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Tranche Notional Amount

The coverage limit that constitutes the pre-specified maximum level a protection buyer (in a credit-linked instrument/ arrangement such as a...

Tranche ONA

It stands for tranche outstanding notional amount; with respect to a tranche, it is the original tranche size reduced by...

Tranche Outstanding Notional Amount

With respect to a tranche, it is the original tranche size reduced by the credit losses (to the reference portfolio)...

Tranche Size

The coverage limit that constitutes the pre-specified maximum level a protection buyer (in a credit-linked instrument/ arrangement such as a...

Tranche Notional

The coverage limit that constitutes the pre-specified maximum level a protection buyer (in a credit-linked instrument/ arrangement such as a...

Tranchelet

A portion of a tranche that constitutes a non-standard CDO tranche (or other types of tranches) with smaller loss intervals...

Tranche Option

An option on a tranche. It gives the holder the right, but without the obligation, to buy or sell an...

Tax-Exempt Bond

A bond (specifically a municipal bond) whose holder is exempted from paying taxes on its interest income. This bond is…

Tax-Free Bond

A bond that is fully exempted from taxation on its interest payment. The interest income on this bond, generally issued…

Tapering

An action whereby the U.S. Federal Reserve (the Fed) cuts back- or taper- its bond purchases. Usually, the Fed buys…