My two cents...the first wave was the subprime loans...the next wave is credit cards.
I think the next wave will be “Alt-A” loans, which include non-conforming (ie, jumbo) and “stated income” loans. These might have been made to people with good FICO scores, but the borrowers are often over-leveraged (eg, the typical real estate flipper in Vegas or California) and when the ARM’s start adjusting upwards as the buyers are drying up (due to increased lending standards), the people carrying some of this Alt-A paper are going under. It will be fewer people than in the sub-prime space, but the amount of money per defaulted loan will be higher than in the sub-prime space.