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Investment Fair Value Changes, Net
 6 Months Ended
Jun. 30, 2019
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 six months ended June 30, 2019 and 2018.
Table 20.1 – Investment Fair Value Changes
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
(In Thousands)
 
2019
 
2018
 
2019
 
2018
Investment Fair Value Changes, Net
 
 
 
 
 
 
 
 
Changes in fair value of:
 
 
 
 
 
 
 
 
Residential loans held-for-investment, at Redwood
 
$
35,548

 
$
(15,010
)
 
$
63,656

 
$
(53,995
)
Residential bridge loans held-for-investment
 
(318
)
 
—

 
(621
)
 
—

Trading securities
 
18,442

 
(930
)
 
40,302

 
(3,885
)
Servicer advance investments
 
432

 
—

 
1,440

 
—

Excess MSRs
 
(65
)
 
—

 
(502
)
 
—

REO
 
(139
)
 
—

 
(139
)
 
—

Net investments in Legacy Sequoia entities (1)
 
(123
)
 
(720
)
 
(497
)
 
(728
)
Net investments in Sequoia Choice entities (1)
 
2,879

 
1,072

 
6,144

 
986

Net investment in Freddie Mac SLST entity (1)
 
8,037

 
—

 
14,402

 
—

Net investments in Freddie Mac K-Series entities (1)
 
3,246

 
—

 
6,365

 
—

Risk-sharing investments
 
(61
)
 
(209
)
 
(138
)
 
(348
)
Risk management derivatives, net
 
(64,740
)
 
16,742

 
(107,115
)
 
60,524

Impairments on AFS securities
 
—

 
(56
)
 
—

 
(56
)
Investment Fair Value Changes, Net
 
$
3,138

 
$
889

 
$
23,297

 
$
2,498


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