Primary Dealer Credit Facility
E560321
The Primary Dealer Credit Facility was a crisis-era lending program through which the Federal Reserve provided short-term funding directly to primary dealers to support liquidity in the financial system.
Observed surface forms (1)
| Surface form | Occurrences |
|---|---|
| Primary Dealer Credit Facility (PDCF) | 1 |
Statements (47)
| Predicate | Object |
|---|---|
| instanceOf |
Federal Reserve emergency lending program
ⓘ
lending facility ⓘ |
| administeredBy | Federal Reserve Bank of New York NERFINISHED ⓘ |
| appliesToJurisdiction | U.S. dollar funding markets ⓘ |
| beneficiaryType | broker-dealers designated as primary dealers ⓘ |
| collateralType |
corporate securities
ⓘ
investment-grade securities ⓘ municipal securities ⓘ securitized debt ⓘ tri-party repo eligible collateral ⓘ |
| country |
United States of America
ⓘ
surface form:
United States
|
| createdBy | Board of Governors of the Federal Reserve System NERFINISHED ⓘ |
| createdDuring | 2007–2009 financial crisis ⓘ |
| createdInResponseTo | Bear Stearns liquidity crisis ⓘ |
| crisisRole | backstop liquidity provider to primary dealers ⓘ |
| endTime |
2010
ⓘ
2010-02-01 ⓘ |
| fundingMechanism | discount window–like lending to primary dealers ⓘ |
| hasParticipantType | primary dealers ⓘ |
| hasPolicyGoal |
to prevent disorderly deleveraging by primary dealers
ⓘ
to reduce counterparty risk concerns in secured funding markets ⓘ |
| interestRateBasis | primary credit rate ⓘ |
| isPartOf | Federal Reserve liquidity facilities NERFINISHED ⓘ |
| legalAuthority | Section 13(3) of the Federal Reserve Act NERFINISHED ⓘ |
| lendingType |
overnight loans
ⓘ
short-term funding ⓘ |
| location | New York, New York NERFINISHED ⓘ |
| operatedBy | Federal Reserve NERFINISHED ⓘ |
| purpose |
to provide short-term funding to primary dealers
ⓘ
to stabilize funding markets during financial stress ⓘ to support liquidity in the financial system ⓘ |
| reintroduced | 2020-03-17 ⓘ |
| reintroducedDuring | COVID-19 pandemic ⓘ |
| relatedTo |
Commercial Paper Funding Facility
NERFINISHED
ⓘ
Primary Dealer ⓘ Term Asset-Backed Securities Loan Facility NERFINISHED ⓘ Term Securities Lending Facility NERFINISHED ⓘ |
| riskManagement |
haircuts on collateral
ⓘ
recourse to primary dealer counterparties ⓘ |
| sector | financial markets ⓘ |
| startTime |
2008
ⓘ
2008-03-16 ⓘ |
| status | inactive outside crisis periods ⓘ |
| supervisedBy | Federal Reserve Board NERFINISHED ⓘ |
| supportsMarket |
Treasury securities market
ⓘ
agency securities market ⓘ repurchase agreement market ⓘ |
Referenced by (2)
Full triples — surface form annotated when it differs from this entity's canonical label.
this entity surface form:
Primary Dealer Credit Facility (PDCF)