Trump Law Leaves Enduring Muni-Market Legacy: Earlier Buybacks

A side effect of President Donald Trump’s 2017 tax-cut seems to have ushered in a small but enduring change to the municipal-bond market: an increase in the supply of securities that governments can buy back in less than a decade.

State and local governments have issued more debt that they can call back in eight years or less -- instead of the traditional 10 -- since that tax law eliminated the subsidies for a once-popular technique, known as an advance refunding, that allowed them to refinance bonds even before they could be retired, according to data compiled by Bloomberg. ...