T. Rowe Price Floating Rate Fund (PRFRX) N-CSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act File Number: 811-22557

T. Rowe Price Floating Rate Fund, Inc.

(Exact name of registrant as specified in charter)

100 East Pratt Street, Baltimore, MD 21202

(Address of principal executive offices)

David Oestreicher

100 East Pratt Street, Baltimore, MD 21202

(Name and address of agent for service)

Registrant’s telephone number, including area code:  (410) 345-2000

Date of fiscal year end:  May 31

Date of reporting period:  November 30, 2022

Item 1. Reports to Shareholders

(a) Report pursuant to Rule 30e-1

Highlights

and

Market

Commentary

Management’s

Discussion

of

Fund

Performance

Performance

and

Expenses

Financial

Highlights

Portfolio

of

Investments

Financial

Statements

and

Notes

Additional

Fund

Information

November

30,

2022

SemiAnnual

Report

For

more

insights

from

T.

Rowe

Price

investment

professionals,

go

to

troweprice.com

.

T.

ROWE

PRICE

PRFRX

Floating

Rate

Fund

–

.

PAFRX

Floating

Rate

Fund–

.

Advisor  Class

TFAIX

Floating

Rate

Fund–

.

I  Class

TRIZX

Floating

Rate

Fund–

.

Z Class

T.

ROWE

PRICE

Floating

Rate

Fund

HIGHLIGHTS

The

Floating

Rate

Fund

performed

in

line

with

the

benchmark

S&P/LSTA

Performing

Loan

Index

and

outperformed

the

Lipper

peer

group

average

for

the

six

months

ended

November

30,

2022.

Credit

selection

drove

the

portfolio’s

relative

performance

during

our

reporting

period,

which

was

especially

strong

in

the

financials

and

information

technology

segments.

We

increased

the

portfolio’s

holdings

of

high-conviction

names

among

financials

while

reducing

exposure

to

the

health

care

industry.

We

are

optimistic

that

we

can

continue

finding

value

in

the

loan

market

and

believe

our

shareholders

will

be

fairly

compensated

for

remaining

invested

in

the

asset

class

through

the

challenging

macro

environment

in

the

year

ahead.

Log

in

to

your

account

at

troweprice.com

for

more

information.

*

Certain

mutual

fund

accounts

that

are

assessed

an

annual

account

service

fee

can

also

save

money

by

switching

to

e-delivery.

T.

ROWE

PRICE

Floating

Rate

Fund

Market

Commentary

1

Dear

Shareholder

Global

stock

markets

generally

produced

negative

returns

during

the

first

half

of

your

fund’s

fiscal

year,

the

six-month

period

ended

November

30,

2022,

while

rising

bond

yields

weighed

on

returns

for

fixed

income

investors.

Investors

contended

with

tightening

financial

conditions

and

slowing

economic

and

corporate

earnings

growth,

but

hopes

that

persistently

high

inflation

might

be

easing

helped

spark

a

rally

late

in

the

period

that

partially

offset

earlier

losses.

In

the

U.S.,

equity

results

were

mixed.

The

Dow

Jones

Industrial

Average

recorded

positive

results

and

mid-cap

growth

stocks

also

performed

well,

while

most

other

benchmarks

finished

in

negative

territory.

The

S&P

500

Index

was

modestly

negative

for

the

period,

but

results

varied

widely

at

the

sector

level,

with

industrials

and

energy

shares

delivering

strong

gains

while

communication

services

stocks

struggled.

Outside

the

U.S.,

most

major

country

and

regional

benchmarks

lost

ground.

Emerging

markets

stocks

generally

underperformed

shares

in

developed

markets.

Meanwhile,

the

U.S.

dollar

strengthened

versus

most

currencies

during

the

period,

which

weighed

on

returns

for

U.S.

investors

in

international

securities.

Elevated

inflation

remained

a

leading

concern

for

investors

throughout

the

period,

although

hopes

that

inflation

may

have

peaked

led

to

rallies

during

the

summer

and

again

in

November.

The

October

consumer

price

index

report,

which

was

released

in

mid-November,

was

better

than

expected

and

showed

price

increases

easing

from

recent

40-year

highs.

However,

the

7.7%

year-over-

year

increase

in

the

headline

inflation

number

remained

well

above

the

Fed’s

2%

target.

In

response

to

the

high

inflation

readings,

global

central

banks

continued

to

tighten

monetary

policy,

and

investors

focused

on

communications

from

central

bank

officials

on

how

high

rates

would

have

to

go.

The

Federal

Reserve

delivered

four

historically

large

75-basis-point

(0.75

percentage

point)

rate

hikes

during

the

period,

which

lifted

its

short-term

lending

benchmark

to

a

target

range

of

3.75%

to

4.00%

by

early

November,

the

highest

level

since

2008.

As

our

reporting

period

came

to

an

end,

Fed

officials

signaled

that

they

were

likely

to

dial

back

the

pace

of

rate

increases.

Bond

yields

increased

considerably

across

the

Treasury

yield

curve

as

the

Fed

tightened

monetary

policy,

with

the

yield

on

the

benchmark

10-year

U.S.

Treasury

note

climbing

from

2.85%

at

the

start

of

the

period

to

3.68%

at

the

end

of

November.

Significant

inversions

in

the

Treasury

curve,

which

are

often

considered

a

warning

sign

of

a

coming

recession,

occurred

during

the

period

T.

ROWE

PRICE

Floating

Rate

Fund

2

as

shorter-maturity

Treasuries

experienced

the

largest

yield

increases.

The

sharp

increase

in

yields

led

to

generally

negative

results

across

the

fixed

income

market

as

bond

prices

and

yields

move

in

opposite

directions.

On

a

positive

note,

the

U.S.

jobs

market

remained

resilient

during

the

period,

and

overall

economic

growth

turned

positive

in

the

third

quarter

after

two

slightly

negative

quarters.

However,

recession

fears

also

grew

as

corporate

earnings

slowed

and

manufacturing

gauges

drifted

toward

contraction

levels.

In

addition,

the

housing

market

began

to

weaken

as

mortgage

rates

climbed

to

the

highest

level

in

more

than

20

years.

The

past

year

has

been

a

trying

time

for

investors

as

few

sectors

remained

untouched

by

the

broad

headwinds

that

markets

faced,

and

volatility

may

continue

in

the

near

term

as

central

banks

tighten

policy

amid

slowing

economic

growth.

However,

in

our

view,

valuations

have

become

more

attractive

across

many

market

sectors

during

the

downturn,

which

provides

potential

opportunities

for

selective

investors

focused

on

fundamentals.

We

believe

this

environment

makes

skilled

active

management

a

critical

tool

for

identifying

risks

and

opportunities,

and

our

investment

teams

will

continue

to

use

fundamental

research

to

identify

securities

that

can

add

value

to

your

portfolio

over

the

long

term.

Thank

you

for

your

continued

confidence

in

T.

Rowe

Price.

Sincerely, 

Robert

Sharps

CEO

and

President

T.

ROWE

PRICE

Floating

Rate

Fund

Management’s

Discussion

of

Fund

Performance

3

INVESTMENT

OBJECTIVE 

The

fund

seeks

high

current

income

and,

secondarily,

capital

appreciation.

FUND

COMMENTARY

How

did

the

fund

perform

in

the

past six

months?

The

Floating

Rate

Fund

returned

1.47%

in

the

six

months

ended

November

30,

2022,

performing

in

line

with

the

benchmark

S&P/LSTA

Performing

Loan

Index

and

outperforming

the

Lipper

peer

group

average.

(Results

for

the

fund’s

Advisor,

I,

and

Z

Class

shares

varied

slightly,

reflecting

their

different

fee

structures,

asset

flows,

and

other

factors.

Past

performance

cannot

guarantee

future

results

.)

What

factors

influenced

the

fund’s

performance?

Credit

selection

drove

the

portfolio’s

relative

performance

over

the

last

six

months,

which

was

especially

strong

in

the

financials

and

information

technology

segments.

Insurance

brokers,

a

high-conviction

subsector

within

financials,

have

been

a

relative

safe-haven

during

uncertain

economic

times.

HUB

International

and

USI

were

the

portfolio’s

top

contributors

to

relative

performance

during

the

period

due

to

a

combination

of

strong

fundamentals

as

well

as

discounts

to

par

offered

on

the

short

end

of

the

loan

maturity

curve.

Both

issuers

also

recently

came

to

the

market

with

new

term

loans

that

offered

attractive

income

and

original

issue

discounts

to

par.

(Please

refer

to

the

portfolio

of

investments

for

a

complete

list

of

holdings

and

the

amount

each

represents

in

the

portfolio.)

Applied

Systems,

a

broker

management

systems

software

company,

was

a

leading

contributor

in

the

information

technology

segment.

As

a

provider

of

software

for

the

insurance

brokerage

space,

Applied

Systems

has

a

recurring

revenue

base,

generates

solid

free

cash,

and

has

posted

high-single-digit

topline

growth.

A

short-maturity

term

loan

that

was

extended

and

given

a

higher

coupon

during

our

reporting

period

bolstered

the

performance

of

our

investment

in

the

issuer.

PERFORMANCE

COMPARISON

Six-Month

Period

Ended

11/30/22

Total

Return

Floating

Rate

Fund

–

.

1.47‌%

Floating

Rate

Fund–

.

Advisor  Class

1.38‌

Floating

Rate

Fund–

.

I  Class

1.66‌

Floating

Rate

Fund–

.

Z

Class

1.86‌

S&P/LSTA

Performing

Loan

Index

1.46‌

Lipper

Loan

Participation

Funds

Average

0.45‌

T.

ROWE

PRICE

Floating

Rate

Fund

4

The

portfolio’s

overweight

in

the

airlines

segment

added

value

with

our

positions

in

United

Airlines

and

American

Airlines

being

notable

contributors.

Consumers’

continued

willingness

to

spend

on

experiences

and

travel

was

a

boon

to

the

airlines

industry

as

people

continued

to

venture

out

in

greater

numbers

over

the

past

six

months.

Our

emphasis

on

downside

risk

management

amid

portfolio

construction

decisions

was

another

important

driver

of

relative

performance.

The

investment

team’s

bottom-up

fundamental

research

enabled

us

to

avoid

exposure

to

troubled

credits

that

traded

significantly

lower

during

the

period.

Notable

examples

of

issuers

we

avoided

that

experienced

weakness

include

broadband

infrastructure

services

provider

Zayo

Group,

telecommunications

company

Mitel

Networks,

and

Envision

Healthcare,

a

health

care

company

that

provides

physician

services

and

operates

ambulatory

surgery

centers.

Our

investment

in

Asurion—the

leading

provider

of

mobile

device

protection

services—detracted

during

the

company’s

transition

from

an

account

that

was

lost

due

to

an

acquisition

of

the

client.

Although

we

slightly

reduced

the

portfolio’s

exposure

to

Asurion

ahead

of

the

account

transition,

we

are

optimistic

about

the

company’s

prospects

for

EBITDA

(earnings

before

interest,

taxes,

depreciation,

and

amortization)

growth

and

deleveraging

over

the

next

two

years.

Shutterfly—an

online

retailer

of

personalized

products

including

cards,

stationary,

calendars,

and

photo

books—weighed

on

relative

results,

even

though

we

had

completely

exited

that

position

by

the

end

of

November.

The

issuer’s

underperformance

was

partly

due

to

consumers

scaling

back

on

discretionary

spending,

particularly

in

areas

such

as

home

décor.

But

the

most

meaningful

negative

development

in

terms

of

our

investment

thesis

was

that

Shutterfly’s

Lifetouch

division—its

school

photography

business—did

not

rebound

as

quickly

as

we

had

expected

once

students

returned

to

classrooms

after

coronavirus

pandemic

lockdowns

were

eased.

In

our

view,

Shutterfly’s

cuts

in

that

area

of

its

business

during

the

health

crisis

may

have

caused

some

loss

of

market

share

on

the

other

side.

Significant

cost

inflation

has

been

a

drag

on

the

health

care

segment’s

performance.

The

inability

to

pass

higher

prices

through

to

end

customers

and

labor

cost

inflation

due

to

a

shortage

of

qualified

workers

were

among

the

primary

factors

that

contributed

to

the

underperformance

of

our

investments

in

health

care

services

providers

MyEyeDr.

and

National

Mentor.

How

is

the

fund

positioned?

Although

many

industries

experienced

labor

shortages

and

cost

inflation

in

2022,

these

issues

appeared

to

be

somewhat

more

acute

in

the

health

care

T.

ROWE

PRICE

Floating

Rate

Fund

5

space.

We

reduced

the

portfolio’s

allocation

to

health

care

by

just

over

300

basis

points

(100

basis

points

equals

1.00%).

The

reduction

in

our

energy

sector

weighting

was

primarily

the

result

of

some

positions

being

repaid.

For

example,

Permian

Basin-

based

midstream

natural

gas

processors

EagleClaw

and

Caprock—portfolio

holdings

that

were

solid

contributors

after

strongly

rebounding

from

performance

challenges

during

the

pandemic—

merged

with

midstream

player

Altus

earlier

this

year

to

create

a

new

public

company.

We

also

had

a

significant

position

in

midstream

services

provider

Lucid

Energy,

which

was

purchased

by

midstream

energy

infrastructure

corporation

Targa

Resources,

an

investment-grade

issuer.

Although

the

pool

of

potential

investments

has

declined,

we

continue

to

research

opportunities

in

the

energy

sector.

We

augmented

the

portfolio’s

allocation

to

the

financials

segment

by

roughly

300

basis

points

over

the

last

six

months.

Specifically,

we

added

to

our

holdings

in

several

insurance

brokers—including

Acrisure,

Alliant,

HUB

International,

USI,

and

Navacord—as

we

became

more

confident

in

the

durability

of

their

performance

through

challenging

market

environments.

Throughout

2022,

consumers

demonstrated

a

greater

willingness

to

spend

on

experiences

and

travel,

and

we

endeavored

to

position

the

portfolio

accordingly.

In

the

entertainment

and

leisure

segment,

for

example,

we

increased

our

investments

in

names—such

as

leading

theme

park

and

entertainment

company

SeaWorld

Parks

&

Entertainment—that

have

been

the

beneficiaries

of

consumers’

preference

for

experiential

spending.

Sources:

Credit

ratings

for

the

securities

held

in

the

fund

are

provided

by

Moody’s

and

Standard

&

Poor’s

and

are

converted

to

the

Standard

&

Poor’s

nomenclature.

A

rating

of

AAA

represents

the

highest-rated

securities,

and

a

rating

of

D

represents

the

lowest-rated

securities.

Split

ratings

(e.g.,

BB/B

and

B/CCC)

are

assigned

when

Moody’s

and

S&P

differ.

If

a

rating

is

not

available,

the

security

is

classified

as

Not

Rated.

The

rating

of

the

underlying

investment

vehicle

is

used

to

determine

the

creditworthiness

of

credit

default

swaps

and

sovereign

securities.

The

fund

is

not

rated

by

any

agency.

Short-term

holdings

are

not

rated.

Historical

weightings

reflect

current

ratings.

CREDIT

QUALITY

DIVERSIFICATION

.....

Percent

of

Total

Assets

5/31/22

11/30/22

BBB/BB

Rated

and

Above

2.9‌%

3.0‌%

BB

Rated

8.8‌ 

11.2‌ 

BB/B

Rated

9.6‌ 

9.0‌ 

B

Rated

60.1‌ 

57.5‌ 

B/CCC

Rated

0.8‌ 

0.9‌ 

CCC

Rated

and

Below

9.2‌ 

9.4‌ 

Equities

0.2‌ 

0.2‌ 

Not

Rated

2.3‌ 

2.6‌ 

Short-Term

Holdings

6.1‌ 

6.2‌ 

T.

ROWE

PRICE

Floating

Rate

Fund

6

What

is

portfolio

management’s

outlook?

We

have

become

slightly

more

cautious

in

our

macro

expectations

due

to

the

far-reaching

impact

of

the

Russia-Ukraine

conflict

and

stubborn

inflation.

The

unprecedented

pace

of

the

Federal

Reserve’s

interest

rate

hikes

in

2022

has

led

to

concerns

about

flagging

economic

growth

and

the

potential

for

recession.

Against

this

backdrop,

we

believe

the

loan

default

rate—up

from

near

zero

earlier

this

year—could

approach

or

even

slightly

surpass

its

long-term

average

over

the

next

12

to

24

months.

Leveraged

loans

outperformed

most

other

fixed

income

segments

over

the

past

year

due

to

their

senior

secured

status

and

unique

floating

rate

feature,

which

reset

coupons

higher

alongside

the

Fed’s

rate

increases.

We

are

optimistic

that

we

can

continue

finding

value

in

the

loan

market

and

believe

our

shareholders

will

be

fairly

compensated

for

remaining

invested

in

the

asset

class

through

the

challenging

macro

environment

in

the

year

ahead.

The

views

expressed

reflect

the

opinions

of

T.

Rowe

Price

as

of

the

date

of

this

report

and

are

subject

to

change

based

on

changes

in

market,

economic,

or

other

conditions.

These

views

are

not

intended

to

be

a

forecast

of

future

events

and

are

no

guarantee

of

future

results.

T.

ROWE

PRICE

Floating

Rate

Fund

7

RISKS

OF

INVESTING

IN

FLOATING

RATE

LOAN

FUNDS

Floating

rate

loans

are

subject

to

credit

risk,

the

chance

that

any

fund

holding

could

have

its

credit

rating

downgraded

or

that

an

issuer

will

default

(fail

to

make

timely

payments

of

interest

or

principal).

Loans

also

face

liquidity

risk,

the

chance

that

the

fund

may

not

be

able

to

sell

loans

or

securities

at

desired

prices,

potentially

reducing

the

fund’s

income

level

and

share

price.

Like

bond

funds,

this

fund

is

exposed

to

interest

rate

risk,

but

credit

and

liquidity

risks

may

often

be

more

impactful.

The

loans

in

which

the

fund

invests

are

often

referred

to

as

“leveraged

loans.”

In

many

cases,

leveraged

loans

are

issued

in

connection

with

recapitalizations,

acquisitions,

leveraged

buyouts,

and

refinancings.

Companies

issuing

leveraged

loans

typically

have

a

below

investment-grade

credit

rating

or

may

not

be

rated

by

a

major

credit

rating

agency.

Leveraged-loan

funds

could

have

greater

price

declines

than

funds

that

invest

primarily

in

high-quality

bonds,

so

the

securities

are

usually

considered

speculative

investments.

BENCHMARK

INFORMATION

Note:

Portions

of

the

mutual

fund

information

contained

in

this

report

were

supplied

by

Lipper,

a

Refinitiv

Company,

subject

to

the

following:

Copyright

2022

©

Refinitiv.

All

rights

reserved.

Any

copying,

republication

or

redistribution

of

Lipper

content

is

expressly

prohibited

without

the

prior

written

consent

of

Lipper.

Lipper

shall

not

be

liable

for

any

errors

or

delays

in

the

content,

or

for

any

actions

taken

in

reliance

thereon.

Note:

©

2022,

Moody’s

Corporation,

Moody’s

Investors

Service,

Inc.,

Moody’s

Analytics,

Inc.

and/or

their

licensors

and

affiliates

(collectively,

“Moody’s”).

All

rights

reserved.

Moody’s

ratings

and

other

information

(“Moody’s

Information”)

are

proprietary

to

Moody’s

and/or

its

licensors

and

are

protected

by

copyright

and

other

intellectual

property

laws.

Moody’s

Information

is

licensed

to

Client

by

Moody’s.

MOODY’S

INFORMATION

MAY

NOT

BE

COPIED

OR

OTHERWISE

REPRODUCED,

REPACKAGED,

FURTHER

TRANSMITTED,

TRANSFERRED,

DISSEMINATED,

REDISTRIBUTED

OR

RESOLD,

OR

STORED

FOR

SUBSEQUENT

USE

FOR

ANY

SUCH

PURPOSE,

IN

WHOLE

OR

IN

PART,

IN

ANY

FORM

OR

MANNER

OR

BY

ANY

MEANS

WHATSOEVER,

BY

ANY

PERSON

WITHOUT

MOODY’S

PRIOR

WRITTEN

CONSENT.

Moody's

®

is

a

registered

trademark.

Note:

Copyright

©

2022,

S&P

Global

Market

Intelligence

(and

its

affiliates,

as

applicable).

Reproduction

of

any

information,

data

or

material,

including

ratings

("Content")

in

any

form

is

prohibited

except

with

the

prior

written

permission

of

the

relevant

party. Such

party,

its

affiliates

and

suppliers

T.

ROWE

PRICE

Floating

Rate

Fund

8

("Content

Providers")

do

not

guarantee

the

accuracy,

adequacy,

completeness,

timeliness

or

availability

of

any

Content

and

are

not

responsible

for

any

errors

or

omissions

(negligent

or

otherwise),

regardless

of

the

cause,

or

for

the

results

obtained

from

the

use

of

such

Content.

In

no

event

shall

Content

Providers

be

liable

for

any

damages,

costs,

expenses,

legal

fees,

or

losses

(including

lost

income

or

lost

profit

and

opportunity

costs)

in

connection

with

any

use

of

the

Content.

A

reference

to

a

particular

investment

or

security,

a

rating

or

any

observation

concerning

an

investment

that

is

part

of

the

Content

is

not

a

recommendation

to

buy,

sell

or

hold

such

investment

or

security,

does

not

address

the

appropriateness

of

an

investment

or

security

and

should

not

be

relied

on

as

investment

advice.

Credit

ratings

are

statements

of

opinions

and

are

not

statements

of

fact.

Note:

The

S&P/LSTA

Performing

Loan

Index

is

a

product

of

S&P

Dow

Jones

Indices

LLC,

a

division

of

S&P

Global,

or

its

affiliates

(“SPDJI”)

and

has

been

licensed

for

use

by

T.

Rowe

Price.

Standard

&  Poor’s

®

and

S&P

®

 are

registered

trademarks of

Standard

&

Poor’s

Financial

Services

LLC,

a

division

of

S&P

(“S&P”);

Dow

Jones

®

is

a

registered

trademark

of

Dow

Jones

Trademark

Holdings

LLC

(“Dow

Jones”);

T.

Rowe

Price

is

not

sponsored,

endorsed,

sold

or

promoted

by

SPDJI,

Dow

Jones,

S&P,

or

their

respective

affiliates,

and

none

of

such

parties

make

any

representation

regarding

the

advisability

of

investing

in

such

product(s)

nor

do

they

have

any

liability

for

any

errors,

omissions,

or

interruptions

of

the

S&P/LSTA

Performing

Loan

Index.

BENCHMARK

INFORMATION

(continued)

T.

