NovaStar Posts $54.5M Loss in 2Q

Subprime lender NovaStar Financial, Kansas City, Mo., has reported that it lost $54.5 million in the second quarter, noting that the nonprime securitization market "continues to be illiquid."During the quarter, NovaStar set aside $73 million for credit losses and took a $22.5 million impairment charge on mortgage securities. In the same quarter last year, the nondepository earned $33 million. Despite the loss, its shares were up slightly in trading Friday morning.