On this episode of The Art of Boring, Global Credit Portfolio Manager Brian Carney unpacks what he believes are some of the most pressing issues in credit markets today. He explores whether recent private market bankruptcies signal deeper systemic concerns, how to position for sovereign bond issuer risk in a sticky inflation world, and the impact of the AI-driven debt wave on credit spreads. He also discusses regulatory rollbacks in the lending markets, credit risk premium mispricings, and concrete portfolio actions for late cycle markets.

Key Highlights

• Recent private market bankruptcies may signal broader, systemic credit market weakness rather than isolated events, with deteriorating lending standards and rising delinquencies warranting caution.
• Growing sovereign debt and persistent inflation are challenging the traditional "safe haven" status of U.S. Treasuries, prompting a preference for shorter duration and higher-quality credit exposure.
• The surge in AI-driven capital expenditures is fueling a wave of debt issuance by large tech companies, likely putting upward pressure on credit spreads and shifting market dynamics in favour of lenders over time.
• Regulatory rollbacks in the U.S. are reducing transparency and increasing risk-taking, especially in unregulated and private markets, raising concerns about financial stability and corporate behaviour.
• Credit risk premiums remain compressed, with investors often inadequately compensated for lower-quality credit risk; opportunities are limited, and selectivity is critical.
• Defensive positioning—focusing on capital preservation, short duration, and high-quality issuers—remains key, with readiness to deploy capital quickly when market dislocations create attractive opportunities.

Host: Kevin Minas, CFA, Institutional Portfolio Manager

Guest: Brian Carney, CFA, Portfolio Manager This episode is available for download anywhere you get your podcasts.

Founded in 1974, Mawer Investment Management Ltd. (pronounced "more") is a privately owned independent investment firm managing assets for institutional and individual investors. Mawer employs over 250 people in Canada, U.S., and Singapore.

Visit Mawer at https://www.mawer.com. Follow us on social:

LinkedIn - https://www.linkedin.com/company/mawer-investment-management/

Instagram - https://www.instagram.com/mawerinvestmentmanagement/

In this episode, portfolio manager Peter Lampert discusses the evolving landscape of international equities, with a special focus on the portfolio's exposure to AI enablers—companies powering the semiconductor supply chain, from power supply units to memory makers. Lampert explains the importance of distinguishing between firms merely riding the AI investment wave and those whose competitive positions are fundamentally strengthening as a result. The conversation also explores attractive valuations outside the U.S., the growing role of Japanese companies amid governance reforms and IT modernization, and the need for careful risk management as AI adoption and global trends unfold. Lampert emphasizes a diversified, long-term approach—balancing AI-driven growth, sector-specific opportunities in Europe and Asia, and resilience against macro risks—to position the portfolio for sustainable value creation in a rapidly changing world.

Key highlights:

• How international equities are benefiting from AI infrastructure growth, focusing on companies enabling the semiconductor supply chain (e.g., power supply units, memory makers).

• The importance of distinguishing between firms temporarily boosted by AI demand and those with strengthening long-term competitive advantages.

• Attractive valuations and growth opportunities for AI enablers outside the U.S., particularly in Europe, Taiwan, and Korea.

• An examination of portfolio diversification, including exposure to Japanese companies amid governance reforms and IT modernization.

• Risk management in balancing AI exposure with other portfolio drivers and the need for resilience as adoption and global trends evolve.

• The ongoing debate around incumbent software companies' ability to adapt to AI, emphasizing a case-by-case, long-term approach.

Host: Rob Campbell, CFA – Institutional Portfolio Manager

Guest: Peter Lampert, CFA – Portfolio Manager

This episode is available for download anywhere you get your podcasts. Founded in 1974, Mawer Investment Management Ltd. (pronounced "more") is a privately owned independent investment firm managing assets for institutional and individual investors. Mawer employs over 250 people in Canada, U.S., and Singapore.

Visit Mawer at https://www.mawer.com.

Follow us on social:

LinkedIn - https://www.linkedin.com/company/mawer-investment-management/

Instagram - https://www.instagram.com/mawerinvestmentmanagement/

Paul Moroz returns to share an update on our global equity strategy. We dig into what's changed since Paul resumed the lead portfolio manager role, how the team's collaboration has evolved, and why a more diversified and resilient portfolio is the result. Listen for Paul's take on why optionality and humility matter more than ever.

Key highlights:

• Enhanced team collaboration through structural changes leading to better cross-team idea generation

• Improved portfolio diversification with holdings expanding to over 70 securities: reduction of consumer staples and discretionary overweights, while adding strategic small positions that provide optionality for rapid capital allocation as markets shift

• Fundamental momentum alignment improved by reducing problem positions and increasing strong earnings momentum names, resulting in better down capture characteristics during market declines

• Strategic AI complex exposure built through diversified Asian infrastructure plays in memory, power, data centers, and chip fabrication, targeting high market share businesses with better risk-adjusted returns

• Comprehensive IT sector review underway to identify opportunities in potentially mispriced software companies

• Portfolio repositioning complete with approximately 19% turnover executed to create a more balanced, diversified portfolio aligned with the platform's investment philosophy: designed for resilience across market regimes

Host: Rob Campbell, CFA – Institutional Portfolio Manager

Guest: Paul Moroz, CFA – Portfolio Manager

This episode is available for download anywhere you get your podcasts. Founded in 1974, Mawer Investment Management Ltd. (pronounced "more") is a privately owned independent investment firm managing assets for institutional and individual investors. Mawer employs over 250 people in Canada, U.S., and Singapore.

Visit Mawer at https://www.mawer.com.

Follow us on social:

LinkedIn - https://www.linkedin.com/company/mawer-investment-management/

Instagram - https://www.instagram.com/mawerinvestmentmanagement/