btzfinal.htm - Generated by SEC Publisher for SEC Filing

UNITEDSTATES
SECURITIESANDEXCHANGECOMMISSION
Washington,D.C.20549

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number 811-21972

Name of Fund: BlackRock Preferred and Equity Advantage Trust (BTZ)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: Donald C. Burke, Chief Executive Officer, BlackRock
Preferred and Equity Advantage Trust, 800 Scudders Mill Road, Plainsboro, NJ, 08536.
Mailing address: P.O. Box 9011, Princeton, NJ, 08543-9011

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

Date of fiscal year end: 10/31/2009

Date of reporting period: 04/30/2009

Item 1 – Report to Stockholders


EQUITIES FIXED INCOME REAL ESTATE LIQUIDITY ALTERNATIVES BLACKROCK SOLUTIONS

Semi-Annual Report

APRIL 30, 2009 | (UNAUDITED)

BlackRock Broad Investment Grade 2009 Term Trust Inc. (BCT)

BlackRock Enhanced Capital and Income Fund, Inc. (CII)

BlackRock Floating Rate Income Trust (BGT)

BlackRock Preferred and Corporate Income Strategies Fund, Inc. (PSW)

BlackRock Preferred and Equity Advantage Trust (BTZ)

BlackRock Preferred Income Strategies Fund, Inc. (PSY)

BlackRock Preferred Opportunity Trust (BPP)


NOT FDIC INSURED

MAY LOSE VALUE

NO BANK GUARANTEE


Table of Contents   
  Page 
Dear Shareholder  3 
Semi-Annual Report:   
Fund Summaries  4 
The Benefits and Risks of Leveraging  11 
Derivative Instruments  11 
Financial Statements:   
   Schedules of Investments  12 
   Statements of Assets and Liabilities  39 
   Statements of Operations  41 
   Statements of Changes in Net Assets  43 
   Statements of Cash Flows  45 
Financial Highlights  46 
Notes to Financial Statements  53 
Officers and Directors/Trustees  63 
Additional Information  65 

Section 19 Disclosure

BlackRock Enhanced Capital and Income Fund, Inc. (CII) and BlackRock
Preferred and Equity Advantage Trust (BTZ) (each a “Fund” and collectively,
the “Funds”), acting pursuant to a Securities and Exchange Commission
(“SEC”) exemptive order and with the approval of each Fund’s Board of
Directors/Trustees (the “Board”), each have adopted a level distribution
plan (the “Plan”) that is consistent with its investment objectives and poli-
cies. In adopting the Plan, each Fund employs either a managed distribution
or option over-write policy to support a level distribution of income, capital
gains and/or return of capital. In accordance with the Plans, the Funds cur-
rently distribute the following fixed amounts per share:

  Amount Per  Distribution 
Exchange Symbol  Common Share  Frequency 
CII  $0.485  Quarterly 
BTZ  $0.100  Monthly 

The fixed amounts distributed per share are subject to change at the
discretion of each Fund’s Board. Under its Plan, each Fund will distribute all
available investment income to its shareholders, consistent with its primary
investment objectives and as required by the Internal Revenue Code of
1986, as amended (the “Code”). If sufficient investment income is not
available on a monthly/quarterly basis, the Funds will distribute long-term
capital gains and/or return of capital to shareholders in order to maintain
a level distribution. Each monthly/quarterly distribution to shareholders is
expected to be at the fixed amount established by the Board, except for
extraordinary distributions and potential distribution rate increases or
decreases to enable the Funds to comply with the distribution requirements
imposed by the Code.

Shareholders should not draw any conclusions about the Fund’s investment
performance from the amount of these distributions or from the terms of the
Plan. Each Fund’s total return performance on net asset value is presented
in its financial highlights table.

The Board may amend, suspend or terminate a Fund’s Plan without prior
notice if it deems such actions to be in the best interests of the Fund or
its shareholders. The suspension or termination of the Plan could have
the effect of creating a trading discount (if the Fund’s stock is trading at or
above net asset value) or widening an existing trading discount. The Funds
are subject to risks that could have an adverse impact on their ability to
maintain a level distribution. Examples of potential risks include, but are not
limited to, economic downturns impacting the markets, decreased market
volatility, companies suspending or decreasing corporate dividend distribu-
tions and changes in the Code. Please refer to each Fund’s prospectus for a
more complete description of its risks.

Please refer to Additional Information for a cumulative summary of the
Section 19(a) notices for each Fund’s current fiscal period. Section 19(a)
notices for the Funds, as applicable, are available on the BlackRock website

www.blackrock.com.

2 SEMI-ANNUAL REPORT

APRIL 30, 2009


Dear Shareholder

The past 12 months reveal a tale of two markets — one of investor pessimism and decided weakness, and another of optimism and some early signs of

recovery. The majority of the past year was characterized by the former as the global financial crisis erupted into the worst recession in decades. Economic

data were uniformly poor and daily headlines recounted the downfalls of storied financial firms, volatile swings in global financial markets, and monumental

government actions that included widespread (and globally coordinated) monetary and quantitative easing by central banks and large-scale fiscal stimuli.

Sentiment improved noticeably in March 2009, however, on the back of new program announcements by the Treasury and Federal Reserve Board, as well

as signs of improved economic performance, such as in retail sales, consumer confidence and select areas of the housing market.

Against this backdrop, US equities contended with unprecedented levels of volatility, posting steep declines early, and then pared some of those losses in

March and April. The experience in international markets was similar to that in the United States, though there was a marked divergence in regional perform-

ance. Notably, emerging economies, which lagged most developed regions through the downturn, were among the market leaders during the late-period rally.

In fixed income markets, while risk aversion remained a dominant theme overall, relatively attractive yields and distressed valuations, alongside a more

favorable macro environment, eventually captured investor attention, leading to a modest recovery in non-Treasury assets. A notable example from the

opposite end of the credit spectrum was the high yield sector, which generally outperformed in the first four months of 2009 after extraordinary challenges

and severe underperformance last year. At the same time, the new year ushered in a return to normalcy for the tax-exempt market, which had registered one

of its worst years on record in 2008.

All told, the major benchmark indexes posted mixed results for the current reporting period, reflective of a bifurcated market.   
Total Returns as of April 30, 2009  6-month  12-month 
US equities (S&P 500 Index)   (8.53)%  (35.31)% 
Small cap US equities (Russell 2000 Index)  (8.40)  (30.74) 
International equities (MSCI Europe, Australasia, Far East Index)  (2.64)  (42.76) 
US Treasury securities (Merrill Lynch 10-Year US Treasury Index)  8.98  9.30 
Taxable fixed income (Barclays Capital US Aggregate Bond Index)  7.74  3.84 
Tax-exempt fixed income (Barclays Capital Municipal Bond Index)  8.20  3.11 
High yield bonds (Barclays Capital US Corporate High Yield 2% Issuer Capped Index)   16.39  (12.55) 

Past performance is no guarantee of future results. Index performance shown for illustrative purposes only. You cannot invest directly in an index.

On June 16, 2009, BlackRock, Inc. announced that it received written notice from Barclays PLC (“Barclays”) in which Barclays’ Board of Directors had

accepted BlackRock’s offer to acquire Barclays Global Investors (“BGI”). Barclays also notified BlackRock that its Board will recommend the transaction to

Barclays’ shareholders for approval at a special meeting to be held in early August 2009. The combination of BlackRock and BGI will bring together market

leaders in active and index strategies to create the preeminent asset management firm. The transaction is expected to close in the fourth quarter 2009

following approval by Barclays’ shareholders, the receipt of client consents and regulatory approvals, and satisfaction of customary closing conditions.

Through periods of market turbulence, as ever, BlackRock’s full resources are dedicated to the management of our clients’ assets. We thank you for entrusting

BlackRock with your investments and look forward to continuing to serve you in the months and years ahead.

Sincerely,


THIS PAGE NOT PART OF YOUR FUND REPORT

3


Fund Summary as of April 30, 2009 BlackRock Broad Investment Grade 2009 Term Trust Inc.

Investment Objective

BlackRock Broad Investment Grade 2009 Term Trust Inc. (BCT) (the “Fund”) seeks to manage a portfolio of fixed income securities that will return $15 per
share (the initial public offering price per share) to investors on or about December 31, 2009 while providing high monthly income. No assurance can be
given that the Fund’s investment objective will be achieved. As discussed in the performance commentary below, it is expected the Fund will return less than
$15 per share. See Note 1 of the Notes to Financial Statements (“Organization and Significant Accounting Policies”).

Performance

For the six months ended April 30, 2009, the Fund returned (10.48)% based on market price and (9.84)% based on net asset value (NAV). For the same
period, the closed-end Lipper US Mortgage Funds category posted an average return of (1.09)% on a market price basis and (1.40)% on a NAV basis. All
returns reflect reinvestment of dividends. The Fund’s discount to NAV, which widened during the period, accounts for the difference between performance
based on price and performance based on NAV. On June 3, 2009, the investment advisor and the Board of Trustees (the “Board”) of the Fund announced
that the Fund will make its final liquidating distribution on or about October 30, 2009, instead of December 31, 2009. Based on the Fund’s net assets,
prolonged adverse market conditions and investment opportunities currently available to the Fund, BlackRock and the Board believe it is in the investors’
best interest to liquidate the Fund in advance of its scheduled date. At final liquidation, the Fund’s shareholders will receive the net asset value of the Fund
at that time in one or more liquidating distributions, which is expected to be less than the Fund’s initial offering price. The Fund remains focused on its
December 2009 maturity and is positioned accordingly. During the six months, we maintained the Fund’s allocation to agency debt and corporate debt,
as well as to mortgage-backed securities (MBS). The exposure to MBS detracted from performance, while the allocation to corporates was beneficial. The
Fund maintained moderate levels of cash during the period, which did not signifcantly impact performance.

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.

Fund Information               
  Symbol on American Stock Exchange            BCT 
  Initial Offering Date                June 17, 1993 
  Yield on Closing Market Price as of April 30, 2009 ($11.19)1         0.00% 
  Current Monthly Distribution per share2            $0.00 
  Current Annualized Distribution per share2          $0.00 
  Leverage as of April 30, 20093            6% 
     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 Effective November 2008, the Fund has discontinued its monthly distribution in an effort to meet its termination target of $15.00.   
     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 borrowing that may be outstanding) minus the sum of accrued liabilities (other than debt representing financial leverage). 
         For a discussion of leveraging techniques utilized by the Fund, please see the Benefits and Risks of Leveraging on page 11.   
  The table below summarizes the changes in the Fund’s market price and net asset value per share:     
                           4/30/09  10/31/08  Change  High  Low 
  Market Price                         $11.19  $12.50  (10.48)%  $13.05     $10.95 
  Net Asset Value                         $11.54  $12.80  (9.84)%  $12.80     $11.29 
  The following chart shows the portfolio composition of the Fund’s total investments:       
       Portfolio Composition             
    4/30/09  10/31/08         
  U.S. Government Sponsored Agency             
     Obligations  71%  66%         
  Corporate Bonds  8  5         
  Short-Term Securities  7  9         
  Non-U.S. Government Sponsored             
     Agency Mortgage-Backed             
     Securities  7  10         
  U.S. Government Sponsored Agency             
     Mortgage-Backed Securities —             
     Collateralized Mortgage             
     Obligations  3  6         
  Taxable Municipal Bonds  3  3         
  U.S. Government Sponsored Agency             
     Mortgage-Backed Securities  1  1         

4 SEMI-ANNUAL REPORT

APRIL 30, 2009


Fund Summary as of April 30, 2009 BlackRock Enhanced Capital and Income Fund, Inc.

Investment Objective

BlackRock Enhanced Capital and Income Fund, Inc. (CII) (the “Fund”) seeks to provide investors with a combination of current income and capital
appreciation. The Fund seeks to achieve its investment objective by investing primarily in a diversified portfolio of common stocks in an attempt to
generate current income and by employing a strategy of writing (selling) call options on equity indexes in an attempt to generate gains from option
premiums primarily on the S&P 500 Index. No assurance can be given that the Fund’s investment objective will be achieved.

The Board recently approved a change to the Fund’s option writing policy. Please refer to page 65 in the General Information section.

Performance

For the six months ended April 30, 2009, the Fund returned 0.05% based on market price and 2.12% based on net asset value (NAV). For the same
period, the benchmark S&P 500 Citigroup Value Index returned (14.39)%. All returns reflect reinvestment of dividends. The Fund’s discount to NAV, which
widened during the period, accounts for the difference between performance based on price and performance based on NAV. The largest contributor to per-
formance was the Fund’s underweight exposure to the financials sector, which was a weak performer during the six months. Stock selection in healthcare,
energy and industrials also was strong. Key individual contributors in healthcare were Schering-Plough Corp. and Wyeth, while BJ Services Co., Exxon Mobil
Corp. and Halliburton Co. led within energy and industrials. The lack of ownership in General Electric Co. and Deere & Co. also was advantageous. The main
detractor from performance was stock selection in the consumer discretionary sector. Key laggards included General Mills, Inc. and Kimberly-Clark Corp.,
which posted weak returns during the period.

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.

Fund Information               
  Symbol on New York Stock Exchange            CII 
  Initial Offering Date          April 30, 2004 
  Yield on Closing Market Price as of April 30, 2009 ($11.38)1          17.05% 
  Current Quarterly Distribution per share2            $0.485 
  Current Annualized Distribution per share2            $1.940 
     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 is not constant and is subject to change.           
  The table below summarizes the changes in the Fund’s market price and net asset value per share:     
      4/30/09  10/31/08  Change  High  Low 
  Market Price    $11.38  $12.37   (8.00)%  $13.13  $ 7.92 
  Net Asset Value    $12.94  $13.78   (6.10)%  $14.37  $10.62 
  The following charts show the ten largest holdings and sector allocations as a percent of the Fund’s long-term investments: 
       Portfolio Information             
    Percent of          Percent of 
    Long-Term          Long-Term 
  Ten Largest Holdings  Investments         Sector Allocations      Investments 
  Exxon Mobil Corp.         4%         Information Technology      19% 
  The Travelers Cos., Inc.  4         Financials      16 
  Schering-Plough Corp.  4         Health Care      12 
  JPMorgan Chase & Co.  3         Energy        11 
  LSI Corp.  3         Consumer Staples      11 
  Xerox Corp.  3         Industrials      9 
  Qwest Communications International Inc.  3         Telecommunication Services    7 
  Kimberly-Clark Corp.  3         Consumer Discretionary      7 
  Bristol-Myers Squibb Co.  3         Utilities        4 
  Verizon Communications, Inc.  2         Materials        4 

SEMI-ANNUAL REPORT

APRIL 30, 2009

5


Fund Summary as of April 30, 2009 BlackRock Floating Rate Income Trust

Investment Objective

BlackRock Floating Rate Income Trust (BGT) (formerly BlackRock Global Floating Rate Income Trust) (the “Fund”) seeks to provide a high level of current
income and to seek the preservation of capital. The Fund seeks to achieve its objective by investing in a global portfolio of primarily floating and variable
rate securities. No assurance can be given that the Fund’s investment objective will be achieved.

Performance

For the six months ended April 30, 2009, the Fund returned 16.00% based on market price and 5.03% based on net asset value (NAV). For the same
period, the closed-end Lipper Loan Participation Funds category posted an average return of 0.24% on a market price basis and (4.14)% on a NAV basis.
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 price and performance based on NAV. For the first two months of the reporting period, the high yield loan market was under extreme pressure
and lost 10.90%, as measured by the Barclays Capital High Yield Loan Index. However, this underperformance was followed by a strong first four months of
2009, in which the sector gained in excess of 20%. This resulted in positive market performance for the six months as a whole. During this time, the Fund
maintained a high level of leverage and focused on higher-quality sectors and structures, which benefited most during the market rally; these were the pri-
mary contributors to the Fund’s outperformance of its Lipper peers. Conversely, conservative positioning hampered results during the sharp rally in the first
four months of 2009.

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.

Fund Information     
  Symbol on New York Stock Exchange  BGT 
  Initial Offering Date  August 30, 2004 
  Yield on Closing Market Price as of April 30, 2009 ($9.85)1                       12.18% 
  Current Monthly Distribution per Common Share2  $0.10 
  Current Annualized Distribution per Common Share2  $1.20 
  Leverage as of April 30, 20093  32% 

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 Monthly Distribution per Common Share, declared on June 1, 2009, was decreased to $0.075. The Yield on Closing Market Price, Current
Monthly Distribution per Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The new
distribution rate is not constant and is subject to further change in the future. A portion of the distribution may be deemed a tax return of capital or
net realized gain.
3 Represents loan outstanding and Auction Market Preferred Shares (“Preferred Shares”) as a percentage of total managed assets, which is the total
assets of the Fund (including any assets attributable to any borrowing that may be outstanding and Preferred Shares) minus the sum of accrued
liabilities (other than debt representing financial leverage). For a discussion of leveraging techniques utilized by the Fund, please see the Benefits
and Risks of Leveraging on page 11.

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

  4/30/09  10/31/08  Change  High  Low 
Market Price  $ 9.85  $ 9.63  2.28%  $10.25  $6.88 
Net Asset Value  $10.41  $11.24  (7.38)%  $11.43  $8.86 

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

Portfolio Composition     
  4/30/09  10/31/08 
Floating Rate Loan Interests  76%  79% 
Corporate Bonds  17     14 
Foreign Government Obligations  7  7 

     Credit Quality Allocations4     
  4/30/09  10/31/08 
A/A               19%        20% 
BBB/Baa  47  30 
BB/Ba  9  16 
B/B  11  23 
CCC/Caa  7  10 
D  6   
Not Rated  1  1 

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

6 SEMI-ANNUAL REPORT

APRIL 30, 2009


Fund Summary as of April 30, 2009 BlackRock Preferred and Corporate Income Strategies Fund, Inc.

Investment Objective

BlackRock Preferred and Corporate Income Strategies Fund, Inc. (PSW) (the “Fund”) seeks to provide shareholders with high current income and capital
appreciation. The Fund seeks to achieve its objectives by investing primarily in a portfolio of preferred securities and debt securities, including convertible
securities that may be converted into common stock or other securities of the same or a different issuer. No assurance can be given that the Fund’s invest-
ment objective will be achieved.

Performance

For the six months ended April 30, 2009, the Fund returned (11.81)% based on market price and (15.87)% based on net asset value (NAV). For the same
period, the closed-end Lipper Income & Preferred Stock Funds category posted an average return of (5.69)% on a market price basis and (8.83)% on a
NAV basis. 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 price and performance based on NAV. The Fund’s Lipper category contains both preferred and equity funds, both of which declined
significantly through early March and rebounded sharply afterwards. Equities, as measured by the S&P 500 Index, lost 8.53% for the six months, while
preferred securities, as measured by the Merrill Lynch Fixed Rate Preferred Index, lost 11.62%. Financial issues make up a significant percentage of the
preferred market and, during the period, were highly correlated to financial equities, which significantly underperformed. Accordingly, the Fund’s holdings of
financials detracted from returns, as did relatively high levels of leverage. Due to adverse market conditions during the period, the Fund invested a higher
than usual percentage of its assets in cash equivalent securities. This higher-than-normal allocation to cash helped performance for the six months.

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.

Fund Information     
  Symbol on New York Stock Exchange  PSW 
  Initial Offering Date  August 1, 2003 
  Yield based on Closing Market Price as of April 30, 2009 ($5.55)1  17.47% 
  Current Monthly Distribution per Common Share2  $0.0808 
  Current Annualized Distribution per Common Share2  $0.9696 
  Leverage as of April 30, 20093  44% 

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 Monthly Distribution per Common Share, declared on June 1, 2009, was decreased to $0.06. The Yield on Closing Market Price, Current
Monthly Distribution per Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The new
distribution rate is not constant and is subject to further change in the future. A portion of the distribution may be deemed a tax return of capital or
net realized gain.
3 Represents reverse repurchase agreements and Preferred Shares as a percentage of total managed assets, which is the total assets of the Fund
(including any assets attributable to any borrowing that may be outstanding and Preferred Shares) minus the sum of accrued liabilities (other than
debt representing financial leverage). For a discussion of leveraging techniques utilized by the Fund, please see the Benefits and Risks of Leveraging
on page 11.

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

  4/30/09  10/31/08  Change  High  Low 
Market Price  $5.55  $7.00  (20.71)%  $7.99  $3.44 
Net Asset Value  $5.62  $7.43  (24.36)%  $7.60  $4.55 

The following charts show the portfolio composition of the Fund’s total investments and credit quality allocations of the Fund’s
Capital Trust, Trust Preferred and Corporate Bond investments:

     Portfolio Composition     
  4/30/09  10/31/08 
Preferred Securities  71%  87% 
Short-Term Securities  27     11 
Corporate Bonds  2  2 

     Credit Quality Allocations4     
  4/30/09  10/31/08 
AA/Aa  1%      14% 
A/A  33  46 
BBB/Baa  57  36 
BB/Ba  6  4 
B/B  2   
CCC/Caa  1   
 4 Using the higher of S&P’s or Moody’s ratings.   

SEMI-ANNUAL REPORT

APRIL 30, 2009

7


Fund Summary as of April 30, 2009 BlackRock Preferred and Equity Advantage Trust

Investment Objective

BlackRock Preferred and Equity Advantage Trust (BTZ) (the “Fund”) seeks to achieve high current income, current gains and capital appreciation. The
Fund will invest primarily in preferred and equity securities and derivatives with economic characteristics similar to individual or groups of equity securi-
ties. The Fund will seek to generate income through an allocation of Qualified Dividend Income-eligible preferreds, common stocks that generate qualified
dividend income and an index options strategy. No assurance can be given that the Fund’s investment objective will be achieved.

Performance

For the six months ended April 30, 2009, the Fund returned (4.23)% based on market price and (8.73)% based on net asset value (NAV). For the same
period, the closed-end Lipper Income & Preferred Stock Funds category posted an average return of (5.69)% on a market price basis and (8.83)% on a
NAV basis. 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 price and performance based on NAV. The Fund’s Lipper category contains both preferred and equity funds, both of which declined
significantly through early March and rebounded sharply afterwards. Equities, as measured by the S&P 500 Index, lost 8.53% for the six months, while
preferred securities, as measured by the Merrill Lynch Fixed Rate Preferred Index, lost 11.62%. Financial issues make up a significant percentage of the
preferred market and, during the period, were highly correlated to financial equities, which significantly underperformed. Accordingly, the Fund’s holdings of
financials detracted from returns, as did relatively high levels of leverage. Due to adverse market conditions during the period, the Fund invested a higher
than usual percentage of its assets in cash equivalent securities. This higher-than-average allocation to cash, combined with options strategies used by the
Fund to generate additional income, helped performance for the six months.

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.

Fund Information     
  Symbol on New York Stock Exchange  BTZ 
  Initial Offering Date  December 27, 2006 
  Yield on Closing Market Price as of April 30, 2009 ($8.05)1                        19.38% 
  Current Monthly Distribution per Common Share2  $0.13 
  Current Annualized Distribution per Common Share2  $1.56 
  Leverage as of April 30, 20093  39% 

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 Monthly Distribution per Common Share, declared on June 1, 2009, was decreased to $0.10. The Yield on Closing Market Price, Current
Monthly Distribution per Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The new
distribution rate is not constant and is subject to further change in the future. A portion of the distribution may be deemed a tax return of capital or
net realized gain.
3 Represents reverse repurchase agreements and Preferred Shares as a percentage of total managed assets, which is the total assets of the Fund
(including any assets attributable to any borrowing that may be outstanding and Preferred Shares) minus the sum of accrued liabilities (other than
debt representing financial leverage). For a discussion of leveraging techniques utilized by the Fund, please see the Benefits and Risks of Leveraging
on page 11.

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

  4/30/09  10/31/08  Change  High  Low 
Market Price  $8.05  $ 9.36  (14.00)%  $ 9.80  $4.56 
Net Asset Value  $8.68  $10.59  (18.04)%  $10.80  $6.89 

The following charts show the portfolio composition of the Fund’s total investments and credit quality allocations of the Fund’s
Capital Trust, Trust Preferred and Corporate Bond investments:

     Portfolio Composition     
  4/30/09  10/31/08 
Preferred Securities  52%     59% 
Common Stocks  24     16 
Short-Term Securities  15     21 
Corporate Bonds  9  4 

     Credit Quality Allocations4     
  4/30/09  10/31/08 
AA/Aa  5%       21% 
A/A  41  42 
BBB/Baa  47  34 
BB/Ba  5  3 
B/B  1   
CCC/Caa  1   
 4 Using the higher of S&P’s or Moody’s ratings.   

8 SEMI-ANNUAL REPORT

APRIL 30, 2009


Fund Summary as of April 30, 2009 BlackRock Preferred Income Strategies Fund, Inc.

Investment Objective

BlackRock Preferred Income Strategies Fund, Inc. (PSY) (the “Fund”) seeks to provide shareholders with current income and capital appreciation. The Fund
seeks to achieve its objectives by investing primarily in a portfolio of preferred securities, including convertible preferred securities that may be converted
into common stock or other securities of the same or a different issuer. No assurance can be given that the Fund’s investment objective will be achieved.

Performance

For the six months ended April 30, 2009, the Fund returned (16.83)% based on market price and (17.88)% based on net asset value (NAV). For the same
period, the closed-end Lipper Income & Preferred Stock Funds category posted an average return of (5.69)% on a market price basis and (8.83)% on a
NAV basis. All returns reflect reinvestment of dividends. The Fund’s premium to NAV, which widened during the period, accounts for the difference between
performance based on price and performance based on NAV. The Fund’s Lipper category contains both preferred and equity funds, both of which declined
significantly through early March and rebounded sharply afterwards. Equities, as measured by the S&P 500 Index, lost 8.53% for the six months, while
preferred securities, as measured by the Merrill Lynch Fixed Rate Preferred Index, lost 11.62%. Financial issues make up a significant percentage of the
preferred market and, during the period, were highly correlated to financial equities, which significantly underperformed. Accordingly, the Fund’s holdings of
financials detracted from returns, as did relatively high levels of leverage. Due to adverse market conditions during the period, the Fund invested a higher
than usual percentage of its assets in cash equivalent securities. This higher-than-normal allocation to cash helped performance for the six months.

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.

Fund Information     
  Symbol on New York Stock Exchange  PSY 
  Initial Offering Date  March 28, 2003 
  Yield on Closing Market Price as of April 30, 2009 ($6.05)1  18.76% 
  Current Monthly Distribution per Common Share2  $0.094583 
  Current Annualized Distribution per Common Share2  $1.134996 
  Leverage as of April 30, 20093  43% 

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 Monthly Distribution per Common Share, declared June 1, 2009, was decreased to $0.075. The Yield on Closing Market Price, Current
Monthly Distribution per Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The new
distribution rate is not constant and is subject to further change in the future. A portion of the distribution may be deemed a tax return of capital or
net realized gain.
3 Represents reverse repurchase agreements and Preferred Shares as a percentage of total managed assets, which is the total assets of the Fund
(including any assets attributable to any borrowing that may be outstanding and Preferred Shares) minus the sum of accrued liabilities (other than
debt representing financial leverage). For a discussion of leveraging techniques utilized by the Fund, please see the Benefits and Risks of Leveraging
on page 11.

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

  4/30/09  10/31/08  Change  High  Low 
Market Price  $6.05  $8.10  (25.31)%  $8.40  $3.69 
Net Asset Value  $5.87  $7.96  (26.26)%  $8.17  $4.60 

The following charts show the portfolio composition of the Fund’s total investments and credit quality allocations of the Fund’s
Capital Trust, Trust Preferred and Corporate Bond investments:

     Portfolio Composition     
  4/30/09  10/31/08 
Preferred Securities  94%  93% 
Short-Term Securities  4  4 
Corporate Bonds  2  3 

     Credit Quality Allocations4     
  4/30/09  10/31/08 
AA/Aa  1%  16% 
A/A  34  49 
BBB/Baa  50  28 
BB/Ba  11  7 
B/B  3   
CCC/Caa  1   
 4 Using the higher of S&P’s or Moody’s ratings.   

SEMI-ANNUAL REPORT

APRIL 30, 2009

9


Fund Summary as of April 30, 2009 BlackRock Preferred Opportunity Trust

Investment Objective

BlackRock Preferred Opportunity Trust (BPP) (the “Fund”) seeks high current income consistent with capital preservation by investing primarily in preferred
securities. No assurance can be given that the Fund’s investment objective will be achieved.

Performance

For the six months ended April 30, 2009, the Fund returned (7.59)% based on market price and (15.77)% based on net asset value (NAV). For the same
period, the closed-end Lipper Income & Preferred Stock Funds category posted an average return of (5.69)% on a market price basis and (8.83)% on a
NAV basis. All returns reflect reinvestment of dividends. The Fund moved from a discount to NAV to a premium by period-end, which accounts for the differ-
ence between performance based on price and performance based on NAV. The Fund’s Lipper category contains both preferred and equity funds, both of
which declined significantly through early March and rebounded sharply afterwards. Equities, as measured by the S&P 500 Index, lost 8.53% for the six
months, while preferred securities, as measured by the Merrill Lynch Fixed Rate Preferred Index, lost 11.62%. Financial issues make up a significant per-
centage of the preferred market and, during the period, were highly correlated to financial equities, which significantly underperformed. Accordingly, the
Fund’s holdings of financials detracted from returns, as did relatively high levels of leverage. Due to adverse market conditions during the period, the Fund
invested a higher than usual percentage of its assets in cash equivalent securities. This higher-than-average allocation to cash helped performance for the
six months.

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.

Fund Information     
  Symbol on New York Stock Exchange  BPP 
  Initial Offering Date  February 28, 2003 
  Yield on Closing Market Price as of April 30, 2009 ($7.08)1  17.80% 
  Current Monthly Distribution per Common Share2  $0.105 
  Current Annualized Distribution per Common Share2  $1.260 
  Leverage as of April 30, 20093  40% 

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 Monthly Distribution per Common Share, declared on June 1, 2009, was decreased to $0.0725. The Yield on Closing Market Price, Current
Monthly Distribution per Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The new
distribution rate is not constant and is subject to further change in the future. A portion of the distribution may be deemed a tax return of capital or
net realized gain.
3 Represents reverse repurchase agreements and Preferred Shares as a percentage of total managed assets, which is the total assets of the Fund
(including any assets attributable to any borrowing that may be outstanding and Preferred Shares) minus the sum of accrued liabilities (other than
debt representing financial leverage). For a discussion of leveraging techniques utilized by the Fund, please see the Benefits and Risks of Leveraging
on page 11.

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

  4/30/09  10/31/08  Change  High  Low 
Market Price  $7.08  $8.51  (16.80)%  $10.18  $4.00 
Net Asset Value  $6.65  $8.77  (24.17)%  $ 9.05  $5.06 

The following chart shows the portfolio composition of the Fund’s total investments and credit quality allocations of the Fund’s
Capital Trust, Trust Preferred and Corporate Bond investments:

     Portfolio Composition     
  4/30/09  10/31/08 
Preferred Securities     77%    90% 
Short-Term Securities  14  3 
Corporate Bonds  8  7 
Investment Companies  1   

     Credit Quality Allocations4     
  4/30/09  10/31/08 
AA/Aa  9%       12% 
A/A  35  11 
BBB/Baa  42  56 
BB/Ba  10  18 
B  3  3 
CCC/Caa  1   
 4 Using the higher of S&P’s or Moody’s ratings.   

10 SEMI-ANNUAL REPORT

APRIL 30, 2009


The Benefits and Risks of Leveraging

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

To leverage, BlackRock Floating Rate Income Trust, BlackRock Preferred
and Corporate Income Strategies Fund, Inc., BlackRock Preferred and
Equity Advantage Trust, BlackRock Preferred Income Strategies Fund, Inc.
and BlackRock Preferred Opportunity Trust issue Preferred Shares, which
pay dividends at prevailing short-term interest rates. In addition, certain
Funds may utilize leverage through borrowings or issuance of short-term
securities. In general, the concept of leveraging is based on the premise
that the cost of assets to be obtained from leverage will be based on
short-term interest rates, which normally will 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 Common Shareholders will benefit from the incremental yield.

The interest earned on securities purchased with the proceeds from lever-
age is paid to Common Shareholders in the form of dividends, and the
value of these portfolio holdings is reflected in the per share NAV of each
Fund’s Common Shares. However, in order to benefit Common 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, returns to Common Shareholders will be lower than if the
Funds had not used leverage.

To illustrate these concepts, assume a Fund’s Common Shares capitalization
is $100 million and it issues Preferred Shares for an additional $50 million,
creating a total value of $150 million available for investment in long-term
municipal bonds. 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 dividends on the $50 million of Preferred Shares
based on the lower short-term interest rates. At the same time, the Fund’s
total portfolio of $150 million earns the income based on long-term interest
rates. In this case, the dividends paid to Preferred Shareholders are signifi-
cantly lower than the income earned on the fund’s long-term investments,
and therefore the Common Shareholders are the beneficiaries of the incre-
mental yield.

Conversely, if prevailing short-term interest rates rise above long-term inter-
est rates of 6%, the yield curve has a negative slope. In this case, the Fund
pays dividends on the higher short-term interest rates whereas the Fund’s
total portfolio earns income based on lower long-term interest rates. If short-
term interest rates rise, narrowing the differential between short-term and
long-term interest rates, the incremental yield pickup on the Common
Shares will be reduced or eliminated completely.

Furthermore, the value of the Fund’s 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 Fund’s Preferred Shares does not fluctuate in relation to interest
rates. As a result, changes in interest rates can influence the Fund’s NAV
positively or negatively in addition to the impact on Fund performance from
leverage from debt securities.

The use of leverage may enhance opportunities for increased returns to the
Fund and Common Shareholders, but as described above, they also create
risks as short- or long-term interest rates fluctuate. Leverage also will gener-
ally cause greater changes in a Fund’s NAV, market price and dividend rate
than a comparable portfolio without leverage. If the income derived from
securities purchased with assets received from leverage exceeds the cost
of leverage, the Fund’s 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, the 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. The Fund may be required to
sell portfolio securities at inopportune times or below fair market values in
order to comply with regulatory requirements applicable to the use of lever-
age or as required by the terms of leverage instruments which may cause a
Fund to incur losses. The use of leverage may limit a Fund’s ability to invest
in certain types of securities or use certain types of hedging strategies,
such as in the case of certain restrictions imposed by ratings agencies that
rate preferred shares issued by the Fund. The Fund will incur expenses in
connection with the use of leverage, all of which are borne by the holders
of the Common Shares and may reduce returns on the Common Shares.

Under the Investment Company Act of 1940, the Funds are permitted to
issue Preferred Shares in an amount of up to 50% of their total managed
assets at the time of issuance. Under normal circumstances, each Fund
anticipates that the total economic leverage from Preferred Shares, reverse
repurchase agreements and credit facility borrowings will not exceed 50%
of its total managed assets at the time such leverage is incurred. As of
April 30, 2009, the Funds had economic leverage from Preferred Shares,
reverse repurchase agreements and/or credit facility borrowings as a per-
centage of their total managed assets as follows:

  Percent of 
  Leverage 
BlackRock Broad Investment Grade 2009 Term Trust Inc  6% 
BlackRock Floating Rate Income Trust  32% 
BlackRock Preferred and Corporate Income Strategies Fund, Inc  44% 
BlackRock Preferred and Equity Advantage Trust  39% 
BlackRock Preferred Income Strategies Fund, Inc  43% 
BlackRock Preferred Opportunity Trust  40% 

Derivative Instruments

The Funds may invest in various derivative instruments, including swap
agreements, futures and forward currency contracts, and other instruments
specified in the Notes to Financial Statements, which constitute forms of
economic leverage. Such instruments are used to obtain exposure to a
market without owning or taking physical custody of securities or to hedge
market and/or interest rate risks. Such derivative instruments involve risks,
including the imperfect correlation between the value of a derivative instru-
ment and the underlying asset, possible default of the other party to the
transaction and illiquidity of the derivative instrument. The Funds’ ability

to successfully use a derivative instrument depends on the Advisor’s
ability to accurately predict pertinent market movements, which cannot
be assured. The use of derivative instruments may result in losses greater
than if they had not been used, may require the Funds to sell or purchase
portfolio securities at inopportune times or for prices other than current
market values, may limit the amount of appreciation the Funds can realize
on an investment or may cause the Funds to hold a security that it might
otherwise sell. The Funds’ investments in these instruments are discussed
in detail in the Notes to Financial Statements.

