April 30, 2012

Semi-Annual Report (Unaudited)

4BlackRock Credit Allocation Income Trust I, Inc. (PSW)

4BlackRock Credit Allocation Income Trust II, Inc. (PSY)

4BlackRock Credit Allocation Income Trust III (BPP)

4BlackRock Credit Allocation Income Trust IV (BTZ)

4BlackRock Floating Rate Income Trust (BGT)

Not FDIC Insured • No Bank Guarantee • May Lose Value

Table of Contents

	Page
Dear Shareholder	3
Semi-Annual Report:
Fund Summaries	4
The Benefits and Risks of Leveraging	14
Derivative Financial Instruments	15
Financial Statements:
Schedules of Investments	16
Statements of Assets and Liabilities	55
Statements of Operations	56
Statements of Changes in Net Assets	57
Statements of Cash Flows	60
Financial Highlights	61
Notes to Financial Statements	66
Officers and Directors	78
Additional Information	79

Fund Summary as of April 30, 2012

BlackRock Credit Allocation Income Trust I, Inc.

Fund Overview

BlackRock Credit Allocation Income Trust I, Inc.’s (PSW) (the “Fund”) primary investment objective is to provide holders of common shares (“Common Shareholders”) with high current income. The secondary investment objective of the Fund is to provide Common Shareholders with capital appreciation. The Fund seeks to achieve its investment objectives by investing, under normal market conditions, at least 80% of its assets in credit-related securities, including, but not limited to, investment grade corporate bonds, high yield bonds (commonly referred to as “junk” bonds), bank loans, preferred securities or convertible bonds or derivatives with economic characteristics similar to these credit-related securities. The Fund may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Fund’s investment objective will be achieved.

Portfolio Management Commentary

How did the Fund perform?

•

For the six months ended April 30, 2012, the Fund returned 13.41% based on market price and 7.14% based on net asset value (“NAV”). For the same period, the closed-end Lipper Corporate Debt Funds (BBB-Rated) category posted an average return of 8.46% based on market price and 5.24% based on NAV. All returns reflect reinvestment of dividends. The Fund’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on market price and performance based on NAV. The following discussion relates to performance based on NAV.

What factors influenced performance?

•

Spread sectors outperformed government-related debt for the six-month period as improving US economic fundamentals and accommodative monetary policy provided a backdrop that was conducive to credit spread compression. Accordingly, the Fund benefited from its allocations to investment grade and high yield corporate credit. The Fund’s high yield exposure was the largest contributor to performance despite recent weakness in the sector, as higher carry yields (income generation) and improving fundamentals helped to offset price declines. Within corporate credit, the Fund benefited from exposure to higher-beta names (those with greater sensitivity to market movements) in the industrials space. A bias toward financials also had a positive impact. Finally, the Fund’s duration stance (sensitivity to interest rate movements) contributed positively to returns as rates generally moved lower throughout the period.

•

The Fund’s duration and yield curve exposure was managed using interest rate derivative instruments such as futures contracts, options and swaps. These positions were put in place to limit the impact of expected volatility in interest rates and to express the Fund’s yield curve preference. These positions resulted in a slight net negative impact on performance for the period.

Describe recent portfolio activity.

•

During the six-month period, the Fund generally favored high quality companies with strong balance sheets. The Fund maintained a bias toward financials, but shifted to a neutral stance in industrials. The Fund increased exposure to the utilities sector, which appeared attractive on a relative basis while offering downside protection should the pace of the economic recovery continue to slow. The Fund maintained an emphasis on liquidity in order to take advantage of select opportunities in corporate credit. The Fund reduced its overall risk profile by decreasing leverage and portfolio duration over the period.

Describe portfolio positioning at period end.

•

European sovereign debt fears have once again resurfaced and macro risks remain a key driver of market volatility. As of period end, the Fund seeks to maintain a near-term short duration bias and remains cautiously optimistic on corporate credit.

•

The Fund maintained diversified exposure across investment grade and high yield corporate credits. Portfolio holdings at period end reflected a bias toward higher-quality issues and a preference for more stable industries and companies that offer good cash flows, earnings and revenue visibility and attractive downside protection. The Fund’s corporate credit holdings reflect a bias toward utilities over financials and industrials. The Fund favors media cable and media non-cable names as well as insurance companies.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

BlackRock Credit Allocation Income Trust I, Inc.

Fund Information
Symbol on New York Stock Exchange (“NYSE”)	PSW
Initial Offering Date	August 1, 2003
Yield on Closing Market Price as of April 30, 2012 ($10.08)1	7.08%
Current Monthly Distribution per Common Share2	$0.0595
Current Annualized Distribution per Common Share2	$0.7140
Economic Leverage as of April 30, 20123	28%

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

2

The distribution rate is not constant and is subject to change.

3

Represents reverse repurchase agreements as a percentage of total managed assets, which is the total assets of the Fund (including any assets attributable to any borrowings) minus the sum of liabilities (other than borrowings representing financial leverage). For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 14.

The table below summarizes the changes in the Fund’s market price and NAV per share:

	4/30/12	10/31/11	Change	High	Low
Market Price	$10.08	$  9.25	8.97%	$10.31	$  8.86
Net Asset Value	$10.83	$10.52	2.95%	$10.88	$10.06

The following charts show the portfolio composition and credit quality allocations of the Fund’s long-term investments:

Portfolio Composition
	4/30/12		10/31/11
Corporate Bonds	80	%	82	%
Preferred Securities	17		15
Asset Backed Securities	1		1
Taxable Municipal Bonds	1		1
US Treasury Obligations	1		1

Credit Quality Allocations4
	4/30/12		10/31/11
AAA/Aaa5	2	%	1	%
AA/Aa	5		7
A	25		28
BBB/Baa	42		38
BB/Ba	15		15
B	7		8
CCC/Caa	1		1
Not Rated	3		2

4

Using the higher of Standard & Poor’s (“S&P’s”) or Moody’s Investors Service (“Moody’s”) ratings.

5

Includes US Treasury obligations that are deemed AAA by the investment advisor

Fund Summary as of April 30, 2012

BlackRock Credit Allocation Income Trust II, Inc.

Fund Overview

BlackRock Credit Allocation Income Trust II, Inc.’s (PSY) (the “Fund”) primary investment objective is to provide Common Shareholders with current income. The secondary investment objective of the Fund is to provide Common Shareholders with capital appreciation. The Fund seeks to achieve its investment objectives by investing, under normal market conditions, at least 80% of its assets in credit-related securities, including, but not limited to, investment grade corporate bonds, high yield bonds (commonly referred to as “junk” bonds), bank loans, preferred securities or convertible bonds or derivatives with economic characteristics similar to these credit-related securities. The Fund may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Fund’s investment objective will be achieved.

Portfolio Management Commentary

How did the Fund perform?

•

For the six months ended April 30, 2012, the Fund returned 14.78% based on market price and 7.57% based on NAV. For the same period, the closed-end Lipper Corporate Debt Funds (BBB-Rated) category posted an average return of 8.46% based on market price and 5.24% based on NAV. All returns reflect reinvestment of dividends. The Fund’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on market price and performance based on NAV. The following discussion relates to performance based on NAV.

What factors influenced performance?

•

Spread sectors outperformed government-related debt for the six-month period as improving US economic fundamentals and accommodative monetary policy provided a backdrop that was conducive to credit spread compression. Accordingly, the Fund benefited from its allocations to investment grade and high yield corporate credit. The Fund’s high yield exposure was the largest contributor to performance despite recent weakness in the sector, as higher carry yields (income generation) and improving fundamentals helped to offset price declines. Within corporate credit, the Fund benefited from exposure to higher-beta names (those with greater sensitivity to market movements) in the industrials space. A bias toward financials also had a positive impact. Finally, the Fund’s duration stance (sensitivity to interest rate movements) contributed positively to returns as rates generally moved lower throughout the period.

•

The Fund’s duration and yield curve exposure was managed using interest rate derivative instruments such as futures contracts, options and swaps. These positions were put in place to limit the impact of expected volatility in interest rates and to express the Fund’s yield curve preference. These positions resulted in a slight net negative impact on performance for the period.

Describe recent portfolio activity.

•

During the six-month period, the Fund generally favored high quality companies with strong balance sheets. The Fund maintained a bias toward financials, but shifted to a neutral stance in industrials. The Fund increased exposure to the utilities sector, which appeared attractive on a relative basis while offering downside protection should the pace of the economic recovery continue to slow. The Fund maintained an emphasis on liquidity in order to take advantage of select opportunities in corporate credit. The Fund reduced its overall risk profile by decreasing leverage and portfolio duration over the period.

Describe portfolio positioning at period end.

•

European sovereign debt fears have once again resurfaced and macro risks remain a key driver of market volatility. As of period end, the Fund seeks to maintain a near-term short duration bias and remains cautiously optimistic on corporate credit.

•

The Fund maintained diversified exposure across investment grade and high yield corporate credits. Portfolio holdings at period end reflected a bias toward higher-quality issues and a preference for more stable industries and companies that offer good cash flows, earnings and revenue visibility and attractive downside protection. The Fund’s corporate credit holdings reflect a bias toward utilities over financials and industrials. The Fund favors media cable and media non-cable names as well as insurance companies.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

BlackRock Credit Allocation Income Trust II, Inc.

Fund Information
Symbol on NYSE	PSY
Initial Offering Date	March 28, 2003
Yield on Closing Market Price as of April 30, 2012 ($10.79)1	6.78%
Current Monthly Distribution per Common Share2	$0.061
Current Annualized Distribution per Common Share2	$0.732
Economic Leverage as of April 30, 20123	27%

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

2

The distribution rate is not constant and is subject to change.

3

Represents reverse repurchase agreements as a percentage of total managed assets, which is the total assets of the Fund (including any assets attributable to any borrowings) minus the sum of liabilities (other than borrowings representing financial leverage). For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 14.

The table below summarizes the changes in the Fund’s market price and NAV per share:

	4/30/12	10/31/11	Change	High	Low
Market Price	$10.79	$  9.74	10.78%	$10.81	$  9.42
Net Asset Value	$11.68	$11.25	3.82%	$11.70	$10.84

The following charts show the portfolio composition and credit quality allocations of the Fund’s long-term investments:

Portfolio Composition
	4/30/12		10/31/11
Corporate Bonds	79	%	80	%
Preferred Securities	18		17
US Treasury Obligations	1		1
Asset Backed Securities	1		1
Taxable Municipal Bonds	1		1

Credit Quality Allocations4
	4/30/12		10/31/11
AAA/Aaa5	2	%	1	%
AA/Aa	4		7
A	25		26
BBB/Baa	42		39
BB/Ba	17		17
B	7		7
CCC/Caa	1		1
Not Rated	2		2

4

Using the higher of S&P’s or Moody’s ratings.

5

Includes US Treasury obligations that are deemed AAA by the investment advisor.

Fund Summary as of April 30, 2012

BlackRock Credit Allocation Income Trust III

Fund Overview

BlackRock Credit Allocation Income Trust III’s (BPP) (the “Fund”) investment objective is to provide high current income consistent with capital preservation. The Fund seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets in credit-related securities, including, but not limited to, investment grade corporate bonds, high yield bonds (commonly referred to as “junk” bonds), bank loans, preferred securities or convertible bonds or derivatives with economic characteristics similar to these credit-related securities. The Fund may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Fund’s investment objective will be achieved.

Portfolio Management Commentary

How did the Fund perform?

•

For the six months ended April 30, 2012, the Fund returned 12.37% based on market price and 7.12% based on NAV. For the same period, the closed-end Lipper Corporate Debt Funds (BBB-Rated) category posted an average return of 8.46% based on market price and 5.24% based on NAV. All returns reflect reinvestment of dividends. The Fund’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on market price and performance based on NAV. The following discussion relates to performance based on NAV.

What factors influenced performance?

•

Spread sectors outperformed government-related debt for the six-month period as improving US economic fundamentals and accommodative monetary policy provided a backdrop that was conducive to credit spread compression. Accordingly, the Fund benefited from its allocations to investment grade and high yield corporate credit. The Fund’s high yield exposure was the largest contributor to performance despite recent weakness in the sector, as higher carry yields (income generation) and improving fundamentals helped to offset price declines. Within corporate credit, the Fund benefited from exposure to higher-beta names (those with greater sensitivity to market movements) in the industrials space. A bias toward financials also had a positive impact. Finally, the Fund’s duration stance (sensitivity to interest rate movements) contributed positively to returns as rates generally moved lower throughout the period.

•

The Fund’s duration and yield curve exposure was managed using interest rate derivative instruments such as futures contracts, options and swaps. These positions were put in place to limit the impact of expected volatility in interest rates and to express the Fund’s yield curve preference. These positions resulted in a slight net negative impact on performance for the period.

Describe recent portfolio activity.

•

During the six-month period, the Fund generally favored high quality companies with strong balance sheets. The Fund maintained a bias toward financials, but shifted to a neutral stance in industrials. The Fund increased exposure to the utilities sector, which appeared attractive on a relative basis while offering downside protection should the pace of the economic recovery continue to slow. The Fund maintained an emphasis on liquidity in order to take advantage of select opportunities in corporate credit. The Fund reduced its overall risk profile by decreasing leverage and portfolio duration over the period.

Describe portfolio positioning at period end.

•

European sovereign debt fears have once again resurfaced and macro risks remain a key driver of market volatility. As of period end, the Fund seeks to maintain a near-term short duration bias and remains cautiously optimistic on corporate credit.

•

The Fund maintained diversified exposure across investment grade and high yield corporate credits. Portfolio holdings at period end reflected a bias toward higher-quality issues and a preference for more stable industries and companies that offer good cash flows, earnings and revenue visibility and attractive downside protection. The Fund’s corporate credit holdings reflect a bias toward utilities over financials and industrials. The Fund favors media cable and media non-cable names as well as insurance companies.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

BlackRock Credit Allocation Income Trust III

Fund Information
Symbol on NYSE	BPP
Initial Offering Date	February 28, 2003
Yield on Closing Market Price as of April 30, 2012 ($11.43)1	6.67%
Current Monthly Distribution per Common Share2	$0.0635
Current Annualized Distribution per Common Share2	$0.7620
Economic Leverage as of April 30, 20123	24%

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

2

The distribution rate is not constant and is subject to change.

3

Represents reverse repurchase agreements as a percentage of total managed assets, which is the total assets of the Fund (including any assets attributable to any borrowings) minus the sum of liabilities (other than borrowings representing financial leverage). For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 14.

The table below summarizes the changes in the Fund’s market price and NAV per share:

	4/30/12	10/31/11	Change	High	Low
Market Price	$11.43	$10.53	8.55%	$11.45	$10.05
Net Asset Value	$12.49	$12.07	3.48%	$12.55	$11.58

The following charts show the portfolio composition and credit quality allocations of the Fund’s long-term investments:

Portfolio Composition
	4/30/12		10/31/11
Corporate Bonds	83	%	83	%
Preferred Securities	15		15
US Treasury Obligations	1		1
Taxable Municipal Bonds	1		1

Credit Quality Allocations4
	4/30/12		10/31/11
AAA/Aaa5	1	%	1	%
AA/Aa	4		6
A	27		31
BBB/Baa	39		37
BB/Ba	16		15
B	8		8
CCC/Caa	1		1
Not Rated	4		1

4

Using the higher of S&P’s or Moody’s ratings.

5

Includes US Treasury obligations that are deemed AAA by the investment advisor.

Fund Summary as of April 30, 2012

BlackRock Credit Allocation Income Trust IV

Fund Overview

BlackRock Credit Allocation Income Trust IV’s (BTZ) (the “Fund”) investment objective is to provide current income, current gains and capital appreciation. The Fund seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets in credit-related securities, including, but not limited to, investment grade corporate bonds, high yield bonds (commonly referred to as “junk” bonds), bank loans, preferred securities or convertible bonds or derivatives with economic characteristics similar to these credit-related securities. The Fund may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Fund’s investment objective will be achieved.

Portfolio Management Commentary

How did the Fund perform?

•

For the six months ended April 30, 2012, the Fund returned 13.87% based on market price and 7.46% based on NAV. For the same period, the closed-end Lipper Corporate Debt Funds (BBB-Rated) category posted an average return of 8.46% based on market price and 5.24% based on NAV. All returns reflect reinvestment of dividends. The Fund’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on market price and performance based on NAV. The following discussion relates to performance based on NAV.

What factors influenced performance?

•

Spread sectors outperformed government-related debt for the six-month period as improving US economic fundamentals and accommodative monetary policy provided a backdrop that was conducive to credit spread compression. Accordingly, the Fund benefited from its allocations to investment grade and high yield corporate credit. The Fund’s high yield exposure was the largest contributor to performance despite recent weakness in the sector, as higher carry yields (income generation) and improving fundamentals helped to offset price declines. Within corporate credit, the Fund benefited from exposure to higher-beta names (those with greater sensitivity to market movements) in the industrials space. A bias toward financials also had a positive impact. Finally, the Fund’s duration stance (sensitivity to interest rate movements) contributed positively to returns as rates generally moved lower throughout the period.

•

The Fund’s duration and yield curve exposure was managed using interest rate derivative instruments such as futures contracts, options and swaps. These positions were put in place to limit the impact of expected volatility in interest rates and to express the Fund’s yield curve preference. These positions resulted in a slight net negative impact on performance for the period.

Describe recent portfolio activity.

•

During the six-month period, the Fund generally favored high quality companies with strong balance sheets. The Fund maintained a bias toward financials, but shifted to a neutral stance in industrials. The Fund increased exposure to the utilities sector, which appeared attractive on a relative basis while offering downside protection should the pace of the economic recovery continue to slow. The Fund maintained an emphasis on liquidity in order to take advantage of select opportunities in corporate credit. The Fund reduced its overall risk profile by decreasing leverage and portfolio duration over the period.

Describe portfolio positioning at period end.

•

European sovereign debt fears have once again resurfaced and macro risks remain a key driver of market volatility. As of period end, the Fund seeks to maintain a near-term short duration bias and remains cautiously optimistic on corporate credit.

•

The Fund maintained diversified exposure across investment grade and high yield corporate credits. Portfolio holdings at period end reflected a bias toward higher-quality issues and a preference for more stable industries and companies that offer good cash flows, earnings and revenue visibility and attractive downside protection. The Fund’s corporate credit holdings reflect a bias toward utilities over financials and industrials. The Fund favors media cable and media non-cable names as well as insurance companies.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

BlackRock Credit Allocation Income Trust IV

Fund Information
Symbol on NYSE	BTZ
Initial Offering Date	December 27, 2006
Yield on Closing Market Price as of April 30, 2012 ($13.26)1	7.10%
Current Monthly Distribution per Common Share2	$0.0785
Current Annualized Distribution per Common Share2	$0.9420
Economic Leverage as of April 30, 20123	27%

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

2

The distribution rate is not constant and is subject to change.

3

Represents reverse repurchase agreements as a percentage of total managed assets, which is the total assets of the Fund (including any assets attributable to any borrowings) minus the sum of liabilities (other than borrowings representing financial leverage). For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 14.

The table below summarizes the changes in the Fund’s market price and NAV per share:

	4/30/12	10/31/11	Change	High	Low
Market Price	$13.26	$12.08	9.77%	$13.34	$11.76
Net Asset Value	$14.44	$13.94	3.59%	$14.51	$13.37

The following charts show the portfolio composition of the Fund’s long-term investments and credit quality allocations of the Fund’s long-term investments:

Portfolio Composition
	4/30/12		10/31/11
Corporate Bonds	78	%	80	%
Preferred Securities	18		17
Asset Backed Securities	2		1
US Treasury Obligations	1		1
Taxable Municipal Bonds	1		1

Credit Quality Allocations4
	4/30/12		10/31/11
AAA/Aaa5	2	%	1	%
AA/Aa	3		7
A	29		29
BBB/Baa	40		37
BB/Ba	16		16
B	7		8
CCC/Caa	1		—
Not Rated	2		2

4

Using the higher of S&P’s or Moody’s ratings.

5

Includes US Treasury Obligations that are deemed AAA by the investment advisor.

Fund Summary as of April 30, 2012

BlackRock Floating Rate Income Trust

Fund Overview

BlackRock Floating Rate Income Trust’s (BGT) (the “Fund”) primary investment objective is to provide a high level of current income. The Fund’s secondary investment objective is to seek the preservation of capital. The Fund seeks to achieve its investment objectives by investing primarily, under normal conditions, at least 80% of its assets in floating and variable rate instruments of US and non-US issuers, including a substantial portion of its assets in global floating and variable rate securities including senior secured floating rate loans made to corporate and other business entities. Under normal market conditions, the Fund expects that the average effective duration of its portfolio will be no more than 1.5 years. The Fund may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Fund’s investment objectives will be achieved.

Portfolio Management Commentary

How did the Fund perform?

•

For the six months ended April 30, 2012, the Fund returned 16.01% based on market price and 6.83% based on NAV. For the same period, the closed-end Lipper Loan Participation Funds category posted an average return of 12.22% based on market price and 7.00% based on NAV. All returns reflect reinvestment of dividends. The Fund moved from a discount to NAV to a premium by period end, which accounts for the difference between performance based on market price and performance based on NAV. The following discussion relates to performance based on NAV.

What factors influenced performance?

•

Security selection among higher-quality loan instruments had a positive impact on the Fund’s performance. Selection in the electric and diversified manufacturing sectors also boosted returns. The Fund’s tactical exposure to high yield bonds contributed positively as the asset class outperformed loans given improving investor demand for riskier assets over the six-month period.

•

The Fund’s higher-quality loan bias, the core of its investment strategy, detracted from performance as lower-quality loan instruments rallied higher amid increasing demand for risk. The Fund’s exposure to the media non-cable sector also had a negative effect on returns.

Describe recent portfolio activity.

•

The period began with severe market volatility in reaction to headwinds from Europe’s debt crisis and a possible US government shut-down. However, the environment shifted in December when the European Central Bank announced a long-term refinancing operation. This liquidity program provided a much-needed short-term fix for the financial markets and helped to mitigate the risk of a collapse in the European banking system. Moreover, it was the catalyst for a positive turn in the valuation of risk assets.

•

During the period, the Fund maintained its focus on the higher quality portions of the loan market in terms of loan structure, liquidity and overall credit quality. Given the fragile outlook for global growth, the Fund remained cautious of lower-rated less-liquid loans. The Fund sought issuers with attractive risk-reward characteristics and superior fundamentals. While the developments during the period bode well for the posture of risk markets going forward, the Fund continues to maintain a high quality bias.

Describe portfolio positioning at period end.

•

At period end, the Fund held 81% of its total portfolio in floating rate loan interests (bank loans) and 15% in corporate bonds, with the remainder invested in a mix of asset-backed securities, foreign agency obligations and common stocks. The Fund’s largest sector exposures included media non-cable, media cable, and chemicals. The Fund ended the period with leverage at 29% of its total managed assets.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

BlackRock Floating Rate Income Trust

Fund Information
Symbol on NYSE	BGT
Initial Offering Date	August 30, 2004
Yield on Closing Market Price as of April 30, 2012 ($14.41)1	6.45%
Current Monthly Distribution per Common Share2	$0.0775
Current Annualized Distribution per Common Share2	$0.9300
Economic Leverage as of April 30, 20123	29%

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

2

The distribution rate is not constant and is subject to change.

3

Represents the loan outstanding as a percentage of total managed assets, which is the total assets of the Fund (including any assets attributable to any borrowings) minus the sum of liabilities (other than borrowings representing financial leverage). For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 14.

The table below summarizes the changes in the Fund’s market price and NAV per share:

	4/30/12	10/31/11	Change	High	Low
Market Price	$14.41	$13.00	10.85%	$14.57	$12.55
Net Asset Value	$14.26	$13.97	2.08%	$14.26	$13.53

The following charts show the portfolio composition of the Fund’s long-term investments and credit quality allocations of the Fund’s long-term investments excluding common stocks and floating rate loan interests:

Portfolio Composition
	4/30/12		10/31/11
Floating Rate Loan Interests	81	%	78	%
Corporate Bonds	15		18
Asset Backed Securities	2		2
Foreign Agency Obligations	1		1
Common Stocks	1		—
Other Interests	—		1

Credit Quality Allocations4
	4/30/12		10/31/11
AAA/Aaa	2	%	—
AA/Aa	8		9	%
A	1		2
BBB/Baa	20		25
BB/Ba	32		27
B	33		34
CCC/Caa	—		1
Not Rated	4		2

⁴ Using the higher of S&P’s or Moody’s ratings.

The Benefits and Risks of Leveraging

The Funds may utilize leverage to seek to enhance the yield and NAV of their common shares (“Common Shares”). However, these objectives cannot be achieved in all interest rate environments.

The Funds may utilize leverage by borrowing through a credit facility or through entering into reverse repurchase agreements. In general, the concept of leveraging is based on the premise that the financing cost of assets to be obtained from leverage, which will be based on short-term interest rates, will normally be lower than the income earned by each Fund on its longer-term portfolio investments. To the extent that the total assets of each Fund (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, each Fund’s shareholders will benefit from the incremental net income.

The interest earned on securities purchased with the proceeds from leverage is paid to shareholders in the form of dividends, and the value of these portfolio holdings is reflected in the per share NAV. However, in order to benefit shareholders, the yield curve must be positively sloped; that is, short-term interest rates must be lower than long-term interest rates. If the yield curve becomes negatively sloped, meaning short-term interest rates exceed long-term interest rates, income to shareholders will be lower than if the Funds had not used leverage.

To illustrate these concepts, assume a Fund’s capitalization is $100 million and it borrows for an additional $30 million, creating a total value of $130 million available for investment in long-term securities. If prevailing short-term interest rates are 3% and long-term interest rates are 6%, the yield curve has a strongly positive slope. In this case, the Fund pays borrowing costs and interest expense on the $30 million of borrowings based on the lower short-term interest rates. At the same time, the securities purchased by the Fund with assets received from the borrowings earn income based on long-term interest rates. In this case, the borrowing costs and interest expense of the borrowings is significantly lower than the income earned on the Fund’s long-term investments, and therefore the Fund’s shareholders are the beneficiaries of the incremental net income.

If short-term interest rates rise, narrowing the differential between short-term and long-term interest rates, the incremental net income pickup will be reduced or eliminated completely. Furthermore, if prevailing short-term interest rates rise above long-term interest rates, the yield curve has a negative slope. In this case, the Fund pays higher short-term interest rates whereas the Fund’s total portfolio earns income based on lower long-term interest rates.

Furthermore, the value of the Funds’ portfolio investments generally varies inversely with the direction of long-term interest rates, although other factors can influence the value of portfolio investments. In contrast, the redemption value of the Funds’ borrowings does not fluctuate in relation to interest rates. As a result, changes in interest rates can influence the Funds’ NAV positively or negatively in addition to the impact on Fund performance from borrowings discussed above.

The use of leverage may enhance opportunities for increased income to the Funds and Common Shareholders, but as described above, it also creates risks as short- or long-term interest rates fluctuate. Leverage also will generally cause greater changes in the Funds’ NAVs, market prices and dividend rates than comparable portfolios without leverage. If the income derived from securities purchased with assets received from leverage exceeds the cost of leverage, the Funds’ net income will be greater than if leverage had not been used. Conversely, if the income from the securities purchased is not sufficient to cover the cost of leverage, each Fund’s net income will be less than if leverage had not been used, and therefore the amount available for distribution to Shareholders will be reduced. Each Fund may be required to sell portfolio securities at inopportune times or at distressed values in order to comply with regulatory requirements applicable to the use of leverage or as required by the terms of leverage instruments, which may cause a Fund to incur losses. The use of leverage may limit each Fund’s ability to invest in certain types of securities or use certain types of hedging strategies. Each Fund will incur expenses in connection with the use of leverage, all of which are borne by Shareholders and may reduce income.

Under the Investment Company Act of 1940, as amended (the “1940 Act”), the Funds are permitted to issue senior securities representing indebtedness up to 33¹/3% of their total managed assets (each Fund’s net assets plus the proceeds of any outstanding borrowings used for leverage). If the Funds segregate liquid assets having a value not less than the repurchase price (including accrued interest), a reverse repurchase agreement will not be considered a senior security and therefore will not be subject to this limitation. Each Fund, however, voluntarily limits its aggregate economic leverage to 50% of its managed assets. As of April 30, 2012, the Funds had aggregate economic leverage from reverse repurchase agreements and/or borrowings through a credit facility as a percentage of their total managed assets as follows:

	Percent of Economic Leverage
PSW	28%
PSY	27%
BPP	24%
BTZ	27%
BGT	29%

Derivative Financial Instruments

The Funds may invest in various derivative financial instruments, including financial futures contracts, foreign currency exchange contracts, options and swaps, as specified in Note 2 of the Notes to Financial Statements, which may constitute forms of economic leverage. Such derivative financial instruments are used to obtain exposure to a market without owning or taking physical custody of securities or to hedge market, equity, credit, interest rate, foreign currency exchange rate, and/or other risks. Derivative financial instruments involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the derivative financial instrument. The Funds’ ability to use a derivative financial instrument successfully depends on the investment advisor’s ability to predict pertinent market movements accurately, which cannot be assured. The use of derivative financial instruments may result in losses greater than if they had not been used, may require a Fund to sell or purchase portfolio investments at inopportune times or for distressed values, may limit the amount of appreciation a Fund can realize on an investment, may result in lower dividends paid to shareholders or may cause a Fund to hold an investment that it might otherwise sell. The Funds’ investments in these instruments are discussed in detail in the Notes to Financial Statements.

Schedule of Investments April 30, 2012 (Unaudited)	BlackRock Credit Allocation Income Trust I, Inc. (PSW)
	(Percentages shown are based on Net Assets)

Asset-Backed Securities		Par (000)		Value
321 Henderson Receivables I LLC, Series 2012-1A,
Class A, 4.21%, 2/16/65 (a)	USD	250		$	257,043
Atrium CDO Corp., Series 5A, Class A4,
0.88%, 7/20/20 (a)(b)		650		549,250
SLM Student Loan Trust, Series 2004-B, Class A2,
0.67%, 6/15/21 (b)		468		448,515
Total Asset-Backed Securities — 1.1%				1,254,808
Corporate Bonds
Aerospace & Defense — 1.1%
BE Aerospace, Inc., 8.50%, 7/01/18		560		620,200
Huntington Ingalls Industries, Inc.:
6.88%, 3/15/18		150		158,625
7.13%, 3/15/21		140		148,225
Kratos Defense & Security Solutions, Inc.,
10.00%, 6/01/17		282		303,150
				1,230,200
Airlines — 0.7%
American Airlines Pass-Through Trust, Series 2011-2,
Class A, 8.63%, 4/15/23		112		117,743
Continental Airlines Pass-Through Certificates, Series
2009-2, Class B, 9.25%, 5/10/17		314		343,411
Delta Air Lines, Inc., Series 02G1, 6.72%, 7/02/24		260		273,571
				734,725
Auto Components — 0.8%
Delphi Corp., 6.13%, 5/15/21 (a)		130		138,450
Icahn Enterprises LP:
7.75%, 1/15/16		560		598,500
8.00%, 1/15/18		140		147,350
				884,300
Beverages — 0.5%
Constellation Brands, Inc., 7.25%, 5/15/17		460		519,800
Building Products — 0.3%
Building Materials Corp. of America (a):
7.00%, 2/15/20		85		90,738
6.75%, 5/01/21		220		229,075
				319,813
Capital Markets — 4.7%
Ameriprise Financial, Inc., 5.30%, 3/15/20 (c)		750		838,547
E*Trade Financial Corp., 12.50%, 11/30/17		440		512,600
The Goldman Sachs Group, Inc. (c):
5.75%, 1/24/22		385		402,015
6.25%, 2/01/41		1,050		1,066,950
Morgan Stanley (c):
5.75%, 1/25/21		1,025		1,012,120
5.50%, 7/28/21		265		259,073
Murray Street Investment Trust I, 4.65%, 3/09/17 (d)		150		150,901
UBS AG (c):
2.25%, 1/28/14		375		376,946
5.88%, 7/15/16		650		687,348
				5,306,500
Chemicals — 1.4%
Ashland, Inc., 9.13%, 6/01/17		10		11,100
Celanese US Holdings LLC, 5.88%, 6/15/21		370		396,825
Corporate Bonds		Par (000)		Value
Chemicals (concluded)
Hexion US Finance Corp., 6.63%, 4/15/20 (a)	USD	200		$	209,000
Ineos Finance Plc (a):
8.38%, 2/15/19		100		107,250
7.50%, 5/01/20		175		179,813
LyondellBasell Industries NV, 5.75%, 4/15/24 (a)		445		459,462
Solutia, Inc., 7.88%, 3/15/20		200		233,500
				1,596,950
Commercial Banks — 5.0%
Amsouth Bank, Series AI, 4.85%, 4/01/13		200		203,000
Asciano Finance Ltd., 5.00%, 4/07/18 (a)		200		208,196
Associated Banc-Corp, 5.13%, 3/28/16		515		545,222
Branch Banking & Trust Co. (b):
0.79%, 9/13/16		250		235,636
0.79%, 5/23/17		150		139,894
CIT Group, Inc.:
7.00%, 5/02/16 (a)		370		370,925
7.00%, 5/02/17 (a)		310		310,775
5.25%, 3/15/18		280		288,400
5.50%, 2/15/19 (a)		240		246,600
City National Corp., 5.25%, 9/15/20 (c)		550		587,757
Discover Bank, 8.70%, 11/18/19		300		378,392
HSBC Finance Corp., 6.68%, 1/15/21 (c)		350		377,995
Regions Financial Corp.:
4.88%, 4/26/13		600		618,000
5.75%, 6/15/15		460		485,300
SVB Financial Group, 5.38%, 9/15/20 (c)		550		605,146
				5,601,238
Commercial Services & Supplies — 4.0%
Aviation Capital Group Corp. (a):
7.13%, 10/15/20 (c)		2,200		2,250,159
6.75%, 4/06/21		550		544,170
Casella Waste Systems, Inc., 7.75%, 2/15/19		169		166,465
Clean Harbors, Inc., 7.63%, 8/15/16		306		321,300
Corrections Corp. of America, 7.75%, 6/01/17		775		840,875
Covanta Holding Corp., 6.38%, 10/01/22		155		159,435
Iron Mountain, Inc., 7.75%, 10/01/19		90		98,100
Mobile Mini, Inc., 7.88%, 12/01/20		65		69,550
				4,450,054
Communications Equipment — 1.0%
Avaya, Inc., 9.75%, 11/01/15 (c)		200		198,250
Brocade Communications Systems, Inc.,
6.88%, 1/15/20 (c)		700		764,750
Hughes Satellite Systems Corp., 6.50%, 6/15/19		100		107,000
				1,070,000
Construction Materials — 0.2%
HD Supply, Inc., 8.13%, 4/15/19 (a)		210		225,488
Consumer Finance — 5.3%
American Express Credit Corp., 2.75%, 9/15/15 (c)		1,400		1,452,643
Capital One Bank USA NA, 8.80%, 7/15/19		775		978,748
Daimler Finance North America LLC, 2.63%, 9/15/16 (a)		800		827,213
Ford Motor Credit Co. LLC:
7.00%, 4/15/15		690		769,350
5.88%, 8/02/21		140		158,212
Inmarsat Finance Plc, 7.38%, 12/01/17 (a)		420		451,500
SLM Corp., 6.25%, 1/25/16		1,180		1,215,400
Toll Brothers Finance Corp., 5.88%, 2/15/22		95		98,317
				5,951,383

Portfolio Abbreviations

To simplify the listings of portfolio holdings in the Schedules of Investments, the names and descriptions of many of the securities have been abbreviated according to the following list:	CAD	Canadian Dollar	GBP	British Pound
	CHF	Swiss Franc	LIBOR	London InterBank Offered Rate
	EUR	Euro	RB	Revenue Bonds
	FKA	Formerly Known As	USD	US Dollar

See Notes to Financial Statements.

Schedule of Investments (continued)	BlackRock Credit Allocation Income Trust I, Inc. (PSW)
	(Percentages shown are based on Net Assets)

Corporate Bonds		Par (000)		Value
Containers & Packaging — 1.5%
Ardagh Packaging Finance Plc, 9.13%, 10/15/20 (a)	USD	200		$	216,500
Ball Corp.:
7.13%, 9/01/16		400		438,000
6.75%, 9/15/20		505		558,025
Bemis Co., Inc., 6.80%, 8/01/19		200		238,439
Crown Americas LLC, 6.25%, 2/01/21		200		217,500
Sealed Air Corp., 8.38%, 9/15/21 (a)		30		34,050
				1,702,514
Diversified Financial Services — 8.6%
Ally Financial, Inc.:
4.50%, 2/11/14		225		227,250
8.30%, 2/12/15		390		428,025
8.00%, 11/01/31		230		263,350
Bank of America Corp. (c):
3.75%, 7/12/16		350		348,495
5.30%, 3/15/17		855		891,720
5.00%, 5/13/21		1,325		1,318,799
Citigroup, Inc. (c):
6.38%, 8/12/14		300		323,518
4.59%, 12/15/15		225		235,665
4.45%, 1/10/17		600		626,762
DPL, Inc., 7.25%, 10/15/21 (a)		255		283,050
General Motors Financial Co., Inc., 6.75%, 6/01/18		120		127,804
ING Bank NV, 5.00%, 6/09/21 (a)(c)		550		560,242
Intesa Sanpaolo SpA:
2.38%, 12/21/12		800		788,678
6.50%, 2/24/21 (a)(c)		100		90,856
Moody’s Corp., 6.06%, 9/07/17		2,500		2,629,082
Reynolds Group Issuer, Inc. (a):
7.88%, 8/15/19		255		275,400
9.88%, 8/15/19		100		104,250
WMG Acquisition Corp., 9.50%, 6/15/16 (a)		50		54,625
				9,577,571
Diversified Telecommunication Services — 3.5%
AT&T, Inc., 6.30%, 1/15/38 (c)		1,000		1,198,478
Level 3 Financing, Inc. (a):
8.13%, 7/01/19		898		922,695
8.63%, 7/15/20		150		157,125
Telecom Italia Capital SA, 6.18%, 6/18/14		225		232,268
Telefonica Emisiones SAU, 5.46%, 2/16/21		310		291,349
Verizon Communications, Inc., 7.35%, 4/01/39 (c)		660		905,356
Windstream Corp., 7.88%, 11/01/17		160		176,800
				3,884,071
Electric Utilities — 1.8%
CMS Energy Corp., 5.05%, 3/15/22		275		279,923
Great Plains Energy, Inc., 5.29%, 6/15/22 (d)		375		409,933
Progress Energy, Inc., 7.00%, 10/30/31 (c)		1,000		1,305,337
				1,995,193
Electronic Equipment, Instruments & Components — 0.3%
Jabil Circuit, Inc., 8.25%, 3/15/18		200		233,000
NXP BV, 3.22%, 10/15/13 (b)		95		95,000
				328,000
Energy Equipment & Services — 2.9%
Atwood Oceanics, Inc., 6.50%, 2/01/20		25		26,313
Energy Transfer Partners LP, 5.20%, 2/01/22		700		746,126
Ensco Plc, 4.70%, 3/15/21 (c)		460		501,932
Frac Tech Services LLC, 7.13%, 11/15/18 (a)		250		258,125
Hornbeck Offshore Services, Inc., 5.88%, 4/01/20 (a)		65		64,837
Key Energy Services, Inc., 6.75%, 3/01/21		175		180,250
MEG Energy Corp., 6.50%, 3/15/21 (a)		225		236,812
Oil States International, Inc., 6.50%, 6/01/19		120		126,900
Peabody Energy Corp., 6.25%, 11/15/21 (a)		370		374,625

Corporate Bonds		Par (000)		Value
Energy Equipment & Services (concluded)
Transocean, Inc.:
6.50%, 11/15/20	USD	265		$	304,333
6.38%, 12/15/21		320		374,718
				3,194,971
Food & Staples Retailing — 1.3%
Wal-Mart Stores, Inc., 6.20%, 4/15/38 (c)		1,075		1,406,861
Food Products — 0.9%
Kraft Foods, Inc.:
6.50%, 8/11/17		385		467,161
6.13%, 8/23/18		390		471,705
Smithfield Foods, Inc., 10.00%, 7/15/14		86		100,620
				1,039,486
Gas Utilities — 0.2%
El Paso Natural Gas Co., 8.63%, 1/15/22		165		208,833
Health Care Equipment & Supplies — 0.6%
Fresenius US Finance II, Inc., 9.00%, 7/15/15 (a)		500		573,125
Teleflex, Inc., 6.88%, 6/01/19		115		123,050
				696,175
Health Care Providers & Services — 3.1%
Aetna, Inc., 6.75%, 12/15/37		400		519,291
Aviv Healthcare Properties LP, 7.75%, 2/15/19		105		109,200
HCA, Inc.:
8.50%, 4/15/19		55		61,703
6.50%, 2/15/20		560		599,200
7.25%, 9/15/20		195		215,962
INC Research LLC, 11.50%, 7/15/19 (a)		165		162,113
inVentiv Health, Inc., 10.00%, 8/15/18 (a)		60		53,800
Tenet Healthcare Corp.:
10.00%, 5/01/18		350		404,250
8.88%, 7/01/19		250		280,312
UnitedHealth Group, Inc., 6.88%, 2/15/38 (c)		800		1,071,761
				3,477,592
Health Care Technology — 0.9%
Amgen, Inc.:
5.15%, 11/15/41 (c)		957		997,334
5.65%, 6/15/42		8		8,900
				1,006,234
Household Durables — 0.2%
Standard Pacific Corp., 8.38%, 1/15/21		210		221,550
Independent Power Producers & Energy Traders — 1.1%
AES Corp.:
9.75%, 4/15/16		235		277,300
7.38%, 7/01/21 (a)		30		33,375
Calpine Corp., 7.25%, 10/15/17 (a)		100		106,750
Energy Future Intermediate Holding Co. LLC,
10.00%, 12/01/20		440		485,650
Laredo Petroleum, Inc.:
9.50%, 2/15/19		70		78,225
7.38%, 5/01/22 (a)		65		67,275
QEP Resources, Inc., 5.38%, 10/01/22		134		134,000
				1,182,575
Insurance — 6.8%
American International Group, Inc.:
3.80%, 3/22/17 (c)		345		356,322
8.25%, 8/15/18		150		181,744
6.40%, 12/15/20 (c)		610		700,682
Aon Corp., 5.00%, 9/30/20 (c)		1,600		1,777,771
Fairfax Financial Holdings Ltd., 5.80%, 5/15/21 (a)		700		680,129
Forethought Financial Group, Inc., 8.63%, 4/15/21 (a)		250		255,678
Genworth Financial, Inc., 7.63%, 9/24/21		225		222,165
ING Verzekeringen NV, 2.69%, 6/21/21 (b)	EUR	110		136,143
Manulife Financial Corp., 4.90%, 9/17/20	USD	1,000		1,044,983
MPL 2 Acquisition Canco, Inc., 9.88%, 8/15/18 (a)		100		86,250

See Notes to Financial Statements.

