SBA Update

June 5, 2017

Activity for floating-rate SBAs increased last week, as investors anticipate a continued increase in short-term rates.  Fixed-rate SBA activity was steady as portfolio managers continued to add 20-year DCPCs to their portfolios, although demand is lower than the levels experienced earlier this year.  Volume levels of government-guaranteed loans continues to be healthy, creating opportunity for new pools later this year.

Floating-Rate 7(a) Pools

Fixed-Rate (DCPC and SBIC) Pools



Government Guaranteed Loan Trading

Activity in floating-rate SBAs was very healthy last week, as investors focus on rising short-term rates and look to diversify SBA holding by origination dates.  Portfolio managers wanting to add a fixed-rate component to their portfolios will have a chance on Thursday when the June 20-year DCPC prices.



Greg Roll, CFA

Senior Vice President

Vining Sparks

The information included herein has been obtained from sources deemed reliable, but it is not in any way guaranteed, and it, together with any opinions expressed, is subject to change at any time. Any and all details offered in this publication are preliminary and are therefore subject to change at any time. This has been prepared for general information purposes only and does not consider the specific investment objectives, financial situation and particular needs of any individual or institution. This information is, by its very nature, incomplete and specifically lacks information critical to making final investment decisions. Investors should seek financial advice as to the appropriateness of investing in any securities or investment strategies mentioned or recommended. The accuracy of the financial projections is dependent on the occurrence of future events which cannot be assured; therefore, the actual results achieved during the projection period may vary from the projections. The firm may have positions, long or short, in any or all securities mentioned. Member FINRA/SIPC.
Copyright © 2021
This is a publication of Vining-Sparks IBG, L.P.
775 Ridge Lake Blvd., Memphis, TN 38120