Primary Dealer Credit Facility (PDCF)

Definition:

Announced by the Federal Reserve in March 2008, PDCF is an overnight loan program provided funding to primary dealers and bolster financial markets overall during the financial crisis. Credit under the program was secured with collateral. The facility was shut down on Feb. 1, 2010.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Quality option

Gives the seller choice of deliverables in Treasury bond and Treasury note futures contracts. Also called the swap option. Related: Cheapest to deliver issue.

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