Liberty Financial priced A$300 million in mortgage-backed securities on Friday, the second transaction supported by non-conforming loans to make it to market this year.Through the Liberty Series 2012-1 Trust the specialist financier sold the securities in nine tranches, with pricing disclosed of the two senior tranches that represents a little less than half of the value. Liberty sold the $87.3 million Class A1 notes, with a weighted average life of 0.5 years, at 70 basis over bank bills. The Class A2 tranche, valued at $60 million each and with a WAL of 1.7 years Liberty priced at 165 bps over. Pricing on the remaining seven tranches of notes was not disclosed. Two of the investors in the securities are likely to be retail funds established by Liberty for the purpose.The financier established the first of those, the Liberty Term Investment Fund, in October 2010. Liberty provided seed funding of $10 million to this fund at the time. Funds under management increased to $12.5 million by March 2012. Only six per cent of this fund is invested in residential mortgage-backed securities with the rest invested in commercial RMBS and vehicle loans.Eight weeks ago Liberty established a second fund, the Liberty High Yield Fund. Liberty kicked in a seed investment of $1 million to this fund.According to the product disclosure statement, "initially, all of the fund's assets will be invested in interest rate securities issued by related parties" of Liberty, though at this stage this second Liberty fund does not have much to invest.