In relation to fungible bonds (funged bonds) and parent bonds, it is a tranche (part of different tranches) that are made legally separate from the parent bond, and can be independently traded for a certain period. On and after the funge date, the different tranches will be combined into one uniform bond. In other words, the parent tranche will consist of the original security, as well as the additional notional(s) from the new tranche(s).

The prices for parent tranche and other funged tranches will be the same, after the funge date.