Safehold Vs. Treasuries
Portfolio Pulse from
Safehold's stock price is closely linked to the 30-year Treasury bond rate due to its business model of secure, long-term ground leases. SAFE acts as a leveraged play on long-term interest rates, with its price movements driven by Treasury rate changes.
January 15, 2025 | 12:45 pm
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Safehold's stock price is highly correlated with the 30-year Treasury bond rate due to its business model of secure, long-term ground leases. SAFE acts as a leveraged play on long-term interest rates, with its price movements driven by Treasury rate changes.
Safehold's business model involves long-term ground leases, which are similar to long-term bonds, providing stable cash flows and high credit ratings. This makes SAFE's stock price highly sensitive to changes in the 30-year Treasury bond rate. As a leveraged play on long-term interest rates, any changes in Treasury rates are likely to impact SAFE's stock price significantly.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100