SEMI-ANNUAL REPORT

APRIL 30, 2009

11


Schedule of Investments April 30, 2009 (Unaudited) BlackRock Broad Investment Grade 2009 Term Trust Inc. (BCT)
(Percentages shown are based on Net Assets)

    Par   
Asset-Backed Securities    (000)           Value 
Global Rated Eligible Asset Trust Series 1998-A       
 Class 1, 7.45%, 9/15/07 (a)(b)(c)  $ 234  $ 24 
Structured Mortgage Asset Residential Trust Series 2,     
 8.24%, 11/07/07 (a)(b)    568  57 
Total Asset-Backed Securities — 0.0%      81 
Corporate Bonds       
Electric Utilities — 2.9%       
Entergy Gulf States, Inc., 1.661%, 12/01/09 (d)    1,000  979,547 
Media — 5.8%       
Comcast Corp., 1.439%, 7/14/09 (d)(e)(f)    2,000  1,998,408 
Total Corporate Bonds — 8.7%      2,977,955 
U.S. Government Sponsored Agency Mortgage-Backed Securities   
Fannie Mae Guaranteed Pass Through Certificates:       
     5.50%, 1/01/17 – 2/01/17    221  231,698 
     6.50%, 7/01/29    8  8,520 
Total U.S. Government Sponsored Agency Mortgage-Backed     
Securities — 0.7%      240,218 
U.S. Government Sponsored Agency Mortgage-Backed     
Securities — Collateralized Mortgage Obligations       
Fannie Mae Trust (g):       
     Series 1992-174 Class S, 154.28%, 9/25/22 (d)  2,108  6,976 
     Series 1993-49 Class L, 444.9167%, 4/25/13  1,283  7,625 
     Series 2004-13 Class IG, 5%, 10/25/22    2   
     Series G-21 Class L, 949.50%, 7/25/21    194  3,626 
Freddie Mac Multiclass Certificates:       
     Series 65 Class I, 918.0295%, 8/15/20 (g)    617  11,505 
     Series 141 Class H, 1,060%, 5/15/21 (g)    116  2,570 
     Series 1510 Class G, 7.05%, 5/15/13    998  1,058,099 
     Series 2517 Class SE, 15.122%, 10/15/09 (d)  149  154,045 
     Series 2523 Class EH, 5.50%, 4/15/20 (g)    291  1,774 
Total U.S. Government Sponsored Agency Mortgage–Backed     
Securities — Collateralized Mortgage Obligations — 3.7%    1,246,220 
Taxable Municipal Bonds       
County/City/Special District/School District — 2.9%     
Fresno, California, Taxable Pension Obligation Revenue     
 Bonds, 7.80%, 6/01/14 (e)(h)    440  476,806 
Kern County, California, Taxable Pension Obligation       
 Revenue Bonds, 6.98%, 8/15/09 (e)(i)    500  506,565 
Total Taxable Municipal Bonds — 2.9%      983,371 

Non-U.S. Government Sponsored Agency  Par   
Mortgage-Backed Securities  (000)  Value 
JPMorgan Mortgage Trust Series 2006-A7 Class 2A2,     
 5.791%, 1/25/37 (d)  $ 1,194  $ 786,377 
Nomura Asset Acceptance Corp. Series 2004-AR4     
 Class 2A3, 0.773%, 12/25/34 (d)  62  29,983 
Salomon Brothers Mortgage Securities VI, Inc. Series     
 1987-3 Class A, 12.50%, 10/23/17 (j)  5  4,959 
Structured Adjustable Rate Mortgage Loan Trust Series     
 2004-11 Class A, 5.043%, 8/25/34 (d)  388  386,675 
Vendee Mortgage Trust Series 2002-1, 0.043%,     
 10/15/31 (d)(g)  9,688  8,428 
WaMu Mortgage Pass-Through Certificates Series     
 2005-AR4 Class A3, 4.585%, 4/25/35 (d)  815  758,391 
Wells Fargo Mortgage Backed Securities Trust Series     
 2004-N Class A6, 4%, 8/25/34 (d)  500  497,424 
Total Non-U.S. Government Sponsored Agency     
Mortgage-Backed Securities — 7.2%    2,472,237 
U.S. Government Sponsored Agency Obligations     
Fannie Mae, 5.964%, 10/09/19 (f)(k)  50,000  25,505,500 
Total U.S. Government Sponsored Agency     
Obligations — 74.8%    25,505,500 
Total Long-Term Investments     
(Cost — $35,519,186) — 98.0%    33,425,582 
Short-Term Securities  Shares   
Money Market Fund — 8.1%     
BlackRock Liquidity Funds, TempFund, 0.64% (l)(m)  2,780,000  2,780,000 
Total Short-Term Securities     
(Cost — $2,780,000) — 8.1%    2,780,000 
Total Investments (Cost — $38,299,186*) — 106.1%    36,205,582 
Liabilities in Excess of Other Assets — (6.1)%    (2,094,680) 
Net Assets — 100.0%    $ 34,110,902 

* The cost and unrealized appreciation (depreciation) of investments as of April 30,
2009, as computed for federal income tax purposes, were as follows:

Aggregate cost  $ 38,299,186 
Gross unrealized appreciation  $ 172,777 
Gross unrealized depreciation  (2,266,381) 
Net unrealized depreciation  $ (2,093,604) 

(a) Non-income producing security.
(b) Issuer filed for bankruptcy and/or is in default of interest payments.
(c) Security exempt from registration under Rule 144A of the Securities Act of 1933.
These securities may be resold in transactions exempt from registration to qualified
institutional investors.
(d) Variable rate security. Rate shown is as of report date.

See Notes to Financial Statements.

12 SEMI-ANNUAL REPORT

APRIL 30, 2009


Schedule of Investments (concluded) BlackRock Broad Investment Grade 2009 Term Trust Inc. (BCT)

(e) All or a portion of security has been pledged as collateral in connection with open
financial futures contracts.
(f) All or a portion of security has been pledged as collateral for reverse repurchase
agreements.
(g) Represents the interest-only portion of a mortgage-backed security and has either a
nominal or notional amount of principal.
(h) Security is collateralized by Municipal or US Treasury Obligations.
(i) NPFGC Insured.
(j) Represents the principal only portion of a mortgage-backed security.
(k) Represents a zero-coupon bond. Rate shown reflects the current yield as of
report date.
(l) Investments in companies considered to be an affiliate of the Fund, for purposes
of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:

  Net   
Affiliate  Activity  Income 
BlackRock Liquidity Funds, TempFund  2,780,000   $3,712 

(m) Represents the current yield as of report date.
Reverse repurchase agreements outstanding as of April 30, 2009 were as follows:

    Interest    Trade Maturity Net Closing  Face 
     Counterparty  Rate      Date  Date  Amount  Amount 
     Barclays                 
         Bank Plc    0.35%   2/19/09  Open $ 1,749,632  $ 1,748,425 
     Credit Suisse                 
         International  1.25%   1/29/09  Open  525,875  524,219 
     Total            $ 2,275,507  $ 2,272,644 
Financial futures contracts sold as of April 30, 2009 were as follows:   
                                    Expiration  Face  Unrealized 
     Contracts    Issue      Date    Value  Depreciation 
         289   10-Year U.S.    June       
  Treasury Bond  2009  $34,703,522  $ (247,416) 
Interest rate swaps outstanding as of April 30, 2009 were as follows:   
              Notional   
     Fixed  Floating          Amount  Unrealized 
     Rate    Rate  Counterparty  Expiration  (000)  Appreciation 
     2.745%(a)  3-month  Credit Suisse  October     
  LIBOR  International  2010  $ 2,100  $ 45,894 
     2.743%(a)  3-month    Deutsche  October     
  LIBOR    Bank AG  2010  $ 2,100  45,971 
     Total                $ 91,865 
         (a) Fund pays floating interest rate and receives fixed rate.   

Effective November 1, 2008, the Fund adopted Financial Accounting Standards
Board Statement of Financial Accounting Standards No. 157, “Fair Value
Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, estab-
lishes a framework for measuring fair values and requires additional disclosures
about the use of fair value measurements. Various inputs are used in determining
the fair value of investments, which are as follows:
Level 1 — price quotations in active markets/exchanges for identical securities
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 identi-
cal or similar assets 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
circumstance, to the extent observable inputs are not available (including the
Fund’s own assumptions used in determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities. For information
about the Fund’s policy regarding valuation of investments and other significant
accounting policies, please refer to Note 1 of the Notes to Financial Statements.
The following table summarizes the inputs used as of April 30, 2009 in determining
the fair valuation of the Fund’s investments:

Valuation  Investments in  Other Financial 
Inputs  Securities  Instruments* 
  Assets  Assets  Liabilities 
Level 1  $ 2,780,000    $ (247,416) 
Level 2  32,244,022  $ 91,865  (2,272,644) 
Level 3  1,181,560     
Total  $ 36,205,582  $ 91,865  $ (2,520,060) 

* Other financial instruments are reverse repurchase agreements, futures and
swap contracts. Reverse repurchase agreements are shown at market value.
Futures and swap contracts are valued at the unrealized appreciation/
depreciation on the instrument.

The following is a reconciliation of investments for unobservable inputs (Level 3)
used in determining fair value:

  Investments in 
  Securities 
  Assets 
Balance, as of October 31, 2008  $ 80 
Accrued discounts/premiums   
Realized gain  404 
Change in unrealized appreciation/depreciation1  (413,020) 
Net sales  (54,123) 
Net transfers into Level 3  1,648,219 
Balance, as of April 30, 2009  $ 1,181,560 

1 Included in the related net change in unrealized appreciation/depreciation on
the Statements of Operations.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

APRIL 30, 2009

13


Schedule of Investments April 30, 2009 (Unaudited) BlackRock Enhanced Capital and Income Fund, Inc. (CII)
(Percentages shown are based on Net Assets)

Common Stocks  Shares  Value 
Aerospace & Defense — 4.3%     
Honeywell International, Inc.  154,308  $ 4,815,953 
Northrop Grumman Corp.  178,552  8,632,989 
Raytheon Co.  230,000  10,402,900 
    23,851,842 
Air Freight & Logistics — 0.3%     
United Parcel Service, Inc. Class B  35,914  1,879,739 
Capital Markets — 5.0%     
The Bank of New York Mellon Corp.  483,498  12,319,529 
Invesco Ltd. (a)  613,600  9,032,192 
Morgan Stanley  273,913  6,475,303 
    27,827,024 
Chemicals — 1.9%     
Air Products & Chemicals, Inc.  55,500  3,657,450 
E.I. du Pont de Nemours & Co.  251,345  7,012,525 
    10,669,975 
Communications Equipment — 2.6%     
Cisco Systems, Inc. (b)  220,305  4,256,293 
Corning, Inc.  268,800  3,929,856 
Nokia Oyj (a)  440,000  6,221,600 
    14,407,749 
Computers & Peripherals — 4.3%     
Hewlett-Packard Co.  313,392  11,275,844 
International Business Machines Corp.  121,653  12,555,806 
    23,831,650 
Diversified Financial Services — 3.2%     
JPMorgan Chase & Co.  529,339  17,468,187 
Diversified Telecommunication Services — 7.2%     
AT&T Inc.  430,000  11,016,600 
Qwest Communications International Inc.  3,950,001  15,365,504 
Verizon Communications, Inc.  445,000  13,501,300 
    39,883,404 
Electric Utilities — 3.3%     
American Electric Power Co., Inc.  48,800  1,287,344 
FPL Group, Inc.  163,644  8,802,411 
The Southern Co.  277,129  8,003,485 
    18,093,240 
Electrical Equipment — 0.9%     
Emerson Electric Co.  153,000  5,208,120 
Energy Equipment & Services — 3.5%     
BJ Services Co.  669,500  9,299,355 
Halliburton Co.  504,489  10,200,767 
    19,500,122 
Food & Staples Retailing — 0.8%     
Wal-Mart Stores, Inc.  83,926  4,229,871 
Food Products — 6.2%     
General Mills, Inc.  237,371  12,032,336 
Kraft Foods, Inc.  488,699  11,435,557 
Ralcorp Holdings, Inc. (b)  1  57 
Unilever NV (a)  552,232  10,928,671 
    34,396,621 
Health Care Equipment & Supplies — 2.1%     
Baxter International, Inc.  100,841  4,890,788 
Covidien Ltd.  200,000  6,596,000 
    11,486,788 

Common Stocks  Shares  Value 
Household Products — 3.9%     
Clorox Co.  55,457  $ 3,108,365 
Kimberly-Clark Corp.  305,000  14,987,700 
The Procter & Gamble Co.  72,145  3,566,849 
    21,662,914 
Industrial Conglomerates — 1.4%     
General Electric Co.  93,434  1,181,940 
Tyco International Ltd.  270,000  6,415,200 
    7,597,140 
Insurance — 7.6%     
ACE Ltd.  190,900  8,842,488 
MetLife, Inc.  273,525  8,137,369 
Prudential Financial, Inc.  135,000  3,898,800 
The Travelers Cos., Inc.  506,330  20,830,416 
    41,709,073 
Machinery — 1.6%     
Deere & Co.  207,286  8,552,620 
Media — 5.6%     
Time Warner Cable, Inc.  107,776  3,473,621 
Time Warner, Inc.  580,972  12,682,619 
Viacom, Inc. Class B (b)  454,024  8,735,422 
Walt Disney Co.  265,047  5,804,529 
    30,696,191 
Metals & Mining — 2.3%     
Nucor Corp.  218,800  8,902,972 
United States Steel Corp.  136,500  3,624,075 
    12,527,047 
Multi-Utilities — 1.0%     
Dominion Resources, Inc.  185,239  5,586,808 
Office Electronics — 2.8%     
Xerox Corp.  2,550,000  15,580,500 
Oil, Gas & Consumable Fuels — 7.8%     
Anadarko Petroleum Corp.  89,217  3,841,684 
Chevron Corp.  160,000  10,576,000 
Exxon Mobil Corp.  349,956  23,331,566 
Peabody Energy Corp.  210,000  5,541,900 
    43,291,150 
Pharmaceuticals — 10.3%     
Bristol-Myers Squibb Co.  752,500  14,448,000 
Johnson & Johnson  151,354  7,924,896 
Pfizer, Inc.  725,000  9,686,000 
Schering-Plough Corp.  844,303  19,435,855 
Wyeth  125,000  5,300,000 
    56,794,751 
Semiconductors & Semiconductor Equipment — 8.3%     
Analog Devices, Inc.  536,000  11,406,080 
Intel Corp.  541,778  8,549,257 
LSI Corp. (b)  4,109,020  15,778,637 
Micron Technology, Inc. (b)  2,120,100  10,346,088 
    46,080,062 
Software — 0.9%     
Microsoft Corp.  243,014  4,923,464 
Specialty Retail — 1.2%     
Home Depot, Inc.  252,500  6,645,800 
Total Long-Term Investments     
(Cost — $696,550,707) — 100.3%    554,381,852 

See Notes to Financial Statements.

14 SEMI-ANNUAL REPORT

APRIL 30, 2009


Schedule of Investments (continued) BlackRock Enhanced Capital and Income Fund, Inc. (CII)
(Percentages shown are based on Net Assets)

  Par   
Short-Term Securities  (000)           Value 
Time Deposits — 1.8%     
Brown Brothers Harriman & Co., 0.03%, 5/01/09  $ 10,079  $ 10,079,230 
Total Short-Term Securities     
(Cost — $10,079,230) — 1.8%    10,079,230 
Total Investments Before Options Written     
(Cost — $706,629,937*) — 102.1%    564,461,082 
Options Written  Contracts   
Exchange-Traded Call Options     
ACE Ltd.:     
     expiring May 2009 at USD 45  190  (50,825) 
     expiring June 2009 at USD 50  190  (30,875) 
     expiring August 2009 at USD 50  190  (57,000) 
AT&T Inc., expiring May 2009 at USD 26  2,150  (94,600) 
Air Products & Chemicals, Inc.:     
     expiring May 2009 at USD 55  140  (151,200) 
     expiring June 2009 at USD 55  140  (163,800) 
American Electric Power Co., Inc., expiring May 2009     
 at USD 27.50  150  (1,125) 
Analog Devices, Inc.:     
     expiring May 2009 at USD 20  490  (73,500) 
     expiring May 2009 at USD 22.50  110  (1,650) 
     expiring June 2009 at USD 22.50  590  (38,350) 
BJ Services Co., expiring May 2009 at USD 12.50  1,600  (256,000) 
The Bank of New York Mellon Corp., expiring May 2009     
 at USD 30  725  (16,312) 
Bristol-Myers Squibb Co.:     
     expiring June 2009 at USD 21  2,500  (85,000) 
     expiring June 2009 at USD 22  1,260  (15,120) 
Cisco Systems, Inc.:     
     expiring May 2009 at USD 18  575  (90,562) 
     expiring June 2009 at USD 19  1,030  (138,020) 
     expiring July 2009 at USD 19  45  (7,065) 
Clorox Co., expiring June 2009 at USD 55  415  (127,612) 
Corning, Inc.:     
     expiring May 2009 at USD 12.50  485  (104,275) 
     expiring June 2009 at USD 16  250  (13,125) 
Deere & Co.:     
     expiring June 2009 at USD 41  105  (37,800) 
     expiring June 2009 at USD 43  1,450  (384,250) 
E.I. du Pont de Nemours & Co.:     
     expiring May 2009 at USD 25  800  (244,000) 
     expiring June 2009 at USD 28  550  (85,250) 
     expiring July 2009 at USD 25  340  (129,200) 
Emerson Electric Co.:     
     expiring May 2009 at USD 30  250  (103,750) 
     expiring June 2009 at USD 34  210  (38,325) 
Exxon Mobil Corp., expiring May 2009 at USD 75  675  (2,700) 
FPL Group, Inc., expiring June 2009 at USD 50  500  (230,000) 
Halliburton Co., expiring June 2009 at USD 21  1,300  (142,350) 
Hewlett-Packard Co.:     
     expiring May 2009 at USD 33  750  (227,797) 
     expiring May 2009 at USD 35  245  (39,813) 
     expiring June 2009 at USD 39  570  (51,300) 
Home Depot, Inc., expiring May 2009 at USD 25  1,085  (184,992) 
Honeywell International, Inc.:     
     expiring June 2009 at USD 30  390  (95,550) 
     expiring June 2009 at USD 32.50  380  (44,650) 
Intel Corp.:     
     expiring May 2009 at USD 15.50  1,380  (102,424) 
     expiring June 2009 at USD 16  1,330  (101,080) 
International Business Machines Corp., expiring June 2009   
 at USD 105  610  (219,600) 
Invesco Ltd.:     
     expiring May 2009 at USD 15  350  (28,875) 
     expiring July 2009 at USD 17.50  210  (18,375) 
See Notes to Financial Statements.     

Options Written  Contracts         Value 
Exchange-Traded Call Options (concluded)     
JPMorgan Chase & Co., expiring June 2009 at USD 34  1,590  $ (434,865) 
Johnson & Johnson:     
     expiring May 2009 at USD 55  575  (7,188) 
     expiring June 2009 at USD 55  500  (23,750) 
     expiring July 2009 at USD 55  77  (8,085) 
Kimberly-Clark Corp., expiring May 2009 at USD 50  775  (46,500) 
Kraft Foods, Inc.:     
     expiring May 2009 at USD 24  2,000  (80,000) 
     expiring June 2009 at USD 24  1,670  (133,600) 
LSI Corp., expiring June 2009 at USD 4.18  12,300  (368,016) 
MetLife, Inc., expiring June 2009 at USD 35  830  (118,275) 
Micron Technology, Inc., expiring June 2009 at USD 5  2,200  (115,500) 
Morgan Stanley, expiring May 2009 at USD 28  820  (12,300) 
Nokia Oyj:     
     expiring May 2009 at USD 14  320  (20,800) 
     expiring May 2009 at USD 15  1,000  (22,500) 
Northrop Grumman Corp.:     
     expiring May 2009 at USD 40  680  (557,600) 
     expiring June 2009 at USD 50  660  (108,900) 
Nucor Corp., expiring June 2009 at USD 47  650  (65,000) 
Peabody Energy Corp., expiring June 2009 at USD 29  630  (81,900) 
Pfizer, Inc.:     
     expiring May 2009 at USD 15  2,400  (4,800) 
     expiring June 2009 at USD 15  1,000  (13,000) 
The Procter & Gamble Co.:     
     expiring May 2009 at USD 50  440  (41,800) 
     expiring July 2009 at USD 55  100  (6,500) 
Prudential Financial, Inc.:     
     expiring May 2009 at USD 30  105  (19,163) 
     expiring June 2009 at USD 32  300  (78,750) 
Qwest Communications International Inc.:     
     expiring May 2009 at USD 3.32  16,320  (938,074) 
     expiring May 2009 at USD 5  3,400  (17,000) 
Raytheon Co.:     
     expiring May 2009 at USD 47.50  500  (18,750) 
     expiring June 2009 at USD 45  1,225  (278,688) 
Time Warner Cable, Inc., expiring June 2009 at USD 30  530  (174,900) 
Time Warner, Inc., expiring June 2009 at USD 24  2,900  (166,750) 
The Travelers Cos., Inc., expiring July 2009 at USD 45  1,520  (224,200) 
Tyco International Ltd.:     
     expiring May 2009 at USD 22.50  1,100  (176,000) 
     expiring July 2009 at USD 25  250  (31,875) 
Unilever NV:     
     expiring May 2009 at USD 20  1,000  (50,000) 
     expiring June 2009 at USD 20  650  (52,000) 
United Parcel Service, Inc. Class B, expiring June 2009     
 at USD 55  180  (27,900) 
United States Steel Corp., expiring July 2009 at USD 30  410  (90,200) 
Viacom, Inc. Class B, expiring June 2009 at USD 22.50  2,270  (130,525) 
Wal-Mart Stores, Inc., expiring June 2009 at USD 52.50  325  (39,325) 
Walt Disney Co.:     
     expiring May 2009 at USD 20  580  (127,600) 
     expiring June 2009 at USD 21  250  (50,000) 
Xerox Corp., expiring July 2009 at USD 6  2,550  (178,500) 
    (9,169,176) 
Over-the-Counter Call Options     
Anadarko Petroleum Corp., expiring June 2009 at USD 45,     
 Broker Morgan Stanley Capital Services Inc.  445  (98,972) 
Analog Devices, Inc., expiring June 2009 at USD 22.50,     
 Broker Goldman Sachs Bank USA  420  (27,300) 
BJ Services Co., expiring May 2009 at USD 10.95,     
 Broker Goldman Sachs Bank USA  1,750  (520,380) 
The Bank of New York Mellon Corp., expiring May 2009     
 at USD 31.80, Broker Citibank, N.A.  725  (19,611) 
Baxter International, Inc., expiring June 2009 at USD 55,     
 Broker UBS AG  500  (12,610) 

SEMI-ANNUAL REPORT

APRIL 30, 2009

15


Schedule of Investments (concluded) BlackRock Enhanced Capital and Income Fund, Inc. (CII)
(Percentages shown are based on Net Assets)

Options Written  Contracts           Value 
Over-the-Counter Call Options (concluded)       
Chevron Corp., expiring June 2009 at USD 68.41,       
 Broker Goldman Sachs Bank USA    600  $ (111,096) 
Corning, Inc., expiring June 2009 at USD 16,       
 Broker Jeffries & Co.    65  (2,101) 
Covidien Ltd.:       
     expiring May 2009 at USD 33, Broker Barclays       
     Bank, Plc    175  (16,084) 
     expiring May 2009 at USD 33.69, Broker Credit Suisse     
     International    350  (38,958) 
     expiring May 2009 at USD 37, Broker Barclays       
     Bank, Plc    75  (1,861) 
Dominion Resources, Inc., expiring May 2009       
 at USD 31.87, Broker Goldman Sachs Bank USA    1,390  (14,081) 
Exxon Mobil Corp.:       
     expiring May 2009 at USD 71, Broker UBS AG    1,300  (79,807) 
     expiring May 2009 at USD 75, Broker Credit       
     Suisse International    675  (2,700) 
FPL Group, Inc.:       
     expiring May 2009 at USD 53, Broker Morgan Stanley     
     Capital Services Inc.    227  (28,196) 
     expiring May 2009 at USD 53, Broker Jeffries & Co.  500  (62,105) 
General Electric Co.:       
     expiring May 2009 at USD 13.11, Broker Citibank N.A.  250  (8,167) 
     expiring July 2009 at USD 13.17, Broker UBS AG    450  (41,926) 
General Mills, Inc.:       
     expiring May 2009 at USD 53, Broker Goldman       
     Sachs Bank USA    890  (34,301) 
     expiring June 2009 at USD 53.14, Broker Morgan       
     Stanley Capital Services Inc.    890  (65,299) 
Halliburton Co., expiring May 2009 at USD 20,       
 Broker Jeffries & Co.    1,250  (71,763) 
Home Depot, Inc., expiring June 2009 at USD 26.37,       
 Broker Morgan Stanley Capital Services Inc.    810  (128,855) 
Invesco Ltd., expiring May 2009 at USD 14.29, Broker       
 Credit Suisse International    1,280  (218,099) 
Kimberly-Clark Corp., expiring May 2009 at USD 48.84,     
 Broker Citibank N.A.    750  (78,998) 
Micron Technology, Inc., expiring May 2009 at USD 3.22,     
 Broker Deutsche Bank AG    3,350  (556,435) 
Microsoft Corp.:       
     expiring May 2009 at USD 18.68, Broker Citibank N.A.  635  (104,724) 
     expiring June 2009 at USD 20, Broker UBS AG    1,190  (120,369) 
Pfizer, Inc., expiring July 2009 at USD 14.06,       
 Broker UBS AG    2,000  (100,000) 
Schering-Plough Corp.:       
     expiring June 2009 at USD 23.84, Broker Citibank N.A.  2,100  (111,447) 
     expiring July 2009 at USD 24.54, Broker Citibank N.A.  2,100  (90,909) 
The Southern Co., expiring May 2009 at USD 32.50,       
 Broker UBS AG    1,070  (5,671) 
Verizon Communications, Inc., expiring June 2009       
 at USD 34.59, Broker UBS AG    2,300  (15,387) 
Wal-Mart Stores, Inc., expiring May 2009 at USD 53.25,     
 Broker Goldman Sachs Bank USA    300  (9,393) 
Walt Disney Co., expiring May 2009 at USD 19.50,       
 Broker Goldman Sachs Bank USA    500  (122,325) 
Wyeth, expiring June 2009 at USD 43, Broker UBS AG    460  (24,794) 
Xerox Corp., expiring May 2009 at USD 5.70,       
 Broker Deutsche Bank AG    5,100  (328,593) 
      (3,273,317) 
Total Options Written       
(Premiums Received — $10,076,704) — (2.3)%      (12,442,493) 
Total Investments, Net of Options Written — 99.8%      552,018,589 
Other Assets Less Liabilities — 0.2%      902,538 
Net Assets — 100.0%      $ 552,921,127 

* The cost and unrealized appreciation (depreciation) of investments as of April 30,
2009, as computed for federal income tax purposes, were as follows:

  Aggregate cost  $ 707,081,634 
  Gross unrealized appreciation  $ 7,465,563 
  Gross unrealized depreciation   (150,086,115) 
  Net unrealized depreciation  $(142,620,552) 
(a)  Depositary receipts.   
(b)  Non-income producing security.   

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

  Net   
Affiliate  Activity  Income 
BlackRock Liquidity Series, LLC     
   Cash Sweep Series  $(2,450,990)  $117,920 

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 ratings group indexes, and/or as defined by Fund
management. This definition may not apply for purposes of this report, which may
combine industry sub-classifications for reporting ease.
Financial Accounting Standards Board Statement of Financial Accounting Standards
No. 157, “Fair Value Measurements” clarifies the definition of fair value, establishes
a framework for measuring fair values and requires additional disclosures about the
use of fair value measurements. Various inputs are used in determining the fair
value of investments, which are as follows:
Level 1 — price quotations in active markets/exchanges for identical securities
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 identi-
cal or similar assets 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
circumstance, to the extent observable inputs are not available (including the
Fund’s own assumptions used in determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily an indica-
tion of the risk associated with investing in those securities. For information about
the Fund’s policy regarding valuation of investments and other significant accounting
policies, please refer to Note 1 of the Notes to Financial Statements.
The following table summarizes the inputs used as of April 30, 2009 in determining
the fair valuation of the Fund’s investments:

Valuation  Investments in  Other Financial 
Inputs  Securities  Instruments* 
  Assets  Liabilities 
Level 1  $554,381,852  $ (7,138,300) 
Level 2  10,079,230  (5,304,193) 
Level 3     
Total  $564,461,082  $(12,442,493) 

* Other financial instruments are options written, which are shown at market value.

See Notes to Financial Statements.

16 SEMI-ANNUAL REPORT

APRIL 30, 2009


Schedule of Investments April 30, 2009 (Unaudited) BlackRock Floating Rate Income Trust (BGT)
(Percentages shown are based on Net Assets)

    Par   
Corporate Bonds    (000)           Value 
Air Freight & Logistics — 0.0%       
Park-Ohio Industries, Inc., 8.375%, 11/15/14  USD  125  $ 55,313 
Auto Components — 0.0%       
The Goodyear Tire & Rubber Co., 6.318%, 12/01/09 (a)  60  59,175 
Lear Corp., 8.75%, 12/01/16    30  4,650 
      63,825 
Building Products — 0.0%       
CPG International I, Inc., 10.50%, 7/01/13    90  40,500 
Capital Markets — 1.0%       
E*Trade Financial Corp., 12.50%, 11/30/17 (b)(c)    2,656  1,321,484 
Marsico Parent Co., LLC, 10.625%, 1/15/16 (c)    1,501  645,430 
Marsico Parent Holdco, LLC, 12.50%, 7/15/16 (b)(c)    607  260,977 
Marsico Parent Superholdco, LLC,       
14.50%, 1/15/18 (b)(c)    415  178,355 
      2,406,246 
Chemicals — 0.4%       
American Pacific Corp., 9%, 2/01/15    125  108,750 
Ames True Temper, Inc., 5.131%, 1/15/12 (a)    1,100  913,000 
      1,021,750 
Commercial Banks — 4.6%       
SNS Bank NV Series EMTN, 2.875%, 1/30/12  EUR  8,500  11,332,070 
Commercial Services & Supplies — 0.1%       
DI Finance Series B, 9.50%, 2/15/13  USD  307  299,325 
Containers & Packaging — 0.1%       
Berry Plastics Holding Corp., 5.195%, 9/15/14 (a)    300  177,000 
Impress Holdings BV, 4.256%, 9/15/13 (a)(c)    150  123,000 
      300,000 
Diversified Financial Services — 0.1%       
FCE Bank Plc, 7.125%, 1/16/12  EUR  200  202,435 
Diversified Telecommunication Services — 1.1%       
Cincinnati Bell, Inc., 7.25%, 7/15/13  USD  290  286,375 
Qwest Corp., 4.57%, 6/15/13 (a)    2,500  2,262,500 
Wind Acquisition Finance SA, 10.75%, 12/01/15 (c)    150  156,000 
      2,704,875 
Electronic Equipment, Instruments & Components — 0.1%     
Sanmina-SCI Corp., 8.125%, 3/01/16    540  272,700 
Energy Equipment & Services — 0.1%       
Compagnie Generale de Geophysique-Veritas:       
     7.50%, 5/15/15    70  58,800 
     7.75%, 5/15/17    50  40,000 
      98,800 
Health Care Equipment & Supplies — 0.3%       
DJO Finance LLC, 10.875%, 11/15/14    1,000  765,000 
Health Care Providers & Services – 0.1%       
Tenet Healthcare Corp. (c):       
     9%, 5/01/15    95  95,950 
     10%, 5/01/18    35  36,400 
      132,350 
Hotels, Restaurants & Leisure — 0.1%       
American Real Estate Partners LP, 7.125%, 2/15/13    140  117,600 
Greektown Holdings, LLC, 10.75%, 12/01/13 (c)(d)    122  7,320 
Universal City Florida Holding Co. I,       
5.778%, 5/01/10 (a)    80  49,600 
      174,520 
Household Durables — 0.0%       
Berkline/BenchCraft, LLC, 4.50%, 11/03/12 (b)(d)    400  0 

    Par   
Corporate Bonds    (000)           Value 
Independent Power Producers & Energy Traders — 0.0%     
AES Ironwood LLC, 8.875%, 11/30/25  USD  84  $ 72,016 
Machinery — 0.3%       
Sunstate Equipment Co. LLC, 10.50%, 4/01/13 (c)    210  111,300 
Synventive Molding Solutions Sub-Series A,       
 14%, 1/14/11    936  514,922 
      626,222 
Media — 1.1%       
Affinion Group, Inc., 10.125%, 10/15/13    50  42,750 
CSC Holdings, Inc., 8.50%, 4/15/14 (c)    550  561,000 
Charter Communications Holdings II (d):       
     LLC, 10.25%, 9/15/10    260  236,600 
     LLC Series B, 10.25%, 9/15/10    45  40,725 
EchoStar DBS Corp.:       
     6.375%, 10/01/11    135  130,950 
     7%, 10/01/13    158  150,890 
     7.125%, 2/01/16    230  215,050 
Local Insight Regatta Hldgs, Inc., 11%, 12/01/17    977  234,480 
Nielsen Finance LLC, 10%, 8/01/14    400  376,000 
Rainbow National Services LLC, 8.75%, 9/01/12 (c)    750  765,000 
      2,753,445 
Metals & Mining — 0.3%       
Foundation PA Coal Co., 7.25%, 8/01/14    505  468,388 
Freeport-McMoRan Copper & Gold, Inc.,       
 4.995%, 4/01/15 (a)    200  175,500 
      643,888 
Oil, Gas & Consumable Fuels — 10.3%       
Morgan Stanley Bank AG for OAO Gazprom,       
 9.625%, 3/01/13    11,530  11,184,100 
Pemex Project Funding Master Trust,       
 2.931%, 10/15/09 (a)(e)    12,700  12,700,000 
SandRidge Energy, Inc., 4.833%, 4/01/14 (a)    1,400  1,015,463 
Whiting Petroleum Corp., 7.25%, 5/01/13    300  264,000 
      25,163,563 
Paper & Forest Products — 0.5%       
Abitibi-Consolidated, Inc., 4.82%, 6/15/11 (a)(d)    840  54,600 
Ainsworth Lumber Co. Ltd., 11%, 7/29/15 (c)    470  119,248 
NewPage Corp., 7.278%, 5/01/12 (a)    1,500  645,000 
Verso Paper Holdings LLC Series B,       
 4.778%, 8/01/14 (a)    1,215  410,063 
      1,228,911 
Pharmaceuticals — 0.5%       
Angiotech Pharmaceuticals, Inc.,       
 5.011%, 12/01/13 (a)    1,750  1,225,000 
Real Estate Investment Trusts (REITs) — 1.3%       
Rouse Co. LP, 5.375%, 11/26/13 (d)    6,350  3,222,625 
Specialty Retail — 0.2%       
General Nutrition Centers, Inc., 6.404%, 3/15/14 (a)    500  395,000 
Lazy Days’ R.V. Center, Inc., 11.75%, 5/15/12 (d)    375  22,500 
Michaels Stores, Inc., 10%, 11/01/14    185  111,925 
      529,425 
Tobacco — 0.7%       
Reynolds American, Inc., 7.625%, 6/01/16    2,000  1,758,744 
Wireless Telecommunication Services — 1.1%       
iPCS, Inc., 3.153%, 5/01/13 (a)  USD  1,155  935,550 
Nordic Telephone Co. Holdings ApS,       
 6.872%, 5/01/16 (a)(e)  EUR  1,500  1,667,108 
      2,602,658 
Total Corporate Bonds — 24.4%      59,696,206 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

APRIL 30, 2009

17


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

    Par   
Foreign Government Obligations    (000)           Value 
Brazilian Government International Bond:       
     6.982%, 6/29/09 (a)  USD  6,935  $ 6,987,013 
     10.25%, 6/17/13    475  572,375 
Colombia Government International Bond,       
 4.866%, 3/17/13 (a)(e)    1,200  1,128,000 
Costa Rica Government International Bond,       
 9.335%, 5/15/09 (e)    3,200  3,188,000 
Malaysia Government International Bond,       
 8.75%, 6/01/09    800  803,471 
Mexican Bonos Series M, 9%, 12/22/11  MXN  13,520  1,054,366 
Republic of Venezuela, 2.101%, 4/20/11 (a)(e)  USD  4,000  3,120,000 
South Africa Government International Bond,       
 7.375%, 4/25/12    2,400  2,550,000 
Turkey Government International Bond, 7%, 9/26/16    2,735  2,762,350 
Uruguay Government International Bond,       
 6.875%, 1/19/16  EUR  950  1,143,821 
Total Foreign Government Obligations — 9.5%      23,309,396 
Floating Rate Loan Interests       
Aerospace & Defense — 1.2%       
Avio S.p.A. Dollar Mezzanine Term Loan,       
 4.25% – 5.811%, 12/13/16  USD  1,039  232,094 
Hawker Beechcraft Acquisition Company LLC:       
     Letter of Credit Facility Deposit, 1.12% – 2.10%,       
     3/26/14    215  110,750 
     Term Loan, 2.428% – 3.22%, 3/26/14    3,661  1,881,272 
IAP Worldwide Services, Inc. Term Loan (First-Lien),       
 2% – 7.25%, 12/30/12    1,045  585,252 
      2,809,368 
Airlines — 0.3%       
US Airways Group, Inc. Loan, 2.941%, 3/21/14    1,460  665,112 
Auto Components — 2.2%       
Allison Transmission, Inc. Term Loan, 3.21% – 3.22%,       
 8/07/14    5,808  4,143,457 
Dana Holding Corporation Term Advance, 7.25%,       
 1/31/15    2,235  659,470 
Dayco Products LLC — (Mark IV Industries, Inc.)       
 Replacement Term B Loan, 8.06% – 8.75%,       
 6/21/11    853  117,762 
GPX International Tire:       
     Corporation Tranche B Term Loan, 9.23% – 10.25%,     
     3/30/12    630  340,504 
     Term Loan, 12%, 4/11/12    10  5,287 
Metaldyne Company LLC:       
     Deposit Funded Loan, 0.261% – 5.188%, 1/11/12  104  12,150 
     Initial Tranche B Term Loan, 6.188%, 1/13/14    710  82,840 
      5,361,470 
Beverages — 0.1%       
Culligan International Company Loan (Second Lien),       
 5.836% – 6.561%, 4/24/13   EUR  1,000  208,388 
Le-Nature’s, Inc. Tranche B Term Loan,       
 9.50%, 3/01/11 (d)  USD  1,000  100,000 
      308,388 
Building Products — 1.5%       
Building Materials Corporation of America Term Loan       
 Advance, 3.25%, 2/22/14    2,692  2,006,990 
Custom Building Products, Inc. Loan (Second Lien),       
 10.75%, 4/20/12    1,500  810,000 

    Par   
Floating Rate Loan Interests    (000)           Value 
Building Products (concluded)       
Momentive Performance Materials (Blitz 06-103 GMBH)     
 Tranche B-1 Term Loan, 2.688%, 12/04/13  USD  1,224  $ 810,671 
United Subcontractors, Inc. Tranche B Term Loan,       
 6.43% – 6.80%, 12/27/12    2,275  117,548 
      3,745,209 
Capital Markets — 0.5%       
Marsico Parent Company, LLC Term Loan, 4.75% – 7.50%,     
 12/15/14    465  220,932 
Nuveen Investments, Inc. Term Loan, 4.232% – 3.438%,     
 11/13/14    1,489  964,878 
      1,185,810 
Chemicals — 7.5%       
Brenntag Holding Gmbh & Co. KG:       
     Acquisition Facility 1, 2.447% – 3.501%, 1/20/14    393  314,182 
     Facility 3B (Second Lien), 5.501%, 7/17/15    1,000  558,333 
     Facility B2, 2.447% – 3.501%, 1/20/14    1,607  1,285,818 
     Facility B6A and B6B, 3.597%, 11/24/37  EUR  500  517,663 
Cognis GMBH:       
     Facility B (French) 3.65%, 11/16/13    197  191,047 
     Facility A 3.65%, 11/17/13    803  786,486 
ElectricInvest Holding Company Limited (Viridian       
 Group PLC) Junior Term Facility:       
     5.499%, 4/20/12  EUR  1,787  1,513,467 
     5.395%, 12/21/12  GBP  1,800  1,704,218 
Huish Detergents Inc.:       
     Loan (Second Lien), 4.76%, 10/26/14  USD  750  611,250 
     Tranche B Term Loan, 2.18%, 4/26/14    1,734  1,529,918 
Ineos US Finance LLC Term:       
     A4 Facility, 7.001%, 12/14/12    1,385  706,267 
     B2 Facility, 7.501%, 12/16/13    631  332,342 
     C2 Facility, 8.001%, 12/16/14    631  332,342 
Lucite International Group Holdings Limited PIK,       
 10.405%, 7/03/14  EUR  1,218  1,495,306 
Matrix Acquisition Corp. (MacDermid, Incorporated)       
 Tranche C Term Loan, 3.209%, 12/15/13    1,747  1,132,508 
PQ Corporation (fka Niagara Acquisition, Inc.):       
     Loan (Second Lien), 7.54%, 7/30/15  USD  2,250  915,001 
     Term Loan (First Lien), 4.29% – 4.47%, 7/31/14    2,729  1,787,741 
Rockwood Specialties Group, Inc. Tranche E Term Loan,       
 2.178%, 7/30/12    1,235  1,107,471 
Solutia Inc. Loan, 8.50%, 2/28/14    1,985  1,550,722 
TPG Spring (UK) Limited (British Vita Plc) Mezzanine,       
 11.657%, 7/22/13  EUR  2,148  3,553 
      18,375,635 
Commercial Services & Supplies – 2.5%       
Aramark Corporation:       
     Facility Letter of Credit, 0.311% – 2.025%,       
     1/26/14  USD  155  140,844 
     U.S. Term Loan, 3.095%, 1/26/14    2,437  2,216,975 
EnviroSolutions Real Property Holdings, Inc. Initial       
 Term Loan, 10.50%, 7/07/12    2,017  958,224 
John Maneely Company Term Loan, 3.71% – 4.389%,       
 12/09/13    1,388  994,145 
SIRVA Worldwide, Inc. Loan (Second Lien),       
 12%, 5/12/15    127  6,334 
Synagro Technologies, Inc. Term Loan (First Lien),       
 2.43% – 2.46%, 4/02/14    1,981  1,287,714 
West Corporation Term B-2 Loan, 2.808% – 2.864%,       
10/24/13    438  367,568 
      5,971,804 

See Notes to Financial Statements.

