What are some methods for estimating recovery rates for an entity? For example, say I am trying to find the recovery rate that would be used to price a single name CDS on JPMorgan.
The true recovery rate is of course highly uncertain and dependent on the distribution of debt within a company's capital structure. Is there a standard quantitative approach for trying to estimate this? Or is there a convenient traded asset whose price I can use to infer an appropriate rate? What method would be the most accurate?