T.
ROWE
PRICE
Credit
Opportunities
Fund
August
31,
2022
(Unaudited)
1
Portfolio
of
Investments
‡
Par/Shares
$
Value
(Amounts
in
000s)
‡
BANK
LOANS
11.4%
(1)
Aerospace
&
Defense
0.3%
Peraton,
FRN,
1M
USD
LIBOR
+
3.750%,
6.274%,
2/1/28
194
188
Peraton,
FRN,
1M
USD
LIBOR
+
7.750%,
10.141%,
2/1/29
136
129
317
Airlines
0.9%
AAdvantage
Loyalty
IP,
FRN,
1M
USD
LIBOR
+
4.750%,
7.46%,
4/20/28
320
315
Mileage
Plus
Holdings,
FRN,
1M
USD
LIBOR
+
5.250%,
7.313%,
6/21/27
505
512
827
Broadcasting
0.3%
Clear
Channel
Outdoor
Holdings,
FRN,
1M
USD
LIBOR
+
3.500%,
6.305%,
8/21/26
303
280
280
Food
0.8%
Dave
&
Buster's,
FRN,
1M
TSFR
+
5.000%,
7.455%,
6/29/29
155
151
Woof
Holdings,
FRN,
1M
USD
LIBOR
+
7.250%,
9.313%,
12/21/28
555
533
684
Health
Care
0.3%
Gainwell
Acquisition,
FRN,
1M
USD
LIBOR
+
4.000%,
6.25%,
10/1/27
237
231
231
Information
Technology
1.1%
Applied
Systems,
FRN,
1M
USD
LIBOR
+
5.500%,
7.75%,
9/19/25
209
206
Boxer
Parent,
FRN,
1M
USD
LIBOR
+
5.500%,
8.024%,
2/27/26
20
19
Delta
Topco,
FRN,
1M
USD
LIBOR
+
7.250%,
9.336%,
12/1/28
205
183
Epicor
Software,
FRN,
1M
USD
LIBOR
+
7.750%,
10.274%,
7/31/28
100
100
RealPage,
FRN,
1M
USD
LIBOR
+
6.500%,
9.024%,
4/23/29
510
495
1,003
Manufacturing
0.7%
Engineered
Machinery
Holdings,
FRN,
1M
USD
LIBOR
+
6.500%,
8.75%,
5/21/29
250
238
Engineered
Machinery
Holdings,
FRN,
3M
USD
LIBOR
+
6.000%,
8.25%,
5/21/29
365
348
586
Restaurants
0.4%
Tacala
Investment,
FRN,
1M
USD
LIBOR
+
7.500%,
10.024%,
2/4/28
350
328
328
Services
3.7%
Ascend
Learning,
FRN,
1M
USD
LIBOR
+
3.500%,
6.024%,
12/11/28
463
440
T.
ROWE
PRICE
Credit
Opportunities
Fund
1
T.
ROWE
PRICE
Credit
Opportunities
Fund
2
Par/Shares
$
Value
(Amounts
in
000s)
‡
Ascend
Learning,
FRN,
1M
USD
LIBOR
+
5.750%,
8.274%,
12/10/29
710
636
CoreLogic,
FRN,
1M
USD
LIBOR
+
6.500%,
9.063%,
6/4/29
220
174
Loyalty
Ventures,
FRN,
1M
USD
LIBOR
+
4.500%,
7.024%,
11/3/27
39
28
Renaissance
Holdings,
FRN,
3M
USD
LIBOR
+
7.000%,
9.524%,
5/29/26
185
178
Staples,
FRN,
3M
USD
LIBOR
+
5.000%,
7.782%,
4/16/26
—
—
UKG,
FRN,
1M
USD
LIBOR
+
5.250%,
7.535%,
5/3/27
1,850
1,798
3,254
Wireless
Communications
2.9%
Asurion,
FRN,
1M
USD
LIBOR
+
5.250%,
7.774%,
1/31/28
1,591
1,360
Asurion,
FRN,
1M
USD
LIBOR
+
5.250%,
7.774%,
1/20/29
1,470
1,248
2,608
Total
Bank
Loans
(Cost
$10,908)
10,118
COMMON
STOCKS
0.5%
Health
Care
0.2%
Avantor (2)
8
196
196
Information
Technology
0.1%
TE
Connectivity
—
38
38
Metals
&
Mining
0.2%
Constellium (2)
16
210
210
Total
Common
Stocks
(Cost
$304)
444
CONVERTIBLE
BONDS
0.2%
Cable
Operators
0.2%
DISH
Network,
3.375%,
8/15/26
185
134
Total
Convertible
Bonds
(Cost
$164)
134
CONVERTIBLE
PREFERRED
STOCKS
1.2%
Health
Care
0.3%
Becton
Dickinson
&
Company,
Series B,
6.00%,
6/1/23
5
228
228
T.
