Fixed Income Capabilities
Free to think, free to perform
At a Glance
years managing fixed income assets
fixed income investment professionals*
USD of fixed income AUM¹
We empower our fixed income experts to think creatively and explore new ideas to help achieve your investment objectives.
Open minds, original ideas
Our world-class fixed income professionals are curious and astute experts in their field — bringing compelling views that see past common narratives. We deliver real insights on opportunities across global markets.
Ideas tested from many angles
We nurture a culture of curiosity and debate. Our teams are incentivized to think creatively and to share and challenge ideas. We test our ideas from different viewpoints to gauge their true risk and potential reward.
Portfolios aligned to client goals
Our portfolio managers are individually accountable for every decision and client outcome. We prioritize managing risk to ensure each portfolio is intentional in aligning risk while looking to generate return.
Our thoughts on the issues that matter most to you.
Uncertainty heightens the need for active fixed income management
Explore how active bond management can thrive in the new investing paradigm of higher inflation and volatilty.
Active fixed income ETFs have the potential to outperform
TRPI uses its proprietary research to offer a suite of actively managed fixed income ETFs that have the potential to deliver alpha for investors.
"Uneasy equilibrium” creates an opportunity in global fixed income
With the U.S. economy in an uneasy equilibrium, global fixed income offers appealing opportunities.
Our fixed income funds have outperformed their Morningstar peers.
69% of our I class fixed income mutual funds were in the top two Morningstar quartiles over the past 10 years1.
That’s the TRPI difference.
Past performance is not a reliable indicator of future performance.
1 Performance based on all fixed income I Class shares available at time of reporting. 25 of 39 (64%), 24 of 39 (62%), 27 of 39 (69%), and 27 of 39 (69%) of our I Class share fixed income mutual funds with at least a 10-year history were in the top two Morningstar quartiles in their respective Morningstar categories for the 1-, 3-, 5-, and 10-year periods ended December 31, 2024.
Funds in the 1st or 2nd quartile are likely to outperform the peer group average.
When compared to fund evaluation tools that are frequently used in the industry, and which can be scaled to compare all (or nearly all) funds, Morningstar's Scorecards have been tested to demonstrate an increased likelihood of selecting the best performers on a risk-adjusted basis over future five-year periods.
With an average of 22 years’ experience across markets and sectors, our fixed income professionals are committed to developing their expertise to help meet your objectives across market cycles.
Arif Husain, CFA®
Head of Global Fixed Income and CIO
Arif Husain is the head of Global Fixed Income and chief investment officer of the Fixed Income Division. He is chairman of the Fixed Income Steering Committee and a member of the firm’s Management Committee. Arif is lead portfolio manager for the Global Government Bond High Quality Strategy and the Global Government Bond Ex-Japan Strategy. He is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price International Ltd.
Mike Della Vedova
Global High Yield Portfolio Manager
Mike Della Vedova is a global high yield portfolio manager in the Fixed Income Division. He is a portfolio manager for the Europe High Yield Bond Strategy and co-portfolio manager for the Global High Yield Bond and Global High Income Bond Strategies. He is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price International Ltd.
Matthew Lawton, CFA®
Portfolio Manager
Matt Lawton is a portfolio manager in the Fixed Income Division. He manages the Global Impact Credit Strategy and the Global Impact Short Duration Bond Strategy. Matt is a member of the Investment Advisory Committees for the Corporate Income, New Income, Ultra Short-Term Bond, and Short-Term Bond Funds. He also is a member of the Fixed Income ESG Steering & Advisory and the ESG Committees. Matt is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.
Kenneth A. Orchard, CFA®
Head of International Fixed Income
Kenneth Orchard is head of International Fixed Income. He is portfolio manager for the Global Multi-Sector Bond and Diversified Income Bond Strategies and co-portfolio manager for the International Bond and Global Aggregate Bond Strategies. Kenneth is a member of the Fixed Income Steering Committee and the European and UK Asset Allocation Committees. He is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price International Ltd.
Experience our original ideas — contact us.
Insights
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A broad range of solutions designed to help meet your needs.
For investors who want to manage risk and seek to minimize loss by focusing on stable, low-risk investments that can better withstand market volatility.
