SBA Prepay Commentary
September SBA Prepayment Speeds
Equipment and Real-Estate SBA 7(a) pools had mixed CPRs for the month of September. Equipment loan pools saw an increase from August’s 17.0 CPR to 18.1 CPR, reversing a four-month downward trend. This was driven by broad-based increases in most vintages. Real-Estate loan pools experienced a slight decline from 20.1 CPR in August to 19.4 CPR. It is worth looking at the breakdown of these pools as the direction of individual vintages’ speeds varied.
Equipment Loan Pool CPRs
- Most vintages saw speeds above both their six- and twelve-month averages.
- 2013 vintages experienced the largest increase, from 20.7 CPR in August to 43.4 CPR in September.
- Contrary to most vintages, 2012 pools have experienced a steep drop-off in prepayments over the last three months.
Real-Estate Loan Pool CPRs
- Speeds by vintage were a mixed bag, with newer vintages generally decreasing and older vintages generally increasing.
- Most newer vintages (2019-2012) saw a reversal in their increase/decrease direction from the previous month.
Prepared according to methodologies described by SIFMA.
Kevin A. Smith, CFA
SVP, Director Investment Product Strategies
Analyst, Investment Product Strategies