Company: RWT-PA
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0000930236-25-000029
Chunk: 37

Company: REDWOOD TRUST INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 2
Chunk 37
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 639 Effect of principal payments (1)(95)(2,449)— — (132)(2,676)Change in fair value, net(1,486)(30,619)3,016 414 (21,884)(50,559)Ending Fair Value (2)$137,134 $610,537 $330,340 $35,977 $127,863 $1,241,851 

78

For the Six Months Ended June 30, 2025Retained Operating InvestmentsThird-Party Portfolio InvestmentsTotalSequoia Securities on Balance SheetConsolidated Sequoia SecuritiesConsolidated CAFL SecuritiesConsolidated Multifamily SecuritiesOther Third-Party Securities(In Thousands)Beginning fair value$139,683 $418,908 $326,074 $35,163 $265,540 $1,185,368 Acquisitions— 249,053 — — 22,087 271,140 Sales— — — — (115,281)(115,281)Gains on sales and calls, net— — — — 1,206 1,206 Effect of principal payments (1)(171)(4,915)— — (258)(5,344)Change in fair value, net(2,378)(52,509)4,266 814 (45,431)(95,238)Ending Fair Value (2)$137,134 $610,537 $330,340 $35,977 $127,863 $1,241,851 

(1)The effect of principal payments reflects the change in fair value due to principal payments, which is calculated as the cash principal received on a given security during the period multiplied by the prior quarter ending price or acquisition price for that security.

(2)At June 30, 2025, $97 million of Sequoia Securities and $108 million of Other Third-Party Securities were used as hedges for our Sequoia Mortgage Banking operations, and were included in our Sequoia Mortgage Banking segment. At June 30, 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 directly finance our holdings of real estate securities with a combination of recourse, non-marginable term