COVID period demonstrated that lenders respond to lower risk-free rates not by lowering spreads but by widening them, so borrowers did not benefit from near-zero treasury rates—spreads simply expanded to maintain comparable all-in rates, negating apparent rate benefit.
factualpending
Speaker
Bruce FlattEvidence Quote
“When COVID hit interest rate uh the Treasury rate went to zero...lenders...I'm widening that out to to uh 350. So I'll give you five and or four and a half.”
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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