SBA Prepay Commentary

January 2021 SBA Prepayment Speeds



In a time where the only thing to expect is the unexpected, SBA prepayment speeds did not disappoint. While the fall and winter seasons have historically been times of decreased prepayments, this year has seen speeds pick up over that period. Considering the increasing availability of the COVID-19 vaccine and another round of stimulus checks from the federal government, it would appear that business owners have begun feeling more confident in their future sales since the pandemic began, but their confidence has recently moderated and even slightly declined. If this continues to increase, said optimism would contribute to upward pressure on prepayments as speeds return to levels more in line with historical standards.



Equipment loan pools’ prepayments increased from 11.9 to 13.8 CPR, which includes pickups among every vintage. Real-estate loan pools also saw an increase, going from 11.0 to 12.3 CPR, though results were mixed on a vintage-by-vintage basis.



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.



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




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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