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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...

First-Loss Tranche

A tranche that comes with the lowest priority amongst the entire set of tranches constituting a securitized structure (CMBS structure,...

Size of First Loss

An alternative term for attachment point; the lower tranche boundary that specifies, in addition to the upper tranche boundary (detachment...

Bespoke CDO Tranche

A tranche of a collateralized debt obligation (CDO) for which terms and features can be customized. The CDO can also...

Sum-of-the-Parts Value

The market value of the components (lines of business, divisions, units, etc.) of a firm, assumed to be sold off...

Gone Concern Value

The market value of the components (lines of business, divisions, units, etc.) of a firm, assumed to be sold off...

Static Synthetic CDO

A synthetic collateralized debt obligation (synthetic CDO) that has a fixed (static) reference portfolio until maturity. Once a sponsor constructs...

Call Feature

The right of the issuer of a convertible to redeem it before maturity at a prespecified price. The call price...