ROWE

PRICE

Floating

Rate

Fund

9

PORTFOLIO

HIGHLIGHTS

TWENTY-FIVE

LARGEST

ISSUERS

Percent

of

Net

Assets

11/30/22

UKG

Inc

2.9‌%

HUB

International

2.9‌ 

Epicor

Software

1.8‌ 

United

Airlines

1.8‌ 

American

Airlines

1.7‌ 

UFC

Holdings

1.7‌ 

Applied

Systems

1.7‌ 

Acrisure

1.6‌ 

PetVet

Care

Centers

1.6‌ 

Gainwell

Acquisition

1.5‌ 

Filtration

Group

1.5‌ 

Asurion

1.5‌ 

USI

Advantage

1.4‌ 

Ascend

Learning

1.3‌ 

Internet

Brands

1.3‌ 

Alliant

1.2‌ 

Sedgwick

Claims

Management

1.2‌ 

AssuredPartners

1.1‌ 

Charter

Next

Generation

1.1‌ 

Medline

Industries

1.1‌ 

Inspire

Brands

1.0‌ 

CDK

Global

1.0‌ 

athenahealth

1.0‌ 

Duravant

1.0‌ 

Press

Ganey

0.9‌ 

Total

36.8‌%

Note:

The

information

shown

does

not

reflect

any

exchange-traded

funds

(ETFs),

cash

reserves,

or

collateral

for

securities

lending

that

may

be

held

in

the

portfolio.

Holdings

of

the

issuers

are

combined

and

may

be

shown

in

the

portfolio

of

investments

under

their

subsidiaries.

T.

ROWE

PRICE

Floating

Rate

Fund

10

GROWTH

OF

$10,000 

This

chart

shows

the

value

of

a

hypothetical

$10,000

investment

in

the

fund

over

the

past

10

fiscal

year

periods

or

since

inception

(for funds

lacking

10-year

records).

The

result

is

compared

with

benchmarks,

which

include

a

broad-based

market

index

and

may

also

include

a

peer

group

average

or

index.

Market

indexes

do

not

include

expenses,

which

are

deducted

from

fund

returns

as

well

as

mutual fund

averages

and

indexes.

FLOATING

RATE

FUND 

Note:

Performance

for

the

Advisor,

I,

and

Z Class

shares

will

vary

due

to

their

differing

fee

structures.

See

the

Average

Annual

Compound

Total

Return

table. 

T.

ROWE

PRICE

Floating

Rate

Fund

11

AVERAGE

ANNUAL

COMPOUND

TOTAL

RETURN

Periods

Ended

11/30/22

1

Year

5

Years

10

Years

Since

Inception

Inception

Date

Floating

Rate

Fund

–

.

-0.39‌%

2.72‌%

3.16‌%

–‌

–

Floating

Rate

Fund–

.

Advisor  Class

-0.58‌

2.55‌

3.01‌

–‌

–

Floating

Rate

Fund–

.

I  Class

-0.25‌

2.87‌

–‌

3.09‌%

11/29/16

Floating

Rate

Fund–

.

Z  Class

0.36‌

–‌

–‌

6.79‌

3/16/20

This

table

shows

how

the

fund

would

have

performed

each

year

if

its

actual

(or

cumulative)

returns

for

the

periods

shown

had

been

earned

at

a

constant

rate.

Returns

do

not

reflect

taxes

that

the

shareholder

may

pay

on

fund

distributions

or

the

redemption

of

fund

shares.

Past

performance

cannot

guarantee

future

results.

T.

ROWE

PRICE

Floating

Rate

Fund

12

EXPENSE

RATIO

FUND

EXPENSE

EXAMPLE

As

a

mutual

fund

shareholder,

you

may

incur

two

types

of

costs:

(1)

transaction

costs,

such

as

redemption

fees

or

sales

loads,

and

(2)

ongoing

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

fund

expenses.

The

following

example

is

intended

to

help

you

understand

your

ongoing

costs

(in

dollars)

of

investing

in

the

fund

and

to

compare

these

costs

with

the

ongoing

costs

of

investing

in

other

mutual

funds.

The

example

is

based

on

an

investment

of

$1,000

invested

at

the

beginning

of

the

most

recent

six-month

period

and

held

for

the

entire

period.

Please

note

that

the

fund

has

four

share

classes:

The

original

share

class

(Investor

Class)

charges

no

distribution

and

service

(12b-1)

fee,

Advisor

Class

shares

are

offered

only

through

unaffiliated

brokers

and

other

financial

intermediaries

and

charge

a

0.25%

12b-1

fee,

I

Class

shares

are

available

to

institutionally

oriented

clients

and

impose

no

12b-1

or

administrative

fee

payment,

and

Z

Class

shares

are

offered

only

to

funds

advised

by

T.

Rowe

Price

and

other

advisory

clients

of

T.

Rowe

Price

or

its

affiliates

that

are

subject

to

a

contractual

fee

for

investment

management

services

and

impose

no

12b-1

fee

or

administrative

fee

payment.

Each

share

class

is

presented

separately

in

the

table.

Actual

Expenses

The

first

line

of

the

following

table

(Actual)

provides

information

about

actual

account

values

and

expenses

based

on

the

fund’s

actual

returns.

You

may

use

the

information

on

this

line,

together

with

your

account

balance,

to

estimate

the

expenses

that

you

paid

over

the

period.

Simply

divide

your

account

value

by

$1,000

(for

example,

an

$8,600

account

value

divided

by

$1,000

=

8.6),

then

multiply

the

result

by

the

number

on

the

first

line

under

the

heading

“Expenses

Paid

During

Period”

to

estimate

the

expenses

you

paid

on

your

account

during

this

period. 

Hypothetical

Example

for

Comparison

Purposes

The

information

on

the

second

line

of

the

table

(Hypothetical)

is

based

on

hypothetical

account

values

and

expenses

derived

from

the

fund’s

actual

expense

ratio

and

an

assumed

5%

per

year

rate

of

return

before

expenses

(not

the

fund’s

actual

return).

You

may

compare

the

ongoing

costs

of

investing

in

the

fund

with

other

funds

by

contrasting

this

5%

hypothetical

example

and

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

the

other

funds.

The

hypothetical

account

values

and

expenses

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period.

Floating

Rate

Fund

0.75‌%

Floating

Rate

Fund–Advisor

Class

1.02‌ 

Floating

Rate

Fund–I

Class

0.62‌ 

Floating

Rate

Fund–Z

Class

0.62‌ 

The

expense

ratio

shown

is

as

of

the

fund’s

most

recent

prospectus.

This

number

may

vary

from

the

expense

ratio

shown

elsewhere

in

this

report

because

it

is

based

on

a

different

time

period

and,

if

applicable,

includes

acquired

fund

fees

and

expenses

but

does

not

include

fee

or

expense

waivers.

T.

ROWE

PRICE

Floating

Rate

Fund

13

Note:

T.

Rowe

Price

charges

an

annual

account

service

fee

of

$20,

generally

for

accounts

with

less

than

$10,000.

The

fee

is

waived

for

any

investor

whose

T.

Rowe

Price

mutual

fund

accounts

total

$50,000

or

more;

accounts

electing

to

receive

electronic

delivery

of

account

statements,

transaction

confirmations,

prospectuses,

and

shareholder

reports;

or

accounts

of

an

investor

who

is

a

T.

Rowe

Price

Personal

Services

or

Enhanced

Personal

Services

client

(enrollment

in

these

programs

generally

requires

T.

Rowe

Price

assets

of

at

least

$250,000).

This

fee

is

not

included

in

the

accompanying

table.

If

you

are

subject

to

the

fee,

keep

it

in

mind

when

you

are

estimating

the

ongoing

expenses

of

investing

in

the

fund

and

when

comparing

the

expenses

of

this

fund

with

other

funds.

You

should

also

be

aware

that

the

expenses

shown

in

the

table

highlight

only

your

ongoing

costs

and

do

not

reflect

any

transaction

costs,

such

as

redemption

fees

or

sales

loads.

Therefore,

the

second

line

of

the

table

is

useful

in

comparing

ongoing

costs

only

and

will

not

help

you

determine

the

relative

total

costs

of

owning

different

funds.

To

the

extent

a

fund

charges

transaction

costs,

however,

the

total

cost

of

owning

that

fund

is

higher.

FLOATING

RATE

FUND

Beginning

Account

Value

6/1/22

Ending

Account

Value

11/30/22

Expenses

Paid

During

Period*

6/1/22

to

11/30/22

Investor

Class

Actual

$1,000.00

$1,014.70

$3.94

Hypothetical

(assumes

5%

return

before

expenses)

 1,000.00

  1,021.16

  3.95

Advisor

Class

Actual

  1,000.00

  1,013.80

  4.90

Hypothetical

(assumes

5%

return

before

expenses)

 1,000.00

  1,020.21

  4.91

I

Class

Actual

  1,000.00

  1,016.60

  3.18

Hypothetical

(assumes

5%

return

before

expenses)

 1,000.00

  1,021.91

  3.19

Z

Class

Actual

  1,000.00

  1,018.60

  0.10

Hypothetical

(assumes

5%

return

before

expenses)

 1,000.00

  1,024.97

  0.10

*

Expenses

are

equal

to

the

fund’s

annualized

expense

ratio

for

the

6-month

period,

multiplied

by

the

average

account

value

over

the

period,

multiplied

by

the

number

of

days

in

the

most

recent

fiscal

half

year

(183),

and

divided

by

the

days

in

the

year

(365)

to

reflect

the

half-year

period.

The

annualized

expense

ratio

of

the

1

Investor

Class

was

0.78%,

the

2

Advisor Class

was

0.97%,

the

3

I Class

was

0.63%,

and

the

4

Z Class

was

0.02%.

FUND

EXPENSE

EXAMPLE

(CONTINUED)

T.

ROWE

PRICE

Floating

Rate

Fund

14

QUARTER-END

RETURNS

Periods

Ended

9/30/22

1

Year

5

Years

10

Years

Since

Inception

Inception

Date

Floating

Rate

Fund

–

.

-2.68‌%

2.37‌%

3.01‌%

–‌

–

Floating

Rate

Fund–

.

Advisor  Class

-2.86‌ 

2.17‌ 

2.86‌ 

–‌

–

Floating

Rate

Fund–

.

I  Class

-2.54‌ 

2.47‌ 

–‌

2.75‌%

11/29/16

Floating

Rate

Fund–

.

Z  Class

-1.95‌ 

–‌

–‌

6.22‌ 

3/16/20

The

fund’s

performance

information

represents

only

past

performance

and

is

not

necessarily

an

indication

of

future

results.

Current

performance

may

be

lower

or

higher

than

the

performance

data

cited.

Share

price,

principal

value,

and

return

will

vary,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

For

the

most

recent

month-end

performance,

please

visit

our

website

(troweprice.com)

or

contact

a

T.

Rowe

Price

representative

at

1

-

800

-

225

-

5132

or,

for

2

Advisor

,

3

I

,

a

nd

4

Z

Class

shares,

1-800-638-8790

.

This

table

provides

returns

through

the

most

recent

calendar

quarter-end

rather

than

through

the

end

of

the

fund’s

fiscal

period.

It

shows

how

the

fund

would

have

performed

each

year

if

its

actual

(or

cumulative)

returns

for

the

periods

shown

had

been

earned

at

a

constant

rate.

Average

annual

total

return

figures

include

changes

in

principal

value,

reinvested

dividends,

and

capital

gain

distributions.

Returns

do

not

reflect

taxes

that

the

shareholder

may

pay

on

fund

distributions

or

the

redemption

of

fund

shares.

When

assessing

performance,

investors

should

consider

both

short-

and

long-term

returns.

T.

ROWE

PRICE

Floating

Rate

Fund

(Unaudited)

Financial

Highlights

15

For

a

share

outstanding

throughout

each

period

Investor

Class

6

Months

.

Ended

11/30/22

..

Year

..

..

Ended

.

5/31/22

5/31/21

5/31/20

5/31/19

5/31/18

NET

ASSET

VALUE

Beginning

of

period

$

9

.16‌

$

9

.57‌

$

9

.11‌

$

9

.68‌

$

9

.81‌

$

9

.92‌

Investment

activities

Net

investment

income

(1)(2)

0

.26‌

0

.36‌

0

.37‌

0

.43‌

0

.48‌

0

.41‌

Net

realized

and

unrealized

gain/loss

(

0

.13‌

)

(

0

.41‌

)

0

.46‌

(

0

.57‌

)

(

0

.12‌

)

(

0

.11‌

)

Total

from

investment

activities

0

.13‌

(

0

.05‌

)

0

.83‌

(

0

.14‌

)

0

.36‌

0

.30‌

Distributions

Net

investment

income

(

0

.26‌

)

(

0

.36‌

)

(

0

.37‌

)

(

0

.43‌

)

(

0

.49‌

)

(

0

.41‌

)

NET

ASSET

VALUE

End

of

period

$

9

.03‌

$

9

.16‌

$

9

.57‌

$

9

.11‌

$

9

.68‌

$

9

.81‌

T.

ROWE

PRICE

Floating

Rate

Fund

(Unaudited)

Financial

Highlights

16

For

a

share

outstanding

throughout

each

period

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Investor

Class

6

Months

.

Ended

11/30/22

..

Year

..

..

Ended

.

5/31/22

5/31/21

5/31/20

5/31/19

5/31/18

Ratios/Supplemental

Data

Total

return

(2)(3)

1

.47‌

%

(

0

.54‌

)

%

9

.26‌

%

(

1

.56‌

)

%

3

.75‌

%

3

.07‌

%

Ratios

to

average

net

assets:

(2)

Gross

expenses

before

waivers/

payments

by

Price

Associates

0

.78‌

%

(4)

0

.75‌

%

0

.76‌

%

0

.76‌

%

0

.76‌

%

0

.78‌

%

Net

expenses

after

waivers/payments

by

Price

Associates

0

.78‌

%

(4)

0

.75‌

%

0

.76‌

%

0

.76‌

%

0

.76‌

%

0

.78‌

%

Net

investment

income

5

.79‌

%

(4)

3

.79‌

%

3

.88‌

%

4

.54‌

%

4

.97‌

%

4

.18‌

%

Portfolio

turnover

rate

11

.1‌

%

37

.2‌

%

62

.0‌

%

75

.9‌

%

57

.0‌

%

46

.1‌

%

Net

assets,

end

of

period

(in

millions)

$1,644

$1,949

$1,038

$865

$1,472

$1,928

0‌

%

0‌

%

0‌

%

0‌

%

0‌

%

0‌

%

(1)

Per

share

amounts

calculated

using

average

shares

outstanding

method.

(2)

See

Note

6

for

details

of

expense-related

arrangements

with

Price

Associates.

(3)

Total

return

reflects

the

rate

that

an

investor

would

have

earned

on

an

investment

in

the

fund

during

each

period,

assuming

reinvestment

of

all

distributions,

and

payment

of

no

redemption

or

account

fees,

if

applicable.

Total

return

is

not

annualized

for

periods

less

than

one

year.

(4)

Annualized

T.

ROWE

PRICE

Floating

Rate

Fund

(Unaudited)

Financial

Highlights

17

For

a

share

outstanding

throughout

each

period

Advisor

Class

6

Months

.

Ended

11/30/22

..

Year

..

..

Ended

.

5/31/22

5/31/21

5/31/20

5/31/19

5/31/18

NET

ASSET

VALUE

Beginning

of

period

$

9

.18‌

$

9

.59‌

$

9

.13‌

$

9

.69‌

$

9

.82‌

$

9

.93‌

Investment

activities

Net

investment

income

(1)(2)

0

.25‌

0

.34‌

0

.35‌

0

.42‌

0

.46‌

0

.39‌

Net

realized

and

unrealized

gain/loss

(

0

.13‌

)

(

0

.40‌

)

0

.46‌

(

0

.57‌

)

(

0

.13‌

)

(

0

.11‌

)

Total

from

investment

activities

0

.12‌

(

0

.06‌

)

0

.81‌

(

0

.15‌

)

0

.33‌

0

.28‌

Distributions

Net

investment

income

(

0

.25‌

)

(

0

.35‌

)

(

0

.35‌

)

(

0

.41‌

)

(

0

.47‌

)

(

0

.39‌

)

...

....

....

....

....

....

....

Redemption

fees

added

to

paid-in

capital

(1)(3)

—‌

—‌

—‌

—‌

0

.01‌

—‌

(4)

NET

ASSET

VALUE

End

of

period

$

9

.05‌

$

9

.18‌

$

9

.59‌

$

9

.13‌

$

9

.69‌

$

9

.82‌

T.

ROWE

PRICE

Floating

Rate

Fund

(Unaudited)

Financial

Highlights

18

For

a

share

outstanding

throughout

each

period

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Advisor

Class

6

Months

.

Ended

11/30/22

..

Year

..

..

Ended

.

5/31/22

5/31/21

5/31/20

5/31/19

5/31/18

Ratios/Supplemental

Data

Total

return

(2)(5)

1

.38‌

%

(

0

.74‌

)

%

9

.00‌

%

(

1

.66‌

)

%

3

.53‌

%

2

.87‌

%

Ratios

to

average

net

assets:

(2)

Gross

expenses

before

waivers/

payments

by

Price

Associates

1

.04‌

%

(6)

1

.02‌

%

1

.04‌

%

1

.07‌

%

1

.05‌

%

1

.07‌

%

Net

expenses

after

waivers/payments

by

Price

Associates

0

.97‌

%

(6)

0

.97‌

%

0

.98‌

%

0

.98‌

%

0

.97‌

%

0

.97‌

%

Net

investment

income

5

.60‌

%

(6)

3

.62‌

%

3

.67‌

%

4

.37‌

%

4

.74‌

%

3

.93‌

%

Portfolio

turnover

rate

11

.1‌

%

37

.2‌

%

62

.0‌

%

75

.9‌

%

57

.0‌

%

46

.1‌

%

Net

assets,

end

of

period

(in

thousands)

$18,692

$21,783

$23,329

$12,506

$23,595

$60,748

0‌

%

0‌

%

0‌

%

0‌

%

0‌

%

0‌

%

(1)

Per

share

amounts

calculated

using

average

shares

outstanding

method.

(2)

See

Note

6

for

details

of

expense-related

arrangements

with

Price

Associates.

(3)

The

fund

charged

redemption

fees

through

March

31,

2019.

(4)

Amounts

round

to

less

than

$0.01

per

share.

(5)

Total

return

reflects

the

rate

that

an

investor

would

have

earned

on

an

investment

in

the

fund

during

each

period,

assuming

reinvestment

of

all

distributions,

and

payment

of

no

redemption

or

account

fees,

if

applicable.

Total

return

is

not

annualized

for

periods

less

than

one

year.

(6)

Annualized

T.

ROWE

PRICE

Floating

Rate

Fund

(Unaudited)

Financial

Highlights

19

For

a

share

outstanding

throughout

each

period

I

Class

6

Months

.

Ended

11/30/22

..

Year

..

..

Ended

.

5/31/22

5/31/21

5/31/20

5/31/19

5/31/18

NET

ASSET

VALUE

Beginning

of

period

$

9

.16‌

$

9

.57‌

$

9

.12‌

$

9

.68‌

$

9

.82‌

$

9

.93‌

Investment

activities

Net

investment

income

(1)(2)

0

.27‌

0

.37‌

0

.37‌

0

.44‌

0

.50‌

0

.44‌

Net

realized

and

unrealized

gain/loss

(

0

.12‌

)

(

0

.40‌

)

0

.46‌

(

0

.56‌

)

(

0

.14‌

)

(

0

.13‌

)

Total

from

investment

activities

0

.15‌

(

0

.03‌

)

0

.83‌

(

0

.12‌

)

0

.36‌

0

.31‌

Distributions

Net

investment

income

(

0

.27‌

)

(

0

.38‌

)

(

0

.38‌

)

(

0

.44‌

)

(

0

.50‌

)

(

0

.42‌

)

NET

ASSET

VALUE

End

of

period

$

9

.04‌

$

9

.16‌

$

9

.57‌

$

9

.12‌

$

9

.68‌

$

9

.82‌

T.

ROWE

PRICE

Floating

Rate

Fund

(Unaudited)

Financial

Highlights

20

For

a

share

outstanding

throughout

each

period

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

I

Class

6

Months

.

Ended

11/30/22

..

Year

..

..

Ended

.

5/31/22

5/31/21

5/31/20

5/31/19

5/31/18

Ratios/Supplemental

Data

Total

return

(2)(3)

1

.66‌

%

(

0

.41‌

)

%

9

.26‌

%

(

1

.33‌

)

%

3

.78‌

%

3

.20‌

%

Ratios

to

average

net

assets:

(2)

Gross

expenses

before

waivers/

payments

by

Price

Associates

0

.63‌

%

(4)

0

.62‌

%

0

.65‌

%

0

.64‌

%

0

.63‌

%

0

.65‌

%

Net

expenses

after

waivers/payments

by

Price

Associates

0

.63‌

%

(4)

0

.62‌

%

0

.65‌

%

0

.64‌

%

0

.63‌

%

0

.65‌

%

Net

investment

income

5

.91‌

%

(4)

3

.95‌

%

3

.95‌

%

4

.65‌

%

5

.11‌

%

4

.42‌

%

Portfolio

turnover

rate

11

.1‌

%

37

.2‌

%

62

.0‌

%

75

.9‌

%

57

.0‌

%

46

.1‌

%

Net

assets,

end

of

period

(in

thousands)

$906,924

$1,097,697

$254,834

$116,787

$244,539

$241,969

0‌

%

0‌

%

0‌

%

0‌

%

0‌

%

0‌

%

(1)

Per

share

amounts

calculated

using

average

shares

outstanding

method.

(2)

See

Note

6

for

details

of

expense-related

arrangements

with

Price

Associates.

(3)

Total

return

reflects

the

rate

that

an

investor

would

have

earned

on

an

investment

in

the

fund

during

each

period,

assuming

reinvestment

of

all

distributions,

and

payment

of

no

redemption

or

account

fees,

if

applicable.

Total

return

is

not

annualized

for

periods

less

than

one

year.

(4)

Annualized

T.

ROWE

PRICE

Floating

Rate

Fund

(Unaudited)

Financial

Highlights

21

For

a

share

outstanding

throughout

each

period

Z

Class

(1)

6

Months

.

Ended

11/30/22

..

Year

..

..

Ended

.

