SBA Update

June 25, 2018



The Federal Reserve raised the Fed Funds Target Rate 25bps recently and two additional rate hikes are projected by the Fed this year, which should continue to drive demand in floating-rate SBAs.

 

Floating-Rate 7(a) Pools

 

Fixed-Rate (DCPC and SBIC) Pools

 

 

 

Government Guaranteed Loan Trading

 

SBA Prepayment Speeds

SBA 7(a) prepayments increased in both equipment-loan and real-estate pools to the highest CPR posted since the SBA changed its cashflow methodology last October, more than erasing last month’s decline. While day count by itself should have pushed speeds higher, seasonal factors and cyclical influences also impacted last month’s prepayment activity. Speeds increased across almost all vintages for both real-estate and equipment-loan pools. For additional charts and SBA prepayment commentary, click on the link.

 

 


Dan Stimpson, CPA

Senior Vice President

Vining Sparks

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