18 SEMI-ANNUAL REPORT

APRIL 30, 2009


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

    Par   
Floating Rate Loan Interests    (000)           Value 
Computers & Peripherals — 0.7%       
Intergraph Corporation:       
     Initial Term Loan (First Lien), 3.256%, 5/29/14  USD  1,169  $ 1,063,508 
     Second Lien Term Loan, 6.438% – 7.256%,       
     11/28/2014    750  615,625 
      1,679,133 
Construction & Engineering — 0.7%       
Airport Development and Investment Limited (BAA)       
 Facility (Second Lien), 5.538%, 4/07/11  GBP  566  340,039 
Brand Energy & Infrastructure Services, Inc. (FR Brand       
 Acquisition Corp.):       
     First Lien Term Loan B, 3.188% – 3.50%,       
     2/7/2014  USD  987  661,389 
     Second Lien Term Loan, 6.438% – 7.313%,       
     2/7/2015    1,000  385,000 
     Synthetic Letter of Credit Term Loan (First Lien),       
     1.125% – 2.375%, 2/07/14    500  335,000 
      1,721,428 
Construction Materials — 0.3%       
Headwaters Incorporated Term Loan B1 (First Lien),       
 6.22%, 4/30/11    1,234  765,313 
Containers & Packaging — 4.6%       
Atlantis Plastic Films, Inc. Term Loan (Second Lien),       
 12.25%, 3/22/12 (d)    500  0 
Graham Packaging Company, L.P. New Term Loan,       
 2.688 – 2.813%, 10/07/11    915  821,813 
Graphic Packaging International, Inc. Incremental       
 Term Loan, 3.21% – 3.958%, 5/16/14    2,713  2,483,982 
Modelo 3 S.a.r.l. (Mivisa) Tranche B2 Term Facility,       
 5.452%, 6/03/15  EUR  1,000  955,279 
OI European Group B.V. Tranche D Term Loan,       
 2.492%, 6/14/13    1,915  2,195,908 
Pregis Corporation Term Loan B2 (Euro),       
 3.459%, 9/30/12    471  486,461 
Smurfit Kappa Acquisitions (JSG):       
     C1 Term Loan Facility, 3.116% – 3.132%,       
     7/16/2015    750  776,495 
     Term B1, 2.866% – 4.912%, 7/16/14    750  776,495 
Smurfit-Stone Container Canada, Inc., Tranche C-1       
 Term Loan, 2.82%, 11/01/11    8  6,041 
Smurfit-Stone Container Debtor in Possession, Term Loan,     
 10%, 7/28/10    1,340  1,348,375 
Smurfit-Stone Container Enterprises, Inc.:       
     Deposit Funded Facility, 4.50%, 11/01/10    12  9,352 
     Tranche B, 2.82%, 11/01/11    14  10,490 
     Tranche C, 2.82%, 11/01/11  USD  26  19,980 
Smurfit-Stone Container Revolving Credit:       
     0.50% – 4.50%, 11/01/09    60  46,777 
     0.50% – 5.0%, 11/01/10    20  15,512 
Solo Cup Co. Term B1 Loan, 4.692% – 5.75%,       
 2/27/2011    1,397  1,300,202 
      11,253,162 
Distributors — 0.3%       
Keystone Automotive Operations, Inc. Loan,       
 3.948% – 5.75%, 1/12/12    1,660  663,934 
Diversified Consumer Services — 0.9%       
Coinmach Corporation Term Loan, 4.26%, 11/14/14    2,552  1,786,105 
Coinmach Laundry Corp Delay Draw Term Loan,       
 4.44%, 11/14/14    500  348,333 
      2,134,438 

    Par   
Floating Rate Loan Interests    (000)           Value 
Diversified Financial Services — 0.4%       
J.G. Wentworth, LLC Loan (First Lien),       
 3.47%, 4/04/14 (d)  USD  3,800  $ 380,000 
Professional Service Industries, Inc. Term Loan       
 (First Lien), 3.19%, 10/31/12    649  564,323 
      944,323 
Diversified Telecommunication Services — 4.9%       
BCM Ireland Holdings Limited (Eircom):       
     Facility B, 2.848%, 8/14/14  EUR  1,970  1,669,378 
     Facility C, 3.098%, 8/14/13    1,970  1,669,564 
     Facility D, 5.223%, 2/14/16    1,000  522,625 
Cavtel Holdings, LLC Term Loan, 1.0% – 8.50%,       
 12/31/12  USD  388  157,656 
Hawaiian Telcom Communications, Inc. Tranche C       
 Term Loan, 4.75%, 5/30/14    1,208  588,060 
Nordic Telephone Company Holdings APS Euro Facility:       
     B2, 2.637%, 4/06/14  EUR  885  1,080,935 
     C2, 3.262%, 4/06/15    1,058  1,291,507 
PAETEC Holding Corp. Replacement Term Loan,       
 2.928% – 4.75%, 2/28/13  USD  737  626,420 
Time Warner Telecom Holdings Inc. Term Loan B Loan,       
 2.43%, 1/07/13    1,124  1,020,921 
Wind Telecomunicazioni S.P.A:       
     A1 Term Loan Facility, 2.499% – 2.521%,       
     9/22/2012  EUR  848  989,979 
     B1 Term Loan Facility, 3.249%, 9/22/13    1,000  1,172,599 
     C1 Term Loan Facility, 4.249%, 9/22/14    1,000  1,172,599 
      11,962,243 
Electric Utilities — 0.9%       
Astoria Generating Co. Acquisitions, LLC:       
     Second Lien Term Loan C, 4.20%, 8/23/13  USD  1,500  1,276,875 
     Term B Facility, 2.20% – 4.0%, 2/23/13    407  370,433 
TPF Generation Holdings, LLC:       
     First Lien Term Loan, 2.428%, 12/15/13    441  409,551 
     Synthetic Letter of Credit Deposit (First Lien),       
     1.12% – 2.10%, 12/15/13    151  139,682 
     Synthetic Revolving Deposit, 1.12% – 2.10%,       
     12/15/2011    47  43,787 
      2,240,328 
Electrical Equipment — 0.4%       
Electrical Components International Holdings Company       
 (ECI) Term Loan (Second Lien), 11.50%, 5/01/14    500  50,000 
Generac Acquisition Corp. First Lien Term Loan,       
 2.995%, 11/10/13    1,464  943,028 
      993,028 
Electronic Equipment, Instruments & Components — 1.3%     
Flextronics International Ltd.:       
     A Closing Date Loan, 2.739% – 3.458%, 10/01/14    2,680  2,050,113 
     A-1 Delay Draw Term Loan, 3.381%, 10/01/12    770  589,113 
Matinvest 2 SAS (Deutsche Connector) Second Lien       
 Facility, 4.989%, 12/22/15    500  180,000 
Safenet, Inc. Loan (Second Lien), 6.46%, 4/12/15    500  276,250 
Tinnerman Palnut Engineered Products, LLC Second       
 Lien Term Loan, 13%, 11/01/11    2,349  70,468 
      3,165,944 
Energy Equipment & Services — 1.0%       
Dresser, Inc. Term Loan (Second Lien), 6.988%, 5/04/15  1,500  817,500 
MEG Energy Corp. Initial Term Loan, 3.22%, 4/03/13    485  409,825 
Trinidad USA Partnership LLP U.S. Term Loan,       
 3.009%, 5/01/11    1,455  1,178,550 
      2,405,875 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

APRIL 30, 2009

19


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

    Par   
Floating Rate Loan Interests    (000)           Value 
Food & Staples Retailing — 3.2%       
AB Acquisitions UK Topco 2 Ltd. Facility B2 UK Borrower,       
 3.61%, 7/09/15  GBP  2,500  $ 2,625,856 
Advantage Sales & Marketing, Inc. (ASM Merger       
 Sub, Inc.) Term Loan, 2.43 – 2.49%, 3/29/13  USD  903  776,679 
Birds Eye Iglo Group Limited (Liberator Midco Limited):       
     Facility B1 (EUR), 3.223%, 10/27/19  EUR  500  585,945 
     Facility C1 (EUR), 3.598%, 10/27/15    489  572,718 
     Sterling Tranche Loan (Mezz), 4.0% – 4.849%,       
     11/2/2015  GBP  403  385,553 
DS Waters of America, Inc. Term Loan,       
 4.448%, 10/29/12  USD  1,000  442,500 
McJunkin Corporation Term Loan, 4.47%, 1/31/14    978  830,061 
Roundy’s Supermarkets, Inc. Tranche B Term Loan,       
 3.18% – 3.22%, 11/03/11       
WM. Bolthouse Farms, Inc.:    504  457,799 
     Second Lien Term Loan, 5.928%, 12/16/13    500  349,167 
     Term Loan (First Lien), 2.813%, 12/16/12    923  808,721 
      7,834,999 
Food Products — 3.3%       
Dole Food Company, Inc:       
     Credit-Linked Deposit, 1.139% – 6.861%, 4/12/13    193  182,627 
     Tranche B Term Loan, 7.25% – 8%, 4/12/13    338  320,073 
FSB Holdings, Inc. (Fresh Start Bakeries) Term Loan       
 (Second Lien), 6.188%, 3/29/14    500  250,000 
Solvest, Ltd. (Dole) Tranche C Term Loan, 7.25% – 8%,       
 4/12/13    1,258  1,192,619 
Sturm Foods, Inc. Initial Term Loan:       
     First Loan, 3.438% – 3.625%, 1/31/14 (b)    831  576,406 
     Second Lien, 7.125%, 7/31/14    750  225,000 
United Biscuits Holdco Limited Facility:       
     B1, 3.373%, 1/23/15  GBP  1,651  1,915,002 
     B2, 4.843%, 12/14/14  EUR  535  565,850 
Wm. Wrigley Jr. Company Tranche B Term Loan,       
 6.50%, 10/06/14  USD  3,000  2,996,574 
      8,224,151 
Health Care Equipment & Supplies — 3.1%       
Arizant Inc. Term Loan, 2.928% – 3.0% 7/31/10    2,621  2,359,244 
Bausch & Lomb Incorporated:       
     Delayed Draw Term Loan, 1.50% – 4.47%,       
     4/24/2015    74  63,844 
     Parent Term Loan, 4.47%, 4/24/15    389  336,248 
Biomet, Inc. Euro Term Loan, 3.959% – 4.557%,       
 3/25/15  EUR  2,534  3,034,553 
DJO Finance LLC (ReAble Therapeutics Fin LLC)       
 Term Loan, 3.428% – 4.22%, 5/20/14  USD  1,492  1,314,096 
Hologic, Inc. Tranche B Term Loan, 3.75%, 3/31/13    568  536,460 
      7,644,445 
Health Care Providers & Services — 4.1%       
CCS Medical, Inc. (Chronic Care) Term Loan (First Lien),       
 4.97%, 9/30/12    215  100,836 
CHS/Community Health Systems, Inc.:       
     Delayed Draw Term Loan, 1.0% – 2.678%, 7/25/14    229  206,230 
     Funded Term Loan, 2.678% – 3.506%, 7/25/14    4,491  4,042,503 
HCA Inc. Tranche A-1 Term Loan, 3.22%, 11/17/12    1,494  1,349,990 
HealthSouth Corporation Term Loan, 2.93% – 2.96%,       
 3/10/13    2,216  1,994,382 
Opica AB (Capio) Tranche C2, 3.388%, 4/15/16  EUR  1,088  1,181,769 
Surgical Care Affiliates, LLC Term Loan,       
 3.22%, 12/29/14  USD  494  408,552 
Vanguard Health Holding Company II, LLC (Vanguard       
 Health System, Inc.) Replacement Term Loan,       
 2.678%, 9/23/11    966  904,008 
      10,188,270 

    Par   
Floating Rate Loan Interests    (000)           Value 
Hotels, Restaurants & Leisure — 3.0%       
BLB Worldwide Holdings, Inc. (Wembley, Inc.):       
     First Priority Term Loan, 4.75%, 7/18/11  USD  2,418  $ 725,463 
     Second Priority Term Loan, 7.06%, 7/18/12 (d)    1,500  93,750 
Golden Nugget, Inc.:       
     Additional Term Advance (First Lien), 2.0% – 2.46%,       
     6/30/14    227  103,769 
     Second Lien Term Loan, 3.69%, 12/31/14    1,000  160,000 
     Term Advance (First Lien), 2.44%, 6/30/14    477  218,352 
Green Valley Ranch Gaming, LLC:       
     Second Lien Term Loan, 3.71%, 8/16/14    1,500  90,000 
     Term Loan (New), 3.149% – 4%, 2/16/14    472  190,918 
Harrah’s Operating Company, Inc.:       
     Term B-1 Loan, 3.428% – 4.092%, 1/28/15    314  221,789 
     Term B-2 Loan, 3.438% – 4.092%, 1/28/15    2,361  1,672,428 
     Term B-3 Loan, 3.428% – 4.092%, 1/28/15    902  640,852 
OSI Restaurant Partners, LLC Pre-Funded RC Loan,       
 1.14% – 4.50%, 6/14/13    32  22,451 
Penn National Gaming, Inc. Term Loan B,       
 2.18% – 2.99%, 10/03/12    2,619  2,436,872 
QCE, LLC (Quiznos) Term Loan (Second Lien),       
 6.982%, 11/05/13    2,500  775,000 
      7,351,644 
Household Durables — 2.0%       
American Residential Services LLC Term Loan       
 (Second Lien), 2.0% – 10%, 4/17/15    2,030  1,745,380 
Berkline/BenchCraft, LLC, Term Loan,       
 4.178%, 11/03/11 (d)    95  4,735 
Jarden Corporation Term Loan B3, 1.22% – 3.25%,       
 1/24/12    1,228  1,187,147 
Simmons Bedding Company Tranche D Term Loan,       
 10.50%, 12/19/11    1,500  1,172,501 
Yankee Candle Company, Inc. Term Loan, 2.44% –       
 3.22%, 2/06/14    947  785,529 
      4,895,292 
Household Products — 0.3%       
VI-JON, Inc. (VJCS Acquisition, Inc.) Tranche B       
 Term Loan, 2.697%, 4/24/14    750  650,625 
IT Services — 3.7%       
Amadeus IT Group SA/Amadeus Verwaltungs GmbH:       
     Term B3 Facility, 3.107%, 6/30/13  EUR  615  554,943 
     Term B4 Facility, 3.107%, 6/30/13    496  448,080 
     Term C3 Facility, 3.607%, 6/30/14    615  554,943 
     Term C4 Facility, 3.607%, 6/30/14    496  448,080 
Audio Visual Services Group, Inc. Loan (Second Lien),       
 7.72%, 8/28/14  USD  1,020  56,095 
Ceridian Corp U.S. Term Loan, 3.447%, 11/09/14    1,977  1,433,501 
First Data Corporation Initial Tranche:       
     B-1 Term Loan, 3.178% – 3.19%, 9/24/14    2,466  1,796,019 
     B-2 Term Loan, 3.19% – 3.178%, 9/24/14    495  360,465 
     B-3 Term Loan, 3.178% – 3.19%, 9/24/14    980  713,257 
RedPrairie Corporation:       
     Second Lien Loan 7.736%, 1/20/13    1,250  612,500 
     Term Loan B, 4.25% – 5.25%, 7/20/12    849  581,296 
SunGard Data Systems Inc. (Solar Capital Corp.)       
 New U.S. Term Loan, 2.219% – 2.991%, 2/28/14    1,780  1,593,715 
      9,152,894 
Independent Power Producers & Energy Traders — 3.6%     
Texas Competitive Electric Holdings Company, LLC (TXU)       
 Initial Tranche:       
     B-1 Term Loan, 3.928% – 3.969%, 10/10/14    2,490  1,676,445 
     B-2 Term Loan, 3.928% – 3.969%, 10/10/14    5,462  3,687,721 
     B-3 Term Loan, 3.928% – 3.969%, 10/10/14    5,004  3,369,988 
      8,734,154 

See Notes to Financial Statements.

20 SEMI-ANNUAL REPORT

APRIL 30, 2009


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

    Par   
Floating Rate Loan Interests    (000)           Value 
Insurance — 0.4%       
Alliant Holdings I, Inc. Term Loan, 4.232%, 8/21/14  USD  985  $ 763,375 
Conseco, Inc. Term Loan, 1.0% – 6.50%, 10/10/13    730  292,081 
      1,055,456 
Internet & Catalog Retail — 0.3%       
FTD Group, Inc. Tranche B Term Loan, 6.75%, 8/04/14    746  641,775 
Oriental Trading Company, Inc. Loan (Second Lien),       
 6.43%, 1/31/14    500  95,000 
      736,775 
Leisure Equipment & Products — 0.4%       
24 Hour Fitness Worldwide, Inc. Tranche B Term Loan,       
 2.93% – 3.67%, 6/08/12    970  630,500 
Kerasotes Showplace Theatres, LLC Term B2,       
 5%, 10/28/11    554  332,439 
      962,939 
Life Sciences Tools & Services — 1.2%       
Life Technologies Corporation Term B Facility,       
 5.25%, 11/20/15    2,985  2,971,009 
Machinery — 2.9%       
CI Acquisition, Inc. (Chart Industries) Term Loan B,       
 2.438%, 10/17/12    222  193,333 
LN Acquisition Corp. (Lincoln Industrial):       
     Delayed Draw Term Loan (First Lien),       
     2.97%, 7/11/2014    268  214,364 
     Initial U.S. Term Loan (First Lien),       
     2.97%, 7/11/2014    715  571,636 
NACCO Materials Handling Group, Inc. Loan,       
 2.428% – 4.595%, 3/21/13    486  179,913 
Navistar International Corporation:       
     Revolving Credit-Linked Deposit, 3.611% – 4.794%,       
     1/19/12    1,333  1,078,095 
     Term Advance, 3.678%, 1/19/12    3,667  2,964,760 
Oshkosh Truck Corporation Term B Loan, 7.15% – 7.32%,     
 12/06/13    2,118  1,731,685 
Standard Steel, LLC:       
     Delayed Draw Term Loan, 8.25%, 7/02/12    75  40,998 
     Initial Term Loan, 9%, 7/02/12    370  203,418 
      7,178,202 
Manufacturing — 0.2%       
Blount, Inc. Term Loan B, 2.201% – 3.25%, 8/09/10    536  490,471 
Marine — 0.7%       
Delphi Acquisition Holding I B.V. (fka Dockwise) Facility:       
     B1, 3.22%, 1/12/15    1,227  658,574 
     C1, 4.095%, 1/11/16    1,227  658,574 
     D1, 5.72%, 1/11/16    1,650  453,750 
      1,770,898 
Media — 28.5%       
Acosta, Inc. Term Loan, 2.68%, 7/28/13    1,191  1,022,008 
Affinion Group Holdings, Inc. Loan, 9.273%, 3/01/12    975  555,750 
AlixPartners, LLP Tranche C Term Loan, 2.46% – 3.14%,       
 10/12/13    931  852,294 
Alpha Topco Limited (Formula One):       
     Facility B1, 2.803%, 12/31/13    571  341,904 
     Facility B2, 2.803%, 12/31/13    393  235,059 
Amsterdamse Beheer — En Consultingmaatschappij B.V.       
 (Casema) Casema:       
     B1 Term Loan Facility, 4.031%, 11/02/14  EUR  625  750,033 
     C Term Loan Facility, 4.531%, 11/02/15    625  750,033 
Atlantic Broadband Finance, LLC Tranche B-2       
 Term Loan, 3.47%, 9/01/11  USD  1,945  1,741,047 

    Par   
Floating Rate Loan Interests    (000)           Value 
Media (continued)       
Bresnan Communications,:       
     LLC Additional Term Loan B (First Lien),       
     2.45% – 3.11%, 6/30/13  USD  1,250  $ 1,138,541 
     LLC Second Lien Term Loan, 4.97% – 4.99%,       
     3/29/14    250  197,500 
CSC Holdings Inc (Cablevision) Incremental Term Loan,       
 2.198%, 3/29/13    2,140  1,971,134 
Catalina Marketing Corporation Initial Term Loan,       
 4.22%, 10/01/14    1,670  1,461,173 
Cengage Learning Acquisitions, Inc. (Thomson Learning):       
     Term Loan, 2.93%, 7/03/14    1,473  1,082,306 
     Tranche 1 Incremental Term Loan, 7.50%, 7/03/14    4,219  3,101,236 
Cequel Communications, LLC (aka Cebridge)       
 Term Loan, 2.46% – 2.478%, 11/05/13    4,875  4,401,078 
Charter Communications Operating, LLC Replacement       
 Term Loan, 5.23% – 6.25%, 3/06/14    1,305  1,096,700 
Charter Communications Term Loan B1, 5.23% – 6.25%,     
 3/25/14    750  704,297 
Clarke American Corp. Tranche B Term Loan,       
 2.928% – 3.72%, 6/30/14    1,967  1,316,236 
Cumulus Media, Inc. Replacement Term Loan,       
 2.21%, 6/11/14    1,383  691,463 
Dex Media West LLC Tranche B Term Loan,       
 7%, 10/24/14    1,500  1,001,250 
Discovery Communications Holding, LLC Term B Loan,       
 3.22%, 5/14/14    1,970  1,840,906 
FoxCo Acquisition Sub, LLC Term Loan, 7.25%, 7/14/15    899  539,423 
Getty Images, Inc Initial Term Loan, 6.25%, 7/02/15    488  474,703 
Gray Television, Inc. Term Loan B – DD, 3% – 4%,       
 12/31/14    845  352,712 
HIT Entertainment, Inc. 2nd Lien, 6.74%, 2/26/13    1,000  250,000 
HMH Publishing Company Limited       
 (fka Education Media):       
     Mezzanine, 5.256% – 5.50%, 11/14/14    7,195  1,510,949 
     Tranche A Term Loan, 8.256%, 6/12/14    2,623  1,613,257 
Hanley-Wood, LLC (FSC Acquisition) Term Loan,       
 2.688% – 2.71%, 3/08/14    2,219  678,210 
Hargray Acquisition Co., DPC Acquisition LLC/       
 HCP Acquisition:       
     Term Loan (First Lien), 3.486%, 6/27/14    982  836,832 
     Loan (Second Lien), 6.736%, 1/29/15    500  240,000 
Idearc Inc. (Verizon) Tranche B Term Loan,       
 6.25%, 11/17/14 (d)    1,101  427,244 
Insight Midwest Holdings, LLC B Term Loan,       
 2.50%, 4/07/14    700  638,750 
Kabel Deutschland Holding GMBH A Facility,       
 2.723%, 6/01/12  EUR  4,000  4,760,222 
Knology, Inc. Term Loan, 2.751%, 6/30/12  USD  484  412,636 
Lavena Holding 3 GmbH (Prosiebensat.1       
 Media AG) Facility:       
     B1, 4.589%, 6/28/15  EUR  337  65,729 
     C1, 4.839%, 6/30/16    674  131,457 
Liberty Cablevision of Puerto Rico, Ltd. Initial Term       
 Facility, 2.451%, 6/17/14  USD  1,474  884,250 
Local TV Finance, LLC Term Loan, 2.43%, 5/07/13    742  341,524 
MCC Iowa LLC (Mediacom Broadband Group):       
     Tranche A Term Loan, 1.83%, 3/31/10    665  641,749 
     Tranche D-1 Term Loan, 2.08%, 1/31/15    1,216  1,073,949 
MCNA Cable Holdings LLC (OneLink Communications)       
 Loan (PIK facility), 8.31%, 3/01/13    1,855  1,149,871 
Mediannuaire Holding (Pages Jaunes):       
     Term Loan B2, 3.913%, 1/11/15  EUR  453  239,365 
     Term Loan C, 4.413%, 1/11/16    938  495,199 
     Term Loan D, 5.913%, 1/11/17    500  133,964 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

APRIL 30, 2009

21


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

    Par   
Floating Rate Loan Interests    (000)  Value 
Media (continued)       
Metro-Goldwyn-Mayer Inc. Tranche B Term Loan,       
 3.678%, 4/09/12  USD  1,915  $ 921,655 
Mission Broadcasting, Inc. Term B Loan,       
 2.97%, 10/01/12    1,776  1,065,783 
Multicultural Radio Broadcasting, Inc. Term Loan,       
 3.239% – 5%, 12/18/12    327  212,550 
NTL Cable Plc Term Loan, 3.889%, 11/19/37  GBP  1,779  2,165,784 
NV Broadcasting, LLC:       
     Second Lien, 5.25%, 11/03/14 (d)  USD  1,500  75,000 
     Term Loan (First Lien), 5.25%, 11/01/13    822  205,367 
Newsday, LLC:       
     Fixed Rate Term Loan, 9.75%, 8/01/13    1,500  1,455,000 
     Floating Rate Term Loan, 6.631%, 8/01/13    1,250  1,175,000 
Nexstar Broadcasting, Inc Term B Loan, 2.597% – 2.789%,     
 10/01/12    1,878  1,126,685 
Nielsen Finance LLC Dollar Term Loan, 2.469%, 8/09/13  3,808  3,216,449 
Parkin Broadcasting, LLC Term Loan, 5.25%, 11/01/13    169  42,127 
Penton Media, Inc.:       
     Loan (Second Lien), 6.039%, 2/01/14    1,000  96,250 
     Term Loan (First Lien), 2.678% – 3.289%, 2/1/2013  1,103  554,925 
Puerto Rico Cable Acquisition Company Inc.       
 (D/B/A Choice TV) Term Loan (Second Lien),       
 7.938%, 2/15/12    692  311,538 
Quebecor Media Term Loan B, 3.131%, 1/17/13    726  631,294 
Sunshine Acquisition Limited (aka HIT Entertainment)       
 Term Facility, 3.49%, 7/31/14    1,098  570,986 
TWCC Holding Corp. Term Loan, 7.25%, 9/14/15    1,244  1,230,063 
Telecommunications Management, LLC:       
     Multi-Draw Term Loan, 3.928%, 6/30/13    233  142,059 
     Term Loan, 3.928%, 6/30/13    924  563,564 
UPC Financing Partnership M Facility,       
 3.137%, 11/19/37  EUR  3,767  4,050,373 
Virgin Media Investment Holdings Limited (fka NTL)       
 C Facility, 4.919%, 7/17/13  GBP  1,500  1,701,260 
Wallace Theater Corporation (Hollywood Theaters):       
     First Lien Term Loan, 5.50%, 7/31/09  USD  1,746  1,370,414 
     Second Lien Term Loan, 9.25%, 1/31/10    2,500  1,625,000 
Yell Group Plc Facility B2 (Euro), 3.973%, 4/30/11  EUR  1,750  1,221,388 
      69,874,457 
Metals & Mining — 0.5%       
Algoma Steel Inc. Term Loan, 2.93%, 6/20/13  USD  1,944  1,091,753 
Euramax International, Inc. Domestic Loan       
 (Second Lien), 13%, 6/29/13    1,220  24,408 
      1,116,161 
Multi-Utilities — 0.7%       
FirstLight Power Resources, Inc. (fka NE Energy, Inc.):       
     First Lien Term Loan B, 3.75%, 11/01/13    1,230  1,082,781 
     Second Lien Term Loan, 5.75%, 5/01/14    750  480,000 
     Synthetic Letter of Credit, 1.10% –       
     2.65%, 11/01/13    159  139,512 
Mach Gen, LLC Synthetic Letter of Credit Loan       
 (First Lien), 0.982% – 2.25%, 2/22/13    69  57,488 
      1,759,781 
Multiline Retail — 0.5%       
Dollar General Corporation Tranche B-1 Term Loan,       
 3.178% – 3.789%, 7/07/14    1,250  1,150,348 

    Par   
Floating Rate Loan Interests    (000)           Value 
Oil, Gas & Consumable Fuels — 2.1%       
Big West Oil, LLC:       
     Delayed Advance Loan, 6.50%, 5/15/14  USD  550  $ 431,750 
     Initial Advance Loan, 6.50%, 5/15/14    438  343,437 
Coffeyville Resources, LLC:       
     Funded Letter of Credit, 3.15% – 5.60%, 12/28/10    324  257,568 
     Tranche D Term Loan, 8.75%, 12/30/13    1,042  827,496 
Drummond Company, Inc. Term Advance,       
 1.688%, 2/14/11    1,200  1,164,000 
Niska Gas Storage:       
     Canada ULC Canadian Term Loan B,       
     2.21%, 5/12/13    452  405,816 
     U.S., LLC Term B Loan, 2.21%, 5/12/13    47  42,649 
     U.S., LLC Wild Goose Acquisition Draw-U.S. Term B,       
     2.203%, 5/12/13    32  28,890 
Vulcan Energy Corporation (Fka Plains Resources Inc)       
 Term B3 Loan, 5.50%, 8/12/11    1,750  1,627,500 
      5,129,106 
Paper & Forest Products — 1.9%       
Georgia-Pacific LLC Term B Loan, 2.428% – 3.293%,       
 12/20/12    3,799  3,526,734 
NewPage Corporation Term Loan, 4.25% – 5%,       
 12/22/14    1,584  1,221,601 
Verso Paper Finance Holdings LLC Loan, 6.759 – 7.509%,     
 2/01/13    351  17,568 
      4,765,903 
Personal Products — 0.5%       
American Safety Razor Company, LLC Loan       
 (Second Lien), 6.68%, 1/30/14    2,000  1,310,000 
Pharmaceuticals — 1.5%       
Catalent Pharma Solutions, Inc. (fka Cardinal Health       
 409, Inc.) Euro Term Loan, 3.223%, 4/15/14  EUR  2,456  2,339,905 
Warner Chilcott Company, Inc. Acquisition Date       
 Term Loan:       
     Tranche B, 2.428% – 3.22%, 1/18/12  USD  1,046  978,833 
     Tranche C, 2.428%, 1/18/12    414  387,730 
      3,706,468 
Professional Services — 0.4%       
Booz Allen Hamilton Inc. Tranche B Term Loan,       
 7.50%, 7/31/15    998  975,260 
Real Estate Management & Development — 0.2%       
Enclave First Lien Term Loan, 6.14%, 3/01/12    2,000  300,000 
Georgian Towers Term Loan, 6.14%, 3/01/12    2,000  210,058 
Pivotal Promontory, LLC Second Lien Term Loan,       
 12%, 8/31/11 (d)    750  37,500 
      547,558 
Road & Rail — 0.8%       
RailAmerica, Inc.:       
     Canadian Term Loan, 5.20%, 8/14/09    196  172,208 
     U.S. Term Loan, 5.20%, 8/14/09    2,054  1,807,792 
      1,980,000 
Software — 0.3%       
Bankruptcy Management Solutions, Inc.:       
     First Lien Term Loan, 4.43%, 7/31/12    945  529,339 
     Loan (Second Lien), 6.678%, 7/31/13    488  110,906 
      640,245 
Specialty Retail — 1.3%       
Adesa, Inc. (KAR Holdings, Inc.) Initial Term Loan,       
 2.68% – 3.47%, 10/20/13    1,395  1,156,611 
Burlington Coat Factory Warehouse Corporation       
 Term Loan, 2.68%, 5/28/13    517  356,711 

See Notes to Financial Statements.

