Methodology

Transparent inputs. Consistent outputs. Built for transfer pricing.

Data and Coverage

Currencies Supported

USDEURGBPJPYAUDMore coming soon.

Historical Window

Bond pricing data and yields available from 2020 to present.

Data is updated daily for all major currencies.

Coverage Note

Coverage depth varies by market. Major currencies have the deepest coverage, while smaller markets may have fewer observations for certain rating/term combinations.

Data sourcing details

tpFins aggregates corporate bond transaction data from secondary market trades on regulated exchanges, primary issuance data for new corporate bonds, and daily yield data from major financial data providers. All data is cleaned, validated, and normalized before being made available in the platform.

tpFins Credit Rating

tpFins harmonizes credit ratings from the major rating agencies into a consistent, unified scale. This supports more accurate comparisons across issuers rated by different agencies and helps maintain adequate sample sizes for benchmarking.

How rating harmonization works

When an issuer has ratings from multiple agencies, tpFins uses a rules-based approach to determine the applicable rating. For issuers with split ratings, we apply the lower of the two ratings (conservative approach) or allow users to specify their preferred methodology. The mapping covers investment grade (AAA to BBB-) and sub-investment grade (BB+ to CCC) ratings.

Arm's-Length Range

tpFins calculates the arm's-length range using standard statistical quartiles derived from the distribution of yields for comparable bonds.

1

Minimum

The lowest yield in the dataset

2

Q1 (25th Percentile)

25% of observations fall below this value

3

Median (50th Percentile)

The middle value of the distribution

4

Q3 (75th Percentile)

75% of observations fall below this value

5

Maximum

The highest yield in the dataset

Summary Statistics

Sample

Minimum

4.12%

25th %ile

4.85%

Median

5.23%

75th %ile

5.67%

Maximum

6.45%

Count (n)

127

Filter parameters: USD, 5Y Term, BBB Rating, As-of 2024-01-15

Benchmarking Outputs

Every export from tpFins includes a record of the inputs, criteria, and methodology notes used to support the analysis.

1

Filter Parameters

Currency, term, rating, industry, and any other search criteria applied

2

As-of Date

The reference date for all yield calculations

3

Sample Size

Number of bonds (n) included in the analysis

4

Assumptions

Methodology notes, rating mapping rules, and data source attribution

Available export formats

  • PDF Report: Formatted documentation suitable for inclusion in TP reports
  • CSV Export: Raw data for further analysis in Excel or other tools
  • Saved Searches: Reusable search configurations for recurring analyses

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