Numerically difficult boundary‐value problems for linear ODE systems can be solved with the compound‐matrix and Riccati methods. A drawback with the compound‐matrix method is that the dimensions of the ODE systems for the compound quantities can become large. Explicit quadratic relations, with relevance to quadrics in Grassmannian manifold theory, are derived for these quantities and used to reduce the system dimensions, whereby the “compound‐matrix Riccati” method appears. Compared to the traditional Riccati method, an additional forward‐sweep equation is included, which allows reconstruction of all compound‐vector elements. The well‐known singularity problems with the Riccati method are thereby removed. In particular, argument‐variation techniques for determination of eigenvalues become applicable. Seismo‐acoustic wave propagation in laterally homogeneous anisotropic media is considered as an example. The example indicates that region‐dependent mode classification, previously shown for isotropic fluid‐solid media, can be generalized to the anisotropic case. This generalization is subsequently made theoretically.