Equity Tranche Financial Glossary

What is it? One name for the lowest quality (highest credit risk) tranche in a CDO structure. Sometimes called junior subordinated notes, preferred stock or income notes. The contractual rules for the cash flow distributions in a CDO structure enable the senior tranches to receive high credit ratings by shifting risk to the equity tranche.

Finance Term Definition Added By: Dominic

The Equity Tranche definition has been viewed 4567 Time(s)!

Send To Friends!

If you'd like to send the Equity Tranche definition to yourself or to your friends/colleagues, just enter the e-mail addresses in the boxes below -

We hope you now understand the meaning of Equity Tranche. If you need any more information on this term, please don't hesitate to contact us.

Other Similar Finance Terms:

Financial Term Trust is A legal arrangement whereby assets are held by one or more appointed persons (trustees) for the benefit of others (beneficiaries).

Financial Term Total Disability is The inability to do your job or manage aspects of your normal day-to-day life.

Financial Term Home Warranty is Offers limited protection for mechanical systems and attached appliances against unexpected repairs not covered by homeowners insurance. Coverage extends over a specific time period and does not cover the homes structure.

Financial Term Conveyancing is The legal work, usually carried out by a solicitor, associated with buying or selling a property.

Financial Term Federal Home Loan Bank is A Federally chartered, privately owned company charged with regulating the S&L industry.