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Investment Fair Value Changes, Net
 3 Months Ended
Mar. 31, 2020
Investments, Debt and Equity Securities [Abstract]  
Investment Fair Value Changes, Net Investment Fair Value Changes, Net
The following table presents the components of Investment fair value changes, net, recorded in our consolidated statements of income (loss) for the three months ended March 31, 2020 and 2019.
Table 20.1 – Investment Fair Value Changes
 
 
Three Months Ended March 31,
(In Thousands)
 
2020
 
2019
Investment Fair Value Changes, Net
 
 
 
 
Changes in fair value of:
 
 
 
 
Residential loans held-for-investment at Redwood
 
$
(93,636
)
 
$
28,108

Single-family rental loans held-for-investment
 
(23,028
)
 
—

Residential bridge loans held-for-investment
 
(38,602
)
 
(303
)
Trading securities
 
(263,325
)
 
21,860

Servicer advance investments
 
(6,062
)
 
1,008

Excess MSRs
 
(9,494
)
 
(437
)
Shared home appreciation options
 
(7,554
)
 
—

REO
 
(498
)
 
—

Net investments in Legacy Sequoia entities (1)
 
(391
)
 
(374
)
Net investments in Sequoia Choice entities (1)
 
(69,669
)
 
3,265

Net investments in Freddie Mac SLST entities (1)
 
(142,162
)
 
6,365

Net investments in Freddie Mac K-Series entities (1)
 
(86,509
)
 
3,119

Net investments in CAFL entities (1)
 
(67,846
)
 
—

Risk-sharing and other investments
 
(1,389
)
 
(77
)
Risk management derivatives, net
 
(59,142
)
 
(42,375
)
Credit losses on AFS securities
 
(1,525
)
 
—

Investment Fair Value Changes, Net
 
$
(870,832
)
 
$
20,159


(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 investments at the consolidated VIEs. For certain Freddie Mac K-Series entities, includes the impact of sales of underlying securities and subsequent deconsolidation of these entities for the three months ended March 31, 2020.
For the three months ended March 31, 2020, Investment fair value changes, net includes $274 million of net realized losses associated with the sales of loans and securities and the settlement of derivatives. These realized amounts included, among other items, $129 million associated with trading securities, $72 million associated with investments in Freddie Mac K-Series entities, and $59 million associated with risk management derivatives. The remaining changes, totaling $597 million, were unrealized and associated with assets and liabilities we continued to hold at March 31, 2020.