subprime

adjective

sub·​prime ˈsəb-ˌprīm 

1

: having or being an interest rate that is higher than a prime rate and is extended chiefly to a borrower who has a poor credit rating or is judged to be a potentially high risk for default (as due to low income)

subprime mortgages

a subprime loan

2

: extending or obtaining a subprime loan

subprime lenders

subprime borrowers

Examples of subprime in a Sentence

Recent Examples on the Web

Michael Burry, best known for calling the subprime mortgage crisis before the global financial crisis in 2008, raised his stakes in JD.com, Alibaba and Baidu, while adding what appeared to be a hedge on his sizable bet on Chinese internet stocks. —Yun Li, CNBC, 2 Dec. 2024

In the wake the 2008 subprime mortgage crisis, when many homeowners found the value of their properties much depleted, Shealy saw an opportunity to develop his idea. —Brienne Walsh, Forbes, 25 Nov. 2024

While auto loan delinquencies are still concentrated in subprime, prime delinquencies are also above pre-Covid levels, the firm said. —Michelle Fox, CNBC, 4 Sep. 2024

Since Volcker’s tenure, the Fed has steered the nation through financial crises, a dot-com bubble, a subprime mortgage crash, and populist threats from the likes of former President Donald Trump. —Sebastian Mallaby, Foreign Affairs, 30 June 2021

Word History

First Known Use

1995, in the meaning defined at sense 1

Legal Definition

subprime

adjective

sub·​prime ˈsəb-ˌprīm 

1

: having or being an interest rate that is higher than a prime rate and is extended especially to low-income borrowers

subprime mortgages

2

: extending or obtaining a subprime loan

subprime lenders

subprime borrowers