Estimate Prepayment Speeds
BancLab’s SecuritizationInsight model forecasts voluntary and
involuntary prepayment speeds for small business loan securitizations.
Both poolers and investors typically rely
on aggregate market statistics to make investment decisions. However, aggregate statistics cannot capture
the unique risk profile of each pool, nor do they factor in the impact of changing
macroeconomic conditions on prepayment and default rates.
SecuritizationInsight uses a multi-factor regression model, which encompasses borrower and loan characteristics as well as macroeconomic
, to project prepayment speeds for securitized pools. SecuritizationInsight draws from BancLab’s rich dataset of more than 1 million small business loans, 460,000
prepayments, and nearly 170,000 defaults dating back over two decades.
BancLab has enhanced SecuritizationInsight to reflect changes to the SBA’s Secondary Market
Guaranty (SMG) program, and we continue to update the model with our ongoing
assessments of prepayment penalty impacts.
If you'd like to learn more about SecuritizationInsight, or any of our