On April 8 2026, T. Rowe Price Group, Inc. announced the launch of its first collateralized loan obligation, ROWE CLO 2026‑1 Ltd., issuing $403.59 million of securities backed primarily by broadly syndicated first‑liability loans.
The move marks a strategic shift for the firm, which has long invested in leveraged credit and bank loans. By becoming a CLO issuer, T. Rowe Price can offer higher‑income, floating‑rate exposure to institutional investors and deepen its fixed‑income platform. The new vehicle is managed by T. Rowe Price Associates, Inc., and is positioned as an extension of the company’s established bank‑loan franchise and securitized‑investment team.
T. Rowe Price’s fixed‑income assets under management totaled $335 billion as of February 28 2026, including $40 billion in leveraged credit and $17 billion in bank loans and CLO tranche investments. The CLO launch adds to this portfolio and is expected to generate additional fee income and support consistent asset growth.
"CLO management is a natural development from our deep experience investing in leveraged credit," said Eric Veiel, chief investment officer and head of Global Investments. "We believe this move will expand our relationships with clients globally, across both debt and equity tranches, by meeting growing demand for these securities." Arif Husain, chief investment officer and head of Global Fixed Income, added, "We aim to return to the market as a consistent and frequent CLO issuer. We have the knowledge and resources to be a top‑tier manager of CLO assets, and we believe our team is well‑positioned to pursue investment excellence and strong outcomes for clients within the CLO structure."
The CLO market has broadened since the global financial crisis, with increased participation from asset managers. However, the quality of underlying bank loans has deteriorated, with a rise in covenant‑lite loans. T. Rowe Price’s approach emphasizes rigorous fundamental analysis and active management, leveraging its securitized debt and high‑yield credit teams. The firm’s CLO team operates independently from Oak Hill Advisors, which it acquired in 2021, ensuring distinct operations in the CLO market.
The launch positions T. Rowe Price to capture a larger share of the higher‑income fixed‑income space, potentially boosting fee income and reinforcing its reputation as a comprehensive fixed‑income provider. By issuing CLOs, the firm can deepen client relationships and respond to growing demand for structured credit products while maintaining its core expertise in leveraged credit and bank loans.
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