Redwood Trust Preferred A: Downside Ahead From Higher Rates (Rating Downgrade)
Redwood Trust's preferred shares are facing potential downside due to rising long-term interest rates. The shares currently yield 10%, but their upside is limited and they carry high duration risk. A rating downgrade has been issued in light of these concerns.
- ▪Redwood Trust's preferred shares yield 10%.
- ▪The shares offer limited upside and high duration risk as long-term rates rise.
- ▪A rating downgrade has been issued for the preferred shares.
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