It’s been in the news the last couple of days. Goldman Sachs Group Inc. (NYSE: GS) bankers are headed for record bonuses. The Financial Times reports that bankers’ pay in the London market is already right back to 2007 levels and going higher. Banks are poaching each others’ best staff, and are offering huge pay packages to staffers willing to make the leap.

Given the implicit government guarantees, Eric Roseman says it is likely that investors will soon start to switch from low-yielding Treasury bonds to high-grade corporate debt. The Fed’s balance sheet is now polluted by the toxic debt it has taken on from banks. And demand for Treasuries will not keep pace with the deluge of supply in the coming year. Eric says this could make investment grade corporate debt the new safe haven in bonds in 2009.

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.

It’s panic time for U.S. legislators, regulators, banks and lenders. More than $24 billion worth of adjustable-rate mortgages (ARMs) are expected to “re-set” to higher interest rates in November – boosting the likelihood of further home foreclosures.

“Investors are taking losses of up to 90% in the $1.2 trillion market for collateralized debt obligations (CDOs) tied to corporate credit,” reports Bloomberg. Much of the losses have been triggered by the failure of Lehman Brothers and Icelandic bank.

Sovereign Society’s investment director Eric Roseman says he would rather hold investment-grade corporate debt than Treasury bonds. The yield in the corporate debt market is at a multi-year high and can be easily accessed via low-cost ETFs. But Eric says it is wise to avoid financial firms, as more trouble lies in store for this sector.

Crude Hits $133; Time Warner Spins Off Cable Unit; Boeing Jettisons 750 Workers; UBS Sells Assets to BlackRock; American Airlines’ Desperate Moves; Moody’s Big Mistake; DOJ to Sue OPEC?; BOE Holds on Inflation Fears.

“Here’s Your 5-Step Checklist to Know It’s Over Before Even CNBC Does.”

“I’ve already called this credit crunch, ‘the worst financial crisis since the Great Depression’…and unfortunately, we’re not through it yet” says Eric Roseman.

It’s true the worst of this credit storm has probably passed. But banks, companies and individual investors are still facing funding pressures. That tells me the absolute bottom of this crisis has yet to arrive.