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Saw this cutie in a catalogue.
I am loving this handle but am perplexed by how it works.
My closest guess is that the two colors are stitched into the fabric base after knotting.
Does anyone know the name of the shown/decorative knot and how to create the illusion of two colors originating at the base?
This is another closer pic 
The quality is not good because it’s a pic of a picture in a catalog. I do not have the real thing.
To my eye, it looks like it may be a simple overhand knot in one cord with the other cord inserted through it. The knots look more complex, but that may just be the cord flattening out at the knot (it may be a cover over a cord), or see other possible explanation below.
It's hard to see the construction of the purse loops. That could be a piece of fabric that goes through the handle loop and then is stitched in place. In that case, the two colors could be joined under the purse loop.
Another possibility is that the handles are a bit if an optical illusion, which would explain the apparent complexity in the knots. Each handle may actually be one cord; the light-colored cord with a dark cover over roughly half of it. The dark cover ends under the purse loops. The joint of the two ends is concealed in one of the knots, looking like part of the knot.
I agree with you on how they likely attached the handle. For the knots themselves I believe they are Offset overhand bends, which is just an overhand knot with two strands.
