Danish Pension Fund Dumps Its US Treasuries

It's a move that might not ordinarily make headlines, but the current tensions between Denmark and the US have changed that. A Danish pension fund is selling all of its approximately $100 million in US treasuries by the end of the month because of what it calls "poor US government finances," reports Reuters. AkademikerPension manages retirement savings for Danish academics, and its move comes as President Trump ramps up his rhetoric on taking control of Greenland, a Danish territory.

"The US is basically not a good credit, and long-term the US government finances are not sustainable," Anders Schelde, chief investment officer at AkademikerPension, tells Bloomberg. The move is not explicitly tied to the dispute over Greenland, the company insists. Schelde pointed to America's large budget deficits and rising debt-servicing costs, saying the situation pushed the fund to overhaul how it manages liquidity and risk.

Some high-profile investors are warning that AkademikerPension may not be alone. Bridgewater Associates founder Ray Dalio tells CNBC that if countries begin to view the US as a less reliable trading partner, they could start reducing US assets, including government debt. The move follows last year's cut by Moody's, which lowered the US sovereign credit rating to Aa1, highlighting deficits and higher interest costs as key concerns.