Redwood Sells $424 Million of Mortgage Debt at Wider Spreads
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Redwood Trust Inc. sold $424 million of bonds tied to new U.S. home loans without government backing at wider relative yields as issuance soars this year.
The offering completed today by Redwood, a specialist in so-called jumbo mortgages, included $299 million of debt that priced to yield 2.82 percent, or 1.90 percentage points more than benchmark swap rates, according to a person familiar with the deal who asked not to be named without authorization to speak publicly about the transaction.