Tranches meaning and structure can sound intimidating at first, but large loans and structured financial products are rarely handed out in one single block. They’re often sliced into pieces, each with its own risk and return profile, so different investors can pick the slice that suits them. That slice is called a tranche. This structure allows issuers to attract a wider range of investors by offering different levels of risk and reward within the same financial product. Understanding how tranches work can make it easier to understand instruments such as mortgage-backed securities, collateralised debt obligations, and syndicated loans. <\/p>\n\n\n\n