Investors appear to have no concerns about the prospects for non-bank mortgage lenders as interest rates continue to rise, this week subscribing for a total of A$3 billion of residential mortgage-backed securities offered by Liberty Financial, ColCap Financial and Pepper Money. Pricing was consistent with issues towards the end of last year, with margins a touch wider in Pepper’s case and narrower for ColCap. Liberty upsized its issue, Liberty Series 2023-1, from $600 million to $1 billion; ColCap upsized its transaction, Triton Bond Trust 2023-1, from $500 million to $1 billion; and Pepper upsized PRS 35 from $500 million to $1 billion. Liberty priced its A1a notes, worth $250 million and with a weighted average life of 0.3 years, at a margin of 115 basis points over the one-month bank bill swap rate. The A1b notes, worth $500 million and with a weighted average life of 2.5 years, were priced at a margin of 165 bps over one-month BBSW and the A2 notes, worth $159 million and with a weighted average life of 3.5 years, were priced at a margin of 240 bps. ColCap reported that its senior notes, A1-AU, were priced at a margin of 140 bps over one-month BBSW. While the Liberty and ColCap issues were backed by prime mortgages, the Pepper issue had a mix of prime and non-conforming loans as collateral. The A1-s notes were priced at a margin of 120 bps, the A1-a notes at 170 bps and the A2 notes at 255 bps. The B through F notes were priced in a range from 325 to 725 bps. Pepper Money treasurer Anthony Moir said: “Our ability to upsize this transaction is very encouraging and highlights a significant improvement in credit market conditions.”