3/16/20

(1)

Through

5/31/20

5/31/22

5/31/21

NET

ASSET

VALUE

Beginning

of

period

$

9

.16‌

$

9

.57‌

$

9

.11‌

$

8

.65‌

Investment

activities

Net

investment

income

(2)(3)

0

.29‌

0

.44‌

0

.45‌

0

.09‌

Net

realized

and

unrealized

gain/loss

(

0

.12‌

)

(

0

.42‌

)

0

.45‌

0

.46‌

(4)

Total

from

investment

activities

0

.17‌

0

.02‌

0

.90‌

0

.55‌

Distributions

Net

investment

income

(

0

.30‌

)

(

0

.43‌

)

(

0

.44‌

)

(

0

.09‌

)

NET

ASSET

VALUE

End

of

period

$

9

.03‌

$

9

.16‌

$

9

.57‌

$

9

.11‌

T.

ROWE

PRICE

Floating

Rate

Fund

(Unaudited)

Financial

Highlights

22

For

a

share

outstanding

throughout

each

period

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Z

Class

(1)

6

Months

.

Ended

11/30/22

..

Year

..

..

Ended

.

3/16/20

(1)

Through

5/31/20

5/31/22

5/31/21

Ratios/Supplemental

Data

Total

return

(3)(5)

1

.86‌

%

0

.19‌

%

10

.05‌

%

6

.38‌

%

Ratios

to

average

net

assets:

(3)

Gross

expenses

before

waivers/payments

by

Price

Associates

0

.62‌

%

(6)

0

.62‌

%

0

.64‌

%

0

.64‌

%

(6)

Net

expenses

after

waivers/payments

by

Price

Associates

0

.02‌

%

(6)

0

.02‌

%

0

.03‌

%

0

.02‌

%

(6)

Net

investment

income

6

.49‌

%

(6)

4

.63‌

%

4

.77‌

%

4

.77‌

%

(6)

Portfolio

turnover

rate

11

.1‌

%

37

.2‌

%

62

.0‌

%

75

.9‌

%

Net

assets,

end

of

period

(in

millions)

$1,585

$2,285

$2,119

$1,029

0‌

%

0‌

%

0‌

%

0‌

%

(1)

Inception

date

(2)

Per

share

amounts

calculated

using

average

shares

outstanding

method.

(3)

See

Note

6

for

details

of

expense-related

arrangements

with

Price

Associates.

(4)

The

amount

presented

is

inconsistent

with

the

fund's

aggregate

gains

and

losses

because

of

the

timing

of

sales

and

redemptions

of

fund

shares

in

relation

to

fluctuating

market

values

for

the

investment

portfolio.

(5)

Total

return

reflects

the

rate

that

an

investor

would

have

earned

on

an

investment

in

the

fund

during

each

period,

assuming

reinvestment

of

all

distributions,

and

payment

of

no

redemption

or

account

fees,

if

applicable.

Total

return

is

not

annualized

for

periods

less

than

one

year.

(6)

Annualized

T.

ROWE

PRICE

Floating

Rate

Fund

November

30,

2022

(Unaudited)

23

Portfolio

of

Investments

‡

Par/Shares

$

Value

(Amounts

in

000s)

‡

BANK

LOANS

86.1%

(1)

Aerospace

&

Defense

1.4%

Brown

Group

Holding,

FRN,

1M

TSFR

+

3.75%,

7.844%,

7/2/29 

6,910‌

6,858‌

Dynasty

Acquisition,

FRN,

1M

USD

LIBOR

+

3.50%,

7.571%,

4/6/26 

16,093‌

15,446‌

Peraton,

FRN,

1M

USD

LIBOR

+

3.75%,

7.821%,

2/1/28 

12,564‌

12,250‌

Peraton,

FRN,

1M

USD

LIBOR

+

7.75%,

11.654%,

2/1/29 

5,704‌

5,413‌

Spirit

AeroSystems,

FRN,

1M

TSFR

+

4.50%,

11/23/27  (2)

11,190‌

11,041‌

TransDigm,

FRN,

1M

USD

LIBOR

+

2.25%,

5.924%,

12/9/25 

8,443‌

8,309‌

59,317‌

Airlines

3.8%

AAdvantage

Loyalty

IP,

FRN,

1M

USD

LIBOR

+

4.75%,

7.46%,

4/20/28 

44,395‌

44,086‌

Air

Canada,

FRN,

1M

USD

LIBOR

+

3.50%,

6.421%,

8/11/28 

6,393‌

6,313‌

American

Airlines,

FRN,

3M

USD

LIBOR

+

1.75%,

5.794%,

6/27/25 

3,760‌

3,583‌

American

Airlines,

FRN,

3M

USD

LIBOR

+

2.00%,

5.80%,

12/15/23 

5,871‌

5,837‌

KKR

Apple

Bidco,

FRN,

1M

TSFR

+

2.75%,

6.821%,

9/22/28 

14,760‌

14,463‌

KKR

Apple

Bidco,

FRN,

1M

USD

LIBOR

+

5.75%,

9.821%,

9/21/29 

2,965‌

2,841‌

Mileage

Plus

Holdings,

FRN,

1M

USD

LIBOR

+

5.25%,

8.777%,

6/21/27 

40,864‌

41,988‌

SkyMiles

IP,

FRN,

3M

USD

LIBOR

+

3.75%,

6.46%,

10/20/27 

12,400‌

12,564‌

United

Airlines,

FRN,

1M

USD

LIBOR

+

3.75%,

8.108%,

4/21/28 

25,361‌

25,008‌

156,683‌

Automotive

2.1%

Adient

U.S.,

FRN,

1M

USD

LIBOR

+

3.25%,

7.321%,

4/10/28 

4,391‌

4,331‌

American

Auto

Auction

Group,

FRN,

1M

TSFR

+

5.00%,

8.553%,

12/30/27 

4,677‌

3,940‌

Autokiniton

U.S.

Holdings,

FRN,

1M

USD

LIBOR

+

4.50%,

8.379%,

4/6/28 

6,587‌

6,313‌

Clarios

Global,

FRN,

1M

USD

LIBOR

+

3.25%,

7.321%,

4/30/26 

6,245‌

6,137‌

Dexko

Global,

FRN,

1M

USD

LIBOR

+

3.75%,

7.682%,

10/4/28 

4,261‌

3,844‌

Driven

Holdings,

FRN,

1M

USD

LIBOR

+

3.00%,

3.517%,

12/17/28  (3)

4,616‌

4,385‌

LS

Group

OpCo

Acquistion,

FRN,

1M

USD

LIBOR

+

3.25%,

6.58%,

11/2/27 

6,323‌

6,181‌

Mavis

Tire

Express

Services

Topco,

FRN,

1M

TSFR

+

4.00%,

8.125%,

5/4/28 

33,186‌

31,847‌

Wand

NewCo

3,

FRN,

1M

USD

LIBOR

+

3.00%,

7.071%,

2/5/26  (2)

21,604‌

20,562‌

87,540‌

Broadcasting

3.7%

Clear

Channel

Outdoor

Holdings,

FRN,

1M

USD

LIBOR

+

3.50%,

7.914%,

8/21/26 

26,638‌

24,319‌

CMG

Media,

FRN,

1M

USD

LIBOR

+

3.50%,

7.571%,

12/17/26 

28,883‌

26,789‌

EW

Scripps,

FRN,

1M

USD

LIBOR

+

2.75%,

6.821%,

1/7/28 

19,945‌

19,353‌

Gray

Television,

FRN,

1M

USD

LIBOR

+

3.00%,

6.768%,

12/1/28 

8,686‌

8,443‌

T.

ROWE

PRICE

Floating

Rate

Fund

24

Par/Shares

$

Value

(Amounts

in

000s)

‡

iHeartCommunications,

FRN,

1M

USD

LIBOR

+

3.25%,

7.321%,

5/1/26 

22,802‌

21,327‌

NEP

Group,

FRN,

3M

USD

LIBOR

+

3.25%,

7.321%,

10/20/25 

5,854‌

4,854‌

NEP

Group,

FRN,

3M

USD

LIBOR

+

7.00%,

11.071%,

10/19/26 

3,510‌

2,773‌

Neptune

Bidco

U.S.,

FRN,

1M

TSFR

+

5.00%,

4/11/29  (2)

8,310‌

7,458‌

Nielsen

Holdings,

FRN,

3M

TSFR

+

9.75%,

13.472%,

10/11/29  (3)

7,250‌

7,032‌

Univision

Communications,

FRN,

1M

TSFR

+

4.25%,

7.79%,

6/24/29 

4,767‌

4,696‌

Univision

Communications,

FRN,

1M

USD

LIBOR

+

3.25%,

7.321%,

3/15/26 

8,589‌

8,428‌

Univision

Communications,

FRN,

1M

USD

LIBOR

+

3.25%,

7.321%,

1/31/29 

20,407‌

19,812‌

155,284‌

Building

Products

1.1%

Chariot

Buyer,

FRN,

1M

USD

LIBOR

+

3.50%,

7.571%,

11/3/28 

18,527‌

17,317‌

CP

Atlas

Buyer,

FRN,

1M

USD

LIBOR

+

3.50%,

7.571%,

11/23/27 

4,566‌

4,013‌

Hunter

Douglas,

FRN,

1M

TSFR

+

3.50%,

7.859%,

2/26/29 

13,147‌

11,445‌

Specialty

Building

Products

Holdings,

FRN,

1M

USD

LIBOR

+

3.25%,

7.266%,

10/15/28 

4,617‌

4,070‌

SRS

Distribution,

FRN,

1M

TSFR

+

3.50%,

7.686%,

6/2/28 

2,747‌

2,625‌

SRS

Distribution,

FRN,

1M

USD

LIBOR

+

3.50%,

7.571%,

6/2/28 

7,630‌

7,315‌

46,785‌

Cable

Operators

1.3%

Altice

France,

FRN,

3M

USD

LIBOR

+

4.00%,

8.65%,

8/14/26 

20,805‌

20,042‌

Altice

France,

FRN,

3M

USD

LIBOR

+

4.08%,

7.767%,

1/31/26 

2,893‌

2,767‌

Cablevision

Lightpath,

FRN,

1M

USD

LIBOR

+

3.25%,

7.123%,

11/30/27 

5,073‌

4,946‌

Directv

Financing,

FRN,

1M

USD

LIBOR

+

5.00%,

9.071%,

8/2/27 

18,135‌

17,344‌

Eagle

Broadband

Investments,

FRN,

1M

USD

LIBOR

+

3.00%,

6.688%,

11/12/27 

3,677‌

3,535‌

Radiate

Holdco,

FRN,

1M

USD

LIBOR

+

3.25%,

7.321%,

9/25/26 

8,193‌

7,168‌

55,802‌

Chemicals

1.6%

Aruba

Investments

Holdings,

FRN,

1M

USD

LIBOR

+

4.00%,

8.044%,

11/24/27 

9,286‌

8,968‌

Aruba

Investments

Holdings,

FRN,

1M

USD

LIBOR

+

7.75%,

11.794%,

11/24/28 

4,620‌

4,173‌

Avient,

FRN,

1M

TSFR

+

3.25%,

7.344%,

8/29/29 

4,029‌

4,008‌

CP

Iris

Holdco

I,

FRN,

1M

USD

LIBOR

+

3.50%,

7.002%,

10/2/28  (4)

9,260‌

8,248‌

CP

Iris

Holdco

I,

FRN,

1M

USD

LIBOR

+

7.00%,

11.071%,

10/1/29  (3)

985‌

827‌

Eco

Services

Operations,

FRN,

1M

USD

LIBOR

+

2.50%,

6.915%,

6/9/28 

222‌

218‌

LSF11

A5

HoldCo,

FRN,

1M

TSFR

+

3.50%,

7.701%,

10/15/28 

6,699‌

6,472‌

Nouryon

USA,

FRN,

1M

USD

LIBOR

+

2.75%,

7.165%,

10/1/25 

11,174‌

10,878‌

T.

ROWE

PRICE

Floating

Rate

Fund

25

Par/Shares

$

Value

(Amounts

in

000s)

‡

Vibrantz

Technologies,

FRN,

3M

TSFR

+

4.25%,

8.494%,

4/23/29 

7,510‌

6,291‌

WR

Grace

Holdings,

FRN,

3M

USD

LIBOR

+

3.75%,

7.438%,

9/22/28 

16,856‌

16,518‌

66,601‌

Consumer

Products

1.0%

ABG

Intermediate

Holdings

2,

FRN,

1M

USD

LIBOR

+

3.25%,

7.321%,

9/27/24 

10,552‌

10,451‌

Life

Time,

FRN,

1M

USD

LIBOR

+

4.75%,

9.485%,

12/16/24 

4,605‌

4,572‌

Olaplex,

FRN,

1M

TSFR

+

3.50%,

7.198%,

2/23/29  (3)

18,422‌

17,501‌

PLNTF

Holdings,

FRN,

1M

USD

LIBOR

+

8.00%,

11.602%,

3/22/26  (3)

3,436‌

3,333‌

United

PF

Holdings,

FRN,

1M

USD

LIBOR

+

8.50%,

12.174%,

12/30/26  (3)

3,982‌

3,723‌

39,580‌

Container

1.1%

Charter

Next

Generation,

FRN,

1M

USD

LIBOR

+

3.75%,

7.821%,

12/1/27 

47,706‌

46,416‌

46,416‌

Energy

1.3%

Brazos

Delaware

II,

FRN,

3M

USD

LIBOR

+

4.00%,

7.939%,

5/21/25 

7,090‌

7,043‌

CQP

Holdco,

FRN,

1M

USD

LIBOR

+

3.75%,

7.424%,

6/5/28 

5,088‌

5,016‌

M6

ETX

Holdings

II

Midco,

FRN,

1M

TSFR

+

4.50%,

8.511%,

9/19/29 

8,375‌

8,370‌

Medallion

Midland

Acquisition,

FRN,

1M

USD

LIBOR

+

3.75%,

7.424%,

10/18/28 

15,789‌

15,601‌

Prairie

ECI

Acquiror,

FRN,

3M

USD

LIBOR

+

4.75%,

8.821%,

3/11/26 

12,813‌

12,383‌

Southwestern

Energy,

FRN,

1M

TSFR

+

2.50%,

6.203%,

6/22/27 

4,317‌

4,257‌

52,670‌

Entertainment

&

Leisure

4.5%

Alchemy

Copyrights,

FRN,

1M

USD

LIBOR

+

3.00%,

6.768%,

3/10/28  (3)

18,361‌

18,223‌

AMC

Entertainment

Holdings,

FRN,

3M

USD

LIBOR

+

3.00%,

6.859%,

4/22/26 

7,188‌

3,992‌

Delta

2,

FRN,

1M

TSFR

+

3.25%,

1/15/30  (2)

20,233‌

20,126‌

Nascar

Holdings,

FRN,

3M

USD

LIBOR

+

2.50%,

6.571%,

10/19/26 

318‌

316‌

Pug,

FRN,

1M

USD

LIBOR

+

4.25%,

8.321%,

2/13/27  (3)

6,964‌

5,954‌

SeaWorld

Parks

&

Entertainment,

FRN,

1M

USD

LIBOR

+

3.00%,

7.125%,

8/25/28 

37,924‌

37,142‌

SMG

U.S.

Midco

2,

FRN,

1M

USD

LIBOR

+

2.50%,

6.915%,

1/23/25 

7,506‌

7,238‌

UFC

Holdings,

FRN,

1M

USD

LIBOR

+

2.75%,

7.11%,

4/29/26 

70,757‌

69,470‌

William

Morris

Endeavor

Entertainment,

FRN,

3M

USD

LIBOR

+

2.75%,

6.83%,

5/18/25 

26,151‌

25,418‌

187,879‌

T.

ROWE

PRICE

Floating

Rate

Fund

26

Par/Shares

$

Value

(Amounts

in

000s)

‡

Financial

12.7%

Acrisure,

FRN,

1M

TSFR

+

5.75%,

9.879%,

2/15/27  (3)

21,070‌

20,859‌

Acrisure,

FRN,

1M

USD

LIBOR

+

3.50%,

7.571%,

2/15/27 

14,982‌

14,000‌

Acrisure,

FRN,

1M

USD

LIBOR

+

3.75%,

7.821%,

2/15/27 

12,802‌

12,066‌

Acrisure,

FRN,

1M

USD

LIBOR

+

4.25%,

8.321%,

2/15/27 

7,632‌

7,318‌

Advisor

Group

Holdings,

FRN,

1M

USD

LIBOR

+

4.50%,

8.571%,

7/31/26 

4,185‌

4,064‌

Alliant

Holdings

Intermediate,

FRN,

1M

USD

LIBOR

+

3.25%,

7.321%,

5/9/25 

5,357‌

5,249‌

Alliant

Holdings

Intermediate,

FRN,

1M

USD

LIBOR

+

3.50%,

7.439%,

11/5/27 

39,601‌

38,388‌

Allspring

Buyer,

FRN,

1M

TSFR

+

3.75%,

7.303%,

11/1/28 

2,020‌

1,994‌

Allspring

Buyer,

FRN,

3M

USD

LIBOR

+

3.00%,

6.688%,

11/1/28 

6,364‌

6,271‌

Apollo

Commercial

Real

Estate

Finance,

FRN,

1M

USD

LIBOR

+

3.50%,

7.544%,

3/11/28  (3)

4,289‌

3,989‌

Aretec

Group,

FRN,

3M

USD

LIBOR

+

4.25%,

8.436%,

10/1/25 

33,819‌

32,813‌

Armor

Holdco,

FRN,

1M

USD

LIBOR

+

4.50%,

8.174%,

12/11/28 

4,648‌

4,573‌

AssuredPartners,

FRN,

1M

TSFR

+

3.50%,

7.586%,

2/12/27 

19,427‌

18,638‌

AssuredPartners,

FRN,

1M

TSFR

+

4.25%,

2/13/27  (2)

7,740‌

7,590‌

AssuredPartners,

FRN,

1M

USD

LIBOR

+

3.50%,

7.571%,

2/12/27 

15,065‌

14,451‌

AssuredPartners,

FRN,

1M

USD

LIBOR

+

3.50%,

7.571%,

2/12/27 

1,765‌

1,694‌

Blackstone

Mortgage

Trust,

FRN,

1M

TSFR

+

3.50%,

7.586%,

5/9/29  (3)

6,513‌

6,366‌

Citadel

Securities,

FRN,

1M

TSFR

+

3.00%,

7.201%,

2/2/28 

5,020‌

4,979‌

Citco

Funding,

FRN,

1M

TSFR

+

3.50%,

7.581%,

4/27/28  (3)

5,495‌

5,447‌

Claros

Mortgage

Trust,

FRN,

1M

TSFR

+

4.60%,

8.396%,

8/9/26 

6,118‌

6,019‌

Edelman

Financial

Engines

Center,

FRN,

1M

USD

LIBOR

+

3.50%,

7.571%,

4/7/28 

4,350‌

4,145‌

Edelman

Financial

Engines

Center,

FRN,

3M

USD

LIBOR

+

6.75%,

10.821%,

7/20/26 

11,329‌

10,189‌

EIG

Management,

FRN,

3M

USD

LIBOR

+

3.75%,

7.821%,

2/24/25  (3)

6,727‌

6,526‌

Focus

Financial

Partners,

FRN,

1M

TSFR

+

3.25%,

6/30/28  (2)

12,220‌

12,014‌

Focus

Financial

Partners,

FRN,

1M

USD

LIBOR

+

2.50%,

6.586%,

6/30/28 

3,887‌

3,766‌

Hightower

Holding,

FRN,

1M

USD

LIBOR

+

4.00%,

8.278%,

4/21/28 

6,670‌

6,220‌

HUB

International,

FRN,

1M

TSFR

+

4.00%,

8.129%,

10/31/29 

12,430‌

12,228‌

HUB

International,

FRN,

1M

USD

LIBOR

+

3.00%,

7.326%,

4/25/25 

2,735‌

2,681‌

HUB

International,

FRN,

1M

USD

LIBOR

+

3.25%,

7.527%,

4/25/25 

98,494‌

96,799‌

Jones

Deslauriers

Insurance

Management,

FRN,

1M

CAD

CDOR

+

4.25%,

8.813%,

3/27/28

(CAD) 

13,394‌

9,236‌

Jones

Deslauriers

Insurance

Management,

FRN,

1M

CAD

CDOR

+

4.25%,

8.813%,

3/27/28

(CAD) 

4,060‌

2,799‌

Jones

Deslauriers

Insurance

Management,

FRN,

1M

CAD

CDOR

+

7.50%,

12.063%,

3/26/29

(CAD)  (3)

4,240‌

2,853‌

T.

ROWE

PRICE

Floating

Rate

Fund

27

Par/Shares

$

Value

(Amounts

in

000s)

‡

Motion

Finco,

FRN,

1M

USD

LIBOR

+

3.25%,

6.924%,

11/12/26  (2)

6,780‌

6,517‌

Nexus

Buyer,

FRN,

1M

USD

LIBOR

+

3.75%,

7.821%,

11/9/26 

2,883‌

2,757‌

Nexus

Buyer,

FRN,

1M

USD

LIBOR

+

6.25%,

10.321%,

11/5/29 

6,295‌

5,833‌

Ryan

Specialty

Group,

FRN,

1M

USD

LIBOR

+

3.00%,

7.186%,

9/1/27 

6,678‌

6,626‌

Sedgwick

Claims

Management

Services,

FRN,

1M

USD

LIBOR

+

3.75%,

7.821%,

9/3/26 

15,808‌

15,429‌

Sedgwick

Claims

Management

Services,

FRN,

1M

USD

LIBOR

+

4.25%,

8.321%,

9/3/26 

3,822‌

3,758‌

Sedgwick

Claims

Management

Services,

FRN,

3M

USD

LIBOR

+

3.25%,

7.321%,

12/31/25 

29,784‌

28,936‌

Starwood

Property

Mortgage,

FRN,

1M

USD

LIBOR

+

3.25%,

7.321%,

7/26/26  (3)

1,326‌

1,310‌

Tegra118

Wealth

Solutions,

FRN,

1M

USD

LIBOR

+

4.00%,

7.911%,

2/18/27 

6,342‌

5,993‌

USI,

FRN,

1M

TSFR

+

3.75%,

11/16/29  (2)

36,385‌

35,755‌

USI,

FRN,

1M

USD

LIBOR

+

3.25%,

6.924%,

12/2/26 

17,768‌

17,460‌

VFH

Parent,

FRN,

1M

TSFR

+

3.00%,

7.011%,

1/13/29 

11,984‌

11,625‌

528,223‌

Food

1.9%

Chobani,

FRN,

1M

USD

LIBOR

+

3.50%,

7.571%,

10/25/27 

1,895‌

1,837‌

Naked

Juice,

FRN,

1M

TSFR

+

6.10%,

9.653%,

1/20/30 

16,465‌

14,304‌

Naked

Juice,

FRN,

3M

TSFR

+

3.25%,

6.903%,

1/20/29 

10,819‌

10,170‌

Primary

Products

Finance,

FRN,

1M

USD

LIBOR

+

4.15%,

6.227%,

10/22/28 

8,848‌

8,645‌

Simply

Good

Foods

USA,

FRN,

1M

TSFR

+

3.25%,

7.72%,

7/7/24 

6,064‌

6,048‌

Triton

Water

Holdings,

FRN,

1M

USD

LIBOR

+

3.50%,

7.174%,

3/31/28 

9,814‌

9,029‌

Woof

Holdings,

FRN,

1M

USD

LIBOR

+

3.75%,

7.315%,

12/21/27 

14,979‌

14,080‌

Woof

Holdings,

FRN,

1M

USD

LIBOR

+

7.25%,

10.815%,

12/21/28 

18,170‌

16,353‌

80,466‌

Gaming

1.4%

Aristocrat

Technologies,

FRN,

1M

TSFR

+

2.25%,

5.903%,

5/24/29 

2,333‌

2,324‌

Caesars

Resort

Collection,

FRN,

1M

USD

LIBOR

+

3.50%,

7.571%,

7/21/25 

12,721‌

12,621‌

Caesars

Resort

Collection,

FRN,

3M

USD

LIBOR

+

2.75%,

6.821%,

12/23/24 

3,745‌

3,717‌

Great

Canadian

Gaming,

FRN,

1M

USD

LIBOR

+

4.00%,

7.602%,

11/1/26 

10,648‌

10,422‌

HRNI

Holdings,

FRN,

1M

USD

LIBOR

+

4.25%,

8.321%,

12/11/28 

6,942‌

6,716‌

Playtika

Holding,

FRN,

1M

USD

LIBOR

+

2.75%,

6.821%,

3/13/28 

2,760‌

2,687‌

Scientific

Games

Holdings,

FRN,

1M

TSFR

+

3.50%,

7.097%,

2/4/29 

10,605‌

10,114‌

Scientific

Games

International,

FRN,

1M

TSFR

+

3.00%,

6.896%,

4/14/29 

10,155‌

9,944‌

58,545‌

T.

