Once-AAA Bonds on New York Megamall Face Over $350 Million Loss

Pyramid Management Group is purchasing the mortgage on its Syracuse, New York megamall for a significantly reduced price, resulting in substantial losses for bondholders who held securities originally rated AAA. The buyback is occurring at a fraction of the original mortgage value. Bondholders face over 350 million dollars in losses on the transaction. The bonds were originally issued with top-tier credit ratings.

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