Credit Tranche

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Dictionary Says

Definition of 'Credit Tranche'

A system used by the International Monetary Fund (IMF) to govern its lending activities to member countries. When a member nation applies for a loan to help with balance of payment difficulties, the IMF will disperse the loan in a series of credit tranches. Tranches are a portion of the loan that is released upon the member country fulfilling conditions or requirements set forth by the IMF.
Investopedia Says

Investopedia explains 'Credit Tranche'

An International Monetary Fund loan usually lasts between 18 months and three years. At the start of the loan, the borrowing nation must demonstrate that reasonable efforts have been taken to overcome its financial difficulties. If this requirement is met, the country will receive the first credit tranche of the loan, usually 25% of its total value. The later series of credit tranches will have various conditions, each of which the borrower must satisfy before receiving the next portion of funding.
Search results for

'Credit Tranche'

  • What is a tranche?

    http://www.investopedia.com/ask/answers/04/081304.asp
    ... collateralized mortgage obligation (CMO), can often be found in the form of a tranche. ...
    Should I pay my mortgage with my credit card to earn credit card rewards ...

  • 3 Bonds You May Have Never Heard Of

    http://www.investopedia.com/articles/bonds/09/lesser-known-bonds.asp
    ... are then even sometimes separated into even more narrow tranches by their credit
    ratings. Advertisement - Article continues below. SEE: What Is A Tranche? ...

  • CDOs And The Mortgage Market

    http://www.investopedia.com/articles/07/cdo-mortgages.asp
    ... For starters, some structures use leverage and credit derivatives that can
    trick even the senior tranche out of being deemed safe. ...

  • Why Are Mortgage Rates Increasing?

    http://www.investopedia.com/articles/pf/07/secondary-market.asp
    ... tranches. Each tranche within a deal is designed to have certain performance
    characteristics and a certain credit rating. Logic ...

  • Collateralized Debt Obligations: From Boon To Burden

    http://www.investopedia.com/articles/bonds/09/collateralized-debt-obligations.asp
    ... sliced into risk levels, or tranches, with the top tranche getting paid ... housing prices
    fell and disposable income disappeared, many other credit products began ...

  • Who bears the risk of bad debts in securitization?

    http://www.investopedia.com/ask/answer/07/securitizationrisks.asp
    ... If there are more than two tranches, the lowest priority tranche will absorb the
    losses ... Should I pay my mortgage with my credit card to earn credit card rewards ...

  • Credit Crisis: What Caused The Crisis? | Investopedia

    http://www.investopedia.com/university/credit-crisis/credit-crisis4.asp
    ... Subprime mortgages are issued to households with below-average credit or income ... of
    mortgages is relatively low, the loss for a particular tranche of mortgage ...

  • Profit From Mortgage Debt With MBS

    http://www.investopedia.com/articles/06/mortgagebackedsecurities.asp
    ... are debt obligations purchased from banks, mortgage companies, credit unions and ...
    Each tranche holds mortgage-backed securities with similar maturity and cash ...

  • The Fuel That Fed The Subprime Meltdown

    http://www.investopedia.com/articles/07/subprime-overview.asp
    ... with subprime mortgage loans, or loans to buyers with less-than-stellar credit. ... All
    the way at the bottom, the "equity" tranche was a highly speculative ...

  • Could September Be D-day For The Euro? - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0911/Could-September-Be-D-day-For-The-Euro.aspx
    ... After Finland's announcement, Moody's, the credit rating agency, said that the
    collateral agreements could risk delaying the next tranche of bailout funds that ...

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