ROWE
PRICE
Credit
Opportunities
Fund
3
Par/Shares
$
Value
(Amounts
in
000s)
‡
Insurance
0.2%
Alliant
Services,
Series A,
Acquisition
Date:
11/6/20,
Cost $167 (2)
(3)
—
164
164
Manufacturing
0.3%
Danaher,
Series B,
5.00%,
4/15/23
—
297
297
Utilities
0.4%
NextEra
Energy,
5.279%,
3/1/23
7
374
374
Total
Convertible
Preferred
Stocks
(Cost
$975)
1,063
CORPORATE
BONDS
82.9%
Aerospace
&
Defense
0.9%
TransDigm,
6.25%,
3/15/26 (4)
360
353
TransDigm,
6.375%,
6/15/26
115
110
TransDigm,
7.50%,
3/15/27
100
98
TransDigm,
8.00%,
12/15/25 (4)
275
281
842
Airlines
2.0%
American
Airlines,
5.50%,
4/20/26 (4)
315
299
American
Airlines,
5.75%,
4/20/29 (4)
350
315
American
Airlines,
11.75%,
7/15/25 (4)
682
750
Delta
Air
Lines,
7.375%,
1/15/26
225
230
Mileage
Plus
Holdings,
6.50%,
6/20/27 (4)
130
130
United
Airlines,
4.625%,
4/15/29 (4)
110
97
1,821
Automotive
8.2%
Clarios
Global,
8.50%,
5/15/27 (4)
720
703
Ford
Motor,
6.10%,
8/19/32
1,140
1,112
Ford
Motor,
9.625%,
4/22/30
240
280
Ford
Motor
Credit,
4.95%,
5/28/27
490
462
Ford
Motor
Credit,
5.125%,
6/16/25
275
268
Goodyear
Tire
&
Rubber,
5.00%,
7/15/29
432
389
Goodyear
Tire
&
Rubber,
5.25%,
7/15/31
405
348
Goodyear
Tire
&
Rubber,
5.625%,
4/30/33
370
320
LCM
Investments
Holdings
II,
4.875%,
5/1/29 (4)
235
196
Rivian
Holdings,
FRN,
6M
USD
LIBOR
+
5.625%,
7.177%,
10/15/26 (4)
1,890
1,748
Tenneco,
5.00%,
7/15/26
365
349
Tenneco,
5.125%,
4/15/29 (4)
285
279
Tenneco,
7.875%,
1/15/29 (4)
825
831
7,285
T.
ROWE
PRICE
Credit
Opportunities
Fund
4
Par/Shares
$
Value
(Amounts
in
000s)
‡
Broadcasting
5.1%
Clear
Channel
Outdoor
Holdings,
5.125%,
8/15/27 (4)
255
228
Clear
Channel
Outdoor
Holdings,
7.50%,
6/1/29 (4)
645
521
Clear
Channel
Outdoor
Holdings,
7.75%,
4/15/28 (4)
480
390
CMG
Media,
8.875%,
12/15/27 (4)
460
400
Diamond
Sports
Group,
6.625%,
8/15/27 (4)
155
14
iHeartCommunications,
8.375%,
5/1/27
1,163
1,021
Lamar
Media,
4.875%,
1/15/29
500
464
Sirius
XM
Radio,
4.00%,
7/15/28 (4)
85
74
Sirius
XM
Radio,
5.50%,
7/1/29 (4)
120
112
Stagwell
Global,
5.625%,
8/15/29 (4)
575
489
Townsquare
Media,
6.875%,
2/1/26 (4)
474
441
Univision
Communications,
7.375%,
6/30/30 (4)
365
360
4,514
Building
&
Real
Estate
1.5%
Brookfield
Residential
Properties,
5.00%,
6/15/29 (4)
190
151
Brookfield
Residential
Properties,
6.25%,
9/15/27 (4)
250
222
Cushman
&
Wakefield
U.S.
