%0 Journal Article %A Jeffrey T Prince %T The Two-Tranche Method of Estimating CDO Recovery Rates %D 2005 %R 10.3905/jsf.2005.598333 %J The Journal of Structured Finance %P 64-68 %V 11 %N 3 %X 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. %U https://jsf.pm-research.com/content/iijstrfin/11/3/64.full.pdf