SBA Prepay Commentary
April SBA Prepayment Speeds
In total, Equipment and Real-Estate SBA 7(a) pools paid at faster speeds than in the prior month. CPRs for the Equipment pool population broadly increased from 14.5 to 18.8. Real-Estate speeds came in 1 CPR faster at 16.6 CPR after they were virtually flat last month. As has been the case lately, depending on the Real-Estate vintage, the story can vary. I don’t want to miss the forest for the trees though so I’ve also included a history of the rolling six-month average of Equipment and Real-Estate pools below. Even though it reversed this month, the overall trend since peaking last November has been a slowdown in CPRs for both Equipment and Real-Estate pools.
Equipment Loan Pools
- Last month, owners of 2013 and 2014 vintages enjoyed slower speeds than in prior months, but they roared back this month paying at 30.7 and 31.3 CPR, respectively.
Real-Estate Loan Pools
- Real-Estate speeds by vintage were not uniform this month.
- After two months of slowing, the 2016 vintage popped back up and sits close to its six-month average.
Prepared according to methodologies described by SIFMA.
Kevin A. Smith, CFA
SVP, Director Investment Product Strategies
Analyst, Investment Product Strategies