In this episode, we sat down with our Director of Research, Vijay Viswanathan, and Institutional Portfolio Manager, Kevin Minas, to talk through their observations this past quarter. We talk macro, micro, and everything in between, touching on changing market dynamics, central bank policy, how the portfolios are doing in this environment, and, finally, how we're positioning ourselves as we move forward.

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.   

This article explores why financial markets and the economy often move out of sync, showing that markets typically anticipate future developments—such as policy shifts or recoveries—long before economic data catches up. Using historical examples, it highlights that market rallies can occur even during economic downturns, and emphasizes the importance of understanding index composition and maintaining diversification rather than relying solely on economic headlines. 

In this episode, U.S. Equity Portfolio Manager Grayson Witcher explores the evolving intersection of government policy, innovation, and capital expenditure (CapEx) in U.S. markets. The discussion unpacks how public spending and strategic government stakes—especially in sectors like semiconductors and defense—are reshaping the investment landscape. Grayson reflects on the unique blend of complacency and optimism in today’s markets, the uncertain returns on massive AI-driven CapEx, and the importance of management quality and adaptability in navigating this new era. 

The AI revolution is driving one of the most capital-intensive buildouts in modern history, with data centers at the epicenter of a potential $3 trillion global investment wave. For credit investors, this represents a significant opportunity, but selectivity is paramount—while many projects will succeed, others will stall or fail. Understanding the risks is critical for separating resilient credits from problematic ones.

Brian Carney, lead portfolio manager of the global credit opportunities strategy, explores the current credit market environment characterized by tight spreads and low defaults despite global uncertainties. He discusses the concept of "convergence and complacency"—where large pools of capital chase lower-quality borrowers while markets overlook serious warning signs including political pressure on central banks and hidden leverage. The conversation covers key crisis indicators, the weakening of credit covenants over the past decade, and the risks associated with private credit. He outlines the portfolio’s defensive positioning with high-quality, short-duration securities and highlights Saturn Oil and Gas as an example of selective opportunities that still favor lenders. He concludes with insights on how AI is enhancing the investment process while emphasizing that technology cannot replace the importance of human relationships in credit analysis. 

The economics of building custom technology are changing rapidly. In today’s environment, a company’s technology strategy is no longer just a back-office concern—it’s central to business value and long-term success.

In this episode equity analyst Dominic Drzazga discusses the current state of Canadian small caps, highlighting how geopolitical volatility creates both challenges and opportunities. The conversation covers recent portfolio additions including Sprott's precious metals trust and Kraken's underwater robotics technology, while reflecting on the bittersweet exit of long-time holding Andlauer. Dom also shares insights into how the research team is utilizing AI tools within their process.

Paul Moroz returns to The Art of Boring podcast after three years, discussing his reappointment as lead manager of Mawer's global equity strategy—a role he previously held from 2009 to 2021. Paul addresses the recent organizational decision to bring him back to the strategy, outlines his strategic approach to portfolio repositioning, and reflects on how the investment landscape has evolved over the past five years. He emphasizes increased diversification, better alignment with other Mawer strategies, and a more balanced approach to market exposure. 

In recent years, Indigenous communities across Canada—including First Nations, Métis, and Inuit—have become more active in the capital markets, financing ownership stakes in assets and acting as intermediaries. This trend marks a significant step towards economic reconciliation, with Indigenous-led partnerships becoming equity owners of pipelines, power projects, and more. Several landmark transactions since 2020 highlight the growing role of Indigenous groups in Canada’s bond market and illustrate how Indigenous consortiums are using bond financing to acquire asset ownership. These financings span pipelines, energy infrastructure, and other asset classes, and often involve multi-community partnerships.