Borrower,
6.75%,
5/15/28 (4)
370
370
Howard
Hughes,
4.125%,
2/1/29 (4)
220
182
Howard
Hughes,
5.375%,
8/1/28 (4)
420
374
1,299
Building
Products
0.5%
Advanced
Drainage
Systems,
6.375%,
6/15/30 (4)
115
113
New
Enterprise
Stone
&
Lime,
5.25%,
7/15/28 (4)
365
325
438
Cable
Operators
9.4%
Altice
Financing,
5.00%,
1/15/28 (4)
345
280
Altice
France,
5.125%,
7/15/29 (4)
335
253
Altice
France,
5.50%,
10/15/29 (4)
470
371
Altice
France
Holding,
6.00%,
2/15/28 (4)
815
554
Altice
France
Holding,
10.50%,
5/15/27 (4)
735
639
C&W
Senior
Financing,
6.875%,
9/15/27 (4)
365
325
CCO
Holdings,
4.50%,
8/15/30 (4)
405
341
CCO
Holdings,
4.50%,
6/1/33 (4)
200
158
CCO
Holdings,
4.75%,
3/1/30 (4)
260
224
CCO
Holdings,
4.75%,
2/1/32 (4)
300
249
CCO
Holdings,
5.375%,
6/1/29 (4)
800
736
CCO
Holdings,
6.375%,
9/1/29 (4)
1,795
1,743
CSC
Holdings,
6.50%,
2/1/29 (4)
745
689
CSC
Holdings,
7.50%,
4/1/28 (4)
625
553
DISH
DBS,
5.125%,
6/1/29
225
132
DISH
DBS,
5.25%,
12/1/26 (4)
245
202
DISH
DBS,
5.75%,
12/1/28 (4)
490
377
DISH
DBS,
7.75%,
7/1/26
145
115
T.
ROWE
PRICE
Credit
Opportunities
Fund
5
Par/Shares
$
Value
(Amounts
in
000s)
‡
Netflix,
6.375%,
5/15/29
345
359
8,300
Chemicals
0.6%
Avient,
7.125%,
8/1/30 (4)
195
192
Kobe
U.S.
Midco
2,
(9.25%
Cash
or
10.00%
PIK),
9.25%,
11/1/26 (4)(5)
145
117
Methanex,
5.125%,
10/15/27
82
75
Methanex,
5.25%,
12/15/29
120
101
Methanex,
5.65%,
12/1/44
108
79
564
Consumer
Products
0.2%
Wolverine
World
Wide,
4.00%,
8/15/29 (4)
195
159
159
Container
1.2%
Ardagh
Metal
Packaging
Finance
USA,
4.00%,
9/1/29 (4)
400
328
Ardagh
Metal
Packaging
Finance
USA,
6.00%,
6/15/27 (4)
360
353
Trivium
Packaging
Finance,
5.50%,
8/15/26 (4)
200
192
Trivium
Packaging
Finance,
8.50%,
8/15/27 (4)
225
213
1,086
Energy
11.9%
Aethon
United
BR,
8.25%,
2/15/26 (4)
165
166
Antero
Resources,
7.625%,
2/1/29 (4)
10
10
Archrock
Partners,
6.25%,
4/1/28 (4)
145
132
Chesapeake
Energy,
5.50%,
2/1/26 (4)
135
130
Chesapeake
Energy,
5.875%,
2/1/29 (4)
150
143
Citgo
Holding,
9.25%,
8/1/24 (4)
705
705
CITGO
Petroleum,
7.00%,
6/15/25 (4)
180
176
DCP
Midstream
Operating,
6.75%,
9/15/37 (4)
215
228
DCP
Midstream
Operating,
8.125%,
8/16/30
46
52
Exterran
Energy
Solutions,
8.125%,
5/1/25
116
113
Ferrellgas,
5.375%,
4/1/26 (4)
520
458
Gulfport
Energy,
8.00%,
5/17/26 (4)
155
156
Hess,
7.30%,
8/15/31
500
555
Hilcorp
Energy
I,
6.00%,
2/1/31 (4)
241
218
Kinetik
Holdings,
5.875%,
6/15/30 (4)
640
606
Magnolia
Oil
&
Gas
Operating,
6.00%,
8/1/26 (4)
790
762
NGL
Energy
Operating,
7.50%,
2/1/26 (4)
1,040
946
NuStar
Logistics,
6.00%,
6/1/26
300
283
Occidental
Petroleum,
6.20%,
3/15/40
250
254
Occidental
Petroleum,
6.625%,
9/1/30
265
283
Occidental
Petroleum,
7.50%,
5/1/31
74
83
Occidental
Petroleum,
7.875%,
9/15/31
45
52
Occidental
Petroleum,
7.95%,
6/15/39
465
550
Occidental
Petroleum,
8.50%,
7/15/27
300
334
Occidental
Petroleum,
8.875%,
7/15/30
820
955
Petrole
os
Mexicanos,
6.625%,
6/15/35
400
287
T.
