SBA Update

October 15, 2018



SBA activity last week was slower than recent levels due to several factors.  The DCPC auction last Thursday, which included 20yr and 25yr terms, priced at tighter spreads than the prior month, but offer significantly higher debenture rates of 3.77% and 3.89%.  Investor activity is expected to also pick up in floating rate equipment pools as yields on SBA floating rate pools moved higher over the last month and are likely to move higher if the Fed raises rates later this year. Most vintages of both equipment and real estate SBA 7(a) pools posted slower speeds this month than for August and September.

 

Floating-Rate 7(a) Pools

Fixed-Rate DCPC Pools



Government Guaranteed Loan Trading

Government-guaranteed USDA agricultural loans and SBA loans actively traded to financial institutions last week.  As has been the case for some time, supply and not demand limits loan trading volumes.

 



Dan Stimpson, CPA

Senior Vice President

Vining Sparks

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