- Short sellers bet $3.7bn against Toronto-Dominion Bank, the largest short in the banking industry globally.
- TD's short interest is 3.3% of shares available for trading, driven by concerns over Canada's housing slowdown and Schwab stake.
- TD's position atop the biggest bank shorts comes as it seeks to close a $13.4bn deal for First Horizon Corp.
- Short seller profits can evaporate just as quickly as they came, warns S3 Partners.
- TD faces two broad headwinds due to the fears around Canadian housing and Charles Schwab's unrealized bond losses.
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
