Global investment-grade credit returned 1.3% in April, its best month since August, while high-yield gained 2.3%, its strongest performance since 2023.
The firms said investors are acting as if the Middle East war is over and are encouraged by solid US corporate earnings.
Barclays strategists described the mood as a "don't worry, be happy" market, but cautioned the rally could fade as quickly as it emerged.
With markets rallying on fragile hope, what economic time bombs are experts warning investors about now?
Could the opaque world of private credit trigger the next financial crisis, despite expert assurances?
Is the private credit market, heavily invested in software, unknowingly financing its own AI-driven obsolescence?