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

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