SBA Prepay Commentary
October SBA Prepayment Speeds
Equipment and Real-Estate SBA 7(a) pools both posted slower speeds for the month of October. Equipment loan pools declined from September’s 18.1 CPR to 16.6 CPR. This was driven by broad-based declines in 2017 and 2018 vintages. Real-Estate loan pools declined from 19.4 CPR in September to 18.7 CPR; which, unlike equipment pools, was driven by declines in almost every vintage except 2017 and 2018.
Equipment Loan Pool CPRs
- Most vintages saw speeds above both their six- and twelve-month averages.
- 2013 vintages experienced the largest decline, from 43.4 CPR to 19.6 CPR, after an almost equal increase the prior month.
Real-Estate Loan Pool CPRs
- 2017 and 2018 vintages sped up significantly in October; which, given historical trends isn’t too unexpected.
- All other vintages, save 2008, saw mostly modest declines.
Prepared according to methodologies described by SIFMA.
Kevin A. Smith, CFA
SVP, Director Investment Product Strategies
Analyst, Investment Product Strategies