# Tranche thickness (thickness of tranche)

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- Post ID: 592913
- Modified: 2023-07-25T21:13:50+00:00
- Language: en

## Definition

Particularly in relation to the securitization structure, the proportion of an individual tranche in relation to the pool as a whole, usually expressed in monetary units. - A pool of receivables put together for securitization can be broken down into individual tranches on a percentage basis (proportionally). Even with the widely used three-part division of tranches in a securitization - first loss tranche, mezzanine tranche, senior tranche - it is entirely at the discretion of the special purpose vehicle to which quota (share, percentage) of the pool it allocates the individual tranches. - Even in respected textbooks, it is assumed that the tranches in a securitization are always proportionally equal, i.e. that the pool is distributed equally among the individual tranches. This, however, does not correspond to reality at all. - See impact carrier, securitization. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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