Business Segments · Interest Expense
Legacy Investments — Interest Expense
Redwood Trust Legacy Investments — Interest Expense decreased by 2.4% to $12.71M in Q1 2026 compared to the prior quarter. Year-over-year, this metric declined by 67.3%, from $38.85M to $12.71M. Over 2 years (FY 2023 to FY 2025), Legacy Investments — Interest Expense shows a downward trend with a -14.3% CAGR. This is a positive signal — lower values indicate better performance for this metric.
Analysis
StatementSegment
CategoryEfficiency
SignalLower is better
VolatilityModerate
First reportedQ1 2023
Last reportedQ1 2026May 7, 2026
Rolls up toInterest Expense
How to read this metric
Lower expense relative to assets indicates efficient financing or lower cost of capital.
Detailed definition
The cost of financing the legacy investment portfolio, primarily consisting of interest paid on debt obligations used to...
Peer comparison
Comparable to interest expense on non-recourse debt or warehouse facilities at peer mortgage REITs.
Metric ID:
rwt_segment_legacy_investments_interest_expenseHistorical Data
13 periods
| Q1 '23 | Q2 '23 | Q3 '23 | Q4 '23 | Q1 '24 | Q2 '24 | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Value | $39.20M | $39.20M | $39.20M | $39.20M | $38.83M | $39.86M | $38.45M | $23.23M | $38.85M | $32.90M | $30.53M | $13.02M | $12.71M |
| QoQ Change | — | +0.0% | +0.0% | +0.0% | -1.0% | +2.7% | -3.6% | -39.6% | +67.3% | -15.3% | -7.2% | -57.3% | -2.4% |
| YoY Change | — | — | — | — | -1.0% | +1.7% | -1.9% | -40.8% | +0.1% | -17.5% | -20.6% | -43.9% | -67.3% |
Range$12.71M – $39.86M
CAGR-31.3%
Avg YoY Growth-21.2%
Median YoY Growth-17.5%
Current Streak4 quarters decline
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Frequently Asked Questions
- What is Redwood Trust's legacy investments — interest expense?
- Redwood Trust (RWT) reported legacy investments — interest expense of $12.71M in Q1 2026.
- How has Redwood Trust's legacy investments — interest expense changed year-over-year?
- Redwood Trust's legacy investments — interest expense decreased by 67.3% year-over-year, from $38.85M to $12.71M.
- What is the long-term trend for Redwood Trust's legacy investments — interest expense?
- Over 2 years (2023 to 2025), Redwood Trust's legacy investments — interest expense has grown at a -14.3% compound annual growth rate (CAGR), from $156.82M to $115.30M.
- What does legacy investments — interest expense mean?
- Total interest costs incurred to finance legacy investments.