Company: RWT-PA
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0000930236-25-000029
Chunk: 89

Company: REDWOOD TRUST INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 89
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4Level in Fair Value HierarchyCarryingValueEstimated FairValueCarryingValueEstimated FairValue(In Thousands)AssetsResidential investor loans held-for-sale (1)3$25,233 $25,233 $— $— Cash and cash equivalents1301,979 301,979 245,165 245,165 Restricted cash1146,247 146,247 67,762 67,762 LiabilitiesDebt obligation facilities and other financing2$3,011,683 $3,012,578 $2,818,292 $2,819,393 ABS issued, net3270,814 271,687 390,674 392,344 Convertible notes, net1367,021 368,220 365,739 365,455 Trust preferred securities and subordinated notes, net3138,883 86,490 138,860 93,465 Senior Notes1227,281 229,270 139,989 146,716 Guarantee obligations (2)32,053 2,770 2,806 3,204 (1)Residential investor loans reported at lower of cost or market for which the carrying value approximates fair value at June 30, 2025.(2)These liabilities are included in Accrued expenses and other liabilities on our consolidated balance 

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REDWOOD TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2025(Unaudited) Note 6. Fair Value of Financial Instruments - (continued)

 During the three and six months ended June 30, 2025, we elected the fair value option for $13 million and $21 million of securities, $2.98 billion and $5.31 billion (principal balance) of residential consumer loans, and $432 million and $893 million (principal balance) of residential investor loans. Additionally, during the three and six months ended June 30, 2025, we elected the fair value option for $4 million and $6 million of newly originated HEI.Nonrecurring Fair ValuesWe measure the fair value of certain assets and liabilities on a nonrecurring basis when events or changes in circumstances indicate that the carrying value may be impaired. Adjustments to fair value generally result from the write-down of asset values due to impairment. REO in Other Assets and Liabilities are classified as Level 3 in