SBA Update

January 16, 2018

Last week brought limited activity in the SBA market, as many investors continue to attend to year-end administrative duties.  The limited activity was centered on trading par handle floating-rate issues and the new issue DCPC.  Loan trading activity has yet to return, although we do anticipate loan trading to return to recent levels once managers can return focus to their loan portfolios.


Floating-Rate 7(a) Pools


Fixed-Rate (DCPC and SBIC) Pools



Government Guaranteed Loan Trading


Demand for fixed-rate SBA securities continues to be healthy, as the January DCPC auction was met with strong demand.  Portfolio managers continue to focus on future rate increases and look to mitigate interest rate risk exposure by adding variable-rate investments to their portfolios.  Loan activity continues to be strong in both 7(a) floating-rate loans and fixed-rate USDA government guaranteed loans, however activity is expected to soften over the next few weeks.

Greg Roll, CFA

Senior Vice President

Vining Sparks

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