Tranche comes from the French language and translates into English to mean portion or slice.

This term is used in the investing world in the description of a security that can be partitioned into small pieces and sold to individual investors. By doing this, holders of securities are often able to make purchase by investors more likely by making a more attractive, more marketable investment opportunity through offering tranches of the security, rather than the security as a whole.

In the credit card industry, tranches are portions of securitized credit card portfolios and are usually organized by risk classes. Investors then purchase parts of the portfolio by buying tranches and will be paid in accordance to the class designation of the tranches they own.

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