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

See Examples For:

subprime

At the same time, there’s been a continuing “retreat from subprime lending,” he added.

From MarketWatch ● Aug. 13, 2026

Marks says he doesn’t detect similar potential risk factors comparable to portfolio insurance or subprime lending.

From The Wall Street Journal ● Jul. 15, 2026

In March of 2006 for instance, it put out a paper titled “Prime or Not So Prime” that detailed the risks posed by the securitization of subprime loans in the U.S.

From The Wall Street Journal ● Jun. 30, 2026

Fraud may have toppled subprime auto lender Tricolor last year, but other finance companies that sell bonds backed by their car loans also faltered.

From MarketWatch ● Jun. 5, 2026

Lippmann was merely the trader responsible for buying and selling subprime mortgage bonds and, by extension, credit default swaps on subprime mortgage bonds.

From "The Big Short" by Michael Lewis