U.S. / Canadian & European Banking Short Interest
Author:
Ihor Dusaniwsky
Managing Director of Predictive Analytics, S3 Partners
Matthew Unterman
Director of Predictive Analytics, S3 Partners
The regional bank “contagion” highlighted by the closures of SVB Financial Corp (SIVB), and Signature Bank New York (SBNY) coupled with the takeover of Credit Suisse Group AG by UBS Group AG has produced outsized price volatility in both the U.S.\Canadian and European Banking regions. Short interest in the worldwide Banking sector is $109.7 billion, 75% of which is in the U.S.\Canadian and European regions. Total worldwide banking short interest declined by $2.8 billion which consisted of $15.6 billion decease in the value of shares shorted almost totally offset with $12.8 billion of new short selling. Investors were actively shorting into a downward trending sector.
The U.S.\Canadian Banking sector has $57.5 billion of short interest, down $3.1 billion for the month. In March we saw the share price of the shares shorted decline by $10.0 billion and $6.8 billion of new short selling:
US\Canadian Banking
3/27/23 Short Interest
Change MTM
Change Shs Shorted
Asset Management & Custody Banks
$12,742,938,002
($1,092,724,622)
$454,379,346
Diversified Banks
$24,331,815,728
($2,484,646,650)
$4,424,690,421
Diversified Capital Markets
$3,448,766
($470,991)
($705,316)
Investment Banking & Brokerage
$5,955,976,884
($1,216,413,308)
$513,862,031
Regional Banks
$14,500,890,201
($5,159,058,266)
$1,457,616,096
Total US/Canadian Banking
$57,535,069,580
($9,953,313,838)
$6,849,842,579
The European Banking sector has $24.5 billion of short interest, up $1.1 billion for the month. In March we saw the share price of the shares shorted decline by $3.7 billion and $4.9 billion of new short selling:
European Banking
3/27/23 Short Interest
Change MTM
Change Shs Shorted
Asset Management & Custody Banks
$3,625,896,462
($359,765,128)
$255,523,770
Diversified Banks
$18,222,329,425
($2,734,774,268)
$3,825,847,850
Diversified Capital Markets
$1,858,933,769
($584,418,456)
$711,776,196
Investment Banking & Brokerage
$565,951,319
($56,832,693)
$43,790,119
Regional Banks
$216,500,562
($560,715)
$40,441,417
Total European Banking
$24,489,611,537
($3,736,351,261)
$4,877,379,352
The largest shorts in the U.S.\Canadian Banking sector are:
U.S.\Canadian Banking Short Interest
Ticker
Country
SI % Float
Short Interest
TORONTO-DOMINION BANK
TD CN
Canada
3.22%
$3,376,913,411
BANK OF AMERICA
BAC US
USA
1.20%
$2,737,447,263
JPMORGAN CHASE CO
JPM US
USA
0.69%
$2,602,394,315
T ROWE PRICE GRP
TROW US
USA
8.92%
$2,125,503,948
CITIGROUP INC
C US
USA
2.36%
$2,045,926,642
BLACKROCK INC
BLK US
USA
1.87%
$1,795,089,162
BLACKSTONE GRP LP
BX US
USA
3.02%
$1,779,657,471
BANK OF NOVA SCOTIA
BNS CN
Canada
2.96%
$1,710,072,716
GOLDMAN SACHS GRP
GS US
USA
1.53%
$1,625,962,504
CIBC
CM CN
Canada
4.34%
$1,615,120,163
MORGAN STANLEY
MS US
USA
1.46%
$1,605,182,196
BANK OF NOVA SCOTIA
BNS US
Canada
2.67%
$1,545,914,976
BANK OF MONTREAL
BMO CN
Canada
2.31%
$1,332,005,665
ROYAL BANK OF CANADA
RY US
Canada
1.03%
$1,329,180,104
WELLS FARGO & CO
WFC US
USA
0.80%
