Domestic market THRs are mainly provided on the Agency`s basis, although emissions are sometimes sold under a program through other methods. Agent banks sometimes buy paper for their own books and exchange it later on the secondary market. Specific issues can be subscribed by a bank of agents or sold directly by the corporate treasury department of the credit company to investors. Since 2007, the shadow banking system has suffered a sharp contraction. The reason for this is misunderstood, but a popular theory is that much of the short-term funds received by shadow banks before the crisis took the form of pension transactions and that many of these funds were backed as collateral by securitized mortgages. From this point of view, the shadow banking system collapsed when money funds and other lenders became concerned about the quality of the guarantees that supported deposits and withdrew their financing. The result was a run on repo similar to the bankruns that challenged banking activities before the deposit guarantee was put in place. Nagel argues, however, that the focus on the renu trapping market, as the main culprit in the financial crisis, is a mistake. In the United States, there is a strong demand from investors for quality corporate securities, much more than in Europe, where the majority of bonds are issued by financial companies. This demand is particularly important at the end of the short- and medium-term maturity. Because there are a large number of issuers in the market, investors can choose issues that are exactly in line with their maturity and credit quality requirements. The main investors are: Robert Citron was treasurer and tax collector for many years for Orange County, California. When Citron began in 1971 as a tax collector and then the county treasurer, interest rates continued to rise, so he only had to get a high return on the county`s investment pool to buy government bonds.
But interest rates had peaked in the early 1980s, and then gradually weakened thereafter. Citron predicted that interest rates would fall for some time, so he developed a new investment strategy that took advantage of the dispersion of interest rates between long-term government bonds and the short-term pension rate. In the early 1990s, this strategy resulted in high returns on the investment pool, which included approximately 189 different public institutions in Orange County, including 31 cities, local school districts, water and sanitation services. It is thanks to this success that he was awarded in 1988 by City and State magazine as one of the top 5 finance officials.