SBA Update

March 5, 2018

Activity in low- to moderate-premium SBA floaters increased slightly last week, as portfolio managers digest recent prepayment data and continue to anticipate further tightening by The Fed.  With supply being limited, activity has been tempered in fixed-rate investments lately, however depository managers will look to add DCPCs from the March auction later this week.  Loan trading activity in 2018 continues to be robust, with depositories adding fixed-rate government-guaranteed USDA loans to their portfolios.


Floating-Rate 7(a) Pools



Fixed-Rate (DCPC and SBIC) Pools




Government Guaranteed Loan Trading


Demand for lower dollar-priced floating-rate pools remains strong with a pickup in interest in moderately priced pools occurring as the prepayment picture clarifies. Despite strong demand, fixed-rate SBA product flows remain constrained by limited supply. Portfolio managers look to the DCPC auction later this week to satisfy their needs for fixed-rate SBAs.


Greg Roll, CFA

Senior Vice President

Vining Sparks

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