$1,130,166,543
TORONTO-DOMINION BANK
TD US
Canada
0.95%
$999,255,657
CHARLES SCHWAB CORP
SCHW US
USA
0.84%
$824,932,398
ROYAL BANK OF CANADA
RY CN
Canada
0.63%
$817,261,645
NATL BANK OF CANADA
NA CN
Canada
3.52%
$809,695,895
CIBC
CM US
Canada
2.14%
$799,129,908
The largest shorts in the U.S.\Canadian regional banking sector are:
U.S. Regional Banking Short Interest
Ticker
Country
SI % Float
Short Interest
SVB FINANCIAL GRP
SIVB US
USA
11.47%
$716,015,695
TRUIST FINANCIAL CORP
TFC US
USA
1.38%
$603,215,818
PNC FINANCIAL SERVICES GROUP
PNC US
USA
1.07%
$532,562,321
HUNTINGTON BANCSHARES
HBAN US
USA
3.06%
$485,342,955
SIGNATURE BANK NY
SBNY US
USA
10.38%
$457,174,480
REGIONS FINANCIAL CO
RF US
USA
2.40%
$408,856,538
FIRST HORIZON NATL
FHN US
USA
4.20%
$383,152,065
M&T BANK CORP
MTB US
USA
1.91%
$375,188,988
KEYCORP
KEY US
USA
2.87%
$332,431,942
BANK OZK
OZK US
USA
7.92%
$321,203,746
FIFTH THIRD BANCORP
FITB US
USA
1.67%
$295,721,082
CITIZENS FINL GROUP
CFG US
USA
1.82%
$266,339,787
FIRST FINL BKSHRS
FFIN US
USA
5.89%
$243,502,144
FIRST CITIZENS BANCSHS N CAR
FCNCA US
USA
2.64%
$235,739,365
ZIONS BANCORP
ZION US
USA
5.36%
$230,145,705
SOUTH STATE CORP
SSB US
USA
3.74%
$204,363,503
N.Y. COMM BANCORP
NYCB US
USA
3.43%
$203,003,342
COMERICA INC
CMA US
USA
3.59%
$199,133,205
WEBSTER FINL CORP
WBS US
USA
2.92%
$195,467,926
HOME BANCSHARES
HOMB US
USA
4.50%
$189,838,819
The largest shorts in the European banking sector are:
European Banking Short Interest
Ticker
Country
SI % Float
Short Interest
BNP PARIBAS
BNP FP
France
4.94%
$2,954,557,128
UNICREDIT SPA
UCG IM
Italy
5.97%
$1,905,138,810
INTESA SANPAOLO SPA
ISP IM
Italy
3.33%
$1,260,921,044
BANCO SANTANDER SA
SAN SM
Spain
2.03%
$1,172,925,825
SOCIETE GENERALE
GLE FP
France
5.46%
$921,875,960
ING GROEP NV
INGA NA
Netherlands
1.56%
$658,871,723
BANCO BILBAO VIZCAYA ARGENTA
BBVA SM
Spain
1.55%
$628,316,517
CREDIT AGRICOLE
ACA FP
France
4.49%
$537,808,761
DEUTSCHE BANK AG
DBK GR
Germany
2.76%
$519,412,593
SVENSKA HANDELSBANKEN AB
SHBA SS
Sweden
4.37%
$517,018,918
EQT AB
EQT SS
Sweden
4.73%
$510,446,287
ABRDN PLC
ABDN LN
UK
9.74%
$486,329,521
SKANDINAVISKA ENSKILDA BANKEN
SEBA SS
Sweden
2.79%
$448,899,699
HSBC HOLDINGS PLC
5 HK
UK
0.32%
$408,151,567
SWEDBANK AB
SWEDA SS
Sweden
2.48%
$407,897,136
UBS GROUP AG-REG
UBSG SW
Switzerland
0.69%
$406,972,653
NORDEA BANK ABP
NDA SS
Finland
1.18%
$382,533,101
CAIXABANK SA
CABK SM
Spain
2.63%
$376,283,747
AVANZA BANK HOLDING AB
AZA SS
Sweden
13.44%
$372,332,139
PARTNERS GROUP HOLDING AG
PGHN SW
Switzerland
1.83%
$354,232,958
MEDIOBANCA SPA
MB IM
Italy
6.78%
$351,574,015
CREDIT SUISSE GROUP AG
CSGN SW
Switzerland
11.75%
$346,794,052
NORDEA BANK ABP
NDA FH
Finland
1.00%
$325,940,389
UBS GROUP AG-REG
UBS US
Switzerland
0.49%
$297,078,990
HSBC HOLDINGS PLC
HSBA LN
UK
0.21%
$271,987,083
In March we saw $12.8 billion of new short selling in the worldwide Banking sector, a 11.4% increase in shares shorted. Worldwide shorted Bank sector stock prices declined by -13.9% in March, short sellers were actively rebuilding their Banking sector short exposure as market values declined and mark-to-market profits rose.
