A free website at Markit allows one to track pricing on commercial mortgage-backed securities. Click HERE for the link. At the site, I use the AA securities, priced in the 30's to 50s, as they are the most volatile. After a huge sun-up, they have weakened a fair amount recently. The stocks of super-regional and other banks track this CMBX set of indices very closely. The huge runs in STI, FITB and many others correlate closely with these readings, as do the recent markdowns in their prices.
As with so much else in this economy, the flood of Federal and Fed "money" has had only partial and often transitory effects. It has been illogical and anti-free market and has served primarily to reward the undeserving and foster speculation.
At a certain point, this relationship will break down. For now it's interesting.
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