Pablo:
Weather derivatives are derivative transactions that we do with 
counterparties based on temperature chnages, rainfall amounts etc.  For 
example, a counterparty (i.e., a ski lift operator) may want us to agree to 
pay them within a certain seasonal period based on  the number of days that 
the temperature exceeds a certain level.  With respect to credit derivatives, 
these are again financial transactions that we may enter into with a 
counterparty where we may agree to pay them if an entity taht they have a 
relationship with goes bankrupt.

Carol St. Clair
EB 3892
713-853-3989 (Phone)
713-646-3393 (Fax)
carol.st.clair@enron.com



	"Pablo Perezalonso" <pperezalonso@rhm.com.mx>
	06/23/2000 06:15 PM
		 
		 To: Carol.St.Clair@enron.com, JRazguzman@rhm.com.mx
		 cc: 
		 Subject: Re: Securities Question


I am sorry, but, Could you define what do you understand by weather or credit 
derivatives?

Thank you

Pablo Perezalonso Egu?a
Ritch, Heather y Mueller, S.C.
pperezalonso@rhm.com.mx
tel: (52) 5-2076533

>>> "Carol St Clair" <Carol.St.Clair@enron.com> 06/23/00 04:07PM >>>


Pablo and Jose:
As  a follow-up to our discussion yesterday, would you consider either weather
derivatives or credit derivatives to be "securities".

Carol St. Clair
EB 3892
713-853-3989 (Phone)
713-646-3393 (Fax)
carol.st.clair@enron.com