Total short interest in the U.S.\Canadian Banking sector decreased by $3.1 billion, the mark-to-market decrease in the value of shares shorted declined by $10.0 billion, partially offset with $6.8 billion of new short selling.
The stocks with the largest increase in March shares shorted:
Largest Decrease in March Shs Shorted
Ticker
Sub Industry
3/27/23 Short Interest
Change Shs Shorted
BANK OF AMERICA
BAC US
Diversified Banks
$2,737,447,263
$1,198,488,688
TORONTO-DOMINION BANK
TD US
Diversified Banks
$999,255,657
$703,206,014
BANK OF NOVA SCOTIA
BNS US
Diversified Banks
$1,545,914,976
$693,723,611
CITIGROUP INC
C US
Diversified Banks
$2,045,926,642
$681,041,601
CIBC
CM US
Diversified Banks
$799,129,908
$466,287,427
SVB FINANCIAL GRP
SIVB US
Regional Banks
$716,015,695
$376,313,798
ROYAL BANK OF CANADA
RY US
Diversified Banks
$1,329,180,104
$284,933,280
JPMORGAN CHASE CO
JPM US
Diversified Banks
$2,602,394,315
$281,187,901
GOLDMAN SACHS GRP
GS US
Investment Banking & Brokerage
$1,625,962,504
$234,707,875
CHARLES SCHWAB CORP
SCHW US
Investment Banking & Brokerage
$824,932,398
$210,840,311
SIGNATURE BANK NY
SBNY US
Regional Banks
$457,174,480
$191,991,240
BLACKSTONE GRP LP
BX US
Asset Mgmt. & Custody Banks
$1,779,657,471
$155,772,463
BLACKROCK INC
BLK US
Asset Mgmt. & Custody Banks
$1,795,089,162
$145,570,531
TRUIST FINANCIAL CORP
TFC US
Regional Banks
$603,215,818
$137,619,515
NATL BANK OF CANADA
NA CN
Diversified Banks
$809,695,895
$127,591,826
ZIONS BANCORP
ZION US
Regional Banks
$230,145,705
$122,746,725
M&T BANK CORP
MTB US
Regional Banks
$375,188,988
$115,005,218
TORONTO-DOMINION BANK
TD CN
Diversified Banks
$3,376,913,411
$112,283,639
WELLS FARGO & CO
WFC US
Diversified Banks
$1,130,166,543
$109,565,203
N.Y. COMM BANCORP
NYCB US
Regional Banks
$203,003,342
$97,197,550
The stocks with the largest decrease in March shares shorted:
Largest Decrease in March Shs Shorted
Ticker
Sub Industry
3/27/23 Short Interest
Change Shs Shorted
ROYAL BANK OF CANADA
RY CN
Diversified Banks
$817,261,645
($414,798,592)
COLUMBIA BANKING SYSTEM INC
COLB US
Regional Banks
$8,107,784
($245,965,044)
FIRST HORIZON CORP
FHN US
Regional Banks
$383,152,065
($125,742,172)
BANK OF MONTREAL
BMO US
Diversified Banks
$447,695,427
($124,214,844)
PNC FINANCIAL SERVICES GROUP
PNC US
Regional Banks
$532,562,321
($119,865,675)
Total short interest in the U.S.\Canadian Regional Banking sector decreased by $3.7 billion, the mark-to-market decrease in the value of shares shorted declined by $5.2 billion, partially offset with $1.5 billion of new short selling. Short sellers did not back up their bets completely to bring short interest levels back to February levels – they were willing to accept a reduction in exposure and are looking for a rebound to the severe downward price action that occurred after the SIVB and SBNY news.
