We enter 2022 with largely positive credit momentum, reflecting favorable financing conditions and a powerful economic recovery. This could be derailed if persistently high inflation pushes central banks to aggressively tighten monetary policy, triggering significant market volatility and repricing risks. New COVID-19 variants could also undermine confidence and recovery prospects. The weakest areas of credit markets--often still highly sensitive to the ongoing impact of the pandemic--are most exposed, particularly highly leveraged corporates and some emerging markets.