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Volatility is Good for Brokerages, Analyst Says

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

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.