SBA Prepay Commentary |  |
April SBA Prepayment Speeds
April 2019
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.
SBA Prepayment Tables (Click for Details)
Prepared according to methodologies described by SIFMA.
Kevin A. Smith, CFA
SVP, Director Investment Product Strategies
Vining Sparks
Adam Hofer
Analyst, Investment Product Strategies
Vining Sparks