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Volatility is Good for Brokerages, Analyst Says

Tuesday, 12 Jun 2007 | 5:35 PM ET

The current volatility is good for brokers because it generates trade flow, Seacliff Capital President James Ellman told “Closing Bell.”

Brokerage Earnings
After a fantastic report from Lehman, investors expect other brokerage houses to follow suit; James Ellman, Seacliff Capital LLC president; Ryan Lentell, Morningstar brokerage analyst and CNBC's Maria Bartiromo

And Ellman also said that shorter-term, a small yield increase on ten-year U.S. Treasury notes makes corporate treasuries “get off their rear ends and go out and issue fixed income now -- before rates go a lot higher.” With that in mind, Ellman predicted strength across the board, excluding the mortgage space.

Following a positive earnings report from Lehman Brothers, Ellman is also bullish on Merrill Lynch because it offers a “good balance” between a retail brokerage network and an investment bank.

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  • With almost 30 years experience in business television, Bill Griffeth is co-anchor of the 3 p.m. ET hour of CNBC's "Closing Bell."

  • Kelly Evans

    Kelly Evans is an on-air correspondent, reporting across CNBC's business day programming. She is co-anchor of CNBC's "Squawk on the Street."