tom: this is a really important statement, because we have margie patel up in boston with all of that institutional pension money. what is the new actuarial assumption, that kathy jones, being so young, has to worry about? are we at 4%? margie: i think 4% is realistic and even slightly bit on the generous side. that is the reality with where we are. nothing wrong with that if inflation is zero. tom: kathy jones just fell out of the chair. i can never retire. we are not ready for this world, are we? kathy: no, and that is one of the things that worries me. that this adjustment that we are going through is more than just low yield or the potential for negative yield. what we have is a whole system that is a little bit unmoored from the experiences we have had over the decade. and adjusting to that is going to be a challenge. tom: how do we get back to being moored? i don't understand the path back. i saw german yields this week -- hsbc came out and took the german ten-year down to -.81, and they got there in four days. kathy: right. i would tend to disagree that you have to ignore treas

peter tchir is with us, kathy jones, and margie patel. e move through the weekend and drive the conversation into a tumultuous august. we have to go to margaret patel on the yield on 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? margaret: they did a fantastic job of clearing by issuing common stock to clear their balance sheet. a sensitive sector like that to done with prices, which is what the case is for energy, the sector has a way above average risk for those credits. tom: you have been historic saying dividend growth is a possibility as a yield alternative. are we closer to where dividend growth is the new yield? margaret: i think so. if you look a better quality high-yield, so-called short duration high-yield, you are looking at yields at 3.5, 4%. that is bumping into dividend yields of pretty good quality companies, where you ha

peter tchir and margie patel as well.his is bloomberg "real yield." ♪ tom: we welcome all of you worldwide. i am tom keene in for jonathan ferro. not final thoughts but because of the extraordinary nature of the week, kathy jones gonna margie patel, peter tchir with us. we are diving into the ramifications of this for the little guy. i don't know whether the little guy is $2000 or $100,000 or even a million dollars. what does the little guy do, pushed around by these institutional realities? at the end of the day, it has not changed much, being diversified, understanding your time horizon, and making sure you have some safe assets. we have been emphasizing more on the safe assets lately because we are getting more defensive in equities and fixed income. but nothing has changed, you still need that diversification. tom: this is important, i'm going into the real yield here. stays within two years but i'm going off of the actuarial assumption. margie, you shocked me with the idea of percent or lower. how do we get there if