Td bank shorts

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Td bank shorts

Part of it has to do with the general skittishness toward the banking sector after three U. And there are few signs Canadian lenders have any of the liquidity issues that investors have zeroed-in on recently. By that measure, TD is third among the top 20 U. TD is widely expected to renegotiate the deal after the recent bout of turmoil among U. So far, the TD short has been a winner. Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. Comments may take up to an hour for moderation before appearing on the site. We ask you to keep your comments relevant and respectful. We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. Visit our Community Guidelines for more information and details on how to adjust your email settings. This website uses cookies to personalize your content including ads , and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Service and Privacy Policy. Search financialpost.

Updated April 26, am.

Investors appear more bearish on Canada-based lender Toronto-Dominion TD than any other bank in the world. Here's a closer look at what's going on. Short selling, also known as shorting, refers to investors borrowing stock to sell with the goal of buying it back later at a lower price and returning it to the lender, pocketing a profit. Traders engage in short selling when they expect a company's stock price to decline, and want to make money if that happens. TD is being targeted possibly because of its planned takeover of US regional bank First Horizon, its exposure to Canada's weakening housing market, and its ties to troubled US lender Charles Schwab, per Bloomberg.

Part of it has to do with the general skittishness toward the banking sector after three U. And there are few signs Canadian lenders have any of the liquidity issues that investors have zeroed-in on recently. By that measure, TD is third among the top 20 U. TD is widely expected to renegotiate the deal after the recent bout of turmoil among U. So far, the TD short has been a winner.

Td bank shorts

Investors appear more bearish on Canada-based lender Toronto-Dominion TD than any other bank in the world. Here's a closer look at what's going on. Short selling, also known as shorting, refers to investors borrowing stock to sell with the goal of buying it back later at a lower price and returning it to the lender, pocketing a profit. Traders engage in short selling when they expect a company's stock price to decline, and want to make money if that happens. TD is being targeted possibly because of its planned takeover of US regional bank First Horizon, its exposure to Canada's weakening housing market, and its ties to troubled US lender Charles Schwab, per Bloomberg. But sentiment has turned against regional banks following the collapse of Silicon Valley Bank, and TD's shareholders aren't so enthusiastic about the deal anymore. Meanwhile, TD's exposure to Canada's housing slowdown is also eroding investors' confidence in the bank. That's because the lender operates in an environment where variable-rate mortgages are popular and consumer insolvencies are growing. According to the Canadian government , the total number of insolvencies rose by If fewer people are repaying their debts, that could pose problems to TD if it has a substantial number of consumer loans on the line.

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Determine which stock you want to short. Investors do this by borrowing a number of shares from a firm and selling them at the purchase price, promising to pay back that borrowed stock at a future date when they hope the share value has fallen — thus netting the difference in price as profit. More on Money. The hope is to rebuy and replace the stocks they borrowed at a lower price. Shorting a stock, or short selling a stock, is the opposite. How does all this work? We're sorry. Trans Mountain pipeline extension insurance against Canadian oil price blowout, says analyst. Meanwhile, TD's exposure to Canada's housing slowdown is also eroding investors' confidence in the bank. Copy Link. Share icon An curved arrow pointing right. Here's what's going on, and why traders are shorting Toronto-Dominion Bank.

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Facebook Email icon An envelope. What is Short Selling? Sign up. Redeem now. Zahra Tayeb. Thanks for signing up! Please read our Commenting Policy first. Join the Conversation. Next, apply and qualify to add short selling to your margin account. Outside the U.