Snowden: It is time to add 'ferociously cheap' risk

Stephen Snowden has begun adding risk to Kames Capital's £330m Investment Grade portfolio after risk assets fell to "ferociously cheap" levels.

Snowden (pictured) said if more QE is unleashed in Europe, following on from the LTRO initiative in December and February, credit spreads in Europe will tighten from their current stretched levels. As such he is moving to add more risk to the portfolio, to take advantage of spreads which he said were approaching Lehman levels. "As the eurozone crisis has evolved, credit spreads have widened to 180bps which is nearly at the top end of the trading range. The widest they ever reached was at the height of the Lehmans crisis when they peaked at 220bps. "If you have got the stomach for i...