Loss Tranche

This Issue in United States

Equity/first Loss Tranche

Concept of Equity/first Loss Tranche in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The first loss and riskiest tranche in a CDO where there is no subordination. For example, a tranche with a 0% – 4% attachment/detachment point.

Resources

See Also

• Derivatives Contract