Primary Dealer Credit Facility Facts
The PDCF offers overnight funds through the Federal Reserve Bank of New York. Borrowing from this facility is done on an as requested basis. Collateral includes U.S. Treasuries, agencies, agency mortgage backed securities and investment grade corporate and muni paper. The PDCF facility has been little used given that funds are for overnight only and the stigma of drawing what amounts to emergency funds outweighs short term needs that can be filled by less conspicuous borrowing.
So why the hullabaloo about extending the facility through next year? Political expediency most likely. After all, the facility is receiving light use if any and gives the impression of liquidity.