The agency bond market is likely to post its worst performance in six years, but Salomon Smith Barney has figured out a way to make the most of that dire situation.

Callable agency new issuance volume year-to-date is $59 billion, a steep 59% plummet from the $142.4 billion posted at this point in 1999, while the actual number of new issues has fallen by 40%, according to Thomson Financial Securities Data. Barring an explosion of new deals in the next month, which seems very unlikely, this year will have the slimmest agency callable debt market since 1995.

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