Redwood Trust Inc. 9.00% Senior Notes Due 2029 (RWTO)

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach this security first as a lender, not as an owner of a business with a moat. The name is Redwood Trust Inc. 9.00% Senior Notes Due 2029, so the return depends on Redwood paying interest and principal, not on equity upside. The filed record is uneven. In fiscal 2024, the year ended 2024-12-31, the company earned $54.0 million, or $0.32 per diluted share. In fiscal 2025, the year ended 2025-12-31, it lost $70.0 million, or $0.63 per diluted share; fiscal 2023, the year ended 2023-12-31, had a $2.3 million loss. The quarterly path is still weak: fiscal Q1 2026, the quarter ended 2026-03-31, lost $5.5 million; fiscal Q2 2026, the quarter ended 2026-06-30, lost $1.1 million; fiscal Q3 2025, the quarter ended 2025-09-30, lost $7.7 million; and fiscal Q2 2025, the quarter ended 2025-06-30, lost $98.5 million. That pattern explains the computed Lynch category, TURNAROUND — loss in the latest year after earlier profits. I cannot assess revenue because the filed figures show revenue n/a. Balance-sheet ratios such as debt/equity are also n/a, so I cannot verify asset coverage or liquidity from this packet. The 9.00% coupon in the note's name is attractive only if the issuer can service it. At $21.30 on 2026-10-16, the price sits near the $20.57 low of its 52-week $20.57–$26.00 range; stock-style valuation metrics like P/E and P/B are not meaningful here and are N/A. A Graham-style investor would demand a margin of safety from asset coverage and cash flow, not just a high stated coupon. The trend of narrowing recent losses is encouraging, but one good quarter would not prove the turnaround.

In plain English: Redwood Trust is a real estate company, and the security here is a 9.00% bond-like note due in 2029. The business has swung between profits and losses, and the latest filed year, fiscal 2025, showed a $70.0 million loss; the most recent quarter, fiscal Q2 2026, also lost $1.1 million. The note price is $21.30, near the low end of its 52-week range, but the provided numbers do not let us judge its income return or safety like a stock.

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Data as of 2026-10-16 close · note generated 2026-10-20 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer