RT Journal Article SR Electronic T1 The Two-Tranche Method of Estimating CDO Recovery Rates JF The Journal of Structured Finance FD Institutional Investor Journals SP 64 OP 68 DO 10.3905/jsf.2005.598333 VO 11 IS 3 A1 Jeffrey T Prince YR 2005 UL https://pm-research.com/content/11/3/64.abstract 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.