active tranche

Definition

Slice of a pool of mortgage backed securities that is currently receiving principal payments. This type of instrument is commonly structured as a collateralized mortgage obligation. Each section has its own maturity date and interest rate. In succession, each tranche in turn will become the active tranche and begin receiving the principal payments.
Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
active retention actively managed ETF