Company: RWT-PA
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0000930236-25-000007
Chunk: 303

Company: REDWOOD TRUST INC
Filing Date: 2025-03-03
Form: 10-K
Item: Item 7
Chunk 303
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4.4)%(43,652)1,112,095 (3.9)%ABS issued - Freddie Mac K-Series (2)(16,708)388,671 (4.3)%(17,110)389,610 (4.4)%ABS issued - CAFL Term (2)(126,566)2,389,038 (5.3)%(135,166)2,555,269 (5.3)%ABS issued - CAFL Bridge (2)(35,191)661,635 (5.3)%(21,528)486,928 (4.4)%Debt Facilities(199,095)2,496,168 (8.0)%(201,985)2,534,539 (8.0)%Corporate Debt(70,964)776,475 (9.1)%(57,773)759,530 (7.6)%Total interest expense(842,556)14,691,066 (5.7)%(631,519)11,573,650 (5.5)%Net Interest Income$102,608 $92,943 

(1)Average balances for residential consumer loans held-for-sale and held-for-investment, residential investor loans held-for-sale and held-for-investment, multifamily loans held-for-investment, and trading securities are calculated based upon carrying values, which represent fair values. Average balances for AFS securities, debt facilities, corporate debt and certain ABS issued are calculated based upon amortized historical cost. Average balances for ABS carried at fair value are calculated based upon fair value.

(2)Interest income and interest expense at "Sequoia", "Freddie Mac SLST", "Freddie Mac K-Series", "CAFL Term", and "CAFL Bridge" reflect activity from consolidated VIEs. While we consolidate these entities for GAAP reporting purposes, economically, we earn interest income from the securities we own in these entities, which is represented by the net interest income (interest income less interest expense) from these consolidated entities presented in the table above.

(3)Real estate securities include trading securities consisting primarily of interest-only securities, which generate a higher cash interest yield. This interest income may be offset by a decline in fair value (recognized through investment fair value changes, net on our consolidated statements of income) related to the receipt of cash flows each period, resulting in a lower overall economic yield for these investments.

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