Brian Hannon, a senior high-yield trader, has left Bear Stearns, according to another trader there. A senior high-yield trader at a rival firm says Hannon was laid off because, though he had been there for several years, he had been there for the shortest tenure among Bear Stearns' senior high-yield traders. He says Hannon traded cable, energy and some telecom credits. Hannon, who worked at Scotia Capital Markets prior to joining Bear Stearns, could not be reached. Art DeGaetano, head high-yield trader at Bear Stearns, declined comment.
A headhunter who frequently places high-yield clients says that Bear Stearns is unlikely to make as many cuts as its competitors because it has already lost a number of senior, highly-paid executives in its high-yield group. Earlier this year, Bear Stearns lostDon Mullen, its head of high-yield, and Paul Greenberg, its head of research (BW, 7/2). Two high-yield areas at the firm that maintain highly experienced people are distressed trading, run by Greg Haney, and high-yield sales, led by Rob Harteveldt. They are not expected to be cut, however. Distressed trading at the firm has reportedly been highly profitable, while the sales team worked on commission until 18 months ago and is said to be one of the high-yield group's strengths.