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Redwood Trust to Sell First Mortgage Bonds This Year

Redwood Trust Inc., the biggest issuer of U.S. home-loan bonds without government backing last year, is ending its four-month absence from a market that’s all but evaporated as banks compete with debt investors for the extra yield offered by private-label mortgages.

Redwood, which specializes in jumbo mortgages, is planning a sale tied to 429 loans with outstanding balances of $347.3 million, Fitch Ratings said today in a presale report. The Mill Valley, California-based firm is including “fully-documented loans to borrowers with strong credit profiles, low leverage and substantial liquid reserves,” the credit grader said.