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At a Glance
We empower our fixed income experts to think creatively and explore new ideas to help achieve your investment objectives.
Our thoughts on the issues that matter most to you.
Mar 2025
Ahead of the Curve
Ahead of the Curve: A contrarian scenario comes true on remarkable German fiscal push
Germany’s fiscal expansion reshapes global bond markets.
Mar 2025
From the Field
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.
Our fixed income strategies beat their benchmarks 81% of the time.
They delivered higher average returns than their benchmarks over time. And they showed better results in the vast majority of rolling monthly periods over a 20-year span.
That's the T. Rowe Price difference.
Past performance is not a reliable indicator of future performance.
1 Based on an internal study done by T. Rowe Price. For more information on the methodology of this analysis, please see Comparing T. Rowe Price Composites with Their Benchmarks, which is available upon request.
Ten-year periods, rolling monthly, over the last 20 years ended 12/31/23.
Analysis by T. Rowe Price. Represents a comparison of all marketable institutional fixed income composites compared to the official composite primary benchmark assigned to each. Excludes money market, and index/passive composites. In order to avoid double-counting in the analysis, specialized composites viewed as substantially similar to strategies already included (e.g. constrained strategies, ex-single country excluded strategies, etc.) are also excluded. Composite net returns are calculated using the highest applicable separate account fee schedule for institutional clients. All figures in USD. The performance of each T. Rowe Price composite was compared against its official composite primary benchmark using 10-year rolling monthly periods from 1/1/2004 to 12/31/2023.
Analysis aggregates and averages the performance history of 28 fixed income composites covering 2,555 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.
Experience our original ideas.
Our fixed income range
Inspired to meet investor needs
While the investing landscape frequently changes, investor needs evolve over the longer term. Relying on our differentiated perspectives, we manage a wide range of investment strategies to help achieve a diverse set of goals.
Frequently asked questions
What are the key differentiators of T. Rowe Price Fixed Income investing?
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
What is the typical portfolio management team structure for T. Rowe Price Fixed Income?
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.
What makes the T. Rowe Price Fixed Income research platform so robust?
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.
How is risk management integrated into the T. Rowe Price Fixed Income portfolio management process?
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
How does the T. Rowe Price fixed income team evaluate holdings and strategies?
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.
How we integrate risk management.
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
What are high-yield bonds, why invest in them and what risks do they carry?
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.
How can bonds be used to diversify an investment portfolio?
Bonds can reduce overall portfolio volatility and provide a steady income stream. They tend to have a low correlation with stocks, meaning they can perform differently under various market conditions, thus enhancing diversification.
What is the role of derivatives in a bond portfolio?
Derivatives play several roles in a bond portfolio, primarily aimed at enhancing portfolio management and risk control. For example, hedging against risk such as interest rate risk, currency risk, and credit risk. Allowing mangers to create leverage and access no traditional markets. They also allow for more efficient adjustments to portfolio duration, credit exposure, and currency exposure without the need to buy or sell the underlying bonds directly.
Why consider a multi-sector bond approach?
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.
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.
Important Information
*All data as of 31/12/2024 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 31/12/2024.
Past performance is not a reliable indicator of future performance. All investments are subject to 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. Results from other time periods may differ.
T. Rowe Price Associates, Inc. and T. Rowe Price Investment Management, Inc., investment advisers of T. Rowe Price strategies.
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 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 magnified in emerging markets. Derivatives can be highly volatile, illiquid, and difficult to value, and changes in the value of a derivative may not properly correlate with changes in the value of the underlying asset, reference rate, or index. Diversification cannot assure a profit or protect against loss in a declining market.
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