State Street is feeling the subprime pain yet again. 2008 is proving to be a bad year for ultra-short bond funds, as asset managers continue to get hit over such funds' losses, and the defunct SSgA Yield-Plus Fund is the latest to spark a lawsuit.

Bloomberg's Sree Vidya Bhaktavatsalam reports that the SSgA fund in question, before being liquidated in May, fell 19 percent in 2008, and adds that 51 percent of the fund was in mortgage-related securities at the end of March.

Subprime losses in ultra-short bond funds have already triggered similar suits against Fidelity, Morgan Keegan and Schwab. And State Street itself is no stranger to subprime drama; other fund losses prompted investor lawsuits against the Boston-based firm last year, and Bhaktavatsalam notes that the asset manager marked $618 million in Q4 of last year to settle such suits. 

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