1. subprime - Noun
2. subprime - Adjective
Less than prime; inferior.
subprime beef
(US, banking, now worldwide) Designating a loan (typically at a greater than usual rate of interest) offered to a borrower who is not qualified for other loans (for example, because of a poor credit history).
(US, banking, dated) Designating a type of commercial lending rate, less than the prime rate, offered to desirable borrowers.
subprime (plural subprimes)
A subprime loan.
In the debate between those who believe in essentially unregulated markets and others who hold that reasonable regulation diminishes market excesses without inhibiting their basic function, the subprime situation unfortunately provides ammunition for the latter view. Barney Frank
I was aware that the loosening of mortgage credit terms for subprime borrowers increased financial risk. But I believed then, as now, that the benefits of broadened home ownership are worth the risk. Alan Greenspan
Home ownership was the fig leaf for the rise in subprime lending. But that was really about cash-out refinancings, not buying homes. Bethany McLean
Incredibly, at this critical juncture in financial history, after which so much changed so quickly, the only constraint in the subprime mortgage market was a shortage of people willing to bet against it. Michael Lewis (author)
I and others were mistaken early on in saying that the subprime crisis would be contained. The causal relationship between the housing problem and the broad financial system was very complex and difficult to predict. Ben Bernanke
If banks anticipate government will come to the rescue should the credit market go badly awry, they may make loans that would otherwise be imprudent, e.g. subprime loans with little prospect of repayment. Eric Maskin