ROWE
PRICE
Credit
Opportunities
Fund
6
Par/Shares
$
Value
(Amounts
in
000s)
‡
Range
Resources,
8.25%,
1/15/29
130
137
Rockcliff
Energy
II,
5.50%,
10/15/29 (4)
140
130
Solaris
Midstream
Holdings,
7.625%,
4/1/26 (4)
165
158
Southwestern
Energy,
8.375%,
9/15/28
265
279
Tallgrass
Energy
Partners,
6.00%,
3/1/27 (4)
220
201
Tallgrass
Energy
Partners,
6.00%,
12/31/30 (4)
220
194
Tallgrass
Energy
Partners,
7.50%,
10/1/25 (4)
185
185
USA
Compression
Partners,
6.875%,
9/1/27
205
190
Venture
Global
Calcasieu
Pass,
3.875%,
8/15/29 (4)
225
196
Venture
Global
Calcasieu
Pass,
4.125%,
8/15/31 (4)
290
252
10,559
Entertainment
&
Leisure
4.7%
Carnival,
7.625%,
3/1/26 (4)
525
445
Carnival,
9.875%,
8/1/27 (4)
345
348
Carnival,
10.50%,
6/1/30 (4)
230
212
CDI
Escrow
Issuer,
5.75%,
4/1/30 (4)
455
420
Cedar
Fair,
5.25%,
7/15/29
180
164
Cedar
Fair,
6.50%,
10/1/28
605
593
Cinemark
USA,
5.25%,
7/15/28 (4)
515
417
Live
Nation
Entertainment,
4.75%,
10/15/27 (4)
405
369
Royal
Caribbean
Cruises,
5.50%,
8/31/26 (4)
425
342
Royal
Caribbean
Cruises,
5.50%,
4/1/28 (4)
230
174
Royal
Caribbean
Cruises,
9.125%,
6/15/23 (4)
20
20
Royal
Caribbean
Cruises,
10.875%,
6/1/23 (4)
105
106
Royal
Caribbean
Cruises,
11.625%,
8/15/27 (4)
280
276
SeaWorld
Parks
&
Entertainment,
5.25%,
8/15/29 (4)
280
244
4,130
Financial
4.3%
Acrisure,
10.125%,
8/1/26 (4)
448
450
Advisor
Group
Holdings,
10.75%,
8/1/27 (4)
210
211
AG
TTMT
Escrow
Issuer,
8.625%,
9/30/27 (4)
215
215
Alliant
Holdings
Intermediate,
6.75%,
10/15/27 (4)
440
400
AmWINS
Group,
4.875%,
6/30/29 (4)
140
122
GTCR
AP
Finance,
8.00%,
5/15/27 (4)
165
161
Home
Point
Capital,
5.00%,
2/1/26 (4)
220
156
Midcap
Financial
Issuer
Trust,
5.625%,
1/15/30 (4)
200
156
Midcap
Financial
Issuer
Trust,
6.50%,
5/1/28 (4)
530
453
Navient,
4.875%,
3/15/28
175
144
Navient,
5.50%,
3/15/29
775
628
Navient,
6.75%,
6/25/25
255
246
OneMain
Finance,
3.50%,
1/15/27
160
132
OneMain
Finance,
5.375%,
11/15/29
150
124
OneMain
Finance,
6.125%,
3/15/24
25
24
OneMain
Finance,
6.875%,
3/15/25
155
150
3,772
T.
