Convertibles weaker in thin trading; energy issues indicated lower; Qihoo edges downward

By Rebecca Melvin

New York, July 6 – U.S. convertibles were slightly weaker in quiet trade on Monday following a long weekend for the July 4 holiday and after Greece’s referendum in which that country voted against accepting creditor demands, or austerity, in exchange for a debt bailout package.

Following the vote, Greek finance minister Yanis Varoufakis resigned.

Stocks fell and bonds rose on Monday in response to the vote, and there was “barely any market at all” in convertibles, a New York-based trader said.

The convertibles market was lower by about 0.25 point across the board from Wednesday, a New York-based trader said later in the session, but there was no significant volume and it was difficult to determine exactly where the market was.

Despite the broader markets’ risk-off character and sharply lower crude oil prices, convertibles were “trendless,” a trader said.

Energy names were indicated lower.

Meanwhile, Qihoo 360 Technology Co. Ltd. was also “a little weaker,” on swap after the China PC and mobile internet security products provider announced that it has hired J.P. Morgan Securities (Asia Pacific) Ltd. as financial adviser to assist in weighing a “going private” proposal received June 17.

Qihoo’s 2.5% convertibles due 2018 traded at 97.60, which was down about a point on an outright basis from the previous level, when shares were down about 5% at $63.68.

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