Subprime: meaning, definitions and examples

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subprime

 

[ sสŒbหˆpraษชm ]

Adjective
Context #1 | Adjective

finance term

Subprime refers to loans or financial products that are offered to borrowers with poor credit histories or low credit scores. These loans typically come with higher interest rates compared to prime loans, reflecting the increased risk to lenders. Subprime lending played a significant role in the financial crisis of 2007-2008, as many borrowers defaulted on their loans. The term can also extend to any risky asset that is deemed less likely to be repaid.

Synonyms

high-risk, non-prime, risky.

Examples of usage

  • The subprime mortgage crisis led to significant financial instability.
  • Many borrowers were offered subprime loans that they could not afford.
  • Investors were wary of subprime bonds after the market crash.

Translations

Translations of the word "subprime" in other languages:

๐Ÿ‡ต๐Ÿ‡น subprime

๐Ÿ‡ฎ๐Ÿ‡ณ เคธเคฌเคชเฅเคฐเคพเค‡เคฎ

๐Ÿ‡ฉ๐Ÿ‡ช Subprime

๐Ÿ‡ฎ๐Ÿ‡ฉ subprime

๐Ÿ‡บ๐Ÿ‡ฆ ััƒะฑะฟั€ะฐะนะผ

๐Ÿ‡ต๐Ÿ‡ฑ subprime

๐Ÿ‡ฏ๐Ÿ‡ต ใ‚ตใƒ–ใƒ—ใƒฉใ‚คใƒ 

๐Ÿ‡ซ๐Ÿ‡ท subprime

๐Ÿ‡ช๐Ÿ‡ธ subprime

๐Ÿ‡น๐Ÿ‡ท subprime

๐Ÿ‡ฐ๐Ÿ‡ท ์„œ๋ธŒํ”„๋ผ์ž„

๐Ÿ‡ธ๐Ÿ‡ฆ ุณุงุจ ุจุฑุงูŠู…

๐Ÿ‡จ๐Ÿ‡ฟ subprime

๐Ÿ‡ธ๐Ÿ‡ฐ subprime

๐Ÿ‡จ๐Ÿ‡ณ ๆฌก็บง่ดทๆฌพ

๐Ÿ‡ธ๐Ÿ‡ฎ subprime

๐Ÿ‡ฎ๐Ÿ‡ธ subprime

๐Ÿ‡ฐ๐Ÿ‡ฟ ััƒะฑะฟั€ะฐะนะผ

๐Ÿ‡ฌ๐Ÿ‡ช แƒกแƒแƒ‘แƒžแƒ แƒแƒ˜แƒ›

๐Ÿ‡ฆ๐Ÿ‡ฟ subprime

๐Ÿ‡ฒ๐Ÿ‡ฝ subprime

Etymology

The term subprime originated in the 1970s as a way to categorize borrowers who had poor credit scores. Prior to the widespread use of subprime lending, most loans were classified into 'prime' and 'subprime' categories. The subprime sector expanded in the 1990s and early 2000s, coinciding with a boom in the housing market and an influx of mortgage-backed securities. Financial institutions began actively marketing subprime loans to attract borrowers who would otherwise not qualify for traditional loans. However, the aggressive lending practices and the subsequent rise in default rates ultimately exposed the vulnerabilities in the subprime mortgage market, leading to the catastrophic financial crisis of 2007-2008. This period highlighted the risks associated with subprime lending and sparked reforms in lending practices and regulations.