Federal Reserve emergency lending facilities used to prevent fire sales in broker-dealers eased funding pressures during the financial crisis, two researchers at the Fed find.

In Emergency Collateral Upgrades, Mark Carlson and Marco Macchiavelli examine the Primary Dealer Credit Facility and the Term Securities Lending Facility. They investigate whether the facilities offset declines in brokers’ ability to finance corporate securities in the repo market.

“Dealers offset substantial portions of