Lennar Buydowns, Bitcoin S2F and US Yields Higher

Ok before we get to the trackers let’s take a look at a tweet by @donMiami3 we saw today:

While many will scoff at such a move, we believe that this is a great move by Lennar! In fact they have like 50% or so in maturing debt in the next 3 years, they will most likely refi it at a 3% + over their current rates but hey they have $4B in cash so this is a great way to secure future customers business. Not only will the get the initial but we wonder if there are clauses for refinancing or if you have to stay in this product for a specified time period.

We believe from an overall business standpoint that this is a stellar move, hell they can even do an ABS on their land inventory and yea, maybe they lose 2% or so over the next few years, but in reality once the FRB caves and dumps rates back down they will refinance all of this...if they don't well plenty of swaps and outright Ten year puts they could buy...we absolutely love this idea!

We also wanted to share this Bitcoin S2F model which we have showed for years now and agree with PlanB@100trillionUSD this should be the future path: