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Fixed Income Capabilities
Free to think, free to perform
Across our broad range of fixed income solutions, our investment teams have the freedom to explore original ideas and test them through rigorous research in pursuit of better client outcomes.
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 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 to generate return.
Our thoughts on the issues that matter most to you.
Sep 2024
FIXED INCOME
Ahead of the Curve: The San Andreas fault of finance shakes the markets
Monetary tightening in Japan is rearranging global capital flows.
Jun 2024
FIXED INCOME
Credit investing for today’s evolving markets
Headwinds call for choosing credit solutions with rigorous research
Aug 2024
FIXED INCOME
Why passive flows and inelastic markets don’t mix
The rise of passive fixed income investing has caused market structure to deteriorate
Our strategies beat their benchmarks more often – and at a higher level – than competitors.*
T. Rowe Price equity and fixed income strategies delivered higher average returns than their benchmarks 80% of the time. Plus, they beat their benchmark more frequently—and with better returns—than the average of all active managers. Dive into our active management composite study and learn more about how we achieved this.See below for standardized returns and other information about the T. Rowe Price composites in this analysis.
Proven Performance
Our fixed income strategies beat their benchmarks 81% of the time.
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.
More return. More often.
Ten-year periods, rolling monthly, over the last 20 years ended 12/31/23
Past performance is no guarantee of future results. View standardized returns and other information about the T. Rowe Price composites in this analysis.
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.
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.
Samy Muaddi, CFA®
Head of Emerging Markets
Samy Muaddi is the head of Emerging Markets in the Fixed Income Division. He is the portfolio manager of the Emerging Markets Bond Strategy and co-manages the Global High Income Bond Strategy. Samy also manages a range of customized separately managed accounts in emerging market debt and is a member of the Fixed Income Steering Committee. He previously managed the firm’s Emerging Market Corporate Bond Strategy from 2015 to 2024 and the firm’s Asia Credit Bond Strategy from its inception until 2020. Samy also is a vice president of T. Rowe Price Group, Inc., T. Rowe Price Associates, Inc., and T. Rowe Price International Ltd.
Steve Boothe, CFA®
Head of Investment Grade
Steve Boothe is the head of Investment Grade and a portfolio manager in the Fixed Income Division. He has lead portfolio management responsibilities for the Global Investment Grade Corporate Bond, US Investment Grade Corporate Bond, and Dynamic Credit Strategies. He is a member of the Sector Strategy Advisory Group, with a focus on global and U.S. investment-grade corporate bond portfolios. Steve is a co-president of the Investment Advisory Committee of the Corporate Income Fund and a member of the Investment Advisory Committees for the Investment-Grade Corporate Multi-Sector Account Portfolio, Global Multi-Sector Bond Fund, New Income Fund, and Institutional International Disciplined Equity Fund. In addition, he also is an Investment Advisory Committee member of the Institutional Income, International, Global, and China Evolution Equity Funds and an Investment Advisory Committee member of the Institutional Long Duration Credit, Dynamic Credit, and International Disciplined Equity Funds. Steve also is a member of the Fixed Income Steering, Global Trading, and Core/Core Plus Strategy Committees. He is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.
Experience our original ideas.
A broad range of solutions designed to help meet your needs.
For investors seeking higher return potential, particularly across global credit markets
Emerging Markets Bond
This strategy seeks current income and capital appreciation primarily through investment in fixed income securities issued by emerging nations.
Global High Income Bond
This strategy seeks high income and, secondarily, capital appreciation by investing primarily in global, below-investment grade corporate debt securities.
For investors seeking more flexible, alpha-driven portfolios that exhibit a lower correlation across asset classes
Global Multi-Sector Bond
This strategy seeks high income and some capital appreciation primarily through investment in sectors and securities within the Bloomberg Global Aggregate Bond USD Hedged Index.
Frequently asked questions
What are fixed income investments?
Fixed income investments are investments that generally deliver a regular, predetermined interest or dividend payments to investors until their maturity date. At maturity, investors are repaid the principal amount they had invested, absent insolvency or financial reorganization of the issuer.
What are the potential benefits of investing in fixed income?
- Stable income. Generally, fixed income investments can generate more consistent returns in the form of interest payments, unlike other investments that can be less steady and predictable.
- Diversification. As fixed income (bonds) and equity markets (stocks) are typically negatively correlated, fixed income investments offer portfolio diversification benefits for investors.*
- Reduced credit risk. Bondholders generally are paid before shareholders in the event of an issuer’s bankruptcy, somewhat reducing the risk fixed income investors are exposed to. Additionally, some governments, such as the UK and U.S., have never defaulted on fixed income investments, meaning that the risk of default on these securities is extremely low.
*Diversification cannot assure a profit or protect against loss in a declining market.
What different types of fixed income assets exist?
In broad terms, the most common types of bonds, that are issued by various governments and corporations. Bonds are rated by credit agencies based on the level of risk they’re exposed to. Bonds with higher credit ratings, which are at a lower risk of default but generally offer lower yields to investors, are referred to as investment grade. Contrastingly, bonds with lower credit ratings, which expose investors to a higher level of credit risk but offer higher yields in return, are referred to as high yield.