22 SEMI-ANNUAL REPORT

APRIL 30, 2009


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

    Par   
Floating Rate Loan Interests    (000)           Value 
Specialty Retail (concluded)       
General Nutrition Centers, Inc. Term Loan,       
 2.25% – 3.49%, 9/16/13  USD  988  $ 828,754 
OSH Properties LLC (Orchard Supply) Term Loan B,       
 2.902%, 12/21/13    1,500  975,000 
      3,317,076 
Textiles, Apparel & Luxury Goods — 0.1%       
Renfro Corporation Tranche B Term Loan, 3.68% – 4.48%,     
 10/05/13    435  174,003 
Trading Companies & Distributors — 0.4%       
Beacon Sales Acquisition, Inc. Term B Loan,       
 2.438%, 9/30/13    1,194  955,000 
Transportation Infrastructure — 0.7%       
SBA Telecommunications Term Loan, 2.438 – 3.208%,       
 11/01/10    1,993  1,773,966 
Wireless Telecommunication Services — 1.4%       
Cricket Communications, Inc. (aka Leap Wireless)       
 Term B Loan, 5.75%, 6/16/13    1,765  1,679,302 
Digicel Group Term Loan B, 3.75%, 3/01/12    250  233,125 
MetroPCS Wireless, Inc. New Tranche B Term Loan,       
 2.688% – 3.438%, 11/03/13    1,614  1,503,164 
      3,415,591 
Total Floating Rate Loan Interests — 106.4%      260,785,092 
Common Stocks    Shares   
Capital Markets — 0.1%       
E*Trade Financial Corp. (f)  121,011  173,046 
Commercial Services & Supplies — 0.0%       
Sirva Common Stock    554  2,770 
Paper & Forest Products — 0.0%       
Ainsworth Lumber Co. Ltd. (f)    55,855  39,786 
Ainsworth Lumber Co. Ltd. (c)(f)    62,685  44,847 
      84,633 
Total Common Stocks — 0.1%      260,449 
Preferred Stocks       
Capital Markets — 0.0%       
Marsico Parent Superholdco, LLC, 16.75% (c)    100  43,000 
Total Preferred Stocks — 0.0%      43,000 
Warrants (g)       
Machinery — 0.0%       
Synventive Molding Solutions (expires 1/15/13)    2  0 
Total Warrants — 0.0%      0 

Beneficial Interest   
Other Interests (h)  (000)  Value 
Health Care Providers & Services — 0.0%     
Critical Care Systems International, Inc.  USD 947  $ 191 
Household Durables — 0.0%     
Berkline Benchcraft Equity LLC  6,155   
Total Other Interests — 0.0%    191 
Total Long-Term Investments     
(Cost — $478,352,869) — 140.4%    344,094,334 
Short-Term Securities  Shares   
Money Market Fund — 1.3%     
BlackRock Liquidity Funds, TempFund, 0.64% (i)(j)  3,151,730  3,151,730 
Total Short-Term Securities     
(Cost — $3,151,730) — 1.3%    3,151,730 
Options Purchased  Contracts   
Over-the-Counter Put Options — 0.0%     
Marsico Parent Superholdco LLC, expiring     
December 2009 at USD 942.86, Broker Goldman     
 Sachs Group, Inc.  26  41,600 
Total Options Purchased (Cost — $25,422) — 0.0%    41,600 
Total Investments (Cost — $481,530,021*) — 141.7%    347,287,664 
Liabilities in Excess of Other Assets — (17.7)%    (43,343,601) 
Preferred Shares, at Redemption Value — (24.0)%    (58,811,150) 
Net Assets Applicable to Common Shares — 100.0%    $ 245,132,913 

* The cost and unrealized appreciation (depreciation) of investments as of April 30,
2009, as computed for federal income tax purposes, were as follows:

Aggregate cost  $ 481,568,756 
Gross unrealized appreciation  $ 1,632,062 
Gross unrealized depreciation   (135,913,154) 
Net unrealized depreciation  $(134,281,092) 

(a) Variable rate security. Rate shown is as of report date.
(b) Represents a payment-in-kind security which may pay interest/dividends in addi-
tional par/shares.
(c) Security exempt from registration under Rule 144A of the Securities Act of 1933.
These securities may be resold in transactions exempt from registration to qualified
institutional investors.
(d) Issuer filed for bankruptcy and/or is in default of interest payments.
(e) Restricted securities as to resale, representing 8.9% of net assets were as follows:

  Acquisition     
Issue  Date(s)  Cost  Value 
Colombia Government       
   International Bond,       
   4.866%, 3/17/13  2/15/06  $ 1,289,727  $ 1,128,000 
Costa Rica Government       
   International Bond,  8/30/04 –     
   9.335%, 5/15/09  11/01/04  3,202,951  3,188,000 
Nordic Telephone       
   Co. Holdings ApS,       
   6.872%, 5/01/16  4/26/06  1,867,951  1,667,108 
Pemex Project       
   Funding Master Trust,  8/27/04 –     
   2.931%, 10/15/09  12/15/04  12,760,205  12,700,000 
Republic of Venezuela,       
   2.101%, 4/20/11  10/26/04  3,810,281  3,120,000 
Total    $22,931,115  $21,803,108 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

APRIL 30, 2009

23


Schedule of Investments (concluded) BlackRock Floating Rate Income Trust (BGT)

(f) Non-income producing security.
(g) Warrants entitle the Fund to purchase a predetermined number of shares of com-
mon stock and are non-income producing. The purchase price and number of
shares are subject to adjustment under certain conditions until the expiration date.
(h) Other interests represent beneficial interest in liquidation trusts and other reorgani-
zation entities and are non-income producing.
(i) Represents the current yield as of report date.
(j) Investments in companies considered to be an affiliate of the Fund, for purposes of
Section 2(a)(3) of the Investment Company Act of 1940, were as follows:

  Net   
Affiliate  Activity  Income 
BlackRock Liquidity Funds, TempFund  3,151,730  $11,261 

Foreign currency exchange contracts as of April 30, 2009 were as follows:

            Unrealized 
Currency  Currency    Settlement  Appreciation 
Purchased    Sold  Counterparty  Date  (Depreciation) 
USD  772,203  MXN 10,416,500  Citibank NA  6/10/09  $ 23,460 
USD59,614,704  EUR 46,282,500  Citibank NA  5/20/09  (1,617,719) 
USD  1,219,745  EUR  920,000  UBS AG  5/20/09  2,572 
USD  7,919,989  GBP  5,663,000  UBS AG  6/10/09  (457,321) 
Total            $ (2,049,008) 

Credit default swaps on single-name issues — sold protection outstanding as of
April 30, 2009 were as follows:

  Receive        Notional   
  Fixed  Counter-    Credit  Amount  Unrealized 
Issuer  Rate  party  Expiration  Rating1  (000)2  Depreciation 
BAA Ferovial             
Junior Term    Deutsche         
Loan  2.00%  Bank AG  June 2012  AA–  GPB 1,800  $(422,017) 

1 Using Standard & Poor’s rating of the issuer.
2 The maximum potential amount the Fund may pay should a negative credit
event take place as defined under the terms of the agreement. See Note 1 of
the Notes to Financial Statements.
Currency Abbreviations:

EUR  Euro 
GBP  British Pound 
MXN  Mexican New Peso 
USD  U.S. Dollar 

Financial Accounting Standards Board Statement of Financial Accounting Standards
No. 157, “Fair Value Measurements” clarifies the definition of fair value, establishes
a framework for measuring fair values and requires additional disclosures about the
use of fair value measurements. Various inputs are used in determining the fair
value of investments, which are as follows:
Level 1 — price quotations in active markets/exchanges for identical securities
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 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
circumstance, to the extent observable inputs are not available (including the
Fund’s own assumptions used in determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily an indica-
tion of the risk associated with investing in those securities. For information about
the Fund’s policy regarding valuation of investments and other significant accounting
policies, please refer to Note 1 of the Notes to Financial Statements.
The following table summarizes the inputs used as of April 30, 2009 in determining
the fair valuation of the Fund’s investments:

Valuation  Investments in  Other Financial 
Inputs  Securities  Instruments* 
  Assets  Assets  Liabilities 
Level 1  $ 3,364,562  $ 41,600   
Level 2  256,614,570  26,032  $ (2,075,040) 
Level 3  87,266,932    (422,017) 
Total  $347,246,064  $ 67,632  $ (2,497,057) 

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

The following is a reconciliation of investments for unobservable inputs (Level 3)
that were used in determining fair value:

    Other 
  Investments in  Financial 
  Securities  Instruments 
  Assets  Liabilities 
Balance, as of October 31, 2008  $ 119,862,229  $ (543,254) 
Accrued discounts/premiums  281,787   
Realized gain (loss)  (11,790,834)   
Change in unrealized appreciation/     
depreciation1  (21,055,829)  121,237 
Net purchases (sales)  (25,041,257)   
Net transfers into Level 3  25,010,836   
Balance, as of April 30, 2009  $ 87,266,932  $ (422,017) 

1 Included in the related net change in unrealized appreciation/depreciation on
the Statements of Operations.

See Notes to Financial Statements.

24 SEMI-ANNUAL REPORT

APRIL 30, 2009


Schedule of Investments April 30, 2009 (Unaudited) BlackRock Preferred and Corporate Income Strategies Fund, Inc. (PSW)
(Percentages shown are based on Net Assets)

Preferred Securities       
    Par   
Capital Trusts    (000)           Value 
Building Products — 0.8%       
C8 Capital SPV Ltd., 6.64% (a)(b)(c)  USD  980  $ 439,736 
Capital Markets — 5.1%       
Ameriprise Financial, Inc., 7.518%, 6/01/66 (c)    1,900  1,094,740 
Lehman Brothers Holdings Capital Trust V,       
 3.64% (b)(c)(d)    1,600  160 
State Street Capital Trust III, 8.25% (b)(c)(e)    725  493,413 
State Street Capital Trust IV, 2.32%, 6/01/67 (c)    3,390  1,371,926 
      2,960,239 
Commercial Banks — 5.9%       
Bank of Ireland Capital Funding II, LP, 5.571% (a)(b)(c)  2,015  402,698 
Bank of Ireland Capital Funding III, LP, 6.107% (a)(b)(c)  2,150  408,130 
Barclays Bank Plc, 5.926% (a)(b)(c)    1,900  759,202 
First Empire Capital Trust II, 8.277%, 6/01/27    910  541,284 
National City Preferred Capital Trust I, 12% (b)(c)    300  259,590 
SMFG Preferred Capital USD 3 Ltd., 9.50% (a)(b)(c)    875  789,393 
SunTrust Preferred Capital I, 5.853% (b)(c)    800  260,000 
      3,420,297 
Diversified Financial Services — 4.2%       
Farm Credit Bank of Texas Series 1, 7.561% (b)(c)    1,000  599,280 
JPMorgan Chase Capital XXV, 6.80%, 10/01/37 (e)    2,525  1,848,603 
      2,447,883 
Electric Utilities — 1.5%       
PPL Capital Funding, 6.70%, 3/30/67 (c)    1,500  870,000 
Insurance — 52.0%       
AXA SA, 6.379% (a)(b)(c)    3,585  1,430,705 
Ace Capital Trust II, 9.70%, 4/01/30 (e)    1,510  1,180,865 
The Allstate Corp. (c):       
     6.50%, 5/15/57 (e)    3,200  1,780,000 
     Series B, 6.125%, 5/15/67 (f)    2,625  1,443,750 
American International Group, Inc., 6.25%, 3/15/87 (f)  2,425  303,125 
Chubb Corp., 6.375%, 3/29/67 (c)(g)    4,475  2,705,827 
Farmers Exchange Capital, 7.05%, 7/15/28 (a)    3,110  1,818,821 
Financial Security Assurance Holdings Ltd., 6.40%,       
 12/15/66 (a)(c)    1,740  469,800 
Genworth Financial, Inc., 6.15%, 11/15/66 (c)    750  104,740 
Great West Life & Annuity Insurance Co., 7.153%,       
 5/16/46 (a)(c)    2,000  987,840 
Liberty Mutual Group, Inc. (a)(c):       
     7%, 3/15/37    2,550  938,716 
     10.75%, 6/15/88    2,000  1,100,000 
Lincoln National Corp. (c):       
     7%, 5/17/66    3,000  960,000 
     6.05%, 4/20/67    1,250  362,500 
MetLife, Inc., 6.40%, 12/15/66 (e)    4,225  2,260,375 
Nationwide Life Global Funding I, 6.75%, 5/15/67 (e)  2,450  962,370 
Oil Casualty Insurance Ltd., 8%, 9/15/34 (a)    915  552,964 
Progressive Corp., 6.70%, 6/15/37 (c)    2,900  1,436,234 
Reinsurance Group of America, 6.75%, 12/15/65 (c)  700  342,636 
Swiss Re Capital I LP, 6.854% (a)(b)(c)    2,225  878,875 
The Travelers Cos., Inc., 6.25%, 3/15/67 (c)    5,750  3,539,861 
ZFS Finance (USA) Trust II, 6.45%, 12/15/65 (a)(c)    1,800  972,000 
ZFS Finance (USA) Trust IV, 5.875%, 5/09/32 (a)(c)  500  265,070 
ZFS Finance (USA) Trust V, 6.50%, 5/09/67 (a)(c)    4,355  2,351,700 
Zenith National Insurance Capital Trust I,       
 8.55%, 8/01/28 (a)    1,000  930,000 
      30,078,774 
Multi-Utilities — 4.4%       
Dominion Resources Capital Trust I,       
 7.83%, 12/01/27 (e)    1,200  986,993 
Dominion Resources, Inc., 7.50%, 6/30/66 (c)    2,100  1,323,000 
Puget Sound Energy, Inc. Series A, 6.974%, 6/01/67 (c)  475  248,188 
      2,558,181 

    Par   
Capital Trusts    (000)           Value 
Oil, Gas & Consumable Fuels — 5.5%       
Enterprise Products Operating LLC,       
8.375%, 8/01/66 (c)  USD  825  $ 569,250 
Southern Union Co., 7.20%, 11/01/66 (c)    2,350  1,210,250 
TransCanada PipeLines Ltd., 6.35%, 5/15/67 (c)    2,150  1,376,000 
      3,155,500 
Thrifts & Mortgage Finance — 0.7%       
Webster Capital Trust IV, 7.65%, 6/15/37 (c)    975  417,107 
Total Capital Trusts — 80.1%      46,347,717 
Preferred Stocks    Shares   
Commercial Banks — 10.4%       
First Tennessee Bank NA, 3.90% (a)(b)(c)    1,176  371,175 
HSBC USA, Inc. (b):       
     Series D, 4.50% (c)    35,000  472,500 
     Series H, 6.50%  168,000  2,856,000 
Provident Financial Group, Inc., 7.75%    42,000  732,375 
Royal Bank of Scotland Group Plc Series M, 6.40% (b)    5,000  40,300 
Santander Finance Preferred SA Unipersonal, 6.80% (b)  103,100  1,525,880 
      5,998,230 
Diversified Financial Services — 1.7%       
Cobank ACB, 7% (a)(b)    38,000  985,188 
Electric Utilities — 4.9%       
Alabama Power Co., 6.50% (b)    25,000  562,500 
Entergy Arkansas, Inc., 6.45% (b)    28,800  702,901 
Entergy Louisiana LLC, 6.95% (b)    22,650  1,585,500 
      2,850,901 
Insurance — 7.7%       
Aspen Insurance Holdings Ltd., 7.401% (b)(c)    55,000  770,000 
Axis Capital Holdings Ltd.:       
     Series A, 7.25%    35,000  612,500 
     Series B, 7.50% (b)(c)    9,000  539,438 
Endurance Specialty Holdings Ltd. Series A, 7.75% (b)    35,200  564,960 
RenaissanceRe Holding Ltd. Series D, 6.60%  110,000  1,980,000 
      4,466,898 
Real Estate Investment Trusts (REITs) — 8.7%       
BRE Properties, Inc. Series D, 6.75% (b)    10,000  170,600 
First Industrial Realty Trust, Inc., 6.236% (b)(c)    610  223,031 
HRPT Properties Trust (b):       
     Series B, 8.75%    97,917  1,405,109 
     Series C, 7.125%  125,000  1,500,000 
iStar Financial, Inc. Series I, 7.50% (b)    59,500  318,325 
Public Storage (b):       
     Series F, 6.45%    10,000  184,800 
     Series I, 7.25%    40,000  862,000 
     Series M, 6.625%    20,000  378,200 
      5,042,065 
Thrifts & Mortgage Finance — 0.1%       
Sovereign Bancorp, Inc. Series C, 7.30% (b)(h)    1,400  22,386 
Wireless Telecommunication Services — 2.9%       
Centaur Funding Corp., 9.08% (a)    2,720  1,691,500 
Total Preferred Stocks — 36.4%      21,057,168 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

APRIL 30, 2009

25


Schedule of Investments (continued) BlackRock Preferred and Corporate Income Strategies Fund, Inc. (PSW)
(Percentages shown are based on Net Assets)

  Par   
Trust Preferreds  (000)  Value 
Consumer Finance — 2.4%     
Capital One Capital II, 7.50%, 6/15/66  USD 2,326  $ 1,373,024 
Diversified Financial Services — 0.7%     
ING Groep NV, 7.20% (b)  875  418,254 
Electric Utilities — 2.2%     
PPL Energy Supply LLC, 7%, 7/15/46  1,235  1,250,703 
Insurance — 2.3%     
ABN AMRO North America Capital Funding Trust II,     
2.874% (a)(b)(c)  2,000  125,122 
Lincoln National Capital VI Series F, 6.75%, 9/11/52  2,250  1,235,366 
    1,360,488 
Total Trust Preferreds — 7.6%    4,402,469 
Total Preferred Securities — 124.1%    71,807,354 
Corporate Bonds     
Insurance — 3.2%     
Oil Insurance Ltd., 7.558% (a)(b)(c)  1,000  327,210 
QBE Insurance Group Ltd., 9.75%, 3/14/14 (a)  1,484  1,498,349 
Total Corporate Bonds — 3.2%    1,825,559 
Total Long-Term Investments     
(Cost — $135,994,488) — 127.3%    73,632,913 
Short-Term Securities  Shares   
Money Market Fund — 47.7%     
BlackRock Liquidity Funds, TempFund, 0.64% (i)(j)  27,610,483  27,610,483 
Total Short-Term Securities     
(Cost — $27,610,483) — 47.7%    27,610,483 
Total Investments (Cost — $163,604,971*) — 175.0%    101,243,396 
Liabilities in Excess of Other Assets — (5.4)%    (3,136,602) 
Preferred Shares, at Redemption Value — (69.6)%    (40,254,342) 
Net Assets Applicable to Common Shares — 100.0%    $ 57,852,452 

* The cost and unrealized appreciation (depreciation) of investments as of April 30,
2009, as computed for federal income tax purposes, were as follows:

Aggregate cost  $163,147,386 
Gross unrealized appreciation  $ 259,819 
Gross unrealized depreciation  (62,163,809) 
Net unrealized depreciation  $ (61,903,990) 

(a) Security exempt from registration under Rule 144A of the Securities Act of 1933.
These securities may be resold in transactions exempt from registration to qualified
institutional investors.
(b) Security is perpetual in nature and has no stated maturity date.
(c) Variable rate security. Rate shown is as of report date.
(d) Issuer filed for bankruptcy and/or is in default of interest payments.
(e) All or a portion of security held as collateral in connection with open reverse repur-
chase agreements.
(f) All or a portion of security held as collateral in connection with open financial
futures contracts.
(g) All or a portion of security held as collateral in connection with open swaps.
(h) Depositary receipts.

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

  Net   
Affiliate  Activity  Income 
BlackRock Liquidity Funds, TempFund  27,610,483  $ 18,907 
BlackRock Liquidity Series, LLC     
   Cash Sweep Series  $(15,938,424)  $ 56,701 

(j) Represents the current yield as of report date.
Financial futures contracts purchased as of April 30, 2009 were as follows:

         Unrealized 
    Expiration  Face  Appreciation 
     Contracts  Issue  Date  Value  (Depreciation) 
               66  2-Year US       
  Treasury Bond  June 2009  $14,280,058  $ 78,036 
                 6  30-Year US       
  Treasury Bond  June 2009  $ 746,966  (11,591) 
     Total        $ 66,445 
Financial futures contracts sold as of April 30, 2009 were as follows: 
    Expiration  Face   Unrealized 
     Contracts  Issue  Date  Value  Appreciation 
               86  10-Year US       
  Treasury Bond  June 2009  $10,504,125  $ 103,500 

Credit default swaps on single-name issues — sold protection outstanding as of
April 30, 2009 were as follows:

    Receive        Notional   
    Fixed  Counter-    Credit  Amount  Unrealized 
Issuer  Rate  party  Expiration      Rating1  (000)2  Appreciation 
Phillip Morris    Deutsche  December       
   International  1.73%  Bank AG  2013  A  $2,000  $ 4,735 
 1  Using the S&P’s ratings of the issuer.       
 2  The maximum potential amount the Fund may pay should a negative credit 
  event take a place as defined under the terms of the agreement.   

Credit default swaps on single-name issues — buy protection outstanding as of
April 30, 2009 were as follows:

  Pay      Notional   
  Fixed  Counter-    Amount  Unrealized 
Issuer  Rate  party  Expiration  (000)  Depreciation 
Altria Group Inc.  1.03%  Deutsche  December     
    Bank AG  2013  $2,000  $ (24,115) 
Nordstrom Inc.  5.20%  Deutsche  June     
    Bank AG  2014  $1,000  (144,301) 
Total          $ (168,416) 

Reverse repurchase agreements outstanding as of April 30, 2009 were as follows:

  Interest  Trade  Maturity  Net Closing  Face 
Counterparty  Rate  Date  Date  Amount  Amount 
Barclays Bank Plc  1.99%  3/03/09  8/15/09  $5,080,692  $ 5,060,551 

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 ratings group indexes, and/or as defined by Fund management.
This definition may not apply for purposes of this report, which may combine indus-
try sub-classifications for reporting ease.

See Notes to Financial Statements.

26 SEMI-ANNUAL REPORT

APRIL 30, 2009


Schedule of Investments (concluded) BlackRock Preferred and Corporate Income Strategies Fund, Inc. (PSW)

Effective November 1, 2008, the Fund adopted Financial Accounting Standards
Board Statement of Financial Accounting Standards No. 157, “Fair Value Measure-
ments” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a
framework for measuring fair values and requires additional disclosures about the
use of fair value measurements. Various inputs are used in determining the fair
value of investments, which are as follows:
Level 1 — price quotations in active markets/exchanges for identical securities
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 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
circumstance, to the extent observable inputs are not available (including the
Fund’s own assumptions used in determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily an indica-
tion of the risk associated with investing in those securities. For information about
the Fund’s policy regarding valuation of investments and other significant accounting
policies, please refer to Note 1 of the Notes to Financial Statements.
The following table summarizes the inputs used as of April 30, 2009 in determining
the fair valuation of the Fund’s investments:

Valuation  Investments in  Other Financial 
Inputs  Securities  Instruments* 
  Assets  Assets  Liabilities 
Level 1  $ 46,110,262  $ 181,536  $ (11,591) 
Level 2  53,547,634  4,735  (5,228,967) 
Level 3  1,585,500     
Total  $101,243,396  $ 186,271  $ (5,240,558) 

* Other financial instruments are swaps, futures and reverse repurchase
agreements. Swaps and futures are valued at the unrealized appreciation/
depreciation on the instrument. Reverse repurchase agreements are shown at
market value.

The following is a reconciliation of investments for unobservable inputs (Level 3)
used in determining fair value:

  Investments in 
  Securities 
  Assets 
Balance, as of October 31, 2008   
Accrued discounts/premiums   
Realized loss  $ (1,933,262) 
Change in unrealized appreciation/depreciation1  (679,500) 
Net sales  (990,000) 
Net transfers into Level 3  5,188,262 
Balance, as of April 30, 2009  $ 1,585,500 

1 Included in the related net change in unrealized appreciation/depreciation on
the Statements of Operations.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

APRIL 30, 2009

27


Schedule of Investments April 30, 2009 (Unaudited) BlackRock Preferred and Equity Advantage Trust (BTZ)
(Percentages shown are based on Net Assets)

Preferred Securities       
    Par   
Capital Trusts    (000)  Value 
Building Products — 0.3%       
C8 Capital SPV Ltd., 6.64% (a)(b)(c)  USD  3,160  $ 1,417,924 
Capital Markets — 2.7%       
Credit Suisse Guernsey Ltd., 5.86% (b)(c)    1,050  571,410 
State Street Capital Trust III, 8.25%, 3/15/42 (c)    1,740  1,184,192 
State Street Capital Trust IV, 2.32%, 6/01/67 (c)(d)    25,245  10,216,601 
      11,972,203 
Commercial Banks — 15.4%       
BB&T Capital Trust IV, 6.82%, 6/12/77 (c)(d)    15,300  9,215,909 
Bank of Ireland Capital Funding II, LP, 5.571% (a)(b)(c)    6,685  1,335,997 
Bank of Ireland Capital Funding III, LP,       
 6.107% (a)(b)(c)(d)    26,600  5,049,425 
Barclays Bank Plc, (a)(b)(c):       
     5.93%    13,200  5,274,456 
     6.86%    11,500  5,162,925 
Commonwealth Bank of Australia,       
 6.024% (a)(b)(c)(d)    20,000  10,300,000 
HSBC Capital Funding LP/Jersey Channel Islands,       
 10.176% (a)(b)(c)(d)    7,000  6,142,969 
Lloyds Banking Group Plc, 6.657% (a)(b)(c)    10,000  3,050,000 
SMFG Preferred Capital USD 1 Ltd.,       
 6.078% (a)(b)(c)(d)    10,000  6,943,800 
SMFG Preferred Capital USD 3 Ltd., 9.50% (a)(b)(c)    3,850  3,473,328 
Shinsei Finance II (Cayman) Ltd., 7.16% (a)(b)(c)    1,005  241,514 
Standard Chartered Bank, 7.014% (a)(b)(c)    5,000  3,225,000 
Wells Fargo & Co. Series K, 7.98% (b)(c)    12,985  7,271,600 
Wells Fargo Capital XIII Series GMTN, 7.70% (b)(c)(e)    3,900  2,496,000 
      69,182,923 
Diversified Financial Services — 0.5%       
C10 Capital SPV Ltd., 6.722%, (a)(b)(c)    5,000  2,242,350 
Electric Utilities — 0.5%       
PPL Capital Funding, 6.70%, 3/30/67 (c)    3,900  2,262,000 
Insurance — 18.7%       
AXA SA, 6.463% (a)(b)(c)    12,000  4,794,336 
The Allstate Corp. (c):       
     6.50%, 5/15/57    8,675  4,825,469 
     Series B, 6.125%, 5/15/67    8,725  4,798,750 
American International Group, Inc.,       
 6.25%, 3/15/87 (d)    11,425  1,428,125 
Chubb Corp., 6.375%, 3/29/67 (c)(d)    15,300  9,251,206 
Liberty Mutual Group, Inc., (a)(c):       
     7%, 3/15/37    11,600  4,270,238 
     10.75%, 6/15/88    6,200  3,410,000 
Lincoln National Corp., (c):       
     7%, 5/17/66    4,255  1,361,600 
     6.05%, 4/20/67    4,730  1,371,700 
MetLife, Inc., 6.40%, 12/15/66    4,550  2,434,250 
Nationwide Life Global Funding I, 6.75%, 5/15/67    8,025  3,152,252 
Progressive Corp., 6.70%, 6/15/37 (c)(d)    19,675  9,744,103 
Reinsurance Group of America,       
 6.75%, 12/15/65 (c)(d)    15,000  7,342,200 
Swiss Re Capital I LP, 6.854% (a)(b)(c)(d)    27,475  10,852,625 
The Travelers Cos., Inc., 6.25%, 3/15/67 (c)(d)    9,000  5,540,652 
White Mountains Re Group Ltd., 7.506% (a)(b)(c)    4,400  1,392,589 
ZFS Finance (USA) Trust IV, 5.875%, 5/09/32 (a)(c)    2,050  1,086,787 
ZFS Finance (USA) Trust V, 6.50%, 5/09/67 (a)(c)(d)    13,220  7,138,800 
      84,195,682 
Multi-Utilities — 0.2%       
Puget Sound Energy, Inc. Series A,       
 6.974%, 6/01/67 (c)    1,575  822,937 

  Par   
Capital Trusts  (000)  Value 
Oil, Gas & Consumable Fuels — 2.3%     
Enterprise Products Operating LLC,     
8.375%, 8/01/66 (c)  USD 4,500  $ 3,105,000 
Southern Union Co., 7.20%, 11/01/66 (c)  5,000  2,575,000 
TransCanada PipeLines Ltd., 6.35%, 5/15/67 (c)(d)  7,325  4,688,000 
    10,368,000 
Thrifts & Mortgage Finance — 0.3%     
Webster Capital Trust IV, 7.65%, 6/15/37 (c)  3,225  1,379,661 
Total Capital Trusts — 40.9%    183,843,680 
Preferred Stocks  Shares   
Commercial Banks — 6.1%     
Citizens Funding Trust I, 7.50%  210,000  1,894,351 
HSBC USA, Inc. Series H, 6.50%  977,766  16,622,022 
Royal Bank of Scotland Group Plc Series M, 6.40%  15,000  120,900 
Santander Finance Preferred SA Unipersonal, 6.80%  597,500  8,843,000 
    27,480,273 
Diversified Financial Services — 2.6%     
Citigroup, Inc. Series T, 6.50% (f)  90,000  2,844,000 
Cobank ACB, 7% (a)  150,000  3,888,900 
ING Groep NV:     
     6.125%  200,000  2,094,000 
     7.05%  5,800  67,860 
     7.20%  213,000  2,545,373 
     7.38%  40,000  474,358 
    11,914,491 
Diversified Telecommunication Services — 0.2%     
AT&T Inc., 6.375%, 2/15/56  30,000  766,066 
Electric Utilities — 5.7%     
Alabama Power Co., 6.50%  100,000  2,250,000 
Entergy Louisiana LLC, 6.95%  40,000  2,800,000 
Interstate Power & Light Co. Series B, 8.375%  785,000  20,464,950 
    25,514,950 
Insurance — 10.1%     
Aegon NV, 6.50%  400,000  4,052,000 
Arch Capital Group Ltd.:     
     Series A, 8%  100,000  1,992,000 
     Series B, 7.875%  160,000  3,076,800 
Aspen Insurance Holdings Ltd., 7.401% (c)  655,000  9,170,000 
Axis Capital Holdings Ltd. Series B, 7.50% (c)  180,000  10,788,750 
Endurance Specialty Holdings Ltd. Series A, 7.75%  369,000  5,922,450 
PartnerRe Ltd. Series C, 6.75%  265,600  5,134,048 
RenaissanceRe Holding Ltd. Series D, 6.60%  285,000  5,130,000 
    45,266,048 
Real Estate Investment Trusts (REITs) — 1.8%     
BRE Properties, Inc. Series D, 6.75%  30,000  511,800 
iStar Financial, Inc. Series I, 7.50%  55,000  294,250 
Public Storage:     
     Series F, 6.45%  30,000  554,400 
     Series M, 6.625%  55,000  1,040,050 
Sovereign Real Estate Investment Corp., 12% (a)  10,000  5,900,000 
    8,300,500 
Wireless Telecommunication Services — 1.4%     
Centaur Funding Corp., 9.08% (a)  10,000  6,218,750 
Total Preferred Stocks — 27.9%    125,461,078 

See Notes to Financial Statements.

28 SEMI-ANNUAL REPORT

APRIL 30, 2009


Schedule of Investments (continued) BlackRock Preferred and Equity Advantage Trust (BTZ)
(Percentages shown are based on Net Assets)

    Par   
Trust Preferreds    (000)  Value 
Capital Markets — 0.0%       
Credit Suisse Guernsey Ltd., 7.90%, 3/28/13  USD  250  $ 197,531 
Commercial Banks — 4.6%       
Kazkommerts Finance 2 BV, 9.20% (b)(c)    500  125,000 
KeyCorp Capital IX, 6.75%, 12/15/66    9,083  4,393,622 
Mizuho Capital Investment 1 Ltd., 6.686% (a)(b)(c)(d)    21,000  12,889,821 
National City Preferred Capital Trust I, 12% (b)(c)    3,713  3,212,859 
      20,621,302 
Diversified Financial Services — 3.4%       
JPMorgan Chase Capital XXI Series U,       
1.966%, 2/02/37 (c)(d)    12,875  5,480,231 
JPMorgan Chase Capital XXIII, 2.238%, 5/15/77 (c)(d)    13,800  5,836,227 
JPMorgan Chase Capital XXV, 6.80%, 10/01/37    5,650  4,136,478 
      15,452,936 
Insurance — 6.8%       
AON Corp., 8.205%, 1/01/27 (d)    18,000  13,466,160 
Ace Capital Trust II, 9.70%, 4/01/30 (d)    17,000  13,294,510 
W.R. Berkley Capital Trust II, 6.75%, 7/26/45    4,268  3,584,568 
      30,345,238 
Total Trust Preferreds — 14.8%      66,617,007 
Total Preferred Securities — 83.6%      375,921,765 
Common Stocks    Shares   
Aerospace & Defense — 0.6%       
Honeywell International, Inc.    7,600  237,196 
Lockheed Martin Corp.    15,900  1,248,627 
Northrop Grumman Corp.    21,600  1,044,360 
United Technologies Corp.    7,600  371,184 
      2,901,367 
Air Freight & Logistics — 0.4%       
United Parcel Service, Inc. Class B    36,300  1,899,942 
Auto Components — 0.1%       
Johnson Controls, Inc.    15,300  290,853 
Beverages — 0.8%       
The Coca-Cola Co.    59,000  2,539,950 
PepsiCo, Inc.    24,100  1,199,216 
      3,739,166 
Biotechnology — 0.9%       
Amgen, Inc. (g)    28,400  1,376,548 
Biogen Idec, Inc. (g)    10,300  497,902 
Celgene Corp. (g)    14,500  619,440 
Genzyme Corp. (g)    6,900  367,977 
Gilead Sciences, Inc. (g)    29,100  1,332,780 
      4,194,647 
Capital Markets — 0.4%       
Federated Investors, Inc. Class B    27,800  636,064 
The Goldman Sachs Group, Inc.    5,610  720,885 
Morgan Stanley    12,600  297,864 
      1,654,813 
Chemicals — 0.8%       
Air Products & Chemicals, Inc.    4,000  263,600 
E.I. du Pont de Nemours & Co.    60,900  1,699,110 
Monsanto Co.    11,900  1,010,191 
PPG Industries, Inc.    16,200  713,610 
      3,686,511 

Common Stocks  Shares  Value 
Commercial Banks — 1.0%     
M&T Bank Corp.  17,200  $ 902,140 
Regions Financial Corp.  158,400  711,216 
Wells Fargo & Co.  137,200  2,745,372 
    4,358,728 
Commercial Services & Supplies — 0.6%     
Avery Dennison Corp.  32,800  942,672 
Pitney Bowes, Inc.  44,300  1,087,122 
Waste Management, Inc.  31,900  850,773 
    2,880,567 
Communications Equipment — 1.0%     
Cisco Systems, Inc. (g)  96,500  1,864,380 
Corning, Inc.  35,600  520,472 
Motorola, Inc.  143,800  795,214 
QUALCOMM, Inc.  36,700  1,553,144 
    4,733,210 
Computers & Peripherals — 1.9%     
Apple, Inc. (g)  24,800  3,120,584 
Dell, Inc. (g)  61,700  716,954 
EMC Corp. (g)  57,600  721,728 
Hewlett-Packard Co.  36,300  1,306,074 
International Business Machines Corp.  23,800  2,456,398 
    8,321,738 
Distributors — 0.2%     
Genuine Parts Co.  30,300  1,028,988 
Diversified Financial Services — 1.1%     
Bank of America Corp.  152,200  1,359,146 
JPMorgan Chase & Co.  87,200  2,877,600 
NYSE Euronext  37,500  868,875 
    5,105,621 
Diversified Telecommunication Services — 1.6%     
AT&T Inc.  160,487  4,111,677 
Embarq Corp.  13,000  475,280 
Verizon Communications, Inc.  86,200  2,615,308 
    7,202,265 
Electric Utilities — 0.8%     
American Electric Power Co., Inc.  8,900  234,782 
Duke Energy Corp.  83,500  1,153,135 
FirstEnergy Corp.  5,600  229,040 
Progress Energy, Inc.  22,200  757,464 
The Southern Co.  36,200  1,045,456 
    3,419,877 
Electrical Equipment — 0.5%     
Emerson Electric Co.  45,100  1,535,204 
Rockwell Automation, Inc.  22,200  701,298 
    2,236,502 
Electronic Equipment, Instruments & Components — 0.1%     
Tyco Electronics Ltd.  21,500  374,960 
Energy Equipment & Services — 0.5%     
National Oilwell Varco, Inc. (g)  23,400  708,552 
Schlumberger Ltd.  22,700  1,112,073 
Smith International, Inc.  22,218  574,335 
    2,394,960 
Food & Staples Retailing — 1.3%     
CVS Caremark Corp.  13,900  441,742 
SUPERVALU, Inc.  34,500  564,075 
SYSCO Corp.  39,700  926,201 
Wal-Mart Stores, Inc.  62,700  3,160,080 
Walgreen Co.  26,200  823,466 
    5,915,564 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

APRIL 30, 2009

29


Schedule of Investments (continued) BlackRock Preferred and Equity Advantage Trust (BTZ)
(Percentages shown are based on Net Assets)

Common Stocks  Shares           Value 
Food Products — 0.4%     
Kraft Foods, Inc.  49,935  $ 1,168,479 
Sara Lee Corp.  83,200  692,224 
    1,860,703 
Health Care Equipment & Supplies — 0.5%     
Baxter International, Inc.  8,100  392,850 
Becton Dickinson & Co.  14,000  846,720 
Boston Scientific Corp. (g)  24,300  204,363 
Covidien Ltd.  21,500  709,070 
Medtronic, Inc.  8,300  265,600 
    2,418,603 
Health Care Providers & Services — 0.6%     
Aetna, Inc.  9,700  213,497 
Express Scripts, Inc. (g)  14,000  895,580 
Medco Health Solutions, Inc. (g)  17,900  779,545 
UnitedHealth Group, Inc.  9,700  228,144 
WellPoint, Inc. (g)  18,500  791,060 
    2,907,826 
Hotels, Restaurants & Leisure — 0.7%     
McDonald’s Corp.  36,100  1,923,769 
Starwood Hotels & Resorts Worldwide, Inc.  50,900  1,061,774 
    2,985,543 
Household Durables — 0.8%     
Black & Decker Corp.  23,600  951,080 
Fortune Brands, Inc.  26,500  1,041,715 
KB Home  23,700  428,259 
Whirlpool Corp.  24,200  1,092,872 
    3,513,926 
Household Products — 1.0%     
Clorox Co.  17,300  969,665 
The Procter & Gamble Co.  71,700  3,544,848 
    4,514,513 
IT Services — 0.6%     
Automatic Data Processing, Inc.  27,700  975,040 
Cognizant Technology Solutions Corp. (g)  13,800  342,102 
MasterCard, Inc. Class A  1,688  309,664 
Paychex, Inc.  40,100  1,083,101 
    2,709,907 
Industrial Conglomerates — 1.1%     
3M Co.  28,400  1,635,840 
General Electric Co.  178,900  2,263,085 
Textron, Inc.  96,500  1,035,445 
    4,934,370 
Insurance — 1.2%     
Aflac, Inc.  43,800  1,265,382 
The Allstate Corp.  36,100  842,213 
Cincinnati Financial Corp.  34,900  835,855 
Lincoln National Corp.  53,500  601,340 
MetLife, Inc.  43,600  1,297,100 
Principal Financial Group, Inc.  38,000  620,920 
    5,462,810 
Internet & Catalog Retail — 0.1%     
Amazon.com, Inc. (g)  3,400  273,768 
Internet Software & Services — 0.8%     
eBay, Inc. (g)  58,900  970,083 
Google, Inc. Class A (g)  4,810  1,904,616 
Yahoo! Inc. (g)  39,800  568,742 
    3,443,441 
Leisure Equipment & Products — 0.2%     
Mattel, Inc.  48,000  718,080 

Common Stocks  Shares           Value 
Life Sciences Tools & Services — 0.1%     
Thermo Fisher Scientific, Inc. (g)  10,900  $ 382,372 
Machinery — 0.5%     
Caterpillar, Inc.  35,200  1,252,416 
Cummins, Inc.  17,500  595,000 
Deere & Co.  11,700  482,742 
    2,330,158 
Media — 0.2%     
Comcast Corp. Class A  28,500  440,610 
The DIRECTV Group, Inc. (g)  26,200  647,926 
    1,088,536 
Metals & Mining — 0.4%     
Alcoa, Inc.  101,300  918,791 
Nucor Corp.  22,100  899,249 
    1,818,040 
Multi-Utilities — 0.9%     
Consolidated Edison, Inc.  22,100  820,573 
Dominion Resources, Inc.  9,000  271,440 
Integrys Energy Group, Inc.  22,900  604,789 
Public Service Enterprise Group, Inc.  32,400  966,816 
TECO Energy, Inc.  36,800  389,712 
Xcel Energy, Inc.  43,100  794,764 
    3,848,094 
Multiline Retail — 0.2%     
Macy’s, Inc.  76,100  1,041,048 
Oil, Gas & Consumable Fuels — 4.4%     
Anadarko Petroleum Corp.  20,900  899,954 
Apache Corp.  7,600  553,736 
Chevron Corp.  55,400  3,661,940 
ConocoPhillips  54,000  2,214,000 
Exxon Mobil Corp.  114,600  7,640,382 
Hess Corp.  15,200  832,808 
Massey Energy Co.  22,100  351,611 
Occidental Petroleum Corp.  6,900  388,401 
Peabody Energy Corp.  22,800  601,692 
Southwestern Energy Co. (g)  22,700  814,022 
Spectra Energy Corp.  60,600  878,700 
XTO Energy, Inc.  28,600  991,276 
    19,828,522 
Paper & Forest Products — 0.4%     
MeadWestvaco Corp.  63,200  989,712 
Weyerhaeuser Co.  23,000  810,980 
    1,800,692 
Pharmaceuticals — 3.0%     
Abbott Laboratories  43,000  1,799,550 
Bristol-Myers Squibb Co.  73,500  1,411,200 
Eli Lilly & Co.  41,000  1,349,720 
Johnson & Johnson  74,100  3,879,876 
Merck & Co., Inc.  66,100  1,602,264 
Pfizer, Inc. (e)  112,300  1,500,328 
Schering-Plough Corp.  54,000  1,243,080 
Wyeth  17,900  758,960 
    13,544,978 
Real Estate Investment Trusts (REITs) — 0.7%     
AvalonBay Communities, Inc.  17,500  994,175 
Boston Properties, Inc.  17,900  884,618 
Public Storage  5,100  340,986 
Vornado Realty Trust  20,125  983,911 
    3,203,690 
Road & Rail — 0.2%     
Norfolk Southern Corp.  24,300  867,024 

See Notes to Financial Statements.

