- Short sellers have upped their bearish bets against Toronto-Dominion Bank, with $3.7bn on the line.
- TD has the biggest short in the banking industry globally, ahead of BNP Paribas and Bank of America.
- TD's exposure to Canada's housing slowdown and its ties to the US market are contributing to the bearish bets.
- Short interest as a percentage of TD's shares available for trading remains low but has increased from a year ago.
- S3 warns that short-seller profits can evaporate quickly, especially if they are a result of a broad-based rally.
Toronto-Dominion Becomes Biggest Bank Short With $3.7 Billion on the Line
Turns out, the biggest short in the banking industry anywhere in the world isn’t in Switzerland or Silicon Valley, but rather, in the relatively tame financial center of Canada.
Geoffrey Morgan
