Company: RWT-PA
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0000930236-25-000029
Chunk: 343

Company: REDWOOD TRUST INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 343
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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 debt financing, non-recourse, non-marginable re-securitization debt, and recourse, marginable securities repurchase financing. At June 30, 2025, we had: CAFL securities with a fair value of $330 million that were financed with $265 million of non-marginable recourse debt through two subordinate securities financing facilities; Sequoia securities we owned from consolidated and unconsolidated Sequoia securitization trusts with a fair value of $477 million that were financed with $382 million of non-recourse re-securitization debt (ABS issued); real estate securities with a fair value of $167 million (including securities owned in consolidated securitization entities) that were financed with $93 million of recourse debt incurred through repurchase facilities; and $161 million of securities that were financed using a recourse residential MSR warehouse facility. The remaining $106 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 and CAFL term securities at June 30, 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 12 – Credit Statistics (1)June 30, 2025Sequoia Securities (2)CAFL Term Securities