Strong investor demand for mortgage-backed securities has resulted in two issuers, La Trobe Financial and Pepper Money, reporting their best pricing since the 2008 financial crisis on their latest deals.

La Trobe Financial completed its second issue of residential mortgage-backed securities for the year, raising A$1.25 billion of funds. The deal was upsized from $750 million at launch.

The underlying mortgage pool is 65 per cent loans to self-employed borrowers and 14 per cent “super-prime” self-managed super fund investment loans.

The A1 notes, worth A$975 million and with a weighted average life of 2.6 years, were priced at a margin of 80 basis points over the one-month bank bill swap rate.

The $138.7 million of A2 notes, with a weighted average life of 2.6 years, were priced at a margin of 105 bps. The $88.7 million of B notes, with a weighted average life of 4.2 years, were priced at a margin of 145 bps.

La Trobe said it has 53 active holders of its paper.

Pepper Money completed a non-conforming transaction, PRS30, raising $850 million of funds. It is Pepper’s third public securitisation this year, providing the company with a total of $2.3 billion.

The A1 notes, worth $637.5 million, were priced at the tightest margin Pepper has priced since before for 2008 financial crisis for a non-conforming deal with a similar tenor. The notes, which have a weighted average life of 2.3 years, were priced at a margin of 80 basis points over the one-month bank bill swap rate.

The $106.3 million of A2 notes, with a weighted average life of 2.3 years, were priced at 100 bps over BBSW. The $47.5 million of B notes, with a weighted average life of four years, were priced at a margin of 140 bps.