What is thickness of tranche in SAP FS-BA-PM-CR - Credit Risk?

SAP Term: thickness of tranche

• Component: FS-BA-PM-CR

• Component Name: Credit Risk

• Description: Key figure that is used in the context of a securitization to specify the ratio between the nominal value of a particular tranche and the total of all tranches.

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• Key Concepts: 
  Thickness of tranche is a term used in the Credit Risk Management component of SAP Financial Services (FS-BA-PM-CR). It refers to the amount of credit risk that is associated with a particular tranche of a loan or other financial instrument. The thickness of a tranche is determined by the amount of credit risk associated with it, which is based on the creditworthiness of the borrower and the terms of the loan. 
  
  How to use it: 
  The thickness of tranche can be used to determine the amount of risk associated with a particular loan or financial instrument. This information can be used to assess the riskiness of a loan or financial instrument and to determine whether or not it is suitable for investment. 
  
  Tips & Tricks: 
  When assessing the thickness of tranche, it is important to consider both the creditworthiness of the borrower and the terms of the loan. The terms of the loan should be carefully examined to ensure that they are suitable for investment. Additionally, it is important to consider any potential changes in market conditions that could affect the creditworthiness of the borrower. 
  
  Related Information: 
  The thickness of tranche is an important concept in Credit Risk Management and should be taken into consideration when assessing potential investments. Additionally, it is important to understand other concepts related to Credit Risk Management such as credit scoring, collateralization, and default risk.