The stocks with the largest increase in March shares shorted:
Largest Decrease in March Shs Shorted
Ticker
Sub Industry
3/27/23 Short Interest
Change Shs Shorted
SVB FINANCIAL GRP
SIVB US
Regional Banks
$716,015,695
$376,313,798
SIGNATURE BANK NY
SBNY US
Regional Banks
$457,174,480
$191,991,240
TRUIST FINANCIAL CORP
TFC US
Regional Banks
$603,215,818
$137,619,515
ZIONS BANCORP
ZION US
Regional Banks
$230,145,705
$122,746,725
M&T BANK CORP
MTB US
Regional Banks
$375,188,988
$115,005,218
N.Y. COMM BANCORP
NYCB US
Regional Banks
$203,003,342
$97,197,550
PACWEST BANCORP
PACW US
Regional Banks
$127,097,743
$86,178,685
FIRST REP BANK/CA
FRC US
Regional Banks
$153,673,729
$84,528,814
BANK OZK
OZK US
Regional Banks
$321,203,746
$78,048,803
SOUTH STATE CORP
SSB US
Regional Banks
$204,363,503
$77,159,354
TEXAS CAP BANCSHS
TCBI US
Regional Banks
$177,724,940
$70,747,101
KEYCORP
KEY US
Regional Banks
$332,431,942
$70,581,565
COMERICA INC
CMA US
Regional Banks
$199,133,205
$64,076,002
WESTERN ALLIANCE BANCORP
WAL US
Regional Banks
$151,561,487
$60,548,051
ATLANTIC UNION BANKSHARES CO
AUB US
Regional Banks
$94,792,460
$50,831,725
SERVISFIRST BANCSHS
SFBS US
Regional Banks
$178,079,912
$40,011,958
HOME BANCSHARES
HOMB US
Regional Banks
$189,838,819
$35,770,160
EASTWEST BANCORP
EWBC US
Regional Banks
$150,849,887
$30,270,945
VALLEY NATL BANCORP
VLY US
Regional Banks
$171,568,613
$29,223,502
GLACIER BANCORP INC
GBCI US
Regional Banks
$142,586,368
$28,361,325
The stocks with the largest increase in March shares shorted:
Largest Decrease in March Shs Shorted
Ticker
Sub Industry
3/27/23 Short Interest
Change Shs Shorted
COLUMBIA BANKING SYSTEM INC
COLB US
Regional Banks
$8,107,784
($245,965,044)
FIRST HORIZON CORP
FHN US
Regional Banks
$383,152,065
($125,742,172)
PNC FINANCIAL SERVICES GROUP
PNC US
Regional Banks
$532,562,321
($119,865,675)
REGION FINANCIAL CORP
RF US
Regional Banks
$408,856,538
($71,689,271)
FIRST THIRD BANCORP
FITB US
Regional Banks
$295,721,082
($57,904,876)
Total short interest in the European Banking sector increased by $1.1 billion, the mark-to-market decrease in the value of shares shorted declined by $3.7 billion but was more than offset with $4.9 billion of new short selling. Short sellers were looking to increase their total exposure to the European Banking sector with a 21% increase in total shares shorted in March.
The stocks with the largest increase in March shares shorted:
Largest Decrease in March Shs Shorted
Ticker
Sub Industry
3/27/23 Short Interest
Change Shs Shorted
UNICREDIT SPA
UCG IM
Diversified Banks
$1,905,138,810
$824,672,400
BNP PARIBAS
BNP FP
Diversified Banks
$2,954,557,128
$768,134,965
BANCO SANTANDER SA
SAN SM
Diversified Banks
$1,172,925,825
$403,931,331
SOCIETE GENERALE
GLE FP
Diversified Banks
$921,875,960
$337,771,853
DEUTSCHE BANK AG
DBK GR
Diversified Capital Markets
$519,412,593
$323,318,001
CREDIT SUISSE GROUP AG
CSGN SW
Diversified Capital Markets
$346,794,052
$236,219,407
INTESA SANPAOLO SPA
ISP IM
Diversified Banks
$1,260,921,044
$235,353,956
CREDIT AGRICOLE
ACA FP
Diversified Banks
$537,808,761
$224,657,984
NATWEST GROUP PLC
NWG LN
Diversified Banks
$192,837,290
$173,599,514
MEDIOBANCA SPA
MB IM
Diversified Banks
$351,574,015
$167,654,511
EQT AB
EQT SS
Asset Mgmt.& Custody Banks
$510,446,287
$156,525,577
SKANDINAVISKA ENSKILDA BANKEN
SEBA SS
Diversified Banks
$448,899,699
$134,324,278
UBS GROUP AG-REG
UBSG SW
Diversified Capital Markets
$406,972,653
$99,295,701
SVENSKA HANDELSBANKEN AB
SHBA SS
Diversified Banks
$517,018,918
$97,470,525
PARTNERS GROUP HOLDING AG
PGHN SW
Asset Mgmt. & Custody Banks
$354,232,958
$89,922,049
