Flagstone Securities has hired Steven DeLaney as a senior research analyst, covering subprime residential mortgage real estate investment trusts. DeLaney joins the firm from Ryan Beck & Co., where he was a senior v.p., and will be based in Atlanta. Flagstone, a boutique that is completely focused on specialty finance, covers 50 real estate related companies and wants to expand that to 60. He rounds out a three-person team of publishing analysts and three associate analysts.

The subprime sector is expected to see consolidation in the coming year. After a strong year in which almost $3 trillion of mortgages was completed, DeLaney noted that the mortgage market is growing more complex. "This reflects a higher degree of consumer credit risk than at any other point in time and it will be interesting to see how overall economy holds up in the face of a slowing housing and mortgage market," he said.