SBA Update

March 19, 2018



Last week’s calendar featured prominent events for both fixed- and-variable rate SBA markets. March prepayments speeds slowed in an unsurprising way considering seasonal factors and day count, while the semi-annual SBIC auction offered a major boost at a time when flows in the fixed-rate SBA sector had been suppressed by a lack of supply. Overall, prices and trends for both fixed- and floating-rate products remained in line with recent trends.

 

Floating-Rate 7(a) Pools

 

 

 

 

Fixed-Rate (DCPC and SBIC) Pools

 

 

Government Guaranteed Loan Trading

 

 

Demand for floating-rate pools with prices well above par increased, as prepayment patterns clarified and overall speeds slowed somewhat. Meanwhile, lower-priced pools, offered near par, also underwent strong demand as the expected increase in short-term rates this week boosted their likely yields. The SBIC auction also helped to fill the recent dearth of supply for investors seeking fixed-rate SBAs.

 

 



James Plunkett

Director of Investment Product Strategies

Vining Sparks

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