I did try and point out to Moody's what was going on at Enron Gefi but they of course did nothing. Rating agencies have always been the employer of last choice in financial markets and they simply don't understand more complex situations in my view. Stock forums weren't so popular back then, or certainly I knew nothing about them anyway. Otherwise I would have posted what I thought about how giant quarterly fluctuations in cash balances that they could not explain. (Funnily enough, I never looked at stock forums even in my later years as a professional investor). In the end my desk in London made USD40m off the demise of Enron. Surprisingly, the other side of that trade was your very own CBA. Ironically that early and sudden derivatives loss for them probably kept them out of structured credit later on as the credit bubble evolved and saved them a lot of money. An unexpected happy ending! I wouldn't rely on that here however although you never know with commodity prices.
CCC Price at posting:
3.6¢ Sentiment: Sell Disclosure: Not Held
