Company: RWT-PA
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000930236-25-000020
Chunk: 158

Company: REDWOOD TRUST INC
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 1
Chunk 158
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31, 2025, our securities owned at Redwood and in consolidated entities consisted of fixed-rate assets (98%), adjustable-rate assets (<1%) and hybrid assets that reset within the next 15 months (2%). 

We sold $14 million of securities in the first quarter of 2025. In April 2025, we sold an additional $50 million of non-strategic, third-party securities. Strategically, we will look to continue reducing our exposure to our investment portfolio, namely legacy bridge and third-party investments. This could result in an approximate rotation of approximately 20% of capital toward our operating platforms and retained operating investments throughout the remainder of 2025.

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We directly finance our holdings of real estate securities with a combination of recourse, non-marginable term debt financing, non-recourse, non-marginable re-securitization debt, and recourse, marginable securities repurchase financing. At March 31, 2025, we had: CAFL securities with a fair value of $320 million that were financed with $267 million of non-marginable recourse debt through a subordinate securities financing facility; re-performing loan securities with a fair value of $264 million (including securities owned in consolidated securitization entities) that were financed with $139 million of non-recourse securitization debt (ABS issued); Sequoia securities we owned from consolidated and unconsolidated Sequoia securitization trusts with a fair value of $331 million that were financed with $276 million of non-recourse re-securitization debt (ABS issued); real estate securities with a fair value of $314 million (including securities owned in consolidated securitization entities) that were financed with $236 million of recourse debt incurred through repurchase facilities; and $107 million of securities that were financed using a recourse residential MSR warehouse facility. The remaining $200 million of our securities, including certain securities we own that were issued by consolidated securitization entities, were financed with capital.

The following table summarizes the credit characteristics of Sequoia securities, CAFL term securities and SLST (Re-performing loan) securities at March 31, 2025. This table includes both our securities held on balance sheet and our economic interest in securities we own in securitizations we consolidate in accordance with GAAP.

Table 13 – Credit Statistics

March 31, 2025 (1)Retained Operating InvestmentsThird Party InvestmentsSequoia Securities (2)CAFL Term