Bank bonds are ready to take off, analysts say.

The environment for bonds is "terrific," said Allerton Smith, a bank bond analyst at Donaldson, Lufkin & Jenrette Inc., who predicts spreads will narrow once a supply of new issues tapers off.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

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