Attachment / detachment point

Where a securitisation tranche's losses start and stop. A tranche attaching at 3% and detaching at 7% is untouched until pool losses pass three and is gone at seven — everything about its rating and its coupon follows from those two numbers.

Where Attachment / detachment point is explained in depth

The definition above is the short version. These pages put it to work, in the order they use it most:

• CDO & Synthetic Tranches
• Credit Derivatives
• Catastrophe Bond
• Asset-Backed Security
• Structured & Asset Finance
• Where the Leverage Hides

Terms this definition uses

• Coupon
• Securitisation

The whole glossary