J.P. Morgan's Latest RMBS Is All ARMS

J.P. Morgan is back with its second RMBS this month. The latest transaction, JPMMT 2015-5, pools 506 hybrid adjustable-rate mortgages (hybrid ARMs) totaling $489.6 million.

The 2015-5 features mostly (97%) First Republic-originated mortgages that have adjustable rates at five (30.6%), seven (65.8%) or ten (3.6%) years after the origination. Some 63.1% of the loans are interest-only for first 10 years since origination. The loans all have final 30-year maturity terms.