The week started in the domestic market with the pricing of the second AOFM-backed RMBS issue, this time from Members Equity Bank via SMHL Securitisation Fund 2008-2. Again a total of only $600 million was raised (as was the result with FirstMac on the Friday before) but the pricing on the $572 million of Class A1 'AAA' rated notes appeared a little better at 130 basis points over the bank bill rate. Pricing on the Class A2, 'AAA' rated notes was not disclosed but with a tranche size of only $14 million, it would have had little impact on the weighted average margin.AOFM went on to announce that Resimac and Challenger Mortgage Management have been advised of AOFM's interest in investing up to $500 million in RMBS issues that they have proposed. The deals should be priced by the end of December. Challenger clearly remains optimistic or ambitious. Standard & Poor's has already assigned preliminary ratings to the proposed issue by Challenger Millennium Series 2008-2 Trust, which has been sized at $750 million. Perhaps market conditions will have improved by the end of December. The $422 million of Class A, 'AAA' rated notes issued by Challenger Millennium Series 2008-1 Trust in mid-September were priced at 130 bps over bank bills.AOFM also advised that it expects to call for a second round of RMBS issuance proposals early next month with a closing date for submissions of around mid-January. The AOFM has been allocated $8 billion to invest in sponsored RMBS issues. At this rate it will be able to invest in 16 transactions. This would appear to compare favourably with seven or eight RMBS issues that have been sold to investors so far this year without AOFM support. As an aside, there was an interesting job ad in Friday's Australian Financial Review. An unnamed but a well capitalised, specialist investor, based in Canberra is looking for somebody who knows something about RMBS.