Sweden’s largest private pension fund, Alecta, has divested up to $8.8 billion in US Treasuries, citing increased risk and unpredictability in US politics and large budget deficits. This significant sell-off dwarfs smaller divestments from other Nordic pension funds, like AkademikerPension which will dump $100 million in US Treasuries. The actions signal growing unease among European investors about America’s fiscal stability. These decisions come as Trump pursues an aggressive foreign policy agenda that has rattled traditional US allies, with experts stating that if yields continue to rise, the markets and economy will be increasingly affected.
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Swedish pension fund Alecta cuts US Treasury holdings citing US politics, and the story starts to unfold. It seems the Swedish pension fund Alecta has made a significant move, divesting a considerable chunk of its holdings in US Treasuries. The reason? Increased risk and unpredictability stemming from the current political climate in the United States. While the exact reasoning hasn’t been directly attributed, it’s clear the fund is reacting to the state of US politics. This is no small potatoes either. Reports suggest the divestment totaled around 70 to 80 billion Swedish crowns, which translates to a substantial $7.7 to $8.8 billion.… Continue reading
Alecta, a major Swedish pension fund, has reportedly sold off a significant portion of its U.S. Treasury holdings, with estimates suggesting sales of approximately 70-80 billion Swedish krona. The fund confirmed that it had divested “most of its holdings.” The decision was made due to increased risk and uncertainty within U.S. politics.
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