Td bank shorts

Want to discuss?

Learn more about TD Direct Investing. Short selling? Shorting a stock? What are the types of strategies? Do I need a margin account? How does all this work? Interested in learning more?

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. Read next. Search markets.

Share icon An curved arrow pointing right. You can opt-out at any time.

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.

Want to discuss? Please read our Commenting Policy first. If you get Global News from Instagram or Facebook - that will be changing. Find out how you can still connect with us. 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. The collapse of Silicon Valley Bank last month and fears of a spreading crisis among other regional banks in the U. TD Bank is also in the midst of acquiring regional U.

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.

Fakeaddressgenerator canada

This advertisement has not loaded yet, but your article continues below. Keep in mind that you are paying interest to your brokerage, which will reduce the profit you earn on the short sell. This Week in Flyers. Jamie Dimon says banking crisis not over yet with issues 'hiding in plain sight'. You can learn more about margin accounts, along with additional requirements and considerations for how they work, here. Return the shares you borrowed to your brokerage. Short selling may be used by experienced investors who seek to generate a profit when the price of a stock goes down. Search Menu. Part of it has to do with the general skittishness toward the banking sector after three U. An investment strategy that uses borrowed money could result in far greater losses than an investment strategy that does not use borrowed money. TD is widely expected to renegotiate the deal after the recent bout of turmoil among U. How does short selling work? Advertisement 1.

It comes as traders question the bank's planned takeover of US regional bank First Horizon, according to the publication. But sentiment has turned against regional banks following the collapse of Silicon Valley Bank, and TD's shareholders are subsequently skeptical about the deal now.

Posted April 25, pm. 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. Story continues below advertisement. Comments may take up to an hour for moderation before appearing on the site. TD Bank is also in the midst of acquiring regional U. Email Twitter icon A stylized bird with an open mouth, tweeting. Find answers here. TD Bank Group is not responsible for the content of the third-party sites hyperlinked from this page, nor do they guarantee or endorse the information, recommendations, products or services offered on third party sites. Would you leave us a comment about your search? Report an Error. The difference between what you originally sold the shares for, and the cost to replace them later, is your profit minus any fees and margin account requirements, of course.