ROWE

PRICE

Floating

Rate

Fund

28

Par/Shares

$

Value

(Amounts

in

000s)

‡

Health

Care

13.2%

AthenaHealth

Group,

FRN,

1M

TSFR

+

3.50%,

7.194%,

2/15/29  (4)

44,723‌

40,743‌

Auris

Luxembourg

III,

FRN,

3M

USD

LIBOR

+

3.75%,

8.676%,

2/27/26 

12,453‌

10,979‌

Azalea

Topco,

FRN,

1M

TSFR

+

3.75%,

7.936%,

7/24/26 

15,210‌

14,032‌

Azalea

Topco,

FRN,

1M

USD

LIBOR

+

3.50%,

7.571%,

7/24/26 

14,940‌

13,801‌

Azalea

Topco,

FRN,

1M

USD

LIBOR

+

3.75%,

7.821%,

7/24/26  (3)

11,954‌

11,386‌

CAB

SELAS,

FRN,

3M

EURIBOR

+

3.00%,

4.742%,

2/9/28

(EUR) 

2,770‌

2,630‌

CHG

Healthcare

Services,

FRN,

1M

USD

LIBOR

+

3.25%,

7.321%,

9/29/28 

4,408‌

4,316‌

Diacine

France,

FRN,

3M

EURIBOR

+

3.50%,

4.693%,

12/13/24

(EUR) 

2,580‌

2,665‌

Embecta,

FRN,

1M

TSFR

+

3.00%,

6.553%,

3/30/29 

7,266‌

6,980‌

Eyecare

Partners,

FRN,

1M

USD

LIBOR

+

6.75%,

10.424%,

11/15/29 

800‌

656‌

Gainwell

Acquisition,

FRN,

1M

USD

LIBOR

+

4.00%,

7.674%,

10/1/27 

65,097‌

63,404‌

Heartland

Dental,

FRN,

1M

TSFR

+

5.00%,

8.553%,

9/29/28 

5,486‌

5,102‌

Heartland

Dental,

FRN,

1M

USD

LIBOR

+

4.00%,

8.044%,

4/30/25 

13,194‌

12,211‌

Heartland

Dental,

FRN,

3M

USD

LIBOR

+

3.75%,

7.821%,

4/30/25 

6,689‌

6,171‌

ICON

Luxembourg,

FRN,

1M

USD

LIBOR

+

2.25%,

5.938%,

7/3/28 

16,735‌

16,642‌

ICU

Medical,

FRN,

1M

TSFR

+

2.25%,

6.007%,

1/8/29 

7,706‌

7,398‌

Insulet,

FRN,

1M

USD

LIBOR

+

3.25%,

7.321%,

5/4/28 

32,036‌

31,455‌

Maravai

Intermediate

Holdings,

FRN,

1M

TSFR

+

3.00%,

6.955%,

10/29/27 

27,838‌

27,316‌

MED

ParentCo,

FRN,

1M

USD

LIBOR

+

4.25%,

8.321%,

8/31/26 

7,582‌

6,431‌

MED

ParentCo,

FRN,

1M

USD

LIBOR

+

8.25%,

12.321%,

8/30/27 

8,045‌

5,993‌

Medline

Borrower,

FRN,

1M

USD

LIBOR

+

3.25%,

7.321%,

10/23/28 

42,964‌

40,756‌

National

Mentor

Holdings,

FRN,

1M

USD

LIBOR

+

7.25%,

10.93%,

3/2/29 

8,765‌

5,785‌

Netsmart,

FRN,

1M

USD

LIBOR

+

4.00%,

8.071%,

10/1/27 

5,226‌

5,014‌

Option

Care

Health,

FRN,

1M

USD

LIBOR

+

2.75%,

6.821%,

10/27/28 

4,476‌

4,446‌

Organon,

FRN,

1M

USD

LIBOR

+

3.00%,

6.188%,

6/2/28 

8,016‌

7,927‌

Padagis,

FRN,

1M

USD

LIBOR

+

4.75%,

8.491%,

7/6/28  (3)

4,313‌

3,602‌

Pathway

Vet

Alliance,

FRN,

1M

USD

LIBOR

+

3.75%,

7.424%,

3/31/27 

15,208‌

13,335‌

Perrigo

Investments,

FRN,

1M

TSFR

+

2.50%,

6.686%,

4/20/29 

6,987‌

6,873‌

PetVet

Care

Centers,

FRN,

1M

TSFR

+

5.00%,

9.00%,

2/14/25 

16,160‌

15,325‌

PetVet

Care

Centers,

FRN,

1M

USD

LIBOR

+

3.50%,

7.571%,

2/14/25 

38,518‌

35,581‌

PetVet

Care

Centers,

FRN,

3M

USD

LIBOR

+

3.25%,

7.321%,

2/14/25 

4,812‌

4,439‌

PetVet

Care

Centers,

FRN,

3M

USD

LIBOR

+

6.25%,

10.321%,

2/13/26 

11,945‌

11,159‌

T.

ROWE

PRICE

Floating

Rate

Fund

29

Par/Shares

$

Value

(Amounts

in

000s)

‡

Phoenix

Newco,

FRN,

1M

USD

LIBOR

+

3.25%,

7.321%,

11/15/28 

21,461‌

20,611‌

Phoenix

Newco,

FRN,

3M

USD

LIBOR

+

6.50%,

10.571%,

11/15/29 

17,820‌

16,751‌

Project

Ruby

Ultimate

Parent,

FRN,

1M

USD

LIBOR

+

3.25%,

7.321%,

3/10/28 

15,304‌

14,523‌

SAM

Bidco,

FRN,

1M

USD

LIBOR

+

3.25%,

6.924%,

12/13/24 

1,030‌

978‌

Select

Medical,

FRN,

3M

USD

LIBOR

+

2.50%,

6.58%,

3/6/25 

3,948‌

3,871‌

Southern

Veterinary

Partners,

FRN,

1M

USD

LIBOR

+

4.00%,

8.071%,

10/5/27 

8,923‌

8,562‌

Sunshine

Luxembourg

VII,

FRN,

1M

USD

LIBOR

+

3.75%,

7.424%,

10/1/26 

9,264‌

8,786‌

Surgery

Center

Holdings,

FRN,

1M

USD

LIBOR

+

3.75%,

7.63%,

8/31/26 

20,436‌

20,028‌

Waystar

Technologies,

FRN,

1M

USD

LIBOR

+

4.00%,

8.071%,

10/22/26 

9,355‌

9,168‌

547,831‌

Information

Technology

11.3%

Applied

Systems,

FRN,

1M

TSFR

+

4.50%,

9/19/26  (2)

2,910‌

2,891‌

Applied

Systems,

FRN,

1M

USD

LIBOR

+

3.00%,

6.674%,

9/19/24  (2)

38,921‌

38,766‌

Applied

Systems,

FRN,

1M

USD

LIBOR

+

5.50%,

9.174%,

9/19/25 

26,866‌

26,597‌

AppLovin,

FRN,

3M

USD

LIBOR

+

3.00%,

6.674%,

10/25/28 

7,176‌

6,719‌

Boxer

Parent,

FRN,

1M

USD

LIBOR

+

3.75%,

7.821%,

10/2/25 

15,998‌

15,324‌

Boxer

Parent,

FRN,

1M

USD

LIBOR

+

5.50%,

9.571%,

2/27/26 

4,420‌

4,055‌

CCC

Intelligent

Solutions,

FRN,

3M

USD

LIBOR

+

2.25%,

6.321%,

9/21/28 

4,282‌

4,209‌

Central

Parent,

FRN,

1M

TSFR

+

4.50%,

8.112%,

6/9/29 

41,860‌

41,323‌

ConnectWise,

FRN,

1M

USD

LIBOR

+

3.50%,

7.174%,

9/29/28 

7,311‌

7,008‌

Conservice

Midco,

FRN,

1M

USD

LIBOR

+

4.25%,

8.321%,

5/13/27 

3,798‌

3,668‌

Delta

Topco,

FRN,

1M

USD

LIBOR

+

7.25%,

9.336%,

12/1/28 

5,445‌

4,611‌

ECI

Macola,

FRN,

1M

USD

LIBOR

+

3.75%,

7.424%,

11/9/27 

13,208‌

12,700‌

Entegris,

FRN,

1M

TSFR

+

3.00%,

5.948%,

7/6/29 

8,815‌

8,733‌

Epicor

Software,

FRN,

1M

USD

LIBOR

+

3.25%,

7.321%,

7/30/27 

67,532‌

65,140‌

Epicor

Software,

FRN,

1M

USD

LIBOR

+

7.75%,

11.821%,

7/31/28 

11,185‌

11,031‌

Go

Daddy

Operating,

FRN,

1M

TSFR

+

3.25%,

7.336%,

11/9/29  (2)

5,200‌

5,181‌

Hyland

Software,

FRN,

1M

USD

LIBOR

+

3.50%,

7.571%,

7/1/24 

6,615‌

6,511‌

Hyland

Software,

FRN,

1M

USD

LIBOR

+

6.25%,

10.321%,

7/7/25 

16,173‌

15,253‌

Infinite

Bidco,

FRN,

1M

USD

LIBOR

+

3.25%,

6.924%,

3/2/28 

4,594‌

4,388‌

Infinite

Bidco,

FRN,

1M

USD

LIBOR

+

7.00%,

10.674%,

3/2/29 

5,600‌

5,124‌

Magnite,

FRN,

1M

USD

LIBOR

+

5.00%,

9.10%,

4/28/28 

4,796‌

4,492‌

McAfee,

FRN,

1M

TSFR

+

3.75%,

7.636%,

3/1/29 

17,531‌

16,622‌

MH

Sub

I,

FRN,

1M

USD

LIBOR

+

3.75%,

7.821%,

9/13/24 

22,599‌

21,964‌

MH

Sub

I,

FRN,

1M

USD

LIBOR

+

6.25%,

10.649%,

2/23/29 

19,776‌

17,724‌

MH

Sub

I,

FRN,

3M

USD

LIBOR

+

3.75%,

7.821%,

9/13/24 

12,954‌

12,592‌

Planview

Parent,

FRN,

1M

USD

LIBOR

+

4.00%,

7.674%,

12/17/27 

3,532‌

3,290‌

T.

ROWE

PRICE

Floating

Rate

Fund

30

Par/Shares

$

Value

(Amounts

in

000s)

‡

Proofpoint,

FRN,

1M

USD

LIBOR

+

3.25%,

6.32%,

8/31/28 

4,333‌

4,164‌

Proofpoint,

FRN,

3M

USD

LIBOR

+

6.25%,

9.32%,

8/31/29 

4,275‌

4,083‌

RealPage,

FRN,

1M

USD

LIBOR

+

3.00%,

7.071%,

4/24/28 

27,550‌

26,327‌

RealPage,

FRN,

1M

USD

LIBOR

+

6.50%,

10.571%,

4/23/29 

12,015‌

11,497‌

Sophia,

FRN,

1M

TSFR

+

4.25%,

8.336%,

10/7/27 

13,930‌

13,512‌

Sophia,

FRN,

1M

USD

LIBOR

+

3.50%,

7.174%,

10/7/27 

19,108‌

18,386‌

Sovos

Compliance,

FRN,

1M

USD

LIBOR

+

4.50%,

8.571%,

8/11/28 

4,912‌

4,778‌

Storable,

FRN,

1M

TSFR

+

3.50%,

7.408%,

4/17/28 

7,437‌

7,089‌

Tenable,

FRN,

1M

USD

LIBOR

+

2.75%,

7.165%,

7/7/28 

2,354‌

2,284‌

TIBCO

Software,

FRN,

3M

TSFR

+

4.50%,

7.634%,

3/20/22 

6,955‌

6,304‌

Uber

Technologies,

FRN,

1M

USD

LIBOR

+

3.50%,

8.235%,

4/4/25 

3,264‌

3,256‌

467,596‌

Lodging

0.5%

Aimbridge

Acquisition,

FRN,

1M

USD

LIBOR

+

4.75%,

8.689%,

2/2/26 

7,351‌

6,929‌

Aimbridge

Acquisition,

FRN,

3M

USD

LIBOR

+

3.75%,

7.821%,

2/2/26 

9,205‌

8,560‌

Four

Seasons

Hotels,

FRN,

1M

TSFR

+

3.25%,

11/30/29  (2)

2,055‌

2,051‌

Playa

Resorts

Holding,

FRN,

1M

TSFR

+

4.25%,

11/22/28  (2)

3,865‌

3,748‌

21,288‌

Manufacturing

3.3%

Engineered

Machinery

Holdings,

FRN,

1M

USD

LIBOR

+

3.75%,

7.424%,

5/19/28 

18,473‌

17,844‌

Engineered

Machinery

Holdings,

FRN,

1M

USD

LIBOR

+

6.50%,

10.174%,

5/21/29 

9,855‌

9,071‌

Engineered

Machinery

Holdings,

FRN,

3M

USD

LIBOR

+

6.00%,

9.674%,

5/21/29 

14,274‌

13,155‌

Filtration

Group,

FRN,

1M

USD

LIBOR

+

3.50%,

7.571%,

10/21/28 

29,157‌

28,377‌

Filtration

Group,

FRN,

3M

EURIBOR

+

3.50%,

4.992%,

3/31/25

(EUR) 

4,700‌

4,707‌

Filtration

Group,

FRN,

3M

USD

LIBOR

+

3.00%,

7.071%,

3/31/25  (2)

28,957‌

28,548‌

LTI

Holdings,

FRN,

1M

USD

LIBOR

+

4.75%,

8.654%,

7/24/26 

1,300‌

1,227‌

LTI

Holdings,

FRN,

1M

USD

LIBOR

+

4.75%,

8.821%,

7/24/26 

1,816‌

1,724‌

LTI

Holdings,

FRN,

3M

USD

LIBOR

+

3.50%,

7.571%,

9/6/25 

737‌

694‌

LTI

Holdings,

FRN,

3M

USD

LIBOR

+

6.75%,

10.821%,

9/6/26 

5,430‌

4,399‌

Madison

IAQ,

FRN,

1M

USD

LIBOR

+

3.25%,

6.815%,

6/21/28 

6,398‌

6,067‌

Pro

Mach

Group,

FRN,

1M

USD

LIBOR

+

6.38%,

8.038%,

8/31/28 

15,155‌

14,782‌

SRAM,

FRN,

1M

USD

LIBOR

+

2.75%,

6.821%,

5/18/28 

8,155‌

7,981‌

138,576‌

Metals

&

Mining

0.1%

Grinding

Media,

FRN,

1M

USD

LIBOR

+

4.00%,

7.509%,

10/12/28  (3)

6,154‌

5,631‌

5,631‌

T.

ROWE

PRICE

Floating

Rate

Fund

31

Par/Shares

$

Value

(Amounts

in

000s)

‡

Real

Estate

Investment

Trust

Securities

0.1%

KREF

Holdings

X,

FRN,

1M

USD

LIBOR

+

3.50%,

7.438%,

9/1/27  (3)

4,333‌

4,278‌

4,278‌

Restaurants

1.8%

Dave

&

Buster's,

FRN,

1M

TSFR

+

5.00%,

9.188%,

6/29/29 

17,027‌

16,870‌

IRB

Holding,

FRN,

1M

TSFR

+

3.00%,

7.284%,

12/15/27 

19,623‌

18,857‌

IRB

Holding,

FRN,

1M

USD

LIBOR

+

2.75%,

6.821%,

2/5/25  (2)

24,295‌

23,835‌

MIC

Glen,

FRN,

1M

USD

LIBOR

+

6.75%,

10.821%,

7/20/29 

2,990‌

2,706‌

Tacala

Investment,

FRN,

1M

USD

LIBOR

+

3.50%,

7.571%,

2/5/27 

4,623‌

4,429‌

Tacala

Investment,

FRN,

1M

USD

LIBOR

+

7.50%,

11.571%,

2/4/28 

7,085‌

6,414‌

73,111‌

Retail

1.5%

At

Home

Group,

FRN,

1M

USD

LIBOR

+

4.00%,

7.743%,

7/24/28 

5,983‌

4,739‌

CNT

Holdings

I,

FRN,

1M

USD

LIBOR

+

3.50%,

7.239%,

11/8/27 

12,990‌

12,553‌

CNT

Holdings

I,

FRN,

1M

USD

LIBOR

+

6.75%,

10.489%,

11/6/28 

6,745‌

6,352‌

Petco

Health

&

Wellness,

FRN,

1M

USD

LIBOR

+

3.25%,

6.924%,

3/3/28 

6,355‌

6,151‌

PetSmart,

FRN,

1M

USD

LIBOR

+

3.75%,

7.82%,

2/11/28 

32,396‌

31,089‌

60,884‌

Satellites

1.2%

Iridium

Satellite,

FRN,

1M

USD

LIBOR

+

2.50%,

6.571%,

11/4/26 

29,136‌

28,857‌

Maxar

Technologies,

FRN,

1M

TSFR

+

4.25%,

8.436%,

6/14/29 

8,946‌

8,598‌

Xplornet

Communications,

FRN,

1M

USD

LIBOR

+

4.00%,

8.071%,

10/2/28 

11,118‌

9,034‌

Xplornet

Communications,

FRN,

1M

USD

LIBOR

+

7.00%,

11.071%,

10/1/29  (3)

4,670‌

3,502‌

49,991‌

Services

9.7%

Advantage

Sales

&

Marketing,

FRN,

1M

USD

LIBOR

+

4.50%,

8.284%,

10/28/27 

7,363‌

5,907‌

AG

Group

Holdings,

FRN,

1M

TSFR

+

4.00%,

8.094%,

12/29/28  (3)

5,167‌

5,012‌

AI

Aqua

Merger

Sub,

FRN,

1M

USD

LIBOR

+

3.75%,

7.544%,

7/31/28 

6,473‌

6,138‌

Albion

Acquisitions,

FRN,

1M

USD

LIBOR

+

5.25%,

9.575%,

8/17/26 

14,218‌

13,428‌

Allied

Universal

Holdco,

FRN,

1M

USD

LIBOR

+

3.75%,

7.821%,

5/12/28 

2,977‌

2,810‌

Anticimex

Global,

FRN,

1M

USD

LIBOR

+

3.50%,

8.235%,

11/16/28  (3)

4,413‌

4,269‌

Anticimex

Global,

FRN,

1M

USD

LIBOR

+

4.00%,

8.735%,

11/16/28  (3)

3,956‌

3,837‌

Ascend

Learning,

FRN,

1M

USD

LIBOR

+

3.50%,

7.571%,

12/11/28 

30,475‌

28,790‌

T.

ROWE

PRICE

Floating

Rate

Fund

32

Par/Shares

$

Value

(Amounts

in

000s)

‡

Ascend

Learning,

FRN,

1M

USD

LIBOR

+

5.75%,

9.821%,

12/10/29 

30,120‌

25,527‌

Camelot

U.S.

