Pepper Money has completed its fourth public securitisation for the year, raising A$850 million with the latest deal and $3.2 billion so far in 2021. Margins have tightened through the year.

Pepper Money I-Prime 2021-2 was upsized from $700 million at launch and the A1 notes were priced at a margin of 70 basis points over the one-month bank bill swap rate. The A1 notes are worth $722.5 million and have a weighted average life of 2.6 years.

The $79.1 million of A2 notes, which have a weighted average life of 4.4 years, were priced at 110 bps over one-month BBSW.

The $14.4 million of B notes, which have a weighted average life of 4.4 years, were priced at 130 bps over BBSW.

When I-Prime 2021-1 was issued in February, the margin on the A1 notes was 80 bps and pricing on the A2 notes was 125 bps.

Last month, Pepper completed a non-conforming RMBS, PRS30, paying 80 bps for the A1 notes on that deal.

Pricing of the senior notes in the latest deal is the tightest margin for a Pepper RMBS since before the 2008 financial crisis.