FORM 3
 UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
  Isbrandtsen John
 2. Date of Event Requiring Statement (Month/Day/Year)
03/31/2010		 3. Issuer Name and Ticker or Trading Symbol
REDWOOD TRUST INC [RWT]
(Last)
(First)
(Middle)
1 BELVEDERE PLACE, SUITE 300		 4. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
_____ Director _____ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
Managing Director
 5. If Amendment, Date Original Filed(Month/Day/Year)
(Street)

MILL VALLEY, CA 94941		 6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Beneficially Owned
1.Title of Security
(Instr. 4)		 2. Amount of Securities Beneficially Owned
(Instr. 4)		 3. Ownership Form: Direct (D) or Indirect (I)
(Instr. 5)		 4. Nature of Indirect Beneficial Ownership
(Instr. 5)
Common Stock 7,364
D
 
Common Stock 1,000
I
by IRA

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly. SEC 1473 (7-02)
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Table II - Derivative Securities Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 4)		 2. Date Exercisable and Expiration Date
(Month/Day/Year)		 3. Title and Amount of Securities Underlying Derivative Security
(Instr. 4)		 4. Conversion or Exercise Price of Derivative Security 5. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 5)		 6. Nature of Indirect Beneficial Ownership
(Instr. 5)
Date Exercisable Expiration Date Title Amount or Number of Shares
Incentive Stock Option (right to buy)   (1) 04/03/2010 Common Stock 4,000 $ 14.8125 D  
Incentive Stock Option (right to buy)   (1) 12/14/2010 Common Stock 5,000 $ 17.625 D  
Non-Qualified Stock Option (right to buy)   (1) 12/10/2013 Common Stock 7,500 $ 52.46 D  
Non-Qualified Stock Option (right to buy)   (1) 12/01/2014 Common Stock 5,152 $ 58.23 D  
Non-Qualified Stock Option (right to buy)   (1) 12/17/2011 Common Stock 416 $ 58.87 D  
Stock Units in Deferred Compensation Plan   (2)   (3) Common Stock 80,007.05 (4) $ 0 (5) D  

Reporting Owners

Reporting Owner Name / Address Relationships
Director 10% Owner Officer Other
Isbrandtsen John
1 BELVEDERE PLACE
SUITE 300
MILL VALLEY, CA 94941		       Managing Director  

Signatures

John Isbrandtsen 04/02/2010
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 5(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) Options are currently exercisable
(2) This transaction relates to the acquisition of Deferred Stock Units in accordance with the deferral election made according to the terms and conditions of the Redwood Trust Inc. Executive Deferred Compensation Plan.
(3) No expiration date is applicable to deferred stock units.
(4) Includes grants awarded annually from 2004 to 2009 with four year vesting schedule and voluntary deferrals of cash compensation in 2008 and 2009 into the Redwood Trust Executive Deferred Compensation Plan.
(5) No exercise price is applicable to deferred stock units.

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