We have made great returns on the front of the curve and the back of the curve.   We have significant Cal 02 through Cal 05 positions, that have provided solid profitability.

It is completely inaccurate to say we have made all of our money on the front of the curve.

 -----Original Message-----
From: 	Hayden, Frank  
Sent:	Friday, June 15, 2001 10:08 AM
To:	Presto, Kevin M.
Subject:	Performance reports

Kevin,
In addition to getting back with me regarding the main power risk facing Enron,  I get the impression that recently the East desk is making most of its money in the front of the curve.  My point is, I will be discussing with Lavo trader performance reports, and I think an important insight is whether or not a trader/desk is historically great at making money in the front or back of the curve?  In your opinion, what part of the curve are you "masters" at, and are there any Enron resources that could be better deployed improving those areas?

Additional ideas would be to somehow "flag" that we have large positions concentrated in an area of the curve where we historically are non-performers..  This perhaps could trigger additional fundamental analysis, maybe we could set up a limit structure around these areas?

Don't know if this is good, bad or nonproductive idea..

Your feedback would be appreciated.

Frank