Task: Class Definition Understanding (ontology: Business_Finance/Financial_Industry_Business_Ontology)

Which of the following definitions best describes 'tranche'?

A. structured finance that is a short-term note linked to an underlying asset that offers a steady stream of income
B. structured finance that offers investors exposure to chosen underlying assets using various approaches and asymmetric pay-off profiles
C. debt instrument backed by receivables other than those arising out of real estate loans or mortgages
D. segment of a pool of securities, typically debt instruments

Answer: segment of a pool of securities, typically debt instruments