A type of toggle tranche that maintains its priority only for a temporary interval defined by the span of time during which the triggering event is still ongoing. Being a toggle tranche, it may receive principal repayments before other tranches with specific precedence order, and even if such tranches are still not retired, if market developments give rise to a “triggering” event (e.g., a drop in Treasury yields to a specific level or a prepayment pattern that deviates from set assumptions by a certain proportion.)
November 24, 2024