Schedule of Investments (continued)	BlackRock Credit Allocation Income Trust I, Inc. (PSW)
	(Percentages shown are based on Net Assets)

Corporate Bonds		Par (000)		Value
Insurance (concluded)
Principal Financial Group, Inc., 8.88%, 5/15/19	USD	225		$	291,423
Prudential Financial, Inc., 6.63%, 12/01/37 (c)		800		927,734
XL Group Ltd., 5.75%, 10/01/21		810		895,790
				7,556,814
IT Services — 0.7%
Epicor Software Corp., 8.63%, 5/01/19		160		165,600
Fidelity National Information Services, Inc.,
5.00%, 3/15/22 (a)		70		70,000
First Data Corp.:
7.38%, 6/15/19 (a)		215		219,837
8.25%, 1/15/21 (a)		20		19,700
12.63%, 1/15/21		170		170,425
SunGard Data Systems, Inc., 7.38%, 11/15/18		170		181,475
				827,037
Life Sciences Tools & Services — 1.9%
Bio-Rad Laboratories, Inc., 8.00%, 9/15/16		865		955,825
Life Technologies Corp., 6.00%, 3/01/20 (c)		1,000		1,162,765
				2,118,590
Machinery — 1.1%
Ingersoll-Rand Global Holding Co., Ltd.,
9.50%, 4/15/14		800		919,474
UR Financing Escrow Corp. (a):
5.75%, 7/15/18		55		56,788
7.38%, 5/15/20		140		147,000
7.63%, 4/15/22		129		136,417
				1,259,679
Media — 8.6%
AMC Networks, Inc., 7.75%, 7/15/21 (a)		90		100,575
CCH II LLC, 13.50%, 11/30/16		541		611,330
Comcast Corp., 6.30%, 11/15/17		800		970,414
Cox Communications, Inc., 8.38%, 3/01/39 (a)		800		1,148,628
CSC Holdings LLC:
8.50%, 4/15/14		160		176,400
8.63%, 2/15/19		275		312,125
DIRECTV Holdings LLC, 5.00%, 3/01/21 (c)		600		656,128
DISH DBS Corp., 7.00%, 10/01/13		450		482,063
Intelsat Jackson Holdings SA, 7.25%, 4/01/19		50		52,125
Intelsat Luxemburg SA:
11.25%, 2/04/17		150		155,625
11.50%, 2/04/17 (e)		100		104,250
The Interpublic Group of Cos., Inc., 10.00%, 7/15/17		275		313,156
Kabel BW Erste Beteiligungs GmbH,
7.50%, 3/15/19 (a)		230		245,525
News America, Inc., 6.15%, 3/01/37 (c)		950		1,055,212
Time Warner Cable, Inc., 6.75%, 6/15/39		925		1,115,360
Time Warner, Inc., 7.70%, 5/01/32 (c)		950		1,244,645
Unitymedia Hessen GmbH & Co. KG (FKA UPC
Germany GmbH), 8.13%, 12/01/17 (a)		240		257,400
Virgin Media Secured Finance Plc, 6.50%, 1/15/18		600		654,000
				9,654,961
Metals & Mining — 2.2%
Alcoa, Inc., 5.40%, 4/15/21		155		162,906
Barrick Gold Corp., 2.90%, 5/30/16 (c)		275		288,369
Barrick North America Finance LLC, 5.70%, 5/30/41 (c)		300		330,570
Freeport-McMoRan Copper & Gold, Inc.,
3.55%, 3/01/22		325		321,127
Freeport-McMoRan Corp., 7.13%, 11/01/27		700		863,821
New Gold, Inc., 7.00%, 4/15/20 (a)		30		30,675
Novelis, Inc., 8.75%, 12/15/20		230		253,575
Teck Resources Ltd., 10.75%, 5/15/19		200		247,500
				2,498,543
Corporate Bonds		Par (000)		Value
Multi-Utilities — 1.6%
CenterPoint Energy, Inc.:
5.95%, 2/01/17	USD	750		$	857,432
6.50%, 5/01/18		775		922,291
				1,779,723
Multiline Retail — 0.3%
JC Penney Co., Inc., 5.65%, 6/01/20 (c)		360		349,200
Oil, Gas & Consumable Fuels — 13.2%
Anadarko Petroleum Corp.:
5.95%, 9/15/16		244		282,099
6.38%, 9/15/17		10		11,884
Berry Petroleum Co., 6.38%, 9/15/22		100		104,000
BP Capital Markets Plc, 3.88%, 3/10/15 (c)		350		374,870
Buckeye Partners LP, 4.88%, 2/01/21		225		232,426
Chesapeake Midstream Partners LP:
5.88%, 4/15/21		140		133,000
6.13%, 7/15/22		110		105,875
Chesapeake Oilfield Operating LLC,
6.63%, 11/15/19 (a)(c)		15		14,100
Concho Resources, Inc., 5.50%, 10/01/22		100		100,000
CONSOL Energy, Inc., 6.38%, 3/01/21		105		98,700
Copano Energy LLC, 7.13%, 4/01/21		130		137,150
DCP Midstream LLC, 4.75%, 9/30/21 (a)		325		350,957
El Paso Pipeline Partners Operating Co. LLC:
6.50%, 4/01/20		340		390,556
5.00%, 10/01/21		125		132,056
Enbridge Energy Partners LP, 9.88%, 3/01/19		475		640,756
Energy XXI Gulf Coast, Inc., 7.75%, 6/15/19		240		247,800
Enterprise Products Operating LLC, 6.65%, 4/15/18 (c)		1,000		1,210,803
Everest Acquisition LLC / Everest Acquisition
Finance, Inc., 6.88%, 5/01/19 (a)		80		84,000
Forest Oil Corp., 8.50%, 2/15/14		295		317,125
Kinder Morgan Energy Partners LP, 6.85%, 2/15/20		1,000		1,209,390
Kodiak Oil & Gas Corp., 8.13%, 12/01/19 (a)		55		58,300
Linn Energy LLC:
6.25%, 11/01/19 (a)		260		256,100
7.75%, 2/01/21		110		116,050
Marathon Petroleum Corp., 3.50%, 3/01/16		325		340,898
MarkWest Energy Partners LP, 6.25%, 6/15/22		125		131,563
Newfield Exploration Co., 6.88%, 2/01/20		145		154,063
Nexen, Inc., 6.40%, 5/15/37		295		327,455
Oasis Petroleum, Inc.:
7.25%, 2/01/19		80		84,800
6.50%, 11/01/21		70		71,400
OGX Petroleo e Gas Participacoes SA,
8.50%, 6/01/18 (a)(c)		280		290,500
ONEOK Partners LP, 8.63%, 3/01/19		800		1,046,175
Petrobras International Finance Co.:
3.88%, 1/27/16		875		915,980
5.38%, 1/27/21		525		575,101
Petrohawk Energy Corp., 10.50%, 8/01/14		145		160,950
Petroleum Geo-Services ASA, 7.38%, 12/15/18 (a)		150		155,250
Phillips 66, 2.95%, 5/01/17 (a)		250		256,530
Pioneer Natural Resources Co.:
6.65%, 3/15/17		150		170,170
6.88%, 5/01/18		115		135,382
Plains Exploration & Production Co.:
10.00%, 3/01/16		95		104,500
6.75%, 2/01/22		15		15,600
Precision Drilling Corp., 6.50%, 12/15/21		95		98,800
Premier Oil Plc, 5.00%, 6/09/18		825		851,812
Range Resources Corp., 6.75%, 8/01/20		200		217,000
Ruby Pipeline LLC, 6.00%, 4/01/22 (a)		700		716,751
Samson Investment Co., 9.75%, 2/15/20 (a)		145		151,344
SandRidge Energy, Inc.:
7.50%, 3/15/21		45		45,450
8.13%, 10/15/22 (a)		50		51,875

See Notes to Financial Statements.

Schedule of Investments (continued)	BlackRock Credit Allocation Income Trust I, Inc. (PSW)
	(Percentages shown are based on Net Assets)

Corporate Bonds		Par (000)		Value
Oil, Gas & Consumable Fuels (concluded)
SM Energy Co.:
6.63%, 2/15/19	USD	55		$	58,025
6.50%, 11/15/21		80		84,400
Targa Resources Partners LP, 6.88%, 2/01/21		115		120,175
Tennessee Gas Pipeline Co., 8.00%, 2/01/16		195		227,311
Western Gas Partners LP, 5.38%, 6/01/21		350		381,867
The Williams Cos., Inc., 8.75%, 3/15/32		170		229,691
				14,778,815
Paper & Forest Products — 2.5%
Boise Paper Holdings LLC:
9.00%, 11/01/17		70		77,875
8.00%, 4/01/20		150		165,375
Georgia-Pacific LLC, 8.25%, 5/01/16 (a)		470		519,350
International Paper Co.:
7.50%, 8/15/21		775		983,902
7.30%, 11/15/39		800		989,883
Longview Fibre Paper & Packaging, Inc.,
8.00%, 6/01/16 (a)		80		80,800
				2,817,185
Pharmaceuticals — 4.1%
Capsugel Finance Co. SCA, 9.88%, 8/01/19 (a)	EUR	100		145,607
Merck & Co., Inc., 6.50%, 12/01/33	USD	475		654,982
Pfizer, Inc., 7.20%, 3/15/39 (c)		2,080		3,075,224
Roche Holdings, Inc., 7.00%, 3/01/39 (a)(c)		420		596,113
Valeant Pharmaceuticals International,
6.50%, 7/15/16 (a)		65		67,356
				4,539,282
Real Estate Investment Trusts (REITs) — 2.8%
AvalonBay Communities, Inc., 6.10%, 3/15/20 (c)		800		952,522
Developers Diversified Realty Corp.:
4.75%, 4/15/18		155		160,591
7.88%, 9/01/20		175		210,167
ERP Operating LP, 5.75%, 6/15/17		800		920,772
HCP, Inc., 5.38%, 2/01/21		250		275,430
UDR, Inc., 4.25%, 6/01/18		350		371,914
Ventas Realty LP/Ventas Capital Corp.,
4.75%, 6/01/21		270		278,361
				3,169,757
Real Estate Management & Development — 0.4%
Realogy Corp. (a)(c):
7.88%, 2/15/19		135		132,300
7.63%, 1/15/20		145		150,438
Shea Homes LP, 8.63%, 5/15/19 (a)		110		114,675
				397,413
Road & Rail — 1.4%
Avis Budget Car Rental LLC, 8.25%, 1/15/19		25		26,187
Florida East Coast Railway Corp., 8.13%, 2/01/17		40		41,100
The Hertz Corp., 6.75%, 4/15/19		77		80,369
Norfolk Southern Corp., 6.00%, 3/15/2105 (c)		1,200		1,391,143
				1,538,799
Semiconductors & Semiconductor Equipment — 0.7%
Advanced Micro Devices, Inc., 7.75%, 8/01/20		190		209,475
KLA-Tencor Corp., 6.90%, 5/01/18		461		557,815
				767,290
Software — 0.1%
Lawson Software, Inc., 9.38%, 4/01/19 (a)		140		146,300
Specialty Retail — 1.2%
AutoNation, Inc., 6.75%, 4/15/18		445		482,825
Limited Brands, Inc., 7.00%, 5/01/20		230		255,300
QVC, Inc., 7.38%, 10/15/20 (a)		25		27,375
Sally Holdings LLC, 6.88%, 11/15/19 (a)		140		149,100
VF Corp., 5.95%, 11/01/17		350		417,757
				1,332,357
		Par
Corporate Bonds		(000)		Value
Tobacco — 1.9%
Altria Group, Inc., 10.20%, 2/06/39	USD	937		$	1,501,238
Lorillard Tobacco Co., 3.50%, 8/04/16		600		628,723
				2,129,961
Wireless Telecommunication Services — 4.7%
America Movil SAB de CV, 2.38%, 9/08/16		585		597,002
American Tower Corp.:
4.50%, 1/15/18		450		475,171
5.90%, 11/01/21		295		331,598
Cricket Communications, Inc., 7.75%, 5/15/16		155		163,137
Crown Castle International Corp., 9.00%, 1/15/15		210		232,050
Crown Castle Towers LLC (a):
5.50%, 1/15/37		275		303,632
6.11%, 1/15/40		300		342,592
Digicel Group Ltd., 8.25%, 9/01/17 (a)		125		130,312
Nextel Communications, Inc., Series E,
6.88%, 10/31/13		195		195,000
SBA Tower Trust, 5.10%, 4/15/42 (a)		1,000		1,088,207
Sprint Capital Corp., 6.88%, 11/15/28		230		171,925
Sprint Nextel Corp. (a):
9.00%, 11/15/18		540		594,675
7.00%, 3/01/20		620		632,400
				5,257,701
Total Corporate Bonds — 108.1%				120,731,484
Preferred Securities
Capital Trusts
Capital Markets — 4.3%
Ameriprise Financial, Inc., 7.52%, 6/01/66 (b)		500		530,000
State Street Capital Trust III, 5.46% (b)(f)		725		727,842
State Street Capital Trust IV, 1.47%, 6/01/37 (b)		4,740		3,527,380
				4,785,222
Commercial Banks — 2.5%
Barclays Bank Plc (a)(b)(f):
5.93%,		425		386,750
7.43%,(c)		150		150,000
BNP Paribas, 7.20% (a)(b)(c)(f)		300		258,000
Credit Agricole SA, 8.38% (a)(b)(c)(f)		350		308,000
Dresdner Funding Trust I, 8.15%, 6/30/31 (a)		530		426,650
M&T Capital Trust II, 8.28%, 6/01/27		910		928,200
National City Preferred Capital Trust I, 12.00% (b)(f)		300		319,320
				2,776,920
Diversified Financial Services — 2.0%
JPMorgan Chase Capital XXIII, 1.50%, 5/15/47 (b)		3,085		2,282,965
Electric Utilities — 0.4%
PPL Capital Funding, 6.70%, 3/30/67 (b)		500		495,000
Insurance — 8.8%
Ace Capital Trust II, 9.70%, 4/01/30		500		683,396
The Allstate Corp., 6.50%, 5/15/67 (b)		500		488,750
American International Group, Inc., 8.18%, 5/15/68 (b)		225		240,469
AXA SA, 6.38% (a)(b)(f)		1,000		795,000
Chubb Corp., 6.38%, 3/29/67 (b)(c)		500		511,875
Farmers Exchange Capital, 7.05%, 7/15/28 (a)		500		553,446
Great-West Life & Annuity Insurance Co.,
7.15%, 5/16/46 (a)(b)		500		500,000
Liberty Mutual Group, Inc., 10.75%, 6/15/88 (a)(b)		500		680,000
Lincoln National Corp., 7.00%, 5/17/66 (b)		500		485,000
MetLife, Inc., 6.40%, 12/15/66		500		489,107
Mitsui Sumitomo Insurance Co., Ltd.,
7.00%, 3/15/72 (a)(b)		320		328,777

See Notes to Financial Statements.

Schedule of Investments (continued)	BlackRock Credit Allocation Income Trust I, Inc. (PSW)
	(Percentages shown are based on Net Assets)

Capital Trusts		Par (000)		Value
Insurance (concluded)
Northwestern Mutual Life Insurance,
6.06%, 3/30/40 (a)(c)	USD	900		$	1,072,333
Reinsurance Group of America, 6.75%, 12/15/65 (b)		700		647,712
Swiss Re Capital I LP, 6.85% (a)(b)(f)		450		413,844
ZFS Finance (USA) (a)(b):
Trust II, 6.45%, 12/15/65		1,800		1,764,000
Trust IV, 5.88%, 5/09/62		146		146,182
				9,799,891
Multi-Utilities — 0.9%
Dominion Resources Capital Trust I, 7.83%, 12/01/27		500		513,032
Dominion Resources, Inc., 7.50%, 6/30/66 (b)		500		532,500
				1,045,532
Oil, Gas & Consumable Fuels — 1.3%
Enterprise Products Operating LLC, 8.38%, 8/01/66 (b)		825		895,125
TransCanada PipeLines Ltd., 6.35%, 5/15/67 (b)		500		521,946
				1,417,071
Total Capital Trusts — 20.2%				22,602,601
Preferred Stocks		Shares
Auto Components — 0.1%
Dana Holding Corp., 4.00% (a)		1,000		125,375
Diversified Financial Services — 0.4%
Ally Financial, Inc., 7.00% (a)		510		432,863
Thrifts & Mortgage Finance — 0.0%
Fannie Mae, Series S, 8.25% (b)(g)		3,000		3,690
Freddie Mac, Series Z, 8.38% (b)(g)		3,000		3,750
				7,440
Wireless Telecommunication Services — 2.9%
Centaur Funding Corp., 9.08% (a)		2,720		3,223,200
Total Preferred Stocks — 3.4%				3,788,878
Trust Preferreds — 0.3%
Diversified Financial Services — 0.3%
GMAC Capital Trust I, Series 2, 8.13% (b)		13,680		321,770
Total Preferred Securities — 23.9%				26,713,249
Taxable Municipal Bonds — 0.9%		Par (000)
Metropolitan Transportation Authority, RB,
6.55%, 11/15/31	USD	800		981,208
US Government Sponsored
Agency Securities — 0.3%
Agency Obligations — 0.3%
Fannie Mae, 4.23%, 10/09/19 (c)(h)		390		314,003
US Treasury Obligations		Par (000)		Value
US Treasury Bonds (c):
3.75%, 8/15/41	USD	236		$	266,459
3.13%, 11/15/41		740		742,312
US Treasury Notes, 0.88%, 12/31/16 (c)		901		906,350
Total US Treasury Obligations — 1.7%				1,915,121
Total Long-Term Investments
(Cost — $143,090,707) — 136.0%				151,909,873
Short-Term Securities		Shares
BlackRock Liquidity Funds, TempFund,
Institutional Class, 0.15% (i)(j)		621,268		621,268
Total Short-Term Securities
(Cost — $621,268) — 0.6%				621,268
Options Purchased		Contracts
Exchange-Traded Put Options — 0.0%
S&P 500 Index, Strike Price USD 1,200.00,
Expires 6/16/12		67		17,420
		Notional Amount (000)
Over-the-Counter Interest Rate Call Swaptions — 0.0%
Receive a fixed rate of 2.40% and pay a floating rate
based on 3-month LIBOR, expires 5/11/12,
Broker Citibank NA	USD	1,300		46
Receive a fixed rate of 2.61% and pay a floating rate
based on 3-month LIBOR, expires 4/05/13,
Broker Citibank NA		800		37,051
				37,097
Over-the-Counter Interest Rate Put Swaptions — 0.1%
Receive a fixed rate of 2.61% and pay a floating rate
based on 3-month LIBOR, expires 4/05/13,
Broker Citibank NA		800		16,824
Pay a fixed rate of 4.50% and receive a floating rate
based on 3-month LIBOR, Expires 9/16/13,
Broker Credit Suisse Securities (USA) LLC	EUR	1,300		6,516
Pay a fixed rate of 4.50% and receive a floating rate
based on 3-month LIBOR, Expires 10/21/13,
Broker Deutsche Bank AG		1,300		7,984
Pay a fixed rate of 4.50% and receive a floating rate
based on 3-month LIBOR, Expires 12/12/13,
Broker Credit Suisse Securities (USA) LLC		900		7,148
Pay a fixed rate of 4.50% and receive a floating rate
based on 3-month LIBOR, Expires 2/02/17,
Broker Deutsche Bank AG	USD	1,200		40,277
				78,749
Total Options Purchased
(Cost — $429,102) — 0.1%				133,266
Total Investments Before Options Written
(Cost — $144,141,077) — 136.7%				152,664,407

See Notes to Financial Statements.

Schedule of Investments (continued)	BlackRock Credit Allocation Income Trust I, Inc. (PSW)
	(Percentages shown are based on Net Assets)

Options Written		Contracts		Value
Over-the-Counter Call Options — (0.0)%
S&P 500 Index, Strike Price USD 1,450.00,
Expires 6/15/12, Broker Deutsche Bank AG		1,700		$	(12,394	)
		Notional Amount (000)
Over-the-Counter Interest Rate Put Swaptions — (0.0)%
Receive a fixed rate of 6.00% and pay a floating rate
based on 3-month LIBOR, Expires 2/02/17,
Broker Deutsche Bank AG	USD	2,400		(35,633		)
Total Options Written
(Premiums Received — $66,010) — (0.0)%				(48,027		)
Total Investments, Net of Options Written — 136.7%				152,616,380
Liabilities in Excess of Other Assets — (36.7)%				(40,980,708		)
Net Assets — 100.0%				$	111,635,672

(a)

Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(b)

Variable rate security. Rate shown is as of report date.

(c)

All or a portion of security has been pledged as collateral in connection with open reverse repurchase agreements.

(d)

Represents a step-down bond that pays an initial coupon rate for the first period and then a lower coupon rate for the following periods. Rate shown is as of report date.

(e)

Represents a payment-in-kind security which may pay interest/dividends in additional par/shares.

(f)

Security is perpetual in nature and has no stated maturity date.

(g)

Non-income producing security.

(h)

Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.

(i)

Investments in companies considered to be an affiliate of the Fund during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate	Shares Held at October 31, 2011	Net Activity	Shares Held at April 30, 2012	Income
BlackRock Liquidity
Funds, TempFund,
Institutional Class	1,362,932	(741,664)	621,268	$ 926

(j)

Represents the current yield as of report date.

•

For Fund compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by Fund management. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.

•

Reverse repurchase agreements outstanding as of April 30, 2012 were as follows:

Counterparty	Interest Rate	Trade Date	Maturity Date	Net Closing Amount		Face Amount
Deutsche Bank AG	(0.50)%	1/17/12	Open	$	107,168	$	107,325
UBS Securities LLC	(1.25)%	2/02/12	Open	122,508		122,887
Credit Suisse
Securities
(USA) LLC	0.35%	2/15/12	Open	950,524		949,823
Credit Suisse
Securities
(USA) LLC	0.35%	2/22/12	Open	1,052,581		1,051,875
UBS Securities LLC	0.35%	2/28/12	Open	2,509,536		2,508,000
UBS Securities LLC	0.38%	2/28/12	Open	2,609,046		2,607,312
Credit Suisse
Securities
(USA) LLC	(0.25)%	3/07/12	Open	295,987		296,100
BNP Paribas
Securities Corp.	0.35%	3/12/12	Open	1,354,083		1,353,425
UBS Securities LLC	0.32%	3/13/12	Open	544,737		544,500
UBS Securities LLC	0.38%	3/13/12	Open	602,937		602,625
Deutsche Bank AG	0.17%	3/14/12	Open	721,664		721,500
Credit Suisse
Securities
(USA) LLC	0.30%	3/21/12	Open	1,388,224		1,387,750
Credit Suisse
Securities
(USA) LLC	0.35%	3/21/12	Open	707,282		707,000
Credit Suisse
Securities
(USA) LLC	0.38%	3/21/12	Open	6,194,048		6,191,369
Barclays
Capital, Inc.	0.35%	3/22/12	Open	662,870		662,613
UBS Securities LLC	0.35%	3/23/12	Open	92,415		92,380
Credit Suisse
Securities
(USA) LLC	0.35%	3/27/12	Open	332,607		332,494
Barclays
Capital, Inc.	(1.00)%	4/03/12	Open	147,195		147,309
UBS Securities LLC	0.10%	4/16/12	Open	174,007		174,000
Barclays
Capital, Inc.	0.35%	4/18/12	Open	3,329,295		3,328,875
UBS Securities LLC	0.34%	4/23/12	Open	3,877,368		3,877,075
UBS Securities LLC	0.35%	4/23/12	Open	374,442		374,412
Credit Suisse
Securities
(USA) LLC	0.35%	4/23/12	Open	602,297		602,250
Deutsche Bank AG	0.00%	4/24/12	Open	53,400		53,400
Deutsche Bank AG	0.12%	4/24/12	Open	907,779		907,758
UBS Securities LLC	0.34%	4/24/12	Open	332,522		332,500
Barclays
Capital, Inc.	0.35%	4/25/12	Open	1,351,579		1,351,500
BNP Paribas
Securities Corp.	0.19%	4/25/12	Open	265,803		265,795
BNP Paribas
Securities Corp.	0.23%	4/25/12	Open	311,037		311,025
BNP Paribas
Securities Corp.	0.37%	4/25/12	Open	2,044,126		2,044,000
BNP Paribas
Securities Corp.	0.35%	4/25/12	Open	250,015		250,000
UBS Securities LLC	0.25%	4/26/12	Open	246,008		246,000
UBS Securities LLC	0.35%	4/26/12	Open	1,263,936		1,263,875
UBS Securities LLC	0.38%	4/26/12	Open	6,808,960		6,808,600
Deutsche Bank AG	0.25%	4/26/12	Open	324,011		324,000
Total				$	42,911,997	$	42,901,352

See Notes to Financial Statements.

Schedule of Investments (continued)

BlackRock Credit Allocation Income Trust I, Inc. (PSW)

•

Financial futures contracts purchased as of April 30, 2012 were as follows:

Contracts	Issue	Exchange	Expiration		Notional Value	Unrealized Appreciation
32	5-Year US Treasury Note	Chicago Board of Trade	June 2012	USD	3,961,500	$	16,939

• Financial futures contracts sold as of April 30, 2012 were as follows:

Contracts	Issue	Exchange	Expiration		Notional Value	Unrealized Depreciation
1	Euro-Bund	Eurex	June 2012	EUR	186,761	$	(3,312)
95	10-Year US	Chicago Board
	Treasury Note	of Trade	June 2012	USD	12,566,719	(125,493)
10	30-Year US	Chicago Board
	Treasury Bond	of Trade	June 2012	USD	1,428,750	(11,376)
33	Ultra Long Term	Chicago Board
	US Treasury Bond	of Trade	June 2012	USD	5,207,812	(95,023)
Total						$	(235,204)

•

Foreign currency exchange contracts as of April 30, 2012 were as follows:

Currency Purchased	Currency Sold	Counterparty	Settlement Date	Unrealized Depreciation
USD   326,700	EUR   247,500	Citibank NA	7/25/12	$	(1,070)

•

Credit default swaps on single-name issues — buy protection outstanding as of April 30, 2012 were as follows:

Issuer	Pay Fixed Rate	Counterparty	Expiration Date	Notional Amount (000)		Unrealized Depreciation
STMicroelectronics NV	1.00%	Deutsche
		Bank AG	12/20/16	EUR	285	$	(4,560)
Southwest		Goldman
Airlines Co.	1.00%	Sachs & Co.	12/20/16	USD	280	(7,023)
Southwest		Royal Bank
Airlines Co.	1.00%	of Scotland Plc	12/20/16	USD	280	(8,111)
Time Warner Inc.	1.00%	Credit Suisse
		Securities
		(USA) LLC	3/20/17	USD	1,700	(1,527)
Emerson Electric		Morgan Stanley
Co.	1.00%	& Co., Inc.	3/20/17	USD	545	(4,329)
Total						$	(25,550)

•

Credit default swaps on single-name issues — sold protection outstanding as of April 30, 2012 were as follows:

Issuer	Receive Fixed Rate	Counterparty	Expiration Date	Issuer Credit Rating1	Notional Amount (000)2		Unrealized Appreciation (Depreciation)
Aviva USA		Deutsche
Corp.	1.00%	Bank AG	5/25/12	A	USD	650	$	(9	)
DIRECTV		Credit Suisse
Holdings		Securities
LLC	1.00%	(USA) LLC	3/20/17	BBB	USD	1,700		28,680
MetLife, Inc.		Deutsche
	1.00%	Bank AG	3/20/18	A-	USD	200		(4,175	)
Total							$	24,496

1

Using S&P’s rating.

2

The maximum potential amount the Fund may pay should a negative credit event take place as defined under the terms of agreement.

•

Credit default swaps on traded indexes - sold protection outstanding as of April 30, 2012 were as follows:

Index	Receive Fixed Rate	Counterparty	Expiration Date	Credit Rating3	Notional Amount (000)4		Unrealized Appreciation
Dow Jones CDX
North America
High Yield Index		Credit Suisse
Series 18,		Securities
Version 1	5.00%	(USA) LLC	6/20/17	B+	USD	435	$	6,585

3

Using S&P’s rating of the underlying securities.

4

The maximum potential amount the Fund may pay should a negative credit event take place as defined under the terms of agreement.

•

Interest rate swaps outstanding as of April 30, 2012 were as follows:

Fixed Rate	Floating Rate	Counterparty	Expiration Date	Notional Amount (000)		Unrealized Appreciation (Depreciation)
1.17%5	3-month	Credit Suisse
	LIBOR	Securities (USA) LLC	4/11/17	USD	1,700	$	(7,163)
1.18%5	3-month
	LIBOR	Deutsche Bank AG	4/11/17	USD	4,900	(23,018)
2.35%5	3-month
	LIBOR	Deutsche Bank AG	3/19/22	USD	3,200	(94,174)
4.03%5	3-month
	LIBOR	UBS AG	4/18/22	USD	1,400	(207,653)
2.05%6	3-month	Credit Suisse
	LIBOR	Securities (USA) LLC	5/02/22	USD	1,400	—
2.05%6	3-month	Credit Suisse
	LIBOR	Securities (USA) LLC	5/02/22	USD	900	458
Total						$	(331,550)

5

Fund pays a fixed interest rate and receives floating rate.

6

Fund pays a floating interest rate and receives fixed rate.

•

Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:

•

Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities

•

Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

•

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments and derivative financial instruments)

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

See Notes to Financial Statements.

Schedule of Investments (concluded)

BlackRock Credit Allocation Income Trust I, Inc. (PSW)

The following tables summarize the inputs used as of April 30, 2012 in determining the fair valuation of the Fund’s investments and derivative financial instruments:

Valuation Inputs		Level 1				Level 2				Level 3				Total
Assets:
Investments:
Long-Term
Investments:
Asset-Backed
Securities			—			$	705,558			$	549,250			$	1,254,808
Corporate
Bonds			—				119,879,672				851,812				120,731,484
Preferred
Securities		$	329,210				26,384,039				—				26,713,249
Taxable
Municipal
Bonds			—				981,208				—				981,208
US Government
Sponsored
Agency
Securities			—				314,003				—				314,003
US Treasury
Obligations			—				1,915,121				—				1,915,121
Short-Term
Securities			621,268				—				—				621,268
Total		$	950,478			$	150,179,601			$	1,401,062			$	152,531,141
Valuation Inputs			Level 1				Level 2				Level 3				Total
Derivative Financial Instruments1
Assets:
Equity
contracts		$	17,420				—				—			$	17,420
Interest rate
contracts			16,939			$	116,304				—				133,243
Credit
contracts			—				35,265				—				35,265
Liabilities:
Equity
contracts			—				(12,394	)			—				(12,394	)
Interest rate
contracts			(235,204	)			(367,641	)			—				(602,845	)
Foreign
currency
exchange
contracts			—				(1,070	)			—				(1,070	)
Credit
contracts			—				(29,725	)		$	(9	)			(29,734	)
Total		$	(200,845	)		$	(259,261	)		$	(9	)		$	(460,115	)

1

Derivative financial instruments are swaps, financial futures contracts, foreign currency exchange contracts and options. Swaps, financial futures contracts and foreign currency exchange contracts are valued at the unrealized appreciation/depreciation on the instrument and options are shown at value.

The following table is a reconciliation of Level 3 investments for which significant unobservable inputs were used in determining fair value:

		Asset-Backed Securities				Corporate Bonds				Total
Assets:
Balance, as of October 31, 2011		$	503,750			$	858,000			$	1,361,750
Accrued discounts/premiums			—				—				—
Net realized gain (loss)			10,695				—				10,695
Net change in unrealized appreciation/depreciation2			34,805				(6,188	)			28,617
Purchases			—				—				—
Sales			—				—				—
Transfers in3			—				—				—
Transfers out3			—				—				—
Balance, as of April 30, 2012		$	549,250			$	851,812			$	1,401,062

2

Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations. The change in unrealized appreciation/depreciation on investments still held at April 30, 2012 was $886,618.

3

The Fund’s policy is to recognize transfers in and transfers out as of the beginning of the period of the event or the change in circumstances that caused the transfer.

The following table is a reconciliation of Level 3 derivative financial instruments for which significant unobservable inputs were used in determining fair value:

		Credit Contracts
Assets/Liabilities:
Balance, as of October 31, 2011		$	1,175
Accrued discounts/premiums			2,105
Net realized gain (loss)			—
Net change in unrealized appreciation/depreciation4			(1,184	)
Purchases			—
Issuances5			—
Sales			—
Settlements6			(2,105	)
Transfers in3			—
Transfers out3			—
Balance, as of April 30, 2012		$	(9	)

4

Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations. The change in unrealized appreciation/depreciation on derivative financial instruments still held at April 30, 2012 was $(1,184).

5

Issuances represent upfront cash received on certain derivative financial instruments.

6

Settlements represent periodic contractual cash flows and/or cash flows to terminate certain derivative financial instruments.

A reconciliation of Level 3 investments and derivative financial instruments is presented when the Fund had a significant amount of Level 3 investments and derivative financial instruments at the beginning and/or end of the period in relation to net assets.

See Notes to Financial Statements.

Schedule of Investments April 30, 2012 (Unaudited)	BlackRock Credit Allocation Income Trust II, Inc. (PSY)
	(Percentages shown are based on Net Assets)

Asset-Backed Securities		Par (000)		Value
321 Henderson Receivables I LLC, Series 2012-1A,
Class A, 4.21%, 2/16/65 (a)	USD	1,034		$	1,064,160
Atrium CDO Corp., Series 5A, Class A4,
0.88%, 7/20/20 (a)(b)		2,650		2,239,250
SLM Student Loan Trust, Series 2004-B, Class A2,
0.67%, 6/15/21 (b)		1,968		1,887,501
Total Asset-Backed Securities — 1.1%				5,190,911
Corporate Bonds
Aerospace & Defense — 1.1%
BE Aerospace, Inc., 8.50%, 7/01/18		2,500		2,768,750
Huntington Ingalls Industries, Inc.:
6.88%, 3/15/18		610		645,075
7.13%, 3/15/21		600		635,250
Kratos Defense & Security Solutions, Inc.,
10.00%, 6/01/17		1,014		1,090,050
				5,139,125
Airlines — 0.7%
American Airlines Pass-Through Trust, Series 2011-2,
Class A, 8.63%, 4/15/23		553		583,597
Continental Airlines Pass-Through Certificates,
Series 2009-2, Class B, 9.25%, 5/10/17		1,362		1,488,112
Delta Air Lines, Inc., Series 02G1, 6.72%, 7/02/24		1,013		1,066,472
				3,138,181
Auto Components — 0.8%
Delphi Corp., 6.13%, 5/15/21 (a)		570		607,050
Icahn Enterprises LP:
8.00%, 1/15/18		2,270		2,426,062
8.00%, 1/15/18		610		642,025
				3,675,137
Beverages — 0.5%
Constellation Brands, Inc., 7.25%, 5/15/17		1,970		2,226,100
Building Products — 0.3%
Building Materials Corp. of America (a):
7.00%, 2/15/20		375		400,313
6.75%, 5/01/21		940		978,775
				1,379,088
Capital Markets — 5.3%
Ameriprise Financial, Inc., 5.30%, 3/15/20 (c)		3,250		3,633,705
E*Trade Financial Corp., 12.50%, 11/30/17		1,865		2,172,725
The Goldman Sachs Group, Inc. (c):
5.25%, 7/27/21		1,175		1,189,049
5.75%, 1/24/22		3,415		3,565,923
6.25%, 2/01/41		4,450		4,521,836
Morgan Stanley (c):
5.75%, 1/25/21		3,915		3,865,804
5.50%, 7/28/21		1,285		1,256,261
Murray Street Investment Trust I, 4.65%, 3/09/17 (d)		600		603,602
UBS AG (c):
2.25%, 1/28/14		1,627		1,635,443
5.88%, 7/15/16		2,800		2,960,885
				25,405,233
Chemicals — 1.4%
Ashland, Inc., 9.13%, 6/01/17		45		49,950
Celanese US Holdings LLC, 5.88%, 6/15/21		1,545		1,657,013
Hexion US Finance Corp., 6.63%, 4/15/20 (a)		865		903,925
Ineos Finance Plc (a):
8.38%, 2/15/19		320		343,200
7.50%, 5/01/20		730		750,075
LyondellBasell Industries NV, 5.75%, 4/15/24 (a)		1,885		1,946,262
Solutia, Inc., 7.88%, 3/15/20		860		1,004,050
				6,654,475

Corporate Bonds		Par (000)		Value
Commercial Banks — 5.0%
Amsouth Bank, Series AI, 4.85%, 4/01/13	USD	1,050		$	1,065,750
Asciano Finance Ltd., 5.00%, 4/07/18 (a)		900		936,881
Associated Banc-Corp, 5.13%, 3/28/16		2,200		2,329,103
Branch Banking & Trust Co. (b)(c):
0.79%, 9/13/16		1,100		1,036,798
0.79%, 5/23/17		675		629,524
CIT Group, Inc.:
7.00%, 5/02/16 (a)		1,570		1,573,925
7.00%, 5/02/17 (a)		1,250		1,253,125
5.25%, 3/15/18		1,190		1,225,700
5.50%, 2/15/19 (a)		1,040		1,068,600
City National Corp., 5.25%, 9/15/20 (c)		2,350		2,511,328
Discover Bank, 8.70%, 11/18/19		1,200		1,513,566
HSBC Finance Corp., 6.68%, 1/15/21		1,525		1,646,979
Regions Financial Corp.:
4.88%, 4/26/13		2,525		2,600,750
5.75%, 6/15/15		1,800		1,899,000
SVB Financial Group, 5.38%, 9/15/20		2,300		2,530,609
				23,821,638
Commercial Services & Supplies — 4.0%
Aviation Capital Group Corp. (a):
7.13%, 10/15/20 (c)		9,300		9,512,034
6.75%, 4/06/21		2,325		2,300,355
Casella Waste Systems, Inc., 7.75%, 2/15/19		721		710,185
Clean Harbors, Inc., 7.63%, 8/15/16		1,314		1,379,700
Corrections Corp. of America, 7.75%, 6/01/17		3,375		3,661,875
Covanta Holding Corp., 6.38%, 10/01/22		665		684,028
Iron Mountain, Inc., 7.75%, 10/01/19		390		425,100
Mobile Mini, Inc., 7.88%, 12/01/20		275		294,250
				18,967,527
Communications Equipment — 1.0%
Avaya, Inc., 9.75%, 11/01/15 (c)		900		892,125
Brocade Communications Systems, Inc.,
6.88%, 1/15/20 (c)		2,965		3,239,262
Hughes Satellite Systems Corp., 6.50%, 6/15/19		420		449,400
				4,580,787
Construction Materials — 0.2%
HD Supply, Inc., 8.13%, 4/15/19 (a)		900		966,375
Consumer Finance — 5.1%
American Express Credit Corp., 2.75%, 9/15/15 (c)		5,850		6,069,971
Capital One Bank USA NA, 8.80%, 7/15/19		3,325		4,199,146
Daimler Finance North America LLC, 2.63%, 9/15/16 (a)		3,425		3,541,505
Ford Motor Credit Co. LLC:
7.00%, 4/15/15		2,580		2,876,700
5.88%, 8/02/21		320		361,628
Inmarsat Finance Plc, 7.38%, 12/01/17 (a)		1,815		1,951,125
SLM Corp., 6.25%, 1/25/16		4,870		5,016,100
Toll Brothers Finance Corp., 5.88%, 2/15/22		410		424,315
				24,440,490
Containers & Packaging — 1.2%
Ardagh Packaging Finance Plc (a):
7.38%, 10/15/17		200		216,500
9.13%, 10/15/20		235		254,388
Ball Corp.:
7.13%, 9/01/16		1,750		1,916,250
6.75%, 9/15/20		2,210		2,442,050
Crown Americas LLC, 6.25%, 2/01/21		825		897,187
Sealed Air Corp., 8.38%, 9/15/21 (a)		130		147,550
				5,873,925
Diversified Financial Services — 6.5%
Ally Financial, Inc.:
4.50%, 2/11/14		1,775		1,792,750
8.30%, 2/12/15		1,230		1,349,925
8.00%, 11/01/31		840		961,800

See Notes to Financial Statements.

Schedule of Investments (continued)	BlackRock Credit Allocation Income Trust II, Inc. (PSY)
	(Percentages shown are based on Net Assets)

Corporate Bonds		Par (000)		Value
Diversified Financial Services (concluded)
Bank of America Corp.:
3.75%, 7/12/16 (c)	USD	1,395		$	1,389,001
5.30%, 3/15/17 (c)		3,640		3,796,327
5.00%, 5/13/21		50		49,766
Citigroup, Inc. (c):
6.38%, 8/12/14		1,300		1,401,913
4.59%, 12/15/15		975		1,021,216
4.45%, 1/10/17		2,680		2,799,536
DPL, Inc., 7.25%, 10/15/21 (a)		1,080		1,198,800
General Motors Financial Co., Inc., 6.75%, 6/01/18		500		532,515
ING Bank NV, 5.00%, 6/09/21 (a)(c)		2,350		2,393,759
Intesa Sanpaolo SpA:
2.38%, 12/21/12		3,500		3,450,468
6.50%, 2/24/21 (a)(c)		475		431,565
Moody’s Corp., 6.06%, 9/07/17		6,000		6,309,798
Reynolds Group Issuer, Inc. (a):
7.13%, 4/15/19		245		256,025
7.88%, 8/15/19		870		939,600
9.88%, 8/15/19		305		317,963
6.88%, 2/15/21		215		221,450
WMG Acquisition Corp., 9.50%, 6/15/16 (a)		205		223,963
				30,838,140
Diversified Telecommunication Services — 3.9%
AT&T, Inc., 6.30%, 1/15/38 (c)		4,000		4,793,912
Level 3 Financing, Inc. (a):
8.13%, 7/01/19		3,149		3,235,597
8.63%, 7/15/20		650		680,875
Telecom Italia Capital SA, 6.18%, 6/18/14		975		1,006,493
Telefonica Emisiones SAU, 5.46%, 2/16/21		1,360		1,278,176
Verizon Communications, Inc. (c):
1.95%, 3/28/14		3,650		3,735,242
7.35%, 4/01/39		2,375		3,257,911
Windstream Corp., 7.88%, 11/01/17		730		806,650
				18,794,856
Electric Utilities — 1.7%
CMS Energy Corp., 5.05%, 3/15/22		1,125		1,145,140
Great Plains Energy, Inc., 5.29%, 6/15/22 (d)		1,650		1,803,704
Progress Energy, Inc., 7.00%, 10/30/31 (c)		4,000		5,221,348
				8,170,192
Electronic Equipment, Instruments & Components — 0.3%
Jabil Circuit, Inc., 8.25%, 3/15/18		800		932,000
NXP BV, 3.22%, 10/15/13 (b)		400		400,000
				1,332,000
Energy Equipment & Services — 2.9%
Atwood Oceanics, Inc., 6.50%, 2/01/20		110		115,775
Energy Transfer Partners LP, 5.20%, 2/01/22		3,000		3,197,685
Ensco Plc, 4.70%, 3/15/21 (c)		1,965		2,144,122
Frac Tech Services LLC, 7.13%, 11/15/18 (a)		1,085		1,120,262
Hornbeck Offshore Services, Inc., 5.88%, 4/01/20 (a)		285		284,288
Key Energy Services, Inc., 6.75%, 3/01/21		745		767,350
MEG Energy Corp., 6.50%, 3/15/21 (a)		955		1,005,138
Oil States International, Inc., 6.50%, 6/01/19		505		534,038
Peabody Energy Corp., 6.25%, 11/15/21 (a)		1,555		1,574,437
Transocean, Inc.:
6.50%, 11/15/20		1,125		1,291,978
6.38%, 12/15/21		1,375		1,610,115
				13,645,188
Food & Staples Retailing — 0.8%
Wal-Mart Stores, Inc. (c):
5.25%, 9/01/35		2,500		2,871,985
6.20%, 4/15/38		875		1,145,119
				4,017,104

Corporate Bonds		Par (000)		Value
Food Products — 0.9%
Kraft Foods, Inc.:
6.50%, 8/11/17	USD	1,665		$	2,020,319
6.13%, 8/23/18		1,660		2,007,772
Smithfield Foods, Inc., 10.00%, 7/15/14		374		437,580
				4,465,671
Gas Utilities — 0.2%
El Paso Natural Gas Co., 8.63%, 1/15/22		695		879,631
Health Care Equipment & Supplies — 0.6%
Fresenius US Finance II, Inc., 9.00%, 7/15/15 (a)		2,250		2,579,062
Teleflex, Inc., 6.88%, 6/01/19		490		524,300
				3,103,362
Health Care Providers & Services — 3.7%
Aetna, Inc., 6.75%, 12/15/37 (c)		1,700		2,206,986
Aviv Healthcare Properties LP, 7.75%, 2/15/19		460		478,400
HCA, Inc.:
8.50%, 4/15/19		240		269,250
6.50%, 2/15/20		2,380		2,546,600
7.25%, 9/15/20		3,435		3,804,263
INC Research LLC, 11.50%, 7/15/19 (a)		695		682,838
inVentiv Health, Inc., 10.00%, 8/15/18 (a)		270		242,075
Tenet Healthcare Corp.:
10.00%, 5/01/18		1,530		1,767,150
8.88%, 7/01/19		1,125		1,261,406
UnitedHealth Group, Inc., 6.88%, 2/15/38 (c)		3,400		4,554,983
				17,813,951
Health Care Technology — 0.9%
Amgen, Inc.:
5.15%, 11/15/41 (c)		4,208		4,385,355
5.65%, 6/15/42		42		46,723
				4,432,078
Household Durables — 0.2%
Standard Pacific Corp., 8.38%, 1/15/21		890		938,950
Independent Power Producers & Energy Traders — 1.1%
AES Corp.:
9.75%, 4/15/16		985		1,162,300
7.38%, 7/01/21 (a)		135		150,188
Calpine Corp., 7.25%, 10/15/17 (a)		440		469,700
Energy Future Intermediate Holding Co. LLC,
10.00%, 12/01/20		1,880		2,075,050
Laredo Petroleum, Inc.:
9.50%, 2/15/19		295		329,662
7.38%, 5/01/22 (a)		265		274,275
QEP Resources, Inc., 5.38%, 10/01/22		569		569,000
				5,030,175
Insurance — 6.3%
American International Group, Inc.:
3.80%, 3/22/17 (c)		1,500		1,549,227
8.25%, 8/15/18		625		757,269
6.40%, 12/15/20 (c)		2,590		2,975,027
Aon Corp., 5.00%, 9/30/20 (c)		4,600		5,111,092
Fairfax Financial Holdings Ltd., 5.80%, 5/15/21 (a)		2,800		2,720,516
Forethought Financial Group, Inc., 8.63%, 4/15/21 (a)		1,000		1,022,712
Genworth Financial, Inc., 7.63%, 9/24/21		970		957,776
ING Verzekeringen NV, 2.69%, 6/21/21 (b)	EUR	430		532,194
Manulife Financial Corp., 4.90%, 9/17/20 (c)	USD	4,700		4,911,420
MPL 2 Acquisition Canco, Inc., 9.88%, 8/15/18 (a)		430		370,875
Principal Financial Group, Inc., 8.88%, 5/15/19		980		1,269,309
Prudential Financial, Inc., 6.63%, 12/01/37 (c)		3,400		3,942,871
XL Group Ltd., 5.75%, 10/01/21		3,430		3,793,282
				29,913,570

See Notes to Financial Statements.

