Liberty's second RMBS for the year raises more at a lower cost 17 November 2014 4:48PM John Kavanagh Liberty Financial completed its second issue of non-conforming residential mortgage-backed securities for the year on Friday, raising more funds at a tighter margin with the second effort.Liberty Series 2014-2 RMBS was upsized from A$400 million at launch last week to $500 million, compared with $300 million issued in April.Pricing on the $350 million of A1 notes, which have a weighted average life of 2.2 years, was 100 basis points over the one-month bank bill swap rate.Pricing on the $75 million of A2 notes, which have a weighted average life of 2.2 years, was 135 bps over the swap rate.Pricing on the B, C, D, E, and F notes was not disclosed.Back in April, Liberty paid a margin of 115 bps on the A1 notes of Liberty Series 2014-1 RMBS and a margin of 155 bps on the A2 notes.The assets backing the latest transactions were a mix of prime and non-prime loans. Loans to borrowers with impaired credit histories made up 17.4 per cent of the total and 12.5 per cent were "alternative documentation" loans.The average loan-to-valuation ratio of loans in the pool is 72.4 per cent and seasoning is 22 months.