I have been watching the price of MBS AAA and AA tranches rise 25% to 35% from the averages during the April to June time frame to now. While I wasn't a real fan of the heavy issuance of RWT stock early this year, the increase in value of the MBS assets RWT purchased with the stock issue proceeds has changed my opinon. Management made a very bold and correct call in issuing all that stock.

It will be interesting to read any comments in the third quarter Redwood Review regarding the impact this has had on both earnings and book value.