Non-conforming lender RedZed has raised A$150 million of funds through an issue of residential mortgage-backed securities, which were priced yesterday.The $75 million of A-1 notes, which have a weighted average life of 1.9 years, were priced at 115 basis points over the bank bill swap rate.The $22.5 million of A-2 notes, which have a weighted average life of 1.9 years, were priced at 130 bps over the swap rate.The $16.8 million of A-3 notes, which have a weighted average life of 1.9 years, were priced at 165 bps over swap.Pricing on the B through to F tranches was not disclosed.RedZed Trust Series 2014-1 is RedZed's second RMBS issue; its first was in 2011 and it raised $80 million. The company had $320 million of assets at June 30 last year. According to a Standard & Poor's presale report, RedZed specialises in lending to people who are self-employed or who self-certify their income.S&P said 28.3 per cent of the loans in the RMBS portfolio were to borrowers with unfavourable credit histories.It has been a good year for non-conforming issuers. So far, Pepper Australia has raised $500 million, Liberty Financial has raised $300 million and La Trobe Financial has raised $102 million.RedZed got good pricing when compared with more established issuers, such as Pepper. Pepper is paying 110 bps over the swap rate on the A1 notes of its recent issue, while RedZed is paying 115 bps on the equivalent notes (although RedZed's weighted average life is shorter at 1.9 years, compared with Pepper's 2.5 years).RedZed managing director Evan Dwyer said in a statement that six investors participated in the deal, with 85 per cent of the issue going to "real money" (non-financial) accounts.