JPMorgan is relying on someone else to keep “skin in the game” of its next offering of commercial mortgage bonds.  

An entity controlled by Starwood Mortgage Capital will hold on to 5% of the economic risk of the $1.09 billion J.P. Morgan Chase Commercial Mortgage Securities Trust 2017-JP5 through what is known as an   “eligible horizontal residual interest,” according to Fitch ratings. That means Starwood will retain 5% of the fair value of each class of securities to be issued in the transaction.

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