Two of Europe's largest pension funds have taken significant steps to reduce their exposure to U.S. Treasury bonds, signaling growing institutional unease with American fiscal sustainability.
Key Divestments: Sweden's Alecta: One of Scandinavia's biggest pension managers has sold between $7.7 billion and $8.8 billion worth of U.S. Treasuries since the start of 2025.
*Denmark's AkademikerPension:** Has announced plans to completely exit its $100 million position in U.S. Treasury bonds.
Primary Motivation: The funds cite mounting U.S. federal debt and fiscal unpredictability as the core reasons for their strategic shift. This reflects a broader sentiment among some European institutional investors who are questioning the long-term stability of U.S. fiscal policy.
Broader Context: The divestments occur against a backdrop of rising geopolitical tensions and ongoing debates about debt sustainability in Washington. This move by conservative, long-term investors like pension funds is a notable market signal, potentially prompting other global asset managers to reassess their own allocations to U.S. government debt. $BTC $ETH $BNB #BTC #MWAM_Crypto