Companion Tranche

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Definition: Companion Tranche

Companion Tranche
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Full Definition of Companion Tranche

Supports the main tranche in certain collateralized mortgage obligations (CMOs). The main tranche takes priority for principal and interest payments, while the companion tranche assumes the risk of variable prepayment rates. The companion tranche stabilizes the main tranche, and in return offers the potential of a higher yield. Also called support tranche.

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https://payrollheaven.com/define/companion-tranche/
Modern Language Association (MLA):
Companion Tranche. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
April 19, 2024 https://payrollheaven.com/define/companion-tranche/.
Chicago Manual of Style (CMS):
Companion Tranche. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/companion-tranche/ (accessed: April 19, 2024).
American Psychological Association (APA):
Companion Tranche. PayrollHeaven.com. Retrieved April 19, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/companion-tranche/

Definition Sources

Definitions for Companion Tranche are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.