SBA Update

May 29, 2018



SBA activity languished along with the balance of the bond market last week. While fixed-rate products volumes may have suffered a bit from the lower available yields as debt markets rallied, floaters should seemingly have at least held pace, as much of the market expects a short-term rate increase in June. Loan activity did pick up last week, as volume there follows availability more than demand or overall market activity levels.

 

Floating-Rate 7(a) Pools

 

Fixed-Rate (DCPC and SBIC) Pools

 

Government Guaranteed Loan Trading

 

 

With such a quiet bond market last week, a pullback in SBA volume was almost assured. Floaters inquiries should increase as a likely June rate hike by the Fed approaches. If so, par handle pools and equipment loan pools should return as the darlings of the sector. Fixed-rate SBA volumes might not resurge until next week, as the monthly DCPC auction occurs on that Thursday.

 



James Plunkett

Director of Investment Product Strategies

Vining Sparks

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