So who says the securitization market is dead? We've seen some interesting moves by Blackrock, which intends to offer a new type of RMBS. Now comes Redwood Trust, which has accumulated $160 million of recent loans as of Oct. 31 and fully intends to sell securitized bonds next quarter, according to Bloomberg. Redwood caused a stir in April when it was able to bundle and sell $237.8 million of jumbo mortgages from Citigroup, in a deal that raised hope for the sector.

Meanwhile, PennyMac Mortgage Investment Trust, which was founded by former Countrywide executives (but don't hold that against them), is planning its own deal. It has been busying in its niche buying up distressed debts. It will securitize these debts and sell them soon, perhaps in the first quarter of 2011.

But the exciting PennyMac initiative is one that calls for it to jump into the retail lending securitization game. It has plans to securitize retail mortgages ultimately financed via conduit, according to HousingWire. The funds will be used to make jumbo loans that will be packaged and sold by PennyMac, which says there is a need for such loans that do not originate from the big four consumer lenders. The question is whether this will stoke more securitization deals.

For more:
- here's the HousingWire article
- here's the Bloomberg article

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