Heard on the Street: Banks and insurers face the killing yields

Superlow interest rates that are meant to be high-octane fuel for the economy are gumming up financial engines

The financial services industry is built for speed. But while superlow interest rates are meant to be high-octane fuel for the economy, they are gumming up financial engines.

The problem for many banks, insurers and fund managers is that their cost of funding can't fall below zero. Yet returns from a number of businesses or products continue to decline with already near-record low bond yields. That compresses margins and threatens to make some business lines uneconomic.

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