“An approach for reducing this risk is to create bond classes that possess different expected maturities. This is referred to as time tranching. For instance, a securitization pool may contain sequential tranching, where the principal repayments flow first to one tranche until the principal is fully repaid for that tranche and then to the sequential tranche until the principal is repaid for that tranche.”
How is this any different from credit tranching with the waterfall structure? You can argue that all the bond classes here face the same credit risk and the only difference is the maturity difference but I don’t think this is true because the maturity difference creates a difference in credit risk between classes.