General Market Review
In April 2026, U.S. equity markets delivered a historic rebound, with major indices recording their strongest monthly performance in years. The rally was driven primarily by a fragile ceasefire in the Middle East and an exceptionally strong first‑quarter earnings season, led by technology and AI‑related companies.
A two‑week ceasefire between the United States and Iran significantly reduced geopolitical tensions in the region. Oil prices, which had surged earlier in the month, fell by more than 9% on April 17, triggering a broad equity market rally. More than 90% of Nasdaq‑100 companies reported earnings above expectations, while the Philadelphia Semiconductor Index (SOX) surged 38% in April, marking its best monthly performance since February 2000.
U.S. macroeconomic data released in April suggested a gradual stabilization of economic conditions. Labor market indicators showed modest improvement, with non‑farm payrolls increasing by 178k in March, compared with a revised decline of 92k in February.
Inflation edged slightly higher compared with the previous month. Headline CPI rose to 3.3% from 2.4%, while core CPI increased to 2.6% from 2.5%.
The Federal Reserve left monetary policy unchanged in April, maintaining the federal funds target range at 3.50%–3.75%. Forward guidance continued to emphasize a data‑dependent approach.
In fixed‑income markets, government bond yields rose modestly. The yield on 10‑year U.S. Treasuries increased by 5 basis points, from 4.32% to 4.37%, while 10‑year German Bund yields climbed by 4 basis points, from 3.00% to 3.04%.
Equity markets also advanced globally, with the MSCI World Index gaining 9.6% in U.S. dollar terms, while the MSCI Europe Index rose 5.2% in euro terms.
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Brent crude prices remained elevated throughout April as the ongoing blockade of the Strait of Hormuz, together with the lingering effects of damaged energy infrastructure in the Gulf region, continued to constrain global supply. Following the sharp rally in March, Brent crude traded with increased volatility and closed the month at USD 114.0 per barrel, slightly below the March close of USD 118.0 per barrel.
With the destruction of approximately 17% of Qatar’s LNG capacity now confirmed as a multi‑year reconstruction effort, European natural gas prices rose sharply. Gas benchmark prices increased by 22% in April, driven by growing concerns over a structural supply shortfall heading into the upcoming winter season.
Credit markets moved broadly in line with equities, supported by improved risk sentiment. Spreads tightened across both investment‑grade (IG) and high‑yield (HY) markets. U.S. high‑yield spreads tightened by 54 basis points in April, while European high‑yield spreads compressed by 51 basis points, largely reversing the widening observed in March.
In the Nordic high‑yield bond market, April marked a clear recovery following weak performance in March. The Nordic HY index returned 0.9% during the month, bringing year‑to‑date gains to 2.4%.
The U.S. high‑yield bond market gained 1.7% in April, lifting year‑to‑date performance to 1.2%. The European high‑yield market outperformed on a monthly basis, rising by 1.8%, although year‑to‑date returns remained modest at 0.2%.
The energy segment delivered solid returns, with the exploration and production (E&P) sector increasing by 1.9% during the month, while the oil and gas services sector advanced by 1.1%.
The Seahawk Credit Opportunities Fund posted solid performance in April, supported by its sector positioning, including a 17.4% allocation to exploration and production and 21.8% exposure to oilfield services. The EUR‑S and USD‑S share classes rose by 1.02% and 1.17% month‑to‑date, respectively. On a year‑to‑date basis, both share classes are up 1.1% and 1.6%, significantly outperforming the broader U.S. and European high‑yield markets.
During the month, the Fund established positions in two new bond issues within the European E&P sector. EnQuest, an independent UK‑based oil and gas producer with operations in the North Sea and Southeast Asia, issued a USD 675 million senior unsecured bond with a 9.875% coupon. Proceeds will be used to fully redeem the company’s USD 465 million 11.625% senior notes due 2027, enhance liquidity for general corporate purposes—including the potential repayment of its GBP 133.3 million 9% retail notes due 2027—and cover related fees and expenses. EnQuest operates with a cash‑flow breakeven oil price of approximately USD 50 per barrel and currently maintains a leverage ratio of 0.9x net debt to EBITDA.
Serica Energy, an AIM‑listed E&P company with assets on the UK Continental Shelf, issued a USD 300 million five‑year unsecured bond with a 7.875% coupon. Proceeds will be used to diversify funding sources beyond the company’s existing reserve‑based lending (RBL) facility. Following the transaction, Serica is expected to have liquidity of approximately USD 580 million to support its growth strategy, including organic investments and value‑accretive M&A. On a comparative basis, Serica is projected to maintain one of the lowest leverage profiles among peers, with estimated net debt to EBITDA of just 0.1x in 2027 (assuming Brent oil prices of USD 70 per barrel and gas prices of USD 9.5/mmbtu), compared with median leverage levels of approximately 0.6x for BB‑rated issuers and 0.9x for B‑rated issuers.
For more information, you can find our latest Factsheet – April 2026.
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