SBA Update

March 18, 2019



SBA activity was focused on the semi-annual SBIC auction last week, which tightened 4bps from September 2018.  The auction priced to yield a 51bp spread over 10-year treasuries, which is 8bps wider than the average spread over the last two years.  Activity in the SBA sector included activity in a variety of product offerings including 7(a) floaters and fixed-rate DCPC in addition to investor demand resulting from the SBIC auction.

 

Fixed-Rate SBIC Debentures




Fixed-Rate DCPC Pools



Floating-Rate 7(a) Pools



Government Guaranteed Loan Trading

Government-guaranteed USDA agricultural loans and SBA loans traded to financial institutions last week, but limited availability of supply has impacted activity recently.  As has been the case for some time, supply and not demand limits loan trading volumes.  The temporary disruption in new issuance has resulted in light secondary inventory levels for not only SBA investment pools, but guaranteed loans as well.



Dan Stimpson, CPA

Senior Vice President, Investment Strategies

Vining Sparks IBG, LP

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