Ultra Short-Term Bond Strategy
A cash alternative strategy that seeks a high level of income above that of a money market with minimal fluctuations in principal value
Stable Value Common Trust Fund
A conservative investment option that seeks to provide maximum current income while maintaining stability of principal
QM U.S. Bond Index Strategy
Pursues total return that seeks to match or incrementally exceed the performance of the U.S. investment-grade bond market
For investors who want to diversify against correlations across their portfolio to help manage risk and reduce volatility.
Dynamic Global Bond Fund
Seeks high current income and consistent performance by exploiting inefficiencies in the full universe of global fixed income and currency markets
Global Multi-Sector Bond Fund
A broadly diversified portfolio of domestic and foreign debt instruments that seeks to provide high income and some capital appreciation
Emerging Markets Corporate Bond Fund
Invests primarily in bonds issued by companies in emerging market countries to seek high current income and, secondarily, capital appreciation
For investors aiming to grow their investments via exposure to higher return (non-investment grade) bonds.
Tax-Free High Yield Fund
Invests primarily in long-term low- to upper-medium-grade municipal securities to seek a high level of income exempt from federal income taxes
U.S. High Yield Strategy
Aims to deliver greater income and total return potential by investing primarily in high yield bonds
Floating Rate Strategy
Seeks high current income and, secondarily, capital appreciation by investing primarily in floating-rate bank loans
For investors who need a reasonable and reliable income from their investments as a contribution to total returns.
Tax-Free High Yield Fund
Invests primarily in long-term low- to upper-medium-grade municipal securities to seek a high level of income exempt from federal income taxes
U.S. High Yield Strategy
Aims to deliver greater income and total return potential by investing primarily in high yield bonds
Tax-Free Short-Intermediate Fund
Seeks to provide a high level of income exempt from federal income taxes with modest price fluctuation by investing primarily in short- and intermediate-term investment-grade municipal securities
For investors who seek to mitigate the impact of interest rate risk by focusing on strategies with low and dynamic duration approaches.
Ultra Short-Term Bond Strategy
A cash alternative strategy that seeks a high level of income above that of a money market with minimal fluctuations in principal value
Dynamic Global Bond Fund
Seeks high current income and consistent performance by exploiting inefficiencies in the full universe of global fixed income and currency markets
Floating Rate Strategy
Seeks high current income and, secondarily, capital appreciation by investing primarily in floating-rate bank loans
Your investment process. Our expertise.
Refine holdings, build models, adjust portfolios, and inform investment decisions. Let's put our proven multi-asset expertise to work for your clients.
Frequently asked questions
We are an active, global fixed income management firm that is relentlessly pursuing investment excellence through:
- Expertise and dedicated resources in every major global fixed income sector
- Fundamentally driven, in-depth research processes
- A culture that promotes collaboration and sharing of best ideas
- A focus on pursuing strong risk-adjusted, long-term returns
Lead portfolio managers set sector allocation, risk budget, currency, country/duration, and yield curve exposures. They are fully accountable for security selection working with sector teams and for the strategy’s performance. Sector portfolio managers work with the lead portfolio manager to incorporate the top-down view and contribute high-conviction security selection and execution in coordination with their respective credit research and trading teams. Each sector portfolio manager is supported by a dedicated team of research analysts and traders. Leveraging the global research teams, our experienced portfolio managers work together to strive to construct an optimal fixed income portfolio. Our experienced professionals cover all time zones and are immersed in local markets to identify and explore investment opportunities for our clients.
Our rigorous research platform includes dynamic perspectives and differentiated insights from firmwide collaboration across asset classes, sectors, and regions including directors of research, credit analysts, economists, quantitative portfolio managers, and quantitative analysts.
We have a process we call Policy Week. Policy Week is a set of monthly meetings designed to promote collaboration, challenge assumptions, and improve decisions. Top-down discussions of Policy Week complement our fundamental credit research process. Conviction scores, quantitative tools, and market forecasts facilitate the Policy Week process. The meeting typically covers global economics, global interest rate and currency strategy, global sector strategy, and global forecasting.
