T. Rowe Price High-YieldPRHYX

Morningstar Rating

Fund Research and Analysis

by Harry Milling

T. Rowe Price High-Yield's stability deserves high marks given its infamously volatile category.

This fund invests in bonds that carry high yields to compensate for their higher risk of default due to the issuing firms' high debt loads and/or business Read more

Kudos

Strong credit research has helped the fund avoid significant credit blowups.

The manager has an enviable record at this fund since taking over in mid-1996.

Thanks to its diversification, the fund hasn't been as volatile as the typical high-yield fund. Read more

Risks

High-yield bond issuers run the risk of not being able to pay back or refinance their outstanding debts. Read more

Strategy

Manager Mark Vaselkiv keeps this fund well diversified, which reduces its issue-specific risk. Vaselkiv also tends to favor less-speculative bonds than many of his peers, although he has the flexibility Read more

Management

Mark Vaselkiv took over this fund in 1996, and it has performed very well on his watch. He is backed by a 15-member team that includes analysts and traders. The team works closely with T. Rowe Price's equity-research staff. Read more

Inside Scoop

This fund's emphasis on diversification and its slightly higher-quality profile help limit risk. Still, like other junk-bond funds, it can suffer when the economy slows. Read more

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