Hedge funds and other investors are purchasing potential tariff refund claims from U.S. companies for a fraction of their face value, creating a new special situations market while companies await the Supreme Court's ruling on President Trump's emergency tariffs.

Orrick's Raniero D'Aversa and Amy Pasacreta explain to Reuters how this market operates, with buyers currently offering 16-17% for fentanyl tariff (aimed at stopping smuggling) claims and 26-28% for reciprocal tariff claims.

• Raniero notes there's "a very well-established market...where there are buyers...who are willing to provide instant liquidity to parties that are uncertain as to when, if ever, they'll be able to monetize these claims."
• Amy adds that some companies are reasoning, "I'd rather get my 10, 20, 30 cents because the Supreme Court could very well say they're constitutional. And if that's the case, at least I get a little something recouped."