30 SEMI-ANNUAL REPORT

APRIL 30, 2009


Schedule of Investments (continued) BlackRock Preferred and Equity Advantage Trust (BTZ)
(Percentages shown are based on Net Assets)

Common Stocks    Shares  Value 
Semiconductors & Semiconductor Equipment — 1.3%       
Applied Materials, Inc.    21,700  $ 264,957 
Intel Corp.  168,100  2,652,618 
Linear Technology Corp.    32,500  707,850 
Microchip Technology, Inc.    36,800  846,400 
National Semiconductor Corp.    39,500  488,615 
Texas Instruments, Inc.    38,200  689,892 
      5,650,332 
Software — 1.4%       
Autodesk, Inc. (g)    31,700  632,098 
Microsoft Corp.  190,200  3,853,452 
Oracle Corp.    86,900  1,680,646 
      6,166,196 
Specialty Retail — 0.8%       
Home Depot, Inc.    75,000  1,974,000 
Limited Brands, Inc.    66,500  759,430 
Staples, Inc.    50,800  1,047,496 
      3,780,926 
Textiles, Apparel & Luxury Goods — 0.2%       
VF Corp.    12,000  711,240 
Thrifts & Mortgage Finance — 0.2%       
Hudson City Bancorp, Inc.    78,600  987,216 
Tobacco — 0.9%       
Altria Group, Inc. (e)    84,600  1,381,518 
Philip Morris International, Inc.    68,500  2,479,700 
      3,861,218 
Total Common Stocks — 38.4%      172,994,051 
    Par   
Corporate Bonds    (000)   
Capital Markets — 0.0%       
Lehman Brothers Holdings, Inc. (h):       
3.95%, 11/10/09  USD  105  14,963 
4.375%, 11/30/10    325  46,313 
      61,276 
Computers & Peripherals — 1.1%       
International Business Machines Corp., 8%, 10/15/38    4,000  4,943,192 
Diversified Financial Services — 0.9%       
ING Groep NV, 5.775% (b)(c)(d)    10,000  3,700,000 
Stan IV Ltd., 4.821%, 7/20/11 (c)    283  183,950 
      3,883,950 
Electric Utilities — 1.6%       
PPL Energy Supply LLC, 7%, 7/15/46    7,200  7,291,551 
Insurance — 1.1%       
QBE Insurance Group Ltd., 9.75%, 3/14/14 (a)    4,973  5,021,084 
Media — 9.0%       
Comcast Corp., 6.625%, 5/15/56    48,750  40,336,428 
Metals & Mining — 0.0%       
Aleris International, Inc., 10%, 12/15/16 (h)    5,000  100,000 
Oil, Gas & Consumable Fuels — 0.5%       
Nexen, Inc., 7.35%, 11/01/43    3,000  2,185,471 
Paper & Forest Products — 0.5%       
International Paper Co., 8.70%, 6/15/38 (e)    3,100  2,309,962 
Total Corporate Bonds — 14.7%      66,132,914 

Exchange-Traded Funds    Shares  Value 
UltraShort Real Estate ProShares    150,000  $ 3,540,000 
Total Exchange-Traded Funds — 0.8%      3,540,000 
Total Long-Term Securities       
(Cost — $985,982,951) — 137.5%      618,588,730 
Short-Term Securities       
Money Market Fund — 24.6%       
BlackRock Liquidity Funds, TempFund,       
0.64% (i)(j)  110,469,494  110,469,494 
Total Short-Term Securities       
(Cost — $110,469,494) — 24.6%      110,469,494 
Total Investments Before Options Written       
(Cost — $1,096,452,445*) — 162.1%      729,058,224 
Options Written    Contracts   
Call Options Written       
S&P 500 Listed Option, expiring May 2009 at USD 87.50  1,409  (2,655,965) 
Total Options Written       
(Premiums Received — $3,525,366) — (0.6)%      (2,655,965) 
Total Investments, Net of Options Written — 161.5%      726,402,259 
Liabilities in Excess of Other Assets — (10.1)%      (45,648,998) 
Preferred Shares, at Redemption Value — (51.4)%      (231,034,617) 
Net Assets Applicable to Common Shares — 100.0%      $ 449,718,644 

*The cost and unrealized appreciation (depreciation) of investments as of April 30, 2009,
as computed for federal income tax purposes, were as follows:

Aggregate cost  $1,095,643,264 
Gross unrealized appreciation  $ 10,121,362 
Gross unrealized depreciation     (376,706,402) 
Net unrealized depreciation  $ (366,585,040) 

(a) Security exempt from registration under Rule 144A of the Securities Act of 1933.
These securities may be resold in transactions exempt from registration to qualified
institutional investors.
(b) Security is perpetual in nature and has no stated maturity date.
(c) Variable rate security. Rate shown is as of report date.
(d) All or a portion of security has been pledged as collateral for reverse repurchase
agreements.
(e) All or a portion of security has been pledged as collateral for open financial futures
contracts.
(f) Convertible security.
(g) Non-income producing security.
(h) Issuer filed for bankruptcy and/or is in default of interest payments.
(i) Represents the current yield as of report date.
(j) Investments in companies considered to be an affiliate of the Fund, for purposes of
Section 2(a)(3) of the Investment Company Act of 1940, were as follows:

  Net   
Affiliate  Activity  Income 
BlackRock Liquidity Funds, TempFund  110,469,494  $ 123,372 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

APRIL 30, 2009

31


Schedule of Investments (concluded) BlackRock Preferred and Equity Advantage Trust (BTZ)

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 ratings group indexes, and/or as defined by Fund management.
This definition may not apply for purposes of this report, which may combine indus-
try sub-classifications for reporting ease.
Reverse repurchase agreements outstanding as of April 30, 2009 were as follows:

  Interest  Trade  Maturity  Net Closing  Face 
Counterparty  Rate  Date  Date  Amount  Amount 
Barclays           
   Bank Plc  1.93%  2/27/09  5/15/09  $ 5,280,366  $ 5,259,500 
Barclays           
   Bank Plc  1.93%  3/02/09  5/15/09  1,424,562  1,418,933 
Barclays           
   Bank Plc  1.99%  3/03/09  5/15/09  16,599,534  16,533,730 
Barclays           
   Bank Plc  1.98%  3/06/09  5/15/09  14,927,552  14,872,746 
Barclays           
   Bank Plc  1.98%  3/06/09  5/15/09  17,577,812  17,514,235 
Total        $ 55,809,826  $ 55,599,144 

Financial futures contracts purchased as of April 30, 2009 were as follows:

        Unrealized 
    Expiration  Face  Appreciation 
Contracts  Issue  Date  Value  (Depreciation) 
451  10-Year US       
  Treasury Bond  June 2009  $54,152,704  $ 390,144 
37  30-Year US       
  Treasury Bond  June 2009  $ 4,606,288  (71,475) 
91  S&P EMINI  June 2009  $ 3,816,865  141,635 
Total        $ 460,304 

Credit default swaps on single-name issues — buy protection oustanding as of
April 30, 2009 were as follows:

  Pay      Notional   
  Fixed  Counter-    Amount  Unrealized 
Issuer  Rate  party  Expiration  (000)  Depreciation 
Altria Group, Inc.  1.03%  Deutsche  December     
    Bank AG  2013  $9,000  $ (108,517) 
Nordstrom, Inc.  5.20%  Deutsche  June     
    Bank AG  2014  $4,000  (577,203) 
Total          $ (685,720) 

Credit default swaps on single-name issues — sold protection oustanding as of
April 30, 2009 were as follows:

  Receive        Notional   
  Fixed  Counter-    Credit  Amount  Unrealized 
Issuer  Rate  party  Expiration  Rating1  (000)2  Appreciation 
Philip Morris             
 International,  Deutsche  December       
 Inc.  1.73%  Bank AG  2013  A  $9,000  $21,307 

1 Using the S&P’s ratings of the issuer.
2 The maximum potential amount the Fund may pay should a negative credit
event take a place as defined under the terms of the agreement.

Effective November 1, 2008, the Fund adopted Financial Accounting Standards
Board Statement of Financial Accounting Standards No. 157, “Fair Value Measure-
ments” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a
framework for measuring fair values and requires additional disclosures about the
use of fair value measurements. Various inputs are used in determining the fair
value of investments, which are as follows:
Level 1 — price quotations in active markets/exchanges for identical securities
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 identi-
cal or similar assets 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
circumstance, to the extent observable inputs are not available (including the
Fund’s own assumptions used in determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily an indica-
tion of the risk associated with investing in those securities. For information about
the Fund’s policy regarding valuation of investments and other significant accounting
policies, please refer to Note 1 of the Notes to Financial Statements.
The following table summarizes the inputs used as of April 30, 2009 in determining
the fair valuation of the Fund’s investments:

Valuation  Investments in  Other Financial 
Inputs  Securities  Instruments* 
  Assets  Assets  Liabilities 
Level 1  $440,857,394  $ 531,779  $ (2,727,440) 
Level 2  285,216,880    (56,284,864) 
Level 3  2,983,950  21,307   
Total  $729,058,224  $ 553,086  $ (59,012,304) 

* Other financial instruments are futures, swaps, options written and reverse
repurchase agreements. Futures and swaps are valued at the unrealized
appreciation/depreciation on the instrument and options and reverse
repurchase agreements are shown at market value.

The following is a reconciliation of investments for unobservable inputs (Level 3)
were used in determining fair value:

    Other 
  Investments in  Financial 
     Securities  Instruments 
  Assets  Assets 
Balance, as of October 31, 2008  $ 268,850   
Accrued discounts/premiums  (361)   
Realized loss  (6,619,805)   
Change in unrealized appreciation/     
 depreciation1  (1,573,299)   
Net sales  (3,300,000)   
Net transfers into Level 3  14,208,565  $ 21,307 
Balance, as of April 30, 2009  $ 2,983,950  $ 21,307 

1 Included in the related net change in unrealized appreciation/depreciation on
the Statements of Operations.

See Notes to Financial Statements.

32 SEMI-ANNUAL REPORT

APRIL 30, 2009


Schedule of Investments April 30, 2009 (Unaudited) BlackRock Preferred Income Strategies Fund, Inc. (PSY)
(Percentages shown are based on Net Assets)

Preferred Securities       
    Par   
Capital Trusts    (000)  Value 
Building Products — 0.7%       
C8 Capital SPV Ltd., 6.64% (a)(b)(c)  $ 3,915  $ 1,756,700 
Capital Markets — 4.8%       
Ameriprise Financial, Inc., 7.518%, 6/01/66 (c)  7,600  4,378,960 
Lehman Brothers Holdings Capital Trust V,       
 3.64% (b)(c)(d)(e)    6,400  640 
State Street Capital Trust III, 8.25%       
 due 3/15/42 (c)(f)    2,920  1,987,264 
State Street Capital Trust IV, 2.32%, 6/01/67 (c)  12,535  5,072,889 
      11,439,753 
Commercial Banks — 14.7%       
ABN AMRO North America Holding Preferred       
 Capital Repackaging Trust I, 6.523% (a)(b)(c)    12,035  4,933,821 
Bank One Capital III, 8.75%, 9/01/30    2,000  1,624,914 
Bank of Ireland Capital Funding II, LP,       
 5.571% (a)(b)(c)    8,065  1,611,790 
Bank of Ireland Capital Funding III, LP,       
 6.107% (a)(b)(c)    8,575  1,627,775 
Barclays Bank Plc, 5.926% (a)(b)(c)    8,500  3,396,430 
First Empire Capital Trust II, 8.277%, 6/01/27    3,630  2,159,189 
HSBC America Capital Trust I, 7.808%, 12/15/26 (a)  2,000  1,358,966 
HSBC Capital Funding LP/Jersey Channel Islands,     
 10.176% (a)(b)(c)(f)    4,835  4,243,036 
HSBC Finance Capital Trust IX, 5.911%, 11/30/35 (c)  7,300  3,317,339 
Lloyds Banking Group Plc, 6.657% (a)(b)(c)    5,000  1,525,000 
National City Preferred Capital Trust I, 12% (b)(c)  1,100  951,830 
NationsBank Capital Trust III, 1.681%, 1/15/27 (c)  13,470  4,486,938 
SMFG Preferred Capital USD 3 Ltd.,       
 9.50% (a)(b)(c)    3,550  3,202,679 
SunTrust Preferred Capital I, 5.853% (b)(c)    1,825  593,125 
      35,032,832 
Diversified Financial Services — 4.8%       
AgFirst Farm Credit Bank, 8.393%, 12/15/16 (c)  4,000  2,884,616 
Farm Credit Bank of Texas Series 1, 7.561% (b)(c)  2,500  1,498,200 
ING Capital Funding Trust III, 8.439% (b)(c)    6,066  2,608,380 
JPMorgan Chase Capital XXV, 6.80%, 10/01/37    6,150  4,502,538 
      11,493,734 
Electric Utilities — 1.4%       
PPL Capital Funding, 6.70%, 3/30/67 (c)    5,925  3,436,500 
Insurance — 53.9%       
AON Corp., 8.205%, 1/01/27 (f)    10,000  7,481,200 
AXA SA, 6.379% (a)(b)(c)    13,470  5,375,621 
Ace Capital Trust II, 9.70%, 4/01/30    11,300  8,836,939 
The Allstate Corp. (c):       
     6.50%, 5/15/57    12,775  7,106,094 
     Series B, 6.125%, 5/15/67    10,450  5,747,500 
American International Group, Inc., 6.25%, 3/15/87  9,895  1,236,875 
Chubb Corp., 6.375%, 3/29/67 (c)    17,700  10,702,376 
Farmers Exchange Capital, 7.05%, 7/15/28 (a)    5,000  2,924,150 
Financial Security Assurance Holdings Ltd.,       
 6.40%, 12/15/66 (a)(c)    6,930  1,871,100 
GE Global Insurance Holding Corp., 7.75%, 6/15/30  10,000  8,076,580 
Genworth Financial, Inc., 6.15%, 11/15/66 (c)    3,000  418,959 
Great West Life & Annuity Insurance Co.,       
 7.153%, 5/16/46 (a)(c)    7,500  3,704,400 
Liberty Mutual Group, Inc. (a)(c):       
     7%, 3/15/37    10,150  3,736,459 
     10.75%, 6/15/88    7,925  4,358,750 
Lincoln National Corp. (c):       
     7%, 5/17/66    12,000  3,840,000 
     6.05%, 4/20/67    5,025  1,457,250 
MetLife, Inc., 6.40%, 12/15/66    16,825  9,001,375 
Nationwide Life Global Funding I, 6.75%, 5/15/67  9,675  3,800,379 

    Par   
Capital Trusts    (000)  Value 
Insurance (concluded)       
Oil Casualty Insurance Ltd., 8%, 9/15/34 (a)  $ 3,605  $ 2,178,617 
Principal Life Insurance Co., 8%, 3/01/44 (a)    6,325  4,859,320 
Progressive Corp., 6.70%, 6/15/37 (c)    11,650  5,769,697 
Reinsurance Group of America,       
 6.75%, 12/15/65 (c)    3,000  1,468,440 
Swiss Re Capital I LP, 6.854% (a)(b)(c)    8,875  3,505,625 
The Travelers Cos., Inc., 6.25%, 3/15/67 (c)    12,850  7,910,820 
ZFS Finance (USA) Trust IV, 5.875%, 5/09/32 (a)(c)  1,300  689,182 
ZFS Finance (USA) Trust V, 6.50%, 5/09/67 (a)(c)  17,110  9,239,400 
Zenith National Insurance Capital Trust I,       
 8.55%, 8/01/28 (a)    3,750  3,487,500 
      128,784,608 
Multi-Utilities — 6.0%       
Dominion Resources Capital Trust I, 7.83%, 12/01/27  10,000  8,224,940 
Dominion Resources, Inc., 7.50%, 6/30/66 (c)    8,400  5,292,000 
Puget Sound Energy, Inc. Series A, 6.974%,       
 6/01/67 (c)    1,825  953,563 
      14,470,503 
Oil, Gas & Consumable Fuels — 6.6%       
Enterprise Products Operating LLC,       
 8.375%, 8/01/66 (c)    4,225  2,915,250 
Southern Union Co., 7.20%, 11/01/66 (c)    14,400  7,416,000 
TransCanada PipeLines Ltd., 6.35%, 5/15/67 (c)  8,300  5,312,000 
      15,643,250 
Road & Rail — 1.2%       
BNSF Funding Trust I, 6.613%, 12/15/55 (c)    3,750  2,775,000 
Thrifts & Mortgage Finance — 0.7%       
Webster Capital Trust IV, 7.65%, 6/15/37 (c)    3,875  1,657,733 
Total Capital Trusts — 94.8%      226,490,613 
Preferred Stocks    Shares   
Capital Markets — 0.0%       
Deutsche Bank Contingent Capital Trust II, 6.55%  530  7,139 
Commercial Banks — 11.1%       
Barclays Bank Plc, 8.125%    225,000  3,575,250 
First Tennessee Bank NA, 3.75% (a)(c)    4,650  1,467,656 
HSBC USA, Inc.:       
     Series D, 4.50% (c)(g)    131,700  1,777,950 
     Series H, 6.50%    120,000  2,040,000 
Provident Financial Group, Inc., 7.75%    166,800  2,908,575 
Royal Bank of Scotland Group Plc Series M, 6.40%  15,000  120,900 
SG Preferred Capital II, 6.302% (c)    23,000  12,420,000 
Santander Finance Preferred SA Unipersonal, 6.80%  147,200  2,178,560 
      26,488,891 
Diversified Financial Services — 1.7%       
Cobank ACB, 7% (a)    152,000  3,940,752 
Electric Utilities — 5.0%       
Alabama Power Co.:       
     5.83%    14,000  326,480 
     6.50%    145,000  3,262,500 
Entergy Arkansas, Inc., 6.45%    114,400  2,792,081 
Entergy Louisiana LLC, 6.95%    49,850  3,489,500 
Interstate Power & Light Co. Series B, 8.375%    80,000  2,085,600 
      11,956,161 
Insurance — 18.5%       
Aspen Insurance Holdings Ltd., 7.401% (c)    194,000  2,716,000 
Axis Capital Holdings Ltd.:       
     Series A, 7.25%    129,300  2,262,750 
     Series B, 7.50% (c)    36,000  2,157,750 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

APRIL 30, 2009

33


Schedule of Investments (continued) BlackRock Preferred Income Strategies Fund, Inc. (PSY)
(Percentages shown are based on Net Assets)

Preferred Stocks  Shares  Value 
Insurance (concluded)     
Endurance Specialty Holdings Ltd. Series A, 7.75%  139,200  $ 2,234,160 
MetLife, Inc., Series B, 6.50%  904,400  16,550,520 
Prudential Plc, 6.50%  92,400  1,338,876 
RenaissanceRe Holding Ltd. Series D, 6.60%  435,000  7,830,000 
Zurich RegCaPS Funding Trust, 6.58% (a)(c)  9,800  8,970,063 
    44,060,119 
Multi-Utilities — 1.5%     
Pacific Gas & Electric Co. Series A, 6%  140,000  3,567,200 
Real Estate Investment Trusts (REITs) — 6.9%     
BRE Properties, Inc. Series D, 6.75%  35,000  597,100 
Developers Diversified Realty Corp., 8%  400,000  3,756,000 
First Industrial Realty Trust, Inc., 6.236% (c)  2,390  873,844 
Firstar Realty LLC, 8.875% (a)  4,000  3,155,000 
Kimco Realty Corp. Series F, 6.65%  50,000  787,500 
Public Storage Series F, 6.45%  40,000  739,200 
Public Storage Series M, 6.625%  71,900  1,359,629 
Public Storage, Inc. Series I, 7.25%  160,000  3,448,000 
Regency Centers Corp. Series D, 7.25%  100,000  1,875,000 
    16,591,273 
Thrifts & Mortgage Finance — 0.3%     
Sovereign Bancorp, Inc. Series C, 7.30% (h)  48,000  767,520 
Wireless Telecommunication Services — 0.6%     
Centaur Funding Corp., 9.08% (a)  2,423  1,506,803 
Total Preferred Stocks — 45.6%    108,885,858 
  Par   
Trust Preferreds  (000)   
Commercial Banks — 0.4%     
KeyCorp Capital IX, 6.75%  $ 1,868  903,396 
Communications Equipment — 0.6%     
Corporate-Backed Trust Certificates, Motorola     
Debenture Backed Series 2002-14,     
8.375%, 11/15/28  2,000  1,265,928 
Consumer Finance — 4.1%     
Capital One Capital II, 7.50%, 6/15/66  16,702  9,861,212 
Diversified Financial Services — 0.7%     
ING Groep NV, 7.20% (b)  3,500  1,673,015 
Electric Utilities — 3.9%     
Georgia Power Co. Series O, 1.475%, 4/15/33  1,250  1,246,758 
HECO Capital Trust III, 6.50%, 3/18/34  1,250  1,093,435 
National Rural Utilities Cooperative Finance Corp.,     
6.75%, 2/15/43  1,250  1,067,224 
PPL Energy Supply LLC, 7%, 7/15/46  5,835  5,909,194 
    9,316,611 
Gas Utilities — 5.5%     
Southwest Gas Capital II, 7.70%, 9/15/43  15,125  13,160,328 

    Par   
Trust Preferreds    (000)  Value 
Insurance — 4.0%       
ABN AMRO North America Capital Funding Trust II,     
 1.375% (a)(b)(c)  $ 11,000  $ 688,172 
Lincoln National Capital VI Series F,       
 6.75%, 9/11/52    5,000  2,745,257 
W.R. Berkley Capital Trust II, 6.75%, 7/26/45    7,375  6,193,647 
      9,627,076 
Total Trust Preferreds — 19.2%      45,807,566 
Total Preferred Securities — 159.6%      381,184,037 
Corporate Bonds       
Insurance — 3.3%       
Oil Insurance Ltd., 7.558% (a)(b)(c)    5,000  1,636,050 
QBE Insurance Group Ltd., 9.75%, 3/14/14 (a)    5,967  6,024,695 
Structured Asset Repackaged Trust Series 2004-1,     
 1.602%, 4/21/11 (c)    382  290,560 
Total Corporate Bonds — 3.3%      7,951,305 
Total Long-Term Investments       
(Cost — $683,669,352) — 162.9%      389,135,342 
Short-Term Securities    Shares   
Money Market Fund — 6.6%       
BlackRock Liquidity Funds, TempFund, 0.64% (i)(j)  15,858,851  15,858,851 
Total Short-Term Securities       
(Cost — $15,858,851) — 6.6%      15,858,851 
Total Investments (Cost — $699,528,203*) — 169.5%    404,994,193 
Other Assets Less Liabilities — 2.9%      6,929,413 
Preferred Shares, at Redemption Value — (72.4)%    (172,990,679) 
Net Assets Applicable to Common Shares — 100.0%    $ 238,932,927 

*The cost and unrealized appreciation (depreciation) of investments as of April 30,
2009, as computed for federal income tax purposes, were as follows:

Aggregate cost  $ 700,584,478 
Gross unrealized appreciation  $ 2,865,611 
Gross unrealized depreciation   (298,455,896) 
Net unrealized depreciation  $(295,590,285) 

(a) Security exempt from registration under Rule 144A of the Securities Act of 1933.
These securities may be resold in transactions exempt from registration to qualified
institutional investors.
(b) Security is perpetual in nature and has no stated maturity date.
(c) Variable rate security. Rate shown is as of report date.
(d) Non-income producing security.
(e) Issuer filed for bankruptcy and/or is in default of interest payments.
(f) All or a portion of security held as collateral in connection with open reverse repur-
chase agreements.
(g) All or a portion of security has been pledged as collateral in connection with open
financial futures contracts.
(h) Depositary receipts.
(i) Investments in companies considered to be an affiliate of the Fund, for purposes of
Section 2(a)(3) of the Investment Company Act of 1940, were as follows:

  Net   
Affiliate  Activity  Income 
BlackRock Liquidity Funds, TempFund  15,858,851  $ 16,827 
BlackRock Liquidity Series, LLC     
   Cash Sweep Series  $(28,803,004)  $ 80,087 

See Notes to Financial Statements.

34 SEMI-ANNUAL REPORT

APRIL 30, 2009


Schedule of Investments (concluded) BlackRock Preferred Income Strategies Fund, Inc. (PSY)

(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 ratings group indexes, and/or as defined by Fund management.
This definition may not apply for purposes of this report, which may combine indus-
try sub-classifications for reporting ease.
Reverse repurchase agreements outstanding as of April 30, 2009 were as follows:

  Interest  Trade  Maturity  Net Closing  Face 
Counterparty  Rate  Date  Date  Amount  Amount 
Barclays Bank Plc  1.99%  3/03/09  5/15/09  $ 3,262,935  $ 3,250,000 
Barclays Bank Plc  1.99%  3/03/09  5/15/09     3,295,374     3,282,310 
Total        $ 6,558,309  $ 6,532,310 

Financial futures contracts purchased as of April 30, 2009 were as follows:

    Expiration  Face  Unrealized 
     Contracts  Issue  Date  Amount  Depreciation 
     27  30-Year U.S.       
  Treasury Notes  June 2009  $3,361,345       $(52,157) 
Financial futures contracts sold as of April 30, 2009 were as follows:   
    Expiration  Face  Unrealized 
     Contracts  Issue  Date  Amount  Appreciation 
     214  10-Year U.S.       
  Treasury Notes  June 2009  $26,147,307  $266,682 

Credit default swaps on single-name issues — buy protection outstanding as of
April 30, 2009 were as follows:

  Pay      Notional   
  Fixed  Counter-    Amount  Unrealized 
Issuer  Rate  party  Expiration  (000)  Depreciation 
Altria Group, Inc.  1.03%  Deutsche  December     
    Bank AG  2013  $8,000  $ (96,459) 
Nordstrom Inc.  5.20%  Deutsche  June     
    Bank AG  2014  $2,000  (288,602) 
Total          $ (385,061) 

Credit default swaps on single-name issues — sold protection outstanding as of
April 30, 2009 were as follows:

  Receive        Notional   
  Fixed  Counter-    Credit  Amount  Unrealized 
Issuer  Rate  party  Expiration  Rating1  (000)2  Appreciation 
Philip Morris             
 International,  Deutsche  December       
 Inc.  1.73%  Bank AG  2013  A  $8,000  $18,940 

1 Using the S&P’s ratings of the issuer.
2 The maximum potential amount the Fund may pay should a negative credit
event take place as defined under the terms of the agreement.

Effective November 1, 2008, the Fund adopted Financial Accounting Standards
Board Statement of Financial Accounting Standards No. 157, “Fair Value Measure-
ments” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a
framework for measuring fair values and requires additional disclosures about the
use of fair value measurements. Various inputs are used in determining the fair
value of investments, which are as follows:
Level 1 — price quotations in active markets/exchanges for identical securities
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 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
circumstance, to the extent observable inputs are not available (including the
Fund’s own assumptions used in determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily an indica-
tion of the risk associated with investing in those securities. For information about
the Fund’s policy regarding valuation of investments and other significant accounting
policies, please refer to Note 1 of the Notes to Financial Statements.
The following table summarizes the inputs used as of April 30, 2009 in determining
the fair valuation of the Fund’s investments:

Valuation  Investments in  Other Financial 
Inputs  Securities  Instruments* 
  Assets  Assets  Liabilities 
Level 1  $ 126,182,080  $ 266,682  $ (52,157) 
Level 2  262,612,054    (6,917,371) 
Level 3  16,200,059  18,940   
Total  $ 404,994,193  $ 285,622  $ (6,969,528) 

* Other financial instruments are swaps, futures and reverse repurchase
agreements. Swaps and futures are valued at the unrealized appreciation/
depreciation on the instrument. Reverse repurchase agreements are shown at
market value.

The following is a reconciliation of investments for unobservable inputs (Level 3)
were used in determining fair value:

    Other 
  Investments in  Financial 
  Securities  Instruments 
  Assets  Assets 
Balance, as of October 31, 2008     
Accrued discounts/premiums     
Realized gain (loss)     
Change in unrealized appreciation/     
 depreciation1  $ (13,615,981)   
Net purchases (sales)     
Net transfers into Level 3  29,816,040  $ 18,940 
Balance, as of April 30, 2009  $ 16,200,059  $ 18,940 

1 Included in the related net change in unrealized appreciation/depreciation on
the Statements of Operations.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

APRIL 30, 2009

35


Schedule of Investments April 30, 2009 (Unaudited) BlackRock Preferred Opportunity Trust (BPP)
(Percentages shown are based on Net Assets)

Preferred Securities       
    Par   
Capital Trusts    (000)  Value 
Building Products — 0.7%       
C8 Capital SPV Ltd., 6.64% (a)(b)(c)  $ 1,945  $ 872,741 
Capital Markets — 3.0%       
State Street Capital Trust III, 8.25% due 3/15/42 (c)  1,385  942,589 
State Street Capital Trust IV, 2.32%, 6/01/67 (c)    6,725  2,721,594 
      3,664,183 
Commercial Banks — 13.7%       
Bank of Ireland Capital Funding II, LP, 5.571% (a)(b)(c)  4,015  802,398 
Bank of Ireland Capital Funding III, LP, 6.107% (a)(b)(c)  4,275  811,515 
Barclays Bank Plc, 5.926% (a)(b)(c)    6,885  2,751,108 
CBA Capital Trust I, 5.805% (a)(b)(d)    5,000  3,550,300 
FCB/NC Capital Trust I, 8.05%, 3/01/28    1,100  797,947 
Lloyds TSB Bank Plc, 6.90% (b)    4,399  1,759,600 
NBP Capital Trust III, 7.375% (b)    2,000  560,000 
National City Preferred Capital Trust I, 12% (b)(c)    600  519,180 
RESPARCS Funding LP I, 8% (b)    4,000  520,000 
SMFG Preferred Capital USD 3 Ltd., 9.50% (a)(b)(c)    1,725  1,556,232 
SunTrust Preferred Capital I, 5.853% (b)(c)    1,800  585,000 
Wells Fargo Capital XIII Series GMTN, 7.70% (b)(c)    1,700  1,088,000 
Westpac Capital Trust IV, 5.256% (a)(b)(c)    3,000  1,530,810 
      16,832,090 
Diversified Financial Services — 5.5%       
JPMorgan Chase Capital XXI Series U,       
 1.966%, 2/02/37 (c)(e)    7,125  3,032,749 
JPMorgan Chase Capital XXV, 6.80%, 10/01/37 (d)    5,075  3,715,509 
      6,748,258 
Electric Utilities — 1.3%       
PPL Capital Funding, 6.70%, 3/30/67 (c)    2,675  1,551,500 
Insurance — 41.9%       
AFC Capital Trust I Series B, 8.207%, 2/03/27    4,500  3,060,000 
The Allstate Corp. (c):       
     6.50%, 5/15/57    6,350  3,532,188 
     Series B, 6.125%, 5/15/67    5,200  2,860,000 
American International Group, Inc., 6.25%, 3/15/87  4,055  506,875 
Chubb Corp., 6.375%, 3/29/67 (c)(d)    9,025  5,457,002 
Genworth Financial, Inc., 6.15%, 11/15/66 (c)    1,475  205,988 
Liberty Mutual Group, Inc. (a)(c):       
     7%, 3/15/37    5,025  1,849,823 
     10.75%, 6/15/88    3,875  2,131,250 
Lincoln National Corp. (c):       
     7%, 5/17/66 (d)    3,370  1,078,400 
     6.05%, 4/20/67    2,500  725,000 
MetLife, Inc., 6.40%, 12/15/66    6,375  3,410,625 
Nationwide Life Global Funding I, 6.75%, 5/15/67    4,850  1,905,099 
Progressive Corp., 6.70%, 6/15/37 (c)    5,775  2,860,086 
Prudential Plc, 6.50% (b)    6,000  2,970,000 
Reinsurance Group of America, 6.75%, 12/15/65 (c)  1,300  636,324 
Swiss Re Capital I LP, 6.854% (a)(b)(c)(d)    9,425  3,722,875 
The Travelers Cos., Inc., 6.25%, 3/15/67 (c)(d)    11,350  6,987,378 
White Mountains Re Group Ltd., 7.506% (a)(b)(c)    2,600  822,894 
ZFS Finance (USA) Trust IV, 5.875%, 5/09/32 (a)(c)  650  344,591 
ZFS Finance (USA) Trust V, 6.50%, 5/09/67 (a)(c)(d)  8,765  4,733,100 
Zenith National Insurance Capital Trust I,       
8.55%, 8/01/28 (a)    1,800  1,674,000 
      51,473,498 
Multi-Utilities — 0.4%       
Puget Sound Energy, Inc. Series A,       
6.974%, 6/01/67 (c)    925  483,312 
Oil, Gas & Consumable Fuels — 2.2%       
TransCanada PipeLines Ltd., 6.35%, 5/15/67 (c)    4,325  2,768,000 

  Par   
Capital Trusts  (000)  Value 
Thrifts & Mortgage Finance — 0.7%     
Webster Capital Trust IV, 7.65%, 6/15/37 (c)  $ 1,925  $ 823,519 
Total Capital Trusts — 69.4%    85,217,101 
Preferred Stocks  Shares   
Capital Markets — 0.0%     
Lehman Brothers Holdings Inc. Series D, 5.67% (f)(g)  31,100  2,177 
Commercial Banks — 9.6%     
Banesto Holdings, Ltd. Series A, 10.50%  30,000  612,189 
Barclays Bank Plc, 8.125%  100,000  1,589,000 
First Republic Preferred Capital Corp., 7.25%  120,000  1,639,200 
HSBC USA, Inc. Series H, 6.50%  330,000  5,610,000 
Royal Bank of Scotland Group Plc Series M, 6.40%  10,000  80,600 
Santander Finance Preferred SA Unipersonal, 6.80%  75,000  1,110,000 
Union Planter Preferred Funding Corp., 7.75% (a)  60  1,200,000 
    11,840,989 
Diversified Financial Services — 4.1%     
Citigroup, Inc. Series T, 6.50% (h)  65,000  2,054,000 
JPMorgan Chase & Co. Series E, 6.15%  75,000  2,932,500 
    4,986,500 
Electric Utilities — 0.9%     
Alabama Power Co., 6.50%  50,000  1,125,000 
Insurance — 18.8%     
Arch Capital Group Ltd. Series A, 8%  117,414  2,338,887 
Aspen Insurance Holdings Ltd., 7.401% (c)  115,000  1,610,000 
Endurance Specialty Holdings Ltd. Series A, 7.75%  172,400  2,767,020 
MetLife, Inc. Series B, 6.50%  314,500  5,755,350 
PartnerRe Ltd. Series C, 6.75%  209,400  4,047,702 
Prudential Plc, 6.50%  62,000  898,380 
RenaissanceRe Holding Ltd. Series D, 6.60%  210,000  3,780,000 
Zurich RegCaPS Funding Trust, 6.58% (a)(c)  2,000  1,830,625 
    23,027,964 
Media — 0.0%     
CMP Susquemanna Radio Holdings Corp., 0% (a)(c)  2,052   
Real Estate Investment Trusts (REITs) — 3.6%     
BRE Properties, Inc. Series D, 6.75%  20,000  341,200 
Public Storage Series F, 6.45%  20,000  369,600 
Public Storage Series M, 6.625%  35,000  661,850 
SunTrust Real Estate Investment Trust, 9%  30  3,027,188 
    4,399,838 
Total Preferred Stocks — 37.0%    45,382,468 
  Par   
Trust Preferreds  (000)   
Capital Markets — 1.5%     
Structured Asset Trust Unit Repackagings (SATURNS),     
 Credit Suisse First Boston (USA), Inc. Debenture     
 Backed Series 2003-13, 6.25%, 7/15/32  $ 278  190,281 
Structured Asset Trust Unit Repackagings (SATURNS),     
 Goldman Sachs Group, Inc. Debenture Backed     
 Series 2003-06, 6%, 2/15/33  2,573  1,707,031 
    1,897,312 
Commercial Banks — 1.0%     
Keycorp Capital V, 5.875%, 7/30/33  2,550  1,176,615 
Diversified Financial Services — 0.9%     
ING Groep NV, 7.20% (b)  1,750  836,508 
PPLUS Trust Certificates Series VAL-1 Class A,     
 7.25%, 4/15/32  278  247,206 
    1,083,714 

See Notes to Financial Statements.