Schedule of Investments (continued)	BlackRock Credit Allocation Income Trust II, Inc. (PSY)
	(Percentages shown are based on Net Assets)

Corporate Bonds		Par (000)		Value
IT Services — 0.7%
Epicor Software Corp., 8.63%, 5/01/19	USD	720		$	745,200
Fidelity National Information Services, Inc.,
5.00%, 3/15/22 (a)		320		320,000
First Data Corp.:
7.38%, 6/15/19 (a)		935		956,037
8.25%, 1/15/21 (a)		85		83,725
12.63%, 1/15/21		710		711,775
SunGard Data Systems, Inc., 7.38%, 11/15/18		730		779,275
				3,596,012
Life Sciences Tools & Services — 1.9%
Bio-Rad Laboratories, Inc., 8.00%, 9/15/16		3,825		4,226,625
Life Technologies Corp., 6.00%, 3/01/20 (c)		4,200		4,883,613
				9,110,238
Machinery — 1.1%
Ingersoll-Rand Global Holding Co., Ltd., 9.50%, 4/15/14		3,400		3,907,766
UR Financing Escrow Corp. (a):
5.75%, 7/15/18		235		242,638
7.38%, 5/15/20		600		630,000
7.63%, 4/15/22		548		579,510
				5,359,914
Media — 8.7%
AMC Networks, Inc., 7.75%, 7/15/21 (a)		395		441,412
CCH II LLC, 13.50%, 11/30/16		2,317		2,618,210
Comcast Corp., 6.30%, 11/15/17 (c)		3,400		4,124,258
Cox Communications, Inc., 8.38%, 3/01/39 (a)		3,400		4,881,669
CSC Holdings LLC:
8.50%, 4/15/14		680		749,700
8.63%, 2/15/19		1,200		1,362,000
DIRECTV Holdings LLC, 5.00%, 3/01/21		2,575		2,815,884
DISH DBS Corp., 7.00%, 10/01/13		1,750		1,874,687
Intelsat Jackson Holdings SA, 7.25%, 4/01/19		190		198,075
Intelsat Luxemburg SA:
11.25%, 2/04/17		620		643,250
11.50%, 2/04/17 (e)		400		417,000
The Interpublic Group of Cos., Inc., 10.00%, 7/15/17		1,175		1,338,031
Kabel BW Erste Beteiligungs GmbH, 7.50%, 3/15/19 (a)		1,040		1,110,200
News America, Inc., 6.15%, 3/01/37 (c)		4,200		4,665,146
Time Warner Cable, Inc., 6.75%, 6/15/39		4,050		4,883,470
Time Warner, Inc., 7.70%, 5/01/32		4,150		5,437,135
Unitymedia Hessen GmbH & Co. KG (FKA UPC
Germany GmbH), 8.13%, 12/01/17 (a)		1,030		1,104,675
Virgin Media Secured Finance Plc, 6.50%, 1/15/18		2,675		2,915,750
				41,580,552
Metals & Mining — 2.2%
Alcoa, Inc., 5.40%, 4/15/21 (c)		580		609,585
Barrick Gold Corp., 2.90%, 5/30/16 (c)		1,150		1,205,908
Barrick North America Finance LLC, 5.70%, 5/30/41 (c)		1,325		1,460,015
Freeport-McMoRan Copper & Gold, Inc.,
3.55%, 3/01/22		1,400		1,383,316
Freeport-McMoRan Corp., 7.13%, 11/01/27		2,900		3,578,687
New Gold, Inc., 7.00%, 4/15/20 (a)		130		132,925
Novelis, Inc., 8.75%, 12/15/20		975		1,074,938
Teck Resources Ltd., 10.75%, 5/15/19		874		1,081,575
				10,526,949
Multi-Utilities — 1.6%
CenterPoint Energy, Inc.:
5.95%, 2/01/17		3,150		3,601,212
6.50%, 5/01/18		3,350		3,986,678
				7,587,890
Multiline Retail — 0.7%
JC Penney Co., Inc., 5.65%, 6/01/20 (c)		3,235		3,137,950

		Par
Corporate Bonds		(000)		Value
Oil, Gas & Consumable Fuels — 13.6%
Anadarko Petroleum Corp.:
5.95%, 9/15/16	USD	994		$	1,149,207
6.38%, 9/15/17		23		27,334
Berry Petroleum Co., 6.38%, 9/15/22		425		442,000
BP Capital Markets Plc (c):
3.88%, 3/10/15		1,500		1,606,585
3.20%, 3/11/16		1,875		1,997,512
Buckeye Partners LP, 4.88%, 2/01/21		1,000		1,033,005
Chesapeake Midstream Partners LP:
5.88%, 4/15/21		595		565,250
6.13%, 7/15/22		475		457,188
Chesapeake Oilfield Operating LLC, 6.63%, 11/15/19 (a)		40		37,600
Concho Resources, Inc., 5.50%, 10/01/22		420		420,000
CONSOL Energy, Inc., 6.38%, 3/01/21		450		423,000
Copano Energy LLC, 7.13%, 4/01/21		560		590,800
DCP Midstream LLC, 4.75%, 9/30/21 (a)		1,200		1,295,840
El Paso Pipeline Partners Operating Co. LLC:
6.50%, 4/01/20		1,530		1,757,503
5.00%, 10/01/21		525		554,635
Enbridge Energy Partners LP, 9.88%, 3/01/19		2,100		2,832,818
Energy XXI Gulf Coast, Inc., 7.75%, 6/15/19		1,025		1,058,312
Enterprise Products Operating LLC, 6.65%, 4/15/18		4,200		5,085,373
Everest Acquisition LLC/Everest Acquisition
Finance, Inc., 6.88%, 5/01/19 (a)		340		357,000
Forest Oil Corp., 8.50%, 2/15/14		1,240		1,333,000
Kinder Morgan Energy Partners LP, 6.85%, 2/15/20		4,200		5,079,438
Kodiak Oil & Gas Corp., 8.13%, 12/01/19 (a)		230		243,800
Linn Energy LLC:
6.25%, 11/01/19 (a)		1,125		1,108,125
7.75%, 2/01/21		450		474,750
Marathon Petroleum Corp., 3.50%, 3/01/16		1,375		1,442,261
MarkWest Energy Partners LP, 6.25%, 6/15/22		530		557,825
Newfield Exploration Co., 6.88%, 2/01/20		595		632,188
Nexen, Inc., 6.40%, 5/15/37		1,380		1,531,822
Oasis Petroleum, Inc.:
7.25%, 2/01/19		340		360,400
6.50%, 11/01/21		305		311,100
OGX Petroleo e Gas Participacoes SA,
8.50%, 6/01/18 (a)(c)		1,600		1,660,000
ONEOK Partners LP, 8.63%, 3/01/19		3,400		4,446,245
Petrobras International Finance Co.:
3.88%, 1/27/16		3,725		3,899,457
5.38%, 1/27/21		2,200		2,409,946
Petrohawk Energy Corp., 10.50%, 8/01/14		615		682,650
Petroleum Geo-Services ASA, 7.38%, 12/15/18 (a)		445		460,575
Phillips 66, 2.95%, 5/01/17 (a)		1,060		1,087,689
Pioneer Natural Resources Co.:
6.65%, 3/15/17		650		737,403
6.88%, 5/01/18		490		576,844
Plains Exploration & Production Co.:
10.00%, 3/01/16		405		445,500
6.75%, 2/01/22		55		57,200
Precision Drilling Corp., 6.50%, 12/15/21		425		442,000
Premier Oil Plc, 5.00%, 6/09/18		3,400		3,510,500
Range Resources Corp., 6.75%, 8/01/20		855		927,675
Ruby Pipeline LLC, 6.00%, 4/01/22 (a)		2,975		3,046,192
Samson Investment Co., 9.75%, 2/15/20 (a)		610		636,687
SandRidge Energy, Inc.:
7.50%, 3/15/21		200		202,000
8.13%, 10/15/22 (a)		220		228,250
SM Energy Co.:
6.63%, 2/15/19		220		232,100
6.50%, 11/15/21		345		363,975
Targa Resources Partners LP, 6.88%, 2/01/21		495		517,275
Tennessee Gas Pipeline Co., 8.00%, 2/01/16		831		968,693
Western Gas Partners LP, 5.38%, 6/01/21		1,525		1,663,851
The Williams Cos., Inc., 8.75%, 3/15/32		711		960,651
				64,929,029

See Notes to Financial Statements.

Schedule of Investments (continued)	BlackRock Credit Allocation Income Trust II, Inc. (PSY)
	(Percentages shown are based on Net Assets)

Corporate Bonds		Par (000)		Value
Paper & Forest Products — 2.5%
Boise Paper Holdings LLC:
9.00%, 11/01/17	USD	290		$	322,625
8.00%, 4/01/20		645		711,112
Georgia-Pacific LLC, 8.25%, 5/01/16 (a)		2,040		2,254,200
International Paper Co.:
7.50%, 8/15/21		3,325		4,221,257
7.30%, 11/15/39		3,400		4,207,004
Longview Fibre Paper & Packaging, Inc.,
8.00%, 6/01/16 (a)		330		333,300
				12,049,498
Pharmaceuticals — 2.7%
Capsugel Finance Co. SCA, 9.88%, 8/01/19 (a)	EUR	300		436,821
Merck & Co., Inc., 6.50%, 12/01/33 (c)	USD	2,070		2,854,340
Pfizer, Inc., 7.20%, 3/15/39 (c)		4,425		6,542,243
Roche Holdings, Inc., 7.00%, 3/01/39 (a)(c)		1,825		2,590,254
Valeant Pharmaceuticals International,
6.50%, 7/15/16 (a)		250		259,062
				12,682,720
Real Estate Investment Trusts (REITs) — 2.8%
AvalonBay Communities, Inc., 6.10%, 3/15/20 (c)		3,400		4,048,217
Developers Diversified Realty Corp.:
4.75%, 4/15/18		645		668,268
7.88%, 9/01/20		775		930,738
ERP Operating LP, 5.75%, 6/15/17		3,405		3,919,036
HCP, Inc., 5.38%, 2/01/21		1,025		1,129,262
UDR, Inc., 4.25%, 6/01/18		1,475		1,567,353
Ventas Realty LP/Ventas Capital Corp., 4.75%, 6/01/21		1,135		1,170,146
				13,433,020
Real Estate Management & Development — 0.4%
Realogy Corp. (a)(c):
7.88%, 2/15/19		570		558,600
7.63%, 1/15/20		620		643,250
Shea Homes LP, 8.63%, 5/15/19 (a)		480		500,400
				1,702,250
Road & Rail — 1.4%
Avis Budget Car Rental LLC, 8.25%, 1/15/19		110		115,225
Florida East Coast Railway Corp., 8.13%, 2/01/17		200		205,500
The Hertz Corp., 6.75%, 4/15/19		338		352,787
Norfolk Southern Corp., 6.00%, 3/15/2105 (c)		5,000		5,796,430
				6,469,942
Semiconductors & Semiconductor Equipment — 0.7%
Advanced Micro Devices, Inc., 7.75%, 8/01/20		775		854,438
KLA-Tencor Corp., 6.90%, 5/01/18		1,928		2,332,901
				3,187,339
Software — 0.2%
Lawson Software, Inc., 9.38%, 4/01/19 (a)		960		1,003,200
Specialty Retail — 1.2%
AutoNation, Inc., 6.75%, 4/15/18		1,965		2,132,025
Limited Brands, Inc., 7.00%, 5/01/20		980		1,087,800
QVC, Inc., 7.38%, 10/15/20 (a)		105		114,975
Sally Holdings LLC, 6.88%, 11/15/19 (a)		595		633,675
VF Corp., 5.95%, 11/01/17		1,475		1,760,547
				5,729,022
Tobacco — 1.9%
Altria Group, Inc., 10.20%, 2/06/39		3,929		6,294,946
Lorillard Tobacco Co., 3.50%, 8/04/16		2,450		2,567,286
				8,862,232
Wireless Telecommunication Services — 4.5%
America Movil SAB de CV, 2.38%, 9/08/16		2,675		2,729,880
American Tower Corp.:
4.50%, 1/15/18		1,925		2,032,675
5.90%, 11/01/21		1,295		1,455,660

Corporate Bonds		Par (000)		Value
Wireless Telecommunication Services (concluded)
Cricket Communications, Inc., 7.75%, 5/15/16	USD	670		$	705,175
Crown Castle International Corp., 9.00%, 1/15/15		890		983,450
Crown Castle Towers LLC (a):
5.50%, 1/15/37		1,175		1,297,335
6.11%, 1/15/40		1,300		1,484,564
Nextel Communications, Inc., Series E, 6.88%, 10/31/13		840		840,000
SBA Tower Trust, 5.10%, 4/15/42 (a)		4,225		4,597,675
Sprint Capital Corp., 6.88%, 11/15/28		1,000		747,500
Sprint Nextel Corp. (a):
9.00%, 11/15/18		1,860		2,048,325
7.00%, 3/01/20		2,670		2,723,400
				21,645,639
Total Corporate Bonds — 105.4%				502,236,345
Preferred Securities
Capital Trusts
Capital Markets — 4.0%
Ameriprise Financial, Inc., 7.52%, 6/01/66 (b)		2,500		2,650,000
State Street Capital Trust III, 5.46% (b)(f)		2,920		2,931,446
State Street Capital Trust IV, 1.47%, 6/01/37 (b)		18,235		13,569,995
				19,151,441
Commercial Banks — 5.5%
Barclays Bank Plc, 7.43% (a)(b)(c)(f)		650		650,000
BNP Paribas, 7.20% (a)(b)(c)(f)		1,500		1,290,000
Credit Agricole SA, 8.38% (a)(b)(c)(f)		1,475		1,298,000
Dresdner Funding Trust I, 8.15%, 6/30/31 (a)		2,240		1,803,200
HSBC Capital Funding LP/Jersey Channel Islands,
10.18% (a)(b)(c)(f)		4,835		6,285,500
M&T Capital Trust II, 8.28%, 6/01/27		3,630		3,702,600
National City Preferred Capital Trust I, 12.00% (b)(f)		1,100		1,170,840
NationsBank Capital Trust III, 1.02%, 1/15/27 (b)		13,470		10,111,848
				26,311,988
Diversified Financial Services — 1.4%
JPMorgan Chase Capital XXIII, 1.50%, 5/15/47 (b)(c)		8,775		6,493,684
Electric Utilities — 0.6%
PPL Capital Funding, 6.70%, 3/30/67 (b)		3,000		2,970,000
Insurance — 9.9%
Ace Capital Trust II, 9.70%, 4/01/30		2,500		3,416,980
The Allstate Corp., 6.50%, 5/15/67 (b)		5,000		4,887,500
American General Capital II, 8.50%, 7/01/30		100		109,301
American International Group, Inc., 8.18%, 5/15/68 (b)		900		961,875
Aon Corp., 8.21%, 1/01/27		2,500		2,920,820
AXA SA, 6.38% (a)(b)(f)		3,000		2,385,000
Bank One Capital III, 8.75%, 9/01/30		2,000		2,790,000
Chubb Corp., 6.38%, 3/29/67 (b)		2,000		2,047,500
Farmers Exchange Capital, 7.05%, 7/15/28 (a)		2,500		2,767,230
Liberty Mutual Group, Inc., 10.75%, 6/15/88 (a)(b)		2,925		3,978,000
Lincoln National Corp., 7.00%, 5/17/66 (b)		3,350		3,249,500
MetLife, Inc., 6.40%, 12/15/66		3,325		3,252,561
Mitsui Sumitomo Insurance Co., Ltd.,
7.00%, 3/15/72 (a)(b)		1,420		1,458,950
Northwestern Mutual Life Insurance,
6.06%, 3/30/40 (a)(c)		3,800		4,527,628
Principal Life Insurance Co., 8.00%, 3/01/44 (a)		2,500		2,852,520
Reinsurance Group of America, 6.75%, 12/15/65 (b)		3,000		2,775,909
Swiss Re Solutions Holding Corp., 7.75%, 6/15/30 (c)		2,000		2,482,990
ZFS Finance (USA), Trust IV, 5.88%, 5/09/62 (a)(b)		379		379,474
				47,243,738
Multi-Utilities — 1.4%
Dominion Resources Capital Trust I, 7.83%, 12/01/27		2,500		2,565,160
Dominion Resources, Inc., 7.50%, 6/30/66 (b)		3,900		4,153,500
				6,718,660

See Notes to Financial Statements.

Schedule of Investments (continued)	BlackRock Credit Allocation Income Trust II, Inc. (PSY)
	(Percentages shown are based on Net Assets)

Capital Trusts		Par (000)		Value
Oil, Gas & Consumable Fuels — 1.4%
Enterprise Products Operating LLC, 8.38%, 8/01/66 (b)	USD	2,000		$	2,170,000
TransCanada PipeLines Ltd., 6.35%, 5/15/67 (b)		4,000		4,175,568
				6,345,568
Road & Rail — 0.8%
BNSF Funding Trust I, 6.61%, 12/15/55 (b)		3,750		3,904,688
Total Capital Trusts — 25.0%				119,139,767
Preferred Stocks Shares
Auto Components — 0.1%
Dana Holding Corp., 4.00% (a)		4,000		501,500
Diversified Financial Services — 0.4%
Ally Financial, Inc., 7.00% (a)		2,190		1,858,762
Thrifts & Mortgage Finance — 0.0%
Fannie Mae, Series S, 8.25% (b)(g)		14,000		17,220
Freddie Mac, Series Z, 8.38% (b)(g)		14,000		17,500
				34,720
Wireless Telecommunication Services — 0.6%
Centaur Funding Corp., 9.05% (a)		2,423		2,871,255
Total Preferred Stocks — 1.1%				5,266,237
Trust Preferreds — 0.3%
Diversified Financial Services — 0.3%
GMAC Capital Trust I, Series 2, 8.13% (b)		57,110		1,343,295
Total Preferred Securities — 26.4%				125,749,299
Taxable Municipal Bonds — 0.9%		Par (000)
Metropolitan Transportation Authority, RB, Build America
Bonds, 6.55%, 11/15/31	USD	3,450		4,231,460
US Government Sponsored Agency Securities — 0.3%
Agency Obligations — 0.3%
Fannie Mae, 4.23%, 10/09/19 (c)(h)		1,670		1,344,575
US Treasury Obligations
US Treasury Bonds (c):
3.75%, 8/15/41		1,470		1,659,721
3.13%, 11/15/41		2,465		2,472,703
US Treasury Notes:
0.88%, 12/31/16 (c)		3,847		3,869,843
2.00%, 2/15/22		145		146,088
Total US Treasury Obligations — 1.7%				8,148,355
Total Long-Term Investments
(Cost — $613,809,974) — 135.8%				646,900,945

Short-Term Securities		Shares		Value
BlackRock Liquidity Funds, TempFund,
Institutional Class, 0.15% (i)(j)		1,908,035		$	1,908,035
Total Short-Term Securities
(Cost — $1,908,035) — 0.4%				1,908,035
Options Purchased		Contracts
Exchange-Traded Put Options — 0.0%
S&P 500 Index, Strike Price USD 1,200.00,
Expires 6/16/12		285		74,100
		Notional Amount (000)
Over-the-Counter Interest Rate Call Swaptions — 0.0%
Receive a fixed rate of 2.40% and pay a floating rate
based on 3-month LIBOR, expires 5/11/12,
Broker Citibank NA	USD	5,500		196
Receive a fixed rate of 2.61% and pay a floating rate
based on 3-month LIBOR, expires 4/05/13,
Broker Citibank NA		3,400		157,467
				157,663
Over-the-Counter Interest Rate Put Swaptions — 0.1%
Receive a fixed rate of 2.61% and pay a floating rate
based on 3-month LIBOR, expires 4/05/13,
Broker Citibank NA		3,400		71,501
Pay a fixed rate of 4.50% and receive a floating rate
based on 3-month LIBOR, Expires 9/16/13,
Broker Credit Suisse Securities (USA) LLC	EUR	5,300		26,564
Pay a fixed rate of 4.50% and receive a floating rate
based on 3-month LIBOR, Expires 10/21/13,
Broker Citibank NA		5,000		30,708
Pay a fixed rate of 4.50% and receive a floating rate
based on 3-month LIBOR, Expires 12/12/13,
Broker Credit Suisse Securities (USA) LLC		4,000		31,771
Pay a fixed rate of 4.50% and receive a floating rate
based on 3-month LIBOR, Expires 2/02/17,
Broker Deutsche Bank AG	USD	4,800		161,107
				321,651
Total Options Purchased
(Cost — $1,797,967) — 0.1%				553,414
Total Investments Before Options Written
(Cost — $617,515,976) — 136.3%				649,362,394
Options Written		Contracts
Over-the-Counter Call Options — (0.0)%
S&P 500 Index, Strike Price USD 1,450.00,
Expires 6/15/12, Broker Deutsche Bank AG		7,100		(51,763		)
		Notional Amount (000)
Over-the-Counter Interest Rate Put Swaptions — (0.1)%
Receive a fixed rate of 6.00% and pay a floating rate
based on 3-month LIBOR, Expires 2/02/17,
Broker Deutsche Bank AG	USD	9,600		(142,531		)
Total Options Written
(Premiums Received — $267,430) — (0.1)%				(194,294		)
Total Investments, Net of Options Written — 136.2%				649,168,100
Liabilities in Excess of Other Assets — (36.2)%				(172,641,066		)
Net Assets — 100.0%				$	476,527,034

See Notes to Financial Statements.

Schedule of Investments (continued)

BlackRock Credit Allocation Income Trust II, Inc. (PSY)

(a)

Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(b)

Variable rate security. Rate shown is as of report date.

(c)

All or a portion of security has been pledged as collateral in connection with open reverse repurchase agreements.

(d)

Represents a step-down bond that pays an initial coupon rate for the first period and then a lower coupon rate for the following periods. Rate shown is as of report date.

(e)

Represents a payment-in-kind security which may pay interest/dividends in additional par/shares.

(f)

Security is perpetual in nature and has no stated maturity date.

(g)

Non-income producing security.

(h)

Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.

(i)

Investments in companies considered to be an affiliate of the Fund during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate	Shares Held at October 31, 2011	Net Activity	Shares Held at April 30, 2012	Income
BlackRock Liquidity
Funds, TempFund,
Institutional Class	405,708	1,502,327	1,908,035	$ 2,499

(j)

Represents the current yield as of report date.

•

For Fund compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by Fund management. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.

•

Reverse repurchase agreements outstanding as of April 30, 2012 were as follows:

Counterparty	Interest Rate	Trade Date	Maturity Date	Net Closing Amount			Face Amount
UBS Securities LLC	0.35%	1/11/12	Open	$	3,803,600		$	3,799,500
UBS Securities LLC	0.38%	1/12/12	Open	3,174,306			3,170,625
Deutsche Bank AG	(0.50)%	1/17/12	Open	452,489			453,150
UBS Securities LLC	0.38%	1/25/12	Open	9,941,548			9,931,750
UBS Securities LLC	0.35%	2/02/12	Open	586,307			585,800
UBS Securities LLC	(1.25)%	2/02/12	Open	523,826			525,450
UBS Securities LLC	0.38%	2/14/12	Open	1,125,977			1,125,062
Credit Suisse Securities
(USA) LLC	0.35%	2/15/12	Open	4,179,526			4,176,440
Credit Suisse Securities
(USA) LLC	0.35%	2/22/12	Open	4,444,229			4,441,250
UBS Securities LLC	0.38%	2/28/12	Open	10,955,668			10,948,387
Credit Suisse Securities
(USA) LLC	(0.25)%	3/07/12	Open	1,691,354			1,692,000
BNP Paribas
Securities Corp.	0.35%	3/12/12	Open	1,102,161			1,101,625
UBS Securities LLC	0.35%	3/13/12	Open	5,027,394			5,025,000
UBS Securities LLC	0.37%	3/13/12	Open	5,482,884			5,480,125
UBS Securities LLC	0.38%	3/13/12	Open	13,483,034			13,476,062
UBS Securities LLC	0.32%	3/13/12	Open	2,327,513			2,326,500
Deutsche Bank AG	0.17%	3/14/12	Open	2,403,920			2,403,375
Credit Suisse Securities
(USA) LLC	0.38%	3/21/12	Open	21,023,614			21,014,519
Credit Suisse Securities
(USA) LLC	0.35%	3/21/12	Open	9,305,389			9,301,681
Barclays Capital, Inc.	0.35%	3/22/12	Open	2,814,482			2,813,388
Credit Suisse Securities
(USA) LLC	0.35%	3/22/12	Open	1,406,797			1,406,250
UBS Securities LLC	0.35%	3/23/12	Open	438,971			438,805
BNP Paribas
Securities Corp.	0.35%	3/27/12	Open	6,279,136			6,277,000
Credit Suisse Securities
(USA) LLC	0.35%	3/27/12	Open	1,562,451			1,561,920
UBS Securities LLC	0.38%	3/27/12	Open	3,766,891			3,765,500
Barclays Capital, Inc.	(1.00)%	4/03/12	Open	637,844			638,341
UBS Securities LLC	0.10%	4/16/12	Open	783,033			783,000
Barclays Capital, Inc.	0.35%	4/18/12	Open	30,370,748			30,366,910
Credit Suisse Securities
(USA) LLC	0.35%	4/23/12	Open	2,690,260			2,690,050
Barclays Capital, Inc.	0.35%	4/24/12	Open	1,740,712			1,740,594
Deutsche Bank AG	0.12%	4/24/12	Open	3,875,943			3,875,853
Deutsche Bank AG	0.00%	4/24/12	Open	235,850			235,850
UBS Securities LLC	0.34%	4/24/12	Open	1,325,338			1,325,250
BNP Paribas
Securities Corp.	0.23%	4/25/12	Open	1,329,788			1,329,737
BNP Paribas
Securities Corp.	0.19%	4/25/12	Open	1,655,640			1,655,587
UBS Securities LLC	0.34%	4/25/12	Open	6,396,737			6,396,376
BNP Paribas
Securities Corp.	0.35%	4/26/12	Open	3,984,194			3,984,000
BNP Paribas
Securities Corp.	0.37%	4/26/12	Open	4,364,224			4,364,000
Deutsche Bank AG	0.25%	4/26/12	Open	2,911,601			2,911,500
Total				$	179,605,379		$	179,538,212

See Notes to Financial Statements.

Schedule of Investments (continued)

BlackRock Credit Allocation Income Trust II, Inc. (PSY)

•

Financial futures contracts purchased as of April 30, 2012 were as follows:

Contracts	Issue	Exchange	Expiration		Notional Value	Unrealized Appreciation
138	5-Year US	Chicago Board
	Treasury Note	of Trade	June 2012	USD	17,083,969	$ 73,074

•

Financial futures contracts sold as of April 30, 2012 were as follows:

Contracts	Issue	Exchange	Expiration		Notional Value	Unrealized Depreciation
1	Euro-Bund	Eurex	June 2012	EUR	186,761	$	(3,312)
381	10-Year US	Chicago Board
	Treasury Note	of Trade	June 2012	USD	50,399,156		(481,062)
45	30-Year US	Chicago Board
	Treasury Bond	of Trade	June 2012	USD	6,429,375		(51,193)
131	Ultra Long Term	Chicago Board
	US Treasury Bond	of Trade	June 2012	USD	20,673,438		(434,979)
Total						$	(970,546)

•

Foreign currency exchange contracts as of April 30, 2012 were as follows:

Currency Purchased	Currency Sold	Counterparty	Settlement Date	Unrealized Depreciation
USD  725,340	EUR   549,500	Citibank NA	7/25/12	$	(2,375)

•

Credit default swaps on single-name issues — buy protection outstanding as of April 30, 2012 were as follows:

Issuer	Pay Fixed Rate	Counterparty	Expiration Date	Notional Amount (000)		Unrealized Depreciation
STMicroelectron-		Deutsche
ics NV	1.00%	Bank AG	12/20/16	EUR	1,215	$	(19,433)
Southwest		Goldman
Airlines Co.	1.00%	Sachs & Co.	12/20/16	USD	1,185	(29,721)
Southwest		Royal Bank
Airlines Co.	1.00%	of Scotland Plc	12/20/16	USD	1,185	(34,328)
Time		Credit Suisse
Warner Inc.		Securities
	1.00%	(USA) LLC	3/20/17	USD	7,500	(6,735)
Emerson		Morgan Stanley
Electric Co.	1.00%	& Co., Inc.	3/20/17	USD	2,330	(18,508)
Total						$	(108,725)

•

Credit default swaps on single-name issues — sold protection outstanding as of April 30, 2012 were as follows:

Issuer	Receive Fixed Rate	Counterparty/ Exchange	Expiration Date	Issuer Credit Rating1	Notional Amount (000)2		Unrealized Appreciation (Depreciation)
Aviva USA		Deutsche
Corp.	1.00%	Bank AG	5/25/12	A	USD	2,775	$	(36)
DIRECTV		Credit Suisse
Holdings		Securities
LLC	1.00%	(USA) LLC	3/20/17	BBB	USD	7,500	126,530
MetLife, Inc.	1.00%	Deutsche
		Bank AG	3/20/18	A-	USD	900	(18,790)
Total							$	107,704

1

Using S&P’s rating.

2

The maximum potential amount the Fund may pay should a negative credit event take place as defined under the terms of agreement.

•

Credit default swaps on traded indexes — sold protection outstanding as of April 30, 2012 were as follows:

Index	Receive Fixed Rate	Counter- party	Expiration Date	Credit Rating3	Notional Amount (000)4	Unrealized Appreciation
Dow Jones
CDX North
America High
Yield Index		Credit Suisse
Series 18,		Securities
Version 1	5.00%	(USA) LLC	6/20/17	B+	USD 1,860	$	28,155

3

Using S&P’s rating of the underlying securities.

4

The maximum potential amount the Fund may pay should a negative credit event take place as defined under the terms of agreement.

•

Interest rate swaps outstanding as of April 30, 2012 were as follows:

Fixed Rate	Floating Rate	Counterparty	Expiration Date	Notional Amount (000)		Unrealized Appreciation (Depreciation)
1.17%5	3-month	Credit Suisse
	LIBOR	Securities
		(USA) LLC	4/11/17	USD	7,500	$	(31,603)
1.18%5	3-month	Deutsche
	LIBOR	Bank AG	4/11/17	USD	20,700	(97,238)
2.35%5	3-month	Deutsche
	LIBOR	Bank AG	3/19/22	USD	14,100	(414,954)
4.03%5	3-month
	LIBOR	UBS AG	4/18/22	USD	5,900	(875,107)
2.05%6	3-month	Credit Suisse
	LIBOR	Securities
		(USA) LLC	5/02/22	USD	5,900	—
2.05%6	3-month	Credit Suisse
	LIBOR	Securities
		(USA) LLC	5/02/22	USD	3,900	1,987
Total						$	(1,416,915)

5

Fund pays a fixed interest rate and receives floating rate.

6

Fund pays a floating interest rate and receives fixed rate.

•

Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:

•

Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities

•

Level 2 —other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

•

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments and derivative financial instruments)

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

See Notes to Financial Statements.

Schedule of Investments (concluded)

BlackRock Credit Allocation Income Trust II, Inc. (PSY)

The following tables summarize the inputs used as of April 30, 2012 in determining the fair valuation of the Fund’s investments and derivative financial instruments:

Valuation Inputs		Level 1				Level 2				Level 3				Total
Assets:
Investments:
Long-Term
Investments:
Asset-Backed Securities			—			$	2,951,661			$	2,239,250			$	5,190,911
Corporate Bonds			—				498,725,845				3,510,500				502,236,345
Preferred Securities		$	1,378,015				124,371,284				—				125,749,299
Taxable Municipal Bonds			—				4,231,460				—				4,231,460
US Government Sponsored
Agency Securities			—				1,344,575				—				1,344,575
US Treasury Obligations			—				8,148,355				—				8,148,355
Short-Term Securities			1,908,035				—				—				1,908,035
Total		$	3,286,050			$	639,773,180			$	5,749,750			$	648,808,980

Valuation Inputs		Level 1				Level 2				Level 3				Total
Derivative Financial Instruments1
Assets:
Equity contracts		$	74,100				—				—			$	74,100
Interest rate contracts			73,074			$	481,301				—				554,375
Credit contracts			—				154,685				—				154,685
Liabilities:
Equity contracts			—				(51,763	)			—				(51,763	)
Interest rate contracts			(970,546	)			(1,561,433	)			—				(2,531,979	)
Foreign currency
exchange contracts			—				(2,375	)			—				(2,375	)
Credit contracts			—				(127,515	)		$	(36	)			(127,551	)
Total		$	(823,372	)		$	(1,107,100	)		$	(36	)		$	(1,930,508	)

1

Derivative financial instruments are swaps, financial futures contracts, foreign currency exchange contracts and options. Swaps, financial futures contracts and foreign currency exchange contracts are valued at the unrealized appreciation/depreciation on the instrument and options are shown at value.

The following table is a reconciliation of Level 3 investments for which significant unobservable inputs were used in determining fair value:

		Asset-Backed Securities				Corporate Bonds				Total
Assets:
Balance, as of October 31, 2011		$	2,053,750			$	3,536,000			$	5,589,750
Accrued discounts/premiums			18,738				—				18,738
Net realized gain (loss)			—				—				—
Net change in unrealized appreciation/depreciation2			166,762				(25,500	)			141,262
Purchases			—				—				—
Sales			—				—				—
Transfers in3			—				—				—
Transfers out3			—				—				—
Balance, as of April 30, 2012		$	2,239,250			$	3,510,500			$	5,749,750

2

Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations. The change in unrealized appreciation/depreciation on investments still held at April 30, 2012 was $3,677,262.

3

The Fund’s policy is to recognize transfers in and transfers out as of the beginning of the period of the event or the change in circumstances that caused the transfer.

The following table is a reconciliation of Level 3 derivative financial instruments for which significant unobservable inputs were used in determining fair value:

		Credit Contracts
Assets/Liabilities:
Balance, as of October 31, 2011		$	5,018
Accrued discounts/premiums			8,988
Net realized gain (loss)			—
Net change in unrealized appreciation/depreciation4			(5,054	)
Purchases			—
Issuances5			—
Sales			—
Settlements6			(8,988	)
Transfers in3			—
Transfers out3			—
Balance, as of April 30, 2012		$	(36	)

4

Included in the related net change in unrealized appreciation/depreciation in the Statements of operations. The change in unrealized appreciation/depreciation on derivative financial instruments still held at April 30, 2012 was $(5,054).

5

Issuances represent upfront cash received on certain derivative financial instruments.

6

Settlements represent periodic contractual cash flows and/or cash flows to terminate certain derivative financial instruments.

A reconciliation of Level 3 investments and derivative financial instruments is presented when the Fund had a significant amount of Level 3 investments and derivative financial instruments at the beginning and/or end of the period in relation to net assets.

See Notes to Financial Statements.

Schedule of Investments April 30, 2012 (Unaudited)	BlackRock Credit Allocation Income Trust III (BPP)
	(Percentages shown are based on Net Assets)

Asset-Backed Securities — 0.5%		Par (000)		Value
Atrium CDO Corp., Series 5A, Class A4,
0.88%, 7/20/20 (a)(b)	USD	1,300		$	1,098,500
Corporate Bonds
Aerospace & Defense — 1.1%
BE Aerospace, Inc., 8.50%, 7/01/18		1,215		1,345,612
Huntington Ingalls Industries, Inc.:
6.88%, 3/15/18		290		306,675
7.13%, 3/15/21		300		317,625
Kratos Defense & Security Solutions, Inc.,
10.00%, 6/01/17		460		494,500
				2,464,412
Airlines — 0.7%
American Airlines Pass-Through Trust, Series 2011-2,
Class A, 8.63%, 4/15/23		257		271,321
Continental Airlines Pass-Through Certificates,
Series 2009-2, Class B, 9.25%, 5/10/17		650		709,715
Delta Air Lines, Inc., Series 02G1, 6.72%, 7/02/24		520		547,143
				1,528,179
Auto Components — 0.8%
Delphi Corp., 6.13%, 5/15/21 (a)		280		298,200
Icahn Enterprises LP:
8.00%, 1/15/18		1,130		1,207,688
7.75%, 1/15/16		290		305,225
				1,811,113
Beverages — 0.5%
Constellation Brands, Inc., 7.25%, 5/15/17		955		1,079,150
Building Products — 0.3%
Building Materials Corp. of America (a):
7.00%, 2/15/20		180		192,150
6.75%, 5/01/21		460		478,975
				671,125
Capital Markets — 3.6%
Ameriprise Financial, Inc., 5.30%, 3/15/20 (c)		1,500		1,677,095
E*Trade Financial Corp., 12.50%, 11/30/17		900		1,048,500
The Goldman Sachs Group, Inc. (c):
5.75%, 1/24/22		800		835,355
6.25%, 2/01/41		2,150		2,184,707
Morgan Stanley, 5.50%, 7/28/21 (c)		1,600		1,564,216
Murray Street Investment Trust I, 4.65%, 3/09/17 (d)		300		301,801
UBS AG, 2.25%, 1/28/14 (c)		775		779,022
				8,390,696
Chemicals — 1.4%
Ashland, Inc., 9.13%, 6/01/17		20		22,200
Celanese US Holdings LLC, 5.88%, 6/15/21		760		815,100
Hexion US Finance Corp., 6.63%, 4/15/20 (a)		425		444,125
Ineos Finance Plc (a):
8.38%, 2/15/19		155		166,238
7.50%, 5/01/20		355		364,763
LyondellBasell Industries NV, 5.75%, 4/15/24 (a)		915		944,737
Solutia, Inc., 7.88%, 3/15/20		415		484,512
				3,241,675
Commercial Banks — 4.4%
Amsouth Bank, Series AI, 4.85%, 4/01/13		525		532,875
Asciano Finance Ltd., 5.00%, 4/07/18 (a)		425		442,416
Associated Banc-Corp, 5.13%, 3/28/16		1,070		1,132,791
Branch Banking & Trust Co. (b):
0.79%, 9/13/16		550		518,399
0.79%, 5/23/17		325		303,104

Corporate Bonds		Par (000)		Value
Commercial Banks (concluded)
CIT Group, Inc.:
7.00%, 5/02/16 (a)	USD	720		$	721,800
7.00%, 5/02/17 (a)		550		551,375
5.25%, 3/15/18		580		597,400
5.50%, 2/15/19 (a)		500		513,750
Discover Bank, 8.70%, 11/18/19		550		693,718
HSBC Finance Corp., 6.68%, 1/15/21		750		809,989
Regions Financial Corp.:
4.88%, 4/26/13		1,225		1,261,750
5.75%, 6/15/15		850		896,750
RESPARCS Funding LP I, 8.00% (e)		4,000		1,272,000
				10,248,117
Commercial Services & Supplies — 3.9%
Aviation Capital Group Corp. (a):
7.13%, 10/15/20 (c)		4,500		4,602,597
6.75%, 4/06/21		1,125		1,113,075
Casella Waste Systems, Inc., 7.75%, 2/15/19		336		330,960
Clean Harbors, Inc., 7.63%, 8/15/16		630		661,500
Corrections Corp. of America, 7.75%, 6/01/17		1,600		1,736,000
Covanta Holding Corp., 6.38%, 10/01/22		320		329,156
Iron Mountain, Inc., 7.75%, 10/01/19		190		207,100
Mobile Mini, Inc., 7.88%, 12/01/20		135		144,450
				9,124,838
Communications Equipment — 1.0%
Avaya, Inc., 9.75%, 11/01/15 (c)		400		396,500
Brocade Communications Systems, Inc.,
6.88%, 1/15/20 (c)		1,450		1,584,125
Hughes Satellite Systems Corp., 6.50%, 6/15/19		210		224,700
				2,205,325
Construction Materials — 0.2%
HD Supply, Inc., 8.13%, 4/15/19 (a)		430		461,713
Consumer Finance — 5.3%
American Express Credit Corp., 2.75%, 9/15/15 (c)		2,900		3,009,046
Capital One Bank USA NA, 8.80%, 7/15/19		1,625		2,052,214
Daimler Finance North America LLC, 2.63%, 9/15/16 (a)		1,650		1,706,126
Ford Motor Credit Co. LLC:
7.00%, 4/15/15		1,420		1,583,300
5.88%, 8/02/21		200		226,018
Inmarsat Finance Plc, 7.38%, 12/01/17 (a)		870		935,250
SLM Corp., 6.25%, 1/25/16		2,365		2,435,950
Toll Brothers Finance Corp., 5.88%, 2/15/22		200		206,983
				12,154,887
Containers & Packaging — 1.2%
Ardagh Packaging Finance Plc, 9.13%, 10/15/20 (a)		205		221,912
Ball Corp.:
7.13%, 9/01/16		850		930,750
6.75%, 9/15/20		1,070		1,182,350
Crown Americas LLC, 6.25%, 2/01/21		400		435,000
Sealed Air Corp., 8.38%, 9/15/21 (a)		65		73,775
				2,843,787
Diversified Financial Services — 7.8%
Ally Financial, Inc.:
4.50%, 2/11/14		400		404,000
8.30%, 2/12/15		780		856,050
8.00%, 11/01/31		620		709,900
Bank of America Corp. (c):
5.30%, 3/15/17		2,440		2,544,791
5.00%, 5/13/21		3,625		3,608,035
Citigroup, Inc. (c):
6.38%, 8/12/14		625		673,997
4.59%, 12/15/15		475		497,515
8.50%, 5/22/19		550		683,363

See Notes to Financial Statements.

Schedule of Investments (continued)	BlackRock Credit Allocation Income Trust III (BPP)
	(Percentages shown are based on Net Assets)

Corporate Bonds		Par (000)		Value
Diversified Financial Services (concluded)
Countrywide Financial Corp., 6.25%, 5/15/16 (c)	USD	1,569		$	1,627,001
DPL, Inc., 7.25%, 10/15/21 (a)		520		577,200
General Motors Financial Co., Inc., 6.75%, 6/01/18		250		266,258
ING Bank NV, 5.00%, 6/09/21 (a)(c)		1,150		1,171,414
Intesa Sanpaolo SpA:
2.38%, 12/21/12		1,700		1,675,942
6.50%, 2/24/21 (a)		200		181,712
Moody’s Corp., 6.06%, 9/07/17		1,500		1,577,449
Reynolds Group Issuer, Inc. (a):
7.13%, 4/15/19		115		120,175
7.88%, 8/15/19		420		453,600
9.88%, 8/15/19		145		151,163
6.88%, 2/15/21		105		108,150
WMG Acquisition Corp., 9.50%, 6/15/16 (a)		100		109,250
				17,996,965
Diversified Telecommunication Services — 4.1%
AT&T, Inc., 6.30%, 1/15/38 (c)		2,000		2,396,956
Level 3 Financing, Inc. (a):
8.13%, 7/01/19		1,577		1,620,368
8.63%, 7/15/20		370		387,575
Telecom Italia Capital SA, 6.18%, 6/18/14		500		516,150
Telefonica Emisiones SAU, 5.46%, 2/16/21		660		620,291
Verizon Communications, Inc. (c):
1.95%, 3/28/14		1,775		1,816,453
7.35%, 4/01/39		1,150		1,577,515
Windstream Corp., 7.88%, 11/01/17		400		442,000
				9,377,308
Electric Utilities — 2.3%
CMS Energy Corp., 5.05%, 3/15/22		550		559,846
Duke Energy Corp., 3.55%, 9/15/21		825		860,763
Great Plains Energy, Inc., 5.29%, 6/15/22 (d)		800		874,523
Progress Energy, Inc., 7.00%, 10/30/31 (c)		2,000		2,610,674
Southern Co., 1.95%, 9/01/16		475		486,111
				5,391,917
Electronic Equipment, Instruments & Components — 0.3%
Jabil Circuit, Inc., 8.25%, 3/15/18		400		466,000
NXP BV, 3.22%, 10/15/13 (b)		198		198,000
				664,000
Energy Equipment & Services — 2.9%
Atwood Oceanics, Inc., 6.50%, 2/01/20		55		57,888
Energy Transfer Partners LP, 5.20%, 2/01/22		1,500		1,598,842
Ensco Plc, 4.70%, 3/15/21		960		1,047,510
Frac Tech Services LLC, 7.13%, 11/15/18 (a)		525		542,062
Hornbeck Offshore Services, Inc., 5.88%, 4/01/20 (a)		135		134,663
Key Energy Services, Inc., 6.75%, 3/01/21		360		370,800
MEG Energy Corp., 6.50%, 3/15/21 (a)		465		489,412
Oil States International, Inc., 6.50%, 6/01/19		245		259,088
Peabody Energy Corp., 6.25%, 11/15/21 (a)		755		764,437
Transocean, Inc.:
6.50%, 11/15/20		545		625,892
6.38%, 12/15/21		660		772,855
				6,663,449
Food & Staples Retailing — 0.9%
Wal-Mart Stores, Inc., 5.25%, 9/01/35 (c)		1,850		2,125,269
Food Products — 0.9%
Kraft Foods, Inc.:
6.50%, 8/11/17		800		970,724
6.13%, 8/23/18		800		967,601
Smithfield Foods, Inc., 10.00%, 7/15/14		187		218,790
				2,157,115
Gas Utilities — 0.2%
El Paso Natural Gas Co., 8.63%, 1/15/22		335		423,995

Corporate Bonds		Par (000)		Value
Health Care Equipment & Supplies — 0.6%
Fresenius US Finance II, Inc., 9.00%, 7/15/15 (a)	USD	1,000		$	1,146,250
Teleflex, Inc., 6.88%, 6/01/19		240		256,800
				1,403,050
Health Care Providers & Services — 3.8%
Aetna, Inc., 6.75%, 12/15/37 (c)		850		1,103,493
Aviv Healthcare Properties LP, 7.75%, 2/15/19		220		228,800
HCA, Inc.:
8.50%, 4/15/19		105		117,797
6.50%, 2/15/20		1,145		1,225,150
7.25%, 9/15/20		1,645		1,821,837
INC Research LLC, 11.50%, 7/15/19 (a)		340		334,050
inVentiv Health, Inc., 10.00%, 8/15/18 (a)		135		121,038
Tenet Healthcare Corp.:
10.00%, 5/01/18		745		860,475
8.88%, 7/01/19		550		616,688
UnitedHealth Group, Inc., 6.88%, 2/15/38 (c)		1,725		2,310,984
				8,740,312
Health Care Technology — 0.9%
Amgen, Inc.:
5.15%, 11/15/41 (c)		2,015		2,099,926
5.65%, 6/15/42		20		22,249
				2,122,175
Household Durables — 0.2%
Standard Pacific Corp., 8.38%, 1/15/21		435		458,925
Independent Power Producers & Energy Traders — 1.1%
AES Corp.:
9.75%, 4/15/16		480		566,400
7.38%, 7/01/21 (a)		70		77,875
Calpine Corp., 7.25%, 10/15/17 (a)		220		234,850
Energy Future Intermediate Holding Co. LLC,
10.00%, 12/01/20		915		1,009,931
Laredo Petroleum, Inc.:
9.50%, 2/15/19		140		156,450
7.38%, 5/01/22 (a)		130		134,550
QEP Resources, Inc., 5.38%, 10/01/22		280		280,000
				2,460,056
Insurance — 5.4%
American International Group, Inc.:
3.80%, 3/22/17 (c)		725		748,793
8.25%, 8/15/18		300		363,489
6.40%, 12/15/20 (c)		1,235		1,418,594
Aon Corp., 5.00%, 9/30/20 (c)		1,500		1,666,660
Fairfax Financial Holdings Ltd., 5.80%, 5/15/21 (a)		1,500		1,457,420
Forethought Financial Group, Inc., 8.63%, 4/15/21 (a)		525		536,924
Genworth Financial, Inc., 7.63%, 9/24/21		480		473,951
Manulife Financial Corp., 4.90%, 9/17/20		1,075		1,123,357
MPL 2 Acquisition Canco, Inc., 9.88%, 8/15/18 (a)		210		181,125
Principal Financial Group, Inc., 8.88%, 5/15/19		475		615,226
Prudential Financial, Inc., 6.63%, 12/01/37 (c)		1,725		2,000,427
XL Group Ltd., 5.75%, 10/01/21		1,740		1,924,289
				12,510,255
IT Services — 0.7%
Epicor Software Corp., 8.63%, 5/01/19		340		351,900
Fidelity National Information Services, Inc.,
5.00%, 3/15/22 (a)		160		160,000
First Data Corp.:
7.38%, 6/15/19 (a)(c)		455		465,238
8.25%, 1/15/21 (a)		40		39,400
12.63%, 1/15/21		340		340,850
SunGard Data Systems, Inc., 7.38%, 11/15/18		350		373,625
				1,731,013

See Notes to Financial Statements.

