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Investment Fair Value Changes, Net
 9 Months Ended
Sep. 30, 2017
Investments, Debt and Equity Securities [Abstract]  
Investment Fair Value Changes, Net
Investment Fair Value Changes, Net
The following table presents the components of Investment fair value changes, net, recorded in our consolidated statements of income for the three and nine months ended September 30, 2017 and 2016.
Table 18.1 – Investment Fair Value Changes
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(In Thousands)
 
2017
 
2016
 
2017
 
2016
Investment Fair Value Changes, Net
 
 
 
 
 
 
 
 
Changes in fair value of:
 
 
 
 
 
 
 
 
Residential loans held-for-investment, at Redwood
 
$
2,881

 
$
(655
)
 
$
8,902

 
$
22,161

Trading securities
 
607

 
8,898

 
30,676

 
3,728

Net investments in Legacy Sequoia entities (1)
 
(1,045
)
 
(255
)
 
(3,842
)
 
(2,086
)
Net investment in Sequoia Choice entity (1)
 
(256
)
 
—

 
(256
)
 
—

Risk sharing investments
 
(267
)
 
15

 
(985
)
 
(689
)
Risk management derivatives, net
 
(1,592
)
 
4,222

 
(24,557
)
 
(41,188
)
Valuation adjustments on commercial loans
held-for-sale
 
—

 
(307
)
 
300

 
(307
)
Impairments on AFS securities
 
(4
)
 
—

 
(248
)
 
(305
)
Investment Fair Value Changes, Net
 
$
324

 
$
11,918

 
$
9,990

 
$
(18,686
)

(1)
Includes changes in fair value of the residential loans held-for-sale, REO and the ABS issued at the entities, which netted together represent the change in value of our retained investments at the consolidated VIEs.