Redwood's Revenue Plummets

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Redwood Trust's (RWT Quote) third-quarter fiscal 2008 revenue plunged 40.4% to $132.50 million from $222.22 million in the prior year's quarter. Interest income dipped 40.5% to $131.19 million from $220.33 million, due to lower interest from real estate loans and securities.

Total interest expense declined 44.3% to $93.07 million from $167.12 million due to lower expense related to the issuing of asset-backed securities. As a result, net interest income decreased 28.4% to $39.43 million from $55.10 million, primarily due to a $11.00 million decrease in interest income from securities held at Redwood as a result of higher credit losses, slower prepayments and lower interest rates. ...