subprime
high-risk (bank loan)
TRANSLATION
subprime = ein risikoreiches Bankdarlehen für Kreditnehmer mit geringer Bonität --- GOOGLE INDEX subprime: approximately 7,800,000 hits
STATISTICS
IN THE PRESS
Insurance executives expect SUBPRIME and other credit issues to continue to have a significantly negative impact on the industry's financial performance...
(Insurance Journal)
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The US SUBPRIME crisis has led to declining property prices, a slowdown in the US economy, and billions in losses by banks.
(BBC News)
(Insurance Journal)
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The US SUBPRIME crisis has led to declining property prices, a slowdown in the US economy, and billions in losses by banks.
(BBC News)
Did you
know?
WORD ORIGIN
Subprime is an adjective that describes a risky or less than ideal financial loan or investment.
In its 18th annual words of the year competition, the American Dialect Society voted subprime as the word of the year. Subprime was also winner of a brand-new 2007 category for real estate words.
In the finance world, prime refers to financial instruments of excellent quality. In terms of the financial institution, this means the loan or investment has a low risk. For the borrower, this means a lower interest rate. For instance, the prime rate is the lowest interest offered by banks to its best (lowest risk) customers.
By adding the prefix "sub," (less than, below, secondary) subprime then means less than ideal or of lower quality (from the aspect of the institution issuing the loan). The word first made headlines in 2007 when the U.S. banking industry began to experience losses on subprime real estate loans.
Subprime is normally associated with the following terms:
subprime loan - credit
subprime mortgage - real estate loan/credit
subprime market - the industry revolving around subprime loans
subprime lending - the practice of selling subprime loans/credit
subprime lender - banks and financial institutions that issue subprime credit/loans
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SMUGGLE OWAD INTO TODAY'S CONVERSATION:
"The subprime crisis is not just a U.S. problem. It affects financial markets around the world."
Subprime is an adjective that describes a risky or less than ideal financial loan or investment.
In its 18th annual words of the year competition, the American Dialect Society voted subprime as the word of the year. Subprime was also winner of a brand-new 2007 category for real estate words.
In the finance world, prime refers to financial instruments of excellent quality. In terms of the financial institution, this means the loan or investment has a low risk. For the borrower, this means a lower interest rate. For instance, the prime rate is the lowest interest offered by banks to its best (lowest risk) customers.
By adding the prefix "sub," (less than, below, secondary) subprime then means less than ideal or of lower quality (from the aspect of the institution issuing the loan). The word first made headlines in 2007 when the U.S. banking industry began to experience losses on subprime real estate loans.
Subprime is normally associated with the following terms:
subprime loan - credit
subprime mortgage - real estate loan/credit
subprime market - the industry revolving around subprime loans
subprime lending - the practice of selling subprime loans/credit
subprime lender - banks and financial institutions that issue subprime credit/loans
---
SMUGGLE OWAD INTO TODAY'S CONVERSATION:
"The subprime crisis is not just a U.S. problem. It affects financial markets around the world."
