12 Atypical RMBS tranche (or note) will pay a floating interest rate with principal returned on a ‘pass-through’ basis  as payments are received (subject to the payment profile specified in the RMBS deal documentation). A shortterm tranche is one that is structured to receive sufficient principal payments such that its weighted average life is less than or equal to one year.
A ‘green’ tranche indicates that a sufficient share of mortgages in the pool involves housing that meets certain energy efficiency or low carbon criteria for residential buildings. 13 See RBA (2018), Domestic Financial Conditions, Statement on Monetary Policy, August for more detail on the  effect of higher BBSW rates on banks’ funding costs.