Credit markets appear calm, but beneath the surface, early warning signs are flashing—especially in the auto sector. This article explores how auto credit, often the first to show stress when consumer conditions deteriorate, is now signaling broader risks. With credit spreads near their lowest levels in decades and risk premiums shrinking, investors are being asked to accept more risk for less reward. The rise of private credit and declining transparency further mask growing vulnerabilities. The auto sector’s mounting strains may be the canary in the coal mine, warning of mispriced risk and potential instability across the broader credit market.

In this episode, Fixed Income Portfolio Manager Crista Caughlin breaks down the macro forces driving bond markets in 2025. From trade uncertainty to central bank policy shifts, Crista explains how these themes are shaping Canadian fixed income performance and where she sees opportunities ahead.

Equity analyst Ian Turnbull shares insights from his latest trip to Japan, highlighting the unique aspects of Japanese society and corporate culture. From surplus and stakeholder capitalism to why you might get more than you pay for at a 7-Eleven convenience store, Ian reflects on the value of on-the-ground research, the trade-offs involved in capital allocation decisions, and pockets of real opportunity within Japan's evolving business landscape.