Castlelake and Redwood Trust Inc (Redwood) have jointly announced that they have reached a strategic joint venture agreement to acquire up to $8 billion in high-quality jumbo mortgages.

This collaboration will combine Castlelake's professional expertise in alternative asset investment with Redwood's deep roots in the housing credit market, aiming to build a high-quality mortgage portfolio. The establishment of the joint venture marks a significant step for both institutions in expanding the scale of their housing finance businesses. Through this strategic initiative, both parties will focus on high-quality jumbo mortgage assets in the U.S. market, providing investors with more attractive risk-adjusted returns. This cooperation is expected to further enhance the overall competitiveness of both companies in the mortgage market.