Prepay Commentary

December SBA Prepayment Speeds



December 14, 2018

 

Equipment and Real-Estate SBA 7(a) pools posted 24% and 25% declines, respectively, in their 1mo CPRs measured month-over-month.

Equipment Loan Pools

Taking a look at speeds by vintage, every vintage of consequence posted a month-over-month decline, save the 2017 issue pools. Their increase (12%) wasn’t nearly as large as the declines seen elsewhere though.

Real-Estate Loan Pools

Real-Estate speeds by vintage were more uniform. Every vintage of consequence posted a month-over-month decline. The 2011 vintage did see a 10% increase month-over-month from 21.04% to 23.21%; however, the 2011 vintage only represents 4% of total outstanding RE pools.

 

Please note that the linked tables now include 12 month moving averages as there are now fifteen months of available history subsequent to the principal distribution related procedural changes implemented last October.

 

SBA Prepayment Tables (Click for Details)

Prepared according to methodologies described by SIFMA.











Kevin Smith, CFA

SVP, Director Investment Product Strategies

Vining Sparks


Adam Hofer

Analyst, Investment Product Strategies

Vining Sparks


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