Weak auctions for government bonds strengthen the case to buy high-grade corporate paper, says Eric Roseman. Many of the world’s top companies have stronger balance sheets than governments. And the coming tidal wave of T-bonds means corporate bond yields may never be this high again.

More from the Sovereign Society:

Are investment-grade corporate bonds the new “safe-haven” for investors?

You certainly wouldn’t think so following their worst monthly drubbing since 1980 in October. September and October sliced and diced investment-grade debt to levels unseen in more than two decades, with effective yields now at 8% compared to 3.7% for ten-year U.S. T-bonds.

Short-term Treasury bonds have been a magnet since the onset of the credit crisis. They’ve been drawing safe-haven flows from nervous investors worldwide ahead of redemptions, fund closures and panic selling since mid-September when Lehman Brothers failed. At the same time, investment-grade debt has been smashed.

The spread, or difference, between

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On Monday Stockmaster Eric Cheshier wrote an article on Yum Brands that was right on target. However,  shares were up today but are down after hours due to some margin concerns. We'll just have to see how shares trade when the market opens. Here are the notes from the call courtesy of Forbes: Fast-food company Yum Brands Inc. said Wednesday its second-quarter profit grew 4 percent as its overseas operations delivered hefty earnings that offset slumping U.S. profits dragged down by higher ...

This Thursday, 07/17/08, Yum! Brands, Inc.  (Public, NYSE:YUM) will host its Q2 Earnings Call. Yum! Brands, which owns, operates, licenses and franchises the KFC, Pizza Hut, Taco Bell, LJS and A&W brands on an international level, has fallen -12% since May first. What I like about YUM brands is its so recession proof. Where else can you get a meal for under $5? Not the grocery store these days. But their international exposure is where the growth is. One of Yum! Brands key business strategies are to drive profitable international growth. In 2007, ...

On June 5, Cramer sang the praises of Yum! Brands. How high did he say the stock would go?

While other restaurant stocks are foundering thanks to soaring oil prices and raw costs, YUM (YUM) cnbc_quoteComponent_init_getData("YUM","WSODQ_COMPONENT_YUM_ID0E2F15839609","WSODQ","true","ID0E2F15839609","off","false"); is capitalizing on new business in overseas. Cramer said the stock “blows through” $45.

In “Top Videos: Hottest-Selling Funds, Lehman & More” what type of meat does Cramer reference?

Stop Trading, Listen to Cramer!

“We’re in a situation right now that if you wanted good chicken, that you weren’t worried about because you like chicken ‘cause your diet is now pro-protein and you’re in China, the good housekeeping seal of approval is Kentucky Fried Chicken. And, Yum Brands (YUM) is moving big there… “

In the models I follow, Lehman (LEH) looks good for return potential, but its earnings momentum, price momentum and  free cash flow are lousy.

Yum Brands (YUM), on the other hand, looks pretty good. It earns high marks for earnings quality, price momentum and return potential.

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