June 2, 2015
By Bob Judge
Editor, CPR Report
In March, prepays stayed below 7%, remaining close to February levels.
Overall prepayments rose by 2% to 6.58%.
Defaults remain below 2% for 19 months in a row.
This reading was the 5th lowest since 1999.
Looking at the largest sector, we saw the 20+year maturity prepayment speed rise by 1% to 6.12% from 6.06%.
We saw speeds rise in four out of six categories of our maturity buckets. 2015 is shaping up to be a repeat of 2014, which is good news as we are seeing prepayment increases every year since 2012.
SBA 7(a) Fixed Rate Update
In March, fixed rate pools rose back above their floating rate cousins for the first time this year. This month, fixed rate prepay speeds came in at CPR 13.57%, an increase from the February reading of CPR 1.12%. For the second month in a row, we did not see any new fixed rate production.