(Bloomberg) -- 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.

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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 discussing private information. It has brokered others since, said one of the people.

Messages left with Oppenheimer were not returned.

Cherokee Acquisition, an investment bank that helps insurers sell subrogation claims, has been “very active” in brokering claims for the Eaton Fire, said Bradley Max, a director at the bank.

The January wildfires are among the most destructive in California’s history, killing at least 29 people and destroying parts of neighborhoods in Los Angeles County. More than 37,000 fire-related insurance claims have been filed and over $12 billion has been paid out, according to the California Department of Insurance.

Residents who suffered losses from the fires have mainly sued two companies: electricity supplier Edison International Inc. and the Los Angeles Department of Water and Power, a municipal utility. LADWP was blamed for not supplying enough water to fight the Palisades Fire, and property owners allege that equipment owned by Edison caused the Eaton Fire.

It’s unclear whether the insurers’ claims will pay out. While California law has a low bar to hold utilities responsible for fire damage, the causes of the LA blazes are under investigation in a process that could take months to complete.

READ: LA Fire Victims Are Suing Utilities. What’s at Stake?: QuickTake

California wildfires have been linked to subrogation trades before. Seth Klarman’s Baupost Group bought some claims against PG&E Corp. — the California utility that fell into bankruptcy in 2019 — for fires that started in 2017. Baupost bought $1 billion of claims for as much as 35 cents on the dollar from CSAA Insurance Group, Bloomberg reported.