Acquisition,

FRN,

1M

USD

LIBOR

+

3.00%,

7.071%,

10/30/26 

1,397‌

1,373‌

Ceridian

HCM

Holding,

FRN,

1M

USD

LIBOR

+

2.50%,

6.571%,

4/30/25  (2)

3,119‌

3,044‌

CoreLogic,

FRN,

1M

USD

LIBOR

+

6.50%,

10.625%,

6/4/29 

12,820‌

8,702‌

DG

Investment

Intermediate

Holdings

2,

FRN,

1M

USD

LIBOR

+

3.75%,

7.821%,

3/31/28 

6,490‌

6,206‌

DG

Investment

Intermediate

Holdings

2,

FRN,

1M

USD

LIBOR

+

6.75%,

10.821%,

3/30/29 

3,325‌

2,926‌

Dun

&

Bradstreet,

FRN,

1M

USD

LIBOR

+

3.25%,

7.294%,

2/6/26 

6,276‌

6,185‌

EG

America,

FRN,

1M

USD

LIBOR

+

4.25%,

7.924%,

3/31/26 

7,652‌

6,990‌

EG

America,

FRN,

3M

USD

LIBOR

+

4.00%,

7.674%,

2/7/25 

15,719‌

14,327‌

EG

Finco,

FRN,

3M

EURIBOR

+

7.00%,

7.00%,

4/30/27

(EUR) 

11,265‌

10,003‌

EP

Purchaser,

FRN,

1M

USD

LIBOR

+

3.50%,

7.174%,

11/6/28 

3,570‌

3,530‌

GFL

Environmental,

FRN,

1M

USD

LIBOR

+

3.00%,

7.415%,

5/30/25 

16,538‌

16,496‌

Instructure

Holdings,

FRN,

1M

USD

LIBOR

+

2.75%,

6.121%,

10/30/28  (3)

249‌

246‌

KKR

Apple

Bidco,

FRN,

1M

TSFR

+

4.00%,

8.055%,

9/22/28 

3,695‌

3,670‌

Loyalty

Ventures,

FRN,

1M

USD

LIBOR

+

4.50%,

8.571%,

11/3/27 

2,796‌

1,105‌

Mermaid

Bidco,

FRN,

1M

USD

LIBOR

+

3.50%,

7.96%,

12/22/27  (3)

3,961‌

3,704‌

Prime

Security

Services

Borrower,

FRN,

1M

USD

LIBOR

+

2.75%,

6.505%,

9/23/26 

4,260‌

4,196‌

Project

Boost

Purchaser,

FRN,

1M

USD

LIBOR

+

3.50%,

7.571%,

5/30/26 

6,224‌

5,991‌

Project

Boost

Purchaser,

FRN,

1M

USD

LIBOR

+

3.50%,

7.571%,

6/1/26 

3,473‌

3,353‌

Renaissance

Holdings,

FRN,

1M

TSFR

+

4.50%,

8.294%,

4/1/27 

7,747‌

7,452‌

Renaissance

Holdings,

FRN,

3M

USD

LIBOR

+

3.25%,

7.321%,

5/30/25 

5,797‌

5,543‌

Renaissance

Holdings,

FRN,

3M

USD

LIBOR

+

7.00%,

11.071%,

5/29/26 

5,350‌

5,069‌

Sabre

GLBL,

FRN,

1M

TSFR

+

4.25%,

8.436%,

6/30/28 

5,586‌

5,195‌

Sabre

GLBL,

FRN,

1M

TSFR

+

5.00%,

9.186%,

6/30/28 

5,950‌

5,563‌

Skopima

Consilio

Parent,

FRN,

1M

USD

LIBOR

+

4.00%,

8.071%,

5/12/28 

6,643‌

6,318‌

Staples,

FRN,

3M

USD

LIBOR

+

5.00%,

7.782%,

4/16/26 

18,654‌

16,603‌

TK

Elevator

U.S.

Newco,

FRN,

6M

USD

LIBOR

+

3.50%,

6.871%,

7/30/27 

14,524‌

13,907‌

TruGreen,

FRN,

1M

USD

LIBOR

+

4.00%,

8.071%,

11/2/27 

1,217‌

1,081‌

TruGreen,

FRN,

1M

USD

LIBOR

+

8.50%,

12.915%,

11/2/28  (3)

7,271‌

5,998‌

UKG,

FRN,

1M

USD

LIBOR

+

3.25%,

6.998%,

5/4/26 

47,687‌

45,998‌

UKG,

FRN,

1M

USD

LIBOR

+

5.25%,

8.998%,

5/3/27 

79,930‌

73,136‌

USIC

Holdings,

FRN,

1M

USD

LIBOR

+

3.50%,

7.571%,

5/12/28 

5,853‌

5,601‌

T.

ROWE

PRICE

Floating

Rate

Fund

33

Par/Shares

$

Value

(Amounts

in

000s)

‡

USIC

Holdings,

FRN,

1M

USD

LIBOR

+

6.50%,

10.571%,

5/14/29 

5,435‌

5,091‌

White

Cap

Buyer,

FRN,

1M

TSFR

+

3.75%,

7.55%,

10/19/27 

4,835‌

4,650‌

404,970‌

Utilities

2.8%

Brookfield

WEC

Holdings,

FRN,

1M

TSFR

+

3.75%,

7.836%,

8/1/25 

14,670‌

14,555‌

Brookfield

WEC

Holdings,

FRN,

1M

USD

LIBOR

+

2.75%,

6.821%,

8/1/25 

10,547‌

10,341‌

Covanta

Holding,

FRN,

1M

USD

LIBOR

+

2.50%,

6.586%,

11/30/28 

7,649‌

7,490‌

Exgen

Renewables

IV,

FRN,

3M

USD

LIBOR

+

2.50%,

7.24%,

12/15/27 

12,277‌

12,152‌

PG&E,

FRN,

1M

USD

LIBOR

+

3.00%,

7.125%,

6/23/25 

39,819‌

39,164‌

Pike,

FRN,

1M

TSFR

+

3.50%,

7.586%,

1/21/28 

4,525‌

4,466‌

Pike,

FRN,

1M

USD

LIBOR

+

3.00%,

7.08%,

1/21/28 

9,873‌

9,671‌

TerraForm

Power

Operating,

FRN,

1M

TSFR

+

2.75%,

6.303%,

5/30/29 

17,421‌

17,283‌

115,122‌

Wireless

Communications

1.7%

Asurion,

FRN,

1M

USD

LIBOR

+

3.25%,

7.321%,

12/23/26 

8,676‌

7,577‌

Asurion,

FRN,

1M

USD

LIBOR

+

3.25%,

7.321%,

7/31/27 

4,797‌

4,149‌

Asurion,

FRN,

1M

USD

LIBOR

+

5.25%,

9.321%,

1/31/28 

21,406‌

16,461‌

Asurion,

FRN,

1M

USD

LIBOR

+

5.25%,

9.321%,

1/20/29 

42,600‌

32,624‌

CCI

Buyer,

FRN,

1M

TSFR

+

4.00%,

7.553%,

12/17/27 

8,638‌

8,338‌

69,149‌

Total

Bank

Loans

(Cost

$3,737,526)

3,580,218‌

CONVERTIBLE

PREFERRED

STOCKS

0.2%

Energy

Services

0.1%

NuStar

Energy,

VR,

10.75%  (5)(6)

105‌

3,105‌

3,105‌

Insurance

0.0%

Alliant

Services,

Series A,

Acquisition

Date:

11/6/20,

Cost $2,093  (7)(8)

2‌

1,992‌

1,992‌

Utilities

0.1%

American

Electric

Power,

6.125%,

8/15/23 

50‌

2,668‌

2,668‌

Total

Convertible

Preferred

Stocks

(Cost

$7,329)

7,765‌

T.

ROWE

PRICE

Floating

Rate

Fund

34

Par/Shares

$

Value

(Amounts

in

000s)

‡

CORPORATE

BONDS

7.3%

Aerospace

&

Defense

0.2%

TransDigm,

8.00%,

12/15/25  (5)

6,615‌

6,714‌

6,714‌

Airlines

0.6%

American

Airlines,

5.50%,

4/20/26  (5)

2,460‌

2,380‌

American

Airlines,

5.75%,

4/20/29  (5)

3,410‌

3,163‌

American

Airlines,

11.75%,

7/15/25  (5)

9,365‌

10,348‌

Delta

Air

Lines,

4.75%,

10/20/28  (5)

2,855‌

2,707‌

Mileage

Plus

Holdings,

6.50%,

6/20/27  (5)

2,484‌

2,472‌

United

Airlines,

4.375%,

4/15/26  (5)

2,805‌

2,588‌

United

Airlines,

4.625%,

4/15/29  (5)

2,395‌

2,119‌

25,777‌

Automotive

0.9%

Clarios

Global,

6.25%,

5/15/26  (5)

3,175‌

3,135‌

Ford

Motor

Credit,

4.063%,

11/1/24 

2,400‌

2,307‌

Ford

Motor

Credit,

5.584%,

3/18/24 

2,375‌

2,346‌

Rivian

Holdings,

FRN,

6M

USD

LIBOR

+

5.625%,

10.164%,

10/15/26  (5)

29,970‌

28,622‌

36,410‌

Banking

0.2%

Morgan

Stanley,

FRN,

SOFR

+

1.165%,

4.844%,

4/17/25 

8,500‌

8,423‌

8,423‌

Beverages

0.1%

Anheuser-Busch

InBev

Worldwide,

FRN,

3M

USD

LIBOR

+

0.74%,

4.659%,

1/12/24 

3,020‌

3,019‌

3,019‌

Broadcasting

0.2%

iHeartCommunications,

4.75%,

1/15/28  (5)

2,685‌

2,309‌

iHeartCommunications,

5.25%,

8/15/27  (5)

780‌

690‌

iHeartCommunications,

6.375%,

5/1/26 

45‌

43‌

Neptune

Bidco

U.S.,

9.29%,

4/15/29  (5)

3,380‌

3,215‌

Townsquare

Media,

6.875%,

2/1/26  (5)

2,459‌

2,275‌

8,532‌

Building

&

Real

Estate

0.1%

Cushman

&

Wakefield

U.S.

Borrower,

6.75%,

5/15/28  (5)

2,965‌

2,832‌

2,832‌

Cable

Operators

0.4%

Altice

France

Holding,

10.50%,

5/15/27  (5)

8,475‌

6,695‌

Charter

Communications

Operating,

FRN,

3M

USD

LIBOR

+

1.65%,

6.09%,

2/1/24 

3,765‌

3,784‌

Radiate

Holdco,

4.50%,

9/15/26  (5)

8,795‌

7,300‌

17,779‌

T.

ROWE

PRICE

Floating

Rate

Fund

35

Par/Shares

$

Value

(Amounts

in

000s)

‡

Chemicals

0.1%

Kobe

U.S.

Midco

2,

9.25%,

11/1/26,

(9.25%

Cash

or

10.00%

PIK)  (5)(9)

3,575‌

2,574‌

2,574‌

Energy

0.2%

NGL

Energy

Operating,

7.50%,

2/1/26  (5)

4,270‌

3,843‌

Tallgrass

Energy

Partners,

6.00%,

3/1/27  (5)

545‌

518‌

Tallgrass

Energy

Partners,

7.50%,

10/1/25  (5)

2,325‌

2,354‌

6,715‌

Entertainment

&

Leisure

0.1%

Carnival,

9.875%,

8/1/27  (5)

3,160‌

3,041‌

Cinemark

USA,

8.75%,

5/1/25  (5)

2,200‌

2,239‌

5,280‌

Financial

1.3%

Acrisure,

7.00%,

11/15/25  (5)

2,275‌

2,119‌

Acrisure,

10.125%,

8/1/26  (5)

10,855‌

10,638‌

Advisor

Group

Holdings,

10.75%,

8/1/27  (5)

2,205‌

2,244‌

AG

Issuer,

6.25%,

3/1/28  (5)

10,960‌

10,234‌

AG

TTMT

Escrow

Issuer,

8.625%,

9/30/27  (5)

3,135‌

3,158‌

Alliant

Holdings

Intermediate,

6.75%,

10/15/27  (5)

2,680‌

2,466‌

Aretec

Escrow

Issuer,

7.50%,

4/1/29  (5)

5,725‌

4,652‌

AssuredPartners,

7.00%,

8/15/25  (5)

2,200‌

2,112‌

GTCR

AP

Finance,

8.00%,

5/15/27  (5)

3,220‌

3,107‌

HUB

International,

7.00%,

5/1/26  (5)

8,150‌

8,058‌

Ryan

Specialty

Group,

4.375%,

2/1/30  (5)

585‌

500‌

USI,

6.875%,

5/1/25  (5)

4,375‌

4,271‌

53,559‌

Food

Processing

0.0%

General

Mills,

FRN,

3M

USD

LIBOR

+

1.01%,

5.089%,

10/17/23 

1,950‌

1,962‌

1,962‌

Gaming

0.3%

Caesars

Resort

Collection,

5.75%,

7/1/25  (5)

7,400‌

7,289‌

International

Game

Technology,

6.50%,

2/15/25  (5)

1,436‌

1,439‌

MGM

Resorts

International,

6.00%,

3/15/23 

5,100‌

5,094‌

13,822‌

Health

Care

0.3%

CHS,

8.00%,

12/15/27  (5)

4,080‌

3,601‌

HCA,

5.375%,

2/1/25 

4,720‌

4,687‌

Medline

Borrower,

3.875%,

4/1/29  (5)

4,560‌

3,830‌

12,118‌

Information

Technology

0.1%

Boxer

Parent,

7.125%,

10/2/25  (5)

1,770‌

1,734‌

Boxer

Parent,

9.125%,

3/1/26  (5)

2,040‌

1,943‌

Expedia

Group,

6.25%,

5/1/25  (5)

1,109‌

1,123‌

4,800‌

T.

ROWE

PRICE

Floating

Rate

Fund

36

Par/Shares

$

Value

(Amounts

in

000s)

‡

Lodging

0.0%

Hilton

Domestic

Operating,

5.375%,

5/1/25  (5)

1,580‌

1,562‌

1,562‌

Manufacturing

0.1%

Sensata

Technologies,

5.625%,

11/1/24  (5)

5,005‌

4,961‌

4,961‌

Metals

&

Mining

0.0%

Big

River

Steel,

6.625%,

1/31/29  (5)

2,574‌

2,468‌

2,468‌

Satellites

0.4%

Connect

Finco,

6.75%,

10/1/26  (5)

6,565‌

6,204‌

Intelsat

Jackson

Holdings,

6.50%,

3/15/30  (5)

5,575‌

5,129‌

Maxar

Technologies,

7.75%,

6/15/27  (5)

4,545‌

4,454‌

15,787‌

Services

0.8%

Adtalem

Global

Education,

5.50%,

3/1/28  (5)

2,786‌

2,591‌

Allied

Universal

Holdco,

6.625%,

7/15/26  (5)

1,790‌

1,700‌

Allied

Universal

Holdco,

9.75%,

7/15/27  (5)

9,555‌

8,623‌

eG

Global

Finance,

8.50%,

10/30/25  (5)

568‌

537‌

Presidio

Holdings,

8.25%,

2/1/28  (5)

3,710‌

3,320‌

Sabre

GLBL,

7.375%,

9/1/25  (5)

7,140‌

6,792‌

Sabre

GLBL,

9.25%,

4/15/25  (5)

5,000‌

4,988‌

Sabre

GLBL,

11.25%,

12/15/27  (5)

4,350‌

4,432‌

32,983‌

Telephones

0.1%

Verizon

Communications,

FRN,

SOFRINDX

+

0.79%,

4.145%,

3/20/26 

2,690‌

2,606‌

2,606‌

Utilities

0.6%

NextEra

Energy

Operating

Partners,

4.25%,

7/15/24  (5)

5,175‌

4,994‌

Vistra,

VR,

7.00%  (5)(6)(10)

17,180‌

15,355‌

Vistra

Operations,

5.125%,

5/13/25  (5)

5,190‌

5,076‌

25,425‌

Wireless

Communications

0.2%

Sprint,

7.125%,

6/15/24 

6,825‌

6,970‌

6,970‌

Total

Corporate

Bonds

(Cost

$323,485)

303,078‌

T.

ROWE

PRICE

Floating

Rate

Fund

37

Par/Shares

$

Value

(Amounts

in

000s)

‡

SHORT-TERM

INVESTMENTS

6.8%

Money

Market

Funds

6.8%

T.

Rowe

Price

Government

Reserve

Fund,

3.86%  (11)(12)

281,122‌

281,122‌

Total

Short-Term

Investments

(Cost

$281,122)

281,122‌

Total

Investments

in

Securities

100.4%

of

Net

Assets

(Cost

$4,349,462)

$

4,172,183‌

‡

Par/Shares

and

Notional

Amount

are

denominated

in

U.S.

dollars

unless

otherwise

noted.

(1)

Bank

loan

positions

may

involve

multiple

underlying

tranches.

In

those

instances,

the

position

presented

reflects

the

aggregate

of

those

respective

underlying

tranches

and

the

rate

presented

reflects

the

weighted

average

rate

of

the

settled

positions.

(2)

All

or

a

portion

of

this

loan

is

unsettled

as

of

November

30,

2022.

The

interest

rate

for

unsettled

loans

will

be

determined

upon

settlement

after

period

end.

(3)

See

Note

2.

Level

3

in

fair

value

hierarchy.

(4)

All

or

a

portion

of

the

position

represents

an

unfunded

commitment;

a

liability

to

fund

the

commitment

has

been

recognized.

The

fund's

total

unfunded

commitments

at

November

30,

2022,

were

$8,146

and

were

valued

at

$8,115

(0.2%

of

net

assets).

(5)

Security

was

purchased

pursuant

to

Rule

144A

under

the

Securities

Act

of

1933

and

may

be

resold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers.

Total

value

of

such

securities

at

period-end

amounts

to

$264,942

and

represents

6.4%

of

net

assets.

(6)

Perpetual

security

with

no

stated

maturity

date.

(7)

Non-income

producing

(8)

Security

cannot

be

offered

for

public

resale

without

first

being

registered

under

the

Securities

Act

of

1933

and

related

rules

("restricted

security").

Acquisition

date

represents

the

day

on

which

an

enforceable

right

to

acquire

such

security

is

obtained

and

is

presented

along

with

related

cost

in

the

security

description.

The

fund

may

have

registration

rights

for

certain

restricted

securities.

Any

costs

related

to

such

registration

are

generally

borne

by

the

issuer.

The

aggregate

value

of

restricted

securities

(excluding

144A

holdings)

at

period

end

amounts

to

$1,992

and

represents

0.0%

of

net

assets.

(9)

Security

has

the

ability

to

pay

in-kind

or

pay

in

cash.

When

applicable,

separate

rates

of

such

payments

are

disclosed.

(10)

Security

is

a

fix-to-float

security,

which

carries

a

fixed

coupon

until

a

certain

date,

upon

which

it

switches

to

a

floating

rate.

Reference

rate

and

spread

are

provided

if

the

rate

is

currently

floating.

(11)

Seven-day

yield

T.

ROWE

PRICE

Floating

Rate

Fund

38

.

.

.

.

.

.

.

.

.

.

(12)

Affiliated

Companies

1M

CAD

CDOR

One

month

CAD

CDOR

(Canadian

Dollar

offered

rate)

1M

TSFR

One

month

term

SOFR

(Secured

overnight

financing

rate)

1M

USD

LIBOR

One

month

USD

LIBOR

(London

interbank

offered

rate)

3M

EURIBOR

Three

month

EURIBOR

(Euro

interbank

offered

rate)

3M

TSFR

Three

month

term

SOFR

(Secured

overnight

financing

rate)

3M

USD

LIBOR

Three

month

USD

LIBOR

(London

interbank

offered

rate)

6M

USD

LIBOR

Six

month

USD

LIBOR

(London

interbank

offered

rate)

CAD

Canadian

Dollar

EUR

Euro

FRN

Floating

Rate

Note

GBP

British

Pound

PIK

Payment-in-kind

SOFR

Secured

overnight

financing

rate

SOFRINDX

SOFR

(Secured

overnight

financing

rate)

Index

USD

U.S.

Dollar

VR

Variable

Rate;

rate

shown

is

effective

rate

at

period-end.

The

rates

for

certain

variable

rate

securities

are

not

based

on

a

published

reference

rate

and

spread

but

are

determined

by

the

issuer

or

agent

and

based

on

current

market

conditions.

T.

ROWE

PRICE

Floating

Rate

Fund

39

(Amounts

in

000s)

SWAPS

0.0%

Description

Notional

Amount

$

Value

Upfront

Payments/

$

(Receipts)

Unrealized

$

Gain/(Loss)

BILATERAL

SWAPS

0.0%

Total

Return

Swaps

0.0%

JPMorgan

Chase,

Receive

Underlying

Reference:

iBoxx

USD

Liquid

Leveraged

Loans

Total

Return

Index

Quarterly,

Pay

Variable

3.218%

(SOFR

+

0.00%)

at

Maturity,

12/20/22

12,225

59

—

59‌

JPMorgan

Chase,

Receive

Underlying

Reference:

iBoxx

USD

Liquid

Leveraged

Loans

Total

Return

Index

Quarterly,

Pay

Variable

3.218%

(SOFR

+

0.00%)

at

Maturity,

3/20/23

17,550

452

—

452‌

JPMorgan

Chase,

Receive

Underlying

Reference:

iBoxx

USD

Liquid

Leveraged

Loans

Total

Return

Index

Quarterly,

Pay

Variable

3.218%

(SOFR

+

0.00%)

at

Maturity,

6/20/23

12,225

181

—

181‌

Morgan

Stanley,

Receive

Underlying

Reference:

iBoxx

USD

Liquid

Leveraged

Loans

Total

Return

Index

Quarterly,

Pay

Variable

3.218%

(SOFR

+

0.00%)

at

Maturity,

3/20/23

10,750

242

—

242‌

Total

Bilateral

Total

Return

Swaps

—

934‌

Total

Bilateral

Swaps

—

934‌

T.

ROWE

PRICE

Floating

Rate

Fund

40

(Amounts

in

000s)

FORWARD

CURRENCY

EXCHANGE

CONTRACTS

Counterparty

Settlement

Receive

Deliver

Unrealized

Gain/(Loss)

Bank

of

America

1/20/23

CAD

1,709‌

USD

1,242‌

$

30‌

Barclays

Bank

1/20/23

USD

3,289‌

GBP

2,912‌

(227‌)

Citibank

2/24/23

EUR

7,184‌

USD

7,509‌

16‌

Morgan

Stanley

2/24/23

USD

15,805‌

EUR

15,167‌

(82‌)

State

Street

1/20/23

USD

16,101‌

CAD

22,052‌

(306‌)

State

Street

2/24/23

USD

32,062‌

EUR

30,794‌

(195‌)

Net

unrealized

gain

(loss)

on

open

forward

currency

exchange

contracts

$

(764‌)

T.

ROWE

PRICE

Floating

Rate

Fund

41

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

AFFILIATED

COMPANIES

($000s)

The

fund

may

invest

in

certain

securities

that

are

considered

affiliated

companies.

As

defined

by

the

1940

Act,

an

affiliated

company

is

one

in

which

the

fund

owns

5%

or

more

of

the

outstanding

voting

securities,

or

a

company

that

is

under

common

ownership

or

control.

The

following

securities

were

considered

affiliated

companies

for

all

or

some

portion

of

the

six

months

ended

November

30,

2022.

Net

realized

gain

(loss),

investment

income,

change

in

net

unrealized

gain/loss,

and

purchase

and

sales

cost

reflect

all

activity

for

the

period

then

ended.

Affiliate

Net

Realized

Gain

(Loss)

Change

in

Net

Unrealized

Gain/Loss

Investment

Income

T.

Rowe

Price

Government

Reserve

Fund,

3.86%

$

—‌#

$

—‌

$

3,287‌+

Supplementary

Investment

Schedule

Affiliate

Value

05/31/22

Purchase

Cost

Sales

Cost

Value

11/30/22

T.

Rowe

Price

Government

Reserve

Fund,

3.86%

$

413,220‌

 ¤

  ¤

$

281,122‌^

#

Capital

gain

distributions

from

underlying

Price

funds

represented

$0

of

the

net

realized

gain

(loss).

+

Investment

income

comprised

$3,287

of

dividend

income

and

$0

of

interest

income.

¤

Purchase

and

sale

information

not

shown

for

cash

management

funds.

