SBA Prepay Commentary
May SBA Prepayment Speeds
In total, Equipment and Real-Estate SBA 7(a) pools had mixed results for this month. CPRs for the Equipment pool population were basically flat at 18.7 CPR compared to 18.8 CPR in April. Real-Estate speeds came in 2 CPR faster than in April at 18.6 CPR. It’s worth taking a look at the vintage breakdowns below as they can vary. Measured on a 6-month moving average, both Equipment and Real-Estate pools have continued on a downward path after a blip up last month, though Equipment pools are still above the decline’s low.
Equipment Loan Pools
- 2016 vintage owners saw an increase from 19.2 to 27.1 CPR after a couple months of relative calm.
- 2013 and 2014 vintages slowed down, but not back to recent levels, from their respective 30.7 and 31.3 CPRs in the prior month.
Real-Estate Loan Pools
- Directional changes in Real-Estate speeds were more uniform than in recent months.
- The 2017 vintage abruptly slowed down after a sharp increase last month.
- The 2013 vintage bounced back to historical levels after a large decline in the prior month.
Prepared according to methodologies described by SIFMA.
Kevin A. Smith, CFA
SVP, Director Investment Product Strategies
Analyst, Investment Product Strategies