FW: Confirms in Word

fyi

-----Original Message-----
From: =09Rohauer, Tanya =20
Sent:=09Thursday, September 20, 2001 7:24 PM
To:=09Kirby, Treasa; Jamadagni, Rajaram
Cc:=09Shackleton, Sara
Subject:=09RE: Confirms in Word=20

You MUST carve this transaction out of the CSFBI master. The margin does NO=
T flow around the structure. If you read the confirms, you will see that E=
nron receives fixed 150MM from CSFBI day 1 and pays it back WTI basically a=
t the end of the deal (that is where all the volumes are concentrated). Th=
us, this deal is out of the money to Enron 150MM and they can call us for t=
hat margin which we would have to post for the entire term of the deal. Ou=
r swap with MSCG has us paying fixed, but we do not pay it until the end of=
the deal (that is where all the volumes are concentrated). Thus, this swap=
could allow for either party to margin based on WTI price movement - but i=
n essence, it is an at the money trade today. You will NOT be able to margi=
n MSCG. Thus, the net effect is you have to post margin, but you do not re=
ceive any. If you do not carve this deal out of the margin arrangements, y=
ou wil defeat the purpose of executing a prepay - you will have to post the=
money they prepay you as collateral. Hope it is clear - I am out of the o=
ffice tomorrow, but I will be back on Monday.

Regards,
Tanya

-----Original Message-----
From: =09Kirby, Treasa =20
Sent:=09Thursday, September 20, 2001 10:18 AM
To:=09Rohauer, Tanya
Subject:=09FW: Confirms in Word=20

Confirms as requested. Tanya, Raj and I will call you to discuss.

Treasa

-----Original Message-----
From: =09Jamadagni, Rajaram =20
Sent:=0918 September 2001 17:37
To:=09Kirby, Treasa
Subject:=09Confirms in Word=20

Treasa,=20

Both the MS and the CSFB confirms in word format.=20

Regards

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