Is Redwood Trust a Buy?
The period from March through June was an incredible challenge for the mortgage real estate investment trusts (REITs). The COVID-19 crisis upended financial markets, particularly in mortgage-backed securities. The markets seized up and became illiquid, forcing just about every mortgage REIT to sell assets at a loss in order to meet margin calls from bankers. Eventually the Fed intervened, buying up massive amounts of agency mortgage-backed securities in an attempt to stabilize the markets.
Now that the dust has settled, most mortgage REITs look quite different than they did at the beginning of 2020. How did Redwood Trust (NYSE: RWT) fare?
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Source Fool.com
