation may define the tranches as different "classes" of securities, each identified by a letter (e.g. the Class A, Class B, or Class C securities) and each tranche may have a different credit rating.