We've been keeping an eye on Libor in this blog, as regular readers will have noticed. There have been a few encouraging signs that the lending risk premium is starting to fall a little, but the FT today reports that the premium that has to be paid by even top-quality corprate borrowers is going stratospheric.

National Grid, for instance, which describes itself as "an extraordinarily low-risk business", issued EUR600m in 6-year bonds at a ridiculous 330 basis points above euro Libor - about seven times what it was paying before the credit crunch. (See our recent interview with Grid's FD here.)

Daimler had to pay 600bp over Libor - 20 times more than in 2005 (but perhaps bond investors have half an eye on the parlous state of Detroit).

Add to that, we read that the cost of insuring debt against default via credit default swaps (CDSs) has also reached record highs. Apparently a thing called the iTraxx Crossover index (treasury junkies will know all about this) reveals that the annual cost of insuring EUR10m of debt against default over five years is EUR 934,000 - in other words you're giving over half the value of the debt in insurance!

There's worse news: Business secretary Lord Mandelson is wagging his finger at the banks. If that doesn't get them lending again, what hope do we have?