Redwood Trust on Tuesday closed its second Jumbo MBS deal within 10 months, boasting that the economics on the transaction support private-sector financing of prime mortgages at rates within 0.5% of Fannie Mae/Freddie Mac instruments.

In a statement, Redwood's chief operating officer Brett D. Nicholas said the bond illustrates how private sector firms can finance residential mortgages without government backing — and at rates attractive to both borrowers and investors.

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