Here's why investors are betting $3.7 billion against Toronto-Dominion, making it the world's most-shorted bank

• Investors have made Toronto-Dominion the most-shorted bank in the world, Bloomberg reports. 
• Short sellers have accumulated a staggering $3.7 billion in wagers against the Canadian lender.
• The short interest suggests increased investor pessimism toward TD and the American banking system. 

Investors appear more bearish on Canada-based lender Toronto-Dominion (TD) than any other bank in the world.

Short sellers have increased their bets against TD to $3.7 billion – the biggest short position against any financial institution, according to Bloomberg. Here's a closer look at what's going on.