By Rachel Silber and Michelle Slipanchuk ( April 16, 2026, 1:53 PM EDT) -- Canadian lenders are increasingly encountering borrowers that operate in the defence or defence-adjacent sector. Many of these businesses are otherwise conventional middle-market credits with established operations, contracted revenue streams and long-term customer relationships. Despite this, transactions frequently slow down or fail for reasons that are not tied to credit fundamentals. The hesitation tends to arise from perceived regulatory complexity, uncertainty around enforcement and sensitivity to reputational considerations....