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/