Redwood Trust Inc. is having a spectacular run. Its shares have returned 83% in the past year and there have been zero defaults among the $4 billion of jumbo loans it packaged and sold as bonds since 2010.
Business for the real estate investment trust is poised to pick up in 2013 as the U.S. housing rebound lifts California and East Coast cities where Redwood finds its mortgages. “The jumbo market is along both coasts, and last we checked they aren’t making any more ocean,” Mike McMahon, managing director at Mill Valley, Calif.-based Redwood, said in a telephone interview. “We expect 2013 to be another good year.”