J.P. Morgan Securities has hired Greg Boester as an adjustable rate mortgage securities (ARMS) trader. He fills a newly created slot in the firm's residential mortgage-backed securities trading operation. He will trade the non-agency, or whole loan, ARMS sector, says division chief Kevin Finnerty. Boester joins from Lehman Brothers. He is the second ARMS trader hired away from Lehman by JPM in the last several weeks, joining former colleague John Horner (BW, 3/3), who trades the 15-year and agency ARMS sectors. Boester is a v.p. and will jointly report to pass-through trading chief Bill King and ARMS trading boss Tom Wiles.
At Lehman, Boester reported to collateralized mortgage obligation, whole loan and ARMS trading chief Dave Sherr. Sherr says Boester will be replaced internally, although he declined to specify by whom. He also says that "Greg is a really good guy and does have a future trading MBS, but he's just a junior trader and we'll be able to cover this one easily." He says that Lehman "has a deep bench" and that "no one here is reading anything into their (Horner and Boester's) departures."