Note 12. Asset-Backed Securities Issued

The Sequoia and Acacia securitization entities issue ABS to acquire assets from us and from third-parties. Each series of ABS issued consists of various classes that pay interest on a monthly or quarterly basis. Substantially all ABS issued pay variable rates of interest, which are indexed to one, three, or six-month LIBOR. Some ABS issued pay fixed rates of interest or pay hybrid rates, which are fixed rates that subsequently adjust to variable rates. ABS issued also include some interest-only classes with coupons set at a fixed-rate or a fixed spread to a benchmark rate, or set at a spread to the interest rates earned on the assets less the interest rates paid on the liabilities of a securitization entity.

In March 2011, Redwood securitized $295 million of loans through our Sequoia program, with $281 million of ABS issued to third-parties. The components of ABS issued by consolidated securitization entities we sponsored at June 30, 2011 and December 31, 2010, along with other selected information, are summarized in the following table.

Asset-Backed Securities Issued



	June 30, 2011									December 31, 2010
(In Thousands)	Sequoia			Acacia			Total			Sequoia			Acacia			Total
Certificates with principal value	$	3,561,931		$	2,917,906		$	6,479,837		$	3,445,882		$	2,956,657		$	6,402,539
Interest-only certificates		9,922			—			9,922			15,587			—			15,587
Unamortized premium		1,470			—			1,470			1,726			—			1,726
Unamortized discount		(7,322	)		—			(7,322	)		(4,694	)		—			(4,694	)
Fair value adjustment, net		—			(2,644,581	)		(2,644,581	)		—			(2,653,580	)		(2,653,580	)
Total ABS Issued	$	3,566,001		$	273,325		$	3,839,326		$	3,458,501		$	303,077		$	3,761,578
Range of weighted average interest rates, by series		0.38% to 4.14%			0.76% to 1.89%						0.45% to 4.40%			0.76% to 1.88%
Stated maturities		2014 – 2047			2039 – 2052						2014 – 2047			2039 – 2052
Number of series		38			10						37			10

The maturity of each class of ABS issued is primarily determined by the rate of principal prepayments on the assets of the issuing entity. Each series is also subject to redemption (call) according to the specific terms of the respective governing documents. As a result, the actual maturity of ABS issued will often occur earlier than its stated maturity. At June 30, 2011, $3.79 billion of ABS issued ($6.43 billion principal value) had contractual maturities of over five years and $52 million of ABS issued ($52 million principal value) had contractual maturities of one to five years. Amortization of Sequoia deferred ABS issuance costs was $1 million for both the six months ended June 30, 2011 and 2010.

The following table summarizes the accrued interest payable on ABS issued at June 30, 2011 and December 31, 2010. Interest due on Sequoia ABS issued is settled monthly and interest due on Acacia ABS issued is settled quarterly.

Accrued Interest Payable on Asset-Backed Securities Issued


(In Thousands)	June 30, 2011		December 31, 2010
Sequoia	$	3,017	$	2,356
Acacia		2,792		2,911
Total Accrued Interest Payable on ABS Issued	$	5,809	$	5,267

The following table summarizes the carrying value components of the collateral for ABS issued and outstanding at June 30, 2011 and December 31, 2010.

Collateral for Asset-Backed Securities Issued


	June 30, 2011						December 31, 2010
(In Thousands)	Sequoia		Acacia		Total		Sequoia		Acacia		Total
Real estate loans	$	3,654,932	$	12,698	$	3,667,630	$	3,542,159	$	19,850	$	3,562,009
Real estate securities		—		293,308		293,308		—		327,919		327,919
REO		9,678		—		9,678		14,241		—		14,241
Restricted cash		283		30,287		30,570		331		21,790		22,121
Accrued interest receivable		6,824		2,352		9,176		6,264		2,735		8,999
Total Collateral for ABS Issued	$	3,671,717	$	338,645	$	4,010,362	$	3,562,995	$	372,294	$	3,935,289