The Changing Meaning of "Subprime"

Simon Winchester reports:

when first applied to financial matters in 1976, �subprime� meant a loan offered below the prime rate and typically was offered only to the most desirable borrowers.

In was not until 1993 that it took on a much less enticing guise, with Business Wire referring to a company that �buys subprime loans made ... to creditworthy buyers unable to qualify for loans from banks.� And an O.E.D. editor was moved to write a new definition: �Of or designating a loan, typically having relatively unfavorable terms, made to a borrower who does not qualify for other loans because of a poor credit history.