SBA Update

April 2, 2018



While a relatively slow trading week for SBAs occurred, the number of investors visiting the sector surpassed what would have been expected given the quarter-end and holiday combination. Floater activity mostly consisted of recently-issued equipment loan pools, augmented by some lower-dollar priced more seasoned pools. Rather sluggish fixed-rate activity included the most recent SBIC issue and very limited activity in DCPCs. Loan trading remained rather brisk relative to bonds.

 

Floating-Rate 7(a) Pools

 

Fixed-Rate (DCPC and SBIC) Pools

 

 

Government Guaranteed Loan Trading

 

Investor buying of floating-rate pools, both priced near par and fuller coupon offerings with prices well above par, fell last week, probably more because of the suppressive impacts of the quarter-end than perceptions of value or investor needs. Fixed-rate trading volumes were slow for much the same reasons, and the monthly DCPC auction this week should serve to further elevate investor activity beyond what the return to regular work schedules alone would have.

 



James Plunkett

Director of Investment Product Strategies

Vining Sparks

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