ROWE
PRICE
Credit
Opportunities
Fund
7
Par/Shares
$
Value
(Amounts
in
000s)
‡
Food
0.7%
BellRing
Brands,
7.00%,
3/15/30 (4)
340
323
Darling
Ingredients,
6.00%,
6/15/30 (4)
265
265
588
Gaming
3.1%
Caesars
Entertainment,
8.125%,
7/1/27 (4)
700
688
CCM
Merger,
6.375%,
5/1/26 (4)
120
113
International
Game
Technology,
6.25%,
1/15/27 (4)
620
606
Peninsula
Pacific
Entertainment,
8.50%,
11/15/27 (4)
165
177
Sands
China,
5.90%,
8/8/28
505
433
Scientific
Games
Holdings,
6.625%,
3/1/30 (4)
355
316
Scientific
Games
International,
7.00%,
5/15/28 (4)
65
64
Scientific
Games
International,
7.25%,
11/15/29 (4)
195
191
Wynn
Resorts
Finance,
5.125%,
10/1/29 (4)
200
167
2,755
Health
Care
5.8%
Avantor
Funding,
4.625%,
7/15/28 (4)
215
195
Bausch
Health
Americas,
8.50%,
1/31/27 (4)
237
114
Cano
Health,
6.25%,
10/1/28 (4)
120
108
CHS,
5.25%,
5/15/30 (4)
275
208
CHS,
6.00%,
1/15/29 (4)
205
168
CHS,
6.875%,
4/1/28 (4)
180
93
CHS,
6.875%,
4/15/29 (4)
375
234
CHS,
8.00%,
12/15/27 (4)
200
176
Medline
Borrower,
5.25%,
10/1/29 (4)
840
708
Minerva
Merger
Sub,
6.50%,
2/15/30 (4)
425
362
Select
Medical,
6.25%,
8/15/26 (4)
480
461
Tenet
Healthcare,
6.125%,
10/1/28 (4)
290
266
Tenet
Healthcare,
6.125%,
6/15/30 (4)
310
297
Tenet
Healthcare,
6.875%,
11/15/31
290
272
Teva
Pharmaceutical
Finance
Netherlands
III,
4.75%,
5/9/27
240
212
Teva
Pharmaceutical
Finance
Netherlands
III,
5.125%,
5/9/29
245
215
Teva
Pharmaceutical
Finance
Netherlands
III,
7.125%,
1/31/25
1,075
1,064
5,153
Information
Technology
3.2%
Boxer
Parent,
7.125%,
10/2/25 (4)
30
30
Central
Parent,
7.25%,
6/15/29 (4)
685
654
Condor
Merger
Sub,
7.375%,
2/15/30 (4)
200
166
Entegris
Escrow,
5.95%,
6/15/30 (4)
1,645
1,571
Match
Group
Holdings
II,
4.625%,
6/1/28 (4)
305
274
Photo
Holdings
Merger
Sub,
8.50%,
10/1/26 (4)
250
189
2,884
Lodging
0.4%
Hilton
Domestic
Operating,
4.875%,
1/15/30
180
164
T.
ROWE
PRICE
Credit
Opportunities
Fund
8
Par/Shares
$
Value
(Amounts
in
000s)
‡
Hilton
Domestic
Operating,
5.75%,
5/1/28 (4)
165
161
325
Manufacturing
0.3%
Madison
IAQ,
4.125%,
6/30/28 (4)
205
176
Madison
IAQ,
5.875%,
6/30/29 (4)
115
94
270
Metals
&
Mining
1.5%
Arconic,
6.125%,
2/15/28 (4)
225
212
Carpenter
Technology,
7.625%,
3/15/30
500
491
Hecla
Mining,
7.25%,
2/15/28
300
285
Hudbay
Minerals,
6.125%,
4/1/29 (4)
120
106
TMS
International,
6.25%,
4/15/29 (4)
315
219
1,313
Real
Estate
Investment
Trust
Securities
0.3%
Service
Properties
Trust,
7.50%,
9/15/25
285
273
273
Restaurants
0.5%
Dave
&
Buster's,
7.625%,
11/1/25 (4)
440
443
443
Retail
1.8%
Bath
&
Body
Works,
6.625%,
10/1/30 (4)
315
286
Bath
&
Body
Works,
6.75%,
7/1/36
110
95
Bath
&
Body
Works,
6.95%,
3/1/33
115
95
Bath
&
Body
Works,
7.50%,
6/15/29
70
67
Bath
&
Body
Works,
9.375%,
7/1/25 (4)
150
159
PetSmart,
4.75%,
2/15/28 (4)
380
341
PetSmart,
7.75%,
2/15/29 (4)
580
545
1,588
Satellites
0.8%
Intelsat
Jackson
Holdings,
6.50%,
3/15/30 (4)
190
172
Maxar
Technologies,
7.75%,
6/15/27 (4)
550
546
718
Services
4.5%
Albion
Financing
1,
6.125%,
10/15/26 (4)
290
258
Albion
Financing
2,
8.75%,
4/15/27 (4)
200
178
Allied
Universal
Holdco,
9.75%,
7/15/27 (4)
325
294
eG
Global
Finance,
6.25%,
10/30/25
(EUR)
190
178
eG
Global
Finance,
6.75%,
2/7/25 (4)
200
189
eG
Global
Finance,
8.50%,
10/30/25 (4)
400
372
GFL
Environmental,
4.00%,
8/1/28 (4)
230
194
MSCI,
3.25%,
8/15/33 (4)
435
344
Presidio
Holdings,
8.25%,
2/1/28 (4)
325
295
Prime
Security
Services
Borrower,
5.75%,
4/15/26 (4)
185
178
Prime
Security
Services
Borrower,
6.25%,
1/15/28 (4)
240
212
Sabre
GLBL,
7.375%,
9/1/25 (4)
65
62
T.