Schedule of Investments (continued)	BlackRock Credit Allocation Income Trust III (BPP)
	(Percentages shown are based on Net Assets)

Corporate Bonds		Par (000)		Value
Life Sciences Tools & Services — 1.9%
Bio-Rad Laboratories, Inc., 8.00%, 9/15/16	USD	1,830		$	2,022,150
Life Technologies Corp., 6.00%, 3/01/20		2,000		2,325,530
				4,347,680
Machinery — 1.2%
Ingersoll-Rand Global Holding Co., Ltd., 9.50%, 4/15/14		1,725		1,982,617
UR Financing Escrow Corp. (a):
5.75%, 7/15/18		114		117,705
7.38%, 5/15/20		290		304,500
7.63%, 4/15/22		267		282,352
				2,687,174
Media — 9.6%
AMC Networks, Inc., 7.75%, 7/15/21 (a)		190		212,325
CCH II LLC, 13.50%, 11/30/16		1,128		1,274,640
Comcast Corp., 6.30%, 11/15/17 (c)		1,725		2,092,454
Cox Communications, Inc., 8.38%, 3/01/39 (a)		1,725		2,476,729
CSC Holdings LLC:
8.50%, 4/15/14		330		363,825
8.63%, 2/15/19		580		658,300
DIRECTV Holdings LLC, 5.00%, 3/01/21		1,250		1,366,934
DISH DBS Corp., 7.00%, 10/01/13		850		910,562
Intelsat Jackson Holdings SA, 7.25%, 4/01/19		150		156,375
Intelsat Luxemburg SA:
11.25%, 2/04/17		300		311,250
11.50%, 2/04/17 (f)		190		198,075
The Interpublic Group of Cos., Inc., 10.00%, 7/15/17		575		654,781
Kabel BW Erste Beteiligungs GmbH, 7.50%, 3/15/19 (a)		500		533,750
The New York Times Co., 6.63%, 12/15/16		1,725		1,800,469
News America, Inc., 6.15%, 3/01/37 (c)		2,000		2,221,498
Time Warner Cable, Inc., 6.75%, 6/15/39		1,950		2,351,300
Time Warner, Inc., 7.70%, 5/01/32		2,000		2,620,306
Unitymedia Hessen GmbH & Co. KG (FKA UPC
Germany GmbH), 8.13%, 12/01/17 (a)		505		541,613
Virgin Media Secured Finance Plc, 6.50%, 1/15/18		1,300		1,417,000
				22,162,186
Metals & Mining — 2.1%
Alcoa, Inc., 5.40%, 4/15/21		290		304,793
Barrick Gold Corp., 2.90%, 5/30/16		550		576,739
Barrick North America Finance LLC, 5.70%, 5/30/41 (c)		650		716,234
Freeport-McMoRan Copper & Gold, Inc., 3.55%, 3/01/22		675		666,956
Freeport-McMoRan Corp., 7.13%, 11/01/27		1,400		1,727,642
New Gold, Inc., 7.00%, 4/15/20 (a)		65		66,462
Novelis, Inc., 8.75%, 12/15/20		470		518,175
Teck Resources Ltd., 10.75%, 5/15/19		190		235,125
				4,812,126
Multi-Utilities — 1.6%
CenterPoint Energy, Inc.:
5.95%, 2/01/17		1,500		1,714,863
6.50%, 5/01/18		1,600		1,904,085
				3,618,948
Multiline Retail — 0.3%
JC Penney Co., Inc., 5.65%, 6/01/20 (c)		720		698,400
Oil, Gas & Consumable Fuels — 13.5%
Anadarko Petroleum Corp.:
5.95%, 9/15/16		497		574,604
6.38%, 9/15/17		12		14,261
Berry Petroleum Co., 6.38%, 9/15/22		205		213,200
BP Capital Markets Plc:
3.88%, 3/10/15		700		749,740
3.20%, 3/11/16		925		985,439
Buckeye Partners LP, 4.88%, 2/01/21		475		490,677
Chesapeake Midstream Partners LP:
5.88%, 4/15/21		285		270,750
6.13%, 7/15/22		230		221,375
Chesapeake Oilfield Operating LLC, 6.63%, 11/15/19 (a)		20		18,800

Corporate Bonds		Par (000)		Value
Oil, Gas & Consumable Fuels (concluded)
Concho Resources, Inc., 5.50%, 10/01/22	USD	205		$	205,000
CONSOL Energy, Inc., 6.38%, 3/01/21		220		206,800
Copano Energy LLC, 7.13%, 4/01/21		270		284,850
DCP Midstream LLC, 4.75%, 9/30/21 (a)		625		674,917
El Paso Pipeline Partners Operating Co. LLC:
6.50%, 4/01/20		680		781,113
5.00%, 10/01/21		300		316,934
Enbridge Energy Partners LP, 9.88%, 3/01/19		1,000		1,348,961
Energy XXI Gulf Coast, Inc., 7.75%, 6/15/19		500		516,250
Enterprise Products Operating LLC, 6.65%, 4/15/18		2,000		2,421,606
Everest Acquisition LLC/Everest Acquisition
Finance, Inc., 6.88%, 5/01/19 (a)		165		173,250
Forest Oil Corp., 8.50%, 2/15/14		600		645,000
Kinder Morgan Energy Partners LP, 6.85%, 2/15/20 (c)		2,000		2,418,780
Kodiak Oil & Gas Corp., 8.13%, 12/01/19 (a)		110		116,600
Linn Energy LLC:
6.25%, 11/01/19 (a)		545		536,825
7.75%, 2/01/21		220		232,100
Marathon Petroleum Corp., 3.50%, 3/01/16		650		681,796
MarkWest Energy Partners LP, 6.25%, 6/15/22		255		268,388
Newfield Exploration Co., 6.88%, 2/01/20		275		292,188
Nexen, Inc., 6.40%, 5/15/37		670		743,711
Oasis Petroleum, Inc.:
7.25%, 2/01/19		165		174,900
6.50%, 11/01/21		145		147,900
OGX Petroleo e Gas Participacoes SA,
8.50%, 6/01/18 (a)(c)		575		596,563
ONEOK Partners LP, 8.63%, 3/01/19		1,725		2,255,815
Petrobras International Finance Co.:
3.88%, 1/27/16		1,800		1,884,301
5.38%, 1/27/21		1,075		1,177,587
Petrohawk Energy Corp., 10.50%, 8/01/14		300		333,000
Petroleum Geo-Services ASA, 7.38%, 12/15/18 (a)		310		320,850
Phillips 66, 2.95%, 5/01/17 (a)		515		528,453
Pioneer Natural Resources Co.:
6.65%, 3/15/17		320		363,029
6.88%, 5/01/18		240		282,536
Plains Exploration & Production Co.:
10.00%, 3/01/16		200		220,000
6.75%, 2/01/22		30		31,200
Precision Drilling Corp., 6.50%, 12/15/21		210		218,400
Premier Oil Plc, 5.00%, 6/09/18		1,625		1,677,812
Range Resources Corp., 6.75%, 8/01/20		415		450,275
Ruby Pipeline LLC, 6.00%, 4/01/22 (a)		1,425		1,459,100
Samson Investment Co., 9.75%, 2/15/20 (a)		295		307,906
SandRidge Energy, Inc.:
7.50%, 3/15/21		95		95,950
8.13%, 10/15/22 (a)		105		108,938
SM Energy Co.:
6.63%, 2/15/19		110		116,050
6.50%, 11/15/21		165		174,075
Targa Resources Partners LP, 6.88%, 2/01/21		240		250,800
Tennessee Gas Pipeline Co., 8.00%, 2/01/16		400		466,278
Western Gas Partners LP, 5.38%, 6/01/21		725		791,011
The Williams Cos., Inc., 8.75%, 3/15/32		247		333,728
				31,170,372
Paper & Forest Products — 3.1%
Boise Paper Holdings LLC:
9.00%, 11/01/17		140		155,750
8.00%, 4/01/20		310		341,775
Georgia-Pacific LLC, 8.25%, 5/01/16 (a)		980		1,082,900
International Paper Co.:
7.50%, 8/15/21		1,625		2,063,020
8.70%, 6/15/38		900		1,226,057
7.30%, 11/15/39		1,725		2,134,436
Longview Fibre Paper & Packaging, Inc.,
8.00%, 6/01/16 (a)		160		161,600
				7,165,538

See Notes to Financial Statements.

Schedule of Investments (continued)	BlackRock Credit Allocation Income Trust III (BPP)
	(Percentages shown are based on Net Assets)

Corporate Bonds		Par (000)		Value
Pharmaceuticals — 2.2%
Merck & Co., Inc., 6.50%, 12/01/33	USD	990		$	1,365,119
Pfizer, Inc., 7.20%, 3/15/39 (c)		1,635		2,417,304
Roche Holdings, Inc., 7.00%, 3/01/39 (a)		865		1,227,709
Valeant Pharmaceuticals International,
6.50%, 7/15/16 (a)		125		129,531
				5,139,663
Professional Services — 0.0%
FTI Consulting, Inc., 7.75%, 10/01/16		100		104,000
Real Estate Investment Trusts (REITs) — 2.9%
AvalonBay Communities, Inc., 6.10%, 3/15/20 (c)		1,725		2,053,875
Developers Diversified Realty Corp.:
4.75%, 4/15/18		315		326,363
7.88%, 9/01/20		375		450,357
ERP Operating LP, 5.75%, 6/15/17		1,715		1,973,905
HCP, Inc., 5.38%, 2/01/21		500		550,860
UDR, Inc., 4.25%, 6/01/18		725		770,394
Ventas Realty LP/Ventas Capital Corp., 4.75%, 6/01/21		550		567,031
				6,692,785
Real Estate Management & Development — 0.2%
Realogy Corp., 7.63%, 1/15/20 (a)(c)		295		306,063
Shea Homes LP, 8.63%, 5/15/19 (a)		230		239,775
				545,838
Road & Rail — 1.4%
Avis Budget Car Rental LLC, 8.25%, 1/15/19		54		56,565
Florida East Coast Railway Corp., 8.13%, 2/01/17		80		82,200
The Hertz Corp., 6.75%, 4/15/19		188		196,225
Norfolk Southern Corp., 6.00%, 3/15/2105 (c)		2,500		2,898,215
				3,233,205
Semiconductors & Semiconductor Equipment — 0.7%
Advanced Micro Devices, Inc., 7.75%, 8/01/20		400		441,000
KLA-Tencor Corp., 6.90%, 5/01/18		918		1,110,790
				1,551,790
Software — 0.1%
Lawson Software, Inc., 9.38%, 4/01/19 (a)		220		229,900
Specialty Retail — 1.2%
AutoNation, Inc., 6.75%, 4/15/18		940		1,019,900
Limited Brands, Inc., 7.00%, 5/01/20		470		521,700
QVC, Inc., 7.38%, 10/15/20 (a)		50		54,750
Sally Holdings LLC, 6.88%, 11/15/19 (a)		290		308,850
VF Corp., 5.95%, 11/01/17		725		865,353
				2,770,553
Tobacco — 2.4%
Altria Group, Inc., 10.20%, 2/06/39 (c)		1,919		3,074,574
Lorillard Tobacco Co., 3.50%, 8/04/16		1,175		1,231,249
Philip Morris International, Inc., 2.50%, 5/16/16 (c)		1,225		1,288,003
				5,593,826
Wireless Telecommunication Services — 5.3%
America Movil SAB de CV, 2.38%, 9/08/16		1,780		1,816,518
American Tower Corp.:
4.50%, 1/15/18		925		976,740
5.05%, 9/01/20		500		529,038
Cricket Communications, Inc., 7.75%, 5/15/16		325		342,063
Crown Castle International Corp., 9.00%, 1/15/15		430		475,150
Crown Castle Towers LLC (a):
5.50%, 1/15/37		575		634,866
4.17%, 8/15/37		1,000		1,046,738
6.11%, 1/15/40		625		713,732
Nextel Communications, Inc., Series E,
6.88%, 10/31/13		395		395,000
SBA Tower Trust, 5.10%, 4/15/42 (a)		2,500		2,720,517
Sprint Capital Corp., 6.88%, 11/15/28		480		358,800

Corporate Bonds		Par (000)		Value
Wireless Telecommunication Services (concluded)
Sprint Nextel Corp. (a):
9.00%, 11/15/18	USD	760		$	836,950
7.00%, 3/01/20		1,290		1,315,800
				12,161,912
Total Corporate Bonds — 106.2%				245,136,717
Preferred Securities
Capital Trusts
Capital Markets — 3.7%
State Street Capital Trust III, 5.46% (b)(e)		1,385		1,390,429
State Street Capital Trust IV, 1.47%, 6/01/37 (b)		9,675		7,199,874
				8,590,303
Commercial Banks — 3.1%
Barclays Bank Plc (a)(b)(e):
5.93%,		1,700		1,547,000
7.43%,		325		325,000
BNP Paribas, 7.20% (a)(b)(c)(e)		700		602,000
Credit Agricole SA, 8.38% (a)(b)(c)(e)		725		638,000
Dresdner Funding Trust I, 8.15%, 6/30/31 (a)		1,095		881,475
FCB/NC Capital Trust I, 8.05%, 3/01/28		1,100		1,105,265
National City Preferred Capital Trust I, 12.00% (b)(e)		600		638,640
NBP Capital Trust III, 7.38% (e)		2,000		1,380,000
				7,117,380
Consumer Finance — 0.3%
Capital One Capital V, 10.25%, 8/15/39		750		781,875
Diversified Financial Services — 4.3%
JPMorgan Chase Capital XXI, Series U,
1.49%, 2/02/37 (b)		7,125		5,276,191
JPMorgan Chase Capital XXIII, 1.50%, 5/15/47 (b)		6,190		4,580,730
				9,856,921
Electric Utilities — 0.4%
PPL Capital Funding, 6.70%, 3/30/67 (b)		900		891,000
Insurance — 7.8%
The Allstate Corp., 6.50%, 5/15/67 (b)		900		879,750
American General Capital II, 8.50%, 7/01/30		100		109,301
American International Group, Inc., 8.18%, 5/15/68 (b)		400		427,500
AXA SA, 6.38% (a)(b)(e)		900		715,500
Chubb Corp., 6.38%, 3/29/67 (b)		900		921,375
Liberty Mutual Group, Inc., 10.75%, 6/15/88 (a)(b)		900		1,224,000
Lincoln National Corp., 7.00%, 5/17/66 (b)		900		873,000
MetLife, Inc., 6.40%, 12/15/66		900		880,392
Mitsui Sumitomo Insurance Co., Ltd.,
7.00%, 3/15/72 (a)(b)		700		719,201
Northwestern Mutual Life Insurance,
6.06%, 3/30/40 (a)(c)		1,800		2,144,666
Prudential Plc, 6.50% (e)		6,000		5,661,000
Reinsurance Group of America, 6.75%, 12/15/65 (b)		1,300		1,202,894
Swiss Re Capital I LP, 6.85% (a)(b)(e)		1,000		919,653
ZFS Finance (USA) (a)(b):
Trust II, 6.45%, 12/15/65		1,150		1,127,000
Trust IV, 5.88%, 5/09/62		190		190,237
				17,995,469
Oil, Gas & Consumable Fuels — 0.4%
TransCanada PipeLines Ltd., 6.35%, 5/15/67 (b)		900		939,503
Total Capital Trusts — 20.0%				46,172,451

See Notes to Financial Statements.

Schedule of Investments (continued)	BlackRock Credit Allocation Income Trust III (BPP)
	(Percentages shown are based on Net Assets)

Preferred Stocks — 0.4%		Shares		Value
Diversified Financial Services — 0.4%
Ally Financial, Inc., 7.00% (a)		1,170		$	993,038
Trust Preferreds — 0.3%
Diversified Financial Services — 0.3%
GMAC Capital Trust I, Series 2, 8.13% (b)		26,490		623,076
Total Preferred Securities — 20.7%				47,788,565
Taxable Municipal Bonds — 0.9%		Par (000)
Metropolitan Transportation Authority, RB, Build America
Bonds, 6.55%, 11/15/31	USD	1,675		2,054,404
US Government Sponsored Agency Securities — 0.3%
Agency Obligations — 0.3%
Fannie Mae, 4.23%, 10/09/19 (c)(g)		805		648,134
U.S. Treasury Obligations
US Treasury Bonds (c):
3.75%, 8/15/41		713		805,021
3.13%, 11/15/41		1,060		1,063,312
US Treasury Notes, 0.88%, 12/31/16 (c)		1,875		1,886,134
Total U.S. Treasury Obligations — 1.6%				3,754,467
Warrants — 0.0% (h)		Shares
Media — 0.0%
Cumulus Media, Inc. (Expires 3/26/19)		2,345		17,872
Total Long-Term Investments
(Cost — $289,613,314) — 130.2%				300,498,659
Short-Term Securities
BlackRock Liquidity Funds, TempFund,
Institutional Class, 0.15% (i)(j)		841,364		841,364
Total Short-Term Securities
(Cost — $841,364) — 0.4%				841,364
Options Purchased		Contracts
Exchange-Traded Put Options — 0.0%
S&P 500 Index, Strike Price USD 1,200.00,
Expires 6/16/12		138		35,880

Options Purchased		Notional Amount (000)		Value
Over-the-Counter Interest Rate Call Swaptions — 0.1%
Receive a fixed rate of 2.40% and pay a floating rate
based on 3-month LIBOR, expires 5/11/12,
Broker Citibank NA	USD	2,700		$	96
Receive a fixed rate of 2.61% and pay a floating rate
based on 3-month LIBOR, expires 4/05/13,
Broker Citibank NA		5,200		240,832
Receive a fixed rate of 2.61% and pay a floating rate
based on 3-month LIBOR, expires 1/13/14,
Broker Credit Suisse Securities (USA) LLC		500		21,881
				262,809
Over-the-Counter Interest Rate Put Swaptions — 0.1%
Receive a fixed rate of 2.61% and pay a floating rate
based on 3-month LIBOR, expires 4/05/13,
Broker Citibank NA		5,200		109,356
Pay a fixed rate of 2.61% and receive a floating rate
based on 3-month LIBOR, Expires 1/13/14,
Broker Credit Suisse Securities (USA) LLC		500		20,162
Pay a fixed rate of 4.50% and receive a floating rate
based on 3-month LIBOR, Expires 2/02/17,
Broker Deutsche Bank AG		2,300		77,197
				206,715
Total Options Purchased
(Cost — $991,810) — 0.2%				505,404
Total Investments Before Options Written
(Cost — $291,446,488) — 130.8%				301,845,427
Options Written		Contracts
Over-the-Counter Call Options — (0.0)%
S&P 500 Index, Strike Price USD 1,450.00,
Expires 6/15/12, Broker Deutsche Bank AG		3,500		(25,517		)
Options Written		Notional Amount (000)
Over-the-Counter Interest Rate Call Swaptions — (0.4)%
Pay a fixed rate of 4.75% and receive a floating rate
based on 3-month LIBOR, Expires 3/24/14,
Broker Citibank NA	USD	5,000		(967,336		)
Over-the-Counter Interest Rate Put Swaptions — (0.1)%
Receive a fixed rate of 1.75% and pay a floating rate
based on 3-month LIBOR, Expires 8/23/12,
Broker Deutsche Bank AG		10,800		(14,881		)
Receive a fixed rate of 4.75% and pay a floating rate
based on 3-month LIBOR, Expires 3/24/14,
Broker Citibank NA		5,000		(30,291		)
Receive a fixed rate of 6.00% and pay a floating rate
based on 3-month LIBOR, Expires 2/02/17,
Broker Deutsche Bank AG		4,600		(68,296		)
				(113,468		)
Total Options Written
(Premiums Received — $764,470) — (0.5)%				(1,106,321		)
Total Investments, Net of Options Written — 130.3%				300,739,106
Liabilities in Excess of Other Assets — (30.3)%				(70,016,682		)
Net Assets — 100.0%				$	230,722,424

See Notes to Financial Statements.

Schedule of Investments (continued)

BlackRock Credit Allocation Income Trust III (BPP)

(a)

Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(b)

Variable rate security. Rate shown is as of report date.

(c)

All or a portion of security has been pledged as collateral in connection with open reverse repurchase agreements.

(d)

Represents a step-down bond that pays an initial coupon rate for the first period and then a lower coupon rate for the following periods. Rate shown is as of report date.

(e)

Security is perpetual in nature and has no stated maturity date.

(f)

Represents a payment-in-kind security which may pay interest/dividends in additional par/shares.

(g)

Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.

(h)

Warrants entitle the Fund to purchase a predetermined number of shares of common stock and are non-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date, if any.

(i)

Investments in companies considered to be an affiliate of the Fund during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate	Shares Held at October 31, 2011	Net Activity	Shares Held at April 30, 2012	Income
BlackRock Liquidity
Funds, TempFund,
Institutional Class	2,459,914	(1,618,550)	841,364	$ 1,396

(j)

Represents the current yield as of report date.

•

For Fund compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by Fund management. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.

•

Reverse repurchase agreements outstanding as of April 30, 2012 were as follows:

Counterparty	Interest Rate	Trade Date	Maturity Date	Net Closing Amount			Face Amount
UBS Securities LLC	0.37%	1/10/12	Open	$	1,732,617		$	1,730,625
UBS Securities LLC	0.38%	1/10/12	Open	2,046,667			2,044,250
UBS Securities LLC	0.38%	1/12/12	Open	1,537,033			1,535,250
UBS Securities LLC	0.25%	1/25/12	Open	495,584			495,250
UBS Securities LLC	(1.25)%	2/02/12	Open	249,240			250,012
Credit Suisse Securities
(USA) LLC	0.35%	2/15/12	Open	2,001,366			1,999,889
Credit Suisse Securities
(USA) LLC	0.35%	2/22/12	Open	1,403,441			1,402,500
UBS Securities LLC	0.25%	3/05/12	Open	105,642			105,600
Credit Suisse Securities
(USA) LLC	0.25%	3/07/12	Open	608,295			608,062
Barclays Capital, Inc.	0.35%	3/08/12	Open	788,414			788,000
Credit Suisse Securities
(USA) LLC	0.38%	3/13/12	Open	14,484,358			14,476,871
Deutsche Bank AG	0.17%	3/14/12	Open	1,033,734			1,033,500
Credit Suisse Securities
(USA) LLC	0.30%	3/20/12	Open	2,879,257			2,878,250
Credit Suisse Securities
(USA) LLC	0.35%	3/20/12	Open	1,472,351			1,471,750
Barclays Capital, Inc.	0.35%	3/21/12	Open	1,601,888			1,601,250
Barclays Capital, Inc.	0.35%	3/22/12	Open	1,342,040			1,341,519
Credit Suisse Securities
(USA) LLC	0.35%	3/27/12	Open	698,957			698,719
UBS Securities LLC	0.38%	3/27/12	Open	2,163,086			2,162,288
Barclays Capital, Inc.	0.35%	4/03/12	Open	7,496,838			7,494,797
BNP Paribas
Securities Corp.	0.10%	4/03/12	Open	779,013			778,952
BNP Paribas
Securities Corp.	0.11%	4/03/12	Open	628,054			628,000
BNP Paribas
Securities Corp.	0.35%	4/03/12	Open	1,514,412			1,514,000
Barclays Capital, Inc.	(1.00)%	4/03/12	Open	318,922			319,170
UBS Securities LLC	0.30%	4/04/12	Open	2,403,941			2,403,400
UBS Securities LLC	0.31%	4/04/12	Open	477,486			477,375
UBS Securities LLC	0.35%	4/04/12	Open	8,704,035			8,701,750
UBS Securities LLC	0.38%	4/04/12	Open	7,758,210			7,756,000
UBS Securities LLC	0.10%	4/16/12	Open	348,015			348,000
Deutsche Bank AG	0.00%	4/24/12	Open	115,700			115,700
Deutsche Bank AG	0.12%	4/24/12	Open	1,889,107			1,889,063
Barclays Capital, Inc.	0.35%	4/25/12	Open	2,072,183			2,072,063
BNP Paribas
Securities Corp.	0.37%	4/26/12	Open	2,155,111			2,155,000
Deutsche Bank AG	0.25%	4/26/12	Open	648,023			648,000
Total				$	73,953,020		$	73,924,855

See Notes to Financial Statements.

Schedule of Investments (continued)

BlackRock Credit Allocation Income Trust III (BPP)

•

Financial futures contracts purchased as of April 30, 2012 were as follows:

Contracts	Issue	Exchange	Expiration		Notional Value	Unrealized Appreciation
3	2-Year US	Chicago Board	June
	Treasury Note	of Trade	2012	USD	661,641	$	688
20	30-Year US	Chicago Board	June
	Treasury Bond	of Trade	2012	USD	2,857,500	133,717
91	5-Year US	Chicago Board	June
	Treasury Note	of Trade	2012	USD	11,265,515	48,373
Total						$	182,778

•

Financial futures contracts sold as of April 30, 2012 were as follows:

Contracts	Issue	Exchange	Expiration		Notional Value	Unrealized Depreciation
207	10-Year US	Chicago Board	June
	Treasury Note	of Trade	2012	USD	27,382,219	$	(366,325)
48	Ultra Long Term	Chicago Board	June
	US Treasury Bond	of Trade	2012	USD	7,575,000		(205,820)
Total						$	(572,145)

•

Credit default swaps on single-name issues — buy protection outstanding as of April 30, 2012 were as follows:

Issuer	Pay Fixed Rate	Counterparty	Expiration Date	Notional Amount (000)		Unrealized Appreciation (Depreciation)
The New York
Times Co.	1.00%	Barclays Bank Plc	12/20/16	USD	1,725	$	14,871
Southwest		Goldman Sachs
Airlines Co.	1.00%	& Co.	12/20/16	USD	570	(14,296)
Southwest		Royal Bank of
Airlines Co.	1.00%	Scotland Plc	12/20/16	USD	570	(16,512)
Time		Credit Suisse
Warner Inc.	1.00%	Securities (USA) LLC	3/20/17	USD	3,500	(3,143)
Emerson		Morgan Stanley
Electric Co.	1.00%	& Co., Inc.	3/20/17	USD	1,125	(8,936)
Total						$	(28,016)

•

Credit default swaps on single-name issues — sold protection outstanding as of April 30, 2012 were as follows:

Issuer	Receive Fixed Rate	Counter- party	Expiration	Issuer Credit Rating1	Notional Amount (000)2		Unrealized Appreciation (Depreciation)
Aviva USA		Deutsche
Corp.	1.00%	Bank AG	5/25/12	A	USD	1,300	$	(17)
DIRECTV		Credit Suisse
Holdings		Securities
LLC	1.00%	(USA) LLC	3/20/17	BBB	USD	3,500	59,047
MetLife, Inc.	1.00%	Deutsche
		Bank AG	3/20/18	A-	USD	425	(8,873)
Total							$	50,157

1

Using S&P’s rating.

2

The maximum potential amount the Fund may pay should a negative credit event take place as defined under the terms of agreement.

•

Credit default swaps on traded indexes — sold protection outstanding as of April 30, 2012 were as follows:

Index	Receive Fixed Rate	Counter- party	Expiration	Credit Rating3	Notional Amount (000)4	Unrealized Appreciation
Dow Jones
CDX North
America High
Yield Index		Credit Suisse
Series 18,		Securities
Version 1	5.00%	(USA) LLC	6/20/17	B+	USD 900	$13,624

3

Using S&P’s rating of the underlying securities.

4

The maximum potential amount the Fund may pay should a negative credit event take place as defined under the terms of agreement.

•

Interest rate swaps outstanding as of April 30, 2012 were as follows:

Fixed Rate	Floating Rate	Counterparty	Expiration Date	Notional Amount (000)		Unrealized Appreciation (Depreciation)
1.17%5	3-month	Credit Suisse
	LIBOR	Securities (USA) LLC	4/11/17	USD	6,200	$	(26,125)
1.18%5	3-month	Deutsche
	LIBOR	Bank AG	4/11/17	USD	10,100	(47,445)
2.12%5	3-month	Deutsche
	LIBOR	Bank AG	3/05/22	USD	3,100	(26,789)
4.03%5	3-month
	LIBOR	UBS AG	4/18/22	USD	2,800	(415,305)
2.05%6	3-month	Credit Suisse
	LIBOR	Securities (USA) LLC	5/02/22	USD	2,900	968
2.05%6	3-month	Credit Suisse
	LIBOR	Securities (USA) LLC	5/02/22	USD	1,900	—
Total						$	(514,696)

5

Fund pays a fixed interest rate and receives floating rate.

6

Fund pays a floating interest rate and receives fixed rate.

•

Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:

•

Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities

•

Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

•

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments and derivative financial instruments)

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

See Notes to Financial Statements.

Schedule of Investments (concluded)

BlackRock Credit Allocation Income Trust III (BPP)

The following tables summarize the inputs used as of April 30, 2012 in determining the fair valuation of the Fund’s investments and derivative financial instruments:

Valuation Inputs		Level 1				Level 2				Level 3				Total
Assets:
Investments:
Long-Term
Investments:
Asset-Backed Securities			—				—			$	1,098,500			$	1,098,500
Corporate Bonds			—			$	243,458,905				1,677,812				245,136,717
Preferred Securities		$	623,076				47,165,489				—				47,788,565
Taxable Municipal Bonds			—				2,054,404				—				2,054,404
US Government Sponsored
Agency Securities			—				648,134				—				648,134
US Treasury Obligations			—				3,754,467				—				3,754,467
Warrants			—				17,872				—				17,872
Short-Term Securities			841,364				—				—				841,364
Total		$	1,464,440			$	297,099,271			$	2,776,312			$	301,340,023
Valuation Inputs			Level 1				Level 2				Level 3				Total
Derivative Financial Instruments1
Assets:
Equity contracts		$	35,880				—				—			$	35,880
Interest rate contracts			182,778			$	470,492				—				653,270
Credit contracts			—				87,542				—				87,542
Liabilities:
Equity contracts			—				(25,517	)			—				(25,517	)
Interest rate contracts			(572,145	)			(1,596,468	)			—				(2,168,613	)
Credit contracts			—				(51,760	)		$	(17	)			(51,777	)
Total		$	(353,487	)		$	(1,115,711	)		$	(17	)		$	(1,469,215	)

1

Derivative financial instruments are swaps, financial futures contracts, and options. Swaps and financial futures contracts are valued at the unrealized appreciation/depreciation on the instrument and options are shown at value.

The following table is a reconciliation of Level 3 derivative financial instruments for which significant unobservable inputs were used in determining fair value:

		Asset-Backed Securities				Corporate Bonds				Total
Assets:
Balance, as of October 31, 2011		$	1,007,500			$	1,690,000			$	2,697,500
Accrued discounts/premiums			9,192				—				9,192
Net realized gain (loss)			—				—				—
Net change in unrealized appreciation/depreciation2			81,808				(12,188	)			69,620
Purchases			—				—				—
Sales			—				—				—
Transfers in3			—				—				—
Transfers out3			—				—				—
Balance, as of April 30, 2012		$	1,098,500			$	1,677,812			$	2,776,312

2

Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations. The change in unrealized appreciation/depreciation on investments still held at April 30, 2012 was $1,759,621.

3

The Fund’s policy is to recognize transfers in and transfers out as of the beginning of the period of the event or the change in circumstances that caused the transfer.

The following table is a reconciliation of Level 3 derivative financial instruments for which significant unobservable inputs were used in determining fair value:

		Credit Contracts
Assets/Liabilities:
Balance, as of October 31, 2011		$	2,351
Accrued discounts/premiums			4,210
Net realized gain (loss)			—
Net change in unrealized appreciation/depreciation4			(2,368	)
Purchases			—
Issuances5			—
Sales			—
Settlements6			(4,210	)
Transfers in3			—
Transfers out3			—
Balance, as of April 30, 2012		$	(17	)

4

Included in the related net change in unrealized appreciation/depreciation in the Statements of operations. The change in unrealized appreciation/depreciation on derivative financial instruments still held at April 30, 2012 was $(2,368).

5

Issuances represent upfront cash received on certain derivative financial instruments.

6

Settlements represent periodic contractual cash flows and/or cash flows to terminate certain derivative financial instruments.

A reconciliation of Level 3 investments and derivative financial instruments is presented when the Fund had a significant amount of Level 3 investments and derivative financial instruments at the beginning and/or end of the period in relation to net assets.

See Notes to Financial Statements.

Schedule of Investments April 30, 2012 (Unaudited)	BlackRock Credit Allocation Income Trust IV (BTZ)
	(Percentages shown are based on Net Assets)

Asset-Backed Securities		Par (000)		Value
321 Henderson Receivables I LLC, Series 2012-1A,
Class A, 4.21%, 2/16/65 (a)	USD	1,713		$	1,763,318
Atrium CDO Corp., Series 5A, Class A4,
0.88%, 7/20/20 (a)(b)		4,400		3,718,000
SLM Student Loan Trust, Series 2004-B, Class A2,
0.67%, 6/15/21 (b)		3,624		3,475,992
Total Asset-Backed Securities — 1.2%				8,957,310
Corporate Bonds
Aerospace & Defense — 1.0%
BE Aerospace, Inc., 8.50%, 7/01/18		3,575		3,959,313
Huntington Ingalls Industries, Inc.:
6.88%, 3/15/18		990		1,046,925
7.13%, 3/15/21		960		1,016,400
Kratos Defense & Security Solutions, Inc.,
10.00%, 6/01/17		1,662		1,786,650
				7,809,288
Airlines — 0.7%
American Airlines Pass-Through Trust, Series 2011-2,
Class A, 8.63%, 4/15/23		912		962,423
Continental Airlines Pass-Through Certificates,
Series 2009-2, Class B, 9.25%, 5/10/17		1,865		2,037,569
Delta Air Lines, Inc., Series 02G1, 6.72%, 7/02/24		1,949		2,051,785
				5,051,777
Auto Components — 0.7%
Delphi Corp., 6.13%, 5/15/21 (a)		950		1,011,750
Icahn Enterprises LP:
7.75%, 1/15/16		1,180		1,241,950
8.00%, 1/15/18		3,020		3,227,625
				5,481,325
Beverages — 0.5%
Constellation Brands, Inc., 7.25%, 5/15/17		3,230		3,649,900
Building Products — 0.3%
Building Materials Corp. of America (a):
7.00%, 2/15/20		790		843,325
6.75%, 5/01/21		1,560		1,624,350
				2,467,675
Capital Markets — 4.7%
Ameriprise Financial, Inc., 5.30%, 3/15/20 (c)		4,500		5,031,283
E*Trade Financial Corp., 12.50%, 11/30/17		2,565		2,988,225
The Goldman Sachs Group, Inc.:
7.50%, 2/15/19 (c)		5,165		5,975,079
5.75%, 1/24/22		2,800		2,923,743
6.25%, 2/01/41 (c)		7,350		7,468,651
Morgan Stanley, 5.50%, 7/28/21 (c)		5,630		5,504,085
Murray Street Investment Trust I, 4.65%, 3/09/17 (d)		1,000		1,006,004
UBS AG:
2.25%, 1/28/14 (c)		2,678		2,691,896
5.88%, 7/15/16		1,575		1,665,498
				35,254,464
Chemicals — 1.5%
Ashland, Inc., 9.13%, 6/01/17		75		83,250
Celanese US Holdings LLC, 5.88%, 6/15/21		2,560		2,745,600
Hexion US Finance Corp., 6.63%, 4/15/20 (a)		1,440		1,504,800
Ineos Finance Plc (a):
8.38%, 2/15/19		535		573,788
7.50%, 5/01/20		1,210		1,243,275
LyondellBasell Industries NV, 5.75%, 4/15/24 (a)		3,125		3,226,562
Solutia, Inc., 7.88%, 3/15/20		1,425		1,663,687
				11,040,962
Corporate Bonds		Par (000)		Value
Commercial Banks — 4.2%
Amsouth Bank, Series AI, 4.85%, 4/01/13	USD	1,800		$	1,827,000
Asciano Finance Ltd., 5.00%, 4/07/18 (a)		1,475		1,535,444
Associated Banc-Corp, 5.13%, 3/28/16		3,645		3,858,899
Branch Banking & Trust Co. (b)(c):
0.79%, 9/13/16		1,850		1,743,706
0.79%, 5/23/17		1,100		1,025,891
CIT Group, Inc.:
7.00%, 5/02/16 (a)		2,590		2,596,475
7.00%, 5/02/17 (a)		2,120		2,125,300
5.25%, 3/15/18		1,980		2,039,400
5.50%, 2/15/19 (a)		1,720		1,767,300
Discover Bank, 8.70%, 11/18/19		1,950		2,459,545
HSBC Finance Corp., 6.68%, 1/15/21		2,525		2,726,965
Regions Financial Corp.:
4.88%, 4/26/13		4,150		4,274,500
5.75%, 6/15/15		3,000		3,165,000
				31,145,425
Commercial Services & Supplies — 4.0%
Aviation Capital Group Corp. (a):
7.13%, 10/15/20 (c)		15,000		15,341,991
6.75%, 4/06/21		3,850		3,809,190
Casella Waste Systems, Inc., 7.75%, 2/15/19		1,201		1,182,985
Clean Harbors, Inc., 7.63%, 8/15/16		2,250		2,362,500
Corrections Corp. of America, 7.75%, 6/01/17		4,835		5,245,975
Covanta Holding Corp., 6.38%, 10/01/22		1,105		1,136,617
Iron Mountain, Inc., 7.75%, 10/01/19		650		708,500
Mobile Mini, Inc., 7.88%, 12/01/20		455		486,850
				30,274,608
Communications Equipment — 0.8%
Avaya, Inc., 9.75%, 11/01/15 (c)		1,400		1,387,750
Brocade Communications Systems, Inc.,
6.88%, 1/15/20 (c)		3,580		3,911,150
Hughes Satellite Systems Corp., 6.50%, 6/15/19		700		749,000
				6,047,900
Construction Materials — 0.2%
HD Supply, Inc., 8.13%, 4/15/19 (a)		1,490		1,599,888
Consumer Finance — 5.2%
American Express Credit Corp., 2.75%, 9/15/15 (c)		9,850		10,220,380
Capital One Bank USA NA, 8.80%, 7/15/19		3,950		4,988,459
Daimler Finance North America LLC, 2.63%, 9/15/16 (a)		5,675		5,868,041
Ford Motor Credit Co. LLC:
7.00%, 4/15/15		4,730		5,273,950
5.88%, 8/02/21		530		598,947
Inmarsat Finance Plc, 7.38%, 12/01/17 (a)		2,515		2,703,625
SLM Corp., 6.25%, 1/25/16		8,205		8,451,150
Toll Brothers Finance Corp., 5.88%, 2/15/22		680		703,741
				38,808,293
Containers & Packaging — 1.2%
Ardagh Packaging Finance Plc (a):
7.38%, 10/15/17		210		227,325
9.13%, 10/15/20		490		530,425
Ball Corp.:
7.13%, 9/01/16		2,000		2,190,000
6.75%, 9/15/20		3,575		3,950,375
Crown Americas LLC, 6.25%, 2/01/21		1,350		1,468,125
Sealed Air Corp., 8.38%, 9/15/21 (a)		220		249,700
				8,615,950
Diversified Financial Services — 9.3%
Ally Financial, Inc.:
4.50%, 2/11/14		1,500		1,515,000
8.30%, 2/12/15		2,890		3,171,775
8.00%, 11/01/31		1,520		1,740,400

See Notes to Financial Statements.

