European Pension Funds Divest from U.S. Treasury Bonds Amid Fiscal Concerns

Swedish pension fund Alecta has divested between $7.7 billion and $8.8 billion in U.S. Treasury bonds since early 2025. According to NS3.AI, this decision was driven by fiscal unpredictability and the increasing U.S. federal debt. Similarly, Denmark’s AkademikerPension has announced its intention to withdraw its entire $100 million investment in U.S. Treasury bonds. These actions reflect a broader concern among European institutional investors regarding the sustainability of American fiscal policy. The divestments occur in the context of escalating geopolitical tensions, prompting further debate over the future of U.S. fiscal stability.