SBA Prepay Commentary

December 2021 SBA Prepayment Speeds



Prepayment speeds on equipment loan pools increased for the eighth time in nine months while those for real-estate loan pools slowed. Concerns over quality of labor continue to mount for small business owners, as reported by the NFIB. 48% of business owners claim they have job openings they are unable to fill. For the month of November, 59% of owners reported raising their selling prices, which is the highest reading of respondents in 42 years. Concerns over inflation also continue to grow, as 18% of respondents listed it as the single most important problem facing their business in November, up from 16% the month prior.



Equipment loan pools’ prepayments increased from 15.4 to 15.6 CPR, though results were more mixed when viewed on a vintage-by-vintage basis. Prepayments on real-estate loan pools slowed from 17.1 to 15.4 CPR, which was also reflected in most individual vintages.



Equipment Loan Pool CPRs


1Equipment loan pools have original WAMs between 8 and 13 years


Real-Estate Loan Pool CPRs


2Real-estate loan pools have original WAMs greater than 18 years


SBA Prepayment Tables (PDF)

Prepared according to methodologies described by SIFMA.



Other Helpful Links

Weekly Sector Update | Weekly, Monday

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Vining Sparks Interest Rate Products Weekly Commentary | Weekly, Monday

Investment Alternatives Matrix | Weekly, Tuesday

MBS Prepay Commentary (December) | Monthly, 5th business day

NFIB Small Business Economic Trends (November) | Monthly, 2nd Tuesday of each month




Adam Hofer

Analyst, Investment Product Strategies

Vining Sparks

AHofer@viningsparks.com


Kevin A. Smith, CFA

SVP, Director Investment Product Strategies

Vining Sparks

KSmith@viningsparks.com


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