Head of Sovereigns, Joan Feldbaum-Vidra, and European Sovereign analyst Ken Egan update us on major central monetary policy and implications for sovereign credit.

• The Fed, ECB, BOJ and BOE all engaged in aggressive balance sheet expansion to support their economies during the pandemic.

• Monetary policy normalization not likely to come very soon, for most.

• The BOE has already slowed its pace of asset purchases and is likely to be the first to move on rates.

• Early monetary policy normalization would be troubling for small economies, including in the emerging markets space, especially considering lagged vaccine rollouts and recoveries.