margaret patel in boston with all of that institutional pension money, what is the new actuarial assumption, that kathy jones have to worry about because she is so young, are we at 4%? margaret: 4% is realistic and maybe even on the generous side. nothing wrong with that if inflation is zero. tom: kathy jones just fell out of the chair. i cannot retire. we are not ready for this world, are we? margaret: that is one of the things that worries me, this adjustment that we are going through. it is more than just low yield or the potential for negative yield. what we have is a system that is a little bit unmoored from the experiences we have had over the decade. adjusting to that will be a challenge. tom: i don't understand the path back. german yields this week, hsbc came out and took the german ten-year down to -.81, and they got there in four days. kathy: i would tend to disagree that you have to ignore treasuries in your report audio and just go for risk. there is a time and place for risk but we are underweight high-yield right now. tom: i like it, dissension. ferro never does this, true di

kathy jones saying maybe not, margaret patel saying load the boat. have no idea what peter tchir is saying about high-yield. stay with us. this is "bloomberg real yield." ? tom: from our world headquarters in new york, i'm tom keene, in for jonathan ferro. people asking where jonathan is, he is on sabbatical. that is all there is to it. "bloomberg real yield" after this historic week. peter tchir is with us, kathy jones, and margie patel as we move through the weekend and drive the conversation into a tumultuous august end. we have to go to margie patel on the yield hog demand for credit. right now we are reaching for yield, we have to get there. the big issue -- goldman sachs had a note on this a couple hours ago -- on energy high-yield. is that another problem for high-yield, or was that market cleared a few years ago? margie: well, they did a fantastic job of clearing, primarily by issuing equity common stock to clear their balance sheet. and yes, i think a sensitive sector like that to downward prices, which is what the case his for energy, the s

smart conversation after a historic week, margaret patel on the high yield and peter tchir on the statehis is "bloomberg surveillance." president trump has a phone call with president xi coming soon. the chinese officials saying the u.s. plan for additional tariffs has pushed the two off track in resolving their dispute. yesterday beijing vowed to retaliate saying u.s. levies are a violation of the trade truce. james, when you look at the trade concerns, is this the sell-off and further inverted yield curve a product of trade concerns or is it something else deeper? james: i think the market is right to have concerns over trade. that the ticipate deal will get cut is looking unlikely on the basis that china believes they'll get a softer time negotiating with the democrats were they successful with trump. francine: what is this about, i keep hearing this is u.s. versus china supremacy? james: absolutely. francine: if this is it will last 125 years. james: and continue to bubble along and surface in various ways. but it's correct to say china has not really embraced free trade in the corr