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T. Rowe Price High Yield Fund (PRHYX) NPORT-PT. Rowe Price U.S. High Yield Fund (Feb 2023 report)

Filed: 28 Apr 23, 10:43am

T.

ROWE

PRICE

U.S.

High

Yield

Fund

February

28,

2023

(Unaudited)

1

Portfolio

of

Investments

‡

Par/Shares

$

Value

(Amounts

in

000s)

‡

BANK

LOANS

5.8%

(1)

Banking

0.1%

AssuredPartners,

FRN,

1M

USD

LIBOR

+

3.50%,

2/12/27 (2)

660‌

645‌

645‌

Basic

Industry

1.0%

Tutor

Perini,

FRN,

1M

USD

LIBOR

+

4.75%,

9.385%,

8/18/27

4,422‌

4,201‌

4,201‌

Consumer

Goods

1.6%

Journey

Personal

Care,

FRN,

3M

USD

LIBOR

+

4.25%,

8.98%,

3/1/28

5,886‌

4,372‌

Naked

Juice,

FRN,

3M

TSFR

+

6.00%,

10.68%,

1/24/30 (2)

3,330‌

2,531‌

6,903‌

Energy

0.3%

Prairie

ECI

Acquiror,

FRN,

1M

USD

LIBOR

+

4.75%,

3/11/26 (2)

1,489‌

1,466‌

1,466‌

Health

Care

1.0%

Bausch

Health,

FRN,

1M

TSFR

+

5.25%,

9.914%,

2/1/27

5,787‌

4,553‌

4,553‌

Services

1.8%

KNS

Midco,

FRN,

6M

USD

LIBOR

+

6.25%,

10.42%,

4/21/27

5,199‌

4,630‌

Staples,

FRN,

3M

USD

LIBOR

+

5.00%,

9.814%,

4/16/26

3,356‌

3,103‌

7,733‌

Total

Bank

Loans

(Cost

$29,928)

25,501‌

CORPORATE

BONDS

88.8%

Automotive

4.5%

Adient

Global

Holdings,

4.875%,

8/15/26 (3)

4,727‌

4,373‌

Allison

Transmission,

3.75%,

1/30/31 (3)

3,360‌

2,789‌

Ford

Motor

Credit,

4.00%,

11/13/30

3,195‌

2,674‌

Ford

Motor

Credit,

5.113%,

5/3/29

2,420‌

2,209‌

Jaguar

Land

Rover

Automotive,

5.50%,

7/15/29 (3)

5,890‌

4,712‌

Wheel

Pros,

6.50%,

5/15/29 (3)

6,405‌

2,850‌

19,607‌

Basic

Industry

5.0%

Element

Solutions,

3.875%,

9/1/28 (3)

2,540‌

2,194‌

ERO

Copper,

6.50%,

2/15/30 (3)

6,940‌

5,853‌

Novelis,

3.875%,

8/15/31 (3)

4,910‌

3,971‌

Polar

U.S.

Borrower,

6.75%,

5/15/26 (3)

6,250‌

2,906‌

SCIH

Salt

Holdings,

6.625%,

5/1/29 (3)

5,045‌

4,105‌

Tutor

Perini,

6.875%,

5/1/25 (3)

3,250‌

2,722‌

21,751‌

Capital

Goods

5.7%

ARD

Finance,

(6.500%

Cash

or

7.250%

PIK),

6.50%,

6/30/27 (3)(4)

7,238‌

5,909‌

T.

ROWE

PRICE

U.S.

High

Yield

Fund

2

Par/Shares

$

Value

(Amounts

in

000s)

‡

Bombardier,

7.875%,

4/15/27 (3)

4,410‌

4,377‌

Dornoch

Debt

Merger

Sub,

6.625%,

10/15/29 (3)

6,758‌

5,102‌

GrafTech

Finance,

4.625%,

12/15/28 (3)

5,572‌

4,548‌

Spirit

AeroSystems,

4.60%,

6/15/28

5,825‌

4,798‌

24,734‌

Consumer

Goods

6.2%

Coty,

4.75%,

1/15/29 (3)

4,600‌

4,151‌

HLF

Financing,

4.875%,

6/1/29 (3)

5,944‌

4,592‌

MajorDrive

Holdings

IV,

6.375%,

6/1/29 (3)

5,985‌

4,638‌

Sigma

Holdco,

7.875%,

5/15/26 (3)

