Episode 165: Passive Investing Doesn’t Exist in Fixed Income

In this episode, Steve Boothe, Head of Global Investment Grade at T. Rowe Price, joins the podcast to share his insights on the current state of the bond market. Steve makes a bold statement—there’s no such thing as passive bond investing—and he explains why that’s the case, delving into how market structure, liquidity dynamics, and the shifting ownership landscape are transforming fixed-income markets. He also explores why recent flows into credit and equities have remained robust despite higher volatility in the treasury market, and how issuers’ ability to lock in long-term financing during lower-rate periods is shaping the supply side of corporate debt.

Steve’s conversation with Stewart Foley also covers how security selection is at the core of T. Rowe Price’s approach to navigating challenging market conditions. He discusses the firm’s views on regional banks, liquidity risks, and the interplay between private credit and corporate financing needs. Steve also highlights T. Rowe Price’s long-standing role in insurance asset management, focusing on customized solutions and the importance of understanding client-specific requirements like book yield, liquidity, and regulatory environments. This episode provides a masterclass in fixed income, unpacking complex market trends in an accessible way for insurance investment professionals.