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Investment Fair Value Changes, Net
 9 Months Ended
Sep. 30, 2018
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, 2018 and 2017.
Table 19.1 – Investment Fair Value Changes
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(In Thousands)
 
2018
 
2017
 
2018
 
2017
Investment Fair Value Changes, Net
 
 
 
 
 
 
 
 
Changes in fair value of:
 
 
 
 
 
 
 
 
Residential loans held-for-investment, at Redwood
 
$
(17,063
)
 
$
2,881

 
$
(71,058
)
 
$
8,902

Fix-and-flip loans held-for-investment
 
53

 
—

 
53

 
—

Trading securities
 
6,314

 
607

 
2,429

 
30,676

Net investments in Legacy Sequoia entities (1)
 
(248
)
 
(1,045
)
 
(976
)
 
(3,842
)
Net investments in Sequoia Choice entities (1)
 
(943
)
 
(256
)
 
43

 
(256
)
Net investments in Freddie Mac K-Series entities (1)
 
511

 
—

 
511

 
—

Risk-sharing investments
 
(126
)
 
(267
)
 
(474
)
 
(985
)
Risk management derivatives, net
 
21,867

 
(1,592
)
 
82,391

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

 
—

 
—

 
300

Impairments on AFS securities
 
(33
)
 
(4
)
 
(89
)
 
(248
)
Investment Fair Value Changes, Net
 
$
10,332

 
$
324

 
$
12,830

 
$
9,990


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