Consumers, bankers and Wall Street investors are scrambling for safer ways to borrow and invest money as the mortgage-related credit squeeze ripples through the economy.

Stocks are down, the bond market is bouncy, and credit is more expensive. That's a tough scenario, given the national economy's slide toward recession. But there are silver linings.

Thursday, four North Carolina money managers will discuss strategies for investing amid the economic downslide. Their panel discussion is part of the Council for Entrepreneurial Development's 25th Annual Venture Conference. Here is a preview, based on phone interviews with staff writer Frank Norton.

On alternatives to U.S. stocks

Mark W. Yusko, co-founder, president and chief investment officer, Morgan Creek Capital Management of Chapel Hill, and former chief investment officer, UNC-Chapel Hill:

Assets with long-term growth prospects, such as real estate, private equity and venture capital, are good places to put your money this year.

Buyout funds specializing in small companies or funds with expertise in foreign markets such as Brazil, Russia, India and China are also potentially good bets this year. The underlying value of such assets extends well beyond the current business cycle. But be prepared to buy and hold for several years.

On raising capital

James Mason, managing partner, Parish Capital, Chapel Hill:

It's business as usual for investment funds with solid track records and respected managers. But lesser-known players will face a tough year raising money.

"There's a general aversion to newer groups right now," Mason said. "Add to that the uneasiness across all markets, and it's going to be difficult for them."

On bargains

Sallie Shupping Russell, managing director, BlackRock, Durham:

"Right now is a good time to look at injured assets whose pricing has becoming inefficient. Look at distressed securities, the mortgage packages, there may be some opportunities to go ahead and get a good price there. And there are some very good assets in there at attractive prices that are going to come out OK."

On stocks

Barnes Hauptfuhrer, CEO, Chapter IV Investors, Charlotte:

Look for companies that got hammered in the subprime mess but are otherwise sound and well-managed. A good example is Washington Mutual, which got $7 billion from a group of investors after losses on subprime loans eliminated three quarters of its market value.

"The investors are getting 25 percent of an otherwise solid bank that's been damaged by a bad portfolio of California loans."