What is tranche?
A class of bonds in a CMBS (or other securitization) with a distinct payment priority, credit rating, yield, and loss exposure. Senior tranches are paid first; junior tranches absorb losses first.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.