What defines T. Rowe Price’s approach to fixed income investing?
We combine original ideas and disciplined decisions in our fixed income approach. Our investment process is designed to help identify and select the best opportunities from the full range of fixed income securities seeking to deliver appropriate returns and level of risk in each portfolio. Fixed income portfolio managers are able to draw on the best ideas from our own internal proprietary credit research, based on each strategy’s objectives and intended outcome. Our people think independently and act collaboratively to develop and enhance ideas for different fixed income portfolios and objectives.
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
Where does T. Rowe Price invest, and what types of fixed income assets does T. Rowe Price invest in?
We are global fixed income investors with strategies focused on Europe, Asia Pacific, the United States, and emerging markets, as well as global strategies. We invest in sovereign bonds, investment-grade credit, high yield and bank loans, emerging markets, securitized debt, municipals, and cash. We also offer customized solutions.
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.
What financial goals can T. Rowe Price Fixed Income products help me achieve?
We offer a diversified range of strategies supported by broad sector expertise that can help you with the following:
- Capital preservation: Manage risk and seek to minimize loss by focusing on stable, low-risk investments that we believe can better withstand market volatility.
- Diversification: Diversify against correlations across your portfolio to help manage risk and reduce volatility.
- Growth: Grow your investments via exposure to higher expected return (non-investment grade) bonds.
- Income: Gain a reasonable and reliable income from your investments as a contribution to total returns.
- Inflation and rates risk reduction: Mitigate the impact of interest rate risk by focusing on strategies with low- and dynamic-duration approaches.
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.
What is the T. Rowe Price Fixed Income credit research process?
Every credit is assigned an internal rating and conviction score by our global credit analyst team, separate from the major rating agencies. Our ratings generally have been more conservative than those of major rating agencies, and additionally, our average win/loss ratio versus the major rating agencies is greater than 2:1.1
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
Why do our fixed income analysts work with equity and ESG (environmental, social, and governance) analysts?
No individual or team has a monopoly on good ideas. We actively nurture a culture of intellectual curiosity and empowerment. Our teams are incentivized to share insights, challenge consensus, and bring their own perspectives. We test our investment ideas across different specialist teams—the best way to gauge their risk and reward potential. This allows our fixed income analysts to build a 360-degree view of every potential investment, which we believe leads to more context for well-rounded decisions and better outcomes.
What ESG resources are available to our fixed income portfolio managers?
Our dedicated Responsible Investing (RI) team assesses the environmental and social profiles of individual fixed income securities and portfolios. The team applies the Responsible Investing Indicator Model (RIIM), our proprietary tool for screening environmental, social, and ethics factors. The RIIM flags any elevated RI risks with an investment and can serve to identify investments with positive RI characteristics and manage RI factor exposures at the portfolio level. The RIIM processes data from T. Rowe Price systems, company reports, nongovernmental organizations, and select third-party vendors to assess the responsible investing profiles of more than 14,000 corporate and sovereign entities, globally.
1 The study is ongoing and continuous since 1998. Due to the nature of the analysis, more recent periods have smaller data samples; therefore, data are only presented through 2021. T. Rowe Price wins when an Agency adjusts its prior rating to match T. Rowe Price’s rating. T. Rowe Price loses when T. Rowe Price adjusts its prior ratings to match an Agency’s rating. T. Rowe Price Ratings Comparison Versus the Agencies—Material Assumptions:
T. Rowe Price credit analysts perform independent credit evaluations for several thousand securities (T. Rowe Price Ratings). Internal T. Rowe Price systems maintain ratings from Moody’s, Fitch, and Standard & Poor’s (collectively known as External Rating Agencies) and current and historical T. Rowe Price holdings classified by issuer and debt level. T. Rowe Price analysts compare T. Rowe Price Ratings with each of the External Rating Agencies—using notch ratings, which converts all the ratings into a single numeric scale—to generate variance data for specified dates. Aggregate reporting compares each External Rating Agency’s rating and determines the total number of ratings that are the same, higher, or lower compared with the T. Rowe Price Ratings. The comparison of these results is then used to determine the percentage where T. Rowe Price Ratings are either the same as, more conservative (higher) than, or less conservative (lower) than the External Rating Agency ratings (Variance Reporting). The comparison excludes T. Rowe Price short-term securities (those with maturities of less than 397 days), T. Rowe Price taxable money market securities, GSE (government-sponsored enterprise) mortgages, escrowed-to-maturity and prerefunded securities. A security is excluded from T. Rowe Price’s conclusions if either T. Rowe Price or the External Ratings Agencies have not rated the security.
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
Investment Risks:
Past performance is not a reliable indicator of future results.
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.
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.
All data as of 30 June 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 as of 30 June 2024.
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 1/1/2003 to 12/31/2022.
Analysis aggregates and averages the performance history of 26 fixed income composites covering 2,407 periods.
Effective January 1, 2024, Arif Husain will succeed Andrew McCormick as head of Global Fixed Income.
T. Rowe Price Associates, Inc. and T. Rowe Price Investment Management, Inc., are affiliated companies and investment advisers of T. Rowe Price strategies.
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