03-07-2025
‘Big Beautiful Bill' Raises Threat of Default for Litigation Asset-Backed Securities
Legislation tucked inside President Donald Trump's landmark tax bill could make it difficult for asset-backed securities tied to litigation funding to make timely interest payments, according to a note by Kroll Bond Rating Agency.
The Tackling Predatory Litigation Funding Act, which is part of the One Big Beautiful Bill Act currently in the Senate, would impose substantial new taxes on profits from third-party litigation funding, says the June 27 note by authors including Joanne DeSimone and Zara Shirazi.
