The Big Picture blog is reporting on a story in the Wall St. Journal stating: “A boatload of 2/28 APR mortgages are about to reset next year, and its not going to pretty.”  This has been pretty widely known, I believe.  The question is whether or not the market has priced any of this in [...]

Option One, H&R Block’s subprime financing unit received $350 million in new funding capacity.  Royal Bank of Scotland supplied the funding.  Option One has also received funding from Greenwich Capital Financial Products.  No final deal has been made for H&R to sell Option One – its deal with Cerberus feel through.

Japan’s National Finance Minister said that as of September 30th, the country’s banks held $12 billion in subprime investments.  Japanese banking stocks are down some 31% this year.  Even with the seemingly large amount, it is nothing compared to the total amount of subprime loan losses which could reach $300 billion.