Chris Abate: Yes.
Steve Delaney: We’ve been highlighting to clients the attractiveness and Redwood goes far beyond 70, whatever it is 75% of book value price to book. And we just use an overused term but we’re saying think about the strategic value. I think you went up this with your — the option value the franchise never hire. So with your permission, I might throw that strategic option value out their forms, see if anybody gets hooked on that one.
Chris Abate: Well, you’ve never needed our permission. So I [technical difficulty] use your judgment. But it is — we are trying to sift through the noise of rates. It’s hard. It’s hard on a quarter-to-quarter basis to see some of these opportunities. We just want to make sure that our shareholders do, because things are turning behind the scenes and the engagement we’ve had from all market participants, but especially banks has been, we haven’t seen this and probably the better part of two decades. So, it’s something that we’re very focused on and we do think that as the market stabilizes, you’ll start to see more and more activity. And, again, I think what you’ve heard from most people, most of the file is that, we’re looking for stability and rates.
I think, even at these higher for longer levels, I think if there’s stability, you’ll start to see more and more housing activity. So that’s that piece needs to come together for the market. And for us, we still have to take our lumps with fair value hits on portfolio assets that, frankly, are performing very well. But it is — things are definitely evolving in the markets and keeping us busy.
Steve Delaney: Well look forward to 2024 and beyond. Thank you for the comments,
Chris Abate: Thanks, Steve.
Operator: Thank you. Our next question comes from Eric Hagen with BTIG. Please go ahead.
Eric Hagen: Hey, thanks. How are we doing? Maybe just a couple more on the jumbo. Was there a mark-to-market impact from interest rates for the jumbo loans that are held for investment? How did that contribute to performance? How sensitive? Would you even say that that portfolio could be even further backups and interest rates from here? And then if you guys wanted to add capital to the jumbo business, like where do you think you’d source that incremental capital from like, which bucket would you maybe take it from? And how much liquidity do you think you consumed when you really start to scale up the jumbo pipeline?
Brooke Carillo: I can start, Eric and feel free to chime in. The margins that we reference on the quarter and making mortgage banking income were all inclusive of any fair value changes on the loan pipeline. But in my prepared remarks, I mentioned, we were hedged with TBA, this quarter, which was a significant tailwind for us in terms of how that book performed over the course of the quarter. And so, our interest rate risk management was really notable on the quarter in the right way. In terms of additional capital to fund that business, that is one of the asset classes, that really is squarely underscoring the remarks that Chris and Dash made around private capital interest in our platform. The private market is certainly paying a premium for the quality of collateral that we’re buying today and sourcing, as reflected in the execute execution of our securitization, but also in the breadth of discussions that we’re having around folks interested in partnering with us on aggregating jumbo today.
In addition, I would say just regular way of bank warehouse demand continues to be really strong for that kind of collateral and the advance rates that we’re seeing are reflective of that today, too.
Eric Hagen: Okay, great. Thank you, guys.
Operator: Thank you. Our next question comes from the line of Kyle Joseph with Jefferies. Please go ahead.
