A major Danish pension fund has announced plans to sell its entire holdings of U.S. Treasury bonds, citing concerns over America’s worsening public finances, as political tensions rise between Denmark and the United States over Greenland.
AkademikerPension, a pension operator serving Denmark’s academic and professional workforce, said it will divest roughly $100 million in U.S. Treasurys by the end of the month. The decision, according to the fund, is primarily driven by worries about the United States’ growing debt burden and long-term fiscal sustainability.
Anders Schelde, AkademikerPension’s chief investment officer, said the fund views U.S. government finances as increasingly fragile amid years of heavy borrowing and rising interest costs.
“The [U.S.] finances made us think that we need to make an effort to find an alternative way of conducting our liquidity and risk management,” Schelde said in comments reported by CNBC, adding that the fund has now identified and begun executing alternative strategies.
Debt, Downgrades, and Investor Anxiety
The move follows mounting warning signs around U.S. fiscal health. The United States posted a $1.78 trillion budget deficit last year, only slightly lower than the previous fiscal year, as debt servicing costs continued to rise. In May, Moody’s Ratings downgraded the U.S. sovereign credit rating to Aa1 from Aaa, citing persistent deficits and the high cost of refinancing government debt at elevated interest rates.
While Schelde stressed that the decision was “not directly related” to geopolitics, he acknowledged that escalating tensions between the U.S. and Europe did not make the choice more difficult.
Greenland Dispute Adds Strain
Relations between Washington and Copenhagen have deteriorated after U.S. President Donald Trump renewed threats to impose tariffs on European countries unless Greenland—an autonomous territory of Denmark—is ceded to U.S. control. Trump said over the weekend that tariffs could begin as early as February 1, rising to as much as 25% by June 1.
Denmark and other European leaders have pushed back strongly. Greenland’s Prime Minister, Jens-Frederik Nielsen, said the territory would “not be pressured” and would instead stand firm on dialogue, respect, and international law.
European officials are reportedly weighing counter-tariffs and other economic measures, raising concerns among investors that political conflict could spill over into global capital markets.
Markets React to ‘Sell America’ Mood
Financial markets showed signs of strain this week as geopolitical uncertainty intensified. U.S. Treasury yields climbed, while the dollar and equities fell. Gold surged to new all-time highs, reflecting a growing “sell America” sentiment among global investors.
Ray Dalio, founder of Bridgewater Associates, warned at the World Economic Forum in Davos that prolonged trade and political conflicts could eventually trigger what he described as “capital wars,” in which sovereign wealth funds and institutional investors reduce exposure to U.S. assets.
“If countries stop seeing the U.S. as a stable trading partner, you can’t ignore the possibility that there’s not the same inclination to buy U.S. debt,” Dalio said.
A Signal Beyond Denmark
AkademikerPension’s decision, while modest in size relative to the vast U.S. Treasury market, is being closely watched as a potential signal of broader unease among European institutional investors.
Analysts note that if similar funds follow suit, sustained selling pressure could complicate Washington’s efforts to finance its growing deficits at affordable rates.
