Colin Peterson submits: The worldwide glut of capital has caused low quality debt to be bid up to outrageous levels. Subprime debt has already had a severe correction. I believe this will spread to the "Alt-A" market, which is defined by slightly higher credit scores but similar programs and underwriting.
I think that Downey Financial (DSL ), a California savings and loan is another possible play. Downey has branches in CA and AZ, and focuses on residential mortgage lending.
This is cache, read story here
