Subprime (adjective)

Relating to or denoting a loan or a borrower who is considered to be at higher risk of default, typically due to a poor credit history.

Origin:

The term 'subprime' is derived from the combination of the prefix 'sub-' meaning 'below' and the word 'prime', referring to a category of borrowers or loans that are considered to be below the highest quality.

Examples:

1. The subprime mortgage market was largely responsible for the 2008 financial crisis.
2. Many subprime borrowers were unable to keep up with their mortgage payments.
3. The bank was heavily invested in subprime loans and suffered huge losses as a result.
4. The subprime auto loan market has been growing rapidly in recent years.
5. Subprime borrowers are often charged higher interest rates to compensate for the higher risk.