March 13, 2017
by Bob Judge
Editor, The CPR Report
Main Street Monday — SBA 7(a) Prepays Top 9%
In January, prepays rose by 41%, going above CPR 9% for the first time since November, 2015.
Double-digit increases in both defaults (CDR) and voluntary prepayments (CRR) led to the rise.
Specifically, defaults rose by 46% while voluntary prepayments moved up by 40% versus December numbers. While they increased significantly last month, defaults have remained below CDR 2% for 41 months in a row.
Turning to the details, overall prepayments rose by 41% to 9.58% from 6.80%, previously. In comparing YOY prepayment speeds for 2017 versus 2016, this year is running 24% above last year, albeit after only one month.