SBA Update

May 1, 2017



The SBA sector continues to see strong demand for floating-rate structures in both equipment and real-estate-backed pools.  The majority of activity was in new issue floating-rate pools.  Investments in fixed-rate SBA securities was limited, as inventory levels are sparse and portfolio managers wait for the May DCPC auction next week.  Loan trading activity was very high last week, as pool structurers compete for the limited supply of government guaranteed loans.

 

Floating-Rate 7(a) Pools

Fixed-Rate (DCPC and SBIC) Pools

 

Government Guaranteed Loan Trading

 

Loan trading activity continues to increase, as loan originations try to keep pace with the demand from pool structurers.  Floating-rate SBAs continues to experience heightened activity, with the focus on both equipment and real-estate-backed pools.


Greg Roll, CFA

Senior Vice President

Vining Sparks

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