Wall Street buying potential Trump tariff refunds for pennies on the dollar

Source: Reuters

Some U.S. companies are hedging their bets on the Supreme Court case against President Donald Trump's sweeping emergency tariffs by selling their rights to collect potential government refunds of the taxes to outside investors.

Mark Mintman, the company's CFO, calls it a "cost recovery action." He first heard about selling potential refunds during a September meeting with bankers in New York, where one mentioned that a secretive market has emerged for selling the claims.

Under the deals, companies receive a fraction of the refund as an upfront payment. They keep that money if the tariffs are overturned and the government is directed to refund the taxes, but they give up the balance to the investors. They also keep the money if the tariffs are upheld, while investors get nothing.

This is just the latest twist on Wall Street’s keen ability to capitalize on cash flow. Similar markets exist for selling future payments from structured lawsuit settlements and lottery-winning annuities. David Bowie famously sold his royalty cash flow in what became known as "Bowie Bonds."

Read more: https://www.reuters.com/business/companies-collecting-pennies-dollar-market-recoup-some-tariff-costs-2025-12-23/