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The refunds being traded average between $10-$25 million in face value, with those under $5 million struggling to find a buyer, Harrell said. At the higher end, he’s connected buyers and sellers with “claims north of $100 million and larger.”
Some firms are also putting up 50-75 percent of their refund, he said, “in an effort to hedge out some of the legal and process uncertainty,” since it’s still not clear when the Trump administration will reimburse their claims. Companies are exploring using tariff refunds as collateral on bank loans as the Iran war pushes up costs.
Institutional investors are “seeking to provide upfront liquidity for those receivables at a discount to help chief financial officers manage balance sheets and deploy capital,” Harrell said.
U.S. President Donald Trump with his executive order imposing tariffs on imported goods during the “Liberation Day” event at the White House on April 2, 2025. | Andrew Harnik/Getty Images
Hedge funds backed by upwards of $30 billion apiece with offices around the globe, including King Street and Fulcrum Capital, are buying refunds, with specialist banks, including Oppenheimer and Stifel, brokering deals.
“Over the past year, Oppenheimer has seen growing demand from importers whose cash flow, day-to-day operations and ability to invest in growth have been impacted by the tariffs,” said Peter Albano, global head of fixed income at the brokerage and investment bank.
The bank has connected firms “with sophisticated investors that can help turn a potential future payment into working capital they can use immediately,” Albano said, noting Oppenheimer has “played a leading role in building a trusted, efficient market for these transactions.”
