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Clifford Chance

Clifford Chance


Coronavirus: US Federal Reserve Widens Availability of Asset-based Funding

March 20, 2020

On March 17, 2020, the Board of Governors of the Federal Reserve System launched the Primary Dealer Credit Facility to expand liquidity and available credit in response to the distressed economic conditions caused by the COVID-19 pandemic. The PDCF will function as a secured loan facility for primary dealers, similar to the Federal Reserve’s discount window for depository institutions. The PDCF will permit primary dealers to pledge a much broader range of collateral under repo transactions with the Federal Reserve Bank of New York than the government-backed debt required for open-market operations.

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