Danish Fund Exits Treasurys

Danish pension fund AkademikerPension said it plans to exit its U.S. Treasury holdings by month’s end, citing concerns over U.S. government finances and rising debt, according to CNBC. Chief investment officer Anders Schelde said the fund views U.S. fiscal conditions as deteriorating, pointing to last year’s $1.78 trillion budget deficit and Moody’s downgrade of U.S. sovereign credit to Aa1 in May. While Schelde said the move was not directly driven by political tensions between Denmark and President Trump over Greenland, he acknowledged the dispute made the decision easier to execute. The fund currently holds about $100 million in Treasurys and is seeking alternative approaches to liquidity and risk management.