Bendigo and Adelaide Bank has raised A$500 million of funding in the residential mortgage-backed securities market, with pricing that is below the margins it paid on the two deals it did last year.The bank will pay 90 basis points over the one-month bank bill swap rate on the $460 million A tranche of the transaction, Torrens Series 2014-1. The tranche has a weighted average life of 3.4 years.Bendigo and Adelaide raised $850 million in February last year and $500 million in June through RMBS issues. In both cases it paid 95 bps over the swap rate on the A tranches.In the latest deal, pricing on the $30 million AB tranche, which has a weighted average life of 5.9 years, is 160 bps over swap.Pricing on the $7.5 million B1 tranche, which has a weighted average life of 5.9 years, is 245 bps over swap. Pricing of the $2.5 million B2 tranche, which has a weighted average life of 5.9 years, is 290 bps over swap.The bank said that 17 investors participated in the transaction.The bank attracted investors across the capital structure of the issue and sold all tranches. Having sold the whole capital structure, Bendigo and Adelaide will not have to hold capital to support the loans in the asset pool.Bendigo and Adelaide chief executive, Mike Hirst, said in a statement: "This transaction provides capital management benefits for the bank."