Company: RWT-PA
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0000930236-25-000007
Chunk: 114

Company: REDWOOD TRUST INC
Filing Date: 2025-03-03
Form: 10-K
Item: Item 16
Chunk 114
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23,660)$2,338,485 $(33,828)$1,977,483 Total Derivative Financial Instruments, Net (1)$22,343 $12,215,873 $(19,616)$2,628,677 (1)     For the purpose of this presentation, derivative assets and liabilities are presented on a gross and a net basis.The following table presents the market valuation gains and losses on our derivatives for the years ended December 31, 2024 and 2023.Table 12.2 – Market Valuation (Losses) Gains on DerivativesYear EndedYear Ended(In Thousands)December 31, 2024December 31, 2023Risk Management Derivatives (1)$(29,694)$(20,303)LPCs and IRLCs (2)9,571 22,600 Market Valuation (Losses) Gains on Derivatives$(20,123)$2,297 (1)Market valuation gains (losses) on risk management derivatives used to manage the mark-to-market risks associated with our Mortgage Banking operations are recorded in Mortgage banking activities, net and market valuation gains (losses) on all other derivatives are recorded in Investment fair value changes, net on our consolidated statements of income.(2)Market valuation gains (losses) on LPCs and IRLCs are recorded in Mortgage banking activities, net on our consolidated statements of income.Risk Management DerivativesTo manage, to varying degrees, risks associated with certain assets and liabilities on our consolidated balance sheets, we may enter into derivative contracts. At December 31, 2024, we were party to swaps and swaptions with an aggregate notional amount of $8.25 billion, TBA agreements with an aggregate notional amount of $1.35 billion, and interest rate futures contracts with an aggregate notional amount of $1.54 billion. At December 31, 2023, we were party to swaptions with an aggregate notional amount of 

F- 52

REDWOOD TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2024Note 12. Derivative Financial Instruments - (continued)

$50 million, TBA agreements with an aggregate notional amount of $1.79 billion, and interest rate futures contracts with an aggregate notional amount of $142 million For the years ended December 31