stickyimage

CPR Report: SBA 7(a) Actual Prepays Above 18%

October 30, 2018

CPR Report: SBA 7(a) Actual Prepays Above 18%

By Bob Judge
Editor, CPR Report

In September, total prepays, including paid excess principal (ACPR), came in at 18.85%, an 11% increase from last month’s reading of 16.92%.

After correcting for the excess principal being released from the MRF, pool prepays (CCPR) came in at 16.61%, up 11% from the previous reading of 14.98%.

Underlying loan level CPRs (LCPR) came in at 18.31%, also up 11% from the prior level of 16.56%.

As for the largest sector in the market, 20+ years to maturity, the ACPR came in at 20.54%, an increase of 12% from the previous reading of 18.32%. The CCPR came in at 18.38% versus 16.66% and the LCPR recorded 20.27%, up from 18.43%, previously.

The CDR calculations came out as follows:

Including excess (ACDR) was 2.50%, pool corrected (CCDR) was 2.20% and the loan-level (LCDR) was 2.42%.

As for the CRR, they came is as follows:

ACRR: 16.35%, CCRR: 14.41%, LCRR: 15.89%.

Regarding our maturity buckets, we saw 4 out of 7 buckets increase.

By order of magnitude, increases were seen in the actual data in 13-16 (+82% to ACPR 24.40%), 8-10 (+58% to ACPR 13.18%), 20+ (+12% to ACPR 20.54%) and 10-13 (+10% to ACPR 15.61%).

Decreases were seen in Fixed (-74% to ACPR 2.78%), 16-20 (-15% to ACPR 18.48%) and <8 (-4% to ACPR 14.43%).

As for the CCPR, we saw 5 buckets increase, with the largest one being: 13-16 (+87% to CCPR 22.92%), 8-10 (+50% to CCPR 10.80%), <8 (+27% to CCPR 9.93%), 10-13 (+13% to CCPR 13.23%) and 20+ (+10% to CCPR 18.38%).

Decreases were seen in Fixed (-73% to CCPR 2.64%) and 16-20 (-17% to CCPR 15.46%).

Lastly, for the LCPR, we also witnessed 5 increases, led by 13-16 (+85% to LCPR 24.47%), 8-10 (+50% to LCPR 11.70%), <8 (+26% to LCPR 11.19%), 10-13 (+13% to LCPR 14.54%) and 20+ (+10% to LCPR 20.27%).

Decreases were seen in Fixed (-73% to LCPR 2.80%) and 16-20 (-16% to LCPR 18.28%).

This month’s reading is the highest since the November, 2017 speed of 21.28%. While we expect some relief next month, it seems prepayments are poised to move higher in the months to come.

Download the CPR Report

Register for the 2018 SBA Secondary Market Summit
The 11th Annual Event for SBA Secondary Market Professionals!
One Day: Tuesday, December 4, 2018
Blank Rome LLP
1825 Eye Street NW
Washington, DC 20006

2 weeks ago by in . You can follow any responses to this entry through the | RSS feed. You can leave a response, or trackback from your own site.