Yesterday, we learned that after months of turmoil following the departure of Mohammed El-Erian, Bill Gross had finally found a way to bring some much needed stability to his life and to his firm: Paul McCulley. Returning to the fold following his 2010 departure, the former Pimco executive has been named "chief economist" and will report to Gross.
From the get-go it, it was clear that in coming out of retirement, cutting his hair, and buttoning his top button, McCulley was making a huge sacrifice for his buddy Bill. But a new report suggests that the McCulley hire goes deeper than Gross simply needing an old friend by his side. He also needed a small furry creature to recommend stocks, and as luck would have it, McCulley could deliver both.
In his previous incarnation as a money manager at Pacific Investment Management Co.,Paul McCulley was known for a whimsical style in his commentaries that included imaginary question-and-answer sessions with his pet rabbit Morgan le Fay. The name was borrowed from the sorceress in the legend of King Arthur and the Knights of the Round Table...in 2000, [McCulley] noted that she and the equity markets “shared many characteristics: boundless exuberance and a passion for mischief.”
And as a bonus, this one has an opinion on interest rates, unlike Pimco's last Senior Animal Analyst.