Typically, the repayment risk on a pool of 50-100 loans is sliced into tranches, with the lowest tranche (called the equity tranche) bearing any initial losses.
They make up the third tranche of a total of 104 prisoners to be freed.
Specific tranches typically come from tranches where the VQSLOD score changes by small amounts even as the tranche percentage is decreased, and sensitive tranches are typically a non-negative VQSLOD score tranche that is more inclusive than the specific tranche.
We typically pick two tranches after VQSR, a specific tranche and a sensitive tranche, by examining the behavior of VQSLOD scores of multiple tranches.
But that may no longer be the case as the economy picks up and the first tranche of graduates bearing the weight of full tuition fees emerge into the workforce.
Intel Capital, the investment arm of the processor giant, is today announcing its latest tranche of investments, a total of nearly $60 million going in to 15 startups that are working on solving different problems in the bigger area of big data (with a full rundown below).
For instance, a BBB tranche in a CDO might pay out in full if the defaults remained below 6%, and not at all once they went above 6.5%.
It could be scallops roasted in the shell with garlic and white port, or red mullet cured with fennel and blood orange; it could be the deepest, richest and punchiest of fish stews, full of shells to be sucked at, or a prime tranche of turbot grilled over the fire and served with a frothy hollandaise.
The disclosure this week of a large tranche of Foreign Office files, hitherto kept secret about full extent of British brutality against Mau Mau in Kenya, suggests there may be further revelations still to come.
The valuation of CDO tranches and the link of CDO tranche prices to default correlation are explained.
