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hikesa hikesa
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3 years ago Edited: 3 years ago, hikesa
"One of the key’s to Enron’s success was that it transformed itself into a trader of energy derivative contracts, acting as an intermediary between natural-gas producers and their customers. "
"The company discovered a new product -- mostly ways of trading energy in the derivatives market -- that allowed producers and users to lay off risk. This new product was wildly popular and, as the innovator, Enron made lovely above-market returns."
Please Explain

Post Merge: 3 years ago

and would these products be the following? Enron Power (electricity wholesaling), Enron Natural Gas (natural gas wholesaling), Enron Pulp and Paper, Packaging, and Lumber (risk management derivatives for forest products industry), etc.
Post Merge: 3 years ago

and is it true that these were ways of trading energy in the derivatives market and resulted for producers and users to lay off risk?
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