SBA Prepay Commentary
February 2020 SBA Prepayment Speeds
SBA 7(a) prepayment speeds for the month of February saw mixed results for Equipment pools and generally decreased for Real-Estate pools. Equipment loan pools experienced a small drop overall, going from 18.0 to 17.6 CPR, though results were mixed on a vintage-by-vintage basis. Real-Estate loan pools decreased from 23.5 to 18.9 CPR, with most individual vintages experiencing decreases of varying severity.
Equipment Loan Pool CPRs
- Prepayment speeds vintages were mixed, with 2012 pools’ drop of 52.6 to 33.6 CPR being the largest change.
- As has been the case for the last three months, most vintages’ prepayments were above both their 6- and 12-month averages, the exceptions being 2013, 2014, and 2015 pools.
Real-Estate Loan Pool CPRs
- Most vintages saw notable decreases in prepayments, reversing the trend from last month.
- The largest decrease was seen in 2010 vintages, which went from 31.2 to 12.0 CPR.
- 2007, 2008, and 2011 were the only vintages to experience an increase in speeds, with 2011 having the greatest change at 12.4 to 22.8 CPR.
- After last month’s results of most vintages prepaying faster than their 6- and 12-month averages, this month’s decreases have given mixed results when comparing to said averages.
Prepared according to methodologies described by SIFMA.
Kevin A. Smith, CFA
SVP, Director Investment Product Strategies
Analyst, Investment Product Strategies