GO
Loading...

Enter multiple symbols separated by commas

Analysts: Brokerages Unhurt By Tuesday Meltdown

Small investors might have gotten burned by Tuesday's market free-for-all. But what of the big brokerage houses? Two bond and portfolio managers told CNBC's Maria Bartiromo that they're not worried.

Mirko Mikelic, bond fund manager at Fifth Third Asset Management, is confident about prospects for the likes of Goldman Sachs, Merrill Lynch and Morgan Stanley, as big brokerages "are so strong" -- and noted that most enjoy "A" and "AA" credit ratings. Speaking on "Closing Bell," He says his only concern is how such firms generate their trading gains, and with what risk controls -- though he concedes that in his experience, these factors are "generally pretty good."

Margaret Patel, portfolio manager & senior vice president at Pioneer Investments, agrees. She said the subprime credit crunch will have "small impact" on the brokerage houses. While brokerage bond yields may be "trading a little cheap," Patel maintained that "historically, that's always been the case" under current market conditions.

Symbol
Price
 
Change
%Change
GS
---