Prepay Commentary

September SBA Prepayment Speeds

September 17, 2018


Prepayment speeds for equipment loan pools reverted back towards their averages since a year ago, accelerating slightly overall versus a below average August. Real estate pool speeds continued to creep higher, though weak issuance of pools continues to pressure speeds upward as the existing loan population gravitates toward a higher weighted average loan age. Prepayment speeds remain consistent with patterns observed over the last twelve months, with loan age dominating other factors in importance and also with a consistent shape to seasoning vectors for equipment loan and real estate pools. Faster speeds for the 2015 and 2016 vintages can be attributed to their seasoning as the loan populations move toward the elevated portions of seasoning ramps.



SBA Prepayment Tables (Click for Details)

Prepared according to methodologies described by SIFMA.


James Plunkett

Director of Investment Product Strategies

Vining Sparks

Adam Hofer

ViningĀ Sparks

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