Midday Commentary: National Health active, lower dollar neutral; market quiets ahead of weekend

By Rebecca Melvin

New York, March 21 - National Health Investors Inc.'s 3.25% convertibles, which debuted in the market on Thursday, continued trading Friday and were little changed outright, but lower on a dollar-neutral, or hedged, basis, a New York-based trader said.

The health care real estate investment trust's new convertibles were seen at 99.875 bid, 100.125 offered with its shares trading around $60.70. The stock was up nearly 1%.

"They are down about 0.25 point, it looks like," the trader said. He attributed the lackluster performance of the new health care REIT convertibles to pricing that was a little rich to begin with.

Elsewhere, the convertibles market was quiet. The week's new issuance put in a mixed performance overall, with the new Navistar International Corp. 4.75% convertibles still pretty close to par despite weakness in its stock. "They held in there," the trader said. But YY Inc.'s 2.25% convertibles due 2019 contracted.

Emerald Oil Inc.'s new 2% convertibles "did okay," as did Gramercy Property Trust Inc.'s small $100 million deal of 3.75% convertibles. "It was a mixed bag. But the smaller deals did better than the bigger deals," the trader said.

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