Banks Are Set for Bond Issuance Spree After Reporting Earnings

Wall Street’s biggest banks, lured by narrow bond spreads and strong investor demand, are likely to generate an unusually large amount of borrowing in April after they report first-quarter earnings.

The six largest lenders are expected to sell between $20 billion and $33 billion in corporate bonds this month, according to analysts from JPMorgan Chase & Co. and Bloomberg Intelligence. If sales hit the high end of that projection, it would be the third-busiest April, according to JPMorgan data going back to 2014.

Corporate bond risk premiums, or the spread over Treasury yields, are at their tightest since November ...