The spring brought rising subprime delinquency rates and the ensuing failures of subprime lenders.
Earlier this month New Century Financial, a major independent subprime lender, filed for bankruptcy.
Many subprime borrowers are now finding they cannot refinance to escape their rising payments.
Significantly, most subprime loans involve low "teaser" rates that last for only two years.
The catalyst: ratings agency downgrades on structured products like collateralized debt obligations containing subprime-tainted mortgage collateral.
Last week, the Federal Reserve broke a relative silence on subprime and predatory lending.
Last year alone, 40% of adjustable rate mortgages and interest-only loans were categorized as subprime.
Subprime mortgage originations made up 20% of all mortgages in the last two years.
Nudging buyers toward subprime loans, or keeping mum about the risks, means more sales go through.
Much of our subprime paper lost 60%, 70% or in some cases more of their value.
"After Enron, late trading, subprime and Pequot, SEC promises to do better ring hollow, " Aguirre says.
They have these investments - this is the whole subprime housing thing you keep hearing about.
Visa's flotation will at least provide some distraction on Wall Street from the subprime battering.
In addition, Moore says there are still plenty of other subprime lenders doing shady things.
Much of the toxic subprime paper is still out there trading at deep discounts.
The subprime mortgage meltdown and Wall Street's losses on mortgage-related derivatives have become personal.
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When the equities market started dipping last August on subprime woes, insiders became bullish, he says.
According to analysis by Barclays Capital, the "freezer-teaser" plan applies to just 240, 000 subprime loans.
The Mortgage Bankers Association reports the number of subprime adjustable rate mortgages at 2.9 million.
The two funds had a high level of exposure to bonds backed by subprime mortgages.
Alt A loans are somewhat in-between prime and subprime mortgages on the risk scale.
The actual losses from subprime mortgages and other exotic instruments were large but absorbable.
This left them exposed to the very subprime assets they were meant to avoid.
And that's an indication of just how out of control the subprime market had become.
It does not help that a hefty 13% of its loans are to subprime borrowers.
Actual losses on exotic instruments, moreover, won't come near the value of those subprime mortgages.
That magnitude of the subprime market, of its loses, looks absolutely tiny by world markets.
The toxic subprime loans were made primarily by nonbanks outside the bank regulatory framework.
At the heart of the trouble here is the housing market's subprime mortgage debacle.
Nearly five times as much as we've seen in the subprime mess so far.
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