We saw a big regulatory event last week when the Federal Communications Commission approved DirecTV’s request to transfer its spectrum licenses to AT&T, clearing the path to AT&T’s acquisition of the satellite service provider. For debt holders their concern may be how does approval impact yields on the bonds that they hold.
Consolidation in the telecommunications industry may cause event risks to run high where that risks is an increase in the debt burden of the company doing the acquiring. The telecom industry is plagued right now with declining consumer spending, falling profits, rising expenses, and heavy debt loads.
AT&T will assume $18 billion of DirecTV’s debt. In light of the impact on debt consolidation may have in the telecommunications industry, investors may be happy with the FCC’s decision because of the increase in earnings AT&T is expected to enjoy as a result of enhanced video offerings and reduced programming costs. 
1. Harper, David. “Corporate Bonds: An Introduction to Credit Risk.” Investopedia. http://www.investopedia.com/articles/03/110503.asp
2. Sorensen, Brad. “Telecommunications Sector Rating: Underperform.” Charles Schwab. 11 June 2015. http://www.schwab.com/public/schwab/nn/articles/Telecommunications-sector
3. Lindenberger, Michael A. and Gary Jacobson. “FCC Approves AT&T Merger with DirecTV, with Conditions.” Dallas Morning News. 24 July 2015. http://www.dallasnews.com/business/technology/headlines/20150724-fcc-approves-att-merger-with-directv-with-conditions1.ece
4. Zack’s Equity Research. “AT&T (T) Q2 Earnings Beat as Wireless Subscribers Increase.” 24 July 2015. http://www.zacks.com/stock/news/183161/atampt-t-q2-earnings-beat-as-wireless-subscribers-increase