ROWE
PRICE
Credit
Opportunities
Fund
9
Par/Shares
$
Value
(Amounts
in
000s)
‡
Sabre
GLBL,
9.25%,
4/15/25 (4)
215
213
TK
Elevator
Holdco
GmbH,
7.625%,
7/15/28 (4)
439
393
TK
Elevator
U.S.
Newco,
5.25%,
7/15/27 (4)
690
622
3,982
Supermarkets
1.6%
Albertsons,
3.25%,
3/15/26 (4)
540
485
Albertsons,
4.875%,
2/15/30 (4)
250
218
Albertsons,
5.875%,
2/15/28 (4)
305
290
Albertsons,
7.50%,
3/15/26 (4)
405
414
New
Albertsons,
7.45%,
8/1/29
15
15
New
Albertsons,
8.00%,
5/1/31
5
5
1,427
Transportation
0.4%
Watco,
6.50%,
6/15/27 (4)
370
354
354
Utilities
6.8%
Calpine,
5.00%,
2/1/31 (4)
295
247
Calpine,
5.125%,
3/15/28 (4)
400
355
NRG
Energy,
5.25%,
6/15/29 (4)
190
170
NRG
Energy,
5.75%,
1/15/28
315
296
PG&E,
5.00%,
7/1/28
213
188
PG&E,
5.25%,
7/1/30
545
471
Pike,
5.50%,
9/1/28 (4)
385
319
Vistra,
VR,
7.00% (4)(6)(7)
2,020
1,879
Vistra,
VR,
8.00% (4)(6)(7)
2,235
2,146
6,071
Wireless
Communications
0.7%
Sprint,
7.625%,
2/15/25
415
434
Sprint
Capital,
6.875%,
11/15/28
170
181
615
Total
Corporate
Bonds
(Cost
$80,967)
73,528
MUNICIPAL
SECURITIES
0.8%
Puerto
Rico
0.8%
Puerto
Rico
Commonwealth,
VR,
11/1/43 (2)(8)
1,260
649
Total
Municipal
Securities
(Cost
$686)
649
T.
ROWE
PRICE
Credit
Opportunities
Fund
10
Par/Shares
$
Value
(Amounts
in
000s)
‡
SHORT-TERM
INVESTMENTS
0.9%
Money
Market
Funds
0.9%
T.
Rowe
Price
Government
Reserve
Fund,
2.36% (9)(10)
838
838
Total
Short-Term
Investments
(Cost
$838)
838
Total
Investments
in
Securities
97.9%
(Cost
$94,842)
$
86,774
Other
Assets
Less
Liabilities
2.1%
1,890
Net
Assets
100.0%
$
88,664
‡
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)
Non-income
producing
(3)
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
$164
and
represents
0.2%
of
net
assets.
(4)
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
$55,169
and
represents
62.2%
of
net
assets.
(5)
Security
has
the
ability
to
pay
in-kind
or
pay
in
cash.
When
applicable,
separate
rates
of
such
payments
are
disclosed.
(6)
Perpetual
security
with
no
stated
maturity
date.
(7)
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.
(8)
Contingent
value
instrument
that
only
pays
out
if
a
portion
of
the
territory's
Sales
and
Use
Tax
outperforms
the
projections
in
the
Oversight
Board’s
Certified
Fiscal
Plan.
(9)
Seven-day
yield
(10)
Affiliated
Companies
1M
TSFR
One
month
term
SOFR
(Secured
overnight
financing
rate)
1M
USD
LIBOR
One
month
USD
LIBOR
(London
interbank
offered
rate)
T.
ROWE
PRICE
Credit
Opportunities
Fund
11
.
.
.
.
.
.
.
.
.
.
