Bendigo and Adelaide Bank has pulled off two significant achievements with the first local issue of residential mortgage backed securities this year. It has priced the senior tranche of the issue, Torrens Series 2013-1, at 95 basis points over the bank bill swap rate - a much tighter margin than the pricing of deals towards the end of last year. It is the best RMBS pricing for two years.Another win for the bank was that it attracted investors across the capital structure and sold all tranches. Under the Australian Prudential Regulation Authority's current interpretation of the prudential standard for securitisation (APS 120), if issuers hold the subordinate tranches they will be deemed not to have achieved sufficient credit risk transfer and will have to hold capital against the assets involved.Having sold the whole capital structure, Bendigo and Adelaide will not have to hold any capital to support the A$850 million of loans in the issue.The $790 million class A tranche, with a weighted average life of 3.6 years, was priced at 95 basis points over the one-month bank bill swap rate.In comparison, National Australia Bank paid 110 bps over swap on the top tranche of its December issue (National RMBS Trust 2012-2). In other RMBS transactions late last year, Firstmac paid 145 bps over swap on the top tranche of its December issue (Firstmac Mortgage Funding Trust 3-2012), and Bank of Queensland paid 135 bps over swap on the top tranche of its November issue (Series 2012-1E Reds Trust).The $39.1 million class AB tranche of Torrens Series 2013-1, with a weighted average life of 6.2 years, was priced at 200 bps over swap.The $17 million class B1 tranche, with a weighted average life of 6.2 years, was priced at 325 bps over swap, and the $4.25 million class B2 tranche, with a weighted average life of 6.2 years, was priced at 375 basis points over swap.Bendigo and Adelaide Bank's chief executive, Mike Hirst, said in a statement: "This transaction provides capital management benefits for the bank, as well as the obvious funding benefits."Twenty-four investors participated in the transaction. Deutsche Bank and Macquarie Bank were joint lead managers.