Prepay Commentary

July SBA Prepayment Speeds



July 16, 2018

 

Mixed prepayment results left overall CPRs for SBA pools above their year-to-date average and also above the average since the October procedural changes. Real-estate pools slowed by a greater amount than equipment loans sped up, and for the first time in several months overall speeds for real-estate pools trailed equipment-loan pools, albeit by a small amount. Seasonal factors and trends seemingly outweighed technical factors in keeping the speeds elevated, and investors that already adjusted to recent speed trends should see little need to modify average life assumptions based on this month’s speeds. Loan age remains a powerful influence on speeds, and nothing in this month’s prepayments represents a meaningful break from seasoning vectors based on prior history.

 

 

SBA Prepayment Tables (Click for Details)

Prepared according to methodologies described by SIFMA.

 








 

Strategic Insight: Four Months In, SBA Prepayments

 



James Plunkett

Director of Investment Product Strategies

Vining Sparks


Amanda Noa

Vining Sparks


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