The roiling of banking has generated shockwaves that are hitting other industries, like CRE. At first, it was a question of whether rent payments would come in from the tech startups doing business with Silicon Valley Bank. Then concern about what the Fed might do about interest rates came in. A consortium of large banks saving First Republic promised even more volatility. Credit Suisse became COD Suisse and needed a quick rescue, which happened when UBS took it over.

Enough discombobulation? Don't you bet on it. Today's new concern is real estate-based bonds. Whether MBS or CMBS securities could get the legs swept out from under them, taking a lot of value with them, came up in a Wall Street Journal article.

The short take is that some of the banks — SVB, of course, but probably others — had loaded up on not just 10-year Treasurys but real estate-based bonds, like MBSs issued by the agencies, Fannie Mae and Freddie Mac, as well as CMBSs. If those bonds hit the market, suddenly getting written down in value and then on top of that dumped in a fire sale, the glut, whatever the size, could push down the value of all similar bonds. And they may well hit the market because, when a bank like SVB gets closed down and goes into federal receivership, the FDIC is required to get back as much value as possible, which includes selling off the bonds.