Danish pension fund plans to liquidate US treasuries, saying the United States is "no longer a high-quality credit entity".

As global risk aversion intensifies in the market, Danish large pension funds are beginning to reassess the "safe haven" status of US assets. Danish pension fund AkademikerPension stated that it plans to completely exit its investments in US Treasury bonds by the end of this month, citing concerns about the sustainability of the US fiscal situation and the credit risks associated with President Trump's policies. Anders Schelde, Chief Investment Officer of AkademikerPension, bluntly stated in an interview on Tuesday that the US is "basically no longer a high-quality credit entity" and that the long-term fiscal situation of the US government is unsustainable. The fund, which manages around $25 billion in assets for teachers and scholars, held around $100 million in US Treasury bonds as of the end of 2025. Schelde mentioned that the only reason for holding US bonds was for risk and liquidity management, but suitable alternatives have now been found. Although this amount is negligible in the vast US Treasury bond market, analysts point out that this move carries important symbolic significance in the current political context, reflecting European institutional investors reevaluating what truly constitutes "safe-haven assets". Previously, Deutsche Bank mentioned in a research report the possibility of European funds becoming "capitalized tools" as a potential countermeasure to ongoing threats from Trump. Schelde also mentioned that Trump's comments regarding "acquiring Greenland" were one of the important factors that prompted the fund to divest from US bonds. Concerns about fiscal discipline, expectations of a weakening US dollar, and concerns about the creditworthiness of US assets also collectively weakened their confidence in US assets. Greenland is a part of the Kingdom of Denmark, and both the local and Danish authorities have repeatedly stated that the island is "not for sale". As Trump continues to escalate his comments, Denmark's allies in Europe have also expressed unease. AkademikerPension is not an isolated case. Previously, Laerernes Pension significantly reduced its exposure to US bonds due to concerns about the sustainability of US debt and the independence of the Federal Reserve; PFA Pension, one of Denmark's largest pension and insurance institutions managing around $120 billion in assets, has also restructured in recent months to lower its related holdings; and this week Paedagogernes Pension stated that after selling US bonds, it will cease to launch new investment strategies targeting US assets with poor liquidity. However, there are differing opinions in the market. During the World Economic Forum in Davos, Chief Investment Officer Anne Walsh of Guggenheim Partners expressed disagreement with AkademikerPension's actions. She believed that despite heightened geopolitical uncertainties causing market nervousness, the US, as the world's largest economy, still has a stable credit profile, and at least in the first half of this year, credit and equity fundamentals remain solid. Walsh pointed out that the Federal Reserve is relatively cautious in the current cycle, leaning towards a looser policy stance compared to historical norms, and inflation is still easing, providing support to the US credit environment. She also emphasized that since the market turmoil caused by tariffs in 2025, diversification of asset allocation has become a consensus among investors, with funds gradually shifting from an overemphasis on the US structure to a more balanced global layout. In the backdrop of rising uncertainty, precious metals have performed particularly well. Walsh specifically mentioned the strong performance of gold, stating that it is expected to continue benefiting from market turmoil. Data shows that gold prices have risen by nearly 10% since the beginning of the year, once again highlighting its safe-haven characteristics during periods of volatility in US assets.