What's the story with William Watt, the head of niche bond specialist PaineWebber International who is still considered by some to have been "the best floating-rate note trader in the history of the market"? On April 18 there was a terse newsflash saying that Michael O'Hanlon, chief economist and head of research at the firm, was being made head of all fixed income.
Had there been a coup at PaineWebber in London, the house which had risen from obscurity to being a recognized Euromarket player after merging its operations with the former Kidder Peabody Securities? What had happened to the taciturn Watt, leader of the firm for many years? And where did this leave Ronnie Dick, the floating-rate note wizard who had assumed Watt's trading mantle? Was PaineWebber in New York trying to impose itself on the London trading operation? No, it wasn't. It sensibly decided to leave well alone.
With the exception of some members of the stockbroking side, all of the key PaineWebber executive managers in London are former Kidder Peabody employees including Watt, Dick and even O'Hanlon. Although the company is called PaineWebber International, the operating side and most of the earnings represent a reverse take-over by Kidder.