Description: 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 centre of Canada. In recent weeks, short sellers have upped their bearish bets against Toronto-Dominion Bank, and now have roughly US$3.7 billion on the line vis-à-vis Canada’s second-largest lender, according to an analysis by S3 Partners. That’s the most among financial institutions globally and puts TD ahead of the likes of France’s BNP Paribas SA and Bank of America Corp.

Source: BNNBloomberg.ca – video report

Date: Apr 04, 2023

Link: https://www.bnnbloomberg.ca/toronto-dominion-becomes-biggest-bank-short-with-us-3-7-billion-on-the-line-1.1904455

Questions for discussion:

• Summarize the analysis presented in the report?
• Why is there particular concern about TD?
• Would you be a buyer of TD or other banks today?