What is traunch?

A "traunch" is a financial term that refers to a portion or segment of a larger investment or loan that is divided up in a specific way. For example, a tranche of a loan may be divided up into different repayment periods or interest rates, or a tranche of an investment fund may be allocated to a specific type of asset or geographic region. The purpose of traunching is to allow investors or borrowers to tailor their investments or loans to their specific needs or risk appetite. Traunching is commonly used in structured finance, such as mortgage-backed securities or collateralized debt obligations.