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A business term for a part-transfer of a large sum of money or shares, when it is transferred in slices. (Tranche is the French for 'slice'.) This is often the case with major funding arrangements or issues where the sums involved are too large for the organizations or markets to be able to handle them in one go.

In tranche funding, a company is supplied with funding in pre-arranged instalments, subject to review of its progress in using previous tranches.

When the International Monetary Fund grant a loan, the first 25% is referred to as the reserve tranche (formerly known as the gold tranche).

Sometimes deprecated as a jargon term when used too freely just to mean 'slice' or 'portion' or 'instalment', but it has its place in technical language.

In structured finance, tranches are slices of a securitized product designed to appeal to different types of investors by offering varying financial terms, risk profiles, investment returns, and maturity dates. Each tranche may contain dozens, hundreds, or even thousands of underlying securities, debt obligations, or partial claims on securities and obligations. Tranches are often divided into "senior," "mezzanine," and "junior" tranches, offering varying risk profiles and differing claims on the underlying obligations.

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