In a follow-up to our piece yesterday on the goings-on in the subprime mortgage market we have a number of items of interest. Before proceeding we do want to clarify and emphasize one point.

Just because hedge funds are doing deals with subprime lenders does not signify all is well in sector and that one can go out and buy the stocks. Indeed just the opposite may be the case. Hedge funds can cut deals with desperate firms, in a classic “vulture style” that individual investors cannot. One should therefore take news of these deals with a grain of salt.

MarketBeat and on how the news of these deals lead to a bounce in subprime lender stocks., MarketBeat and DealBook on the high price Accredited Home Lenders (LEND) had to pay to get its cash infusion.

Joseph Lazzaro of Blog on how hedge funds can serve to take on (subprime) risk that other investors cannot. reports that hedge fund Citadel LP has purchased a sizable stake in Accredited.

Nicholas Bruilliard in the Wall Street Journal reports on some insider buys at Thornburg Mortgage (TMA), a mortgage REIT.

Jennifer S. Forsyth in the Wall Street Journal how the subprime implosion could spillover onto a commercial real estate REIT.

FT Alphaville points to the subprime meltdown as a cause for a steepining in the yield curve.

David Altig at macroblog on the potential for subprime problems to spillover into the wider commercial banking sector.

Felix Salmon on how the media is covering the subprime mortgage meltdown.

David Leonhardt in the New York Times on how debt, and this case mortgage debt, has been miscast over time as a villain.

Caroline Baum at on how the subprime market fallout is playing out in Washington D.C.

That is admittedly a lot of news to chew on. The subprime story is going to continue playing out for some time to come. Stay tuned.