Overseas investors are increasingly providing funding for senior settlement securitizations backed by pools originated in the U.S., where issuers have had a hard time lining up financing.

Investors in countries that benefit from a double taxation treaty, such as Germany and Austria, currently make up the primary market for these deals, said Boris Ziser, a partner at Baker & McKenzie. "Attractive rates of return combined with favorable tax treatment have been driving these transactions."

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