Short sellers made Canada TD bank with $3.7B in bearish bets

Short sellers target Toronto-Dominion Bank with $3.7B in bearish bets

https://nypost.com/2023/04/05/short-sellers-target-td-bank-with-3-7b-in-bearish-bets/ 

By Thomas Barrabi  April 5, 2023 

Short sellers are betting that Canada-based lender Toronto-Dominion Bank — better known as TD — will be the next bank stock to plunge due to ongoing turmoil in the global banking sector.

Investors have wagered approximately $3.7 billion on bearing bets against shares of Toronto-Dominion, which ranks as Canada’s second-largest bank, Bloomberg reported Tuesday, citing data from analytics firm S3 Partners.

Toronto-Dominion is now the most-shorted financial intuition in the world, according to the firm’s data.

France’s BNP Paribas ranks second with just over $3 billion in short bets, following by Bank of America at roughly $2.74 billion and JPMorgan Chase at $2.6 billion.

“Short sellers have been actively shorting into a declining banking sector,” S3 Partners managing director of predictive analytics Ihor Dusaniwsky told the outlet.

Bank stocks around the world came under pressure in recent weeks after the collapses of Silicon Valley Bank and Signature Bank of New York sparked fears of spreading contagion.

Those fears escalated as turmoil engulfed Credit Suisse, which was rescued by rival UBS Group, as well as US regional banks such as First Republic, which received a $30 billion lifeline from the nation’s largest lenders.

Analysts told Bloomberg that concerns about Toronto-Dominion bank are likely related to its minority stake in Charles Schwab, which experienced a stock plunge last month at the height of the banking crisis, as well as TD’s links to the struggling Canadian housing market.

Additionally, some TD Group shareholders are urging the lender to nix its planned $13.4 billion of Tennessee-based First Horizon Bank due to the uncertain outlook for regional institutions, Reuters reported.

According to S3’s Dusaniwsky, short sellers secured a boon in March as Canada-listed shares of TD plunged by 11% — though he noted the trend could be short-lived given recent volatility in stock prices.

In the US, Toronto-Dominion does business under the name “TD Bank.”

US-listed shares are down about 9% so far this year.

卖空者押注加拿大银行 Toronto-Dominion Bank（更广为人知的名称是 TD）将成为下一个因全球银行业持续动荡而暴跌的银行股。

彭博社周二援引分析公司 S3 Partners 的数据报道称，投资者已押注约 37 亿美元押注加拿大第二大银行 Toronto-Dominion 的股票。

根据该公司的数据，多伦多道明银行现在是世界上最做空的金融机构。

法国巴黎银行以略高于 30 亿美元的空头押注排名第二，其次是美国银行，约为 27.4 亿美元，摩根大通为 26 亿美元。

“卖空者一直在积极做空银行业，”S3 Partners 预测分析董事总经理 Ihor Dusaniwsky 告诉媒体。

硅谷银行和纽约 Signature 银行的倒闭引发了对蔓延蔓延的担忧，最近几周全球银行股承压。

随着动荡席卷瑞士信贷，后者得到了竞争对手瑞银集团的救助，以及 First Republic 等美国地区性银行从美国最大的银行那里获得了 300 亿美元的救助，这些担忧不断升级。

分析师告诉彭博社，对 Toronto-Dominion 银行的担忧可能与其在 Charles Schwab 的少数股权有关，嘉信理财上个月在银行业危机最严重的时候经历了股价暴跌，以及 TD 与陷入困境的加拿大房地产市场的联系。

此外，据路透社报道，由于区域机构的前景不明朗，一些道明集团股东敦促该银行取消其 134 亿美元的田纳西州 First Horizon Bank 计划。

根据 S3 的 Dusaniwsky 的说法，由于 TD 在加拿大上市的股票暴跌 11%，卖空者在 3 月份获得了利好——尽管他指出，鉴于近期股价的波动，这种趋势可能是短暂的。

在美国，Toronto-Dominion 以“TD Bank”的名义开展业务。

今年迄今为止，在美国上市的股票下跌了约 9%。