People's Choice Credit Union completed its first issue of residential mortgage-backed securities for 2012 yesterday, when it priced a A$450 million issue.People's Choice will pay 140 basis points over the one-month bank bill swap rate on the $414 million A notes of Light Trust No. 4 RMBS. The A notes have a weighted average life of 3.2 years.Pricing on the $22.5 million of AB notes, which have a weighted average life of 5.7 years, is 295 basis points over swap.The A and AB notes have expected ratings of AAA from Standard & Poor's and Fitch. Pricing on the B1 and B2 notes was not disclosed.The Australian Office of Financial Management had offered to invest in the issue but because of demand from other investors there was no allocation to the AOFM.Pricing was a touch higher than for other recent issues. For example, ING Direct paid 135 basis points over swap on the $550 million A2 tranche of the IDOL Trust Series 2012-2, which was issued in September.And ME Bank paid 135 basis points over swap on the $664 million A1 tranche of the SMHL Securitisation Fund 2012-2, also issued in September.The IDOL and SMHL tranches have shorter terms (weighted average lives of 2.7 years and 2.4 years, respectively) compared with 3.2 years for Light Trust's A notes. This may account for the wider margin.Westpac Institutional Bank was the arranger of the issuer, and WIB and National Australia Bank were joint lead managers.