There are a lot of portfolios – held by non-profits, governments and companies – with bonds backed by subprime mortgages.

With the burst housing bubble and subprime meltdown roiling the markets, Maddox and his partner Tom Hargett think there will be a lot of come-to-Jesus moments.

http://www.indystar.com/apps/pbcs.dll/article?AID=/20080110/COLUMNISTS21/80109074/-1/LOCAL17

Treasury Secretary Henry Paulson said the housing decline will continue and a program aimed at heading off a wave of foreclosures may need to be expanded beyond subprime borrowers.

“There is no evidence it is bottoming,” Paulson said Tuesday of the housing decline. “The evidence would be that it has further to run.”

http://www.chron.com/disp/story.mpl/business/5439102.html

WASHINGTON (AP) — Treasury Secretary Henry Paulson said Tuesday the administration was exploring what would be a significant expansion of the program to help at-risk mortgage holders.

Paulson, in an interview on CNBC, said the administration was involved in discussions with the mortgage industry to expand a current program to freeze adjustable rate mortgages for five years to include borrowers of loans at prime rates. Currently, the rate freeze only covers a much smaller segment of adjustable rate loans, those made to subprime borrowers. Those are borrowers with weak credit histories.

http://ap.google.com/article/ALeqM5jxcuVsYoSLhYBbpp5uAK6e2LNldgD8U1OLI00

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