CAIXABANK SA
CABK SM
Diversified Banks
$376,283,747
$88,264,893
BANCO BPM SPA
BAMI IM
Diversified Banks
$80,037,377
$78,371,734
BARCLAYS PLC
BARC LN
Diversified Banks
$87,667,681
$73,712,871
ERSTE GROUP BANK AG
EBS AV
Diversified Banks
$123,533,718
$72,208,598
LLOYDS BKG GRP PLC
LLOY LN
Diversified Banks
$168,094,815
$64,318,825
The stocks with the largest increase in March shares shorted:
Largest Decrease in March Shs Shorted
Ticker
Sub Industry
3/27/23 Short Interest
Change Shs Shorted
HSBC HOLDINGS PLC
5 HK
Diversified Banks
$408,151,567
($261,859,104)
ABRDN PLC
ABDN LN
Asset Mgmt. & Custody Banks
$486,329,521
($104,862,071)
COMMERZBANK AG
CBK GR
Diversified Banks
$93,205,073
($65,448,268)
HSBC PLC ADR
HSBC US
Diversified Banks
$287,244,290
($54,780,385)
BANK OF IRELAND GROUP PLC
BIRG LN
Diversified Banks
$68,081,468
($33,855,238)
The main reason for the rush to short banking sector stocks in this volatile stock price environment was a wide swath of profitable trades that returned +17.2% in less than a month. Worldwide Banking sector short sellers were up +$14.3 billion in month-to-date mark-to-market profits, a 17.2% return on an average short interest of $82.4 billion. 78% of every stock shorted in the Banking sector was profitable and 97% of every dollar shorted in the Banking sector was profitable.
Shorts in the U.S.\Canada Banking sector are up $10.1 billion in month-to-date mark-to-market profits, up +17.7% on an average short interest of $58.6 billion. 83% of every stock shorted was profitable and 98% of every dollar shorted was profitable.
In March, the most profitable shorts in the U.S.\Canadian Banking sector are:
US\Canada Banking March P\L
Ticker
Short Interest
March MTM P\L
MTM P\L %
FIRST REP BANK/CA
FRC US
$374,502,382
$690,908,437
184.49%
SVB FINANCIAL GRP
SIVB US
$688,134,569
$594,887,502
86.45%
TORONTO-DOMINION BANK
TD CN
$3,445,806,903
$518,573,822
15.05%
BANK OF AMERICA
BAC US
$2,311,327,255
$366,170,966
15.84%
CHARLES SCHWAB CORP
SCHW US
$856,680,507
$284,228,757
33.18%
JPMORGAN CHASE CO
JPM US
$2,583,631,165
$280,900,206
10.87%
WELLS FARGO & CO
WFC US
$1,183,200,626
$263,142,151
22.24%
SILVERGATE CAPITAL CORP
SI US
$76,829,901
$250,146,717
325.59%
MORGAN STANLEY
MS US
$1,738,989,492
$227,810,002
13.10%
CITIGROUP INC
C US
$1,864,238,788
$222,794,679
11.95%
TRUIST FINANCIAL CORP
TFC US
$624,174,042
$211,919,787
33.95%
FIRST HORIZON NATL
FHN US
$461,845,012
$203,844,863
44.14%
CIBC
CM CN
$1,684,912,928
$193,649,021
11.49%
HUNTINGTON BANCSHARES
HBAN US
$558,097,802
$187,942,649
33.68%
SIGNATURE BANK NY
SBNY US
$423,412,165
$182,677,648
43.14%
PNC FINANCIAL SERVICES GROUP
PNC US
$644,217,904
$160,571,018
24.92%
GOLDMAN SACHS GRP
GS US
$1,576,498,412
$150,709,967
9.56%
BANK OF MONTREAL
BMO CN
$1,324,693,470
$144,079,664
10.88%
US BANCORP
USB US
$433,613,828
$134,664,658
31.06%
KEYCORP
KEY US
$355,002,558
$134,221,998
37.81%
In March, the least profitable shorts in the U.S.\Canadian Banking sector are:
US\Canada Banking March P\L
Ticker
Short Interest
March MTM P\L
MTM P\L %
FIRST CITIZENS BANCSHS N CAR
FCNCA US
$158,108,677
($40,281,281)
-25.48%
N.Y. COMM BANCORP
NYCB US
$141,776,383
($13,601,307)
-9.59%
ARES MANAGEMENT CORP
ARES US
$321,695,676
($4,625,696)
-1.44%
FEDERATED HERMES B
FHI US
$110,741,312
($1,264,057)
-1.14%
BGC PARTNERS INC
BGCP US
$23,217,874
($1,108,688)
-4.78%
Shorts in the U.S.\Canada Regional Banking sector are up $5.4 billion in month-to-date mark-to-market profits, up +33.8% on an average short interest of $15.8 billion. 91% of every stock shorted was profitable and 98% of every dollar shorted was profitable.
