SBA 7(a) Prepays Rise 5% in April


June 10, 2013

bobjudgeIn April, prepays rose slightly, but stayed below 6% for the second month in a row after starting the year with two +7% prints.

The increase was based on slight increases in both defaults and voluntary prepayments.

As for the detail, overall prepayments rose 5.17% to 5.86% from 5.57% in March.

In comparing prepayment speeds for the first month of 2013 to the same period in 2012, we see that this year continues to run 25% ahead of 2012, with YTD CPRs at 6.67% versus 5.33%.

As for the largest sector of the market, 20+ years to maturity, prepayment speeds rose by 5.47% to 5.19% from 4.92% in March.

Turning to the CPR breakdown, the default CPR rose by 10% to 2.28% from 2.07%. This reading continues a ten month string of sub-3% readings for defaults.

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