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Friday, June 13, 2025
 

MANAGING DIRECTOR:
Scott Carrithers
 
PORTFOLIO SALES AND SERVICE:
Chris Thompson • Sean Doherty • Mark Tranckino • Brian Schaff
Natalie Regan • Aaron Stoffer • David Farris • Jeff Macy 
Josh Kiefer • Todd Czinege • Trey Valentine • Cody Kreutziger

US Treasury Market
Date 1 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr
06/06/25 4.23 4.34 4.29 4.15 4.04 4.02 4.12 4.31 4.51 5.00 4.97
06/09/25 4.25 4.35 4.30 4.14 4.00 3.98 4.08 4.27 4.48 4.97 4.94
06/10/25 4.24 4.34 4.30 4.12 4.02 4.00 4.09 4.27 4.47 4.96 4.93
06/11/25 4.25 4.36 4.29 4.07 3.95 3.92 4.02 4.21 4.42 4.93 4.92
06/12/25 4.19 4.37 4.28 4.06 3.91 3.87 3.98 4.15 4.36 4.86 4.84

The data in the table above is static as of the time it was pulled, so rates may have changed. Treat all data in this table and PMR as indications only and availability is always subject to change. This information was pulled manually from sources we believe to be reliable. New source, as of 12/12/2022, Bloomberg, L.L.P.  As of: close of business 6/12/2025.
                                                                                                                                                                                      

Small Business Association 7(a) “SBA” Pools
 
A potential investment option for bank portfolios to consider are Small Business Association SBA pools. These pools are floating rate in nature and provide a capless coupon that adjusts on a quarterly basis. At the bottom of an interest rate cycle, -2 standard deviation or greater, we favor increasing our allocation to floating rate securities as nominal rates remain low.  Conversely at the top of an interest rate cycle, +2 standard deviations or greater, a capless floater such as an SBA pool we would decrease our allocation to as the coupon will fall with prevailing market rates.  Below is a high-level description of the structure of SBA program.  
 
 
Below is an example of an actual SBA pool as shown on Bloomberg.  Its key to understand that SBA are typically quoted by the street at 10-12 CPR, however prepayments can vary greatly over time.  We find that typically SBA pools pay between 14-18+ CPR over the life of the security.  This can greatly impact projected yields and margin and should be well understood by investors, especially those with large premiums.  Generally, SBA pools origination is bifurcated between 100-102 dollar prices or higher premiums 106-114.   Be careful with higher premiums as increased CPRs can lower your yield.
 




This information is intended for institutional investors only. The material provided in this document/presentation is for informational purposes only and is intended solely for private use. Past performance is not indicative of future results. This material is not intended as an offer or solicitation for the purchase or sale of any financial instruments.

•Not FDIC Insured •No Bank Guarantee •May Lose Value