In March, the most profitable shorts in the U.S.\Canadian Regional Banking sector are:
Regional Banking March P\L
Ticker
Short Interest
March MTM P\L
MTM P\L %
FIRST REP BANK/CA
FRC US
$374,502,382
$690,908,437
184.49%
SVB FINANCIAL GRP
SIVB US
$688,134,569
$594,887,502
86.45%
SILVERGATE CAPITAL CORP
SI US
$76,829,901
$250,146,717
325.59%
TRUIST FINANCIAL CORP
TFC US
$624,174,042
$211,919,787
33.95%
FIRST HORIZON NATL
FHN US
$461,845,012
$203,844,863
44.14%
HUNTINGTON BANCSHARES
HBAN US
$558,097,802
$187,942,649
33.68%
SIGNATURE BANK NY
SBNY US
$423,412,165
$182,677,648
43.14%
PNC FINANCIAL SERVICES GROUP
PNC US
$644,217,904
$160,571,018
24.92%
KEYCORP
KEY US
$355,002,558
$134,221,998
37.81%
REGIONS FINANCIAL CO
RF US
$494,916,834
$128,615,994
25.99%
FIFTH THIRD BANCORP
FITB US
$368,678,943
$127,083,118
34.47%
CITIZENS FINL GROUP
CFG US
$350,553,450
$116,922,355
33.35%
WESTERN ALLIANCE BANCORP
WAL US
$162,229,792
$108,316,298
66.77%
COMERICA INC
CMA US
$227,629,665
$108,150,915
47.51%
ZIONS BANCORP
ZION US
$221,030,801
$105,686,030
47.82%
PACWEST BANCORP
PACW US
$115,321,445
$101,244,425
87.79%
M&T BANK CORP
MTB US
$376,487,749
$100,171,820
26.61%
BANK OZK
OZK US
$313,487,059
$87,291,977
27.85%
BANK OF HAWAII CORP
BOH US
$218,852,768
$85,419,310
39.03%
WEBSTER FINL CORP
WBS US
$240,223,069
$80,702,484
33.59%
In March, the least profitable shorts in the U.S.\Canadian Regional Banking sector are:
Regional Banking March P\L
Ticker
Short Interest
March MTM P\L
MTM P\L %
FIRST CITIZENS BANCSHS N CAR
FCNCA US
$158,108,677
($40,281,281)
-25.48%
N.Y. COMM BANCORP
NYCB US
$141,776,383
($13,601,307)
-9.59%
MIDDLEFIELD BANC CORP
MBCN US
$891,360
($19,794)
-2.22%
UNITED BANCORP/OHIO
UBCP US
$104,031
($4,797)
-4.61%
VILLAGE BANK TRUST FINANCIAL CORP
VBFC US
$43,742
($1,554)
-3.55%
Shorts in the European Banking sector are up $4.1 billion in month-to-date mark-to-market profits, up +17.2% on an average short interest of $23.9 billion. 67% of every stock shorted was profitable and 95% of every dollar shorted was profitable. Short sellers had to be better stock pickers in the European Banking sector than their U.S.\Canadian counterparts.
