Mutual-fund managers addressing the Morningstar Investment Conference acknowledge the struggles of late last year, but many are hopeful — even bullish — about the opportunities they see.

A record percentage of U.S. mortgages entered foreclosure in the first quarter, and the jump in foreclosure starts compared with the fourth quarter was the biggest leap ever recorded by the Mortgage Bankers Association, the industry group’s latest survey shows.

U.S. financial stocks surrender early gains as concern about rising mortgage rates spreads from the bond market to banks, and a quarterly Federal Deposit Insurance Corp. report shows an industry straining.