After raising a record amount of funding through the securitisation market last year, Pepper Group was back in the RMBS market this week with a A$750 million issue that was notable for lower pricing than last year’s deals.

The A1 notes in the latest deal, I-Prime 2021-1, were priced at 80 basis points over the one-month bank bill swap rate, compared with a margin of 90 bps when Pepper last issued RMBS in November.

The $637.4 million of A1 notes have a weighted average life of 2.7 years.

The $63.9 million of A2 notes, which have a weighted average life of 4.4 years, were priced at 125 bps over BBSW.

The $15 million of C notes, with a weighted average life of 4.4 years, were priced at 150 bps over BBSW. And the $12.4 million of C notes, with a weighted average life of 4.4 years, were priced at 205 bps.

Other non-bank lenders have noted that pricing in the RMBS market has come down this year.

Resimac issued $1.5 billion earlier this month, saying its pricing was the best in a decade.

Pepper’s Australian treasurer Anthony Moir said the transaction attracted new domestic and offshore investors. Commonwealth Bank was the arranger.