Credit market jitters began in February, when one of the largest subprime lenders, New Century Financial (other-otc: NEWC - news - people ), collapsed.

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The subprime meltdown, which began about this time last year with the bankruptcy of New Century Financial (other-otc: NEWC - news - people ), has spread throughout the credit markets and has dragged down banks and bond insurers along with it.

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So far, the damage in the U.S. mortgage industry has been confined to a few highly leveraged and weakened lenders, such as New Century Financial (other-otc: NEWC - news - people ), which had to file for bankruptcy earlier this year after its banks refused to extend it more credit, and to a few funds that had big investments in the sector.

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