JPMorgan Tapped by Fannie Mae for New Risk-Sharing Bonds

JPMorgan Chase & Co. is selling securities tied to almost $1 billion of mortgages in the latest version of bonds that allow home-loan giant Fannie Mae to share risks with debt investors.

The deal, called J.P. Morgan Madison Avenue Securities Trust, is similar to debt that government-backed Fannie Mae began issuing last year to transfer some of its potential losses to bond buyers, according to a presale report by Fitch Ratings. The credit grader is assigning a BBB- rating to a $19.8 million portion of the transaction, which also has a more-junior ranked $27.2 million class.