The Federal Reserve Board said that starting in July, certain high-quality CMBS issued before Jan. 1 or legacy CMBS will become eligible collateral under the Term Asset-Backed Securities Loan Facility (TALF).

The Board authorized the TALF on November 24, 2008, under section 13(3) of the Federal Reserve Act. Under the TALF, the Federal Reserve Bank of New York (FRBNY) has extended loans secured by triple-A-rated newly issued ABS. These are backed by certain consumer and business loans and leases. On May 1, the Board announced it would expand the range of acceptable TALF collateral to cover newly issued CMBS starting with the June subscription.

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