Pepper Group has priced its second A$1 billion non-conforming RMBS issue, to be known as the Pepper Residential Securities Trust No 21. The transaction is Pepper's third securitisation for the year, and has been closed four months after the company priced a similarly sized and structured issue. In a media release, Pepper said strong demand from both new and repeat investors saw the transaction upsized from its original size of A$700 million, with the issue being supported by 29 separate investors from the US, Australia, Europe and Asia. The pricing spreads were not disclosed by the issuer for any tranches.Pepper Group was assisted in this transaction by National Australia Bank as arranger, with a AAA/Aaa -rated US dollar denominated tranche featuring once again for a deal the issuer said was structured "in a manner that met the needs of its growing global investor base".Citigroup Global Markets  and nabSecurities LLC were the joint lead managers, along with Commonwealth Bank of Australia and Westpac Banking Corporation as co-managers, on the US$250 million A-1u Notes. CBA, NAB and Westpac were the JLMs on the Australian dollar-denominated notes.Moody's Investors Service sent a note to clients outlining its rationale for giving final ratings to the equivalent of A$841 million in notes. The ratings agency also disclosed that the underlying mortgage portfolio has a relatively high weighted-average scheduled loan to value ratio of 71.9 per cent, with 37.0 per cent of the loans with a scheduled LTV ratio above 80 per cent.Other key features of the collateral pool listed by Moody's:•    around 29.5 per cent of the mortgage loans in the portfolio were granted to borrowers with prior credit impairment (default, judgment or bankruptcy);•    around 34.5 per cent of the loans were extended on an alternative documentation (alt doc) basis; and•    the portfolio has a low weighted-average seasoning of 8.1 months, with 85.7 per cent of loans originated in the last six months.The transaction settled on 31 July. Pepper said it has now, "since inception", issued the equivalent of over A$13.2 billion of RMBS across 28 non-conforming and prime RMBS issues.