Subprime's Next Victims: Hedge Funds

This column was originally published on Street Insight on March 5 at 9:28 a.m. EST. It's being republished as a bonus for TheStreet.com and RealMoney.com readers. For more information about subscribing to Street Insight, please click here.

The fallout in the subprime market won't be limited to the originators of these risky mortgages -- the next area to keep an eye on is hedge funds.

First, it's clear we haven't seen the worst of the subprime wreakage and that we'll soon see the hurt spread to the prime-mortgage arena, as I've argued recently. ...