8,348‌

6,595‌

Tempur

Sealy

International,

3.875%,

10/15/31 (3)

2,503‌

2,009‌

Triton

Water

Holdings,

6.25%,

4/1/29 (3)

6,465‌

5,140‌

27,125‌

Energy

14.9%

Ascent

Resources

Utica

Holdings,

5.875%,

6/30/29 (3)

2,595‌

2,264‌

Ascent

Resources

Utica

Holdings,

8.25%,

12/31/28 (3)

2,515‌

2,446‌

Citgo

Holding,

9.25%,

8/1/24 (3)

5,105‌

5,124‌

Comstock

Resources,

6.75%,

3/1/29 (3)

4,760‌

4,379‌

Encino

Acquisition

Partners

Holdings,

8.50%,

5/1/28 (3)

4,307‌

3,790‌

EQM

Midstream

Partners,

4.50%,

1/15/29 (3)

2,865‌

2,392‌

EQM

Midstream

Partners,

4.75%,

1/15/31 (3)

1,735‌

1,406‌

Gulfport

Energy,

8.00%,

5/17/26 (3)

4,210‌

4,084‌

Harvest

Midstream

I,

7.50%,

9/1/28 (3)

4,270‌

4,110‌

Hess

Midstream

Operations,

4.25%,

2/15/30 (3)

4,525‌

3,801‌

Hess

Midstream

Operations,

5.50%,

10/15/30 (3)

1,140‌

1,026‌

Howard

Midstream

Energy

Partners,

6.75%,

1/15/27 (3)

4,920‌

4,674‌

NGL

Energy

Operating,

7.50%,

2/1/26 (3)

4,945‌

4,710‌

Permian

Resources

Operating,

5.875%,

7/1/29 (3)

4,215‌

3,773‌

Sunoco,

4.50%,

5/15/29

2,700‌

2,376‌

Sunoco,

4.50%,

4/30/30

2,775‌

2,407‌

Tallgrass

Energy

Partners,

6.00%,

12/31/30 (3)

5,662‌

4,869‌

USA

Compression

Partners,

6.875%,

9/1/27

2,795‌

2,641‌

Weatherford

International,

8.625%,

4/30/30 (3)

4,943‌

4,931‌

65,203‌

Financial

Services

4.5%

Advisor

Group

Holdings,

10.75%,

8/1/27 (3)

3,595‌

3,703‌

AG

TTMT

Escrow

Issuer,

8.625%,

9/30/27 (3)

1,016‌

1,031‌

FirstCash,

5.625%,

1/1/30 (3)

4,810‌

4,257‌

PennyMac

Financial

Services,

4.25%,

2/15/29 (3)

4,615‌

3,611‌

PRA

Group,

5.00%,

10/1/29 (3)

4,607‌

3,928‌

Rocket

Mortgage,

4.00%,

10/15/33 (3)

4,455‌

3,304‌

19,834‌

Health

Care

2.7%

CHS,

5.25%,

5/15/30 (3)

2,275‌

1,832‌

CHS,

6.875%,

4/1/28 (3)

6,311‌

4,197‌

T.

ROWE

PRICE

U.S.

High

Yield

Fund

3

Par/Shares

$

Value

(Amounts

in

000s)

‡

Pediatrix

Medical

Group,

5.375%,

2/15/30 (3)

4,305‌

3,799‌

U.S.

Renal

Care,

10.625%,

7/15/27 (3)

5,585‌

1,787‌

11,615‌

Insurance

3.2%

Alliant

Holdings

Intermediate,

5.875%,

11/1/29 (3)

3,080‌

2,576‌

AssuredPartners,

5.625%,

1/15/29 (3)

1,205‌

1,024‌

BroadStreet

Partners,

5.875%,

4/15/29 (3)

6,005‌

5,179‌

HUB

International,

5.625%,

12/1/29 (3)

3,000‌

2,573‌

Ryan

Specialty

Group,

4.375%,

2/1/30 (3)

3,190‌

2,723‌

14,075‌

Leisure

6.3%

Carnival,

5.75%,

3/1/27 (3)

9,220‌

7,560‌

Carnival

Holdings

Bermuda,

10.375%,

5/1/28 (3)

1,220‌

1,302‌

Hilton

Domestic

Operating,

3.625%,

2/15/32 (3)

4,195‌

3,440‌

Life

Time,

5.75%,

1/15/26 (3)

4,399‌

4,201‌

Sabre

GLBL,

9.25%,

4/15/25 (3)

630‌

620‌

Sabre

GLBL,

11.25%,

12/15/27 (3)

4,320‌

4,304‌

Studio

City,

7.00%,

2/15/27 (3)

1,150‌

1,082‌

Studio

City

Finance,

5.00%,

1/15/29 (3)

6,340‌

4,890‌

27,399‌

Manufacturing

0.9%

Granite

U.S.

