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Glite Dictionary
💸 Risky loan ⚠️ High-risk lending
subprime

subprime

34 6.9
A loan given to a person with poor credit who is likely to miss payments
  • noun
  • /ˈsʌbˌpraɪm/
  • Specialized
translation icon : préstamo subprime
  • A friend of mine in a company that has a big financial presence said: "It's about time you learned about subprime mortgages."
  • subprime loans
  • subprime lending
  • subprime borrowers

Examples

  • At the heart of the mortgage crisis were subprime mortgages in default.

    Academic text (2016)

  • A boom in the subprime auto lending industry is making headlines.

    Academic text (2016)

  • All right so how did the subprime market begin?

  • Up until a few weeks ago, we knew about the subprime mortgage problem, right?

  • The mortgage crisis was a result of a combination of factors, with subprime lending playing a significant role.

    Academic text (2016)

  • As a result, when the subprime loans went bad, the negative effects of subprime lending rippled throughout the economy.

    Academic text (2016)

  • In the early 2000s, there was a huge increase in the riskiest loans, called subprime.

    Inside Job (2010)

  • We've had a ripple effect since the subprime mortgage crisis.

  • At any rate, the growth of subprime lending over the past decade resembles a modern-day Gold Rush.

    Academic text (2007)

  • Many families lost their homes due to the rising number of subprime loans that defaulted.

Surface Forms

subprime singular
subprimes plural

Morphology

subprime = subprime (semi-transparent) = sub + prime

The noun use is a straightforward conversion from the adjective 'subprime', which itself transparently means 'below prime'.

Etymology

Subprime as a noun is short for subprime loan and comes from sub- 'under' and prime 'best'. So it names a loan that is 'below the best' quality and is given to people with weaker credit who are more likely not to pay.