What Happens to These Semi-anual Gaps for IHYG.L?

Discussion in 'Trading' started by Cyrix, Jul 21, 2017.

  1. Cyrix

    Cyrix

    (please see the image below)
    For IHYG.L, there are vertical gaps EXACTLY every half a year, why?
    I thought stockcharts.com always adjusted prices for dividends/splits.
    Is this an exception?

    Thanks.

    [​IMG]
     
  2. It is normal for bonds to have a sawtooth price chart. When interest is paid, prices drop. Then, prices recover as time passes to come near to the next interest payment day. This gives the price chart a sawtooth look over time.

    I don't think it is correct for bonds to adjust for interest payment. I don't know what is standard practice, though.
     
  3. Cyrix

    Cyrix

    Stockcharts.com says they have already adjusted for the dividends. For example, the chart for HYG is smooth without such semi-annual gaps.
    I am wondering why IHYG.L is not handled correctly.