Holdings,

11.00%,

10/1/27 (3)

3,914‌

4,110‌

4,110‌

Media

7.4%

CCO

Holdings,

4.50%,

5/1/32

5,410‌

4,281‌

CMG

Media,

8.875%,

12/15/27 (3)

4,717‌

3,148‌

Deluxe,

8.00%,

6/1/29 (3)

5,710‌

4,768‌

DISH

DBS,

7.375%,

7/1/28

7,345‌

4,995‌

DISH

Network,

11.75%,

11/15/27 (3)

894‌

906‌

Millennium

Escrow,

6.625%,

8/1/26 (3)

2,975‌

1,986‌

Radiate

Holdco,

6.50%,

9/15/28 (3)

7,325‌

3,479‌

Sinclair

Television

Group,

4.125%,

12/1/30 (3)

5,595‌

4,336‌

Urban

One,

7.375%,

2/1/28 (3)

5,155‌

4,562‌

32,461‌

Real

Estate

2.8%

Brookfield

Property

REIT,

4.50%,

4/1/27 (3)

4,770‌

4,084‌

Outfront

Media

Capital,

4.25%,

1/15/29 (3)

5,040‌

4,145‌

VICI

Properties,

4.125%,

8/15/30 (3)

4,775‌

4,125‌

12,354‌

Retail

7.8%

Bath

&

Body

Works,

5.25%,

2/1/28

3,605‌

3,366‌

Bath

&

Body

Works,

6.625%,

10/1/30 (3)

1,146‌

1,086‌

eG

Global

Finance,

6.75%,

2/7/25 (3)

6,985‌

6,287‌

LSF9

Atlantis

Holdings,

7.75%,

2/15/26 (3)

9,042‌

7,912‌

Michaels,

7.875%,

5/1/29 (3)

6,195‌

4,677‌

T.

ROWE

PRICE

U.S.

High

Yield

Fund

4

Par/Shares

$

Value

(Amounts

in

000s)

‡

NMG

Holding,

7.125%,

4/1/26 (3)

3,355‌

3,229‌

Victoria's

Secret,

4.625%,

7/15/29 (3)

4,523‌

3,675‌

Yum!

Brands,

3.625%,

3/15/31

4,855‌

4,060‌

34,292‌

Services

3.0%

PECF

USS

Intermediate

Holding

III,

8.00%,

11/15/29 (3)

5,955‌

4,184‌

Staples,

7.50%,

4/15/26 (3)

3,580‌

3,186‌

White

Cap

Parent,

(8.250%

Cash

or

9.00%

PIK),

8.25%,

3/15/26 (3)

(4)

6,225‌

5,867‌

13,237‌

Technology

&

Electronics

3.7%

CommScope,

8.25%,

3/1/27 (3)

5,271‌

4,480‌

Entegris,

3.625%,

5/1/29 (3)

4,708‌

3,902‌

ION

Trading

Technologies,

5.75%,

5/15/28 (3)

4,685‌

3,795‌

Veritas

U.S.,

7.50%,

9/1/25 (3)

5,355‌

4,123‌

16,300‌

Telecommunications

5.5%

Consolidated

Communications,

6.50%,

10/1/28 (3)

5,680‌

4,147‌

Frontier

Communications

Holdings,

5.875%,

11/1/29

2,615‌

2,095‌

Frontier

Communications

Holdings,

6.00%,

1/15/30 (3)

2,480‌

1,981‌

Frontier

Communications

Holdings,

6.75%,

5/1/29 (3)

505‌

422‌

LCPR

Senior

Secured

Financing,

6.75%,

10/15/27 (3)

1,823‌

1,686‌

Level

3

Financing,

3.625%,

1/15/29 (3)

5,800‌

3,719‌

Northwest

Fiber,

4.75%,

4/30/27 (3)

5,215‌

4,570‌

Telesat

Canada,

6.50%,

10/15/27 (3)

3,900‌

1,170‌

Viasat,

6.50%,

7/15/28 (3)

5,650‌

4,174‌

23,964‌

Transportation

2.8%

American

Airlines,

5.75%,

4/20/29 (3)

5,640‌

5,358‌

U.S.

