Bond investments shifting in tough economy - NBC Right Now/KNDO/KNDU Tri-Cities, Yakima, WA |

Bond investments shifting in tough economy

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With the recession causing a big headache for financial advisors, shifts are bound to happen in the money market.

This time analysts have seen shifts in investment bonds.

"High yields this last year had returns as high as 60 percent or higher, so what we do is we're looking for the transition of those yield spreads and that's where the opportunities are," Financial Management's Erik Pielstick said.

Those opportunities have veered from low interest rate, low risk treasury bonds. Now with people looking for a bigger profit, Pielstick says things have changed. 

"There's a big gap or spread between treasuries and high yield bonds," he said. "Right now high yield bonds, even though they're a riskier investment, the amount of yield or interest that's available more than makes up for the risk that's there, which makes them very attractive right now." 




However, even with the changes in the market, Pielstick says it's important to talk with your financial advisor before deciding on any big or permanent changes to your portfolio.