subprime

[suhb-prahym]

adjective

1. being of less than top quality.

   a subprime grade of steel.

2. being below a prime rate.

   banks engaging in subprime lending.

subprime

/ ˈsʌbˌpraɪm /

adjective

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

noun

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

Word History and Origins

Origin of subprime¹

sub- + prime

Example Sentences

“For lenders the increasing availability of online betting markets raises the potential for revolving debt spikes, accelerated defaults, and higher charge-off rates, particularly among subprime borrowers,” the analysts wrote, adding that widespread sports wagering represents “a new risk for lenders, one that they have not had to deal with historically and underwriting models may need to be adapted.”

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Doubters include Michael Burry, the investor profiled in Michael Lewis’s “The Big Short,” who made a fortune betting against subprime mortgages nearly two decades ago and who disclosed a new bet against Nvidia in the third quarter.

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Nvidia and Michael Burry, the famed investor who was chronicled in The Big Short by spotting the subprime bubble, appear to be in a war of words.

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Burry’s prescient bet against subprime mortgages before the 2008-2009 financial crisis was depicted in the movie The Big Short.

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In October, the share of subprime borrowers who were at least 60 days late on vehicle loan payments rose to 6.65%, the highest level on record.

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