Danish Fund Exits Treasurys

Benzinga

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.

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00:00It's Benzinga bringing Wall Street to Main Street

00:02Danish pension fund Akademiker Pension said it plans to exit U.S. Treasuries, citing concerns

00:07over U.S. government finances as tensions rise between Denmark and Trump over Greenland.

00:13Investing Chief Anders Scheldt said the decision reflects what the fund views as poor fiscal

00:17conditions tied to rising debt, according to CNBC.

00:21Scheldt said the decision was not directly tied to U.S.-Europe tensions, but acknowledged

00:25the rift made the move easier to carry out.

00:28The fund holds about $100 million in U.S. Treasuries and plans to exit the position by month's

00:34end.

00:35The U.S. ran a $1.78 trillion budget shortfall last year.

00:39Moody's cut the U.S. sovereign rating to AA-1 in May, citing the budget deficit and high

00:44borrowing costs.

00:45Scheldt said concerns about U.S. finances led the fund to find an alternative approach to

00:50liquidity and risk management and proceed with that strategy.

00:53For all things money, visit Benzinga.com.

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