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 recession . What we are focusing on is the consumer. The consumer has been the laggard in this recovery and that's atypical for postwar recoveries. So what we are looking for is labor-market stability and growth, which will lead to a broadening of the economic recovery.

Is there a bubble in Treasuries?

Portera: I wouldn't say there is a bubble in Treasuries, but you can argue that they are slightly overvalued. We don't see inflation being much of a scare so, for the most part, we've been on either side of neutral duration. That said, we have been underweight our benchmark in Treasuries.

Will tough talk between China and the U.S. hurt the Treasury market?

Portera: The Chinese own an awful lot of Treasuries. I think they will continue to buy them incrementally. They realize this relationship is important to both countries. The rhetoric will continue. You have to separate the politics from the economics, and the economic reality is that the Chinese will continue to buy Treasuries.

We don't think they are going to revalue their currency more than 5%. If they were to have a massive revaluation, in the magnitude of 10% to 20%, then they may slow down their Treasury purchases. But it's kind of like the ugly contest as to where you put your money. Europe's in the middle of a fiscal crisis because of what is going on in the southern part of the European Monetary Union. The U.K. is probably too small a market for the Chinese. So, at the end of the day, I think the Chinese are going to sit down and say 'Where are we going to recycle these surpluses?' And the answer will be 'Treasuries.'

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.
Before joining TheStreet.com, Gregg Greenberg was a writer and segment producer for CNBC's Closing Bell. He previously worked at FleetBoston and Lehman Brothers in their Private Client Services divisions, covering high net-worth individuals and midsize hedge funds. Greenberg attended New York University's School of Business and Economic Reporting. He also has an M.B.A. from Cornell University's Johnson School of Business, and a B.A. in history from Amherst College.

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