Schedule of Investments (continued)	BlackRock Credit Allocation Income Trust IV (BTZ)
	(Percentages shown are based on Net Assets)

Corporate Bonds		Par (000)		Value
Diversified Financial Services (concluded)
Bank of America Corp. (c):
3.75%, 7/12/16	USD	2,855		$	2,842,724
5.30%, 3/15/17		6,505		6,784,370
5.00%, 5/13/21		12,100		12,043,372
Citigroup, Inc. (c):
6.38%, 8/12/14		2,150		2,318,549
4.59%, 12/15/15		1,575		1,649,657
4.45%, 1/10/17		1,520		1,587,797
Countrywide Financial Corp., 6.25%, 5/15/16 (c)		6,500		6,740,285
DPL, Inc., 7.25%, 10/15/21 (a)		1,785		1,981,350
General Motors Financial Co., Inc., 6.75%, 6/01/18		830		883,975
ING Bank NV, 5.00%, 6/09/21 (a)(c)		3,950		4,023,553
Intesa Sanpaolo SpA:
2.38%, 12/21/12		5,800		5,717,918
6.50%, 2/24/21 (a)(c)		747		678,693
Macquarie Bank Ltd., 5.00%, 2/22/17 (a)(c)		2,325		2,364,120
Moody’s Corp., 6.06%, 9/07/17		10,000		10,516,330
Reynolds Group Issuer, Inc. (a):
7.13%, 4/15/19		420		438,900
7.88%, 8/15/19		1,370		1,479,600
9.88%, 8/15/19		515		536,888
6.88%, 2/15/21		360		370,800
WMG Acquisition Corp., 9.50%, 6/15/16 (a)		340		371,450
				69,757,506
Diversified Telecommunication Services — 4.4%
AT&T, Inc. (c):
2.40%, 8/15/16		1,525		1,586,813
6.30%, 1/15/38		5,000		5,992,390
Level 3 Financing, Inc. (a):
8.13%, 7/01/19		5,547		5,699,542
8.63%, 7/15/20		1,070		1,120,825
Telecom Italia Capital SA, 6.18%, 6/18/14		1,650		1,703,295
Telefonica Emisiones SAU, 5.46%, 2/16/21		2,250		2,114,629
Verizon Communications, Inc. (c):
1.95%, 3/28/14		8,525		8,724,093
7.35%, 4/01/39		3,640		4,993,177
Windstream Corp., 7.88%, 11/01/17		990		1,093,950
				33,028,714
Electric Utilities — 3.6%
CMS Energy Corp., 5.05%, 3/15/22		1,850		1,883,119
Dominion Resources, Inc., 8.88%, 1/15/19		8,000		10,911,568
Duke Energy Corp., 3.55%, 9/15/21 (c)		2,825		2,947,461
Great Plains Energy, Inc., 5.29%, 6/15/22 (d)		2,725		2,978,844
Progress Energy, Inc., 7.00%, 10/30/31 (c)		5,000		6,526,685
Southern Co., 1.95%, 9/01/16		1,625		1,663,012
				26,910,689
Electronic Equipment, Instruments & Components — 0.3%
Jabil Circuit, Inc., 8.25%, 3/15/18		1,200		1,398,000
NXP BV, 3.22%, 10/15/13 (b)		664		664,000
				2,062,000
Energy Equipment & Services — 3.0%
Atwood Oceanics, Inc., 6.50%, 2/01/20		185		194,713
Energy Transfer Partners LP, 5.20%, 2/01/22		5,000		5,329,475
Ensco Plc, 4.70%, 3/15/21		3,255		3,551,713
Frac Tech Services LLC, 7.13%, 11/15/18 (a)		1,795		1,853,337
Hornbeck Offshore Services, Inc., 5.88%, 4/01/20 (a)		465		463,838
Key Energy Services, Inc., 6.75%, 3/01/21		1,240		1,277,200
MEG Energy Corp., 6.50%, 3/15/21 (a)		1,580		1,662,950
Oil States International, Inc., 6.50%, 6/01/19		835		883,013
Peabody Energy Corp., 6.25%, 11/15/21 (a)		2,575		2,607,187
Transocean, Inc.:
6.50%, 11/15/20		1,860		2,136,070
6.38%, 12/15/21		2,300		2,693,284
				22,652,780
Corporate Bonds		Par (000)		Value
Food & Staples Retailing — 0.6%
Wal-Mart Stores, Inc. (c):
5.25%, 9/01/35	USD	2,650		$	3,044,304
6.20%, 4/15/38		1,225		1,603,167
				4,647,471
Food Products — 0.7%
Kraft Foods, Inc.:
6.50%, 8/11/17		1,985		2,408,609
6.13%, 8/23/18		1,990		2,406,907
Smithfield Foods, Inc., 10.00%, 7/15/14		668		781,560
				5,597,076
Gas Utilities — 0.2%
El Paso Natural Gas Co., 8.63%, 1/15/22		1,150		1,455,504
Health Care Equipment & Supplies — 0.8%
Fresenius US Finance II, Inc., 9.00%, 7/15/15 (a)		4,250		4,871,563
Teleflex, Inc., 6.88%, 6/01/19		815		872,050
				5,743,613
Health Care Providers & Services — 3.3%
Aetna, Inc., 6.75%, 12/15/37 (c)		2,025		2,628,910
Aviv Healthcare Properties LP, 7.75%, 2/15/19		765		795,600
HCA, Inc.:
8.50%, 4/15/19		265		297,297
6.50%, 2/15/20		3,780		4,044,600
7.25%, 9/15/20		4,590		5,083,425
INC Research LLC, 11.50%, 7/15/19 (a)		1,155		1,134,787
inVentiv Health, Inc., 10.00%, 8/15/18 (a)		445		398,962
Tenet Healthcare Corp.:
10.00%, 5/01/18		2,175		2,512,125
8.88%, 7/01/19		1,825		2,046,281
UnitedHealth Group, Inc., 6.88%, 2/15/38		4,075		5,459,282
				24,401,269
Health Care Technology — 0.9%
Amgen, Inc.:
5.15%, 11/15/41 (c)		6,280		6,544,683
5.65%, 6/15/42		70		77,873
				6,622,556
Household Durables — 0.2%
Standard Pacific Corp., 8.38%, 1/15/21		1,480		1,561,400
Independent Power Producers & Energy Traders — 1.1%
AES Corp.:
9.75%, 4/15/16		1,620		1,911,600
7.38%, 7/01/21 (a)		225		250,313
Calpine Corp., 7.25%, 10/15/17 (a)		730		779,275
Energy Future Intermediate Holding Co. LLC,
10.00%, 12/01/20		3,135		3,460,256
Laredo Petroleum, Inc.:
9.50%, 2/15/19		485		541,987
7.38%, 5/01/22 (a)		440		455,400
QEP Resources, Inc., 5.38%, 10/01/22		944		944,000
				8,342,831
Insurance — 4.3%
American International Group, Inc. (c):
3.80%, 3/22/17		2,500		2,582,045
8.25%, 8/15/18		1,050		1,272,211
6.40%, 12/15/20		4,275		4,910,517
Fairfax Financial Holdings Ltd., 5.80%, 5/15/21 (a)		4,975		4,833,775
Forethought Financial Group, Inc., 8.63%, 4/15/21 (a)		1,625		1,661,907
Genworth Financial, Inc., 7.63%, 9/24/21		1,615		1,594,648
Manulife Financial Corp., 4.90%, 9/17/20		3,650		3,814,188
MPL 2 Acquisition Canco, Inc., 9.88%, 8/15/18 (a)		715		616,687
Principal Financial Group, Inc., 8.88%, 5/15/19		1,145		1,483,019
Prudential Financial, Inc., 6.63%, 12/01/37 (c)		4,075		4,725,647
XL Group Ltd., 5.75%, 10/01/21		4,105		4,539,773
				32,034,417

See Notes to Financial Statements.

Schedule of Investments (continued)	BlackRock Credit Allocation Income Trust IV (BTZ)
	(Percentages shown are based on Net Assets)

Corporate Bonds		Par (000)		Value
IT Services — 0.8%
Epicor Software Corp., 8.63%, 5/01/19	USD	1,180		$	1,221,300
Fidelity National Information Services, Inc.,
5.00%, 3/15/22 (a)		530		530,000
First Data Corp.:
7.38%, 6/15/19 (a)(c)		1,550		1,584,875
8.25%, 1/15/21 (a)		135		132,975
12.63%, 1/15/21		1,160		1,162,900
SunGard Data Systems, Inc., 7.38%, 11/15/18		1,210		1,291,675
				5,923,725
Life Sciences Tools & Services — 1.6%
Bio-Rad Laboratories, Inc., 8.00%, 9/15/16		5,480		6,055,400
Life Technologies Corp., 6.00%, 3/01/20		4,800		5,581,272
				11,636,672
Machinery — 0.9%
Ingersoll-Rand Global Holding Co., Ltd.,
9.50%, 4/15/14		4,075		4,683,573
UR Financing Escrow Corp. (a):
5.75%, 7/15/18		389		401,643
7.38%, 5/15/20		995		1,044,750
7.63%, 4/15/22		909		961,267
				7,091,233
Media — 7.3%
AMC Networks, Inc., 7.75%, 7/15/21 (a)		655		731,963
CCH II LLC, 13.50%, 11/30/16		3,851		4,351,630
Comcast Corp., 6.30%, 11/15/17 (c)		4,075		4,943,044
Cox Communications, Inc., 8.38%, 3/01/39 (a)		4,075		5,850,824
CSC Holdings LLC:
8.50%, 4/15/14		1,130		1,245,825
8.63%, 2/15/19		1,950		2,213,250
DIRECTV Holdings LLC, 5.00%, 3/01/21 (c)		4,150		4,538,220
DISH DBS Corp., 7.00%, 10/01/13		1,950		2,088,937
Intelsat Jackson Holdings SA, 7.25%, 4/01/19		320		333,600
Intelsat Luxemburg SA:
11.25%, 2/04/17		1,030		1,068,625
11.50%, 2/04/17 (e)		630		656,775
The Interpublic Group of Cos., Inc., 10.00%, 7/15/17		1,975		2,249,031
Kabel BW Erste Beteiligungs GmbH, 7.50%, 3/15/19 (a)		1,760		1,878,800
News America, Inc., 6.15%, 3/01/37 (c)		4,850		5,387,133
Time Warner Cable, Inc., 6.75%, 6/15/39		4,675		5,637,092
Time Warner, Inc., 7.70%, 5/01/32 (c)		4,900		6,419,750
Unitymedia Hessen GmbH & Co. KG (FKA UPC
Germany GmbH), 8.13%, 12/01/17 (a)		1,225		1,313,812
Virgin Media Secured Finance Plc, 6.50%, 1/15/18		3,175		3,460,750
				54,369,061
Metals & Mining — 2.0%
Alcoa, Inc., 5.40%, 4/15/21 (c)		940		987,948
Barrick Gold Corp., 2.90%, 5/30/16 (c)		1,925		2,018,586
Barrick North America Finance LLC, 5.70%, 5/30/41 (c)		2,275		2,506,818
Freeport-McMoRan Copper & Gold, Inc.,
3.55%, 3/01/22		2,300		2,272,591
Freeport-McMoRan Corp., 7.13%, 11/01/27		3,500		4,319,105
New Gold, Inc., 7.00%, 4/15/20 (a)		215		219,838
Novelis, Inc., 8.75%, 12/15/20		1,610		1,775,025
Teck Resources Ltd., 10.75%, 5/15/19		1,000		1,237,500
				15,337,411
Multi-Utilities — 1.2%
CenterPoint Energy, Inc.:
5.95%, 2/01/17		3,600		4,115,671
6.50%, 5/01/18		3,950		4,700,710
				8,816,381
Multiline Retail — 0.8%
JC Penney Co., Inc., 5.65%, 6/01/20 (c)		6,015		5,834,550
Corporate Bonds		Par (000)		Value
Oil, Gas & Consumable Fuels — 13.5%
Anadarko Petroleum Corp.:
5.95%, 9/15/16	USD	1,686		$	1,949,259
6.38%, 9/15/17		52		61,797
Berry Petroleum Co., 6.38%, 9/15/22		705		733,200
BP Capital Markets Plc (c):
5.25%, 11/07/13		2,100		2,234,711
3.88%, 3/10/15		3,085		3,304,211
Buckeye Partners LP, 4.88%, 2/01/21 (c)		1,650		1,704,458
Chesapeake Midstream Partners LP:
5.88%, 4/15/21		980		931,000
6.13%, 7/15/22		785		755,563
Chesapeake Oilfield Operating LLC,
6.63%, 11/15/19 (a)		70		65,800
Concho Resources, Inc., 5.50%, 10/01/22		700		700,000
CONSOL Energy, Inc., 6.38%, 3/01/21		745		700,300
Copano Energy LLC, 7.13%, 4/01/21		930		981,150
DCP Midstream LLC, 4.75%, 9/30/21 (a)		2,100		2,267,721
El Paso Pipeline Partners Operating Co. LLC:
6.50%, 4/01/20		2,525		2,900,455
5.00%, 10/01/21		900		950,803
Enbridge Energy Partners LP, 9.88%, 3/01/19		2,425		3,271,230
Energy XXI Gulf Coast, Inc., 7.75%, 6/15/19		1,700		1,755,250
Enterprise Products Operating LLC, 6.65%, 4/15/18		4,800		5,811,854
Everest Acquisition LLC/Everest Acquisition
Finance, Inc., 6.88%, 5/01/19 (a)		565		593,250
Forest Oil Corp., 8.50%, 2/15/14		2,055		2,209,125
Kinder Morgan Energy Partners LP:
6.85%, 2/15/20		4,800		5,805,072
3.95%, 9/01/22		2,500		2,517,618
Kodiak Oil & Gas Corp., 8.13%, 12/01/19 (a)		380		402,800
Linn Energy LLC:
6.25%, 11/01/19 (a)		1,865		1,837,025
7.75%, 2/01/21		750		791,250
Marathon Petroleum Corp., 3.50%, 3/01/16		2,250		2,360,063
MarkWest Energy Partners LP, 6.25%, 6/15/22		880		926,200
Newfield Exploration Co., 6.88%, 2/01/20		950		1,009,375
Nexen, Inc., 6.40%, 5/15/37		2,270		2,519,736
Oasis Petroleum, Inc.:
7.25%, 2/01/19		560		593,600
6.50%, 11/01/21		505		515,100
OGX Petroleo e Gas Participacoes SA,
8.50%, 6/01/18 (a)(c)		2,495		2,588,563
ONEOK Partners LP, 8.63%, 3/01/19		4,075		5,328,955
Petrobras International Finance Co.:
3.88%, 1/27/16		6,150		6,438,029
5.38%, 1/27/21		3,625		3,970,934
Petrohawk Energy Corp., 10.50%, 8/01/14		1,020		1,132,200
Petroleum Geo-Services ASA, 7.38%, 12/15/18 (a)		865		895,275
Phillips 66, 2.95%, 5/01/17 (a)		1,755		1,800,844
Pioneer Natural Resources Co.:
6.65%, 3/15/17		1,080		1,225,223
6.88%, 5/01/18		820		965,330
Plains Exploration & Production Co.:
10.00%, 3/01/16		700		770,000
6.75%, 2/01/22		95		98,800
Precision Drilling Corp., 6.50%, 12/15/21		700		728,000
Premier Oil Plc, 5.00%, 6/09/18		5,650		5,833,625
Range Resources Corp., 6.75%, 8/01/20		1,415		1,535,275
Ruby Pipeline LLC, 6.00%, 4/01/22 (a)		4,900		5,017,257
Samson Investment Co., 9.75%, 2/15/20 (a)		1,000		1,043,750
SandRidge Energy, Inc.:
7.50%, 3/15/21		330		333,300
8.13%, 10/15/22 (a)		325		337,188
SM Energy Co.:
6.63%, 2/15/19		365		385,075
6.50%, 11/15/21		570		601,350
Targa Resources Partners LP, 6.88%, 2/01/21		820		856,900

See Notes to Financial Statements.

Schedule of Investments (continued)	BlackRock Credit Allocation Income Trust IV (BTZ)
	(Percentages shown are based on Net Assets)

Corporate Bonds		Par (000)		Value
Oil, Gas & Consumable Fuels (concluded)
Tennessee Gas Pipeline Co., 8.00%, 2/01/16	USD	1,376		$	1,603,996
Western Gas Partners LP, 5.38%, 6/01/21		2,525		2,754,901
The Williams Cos., Inc., 8.75%, 3/15/32		1,175		1,587,573
				100,991,319
Paper & Forest Products — 2.6%
Boise Paper Holdings LLC:
9.00%, 11/01/17		480		534,000
8.00%, 4/01/20		1,070		1,179,675
Georgia-Pacific LLC, 8.25%, 5/01/16 (a)		2,375		2,624,375
International Paper Co.:
7.50%, 8/15/21 (c)		3,950		5,014,726
8.70%, 6/15/38		3,100		4,223,087
7.30%, 11/15/39		4,075		5,042,218
Longview Fibre Paper & Packaging, Inc.,
8.00%, 6/01/16 (a)		545		550,450
				19,168,531
Pharmaceuticals — 2.5%
Merck & Co., Inc., 6.50%, 12/01/33 (c)		2,885		3,978,150
Pfizer, Inc., 7.20%, 3/15/39 (c)		6,980		10,319,742
Roche Holdings, Inc., 7.00%, 3/01/39 (a)(c)		3,020		4,286,337
Valeant Pharmaceuticals International,
6.50%, 7/15/16 (a)		450		466,312
				19,050,541
Real Estate Investment Trusts (REITs) — 2.5%
AvalonBay Communities, Inc., 6.10%, 3/15/20 (c)		4,075		4,851,907
Developers Diversified Realty Corp.:
4.75%, 4/15/18		1,025		1,061,976
7.88%, 9/01/20		1,325		1,591,263
ERP Operating LP, 5.75%, 6/15/17		4,080		4,695,937
HCP, Inc., 5.38%, 2/01/21		1,675		1,845,379
UDR, Inc., 4.25%, 6/01/18		2,675		2,842,487
Ventas Realty LP/Ventas Capital Corp., 4.75%, 6/01/21		1,880		1,938,216
				18,827,165
Real Estate Management & Development — 0.4%
Realogy Corp. (a)(c):
7.88%, 2/15/19		940		921,200
7.63%, 1/15/20		1,025		1,063,437
Shea Homes LP, 8.63%, 5/15/19 (a)		805		839,213
				2,823,850
Road & Rail — 1.5%
Avis Budget Car Rental LLC, 8.25%, 1/15/19		180		188,550
Florida East Coast Railway Corp., 8.13%, 2/01/17		320		328,800
The Hertz Corp., 6.75%, 4/15/19		564		588,675
Norfolk Southern Corp., 6.00%, 3/15/2105 (c)		8,500		9,853,931
				10,959,956
Semiconductors & Semiconductor Equipment — 0.5%
Advanced Micro Devices, Inc., 7.75%, 8/01/20		1,300		1,433,250
KLA-Tencor Corp., 6.90%, 5/01/18		2,208		2,671,704
				4,104,954
Software — 0.1%
Lawson Software, Inc., 9.38%, 4/01/19 (a)		870		909,150
Specialty Retail — 1.2%
AutoNation, Inc., 6.75%, 4/15/18		2,775		3,010,875
Limited Brands, Inc., 7.00%, 5/01/20		1,370		1,520,700
QVC, Inc., 7.38%, 10/15/20 (a)		175		191,625
Sally Holdings LLC, 6.88%, 11/15/19 (a)		990		1,054,350
VF Corp., 5.95%, 11/01/17 (c)		2,450		2,924,298
				8,701,848
Corporate Bonds		Par (000)		Value
Tobacco — 2.6%
Altria Group, Inc., 10.20%, 2/06/39	USD	6,607		$	10,585,570
Lorillard Tobacco Co., 3.50%, 8/04/16		4,150		4,348,669
Philip Morris International, Inc., 2.50%, 5/16/16 (c)		4,200		4,416,010
				19,350,249
Wireless Telecommunication Services — 5.3%
America Movil SAB de CV, 2.38%, 9/08/16		7,455		7,607,947
American Tower Corp.:
4.50%, 1/15/18		3,200		3,378,992
5.90%, 11/01/21		2,180		2,450,455
Cricket Communications, Inc., 7.75%, 5/15/16		780		820,950
Crown Castle International Corp., 9.00%, 1/15/15		1,185		1,309,425
Crown Castle Towers LLC (a):
5.50%, 1/15/37		1,975		2,180,627
4.17%, 8/15/37		2,000		2,093,476
6.11%, 1/15/40		2,330		2,660,795
Nextel Communications, Inc., Series E,
6.88%, 10/31/13		1,040		1,040,000
SBA Tower Trust, 5.10%, 4/15/42 (a)		6,250		6,801,294
Sprint Capital Corp., 6.88%, 11/15/28		1,650		1,233,375
Sprint Nextel Corp. (a):
9.00%, 11/15/18		3,210		3,535,012
7.00%, 3/01/20		4,390		4,477,800
				39,590,148
Total Corporate Bonds — 105.0%				785,552,025
Preferred Securities
Capital Trusts
Capital Markets — 3.0%
State Street Capital Trust III, 5.46% (b)(f)		1,740		1,746,821
State Street Capital Trust IV, 1.47%, 6/01/37 (b)		28,195		20,981,958
				22,728,779
Commercial Banks — 5.6%
Barclays Bank Plc, 7.43% (a)(b)(c)(f)		1,100		1,100,000
BB&T Capital Trust IV, 6.82%, 6/12/77 (b)		15,300		15,453,000
BNP Paribas, 7.20% (a)(b)(c)(f)		2,500		2,150,000
Credit Agricole SA, 8.38% (a)(b)(c)(f)		2,450		2,156,000
Dresdner Funding Trust I, 8.15%, 6/30/31 (a)		3,715		2,990,575
HSBC Capital Funding LP/Jersey Channel Islands,
10.18% (a)(b)(c)(f)		7,000		9,100,000
National City Preferred Capital Trust I, 12.00% (b)(f)		3,713		3,952,117
Standard Chartered Plc, 7.01% (a)(b)(f)		5,000		4,802,625
				41,704,317
Consumer Finance — 0.2%
Capital One Capital V, 10.25%, 8/15/39		1,275		1,329,187
Diversified Financial Services — 3.3%
JPMorgan Chase Capital XXI, Series U,
1.49%, 2/02/37 (b)		12,875		9,534,169
JPMorgan Chase Capital XXIII, 1.50%, 5/15/47 (b)		20,695		15,314,735
				24,848,904
Electric Utilities — 0.5%
PPL Capital Funding, 6.70%, 3/30/67 (b)		3,900		3,861,000
Insurance — 8.2%
Ace Capital Trust II, 9.70%, 4/01/30		4,000		5,467,168
The Allstate Corp., 6.50%, 5/15/67 (b)		4,000		3,910,000
American General Capital II, 8.50%, 7/01/30		300		327,902
American International Group, Inc., 8.18%, 5/15/68 (b)		1,300		1,389,375
Aon Corp., 8.21%, 1/01/27		4,000		4,673,312

See Notes to Financial Statements.

Schedule of Investments (continued)	BlackRock Credit Allocation Income Trust IV (BTZ)
	(Percentages shown are based on Net Assets)

Capital Trusts		Par (000)		Value
Insurance (concluded)
AXA SA, 6.46% (a)(b)(f)	USD	6,000		$	4,875,000
Chubb Corp., 6.38%, 3/29/67 (b)		4,000		4,095,000
Liberty Mutual Group, Inc., 10.75%, 6/15/88 (a)(b)		4,000		5,440,000
Lincoln National Corp., 7.00%, 5/17/66 (b)		4,255		4,127,350
MetLife, Inc., 6.40%, 12/15/66		4,550		4,450,874
Mitsui Sumitomo Insurance Co., Ltd.,
7.00%, 3/15/72 (a)(b)		2,360		2,424,734
Northwestern Mutual Life Insurance,
6.06%, 3/30/40 (a)(c)		5,500		6,553,145
Reinsurance Group of America, 6.75%, 12/15/65 (b)(c)		7,000		6,477,121
Swiss Re Capital I LP, 6.85% (a)(b)(f)		3,000		2,758,959
ZFS Finance (USA) (a)(b):
Trust II, 6.45%, 12/15/65		3,850		3,773,000
Trust IV, 5.88%, 5/09/62		599		599,749
				61,342,689
Oil, Gas & Consumable Fuels — 1.2%
Enterprise Products Operating LLC, 8.38%, 8/01/66 (b)		4,500		4,882,500
TransCanada PipeLines Ltd., 6.35%, 5/15/67 (b)		4,000		4,175,568
				9,058,068
Total Capital Trusts — 22.0%				164,872,944
Preferred Stocks		Shares
Auto Components — 0.1%
Dana Holding Corp., 4.00% (a)		7,000		877,625
Diversified Financial Services — 0.4%
Ally Financial, Inc., 7.00% (a)		3,640		3,089,450
Real Estate Investment Trusts (REITs) — 1.1%
Sovereign Real Estate Investment Trust, 12.00% (a)		7,000		7,797,020
Thrifts & Mortgage Finance — 0.0%
Fannie Mae, 8.25%, Series S (b)(g)		23,000		28,290
Freddie Mac, 8.38%, Series Z (b)(g)		23,000		28,750
				57,040
Wireless Telecommunication Services — 1.6%
Centaur Funding Corp., 9.08% (a)		10,000		11,850,000
Total Preferred Stocks — 3.2%				23,671,135
Trust Preferreds — 0.3%
Diversified Financial Services — 0.3%
GMAC Capital Trust I, Series 2, 8.13% (b)		89,130		2,096,443
Total Preferred Securities — 25.5%				190,640,522
Taxable Municipal Bonds		Par (000)
City of Chicago Illinois, RB, Build America Bonds,
6.85%, 1/01/38	USD	5,000		5,618,500
Metropolitan Transportation Authority, RB, Build America
Bonds, 6.55%, 11/15/31		4,075		4,998,028
Total Taxable Municipal Bonds — 1.4%				10,616,528
US Government Sponsored Agency Securities — 0.3%
Agency Obligations — 0.3%
Fannie Mae, 4.23%, 10/09/19 (c)(h)		2,765		2,226,198

US Treasury Obligations		Par (000)		Value
US Treasury Bonds (c):
3.75%, 8/15/41	USD	945		$	1,066,963
3.13%, 11/15/41		3,935		3,947,297
US Treasury Notes (c):
0.88%, 12/31/16		6,377		6,414,867
0.88%, 1/31/17		6,000		6,031,872
Total US Treasury Obligations — 2.3%				17,460,999
Total Long-Term Investments
(Cost — $978,835,280) — 135.7%				1,015,453,582
Short-Term Securities		Shares
BlackRock Liquidity Funds, TempFund,
Institutional Class, 0.15% (i)(j)		2,310,288		2,310,288
Total Short-Term Securities
(Cost — $2,310,288) — 0.3%				2,310,288
Options Purchased		Contracts
Exchange-Traded Put Options — 0.0%
S&P 500 Index, Strike Price USD 1,200.00,
Expires 6/16/12		472		122,720
Options Purchased		Notional Amount (000)
Over-the-Counter Interest Rate Call Swaptions — 0.1%
Receive a fixed rate of 2.40% and pay a floating rate
based on 3-month LIBOR, expires 5/11/12,
Broker Citibank NA	USD	9,100		324
Receive a fixed rate of 2.61% and pay a floating rate
based on 3-month LIBOR, expires 4/05/13,
Broker Citibank NA		17,600		815,123
Receive a fixed rate of 2.61% and pay a floating rate
based on 3-month LIBOR, expires 1/13/14,
Broker Credit Suisse Securities (USA) LLC		1,900		83,149
				898,596
Over-the-Counter Interest Rate Put Swaptions — 0.1%
Receive a fixed rate of 2.61% and pay a floating rate
based on 3-month LIBOR, expires 4/05/13,
Broker Citibank NA		17,600		370,126
Pay a fixed rate of 2.61% and receive a floating rate
based on 3-month LIBOR, Expires 1/13/14,
Broker Credit Suisse Securities (USA) LLC		1,900		76,615
Pay a fixed rate of 4.50% and receive a floating rate
based on 3-month LIBOR, Expires 2/02/17,
Broker Deutsche Bank AG		8,000		268,512
				715,253
Total Options Purchased
(Cost — $3,399,654) — 0.2%				1,736,569
Total Investments Before Options Written
(Cost — $984,545,222) — 136.2%				1,019,500,439
Options Written		Contracts
Over-the-Counter Call Options — (0.0)%
S&P 500 Index, Strike Price USD 1,450.00,
Expires 6/15/12, Broker Deutsche Bank AG		11,800		(86,029		)

See Notes to Financial Statements.

Schedule of Investments (continued)	BlackRock Credit Allocation Income Trust IV (BTZ)
	(Percentages shown are based on Net Assets)

Options Written		Notional Amount (000)		Value
Over-the-Counter Interest Rate Call Swaptions — (0.4)%
Pay a fixed rate of 4.75% and receive a floating rate
based on 3-month LIBOR, Expires 3/24/14,
Broker Citibank NA	USD	17,000		$	(3,288,942	)
Over-the-Counter Interest Rate Put Swaptions — (0.1)%
Receive a fixed rate of 1.75% and pay a floating rate
based on 3-month LIBOR, Expires 8/23/12,
Broker Deutsche Bank AG		37,000		(50,982		)
Receive a fixed rate of 4.75% and pay a floating rate
based on 3-month LIBOR, Expires 3/24/14,
Broker Citibank NA		17,000		(102,988		)
Receive a fixed rate of 6.00% and pay a floating rate
based on 3-month LIBOR, Expires 2/02/17,
Broker Deutsche Bank AG		16,000		(237,552		)
				(391,522		)
Total Options Written
(Premiums Received — $2,606,390) — (0.5)%				(3,766,493		)
Total Investments, Net of Options Written — 135.7%				1,015,733,946
Liabilities in Excess of Other Assets — (35.7)%				(267,418,446		)
Net Assets — 100.0%				$	748,315,500

(a)

Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(b)

Variable rate security. Rate shown is as of report date.

(c)

All or a portion of security has been pledged as collateral in connection with open reverse repurchase agreements.

(d)

Represents a step-down bond that pays an initial coupon rate for the first period and then a lower coupon rate for the following periods. Rate shown is as of report date.

(e)

Represents a payment-in-kind security which may pay interest/dividends in additional par/shares.

(f)

Security is perpetual in nature and has no stated maturity date.

(g)

Non-income producing security.

(h)

Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.

(i)

Investments in companies considered to be an affiliate of the Fund during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate	Shares Held at October 31, 2011	Net Activity	Shares Held at April 30, 2012	Income
BlackRock Liquidity
Funds, TempFund,
Institutional Class	3,823,108	(1,512,820)	2,310,288	$3,544

(j)

Represents the current yield as of report date.

•

For Fund compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by Fund management. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.

•

Reverse repurchase agreements outstanding as of April 30, 2012 were as follows:

Counterparty	Interest Rate	Trade Date	Maturity Date	Net Closing Amount		Face Amount
Deutsche Bank AG	(0.50)%	1/17/12	Open	$	746,210	$	747,300
UBS Securities LLC	(1.25)%	2/02/12	Open	866,003		868,687
UBS Securities LLC	0.35%	2/07/12	Open	14,787,066		14,775,000
UBS Securities LLC	0.37%	2/07/12	Open	14,062,943		14,050,813
UBS Securities LLC	0.38%	2/07/12	Open	17,466,911		17,451,438
Merrill Lynch	0.04%	2/13/12	Open	6,015,521		6,015,000
Credit Suisse Securities
(USA) LLC	0.35%	2/14/12	Open	6,206,143		6,201,500
UBS Securities LLC	0.38%	2/17/12	Open	5,463,669		5,459,405
Credit Suisse Securities
(USA) LLC	0.35%	2/22/12	Open	6,432,437		6,428,125
Barclays Capital, Inc.	0.35%	2/29/12	Open	2,174,810		2,173,500
Credit Suisse Securities
(USA) LLC	0.35%	3/02/12	Open	1,071,625		1,071,000
UBS Securities LLC	0.25%	3/05/12	Open	356,541		356,400
Credit Suisse Securities
(USA) LLC	(0.25)%	3/07/12	Open	2,637,455		2,638,461
UBS Securities LLC	0.38%	3/12/12	Open	1,595,529		1,594,687
Credit Suisse Securities
(USA) LLC	0.38%	3/13/12	Open	19,860,048		19,849,781
UBS Securities LLC	0.32%	3/13/12	Open	3,912,203		3,910,500
UBS Securities LLC	0.38%	3/13/12	Open	8,173,225		8,169,000
Deutsche Bank AG	0.08%	3/14/12	Open	3,837,495		3,836,625
Credit Suisse Securities
(USA) LLC	0.30%	3/20/12	Open	9,779,547		9,776,125
Credit Suisse Securities
(USA) LLC	0.35%	3/20/12	Open	3,635,184		3,633,700
Barclays Capital, Inc.	0.35%	3/21/12	Open	4,540,340		4,538,531
Barclays Capital, Inc.	0.35%	3/22/12	Open	6,887,115		6,884,438
UBS Securities LLC	0.35%	3/23/12	Open	690,340		690,079
Credit Suisse Securities
(USA) LLC	0.35%	3/27/12	Open	2,410,195		2,409,375
UBS Securities LLC	0.38%	3/27/12	Open	9,234,460		9,231,050
Barclays Capital, Inc.	0.35%	4/03/12	Open	23,364,523		23,358,163
Barclays Capital, Inc.	(1.00)%	4/03/12	Open	1,079,429		1,080,269
UBS Securities LLC	0.10%	4/16/12	Open	1,218,051		1,218,000
Credit Suisse Securities
(USA) LLC	0.35%	4/18/12	Open	1,515,660		1,515,469
Credit Suisse Securities
(USA) LLC	0.38%	4/18/12	Open	2,574,581		2,574,227
Credit Suisse Securities
(USA) LLC	0.35%	4/23/12	Open	1,525,819		1,525,700
UBS Securities LLC	0.34%	4/23/12	Open	4,054,656		4,054,350
BNP Paribas
Securities Corp.	0.15%	4/24/12	Open	2,198,239		2,198,175
BNP Paribas
Securities Corp.	0.35%	4/24/12	Open	8,253,562		8,253,000
BNP Paribas
Securities Corp.	0.37%	4/24/12	Open	17,732,394		17,731,119
BNP Paribas
Securities Corp.	0.39%	4/24/12	Open	3,262,247		3,262,000
Deutsche Bank AG	0.00%	4/24/12	Open	387,150		387,150

See Notes to Financial Statements.

Schedule of Investments (continued)

BlackRock Credit Allocation Income Trust IV (BTZ)

•

Reverse repurchase agreements outstanding as of April 30, 2012 were as follows (concluded):

Counterparty	Interest Rate	Trade Date	Maturity Date	Net Closing Amount		Face Amount
Deutsche Bank AG	0.12%	4/24/12	Open	$	6,424,977	$	6,424,828
UBS Securities LLC	0.34%	4/24/12	Open	2,712,429		2,712,250
UBS Securities LLC	0.35%	4/25/12	Open	22,756,141		22,754,813
UBS Securities LLC	0.38%	4/25/12	Open	23,862,161		23,860,650
UBS Securities LLC	0.35%	4/26/12	Open	921,245		921,200
Deutsche Bank AG	0.25%	4/26/12	Open	5,413,688		5,413,500
Total				$	282,099,967	$	282,005,383

•

Financial futures contracts purchased as of April 30, 2012 were as follows:

Contracts	Issue	Exchange	Expiration	Notional Value		Unrealized Appreciation
10	2-Year US	Chicago Board	June
	Treasury Note	of Trade	2012	USD	2,205,469	$	2,294
70	30-Year US	Chicago Board	June
	Treasury Bond	of Trade	2012	USD	10,001,250	468,010
301	5-Year US	Chicago Board	June
	Treasury Note	of Trade	2012	USD	37,262,859	159,955
Total						$	630,259

•

Financial futures contracts sold as of April 30, 2012 were as follows:

Contracts	Issue	Exchange	Expiration	Notional Value		Unrealized Depreciation
764	10-Year US	Chicago Board	June
	Treasury Note	of Trade	2012	USD	101,062,875	$	(1,648,043)
142	Ultra Long Term	Chicago Board	June
	US Treasury Bond	Trade	2012	USD	22,409,375	(754,434)
Total						$	(2,402,477)

•

Credit default swaps on single-name issues — buy protection outstanding as of April 30, 2012 were as follows:

Issuer	Pay Fixed Rate	Counterparty	Expiration Date	Notional Amount (000)		Unrealized Depreciation
Southwest		Goldman Sachs
Airlines Co.	1.00%	& Co.	12/20/16	USD	1,965	$	(49,284)
Southwest		Royal Bank of
Airlines Co.	1.00%	Scotland Plc	12/20/16	USD	1,965	(56,923)
Time		Credit Suisse
Warner		Securities
Inc.	1.00%	(USA) LLC	3/20/17	USD	12,300	(11,046)
Total						$	(117,253)

•

Credit default swaps on single-name issues — sold protection outstanding as of April 30, 2012 were as follows:

Issuer	Receive Fixed Rate	Counter- party	Expiration Date	Issuer Credit Rating1	Notional Amount (000)2		Unrealized Appreciation (Depreciation)
Aviva USA		Deutsche
Corp.	1.00%	Bank AG	5/25/12	A	USD	4,525	$	(59)
DIRECTV		Credit Suisse
Holdings		Securities
LLC	1.00%	(USA) LLC	3/20/17	BBB	USD	12,300	207,508
MetLife,		Deutsche
Inc.	1.00%	Bank AG	3/20/18	A-	USD	1,500	(31,316)
Total							$	176,133

1

Using S&P’s rating.

2

The maximum potential amount the Fund may pay should a negative credit event take place as defined under the terms of agreement.

•

Credit default swaps on traded indexes — sold protection outstanding as of April 30, 2012 were as follows:

Index	Receive Fixed Rate	Counter- party	Expiration Date	Credit Rating3	Notional Amount (000)4		Unrealized Appreciation
Dow Jones
CDX North
America High
Yield Index		Credit Suisse
Series 18,		Securities
Version 1	5.00%	(USA) LLC	6/20/17	B+	USD	3,080	$	46,622

3		Using S&P’s rating of the underlying securities.

4

The maximum potential amount the Fund may pay should a negative credit event take place as defined under the terms of agreement.

•

Interest rate swaps outstanding as of April 30, 2012 were as follows:

Fixed Rate	Floating Rate	Counter- party	Expiration Date	Notional Amount (000)		Unrealized Appreciation (Depreciation)
1.17%5	3-month	Credit Suisse
	LIBOR	Securities (USA) LLC	4/11/17	USD	20,000	$	(84,273)
1.18%5	3-month	Deutsche
	LIBOR	Bank AG	4/11/17	USD	33,000	(155,017)
2.35%5	3-month	Deutsche
	LIBOR	Bank AG	3/19/22	USD	10,700	(314,894)
4.06%5	3-month	Deutsche
	LIBOR	Bank AG	4/18/22	USD	9,500	(1,435,854)
2.05%6	3-month	Credit Suisse
	LIBOR	Securities (USA) LLC	5/02/22	USD	9,800	—
2.05%6	3-month	Credit Suisse
	LIBOR	Securities (USA) LLC	5/02/22	USD	6,500	3,311
Total						$	(1,986,727)

5

Fund pays a fixed interest rate and receives floating rate.

6

Fund pays a floating interest rate and receives fixed rate.

•

Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:

•

Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities

•

Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

•

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments and derivative financial instruments)

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

See Notes to Financial Statements.

Schedule of Investments (concluded)

BlackRock Credit Allocation Income Trust IV (BTZ)

The following tables summarize the inputs used as of April 30, 2012 in determining the fair valuation of the Fund’s investments and derivative financial instruments:

Valuation Inputs		Level 1				Level 2				Level 3				Total
Assets:
Investments:
Long-Term
Investments:
Asset-Backed Securities			—			$	5,239,310			$	3,718,000			$	8,957,310
Corporate Bonds			—				779,718,400				5,833,625				785,552,025
Preferred Securities		$	2,153,483				188,487,039				—				190,640,522
Taxable Municipal Bonds			—				10,616,528				—				10,616,528
US Government Sponsored
Agency Securities			—				2,226,198				—				2,226,198
US Treasury Obligations			—				17,460,999				—				17,460,999
Short-Term Securities			2,310,288				—				—				2,310,288
Total		$	4,463,771			$	1,003,748,474			$	9,551,625			$	1,017,763,870
Valuation Inputs			Level 1				Level 2				Level 3				Total
Derivative Financial Instruments1
Assets:
Equity contracts		$	122,720				—				—			$	122,720
Interest rate contracts			630,259			$	1,617,160				—				2,247,419
Credit contracts			—				254,130				—				254,130
Liabilities:
Equity contracts			—				(86,029	)			—				(86,029	)
Interest rate contracts			(2,402,477	)			(5,670,502	)			—				(8,072,979	)
Credit contracts			—				(148,569	)		$	(59	)			(148,628	)
Total		$	(1,649,498	)		$	(4,033,810	)		$	(59	)		$	(5,683,367	)

1

Derivative financial instruments are swaps, financial futures contracts, foreign currency exchange contracts and options. Swaps, financial futures contracts and foreign currency exchange contracts are valued at the unrealized appreciation/depreciation on the instrument and options are shown at value.

The following table is a reconciliation of Level 3 investments for which significant unobservable inputs were used in determining fair value:

		Asset-Backed Securities				Corporate Bonds				Total
Assets:
Balance, as of October 31, 2011		$	3,410,000			$	5,876,000			$	9,286,000
Accrued discounts/premiums			31,109				—				31,109
Net realized gain (loss)			—				—				—
Net change in unrealized appreciation/depreciation2			276,891				(42,375	)			234,516
Purchases			—				—				—
Sales			—				—				—
Transfers in3			—				—				—
Transfers out3			—				—				—
Balance, as of April 30, 2012		$	3,718,000			$	5,833,625			$	9,551,625

2

Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations. The change in unrealized appreciation/depreciation on investments still held at April 30, 2012 was $6,110,516.

3

The Fund’s policy is to recognize transfers in and transfers out as of the beginning of the period of the event or the change in circumstances that caused the transfer.

The following table is a reconciliation of Level 3 derivative financial instruments for which significant unobservable inputs were used in determining fair value:

		Credit Contracts
Assets:
Balance, as of October 31, 2011		$	8,182
Accrued discounts/premiums			14,656
Net realized gain (loss)			—
Net change in unrealized appreciation/depreciation4			(8,241	)
Purchases			—
Issuances5			—
Sales			—
Settlements6			(14,656	)
Transfers in3			—
Transfers out3			—
Balance, as of April 30, 2012		$	(59	)

4

Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations. The change in unrealized appreciation/depreciation on derivative financial instruments still held at April 30, 2012 was $(8,241).

5

Issuances represent upfront cash received on certain derivative financial instruments.

6

Settlements represent periodic contractual cash flows and/or cash flows to terminate certain derivative financial instruments.

A reconciliation of Level 3 investments and derivative financial instruments is presented when the Fund had a significant amount of Level 3 investments and derivative financial instruments at the beginning and/or end of the period in relation to net assets.

See Notes to Financial Statements.

Consolidated Schedule of Investments April 30, 2012 (Unaudited)	BlackRock Floating Rate Income Trust (BGT) (Percentages shown are based on Net Assets)

Asset-Backed Securities		Par (000)		Value
ARES CLO Funds, Series 2005-10A, Class B,
0.86%, 9/18/17 (a)(b)	USD	1,000		$	937,310
Canaras Summit CLO Ltd., Series 2007-1A, Class B,
0.95%, 6/19/21 (a)(b)		930		805,566
Chatham Light CLO Ltd., Series 2005-2A, Class A2,
0.94%, 8/03/19 (a)(b)		1,000		900,000
Flagship CLO, Series 2006-1A, Class B,
0.82%, 9/20/19 (a)(b)		1,196		935,870
Franklin CLO Ltd., Series 6A, Class B,
0.97%, 8/09/19 (a)(b)		1,180		1,007,130
Fraser Sullivan CLO Ltd., Series 2012-7A, Class C,
4.47%, 4/20/23 (a)(b)		575		511,290
Gannett Peak CLO Ltd., Series 2006-1X, Class A2,
0.83%, 10/27/20 (b)		715		586,300
Goldentree Loan Opportunities VI Ltd., Series 2012-6A,
Class D, 4.61%, 4/17/22 (a)		950		866,115
Greyrock CDO Ltd., Series 2005-1X, Class A2L,
0.92%, 11/15/17		1,495		1,296,763
Landmark CDO Ltd., Series 2006-8A, Class B,
0.83%, 10/19/20 (a)(b)		1,335		1,112,763
MAPS CLO Fund LLC, Series 2005-1A, Class C,
1.42%, 12/21/17 (a)(b)		705		664,462
Race Point CLO, Series 2012-6A, Class D,
4.97%, 5/24/23 (a)(b)		675		631,991
Symphony CLO Ltd., Series 2012-9A, Class D,
4.62%, 4/16/22 (a)(b)		775		708,436
T2 Income Fund CLO Ltd., Series 2007-1A, Class B,
1.07%, 7/15/19 (a)(b)		815		719,278
Total Asset-Backed Securities — 3.5%				11,683,274
Common Stocks (c)		Shares
Auto Components — 0.8%
Delphi Automotive Plc (180-day lock)
(Acquired 11/17/11, cost $500,143)(d)		87,569		2,665,086
Construction & Engineering — 0.0%
USI United Subcontractors		7,645		15,289
Hotels, Restaurants & Leisure — 0.2%
BLB Worldwide Holdings, Inc.		50,832		632,858
Metals & Mining — 0.1%
Euramax International		1,135		329,208
Paper & Forest Products — 0.0%
Ainsworth Lumber Co. Ltd.		55,255		69,918
Ainsworth Lumber Co. Ltd. (a)		62,685		79,320
				149,238
Software — 0.0%
Bankruptcy Management Solutions, Inc.		2,947		383
HMH Holdings/EduMedia		115,632		8,673
				9,056
Total Common Stocks — 1.1%				3,800,735
Corporate Bonds		Par (000)
Airlines — 0.1%
American Airlines Pass-Through Trust, Series 2011-2,
Class A, 8.63%, 4/15/23		335		353,230
Auto Components — 0.7%
Icahn Enterprises LP:
7.75%, 1/15/16		1,515		1,594,537
8.00%, 1/15/18		660		705,375
				2,299,912

Corporate Bonds		Par (000)		Value
Beverages — 0.7%
Central European Distribution Corp., 3.32%, 5/15/14	EUR	1,500		$	1,713,530
Refresco Group BV, 5.06%, 5/15/18 (a)(b)		500		595,665
				2,309,195
Building Products — 0.3%
Grohe Holding GmbH, 4.88%, 9/15/17 (a)(b)		700		889,527
Capital Markets — 0.1%
E*Trade Financial Corp., 0.01%, 8/31/19 (a)(e)(f)	USD	439		459,304
Chemicals — 0.4%
Hexion US Finance Corp., 6.63%, 4/15/20 (a)		650		679,250
Ineos Finance Plc (a):
8.38%, 2/15/19		285		305,663
7.50%, 5/01/20		430		441,825
				1,426,738
Commercial Banks — 1.3%
CIT Group, Inc., 7.00%, 5/02/17 (a)		400		401,000
VTB Bank OJSC Via VTB Capital SA, 6.88%, 5/29/18		3,940		4,157,527
				4,558,527
Commercial Services & Supplies — 0.2%
AWAS Aviation Capital Ltd., 7.00%, 10/17/16 (a)		538		557,269
Consumer Finance — 0.3%
Inmarsat Finance Plc, 7.38%, 12/01/17 (a)		1,015		1,091,125
Containers & Packaging — 0.7%
Ardagh Packaging Finance Plc:
7.38%, 10/15/17 (a)	EUR	400		558,602
7.38%, 10/15/17		300		418,951
GCL Holdings SCA, 9.38%, 4/15/18 (a)		329		389,770
Smurfit Kappa Acquisitions (a):
7.25%, 11/15/17		355		498,108
7.75%, 11/15/19		416		589,206
				2,454,637
Diversified Financial Services — 0.5%
Ally Financial, Inc., 2.69%, 12/01/14 (b)	USD	795		754,163
Reynolds Group Issuer, Inc. (a):
7.13%, 4/15/19		325		339,625
6.88%, 2/15/21		490		504,700
				1,598,488
Diversified Telecommunication Services — 0.2%
ITC Deltacom, Inc., 10.50%, 4/01/16		530		567,100
Energy Equipment & Services — 0.6%
Compagnie Generale de Geophysique - Veritas,
7.75%, 5/15/17		1,795		1,866,800
Health Care Providers & Services — 1.3%
Crown Newco 3 Plc, 7.00%, 2/15/18 (a)	GBP	1,750		2,712,271
HCA, Inc., 6.50%, 2/15/20	USD	1,055		1,128,850
Tenet Healthcare Corp., 6.25%, 11/01/18 (a)		495		514,800
				4,355,921
Hotels, Restaurants & Leisure — 0.3%
MGM Resorts International, 11.13%, 11/15/17		1,050		1,189,125
Household Durables — 0.4%
Beazer Homes USA, Inc., 12.00%, 10/15/17		1,135		1,232,184
Berkline/Benchcraft LLC, 4.50%, 11/03/12 (c)(g)		400		—
				1,232,184
Independent Power Producers & Energy Traders — 1.1%
Calpine Corp., 7.25%, 10/15/17 (a)		125		133,437
Energy Future Holdings Corp., 10.00%, 1/15/20		725		789,344
Energy Future Intermediate Holding Co. LLC,
10.00%, 12/01/20		2,525		2,786,969
				3,709,750

See Notes to Financial Statements.

