The pricing of prime non-bank mortgage-backed securities remains steady, as strong demand for Australian RMBS has underpinned healthy issuance this year.   Last week, Pepper priced its an issue of prime RMBS, raising A$750 million. It is the group’s seventh securitisation transaction this year. The A1 notes of Pepper Prime 2023-1 were priced at a margin of 130 basis points over the one-month bank bill swap rate and the A2 notes were priced at a margin of 165 bps. This is very similar to the pricing on an AFG prime issue last month. AFG raised $750 million, paying 130 bps over BBSW on the A1 notes, worth $675 million and with a weighted average life of 2.1 years. The A2 notes, worth $42 million and with a weighted average life of 3.8 years, were priced at 170 bps over the benchmark.  Non-bank lenders are paying around 25 basis points more than the big banks on the senior notes of their prime issues. Last month, Commonwealth Bank priced its second RMBS issue for the year, paying 105 bps over the one-month bank bill swap rate on the senior notes, which have a weighted average life of 3.4 years. Medallion 2023-2 RMBS raised $2 billion. CBA retained the B notes and did not disclose the pricing.