In the structured finance sector, Liberty Financial priced its A$126 million Australian Office of Financial Management-supported RMBS issue via Liberty PRIME Series 2009-2. It may not be coincidental that in the same week the Treasurer, Wayne Swan, announced an allocation of a further A$8.0 billion to AOFM to continue its support of the RMBS market. AOFM bought A$99.8 million of the Liberty notes on offer or 91 per cent of the senior tranches in what was a rather modest pool of mortgages. One interpretation of the pricing on this Liberty bond this is that investors are now shunning AOFM-backed RMBS issues. After enthusiastically participating in A$1.5 billion of non-AOFM backed RMBS issuance by ME Bank last month, investors may now be awaiting further such issuance at wider credit spreads and AOFM can have its 'artificially' priced deals to itself. The A$1.2 billion Class A tranche of the last ME Bank RMBS issue had a weighted average life of 2.9 years and priced at 150 bps over bank bills. The Class A3 tranche of the Liberty PRIME Series 2009-2 offering had a weighted average life of 3.34 years and priced at just 140 bps over. The differences are not great but maybe they are enough for investors.Alternatively, investors may have taken the view that there will now be many more AOFM-backed RMBS issues to come and there was no need to rush this one.As for the rest of the Liberty issue, the A$10.0 million Class A1 tranche, with a weighted average life of just 0.15 years, priced at 60 bps over bank bills. The A$45 million Class A2 tranche, with a weighted average life of 1.04 years, priced at 90 bps over with AOFM taking up A$35 million. AOFM took up the entire A$58.5 million Class A3 tranche and the A$6.3 million Class AB tranche, with a weighted average life of 3.97 years, priced at 165 bps over, with AOFM again buying all the notes.The next AOFM-backed RMBS issue via RESIMAC Premier Series 2009-2 launched on the same day. The investor response to this issue will be telling. The Resimac issue comprises: A$75 million of Class A1 notes with a weighted average life of 0.5 years and rated 'AAA/AAA' by S&P and Fitch; A$185 million of Class A2 notes with a weighted average life of 3.3 years and rated 'AAA/AAA'; A$18.3 million of Class AB notes with a weighted average life of 3.5 years and rated 'AAA/AAA'; A$8.7 million of Class B1 notes with a weighted average life of 3.1 years and rated 'AA-/AA'; and A$2.9 million of unrated Class B2 notes with a weighted average life of 5.0 years.