subprime

American  

[suhb-prahym] / sʌbˈpraɪm /

adjective

1. being of less than top quality.

   a subprime grade of steel.

2. being below a prime rate.

   banks engaging in subprime lending.

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subprime British  

/ ˈsʌbˌpraɪm /

adjective

1. (of a loan) made to a borrower with a poor credit rating, usually at a high rate of interest

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noun

1. a loan made to a borrower with a poor credit rating

Etymology

Origin of subprime

sub- + prime

Example Sentences

Left unsaid was the fact that Steyer’s firm had extensive financial ties to San Diego’s Accredited Home Lenders, one of the biggest subprime mortgage lenders in the country.

From Los Angeles Times • May 6, 2026

He has been cheered on by GameStop investors including Michael Burry of “The Big Short,” whose bets against subprime mortgage bonds were chronicled in the Michael Lewis book.

From The Wall Street Journal • May 1, 2026

The concern that losses from the $2 trillion private-credit market will damage banks in the same way as subprime mortgage debt did are overblown, Adrian told MarketWatch.

From MarketWatch • Apr. 14, 2026

The Journal is worried about the return of subprime loans, but our proposal explicitly prevents that.

From The Wall Street Journal • Apr. 1, 2026

The party on the other side of his bet against subprime mortgage bonds was the triple-A-rated insurance company AIG—American International Group, Inc. Or, rather, a unit of AIG called AIG FP.

From "The Big Short" by Michael Lewis