HARTFORD, Conn. ( TheStreet) -- Joe Portera, manager of the Hartford Strategic Income Fund ( HSNAX), says China probably will continue to buy U.S. Treasury bonds despite the growing rift between the superpowers.The $358 million bond mutual fund has returned 29% over the past year. Welcome to TheStreet.com's Fund Manager Five Spot, where America's top mutual fund managers give their best bond picks and views on the market during five questions. What's your view of the economy? Portera: We have a low probability of a double-dip
Why do you like commercial mortgage-backed bonds? Portera: The commercial mortgage-backed security (CMBS) market has been very beaten up, very maligned. We don't view it necessarily as a risky asset class. It was part of the bubble, things got overvalued, people got silly in the loans they were making in terms of the loan to value. There is still negative headline risk but we think the market has priced in way too much bad news still. So we are finding incremental value in the triple-A, which is the highest part of the capital structure in the CMBS market. You're a big fan of corporate bonds -- which sector is the most attractive? Portera: With any type of bond fund, if you are looking for incremental income you have to look at corporate bonds. Our biggest weighting is in the high-yield sector. Not counting financials, investment-grade corporates are back to where they were pre-Lehman. So we think the better relative value right now is in high yield, and we think there is still some room to run there in terms of spread compression versus Treasuries. -- Reported by Gregg Greenberg in New York.