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The Primary Dealer Credit Facility

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  • Antoine Martin
  • Susan McLaughlin

Abstract

On March 17, 2020, the Federal Reserve announced that it would re-establish the Primary Dealer Credit Facility (PDCF) to allow primary dealers to support smooth market functioning and facilitate the availability of credit to businesses and households. The PDCF started offering overnight and term funding with maturities of up to ninety days on March 20. It will be in place for at least six months and may be extended as conditions warrant. In this post, we provide an overview of the PDCF and its usage to date.

Suggested Citation

  • Antoine Martin & Susan McLaughlin, 2020. "The Primary Dealer Credit Facility," Liberty Street Economics 20200519, Federal Reserve Bank of New York.
    • Handle: RePEc:fip:fednls:88005
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    References listed on IDEAS

    as
    1. O'Hara, Maureen & Zhou, Xing (Alex), 2021. "Anatomy of a liquidity crisis: Corporate bonds in the COVID-19 crisis," Journal of Financial Economics, Elsevier, vol. 142(1), pages 46-68.
    2. Tobias Adrian & Christopher R. Burke & James J. McAndrews, 2009. "The Federal Reserve's Primary Dealer Credit Facility," Current Issues in Economics and Finance, Federal Reserve Bank of New York, vol. 15(Aug).
    3. Lucinda Brickler & Adam Copeland & Antoine Martin, 2011. "Everything You Wanted to Know about the Tri-Party Repo Market, but Didn't Know to Ask," Liberty Street Economics 20110411, Federal Reserve Bank of New York.
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    More about this item

    Keywords

    primary dealer credit facility; Federal Reserve; market functioning; COVID-19;
    All these keywords.

    JEL classification:

    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit

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