Questions for Fixed Income Short Sellers

Long only analyst here interested in getting some insight from traders/PMs with experience on the short side for fixed income:

- What drives collateral/borrow for short trades other than the more intuitive factors: (credit quality/duration/supply and demand)? Is this what people mean when talking about funding costs?

- How do you think about CDS vs. shorting bonds (how do you "adjust" for liquidity)?

- Any other nuances for shorting credit (interested in mechanics of shorting rather than credit analysis)?

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