Investors have again shown their preference for pools of high-quality residential mortgage assets, as seen from the relatively tight pricing for a new issuer from Redwood Trust's Acacia. The CDO deal is underwritten by Greenwich Capital Markets.

The Acacia transaction is mostly static except for high-quality residential Alt-A MBS securities, which have a 2.25-year reinvestment period. Working in the deal's favor is that Redwood Trust (RWT) is a well-known REIT and a prolific home equity and residential A issuer.

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