Pursuits
JPMorgan Tapped by Fannie Mae for New Risk-Sharing Bonds
This article is for subscribers only.
JPMorgan Chase & Co.’s sale of a new type of mortgage-linked bonds is the best glimpse yet into a possible future of the $9.4 trillion U.S. home-loan market.
The $47 million of securities raised cash from investors this week that can be used to offset some of Fannie Mae’s losses on its mortgage guarantees. The transferring of risk from almost $1 billion of loans packaged into separate Fannie Mae bonds resembles a model envisioned by bipartisan legislation passed by a Senate committee this year and endorsed by the Obama administration.