^

The

cost

basis

of

investments

in

affiliated

companies

was

$281,122.

T.

ROWE

PRICE

Floating

Rate

Fund

November

30,

2022

(Unaudited)

Statement

of

Assets

and

Liabilities

42

($000s,

except

shares

and

per

share

amounts)

Assets

Investments

in

securities,

at

value

(cost

$4,349,462)

$

4,172,183‌

Receivable

for

investment

securities

sold

89,686‌

Interest

receivable

20,030‌

Foreign

currency

(cost

$7,691)

7,963‌

Receivable

for

shares

sold

5,669‌

Cash

2,087‌

Unrealized

gain

on

bilateral

swaps

934‌

Due

from

affiliates

751‌

Restricted

cash

pledged

for

bilateral

derivatives

200‌

Unrealized

gain

on

forward

currency

exchange

contracts

46‌

Other

assets

172‌

Total

assets

4,299,721‌

Liabilities

Payable

for

investment

securities

purchased

121,387‌

Payable

for

shares

redeemed

10,113‌

Investment

management

fees

payable

2,005‌

Unrealized

loss

on

forward

currency

exchange

contracts

810‌

Payable

to

directors

2‌

Other

liabilities

10,388‌

Total

liabilities

144,705‌

NET

ASSETS

$

4,155,016‌

T.

ROWE

PRICE

Floating

Rate

Fund

November

30,

2022

(Unaudited)

Statement

of

Assets

and

Liabilities

43

($000s,

except

shares

and

per

share

amounts)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Net

Assets

Consist

of:

Total

distributable

earnings

(loss)

$

(

405,975‌

)

Paid-in

capital

applicable

to

459,941,405

shares

of

$0.0001

par

value

capital

stock

outstanding;

2,000,000,000

shares

authorized

4,560,991‌

NET

ASSETS

$

4,155,016‌

NET

ASSET

VALUE

PER

SHARE

Investor

Class

($1,644,193,749

/

182,029,327

shares

outstanding)

$

9.03‌

Advisor

Class

($18,692,219

/

2,064,878

shares

outstanding)

$

9.05‌

I

Class

($906,924,497

/

100,353,146

shares

outstanding)

$

9.04‌

Z

Class

($1,585,205,726

/

175,494,054

shares

outstanding)

$

9.03‌

T.

ROWE

PRICE

Floating

Rate

Fund

(Unaudited)

Statement

of

Operations

44

($000s)

6

Months

Ended

11/30/22

Investment

Income

(Loss)

Income

    Interest

$

147,901‌

Dividend

3,498‌

Total

income

151,399‌

Expenses

Investment

management

13,597‌

Shareholder

servicing

Investor

Class

$

1,364‌

Advisor

Class

18‌

I

Class

51‌

1,433‌

Rule

12b-1

fees

Advisor

Class

26‌

Prospectus

and

shareholder

reports

Investor

Class

54‌

I

Class

13‌

Z

Class

1‌

68‌

Interest

and

borrowing-related

310‌

Registration

189‌

Custody

and

accounting

133‌

Legal

and

audit

40‌

Directors

6‌

Miscellaneous

131‌

Waived

/

paid

by

Price

Associates

(

5,498‌

)

Total

expenses

10,435‌

Net

investment

income

140,964‌

T.

ROWE

PRICE

Floating

Rate

Fund

(Unaudited)

Statement

of

Operations

45

($000s)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

6

Months

Ended

11/30/22

Realized

and

Unrealized

Gain

/

Loss

–

Net

realized

gain

(loss)

Securities

(

94,504‌

)

Swaps

(

2,137‌

)

Forward

currency

exchange

contracts

3,790‌

Foreign

currency

transactions

130‌

Net

realized

loss

(

92,721‌

)

Change

in

net

unrealized

gain

/

loss

Securities

13,426‌

Swaps

2,958‌

Forward

currency

exchange

contracts

634‌

Other

assets

and

liabilities

denominated

in

foreign

currencies

356‌

Change

in

net

unrealized

gain

/

loss

17,374‌

Net

realized

and

unrealized

gain

/

loss

(

75,347‌

)

INCREASE

IN

NET

ASSETS

FROM

OPERATIONS

$

65,617‌

T.

ROWE

PRICE

Floating

Rate

Fund

(Unaudited)

Statement

of

Changes

in

Net

Assets

46

($000s)

6

Months

Ended

11/30/22

Year

Ended

5/31/22

Increase

(Decrease)

in

Net

Assets

Operations

Net

investment

income

$

140,964‌

$

182,231‌

Net

realized

gain

(loss)

(

92,721‌

)

6,069‌

Change

in

net

unrealized

gain

/

loss

17,374‌

(

241,922‌

)

Increase

(decrease)

in

net

assets

from

operations

65,617‌

(

53,622‌

)

Distributions

to

shareholders

Net

earnings

Investor

Class

(

50,828‌

)

(

57,110‌

)

Advisor

Class

(

575‌

)

(

802‌

)

I

Class

(

29,517‌

)

(

22,631‌

)

Z

Class

(

58,450‌

)

(

101,488‌

)

Decrease

in

net

assets

from

distributions

(

139,370‌

)

(

182,031‌

)

Capital

share

transactions

*

Shares

sold

Investor

Class

419,858‌

2,011,815‌

Advisor

Class

1,221‌

15,734‌

I

Class

194,773‌

1,111,606‌

Z

Class

55,859‌

482,838‌

Distributions

reinvested

Investor

Class

47,086‌

53,340‌

Advisor

Class

566‌

800‌

I

Class

28,222‌

21,681‌

Z

Class

58,450‌

101,486‌

Shares

redeemed

Investor

Class

(

745,188‌

)

(

1,066,525‌

)

Advisor

Class

(

4,585‌

)

(

17,159‌

)

I

Class

(

398,834‌

)

(

245,522‌

)

Z

Class

(

782,253‌

)

(

315,547‌

)

Increase

(decrease)

in

net

assets

from

capital

share

transactions

(

1,124,825‌

)

2,154,547‌

T.

ROWE

PRICE

Floating

Rate

Fund

(Unaudited)

Statement

of

Changes

in

Net

Assets

47

($000s)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

6

Months

Ended

11/30/22

Year

Ended

5/31/22

Net

Assets

Increase

(decrease)

during

period

(

1,198,578‌

)

1,918,894‌

Beginning

of

period

5,353,594‌

3,434,700‌

End

of

period

$

4,155,016‌

$

5,353,594‌

*Share

information

(000s)

Shares

sold

Investor

Class

46,354‌

211,963‌

Advisor

Class

134‌

1,654‌

I

Class

21,478‌

117,138‌

Z

Class

6,215‌

50,615‌

Distributions

reinvested

Investor

Class

5,224‌

5,635‌

Advisor

Class

63‌

84‌

I

Class

3,129‌

2,298‌

Z

Class

6,485‌

10,703‌

Shares

redeemed

Investor

Class

(

82,460‌

)

(

113,109‌

)

Advisor

Class

(

506‌

)

(

1,797‌

)

I

Class

(

44,083‌

)

(

26,223‌

)

Z

Class

(

86,759‌

)

(

33,191‌

)

Increase

(decrease)

in

shares

outstanding

(

124,726‌

)

225,770‌

T.

ROWE

PRICE

Floating

Rate

Fund

Unaudited

NOTES

TO

FINANCIAL

STATEMENTS

48

T.

Rowe

Price

Floating

Rate

Fund,

Inc.

(the

fund) is

registered

under

the

Investment

Company

Act

of

1940

(the

1940

Act)

as a

diversified,

open-end

management

investment

company. The

fund

seeks

high

current

income

and,

secondarily,

capital

appreciation.

The

fund

has

four classes

of

shares:

the

Floating

Rate

Fund

(Investor

Class),

the

Floating

Rate

Fund–Advisor

Class

(Advisor

Class),

the

Floating

Rate

Fund–I

Class

(I

Class),

and

the

Floating

Rate

Fund–Z

Class

(Z

Class).

Advisor

Class

shares

are

sold

only

through

various

brokers

and

other

financial

intermediaries.

I

Class

shares

require

a

$500,000

initial

investment

minimum,

although

the

minimum

generally

is

waived

or

reduced

for

financial

intermediaries,

eligible

retirement

plans,

and

certain

other

accounts.

Prior

to

November

15,

2021,

the

initial

investment

minimum

was

$1

million

and

was

generally

waived

for

financial

intermediaries,

eligible

retirement

plans,

and

other

certain

accounts.

As

a

result

of

the

reduction

in

the

I

Class

minimum,

certain

assets

transferred

from

the

Investor

Class

to

the

I

Class.

This

transfer

of

shares

from

Investor

Class

to

I

Class

is

reflected

in

the

Statement

of

Changes

in

Net

Assets

within

the

Capital

shares

transactions

as

Shares

redeemed

and

Shares

sold,

respectively.

The

Z

Class

is

only

available

to

funds

advised

by

T.

Rowe

Price

Associates,

Inc.

and

its

affiliates

and

other

clients

that

are

subject

to

a

contractual

fee

for

investment

management

services.

The

Advisor

Class

operates

under

a

Board-approved

Rule

12b-1

plan

pursuant

to

which

the

class

compensates

financial

intermediaries

for

distribution,

shareholder

servicing,

and/

or

certain

administrative

services;

the

Investor,

I

and

Z

Classes

do

not

pay

Rule

12b-1

fees. Each

class

has

exclusive

voting

rights

on

matters

related

solely

to

that

class;

separate

voting

rights

on

matters

that

relate

to

all

classes;

and,

in

all

other

respects,

the

same

rights

and

obligations

as

the

other

classes.

NOTE

1

-

SIGNIFICANT

ACCOUNTING

POLICIES 

Basis

of

Preparation

 The fund

is

an

investment

company

and

follows

accounting

and

reporting

guidance

in

the

Financial

Accounting

Standards

Board

(FASB)

Accounting

Standards

Codification

Topic

946

(ASC

946).

The

accompanying

financial

statements

were

prepared

in

accordance

with

accounting

principles

generally

accepted

in

the

United

States

of

America

(GAAP),

including,

but

not

limited

to,

ASC

946.

GAAP

requires

the

use

of

estimates

made

by

management.

Management

believes

that

estimates

and

valuations

are

appropriate;

however,

actual

results

may

differ

from

those

estimates,

and

the

valuations

reflected

in

the

accompanying

financial

statements

may

differ

from

the

value

ultimately

realized

upon

sale

or

maturity.

T.

ROWE

PRICE

Floating

Rate

Fund

49

Investment

Transactions,

Investment

Income,

and

Distributions

Investment

transactions

are

accounted

for

on

the

trade

date

basis.

Income

and

expenses

are

recorded

on

the

accrual

basis.

Realized

gains

and

losses

are

reported

on

the

identified

cost

basis.

Premiums

and

discounts

on

debt

securities

are

amortized

for

financial

reporting

purposes.

Income

tax-related

interest

and

penalties,

if

incurred,

are

recorded

as

income

tax

expense.

Dividends

received

from

mutual

fund

investments

are

reflected

as

dividend

income;

capital

gain

distributions

are

reflected

as

realized

gain/loss.

Dividend

income

and

capital

gain

distributions

are

recorded

on

the

ex-dividend

date.

Non-cash

dividends,

if

any,

are

recorded

at

the

fair

market

value

of

the

asset

received.

Proceeds

from

litigation

payments,

if

any,

are

included

in

either

net

realized

gain

(loss)

or

change

in

net

unrealized

gain/loss

from

securities.

Distributions

to

shareholders

are

recorded

on

the

ex-dividend

date.

Income

distributions,

if

any, are

declared

by

each

class daily

and

paid

monthly.

A

capital

gain

distribution,

if

any, may

also

be

declared

and

paid

by

the

fund

annually.

Currency

Translation

 Assets,

including

investments,

and

liabilities

denominated

in

foreign

currencies

are

translated

into

U.S.

dollar

values

each

day

at

the

prevailing

exchange

rate,

using

the

mean

of

the

bid

and

asked

prices

of

such

currencies

against

U.S.

dollars

as

provided

by

an

outside

pricing

service.

Purchases

and

sales

of

securities,

income,

and

expenses

are

translated

into

U.S.

dollars

at

the

prevailing

exchange

rate

on

the

respective

date

of

such

transaction.

The

effect

of

changes

in

foreign

currency

exchange

rates

on

realized

and

unrealized

security

gains

and

losses

is

not

bifurcated

from

the

portion

attributable

to

changes

in

market

prices.

Class

Accounting

 Shareholder

servicing,

prospectus,

and

shareholder

report

expenses

incurred

by

each

class

are

charged

directly

to

the

class

to

which

they

relate.

Expenses

common

to all classes

and

investment

income

are

allocated

to

the

classes

based

upon

the

relative

daily

net

assets

of

each

class’s

settled

shares;

realized

and

unrealized

gains

and

losses

are

allocated

based

upon

the

relative

daily

net

assets

of

each

class’s

outstanding

shares.

The

Advisor

Class

pays

Rule

12b-1

fees,

in

an

amount

not

exceeding

0.25%

of

the

class’s

average

daily

net

assets.

Capital

Transactions

 Each

investor’s

interest

in

the

net

assets

of the

fund

is

represented

by

fund

shares. The

fund’s

net

asset

value

(NAV)

per

share

is

computed

at

the

close

of

the

New

York

Stock

Exchange

(NYSE),

normally

4

p.m.

ET,

each

day

the

NYSE

is

open

for

business.

However,

the

NAV

per

share

may

be

calculated

at

a

time

other

than

the

normal

close

of

the

NYSE

if

trading

on

the

NYSE

is

restricted,

if

the

NYSE

closes

earlier,

or

as

may

be

permitted

by

the

SEC.

Purchases

and

redemptions

of

fund

shares

are

transacted

at

the

next-computed

NAV

per

share,

after

receipt

of

the

transaction

order

by

T.

Rowe

Price

Associates,

Inc.,

or

its

agents.

T.

ROWE

PRICE

Floating

Rate

Fund

50

New

Accounting

Guidance

 In

June

2022,

the

FASB

issued

Accounting

Standards

Update

(ASU),

ASU

2022-03,

Fair

Value

Measurement

(Topic

820)

–

Fair

Value

Measurement

of

Equity

Securities

Subject

to

Contractual

Sale

Restrictions,

which

clarifies

that

a

contractual

restriction

on

the

sale

of

an

equity

security

is

not

considered

part

of

the

unit

of

account

of

the

equity

security

and,

therefore,

is

not

considered

in

measuring

fair

value.

The

amendments

under

this

ASU

are

effective

for

fiscal

years

beginning

after

December

15,

2023;

however,

early

adoption

is

permitted.

Management

expects

that

the

adoption

of

the

guidance

will

not

have

a

material

impact

on

the fund's

financial  statements.

The

FASB

issued

Accounting

Standards

Update

(ASU),

ASU

2020–04,

Reference

Rate

Reform

(Topic

848) –

Facilitation

of

the

Effects

of

Reference

Rate

Reform

on

Financial

Reporting

in

March

2020

and

ASU

2021-01

in

January

2021

which

provided

further

amendments

and

clarifications

to

Topic

848.

These

ASUs provide

optional,

temporary

relief

with

respect

to

the

financial

reporting

of

contracts

subject

to

certain

types

of

modifications

due

to

the

planned

discontinuation

of

the

London

Interbank

Offered

Rate

(LIBOR),

and

other

interbank-offered

based

reference

rates,

through December

31,

2022.

Management

intends

to

rely

upon

the

relief

provided

under

Topic

848,

which

is

not

expected to

have

a

material

impact

on

the fund's

financial  statements.

Indemnification

 In

the

normal

course

of

business, the

fund

may

provide

indemnification

in

connection

with

its

officers

and

directors,

service

providers,

and/or

private

company

investments. The

fund’s

maximum

exposure

under

these

arrangements

is

unknown;

however,

the

risk

of

material

loss

is

currently

considered

to

be

remote.

NOTE

2

-

VALUATION 

Fair

Value

  The

fund’s

financial

instruments

are

valued

at

the

close

of

the

NYSE

and

are

reported

at

fair

value,

which

GAAP

defines

as

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

at

the

measurement

date. The fund’s

Board

of

Directors

(the

Board)

has

designated

T.

Rowe

Price

Associates,

Inc.

as

the

fund’s

valuation

designee

(Valuation

Designee).

Subject

to

oversight

by

the

Board,

the

Valuation

Designee

performs

the

following

functions

in

performing

fair

value

determinations:

assesses

and

manages

valuation

risks;

establishes

and

applies

fair

value

methodologies;

tests

fair

value

methodologies;

and

evaluates

pricing

vendors

and

pricing

agents.

The

duties

and

responsibilities

of

the

Valuation

Designee

are

performed

by

its

Valuation

Committee. The

Valuation

Designee provides

periodic

reporting

to

the

Board

on

valuation

matters.

T.

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51

Various

valuation

techniques

and

inputs

are

used

to

determine

the

fair

value

of

financial

instruments.

GAAP

establishes

the

following

fair

value

hierarchy

that

categorizes

the

inputs

used

to

measure

fair

value:

Level

1

–

quoted

prices

(unadjusted)

in

active

markets

for

identical

financial

instruments

that

the

fund

can

access

at

the

reporting

date

Level

2

–

inputs

other

than

Level

1

quoted

prices

that

are

observable,

either

directly

or

indirectly

(including,

but

not

limited

to,

quoted

prices

for

similar

financial

instruments

in

active

markets,

quoted

prices

for

identical

or

similar

financial

instruments

in

inactive

markets,

interest

rates

and

yield

curves,

implied

volatilities,

and

credit

spreads)

Level

3

–

unobservable

inputs

(including

the Valuation

Designee’s assumptions

in

determining

fair

value)

Observable

inputs

are

developed

using

market

data,

such

as

publicly

available

information

about

actual

events

or

transactions,

and

reflect

the

assumptions

that

market

participants

would

use

to

price

the

financial

instrument.

Unobservable

inputs

are

those

for

which

market

data

are

not

available

and

are

developed

using

the

best

information

available

about

the

assumptions

that

market

participants

would

use

to

price

the

financial

instrument.

GAAP

requires

valuation

techniques

to

maximize

the

use

of

relevant

observable

inputs

and

minimize

the

use

of

unobservable

inputs.

When

multiple

inputs

are

used

to

derive

fair

value,

the

financial

instrument

is

assigned

to

the

level

within

the

fair

value

hierarchy

based

on

the

lowest-level

input

that

is

significant

to

the

fair

value

of

the

financial

instrument.

Input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level

but

rather

the

degree

of

judgment

used

in

determining

those

values.

Valuation

Techniques 

Debt

securities

generally

are

traded

in

the over-the-counter

(OTC)

market

and

are

valued

at

prices

furnished

by

independent

pricing

services

or

by

broker

dealers

who

make

markets

in

such

securities.

When

valuing

securities,

the

independent

pricing

services

consider

the

yield

or

price

of

bonds

of

comparable

quality,

coupon,

maturity,

and

type,

as

well

as

prices

quoted

by

dealers

who

make

markets

in

such

securities.   

Equity

securities,

including

exchange-traded

funds, listed

or

regularly

traded

on

a

securities

exchange

or

in

the

over-the-counter

(OTC)

market

are

valued

at

the

last

quoted

sale

price

or,

for

certain

markets,

the

official

closing

price

at

the

time

the

valuations

are

made.

OTC

Bulletin

Board

securities

are

valued

at

the

mean

of

the

closing

bid

and

asked

prices.

A

security

that

is

listed

or

traded

on

more

than

one

exchange

is

T.

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Fund

52

valued

at

the

quotation

on

the

exchange

determined

to

be

the

primary

market

for

such

security.

Listed

securities

not

traded

on

a

particular

day

are

valued

at

the

mean

of

the

closing

bid

and

asked

prices

for

domestic

securities.

Investments

in

mutual

funds

are

valued

at

the

mutual

fund’s

closing

NAV

per

share

on

the

day

of

valuation.

Forward

currency

exchange

contracts

are

valued

using

the

prevailing

forward

exchange

rate.

Swaps

are

valued

at

prices

furnished

by

an

independent

pricing

service

or

independent

swap

dealers.

Assets

and

liabilities

other

than

financial

instruments,

including

short-term

receivables

and

payables,

are

carried

at

cost,

or

estimated

realizable

value,

if

less,

which

approximates

fair

value. 

Investments

for

which

market

quotations are

not

readily

available

or

deemed

unreliable

are

valued

at

fair

value

as

determined

in

good

faith

by

the

Valuation

Designee.

The

Valuation

Designee

has

adopted

methodologies

for

determining

the

fair

value

of

investments

for

which

market

quotations

are

not

readily

available

or

deemed

unreliable,

including

the

use

of

other

pricing

sources.

Factors

used

in

determining

fair

value

vary

by

type

of

investment

and

may

include

market

or

investment

specific

considerations.

The

Valuation

Designee typically

will

afford

greatest

weight

to

actual

prices

in

arm’s

length

transactions,

to

the

extent

they

represent

orderly

transactions

between

market

participants,

transaction

information

can

be

reliably

obtained,

and

prices

are

deemed

representative

of

fair

value.

However,

the

Valuation

Designee may

also

consider

other

valuation

methods

such

as

market-based

valuation

multiples;

a

discount

or

premium

from

market

value

of

a

similar,

freely

traded

security

of

the

same

issuer;

discounted

cash

flows;

yield

to

maturity;

or

some

combination.

Fair

value

determinations

are

reviewed

on

a

regular

basis.

Because

any

fair

value

determination

involves

a

significant

amount

of

judgment,

there

is

a

degree

of

subjectivity

inherent

in

such

pricing

decisions. Fair

value

prices

determined

by

the

Valuation

Designee could

differ

from

those

of

other

market

participants,

and

it

is

possible

that

the

fair

value

determined

for

a

security

may

be

materially

different

from

the

value

that

could

be

realized

upon

the

sale

of

that

security.

T.

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Fund

53

Valuation

Inputs

  The

following

table

summarizes

the

fund’s

financial

instruments,

based

on

the

inputs

used

to

determine

their

fair

values

on

November

30,

2022

(for

further

detail

by

category,

please

refer

to

the

accompanying

Portfolio

of

Investments):

Following

is

a

reconciliation

of

the

fund’s

Level

3

holdings

for

the

six

months ended

November

30,

2022.

Gain

(loss)

reflects

both

realized

and

change

in

unrealized

gain/

loss

on

Level

3

holdings

during

the

period,

if

any,

and

is

included

on

the

accompanying

Statement

of

Operations.

The

change

in

unrealized

gain/loss

on

Level

3

instruments

held

at

November

30,

2022,

totaled $(1,788,000) for

the

six

months ended

November

30,

2022.

