The government accepted all the collateral offered for the September legacy CMBS Term ABS Loan Facility (TALF) subscription period.

For the month, 59 separate bonds were offered as collateral under the program.

Bank of America Merrill Lynch analysts believe the lack of rejections this month is a positive for the potentially TALF-eligible sector. It could also offer the market some comfort regarding purchases for the next cycle.

But, the continued lack of clarity about the Federal Reserve's risk criteria and uncertainty about a bond's acceptability have caused some investors to shy away from TALF this month, or at least limit the scale of the bonds submitted, according to analysts.

Although there were 59 distinct bonds accepted as collateral this month, 25 of these had been previously submitted as well as accepted by the New York Federal Reserve. This leaves just 34 new bonds added to the acceptance list.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.