SBA Update

May 30, 2017

The holiday-shortened week, coupled with the anticipation of the release of The Fed’s May meeting minutes set the stage for very little activity in trading of SBA securities.  Recent activity for floating-rate SBAs has been strong, as investors anticipate a continued increase in short-term rates.  Fixed-rate SBA activity has also been steady as portfolio managers look to 20-year DCPC for yield in the government guaranteed sector. 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

Recent new issue floating-rate SBA pools continue to trade, as investors look to diversify origination dates.  Portfolio managers wanting to add a fixed-rate component to their portfolios will have a chance next week, June 8th, when the June 20yr DCPC prices.  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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