SBA Update

May 8, 2017



Activity in the SBA sector cooled off a bit last week despite ongoing strong demand for floating-rate structures. Without an influx of new pools, supply became a limiting factor. As anticipation waned for most of the balance of the bond market with the FOMC announcement and important economic releases behind, investors and traders still must anticipate pending action in the fixed-rate SBA products as the monthly DCPC auction is not until Thursday and secondary supply is low.

Floating-Rate 7(a) Pools

Fixed-Rate (DCPC and SBIC) Pools

 

 

Government Guaranteed Loan Trading

Loan trading activity represnted a larger-than-usual fraction of activity last week as securty activity waned in part due due to tight supply for floating-rate pools. The DCPC auction should push security activity back to the forefront this week, as would any new issue pool announcements.

 


James Plunkett

Director of Investment Product Strategies

Vining Sparks

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