Wall Street Brokers Start Trading Insurer Claims From LA Fires

Wall Street brokers have started selling insurers’ claims tied to Los Angeles’ deadly wildfires, which may trigger a payout from the utilities blamed for the destruction, according to people familiar with the matter.

Investors are buying so-called subrogation claims, obtaining an insurer’s right to compensation from a utility if it’s found liable for fire-related damage. The claims are meant to help insurance companies recover losses incurred from disasters.

Investment firm Oppenheimer & Co. recently executed the first trade of subrogation claims tied to either the Eaton Fire or the Palisades Fire, according to people familiar, asking not to be identified ...