Sweden’s largest private pension fund has divested up to $8.8 billion in US Treasuries, marking the most significant withdrawal yet from American government bonds since President Donald Trump’s Greenland crisis erupted.
Alecta, which manages retirement savings for 2.8 million Swedes and 37,000 companies, sold most of its US Treasury holdings since early 2025 citing “increased risk and unpredictability in US politics,” business daily Dagens Industri reported Wednesday. The sell-off totaled $7.7 billion to $8.8 billion.
The move dwarfs Tuesday’s announcement by Danish pension fund AkademikerPension, which plans to dump $100 million in US Treasuries by February 1. Together, the Nordic divestments signal growing unease among European investors about America’s fiscal stability under Trump.
“This is connected to the decreased predictability of US policy in combination with large budget deficits and a growing national debt,” Alecta Chief Investment Officer Pablo Bernengo told Bloomberg. The fund adopted “a staged approach” to trimming holdings over the past year, well before Trump’s Greenland threats triggered this week’s market turmoil.
Markets plunged on Tuesday after Trump refused to rule out military force to seize Greenland, with the S&P 500 falling 2.1% in its worst day since October. Trump reversed course Wednesday, announcing a tariff pause after meeting with NATO Secretary General Mark Rutte in Davos.
Read: Markets Plunge as Trump Presses Greenland Takeover, Denmark Dumps Treasuries
AkademikerPension emphasized its decision stemmed from concerns about US fiscal health rather than retaliation. “When the calendar says February 1st, there will be no US government bonds in our portfolio,” CEO Jens Schelde said, citing “weak public finances in the US.”
European countries collectively own about $8 trillion in US stocks and bonds, according to Deutsche Bank. The Nordic divestments represent a fraction of that total but carry symbolic weight as institutional investors question America’s creditworthiness.
US Treasury Secretary Scott Bessent dismissed concerns, calling Denmark’s investment “irrelevant.” However, Alecta’s disclosure, which came hours after Bessent’s comments, revealed selling 77 to 88 times larger than the Danish fund’s holdings.
The 10-year Treasury yield spiked to 4.293% Tuesday but remained below the panic levels seen in April 2025, when Trump’s “Liberation Day” tariffs triggered a bond market revolt. “It’s not really a problem until 4.50% and higher,” Tom Essaye, founder of the Sevens Report on markets, said. “If yields keep rising, that will become an increasing headwind on markets and the economy.”
The divestments come as Trump pursues an aggressive foreign policy agenda that has rattled traditional US allies. When pension funds managing retirement savings for millions begin treating US government bonds as too risky, it signals a fundamental shift in how the world assesses American reliability.
Information for this story was found via Bloomberg, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.