A combination of powder metallurgy and wire drawing techniques was used to prepare composite materials consisting of fine iron fibers in a 5% Sn bronze matrix. In addition to being ferromagnetic, the materials have excellent mechanical properties and corrosion resistance. Property data are reported on alloys containing 2.0, 5.6, 9.9, and 14.3 vol % Fe. The 9.9 vol % Fe alloy, after 99.9+% reduction in area, has a coercive force of 320 Oe, a remanent induction of 1800 G, and a hysteresis loop squareness, Ir/Is=0.85. The tensile strength of the same alloy is 156 000 psi (1077 MN/m2) and its corrosion rate in a solution of 5% NaCl in H2O is not measurably different from the bronze matrix material. The magnetic and mechanical properties are easily controlled by varying the amount of cold working. The magnetic properties attained are within the range of applicability for magnetic recording, and with modest improvements in properties, the alloys could be used in other applications for hard magnetic materials.