Re: Credit Derivatives

Bill: Thanks for the info. I also spoke with Jeff about how
EnronCredit.com Ltd. was going to work since Dennis O'Connell (London lawyer)
is responsible for that group. Maybe you will be able to clarify which of
Jeff's "positions" will be hedges and which will be backed to EnronCredit.
Maybe Rod will be handling most of Jeff's credit. I'd appreciate an update.
Sara

William S Bradford
08/29/2000 07:24 AM

To: Sara Shackleton/HOU/ECT@ECT
cc: Mark Taylor/HOU/ECT@ECT, Paul Radous/Corp/Enron@ENRON, Rod
Nelson/LON/ECT@ECT
Subject: Re: Credit Derivatives

Sara,

Please contact either Paul Radous or me on credit derivatives in the U.S.
Rod Nelson is the lead credit support for EnronCredit.com and should also be
available in London, if necessary. I am not aware of these recent trades but
I am having lunch with Jeff Kinneman on Thursday to discuss among other
things Credit support for his business.

It does concern me that we would offer to provide collateral DLJ without
Treasury's approval.

Bill

From: Sara Shackleton on 08/28/2000 06:53 PM
To: William S Bradford/HOU/ECT@ECT
cc: Mark Taylor/HOU/ECT@ECT
Subject: Credit Derivatives

I am seeing more and more credit derivatives. The trades originating in
Houston are coming from Jeff Kinneman's bond/debt traders but are booked in
the name of ECT Investments, Inc. or ENA. I can't be certain if these are
backed to EnronCredit.com Limited.

In particular, there is a proposed total return bond trade with DLJ
International Capital requiring ECT Investments to post collateral. We have
no master with this party. Who in Houston credit is looking at credit
derivatives?

FYI, other credit deals seem to be transacted wtih Deutsche Bank and UBS AG.