Pepper RMBS the biggest non-conforming RMBS since the GFC 10 June 2015 3:45PM John Kavanagh Pepper Australia has completed the biggest issue of non-conforming residential mortgage-backed securities since the financial crisis, raising A$550 million.Pepper Residential Securities Trust No. 14 included a US dollar tranche. Pepper will pay 33 basis points over one-month Libor on the US$250 million of notes, which have a weighted average life of one year.Pricing on the A$61 million of A1-a notes, which have a weighted average life of 2.3 years, was 105 bps over the one-month bank bill swap rate.Pricing on the $56.1 million of A2 notes, which have a weighted average life of 2.3 years, was 135 bps over the swap rate.Pricing on the $53.9 million of B notes, which have a weighted average life of 4.2 years, was 200 bps over the swap rate.Pricing on the C, D, E, F and G notes was not disclosed.Pepper last issued non-conforming RMBS that included a US dollar tranche in April last year. In that issue it paid a margin of 35 bps on the US notes and a margin of 110 bps on the A1-a notes.Pepper said in a statement that 15 investors participated in the transaction, with overseas investors taking up 71.2 per cent of the deal and non-bank investors taking 91.8 per cent.In order to satisfy European minimum retention requirements, Pepper will retain a minimum of five per cent of each tranche in the structure.