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Investment Fair Value Changes
 12 Months Ended
Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]  
Investment Fair Value Changes Investment Fair Value Changes
The following table presents the components of Investment fair value changes, net, recorded in our consolidated statements of income for the years ended December 31, 2019, 2018 and 2017.
Table 20.1 – Investment Fair Value Changes
 
 
Years Ended December 31,
(In Thousands)
 
2019
 
2018
 
2017
Investment Fair Value Changes, Net
 
 
 
 
 
 
     Changes in fair value of:
 
 
 
 
 
 
Residential loans held-for-investment, at Redwood
 
$
58,891

 
$
(29,573
)
 
$
(5,765
)
Single-family rental loans held-for-investment
 
272

 
—

 
—

Residential bridge loans held-for-investment
 
(2,139
)
 
(29
)
 
—

Trading securities
 
56,046

 
(8,055
)
 
39,526

Servicer advance investments
 
3,001

 
(701
)
 
—

Excess MSRs
 
(3,260
)
 
1,823

 
—

Shared home appreciation options
 
842

 
—

 
—

REO
 
(1,045
)
 
—

 
—

Net investments in Legacy Sequoia entities (1)
 
(1,545
)
 
(1,016
)
 
(8,027
)
Net investments in Sequoia Choice entities (1)
 
6,947

 
443

 
(323
)
Net investment in Freddie Mac SLST entities (1)
 
27,206

 
1,271

 
—

Net investments in Freddie Mac K-Series entities (1)
 
21,430

 
931

 
—

Net investments in CAFL entities (1)
 
(3,636
)
 
—

 
—

Risk-sharing and other investments
 
(341
)
 
(434
)
 
(1,484
)
Risk management derivatives, net
 
(127,169
)
 
9,740

 
(12,842
)
Valuation adjustments on commercial loans held-for-sale
 
—

 
—

 
300

Impairments on AFS securities
 
—

 
(89
)
 
(1,011
)
Investment Fair Value Changes, Net
 
$
35,500

 
$
(25,689
)
 
$
10,374


(1)
Includes changes in fair value of the loans held-for-investment, REO and the ABS issued at the entities, which netted together represent the change in value of our retained investments at the consolidated VIEs.