I encountered the term "Traunch" in 1991 when structuring a reinsurance transaction through a reinsurance broker in London. ["reinsurance" is insurance purchased by insurance companies to transfer losses to other insurers called reinsurers]. We were creating a reinsurance program consisting of several vertical layers reaching up to (US) $50 million. During our negotiations the term was used in the context of "layers" of reinsurance or "Traunches". I also see the term used in the banking world, specifically when referencing collateralized mortgage backed securities (CMBS). The securities are structured into layers or Traunches when being packaged for sale.
It looks as though traunch possibly was adapted from tranche. Oxford dates tranche to 1500, from French: trancher = "to cut." Traunch is a minor listing in Oxford (I'm going on the old edition) as a variant of tranch, an obsolete word meaning "to carve."
Traunch in the sense I have entered here seems to have come into usage only a few years ago as a specialized word in finances. As such, it is not in any book-form dictionary that I know of, even the 2003 Collegiate. A search on Google will bring up multitudes of uses of the word which justify the entry I wrote here. The word seems to have very rapidly taken on extended meanings, so that it can refer to part of a series of just about anything, although it still has its greatest use to refer to one of a series of funds invested a certain way.
I'd be interested if anyone has futher information. I have written to Paul McFedries (Word Spy) about it, hope to hear his take. If anyone has a new Oxford or access to their online dictionary, please look this up and report here what you find. Perhaps a dictionary of investment terms would shed light (mine is in another state.) My bet is that this word will be in dictionaries very soon. 184.108.40.206 04:34, 19 Feb 2005 (UTC)
Additional remark: I wrote the above, then did more homework. I see now, the word tranche does have a modern financial usage, different from traunch. Thanks for the question. I learned something.
<http://itlocus.com/glossary/> offers these definitions:
tranche: One of several related securities offered at the same time. Tranches from the same offering usually have different, reward, and/or characteristics. (and): One of a combined group of related securities which offer various risk, reward and maturity alternatives
traunch: One of many influxes of cash that is part of a single round of investment.
If someone with an intimate knowledge of investment thinks my definition is inadequate, i hope you'll fix it. But the extended meanings i would stand behind. 220.127.116.11 09:21, 19 Feb 2005 (UTC)
Who or what is LeBay? If the reference in the definition is to add or clarify meaning then it needs to be explained to those who may not know the significance of LeBay.(IMO) 18.104.22.168 12:07, 12 December 2005 (UTC)
Correct word is Tranche
"Traunch" is a misspelled word. The correct word is "Tranche." Merriam-Webster's Unabridged and Collegiate dictionaries do not list "Traunch".
Definition: tranche - a portion, slice, section, or series of a bond issue
- Actually, check Investopedia... Traunch is the correct spelling.
Traunch vs. Tranche: the Google Test
For spellings and treatment of words, I sometimes use the Google Test: search the word or phrase both ways and see how many hits you get. "Traunch" gets about 6,800 hits; "tranche" gets some 9 million. Also, see the Wikipedia article on Tranche, which deals with this question.
--Athansor 23:50, 10 April 2008 (UTC)