Airways

PTT,

Series 2013-1,

Class

A,

3.95%,

11/15/25

979‌

928‌

VistaJet

Malta

Finance,

6.375%,

2/1/30 (3)

6,795‌

5,962‌

12,248‌

Utility

1.9%

Clearway

Energy

Operating,

3.75%,

2/15/31 (3)

5,035‌

4,072‌

Vistra,

VR,

8.00% (3)(5)(6)

2,245‌

2,166‌

Vistra

Operations,

5.625%,

2/15/27 (3)

2,381‌

2,256‌

8,494‌

Total

Corporate

Bonds

(Cost

$459,073)

388,803‌

PREFERRED

STOCKS

1.3%

Energy

0.7%

Crestwood

Equity

Partners,

9.25% (5)

301‌

2,765‌

2,765‌

T.

ROWE

PRICE

U.S.

High

Yield

Fund

5

Par/Shares

$

Value

(Amounts

in

000s)

‡

Financial

Services

0.6%

Ladenburg

Thalmann

Financial

Services,

6.50%,

11/30/27

152‌

2,656‌

2,656‌

Total

Preferred

Stocks

(Cost

$4,842)

5,421‌

SHORT-TERM

INVESTMENTS

3.0%

Money

Market

Funds

3.0%

T.

Rowe

Price

Government

Reserve

Fund,

4.60% (7)(8)

13,177‌

13,177‌

Total

Short-Term

Investments

(Cost

$13,177)

13,177‌

Total

Investments

in

Securities

98.9%

(Cost

$507,020)

$

432,902‌

Other

Assets

Less

Liabilities

1.1%

4,983‌

Net

Assets

100.0%

$

437,885‌

T.

ROWE

PRICE

U.S.

High

Yield

Fund

6

‡

Par/Shares

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

February

28,

2023.

The

interest

rate

for

unsettled

loans

will

be

determined

upon

settlement

after

period

end.

(3)

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

$351,973

and

represents

80.4%

of

net

assets.

(4)

Security

has

the

ability

to

pay

in-kind

or

pay

in

cash.

When

applicable,

separate

rates

of

such

payments

are

disclosed.

(5)

Perpetual

security

with

no

stated

maturity

date.

(6)

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.

(7)

Seven-day

yield

(8)

Affiliated

Companies

1M

TSFR

One

month

term

SOFR

(Secured

overnight

financing

rate)

1M

USD

LIBOR

One

month

USD

LIBOR

(London

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)

FRN

Floating

Rate

Note

PIK

Payment-in-kind

PTT

Pass-Through

Trust

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

U.S.

High

Yield

Fund

7

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

nine

months

ended

February

28,

2023.

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,

4.60%

$

—‌#

$

—‌

$

235‌+

Supplementary

Investment

Schedule

Affiliate

Value

05/31/22

Purchase

Cost

Sales

Cost

Value

02/28/23

T.

Rowe

Price

Government

Reserve

Fund,

4.60%

$

9,350‌

¤

¤

$

13,177‌^

#

Capital

gain

distributions

from

underlying

Price

funds

represented

$0

of

the

net

realized

gain

(loss).

+

Investment

income

comprised

$235

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

$13,177.

T.

ROWE

PRICE

U.S.

High

Yield

Fund

Unaudited

Notes

to

Portfolio

of

Investments

8

T.

Rowe

Price

U.S.

High

Yield

Fund (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 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.

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)

T.

ROWE

PRICE

U.S.

High

Yield

Fund

9

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

factors

such

as,

but

not

limited

to,

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.

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

T.

ROWE

PRICE

U.S.

High

Yield

Fund

10

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.

Valuation

Inputs

The

following

table

summarizes

the

fund’s

financial

instruments,

based

on

the

inputs

used

to

determine

their

fair

values

on

February

28,

2023

(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

the 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

$

—‌

$

414,304‌

$

—‌

$

414,304‌

Preferred

Stocks

2,765‌

2,656‌

—‌

5,421‌

Short-Term

Investments

13,177‌

—‌

—‌

13,177‌

Total

$

15,942‌

$

416,960‌

$

—‌

$

432,902‌

1

Includes

Bank

Loans

and

Corporate

Bonds.

T.

ROWE

PRICE

U.S.

High

Yield

Fund

11

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.

F1106-054Q3

02/23

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