SBA Update

March 26, 2018



The SBA sector quieted down last week, as investors digested the prepayment numbers for floaters and boost of supply via the SBIC auction from the week prior. Considering the lack of new inputs, the business pace actually sustained itself surprisingly well, while supplying little in the way of news worthy print.

 

Floating-Rate 7(a) Pools

 

 

 

Fixed-Rate (DCPC and SBIC) Pools

 

Government Guaranteed Loan Trading

 

 

Demand for floating-rate pools, both near par priced and fuller coupon offerings with prices well above par, remained strong, buoyed by the Fed’s rate move and by clearer understanding of new prepayment patterns. Fixed-rate activity dropped versus the prior week as there were no auctions, though a considerable amount of activity occurred in secondary markets. Government-guaranteed loan activity continues to be limited by availability, as demand remains strong.

 



James Plunkett

Director of Investment Product Strategies

Vining Sparks

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