Got bonds? You need to do these three things now

Over the past several years, the Federal Reserve Bank has been purchasing billions of dollars in bonds every month to get cash flowing to banks and keep interest rates down. The policy is known as quantitative easing and is one of the more controversial measures taken up by Fed Chairman Ben Bernanke.

Interest rates on 10-year Treasury bonds were near 1.4% last year. Since the start of this year, the Fed has purchasing $40 billion in mortgage-backed securities and $45 billion per month in government bonds. The demand for bonds means higher prices and higher bond prices mean lower interest rates.

(Related: US Treasurys flat ahead of Fed meeting)

However, Bernanke recently hinted that the Fed will begin tapering its bond-buying program when it starts to see improved economic signs. That has led to a bond selloff as investors contemplate a world where the Fed won't gobble up as much of the bond supply as they did before.

So, what's a bond investor to do?

We talk numbers with Patrick Galley, CIO of RiverNorth Capital Management. His fund invests more than $2 billion. Most of that money goes to fixed-income closed-end funds, which are about two-thirds of all closed-end funds. Galley says there are three things bond investors should do right now.

To hear what Galley thinks bond investors should do next, watch the video above.

Follow us on Twitter: @CNBCNumbers
Like us on Facebook: