Message-ID: <15681132.1075852631162.JavaMail.evans@thyme> Date: Mon, 22 Oct 2001 11:29:05 -0700 (PDT) From: a..shankman@enron.com To: john.lavorato@enron.com Subject: RE: Currency Hedging Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Shankman, Jeffrey A. X-To: Lavorato, John X-cc: X-bcc: X-Folder: \JSHANKM (Non-Privileged)\Deleted Items X-Origin: Skilling-J X-FileName: JSKILLIN (Non-Privileged).pst I don't have all the facts to agree or disagree. Until John Z has approval to trade currency, I wouldn't think you would want to go down this path. In addition, I'm sure you know hegding currency this big and late of Fridays is tough. -----Original Message----- From: Lavorato, John Sent: Monday, October 22, 2001 11:50 AM To: Shankman, Jeffrey A. Subject: FW: Currency Hedging By the way, I agree with Zufferli on this. -----Original Message----- From: Zufferli, John Sent: Monday, October 22, 2001 11:46 AM To: Hickerson, Gary; Stuart III, William; Lavorato, John; Milnthorp, Rob Subject: Currency Hedging Given the volatility in the gas market (which is the sole impact on the Canadian power book's US dollar exposure) and the exhorbitant cost involved in hedging multi-year cashflows (i.e. as evidenced by Friday 10/19/2001 trade of -$1,200,000 Cdn new deal value for the 14 year swap that I entered into), I will manage the currency exposure of this book myself, I will hedge appropriately when I see fit and will not accept hedges forced on Enron Canada because of arbitrary position limits set by your department. John Zufferli