Snowden's reasons why QE is not inflationary (this time)

Kames Capital's Stephen Snowden has urged investors not to ditch corporate bonds over fears they will be harmed by inflationary pressures brought about by global central banks printing money.

The Investment Grade Bond fund manager said given the strong performance in the gilt and corporate bond markets, investors may be thinking about allocating away from corporate bonds but he said the timing would be wrong. "It is not time to retire from corporate bonds yet. The bull run in gilts has probably come to an end and there are concerns of a bubble and concerns about inflation, which are justifiable, but due to the banks de-leveraging QE will not be inflationary this time." He said although it is "textbook" for QE to lead to higher inflation historically, the velocity of money ...