3 Thoughts on What do economist mean by the sub-prime market?
  1. Reply
    SG Elite
    February 9, 2014 at 4:18 pm

    Sub-prime market means markets that hasn’t reach its peak/top. Lukewarm in other words. In example, today’s stock market reaches 6,000 transactions and there are room for it to go 10,000 thus at 6,000 the market is sub-prime.

  2. Reply
    Jordan Wathen
    February 9, 2014 at 4:41 pm

    The subprime market is comprised of lender who loan money to people with subprime credit scores. Basically loans to people who are not financially credible.

    Capital One is a subprime company.

  3. Reply
    dwight b
    February 9, 2014 at 4:54 pm

    sub prime in recent use refers to sub prime mortgages given to people with riskier credit ratings , loan to value ratios of more than 80% percent of a properties value , “interest only” loans or variable rate loans . When interest rates were low a couple of years back many people bought more house than thay could afford any way they could ,with the idea that property values were going up so fast they would build equity and make money. Now that we have a real estate slump a lot of people are paying late and defaulting. I heard somewhere that about 8% of morgtgage loans are sub prime. Lenders have to allot a certain amount to hedge against losses from these loans.

    Leave a reply

    Register New Account
    Reset Password