SBA Update

April 15, 2019

The April fixed-rate DCPC auction last week included 20 and 25yr maturities.  Issuance increased 34% MoM, while yield spreads versus Treasuries tightened 5 to 6bps.  SBA prepayment speeds for SBA 7(a) pools paid at faster speeds in April than in the prior month.


Fixed-Rate DCPC Pools

Fixed-rate DCPC pools and SBIC fixed-rate debentures remain attractive as they offer superior convexity profiles to most residential MBS alternatives, while offering comparable yields and spreads.

Floating-Rate 7(a) Pools


April SBA Prepayment Speeds

Government Guaranteed Loan Trading

Government-guaranteed USDA agricultural FSA loans traded to financial institutions last week and improved availability of supply has contributed to trading activity recently.  As has been the case for some time, supply and not demand limits loan trading volumes.

Dan Stimpson, CPA

Senior Vice President, Investment Strategies

Vining Sparks IBG, LP

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