Prudent asset-level debt structuring on businesses that can withstand downturns, with fixed-rate long-duration financing, provides optimal capital structure because borrowing costs reflect treasury rates plus spreads, creating opportunities when spreads contract versus when rates rise but spreads compress.

causalpending

Speaker

Bruce Flatt

Evidence Quote

You should put a prudent amount of debt on assets that can withstand markets...what we borrow at is treasury rate plus spread.

Source

Lessons from a lifetime of investing and outperforming | Bruce FlattThe Knowledge Project Podcast
Created: 8/11/2026, 7:11:43 AM

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