Maroun Abboudy is working with Joe Defner on Fund Flow concepts but I am really
focusing more on trading deals we can do to bring in funds flow at a cost far lower
than the structured Global Finance deals we have done in the past.  Will keep
you posted.

John
---------------------- Forwarded by John Sherriff/LON/ECT on 02/04/2001 06:54 ---------------------------


Maroun Abboudy
30/03/2001 12:09
To:	John Sherriff/LON/ECT@ECT
cc:	Paul Chivers/LON/ECT@ECT 

Subject:	Cost of Capital presentation

John,

As promised please find attached the updated Capital Charge presentation for you to distribute to department heads.  I am still working on more examples to present.  I am considering the effect of the cost of capital curves in valuing option premia.  I will have to discuss with RAC.  I am setting up meetings with Risk management starting monday to see how we are going to implement the Charge in teh Book.  I will be trying to sit with yourself as well and discuss how you see the charge/benefit flowing through the different books.

We have also discussed the cost of capital concept with Joe Deffner from EGF-NA (they are working on a similar concept with Louise) and will be liaising weekly with them from Funds Flow pricing signals.

 

maroun