Pepper Money has priced its fourth public securitisation for the year, issuing A$675 million of mortgage-backed securities in the latest transaction. PRS 37 is backed by a mix of prime and non-conforming mortgages and the funds will be used to support growth in Pepper’s non-conforming mortgage business. Pepper has raised a total of $2.3 billion of funding in public securitisation deals this year. Pepper chief executive Mario Rehayem said there was plenty of demand for the company’s paper. Pricing on the A notes, worth $607.5 million and with a weighted average life of 2.3 years, was 175 basis points over the one-month bank bill swap rate. Pricing on the B notes, worth $24.8 million and with an average life of four years, was 335 bps over one-month BBSW. Pricing on the C, D, E and F notes was in a range from 400 bps to 900 bps. Pricing on the G1 and G2 notes was not disclosed. Earlier this year, Pepper announced that it had shifted the focus of its lending away from prime to non-conforming mortgages and asset finance during the second half of 2022, as it targeted higher yields to offset rising funding costs. Other non-bank mortgage lenders have adopted a similar approach and investors have been happy to support the increase in high-yielding non-conforming issuance.