Thomson Reuters has partnered with Moody’s Analytics, a provider of financial intelligence and analytics, to offer a classification solution for conducting the Solely for Payment of Principal and Interest (SPPI) tests required under the IFRS9 accounting standard.

The solution allows fixed-income investors to automate SPPI tests for securities in their portfolios by providing data on over 1.2 million corporate, government, and structured securities globally.
 
“We are excited to partner with Thomson Reuters to bring fixed-income investors more comprehensive coverage of all asset classes in a single transparent and auditable solution,” says Luis Amador, Managing Director at Moody’s Analytics.
 
In addition to securities held in clients’ portfolios, the solution permits users to conduct additional due diligence on bonds that have not been purchased. Full explanations are provided for returned SPPI pass/fail tests, including the methodologies used, as well as IFRS9 identified criteria and interpretations.
 
“Partnering with Moody’s Analytics, we developed a much simpler and more comprehensive solution to help clients manage their SPPI instrument accounting obligations under IFRS9,” says Stuart Martin (pictured), Managing Director for Risk Information and Learning Services for the Financial & Risk business at Thomson Reuters. “We worked together to deliver a seamless experience for clients, built on industry-leading data from both Thomson Reuters and Moody’s Analytics.”
 
The SPPI data feed is delivered with an open API and can be integrated into an existing client system or accessed via a web portal. “We developed the solution with user experience in mind and are committed to providing expert customer service throughout the product lifecycle,” adds Amador.
  
The Thomson Reuters Financial & Risk business will be known as Refinitiv, following the closing of the strategic partnership transaction between Thomson Reuters and private equity funds managed by Blackstone.