Thrift executives watched this week's bond rally with sinking hearts.

Every basis-point drop in long rates makes it more likely that thrift portfolios, dominated by adjustable-rate mortgages, will hemorrhage as homeowners with adjustables refinance into cheap fixed-rate loans.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.