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Middle market collateralized loan obligations (MM CLOs) have seen remarkable growth in recent years, and middle market warehouse lines have expanded alongside them. At the start of 2020, just before the arrival of the COVID-19 pandemic, S&P Global Ratings had ratings on 86 MM CLO transactions and five warehouse line transactions. By mid-2026, those figures had increased sharply: we now rate more than 330 U.S. MM CLOs and 47 U.S. middle market warehouse transactions. These warehouses come from 12 managers and represent about $41.9 billion in assets. These warehouse transactions serve a useful purpose in allowing direct lenders to scale their businesses, and their growth has also drawn investor attention. We routinely field questions from investors in the U.S. and Japan about how these transactions work, how they differ from MM CLOs, and how we rate them. This article is intended to answer those questions and provide a starting point for discussions. We’ll start with the basics and then move on to how we analyze CLO warehouses. Read more with @SPGlobalRatings: https://t.co/NPWcX1efV2