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 aboutvs. shorting bonds (how do you "adjust" for liquidity)?
Any other nuances for shorting credit (interested in mechanics of shorting rather than credit analysis)?