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

They purchased $21 billion in so-called toxic subprime loans at nearly half the market price, placed them in three funds, and held them to maturity.

From Barron's

Fed Chair Ben Bernanke used it to describe the impact of subprime losses on broader financial markets when he spoke to lawmakers on Capitol Hill in the spring of 2007.

From Barron's

Laks Ganapathi, who runs the independent research group Unicus, isn’t ready to compare the current stresses in private credit to the subprime crisis—but he’s not prepared to dismiss the risks, either.

From Barron's

According to a report cited by Bloomberg from Bank of America strategist Michael Hartnett, the widening distress, combined with the spike in oil prices, is starting to resemble the market conditions in the lead-up to the 2008 global financial crisis when oil doubled from $70 to $140, and “subprime tremors” toppled firms such as Bear Stearns.

From The Wall Street Journal

Investors have been spooked by a series of events, including the bankruptcies of subprime auto lender Tricolor and auto-parts supplier First Brands last September, even though their loans were primarily originated by banks.

From The Wall Street Journal