SBA Update

April 30, 2018



Activity in the SBA sector waned last week versus the prior very busy three weeks. Fixed-rate SBA volumes fell more than floaters, mostly as a function of the lack of auction-related activity. Floater activity gravitated toward lower-coupon bonds trading near par and new equipment-loan pools.

 

Floating-Rate 7(a) Pools

 

Fixed-Rate (DCPC and SBIC) Pools

 

Government Guaranteed Loan Trading

 

 

 

A moderate amount of weekly volume for the SBA sector reflected a lack of fixed-rate issuance and perhaps a lack of a urgency for floater buyers. While SBA floaters should continue to enjoy the enhanced attention resulting from the upward path of short-term rates, many investors suspect the next hike will be later this quarter. Volume should pick up over the coming weeks with next week’s DCPC auction and also as a rate hike appears more imminent.

 



James Plunkett

Director of Investment Product Strategies

Vining Sparks

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