Danish Pension Fund Dumps $100-M in U.S. Treasuries

A Danish pension fund plans to sell its entire holdings of US Treasuries—about $100 million—over concerns about the US government’s financial stability.

AkademikerPension, which provides pension plans for academics, has long used US Treasuries as a source of liquidity. (Photo: AkademikerPension Facebook)

AkademikerPension confirmed to CBS News that it will exit US Treasuries by the end of the month and instead turn to the US dollar and short-duration debt, Mary Cunningham reported for CBS News.

“The decision is rooted in the poor state of US government finances, which make us believe we need to find alternative ways to conduct our liquidity and risk management,” said Anders Schelde, chief investment officer of AkademikerPension.

Moody’s Ratings downgraded the US credit rating in May from the highest level, Aaa, to Aa1, citing rising government debt and heightened policy uncertainty tied to President Trump’s trade policies.

The US relies on foreign investment to help finance its debt.

According to Deutsche Bank Research, European countries hold $8 trillion worth of US bonds and equities—nearly double the amount held by the rest of the world combined.

AkademikerPension, which provides pension plans for academics, has long used US Treasuries as a source of liquidity, Schelde noted.

The move comes as President Trump intensifies pressure on Denmark over Greenland. Schelde said the decision was “not directly related to the ongoing rift between the US and Europe,” adding, “but of course that didn’t make it more difficult to take the decision.”

Treasury Secretary Scott Bessent said Tuesday at the World Economic Forum in Davos, Switzerland, that he did not believe European countries would abandon US Treasuries.