3M
USD
LIBOR
Three
month
USD
LIBOR
(London
interbank
offered
rate)
6M
USD
LIBOR
Six
month
USD
LIBOR
(London
interbank
offered
rate)
EUR
Euro
FRN
Floating
Rate
Note
PIK
Payment-in-kind
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
Credit
Opportunities
Fund
12
(Amounts
in
000s)
SWAPS
(0.1)%
Description
Notional
Amount
$
Value
Upfront
Payments/
$
(Receipts)
Unrealized
$
Gain/(Loss)
BILATERAL
SWAPS
(0.0)%
Credit
Default
Swaps,
Protection
Sold
(0.0)%
Barclays
Bank,
Protection
Sold
(Relevant
Credit:
Royal
Caribbean
Cruises,
B3*),
Receive
5.00%
Quarterly,
Pay
upon
credit
default,
12/20/23
*
65
(2)
(1)
(1)
Citibank,
Protection
Sold
(Relevant
Credit:
Royal
Caribbean
Cruises,
B3*),
Receive
5.00%
Quarterly,
Pay
upon
credit
default,
12/20/23
*
70
(2)
(2)
—
Total
Bilateral
Credit
Default
Swaps,
Protection
Sold
(3)
(1)
Total
Bilateral
Swaps
(3)
(1)
Description
Notional
Amount
$
Value
Initial
$
Value
**
Unrealized
$
Gain/(Loss)
CENTRALLY
CLEARED
SWAPS
(0.1)%
Credit
Default
Swaps,
Protection
Sold
(0.1)%
Protection
Sold
(Relevant
Credit:
American
Airlines
Group,
Caa1*),
Receive
5.00%
Quarterly,
Pay
upon
credit
default,
6/20/23
*
58
—
(2)
2
Protection
Sold
(Relevant
Credit:
Community
Health
Systems,
Caa2*),
Receive
5.00%
Quarterly,
Pay
upon
credit
default,
12/20/26
*
216
(92)
(8)
(84)
Protection
Sold
(Relevant
Credit:
Markit
CDX.NA.HY-S38,
5
Year
Index),
Receive
5.00%
Quarterly,
Pay
upon
credit
default,
6/21/27
1,077
(2)
(12)
10
Total
Centrally
Cleared
Credit
Default
Swaps,
Protection
Sold
(72)
Total
Centrally
Cleared
Swaps
(72)
Net
payments
(receipts)
of
variation
margin
to
date
71
Variation
margin
receivable
(payable)
on
centrally
cleared
swaps
$
(1)
*
Credit
ratings
as
of
August
31,
2022.
Ratings
shown
are
from
Moody’s
Investors
Service
and
if
Moody’s
does
not
rate
a
security,
then
Standard
&
Poor’s
(S&P)
is
used.
Fitch
is
used
for
securities
that
are
not
rated
by
either
Moody’s
or
S&P.
**
Includes
interest
purchased
or
sold
but
not
yet
collected
of
less
than
$1.
T.
ROWE
PRICE
Credit
Opportunities
Fund
13
(Amounts
in
000s)
FORWARD
CURRENCY
EXCHANGE
CONTRACTS
Counterparty
Settlement
Receive
Deliver
Unrealized
Gain/(Loss)
JPMorgan
Chase
11/25/22
USD
261
EUR
253
$
6
UBS
Investment
Bank
11/25/22
USD
87
EUR
84
2
Net
unrealized
gain
(loss)
on
open
forward
currency
exchange
contracts
$
8
T.
ROWE
PRICE
Credit
Opportunities
Fund
14
The
accompanying
notes
are
an
integral
part
of
this
Portfolio
of
Investments.
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
three
months
ended
August
31,
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,
2.36%
$
—#
$
—
$
4+
Supplementary
Investment
Schedule
Affiliate
Value
05/31/22
Purchase
Cost
Sales
Cost
Value
08/31/22
T.
Rowe
Price
Government
Reserve
Fund,
2.36%
$
1
¤
¤
$
838^
#
Capital
gain
distributions
from
mutual
funds
represented
$0
of
the
net
realized
gain
(loss).
+
Investment
income
comprised
$4
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
$838.
T.
ROWE
PRICE
Credit
Opportunities
Fund
Unaudited
Notes
to
Portfolio
of
Investments
15
T.
Rowe
Price
Credit
Opportunities
Fund,
Inc. (the
fund) is
registered
under
the
Investment
Company
Act
of
1940
(the
1940
Act)
as
an
open-end
management
investment
company
and
follows
accounting
and
reporting
guidance
of
the
Financial
Accounting
Standards
Board
Accounting
Standards
Codification
Topic
946.
The
accompanying
Portfolio
of
Investments
was
prepared
in
accordance
with
accounting
principles
generally
accepted
in
the
United
States
of
America
(GAAP).
For
additional
information
on
the
fund’s
significant
accounting
policies
and
investment
related
disclosures,
please
refer
to
the
fund’s most
recent
semiannual
or
annual
shareholder
report
and
its
prospectus.
