SBA Update

February 26, 2018



As investors anticipate a continued increase in short-term rates, demand for floating-rate investments continues to be strong.  Activity in the sector centered around low to moderately priced SBA floaters last week. Monthly prepayment speeds revealed consistency with every month since the October.

procedural change implemented by the SBA.  Most recently activity in fixed-rate investments has been tempered due to limited supply, however depository managers continue to add DCPC and USDA whole loans at a measured pace.  Loan trading activity in 2018 has been healthy, although activity has slowed over the past two weeks.

 

Floating-Rate 7(a) Pools

 

 

 

Fixed-Rate (DCPC and SBIC) Pools

 

Government Guaranteed Loan Trading

 

February prepayments highlighted news for the SBA sector earlier this month. Demand for lower dollar-priced floating-rate pools remains strong with a pickup in interest in moderately priced pools occurring as the prepayment picture clarifies. Despite strong demand, fixed-rate SBA product flows might remain low this week, as they are dependent on secondary offerings due to the timetable of auctions.

 

 


Greg Roll, CFA

Senior Vice President

Vining Sparks

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