Kames: Germany cannot bail out Europe and keep AAA

Kames Capital's fixed income team has said quantitative easing in Europe is a must in order to prevent Germany losing its AAA rating.

Managers Phil Milburn and David Roberts - who run the group's Strategic Bond fund, among others - said QE in Europe was "absolutely essential", with Germany unlikely to keep writing cheques to bail out the periphery because of the threat to its AAA rating. Roberts said: "Believing that Germany will be able to bail out Europe and retain a AAA rating is naive. "We are seeing QE through the back door with liquidity for the banks and although it is not solving the crisis in the short-term it is a move to a more sensible fiscal program." The duo also expect the UK to expand its own QE p...