Consolidated Schedule of Investments (continued)	BlackRock Floating Rate Income Trust (BGT)
	(Percentages shown are based on Net Assets)

Corporate Bonds		Par (000)		Value
Machinery — 1.1%
KION Finance SA, 5.01%, 4/15/18 (a)(b)	EUR	3,000		$	3,593,846
UR Financing Escrow Corp., 5.75%, 7/15/18 (a)	USD	210		216,825
				3,810,671
Media — 4.0%
Clear Channel Worldwide Holdings, Inc.:
9.25%, 12/15/17		501		546,716
Series B, 9.25%, 12/15/17		1,704		1,868,010
Kabel BW Erste Beteiligungs GmbH, 5.13%,
3/15/18 (a)(b)	EUR	2,000		2,667,256
Odeon & UCI Finco Plc, 9.00%, 8/01/18 (a)	GBP	914		1,453,664
Unitymedia Hessen GmbH & Co. KG (FKA UPC
Germany GmbH):
8.13%, 12/01/17	EUR	500		696,598
8.13%, 12/01/17 (a)	USD	2,500		2,681,250
Virgin Media Secured Finance Plc, 7.00%, 1/15/18	GBP	1,197		2,073,737
Ziggo Finance BV, 6.13%, 11/15/17 (a)	EUR	1,005		1,410,138
				13,397,369
Metals & Mining — 0.1%
New World Resources NV, 7.88%, 5/01/18		285		377,255
Oil, Gas & Consumable Fuels — 3.1%
Coffeyville Resources LLC, 9.00%, 4/01/15 (a)	USD	342		365,085
Everest Acquisition LLC/Everest Acquisition Finance, Inc.,
6.88%, 5/01/19 (a)		440		462,000
Gazprom OAO Via RBS AG, 9.63%, 3/01/13		3,230		3,432,133
KazmunaiGaz Finance Sub BV, 8.38%, 7/02/13		1,500		1,588,110
OGX Petroleo e Gas Participacoes SA,
8.50%, 6/01/18 (a)		1,600		1,660,000
Petroleos de Venezuela SA, 5.25%, 4/12/17		4,000		3,105,000
				10,612,328
Paper & Forest Products — 0.3%
Ainsworth Lumber Co. Ltd., 11.00%, 7/29/15 (a)(h)		545		441,635
Longview Fibre Paper & Packaging, Inc.,
8.00%, 6/01/16 (a)		420		424,200
				865,835
Pharmaceuticals — 0.1%
Valeant Pharmaceuticals International,
6.50%, 7/15/16 (a)		235		243,519
Real Estate Management & Development — 0.1%
Realogy Corp., 7.63%, 1/15/20 (a)		445		461,688
Specialty Retail — 0.2%
House of Fraser Funding Plc, 8.88%, 8/15/18 (a)	GBP	349		519,665
Transportation Infrastructure — 0.4%
Aguila 3 SA, 7.88%, 1/31/18 (a)	CHF	1,100		1,266,457
Wireless Telecommunication Services — 2.8%
Cricket Communications, Inc., 7.75%, 5/15/16	USD	1,950		2,052,375
iPCS, Inc., 2.67%, 5/01/13 (b)		1,155		1,120,350
Matterhorn Mobile SA, 6.34%, 5/15/19 (b)	EUR	3,000		4,030,667
Sprint Nextel Corp. (a):
9.00%, 11/15/18	USD	790		869,988
7.00%, 3/01/20		1,460		1,489,200
				9,562,580
Total Corporate Bonds — 21.4%				72,036,199
Floating Rate Loan Interests (b)
Aerospace & Defense — 1.7%
DynCorp International, Term Loan B, 6.25%, 7/07/16		491		490,205
SI Organization, Inc., New Term Loan B, 4.50%, 11/22/16		1,080		1,045,746
Spirit Aerosystems, Inc., Term Loan B, 1.00%, 4/18/19		1,085		1,086,628
Floating Rate Loan Interests (b)		Par (000)		Value
Aerospace & Defense (concluded)
TransDigm, Inc.:
Add-On Term Loan B2, 4.00%, 2/14/17	USD	454		$	454,089
Term Loan (First Lien), 4.00%, 2/14/17		1,975		1,974,388
Wesco Aircraft Hardware Corp., Term Loan B,
4.25%, 4/07/17		818		818,729
				5,869,785
Airlines — 0.5%
Delta Air Lines, Inc., Credit New Term Loan B,
5.50%, 4/20/17		1,640		1,641,269
Auto Components — 3.1%
Allison Transmission, Inc., Term Loan B, 2.74%, 8/07/14		2,800		2,790,842
Autoparts Holdings Ltd., First Lien Term Loan,
6.50%, 7/28/17		1,642		1,613,020
Federal-Mogul Corp.:
Term Loan B, 2.18%, 12/29/14		1,706		1,651,255
Term Loan C, 2.18%, 12/28/15		477		461,192
The Goodyear Tire & Rubber Co., Term Loan
(Second Lien), 1.00%, 4/30/19		1,785		1,759,332
GPX International Tire Corp. (c)(g):
14.00%, 3/30/12		4		0.00
12.25%, 3/31/12		274		0.00
Schaeffler AG, Term Loan C2, 6.00%, 1/27/17		1,200		1,203,852
UCI International, Inc., Term Loan, 5.50%, 7/26/17		938		941,061
				10,420,554
Beverages — 0.0%
Le-Nature’s, Inc, Tranche B Term Loan,
9.50%, 3/01/11 (c)(g)		1,000		100
Biotechnology — 0.5%
Grifols SA, Term Loan B, 4.50%, 6/01/17		1,864		1,863,854
Building Products — 2.7%
Armstrong World Industries, Inc., Term Loan B,
4.00%, 3/09/18		2,061		2,059,903
CPG International I, Inc., Term Loan B, 6.00%, 2/18/17		2,123		2,031,512
Goodman Global, Inc., Initial Term Loan (First Lien),
5.75%, 10/28/16		3,714		3,729,466
Momentive Performance Materials, Inc. (Blitz 06-103
GmbH), Tranche B-2B Term Loan, 3.90%, 5/05/15	EUR	810		1,022,207
United Subcontractors, Inc., Term Loan (First Lien),
4.58%, 6/30/15	USD	196		176,139
				9,019,227
Capital Markets — 1.5%
American Capital Ltd., Term Loan B, 7.50%, 12/31/13		168		165,994
HarbourVest Partners LLC, Term Loan (First Lien),
6.25%, 12/16/16		1,998		2,000,905
Nuveen Investments, Inc.:
(First Lien) Term Loan, 5.74% – 5.97%, 5/12/17		1,773		1,772,939
(First Lien) Extended Term Loan, 5.97%, 5/13/17		750		750,332
Incremental Term Loan, 7.25%, 5/13/17		425		427,019
				5,117,189
Chemicals — 6.6%
American Rock Salt Holdings LLC, Term Loan B,
5.50%, 4/25/17		1,609		1,551,442
Chemtura Corp., Exit Term Loan B, 5.50%, 8/27/16		1,800		1,809,900
Gentek, Inc., Term Loan B, 5.00%, 10/06/15		1,302		1,304,381
Ineos US Finance LLC:
3 Year Term Loan, 5.50%, 4/27/15		235		235,588
5 Year Term Loan, 6.50%, 4/27/18		6,660		6,684,975
MDI Holdings LLC, Tranche C Term Loan,
2.60%, 4/11/14	EUR	1,358		1,776,524
Nexeo Solutions LLC, Term Loan B, 5.00%, 9/08/17	USD	1,386		1,355,965
PolyOne Corp., Term Loan, 5.00%, 9/08/17		484		484,997
PQ Corp. (FKA Niagara Acquisition, Inc.), Original Term
Loan (First Lien), 3.99%, 7/30/14		2,302		2,244,290
Styron Sarl LLC, Term Loan B, 6.00%, 8/02/17		614		572,185

See Notes to Financial Statements.

Consolidated Schedule of Investments (continued)	BlackRock Floating Rate Income Trust (BGT)
	(Percentages shown are based on Net Assets)

Floating Rate Loan Interests (b)		Par (000)		Value
Chemicals (concluded)
Tronox Worldwide LLC, Term Loan B, 4.25%, 2/08/18	USD	1,705		$	1,707,370
Univar, Inc., Term Loan B, 5.00%, 6/30/17		2,351		2,354,077
				22,081,694
Commercial Services & Supplies — 3.7%
ACCO Brands Corp., Term Loan B, 1.00%, 3/08/19		2,185		2,192,276
Altegrity, Inc. (FKA US Investigations Services, Inc.),
Tranche D Term Loan, 7.75%, 2/20/15		1,825		1,827,076
AWAS Finance Luxembourg Sarl, Term Loan B,
5.25%, 6/10/16		1,455		1,464,943
Delos Aircraft, Inc., Term Loan 2, 4.75%, 4/12/16		2,175		2,181,808
KAR Auction Services, Inc., Term Loan B,
5.00%, 5/19/17		2,184		2,193,064
Synagro Technologies, Inc., Term Loan B,
2.24% – 2.25%, 4/02/14		1,728		1,556,238
Volume Services America, Inc. (FKA Centerplate),
Term Loan B, 10.50% – 11.75%, 9/16/16		1,207		1,209,267
				12,624,672
Communications Equipment — 2.9%
Avaya, Inc.:
Term Loan B1, 3.24%, 10/24/14		1,073		1,053,337
Term Loan B3, 4.99%, 10/26/17		404		390,977
CommScope, Inc., Term Loan B, 4.25%, 1/14/18		1,755		1,754,754
Telesat Canada, Term Loan A, 4.25%, 3/24/17	CAD	6,670		6,532,596
				9,731,664
Construction & Engineering — 0.8%
BakerCorp. International, Inc., Term Loan B,
4.75%, 6/01/18	USD	680		679,863
Safway Services LLC, First Out Tranche Loan,
9.00%, 12/16/17		2,100		2,100,000
				2,779,863
Construction Materials — 1.4%
HD Supply, Inc., Senior Debt B, 7.25%, 10/12/17		4,745		4,757,622
Consumer Finance — 1.4%
Springleaf Finance Corp. (FKA AGFS Funding Co.),
Term Loan, 5.50%, 5/10/17		5,160		4,888,016
Containers & Packaging — 0.8%
Sealed Air Corp., Term Loan B, 4.75%, 10/03/18		1,606		1,622,082
Smurfit Kappa Acquisitions:
Term Loan B4, 4.03% – 4.63%, 6/30/16	EUR	456		603,628
Term Loan C4, 4.22% – 4.74%, 3/31/17		450		599,789
				2,825,499
Diversified Consumer Services — 4.2%
Coinmach Service Corp.:
Delayed Draw Term Loan, 3.24%, 11/20/14	USD	485		449,400
Term Loan, 3.24%, 11/20/14		2,218		2,055,131
Education Management LLC, Term Loan C3,
8.25%, 3/29/18		825		823,193
Laureate Education, Inc., Series A, Extended Term Loan,
5.25%, 8/15/18		4,638		4,576,243
Protection One Alarm Monitoring, Inc., Term Loan,
5.75%, 3/16/19		1,360		1,360,571
ServiceMaster Co.:
Delayed Draw Term Loan, 2.74%, 7/24/14		252		248,719
Term Loan, 2.75% – 2.99%, 7/24/14		2,527		2,497,662
Weight Watchers International, Inc., Term Loan F,
4.00%, 3/12/19		2,315		2,313,820
				14,324,739
Diversified Financial Services — 1.9%
Reynolds Group Holdings, Inc., Term Loan B,
6.75%, 2/09/18	EUR	4,897		6,453,317

Floating Rate Loan Interests (b)		Par (000)		Value
Diversified Telecommunication Services — 4.3%
Hawaiian Telcom Communications, Inc., Term Loan B,
7.00%, 2/28/17	USD	1,470		$	1,465,708
Integra Telecom Holdings, Inc., Term Loan,
9.25%, 4/15/15		1,990		1,906,260
Level 3 Financing, Inc.:
Term Loan B2, 5.75%, 9/03/18		4,600		4,662,100
Term Loan B3, 5.75%, 8/31/18		2,025		2,052,337
Tranche A Term Loan, 2.49% – 2.72%, 3/13/14		2,550		2,530,875
US Telepacific Corp., Term Loan B, 5.75%, 2/23/17		1,908		1,823,317
				14,440,597
Electronic Equipment, Instruments & Components — 1.1%
CDW LLC (FKA CDW Corp.), Extended Term Loan,
4.00%, 7/14/17		2,224		2,183,264
Sensata Technologies Finance Co. LLC, Term Loan,
4.00%, 5/11/18		1,665		1,663,492
				3,846,756
Energy Equipment & Services — 3.4%
CCS Corp.:
Incremental Term Loan, 6.50%, 10/17/14		928		930,959
Term Loan B, 3.24%, 11/14/14		1,796		1,752,735
Dynegy Midwest Generation LLC, Coal Co. Term Loan,
9.25%, 8/04/16		1,139		1,163,485
Dynegy Power LLC, Gas Co. Term Loan, 9.25%, 8/04/16		1,448		1,513,785
MEG Energy Corp., Term Loan B, 4.00%, 3/16/18		6,070		6,073,627
				11,434,591
Food & Staples Retailing — 2.9%
AB Acquisitions UK Topco 2 Ltd., Facility B1,
3.57%, 7/09/15	GBP	4,525		6,771,700
Iceland Foods Group Ltd., Term Loan B1,
6.52%, 4/13/19		1,000		1,614,331
US Foodservice, Inc., Term Loan B, 2.74%, 7/03/14	USD	1,498		1,472,484
				9,858,515
Food Products — 3.9%
Advance Pierre Foods, Inc.:
Term Loan (First Lien), 7.00%, 9/30/16		1,633		1,639,347
Term Loan (Second Lien), 11.25%, 9/29/17		1,530		1,540,205
Birds Eye Iglo Group Ltd. (Liberator Midco Ltd.),
Term Loan B, 5.62%, 4/30/16	EUR	3,000		3,971,101
Del Monte Corp., Term Loan, 4.50%, 3/08/18	USD	2,596		2,578,046
Michaels Foods Group, Inc., Term Loan B,
4.25%, 2/23/18		312		311,920
Pinnacle Foods Finance LLC:
Term Loan E, 4.75%, 10/17/18		1,384		1,383,088
Solvest Ltd. (Dole):
Tranche B-2 Term Loan, 5.00% – 6.00%, 7/06/18		580		582,292
Tranche C-2 Term Loan, 5.00% – 6.00%, 7/06/18		1,038		1,041,997
				13,047,996
Health Care Equipment & Supplies — 1.9%
Biomet, Inc., Term Loan B, 3.24% – 3.47%, 3/25/15		481		479,238
DJO Finance LLC:
Extended Term Loan B2, 5.24%, 11/01/16		414		413,015
Term Loan B3, 6.25%, 9/15/17		2,785		2,789,345
Hupah Finance Inc., Term Loan B, 6.25%, 1/21/19		960		968,400
Immucor, Inc., Term Loan B, 7.25%, 8/17/18		1,751		1,767,626
				6,417,624
Health Care Providers & Services — 3.4%
CHS/Community Health Systems, Inc., Non-Extended
Delayed Draw Term Loan, 2.49% – 2.74%, 7/25/14		1,126		1,115,583
ConvaTec, Inc., Term Loan, 5.75%, 12/22/16		1,186		1,189,753
DaVita, Inc., Term Loan B, 4.50%, 10/20/16		2,200		2,207,031
Emergency Medical Services, Term Loan,
5.25%, 5/25/18		1,710		1,714,525

See Notes to Financial Statements.

Consolidated Schedule of Investments (continued)	BlackRock Floating Rate Income Trust (BGT)
	(Percentages shown are based on Net Assets)

Floating Rate Loan Interests (b)		Par (000)		Value
Health Care Providers & Services (concluded)
Harden Healthcare LLC:
Term Loan A, 8.50%, 3/02/15	USD	796		$	779,845
Tranche A Additional Term Loan, 7.75%, 3/02/15		1,319		1,292,619
inVentiv Health, Inc.:
Incremental Term Loan B-3, 6.75%, 5/15/18		449		425,221
Term Loan B, 6.50%, 8/04/16		1,451		1,368,008
Medpace, Inc., Term Loan, 6.50% – 7.25%, 6/16/17		1,489		1,444,087
				11,536,672
Health Care Technology — 1.3%
IMS Health, Inc., Term Loan B, 4.50%, 8/25/17		1,489		1,492,645
Kinetic Concepts, Inc., Term Loan B, 7.00%, 5/04/18		1,751		1,785,625
MedAssets, Inc., Term Loan, 5.25%, 11/16/16		970		974,575
				4,252,845
Hotels, Restaurants & Leisure — 6.1%
Alpha D2 Ltd., Term Loan B, 5.75%, 4/19/17		390		392,340
Ameristar Casinos, Inc., Term Loan B, 4.00%, 4/13/18		1,543		1,548,327
Boyd Gaming Corp., Incremental Term Loan,
6.00%, 12/17/15		1,047		1,056,098
Caesars Entertainment Operating Co., Inc.:
Incremental Term Loan B4, 9.50%, 10/31/16		1,378		1,413,986
Term Loan B1, 3.24%, 1/28/15		738		700,650
Term Loan B3, 3.24%, 1/28/15		4,862		4,614,818
DineEquity, Inc., Term Loan B, 4.25%, 10/19/17		75		75,122
Dunkin’ Brands, Inc., Term Loan B, 4.00%, 11/23/17		2,090		2,092,469
OSI Restaurant Partners LLC:
Revolver, 2.54% – 2.72%, 6/14/13		38		37,569
Term Loan B, 2.56%, 6/14/14		59		58,276
SeaWorld Parks & Entertainment, Inc., Term Loan B,
4.00%, 8/17/17		1,174		1,174,444
Six Flags Theme Parks, Inc., Tranche B Term Loan
(First Lien), 4.25%, 12/20/18		1,885		1,887,620
Station Casinos, Inc., Term Loan B1, 3.24%, 6/17/16		1,191		1,109,256
Twin River Worldwide Holdings, Inc., Term Loan,
8.50%, 11/05/15		1,254		1,257,935
Wendy’s / Arby’s Restaurants LLC, Term Loan B,
4.75%, 5/03/19		3,180		3,195,900
				20,614,810
Household Durables — 0.0%
Berkline/Benchcraft LLC, Term Loan B,
14.00%, 11/03/13 (c)(g)		159		40,490
Household Products — 0.5%
Prestige Brands, Inc., Term Loan,
5.25% – 6.25%, 1/31/19		1,650		1,659,490
Independent Power Producers & Energy Traders — 0.6%
AES Corp., Term Loan, 4.25%, 6/01/18		1,931		1,932,102
Industrial Conglomerates — 1.7%
Schrader International, Term Loan B, 5.75%, 4/20/18		620		612,250
Sequa Corp.:
Incremental Term Loan, 6.25%, 12/03/14		673		675,205
Term Loan, 3.72% – 3.78%, 12/03/14		4,362		4,316,262
				5,603,717
Insurance — 0.7%
Asurion LLC, Term Loan (First Lien), 5.50%, 5/24/18		801		801,462
CNO Financial Group, Inc., Term Loan B, 6.25%, 9/30/16		1,557		1,562,746
				2,364,208
Internet Software & Services — 0.4%
Web.com Group, Inc., Term Loan B, 7.00%, 10/27/17		1,206		1,205,291
IT Services — 4.4%
Ceridian Corp., Term Loan, 3.24%, 11/10/14		1,805		1,725,725
First Data Corp.:
Extended Term Loan B, 4.24%, 3/23/18		7,440		6,780,695
Term Loan B-1, 2.99%, 9/24/14		1,161		1,110,181
Term Loan B-3, 2.99%, 9/24/14		281		268,532

Floating Rate Loan Interests (b)		Par (000)		Value
IT Services (concluded)
Infogroup Inc., Term Loan, 5.75%, 5/25/18	USD	442		$	400,050
iPayment, Inc., Term Loan B, 5.75%, 5/08/17		332		333,599
NeuStar, Inc., Term Loan B, 5.00%, 11/08/18		1,095		1,102,249
SunGard Data Systems, Inc. (Solar Capital Corp.),
Tranche B Term Loan, 3.86% – 4.15%, 2/26/16		271		271,656
TransUnion LLC, Term Loan B, 4.75%, 2/12/18		2,831		2,857,649
				14,850,336
Leisure Equipment & Products — 0.5%
Eastman Kodak Co., DIP Term Loan B, 8.50%, 7/20/13		560		569,128
Freedom Group, Inc., Term Loan, 5.50%, 4/12/19		1,080		1,088,100
				1,657,228
Machinery — 1.5%
Rexnord Corp., Term Loan B, 5.00%, 4/02/18		823		828,492
Terex Corp.:
Term Loan, 6.00%, 4/28/17	EUR	353		465,226
Term Loan B, 5.50%, 4/28/17	USD	1,593		1,603,101
Tomkins LLC, Term Loan B, 4.25%, 9/23/16		1,999		2,004,908
				4,901,727
Media — 19.8%
Acosta, Inc., Term Loan, 4.75%, 3/01/18		627		626,416
Affinion Group, Inc., Term Loan B, 5.00%, 10/10/16		1,479		1,404,309
AMC Entertainment, Inc., Term Loan B3, 4.25%, 2/22/18		848		845,230
AMC Networks, Inc., Term Loan B, 4.00%, 12/31/18		1,787		1,780,551
Atlantic Broadband Finance LLC, Term Loan (First Lien),
5.25%, 4/03/19		970		973,638
Bresnan Telecommunications Co. LLC, Term Loan,
4.50%, 12/14/17		1,550		1,551,200
Capsugel Healthcare Ltd., Term Loan, 5.25%, 8/01/18		1,286		1,298,477
Catalina Marketing Corp., Extended Term Loan B,
5.74%, 12/13/17		1,440		1,420,123
Cengage Learning Acquisitions, Inc. (FKA Thomson
Learning):
Term Loan, 2.49%, 7/03/14		623		569,141
Tranche 1 Incremental Term Loan, 7.50%, 7/03/14		1,115		1,071,065
Cequel Communications LLC, Term Loan B,
4.00%, 2/11/19		1,345		1,330,608
Charter Communications Operating LLC:
Term Loan C, 3.72%, 9/06/16		485		484,671
Term Loan D, 4.00%, 4/26/19		189		188,074
Clarke American Corp., Term Facility B,
2.74% – 2.97%, 6/30/14		320		306,816
Clear Channel Communications, Inc.:
Term Loan B, 3.89%, 1/28/16		2,850		2,296,724
Term Loan C, 3.89%, 1/28/16		413		322,773
Cumulus Media, Inc., Term Loan, 5.75%, 9/17/18		1,495		1,506,149
EMI Music Publishing Ltd., Term Loan B,
6.00%, 11/14/17		1,215		1,221,840
Gray Television, Inc., Term Loan B, 3.74%, 12/31/14		1,471		1,460,703
HMH Publishing Co. Ltd., Tranche A Term Loan,
6.49%, 6/12/14		1,854		1,109,045
Hubbard Broadcasting, Inc., Term Loan B (Second Lien),
5.25%, 4/28/17		1,022		1,026,673
Intelsat Jackson Holdings SA (FKA Intelsat Jackson
Holdings, Ltd.), Tranche B Term Loan, 5.25%, 4/02/18	10,148			10,195,092
Interactive Data Corp., Term Loan B, 4.50%, 2/12/18		3,589		3,590,437
Kabel Deutschland GmbH:
Term Loan A1, 3.90%, 3/31/14	EUR	3,043		4,014,069
Term Loan D, 4.40%, 12/13/16		1,000		1,325,501
Term Loan E, 3.65%, 6/15/18		4,000		5,276,958
Term Loan F, 4.25%, 2/01/19	USD	1,695		1,692,881
Knology, Inc., Term Loan B, 4.00%, 8/18/17		412		411,874
Lavena Holding 4 GmbH (Prosiebensat.1 Media AG):
Term Loan B, 3.68%, 3/06/15	EUR	304		345,010
Term Loan C, 4.06%, 3/04/16		608		694,042

See Notes to Financial Statements.

Consolidated Schedule of Investments (continued)	BlackRock Floating Rate Income Trust (BGT)
	(Percentages shown are based on Net Assets)

Floating Rate Loan Interests (b)		Par (000)		Value
Media (concluded)
Liberty Cablevision of Puerto Rico Ltd., Term Loan B,
2.47%, 6/13/14	USD	1,429		$	1,405,533
LIN Television Corp., Term Loan B, 5.00%, 12/21/18		868		870,715
Newsday LLC, Fixed Rate Term Loan:
6.72%, 8/01/13		1,250		1,255,212
10.50%, 8/01/13		1,500		1,538,445
Nielsen Finance LLC, Class B Dollar Term Loan,
3.99%, 5/02/16		1,706		1,713,317
Serpering Investments BV (Casema NV), Term Loan B,
3.40%, 3/31/17	EUR	619		817,086
Sinclair Television Group, Inc., Tranche B Term Loan,
4.00%, 10/28/16	USD	1,408		1,408,311
Univision Communications, Inc., Extended First Lien
Term Loan, 4.49%, 3/31/17		2,467		2,303,636
UPC Broadband Holding BV, Term Loan U,
4.42%, 12/29/17	EUR	775		1,006,216
UPC Financing Partnership:
Term Loan, 4.75%, 12/29/17	USD	680		681,489
Term Loan T, 3.74%, 12/30/16		195		194,025
WC Luxco Sarl, Term Loan B3, 4.25%, 3/15/18		529		529,519
Weather Channel, Term Loan B, 4.25%, 2/13/17		2,556		2,562,018
				66,625,612
Metals & Mining — 2.4%
Novelis, Inc.:
Incremental Term Loan B2, 4.00%, 3/10/17		392		391,692
Term Loan, 4.00%, 3/10/17		3,288		3,285,493
SunCoke Energy, Inc., Term Loan B, 4.00%, 7/26/18		844		843,626
Walter Energy, Inc., Term Loan B, 4.00%, 4/02/18		3,416		3,410,114
				7,930,925
Multiline Retail — 2.0%
99 Cents Only Stores, Term Loan B,
6.25% – 7.00%, 1/11/19		1,312		1,311,712
HEMA Holding BV:
Second Lien Term Loan, 5.77%, 1/05/17	EUR	3,800		4,258,802
Term Loan B, 2.42%, 7/06/16		169		211,783
Term Loan C, 3.17%, 7/05/15		169		210,663
The Neiman Marcus Group, Inc., Term Loan,
4.75%, 5/16/18	USD	750		750,157
				6,743,117
Oil, Gas & Consumable Fuels — 1.9%
EP Energy Corp., Term Loan B, 6.50%, 4/10/18		935		944,546
EquiPower Resources Holdings LLC, Term Loan B,
5.75%, 1/26/18		1,903		1,776,333
Gibson Energy, Inc., Term Loan B, 5.75%, 6/15/18		2,184		2,189,876
Obsidian Natural Gas Trust, Term Loan, 7.00%, 11/02/15		1,460		1,470,554
				6,381,309
Paper & Forest Products — 0.2%
NewPage Corp., DIP Term Loan, 8.00%, 3/07/13		550		554,356
Verso Paper Finance Holdings LLC, Term Loan with
PIK option, 6.79% – 7.54%, 2/01/13 (h)		426		213,049
				767,405
Pharmaceuticals — 3.8%
Aptalis Pharma, Inc., Term Loan B, 5.50%, 2/10/17		2,666		2,636,255
Endo Pharmaceuticals Holdings, Inc., Term Loan B,
4.00%, 6/18/18		433		433,954
Pharmaceutical Product Development, Inc., Term Loan B,
6.25%, 12/05/18		3,012		3,041,309
Quintiles Transnational Corp., Term Loan B,
5.00%, 6/08/18		1,310		1,310,506
RPI Finance Trust, Term Loan Tranche 2, 4.00%, 5/09/18		1,090		1,093,408
Taminco Global Chemical Corp., New Term Loan,
6.25%, 2/15/19		675		679,955
Floating Rate Loan Interests (b)		Par (000)		Value
Pharmaceuticals (concluded)
Valeant Pharmaceuticals International, Add-On
Term Loan B, 3.75%, 2/08/19	USD	2,355		$	2,343,225
Warner Chilcott Corp.:
Term Loan B-1, 4.25%, 3/15/18		769		770,210
Term Loan B-2, 4.25%, 3/15/18		385		385,105
				12,693,927
Professional Services — 0.5%
Emdeon, Inc., Term Loan B, 6.75%, 11/02/18		1,680		1,694,591
Real Estate Investment Trusts (REITs) — 0.8%
iStar Financial, Inc.:
Term Loan A1, 5.00%, 6/28/13		2,783		2,778,434
Term Loan A2, 7.00%, 6/30/14		95		95,000
				2,873,434
Real Estate Management & Development — 1.4%
Realogy Corp.:
Extended Synthetic Letter of Credit, 3.24%, 10/10/13		68		64,712
Extended Synthetic Letter of Credit, 4.49%, 10/10/16		306		284,881
Extended Term Loan, 4.49%, 10/10/16		4,582		4,259,588
				4,609,181
Road & Rail — 1.4%
Avis Budget Car Rental LLC, Incremental Term Loan,
6.25%, 9/21/18		638		642,800
RAC Ltd., Term Loan B, 5.38% – 5.78%, 7/30/18	GBP	1,356		2,168,374
RailAmerica, Inc., Term Loan B, 4.00%, 3/01/19	USD	1,180		1,180,366
Road Infrastructure Investment LLC, Term Loan B,
5.47%, 3/30/18		625		623,831
				4,615,371
Semiconductors & Semiconductor Equipment — 0.6%
Freescale Semiconductor, Inc., Extended Term Loan B,
4.49%, 12/01/16		796		779,627
NXP BV, Term Loan A-2, 5.50%, 3/03/17		1,130		1,130,023
				1,909,650
Software — 2.1%
Bankruptcy Management Solutions, Inc.:
Term Loan (First Lien), 7.50%, 8/20/14		719		269,798
Term Loan (Second Lien), 8.30%, 8/20/15		268		7,361
Blackboard, Inc., Term Loan B, 7.50%, 10/04/18		449		445,284
Lawson Software, Term Loan B, 6.25%, 4/05/18		4,750		4,809,375
Sophia LP, Term Loan B, 6.25%, 7/19/18		1,100		1,116,500
Vertafore, Inc., Term Loan B, 5.25%, 7/29/16		339		339,876
				6,988,194
Specialty Retail — 4.5%
Academy Ltd., Term Loan, 6.00%, 8/03/18		1,895		1,912,345
Bass Pro Group LLC, Term Loan, 5.25%, 6/13/17		1,491		1,492,781
Burlington Coat Factory Warehouse Corp., Term Loan B,
6.25%, 2/23/17		1,022		1,021,520
Claire’s Stores, Inc., Term Loan B,
2.99% – 3.30%, 5/29/14		440		419,105
General Nutrition Centers, Inc., Term Loan B,
4.25%, 3/02/18		1,990		1,994,259
The Gymboree Corp., Term Loan, 5.00%, 2/23/18		243		233,569
Jo-Ann Stores, Inc., Term Loan B, 4.75%, 3/16/18		591		589,768
Michaels Stores, Inc.:
Extended Term Loan B3, 5.00%, 7/29/16		820		824,050
Term Loan B2, 5.00%, 7/29/16		780		784,095
Petco Animal Supplies, Inc., Term Loan B,
4.50%, 11/24/17		2,008		2,008,657
Toys ‘R’ Us Delaware, Inc.:
Incremental Term Loan B2, 5.25%, 5/25/18		496		485,496
Term Loan, 6.00%, 5/25/18		510		497,887
Term Loan B1, 6.00%, 9/01/16		1,065		1,063,927
The Yankee Candle Co., Term Loan B, 5.25%, 4/02/19		1,665		1,675,107
				15,002,566

See Notes to Financial Statements.

Consolidated Schedule of Investments (continued)	BlackRock Floating Rate Income Trust (BGT)
	(Percentages shown are based on Net Assets)

Floating Rate Loan Interests (b)		Par (000)		Value
Textiles, Apparel & Luxury Goods — 0.9%
Ascend Performance Materials LLC, 6.75%, 4/10/18	USD	2,430		$	2,398,604
Phillips-Van Heusen Corp., Term Loan B,
3.75%, 5/06/16	EUR	544		716,400
				3,115,004
Wireless Telecommunication Services — 1.9%
Crown Castle International Corp., Term Loan B,
4.00%, 1/31/19	USD	1,679		1,678,710
MetroPCS Wireless, Inc., Term Loan B-3,
4.00%, 3/16/18		1,057		1,045,771
Vodafone Americas Finance 2, Inc. (h):
Term Loan, 6.88%, 8/11/15		2,647		2,686,857
Term Loan B, 6.25%, 7/11/16		825		833,250
				6,244,588
Total Floating Rate Loan Interests — 116.5%				392,258,933
Foreign Agency Obligations
Argentina Bonos:
0.79%, 8/03/12 (b)		1,250		1,221,000
7.00%, 10/03/15		2,000		1,785,834
Colombia Government International Bond,
4.02%, 3/17/13 (b)		240		243,600
Uruguay Government International Bond,
6.88%, 1/19/16	EUR	950		1,441,741
Total Foreign Agency Obligations — 1.4%				4,692,175
Other Interests (i)		Beneficial Interest (000)
Auto Components — 0.0%
Lear Corp. Escrow (c)	USD	500		3,750
Diversified Financial Services — 0.3%
JG Wentworth LLC Preferred Equity Interests (c)		1		1,176,896
Hotels, Restaurants & Leisure — 0.0%
Wembley Contigent (c)		2		7,500
Household Durables — 0.0%
Berkline Benchcraft Equity LLC (c)		2		—
Total Other Interests — 0.3%				1,188,146
Warrants (j)		Shares
Chemicals — 0.0%
British Vita Holdings Co. (Non-Expiring)		166		—
Media — 0.0%
New Vision Holdings LLC:
(Expires 9/30/14)		3		—
(Expires 9/30/14)		19		1
				1
Software — 0.0%
Bankruptcy Management Solutions, Inc. (Expires 9/29/17)		251		—
HMH Holdings/EduMedia (Expires 3/09/17)		21,894		—
				—
Total Warrants — 0.0%				1
Total Long-Term Investments
(Cost — $490,017,626) — 144.2%				485,659,463

Options Purchased	Contracts		Value
Over-the-Counter Call Options — 0.0%
Marsico Parent Superholdco LLC, Strike Price USD 942.86,
Expires 12/21/19, Broker Goldman Sachs Bank USA	26		—
Total Options Purchased
(Cost — $25,422) — 0.0%			—
Total Investments — 144.2%			$	485,659,463
Liabilities in Excess of Other Assets — (44.2)%			(148,839,402		)
Net Assets — 100.0%			$	336,820,061

(a)

Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(b)

Variable rate security. Rate shown is as of report date.

(c)

Non-income producing security.

(d)

Restricted security as to resale. As of report date the Fund held 0.8% of its net assets, with a current value of $2,665,086 in this security.

(e)

Convertible security.

(f)

Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.

(g)

Issuer filed for bankruptcy and/or is in default of interest payments.

(h)

Represents a payment-in-kind security which may pay interest/dividends in additional par/shares.

(i)

Other interests represent beneficial interests in liquidation trusts and other reorganization or private entities.

(j)

Warrants entitle the Fund to purchase a predetermined number of shares of common stock and are non-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date, if any.

•

Investments in companies considered to be an affiliate of the Fund during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate	Shares Held at October 31, 2011	Net Activity	Shares Held at April 30, 2012	Income
BlackRock Liquidity
Funds, TempFund,
Institutional Class	1,071,567	(1,071,567)	—	$825

•

For Fund compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by Fund management. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.

•

Foreign currency exchange contracts as of April 30, 2012 were as follows:

Currency Purchased		Currency Sold		Counterparty	Settlement Date	Unrealized Appreciation (Depreciation)
USD	321,627	CAD	316,000	Citibank NA	7/18/12	$	2,291
USD	6,068,072	CAD	5,975,000	UBS AG	7/18/12	30,016
USD	1,149,852	CHF	1,055,000	JPMorgan Chase
				Securities, Inc.	7/18/12	(13,693		)
USD	15,401,243	GBP	9,647,000	UBS AG	7/18/12	(247,493		)
USD	52,981,500	EUR	40,137,500	Citibank NA	7/25/12	(172,940		)
Total						$	(401,819	)

See Notes to Financial Statements.

Consolidated Schedule of Investments (concluded)

BlackRock Floating Rate Income Trust (BGT)

•

Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:

•

Level 1 —unadjusted price quotations in active markets/exchanges for identical assets and liabilities

•

Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

•

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments and derivative financial instruments)

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following tables summarize the inputs used as of April 30, 2012 in determining the fair valuation of the Fund’s investments and derivative financial instruments:

Valuation Inputs		Level 1				Level 2				Level 3				Total
Assets:
Investments:
Long-Term
Investments:
Asset-Backed Securities			—			$	3,574,917			$	8,108,357			$	11,683,274
Common Stocks		$	149,238				3,297,944				353,553				3,800,735
Corporate Bonds			—				72,036,199				—				72,036,199
Floating Rate
Loan Interests			—				366,084,386				26,174,547				392,258,933
Foreign Agency
Obligations			—				1,685,341				3,006,834				4,692,175
Other Interests			—				—				1,188,146				1,188,146
Warrants			—				—				1				1
Unfunded Loan
Commitments			—				646				—				646
Total		$	149,238			$	446,679,433			$	38,831,438			$	485,660,109
Valuation Inputs			Level 1				Level 2				Level 3				Total
Derivative Financial Instruments1
Assets:
Foreign currency
exchange contracts			—			$	32,307				—			$	32,307
Liabilities:
Foreign currency
exchange contracts			—				(434,126	)			—				(434,126	)
Total			—			$	(401,819	)			—			$	(401,819	)

1

Derivative financial instruments are swaps, financial futures contracts, foreign currency exchange contracts and options. Swaps, financial futures contracts and foreign currency exchange contracts are valued at the unrealized appreciation/ depreciation on the instrument and options are shown at value.

The following table is a reconciliation of Level 3 investments for which significant unobservable inputs were used in determining fair value:

		Asset-Backed Securities				Common Stocks				Floating Rate Loan Interests				Foreign Agency Obligations				Other Interests				Warrants				Total
Assets:
Balance, as of October 31, 2011		$	6,561,220			$	234,634			$	32,466,825			$	2,961,954			$	1,281,000			$	227			$	43,505,860
Accrued discounts/ premiums			57,074				—				73,173				77,415				—				—				207,662
Net realized gain (loss)			(35,410	)			—				(781,119	)			—				182				—				(816,347	)
Net change in unrealized appreciation/ depreciation2			553,892				(221,641	)			584,266				(32,535	)			(92,854	)			(226	)			790,902
Purchases			2,717,831				—				2,121,822				—				—				—				4,839,653
Sales			(1,746,250	)			—				(5,739,826	)			—				(182	)			—				(7,486,258	)
Transfers in3			—				340,560				8,720,586				—				—				—				9,061,146
Transfers out3			—				—				(11,271,180	)			—				—				—				(11,271,180	)
Balance, as of April 30, 2012		$	8,108,357			$	353,553			$	26,174,547			$	3,006,834			$	1,188,146			$	1			$	38,831,438

2

Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations. The change in unrealized appreciation/depreciation on investments still held at April 30, 2012 was $(266,753).

3

The Fund’s policy is to recognize transfers in and transfers out as of the beginning of the period of the event or the change in circumstances that caused the transfer.

A reconciliation of Level 3 investments and derivative financial instruments is presented when the Fund had a significant amount of Level 3 investments and derivative financial instruments at the beginning and/or end of the period in relation to net assets.

See Notes to Financial Statements.

Statements of Assets and Liabilities

April 30, 2012 (Unaudited)	BlackRock Credit Allocation Income Trust I, Inc. (PSW)			BlackRock Credit Allocation Income Trust II, Inc. (PSY)			BlackRock Credit Allocation Income Trust III (BPP)			BlackRock Credit Allocation Income Trust IV (BTZ)			BlackRock Floating Rate Income Trust (BGT)1
Assets
Investments at value — unaffiliated2	$	152,043,139		$	647,454,359		$	301,004,063		$	1,017,190,151		$		485,659,463
Investments at value — affiliated3		621,268			1,908,035			841,364			2,310,288				—
Cash		35,000			174,001			83,578			232,893				292,928
Cash pledged as collateral for financial futures contracts		282,000			940,000			351,000			1,163,940				—
Interest receivable		2,275,203			9,511,089			4,260,680			14,835,086				2,891,359
Investments sold receivable		101,623			425,940			207,860			705,054				10,839,624
Foreign currency at value4		126,272			126,089			475			45				7,003,431
Cash pledged as collateral for swaps		100,000			830,000			891,000			5,590,000				—
Swaps premiums paid		36,894			156,478			196,650			181,551				—
Unrealized appreciation on foreign currency exchange contracts		—			—			—			—				32,307
Unrealized appreciation on swaps		35,723			156,672			88,510			257,441				—
Unrealized appreciation on unfunded loan commitments		—			—			—			—				646
Swaps receivable		10,226			43,850			20,372			88,109				—
Dividends receivable		8,925			38,325			20,475			63,700				—
Prepaid expenses		8,959			24,083			29,952			47,525				44,781
Total assets		155,685,232			661,788,921			307,995,979			1,042,665,783				506,764,539
Liabilities
Reverse repurchase agreements		42,901,352			179,538,212			73,924,855			282,005,383				—
Loan payable		—			—			—			—				135,000,000
Investments purchased payable		304,826			1,297,882			630,765			2,156,391				33,660,194
Options written at value5		48,027			194,294			1,106,321			3,766,493				—
Unrealized depreciation on swaps		361,742			1,546,453			567,441			2,138,666				—
Swaps premiums received		180,868			785,107			402,562			1,240,593				—
Swaps payable		101,555			448,473			219,982			1,121,746				—
Investment advisory fees payable		75,851			320,961			162,212			549,235				253,182
Cash held as collateral for reverse repurchase agreements		—			772,000			—			628,057				—
Officer’s and Directors’ fees payable		3,423			120,293			61,387			180,953				130,790
Unrealized depreciation on foreign currency exchange contracts		1,070			2,375			—			—				434,126
Income dividends payable		27,097			104,943			31,877			229,294				—
Interest expense payable		10,355			66,119			27,432			92,355				170,389
Variation margin payable		16,024			62,370			22,978			82,301				—
Deferred income		—			—			—			—				8,037
Other accrued expenses payable		17,370			2,405			115,743			158,816				287,760
Total liabilities		44,049,560			185,261,887			77,273,555			294,350,283				169,944,478
Net Assets	$	111,635,672		$	476,527,034		$	230,722,424		$	748,315,500		$		336,820,061
Net Assets Consist of
Paid-in capital6,7,8	$	235,477,660		$	937,350,272		$	422,218,171		$	1,123,084,063		$		428,717,100
Undistributed net investment income		503,915			3,182,458			905,399			1,356,154				1,844,623
Accumulated net realized loss		(132,342,917	)		(493,636,691	)		(201,589,952	)		(406,266,387	)			(88,803,323	)
Net unrealized appreciation/depreciation		7,997,014			29,630,995			9,188,806			30,141,670				(4,938,339	)
Net Assets	$	111,635,672		$	476,527,034		$	230,722,424		$	748,315,500		$		336,820,061
Net asset value	$	10.83		$	11.68		$	12.49		$	14.44		$		14.26
1 Consolidated Statement of Assets and Liabilities.
2 Investments at cost — unaffiliated	$	143,519,809		$	615,607,941		$	290,605,124		$	982,234,934		$		490,043,048
3 Investments at cost — affiliated	$	621,268		$	1,908,035		$	841,364		$	2,310,288				—
4 Foreign currency at cost	$	125,225		$	125,042		$	459		$	43		$		7,043,489
5 Premiums received	$	66,010		$	267,430		$	764,470		$	2,606,390				—
6 Common shares par value per share	$	0.100		$	0.100		$	0.001		$	0.001		$		0.001
7 Common shares outstanding		10,311,941			40,807,418			18,467,785			51,828,157				23,623,502
8 Common shares authorized		199,994,540			199,978,000			unlimited			unlimited				unlimited

See Notes to Financial Statements.

