A mechanism that would give investors, rather than issuers, the right to call tax-exempt bonds is picking up steam in the municipal market.

These detachable call options made their market debut in a $67.3 million Las Vegas bond issue last spring. Since then, more than $2.2 billion of other deals have incorporated the feature into some of all of their maturities, according to one estimate. And for the first time last month, the Municipal Electric Authority of Georgia actually sold the call rights to investors on $72 million of bonds in a $316 million bond issue.

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