SBA Update

May 22, 2017



Activity for floating-rate SBAs was strong last week, as multiple new issue pools hit the market.  Fixed-rate SBA activity was steady as the overall market rallied and investors picked up DCPC paper from the May auction held the previous week. The volume of government guaranteed loans continues to outpace last year which should foster new issuance later in the year.

 

Floating-Rate 7(a) Pools

 

Fixed-Rate (DCPC and SBIC) Pools

 

Government Guaranteed Loan Trading

 

New issue floating-rate SBA pools continue to trade well in the market, as investors look to diversify origination dates.  The May DCPC auction augmented supply for portfolio managers wanting to add a fixed-rate government-guaranteed component to their portfolios.  Loan origination are outpacing last year, which should help the formation of new pools later this year.

 

 

Greg Roll, CFA

Senior Vice President

Vining Sparks

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