Redwood Trust, Inc. (NYSE:RWT) Q4 2022 Earnings Call Transcript

Dash Robinson: Yes. So, the portfolio we securitized was probably among the more season that we’ve ever securitized, someone else asked the question. I think we typically securitized jumbos within a month or two. As you can probably glean by the coupon these were a bit more seasoned than just we saw a market early January. And securitize them and as you recall, Steve, the pieces that we keep from those Sequoia deals tend to be a lot thinner. And so yes, the piece we cap was sort of in that low- to mid-teens, contacts. But it was sort of 1% or less of the capital structure. And if you look at our current coupon, as I think Chris would have hit on it. So if you look at the model, mid high sixes, note rates, just from a term perspective. Should be able to get you there, the challenge is with the rates, stability, and all of that, and the consumer demand, just getting to actually be able to do that.

Steve DeLaney: Yes, that makes sense. And I appreciate it. Chris’ comments about, this volatility and people just decide, okay, let’s wait it out. And but we get into the spring people need houses. I think the purchase side will pick up and it’s nice that you’ve tested the waters here. Everybody knows the SMT brand, and we’ll see what the rest of the year brings, but I hope we’ll get some a little more momentum in the purchase market for sure. Thanks for the comments.

Dash Robinson: Thanks Steve.

Operator: Thank you. And ladies and gentlemen, that was our final questions for today. That also concludes today’s conference call. All parties may now disconnect. Have a great evening.