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 FlattEvidence 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 Flatt— The Knowledge Project PodcastCreated: 8/11/2026, 7:11:43 AM
My Notes
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