Primary Dealer Credit Facility (PDCF)


An overnight loan that is available to a Primary Dealer, and is structured as a repurchase agreement. The loan matures the day after it is taken, and uses the primary credit rate determined by the Federal Reserve. The facility was created in early 2008, and was the first time that the Federal Reserve loaned money directly to investment banks, and was meant to stimulate the overall financial market.
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Primary Dealer primary distribution