Statements of Operations

Six Months Ended April 30, 2012 (Unaudited)	BlackRock Credit Allocation Income Trust I, Inc. (PSW)			BlackRock Credit Allocation Income Trust II, Inc. (PSY)			BlackRock Credit Allocation Income Trust III (BPP)			BlackRock Credit Allocation Income Trust IV (BTZ)				BlackRock Floating Rate Income Trust (BGT)1
Investment Income
Interest	$	4,166,335		$	18,078,167		$	8,322,992		$		27,650,433		$	13,530,755
Dividends — unaffiliated		165,568			237,548			71,706				1,092,243			34,819
Income — affiliated		926			5,983			3,402				8,943			4,826
Facility and other fees		—			—			—				—			14,869
Total income		4,332,829			18,321,698			8,398,100				28,751,619			13,585,269
Expenses
Investment advisory		464,762			1,958,737			983,125				3,319,108			1,639,638
Professional		35,930			65,858			39,180				90,610			67,546
Accounting Services		23,002			49,782			32,876				61,804			28,212
Custodian		11,066			28,404			15,594				34,162			78,302
Borrowing costs2		—			—			—				—			174,754
Printing		7,568			22,002			28,480				70,336			21,734
Officer and Directors		7,084			19,222			10,486				24,740			12,468
Transfer agent		13,578			19,176			6,168				5,936			6,180
Registration		4,724			7,090			4,696				8,996			4,728
Miscellaneous		14,340			34,511			17,874				37,762			34,100
Total expenses excluding interest expense		582,054			2,204,782			1,138,479				3,653,454			2,067,662
Interest expense		87,253			350,497			143,528				461,626			522,570
Total expenses		669,307			2,555,279			1,282,007				4,115,080			2,590,232
Less fees waived by advisor		(491	)		(1,276	)		(772	)			(1,945	)		(109,701	)
Total expenses after fees waived		668,816			2,554,003			1,281,235				4,113,135			2,480,531
Net investment income		3,664,013			15,767,695			7,116,865				24,638,484			11,104,738
Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:
Investments		1,863,917			7,334,532			3,314,200				11,207,494			(395,099	)
Financial futures contracts		(358,576	)		(1,388,225	)		(497,124	)			(1,600,523	)		—
Foreign currency transactions		(2,140	)		(12,771	)		—				—			1,819,350
Option written		145,144			618,151			290,100				1,003,630			—
Swaps		(640,687	)		(2,751,575	)		(1,247,611	)			(3,920,391	)		—
		1,007,658			3,800,112			1,859,565				6,690,210			1,424,251
Net change in unrealized appreciation/depreciation on:
Investments		2,368,239			12,387,567			5,653,576				19,091,940			9,124,638
Financial futures contracts		(340,848	)		(1,407,481	)		(459,337	)			(1,926,895	)		—
Foreign currency transactions		3,806			14,000			(22	)			(2	)		119,373
Option written		146,292			622,013			215,897				800,104			—
Swaps		227,636			999,921			396,504				991,889			—
Unfunded loan commitments		—			—			—				—			646
		2,405,125			12,616,020			5,806,618				18,957,036			9,244,657
Total realized and unrealized gain		3,412,783			16,416,132			7,666,183				25,647,246			10,668,908
Net Increase in Net Assets Resulting from Operations	$	7,076,796		$	32,183,827		$	14,783,048			$	50,285,730		$	21,773,646

1

Consolidated Statement of Operations.

2

See Note 6 of the Notes to the Financial Statements for details of short-term borrowings.

See Notes to Financial Statements.

Statements of Changes in Net Assets

	BlackRock Credit Allocation Income Trust I, Inc. (PSW)								BlackRock Credit Allocation Income Trust II, Inc. (PSY)
Increase (Decrease) in Net Assets Applicable to Common Shareholders:	Six Months Ended April 30, 2012 (Unaudited)		Year Ended October 31, 2011				Six Months Ended April 30, 2012 (Unaudited)				Year Ended October 31, 2011
Operations
Net investment income	$	3,664,013		$	7,124,109				$	15,767,695		$	29,691,133
Net realized gain (loss)		1,007,658			(2,345,593	)				3,800,112			(12,706,661	)
Net change in unrealized appreciation/depreciation		2,405,125			(690,779	)				12,616,020			(3,271,622	)
Dividends to Preferred Shareholders from net investment income		—			(61,138	)				—			(506,078	)
Net increase in net assets applicable to Common Shareholders resulting from operations		7,076,796			4,026,599					32,183,827			13,206,772
Dividends to Common Shareholders From
Net investment income		(3,970,261	)		(6,305,752	)				(14,935,515	)		(26,912,492	)
Net Assets Applicable to Common Shareholders
Total increase (decrease) in net assets applicable to Common Shareholders		3,106,535			(2,279,153	)				17,248,312			(13,705,720	)
Beginning of period		108,529,137			110,808,290					459,278,722			472,984,442
End of period	$	111,635,672		$	108,529,137				$	476,527,034		$	459,278,722
Undistributed net investment income	$	503,915		$	810,163				$	3,182,458		$	2,350,278

See Notes to Financial Statements.

Statements of Changes in Net Assets (continued)

	BlackRock Credit Allocation Income Trust III (BPP)								BlackRock Credit Allocation Income Trust IV (BTZ)
Increase (Decrease) in Net Assets Applicable to Common Shareholders:	Six Months Ended April 30, 2012 (Unaudited)		Year Ended October 31, 2011				Six Months Ended April 30, 2012 (Unaudited)				Year Ended October 31, 2011
Operations
Net investment income	$	7,116,865		$	13,010,8514				$	24,638,484		$	45,515,474
Net realized gain (loss)		1,859,565			(3,054,857	)				6,690,210			(10,984,247	)
Net change in unrealized appreciation/depreciation		5,806,618			(3,755,447	)				18,957,036			(17,087,131	)
Dividends to Preferred Shareholders from net investment income		—			(23,469	)				—			(646,135	)
Net increase in net assets applicable to Common Shareholders resulting from operations		14,783,048			6,177,078					50,285,730			16,797,961
Dividends to Common Shareholders From
Net investment income		(6,999,291	)		(12,336,480	)				(24,307,405	)		(43,820,706	)
Net Assets Applicable to Common Shareholders
Total increase (decrease) in net assets applicable to Common Shareholders		7,783,757			(6,159,402	)				25,978,325			(27,022,745	)
Beginning of period		222,938,667			229,098,069					722,337,175			749,359,920
End of period	$	230,722,424		$	222,938,667				$	748,315,500		$	722,337,175
Undistributed net investment income	$	905,399		$	787,825				$	1,356,154		$	1,025,075

See Notes to Financial Statements.

Statements of Changes in Net Assets (concluded)

	BlackRock Floating Rate Income Trust (BGT)
Increase (Decrease) in Net Assets Applicable to Common Shareholders:	Six Months Ended April 30, 2012 (Unaudited)1		Year Ended October 31, 2011
Operations
Net investment income	$	11,104,738		$	23,584,991
Net realized gain (loss)		1,424,251			(3,466,879	)
Net change in unrealized appreciation/depreciation		9,244,657			(6,557,897	)
Dividends to Preferred Shareholders from net investment income		—			(90,614	)
Net increase in net assets applicable to Common Shareholders resulting from operations		21,773,646			13,469,601
Dividends to Common Shareholders From
Net investment income		(14,879,572	)		(25,653,072	)
Capital Share Transactions
Reinvestment of common dividends		95,382			577,941
Net Assets Applicable to Common Shareholders
Total increase (decrease) in net assets applicable to Common Shareholders		6,989,456			(11,605,530	)
Beginning of period		329,830,605			341,436,135
End of period	$	336,820,061		$	329,830,605
Undistributed net investment income	$	1,844,623		$	5,628,436

1

Consolidated Statement of Changes in Net Assets.

See Notes to Financial Statements.

Statements of Cash Flows

Six Months Ended April 30, 2012 (Unaudited)	BlackRock Credit Allocation Income Trust I, Inc. (PSW)			BlackRock Credit Allocation Income Trust II, Inc. (PSY)			BlackRock Credit Allocation Income Trust III (BPP)			BlackRock Credit Allocation Income Trust IV (BTZ)			BlackRock Floating Rate Income Trust (BGT)1
Cash Provided by Operating Activities
Net increase in net assets resulting from operations	$	7,076,796		$	32,183,827		$	14,783,048		$	50,285,730		$		21,773,646
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities:
(Increase) decrease in interest receivable		84,470			803,325			302,160			1,171,053				(1,278,018	)
Decrease in swap receivable		3,382			18,342			40,709			125,061				—
Decrease in other assets		456			89,507			51,943			138,860				106,808
(Increase) decrease in prepaid expenses		(2,343	)		(8,239	)		(7,047	)		13,906				9,242
(Increase) decrease in dividends receivable		(6,925	)		(37,989	)		(20,250	)		(63,183	)			418
Decrease in cash pledged as collateral for reverse repurchase agreements		—			—			—			690,000				—
Decrease in cash pledged as collateral for financial futures contracts		235,000			1,306,000			454,000			1,226,000				—
(Increase) decrease in cash pledged as collateral for swaps		500,000			440,000			(891,000	)		(240,000	)			—
Decrease in investment advisory fees payable		(4,521	)		(14,848	)		(5,805	)		(18,126	)			(25,201	)
Increase (decrease) in interest expense and fees payable		(21,820	)		(77,317	)		(42,481	)		(269,587	)			71,999
Increase (decrease) in cash held as collateral for reverse repurchase agreements		—			772,000			(325,000	)		(219,943	)			—
Decrease in cash held as collateral for swaps		—			—			—			(700,000	)			—
Decrease in other accrued expenses payable		(40,100	)		(128,994	)		(63,460	)		(183,910	)			(132,283	)
Decrease in variation margin payable		(271,272	)		(1,191,185	)		(360,288	)		(1,125,876	)			—
Increase in swaps payable		68,897			312,970			147,120			881,672				—
Increase in Officer’s and Directors’ fees payable		2,885			29,965			2,942			27,348				21,591
Increase in deferred income		—			—			—			—				8,037
Net periodic and termination payments of swaps		(347,541	)		(1,527,833	)		(639,005	)		(1,946,023	)			—
Net realized and unrealized gain (loss) on investments		(4,071,222	)		(19,142,036	)		(8,545,052	)		(28,865,368	)			(8,876,838	)
Amortization of premium and accretion of discount on investments		222,208			862,780			396,827			1,375,288				(1,174,334	)
Premiums received from options written		434,317			1,863,276			717,641			2,460,786				—
Proceeds from sales of long-term investments		38,815,381			156,146,423			71,668,850			252,883,626				131,136,093
Purchases of long-term investments		(28,996,127	)		(122,091,527	)		(54,912,795	)		(204,801,909	)			(133,477,248	)
Net proceeds from sales (purchases) of short-term securities		741,664			(1,502,327	)		1,618,550			1,512,820				1,071,567
Premiums paid on closing options written		(352,762	)		(1,532,095	)		(514,470	)		(1,774,467	)			—
Cash provided by operating activities		14,070,823			47,574,025			23,857,137			72,583,758				9,235,479
Cash Used for Financing Activities
Cash receipts from borrowings		18,287,678			66,934,655			29,924,946			92,652,422				106,000,000
Cash payments on borrowings		(28,281,507	)		(99,469,580	)		(46,764,354	)		(141,351,227	)			(93,000,000	)
Cash dividends paid to Common Shareholders		(3,970,526	)		(14,955,087	)		(7,004,151	)		(24,304,896	)			(14,831,651	)
Decrease in custodian bank payable		—			—			—			—				(67,411	)
Cash used for financing activities		(13,964,355	)		(47,490,012	)		(23,843,559	)		(73,003,701	)			(1,899,062	)
Cash Impact from Foreign Exchange Fluctuations
Cash impact from foreign exchange fluctuations		2,807			7,798			(22	)		(2	)			(40,058	)
Cash and Foreign Currency
Net increase (decrease) in cash and foreign currency		109,275			91,811			13,556			(419,945	)			7,296,359
Cash and foreign currency at beginning of period		51,997			208,279			70,497			652,883				—
Cash and foreign currency at end of period	$	161,272		$	300,090		$	84,053		$	232,938		$		7,296,359
Cash Flow Information
Cash paid during the year for interest	$	109,073		$	427,814		$	186,009		$	731,213		$		450,571
Noncash Financing Activities
Capital shares issued in reinvestment of dividends		—			—			—			—		$		95,382

1

Consolidated Statement of Cash Flows.

A Statement of Cash Flows is presented when a Fund has a significant amount of borrowing during the period, based on the average borrowing outstanding in relation to average total assets.

See Notes to Financial Statements.

Financial Highlights

BlackRock Credit Allocation Income Trust I, Inc. (PSW)

	Six Months Ended April 30, 2012 (Unaudited)			Year Ended October 31,
				2011			2010			2009			2008			2007
Per Share Operating Performance
Net asset value, beginning of period	$	10.52		$	10.75		$	9.31		$	7.43		$	19.54		$	22.25
Net investment income1		0.35			0.69			0.63			0.86			1.70			2.01
Net realized and unrealized gain (loss)		0.35			(0.30	)		1.58			2.06			(12.06	)		(2.41	)
Dividends to Preferred Shareholders from net investment income		—			(0.01	)		(0.06	)		(0.08	)		(0.48	)		(0.71	)
Net increase (decrease) from investment operations		0.70			0.38			2.15			2.84			(10.84	)		(1.11	)
Dividends and distributions to Common Shareholders from:
Net investment income		(0.39	)		(0.61	)		(0.62	)		(0.83	)		(1.22	)		(1.18	)
Tax return of capital		—			—			(0.09	)		(0.13	)		(0.05	)		(0.42	)
Total dividends and distributions		(0.39	)		(0.61	)		(0.71	)		(0.96	)		(1.27	)		(1.60	)
Net asset value, end of period	$	10.83		$	10.52		$	10.75		$	9.31		$	7.43		$	19.54
Market price, end of period	$	10.08		$	9.25		$	9.67		$	8.24		$	7.00		$	17.29
Total Investment Return Applicable to Common Shareholders2
Based on net asset value		7.14	%3		4.55	%		24.77	%4		46.46	%		(58.09	)%		(5.03	)%
Based on market price		13.41	%3		2.20	%		26.81	%		37.59	%		(55.38	)%		(12.05	)%
Ratios to Average Net Assets Applicable to Common Shareholders
Total expenses5		1.24	%6		1.14	%		1.16	%		1.61	%		2.00	%		1.32	%
Total expenses after fees waived and paid indirectly5		1.24	%6		1.14	%		1.14	%		1.59	%		2.00	%		1.32	%
Total expenses after fees waived and paid indirectly and
excluding interest expense5		1.08	%6		1.02	%		1.13	%		1.44	%		1.48	%		1.29	%
Net investment income5		6.79	%6		6.56	%		6.28	%		12.45	%		10.79	%		9.38	%
Dividends to Preferred Shareholders		—			0.06	%		0.59	%		1.09	%		3.03	%		3.29	%
Net investment income to Common Shareholders		6.79	%6		6.50	%		5.69	%		11.36	%		7.76	%		6.09	%
Supplemental Data
Net assets applicable to Common Shareholders, end of period (000)	$	111,636		$	108,529		$	110,808		$	96,048		$	76,430		$	201,155
Preferred Shares outstanding at $25,000 liquidation preference,
end of period (000)		—			—		$	40,250		$	40,250		$	68,250		$	136,500
Borrowings outstanding, end of period (000)	$	42,901		$	53,268		$	6,083		$	4,972		$	4,024		$	590
Average borrowings outstanding during the period (000)	$	47,208		$	34,952		$	5,269		$	5,321		$	25,692		$	2,690
Portfolio turnover		19	%		53	%		66	%		36	%		119	%		88	%
Asset coverage per Preferred Share at $25,000 liquidation
preference, end of period		—			—		$	93,831		$	84,663		$	53,009		$	61,846
Asset coverage, end of period per $1,000	$	3,602		$	3,037			—			—			—			—

1

Based on average shares outstanding.

2

Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

3

Aggregate total investment return.

4

Includes proceeds from a settlement of litigation which impacted the Fund. Not including these proceeds the Fund’s total return would have been 24.54%.

5

Do not reflect the effect of dividends to Preferred Shareholders.

6

Annualized.

See Notes to Financial Statements.

Financial Highlights

BlackRock Credit Allocation Income Trust II, Inc. (PSY)

	Six Months Ended April 30, 2012 (Unaudited)			Year Ended October 31,
				2011			2010			2009			2008			2007
Per Share Operating Performance
Net asset value, beginning of period	$	11.25		$	11.59		$	10.03		$	7.96		$	19.93		$	22.36
Net investment income1		0.39			0.73			0.72			1.11			1.73			2.02
Net realized and unrealized gain (loss)		0.41			(0.40	)		1.74			2.17			(11.84	)		(2.35	)
Dividends to Preferred Shareholders from net investment income		—			(0.01	)		(0.06	)		(0.09	)		(0.49	)		(0.73	)
Net increase (decrease) from investment operations		0.80			0.32			2.40			3.19			(10.60	)		(1.06	)
Dividends and distributions to Common Shareholders from:
Net investment income		(0.37	)		(0.66	)		(0.71	)		(1.12	)		(1.15	)		(1.16	)
Tax return of capital		—			—			(0.13	)		(0.00	)2		(0.22	)		(0.21	)
Total dividends and distributions		(0.37	)		(0.66	)		(0.84	)		(1.12	)		(1.37	)		(1.37	)
Net asset value, end of period	$	11.68		$	11.25		$	11.59		$	10.03		$	7.96		$	19.93
Market price, end of period	$	10.79		$	9.74		$	10.39		$	8.90		$	8.10		$	16.94
Total Investment Return Applicable to Common Shareholders3
Based on net asset value		7.57	%4		3.71	%		25.70	%5		48.36	%		(55.71	)%		(4.35	)%
Based on market price		14.78	%4		0.16	%		26.99	%		29.37	%		(46.97	)%		(9.65	)%
Ratios to Average Net Assets Applicable to Common Shareholders
Total expenses6		1.11	%7		1.12	%		1.04	%		1.41	%		1.90	%		1.27	%
Total expenses after fees waived and paid indirectly6		1.11	%7		1.12	%		1.03	%		1.41	%		1.90	%		1.27	%
Total expenses after fees waived and paid indirectly and excluding interest expense6		0.96	%7		1.01	%		1.02	%		1.33	%		1.40	%		1.23	%
Net investment income6		6.87	%7		6.42	%		6.66	%		15.05	%		10.71	%		9.29	%
Dividends to Preferred Shareholders		—			0.11	%		0.58	%		1.19	%		3.04	%		3.34	%
Net investment income to Common Shareholders		6.87	%7		6.31	%		6.08	%		13.86	%		7.67	%		5.95	%
Supplemental Data
Net assets applicable to Common Shareholders, end of period (000)	$	476,527		$	459,279		$	472,984		$	409,293		$	323,132		$	809,411
Preferred Shares outstanding at $25,000 liquidation preference,
end of period (000)		—			—		$	169,025		$	169,025		$	275,000		$	550,000
Borrowings outstanding, end of period (000)	$	179,538		$	213,033		$	4,020		$	9,511		$	54,369			—
Average borrowings outstanding during the period (000)	$	194,349		$	137,824		$	13,407		$	15,842		$	94,908		$	14,375
Portfolio turnover		19	%		50	%		73	%		16	%		120	%		81	%
Asset coverage per Preferred Share at $25,000 liquidation
preference, end of period		—			—		$	94,968		$	85,547		$	54,408		$	61,817
Asset coverage, end of year per $1,000	$	3,654		$	3,156			—			—			—			—

1

Based on average shares outstanding.

2

Amount is less than $(0.01) per share.

3

Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

4

Aggregate total investment return.

5

Includes proceeds from a settlement of litigation which impacted the Fund. Not including these proceeds the Fund’s total return would have been 25.37%.

6

Do not reflect the effect of dividends to Preferred Shareholders.

7

Annualized.

See Notes to Financial Statements.

Financial Highlights

BlackRock Credit Allocation Income Trust III (BPP)

	Six Months Ended April 30, 2012 (Unaudited)			Year Ended October 31,									Period January 1, 2008 to October 31, 2008			Year Ended December 31,
				2011			2010			2009						2007			2006
Per Share Operating Performance
Net asset value, beginning of period	$	12.07		$	12.41		$	11.05		$	8.77		$	19.47		$	24.52		$	24.43
Net investment income		0.38	1		0.70	1		0.73	1		1.09	1		1.48	1		2.05			2.05
Net realized and unrealized gain (loss)		0.42			(0.37	)		1.48			2.40			(10.74	)		(4.72	)		0.62
Dividends and distributions to Preferred Shareholders from:
Net investment income		—			(0.00	)2		(0.01	)		(0.03	)		(0.31	)		(0.62	)		(0.46	)
Net realized gain		—			—			—			—			—			—			(0.12	)
Net increase (decrease) from investment operations		0.80			0.33			2.20			3.46			(9.57	)		(3.29	)		2.09
Dividends and distributions to Common Shareholders from:
Net investment income		(0.38	)		(0.67	)		(0.76	)		(0.95	)		(0.83	)		(1.59	)		(1.58	)
Net realized gain		—			—			—			—			—			(0.02	)		(0.42	)
Tax return of capital		—			—			(0.08	)		(0.23	)		(0.30	)		(0.15	)		—
Total dividends and distributions		(0.38	)		(0.67	)		(0.84	)		(1.18	)		(1.13	)		(1.76	)		(2.00	)
Net asset value, end of period	$	12.49		$	12.07		$	12.41		$	11.05		$	8.77		$	19.47		$	24.52
Market price, end of period	$	11.43		$	10.53		$	11.23		$	9.94		$	8.51		$	17.31		$	26.31
Total Investment Return Applicable to Common Shareholders3
Based on net asset value		7.12	%4		3.56	%		21.52	%		47.16	%		(51.22	)%4		(13.86	)%		8.89	%
Based on market price		12.37	%4		(0.16	)%		22.25	%		36.42	%		(46.76	)%4		(28.62	)%		17.98	%
Ratios to Average Net Assets Applicable to Common Shareholders
Total expenses5		1.15	%6		1.05	%		1.09	%		1.66	%		1.96	%6		1.46	%		1.62	%
Total expenses after fees waived and paid indirectly5		1.15	%6		1.05	%		1.08	%		1.64	%		1.96	%6		1.45	%		1.62	%
Total expenses after fees waived and paid indirectly and excluding interest expense5		1.02	%6		0.96	%		1.07	%		1.39	%		1.39	%6		1.24	%		1.25	%
Net investment income5		6.39	%6		5.78	%		6.31	%		13.08	%		10.53	%6		8.90	%		8.46	%
Dividends to Preferred Shareholders		—			0.01	%		0.10	%		0.38	%		2.19	%6		2.70	%		1.89	%
Net investment income to Common Shareholders		6.39	%6		5.77	%		6.21	%		12.70	%		8.34	%6		6.20	%		6.58	%
Supplemental Data
Net assets applicable to Common Shareholders,
end of period (000)	$	230,722		$	222,939		$	229,098		$	204,133		$	161,311		$	358,017		$	449,995
Preferred Shares outstanding at $25,000 liquidation
preference, end of period (000)		—			—		$	70,425		$	70,425		$	110,400		$	220,800		$	220,800
Borrowings outstanding, end of period (000)	$	73,925		$	92,971			—		$	13,235		$	44,281			—			—
Average borrowings outstanding during the period (000)	$	80,114		$	51,264		$	2,121		$	16,330		$	51,995		$	903			1,303
Portfolio turnover		18	%		48	%		67	%		16	%		121	%		97	%		91	%
Asset coverage per Preferred Share at $25,000
liquidation preference, end of period		—			—		$	106,328		$	97,465		$	61,540		$	65,554		$	75,965
Asset coverage, end of period per $1,000	$	4,121		$	3,398			—			—			—			—			—

1

Based on average shares outstanding.

2

Amount is less than $(0.01) per share.

3

Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

4

Aggregate total investment return.

5

Do not reflect the effect of dividends to Preferred Shareholders.

6

Annualized.

See Notes to Financial Statements.

Financial Highlights

BlackRock Credit Allocation Income Trust IV (BTZ)

	Six Months Ended April 30, 2012 (Unaudited)			Year Ended October 31,												Period December 27, 20061 to October 31, 2007
				2011			2010			2009			2008
Per Share Operating Performance
Net asset value, beginning of period	$	13.94		$	14.46		$	12.64		$	10.59		$	21.39		$	23.88	2
Net investment income		0.47	3		0.88	3		0.85	3		0.99	3		1.33	3		1.25
Net realized and unrealized gain (loss)		0.50			(0.54	)		2.14			2.54			(10.06	)		(1.86	)
Dividends to Preferred Shareholders from net investment income		—			(0.01	)		(0.07	)		(0.07	)		(0.33	)		(0.31	)
Net increase (decrease) from investment operations		0.97			0.33			2.92			3.46			(9.06	)		(0.92	)
Dividends and distributions to Common Shareholders from:
Net investment income		(0.47	)		(0.85	)		(0.81	)		(0.93	)		(0.90	)		(0.93	)
Tax return of capital		—			—			(0.29	)		(0.48	)		(0.84	)		(0.47	)
Total dividends and distributions		(0.47	)		(0.85	)		(1.10	)		(1.41	)		(1.74	)		(1.40	)
Capital charge with respect to issuance of:
Common Shares		—			—			—			—			—			(0.04	)
Preferred Shares		—			—			—			—			—			(0.13	)
Total capital charges		—			—			—			—			—			(0.17	)
Net asset value, end of period	$	14.44		$	13.94		$	14.46		$	12.64		$	10.59		$	21.39
Market price, end of period	$	13.26		$	12.08		$	13.02		$	10.96		$	9.36		$	18.65
Total Investment Return Applicable to Common Shareholders4
Based on net asset value		7.46	%5		3.28	%		25.16	%		41.06	%		(44.27	)%		(4.42	)%5
Based on market price		13.87	%5		(0.60	)%		29.98	%		38.38	%		(43.51	)%		(20.34	)%5
Ratios to Average Net Assets Applicable to Common Shareholders
Total expenses6		1.14	%7		1.09	%		1.12	%		1.60	%		1.65	%		1.90	%7
Total expenses after fees waived and paid indirectly6		1.14	%7		1.09	%		1.11	%		1.58	%		1.65	%		1.88	%7
Total expenses after fees waived and paid indirectly
and excluding interest expense6		1.01	%7		0.99	%		1.07	%		1.24	%		1.21	%		1.04	%7
Net investment income6		6.82	%7		6.25	%		6.33	%		9.93	%		7.63	%		6.50	%7
Dividends to Preferred Shareholders		—			0.09	%		0.50	%		0.74	%		1.89	%		1.64	%7
Net investment income to Common Shareholders		6.82	%7		6.16	%		5.83	%		9.19	%		5.74	%		4.86	%7
Supplemental Data
Net assets applicable to Common Shareholders, end of period (000)	$	748,316		$	722,337		$	749,360		$	654,999		$	548,612		$	1,108,534
Preferred Shares outstanding at $25,000 liquidation preference, end of period (000)		—			—		$	231,000		$	231,000		$	231,000		$	462,000
Borrowings outstanding, end of period (000)	$	282,005		$	339,303			—		$	61,576		$	223,512		$	88,291
Average borrowings outstanding during the period (000)	$	300,482		$	182,843		$	63,660		$	76,521		$	107,377		$	96,468
Portfolio turnover		20	%		54	%		64	%		30	%		126	%		35	%
Asset coverage per Preferred Share at $25,000 liquidation
preference, end of period		—			—		$	106,104		$	95,892		$	84,384		$	89,737
Asset coverage, end of period per $1,000	$	3,654		$	3,129			—			—			—			—

1

Commencement of operations.

2

Net asset value, beginning of period, reflects a deduction of $1.12 per share sales charge from initial offering price of $25.00 per share.

3

Based on average shares outstanding.

4

Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

5

Aggregate total investment return.

6

Do not reflect the effect of dividends to Preferred Shareholders.

7

Annualized.

See Notes to Financial Statements.

Financial Highlights

BlackRock Floating Rate Income Trust (BGT)

	Six Months Ended April 30, 2012 (Unaudited)1			Year Ended October 31,									Period January 1, 2008 to October 31, 2008			Year Ended December 31,
				2011			2010			2009						2007			2006
Per Share Operating Performance
Net asset value, beginning of period	$	13.97		$	14.48		$	13.29		$	11.24		$	17.71		$	19.11		$	19.13
Net investment income		0.47	2		1.00	2		0.97	2		0.98	2		1.42	2		2.03			1.99
Net realized and unrealized gain (loss)		0.45			(0.42	)		1.09			2.72			(6.62	)		(1.39	)		(0.06	)
Dividends and distributions to Preferred Shareholders from:
Net investment income		—			(0.00	)3		(0.04	)		(0.04	)		(0.24	)		(0.54	)		(0.48	)
Net realized gain		—			—			—			—			—			—			(0.01	)
Net increase (decrease) from investment operations		0.92			0.58			2.02			3.66			(5.44	)		0.10			1.44
Dividends and distributions to Common Shareholders from:
Net investment income		(0.63	)		(1.09	)		(0.83	)		(1.19	)		(1.03	)		(1.14	)		(1.44	)
Net realized gain		—			—			—			—			—			—			(0.02	)
Tax return of capital		—			—			—			(0.42	)		—			(0.36	)		—
Total dividends and distributions		(0.63	)		(1.09	)		(0.83	)		(1.61	)		(1.03	)		(1.50	)		(1.46	)
Net asset value, end of period	$	14.26		$	13.97		$	14.48		$	13.29		$	11.24		$	17.71		$	19.11
Market price, end of period	$	14.41		$	13.00		$	14.52		$	12.58		$	9.63		$	15.78		$	19.27
Total Investment Return Applicable to Common Shareholders4
Based on net asset value		6.83	%5		4.03	%		15.55	%		39.51	%		(31.62	)%5		0.98	%		7.93	%
Based on market price		16.01	%5		(3.46	)%		22.41	%		54.14	%		(34.24	)%5		(10.92	)%		21.31	%
Ratios to Average Net Assets Applicable to Common Shareholders
Total expenses6		1.58	%7		1.73	%		1.43	%		1.96	%		2.22	%7		1.67	%		1.75	%
Total expenses after fees waived and paid indirectly6		1.51	%7		1.60	%		1.25	%		1.68	%		1.89	%7		1.33	%		1.43	%
Total expenses after fees waived and paid indirectly and excluding interest expense and fees6,8		1.20	%7		1.24	%		1.15	%		1.24	%		1.21	%7		1.16	%		1.19	%
Net investment income6		6.78	%7		6.95	%		7.01	%		8.92	%		10.56	%7		10.83	%		10.38	%
Dividends to Preferred Shareholders		—			0.03	%		0.27	%		0.38	%		1.75	%7		2.88	%		2.51	%
Net investment income to Common Shareholders		6.78	%7		6.92	%		6.74	%		8.54	%		8.81	%7		7.95	%		7.87	%
Supplemental Data
Net assets applicable to Common Shareholders,
end of period (000)	$	336,820		$	329,831		$	341,436		$	312,872		$	264,590		$	417,086		$	449,065
Preferred Shares outstanding at $25,000 liquidation preference, end of period (000)		—			—		$	58,800		$	58,800		$	58,800		$	243,450		$	243,450
Borrowings outstanding, end of period (000)	$	135,000		$	122,000		$	38,000		$	14,000		$	123,150			—		$	26,108
Average borrowings outstanding during the period (000)	$	110,725		$	120,334		$	24,321		$	53,156		$	71,780		$	10,524		$	19,562
Portfolio turnover		30	%		89	%		87	%		42	%		25	%		41	%		50	%
Asset coverage per Preferred Share at $25,000
liquidation preference, end of period		—			—		$	170,174		$	158,029		$	137,505		$	67,849		$	73,810
Asset coverage, end of period per $1,000	$	3,495		$	3,704			—			—			—			—			—

1

Consolidated Financial Highlights.

2

Based on average shares outstanding.

3

Amount is less than $(0.01) per share.

4

Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

5

Aggregate total investment return.

6

Do not reflect the effect of dividends to Preferred Shareholders.

7

Annualized.

8

For the year ended April 30, 2012, the total expense ratio after fees waived and paid indirectly and excluding interest expense and fees and borrowing costs was 1.09%

See Notes to Financial Statements.

Notes to Financial Statements (Unaudited)

1. Organization and Significant Accounting Policies:

BlackRock Credit Allocation Income Trust I, Inc. (“PSW”) and BlackRock Credit Allocation Income Trust II, Inc. (“PSY”) are registered as diversified, closed-end management investment companies under the 1940 Act. BlackRock Credit Allocation Income Trust III (“BPP”), BlackRock Credit Allocation Income Trust IV (“BTZ”) and BlackRock Floating Rate Income Trust (“BGT”) are registered as non-diversified, closed-end management investment companies under the 1940 Act. PSW and PSY are organized as Maryland corporations. BPP, BTZ and BGT are organized as Delaware statutory trusts. PSW, PSY, BPP, BTZ and BGT are collectively referred to as the “Funds” or individually as the “Fund”. The Funds' financial statements are prepared in conformity with accounting principles generally accepted in the United States of America ("US GAAP"), which may require management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. The Boards of Directors and the Boards of Trustees of the Funds are collectively referred to throughout this report as the “Board of Directors” or the “Board”, and the directors/trustees thereof are collectively referred to throughout this report as “Directors”. The Funds determine, and make available for publication the NAVs of their Common Shares on a daily basis.

The following is a summary of significant accounting policies followed by the Funds:

Basis of Consolidation: BGT’s accompanying consolidated financial statements include the account of BGT JGW SPV, LLC (the “Taxable Subsidiary”), a wholly owned taxable subsidiary of BGT. The Taxable Subsidiary enables BGT to hold its investment in J.G. Wentworth LLC Preferred Equity Interests that is organized as an operating partnership and still satisfy Regulated Investment Company (“RIC”) tax requirements. Income earned and gains realized on the investment held by the Taxable Subsidiary are taxable to such subsidiary. An income tax provision for all income, including realized and unrealized gains, if any, is reflected as either a reduction in investment income or as component of realized and unrealized gain (loss) on the Consolidated Statement of Operations. BGT may invest up to 25% of its total assets in the Taxable Subsidiary. Intercompany accounts and transactions have been eliminated. The Taxable Subsidiary is subject to the same investment policies and restrictions that apply to BGT.

Valuation: US GAAP defines fair value as the price the Funds would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Funds fair value their financial instruments at market value using independent dealers or pricing services under policies approved by the Board. The Funds value their bond investments on the basis of last available bid prices or current market quotations provided by dealers or pricing services. Floating rate loan interests are valued at the mean of the bid prices from one or more brokers or dealers as obtained from a pricing service. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market transactions in comparable investments, various relationships observed in the market between investments and calculated yield measures. Financial futures contracts traded on exchanges are valued at their last sale price. Swap agreements are valued utilizing quotes received daily by the Funds' pricing service or through brokers, which are derived using daily swap curves and models that incorporate a number of market data factors, such as discounted cash flows, trades and values of the underlying reference instruments. Investments in open-end registered investment companies are valued at NAV each business day. Short-term securities with remaining maturities of 60 days or less may be valued at amortized cost, which approximates fair value.

Municipal investments (including commitments to purchase such investments on a “when-issued” basis) are valued on the basis of prices provided by dealers or pricing services. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market transactions in comparable investments and information with respect to various relationships between investments.

Equity investments traded on a recognized securities exchange or the NASDAQ Global Market System ("NASDAQ") are valued at the last reported sale price that day or the NASDAQ official closing price, if applicable. For equity investments traded on more than one exchange, the last reported sale price on the exchange where the stock is primarily traded is used. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last available bid (long positions) or ask (short positions) price. If no bid or ask price is available, the prior day’s price will be used, unless it is determined that such prior day’s price no longer reflects the fair value of the security.

Securities and other assets and liabilities denominated in foreign currencies are translated into US dollars using exchange rates determined as of the close of business on the New York Stock Exchange (“NYSE”). Foreign currency exchange contracts are valued at the mean between the bid and ask prices and are determined as of the close of business on the NYSE. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available.

Exchange-traded options are valued at the mean between the last bid and ask prices at the close of the options market in which the options trade. An exchange-traded option for which there is no mean price is valued at the last bid (long positions) or ask (short positions) price. If no bid or ask price is available, the prior day’s price will be used, unless it is determined that the prior day’s price no longer reflects the fair value of the option. Over-the-counter (“OTC”) options and swaptions are valued by an independent pricing service using a mathematical model, which incorporates a number of market data factors, such as the trades and prices of the underlying instruments.

In the event that application of these methods of valuation results in a price for an investment, which is deemed not to be representative of the market value of such investment or if a price is not available, the investment will be valued in accordance with a policy approved by the Board as reflecting fair value (“Fair Value Assets”). When determining the price for Fair Value Assets, the investment advisor and/or the sub-advisor seeks to determine the price that each Fund might reasonably expect to receive from the current sale of that asset in an arm’s-length transaction. Fair value

Notes to Financial Statements (continued)

determinations shall be based upon all available factors that the investment advisor and/or sub-advisor deems relevant. The pricing of all Fair Value Assets is subsequently reported to the Board or a committee thereof.

Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of business on the NYSE. Occasionally, events affecting the values of such instruments may occur between the foreign market close and the close of business on the NYSE that may not be reflected in the computation of each Fund's net assets. If events (for example, a company announcement, market volatility or a natural disaster) occur during such periods that are expected to materially affect the value of such instruments, those instruments may be Fair Value Assets and be valued at their fair value, as determined in good faith by the investment advisor using a pricing service and/or policies approved by the Board. Each business day, the Funds use a pricing service to assist with the valuation of certain foreign exchange-traded equity securities and foreign exchange-traded and OTC options (the “Systematic Fair Value Price”). Using current market factors, the Systematic Fair Value Price is designed to value such foreign securities and foreign options at fair value as of the close of business on the NYSE, which follows the close of the local markets.

Foreign Currency Transactions: The Funds' books and records are maintained in US dollars. Purchases and sales of investment securities are recorded at the rates of exchange prevailing on the respective date of such transactions. Generally, when the US dollar rises in value against a foreign currency, the Funds' investments denominated in that currency will lose value because that currency is worth fewer US dollars; the opposite effect occurs if the US dollar falls in relative value.

The Funds do not isolate the portion of the results of operations arising as a result of changes in the foreign exchange rates from the changes in the market prices of investments held or sold for financial reporting purposes. Accordingly, the effects of changes in foreign currency exchange rates on investments are not segregated on the Statements of Operations from the effects of changes in market prices of those investments but are included as a component of net realized and unrealized gain (loss) from investments. The Funds report realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are treated as ordinary income for federal income tax purposes.

Asset-Backed and Mortgage-Backed Securities: The Funds may invest in asset-backed securities. Asset-backed securities are generally issued as pass-through certificates, which represent undivided fractional ownership interests in an underlying pool of assets, or as debt instruments, which are also known as collateralized obligations, and are generally issued as the debt of a special purpose entity organized solely for the purpose of owning such assets and issuing such debt. Asset-backed securities are often backed by a pool of assets representing the obligations of a number of different parties. The yield characteristics of certain asset-backed securities may differ from traditional debt securities. One such major difference is that all or a principal part of the obligations may be prepaid at any time because the underlying assets (i.e., loans) may be prepaid at any time. As a result, a decrease in interest rates in the market may result in increases in the level of prepayments as borrowers, particularly mortgagors, refinance and repay their loans. An increased prepayment rate with respect to an asset-backed security subject to such a prepayment feature will have the effect of shortening the maturity of the security. If the Funds have purchased such an asset-backed security at a premium, a faster than anticipated prepayment rate could result in a loss of principal to the extent of the premium paid.

The Funds may purchase certain mortgage pass-through securities. There are a number of important differences among the agencies and instrumentalities of the US government that issue mortgage-related securities and among the securities that they issue. For example, mortgage-related securities guaranteed by Ginnie Mae are guaranteed as to the timely payment of principal and interest by Ginnie Mae and such guarantee is backed by the full faith and credit of the United States. However, mortgage-related securities issued by Freddie Mac and Fannie Mae, including Freddie Mac and Fannie Mae guaranteed Mortgage Pass-Through Certificates, which are solely the obligations of Freddie Mac and Fannie Mae, are not backed by or entitled to the full faith and credit of the United States but are supported by the right of the issuer to borrow from the Treasury.

Collateralized Debt Obligations: The Funds may invest in collateralized debt obligations (“CDOs”), which include collateralized bond obligations (“CBOs”) and collateralized loan obligations (“CLOs”). CBOs and CLOs are types of asset-backed securities. A CDO is a bankruptcy remote entity which is backed by a diversified pool of debt securities (CBOs) or syndicated bank loans (CLOs). The cash flows of the CDO can be split into multiple segments, called “tranches”, which will vary in risk profile and yield. The riskiest segment is the subordinated or “equity” tranche. This tranche bears the greatest risk of defaults from the underlying assets in the CDO and serves to protect the other, more senior, tranches from default in all but the most severe circumstances. Since it is shielded from defaults by the more junior tranches, a “senior” tranche will typically have higher credit ratings and lower yields than their underlying securities, and often receive investment grade ratings from one or more of the nationally recognized rating agencies. Despite the protection from the more junior tranches, senior tranches can experience substantial losses due to actual defaults, increased sensitivity to future defaults and the disappearance of one or more protecting tranches as a result of changes in the credit profile of the underlying pool of assets.

Zero-Coupon Bonds: The Funds may invest in zero-coupon bonds, which are normally issued at a significant discount from face value and do not provide for periodic interest payments. Zero-coupon bonds may experience greater volatility in market value than similar maturity debt obligations which provide for regular interest payments.

Capital Trusts: The Funds may invest in capital trusts. These securities are typically issued by corporations, generally in the form of interest-bearing notes with preferred securities characteristics, or by an affiliated business trust of a corporation, generally in the form of beneficial interests in subordinated debentures or similarly structured securities. The securities can be structured as either fixed or adjustable coupon securities that can have

Notes to Financial Statements (continued)

either a perpetual or stated maturity date. Dividends can be deferred without creating an event of default or acceleration, although maturity cannot take place unless all cumulative payment obligations have been met. The deferral of payments does not affect the purchase or sale of these securities in the open market. Payments on these securities are treated as interest rather than dividends for federal income tax purposes. These securities generally are rated below that of the issuing company’s senior debt securities.

Preferred Stock: The Funds may invest in preferred stocks. Preferred stock has a preference over common stock in liquidation (and generally in receiving dividends as well) but is subordinated to the liabilities of the issuer in all respects. As a general rule, the market value of preferred stock with a fixed dividend rate and no conversion element varies inversely with interest rates and perceived credit risk, while the market price of convertible preferred stock generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and other obligations of the issuer, deterioration in the credit quality of the issuer will cause greater changes in the value of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest payments on debt securities, preferred stock dividends are payable only if declared by the issuer’s board of directors. Preferred stock also may be subject to optional or mandatory redemption provisions.

Floating Rate Loan Interests: The Funds may invest in floating rate loan interests. The floating rate loan interests the Funds hold are typically issued to companies (the “borrower”) by banks, other financial institutions, and privately and publicly offered corporations (the “lender”). Floating rate loan interests are generally non-investment grade, often involve borrowers whose financial condition is troubled or uncertain and companies that are highly leveraged. The Funds may invest in obligations of borrowers who are in bankruptcy proceedings. Floating rate loan interests may include fully funded term loans or revolving lines of credit. Floating rate loan interests are typically senior in the corporate capital structure of the borrower. Floating rate loan interests generally pay interest at rates that are periodically determined by reference to a base lending rate plus a premium. The base lending rates are generally the lending rate offered by one or more European banks, such as LIBOR (London Interbank Offered Rate), the prime rate offered by one or more US banks or the certificate of deposit rate. Floating rate loan interests may involve foreign borrowers, and investments may be denominated in foreign currencies. The Funds consider these investments to be investments in debt securities for purposes of their investment policies.

When the Fund purchases a floating rate loan interest it may receive a facility fee and when it sells a floating rate loan interest it may pay a facility fee. On an ongoing basis, the Funds may receive a commitment fee based on the undrawn portion of the underlying line of credit amount of a floating rate loan interest. Facility and commitment fees are typically amortized to income over the term of the loan or term of the commitment, respectively. Consent and amendment fees are recorded to income as earned. Prepayment penalty fees, which may be received by the Funds upon the prepayment of a floating rate loan interest by a borrower, are recorded as realized gains. The Funds may invest in multiple series or tranches of a loan. A different series or tranche may have varying terms and carry different associated risks.

Floating rate loan interests are usually freely callable at the borrower’s option. The Funds may invest in such loans in the form of participations in loans (“Participations”) or assignments ("Assignments") of all or a portion of loans from third parties. Participations typically will result in the Funds having a contractual relationship only with the lender, not with the borrower. The Funds will have the right to receive payments of principal, interest and any fees to which it is entitled only from the lender selling the Participation and only upon receipt by the lender of the payments from the borrower. In connection with purchasing Participations, the Funds generally will have no right to enforce compliance by the borrower with the terms of the loan agreement, nor any rights of offset against the borrower, and the Funds may not benefit directly from any collateral supporting the loan in which it has purchased the Participation. As a result, the Funds will assume the credit risk of both the borrower and the lender that is selling the Participation. The Funds' investment in loan participation interests involves the risk of insolvency of the financial intermediaries who are parties to the transactions. In the event of the insolvency of the lender selling the Participation, the Funds may be treated as general creditors of the lender and may not benefit from any offset between the lender and the borrower. Assignments typically result in the Funds having a direct contractual relationship with the borrower and the Funds may enforce compliance by the borrower with the terms of the loan agreement.