36 SEMI-ANNUAL REPORT

APRIL 30, 2009


Schedule of Investments (continued) BlackRock Preferred Opportunity Trust (BPP)
(Percentages shown are based on Net Assets)
Par Par

Trust Preferreds  (000)  Value 
Food Products — 1.8%     
Corporate-Backed Trust Certificates, Kraft Foods, Inc.     
 Debenture Backed Series 2003-11,     
 5.875%, 11/01/31  $ 2,500  $ 2,160,000 
Insurance — 1.1%     
Everest Re Capital Trust, 6.20%, 3/29/34  750  513,840 
Financial Security Assurance Holdings Ltd.,     
 5.60%, 7/15/03  380  123,705 
The Phoenix Cos., Inc., 7.45%, 1/15/32  1,985  707,172 
    1,344,717 
Media — 8.9%     
Comcast Corp.:     
7%, 9/15/55  1,250  1,083,800 
6.625%, 5/15/56  11,750  9,724,300 
Corporate-Backed Trust Certificates, News     
 America Debenture Backed Series 2002-9,     
 8.125%, 12/01/45  180  128,293 
    10,936,393 
Oil, Gas & Consumable Fuels — 2.3%     
Nexen, Inc., 7.35%, 11/01/43  3,875  2,836,500 
Wireless Telecommunication Services — 0.9%     
Structured Repackaged Asset-Backed Trust Securities,     
 Sprint Capital Corp. Debenture Backed Series     
 2004-2, 6.50%, 11/15/28  2,586  1,060,285 
Total Trust Preferreds — 18.4%    22,495,536 
Total Preferred Securities — 124.8%    153,095,105 
Warrants (i)  Shares   
Media — 0.0%     
CMP Susquemanna Radio Holdings Corp.     
 (expires 3/26/19) (a)  2,345   
Total Warrants — 0.0%     
Investment Companies     
Ultra Short Real Estate ProShares  60,000  1,416,000 
Total Investment Companies — 1.1%    1,416,000 
  Par   
Corporate Bonds  (000)   
Commercial Banks — 2.5%     
Mizuho Capital Investment 1 Ltd., 6.686% (a)(b)(c)  $ 5,000  3,069,005 
Containers & Packaging — 0.2%     
Impress Holdings BV, 4.256%, 9/15/13 (a)(c)  240  196,800 
Diversified Telecommunication Services — 0.3%     
Qwest Corp., 4.57%, 6/15/13 (c)  460  416,300 
Hotels, Restaurants & Leisure — 0.0%     
Greektown Holdings, LLC, 10.75%, 12/01/13 (a)(f)(g)  362  21,720 
Insurance — 7.0%     
AXA SA, 6.379% (a)(b)(c)  7,150  2,853,429 
Kingsway America, Inc., 7.50%, 2/01/14  9,000  2,700,000 
QBE Insurance Group Ltd., 9.75%, 3/14/14 (a)  2,975  3,003,765 
    8,557,194 

Corporate Bonds    (000)  Value 
Machinery — 0.2%       
AGY Holding Corp., 11%, 11/15/14  $ 460  $ 289,800 
Media — 2.8%       
CMP Susquehanna Corp., 0%, 5/15/14 (a)    9  180 
Comcast Holdings Corp., 2%, 11/15/29 (h)    110  3,253,403 
Local Insight Regatta Hldgs, Inc., 11%, 12/01/17    902  216,480 
      3,470,063 
Metals & Mining — 0.1%       
Freeport-McMoRan Copper & Gold, Inc.,       
4.996%, 4/01/15 (c)    170  149,175 
Oil, Gas & Consumable Fuels — 0.1%       
EXCO Resources, Inc., 7.25%, 1/15/11    75  63,375 
Paper & Forest Products — 0.5%       
International Paper Co., 8.70%, 6/15/38    900  670,634 
Professional Services — 0.1%       
FTI Consulting, Inc., 7.75%, 10/01/16    100  101,500 
Specialty Retail — 0.1%       
Lazy Days’ R.V. Center, Inc., 11.75%, 5/15/12 (f)(g)  1,182  70,920 
Total Corporate Bonds — 13.9%      17,076,486 
Total Long-Term Investments       
(Cost — $306,206,665) — 139.8%      171,587,591 
Short-Term Securities    Shares   
Money Market Fund — 22.7%       
BlackRock Liquidity Funds, TempFund, 0.64% (j)(k)    27,905,614  27,905,614 
Total Short-Term Securities       
(Cost — $27,905,614) — 22.7%      27,905,614 
Total Investments (Cost — $334,112,279*) — 162.5%    199,493,205 
Liabilities in Excess of Other Assets — (5.1)%      (6,318,479) 
Preferred Shares, at Redemption Value — (57.4)%      (70,427,967) 
Net Assets Applicable to Common Shares — 100.0%    $ 122,746,759 

* The cost and unrealized appreciation (depreciation) of investments as of April 30,
2009, as computed for federal income tax purposes, were as follows:

Aggregate cost  $ 332,648,831 
Gross unrealized appreciation  $ 199,555 
Gross unrealized depreciation  (133,355,181) 
Net unrealized depreciation  $(133,155,626) 

(a) Security exempt from registration under Rule 144A of the Securities Act of 1933.
These securities may be resold in transactions exempt from registration to qualified
institutional investors.
(b) Security is perpetual in nature and has no stated maturity date.
(c) Variable rate security. Rate shown is as of report date.
(d) All or a portion of security held as collateral in connection with open reverse repur-
chase agreements.
(e) All or a portion of security has been pledged as collateral in connection with open
financial futures contracts.
(f) Non-income producing security.
(g) Issuer filed for bankruptcy and/or is in default of interest payments.
(h) Convertible security.
(i) Warrants entitle the Fund to purchase a predetermined number of shares of com-
mon stock and are non-income producing. The purchase price and number of
shares are subject to adjustment under certain conditions until the expiration date.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

APRIL 30, 2009

37


Schedule of Investments (concluded) BlackRock Preferred Opportunity Trust (BPP)

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

    Net   
  Affiliate  Activity  Income 
  BlackRock Liquidity Funds, TempFund  27,905,614  $ 60,011 
(k)  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 ratings group indexes, and/or as defined by Fund management.
This definition may not apply for purposes of this report, which may combine indus-
try sub-classifications for reporting ease.
Reverse repurchase agreements outstanding as of April 30, 2009 were as follows:

  Interest  Trade  Maturity  Net Closing  Face 
Counterparty  Rate  Date  Date  Amount  Amount 
Barclays Bank Plc  1.99%  3/03/09  5/15/09  $ 81,322  $ 81,000 
Barclays Bank Plc  1.98%  3/06/09  5/15/09  4,336,321  4,320,400 
Barclays Bank Plc  1.98%  3/06/09  5/15/09  5,733,871  5,713,133 
Total        $10,151,514  $10,114,533 

Financial futures contracts purchased as of April 30, 2009 were as follows:

    Expiration  Face  Unrealized 
Contracts  Issue  Date  Value  Depreciation 
15  30-Year U.S.       
  Treasury Notes  June 2009  $ 1,867,414  $ (28,976) 
Financial futures contracts sold as of April 30, 2009 were as follows:   
    Expiration  Face  Unrealized 
Contracts  Issue  Date  Value  Appreciation 
151  10-Year U.S.       
  Treasury Notes  June 2009  $18,445,278  $ 183,715 

Credit default swaps on single-name issues — buy protection outstanding as of April
30, 2009 were as follows:

  Pay      Notional   
  Fixed  Counter-    Amount  Unrealized 
Issuer  Rate  party  Expiration  (000)  Depreciation 
Altria Group, Inc.  1.03%  Deutsche  December     
    Bank AG  2013  $4,000  $ (48,230) 
Nordstrom Inc.  5.20%  Deutsche  June     
    Bank AG  2014  $1,000  (144,301) 
Total          $ (192,531) 

Credit default swaps on single-name issues — sold protection outstanding as of
April 30, 2009 were as follows:

  Receive        Notional   
  Fixed  Counter-    Credit  Amount  Unrealized 
Issuer  Rate  party  Expiration  Rating1  (000)2  Appreciation 
Philip Morris             
 International,  Deutsche  December       
 Inc.  1.73%  Bank AG  2013  A  $4,000  $ 9,470 

1 Using the S&P’s ratings of the issuer.
2 The maximum potential amount the Fund may pay should a negative credit
event take place as defined under the terms of the agreement.

Financial Accounting Standards Board Statement of Financial Accounting
Standards No. 157, “Fair Value Measurements” clarifies the definition of fair
value, establishes a framework for measuring fair values and requires additional
disclosures about the use of fair value measurements. Various inputs are used in
determining the fair value of investments, which are as follows:
Level 1 — price quotations in active markets/exchanges for identical securities
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 iden-
tical or similar assets 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
circumstance, to the extent observable inputs are not available (including the
Fund’s own assumptions used in determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily an indi-
cation of the risk associated with investing in those securities. For information
about the Fund’s policy regarding valuation of investments and other significant
accounting policies, please refer to Note 1 of the Notes to Financial Statements.
The following table summarizes the inputs used as of April 30, 2009 in determin-
ing the fair valuation of the Fund’s investments:

Valuation  Investments in  Other Financial 
Inputs  Securities  Instruments* 
  Assets  Assets  Liabilities 
Level 1  $ 90,529,616  $ 183,715  $ (28,976) 
Level 2  105,936,221    (10,307,064) 
Level 3  3,027,368  9,470   
Total  $ 199,493,205  $ 193,185  $ (10,336,040) 

* Other financial instruments are swaps, futures and reverse repurchase
agreements. Swaps and futures are valued at the unrealized appreciation/
depreciation on the instrument. Reverse repurchase agreements are shown at
market value.
The following is a reconciliation of investments for unobservable inputs (Level 3)
were used in determining fair value:

    Other 
  Investments in  Financial 
  Securities  Instruments 
  Assets  Assets 
Balance, as of October 31, 2008     
Accrued discounts/premiums  $ 61   
Realized loss  (3,430,938)   
Change in unrealized appreciation/     
 depreciation1  (819,856)  $ 9,470 
Net sales  (1,650,000)   
Net transfers into Level 3  8,928,101   
Balance, as of April 30, 2009  $ 3,027,368  $ 9,470 

1 Included in the related net change in unrealized appreciation/depreciation on
the Statements of Operations.

See Notes to Financial Statements.

38 SEMI-ANNUAL REPORT

APRIL 30, 2009


Statements of Assets and Liabilities         
        BlackRock 
  BlackRock  BlackRock    Preferred and 
  Broad  Enhanced  BlackRock  Corporate 
  Investment  Capital and  Floating Rate  Income 
  Grade 2009  Income  Income  Strategies 
  Term Trust Inc.1  Fund, Inc.  Trust  Fund, Inc. 
April 30, 2009 (Unaudited)  (BCT)  (CII)  (BGT)  (PSW) 
     Assets         
Investments at value — unaffiliated2  $ 33,425,582  $ 564,461,082  $ 344,135,934  $ 73,632,913 
Investments at value — affiliated3  2,780,000    3,151,730  27,610,483 
Unrealized appreciation on foreign currency exchange contracts      26,032   
Unrealized appreciation on swaps  91,865      4,735 
Cash  4,019    988,735   
Cash collateral for futures contracts    1,400,000     
Foreign currency at value4    7,619  856,104  381 
Investments sold receivable    1,724,206  10,385,114   
Interest receivable  47,248  8  4,089,603  2,079,507 
Swaps receivable  960    6,213  4,037 
Options written receivable    172,947     
Margin variation receivable  54,186      23,250 
Dividends receivable — unaffiliated    1,487,720    130,193 
Investment advisory fees receivable  134       
Principal paydown receivable      160,005   
Income receivable — affiliated  42    352   
Other assets  3,013  69,403  150,427   
Prepaid expenses  4,313  4,203  52,858  11,531 
Total assets  36,411,362  569,327,188  364,003,107  103,497,030 
     Liabilities         
Unrealized depreciation on swaps      422,017  168,416 
Loan payable      54,000,000   
Unrealized depreciation on unfunded corporate loans      51,632   
Options written at value5    12,442,493     
Reverse repurchase agreements  2,272,644      5,060,551 
Unrealized depreciation on foreign currency exchange contracts      2,075,040   
Investments purchased payable    3,492,511  2,273,968   
Interest expense payable  2,879    60,237  16,224 
Income dividends payable — Common Shares      106,830  54,857 
Investment advisory fees payable    376,697  159,143  47,559 
Swaps payable  375    845,950  9,626 
Officer's and Directors'/Trustees' fees payable  3,455  727  54,326  149 
Other affiliates payable    2,952  2,436  924 
Other accrued expenses payable  21,107  90,681    31,930 
Other liabilities      7,465   
Total liabilities  2,300,460  16,406,061  60,059,044  5,390,236 
     Preferred Shares at Redemption Value         
$25,000 per share liquidation preferrence, plus unpaid dividends6,7      58,811,150  40,254,342 
Net Assets Applicable to Common Shareholders  $ 34,110,902  $ 552,921,127  $ 245,132,913  $ 57,852,452 
     Net Assets Applicable to Common Shareholders Consist of         
Paid-in capital  $ 37,922,428  $ 792,770,863  $ 437,555,254  $ 238,901,924 
Undistributed (distributions in excess of) net investment income  5,560,434  (34,555,889)  (5,519,372)  (199,202) 
Accumulated net realized loss  (7,122,805)  (60,757,680)  (50,239,710)  (118,494,972) 
Net unrealized appreciation/depreciation  (2,249,155)  (144,536,167)  (136,663,259)  (62,355,298) 
Net Assets Applicable to Common Shareholders  $ 34,110,902  $ 552,921,127  $ 245,132,913  $ 57,852,452 
Net asset value per Common Share8,9,10  $ 11.54  $ 12.94  $ 10.41  $ 5.62 
     1 Consolidated Statement of Assets and Liabilities.         
     2 Investments at cost — unaffiliated  $ 35,519,186  $ 706,629,937  $ 478,378,291  $ 135,994,488 
     3 Investments at cost — affiliated  $ 2,780,000    3,151,730  $ 27,610,483 
     4 Foreign currency at cost    $ 9,142  $ 856,091  368 
     5 Proceeds from options written    $ 10,076,704     
     6 Preferred Shares par value per share      $ 0.001  $ 0.10 
     7 Preferred Shares outstanding      2,352  1,610 
     8 Common Shares par value per share  $ 0.01  $ 0.10  $ 0.001  $ 0.10 
     9 Common Shares outstanding  2,957,093  42,731,442  23,545,239  10,295,846 
   10 Common Shares authorized  200 Million  200 Million  Unlimited  200 Million 
See Notes to Financial Statements.         

SEMI-ANNUAL REPORT

APRIL 30, 2009

39


Statements of Assets and Liabilities (concluded)       
  BlackRock  BlackRock   
  Preferred and  Preferred  BlackRock 
  Equity  Income  Preferred 
  Advantage  Strategies  Opportunity 
  Trust  Fund, Inc.  Trust 
April 30, 2009 (Unaudited)  (BTZ)  (PSY)  (BPP) 
     Assets       
Investments at value — unaffiliated1  $ 618,588,730  $ 389,135,342   $ 171,587,591 
Investments at value — affiliated2  110,469,494  15,858,851  27,905,614 
Unrealized appreciation on swaps  21,307  18,940  9,470 
Cash  13,216    571 
Cash collateral for futures contracts  600,000  3,908,600   
Foreign currency at value3  44    475 
Interest receivable  10,620,528  10,307,554  4,166,941 
Swaps receivable  18,165  16,147  8,073 
Margin variation receivable    35,063  25,500 
Dividends receivable — unaffiliated  1,026,615  155,194  58,707 
Dividends receivable — affiliated  289  231  309 
Other assets  50,512  33,525  41,450 
Prepaid expenses  135,569  53,244  49,487 
Total assets  741,544,469  419,522,691  203,854,188 
     Liabilities       
Unrealized depreciation on swaps  685,720  385,061  192,531 
Options written at value4  2,655,965     
Reverse repurchase agreements  55,599,144  6,532,310  10,114,533 
Margin variation payable  87,405     
Interest expense payable  167,936  20,943  29,193 
Income dividends payable — Common Shares  805,068  268,872   
Investment advisory fees payable  373,142  202,401  109,324 
Swaps payable  39,704  24,058  12,029 
Officer's and Directors'/Trustees' fees payable  52,033  34,579  42,906 
Other affiliates payable  4,832  3,960  3,288 
Other accrued expenses payable  320,259  126,901  175,658 
Total liabilities  60,791,208  7,599,085  10,679,462 
     Preferred Shares at Redemption Value       
$25,000 per share liquidation preference, plus unpaid dividends5,6  231,034,617  172,990,679  70,427,967 
Net Assets Applicable to Common Shareholders  $ 449,718,644  $ 238,932,927  $ 122,746,759 
     Net Assets Applicable to Common Shareholders Consist of       
Paid—in capital  $1,162,690,058  $ 942,284,951  $ 427,796,553 
Undistributed (distributions in excess of) net investment income  (10,505,565)  3,560,550  926,651 
Accumulated net realized loss  (335,736,920)  (412,226,968)  (171,329,065) 
Net unrealized appreciation/depreciation  (366,728,929)  (294,685,606)  (134,647,380) 
Net Assets Applicable to Common Shareholders  $ 449,718,644  $ 238,932,927  $ 122,746,759 
Net asset value per Common Share7,8,9  $ 8.68  $ 5.87  $ 6.65 
     1 Investments at cost — unaffiliated  $ 985,982,951  $ 683,669,352  $ 306,206,665 
     2 Investments at cost — affiliated  $ 110,469,494  $ 15,858,851  $ 27,905,614 
     3 Foreign currency at cost  $ 44    $ 459 
     4 Premiums received from options written  $ 3,525,366     
     5 Preferred Shares par value per share  $ 0.001  $ 0.10  $ 0.001 
     6 Preferred Shares outstanding  9,240  6,914  2,817 
     7 Common Shares par value per share  $ 0.001  $ 0.10  $ 0.001 
     8 Common Shares outstanding  51,828,157  40,726,447  18,455,769 
     9 Common Shares authorized  Unlimited  200 Million  Unlimited 

See Notes to Financial Statements.

40 SEMI-ANNUAL REPORT

APRIL 30, 2009


Statements of Operations       
  BlackRock  BlackRock  BlackRock 
           Broad  Enhanced       Floating 
  Investment         Capital           Rate 
  Grade 2009  and Income       Income 
  Term Trust Inc.1  Fund, Inc.           Trust 
Six Months Ended April 30, 2009 (Unaudited)           (BCT)           (CII)         (BGT) 
     Investment Income       
Interest  $ 1,084,163  $ 1,162  $ 15,683,044 
Dividends    9,158,804   
Foreign withholding tax    (61,689)   
Income — affiliated  3,963  117,920  14,951 
Facility and other fees      236,640 
Total income  1,088,126  9,216,197  15,934,635 
     Expenses       
Investment advisory  94,465  2,238,504  1,355,134 
Borrowing costs      186,411 
Accounting services    74,173  26,466 
Professional  24,741  61,582  108,570 
Commissions for Preferred Shares      49,911 
Transfer agent  134  39,897  12,765 
Officer and Directors/Trustees  1,627  36,977  17,951 
Custodian    27,016  20,696 
Printing  6,314  11,795  45,241 
Registration  735  7,689  4,473 
Miscellaneous  15,572  30,582  54,155 
Total expenses excluding interest expense and excise tax  143,588  2,528,215  1,881,773 
Interest expense  5,834    957,677 
Excise tax  21,458     
Total expenses  170,880  2,528,215  2,839,450 
Less fees waived by advisor  (94,820)    (362,723) 
Less fees paid indirectly      (1,202) 
Total expenses after fees waived and paid indirectly  76,060  2,528,215  2,475,525 
Net investment income  1,012,066  6,687,982  13,459,110 
     Realized and Unrealized Gain (Loss)       
Net realized gain (loss) from:       
   Investments  (64,787)  (102,120,893)  (27,314,395) 
   Futures and swaps  (3,633,196)  (617,742)  (1,179,288) 
   Options written    39,752,145   
   Foreign currency      6,150,221 
  (3,697,983)  (62,986,490)  (22,343,462) 
Net change in unrealized appreciation/depreciation on:       
   Investments  234,258  62,613,115  24,208,128 
   Futures and swaps  (1,300,662)  (2,194,743)  398,524 
   Options written    1,287,486   
   Foreign currency    (736)  (7,654,500) 
   Unfunded corporate loans      115,405 
  (1,066,404)  61,705,122  17,067,557 
Total realized and unrealized loss  (4,764,387)  (1,281,368)  (5,275,905) 
     Dividends to Preferred Shareholders From       
Net investment income      (513,027) 
Net Increase (Decrease) in Net Assets Applicable to Common       
   Shareholders Resulting from Operations  $ (3,752,321)  $ 5,406,614  $ 7,670,178 
   1 Consolidated Statement of Operations.       

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

APRIL 30, 2009

41


Statements of Operations (concluded)         
  BlackRock       
  Preferred and  BlackRock  BlackRock       BlackRock 
  Corporate Income  Preferred and  Preferred Income       Preferred 
  Strategies  Equity Advantage  Strategies  Opportunity 
Six Months Ended April 30, 2009 (Unaudited)  Fund, Inc. (PSW)  Trust (BTZ)  Fund, Inc. (PSY)  Trust (BPP) 
     Investment Income         
Interest  $ 4,193,718  $ 22,724,607  $ 20,943,130  $ 10,060,215 
Dividends  1,223,319  10,126,655  6,181,475  2,889,040 
Income — affiliated  75,608  126,627  99,137  63,379 
Total income  5,492,645  32,977,889  27,223,742  13,012,634 
     Expenses         
Investment advisory  343,940  2,492,250  1,501,656  781,510 
Professional  49,668  76,181  57,451  51,771 
Commissions for preferred shares  43,510  223,155  209,806  84,914 
Transfer agent  24,693  21,284  75,885  17,498 
Accounting services  12,465  89,424  66,201  47,506 
Printing  10,113  92,196  41,232  40,278 
Custodian  6,317  20,513  17,977  10,677 
Registration  5,306  9,696  7,954  5,126 
Officer and Directors/Trustees  5,119  39,243  22,994  14,683 
Miscellaneous  28,957  74,154  57,784  36,049 
Total expenses excluding interest expense  530,088  3,138,096  2,058,940  1,090,012 
Interest expense  68,721  1,391,946  178,103  313,736 
Total expenses  598,809  4,530,042  2,237,043  1,403,748 
Less fees waived by advisor  (2,150)  (14,192)  (1,701)  (5,837) 
Less fees paid indirectly  (606)  (4)  (665)   
Total expenses after fees waived and paid indirectly  596,053  4,515,846  2,234,677  1,397,911 
Net investment income  4,896,592  28,462,043  24,989,065  11,614,723 
     Realized and Unrealized Gain (Loss)         
Net realized gain (loss) from:         
   Investments  (44,702,534)  (179,398,894)  (147,118,699)  (91,974,803) 
   Futures and swaps  (2,066,162)  (5,104,785)  (9,385,889)  (4,216,346) 
   Foreign currency  4,366  22,255  34,450  1,348 
   Options written    6,134,486     
  (46,764,330)  (178,346,938)  (156,470,138)  (96,189,801) 
Net change in unrealized appreciation/depreciation on:         
   Investments  29,041,941  86,888,893  73,495,194  58,035,000 
   Futures and swaps  607,761  4,276,885  1,798,797  1,027,644 
   Foreign currency  (4,272)  (158,263)  (32,957)  (1,043) 
   Options written    2,438,064     
  29,645,430  93,445,579  75,261,034  59,061,601 
Total realized and unrealized loss  (17,118,900)  (84,901,359)  (81,209,104)  (37,128,200) 
     Dividends to Preferred Shareholders From         
Net investment income  (461,748)  (2,028,125)  (2,320,269)  (455,588) 
Net Decrease in Net Assets Applicable to Common Shareholders Resulting from Operations  $ (12,684,056)  $ (58,467,441)  $ (58,540,308)  $ (25,969,065) 

See Notes to Financial Statements.

42 SEMI-ANNUAL REPORT

APRIL 30, 2009


Statements of Changes in Net Assets             
  BlackRock Broad Investment Grade  BlackRock Enhanced Capital 
  2009 Term Trust Inc. (BCT)1                      and Income Fund (CII)   
  Six Months  Year     Six Months  Period January 1,    Year 
  Ended  Ended  Ended  2008 to    Ended 
  April 30, 2009  October 31,  April 30, 2009  October 31,    December 31, 
Increase (Decrease) in Net Assets:  (Unaudited)  2008  (Unaudited)  2008    2007 
     Operations             
Net investment income  $ 1,012,066  $ 1,227,860  $ 6,687,982  $ 2,834,944  $ 3,828,423 
Net realized gain (loss)  (3,697,983)  (278,156)  (62,986,490)  5,942,502    24,442,607 
Net change in unrealized appreciation/depreciation  (1,066,404)  (916,689)  61,705,122  (83,432,417)    (17,410,396) 
Net increase (decrease) in net assets resulting from operations  (3,752,321)  33,015  5,406,614  (74,654,971)    10,860,634 
     Dividends and Distributions to Shareholders From             
Net investment income    (1,738,771)  (41,449,498)  (2,820,467)    (4,178,081) 
Net realized loss        (7,621,956)    (25,569,419) 
Tax return of capital        (7,292,188)     
Decrease in net assets resulting from dividends and distributions to shareholders    (1,738,771)  (41,449,498)  (17,734,611)    (29,747,500) 
     Capital Share Transactions             
Value of shares issued resulting from reorganization      420,968,153       
     Net Assets             
Total increase (decrease) in net assets  (3,752,321)  (1,705,756)  384,925,269  (92,389,582)    (18,886,866) 
Beginning of period  37,863,223  39,568,979  167,995,858  260,385,440    279,272,306 
End of period  $ 34,110,902  $ 37,863,223  $ 552,921,127  $ 167,995,858  $ 260,385,440 
End of period undistributed (distributions in excess of) net investment income  $ 5,560,434  $ 4,548,368  $ (34,555,889)  $ 205,627     
   1 Consolidated Statement of Changes in Net Assets.             
    BlackRock    BlackRock Preferred and Corporate 
  Floating Rate Income Trust (BGT)  Income Strategies Fund, Inc. (PSW) 
  Six Months  Period  Year  Six Months    Year 
  Ended  January 1, 2008  Ended  Ended    Ended 
  April 30, 2009  to October 31,  December 31,  April 30, 2009    October 31, 
Increase (Decrease) in Net Assets Applicable to Common Shareholders:  (Unaudited)  2008  2007  (Unaudited)    2008 
     Operations             
Net investment income  $ 13,459,110  $ 33,370,850  $ 47,903,772  $ 4,896,592  $ 17,531,692 
Net realized loss  (22,343,462)  (19,428,459)  (10,326,522)  (46,764,330)    (40,404,468) 
Net change in unrealized appreciation/depreciation  17,067,557  (136,762,427)  (22,345,656)  29,645,430    (83,863,786) 
Dividends to Preferred Shareholders from net investment income  (513,027)  (5,542,312)  (12,723,631)  (461,748)    (4,921,335) 
Net increase (decrease) in net assets applicable to Common Shareholders             
   resulting from operations  7,670,178  (128,362,348)  2,507,963  (12,684,056)    (111,657,897) 
     Dividends and Distributions to Common Shareholders From             
Net investment income  (27,127,153)  (24,133,870)  (26,833,571)  (5,917,238)    (12,521,666) 
Tax return of capital      (8,473,282)      (545,246) 
Decrease in net assets resulting from dividends and distributions             
   to Common Shareholders  (27,127,153)  (24,133,870)  (35,306,853)  (5,917,238)    (13,066,912) 
     Capital Share Transactions             
Reinvestment of common dividends      820,433  23,886     
     Net Assets Applicable to Common Shareholders             
Total decrease in net assets  (19,456,975)  (152,496,218)  (31,978,457)  (18,577,408)    (124,724,809) 
Beginning of period  264,589,888  417,086,106  449,064,563  76,429,860    201,154,669 
End of period  $ 245,132,913  $ 264,589,888  $ 417,086,106  $ 57,852,452  $ 76,429,860 
End of period undistributed (distributions in excess of) net investment income  $ (5,519,372)  $ 8,661,698  $ 219,332  $ (199,202)  $ 1,283,192 
See Notes to Financial Statements.             

SEMI-ANNUAL REPORT

APRIL 30, 2009

43


Statements of Changes in Net Assets           
  BlackRock Preferred and           BlackRock Preferred Income 
       Equity Advantage Trust (BTZ)  Strategies Fund, Inc. (PSY) 
     Six Months  Year  Six Months    Year 
  Ended  Ended  Ended    Ended 
  April 30, 2009     October 31,  April 30, 2009     October 31, 
Increase (Decrease) in Net Assets Applicable to Common Shareholders:     (Unaudited)  2008  (Unaudited)    2008 
     Operations           
Net investment income  $ 28,462,043  $ 68,908,426  $ 24,989,065  $ 70,160,283 
Net realized loss  (178,346,938)  (113,133,432)  (156,470,138)    (147,042,661) 
Net change in unrealized appreciation/depreciation  93,445,579  (408,221,553)  75,261,034    (333,625,419) 
Dividends to Preferred Shareholders from net investment income  (2,028,125)  (17,100,517)  (2,320,269)    (19,937,495) 
Net decrease in net assets applicable to Common Shareholders resulting from operations  (58,467,441)  (469,547,076)  (58,540,308)    (430,445,292) 
     Dividends and Distributions to Common Shareholders From           
Net investment income  (40,425,962)  (46,857,132)  (26,315,321)    (46,831,403) 
Tax return of capital    (43,518,226)      (9,002,427) 
Decrease in net assets resulting from dividends and distributions to Common Shareholders  (40,425,962)  (90,375,358)  (26,315,321)    (55,833,830) 
     Capital Share Transactions           
Reinvestment of common dividends      656,314     
     Net Assets Applicable to Common Shareholders           
Total decrease in net assets applicable to Common Shareholders  (98,893,403)  (559,922,434)  (84,199,315)    (486,279,122) 
Beginning of period  548,612,047  1,108,534,481  323,132,242    809,411,364 
End of period  $ 449,718,644  $ 548,612,047  $ 238,932,927  $ 323,132,242 
End of period undistributed (distributions in excess of) net investment income  $ (10,505,565)  $ 3,486,479  $ 3,560,550  $ 7,207,075 
      BlackRock Preferred     
                                  Opportunity Trust (BPP)   
       Six Months  Period    Year 
    Ended  January 1, 2008    Ended 
    April 30, 2009  to October 31,    December 31, 
Increase (Decrease) in Net Assets Applicable to Common Shareholders:    (Unaudited)  2008    2007 
     Operations           
Net investment income    $ 11,614,723  $ 27,233,861  $ 37,729,277 
Net realized loss    (96,189,801)  (47,985,932)    (24,690,221) 
Net change in unrealized appreciation/depreciation    59,061,601  (149,715,592)    (61,889,014) 
Dividends and distributions to Preferred Shareholders from:           
   Net investment income    (455,588)  (5,653,232)    (11,458,715) 
Net realized gain          (87,490) 
Net decrease in net assets applicable to Common Shareholders resulting from operations    (25,969,065)  (176,120,895)    (60,396,163) 
     Dividends and Distributions to Common Shareholders From           
Net investment income    (13,079,067)  (15,206,928)    (29,219,599) 
Net realized gain          (312,510) 
Tax return of capital      (5,480,035)    (2,820,986) 
Decrease in net assets resulting from dividends and distributions to Common Shareholders    (13,079,067)  (20,686,963)    (32,353,095) 
     Capital Share Transactions           
Reinvestment of common dividends    484,056  101,702    770,755 
     Net Assets Applicable to Common Shareholders           
Total decrease in net assets    (38,564,076)  (196,706,156)    (91,978,503) 
Beginning of period    161,310,835  358,016,991    449,995,494 
End of period    $ 122,746,759  $ 161,310,835  $ 358,016,991 
End of period undistributed net investment income    $ 926,651  $ 2,846,583  $ (2,571,328) 
See Notes to Financial Statements.           

44 SEMI-ANNUAL REPORT

APRIL 30, 2009


Statements of Cash Flows     
       BlackRock 
  BlackRock  Preferred and 
   Floating Rate         Equity 
       Income     Advantage 
Six Months Ended April 30, 2009 (Unaudited)  Trust, Inc. (BGT)     Trust (BTZ) 
     Cash Provided by Operating Activities     
Net increase (decrease) in net assets resulting from operations, excluding dividends to Preferred Shareholders  $ 8,183,205  $ (56,439,316) 
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by operating activities:     
   Decrease in receivables  1,487,518  9,371,241 
   Increase in prepaid expenses and other assets  (62,758)  (13,694) 
   Increase (decrease) in other liabilities  384,537  (4,203,629) 
   Net realized and unrealized loss  10,249,030  86,450,217 
   Amortization of premium and discount on investments  (949,688)  74,835 
Proceeds from sales and paydowns of long-term investments  108,857,166  255,013,236 
Purchases of long-term securities  (43,594,589)  (178,628,324) 
Net (purchases) sales of short-term investments  (1,650,981)  92,566,359 
Premiums received from options written    29,731,457 
Premiums paid on closing options written    (23,645,491) 
Net cash provided by operating activities  82,903,440  210,276,891 
     Cash Used for Financing Activities     
Cash receipts from borrowings  27,000,000   
Cash payments from borrowings  (96,150,000)   
Cash receipts from reverse repurchase agreements  1,209,375  75,433,383 
Cash payments from reverse repurchase agreements  (1,209,375)  (243,346,311) 
Collateral for futures    (600,000) 
Cash dividends paid to common shareholders  (27,129,733)  (40,515,297) 
Cash dividends paid to preferred shareholders  (522,803)  (2,091,589) 
Net cash used for financing activities  (96,802,536)  (211,119,814) 
     Cash Impact from Foreign Currency Fluctuations     
Cash impact from foreign currency fluctuations  194,890  3 
     Cash     
Net decrease in cash  (13,704,206)  (842,920) 
Cash at beginning of period  15,549,045  856,180 
Net cash at end of period  $ 1,844,839  $ 13,260 
     Cash Flow Information     
Cash paid during the period for interest  $ 1,025,034  $ 2,487,768 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

APRIL 30, 2009

45


Financial Highlights      BlackRock Broad Investment Grade Term Trust Inc. (BCT) 
  Six Months             
  Ended             
  April 30, 2009      Year Ended October 31,   
  (Unaudited)  2008    2007  2006  2005  2004 
     Per Share Operating Performance               
Net asset value, beginning of period  $ 12.80  $ 13.38  $ 13.79  $ 14.63  $ 15.98  $ 16.02 
Net investment income  0.341              0.421  0.48  0.65  0.80  0.61 
Net realized and unrealized gain (loss)  (1.60)  (0.41)    0.01  (0.05)  (0.87)  0.25 
Net increase (decrease) from investment operations  (1.26)  0.01    0.49  0.60  (0.07)  0.86 
Dividends and distributions from:               
Net investment income    (0.59)    (0.90)  (1.42)  (1.03)  (0.90) 
Net realized gain          (0.02)  (0.25)   
Total dividends and distributions    (0.59)    (0.90)  (1.44)  (1.28)  (0.90) 
Net asset value, end of period  $ 11.54  $ 12.80  $ 13.38  $ 13.79  $ 14.63  $ 15.98 
Market price, end of period  $ 11.19  $ 12.50  $ 15.15  $ 15.08  $ 15.86  $ 15.80 
     Total Investment Return2               
Based on net asset value  (9.84)%3  (0.07)%    2.95%  3.53%  (0.82)%  5.52% 
Based on market price  (10.48)%3  (13.82)%    6.60%  4.44%  8.74%  5.45% 
     Ratios to Average Net Assets               
Total expenses after fees waived and excluding interest expense and excise tax  0.30%4  0.27%    1.16%  1.14%  1.19%  1.11% 
Total expenses after fees waived  0.46%4  0.95%    1.86%  1.14%  2.37%  2.48% 
Total expenses  1.04%4  1.65%    1.86%  1.14%  2.37%  2.48% 
Net investment income  6.18%4  3.09%    3.50%  4.50%  5.23%  3.83% 
     Supplemental Data               
Net assets, end of period (000)  $ 34,111  $ 37,863  $ 39,569  $ 40,781  $ 43,276  $ 47,255 
Reverse repurchase agreements outstanding, end of period (000)  $ 2,273            $ 19,263 
Reverse repurchase agreements average daily balance (000)  $ 1,615          $ 7,865  $ 22,055 
Portfolio turnover  3%  114%    10%  8%  116%  20% 
Asset coverage, end of period per $1,000  $ 16,007            $ 3,453 

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. Total investment
returns exclude the effects of sales charges.
3 Aggregate total investment return.
4 Annualized.

See Notes to Financial Statements.