VALUATION
Fair
Value
The
fund’s
financial
instruments
are
valued
at
the
close
of
the
New
York
Stock
Exchange
(NYSE),
normally
4
p.m.
ET,
each
day
the
NYSE
is
open
for
business,
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
T.
Rowe
Price
Valuation
Committee
(the
Valuation
Committee)
is
an
internal
committee
that
has
been
delegated
certain
responsibilities
by
the
fund’s
Board
of
Directors
(the
Board)
to
ensure
that
financial
instruments
are
appropriately
priced
at
fair
value
in
accordance
with
GAAP
and
the
1940
Act.
Subject
to
oversight
by
the
Board,
the
Valuation
Committee
develops
and
oversees
pricing-related
policies
and
procedures
and
approves
all
fair
value
determinations.
Specifically,
the
Valuation
Committee
establishes
policies
and
procedures
used
in
valuing
financial
instruments,
including
those
which
cannot
be
valued
in
accordance
with
normal
procedures
or
using
pricing
vendors;
determines
pricing
techniques,
sources,
and
persons
eligible
to
effect
fair
value
pricing
actions;
evaluates
the
services
and
performance
of
the
pricing
vendors;
oversees
the
pricing
process
to
ensure
policies
and
procedures
are
being
followed;
and
provides
guidance
on
internal
controls
and
valuation-related
matters.
The
Valuation
Committee
provides
periodic
reporting
to
the
Board
on
valuation
matters.
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
T.
ROWE
PRICE
Credit
Opportunities
Fund
16
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 fund’s
own
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
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.
T.
ROWE
PRICE
Credit
Opportunities
Fund
17
Investments
for
which
market
quotations
or
market-based
valuations
are
not
readily
available
or
deemed
unreliable
are
valued
at
fair
value
as
determined
in
good
faith
by
the
Valuation
Committee,
in
accordance
with
fair
valuation
policies
and
procedures.
The
objective
of
any
fair
value
pricing
determination
is
to
arrive
at
a
price
that
could
reasonably
be
expected
from
a
current
sale.
Financial
instruments
fair
valued
by
the
Valuation
Committee
are
primarily
private
placements,
restricted
securities,
warrants,
rights,
and
other
securities
that
are
not
publicly
traded.
Factors
used
in
determining
fair
value
vary
by
type
of
investment
and
may
include
market
or
investment
specific
considerations.
The
Valuation
Committee
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
Committee
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
and
updated
as
information
becomes
available,
including
actual
purchase
and
sale
transactions
of
the
investment.
Because
any
fair
value
determination
involves
a
significant
amount
of
judgment,
there
is
a
degree
of
subjectivity
inherent
in
such
pricing
decisions,
and
fair
value
prices
determined
by
the
Valuation
Committee
could
differ
from
those
of
other
market
participants.
T.
ROWE
PRICE
Credit
Opportunities
Fund
18
Valuation
Inputs
The
following
table
summarizes
the
fund’s
financial
instruments,
based
on
the
inputs
used
to
determine
their
fair
values
on
August
31,
2022
(for
further
detail
by
category,
please
refer
to
the
accompanying
Portfolio
of
Investments):
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.
($000s)
Level
1
Level
2
Level
3
Total
Value
Assets
Fixed
Income
Securities
1
$
—
$
84,429
$
—
$
84,429
Common
Stocks
444
—
—
444
Convertible
Preferred
Stocks
—
1,063
—
1,063
Short-Term
Investments
838
—
—
838
Total
Securities
1,282
85,492
—
86,774
Swaps*
—
12
—
12
Forward
Currency
Exchange
Contracts
—
8
—
8
Total
$
1,282
$
85,512
$
—
$
86,794
Liabilities
Swaps*
$
—
$
88
$
—
$
88
Total
$
—
$
88
$
—
$
88
1
Includes
Bank
Loans,
Convertible
Bonds,
Corporate
Bonds
and
Municipal
Securities.
*
The
fair
value
presented
includes
cumulative
gain
(loss)
on
centrally
cleared
swaps;
however,
the
net
value
reflected
on
the
accompanying
Portfolio
of
Investments
is
only
the
unsettled
variation
margin
receivable
(payable)
at
that
date.
T.
ROWE
PRICE
Credit
Opportunities
Fund
19
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
an
impact
on
the
fund’s
performance,
which
could
be
negatively
impacted
if
the
value
of
a
portfolio
holding
were
harmed
by
these
and
such
other
events.
Management
is
actively
monitoring
the
risks
and
financial
impacts
arising
from
these
events.
F105-054Q1
08/22