In March, the most profitable shorts in the European Banking sector are:
European Banking March P\L
Ticker
Short Interest
March MTM P\L
MTM P\L %
BNP PARIBAS
BNP FP
$2,963,536,426
$678,349,164
22.89%
CREDIT SUISSE GROUP AG
CSGN SW
$399,257,393
$499,192,187
125.03%
SOCIETE GENERALE
GLE FP
$823,147,040
$229,412,347
27.87%
UNICREDIT SPA
UCG IM
$1,504,378,764
$189,509,303
12.60%
ING GROEP NV
INGA NA
$768,876,030
$152,351,169
19.81%
SVENSKA HANDELSBANKEN AB
SHBA SS
$536,969,447
$144,348,733
26.88%
INTESA SANPAOLO SPA
ISP IM
$1,145,406,261
$113,559,281
9.91%
BANCO BILBAO VIZCAYA ARGENTA
BBVA SM
$654,958,012
$98,211,191
15.00%
SWEDBANK AB
SWEDA SS
$432,687,640
$97,742,009
22.59%
NORDEA BANK ABP
NDA SS
$402,791,550
$93,919,686
23.32%
BANCO SANTANDER SA
SAN SM
$1,000,883,766
$92,470,331
9.24%
HSBC HOLDINGS PLC
5 HK
$663,235,896
$89,677,550
13.52%
CREDIT SUISSE GROUP AG-REG
CSGKF US
$87,187,834
$84,904,282
97.38%
NORDEA BANK ABP
NDA FH
$370,996,213
$83,118,214
22.40%
DEUTSCHE BANK AG
DBK GR
$317,980,963
$74,109,879
23.31%
SKANDINAVISKA ENSKILDA BANKEN
SEBA SS
$406,691,204
$72,802,325
17.90%
EQT AB
EQT SS
$468,505,877
$72,537,327
15.48%
EQT AB
EQBBF US
$138,085,899
$58,383,083
42.28%
CAIXABANK SA
CABK SM
$383,070,085
$49,920,176
13.03%
CREDIT AGRICOLE
ACA FP
$418,828,638
$48,765,866
11.64%
In March, the least profitable shorts in the European Banking sector are:
European Banking March P\L
Ticker
Short Interest
March MTM P\L
MTM P\L %
FINECOBANK SPA
FCBBF US
$132,197,587
($17,960,730)
-13.59%
BANQUE CANTONALE VAUDOISE
BCVN SW
$145,705,074
($6,882,300)
-4.72%
AKBANK T.A.S.
AKBNK TI
$120,116,057
($6,137,165)
-5.11%
TCS GROUP HOLDING PLC REG S
TCS LI
$8,462,388
($1,333,676)
-15.76%
FLOW TADERS LTD
FLOW NA
$7,281,241
($1,076,528)
-14.78%
Even though U.S.\Canadian Banking and Regional Banking shorts have had a very profitable March there may be a squeeze event in some securities soon as stock prices rebound. The SPDR S&P Bank ETF (KBE US) is already up +4.44% since its year-to-date low on March 23 and the SPDR S&P Regional Banking ETF (KRE US) is already up +6.20% from its March 23 year-to-date low.
Ex- SVB Financial Group (SIVB US) and Signature Bank NY (SBNY US) Bank sector short sellers are down -4.5% since March 23, giving back $587 million of their March profits. If this upward price trend continues in the rest of the Regional Banks, we should see short covering as short sellers rush to realize some of their mark-to-market profits. Regional Banks with higher-than-average mark-to-market losses, and therefore more squeezable, since March 23 are First Citizens BancShares Inc (FCNCA US), KeyCorp (KEY US), First Horizon Natl (FHN US), Zions Bancorp (ZION), Western Alliance Bancorp (WAL US) and First Republic Bank/CA (FRC US).
Increased short selling in European Banking stocks was not as broad as we saw in the U.S.\Canada region with only 51% of European Banking stocks seeing increased short selling versus 71% of U.S.\Canada Banking stocks. European stock prices are trending slightly lower since March 23 and if this downward price trend continues, we should see continued short selling in March’s most active shorts such as UniCredit SPA (USG IM), BNP Paribas (BNP FP), Banco Santander SA (SAN SM), Société Générale (GLE FP) and Deutsche Bank AG (DBK GR).
Central Bank interest rate stability or interest rate easing will prove to be the tipping point for future stock prices in the Banking sector and the direction of additional short selling or short covering. The Banking sector’s $12.8 billion of March short selling dwarfed the increased short selling in any other sector with Capital Goods coming in second with $4.4 billion of March short selling, Financial Services with $3.7 billion and Food, Beverage & Tobacco with $3.0 billion.
Outsized short-selling like we saw in the Banking sector are usually knee-jerk reactions to market turmoil and can reverse as quickly as they occur. Banking sector short selling could quickly turn into short covering and exacerbate upward price velocity. Short sellers need to be nimble and be ready to trim exposure if they see the herd reversing course, and long shareholders should be ready to increase exposure to take advantage of the herd pushing stock prices back up.
In either case, timely short-side transparency will be the key to extracting additional Alpha or protecting and realizing earned Alpha in the banking sector.
The Black MaP and Black App products provide a total view of long and short positioning in the market with a breakdown between Active\Passive long investors, 24 Fund type entities, over 50k securities globally across 108 countries and data from 58 regulatory exchanges.
