Redwood Trust: Book Value Likely To Decrease, But Not As Much As Agency REITs
Summary
- Redwood Trust investors will need to watch delinquency trends, which climbed last quarter.
- RWT's book value will likely decline as a result of rising mortgage rates, but not nearly to the extent of agency REITs.
- With the stock still trading well below book value, the stock remains a "Buy" for now.
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