Reverse Repurchase Agreements: The Funds may enter into reverse repurchase agreements with qualified third party broker-dealers. In a reverse repurchase agreement, the Funds sell securities to a bank or broker-dealer and agrees to repurchase the same securities at a mutually agreed upon date and price. Securities sold under reverse repurchase agreements are recorded at face value as a liability in the Statements of Assets and Liabilities. Due to the short term nature of the reverse repurchase agreements, face value approximates fair value. During the term of the reverse repurchase agreement, the Funds continue to receive the principal and interest payments on these securities. Certain agreements have no stated maturity and can be terminated by either party at any time. Interest on the value of the reverse repurchase agreements issued and outstanding is based upon competitive market rates determined at the time of issuance. The Funds may utilize reverse repurchase agreements when it is anticipated that the interest income to be earned from the investment of the proceeds of the transaction is greater than the interest expense of the transaction. Reverse repurchase agreements involve leverage risk and also the risk that the market value of the securities that the Funds are obligated to repurchase under the agreement may decline below the repurchase price. In the event the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes insolvent, the Funds' use of the proceeds of the agreement may be restricted while the other party, or its trustee or receiver, determines whether or not to enforce the Funds' obligation to repurchase the securities.

Segregation and Collateralization: In cases in which the 1940 Act and the interpretive positions of the Securities and Exchange Commission (“SEC”) require that the Funds either deliver collateral or segregate assets in con-

Notes to Financial Statements (continued)

nection with certain investments (e.g., financial futures contracts, foreign currency exchange contracts, swaps, and options written), or certain borrowings (e.g., reverse repurchase agreements and loan payable), the Funds will, consistent with SEC rules and/or certain interpretive letters issued by the SEC, segregate collateral or designate on their books and records cash or liquid securities having a market value at least equal to the amount that would otherwise be required to be physically segregated. Furthermore, based on requirements and agreements with certain exchanges and third party broker-dealers, each party to such transactions has requirements to deliver/deposit securities as collateral for certain investments.

Investment Transactions and Investment Income: For financial reporting purposes, investment transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on the ex-dividend dates. Dividends from foreign securities where the ex-dividend date may have passed are subsequently recorded when the Funds are informed of the ex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized on the accrual basis.

Dividends and Distributions: Dividends from net investment income are declared and paid monthly. Distributions of capital gains are recorded on the ex-dividend dates. If the total dividends and distributions made in any tax year exceeds net investment income and accumulated realized capital gains, a portion of the total distribution may be treated as a tax return of capital. The amount and timing of dividends and distributions are determined in accordance with federal income tax regulations, which may differ from US GAAP.

Income Taxes: It is each Fund's policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no federal income tax provision is required.

Each Fund files US federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on each Fund’s US federal tax returns remains open for each of the four years ended October 31, 2011. The statutes of limitations on the each Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction. Management does not believe there are any uncertain tax positions that require recognition of a tax liability.

Recent Accounting Standards: In May 2011, the Financial Accounting Standards Board (the “FASB”) issued amended guidance to improve disclosure about fair value measurements, which will require the following disclosures for fair value measurements categorized as Level 3: quantitative information about the unobservable inputs and assumptions used in the fair value measurement, a description of the valuation policies and procedures and a narrative description of the sensitivity of the fair value measurement to changes in unobservable inputs and the interrelationships between those unobservable inputs. In addition, the amounts and reasons for all transfers in and out of Level 1 and Level 2 will be required to be disclosed as well as disclosure of the level in the fair value hierarchy of assets and liabilities not recorded at fair value but where fair value is disclosed. The amended guidance is effective for financial statements for fiscal years beginning after December 15, 2011, and interim periods within those fiscal years. Management is evaluating the impact of this guidance on the Funds’ financial statement disclosures.

In December 2011, the FASB issued guidance that will expand current disclosure requirements on the offsetting of certain assets and liabilities. The new disclosures will be required for investments and derivative financial instruments subject to master netting or similar agreements which are eligible for offset in the Statements of Assets and Liabilities and will require an entity to disclose both gross and net information about such investments and transactions in the financial statements. The guidance is effective for financial statements with fiscal years beginning on or after January 1, 2013, and interim periods within those fiscal years. Management is evaluating the impact of this guidance on the Funds’ financial statement disclosures.

Deferred Compensation and BlackRock Closed-End Share Equivalent Investment Plan: Under the deferred compensation plan approved by each Fund's Board, independent Directors (“Independent Directors”) may defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of certain other BlackRock Closed-End Funds selected by the Independent Directors. This has approximately the same economic effect for the Independent Directors as if the Independent Directors had invested the deferred amounts directly in certain other BlackRock Closed-End Funds.

The deferred compensation plan is not funded and obligations thereunder represent general unsecured claims against the general assets of each Fund. Prior to March 31, 2012, each Fund elected to invest in common shares of certain other BlackRock Closed-End Funds selected by the Independent Directors in order to match its deferred compensation obligations and dividends and distributions received from the BlackRock Closed-End Fund investments through March 31, 2012 are included in income — affiliated in the Statements of Operations.

Other: Expenses directly related to a Fund are charged to that Fund. Other operating expenses shared by several funds are pro rated among those funds on the basis of relative net assets or other appropriate methods.

The Funds have an arrangement with the custodian whereby fees may be reduced by credits earned on uninvested cash balances, which, if applicable, are shown as fees paid indirectly in the Statements of Operations. The custodian imposes fees on overdrawn cash balances, which can be offset by accumulated credits earned or may result in additional custody charges.

Notes to Financial Statements (continued)

2. Derivative Financial Instruments:

The Funds engage in various portfolio investment strategies using derivative contracts both to increase the returns of the Funds and/or to economically hedge, or protect, their exposure to certain risks such as credit risk, equity risk, interest rate risk or foreign currency exchange rate risk. These contracts may be transacted on an exchange or OTC.

Losses may arise if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument or if the counterparty does not perform under the contract. The Funds' maximum risk of loss from counterparty credit risk on OTC derivatives is generally the aggregate unrealized gain netted against any collateral pledged by/posted to the counterparty. For OTC options purchased, the Funds bear the risk of loss in the amount of the premiums paid plus the positive change in market values net of any collateral received on the options should the counterparty fail to perform under the contracts. Options written by the Funds do not give rise to counterparty credit risk, as options written obligate the Funds to perform and not the counterparty. Counterparty risk related to exchange-traded financial futures contracts and options and centrally cleared swaps is deemed to be minimal due to the protection against defaults provided by the exchange on which these contracts trade.

The Funds may mitigate counterparty risk by procuring collateral and through netting provisions included within an International Swaps and Derivatives Association, Inc. master agreement ("ISDA Master Agreement") implemented between a Fund and each of its respective counterparties. An ISDA Master Agreement allows each Fund to offset with each separate counterparty certain derivative financial instrument’s payables and/or receivables with collateral held. The amount of collateral moved to/from applicable counterparties is generally based upon minimum transfer amounts of up to $500,000. To the extent amounts due to the Funds from their counterparties are not fully collateralized, contractually or otherwise, the Funds bear the risk of loss from counterparty non-performance. See Note 1 “Segregation and Collateralization” for information with respect to collateral practices. In addition, the Funds manage counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties.

Certain ISDA Master Agreements allow counterparties to OTC derivatives to terminate derivative contracts prior to maturity in the event a Funds’ net assets decline by a stated percentage or the Funds fail to meet the terms of their ISDA Master Agreements, which would cause the Funds to accelerate payment of any net liability owed to the counterparty.

Financial Futures Contracts: The Funds purchase or sell financial futures contracts and options on financial futures contracts to gain exposure to, or economically hedge against, changes in interest rates (interest rate risk). Financial futures contracts are agreements between the Funds and the counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and at a specified date. Depending on the terms of the particular contract, financial futures contracts are settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash settlement amount on the settlement date. Pursuant to the contract, the Funds agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin and are recorded by the Funds as unrealized appreciation or depreciation. When the contract is closed, the Funds record a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. The use of financial futures contracts involves the risk of an imperfect correlation in the movements in the price of financial futures contracts, interest rates and the underlying assets.

Foreign Currency Exchange Contracts: The Funds enter into foreign currency exchange contracts as an economic hedge against either specific transactions or portfolio instruments or to obtain exposure to foreign currencies (foreign currency exchange rate risk). A foreign currency exchange contract is an agreement between two parties to buy and sell a currency at a set exchange rate on a future date. Foreign currency exchange contracts, when used by the Funds, help to manage the overall exposure to the currencies, in which some of the investments held by the Funds are denominated. The contract is marked-to-market daily and the change in market value is recorded by the Funds as an unrealized gain or loss. When the contract is closed, the Funds record a realized gain or loss equal to the difference between the value at the time it was opened and the value at the time it was closed. The use of foreign currency exchange contracts involves the risk that the value of a foreign currency exchange contract changes unfavorably due to movements in the value of the referenced foreign currencies and the risk that a counterparty to the contract does not perform its obligations under the agreement.

Options: The Funds purchase and write call and put options to increase or decrease their exposure to underlying instruments (including credit risk, equity risk and/or interest rate risk) and/or, in the case of options written, to generate gains from options premiums. A call option gives the purchaser (holder) of the option the right (but not the obligation) to buy, and obligates the seller (writer) to sell (when the option is exercised), the underlying instrument at the exercise or strike price at any time or at a specified time during the option period. A put option gives the holder the right to sell and obligates the writer to buy the underlying instrument at the exercise or strike price at any time or at a specified time during the option period. When the Funds purchase (writes) an option, an amount equal to the premium paid (received) by the Funds is reflected as an asset (liability). The amount of the asset (liability) is subsequently marked-to-market to reflect the current market value of the option purchased (written). When an instrument is purchased or sold through an exercise of an option, the related premium paid (or received) is added to (or deducted from) the basis of the instrument acquired or deducted from (or added to) the proceeds of the instrument sold. When an option expires (or the Fund enters into a closing transaction), the Funds realize a gain or loss on the option to the extent of the premiums received or paid (or gain or loss to the extent the cost of the closing transaction exceeds the premiums received or paid). When the Funds write a call option, such option is “covered,” meaning that the Funds holds the underlying instrument subject to being called by the option counterparty. When the Funds write a put option, such option is covered by cash in an amount sufficient to cover the obligation.

In purchasing and writing options, the Funds bear the risk of an unfavorable change in the value of the underlying instrument or the risk that the

Notes to Financial Statements (continued)

Funds may not be able to enter into a closing transaction due to an illiquid market. Exercise of a written option could result in the Funds purchasing or selling a security at a price different from the current market value.

Swaps: The Funds enter into swap agreements, in which the Funds and a counterparty agree to either make periodic net payments on a specified notional amount or net payment upon termination. Swap agreements are privately negotiated in the OTC market and may be executed on a registered financial and commodities exchange (“centrally cleared swaps”). In a centrally cleared swap, the Funds typically enter into an agreement with a counterparty; however, performance is guaranteed by the central clearing-house reducing or eliminating the Funds’ exposure to the credit risk of the counterparty. These payments received or made by the Funds are recorded in the Statements of Operations as realized gains or losses, respectively. Any upfront fees paid are recorded as assets and any upfront fees received are recorded as liabilities and amortized over the term of the swap. Swaps are marked-to-market daily and changes in value are recorded as unrealized appreciation (depreciation). The daily change in valuation of centrally cleared swaps, if any, is recorded as a receivable or payable for variation margin in the Statements of Assets and Liabilities. When the swap is terminated, the Funds will record a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Funds' basis in the contract, if any. Generally, the basis of the contracts is the premium received or paid. Swap transactions involve, to varying degrees, elements of interest rate, credit and market risk in excess of the amounts recognized in the Statements of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreements, and that there may be unfavorable changes in interest rates and/or market values associated with these transactions.

•

Credit default swaps — The Funds enter into credit default swaps to manage their exposure to the market or certain sectors of the market, to reduce its risk exposure to defaults of corporate and/or sovereign issuers or to create exposure to corporate and/or sovereign issuers to which they are not otherwise exposed (credit risk). The Funds enter into credit default swap agreements to provide a measure of protection against the default of an issuer (as buyer of protection) and/or gain credit exposure to an issuer to which it is not otherwise exposed (as seller of protection). The Funds may either buy or sell (write) credit default swaps on single-name issuers (corporate or sovereign), a combination or basket of single-name issuers or traded indexes. Credit default swaps on single-name issuers are agreements in which the buyer pays fixed periodic payments to the seller in consideration for a guarantee from the seller to make a specific payment should a negative credit event take place with respect to the referenced entity (e.g., bankruptcy, failure to pay, obligation accelerators, repudiation, moratorium or restructuring). Credit default swaps on traded indexes are agreements in which the buyer pays fixed periodic payments to the seller in consideration for a guarantee from the seller to make a specific payment should a write-down, principal or interest shortfall or default of all or individual underlying securities included in the index occurs. As a buyer, if an underlying credit event occurs, the Funds will either receive from the seller an amount equal to the notional amount of the swap and deliver the referenced security or underlying securities comprising the index or receive a net settlement of cash equal to the notional amount of the swap less the recovery value of the security or underlying securities comprising the index. As a seller (writer), if an underlying credit event occurs, the Funds will either pay the buyer an amount equal to the notional amount of the swap and take delivery of the referenced security or underlying securities comprising the index or pay a net settlement of cash equal to the notional amount of the swap less the recovery value of the security or underlying securities comprising the index.

•

Interest rate swaps — The Funds enter into interest rate swaps to gain or reduce exposure to interest rates or to manage duration, the yield curve or interest rate risk by economically hedging the value of the fixed rate bonds which may decrease when interest rates rise (interest rate risk). Interest rate swaps are agreements in which one party pays a stream of interest payments, either fixed or floating rate, for another party’s stream of interest payments, either fixed or floating, on the same notional amount for a specified period of time. Interest rate floors, which are a type of interest rate swap, are agreements in which one party agrees to make payments to the other party to the extent that interest rates fall below a specified rate or floor in return for a premium. In more complex swaps, the notional principal amount may decline (or amortize) over time.

Derivative Financial Instruments Categorized by Risk Exposure:

Fair Values of Derivative Financial Instruments as of April 30, 2012
		Asset Derivatives
		PSW		PSY		BPP		BTZ		BGT
	Statements of Assets and Liabilities Location					Value
Foreign currency exchange contracts	Unrealized appreciation on foreign currency contracts
			—		—		—		—	$	32,307
Equity contracts	Net unrealized appreciation/depreciation1
		$	17,420	$	74,100	$	35,880	$	122,720		—
Interest rate contracts	Net unrealized appreciation/depreciation1; Investments at value — unaffiliated2
			133,243		554,375		653,270		2,247,419		—
Credit contracts	Unrealized appreciation on swaps1
	Investments at value — unaffiliated2		35,265		154,685		87,542		254,130		—
Total		$	185,928	$	783,160	$	776,692	$	2,624,269	$	32,307

Notes to Financial Statements (continued)

		Liability Derivatives
		PSW			PSY			BPP			BTZ			BGT
	Statements of Assets and Liabilities Location		Value
Foreign currency exchange contracts	Unrealized depreciation on
	foreign currency contracts	$	(1,070	)	$	(2,375	)		—			—		$	(434,126	)
Equity contracts	Net unrealized appreciation/
	depreciation1		(12,394	)		(51,763	)	$	(25,517	)	$	(86,029	)		—
Interest rate contracts	Net unrealized appreciation/
	depreciation1; Unrealized depreciation
	on swaps1; Options written at value2		(602,845	)		(2,531,979	)		(2,168,613	)		(8,072,979	)		—
Credit contracts	Unrealized depreciation on swaps1;
	Options written at value2		(29,734	)		(127,551	)		(51,777	)		(148,628	)		—
Total		$	(646,043	)	$	(2,713,668	)	$	(2,245,907	)	$	(8,307,636	)	$	(434,126	)

1

Includes cumulative appreciation/depreciation on financial futures contracts and centrally cleared swaps as reported in the Schedules of Investments. Only the current day’s variation margin is reported within the Statements of Assets and Liabilities.

2

Includes options purchased at value as reported in the Schedules of Investments.

The Effect of Derivative Financial Instruments in the Statements of Operations Six Months Ended April 30, 2012
	Net Realized Gain (Loss) From
	PSW			PSY				BPP		BTZ			BGT
Interest rate contracts:
Financial futures contracts	$	(358,576	)	$	(1,388,225	)	$	(497,124	)	$	(1,600,523	)		—
Options3		66,111			283,651			128,164			445,610			—
Swaps		(576,334	)		(2,479,278	)		(1,108,195	)		(3,405,203	)		—
Foreign currency exchange contracts:
Foreign currency exchange contracts		—			—			—			—		$	1,819,350
Credit contracts:
Swaps		(64,353	)		(272,297	)		(139,416	)		(515,188	)		—
Equity contracts:
Options3		26,635			111,851			54,518			185,697			—
Total	$	(906,517	)	$	(3,744,298	)	$	(1,562,053	)	$	(4,889,607	)	$	1,819,350
	Net Change in Unrealized Appreciation/Depreciation on
	PSW			PSY			BPP			BTZ			BGT
Interest rate contracts:
Financial futures contracts	$	(340,848	)	$	(1,407,481	)	$	(459,337	)	$	(1,926,895	)		—
Options3		41,296			187,017			99,516			403,296			—
Swaps		118,094			527,155			159,052			129,819			—
Foreign currency exchange contracts:
Foreign currency exchange contracts		1,037			6,642			—			—		$	288,994
Credit contracts:
Swaps		109,542			472,766			237,452			862,070			—
Equity contracts:
Options3		(179,647	)		(764,695	)		(370,025	)		(1,266,277	)		—
Total	$	(250,526	)	$	(978,596	)	$	(333,342	)	$	(1,797,987	)	$	288,994

3

Options purchased are included in the net realized gain (loss) from investments and net change in unrealized appreciation/depreciation on investments.

Notes to Financial Statements (continued)

For the six months ended April 30, 2012, the average quarterly balances of outstanding derivative financial instruments were as follows:

	PSW		PSY			BPP	BTZ		BGT
Financial futures contracts:
Average number of contracts purchased		16		69		59		196		—
Average number of contracts sold		168		650		233		801		—
Average notional value of contracts purchased	$	1,980,750	$	8,541,984	$	7,723,453	$	25,948,914		—
Average notional value of contracts sold	$	22,699,253	$	87,516,159	$	34,452,875	$	106,018,797		—
Foreign currency exchange contracts:
Average number of contracts-US dollars purchased		2		2		—		—		5
Average number of contracts-US dollars sold		—		—		—		—		2
Average US dollar amounts purchased	$	351,351	$	1,029,007		—		—	$	72,125,864
Average US dollar amounts sold		—		—		—		—	$	1,482,987
Options:
Average number of option contracts purchased		67		285		138		472		26
Average number of option contracts written		884		3,693		1,819		6,136		—
Average notional value of option contracts purchased	$	8,040,000	$	34,200,000	$	16,560,000	$	56,640,000	$	24,514
Average notional value of option contracts written	$	4,917,500	$	20,822,500	$	10,127,500	$	34,515,000		—
Average number of swaption contracts purchased		8		8		7		7		—
Average number of swaption contracts written		2		2		5		5		—
Average notional value of swaption contracts purchased	$	10,200,000	$	42,600,000	$	18,250,000	$	62,800,000		—
Average notional value of swaption contracts written	$	7,000,000	$	29,500,000	$	29,650,000	$	101,750,000		—
Credit default swaps:
Average number of contracts-buy protection		6		6		6		4		—
Average number of contracts-sell protection		5		5		5		5		—
Average notional value-buy protection	$	8,090,000	$	34,915,000	$	17,990,000	$	51,730,000		—
Average notional value-sell protection	$	2,839,884	$	12,410,665	$	5,819,788	$	20,371,766		—
Interest rate swaps:
Average number of contracts-pays fixed rate		5		5		5		4		—
Average number of contracts-receives fixed rate		2		2		1		2		—
Average notional value-pays fixed rate	$	8,100,000	$	35,000,000	$	18,650,000	$	53,750,000		—
Average notional value-receives fixed rate	$	1,300,000	$	5,850,000	$	2,100,000	$	15,650,000		—

3. Investment Advisory Agreement and Other Transactions with Affiliates:

As of April 30, 2012, the PNC Financial Services Group, Inc. ("PNC") and Barclays Bank PLC ("Barclays") are the largest stockholders of BlackRock, Inc. ("BlackRock"). Due to the ownership structure, PNC is an affiliate for 1940 Act purposes, but Barclays is not.

Each Fund entered into an Investment Advisory Agreement with BlackRock Advisors, LLC (the “Manager”), the Funds' investment advisor, an indirect, wholly owned subsidiary of BlackRock, to provide investment advisory and administration services. The Manager is responsible for the management of each Fund's portfolio and provides the necessary personnel, facilities, equipment and certain other services necessary to the operations of each Fund. For such services, each Fund pays the Manager a monthly fee at the following annual rates of each Fund’s average daily (average weekly for BPP, BTZ and BGT) net assets (including any assets attributable to borrowings) as follows:

PSW	0.60	%
PSY	0.60	%
BPP	0.65	%
BTZ	0.65	%
BGT	0.75	%

The Manager voluntarily agreed to waive a portion of the investment advisory fees or other expenses on BGT as a percentage of its average weekly net assets (including any assets attributable to borrowings) minus the sum of liabilities (other than borrowings representing financial leverage) by 0.05% for the period September 1, 2011 to August 31, 2012. For the six months ended April 30, 2012, the Manager waived $392, which is included in fees waived by advisor in the Statements of Operations.

The Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees each Fund pays to the Manager indirectly through its investment in affiliated money market funds. However, the Manager does not waive its investment advisory fees by the amount of investment advisory fees paid in connection with each Fund's investment in other affiliated investment companies, if any. These amounts are included in fees waived by advisor in the Statements of Operations. For the six months ended April 30, 2012, the amounts waived were as follows:

PSW	$	491
PSY	$	1,276
BPP	$	772
BTZ	$	1,945
BGT	$	332

The Manager provides investment management and other services to the Taxable Subsidiary. The Manager does not receive separate compensation from the Taxable Subsidiary for providing investment management or administrative services. However, the Fund pays the Manager based on the Fund’s net assets, which includes the assets of the Taxable Subsidiary.

The Manager entered into a sub-advisory agreement with BlackRock Financial Management, Inc. ("BFM"), an affiliate of the Manager. The Manager pays BFM for services it provides, a monthly fee that is a percentage of the investment advisory fees paid by each Fund to the Manager.

Certain officers and/or Directors of the Funds are officers and/or directors of BlackRock or its affiliates. The Funds reimburse the Manager for compensation paid to the Funds' Chief Compliance Officer.

Notes to Financial Statements (continued)

4. Investments:

Purchases and sales of investments including paydowns and payups, excluding short-term securities and US government securities for the six months ended April 30, 2012, were as follows:

	Purchases		Sales
PSW	$	23,218,848	$	34,001,374
PSY	$	100,161,146	$	138,042,751
BPP	$	43,854,009	$	61,164,086
BTZ	$	163,512,893	$	219,531,092
BGT	$	159,291,732	$	133,965,223

Purchases and sales of US government securities for the six months ended April 30, 2012, were as follows:

	Purchases			Sales
PSW	$	5,304,724	$	4,200,371
PSY	$	19,942,739	$	16,801,794
BPP	$	9,397,688	$	9,351,402
BTZ	$	35,594,950	$	29,384,746

Transactions in options written for the six months ended April 30, 2012 were as follows:

	Calls									Puts
	Contracts		Notional (000)			Premiums Received				Contracts		Notional (000)			Premiums Received
PSW
Outstanding options, beginning of period	—		$	1,800		$	64,800			—		$	1,800		$	64,800
Options written	3,333			1,100			132,945			67			11,500			301,372
Options exercised	—			—			—			—			—			—
Options expired	—			—			—			—			(1,800	)		(64,800	)
Options closed	(1,633	)		(2,900	)		(178,535	)		(67	)		(9,100	)		(254,572	)
Outstanding options, end of period	1,700			—		$	19,210			—		$	2,400		$	46,800
PSY
Outstanding options, beginning of period	—		$	7,700		$	277,200			—		$	7,700		$	277,200
Options written	14,443			4,900			582,663			285			48,500			1,280,613
Options excerised	—			—			—			—			—			—
Options expired	—			—			—			—			(7,700	)		(277,200	)
Options closed	(7,343	)		(12,600	)		(779,633	)		(285	)		(38,900	)		(1,093,413	)
Outstanding options, end of period	7,100			—		$	80,230			—		$	9,600		$	187,200
BPP
Outstanding options, beginning of period	—		$	8,700		$	425,700			—		$	8,700		$	425,700
Options written	6,969			—			164,701			138			31,900			552,940
Options exercised	—			—			—			—			(3,700	)		(133,200	)
Options expired	—			—			—			—			—			—
Options closed	(3,469	)		(3,700	)		(258,351	)		(138	)		(16,500	)		(413,020	)
Outstanding options, end of period	3,500		$	5,000		$	332,050			—		$	20,400		$	432,420
BTZ
Outstanding options, beginning of period	—		$	30,000		$	1,461,850			—		$	30,000		$	1,461,850
Options written	23,836			—			563,326			472			109,500			1,897,460
Options exercised	—			—			—			—			—			—
Options expired	—			—			—			—			(13,000	)		(467,350	)
Options closed	(12,036	)		(13,000	)		(897,336	)		(472	)		(56,500	)		(1,413,410	)
Outstanding options, end of period	11,800		$	17,000		$	1,127,840			—		$	70,000		$	1,478,550

Notes to Financial Statements (continued)

5. Income Tax Information:

As of October 31, 2011, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:

Expires October 31,	PSW		PSY		BPP		BTZ		BGT
2012	$	10,243,141	$	62,733,648		—		—		—
2013		5,058,900		17,911,331		—		—		—
2014		8,481,628		12,145,117		—		—		—
2015		6,724,694		19,582,978	$	18,184,893	$	49,741,712	$	3,268,804
2016		40,232,230		140,413,242		58,197,929		113,355,213		24,616,531
2017		55,825,534		194,970,854		108,996,120		223,939,227		45,385,443
2018		4,498,024		37,285,625		15,245,888		15,223,841		16,526,601
2019		2,118,889		11,730,113		2,683,880		10,353,275		406,589
Total	$	133,183,040	$	496,772,908	$	203,308,710	$	412,613,268	$	90,203,968

Under the recently enacted Regulated Investment Company Modernization Act of 2010, capital losses incurred by the Fund after October 31, 2011 will not be subject to expiration. In addition, any such losses must be utilized prior to the losses incurred in pre-enactment taxable years.

As of April 30, 2012, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

	PSW			PSY			BPP			BTZ			BGT
Tax cost	$	144,062,731		$	617,375,114		$	291,188,282		$	983,935,275		$	487,454,847
Gross unrealized appreciation	$	10,316,219		$	42,243,469		$	19,031,366		$	57,977,988		$	10,646,677
Gross unrealized depreciation		(1,714,543	)		(10,256,188	)		(8,374,221	)		(22,412,823	)		(12,442,061	)
Net unrealized appreciation (depreciation)	$	8,601,676		$	31,987,281		$	10,657,145		$	35,565,165		$	(1,795,384	)

6. Borrowings:

BGT entered into a senior committed secured, 364-day revolving line of credit and a separate security agreement (the “SSB Agreement”) with State Street Bank and Trust Company (“SSB”). The Fund has granted a security interest in substantially all of its assets to SSB. The SSB Agreement provides the Fund with a maximum commitment of $172.2 million.

Advances will be made by SSB to the Fund, at the Fund’s option of (a) the higher of (i) 0.75% above the Fed Funds rate and (ii) 0.75% above the Overnight LIBOR or (b) 0.75% above 7-day, 30-day, 60-day or 90-day LIBOR.

In addition, the Fund pays a facility fee and a commitment fee based upon SSB’s total commitment to the Fund. The fees associated with each of the agreements are included in the Statements of Operations as borrowing costs. Advances to the Fund as of April 30, 2012 are shown in the Statements of Assets and Liabilities as loan payable. Based on the short-term nature of the borrowings under the line of credit and the variable interest rate, the carrying amount of the borrowings approximates fair value.

The SSB Agreement was renewed for 364 days under substantially the same terms effective March 2, 2012. For the six months ended April 30, 2012, the daily weighted average interest rate was 0.95%.

BGT may not declare dividends or make other distributions on shares or purchase any such shares if, at the time of the declaration, distribution or purchase, asset coverage with respect to the outstanding short-term borrowings is less than 300%.

For the six months ended April 30, 2012, the daily weighted average interest rates for Funds with borrowings from reverse repurchase agreements were as follows:

PSW	0.38	%
PSY	0.37	%
BPP	0.37	%
BTZ	0.35	%

7. Commitments:

The Funds may invest in floating rate loan interests. In connection with these investments, the Funds may also enter into unfunded floating rate loan interests and bridge loan commitments (“commitments”). Bridge loan commitments may obligate the Funds to furnish temporary financing to a borrower until permanent financing can be arranged. At April 30, 2012, BGT had outstanding bridge loan commitments of $3,765,000. In connection with either of these commitments, the Funds earn a commitment fee, typically set as a percentage of the commitment amount. Such fee income, which is included in interest income in the Statements of Operations, is recognized ratably over the commitment period. The unrecognized commitment fee income is recorded on the Statements of Assets and Liabilities as deferred income. Unfunded floating rate loan interests are marked-to-market daily, and any unrealized appreciation or depreciation is included in the Statements of Assets and Liabilities and Statements of Operations. As of April 30, 2012, BGT had the following unfunded floating rate loan interests:

Borrower	Unfunded Floating Rate Loan Interest		Value of Underlying Floating Rate Loan Interest		Unrealized Appreciation
Tronox Worldwide LLC,
Delayed Draw Term Loan	$	465,000	$	465,646	$	646

Notes to Financial Statements (continued)

8. Concentration, Market and Credit Risk:

As of April 30, 2012, PSW, PSY, BPP and BTZ invested a significant portion of their assets in securities in the financials sector, whereas BGT invested a significant portion of its assets in the media sector. Changes in economic conditions affecting the financials and media sectors would have a greater impact on the Funds and could affect the value, income and/or liquidity of positions in such securities.

In the normal course of business, the Funds invest in securities and enter into transactions where risks exist due to fluctuations in the market (market risk) or failure of the issuer of a security to meet all its obligations (issuer credit risk). The value of securities held by the Funds may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Funds; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations. Similar to issuer credit risk, the Funds may be exposed to counter-party credit risk, or the risk that an entity with which the Funds have unsettled or open transactions may fail to or be unable to perform on its commitments. The Funds manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Funds' exposure to market, issuer and counterparty credit risks with respect to these financial assets is generally approximated by their value recorded in the Funds' Statements of Assets and Liabilities, less any collateral held by the Funds.

9. Capital Share Transactions:

PSW and PSY are each authorized to issue 200 million of $0.10 par value shares, all of which were initially classified as Common Shares. Each Board is authorized, however, to reclassify any unissued Common Shares to Preferred Shares without approval of Common Shareholders. There are an unlimited number of $0.001 par value shares authorized for BPP, BTZ and BGT, which may be issued as either Common Shares or Preferred Shares.

Common Shares

For the periods shown, shares issued and outstanding increased by the following amounts as a result of dividend reinvestment:

	Six Months Ended April 30, 2012	Year Ended October 31, 2011
BGT	6,757	39,329

Shares issued and outstanding remained constant for the six months ended April 30, 2012 and the year ended October 31, 2011 for PSW, PSY, BPP and BTZ, respectively.

Preferred Shares

During the year ended October 31, 2011, the Funds announced the following redemptions of Preferred Shares at a price of $25,000 per share plus any accrued and unpaid dividends through the redemption date:

	Series		Redemption Date	Shares Redeemed	Aggregate Principal
PSW	M7		12/07/10	805	$	20,125,000
	T7		12/08/10	805	$	20,125,000
PSY	M7		1/04/11	861	$	21,525,000
	T7		1/05/11	861	$	21,525,000
	W7		1/06/11	861	$	21,525,000
	R7		1/07/11	861	$	21,525,000
	F7		1/10/11	861	$	21,525,000
	W28		1/13/11	1,228	$	30,700,000
	R28		1/28/11	1,228	$	30,700,000
BPP	T7		12/08/10	939	$	23,475,000
	W7		12/09/10	939	$	23,475,000
	R7		12/10/10	939	$	23,475,000
BTZ	T7		1/05/11	2,310	$	57,750,000
	W7		1/06/11	2,310	$	57,750,000
	R7		1/07/11	2,310	$	57,750,000
	F7		1/10/11	2,310	$	57,750,000
BGT	T7		12/08/10	784	$	19,600,000
	W7		12/09/10	784	$	19,600,000
	R7		12/10/10	784	$	19,600,000

All of the Funds, except BGT, financed the Preferred Share redemptions with cash received from reverse repurchase agreements. BGT financed the Preferred Share redemption with cash received from a line of credit.

The Preferred Shares were redeemable at the option of each Fund, in whole or in part, on any dividend payment date at their liquidation preference per share plus any accumulated and unpaid dividends whether or not declared. The Preferred Shares were also subject to mandatory redemption at their liquidation preference plus any accumulated and unpaid dividends, whether or not declared, if certain requirements relating to the composition of the assets and liabilities of a Fund, as set forth in each Fund’s Articles of Supplementary (the “Governing Instrument”) are not satisfied.

The holders of Preferred Shares had voting rights equal to the holders of Common Shares (one vote per share) and would vote together with holders of Common Shares (one vote per share) as a single class. However, the holders of Preferred Shares, voting as a separate class, were also entitled to elect two Directors for each Fund. In addition, the 1940 Act requires that along with approval by shareholders that might otherwise be required, the approval of the holders of a majority of any outstanding Preferred Shares, voting separately as a class would be required to (a) adopt any plan of reorganization that would adversely affect the Preferred Shares, (b) change a Fund’s sub-classification as a closed-end investment company or change its fundamental investment restrictions or (c) change its business so as to cease to be an investment company.

Notes to Financial Statements (concluded)

10. Subsequent Events:

Management’s evaluation of the impact of all subsequent events on the Funds’ financial statements was completed through the date the financial statements were issued and the following items were noted:

The Funds paid a net investment income dividend in the following amounts per share on May 31, 2012 to Common Shareholders on record on May 15, 2012:

	Common Dividend Per Share
PSW	$0.0595
PSY	$0.0610
BPP	$0.0635
BTZ	$0.0785
BGT	$0.0775

Additionally, the Funds declared a net investment income dividend on June 1, 2012 payable to Common Shareholders of record on June 15, 2012 for the same amounts noted above.

Officers and Directors¹

Additional Information

Dividend Policy

The Funds’ dividend policy is to distribute all or a portion of their net investment income to their shareholders on a monthly basis. In order to provide shareholders with a more stable level of dividend distributions, the Funds may at times pay out less than the entire amount of net investment income earned in any particular month and may at times in any particular month pay out such accumulated but undistributed income in addition to net investment income earned in that month. As a result, the dividends paid by the Funds for any particular month may be more or less than the amount of net investment income earned by the Funds during such month. The Funds’ current accumulated but undistributed net investment income, if any, is disclosed in the Statements of Assets and Liabilities, which comprises part of the financial information included in this report.

General Information

On July 29, 2010, the Manager announced that a derivative complaint had been filed by Roy Curbow and other plaintiffs, including shareholders of PSY and BTZ on July 27, 2010 in the Supreme Court of the State of New York, New York County. The complaint names the Manager, BlackRock, Inc. and certain of the directors, officers and portfolio managers of PSY and BTZ as defendants. The complaint alleges, among other things, that the parties named in the complaint breached fiduciary duties owed to PSY and BTZ and their Common Shareholders by redeeming auction-market preferred shares, auction rate preferred securities, auction preferred shares and auction rate securities (collectively, “AMPS”) at their liquidation preference. The complaint seeks unspecified damages for losses purportedly suffered by PSY and BTZ as a result of the prior redemptions and injunctive relief preventing PSY and BTZ from redeeming AMPS at their liquidation preference in the future. On March 15, 2012, the Supreme Court of the State of New York, New York County entered an order consolidating the above-referenced derivative complaint with another derivative complaint, containing almost identical allegations, already pending in that court. The court on March 15, 2012, also granted plaintiffs permission to file an amended complaint. On April 16, 2012, the plaintiffs filed a Consolidated Shareholder Derivative Complaint. The Manager, BlackRock, Inc. and the other defendants named in the complaint believe that the claims asserted in the complaint are without merit and intend to vigorously defend themselves in the litigation.

On November 15, 2010, the Manager announced the intention to redeem all of the outstanding AMPS issued by five of its taxable closed-end funds: PSW, PSY, BPP, BTZ, and BGT. All such outstanding AMPS were subsequently redeemed. The redemptions encompass all remaining taxable AMPS issued by BlackRock closed-end funds and total approximately $569 million. The AMPS were redeemed with available cash or proceeds from reverse repurchase agreement financing or a credit facility on a fund-by-fund basis and, in each case, the refinancing resulted in a lower cost of financing for each fund under then-existing market conditions.

In exchange for the shareholder plaintiff's agreement to withdraw a previously filed motion for preliminary injunction enjoining any further redemptions of AMPS, each of these funds agreed to provide the plaintiffs in those actions with 30 days prior notice of any additional redemptions. On November 24, 2010, the Manager announced that counsel for the plaintiffs filed a motion for a preliminary injunction enjoining PSY and BTZ from redeeming outstanding AMPS pending final resolution of the underlying shareholder derivative suit. On December 23, 2010, the court denied plaintiffs’ motion for a preliminary injunction.

On June 3, 2011, a putative class action lawsuit was brought by Hinda Wachtel against PSY, certain former and current Directors of PSY, BlackRock, Inc., and certain other financial institutions in the Circuit Court for Baltimore City. The complaint alleges that the redemptions at par of certain AMPS issued by PSY constituted a breach of the fiduciary duties purportedly owed to the common shareholders of PSY; that PSY allegedly aided and abetted breaches of fiduciary duties by the Directors; and that PSY, BlackRock, Inc., and others were unjustly enriched. The Complaint requests a declaratory judgment that PSY aided and abetted breaches of fiduciary duties by the Directors and that PSY, BlackRock, Inc. and certain other financial institutions were unjustly enriched; seeks to enjoin BlackRock, Inc. from serving as investment adviser to PSY or otherwise earning fees for services rendered to PSY; and claims unquantified damages, attorneys' fees, interest and punitive damages. On June 5, 2012, the plaintiff voluntarily dismissed the complaint without prejudice.

Additional Information (continued)

General Information (continued)

On June 9, 2011, a putative class action lawsuit was brought by Sydell Protas against BTZ, certain former and current Directors of BTZ, BlackRock, Inc., and certain other financial institutions, in the Court of Chancery of the State of Delaware. On August 31, 2011, Plaintiff filed an "Amended Verified Derivative and Class Action Complaint" (the "Amended Complaint"), which purports to assert certain of the claims derivatively on behalf of BTZ and certain of the claims directly as class claims. The Amended Complaint alleges that the redemptions at par of certain AMPS issued by BTZ constituted a breach of the fiduciary duties purportedly owed to the common shareholders of BTZ; that BTZ allegedly aided and abetted breaches of fiduciary duties by the Directors; and that BTZ, BlackRock, Inc., and others were unjustly enriched. The Amended Complaint requests a declaratory judgment that BTZ aided and abetted breaches of fiduciary duties by the Directors and that BTZ, BlackRock, Inc. and certain other financial institutions were unjustly enriched; seeks to enjoin BlackRock, Inc. from serving as investment adviser to BTZ or otherwise earning fees for services rendered to BTZ; and claims unquantified damages, attorneys' fees, interest and punitive damages. On May 4, 2012, the court dismissed the Amended Complaint with prejudice. On June 4, 2012, the Plaintiff appealed the Delaware Chancery Courts decision to the Delaware Supreme Court.

On February 9, 2012, the Board of BPP approved the removal of BPP’s non-fundamental investment policy requiring that swaps may only be entered into with counterparties that are rated either A or A-1 or better by S&P or Fitch, or A or P-1 or better by Moody's. As a result of this investment policy change, BPP may enter into swaps with any counterparties approved by the Manager. Such counterparties may entail a greater degree of credit risk or risk of nonperformance than counterparties rated either A or A-1 or better by S&P or Fitch, or A or P-1 or better by Moody's. The Manager will seek to minimize BPP’s exposure to counterparty risk by entering into swaps with counterparties the Manager believes to be creditworthy at the time they enter into such transactions. To the extent BPP engages in swaps, shareholders of BPP will be dependent on the analytical ability of the Manager to evaluate the credit quality of counterparties to such transactions. In the event of the insolvency of a counterparty, BPP may not be able to recover its assets, in full or at all, during the insolvency process. In addition, counterparties to investments may have no obligation to make markets in such investments and may have the ability to apply essentially discretionary margin and credit requirements. The foregoing investment policy amendment will not alter BPP’s investment objective.

The Funds do not make available copies of their Statements of Additional Information because the Funds’ shares are not continuously offered, which means that the Statement of Additional Information of each Fund has not been updated after completion of the respective Fund’s offerings and the information contained in each Fund’s Statement of Additional Information may have become outdated.

During the period, except as noted above, there were no material changes in the Funds’ investment objectives or policies or to the Funds’ charters or by-laws that would delay or prevent a change of control of the Funds that were not approved by the shareholders or in the principal risk factors associated with investment in the Funds. There have been no changes in the persons who are primarily responsible for the day-to-day management of the Funds’ portfolios.

Quarterly performance, semi-annual and annual reports and other information regarding the Funds may be found on BlackRock’s website, which can be accessed at http://www.blackrock.com. This reference to BlackRock’s website is intended to allow investors public access to information regarding the Funds and does not, and is not intended to, incorporate BlackRock’s website in this report.

Electronic Delivery

Electronic copies of most financial reports are available on the Funds’ web-sites or shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual reports by enrolling in the Funds’ electronic delivery program.

Shareholders Who Hold Accounts with Investment Advisors, Banks or Brokerages:

Please contact your financial advisor to enroll. Please note that not all investment advisors, banks or brokerages may offer this service.

Householding

The Funds will mail only one copy of shareholder documents, including annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Funds at (800) 441-7762.

Additional Information (continued)

General Information (concluded)

Availability of Quarterly Schedule of Investments

The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the SEC’s website at http://www.sec.gov and may also be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on how to access documents on the SEC’s website without charge may be obtained by calling (800) SEC-0330. The Funds’ Forms N-Q may also be obtained upon request and without charge by calling (800) 441-7762.

Availability of Proxy Voting Policies and Procedures

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available (1) without charge, upon request, by calling (800) 441-7762; (2) at http://www.blackrock.com; and (3) on the SEC’s website at http://www.sec.gov.

Availability of Proxy Voting Record

Information about how the Funds voted proxies relating to securities held in the Funds’ portfolios during the most recent 12-month period ended June 30 is available upon request and without charge (1) at http://www.blackrock.com or by calling (800) 441-7762 and (2) on the SEC’s website at http://www.sec.gov.

Availability of Fund Updates

BlackRock will update performance and certain other data for the Funds on a monthly basis on its website in the “Closed-end Funds” section of http://www.blackrock.com. Investors and others are advised to periodically check the website for updated performance information and the release of other material information about the Funds. This reference to BlackRock’s website is intended to allow investors public access to information regarding the Funds and does not, and is not intended to, incorporate BlackRock’s website in this report.

Section 19(a) Notices

The reported amounts and sources of distributions are estimates and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon each Fund’s investment experience during the year and may be subject to changes based on the tax regulations. Each Fund will provide a Form 1099-DIV each calendar year that will explain the character of these dividends and distributions for federal income tax purposes.

April 30, 2012

	Total Cumulative Distributions for the Fiscal Year-to-Date							% Breakdown of the Total Cumulative Distributions for the Fiscal Year-to-Date
	Net Investment Income		Net Realized Capital Gains	Return of Capital	Total Per Common Share			Net Investment Income		Net Realized Capital Gains	Return of Capital	Total Per Common Share
BTZ		$0.469000	—	—		$0.469000		100	%	—	—	100	%

Additional Information (concluded)

BlackRock Privacy Principles

BlackRock is committed to maintaining the privacy of its current and former fund investors and individual clients (collectively, “Clients”) and to safeguarding their non-public personal information. The following information is provided to help you understand what personal information BlackRock collects, how we protect that information and why in certain cases we share such information with select parties.

If you are located in a jurisdiction where specific laws, rules or regulations require BlackRock to provide you with additional or different privacy-related rights beyond what is set forth below, then BlackRock will comply with those specific laws, rules or regulations.

BlackRock obtains or verifies personal non-public information from and about you from different sources, including the following: (i) information we receive from you or, if applicable, your financial intermediary, on applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our websites.

BlackRock does not sell or disclose to non-affiliated third parties any non-public personal information about its Clients, except as permitted by law or as is necessary to respond to regulatory requests or to service Client accounts. These non-affiliated third parties are required to protect the confidentiality and security of this information and to use it only for its intended purpose.

We may share information with our affiliates to service your account or to provide you with information about other BlackRock products or services that may be of interest to you. In addition, BlackRock restricts access to non-public personal information about its Clients to those BlackRock employees with a legitimate business need for the information. BlackRock maintains physical, electronic and procedural safeguards that are designed to protect the non-public personal information of its Clients, including procedures relating to the proper storage and disposal of such information.

This report is transmitted to shareholders only. It is not a prospectus. Past performance results shown in this report should not be considered a representation of future performance. The Funds leverage their Common Shares, which creates risk for Common Shareholders, including the likelihood of greater volatility of net asset value and market price of Common Shares, and the risk that fluctuations in short-term interest rates may reduce the Common Shares’ yield. Statements and other information herein are as dated and are subject to change.

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