PT - JOURNAL ARTICLE AU - Jeffrey T Prince TI - The Two-Tranche Method of Estimating CDO Recovery Rates AID - 10.3905/jsf.2005.598333 DP - 2005 Oct 31 TA - The Journal of Structured Finance PG - 64--68 VI - 11 IP - 3 4099 - https://pm-research.com/content/11/3/64.short 4100 - https://pm-research.com/content/11/3/64.full AB - Similarly rated tranches are not created equal. Among other things, some tranches have better recovery potential than others. Investors who rely on rating agency look-up tables to estimate recovery rates for structured credit products may over-or underestimate recovery values. This is particularly true for managers of CDO-Squared or ABS CDO transactions. We propose the Two Tranche Method (TTM) as a way for investors to quickly estimate CDO tranche recovery rates.