46 SEMI-ANNUAL REPORT

APRIL 30, 2009


Financial Highlights    BlackRock Enhanced Capital and Income Fund, Inc. (CII) 
    Period          Period 
  Six Months  January 1,          April 30, 
  Ended  2008 to          20041 to 
      Year Ended December 31,     
  April 30, 2009  October 31,          December 31, 
  (Unaudited)  2008  2007  2006    2005  2004 
     Per Share Operating Performance               
Net asset value, beginning of period  $ 13.78  $ 21.36  $ 22.91  $ 20.31  $ 20.76  $ 19.102 
Net investment income  0.173  0.233  0.313  0.373    0.463  0.46 
Net realized and unrealized gain (loss)  (0.04)  (6.36)  0.58  3.69    0.29  1.84 
Net increase (decrease) from investment operations  0.13  (6.13)  0.89  4.06    0.75  2.30 
Dividends and distributions from:               
Net investment income  (0.97)  (0.23)  (0.34)  (0.33)    (0.47)  (0.48) 
Net realized gain    (0.62)  (2.10)  (1.13)    (0.73)  (0.11) 
   Tax return of capital    (0.60)          (0.01) 
Total dividends and distributions  (0.97)  (1.45)  (2.44)  (1.46)    (1.20)  (0.60) 
Capital charges with respect to the issuance of shares              (0.04) 
Net asset value, end of period  $ 12.94  $ 13.78  $ 21.36  $ 22.91  $ 20.31  $ 20.76 
Market price, end of period  $ 11.38  $ 12.37  $ 20.06  $ 20.41  $ 17.21  $ 18.32 
     Total Investment Return4               
Based on net asset value  2.12%5  (29.46)%5  4.79%  21.70%    4.69%  12.30%5 
Based on market price  0.05%5  (32.58)%5  10.47%  27.95%    0.52%  (5.36)%5 
     Ratios to Average Net Assets               
Total expenses after fees waived and excluding interest expense  0.96%6  1.01%6  1.19%  1.42%    1.47%  1.20%6 
Total expenses after fees waived  0.96%6  1.10%6  1.96%  3.54%    2.96%  1.96%6 
Total expenses  0.96%6  1.10%6  1.96%  3.54%    2.96%  2.19%6 
Net investment income  2.54%6  1.46%6  1.36%  1.75%    2.28%  3.52%6 
     Supplemental Data               
Net assets, end of period (000)  $ 552,921  $ 167,996  $ 260,385  $ 279,272  $ 260,638  $ 266,345 
Loan outstanding, end of period (000)        $ 100,000  $ 109,000  $ 109,000 
Average loan outstanding during the period (000)      $ 38,788  $ 107,504  $ 109,000  $ 98,750 
Portfolio turnover  36%  45%  63%  38%    61%  20% 
Asset coverage, end of period per $1,000        $ 3,793  $ 3,391  $ 3,444 

1 Commencement of operations.
2 Net asset value, beginning of period, reflects a deduction of $0.90 per share sales charge from initial offering price of $20.00 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. Total investment
returns exclude the effects of sales charges.
5 Aggregate total investment return.
6 Annualized.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

APRIL 30, 2009

47


Financial Highlights      BlackRock Floating Rate Income Trust (BGT) 
    Period          Period 
  Six Months  January 1,          August 30, 
  Ended  2008 to          20041 to 
      Year Ended December 31,     
  April 30, 2009  October 31,          December 31, 
  (Unaudited)  2008  2007  2006    2005  2004 
     Per Share Operating Performance               
Net asset value, beginning of period  $ 11.24  $ 17.71  $ 19.11  $ 19.13  $ 19.21  $ 19.102 
Net investment income  0.583  1.423  2.03  1.99    1.64  0.33 
Net realized and unrealized gain (loss)  (0.24)  (6.62)  (1.39)  (0.06)    (0.17)  0.35 
Dividends and distributions to Preferred Shareholders from:               
   Net investment income  (0.02)  (0.24)  (0.54)  (0.48)    (0.33)  (0.04) 
   Net realized gain        (0.01)         (0.00)4   
Net increase (decrease) from investment operations  0.32  (5.44)  0.10  1.44    1.14  0.64 
Dividends and distributions to Common Shareholders from:               
   Net investment income  (1.15)  (1.03)  (1.14)  (1.44)    (1.22)  (0.37) 
   Net realized gain        (0.02)         (0.00)4   
   Tax return of capital      (0.36)         
Total dividends and distributions  (1.15)  (1.03)  (1.50)  (1.46)    (1.22)  (0.37) 
Capital charges with respect to issuance of:               
   Common Shares              (0.04) 
   Preferred Shares              (0.12) 
Total capital charges              (0.16) 
Net asset value, end of period  $ 10.41  $ 11.24  $ 17.71  $ 19.11  $ 19.13  $ 19.21 
Market price, end of period  $ 9.85  $ 9.63  $ 15.78  $ 19.27  $ 17.16  $ 18.63 
     Total Investment Return5               
Based on net asset value  5.03%6  (31.62)%6  0.98%  7.93%    6.63%  2.57%6 
Based on market price  16.00%6  (34.24)%6  (10.92)%  21.31%    (1.34)%  (5.00)%6 
     Ratios to Average Net Assets Applicable to Common Shareholders               
Total expenses after fees waived and paid indirectly and excluding               
   interest expense7  1.34%8  1.21%8  1.16%  1.19%    1.15%  0.97%8 
Total expenses after fees waived and paid indirectly7  2.18%8  1.89%8  1.33%  1.43%    1.23%  0.97%8 
Total expenses7  2.50%8  2.22%8  1.67%  1.75%    1.56%  1.26%8 
Net investment income7  11.87%8  10.56%8  10.83%  10.38%    8.52%  5.04%8 
Dividends to Preferred Shareholders  0.45%8  1.75%8  2.88%  2.51%    1.71%  0.62%8 
Net investment income to Common Shareholders  11.42%8  8.81%8  7.95%  7.87%    6.81%  4.42%8 
     Supplemental Data               
Net assets applicable to Common Shareholders, end of period (000)  $ 245,133  $ 264,590  $ 417,086  $ 449,065  $ 449,219  $ 451,126 
Preferred Shares outstanding at liquidation preference, end of period (000)  $ 58,800  $ 58,800  $ 243,450  $ 243,450  $ 243,450  $ 243,450 
Loan outstanding, end of period (000)  $ 54,000  $ 123,150           
Average loan outstanding during the period (000)  $ 78,005  $ 71,542           
Reverse repurchase agreements outstanding, end of period (000)        $ 26,108       
Reverse repurchase agreements average daily balance (000)  $ 419  $ 238  $ 10,524  $ 19,562  $ 10,722  $ 114 
Portfolio turnover  10%  25%  41%  50%    46%  11% 
Asset coverage per Preferred Share, end of period  $ 129,228  $ 137,505  $ 67,849  $ 73,810  $ 71,139  $ 71,330 

1 Commencement of operations.
2 Net asset value, beginning of period, reflects a deduction of $0.90 per share sales charge from initial offering price of $20.00 per share.
3 Based on average shares outstanding.
4 Amount is less than $(0.01) per share.
5 Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns.
Total investment returns exclude the effects of sales charges.
6 Aggregate total investment return.
7 Do not reflect the effect of dividends to Preferred Shareholders.
8 Annualized.

See Notes to Financial Statements.

48 SEMI-ANNUAL REPORT

APRIL 30, 2009


Financial Highlights  BlackRock Preferred and Corporate Income Strategies Fund, Inc. (PSW) 
  Six Months           
  Ended           
  April 30, 2009    Year Ended October 31,   
  (Unaudited)  2008  2007  2006  2005  2004 
     Per Share Operating Performance             
Net asset value, beginning of period  $ 7.43  $ 19.54  $ 22.25  $ 22.36  $ 23.69  $ 24.38 
Net investment income  0.481  1.701  2.011  2.141  2.16  2.19 
Net realized and unrealized gain (loss)  (1.68)  (12.06)  (2.41)  0.07  (1.09)  (0.70) 
Dividends to Preferred Shareholders from net investment income  (0.04)  (0.48)  (0.71)  (0.63)  (0.40)  (0.18) 
Net increase (decrease) from investment operations  (1.24)  (10.84)  (1.11)  1.58  0.67  1.31 
Dividends and distributions to Common Shareholders from:             
Net investment income  (0.57)  (1.22)  (1.18)  (1.69)  (2.00)  (2.00) 
Tax return of capital    (0.05)  (0.42)       
Total dividends and distributions  (0.57)  (1.27)  (1.60)  (1.69)  (2.00)  (2.00) 
Net asset value, end of period  $ 5.62  $ 7.43  $ 19.54  $ 22.25  $ 22.36  $ 23.69 
Market price, end of period  $ 5.55  $ 7.00  $ 17.29  $ 21.26  $ 21.03  $ 22.84 
     Total Investment Return2             
Based on net asset value  (15.87)%3  (58.09)%  (5.03)%  7.97%  3.25%  5.86% 
Based on market price  (11.81)%3  (55.38)%  (12.05)%  9.69%  0.73%  5.44% 
     Ratios to Average Net Assets Applicable to Common Shareholders             
Total expenses after fees waived and paid indirectly and excluding             
interest expense4  1.78%5  1.48%  1.29%  1.29%  1.26%  1.26% 
Total expenses after fees waived and paid indirectly4  2.01%5  2.00%  1.32%  1.29%  1.26%  1.26% 
Total expenses4  2.02%5  2.00%  1.32%  1.29%  1.26%  1.27% 
Net investment income4  16.51%5  10.79%  9.38%  9.70%  9.23%  9.04% 
Dividends to Preferred Shareholders  1.56%5  3.03%  3.29%  2.84%  1.71%  0.76% 
Net investment income to Common Shareholders  14.95%5  7.76%  6.09%  6.86%  7.52%  8.28% 
     Supplemental Data             
Net assets applicable to Common Shareholders, end of period (000)  $ 57,852  $ 76,430  $ 201,155  $ 228,734  $ 229,850  $ 243,492 
Preferred Shares outstanding at liquidation preference, end of period (000)  $ 40,250  $ 68,250  $ 136,500  $ 136,500  $ 136,500  $ 136,500 
Reverse repurchase agreements outstanding, end of period (000)  $ 5,061  $ 4,024  $ 590       
Reverse repurchase agreements average daily balance (000)  $ 5,453  $ 25,692  $ 2,690       
Portfolio turnover  20%  119%  88%  19%  25%  27% 
Asset coverage per Preferred Share, end of period  $ 60,936  $ 53,009  $ 61,8466  $ 66,9076  $ 67,1156  $ 69,6006 

1 Based on average shares outstanding.
2 Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns.
Total investment returns exclude the effects of sales charges.
3 Aggregate total investment return.
4 Do not reflect the effect of dividends to Preferred Shareholders.
5 Annualized.
6 Amounts have been recalculated to conform with current period presentation.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

APRIL 30, 2009

49


Financial Highlights  BlackRock Preferred and Equity Advantage Trust (BTZ) 
        Period 
  Six Months         Year  December 27, 
  Ended    Ended  20061 to 
                                                       April 30, 2009  October 31,  October 31, 
  (Unaudited)       2008           2007 
     Per Share Operating Performance         
Net asset value, beginning of period  $ 10.59  $ 21.39  $ 23.882 
Net investment income  0.553    1.333  1.25 
Net realized and unrealized loss  (1.64)    (10.06)  (1.86) 
Dividends to Preferred Shareholders from net investment income  (0.04)    (0.33)  (0.31) 
Net decrease from investment operations  (1.13)    (9.06)  (0.92) 
Dividends and distributions to Common Shareholders from:         
   Net investment income  (0.78)    (0.90)  (0.93) 
   Tax return of capital      (0.84)  (0.47) 
Total dividends and distributions  (0.78)    (1.74)  (1.40) 
Capital charges with respect to issuance of:         
   Common Shares        (0.04) 
   Preferred Shares        (0.13) 
Total capital charges        (0.17) 
Net asset value, end of period  $ 8.68  $ 10.59  $ 21.39 
Market price, end of period  $ 8.05  $ 9.36  $ 18.65 
     Total Investment Return4         
Based on net asset value  (8.73)%5    (44.27)%  (4.42)%5 
Based on market price  (4.23)%5    (43.51)%  (20.34)%5 
     Ratios to Average Net Assets Applicable to Common Shareholders         
Total expenses after fees waived and paid indirectly and excluding interest expense6  1.39%7    1.21%  1.04%7 
Total expenses after fees waived and paid indirectly6  2.01%7    1.65%  1.88%7 
Total expenses6  2.02%7    1.65%  1.90%7 
Net investment income6  12.69%7    7.63%  6.50%7 
Dividends to Preferred Shareholders  0.90%7    1.89%  1.64%7 
Net investment income to Common Shareholders  11.79%7    5.74%  4.86%7 
     Supplemental Data         
Net assets applicable to Common Shareholders, end of period (000)  $ 449,719  $ 548,612  $ 1,108,534 
Preferred Shares outstanding at liquidation preference, end of period (000)  $ 231,000  $ 231,000  $ 462,000 
Reverse repurchase agreements outstanding, end of period (000)  $ 55,599  $ 223,512  $ 88,291 
Reverse repurchase agreements average daily balance (000)  $ 93,409  $ 107,377  $ 96,468 
Portfolio turnover  28%    126%  35% 
Asset coverage per Preferred Share, end of period  $ 73,675  $ 84,384  $ 89,737 

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 value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns.
Total investment returns exclude the effects of sales charges.
5 Aggregate total investment return.
6 Do not reflect the effect of dividends to Preferred Shareholders.
7 Annualized.

See Notes to Financial Statements.

50 SEMI-ANNUAL REPORT

APRIL 30, 2009


Financial Highlights      BlackRock Preferred Income Strategies Fund, Inc. (PSY) 
  Six Months           
  Ended           
  April 30, 2009    Year Ended October 31,   
  (Unaudited)  2008  2007  2006  2005  2004 
     Per Share Operating Performance             
Net asset value, beginning of period  $ 7.96  $ 19.93  $ 22.36  $ 22.26  $ 23.48  $ 24.53 
Net investment income1  0.61  1.73  2.02  2.03  2.09  2.14 
Net realized and unrealized gain (loss)  (1.99)  (11.84)  (2.35)  0.32  (0.91)  (0.78) 
Dividends and distributions to Preferred Shareholders from:             
   Net investment income  (0.06)  (0.49)  (0.73)  (0.65)  (0.40)  (0.18) 
   Net realized gain            (0.01) 
Net increase (decrease) from investment operations  (1.44)  (10.60)  (1.06)  1.70  0.78  1.17 
Dividends and distributions to Common Shareholders from:             
   Net investment income  (0.65)  (1.15)  (1.16)  (1.51)  (2.00)  (2.13) 
   Net realized gain            (0.09) 
   Tax return of capital    (0.22)  (0.21)  (0.09)     
Total dividends and distributions  (0.65)  (1.37)  (1.37)  (1.60)  (2.00)  (2.22) 
Net asset value, end of period  $ 5.87  $ 7.96  $ 19.93  $ 22.36  $ 22.26  $ 23.48 
Market price, end of period  $ 6.05  $ 8.10  $ 16.94  $ 20.12  $ 21.20  $ 22.87 
     Total Investment Return2             
Based on net asset value  (17.88)%3  (55.71)%  (4.35)%  8.77%  3.73%  5.22% 
Based on market price  (16.83)%3  (46.97)%  (9.65)%  2.77%  1.43%  6.12% 
     Ratios to Average Net Assets Applicable to Common Shareholders             
Total expenses after fees waived and paid indirectly and excluding             
   interest expense4  1.65%5  1.40%  1.23%  1.23%  1.20%  1.19% 
Total expenses after fees waived and paid indirectly4  1.79%5  1.90%  1.27%  1.23%  1.20%  1.19% 
Total expenses4  1.79%5  1.90%  1.27%  1.23%  1.20%  1.19% 
Net investment income4  20.01%5  10.71%  9.29%  9.26%  8.96%  8.93% 
Dividends to Preferred Shareholders  1.86%5  3.04%  3.34%  2.96%  1.73%  0.74% 
Net investment income to Common Shareholders  18.15%5  7.67%  5.95%  6.30%  7.23%  8.19% 
     Supplemental Data             
Net assets applicable to Common Shareholders, end of period (000)  $ 238,933  $ 323,132  $ 809,411  $ 907,897  $ 903,601  $ 952,973 
Preferred Shares outstanding at liquidation preference, end of period (000)  $ 172,850  $ 275,000  $ 550,000  $ 550,000  $ 550,000  $ 550,000 
Reverse repurchase agreements outstanding, end of period (000)  6,532  $ 54,369         
Reverse repurchase agreements average daily balance (000)  23,965  $ 94,908  $ 14,375       
Portfolio turnover  15%  120%  81%  18%  28%  23% 
Asset coverage per Preferred Share, end of period  $ 59,578  $ 54,408  $ 61,8176  $ 66,2946  $ 66,0776  $ 68,3196 

1 Based on average shares outstanding.
2 Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns.
Total investment returns exclude the effects of sales charges.
3 Aggregate total investment return.
4 Do not reflect the effect of dividends to Preferred Shareholders.
5 Annualized.
6 Amounts have been recalculated to conform with current period presentation.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

APRIL 30, 2009

51


Financial Highlights            BlackRock Preferred Opportunity Trust (BPP) 
      Period            Period 
  Six Months  January 1,            February 28, 
  Ended    2008 to            20031 to 
            Year Ended December 31,     
  April 30, 2009  October 31,            December 31, 
  (Unaudited)    2008    2007  2006  2005  2004  2003 
     Per Share Operating Performance                   
Net asset value, beginning of period  $ 8.77  $ 19.47  $ 24.52  $ 24.43  $ 25.88  $ 25.58  $ 23.882 
Net investment income  0.633    1.483    2.05  2.05  2.11  2.22  1.72 
Net realized and unrealized gain (loss)  (2.02)    (10.74)    (4.72)  0.62  (0.82)  0.33  1.93 
Dividends and distributions to Preferred Shareholders from:                   
   Net investment income  (0.02)    (0.31)    (0.62)  (0.46)  (0.26)  (0.16)  (0.10) 
   Net realized gain            (0.12)  (0.13)  (0.02)   
Net increase (decrease) from investment operations  (1.41)    (9.57)    (3.29)  2.09  0.90  2.37  3.55 
Dividends and distributions to Common Shareholders from:                   
   Net investment income  (0.71)    (0.83)    (1.59)  (1.58)  (1.74)  (2.00)  (1.66) 
   Net realized gain          (0.02)  (0.42)  (0.61)  (0.07)   
   Tax return of capital      (0.30)    (0.15)         
Total dividends and distributions  (0.71)    (1.13)    (1.76)  (2.00)  (2.35)  (2.07)  (1.66) 
Capital charges with repect to:                   
   Common shares                  (0.05) 
   Preferred shares                  (0.14) 
Total capital charges                  (0.19) 
Net asset value, end of period  $ 6.65  $ 8.77  $ 19.47  $ 24.52  $ 24.43  $ 25.88  $ 25.58 
Market price, end of period  $ 7.08  $ 8.51  $ 17.31  $ 26.31  $ 24.20  $ 25.39  $ 24.83 
     Total Investment Return4                   
Based on net asset value  (15.77)%5  (51.22)%5  (13.86)%  8.89%  3.81%  10.15%  14.65%5 
Based on market price  (7.59)%5  (46.76)%5  (28.62)%  17.98%  4.83%  11.01%  6.28%5 
     Ratios to Average Net Assets Applicable to Common Shareholders                 
Total expenses after fees waived and paid indirectly and                   
   excluding interest expense6  1.70%7  1.39%7  1.24%  1.25%  1.22%  1.19%  1.16%7 
Total expenses after fees waived and paid indirectly6  2.19%7  1.96%7  1.45%  1.62%  1.51%  1.44%  1.52%7 
Total expenses6  2.20%7  1.96%7  1.46%  1.62%  1.51%  1.44%  1.52%7 
Net investment income6  18.19%7  10.53%7  8.90%  8.46%  8.37%  8.66%  8.35%7 
Dividends to Preferred Shareholders  0.72%7  2.19%7  2.70%  1.89%  1.27%  0.62%  0.48%7 
Net investment income to Common Shareholders  17.47%7  8.34%7  6.20%  6.58%  7.10%  8.04%  7.87%7 
     Supplemental Data                   
Net assets applicable to Common Shareholders,                   
   end of period (000)  $ 122,747  $ 161,311  $ 358,017  $ 449,995  $ 447,190  $ 473,809  $ 468,243 
Preferred Shares outstanding at liquidation preference,                   
   end of period (000)  $ 70,425  $ 110,400  $ 220,800  $ 220,800  $ 220,800  $ 220,800  $ 220,841 
Reverse repurchase agreements outstanding,                   
   end of period (000)  $ 10,115  $ 44,281            $ 3,486 
Reverse repurchase agreements average daily balance (000)  $ 21,161  $ 51,995  $ 903  $ 1,303  $ 2,904  $ 782  $ 19,822 
Portfolio turnover  15%    121%    97%  91%  77%  88%  98% 
Asset coverage per Preferred Share, end of period  $ 68,575  $ 61,540  $ 65,554  $ 75,965  $ 75,642  $ 78,650  $ 78,021 

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 value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns.
Total investment returns exclude the effects of sales charges.
5 Aggregate total investment return.
6 Do not reflect the effect of dividends to Preferred Shareholders.
7 Annualized.

See Notes to Financial Statements.

52 SEMI-ANNUAL REPORT

APRIL 30, 2009


Notes to Financial Statements (Unaudited)

1. Organization and Significant Accounting Policies

BlackRock Broad Investment Grade 2009 Term Trust Inc. (“Broad Investment
Grade”), BlackRock Enhanced Capital and Income Fund, Inc. (“Capital and
Income”), BlackRock Preferred and Corporate Income Strategies Fund, Inc.
(“Preferred and Corporate”) and BlackRock Preferred Income Strategies
Fund, Inc. (“Preferred Income”) are registered as diversified, closed-end
management investment companies under the Investment Company Act of
1940, as amended (the “1940 Act”). BlackRock Floating Rate Income Trust
(formerly BlackRock Global Floating Rate Income Trust ) (“Floating Rate”),
BlackRock Preferred and Equity Advantage Trust (“Preferred and Equity”)
and BlackRock Preferred Opportunity Trust (“Preferred Opportunity”) are
registered as non-diversified, closed-end management investment compa-
nies under the 1940 Act. Broad Investment Grade, Capital and Income,
Preferred and Corporate and Preferred Income are organized as Maryland
corporations. Floating Rate, Preferred and Equity and Preferred Opportunity
are organized as Delaware statutory trusts. Broad Investment Grade, Capital
and Income, Floating Rate, Preferred and Corporate, Preferred and Equity,
Preferred Income and Preferred Opportunity are individually referred to as
a “Fund” and collectively as the “Funds.” On November 29, 2007, Broad
Investment Grade’s Board of Directors approved a Plan of Liquidation and
Dissolution, which provided Broad Investment Grade would liquidate sub-
stantially all of its assets on or about the close of business on December
31, 2009. The Funds’ financial statements are prepared in conformity with
accounting principles generally accepted in the United States of America,
which may require the use of management accruals and estimates. Actual
results may differ from these estimates. The Funds determine and make
available for publication the net asset value of their Common Shares on a
daily basis.

On December 3, 1999, Broad Investment Grade transferred a substantial
portion of its total assets to a 100% owned registered investment company
subsidiary called BCT Subsidiary, Inc. The financial statements and these
notes to the financial statements for Broad Investment Grade are consoli-
dated and include the operations of both Broad Investment Grade and its
wholly owned subsidiary after elimination of all intercompany transactions
and balances.

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

Valuation of Investments: The Funds value their bond investments on the
basis of last available bid prices or current market quotations provided by
dealers or pricing services selected under the supervision of the Fund’s
Board of Directors/Trustees (the “Board”). Floating rate loan interests are
valued at the mean between the last available 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 based on valuation technology commonly employed in the
market for such investments. Financial futures contracts traded on exchanges
are valued at their last sale price. TBA commitments are valued at the cur-
rent market value of the underlying securities. Swap agreements are valued

utilizing quotes received daily by the Funds’ pricing service or through bro-
kers, which are derived using daily swap curves and trades of underlying
securities. Short-term securities with maturities less than 60 days may be
valued at amortized cost, which approximates market value. The fair value
of asset-backed and mortgage-backed securities are estimated based on
models that consider the estimated cash flows of each tranche of the
entity, establishes a benchmark yield and develops an estimated tranche
specific spread to the benchmark yield based on the unique attributes of
the tranche. Investments in open-end investment companies are valued at
net asset value each business day. The Funds value their investments in
BlackRock Liquidity Series, LLC Cash Sweep Series at fair value, which is
ordinarily based upon their pro-rata ownership in the net assets of the
underlying fund.

Equity investments traded on a recognized securities exchange or the
NASDAQ Global Market System 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 price. If no bid 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.

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 options 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 securities.

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, the investment will be valued by a method
approved by the Board as reflecting fair value (“Fair Value Assets”). When
determining the price for Fair Value Assets, the investment advisor and/or
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 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 securities is substantially completed each
day at various times prior to the close of business on the New York Stock
Exchange (“NYSE”). The values of such securities used in computing the
net assets of each Fund are determined as of such times. Foreign currency
exchange rates will be determined as of the close of business on the NYSE.
Occasionally, events affecting the values of such securities and such
exchange rates may occur between the times at which they are determined
and the close of business on the NYSE that may not be reflected in the

SEMI-ANNUAL REPORT

APRIL 30, 2009

53


Notes to Financial Statements (continued)

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 securities,
those securities may be valued at their fair value as determined in good
faith by the Board or by the investment advisor using a pricing service
and/or procedures approved by the Board. Foreign currency exchange con-
tracts are valued at the mean between the bid and ask prices. Interpolated
values are derived when the settlement date of the contract is an interim
date for which quotations are not available.

Derivative Financial Instruments: Each Fund may engage in various port-
folio investment strategies both to increase the returns of the Funds and
to hedge, or protect, their exposure to interest rate movements and move-
ments in the securities markets. Losses may arise if the value of the con-
tract decreases due to an unfavorable change in the price of the underlying
security, or if the counterparty does not perform under the contract.

Financial futures contracts — Each Fund may purchase or sell financial
futures contracts and options on such financial futures contracts. Futures
contracts are contracts for delayed delivery of securities at a specific
future date and at a specific price or yield. Pursuant to the contract,
the Fund agrees 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 margin variation and are recorded by the Fund
as unrealized gains or losses. When the contract is closed, the Fund
records 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 futures transactions involves the risk of
an imperfect correlation in the movements in the price of futures con-
tracts, interest rates and the underlying assets, and the possible inabil-
ity of counterparties to meet the terms of their contracts.

Forward currency contracts — A forward currency contract is an agree-
ment between two parties to buy and sell a currency at a set exchange
rate on a future date. Each Fund may enter into forward currency con-
tracts as a hedge against either specific transactions or portfolio posi-
tions. Forward currency contracts, when used by the Fund, help to
manage the overall exposure to the foreign currency backing some of
the investments held by the Fund. The contract is marked-to-market
daily and the change in market value is recorded by the Fund as an
unrealized gain or loss. When the contract is closed, the Fund 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
forward currency contracts involves the risk that counterparties may not
meet the terms of the agreement and market risk of unanticipated
movements in the value of a foreign currency relative to the US dollar.

Options — Each Fund may purchase and write call and put options. A
call option gives the purchaser of the option the right (but not the obli-
gation) to buy, and obligates the seller to sell (when the option is exer-
cised), the underlying position at the exercise 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 position at the
exercise price at any time or at a specified time during the option period.

When a Fund purchases (writes) an option, an amount equal to the
premium paid (received) by the Fund is reflected as an asset and an
equivalent liability. The amount of the asset (liability) is subsequently
marked-to-market to reflect the current market value of the option writ-
ten. When a security 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 security acquired or deducted from (or added to)
the proceeds of the security sold. When an option expires (or the Funds
enter 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
premium received or paid). When the Fund writes a call option, such
option is “covered,” meaning that the Fund holds the underlying security
subject to being called by the option counterparty, or cash in an
amount sufficient to cover the obligation. When the Fund writes 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 market risk of
an unfavorable change in the price of the underlying security or index.
Exercise of a written option could result in the Funds purchasing a
security at a price different from the current market value. The Funds
may execute transactions in both listed and over-the-counter options.
Transactions in certain over-the-counter options may expose the Funds
to the risk of default by the counterparty to the transaction.

Swaps — Each Fund may enter into swap agreements, in which the
Fund and a counterparty agree to make periodic net payments on a
specified notional amount. These periodic payments received or made
by the Funds are recorded in the accompanying Statements of
Operations as realized gains or losses, respectively. Swaps are marked-
to-market daily and changes in value are recorded as unrealized appre-
ciation (depreciation). When the swap is terminated, the Funds will
record a realized gain or loss equal to the difference between the pro-
ceeds from (or cost of) the closing transaction and the Funds’ basis in
the contract, if any. Swap transactions involve, to varying degrees, ele-
ments of credit and market risk in excess of the amounts recognized on
the Statements of Assets and Liabilities. Such risks involve the possibil-
ity 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 agree-
ments, and that there may be unfavorable changes in interest rates
and/or market values associated with these transactions.

Credit default swaps — Each Fund may enter into credit default swaps for
investment purposes or to manage its credit risk. The Funds enter into
credit default agreements to provide a measure of protection against the
default of an issuer (as buyer protection) and/or gain credit exposure to
an issuer to which it is not otherwise exposed (as seller of protection).
Credit default swaps are agreements in which one party pays fixed peri-
odic payments to a counterparty in consideration for a guarantee from
the counterparty to make a specific payment should a negative credit
event take place (e.g. bankruptcy, failure to pay, obligation accelerators,
repudiation, moratorium or restructuring). The Funds may either buy or sell

54 SEMI-ANNUAL REPORT

APRIL 30, 2009


Notes to Financial Statements (continued)

(write) credit default swaps. As a buyer, a Fund 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 of an 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 com-
prising of an index. As a seller (writer), a Fund 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 of an index or
pay a net settlement of cash equal to the notional amount of the sweep
less the recovery value of the security or underlying securities comprising
of an index. In the event of default by the counterparty, a Fund may
recover amounts paid under the agreement either partially or in total by
offsetting any payables and/or receivables with collateral held or pledged.

Interest rate swaps — Each Fund may enter into interest rate swaps for
investment purposes or to manage its interest rate risk. Interest rate
swaps are agreements in which one party pays a floating rate of interest
on a notional principal amount and receives a fixed rate of interest on
the same notional principal amount for a specified period of time.
Alternatively, a party may pay a fixed rate and receive a floating rate. In
more complex swaps, the notional principal amount may decline (or
amortize) over time.

Total return swaps — Each Fund may enter into interest rate swaps for
investment purposes or to manage its interest rate risk. Total return
swaps are agreements in which one party commits to pay interest in
exchange for a market-linked return. To the extent the total return of the
security or index underlying the transaction exceeds or falls short of the
offsetting interest rate obligation, the Fund will receive a payment from
or make a payment to the counterparty.

Foreign Currency Transactions: Foreign currency amounts are translated
into United States dollars on the following basis: (i) market value of invest-
ment securities, assets and liabilities at the current rate of exchange; and
(ii) purchases and sales of investment securities, income and expenses at
the rates of exchange prevailing on the respective dates of such transactions.

The Funds report foreign currency related transactions as components of
realized gains for financial reporting purposes, whereas such components
are treated as ordinary income for federal income tax purposes.

Asset-Backed and Mortgage-Backed Securities: Certain 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 dif-
fer 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 short-
ening the maturity of the security. If a Fund has 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.

Certain Funds may purchase in the secondary market certain mortgage
pass through securities. There are a number of important differences
among the agencies and instrumentalities of the U.S. Government that
issue mortgage-related securities and among the securities that they issue.
For example, mortgage-related securities guaranteed by the Government
National Mortgage Association (“GNMA”) are guaranteed as to the timely
payment of principal and interest by GNMA and such guarantee is backed
by the full faith and credit of the United States. However, mortgage-related
securities issued by the Federal National Mortgage Association (“FNMA”)
include FNMA guaranteed Mortgage Pass-Through Certificates, which are
solely the obligations of the FNMA, are not backed by or entitled to the full
faith and credit of the United States and are supported by the right of the
issuer to borrow from the Treasury.

Certain Funds invest a significant portion of its assets in securities backed
by commercial or residential mortgage loans or in issuers that hold mortgage
and other asset-backed securities. Please see the Schedules of Investments
for these securities. Changes in economic conditions, including delinquen-
cies and/or defaults on assets underlying these securities, can affect the
value, income and/or liquidity of such positions.

Collateralized Mortgage Obligations: Certain Funds may invest in multiple
class pass-through securities, including collateralized mortgage obligations
(“CMOs”). These multiple class securities may be issued by GNMA, US
government agencies or instrumentalities or by trusts formed by private
originators of, or investors in, mortgage loans. In general, CMOs are debt
obligations of a legal entity that are collateralized by, and multiple class
pass-through securities represent direct ownership interests in, a pool of
residential or commercial mortgage loans or mortgage pass-through securi-
ties (the “Mortgage Assets”), the payments on which are used to make pay-
ments on the CMOs or multiple pass-through securities. Classes of CMOs
include interest only (“IOs”), principal only (“POs”), planned amortization
classes (“PACs”) and targeted amortization classes (“TACs”). IOs and POs
are stripped mortgage-backed securities representing interests in a pool
of mortgages, the cash flow from which has been separated into interest
and principal components. IOs receive the interest portion of the cash flow
while POs receive the principal portion. IOs and POs can be extremely
volatile in response to changes in interest rates. As interest rates rise and
fall, the value of IOs tends to move in the same direction as interest rates.
POs perform best when prepayments on the underlying mortgages rise
since this increases the rate at which the investment is returned and the
yield to maturity on the PO. When payments on mortgages underlying a PO
are slower than anticipated, the life of the PO is lengthened and the yield
to maturity is reduced. If the underlying mortgage assets experience greater
than anticipated pre-payments of principal, the Funds may not fully recoup
its initial investment in IOs.

SEMI-ANNUAL REPORT

APRIL 30, 2009

55


Notes to Financial Statements (continued)

Stripped Mortgage-Backed Securities: The Funds may invest in stripped
mortgage-backed securities issued by the U.S. government, its agencies
and instrumentalities. Stripped mortgage-backed securities are usually
structured with two classes that receive different proportions of the interest
and principal distributions on a pool of mortgage assets. The Funds also
may invest in stripped mortgage-backed securities that are privately issued.

Capital Trusts and Trust Preferreds: 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 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 can have a rating that is
slightly below that of the issuing company’s senior debt securities.

Preferred Stock: Certain Funds may invest in preferred stocks. Preferred
stock has a preference over common stocks 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 convert-
ible preferred stock generally also reflects some element of conversion
value. Because preferred stock is junior to debt securities and other obli-
gations 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 Loans: Certain Funds may invest in floating rate loans, which
are generally non-investment grade, made by banks, other financial institu-
tions and privately and publicly offered corporations. Floating rate loans
are senior in the debt structure of a corporation. Floating rate loans gener-
ally pay interest at rates that are periodically determined by reference to
a base lending rate plus a premium. The base lending rates are generally
(i) the lending rate offered by one or more European banks, such as LIBOR
(London InterBank Offered Rate), (ii) the prime rate offered by one or more
U.S. banks or (iii) the certificate of deposit rate. The Funds consider these
investments to be investments in debt securities for purposes of their
investment policies.

A Fund earns and/or pays facility and other fees on floating rate loans.
Other fees earned/paid include commitment, amendment, consent, com-
missions and prepayment penalty fees. Facility, amendment and consent
fees are typically amortized as premium and/or accreted as discount over
the term of the loan. Commitment, commission and various other fees are

recorded as income. Prepayment penalty fees are recorded on the accrual
basis. When a Fund buys a floating rate loan it may receive a facility fee
and when it sells a floating rate loan it may pay a facility fee. On an ongo-
ing basis, a Fund may receive a commitment fee based on the undrawn
portion of the underlying line of credit portion of a floating rate loan. In cer-
tain circumstances, a Fund may receive a prepayment penalty fee upon the
prepayment of a floating rate loan by a borrower. Other fees received by a
Fund may include covenant waiver fees and covenant modification fees.

A Fund 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 loans are usually freely callable at the issuer’s option.
The Funds may invest in such loans in the form of participations in loans
(“Participations”) and 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 relating to the loans, nor any rights of offset against the bor-
rower, and a Fund may not benefit directly from any collateral supporting
the loan in which it has purchased the Participation.

As a result, a Fund will assume the credit risk of both the borrower and the
lender that is selling the Participation. The Fund’s investments in loan par-
ticipation interests involve the risk of insolvency of the financial intermedi-
aries who are parties to the transactions. In the event of the insolvency of
the lender selling the Participation, a Fund may be treated as general credi-
tors of the lender and may not benefit from any offset between the lender
and the borrower.

Reverse Repurchase Agreements: The Funds may enter into reverse repur-
chase agreements with qualified third party broker-dealers. In a reverse
repurchase agreement, each Fund sells securities to a bank or broker-
dealer and agrees to repurchase the securities at a mutually agreed upon
date and price. Interest on the value of the reverse repurchase agreements
issued and outstanding is based upon 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 each Fund is obligated
to repurchase under the agreement may decline below the repurchase
price. In the event the buyer of securities under a reverse repurchase agree-
ment files for bankruptcy or becomes insolvent, each Fund’s use of the
proceeds of the agreement may be restricted pending determination by
the other party, or its trustee or receiver, whether to enforce each Fund’s
obligation to repurchase the securities.

56 SEMI-ANNUAL REPORT

APRIL 30, 2009


Notes to Financial Statements (continued)

Defensive Positions: Each of Preferred and Corporate, Preferred Income,
Preferred and Equity and Preferred Opportunity may vary its investment
policies for temporary defensive purposes during periods in which the
investment advisor believes that conditions in the securities markets or
other economic, financial or political conditions warrant. Under such condi-
tions, the Funds for temporary defensive purposes may invest up to 100%
of its total assets in, as applicable and described in each Fund’s prospec-
tus, U.S. government securities, certificates of deposit, repurchase agree-
ments that involve purchases of debt securities, bankers’ acceptances and
other bank obligations, commercial paper, money market funds and/or
other debt securities deemed by the investment advisor to be consistent
with a defensive posture, or may hold its assets in cash.

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.

