RedZed Lending Solutions priced its third issue of residential mortgage-backed securities of 2022 last week, keeping pricing in line with its previous transaction in July.

RedZed, a specialist lender to self-employed borrowers, raised A$500 million of funding, paying a margin of 175 basis points over the one-month bank bill swap rate on the $375 million of A-1 notes, which have a weighted average life of 2.1 years.

Pricing of the A-2 notes, worth $50 million and with a weighted average life of 2.1 years, was 265 bps over one-month BBSW.

Pricing of the B notes, worth $50.5 million and with a weighted average life 3.6 years, was 360 bps over BBSW.

In July RedZed paid a margin of 175 bps on the A-1-L notes, which had a slightly longer tenor of 2.3 years, and a margin of 250 bps on the A-2 notes.

RedZed chief financial officer Chris Wilson said in a statement that credit market conditions were “challenging and volatile” but the issue had the support of real money investors across all tranches.