# Tranche

*Markets & Instruments — Finicade finance glossary*

One slice of a securitized deal, ranked by who gets paid first and who absorbs losses first. Senior tranches are safe but low-yielding; junior ones pay more but are wiped out first when defaults hit.

**Also known as:** tranches, tranching, cdo tranches

**Related terms:** [Securitization](https://finicade.com/glossary/securitization), [Credit Risk](https://finicade.com/glossary/credit-risk)

**Taught in:** Charter Climb — Securitization

Source: https://finicade.com/glossary/tranche