SBA Update

January 22, 2018



Activity continued to be limited in the SBA market, as investors chipped away at floating-rate and fixed-rate SBAs being held in inventories.  The limited activity was centered on trading par handle floating-rate issues and the latest issue DCPC.  Loan trading activity has increased substantially, as depository managers have been returning focus to their government guaranteed loan portfolios.

 

Floating-Rate 7(a) Pools

Fixed-Rate (DCPC and SBIC) Pools

 

Government Guaranteed Loan Trading

 

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.  Demand for fixed-rate SBA securities continues to be healthy, although last week we noticed a pullback in activity.  Loan activity has increased across all government guaranteed loan categories, as depository managers refocus their efforts on their loan portfolios.

 

 


Greg Roll, CFA

Senior Vice President

Vining Sparks

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