Pepper Homeloans and its investment banks have found buyers for a pool of non-conforming, residential mortgage backed securities. Pepper yesterday said it priced a $200 million bond, sold to a group of 10 Australian investors.The $130 million, AAA senior tranche was priced at 85 basis points over the 30 day bank bill swap rate. The A2 tranche was priced at 140 basis points over swap and the A3 tranche was priced at 160 points over. Pricing of the other four tranches was not disclosed.Joint lead managers of the issue, Pepper Residential Securities Trust No 7, were Commonwealth Bank and Barclays Capital.The issue follows the trend of recent weeks, when lenders have got away small issues to local investors on wide spreads.Pepper last sold $600 million in RMBS in March; sold $750 million in two transactions in 2006 and $600 million in two transactions in 2005.