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Article: Houston-Based Energy, Financial Company Offers Web-Based Hedging Service.(Knight Ridder/Tribune Business News)
- Article from:
- Knight Ridder/Tribune Business News
- Article date:
- February 23, 2000
- Author:
CopyrightCOPYRIGHT 2000 Knight-Ridder/Tribune Business News. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Feb. 24--Enron Corp. has begun offering an online service that allows companies trading over the Internet in products such as electricity to buy a hedge against a buyer going bankrupt.
The service is named EnronCredit.com and provides information about the likelihood a company will be unable to pay its debts. A company selling power could use the information to set contract terms for the price it charges and buy a hedge from Enron that would ensure the seller gets paid if the customer gets in financial trouble.
For example, under the hedge if a company that is obligated to buy a certain amount of electricity goes bankrupt, Enron would step in and pay off ...