SOURCE: BoeFly, LLC

BoeFly, LLC

July 08, 2010 09:10 ET

BoeFly Publishes 2Q/2010 Loan Sale Index

Loan Sale Premiums Hit an All Time High, Suggesting Continued Strengthening of the US Economy

NEW YORK, NY--(Marketwire - July 8, 2010) -  BoeFly, LLC, the premier online marketplace connecting lenders with business borrowers and secondary market buyers, today announced the publication of its BoeFly Loan Sale Index (SBA) for the second quarter of 2010. The BoeFly Loan Sale Index tracks the month-to-month variation in premiums paid on the secondary market sales of SBA-guaranteed loans and is a key indicator of the health of small business lending.

BoeFly Loan Sale Index -- 2Q/2010 Highlights:

  • During Q2, 2010, loan sale premiums hit an all time high during the Index's history, as prices surged in May and held strong through the end of the quarter. In June, 10-year deals continued to rise while 25-year deals leveled off.
  • The BoeFly Loan Sale Index for 10-year Prime+2 loans followed its May gain of 130 basis points with a 40 basis point gain in June to end the quarter at 107.9%, a new record high. 25-year Prime+2 loans followed their May surge by holding steady in June and ending where they started the month, tying May's record high of 109.7%.
  • SBA fees on high premiums did not suppress prices either, as individual transactions also achieved record highs in June. This included a 25-year deal fetching 112.38%, and an 11-year deal crossing the 110 barrier to settle at 110.289%.

The BoeFly Loan Sale Index (SBA) measures actual loan sale data from hundreds of banks -- of all sizes and geographies -- as they transact with buyers in the market. As the first and only online exchange to seamlessly connect all parties involved in commercial loan transactions, BoeFly is uniquely positioned to provide this data. The insight provided by BoeFly Loan Sale Index (SBA) is tied to the principle that lenders are incented to originate more new loans when secondary market prices rise, and slow origination when secondary market prices fall.

  "We are extremely encouraged to see an increase in premiums paid for SBA guaranteed loans. Not only does this represent an increase in demand for the purchase of small business loans, but it allows banks to re-load their coffers to lend to other viable small businesses. This very cycle is critical to the creation of jobs and the recovery of the U.S. economy," said Robert Tannenhauser, President of BoeFly, LLC.  

ABOUT THE BOEFLY LOAN SALE INDEX (SBA):
The BoeFly Loan Sale Index (SBA) measures premiums paid on secondary market loan sales on a monthly basis. Based on aggregated transaction data from BoeFly, the only marketplace where lenders can connect with business borrowers and secondary market buyers, the Index provides an estimate of the premium a newly issued, 10 or 25 year Prime + 2% loan would fetch. The Index represents aggregated data from actual loan sales by banks. Members of BoeFly have access to full transaction detail on all loans presented for sale. With only slight changes in loan structure driving premiums, lenders rely on BoeFly loan sale data to optimally structure deals in light of what the market is currently valuing. BoeFly is the only service to provide actual bid levels based on loans presented for sale on BoeFly.

ABOUT BOEFLY
BoeFly is the only online marketplace harnessing technology to dramatically simplify the execution of commercial transactions, including loan origination and sales. BoeFly revolutionizes commercial transactions by seamlessly connecting all parties, including lenders, borrowers, investors, buyers and sellers to a potential transaction and facilitating the efficient completion of these transactions. For small business lenders, BoeFly also provides the ability to sell the government-guaranteed portion of their loans on the secondary market to investors and Small Business Administration (SBA) loan pool assemblers, freeing up liquidity for even more small business lending.

Key to the success of BoeFly is the site's dynamic compatibility technology, which matches parties based on a specific set of criteria. Also, to help BoeFly's subscribers complete transactions, BoeFly offers access to service providers in a wide variety of professions -- from appraisers to closing attorneys to environmental consultants.

To learn more about BoeFly please visit www.boefly.com

Contact Information

  • Media Contact:
    Rick Keating
    Keating and Co.
    212.925.6900 & 917.767.2400
    Email Contact