HSBC Bank Australia has raised A$1 billion of funding, following the completion last week of an issue of residential mortgage-backed securities, Lion Series 2020-1 Trust.

The issue includes $920 million of A1 notes, which have a weighted average life of 2.8 years. The notes were priced 92 basis points over the one-month bank bill swap rate, which is a much tighter margin than the pricing of comparable tranches in other recent deals.

Other issuers have only been able to get that sort of pricing on short-dated notes with tenors of less than a year.

The $30 million of A2 notes, which have a weighted average life of 6.4 years, were priced at 165 bps over BBSW.

The $27 million of B notes, which have a weighted average life of 6.4 years, were priced at 205 bps over BBSW.

And the $10 million of C notes, which have a weighted average life of 6.4 years, were priced at 250 bps over BBSW.

Just over half of the issue was placed with real money investors. Around a third of buyers were domestic and the balance offshore.