US EditionDanish Pension Fund to Sell $100 Million in Treasuries, Citing 'Poor' U.S. Government Finances
AkademikerPension plans to exit $100 million in U.S. Treasuries this month due to concerns over U.S. fiscal discipline and geopolitical risks linked to Greenland, fund officials said.
- This past week, Reuters reported that AkademikerPension is selling about $100 million of U.S. Treasuries, exiting its position, a spokesperson confirmed to CNBC.
- Concerns about the U.S. debt burden and borrowing costs drove the reassessment, with Anders Schelde, AkademikerPension investing chief, citing `poor government finances` and Moody's Ratings downgrade last year.
- Market moves showed a 'sell America' session with Treasury yields surging on Tuesday, while Dalio warned that `On the other side of trade, deficits, and trade wars, there are capital and capital wars`, CNBC's `Squawk Box` said.
- Amid threats of tariffs and diplomatic strain, some investors worry European countries could respond to the tariff threat beginning Feb. 1 and rising to 25% on June 1 by dumping U.S. asset holdings.
- The fund is executing an exit it expects to complete by the end of the month, and AkademikerPension said `Now we have found such a way and we executing on that.` as it adopts an alternative liquidity and risk management approach.
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Treasury Secretary Bessent says Denmark and its investment in the US are ‘irrelevant’
Treasury Secretary Scott Bessent on Wednesday offered some biting words about Denmark, which maintains territorial control over Greenland, after the European country’s pension fund announced it would unwind its investment in US government bonds.
Denmark is already doing it: Pension Fund AcademicsPension wants to sell its total holdings of US government bonds worth around $100 million. What if more funds follow the example?
In terms of value, it manages more than half a trillion Czech crowns, which is equivalent to a quarter of the Czech state budget. The Danish pension fund AkademikerPension holds savings of teachers and academics worth 164 billion Danish crowns. Due to US President Donald Trump's statements about taking over Greenland, it now plans to sell US government bonds, and that by the end of January.
A Danish pension fund has sold US bonds worth $100 million, but the sale is not a political statement, but is related to the US government's tense financial situation.
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