Description

This fund primarily aims to allocate at least 80% of its total assets to a broadly diversified collection of speculative-grade corporate debt instruments, frequently referred to as "junk" bonds. It also includes income-generating convertible securities and preferred shares. These holdings are either officially rated below investment grade (specifically, BB or lower, or an equivalent rating), or, if unrated by major agencies, are internally assessed by T. Rowe Price to possess similar credit risk. The appeal of these higher-risk securities lies in their potential to generate substantial income, which serves as a premium for investors taking on their elevated risk of default.