That was a very clear explanation. I
finally understand the Enron/Citicorp prepay scheme.
Are the figures of $500 million and $650 million the actual figures, or were you using them as an example to illustrate your point?
If those are the figures, that's a 30% interest charge for one year!
The $500 million is a real number, the $650 I made up. A different shady deal with JP Morgan had an effective intrest rate of about 7.5%, so I would guesstimate $530 in "oil".