SBA Prepay Commentary
January 2020 SBA Prepayment Speeds
Prepayment speeds generally went up for both Equipment and Real-Estate SBA 7(a) pools for January. Equipment loan pools experienced a small pick-up, going from 16.2 to 18.0 CPR. Results were mixed across individual vintages, but those with speed increases saw more substantial changes than those with decreases. Real-Estate loan pools increased from 18.0 to 23.5 CPR. Most individual vintages saw their prepayments speed up and were above their 6- and 12-month averages.
Equipment Loan Pool CPRs
- Prepayment speeds were mixed on a vintage-by-vintage basis, with the most notable changes happening in 2012 and 2013 pools.
- As with last month, most vintages have gone back to experiencing speeds above both their 6- and 12-month averages, the exceptions being 2013, 2015, and 2016 pools.
Real-Estate Loan Pool CPRs
- Most vintages had a notable increase in prepayments, with the exception of 2006, 2011, and 2012 pools.
- Most vintages saw speeds above their 6-month averages, the exceptions being 2006, 2008, 2011, and 2012 pools.
- Most vintages saw speeds above their 12-month averages, the exceptions being 2006, 2011, and 2012 pools.
- The largest increases were seen in 2009 and 2013 vintages, which went from 7.4 to 22.4 CPR and 24.0 to 40.1 CPR, respectively
Prepared according to methodologies described by SIFMA.
Kevin A. Smith, CFA
SVP, Director Investment Product Strategies
Analyst, Investment Product Strategies