Qihoo convertibles slip back; YY trades; health care mostly lower; Jazz, Horizon down

By Rebecca Melvin

New York, May 12 – China’s internet and health care sectors garnered attention in the convertibles space on Thursday, although volumes remained generally light, market sources said.

One exception to the light volume was Qihoo 360 Technology Co. Ltd. Those convertibles slipped amid pretty strong volume as shares of the U.S.-listed Chinese PC and mobile internet security company eased.

The Qihoo stock and bonds have been volatile this week amid speculation regarding whether China’s regulators will allow its long-planned buyout by a consortium of investors including the company’s chief executive officer to be completed.

Under the terms of the Qihoo notes, holders can put the convertibles if there is a fundamental change such as the buyout deal. The Qihoo 1.75% convertibles due 2021 traded down about a point to 94.4 on Thursday.

The 2.25% convertibles of YY Inc., another U.S.-listed Chinese company with prospects for going back to its domestic market, traded up 0.5 point to 96.5, however.

Elsewhere, health care convertibles were under pressure.

“The health care tape has been ugly,” a trader focused on health care convertibles said.

Jazz Pharmaceuticals plc’s 1.875% convertibles due 2021 were down 2 points to 110.6 as shares slipped 3% to $144.70.

Horizon Pharma plc’s 2.5% convertibles due 2022 traded down more than a point to 82.97, according to Trace data.

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