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Glossary

J

JCFC
Joint Committee on Financial Conglomerates
J factor risk 
The risk associated with a judge’s track record in adjudicating bankruptcies and restructuring.
J-curve 
The expected pattern of interim returns over the life of a successful venture capital fund in which early returns are negative as the portfolio of companies burns cash but later returns accelerate as companies are exited.
Joint probability
The probability of the joint occurrence of stated events.
Joint probability function
A function giving the probability of joint occurrences of values of stated random variables.
Joint venture
An entity (partnership, corporation, or other legal form) where control is shared by two or more entities called venturers.
Justified P/E
The price-to-earnings ratio that is fair, warranted, or justified on the basis of forecasted fundamentals.
Justified price multiple
The estimated fair value of the price multiple, usually based on forecasted fundamentals or comparables.
Just-in-time method
Method of managing inventory that minimizes in-process inventory stocks.
Joint managers
Underwriting accounts are headed by a manager. When an account is made up of several groups of underwriting firms that normally function as separate accounts, the larger account is often managed by several underwriters, usually one from each of the several groups, and these managers are referred to as “joint managers."
Jumbo pools
Ginnie Mae II pass-through mortgage securities collateralized by pools which are generally larger and contain mortgages that are often more geographically diverse than single-issuer pools. Mortgage loans in jumbo pools may vary in terms of the interest rate within one percentage point.
Jump Z-tranche
A Z-tranche that may start receiving principal payments before prior tranches are retired if market forces create a "triggering" event, such as a drop in Treasury yields to a defined level, or a prepayment experience that differs from assumptions by a specific margin. "Sticky" jump Z-tranches maintain their changed payment priority until they are retired. "Non sticky" jump Z-tranches maintain their priority only temporarily, for as long as the triggering event is present. Although jump Z-tranches are no longer issued, some still trade in the secondary market.
Junior security
A security with a claim on a corporation’s assets and income that is subordinate to that of a senior security. For example, common stock is junior to preferred stock, which is junior to unsecured debt such as debentures, which is junior to secured debt.
Junk bond
Bonds rated Ba (by Moody's) or BB (by S&P and Fitch) or below, whose lower credit ratings indicate a higher risk of default. Due to the increased risk of default, these bonds are typically issued at a higher yield than more creditworthy bonds.
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