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.
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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.