During

the

six

months,

transfers

into

Level

3

resulted

from

a

lack

of

observable

market

data

for

the

security

and

transfers

out

of

Level

3

were

because

observable

market

data

became

available

for

the

security. 

($000s)

Level

1

Level

2

Level

3

Total

Value

Assets

Corporate

Bonds

$

—‌

$

303,078‌

$

—‌

$

303,078‌

Bank

Loans

—‌

3,420,425‌

159,793‌

3,580,218‌

Convertible

Preferred

Stocks

—‌

7,765‌

—‌

7,765‌

Short-Term

Investments

281,122‌

—‌

—‌

281,122‌

Total

Securities

281,122‌

3,731,268‌

159,793‌

4,172,183‌

Swaps

—‌

934‌

—‌

934‌

Forward

Currency

Exchange

Contracts

—‌

46‌

—‌

46‌

Total

$

281,122‌

$

3,732,248‌

$

159,793‌

$

4,173,163‌

Liabilities

Forward

Currency

Exchange

Contracts

$

—‌

$

810‌

$

—‌

$

810‌

T.

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54

The

fund’s

Level

3

investments

have

been

valued

using

unadjusted

inputs

that

have

not

been

internally

developed

by

the

fund,

including

third-party

transactions

and

indicative

broker

quotations.

As

a

result,

there

were

no

unobservable

inputs

that

have

been

internally

developed

by

the

fund

in

determining

the

fair

value

of

investments

as

of

November

30,

2022.

NOTE

3

-

DERIVATIVE

INSTRUMENTS 

During

the

six

months ended

November

30,

2022,

the

fund

invested

in

derivative

instruments.

As

defined

by

GAAP,

a

derivative

is

a

financial

instrument

whose

value

is

derived

from

an

underlying

security

price,

foreign

exchange

rate,

interest

rate,

index

of

prices

or

rates,

or

other

variable;

it

requires

little

or

no

initial

investment

and

permits

or

requires

net

settlement.

The

fund

invests

in

derivatives

only

if

the

expected

risks

and

rewards

are

consistent

with

its

investment

objectives,

policies,

and

overall

risk

profile,

as

described

in

its

prospectus

and

Statement

of

Additional

Information.

The

fund

may

use

derivatives

for

a

variety

of

purposes

and

may

use

them

to

establish

both

long

and

short

positions

within

the

fund’s

portfolio.

Potential

uses

include

to

hedge

against

declines

in

principal

value,

increase

yield,

invest

in

an

asset

with

greater

efficiency

and

at

a

lower

cost

than

is

possible

through

direct

investment,

to

enhance

return,

or

to

adjust

portfolio

duration

and

credit

exposure.

The

risks

associated

with

the

use

of

derivatives

are

different

from,

and

potentially

much

greater

than,

the

risks

associated

with

investing

directly

in

the

instruments

on

which

the

derivatives

are

based.

The

fund

values

its

derivatives

at

fair

value

and

recognizes

changes

in

fair

value

currently

in

its

results

of

operations.

Accordingly,

the

fund

does

not

follow

hedge

accounting,

even

for

derivatives

employed

as

economic

hedges.

Generally,

the

fund

accounts

for

its

derivatives

on

a

gross

basis.

It

does

not

offset

the

fair

value

of

derivative

liabilities

against

the

fair

value

of

derivative

assets

on

its

financial

statements,

nor

does

it

offset

the

fair

value

of

derivative

instruments

against

the

right

to

reclaim

or

($000s)

Beginning

Balance

5/31/22

Gain

(Loss)

During

Period

Total

Purchases

Total

Sales

Transfer

Into

Level

3

Transfer

Out

of

Level

3

Ending

Balance

11/30/22

Investment

in

Securities

Bank

Loans

$

205,592‌

$

(4,497‌)

$

39,931‌

$

(58,400‌)

$

58,292‌

$

(81,125‌)

$

159,793‌

T.

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55

obligation

to

return

collateral.

The

following

table

summarizes

the

fair

value

of

the

fund’s

derivative

instruments

held

as

of

November

30,

2022,

and

the

related

location

on

the

accompanying

Statement

of

Assets

and

Liabilities,

presented

by

primary

underlying

risk

exposure:

Additionally,

the

amount

of

gains

and

losses

on

derivative

instruments

recognized

in

fund

earnings

during

the

six

months ended

November

30,

2022,

and

the

related

location

on

the

accompanying

Statement

of

Operations

is

summarized

in

the

following

table

by

primary

underlying

risk

exposure: 

($000s)

Location

on

Statement

of

Assets

and

Liabilities

Fair

Value

Assets

Foreign

exchange

derivatives

Forwards

$

46‌

Credit

derivatives

Bilateral

Swaps

934‌

Total

$

980‌

Liabilities

Foreign

exchange

derivatives

Forwards

$

810‌

Total

$

810‌

($000s)                                              

Location

of

Gain

(Loss)

on

Statement

of

Operations

Forward

Currency

Exchange

Contracts

Swaps

Total

Realized

Gain

(Loss)

Foreign

exchange

derivatives

$

3,790‌

$

—‌

$

3,790‌

Credit

derivatives

—‌

(2,137‌)

(2,137‌)

Total

$

3,790‌

$

(2,137‌)

$

1,653‌

T.

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56

Counterparty

Risk

and

Collateral

 The

fund

invests

in

derivatives,

such

as

bilateral

swaps,

forward

currency

exchange

contracts,

and/or

OTC

options,

that

are

transacted

and

settle

directly

with

a

counterparty

(bilateral

derivatives),

and

thereby

may

expose

the

fund

to

counterparty

risk.

To

mitigate

this

risk,

the

fund

has

entered

into

master

netting

arrangements

(MNAs)

with

certain

counterparties

that

permit

net

settlement

under

specified

conditions

and,

for

certain

counterparties,

also

require

the

exchange

of

collateral

to

cover

mark-to-market

exposure.

MNAs

may

be

in

the

form

of

International

Swaps

and

Derivatives

Association

master

agreements

(ISDAs)

or

foreign

exchange

letter

agreements

(FX

letters).

MNAs

govern

the

ability

to

offset

amounts

the

fund

owes

a

counterparty

against

amounts

the

counterparty

owes

the

fund

(net

settlement).

Both

ISDAs

and

FX

letters

generally

allow

termination

of

transactions

and

net

settlement

upon

the

occurrence

of

contractually

specified

events,

such

as

failure

to

pay

or

bankruptcy.

In

addition,

ISDAs

specify

other

events,

the

occurrence

of

which

would

allow

one

of

the

parties

to

terminate.

For

example,

a

downgrade

in

credit

rating

of

a

counterparty

below

a

specified

rating

would

allow

the

fund

to

terminate,

while

a

decline

in

the

fund’s

net

assets

of

more

than

a

specified

percentage

would

allow

the

counterparty

to

terminate.

Upon

termination,

all

transactions

with

that

counterparty

would

be

liquidated

and

a

net

termination

amount

determined.

ISDAs

typically

include

collateral

agreements

whereas

FX

letters

do

not.

Collateral

requirements

are

determined

daily

based

on

the

net

aggregate

unrealized

gain

or

loss

on

all

bilateral

derivatives

with

each

counterparty,

subject

to

minimum

transfer

amounts

that

typically

range

from

$100,000

to

$250,000.

Any

additional

collateral

required

due

to

changes

in

security

values

is

typically

transferred

the

next

business

day.

($000s)                                              

Location

of

Gain

(Loss)

on

Statement

of

Operations

Forward

Currency

Exchange

Contracts

Swaps

Total

Change

in

Unrealized

Gain

(Loss)

Foreign

exchange

derivatives

$

634‌

$

—‌

$

634‌

Credit

derivatives

—‌

2,958‌

2,958‌

Total

$

634‌

$

2,958‌

$

3,592‌

T.

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57

Collateral may

be

in

the

form

of

cash

or

debt

securities

issued

by

the

U.S.

government

or

related

agencies,

although

other

securities

may

be

used

depending

on

the

terms

outlined

in

the

applicable

MNA.

Cash

posted

by

the

fund

is

reflected

as

cash

deposits

in

the

accompanying

financial

statements

and

generally

is

restricted

from

withdrawal

by

the

fund;

securities

posted

by

the

fund

are

so

noted

in

the

accompanying

Portfolio

of

Investments;

both

remain

in

the

fund’s

assets.

Collateral

pledged

by

counterparties

is

not

included

in

the

fund’s

assets

because

the

fund

does

not

obtain

effective

control

over

those

assets.

For

bilateral

derivatives,

collateral

posted

or

received

by

the

fund

is

held

in

a

segregated

account

at

the

fund’s

custodian.

While

typically

not

sold

in

the

same

manner

as

equity

or

fixed

income

securities,

OTC

and

bilateral

derivatives

may

be

unwound

with

counterparties

or

transactions

assigned

to

other

counterparties

to

allow

the

fund

to

exit

the

transaction.  This

ability

is

subject

to

the

liquidity

of

underlying

positions. As

of

November

30,

2022,

cash of

$200,000

had

been

posted

by

the

fund

to

counterparties

for

bilateral

derivatives. As

of

November

30,

2022,

collateral

pledged

by

counterparties

to

the

fund

for

bilateral

derivatives

consisted

of $1,388,000  cash.

Forward

Currency

Exchange

Contracts

 The

fund

is

subject

to

foreign

currency

exchange

rate

risk

in

the

normal

course

of

pursuing

its

investment

objectives.

It may use

forward

currency

exchange

contracts

(forwards)

primarily

to

protect

its

non-U.S.

dollar-

denominated

securities

from

adverse

currency

movements

or

to

increase

exposure

to

a

particular

foreign

currency,

to

shift

the

fund’s

foreign

currency

exposure

from

one

country

to

another,

or

to

enhance

the

fund’s

return.

A

forward

involves

an

obligation

to

purchase

or

sell

a

fixed

amount

of

a

specific

currency

on

a

future

date

at

a

price

set

at

the

time

of

the

contract.

Although

certain

forwards

may

be

settled

by

exchanging

only

the

net

gain

or

loss

on

the

contract,

most

forwards

are

settled

with

the

exchange

of

the

underlying

currencies

in

accordance

with

the

specified

terms.

Forwards

are

valued

at

the

unrealized

gain

or

loss

on

the

contract,

which

reflects

the

net

amount

the

fund

either

is

entitled

to

receive

or

obligated

to

deliver,

as

measured

by

the

difference

between

the

forward

exchange

rates

at

the

date

of

entry

into

the

contract

and

the

forward

rates

at

the

reporting

date.

Appreciated

forwards

are

reflected

as

assets

and

depreciated

forwards

are

reflected

as

liabilities

on

the

accompanying

Statement

of

Assets

and

Liabilities.

Risks

related

to

the

use

of

forwards

include

the

possible

failure

of

counterparties

to

meet

the

terms

of

the

agreements;

that

anticipated

currency

movements

will

not

occur,

thereby

reducing

the

fund’s

total

return;

and

the

potential

for

losses

in

excess

of

the

fund’s

initial

investment.

During

the

six

months ended

November

30,

2022,

the

volume

of

the

fund’s

activity

in

forwards,

based

on

underlying

notional

amounts,

was

generally

between

1%

and

2%

of

net

assets.

T.

ROWE

PRICE

Floating

Rate

Fund

58

Swaps

 The

fund

is

subject

to

credit

risk in

the

normal

course

of

pursuing

its

investment

objectives

and

uses

swap

contracts

to

help

manage

such

risk.

The

fund

may

use

swaps

in

an

effort

to

manage

both

long

and

short

exposure

to

changes

in

interest

rates,

inflation

rates,

and

credit

quality;

to

adjust

overall

exposure

to

certain

markets;

to

enhance

total

return

or

protect

the

value

of

portfolio

securities;

to

serve

as

a

cash

management

tool;

or

to

adjust

portfolio

duration

and

credit

exposure.

Swap

agreements

can

be

settled

either

directly

with

the

counterparty

(bilateral

swap)

or

through

a

central

clearinghouse

(centrally

cleared

swap).

Fluctuations

in

the

fair

value

of

a

contract

are

reflected

in

unrealized

gain

or

loss

and

are

reclassified

to

realized

gain

or

loss

upon

contract

termination

or

cash

settlement.

Net

periodic

receipts

or

payments

required

by

a

contract

increase

or

decrease,

respectively,

the

value

of

the

contract

until

the

contractual

payment

date,

at

which

time

such

amounts

are

reclassified

from

unrealized

to

realized

gain

or

loss.

For

bilateral

swaps,

cash

payments

are

made

or

received

by

the

fund

on

a

periodic

basis

in

accordance

with

contract

terms;

unrealized

gain

on

contracts

and

premiums

paid

are

reflected

as

assets

and

unrealized

loss

on

contracts

and

premiums

received

are

reflected

as

liabilities

on

the

accompanying

Statement

of

Assets

and

Liabilities.

For

bilateral

swaps,

premiums

paid

or

received

are

amortized

over

the

life

of

the

swap

and

are

recognized

as

realized

gain

or

loss

in

the

Statement

of

Operations.

For

centrally

cleared

swaps,

payments

are

made

or

received

by

the

fund

each

day

to

settle

the

daily

fluctuation

in

the

value

of

the

contract

(variation

margin).

Accordingly,

the

value

of

a

centrally

cleared

swap

included

in

net

assets

is

the

unsettled

variation

margin;

net

variation

margin

receivable

is

reflected

as

an

asset

and

net

variation

margin

payable

is

reflected

as

a

liability

on

the

accompanying

Statement

of

Assets

and

Liabilities.

Credit

default

swaps

are

agreements

where

one

party

(the

protection

buyer)

agrees

to

make

periodic

payments

to

another

party

(the

protection

seller)

in

exchange

for

protection

against

specified

credit

events,

such

as

certain

defaults

and

bankruptcies

related

to

an

underlying

credit

instrument,

or

issuer

or

index

of

such

instruments.

Upon

occurrence

of

a

specified

credit

event,

the

protection

seller

is

required

to

pay

the

buyer

the

difference

between

the

notional

amount

of

the

swap

and

the

value

of

the

underlying

credit,

either

in

the

form

of

a

net

cash

settlement

or

by

paying

the

gross

notional

amount

and

accepting

delivery

of

the

relevant

underlying

credit.

For

credit

default

swaps

where

the

underlying

credit

is

an

index,

a

specified

credit

event

may

affect

all

or

individual

underlying

securities

included

in

the

index

and

will

be

settled

based

upon

the

relative

weighting

of

the

affected

underlying

security(ies)

within

the

index. Risks

related

to

the

use

of

credit

default

swaps

include

the

possible

inability

of

the

fund

to

accurately

assess

the

current

and

future

creditworthiness

of

underlying

issuers,

the

possible

failure

of

a

counterparty

to

perform

in

accordance

with

the

terms

of

the

swap

agreements,

potential

government

regulation

that

could

adversely

affect

the

fund’s

swap

investments,

and

potential

losses

in

excess

of

the

fund’s

initial

investment.

T.

ROWE

PRICE

Floating

Rate

Fund

59

Total

return

swaps

are

agreements

in

which

one

party

makes

payments

based

on

a

set

rate,

either

fixed

or

variable,

while

the

other

party

makes

payments

based

on

the

return

of

an

underlying

asset

(reference

asset),

such

as

an

index,

equity

security,

fixed

income

security

or

commodity-based

exchange-traded

fund,

which

includes

both

the

income

it

generates

and

any

change

in

its

value.

Risks

related

to

the

use

of

total

return

swaps

include

the

potential

for

unfavorable

changes

in

the

reference

asset,

the

possible

failure

of

a

counterparty

to

perform

in

accordance

with

the

terms

of

the

swap

agreements,

potential

government

regulation

that

could

adversely

affect

the

fund’s

swap

investments,

and

potential

losses

in

excess

of

the

fund’s

initial

investment. 

During

the

six

months ended

November

30,

2022,

the

volume

of

the

fund’s

activity

in

swaps,

based

on

underlying

notional

amounts,

was

generally

between

0%

and

2%

of

net

assets.

NOTE

4

-

OTHER

INVESTMENT

TRANSACTIONS 

Consistent

with

its

investment

objective,

the

fund

engages

in

the

following

practices

to

manage

exposure

to

certain

risks

and/or

to

enhance

performance.

The

investment

objective,

policies,

program,

and

risk

factors

of

the

fund

are

described

more

fully

in

the

fund’s

prospectus

and

Statement

of

Additional

Information.

Noninvestment-Grade

Debt

 The

fund

invests,

either

directly

or

through

its

investment

in

other

T.

Rowe

Price

funds,

in

noninvestment-grade

debt,

including

“high

yield”

or

“junk”

bonds

or

leveraged

loans.

Noninvestment-grade

debt

issuers

are

more

likely

to

suffer

an

adverse

change

in

financial

condition

that

would

result

in

the

inability

to

meet

a

financial

obligation.

The

noninvestment-grade

debt

market

may

experience

sudden

and

sharp

price

swings

due

to

a

variety

of

factors

that

may

decrease

the

ability

of

issuers

to

make

principal

and

interest

payments

and

adversely

affect

the

liquidity

or

value,

or

both,

of

such

securities.

Accordingly,

securities

issued

by

such

companies

carry

a

higher

risk

of

default

and

should

be

considered

speculative. 

Restricted

Securities

 The

fund

invests

in

securities

that

are

subject

to

legal

or

contractual

restrictions

on

resale.

Prompt

sale

of

such

securities

at

an

acceptable

price

may

be

difficult

and

may

involve

substantial

delays

and

additional

costs.

Bank

Loans

 The

fund

invests

in

bank

loans,

which

represent

an

interest

in

amounts

owed

by

a

borrower

to

a

syndicate

of

lenders.

Bank

loans

are

generally

noninvestment

grade

and

often

involve

borrowers

whose

financial

condition

is

highly

leveraged.

The

fund

may

invest

in

fixed

and

floating

rate

loans,

which

may

include

senior

floating

rate

loans;

secured

and

unsecured

loans,

second

lien

or

more

junior

loans;

and

bridge

loans

or

bridge

facilities.

Certain

bank

loans

may

be

revolvers

which

are

a

form

of

senior

T.

ROWE

PRICE

Floating

Rate

Fund

60

bank

debt,

where

the

borrower

can

draw

down

the

credit

of

the

revolver

when

it

needs

cash

and

repays

the

credit

when

the

borrower

has

excess

cash.

Certain

loans

may

be

“covenant-lite”

loans,

which

means

the

loans

contain

fewer

maintenance

covenants

than

other

loans

(in

some

cases,

none)

and

do

not

include

terms

which

allow

the

lender

to

monitor

the

performance

of

the

borrower

and

declare

a

default

if

certain

criteria

are

breached.

As

a

result

of

these

risks,

the

fund’s

exposure

to

losses

may

be

increased.

Bank

loans

may

be

in

the

form

of

either

assignments

or

participations.

A

loan

assignment

transfers

all

legal,

beneficial,

and

economic

rights

to

the

buyer,

and

transfer

typically

requires

consent

of

both

the

borrower

and

agent.

In

contrast,

a

loan

participation

generally

entitles

the

buyer

to

receive

the

cash

flows

from

principal,

interest,

and

any

fee

payments

on

a

portion

of

a

loan;

however,

the

seller

continues

to

hold

legal

title

to

that

portion

of

the

loan.

As

a

result,

the

buyer

of

a

loan

participation

generally

has

no

direct

recourse

against

the

borrower

and

is

exposed

to

credit

risk

of

both

the

borrower

and

seller

of

the

participation.

Bank

loans

often

have

extended

settlement

periods,

generally

may

be

repaid

at

any

time

at

the

option

of

the

borrower,

and

may

require

additional

principal

to

be

funded

at

the

borrowers’

discretion

at

a

later

date

(e.g.

unfunded

commitments

and

revolving

debt

instruments).

Until

settlement,

the

fund

maintains

liquid

assets

sufficient

to

settle

its

unfunded

loan

commitments.

The

fund

reflects

both

the

funded

portion

of

a

bank

loan

as

well

as

its

unfunded

commitment

in

the

Portfolio

of

Investments.

However,

if

a

credit

agreement

provides

no

initial

funding

of

a

tranche,

and

funding

of

the

full

commitment

at

a

future

date(s)

is

at

the

borrower’s

discretion

and

considered

uncertain,

a

loan

is

reflected

in

the

Portfolio

of

Investments

only

if,

and

only

to

the

extent

that,

the

fund

has

actually

settled

a

funding

commitment.

LIBOR

Transition

 The fund

may

invest

in

instruments

that

are

tied

to

reference

rates,

including

London

Interbank

Offered

Rate

(LIBOR).

Over

the

course

of

the

last

several

years,

global

regulators

have

indicated

an

intent

to

phase

out

the

use

of

LIBOR

and

similar

interbank

offered

rates

(IBOR).

While

publication

for

most

LIBOR

currencies

and

lesser-used

USD

LIBOR

settings

ceased

immediately

after

December

31,

2021,

remaining

USD

LIBOR

settings

will

continue

to

be

published

until

June

30,

2023.

There

remains

uncertainty

regarding

the

future

utilization

of

LIBOR

and

the

nature

of

any

replacement

rate.

Any

potential

effects

of

the

transition

away

from

LIBOR

on

the fund,

or

on

certain

instruments

in

which

the fund

invests,

cannot

yet

be

determined.

The

transition

process

may

result

in,

among

other

things,

an

increase

in

volatility

or

illiquidity

of

markets

for

instruments

that

currently

rely

on

LIBOR,

a

reduction

in

the

value

of

certain

instruments

held

by

the fund,

or

a

reduction

in

the

effectiveness

of

related

fund

transactions

such

as

hedges.

Any

such

effects

could

have

an

adverse

impact

on

the fund's

performance.

T.

ROWE

PRICE

Floating

Rate

Fund

61

Other 

Purchases

and

sales

of

portfolio

securities

other

than

short-term securities

aggregated $474,045,000 and

$1,519,690,000,

respectively,

for

the

six

months ended

November

30,

2022.

NOTE

5

-

FEDERAL

INCOME

TAXES

No

provision

for

federal

income

taxes

is

required

since

the

fund

intends

to

continue

to

qualify

as

a

regulated

investment

company

under

Subchapter

M

of

the

Internal

Revenue

Code

and

distribute

to

shareholders

all

of

its

taxable

income

and

gains.

Distributions

determined

in

accordance

with

federal

income

tax

regulations

may

differ

in

amount

or

character

from

net

investment

income

and

realized

gains

for

financial

reporting

purposes.

Financial

reporting

records

are

adjusted

for

permanent

book/tax

differences

to

reflect

tax

character

but

are

not

adjusted

for

temporary

differences.

