The cost of issuing residential mortgage-backed securities continues to rise for second-tier institutions. In the latest deal, Bendigo and Adelaide Bank paid 130 basis points over the one-month bank bill swap rate for the top tranche of its Torrens Series 2011-2 Trust.The A$530 million A1 tranche, which was rated AAA by both Standard & Poor's and Moody's, has a weighted average life of 2.8 years.On October 21, Bankwest announced that it was paying 125 basis points over the one-month swap rate for the $365 million A1 tranche of its Series 2011-1 Swan Trust. The tranche has a weighted average life of 2.2 years.And, a week earlier, ME Bank completed the sale of its second RMBS deal for the year - SMHL Securitisation Fund 2011-2. It is paying 125 basis points over swap for the $621.7 million A tranche, which has a weighted average life of three years.In March, ME Bank paid 100 basis points over swap for $934 million A tranche of SMHL 2011-1.In July, Bendigo and Adelaide Bank paid 105 basis points over swap for the $500 million of A2 notes in Torrens Series 2011-1 Trust (the A1 tranche was issued in yen). Another feature of the latest Bendigo and Adelaide deal was the heavy involvement of the Australian Office of Financial Management, which bought all of the $163.7 million A2 tranche and all of the $26.2 million AB tranche. Bendigo and Adelaide increased the issue from $500 million at launch to a final issue of $750 million.