The sector may be paying a price for its cleverness, and for all those complex products and-off balance-sheet vehicles that seemed to be working so well in the good years.
The shift to agency model will have a negative impact on working capital as well, but Expedia feels that it has a strong balancesheet to support the same.
America's government is working hard to revive markets for securitised debt, aware that banks lack the balance-sheet capacity to absorb all of those credit-card receivables and auto loans.