Analysts and economists downplayed the possibility of foreign investors exiting US assets en masse, in large part because they have few other options.
A Danish pension fund and a major global bond investor said this month they were diversifying away from US bonds, spurring President Donald Trump to threaten “big retaliation” were Europeans — cumulatively the largest holders of US Treasurys — to dump them.
But if European nations did try, the sheer size of the American market means they would struggle to reallocate those resources elsewhere, a former Federal Reserve vice-chair noted on the Foreign Affairs podcast. And a fire sale could end up harming European investors even more than Washington itself, the Financial Times warned.
