The lowest rated notes in the junk bond market have grown cheaper since May.
Serious delinquencies on credit cards and auto debt have been creeping up in recent quarters.
The chain has been struggling to hold on amid stalling sales and a cutthroat competitive landscape.
Piper Jaffray's acquisition is just the latest in a series of investment bank mergers.
Analysts say that the proposal would impose higher costs on trading and impinge volume.