Redwood Trust price target lowered to $8 from $9 at JMP Securities

JMP Securities analyst Steven DeLaney lowered the firm’s price target on Redwood Trust (RWT) to $8 from $9 and keeps an Outperform rating on the shares as part of an earnings preview note for the Residential Mortgage REIT industry. The fourth quarter was characterized by a significant move higher in interest rates and a steepening of the yield curve, with 2-year Treasury yields increasing 60 basis points and 10-year Treasury yields increasing 79 bps, the analyst tells investors in a research note. For the sector, the firm generally expects book values to be lower in the fourth quarter, largely driven by the move in interest rates.