SYDNEY—Hedge funds are throwing their weight behind a notoriously risky trade that suggests Australia’s biggest banks, among the most profitable in the world, might be headed for trouble. Rising bad debts, falling earnings and fears of a property-market downturn have triggered a record number of “shorts” on Australian banks, which have long been stock-market darlings because of their high shareholder returns. Short sellers borrow...

Source: Wall Street Journal May 22, 2016 13:26 UTC