Redwood Sells Debt to Fuel Growth, Will Other Jumbo Issuers Follow Suit?
March 14, 2013
Redwood Trust recently came to market with a $287.5 million convertible debt offering which was snatched up by investors a sign that not only is the real estate investment trust doing well with its jumbo securitization business, but other mortgage issuers might meet similar results if they need to borrow money in the capital markets. Mike McMahon, a managing director at the company, told Inside MBS & ABS that the jumbo issuer decided to tap the debt market as a way to support our investment activity for 2013. If we securitize $7 billion and retain the subs, we will need capital. Redwood hopes...