The

amount

and

character

of

tax-basis

distributions

and

composition

of

net

assets

are

finalized

at

fiscal

year-end;

accordingly,

tax-basis

balances

have

not

been

determined

as

of

the

date

of

this

report.

The

fund

intends

to

retain

realized

gains

to

the

extent

of

available

capital

loss

carryforwards.

Net

realized

capital

losses

may

be

carried

forward

indefinitely

to

offset

future

realized

capital

gains.

As

of

May

31,

2022,

the

fund

had

$145,653,000 of

available

capital

loss

carryforwards.

At

November

30,

2022,

the

cost

of

investments

(including

derivatives,

if

any)

for

federal

income

tax

purposes

was

$4,350,731,000.

Net

unrealized

loss

aggregated

$177,329,000

at

period-end,

of

which $10,738,000

related

to

appreciated

investments

and $188,067,000

related

to

depreciated

investments.

NOTE

6

-

RELATED

PARTY

TRANSACTIONS

The

fund

is

managed

by

T.

Rowe

Price

Associates,

Inc.

(Price

Associates),

a

wholly

owned

subsidiary

of

T.

Rowe

Price

Group,

Inc.

(Price

Group).

The

investment

management

agreement

between

the

fund

and

Price

Associates

provides

for

an

annual

investment

management

fee,

which

is

computed

daily

and

paid

monthly. The

fee

consists

of

an

individual

fund

fee,

equal

to

0.30%

of

the

fund’s

average

daily

net

assets,

and

a

group

fee.

The

group

fee

rate

is

calculated

based

on

the

combined

net

assets

of

certain

mutual

funds

sponsored

by

Price

Associates

(the

group)

applied

to

a

graduated

fee

schedule,

with

rates

ranging

from

0.48%

for

the

first

$1

billion

of

assets

to

0.260%

T.

ROWE

PRICE

Floating

Rate

Fund

62

for

assets

in

excess

of

$845

billion.

The

fund’s

group

fee

is

determined

by

applying

the

group

fee

rate

to

the

fund’s

average

daily

net

assets. At

November

30,

2022,

the

effective

annual

group

fee

rate

was

0.29%.

The Advisor Class

is

subject

to

a

contractual

expense

limitation

through

the

expense

limitation

date

indicated

in

the

table

below.

During

the

limitation

period,

Price

Associates

is

required

to

waive

its

management

fee

or

pay

any

expenses

(excluding

interest;

expenses

related

to

borrowings,

taxes,

and

brokerage;

non-recurring,

extraordinary expenses;

and

acquired

fund

fees

and

expenses) that

would

otherwise

cause

the

class’s

ratio

of

annualized

total

expenses

to

average

net

assets

(net

expense

ratio)

to

exceed

its

expense

limitation.

The

class

is

required

to

repay

Price

Associates

for

expenses

previously

waived/paid

to

the

extent

the

class’s

net

assets

grow

or

expenses

decline

sufficiently

to

allow

repayment

without

causing

the

class’s

net

expense

ratio

(after

the

repayment

is

taken

into

account)

to

exceed

the

lesser

of:

(1)

the

expense

limitation

in

place

at

the

time

such

amounts

were

waived;

or

(2)

the

class’s

current

expense

limitation.

However,

no

repayment

will

be

made

more

than

three

years

after

the

date

of

a

payment

or

waiver.

The

I

Class

is

also

subject

to

an

operating

expense

limitation

(I

Class

Limit)

pursuant

to

which

Price

Associates

is

contractually

required

to

pay

all

operating

expenses

of

the

I

Class,

excluding

management

fees;

interest;

expenses

related

to

borrowings,

taxes,

and

brokerage; non-recurring,

extraordinary expenses; and

acquired

fund

fees

and

expenses, to

the

extent

such

operating

expenses,

on

an

annualized

basis,

exceed

the

I

Class

Limit. This

agreement

will

continue

through

the

expense

limitation

date

indicated

in

the

table

below,

and

may

be

renewed,

revised,

or

revoked

only

with

approval

of

the

fund’s

Board.

The

I

Class

is

required

to

repay

Price

Associates

for

expenses

previously

paid

to

the

extent

the

class’s

net

assets

grow

or

expenses

decline

sufficiently

to

allow

repayment

without

causing

the

class’s

operating

expenses

(after

the

repayment

is

taken

into

account)

to

exceed

the

lesser

of:

(1)

the

I

Class

Limit

in

place

at

the

time

such

amounts

were

paid;

or

(2)

the

current

I

Class

Limit.

However,

no

repayment

will

be

made

more

than

three

years

after

the

date

of

a

payment

or

waiver.

The

Z

Class

is

also

subject

to

a

contractual

expense

limitation

agreement

whereby

Price

Associates

has

agreed

to

waive

and/or

bear

all

of

the

Z

Class’

expenses

(excluding

interest;

expenses

related

to

borrowings,

taxes,

and

brokerage;

non-recurring,

extraordinary

expenses;

and

acquired

fund

fees

and

expenses)

in

their

entirety.

This

fee

waiver

and/or

expense

reimbursement

arrangement

is

expected

to

remain

in

place

indefinitely,

and

the

agreement

may

only

be

amended

or

terminated

with

approval

by

the

fund’s

Board.

Expenses

of

the

fund

waived/paid

by

the

manager

are

not

subject

to

later

repayment

by

the

fund.

T.

ROWE

PRICE

Floating

Rate

Fund

63

Pursuant

to

these

agreements,

expenses

were

waived/paid

by

and/or

repaid

to

Price

Associates

during

the

six

months ended November

30,

2022

as

indicated

in

the

table

below.

Including these

amounts,

expenses

previously

waived/paid

by

Price

Associates

in

the

amount

of $33,000 remain

subject

to

repayment

by

the

fund

at

November

30,

2022.

Any

repayment

of

expenses

previously

waived/paid

by

Price

Associates

during

the

period

would

be

included

in

the

net

investment

income

and

expense

ratios

presented

on

the

accompanying

Financial

Highlights.

In

addition,

the

fund

has

entered

into

service

agreements

with

Price

Associates

and

two

wholly

owned

subsidiaries

of

Price

Associates,

each

an

affiliate

of

the

fund

(collectively,

Price).

Price

Associates

provides

certain

accounting

and

administrative

services

to

the

fund.

T.

Rowe

Price

Services,

Inc.

provides

shareholder

and

administrative

services

in

its

capacity

as

the

fund’s

transfer

and

dividend-disbursing

agent.

T.

Rowe

Price

Retirement

Plan

Services,

Inc.

provides

subaccounting

and

recordkeeping

services

for

certain

retirement

accounts

invested

in

the

Investor

Class

and

Advisor Class.

For

the

six

months ended

November

30,

2022,

expenses

incurred

pursuant

to

these

service

agreements

were

$50,000 for

Price

Associates;

$172,000 for

T.

Rowe

Price

Services,

Inc.;

and

$2,000 for

T.

Rowe

Price

Retirement

Plan

Services,

Inc.

All

amounts

due

to

and

due

from

Price,

exclusive

of

investment

management

fees

payable,

are

presented

net

on

the

accompanying

Statement

of

Assets

and

Liabilities.

Mutual

funds,

trusts,

and

other

accounts

managed

by

Price

Associates

or

its

affiliates

(collectively,

Price

Funds

and

accounts)

may

invest

in

the

fund.

No

Price

fund

or

account

may

invest

for

the

purpose

of

exercising

management

or

control

over

the

fund.

At

November

30,

2022,

approximately

100%

of

the

Z

Class’s

outstanding

shares

were

held

by

Price

Funds

and

accounts.

The fund

may

invest

its

cash

reserves

in

certain

open-end

management

investment

companies

managed

by

Price

Associates

and

considered

affiliates

of

the

fund:

the

T.

Rowe

Price

Government

Reserve

Fund

or

the

T.

Rowe

Price

Treasury

Reserve

Fund,

organized

as

money

market

funds (together,

the

Price

Reserve

Funds).

The

Price

Reserve

Funds

are

offered

as

short-term

investment

options

to

mutual

funds,

trusts,

and

other

accounts

managed

by

Price

Associates

or

its

affiliates

and

are

not

available

for

direct

Advisor

Class

I

Class

Z

Class

Expense

limitation/I

Class

Limit

0.95%

0.05%

0.00%

Expense

limitation

date

09/30/23

09/30/23

N/A

(Waived)/repaid

during

the

period

($000s)

$(8)

$—

$(5,490)

T.

ROWE

PRICE

Floating

Rate

Fund

64

purchase

by

members

of

the

public.

Cash

collateral

from

securities

lending,

if

any,

is

invested

in

the

T.

Rowe

Price

Government

Reserve Fund. The

Price

Reserve

Funds

pay

no

investment

management

fees.

As

of

November

30,

2022,

T.

Rowe

Price

Group,

Inc.,

or

its

wholly

owned

subsidiaries,

owned

7,652,875

shares

of

the

I

Class,

representing

8%

of

the

I

Class's

net

assets. 

The

fund may

participate

in

securities

purchase

and

sale

transactions

with

other

funds

or

accounts

advised

by

Price

Associates

(cross

trades),

in

accordance

with

procedures

adopted

by the

fund’s

Board

and

Securities

and

Exchange

Commission

rules,

which

require,

among

other

things,

that

such

purchase

and

sale

cross

trades

be

effected

at

the

independent

current

market

price

of

the

security.

During

the

six

months ended

November

30,

2022,

the

fund

had

no

purchases

or

sales

cross

trades

with

other

funds

or

accounts

advised

by

Price

Associates.

NOTE

7

-

BORROWING

The

fund,

together

with

certain

other

U.S.

registered

funds

(the

U.S.

borrowers)

and

foreign

investment

funds

managed

by

Price

Associates

or

an

affiliate

(collectively,

the

participating

funds),

is

party

to

a

$1.3

billion,

364-day,

syndicated

credit

facility

(the

facility).

Excluding

commitments

designated

for

the

foreign

investment

funds,

the

fund

can

borrow

up

to

an

aggregate

commitment

amount

of

$1.15 billion

on

a

first-come,

first-served

basis.

The

facility

provides

a

source

of

liquidity

to

the

participating

funds

for

temporary

and

emergency

purposes. The

participating

funds

are

charged

administrative

fees

and

an

annual

commitment

fee of

0.15% of

the

average

daily

undrawn

commitment.

All

fees

allocated

to

the

U.S.

borrowers

are

based

on

the

portion

of

the

aggregate

commitment

available

to

them

and

on

each

U.S.

borrower’s

relative

net

assets.

Such

allocated

fees

are

reflected

as either

miscellaneous

or interest

and

borrowing

related

expense

in

the Statement

of

Operations.

Loans

are

generally

unsecured;

however,

the

fund

must

collateralize

any

borrowings

under

the

facility

on

an

equivalent

basis

if

it

has

other

collateralized

borrowings.

Interest

is

charged

to

the

fund

based

on

its

borrowings

at

the

higher

of

(a)

Secured

Overnight

Financing

Rate

(SOFR)

plus

0.10%

per

annum,

(b)

Federal

Funds

Rate,

or

(c)

the

Overnight

Bank

Funding

Rate

plus

an

applicable

margin. At

November

30,

2022,

the

fund

had

no

borrowings

outstanding

under

the

facility,

and

the

undrawn

amount

of

the

facility

for

the

U.S.

borrowers

was

$1,150,000,000.

T.

ROWE

PRICE

Floating

Rate

Fund

65

NOTE

8

-

OTHER

MATTERS

Unpredictable

events

such

as

environmental

or

natural

disasters,

war,

terrorism,

pandemics,

outbreaks

of

infectious

diseases,

and

similar

public

health

threats

may

significantly

affect

the

economy

and

the

markets

and

issuers

in

which

a

fund

invests.

Certain

events

may

cause

instability

across

global

markets,

including

reduced

liquidity

and

disruptions

in

trading

markets,

while

some

events

may

affect

certain

geographic

regions,

countries,

sectors,

and

industries

more

significantly

than

others,

and

exacerbate

other

pre-existing

political,

social,

and

economic

risks.

Since

2020,

a

novel

strain

of

coronavirus

(COVID-19)

has

resulted

in

disruptions

to

global

business

activity

and

caused

significant

volatility

and

declines

in

global

financial

markets.

In

February

2022,

Russian

forces

entered

Ukraine

and

commenced

an

armed

conflict

leading

to

economic

sanctions

being

imposed

on

Russia

and

certain

of

its

citizens,

creating

impacts

on

Russian-related

stocks

and

debt

and

greater

volatility

in

global

markets.

These

are

recent

examples

of

global

events

which

may

have

a

negative

impact

on

the

values

of

certain

portfolio

holdings

or

the

fund’s

overall

performance.

Management

is

actively

monitoring

the

risks

and

financial

impacts

arising

from

these

events.

T.

ROWE

PRICE

Floating

Rate

Fund

66

INFORMATION

ON

PROXY

VOTING

POLICIES,

PROCEDURES,

AND

RECORDS

A

description

of

the

policies

and

procedures

used

by

T.

Rowe

Price

funds

to

determine

how

to

vote

proxies

relating

to

portfolio

securities

is

available

in

each

fund’s

Statement

of

Additional

Information.

You

may

request

this

document

by

calling

1-800-225-5132

or

by

accessing

the

SEC’s

website,

sec.gov.

The

description

of

our

proxy

voting

policies

and

procedures

is

also

available

on

our

corporate

website.

To

access

it,

please

visit

the

following

Web

page:

https://www.troweprice.com/corporate/us/en/utility/policies.html

Scroll

down

to

the

section

near

the

bottom

of

the

page

that

says,

“Proxy

Voting

Guidelines.”

Click

on

the

links

in

the

shaded

box.

Each

fund’s

most

recent

annual

proxy

voting

record

is

available

on

our

website

and

through

the

SEC’s

website.

To

access

it

through

T.

Rowe

Price,

visit

the

website

location

shown

above,

and

scroll

down

to

the

section

near

the

bottom

of

the

page

that

says,

“Proxy

Voting

Records.”

Click

on

the

Proxy

Voting

Records

link

in

the

shaded

box.

HOW

TO

OBTAIN

QUARTERLY

PORTFOLIO

HOLDINGS

The

fund

files

a

complete

schedule

of

portfolio

holdings

with

the

Securities

and

Exchange

Commission

(SEC)

for

the

first

and

third

quarters

of

each

fiscal

year

as

an

exhibit

to

its

reports

on

Form

N-PORT.

The

fund’s

reports

on

Form

N-PORT

are

available

electronically

on

the

SEC’s

website

(sec.gov).

In

addition,

most

T.

Rowe

Price

funds

disclose

their

first

and

third

fiscal

quarter-end

holdings

on

troweprice.com

.

T.

ROWE

PRICE

Floating

Rate

Fund

67

LIQUIDITY

RISK

MANAGEMENT

PROGRAM

In

accordance

with

Rule

22e-4

(Liquidity

Rule)

under

the

Investment

Company

Act

of

1940,

as

amended,

the

fund

has

established

a

liquidity

risk

management

program

(Liquidity

Program)

reasonably

designed

to

assess

and

manage

the

fund’s

liquidity

risk,

which

generally

represents

the

risk

that

the

fund

would

not

be

able

to

meet

redemption

requests

without

significant

dilution

of

remaining

investors’

interests

in

the

fund.

The

fund’s

Board

of

Directors

(Board)

has

appointed

the

fund’s

investment

adviser,

T.

Rowe

Price

Associates,

Inc.

(Adviser),

as

the

administrator

of

the

Liquidity

Program.

As

administrator,

the

Adviser

is

responsible

for

overseeing

the

day-to-day

operations

of

the

Liquidity

Program

and,

among

other

things,

is

responsible

for

assessing,

managing,

and

reviewing

with

the

Board

at

least

annually

the

liquidity

risk

of

each

T.

Rowe

Price

fund.

The

Adviser

has

delegated

oversight

of

the

Liquidity

Program

to

a

Liquidity

Risk

Committee

(LRC),

which

is

a

cross-functional

committee

composed

of

personnel

from

multiple

departments

within

the

Adviser.

The

Liquidity

Program’s

principal

objectives

include

supporting

the

T.

Rowe

Price

funds’

compliance

with

limits

on

investments

in

illiquid

assets

and

mitigating

the

risk

that

the

fund

will

be

unable

to

timely

meet

its

redemption

obligations.

The

Liquidity

Program

also

includes

a

number

of

elements

that

support

the

management

and

assessment

of

liquidity

risk,

including

an

annual

assessment

of

factors

that

influence

the

fund’s

liquidity

and

the

periodic

classification

and

reclassification

of

a

fund’s

investments

into

categories

that

reflect

the

LRC’s

assessment

of

their

relative

liquidity

under

current

market

conditions.

Under

the

Liquidity

Program,

every

investment

held

by

the

fund

is

classified

at

least

monthly

into

one

of

four

liquidity

categories

based

on

estimations

of

the

investment’s

ability

to

be

sold

during

designated

time

frames

in

current

market

conditions

without

significantly

changing

the

investment’s

market

value.

As

required

by

the

Liquidity

Rule,

at

a

meeting

held

on

July

25,

2022,

the

Board

was

presented

with

an

annual

assessment

prepared

by

the

LRC,

on

behalf

of

the

Adviser,

that

addressed

the

operation

of

the

Liquidity

Program

and

assessed

its

adequacy

and

effectiveness

of

implementation,

including

any

material

changes

to

the

Liquidity

Program

and

the

determination

of

each

fund’s

Highly

Liquid

Investment

Minimum

(HLIM).

The

annual

assessment

included

consideration

of

the

following

factors,

as

applicable:

the

fund’s

investment

strategy

and

liquidity

of

portfolio

investments

during

normal

and

reasonably

foreseeable

stressed

conditions,

including

whether

the

investment

strategy

is

appropriate

for

an

open-end

fund,

the

extent

to

which

the

strategy

involves

a

relatively

concentrated

portfolio

or

large

positions

in

particular

issuers,

and

the

use

of

borrowings

for

investment

purposes

and

derivatives;

short-term

and

long-term

cash

flow

projections

covering

both

normal

and

reasonably

foreseeable

stressed

conditions;

and

holdings

of

cash

and

cash

equivalents,

as

well

as

available

borrowing

arrangements.

T.

ROWE

PRICE

Floating

Rate

Fund

68

For

the

fund

and

other

T.

Rowe

Price

funds,

the

annual

assessment

incorporated

a

report

related

to

a

fund’s

holdings,

shareholder

and

portfolio

concentration,

any

borrowings

during

the

period,

cash

flow

projections,

and

other

relevant

data

for

the

period

of

April

1,

2021,

through

March

31,

2022.

The

report

described

the

methodology

for

classifying

a

fund’s

investments

(including

any

derivative

transactions)

into

one

of

four

liquidity

categories,

as

well

as

the

percentage

of

a

fund’s

investments

assigned

to

each

category.

It

also

explained

the

methodology

for

establishing

a

fund’s

HLIM

and

noted

that

the

LRC

reviews

the

HLIM

assigned

to

each

fund

no

less

frequently

than

annually.

During

the

period

covered

by

the

annual

assessment,

the

LRC

has

concluded,

and

reported

to

the

Board,

that

the

Liquidity

Program

continues

to

operate

adequately

and

effectively

and

is

reasonably

designed

to

assess

and

manage

the

fund’s

liquidity

risk.

LIQUIDITY

RISK

MANAGEMENT

PROGRAM

(continued)

T.

Rowe

Price

Investment

Services,

Inc.

|

100

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Pratt

Street

|

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21202-1009

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a

prospectus

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prospectus;

each

includes

investment

objectives,

risks,

fees,

expenses,

and

other

information

that

you

should

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All

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the

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Brokerage

services

are

provided

by

T.

Rowe

Price

Investment

Services,

Inc.,

member

FINRA/SIPC.

Brokerage

accounts

are

carried

by

Pershing

LLC,

a

BNY

Mellon

Company,

member

NYSE/FINRA/SIPC.

T.

Rowe

Price

Advisory

Services,

Inc.,

and

T.

Rowe

Price

Investment

Services,

Inc.,

are

affiliated

companies.

2

Brokerage

services

are

provided

by

T.

Rowe

Price

Investment

Services,

Inc.,

member

FINRA/SIPC.

Brokerage

accounts

are

carried

by

Pershing

LLC,

a

BNY

Mellon

Company,

member

NYSE/FINRA/SIPC.

202301-2568089

F194-051

1/23

Item 1. (b) Notice pursuant to Rule 30e-3.

Not applicable.

Item 2. Code of Ethics.

A code of ethics, as defined in Item 2 of Form N-CSR, applicable to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions is filed as an exhibit to the registrant’s annual Form N-CSR. No substantive amendments were approved or waivers were granted to this code of ethics during the registrant’s most recent fiscal half-year.

Item 3. Audit Committee Financial Expert.

Disclosure required in registrant’s annual Form N-CSR.

Item 4. Principal Accountant Fees and Services.

Disclosure required in registrant’s annual Form N-CSR.

Item 5. Audit Committee of Listed Registrants.

Not applicable.

Item 6. Investments.

(a) Not applicable. The complete schedule of investments is included in Item 1 of this Form N-CSR.

(b) Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

There has been no change to the procedures by which shareholders may recommend nominees to the registrant’s board of directors.

Item 11. Controls and Procedures.

(a)  The registrant’s principal executive officer and principal financial officer have evaluated the registrant’s disclosure controls and procedures within 90 days of this filing and have concluded that the registrant’s disclosure controls and procedures were effective, as of that date, in ensuring that information required to be disclosed by the registrant in this Form N-CSR was recorded, processed, summarized, and reported timely.

(b)  The registrant’s principal executive officer and principal financial officer are aware of no change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Not applicable.

Item 13. Exhibits.

(a)(1)	The registrant’s code of ethics pursuant to Item 2 of Form N-CSR is filed with the registrant’s annual Form N-CSR.
(2)	Separate certifications by the registrant’s principal executive officer and principal financial officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and required by Rule 30a-2(a) under the Investment Company Act of 1940, are attached.
(3)	Written solicitation to repurchase securities issued by closed-end companies: not applicable.
(b)	A certification by the registrant’s principal executive officer and principal financial officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and required by Rule 30a-2(b) under the Investment Company Act of 1940, is attached.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

T. Rowe Price Floating Rate Fund, Inc.

By	/s/ David Oestreicher
	David Oestreicher
	Principal Executive Officer
Date	January 19, 2023

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By	/s/ David Oestreicher
	David Oestreicher
	Principal Executive Officer
Date	January 19, 2023

By	/s/ Alan S. Dupski
	Alan S. Dupski
	Principal Financial Officer
Date	January 19, 2023