Denmark liquidates, Sweden follows suit! Nordic pension funds successively sell off U.S. Treasuries

Major pension institutions in Northern Europe are accelerating their withdrawal from the U.S. Treasury market to avoid the rising macroeconomic risks and policy uncertainties in the United States. Sweden's largest private pension fund Alecta and Denmark's pension fund AkademikerPension have successively disclosed plans for large-scale reductions or even complete liquidation of their U.S. Treasury holdings, highlighting a waning confidence among European long-term capital in U.S. fiscal discipline and the safety of dollar assets. On January 21, Pablo Bernengo, Chief Investment Officer of Alecta, confirmed to Bloomberg that the institution has adopted a phased strategy since early 2025, selling off the vast majority of its U.S. Treasury holdings. According to a previous report by Swedish newspaper Dagens Industri, Alecta held approximately 100 billion Swedish Krona (about 11 billion USD) in U.S. Treasuries at the beginning of 2025. Meanwhile, Denmark's AkademikerPension also clearly stated on Tuesday, January 20, that it plans to completely liquidate its U.S. Treasury holdings by the end of this month. Both institutions pointed out that the widening U.S. budget deficit, soaring national debt, and declining policy predictability are the core factors driving this decision. This wave of sell-offs is not an isolated event but reflects a re-evaluation by Nordic institutional investors of what constitutes a "safe haven" asset in the current U.S. political and fiscal climate. In addition to concerns about fiscal sustainability, the geopolitical tensions triggered by the Trump administration's recent territorial claims over Greenland have also become an important catalyst for this asset allocation adjustment. Anders Schelde, Chief Investment Officer of AkademikerPension, bluntly stated that the quality of the U.S. as a credit entity has declined, and its long-term fiscal situation is "unsustainable." Although some institutions have indicated they will continue to closely monitor developments and have not completely changed their views on U.S. risks, the divestment actions of Nordic pension giants send a clear signal to the market: Under the dual pressure of a weakening dollar and rising credit risks, U.S. Treasuries, once regarded as the safest asset globally, are facing severe challenges to their attractiveness. This series of reductions occurs against the backdrop of institutional investors rethinking what constitutes a safe harbor. With changes in the U.S. political climate and the visibility of debt issues, traditional risk-free assets—U.S. Treasuries—are facing re-pricing from European long-term investors. The actions of Alecta and AkademikerPension may just be the beginning, signaling that under the changing global macro environment, the pattern of international capital flows may face a new round of adjustments