SBA Update

May 7, 2018



Activity in the SBA sector increased slightly last week from the prior, very slow week. Fixed-rate SBA volumes remained slow, with minimal yield curve movement and no monthly auctions to stir much investor interest. Activity improved slightly for 7(a) pools, as most investors’ outlooks for short-term rates favor floating-rate products.

 

Floating-Rate 7(a) Pools

 

 

 

Fixed-Rate (DCPC and SBIC) Pools

 

 

 

Government Guaranteed Loan Trading

 

Tepid weekly volume for the SBA sector last week resulted from a lack of fixed-rate issuance and only a modest pickup in pace by floater buyers. SBA floaters should enjoy the enhanced attention resulting from the upward path of short-term rates, with many investors anticipating another rate hike later this quarter. Fixed-rate volume should pick up this week with the monthly DCPC auction and stronger expectations of further rate hikes.

 

 



James Plunkett

Director of Investment Product Strategies

Vining Sparks

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