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.
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