Health care convertibles mixed; energy ‘trickles back’; China-related names active on data

By Rebecca Melvin

New York, April 13 – The health care and energy sectors remained the main focus of the convertibles market on Wednesday. Health care traded mixed, based on company-specific news, while energy remained firm amid a slip in oil prices, a New York-based sellsider said.

Jazz Pharmaceuticals plc traded up on an outright basis and expanded on a dollar-neutral, or swap, basis as shares of the Dublin-based biopharmaceutical company gained 5% on the back of a positive ruling by U.S. Patent and Trademark Office on the company’s Xyrem drug.

The Jazz convertibles were up 2.5 points dollar neutral, the sellsider said.

Depomed Inc.’s convertibles were up about 2 points, and shares of the Newark, Calif.-based specialty pharmaceutical company were also up.

Clovis Oncology Inc.’s convertibles were lower, trading at 60 from 61 on Tuesday, but the bond has generally held in relative to the underlying shares.

Meanwhile, U.S. energy convertibles quieted down somewhat after a dip in crude oil prices following an almost 20% jump in the last week.

“It’s trickling back today,” a New York-based trader said of the energy sector convertibles.

Separately, a few China-related names were pulled into trade in U.S. convertibles early Wednesday on the back of Chinese trade data that was better than expected.

Vipshop Holdings Ltd.’s convertibles traded up a little more than a point to 104.875, while shares of the Guangzhou, China-based online discount retailer rose more than 2% to about $14.60, according to Trace data.

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