For large unwinds (e.g. notional amount of $100 million or more), a swap transaction can be sliced up into several pieces (tranches) either in time-based or counterparty –based unwinding. Time unwinding can be carried out simultaneously or at different points in time.

An unwind can be tranched on an average basis (by averaging in payments) and on several different days. In counterparty unwinding, a swap transaction can be unwound in different tranches divided among several different counterparties.