SBA Prepay Commentary
July SBA Prepayment Speeds
In total, Equipment and Real-Estate SBA 7(a) posted minor declines for the second month in a row. CPRs for the Equipment pool population declined to 17.7 CPR from 17.8 CPR in June. Real-Estate speeds declined to 18.1 CPR from 18.4 CPR in June. It is worth taking a closer look at Equipment pool vintages as the moves were not broadly downward across all vintages.
Equipment Loan Pool CPRs
- Most vintages saw speeds increases, but the largest vintage (2018) had a sharp decline.
- Comparatively, 2018 vintage pools declined sharply from the previous month.
- 2017 and 2016 vintages sped back up after recent declines and remain above their 6-month average.
Real-Estate Loan Pool CPRs
- Broader-based decline across vintages.
- 2018 vintage pools slowed for the third month in a row, an interesting trend.
- 2015 vintage kicked back up to 28 CPR after a large decline last month.
Prepared according to methodologies described by SIFMA.
Kevin A. Smith, CFA
SVP, Director Investment Product Strategies
Analyst, Investment Product Strategies