Australian Finance Group made its debut in the mortgage-backed securities market last week, with the launch of an issue by AFG Series 2013-1 Trust. The issue is backed by prime residential mortgages originated under AFG branding and consists of A$254 million of Class A notes, A$11 million of Class AB notes; A$8.5 million of Class B notes; and A$1.5 million of Class C notes.The notes priced on Friday at 120 basis points over bank bills for the Class A notes which have a weighted average life of 2.9 years, 220 bps over for the Class AB notes with a WAL of 2.4 years and 340 bps over for the Class B notes with a WAL of 4.2 years. The Class C notes have a WAL of 5 years but pricing was not disclosed.Both S&P and Fitch Ratings have assigned preliminary AAAs' ratings to the Class A and AB notes and S&P has a preliminary AA-sf rating on the Class B notes. The Class C notes are unrated.Investment loans make up 23.7 per cent of the mortgage pool and interest only loans account for 20.8 per cent of the pool.AFG said it plans to be a regular issuer of RMBS and will be back in the market in the coming months.