NovaStar Gets Bailout

MassMutual and Jefferies Group have agreed to provide struggling subprime mortgage lender NovaStar Financial with $150 million in new equity, according to MarketWatch. MassMutual and Jefferies will each gain a seat on the board. The firms' investment in NovaStar includes a $48.8 million infusion in return for 2.1 million convertible preferred securities of the Kansas City-based nonprime mortgage lender.