Danish pension fund to sell $100 million in Treasuries, citing ‘poor’ U.S. government finances

Danish pension operator AkademikerPension announced its decision to divest from U.S. Treasuries due to concerns over the country’s financial situation amidst escalating tensions with President Donald Trump’s interest in acquiring Greenland.

Anders Schelde, AkademikerPension’s Chief Investment Officer, cited the U.S. government’s poor financial health and escalating debt crisis as the primary reasons for the divestment. The decision comes as Trump threatens tariffs on European countries if Greenland is not sold to the U.S., further straining relations between the U.S. and Denmark.

“While our decision is not directly linked to the U.S.-Europe rift, it certainly influenced our choice,” Schelde stated in a CNBC interview.

The pension fund currently holds approximately $100 million in U.S. Treasuries, with plans to fully divest by the end of the month. Schelde highlighted the U.S.’ mounting debt and budget deficit as key factors driving the divestment.

Moody’s Ratings downgraded the U.S.’ sovereign credit rating due to the budget deficit and high borrowing costs, prompting AkademikerPension to seek alternative risk management strategies.

Denmark’s resistance to Trump’s acquisition of Greenland has intensified, leading to speculation of retaliatory economic measures by European nations. The geopolitical uncertainty has sparked market volatility, with Treasury yields rising and investors reevaluating their U.S. investments.

Ray Dalio, founder of Bridgewater Associates, warned of potential capital wars as sovereign funds may reconsider investing in the U.S. amid trade conflicts and geopolitical tensions.

Reuters initially reported AkademikerPension’s decision to divest from U.S. Treasuries.