Redwood Trust Inc. is reportedly in the process of completing its fifth non-agency issuance of the year, selling $297 million in bonds tied to new jumbo mortgages.
Bloomberg News, citing a ‘person familiar with the transaction,’ reports that the Mill Valley, Calif.-based company's bonds brought in 102.3 cents on the dollar to yield 1.96% at forecasted prepayment speeds, or 1.1 percentage points more than benchmark swap rates. Royal Bank of Scotland PLC is managing the offering.
Redwood Trust continues to be the primary player in the non-agency market, with eight issuances in the past two years. Earlier this year, Credit Suisse Group AG entered the market with two offerings.