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Pepper completes fifth securitisation this year

Pepper Money has priced a A$500 million issue of residential mortgage-backed securities – its fifth public securitisation transaction this year.

The issue, PRS 33, is backed by a mix of prime and non-conforming mortgages. Pepper Money chief executive Mario Rehayem said there was plenty of investor support for the company’s securitisation program.

Pepper paid a margin of 115 basis points over the one-month bank bill swap rate on the A1-s notes, worth $140 million and with a weighted average life of 0.6 years.

Pricing on the A1-a notes, worth $260 million and with a weighted average life of three years, was 175 bps over none-month BBSW.

Pricing on the A2 notes, worth $49.5 million and with a weighted average life of four years, was 240 bps over one-month BBSW.

Pricing on the B to F notes was in a range from 290 bps to 750 bps.

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