We integrate risk management through:
- Proprietary research to seek attractive compensation for security-level risks
- Portfolio construction to efficiently use portfolio risk budget
- Portfolio risk assessment to reveal portfolio risks under normal and adverse markets
- Oversight to ensure portfolio risks are aligned with mandates
High-yield bonds are issued by companies with lower credit ratings and offer higher yields to compensate for credit risk. They carry a higher risk of default compared to investment-grade bonds.
By investing across multiple sectors, investors can spread risk and reduce the impact of any single sector's downturn on their overall portfolio. This approach provides the flexibility to shift allocations based on changing market conditions, interest rates, and economic outlooks, potentially enhancing returns.
Fixed income ETFs give investors access to bonds and other fixed income securities, such as US Treasuries, corporate debt, municipal bonds, and floating rate notes. Some potential benefits of fixed income ETFs include liquidity, portfolio transparency, and diversification.
Many investors use fixed income ETFs to generate income. Some use fixed income ETFs to seek portfolio stability in periods of equity market volatility. Some investors use specialized fixed income ETFs—like high yield and floating rate—to potentially diversify income sources, credit exposure, and duration risk.
Credit risk is the chance that any of the portfolio's holdings will have their credit ratings downgraded or will default (fail to make scheduled interest or principal payments), potentially reducing the portfolio's income level and share price.
Risks
Fixed Income: Fixed-income securities are subject to credit risk, liquidity risk, call risk, and interest-rate risk. As interest rates rise, bond prices generally fall.
Inflation risk: high or sustained inflation levels will erode the purchasing power of distributions and the value of an investment.
Interest rate risk: the decline in bond prices that accompanies a rise in the overall level of interest rates.
Reinvestment risk: in a declining interest rate scenario, investors will reinvest distributions at a lower interest rate.
Risk Considerations:
All investments are subject to market risk, including the possible loss of principal. Fixed-income securities are subject to credit risk, liquidity risk, call risk, and interest-rate risk. As interest rates rise, bond prices generally fall. Investments in bank loans may at times become difficult to value and highly illiquid; they are subject to credit risk such as nonpayment of principal or interest, and risks of bankruptcy and insolvency. Investments in high-yield bonds involve greater risk of price volatility, illiquidity, and default than higher-rated debt securities. International investments can be riskier than U.S. investments due to the adverse effects of currency exchange rates, differences in market structure and liquidity, as well as specific country, regional, and economic developments. These risks are generally greater for investments in emerging markets. Some income may be subject to state and local taxes and the federal alternative minimum tax (AMT).
Important Information
*All data as of 12/31/2024 unless otherwise stated.
1The total fixed income assets managed by T. Rowe Price Associates, Inc., and its investment advisory affiliates. Total fixed income assets include all fixed income separate accounts and funds along with a portion of certain T. Rowe Price U.S.-registered multi-asset funds in U.S dollars (USD) as of 12/31/2024.
For more information on the methodology of this analysis, please visit troweprice.com/complete-performance-study.
Past performance is no guarantee of future results. All investments are subject to risk, including the possible loss of principal. Results from other time periods may differ. Active investing may have higher costs than passive investing and may underperform the broad market or passive peers with similar objectives. Passive investing may lag the performance of actively managed peers as holdings are not reallocated based on changes in market conditions or outlooks on specific securities. Results for other time periods will differ.
Download a mutual fund prospectus; each includes investment objectives, risks, fees, expenses, and other information that you should read and consider carefully before investing.
The T. Rowe Price common trust funds (Trusts) are not mutual funds; rather, the Trusts are operated and maintained so as to qualify for exemption from registration as mutual funds pursuant to Section 3(c)(11) of the Investment Company Act of 1940, as amended. The Trusts are established by T. Rowe Price Trust Company under Maryland banking law, and their units are exempt from registration under the Securities Act of 1933. Investments in the Trusts are not deposits or obligations of, or guaranteed by, the U.S. government or its agencies or T. Rowe Price Trust Company and are subject to investment risks, including possible loss of principal. Although the T. Rowe Price Stable Value Common Trust Fund seeks to preserve the value of your investment at $1.00 per unit, it cannot guarantee to do so. It is possible to lose money by investing in the Trust.
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