Nordic Pension Giants Liquidate US Treasuries, Citing Fiscal & Political Risks

In a stark warning to the US Treasury market, major Nordic pension funds have accelerated their exit from US government debt, citing the twin threats of spiraling fiscal deficits and the weaponization of US economic policy.

Alecta, Sweden‘s largest private pension fund manager, and Denmark’s AkademikerPension have confirmed they are reducing or eliminating their exposure to US Treasuries. This move marks a significant psychological shift: reliable, long-term institutional capital is abandoning the world's supposed “risk-free” asset.

The Credibility Crisis

Pablo Bernengo, CIO of Alecta, confirmed the fund has been offloading a position estimated at $11 billion (100 billion SEK) since early 2025. Similarly, AkademikerPension aims to completely clear its US bond books by month's end.

• Total Divestment Size: Estimated at $11 billion (100 billion SEK)
• Timeline: Selling accelerated since early 2025
• Key Driver: Fiscal Unsustainability regarding the US budget deficit.

Implications for the Dollar

This capital flight from Northern Europe may be a precursor to a broader trend among sovereign wealth funds and global pensions. If “real money” investors continue to lose faith in the US Treasury's ability to manage its debt-to-GDP ratio without debasing the currency, the US Dollar Index (DXY) faces severe long-term headwinds, regardless of short-term interest rate differentials.