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Danish Pension Fund Dumps U.S. Treasuries Amid Financial Stability Concerns
A Danish pension fund, AkademikerPension, is making headlines by announcing its plan to offload its entire $100 million holding of U.S. Treasuries by the end of this month. The move stems from growing worries about the financial stability of the U.S. government.
AkademikerPension confirmed to CBS News that it will shift its investments from U.S. Treasuries to the U.S. dollar and short-duration debt. Anders Schelde, the chief investment officer for AkademikerPension, stated, “The decision is rooted in the poor U.S. government finances, which make us think that we need to make an effort to find an alternative way of conducting our liquidity and risk management.”
This decision follows Moody’s Ratings’ downgrade of the U.S. credit rating in May, from the top-tier Aaa to Aa1. Moody’s cited increasing government debt and heightened policy uncertainty, particularly in connection with President Trump’s trade policies, as key factors in their downgrade.
For years, AkademikerPension, which provides pension plans for academics, has relied on U.S. Treasuries for liquidity. While Schelde clarified that the company’s decision is “not directly related to the ongoing rift between the US and Europe,” he conceded, “but of course that didn’t make it more difficult to take the decision.”
The move comes amidst President Trump’s intensified campaign to acquire Greenland, a Danish territory. The President has repeatedly asserted that the acquisition is vital for the security of the U.S. and its allies, a claim that has met with resistance from NATO.
Over the weekend, President Trump announced on Truth Social his intention to impose tariffs on eight major NATO trading partners, starting at 10% in February and escalating to 25% in June, until a deal is reached for the “Complete and Total purchase of Greenland.” This tariff announcement led to a dip in both U.S. and European stock markets.
The U.S. significantly depends on foreign investment to help finance its national debt. Deutsche Bank Research indicates that European countries hold a substantial $8 billion in U.S. bonds and equities, nearly double the amount held by the rest of the world combined.
Key foreign holders of U.S. debt include Japan, the U.K., and China, according to the U.S. Treasury Department.
During a press conference at the World Economic Forum in Davos, Switzerland, on Wednesday, Treasury Secretary Scott Bessent dismissed concerns about the Danish sell-off. “Denmark’s investment in U.S.
Treasury bonds, like Denmark itself, is irrelevant,” he remarked, as reported by CNBC. “That is less than $100 million.
They’ve been selling Treasuries for years, I’m not concerned at all.”