Segregation and Collateralization: In cases in which the 1940 Act and the
interpretive positions of the Securities and Exchange Commission (“SEC”)
require that each Fund segregates assets in connection with certain invest-
ments (e.g., dollar rolls, TBA’s beyond normal settlement, options, swaps,
written swaptions, written options, forward foreign currency contracts, short
sales or financial futures contracts) or certain borrowings (e.g., reverse
repurchase agreements), each Fund will, consistent with certain interpretive
letters issued by the SEC, designate on its books and records cash or other
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, the Funds may also be required to deliver or deposit
securities as collateral for certain investments (e.g., financial futures con-
tracts, reverse repurchase agreements, swaps and written options).

Investment Transactions and Investment Income: Investment transactions
are recorded on the dates the transactions are entered into (the trade
dates). Realized gains and losses on security 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 have determined
the ex-dividend date. Interest income is recognized on the accrual basis.
The Funds amortize all premiums and discounts on debt securities.
Consent fees are compensation for agreeing to changes in the terms of
debt instruments and are included in interest income on the Statements
of Operations.

Dividends and Distributions: Dividends from net investment income are
declared and paid monthly (quarterly for Capital and Income). Effective
November 2008, Broad Investment Grade discontinued its monthly distri-
bution in an effort to meet its termination target of $15. 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.

Income Taxes: It is each Fund’s policy to comply with the requirements of
the Internal Revenue Code 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. Under the applicable
foreign tax laws, a withholding tax may be imposed on interest, dividends
and capital gains at various rates. As part of a tax planning strategy, Broad
Investment Grade has retained a portion of its taxable income and will pay
excise tax on the undistributed amounts.

Each Fund files US federal and various state and local tax returns. No
income tax returns are currently under examination. The statute of limita-
tions on Broad Investment Grade’s, Preferred and Corporate’s, Preferred
and Equity’s and Preferred Income’s US federal tax returns remains open
for the four years ended October 31, 2008. The statute of limitations on
Capital and Income’s, Floating Rate’s and Preferred Opportunity’s US fed-
eral tax returns remains open for the three years ended December 31,
2007 and the period ended October 31, 2008. The statute of limitations
on each Fund’s state and local tax returns may remain open for an addi-
tional year depending upon the jurisdiction.

Recent Accounting Pronouncement: In March 2008, Statement of
Financial Accounting Standards No. 161, “Disclosures about Derivative
Instruments and Hedging Activities — an amendment of FASB Statement
No. 133” (“FAS 161”), was issued. FAS 161 is intended to improve finan-
cial reporting for derivative instruments by requiring enhanced disclosure
that enables investors to understand how and why an entity uses deriva-
tives, how derivatives are accounted for and how derivative instruments
affect an entity’s results of operations and financial position. FAS 161 is
effective for financial statements issued for fiscal years and interim periods
beginning after November 15, 2008.The impact on the Funds’ financial
statement disclosures, if any, is currently being assessed.

Deferred Compensation and BlackRock Closed-End Share Equivalent
Investment Plan: Under the deferred compensation plan approved by each
Fund’s Board, non-interested Directors or Trustees (“Independent Directors
or Trustees”) defer a portion of their annual complex-wide compensation.
Deferred amounts earn an approximate return as though equivalent dollar
amounts have been invested in common shares of other certain BlackRock
Closed-End Funds selected by the Independent Directors or Trustees. This
has approximately the same economic effect for the Independent Directors
or Trustees as if the Independent Directors or Trustees had invested the
deferred amounts directly in other certain 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. Each Fund may, however, elect to invest in common shares of other
certain BlackRock Closed-End Funds selected by the Independent Directors
or Trustees in order to match its deferred compensation obligations.
Investments to cover each Fund’s deferred compensation liability are
included in other assets on the Statements of Assets and Liabilities.
Dividends and distributions from the BlackRock Closed-End Fund invest-
ments under the plan are included in income — affiliated on the
Statements of Operations.

SEMI-ANNUAL REPORT

APRIL 30, 2009

57


Notes to Financial Statements (continued)

Other: Expenses directly related to each 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.
Custodian fees may be reduced by amounts calculated on uninvested
cash balances, which are shown on the Statements of Operations as fees
paid indirectly.

2. Investment Advisory Agreement and Other Transactions
with Affiliates:

Each Fund entered into an Investment Advisory Agreement with BlackRock
Advisors, LLC (the “Advisor”), an indirect, wholly owned subsidiary of
BlackRock, Inc. (“BlackRock”), to provide investment advisory and adminis-
tration services. The PNC Financial Services Group, Inc. (“PNC”) and Bank
of America Corporation (“BAC”) are the largest stockholders of BlackRock.
BAC became a stockholder of BlackRock following its acquisition of Merrill
Lynch & Co., Inc. (“Merrill Lynch”) on January 1, 2009. Prior to that date,
both PNC and Merrill Lynch were considered affiliates of the Funds under
the 1940 Act. Subsequent to the acquisition, PNC remains an affiliate, but
due to the restructuring of Merrill Lynch’s ownership interest of BlackRock,
BAC is not deemed to be an affiliate under the 1940 Act.

The Advisor 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 the Funds. For such services, each
Fund pays the Advisor a monthly fee at the following annual rates of each
Fund’s average daily (weekly for Broad Investment Grade, Floating Rate,
Preferred and Equity and Preferred Opportunity) net assets (including any
assets attributable to borrowings or the proceeds from the issuance of
Preferred Shares) minus the sum of accrued liabilities (other than debt rep-
resenting financial leverage) as follows:

  Advisory 
Fund  Fee Rates 
Broad Investment Grade  0.55% 
Capital and Income  0.85% 
Floating Rate  0.75% 
Preferred and Corporate  0.60% 
Preferred and Equity  0.65% 
Preferred Income  0.60% 
Preferred Opportunity  0.65% 

The Advisor has voluntarily agreed to waive a portion of the investment advi-
sory fees or other expenses on Floating Rate as a percentage of its average
weekly net assets as follows: 0.20% for the first five years of the Fund’s
operations (through August 30, 2010), 0.10% in year seven (through
August 30, 2011) and 0.05% in year eight (through August 30, 2012).

Broad Investment Grade has an Administration Agreement with the Advisor.
The administration fee paid to the Advisor is computed weekly and payable
monthly at an annual rate of 0.15% of the Fund’s average daily net assets.
The Advisor has voluntarily agreed to waive the investment advisory and
administration fees on Broad Investment Grade for the period November 1,
2007 to the Fund’s termination in 2009.

The Advisor has agreed to waive its advisory fees by the amount of invest-
ment advisory fees each Fund pays to the Advisor indirectly through its

investment in affiliated money market funds. These amounts are shown as
fees waived by advisor on the Statements of Operations.

The Funds reimbursed the Advisor the following amounts for certain
accounting services, which are included in accounting services in the
Statements of Operations. For the six months ended April 30, 2009 the
amounts were as follows:

Capital and Income  $ 4,554 
Floating Rate  $ 3,259 
Preferred and Corporate  $ 1,366 
Preferred and Equity  $ 7,127 
Preferred Income  $ 5,906 
Preferred Opportunity  $ 3,305 

BlackRock Financial Management, Inc. (“BFM”), a wholly owned subsidiary
of BlackRock, Inc., serves as sub-advisor for Broad Investment Grade,
Floating Rate, Preferred and Equity and Preferred Opportunity. BFM and
BlackRock Investment Management LLC (“BIM”), both affiliates of the
Advisor, serve as sub-advisors for Capital and Income. BIM serves as sub-
advisor for Preferred and Corporate and Preferred Income. The Advisor pays
the subadvisors for services they provide, a monthly fee that is a percent-
age of the investment advisory fees paid by each Fund to the Advisor.

For the period November 1, 2008 to December 31, 2008 (after which it
was no longer considered an affiliate), Merrill Lynch, Pierce, Fenner &
Smith Incorporated (“MLPF&S”), a wholly owned subsidiary of Merrill
Lynch, earned commissions on transactions of securities as follows:

Capital and Income  $ 31,748 
Preferred and Equity  $ 5,223 

Certain officers and/or directors or trustees of the Funds are officers and/or
directors of BlackRock or its affiliates. The Funds reimburse the Advisor for
compensation paid to the Funds’ Chief Compliance Officer.

3. Investments:

Purchases and sales (including paydowns) of investments, excluding short-
term securities and US government securities, for the six months ended
April 30, 2009 were as follows:

  Purchases  Sales 
Broad Investment Grade  $ 976,325  $ 1,474,012 
Capital and Income  $ 744,809,589  $ 170,899,104 
Floating Rate  $ 36,298,860  $ 100,264,618 
Preferred and Corporate  $ 18,804,259  $ 58,215,838 
Preferred and Equity  $ 178,529,294  $ 253,434,355 
Preferred Income  $ 68,895,190  $ 208,691,894 
Preferred Opportunity  $ 32,602,854  $ 111,502,899 

For the six months ended April 30, 2009, purchases and sales of US gov-
ernment securities were as follows:

  Purchases  Sales 
Preferred and Equity  $ 494,173  $ 482,813 

58 SEMI-ANNUAL REPORT

APRIL 30, 2009


Notes to Financial Statements (continued)

Transactions in options written for the six months ended April 30, 2009 for
Capital and Income and Preferred and Equity were as follows:

Capital and Income     
    Premiums 
  Contracts  Received 
Outstanding call options written,     
beginning of period  1,225  $ 3,449,258 
Options written  248,950  88,029,757 
Options expired  (36,941)  (11,000,964) 
Options closed  (48,353)  (67,709,114) 
Options exercised  (33,722)  (2,692,233) 
Outstanding call options written, end of period  131,159  $ 10,076,704 
    Premiums 
  Contracts  Received 
Outstanding put options written,     
beginning of period     
Options written  600  $ 51,500 
Options closed  (600)  (51,500) 
Outstanding put options written, end of period     
Preferred and Equity     
    Premiums 
  Contracts  Received 
Outstanding call options written,     
beginning of period  1,150  $ 4,556,037 
Options written  11,234  25,175,420 
Options expired  (1,905)  (4,347,543) 
Options closed  (9,070)  (21,858,548) 
Outstanding call options written, end of period  1,409  $ 3,525,366 

4. Reverse Repurchase Agreements:

For the six months ended April 30, 2009, the daily weighted average inter-
est rate on the reverse repurchase agreements were as follows:

Broad Investment Grade  0.73% 
Floating Rate  2.54% 
Preferred and Corporate  2.53% 
Preferred and Equity  3.00% 
Preferred Income  1.49% 
Preferred Opportunity  2.98% 

5. Commitments:

Floating Rate may invest in floating rate loans. In connection with these
investments, the Fund may, with its Advisor, also enter into unfunded corpo-
rate loans (“commitments”). Commitments may obligate the Fund to fur-
nish temporary financing to a borrower until permanent financing can be
arranged. In connection with these commitments, the Fund earns a commit-
ment fee, typically set as a percentage of the commitment amount. Such
fee income, which is classified in the Statements of Operations as facility
and other fees, is recognized ratably over the commitment period. As of
April 30, 2009, the Fund had the following unfunded loan commitments:

    Value of 
  Underlying  Underlying 
  Commitment  Loan 
Borrower  (000)  (000) 
Bausche & Lomb, Inc  $ 20  $ 21 
Golden Nugget, Inc  $ 45  $ 20 
Smurfit-Stone Container Revolving Credit  $861  $833 

6. Capital Share Transactions:

Common Shares

There are 200 million of $0.01 par value shares authorized for Broad
Investment Grade. There are 200 million of $0.10 par value shares author-
ized for Capital and Income, Preferred and Corporate and Preferred Income.
There are an unlimited number of $0.001 par value shares authorized for
Floating Rate, Preferred and Equity and Preferred Opportunity.

Shares issued and outstanding during the six months ended April 30,
2009 and the year ended October 31, 2008 for Preferred and Corporate
and Preferred Income and the period January 1, 2008 to October 31,
2008 and the year ended December 31, 2007 for Preferred Opportunity
increased by the following amounts as a result of dividend reinvestment:

  April 30,  October 31,  December 31, 
  2009  2008  2007 
Preferred and Corporate  3,965     
Preferred Income  119,907     
Preferred Opportunity  64,138  5,794  30,981 

Shares issued and outstanding remained constant for Broad Investment
Grade, Floating Rate, Preferred and Corporate, and Preferred and Equity
for the six months ended April 30, 2009, and the year ended October 31,
2008 (period January 1, 2008 to October 31, 2009 for Floating Rate).
Shares issued and outstanding for Capital and Income increased by
30,542,706 as a result of a reorganization and remained constant during
the period January 1, 2008 to October 31, 2008 and the year ended
December 31, 2007.

Preferred Shares

The Preferred Shares are redeemable at the option of each Fund, in whole
or in part, on any dividend payment date at $25,000 per share plus any
accumulated or unpaid dividends whether or not declared. The Preferred
Shares are also subject to mandatory redemption at their liquidation pref-
erence plus any accumulated or unpaid dividends, whether or not declared,
if certain requirements relating to the composition of the assets and liabili-
ties of the Fund, as set forth in the Fund’s Statement of Preferences/Articles
Supplementary (“Governing Instrument”), as applicable, are not satisfied.

From time to time in the future, the Funds that have issued Preferred
Shares may effect repurchases of such shares at prices below their liquida-
tion preferences as agreed upon by the Funds and seller. The Funds also
may redeem such shares from time to time as provided in the applicable
Governing Instrument. The Funds intend to effect such redemptions and/or
repurchases to the extent necessary to maintain applicable asset coverage
requirements or for such other reasons as the Board may determine.

The holders of Preferred Shares have voting rights equal to the holders of
Common Shares (one vote per share) and will vote together with holders
of Common Shares (one vote per share) as a single class. However, holders
of Preferred Shares, voting as a separate class, are also entitled to elect
two Directors/Trustees 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

SEMI-ANNUAL REPORT

APRIL 30, 2009

59


Notes to Financial Statements (continued)

reorganization that would adversely affect the Preferred Shares, (b) change
a Fund’s subclassification 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.

Floating Rate, Preferred and Corporate, Preferred and Equity, Preferred
Income and Preferred Opportunity had the following series of Preferred
Shares outstanding and effective yields as of April 30, 2009:

        Reset 
  Series  Shares  Yield  Frequency 
Floating Rate  T7  784  1.581%  7 
  W7  784  1.581%  7 
  R7  784  1.572%  7 
Preferred and Corporate  M7  805  1.571%  7 
  T7  805  1.581%  7 
Preferred and Equity  T7  2,310  1.581%  7 
  W7  2,310  1.581%  7 
  R7  2,310  1.572%  7 
  F7  2,310  1.571%  7 
Preferred Income  M7  861  1.571%  7 
  T7  861  1.581%  7 
  W7  861  1.581%  7 
  TH7  861  1.572%  7 
  F7  861  1.571%  7 
  W28  1,381  1.710%  28 
  TH28  1,228  1.688%  28 
Preferred Opportunity  T7  939  0.450%  7 
  W7  939  0.465%  7 
  R7  939  0.465%  7 

Dividends on seven-day Preferred Shares are cumulative at a rate that is
reset every seven days based on the results of an auction. Dividends on
28-day Preferred Shares are cumulative at a rate which is reset every 28
days based on the results of an auction. If the Preferred Shares fail to clear
the auction on an auction date, the Funds are required to pay the maximum
applicable rate on the Preferred Shares to holders of such shares for suc-
cessive dividend periods until such time as the shares are successfully
auctioned. The maximum applicable rate on Preferred Shares are as
follows: for Floating Rate, the higher of 125% of the 7-day Telerate/BBA
LIBOR rate or 125% over the 7-day Telerate/BBA LIBOR rate; for Preferred
and Corporate and Preferred Income, 125% times or 1.25% plus the
Telerate/BBA LIBOR rate; for Preferred Equity, 150% times or 1.25% plus
the Telerate/BBA LIBOR rate; and for Preferred Opportunity 150% of the
interest equivalent of the 30-day commercial paper rate. The dividend
ranges for the six months ended April 30, 2009, were as follows:

  Series  Low  High  Average 
Floating Rate  T7  1.486%  3.341%  1.777% 
  W7  1.483%  3.266%  1.774% 
  R7  1.491%  2.888%  1.764% 
Preferred and Corporate  M7  1.493%  3.389%  1.765% 
  T7  1.486%  3.341%  1.777% 

  Series  Low  High  Average 
Preferred and Equity  T7  1.486%  3.341%  1.777% 
  W7  1.483%  3.266%  1.774% 
  R7  1.491%  2.888%  1.764% 
  F7  1.493%  2.569%  1.757% 
Preferred Income  M7  1.493%  3.389%  1.828% 
  T7  1.486%  3.341%  1.839% 
  W7  1.483%  3.266%  1.742% 
  TH7  1.491%  2.888%  1.788% 
  F7  1.493%  2.461%  1.771% 
  W28  1.579%  4.525%  1.767% 
  TH28  1.663%  5.763%  2.199% 
Preferred Opportunity  T7  0.375%  4.210%  0.998% 
  W7  0.405%  4.074%  0.999% 
  R7  0.375%  4.089%  1.003% 

Since February 13, 2008, the Preferred Shares of the Funds failed to clear
any of their auctions. As a result, the Preferred Shares dividend rates were
reset to the maximum applicable rate, which ranged from 0.375% to
5.763%. A failed auction is not an event of default for the Funds but it
has a negative impact on the liquidity of Preferred Shares. A failed auction
occurs when there are more sellers of a Fund’s Preferred Shares than buy-
ers. It is impossible to predict how long this imbalance will last. A success-
ful auction for the Fund’s Preferred Shares may not occur for some time, if
ever, and even if liquidity does resume, holders of the Preferred Shares may
not have the ability to sell the Preferred Shares at its liquidation preference.

A Fund may not declare dividends or make other distributions on Common
Shares or purchase any such shares if, at the time of the declaration, distri-
bution or purchase, asset coverage with respect to the outstanding
Preferred Shares is less than 200%.

Prior to December 22, 2008, the Funds paid commissions to certain
broker-dealers at the end of each auction at an annual rate of 0.25%,
calculated on the aggregate principal amount. In December 22, 2008,
commissions paid to broker-dealers on preferred shares that experience a
failed auction were reduced to 0.15% on the aggregate principal amount.
The Fund will continue to pay commissions of 0.25% on the aggregate
principal amount of all shares that successfully clear their auctions. For the
period November 1, 2008 to December 31, 2008 (after which it was no
longer considered an affiliate), MLPF&S, earned commissions as follows:

  Commissions 
Floating Rate  $ 683 
Preferred and Corporate  $14,200 
Preferred and Equity  $41,221 
Preferred Income  $42,997 
Preferred Opportunity  $13,434 

The Funds announced the following redemptions, as of the date indicated,
of Preferred Shares at a price of $25,000 per share plus any accrued and
unpaid dividends through the redemption dates:

60 SEMI-ANNUAL REPORT

APRIL 30, 2009


Notes to Financial Statements (continued)

May 19, 2008         
    Redemption  Shares  Aggregate 
  Series  Date  Redeemed  Principal 
Floating Rate  T7  6/11/2008  2,462  $61,550,000 
  W7  6/12/2008  2,462  $61,550,000 
  R7  6/13/2008  2,462  $61,550,000 
Preferred and Corporate  M7  6/10/2008  1,365  $34,125,000 
  T7  6/11/2008  1,365  $34,125,000 
Preferred and Equity  T7  6/11/2008  2,310  $57,750,000 
  W7  6/12/2008  2,310  $57,750,000 
  R7  6/13/2008  2,310  $57,750,000 
  F7  6/09/2008  2,310  $57,750,000 
Preferred Income  M7  6/10/2008  1,400  $35,000,000 
  T7  6/11/2008  1,400  $35,000,000 
  W7  6/05/2008  1,400  $35,000,000 
  TH7  6/06/2008  1,400  $35,000,000 
  F7  6/09/2008  1,400  $35,000,000 
  W28  6/05/2008  2,000  $50,000,000 
  TH28  6/20/2008  2,000  $50,000,000 
Preferred Opportunity  T7  6/11/2008  1,472  $36,800,000 
  W7  6/12/2008  1,472  $36,800,000 
  R7  6/13/2008  1,472  $36,800,000 
November 25, 2008         
    Redemption  Shares  Aggregate 
  Series  Date  Redeemed  Principal 
Preferred and Corporate  M7  12/16/08  400  $10,000,000 
  T7  12/17/08  400  $10,000,000 
Preferred Income  M7  12/16/08  229  $ 5,725,000 
  T7  12/17/08  229  $ 5,725,000 
  W7  12/18/08  229  $ 5,725,000 
  TH7  12/12/08  229  $ 5,725,000 
  F7  12/15/08  229  $ 5,725,000 
  W28  12/18/08  327  $ 8,175,000 
  TH28  1/02/09  327  $ 8,175,000 
Preferred Opportunity  T7  12/17/08  266  $ 6,650,000 
  W7  12/18/08  266  $ 6,650,000 
  R7  12/19/08  266  $ 6,650,000 
February 24, 2009         
    Redemption  Shares  Aggregate 
  Series  Date  Redeemed  Principal 
Preferred and Corporate  M7  3/16/09  160  $ 4,000,000 
  T7  3/17/09  160  $ 4,000,000 
Preferred Income  M7  3/17/09  203  $ 5,075,000 
  T7  3/18/09  203  $ 5,075,000 
  W7  3/19/09  203  $ 5,075,000 
  TH7  3/13/09  203  $ 5,075,000 
  F7  3/16/09  203  $ 5,075,000 
  W28  4/09/09  292  $ 7,300,000 
  TH28  3/27/09  292  $ 7,300,000 

March 26, 2009         
    Redemption  Shares  Aggregate 
  Series  Date  Redeemed  Principal 
Preferred Income  M7  4/14/09  107  $2,675,000 
  T7  4/15/09  107  $2,675,000 
  W7  4/16/09  107  $2,675,000 
  TH7  4/13/09  107  $2,675,000 
  F7  4/13/09  107  $2,675,000 
  W28  5/07/09  153  $3,825,000 
  TH28  4/24/09  153  $3,825,000 
Preferred Opportunity  T7  4/15/09  267  $6,675,000 
  W7  4/16/09  267  $6,675,000 
  R7  4/17/09  267  $6,675,000 

All of the Funds, except Floating Rate, financed the Preferred Share
redemptions with cash received from reverse repurchase agreements.
Floating Rate financed the Preferred Share redemptions with cash
received from a loan.

Shares issued and outstanding for the year ended October 31, 2007
(December 31, 2007 for Floating Rate and Preferred Opportunity)
remained constant.

7. Short Term Borrowings:

On March 5, 2009, Floating Rate terminated its revolving credit agreement
with Citicorp and entered into a senior committed secured, 364-day revolv-
ing line of credit and a separate security agreement with State Street Bank
and Trust Company (“SSB”). The SSB line of credit provides the Fund with a
maximum commitment of $134 million. The Fund has granted a security
interest in substantially all of its assets to SSB.

Advances are made by SSB to Floating Rate at Floating Rate’s option at
either (a) the higher of 1.00% above the Fed Effective Rate or 1.00%
above the Overnight LIBOR Rate and (b) 1.00% above 7-day, 30-day, or
60-day LIBOR Rate. In addition, Floating Rate pays a facility fee and a
commitment fee based upon SSBs total commitment to Floating Rate. For
the six months ended April 30, 2009, the daily weighted average interest
rate was 2.46%.

Under the Investment Company Act of 1940, Floating Rate may not declare
dividends or make other distributions on Common Shares if, at the time of
the declaration, distribution or purchase, asset coverage with respect to the
outstanding indebtedness is less than 300%.

8. Capital Loss Carryforwards:

As of October 31, 2008, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates:

Expires October 31,  Broad           
(November 30, for  Investment  Floating  Preferred and  Preferred  Preferred  Preferred 
Broad Investment Grade)  Grade  Rate  Corporate  and Equity  Income  Opportunity 
2011  $ 1,120,207    $ 1,276,621       
2012  684,360    10,243,141    $ 62,733,648   
2013      5,058,900    17,911,331   
2014  471,992    8,481,628    12,145,117   
2015    $ 3,268,804  6,724,694  $ 49,741,712  19,582,978  $ 18,184,893 
2016    24,616,531  40,232,230  113,355,213  140,413,243  58,197,929 
Total  $ 2,276,559  $ 27,885,335  $ 72,017,214  $163,096,925  $252,786,317  $ 76,382,822 

SEMI-ANNUAL REPORT

APRIL 30, 2009

61


Notes to Financial Statements (concluded)

9. Reorganization:

On November 3, 2008 (the “Reorganization Date”), BlackRock Enhanced
Capital and Income Fund, Inc. (“Capital and Income”) acquired all of the
assets and certain stated liabilities of BlackRock Enhanced Equity Yield
Fund, Inc. (“Equity Yield”) and BlackRock Enhanced Equity Yield and
Premium Fund, Inc. (“Equity Yield and Premium”). The reorganization was
pursuant to an Agreement and Plan of Reorganization, which was approved
by the shareholders of Equity Yield and Equity Yield and Premium on
August 29, 2008. Under the Agreement and Plan of Reorganization,
20,954,427 common shares of Equity Yield and 16,812,195 common
shares of Equity Yield and Premium were exchanged for 16,900,492 and
13,642,214 common shares, respectively, of Capital and Income. The
conversion ratios were 0.80653563 and 0.81144752 for Equity Yield
and Equity Yield and Premium, respectively. The assets of Equity Yield
and Equity Yield and Premium, each consisting of securities and related
receivables less liabilities, were converted on a tax-free basis. On the
Reorganization Date, the net assets of Capital and Income were valued at
$591,399,963 (including net assets of $232,938,216 for the Equity Yield
which was comprised of $329,483,363 of paid-in capital, $16,478,636
of accumulated losses and $80,066,511 of unrealized depreciation; and
net assets of $188,029,937 for the Equity Yield and Premium which was
comprised of $270,207,354 of paid-in capital, $15,306,982 of accumu-
lated losses and $66,870,435 of unrealized depreciation).

10. Subsequent Events:

The Funds paid net investment income dividends on May 29, 2009 to
shareholders of record on May 15, 2009 in the following amounts:

Floating Rate  $0.100000 
Preferred and Corporate  $0.080800 
Preferred and Equity  $0.130000 
Preferred Income  $0.094583 
Preferred Opportunity  $0.105000 

The dividends declared on Preferred Shares for the period May 1, 2009
through May 31, 2009 were as follows:

    Dividends 
  Series  Declared 
Floating Rate  T7  $23,755 
  W7  $29,745 
  R7  $23,841 
Preferred and Corporate  M7  $26,869 
  T7  $26,161 
Preferred and Equity  T7  $69,574 
  W7  $69,639 
  R7  $69,636 
  F7  $69,771 
Preferred Income  M7  $26,097 
  T7  $26,088 
  W7  $26,062 
  TH7  $32,606 
  F7  $32,434 
  W28  $45,918 
  TH28  $40,303 
Preferred Opportunity  T7  $ 8,533 
  W7  $ 9,277 
  R7  $ 8,356 

The Funds’ distribution rates declared on June 1, 2009 were as follows:

  Per Share 
  Amount 
Floating Rate  $0.0750 
Preferred and Corporate  $0.0600 
Preferred and Equity  $0.1000 
Preferred Income  $0.0750 
Preferred Opportunity  $0.0725 

62 SEMI-ANNUAL REPORT

APRIL 30, 2009


Officers and Directors/Trustees

Richard E. Cavanagh, Chairman of the Board and Director/Trustee
Karen P. Robards, Vice Chair of the Board, Chair of the
Audit Committee and Director/Trustee
G. Nicholas Beckwith, III, Director/Trustee
Richard S. Davis, Director/Trustee
Kent Dixon, Director/Trustee
Frank J. Fabozzi, Director/Trustee
Kathleen F. Feldstein, Director/Trustee
James T. Flynn, Director/Trustee
Henry Gabbay, Director/Trustee
Jerrold B. Harris, Director/Trustee

R. Glenn Hubbard, Director/Trustee
W. Carl Kester, Director/Trustee

Donald C. Burke, Fund President and Chief Executive Officer
Anne F. Ackerley, Vice President
Neal J. Andrews, Chief Financial Officer
Jay M. Fife, Treasurer
Brian P. Kindelan, Chief Compliance Officer of the Funds
Howard B. Surloff, Secretary

Custodians

State Street Bank and Trust Company1
Boston, MA 02101

Brown Brothers Harriman & Co.2
Boston, MA 02109

Transfer Agents

Common Shares

Computershare Trust Companies, N.A.1
Canton, MA 02021

BNY Mellon Shareowner Services2
Jersey City, NJ 07310

Auction Agent

Preferred Shares

BNY Mellon Shareowner Services3
Jersey City, NJ 07310

Accounting Agent

State Street Bank and Trust Company
Princeton, NJ 08540

Independent Registered Public Accounting Firm
Deloitte & Touche LLP
Princeton, NJ 08540

Legal Counsel
Skadden, Arps, Slate, Meagher & Flom LLP
New York, NY 10036

Address of the Funds
100 Bellevue Parkway
Wilmington, DE 19809

1 For all Funds except Capital and Income.
2 For Capital and Income.
3 For Floating Rate, Preferred and Corporate, Preferred and Equity, Preferred Income
and Preferred Opportunity.

BlackRock Enhanced Capital and Income Fund, Inc. is managed by a team of investment professionals. Effective January 1 and February 2, 2009 Kurt
Schansinger and Kyle McClements, respectively joined Kevin Rendino as the Fund’s co-portfolio managers responsible for the day-to-day management
of the Fund’s portfolio and the selection of its investments. Mr. Rendino has been a member of the Fund’s management team since 2004 and Messrs.
Schansinger and McClements since 2009.

Kevin Rendino is Managing Director of BlackRock, Inc. since 2006 and head of BlackRock’s Basic Value Equity team; Managing Director of Merrill
Lynch Investment Managers, L.P. (“MLIM”) from 2000 to 2006.

Kurt Schansinger is Managing Director of BlackRock, Inc. since 2006; Managing Director of MLIM from 2000 to 2006.

Kyle McClements is Director of BlackRock, Inc. since 2006; Vice President of BlackRock, Inc. from 2005 to 2006; Vice President of State Street
Research & Management from 2004 to 2005.

SEMI-ANNUAL REPORT

APRIL 30, 2009

63


Officers and Directors/Trustees (concluded)

BlackRock Floating Rate Income Trust is managed by a team of investment professionals. Effective May 8, 2009, Leland T. Hart and C. Adrian Marshall
joined James E. Keenan as the Fund’s co-portfolio managers responsible for the day-to-day management of the Fund’s portfolio and the selection of
its investments. Mr. Keenan has been a member of the Fund’s management team since 2007 and Messrs. Hart and Marshall since 2009.

Leland T. Hart is Managing Director of BlackRock Inc. since 2009; Partner of R3 Capital Partners (“R3”) in 2009 and Managing Director thereof from
2008 to 2009; Managing Director of Lehman Brothers from 2006 to 2008 and Executive Director thereof from 2003 to 2006.

James E. Keenan is Managing Director of BlackRock, Inc. since 2008 and Director thereof from 2004 to 2008; Head of the Leveraging Finance
Portfolio team, senior high yield trader at Columbia management from 2003 to 2004.

C. Adrian Marshall is Director of BlackRock, Inc. since 2007 and Vice President thereof from 2004 to 2007.

BlackRock Preferred and Equity Advantage Trust is managed by a team of investment professionals. Effective February 2, 2009, Debra Jelilian and Kyle
McClements joined John Burger and Daniel Chen as the Fund’s co-portfolio managers responsible for the day-to-day management of the Fund’s portfo-
lio and the selection of its investments. Messrs. Burger and Chen have been members of the Fund’s management team since 2006 and Ms. Jelilian
and Mr. McClements since 2009.

John Burger is Managing Director of BlackRock, Inc. since 2006; Managing Director of MLIM from 2004 to 2006 and Director thereof from 1996 to 2004.

Daniel Chen is Director of BlackRock, Inc. since 2007; Vice President of BlackRock, Inc. from 2004 to 2007; Associate of BlackRock, Inc. from 2001
to 2004.

Debra Jelilian is Managing Director of BlackRock, Inc. since 2009; Director of BlackRock, Inc. from 2006 to 2009; Director of MLIM from 1999 to 2006.

Kyle McClements is Director of BlackRock, Inc. since 2006; Vice President of BlackRock, Inc. from 2005 to 2006; Vice President of State Street
Research & Management from 2004 to 2005.

64 SEMI-ANNUAL REPORT

APRIL 30, 2009


Additional Information

Section 19 Notices

The amounts and sources of distributions reported are only 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. Shareholders should not draw any conclusions about the Funds’

investment performance from the amount of distributions or from the terms
of each Funds’ Plan. The Funds will send you a Form 1099-DIV each calendar
year that will tell you how to report these distributions for federal income
tax purposes.

    Total Fiscal Year-to-Date Cumulative    Percentage of Fiscal Year-to-Date   
    Distributions by Character                                   Cumulative Distributions by Character   
  Net  Net    Total Per  Net  Net    Total Per 
  Investment  Realized  Return of  Common  Investment  Realized  Return of  Common 
  Income  Capital Gains  Capital  Share  Income  Capital Gains  Capital  Share 
Capital and Income  $0.21095  $ —  $0.75905  $0.97000  22%  0%  78%  100% 
Floating Rate  $0.99690  $ —  $0.15523  $1.15213  87%  0%  13%  100% 
Preferred and Corporate  $0.46131  $ —  $0.11349  $0.57480  80%  0%  20%  100% 
Preferred and Equity  $0.52135  $ —  $0.25865  $0.78000  67%  0%  33%  100% 
Preferred Income  $0.56706  $ —  $0.08044  $0.64750  88%  0%  12%  100% 
Preferred Opportunity  $0.62651  $ —  $0.08349  $0.71000  88%  0%  12%  100% 

General Information

Capital and Income’s Board recently approved a change to the Fund’s
option writing policy. The Fund has the authority to write (i.e., sell) put
options on the types of securities or instruments that may be held by the
Fund, provided that such put options are covered, meaning that such
options are secured by segregated, liquid instruments. Under the original
policy, the Fund was limited from selling puts if, as a result, more than 50%
of the Fund’s assets would be required to cover its potential obligations
under its hedging and other investment transactions. The Board approved
the elimination of this 50% requirement. When the Fund writes covered put
options, it bears the risk of loss if the value of the underlying stock declines
below the exercise price minus the put premium. If the option is exercised,
the Fund could incur a loss if it is required to purchase the stock underly-
ing the put option at a price greater than the market price of the stock at
the time of exercise plus the put premium the Fund received when it wrote
the option. While the Fund’s potential gain in writing a covered put option
is limited to distributions earned on the liquid assets securing the put
option plus the premium received from the purchaser of the put option,
the Fund risks a loss equal to the entire exercise price of the option minus
the put premium.

During the period there were no material changes in the Funds’ investment
objectives or policies or to the Funds’ charters or by-laws that were not
approved by the shareholders or in the principal risk factors associated
with investment in the Funds.

During this period there have been no changes in the persons who are pri-
marily responsible for the day-to-day management of the Funds’ portfolios,
other than those disclosed on pages 63 and 64 of this report.

Floating Rate’s Board recently approved a change to the Fund’s name from
“BlackRock Global Floating Rate Income Trust” to “BlackRock Floating Rate
Income Trust”.

Quarterly performance, semi-annual and annual reports and other informa-
tion 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 regard-
ing the Funds and does not, and is not intended to, incorporate BlackRock’s
website into this report.

Electronic Delivery

Electronic copies of most financial reports are available on the Funds’
websites 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.

SEMI-ANNUAL REPORT

APRIL 30, 2009

65


Additional Information (concluded)

General Information (concluded)

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 it 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 other-
wise. If you do not want the mailing of these documents to be combined
with those for other members of your household, please contact the Funds
at (800) 441-7762.

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 the operation of the Public Reference

Room 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 Record

Information about how each Fund voted proxies relating to securities
held in each Fund’s portfolio during the most recent 12-month period
ended June 30, 2008 is available upon request and without charge
(1) at www.blackrock.com or by calling (800) 441-7762 and (2) on the
Securities and Exchange Commission’s website at http://www.sec.gov.

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 toll-free (800) 441-7762;
(2) at www.blackrock.com; and (3) on the Securities and Exchange
Commission’s website at http://www.sec.gov.

BlackRock Privacy Principles

BlackRock is committed to maintaining the privacy of its current and former
fund investors and individual clients (collectively, “Clients”) and to safeguard-
ing their non-public personal information. The following information is pro-
vided 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 applica-
tions, 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 proce-
dures relating to the proper storage and disposal of such information.

66 SEMI-ANNUAL REPORT

APRIL 30, 2009


This report is transmitted to shareholders only. It is not a prospectus. Past performance results shown in this report should not be considered a represen-
tation of future performance. BlackRock Floating Rate Income Trust, BlackRock Preferred and Corporate Income Strategies Fund, Inc., BlackRock Preferred
and Equity Advantage Trust, BlackRock Preferred Income Strategies Fund, Inc. and BlackRock Preferred Opportunity Trust 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.



#CE-EQFI-7-4/09


Item 2 – Code of Ethics – Not Applicable to this semi-annual report

Item 3 – Audit Committee Financial Expert – Not Applicable to this semi-annual report

Item 4 – Principal Accountant Fees and Services – Not Applicable to this semi-annual report

Item 5 – Audit Committee of Listed Registrants – Not Applicable to this semi-annual report

Item 6 – Investments
(a) The registrant’s Schedule of Investments is included as part of the Report to
Stockholders filed under Item 1 of this form.
(b) Not Applicable due to no such divestments during the semi-annual period covered since
the previous Form N-CSR filing.

Item 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management
Investment Companies – Not Applicable to this semi-annual report

Item 8 – Portfolio Managers of Closed-End Management Investment Companies – as of April 30,
2009
(a) Not Applicable
(b) Effective February 2, 2009, the registrant is managed by a team of investment
professionals comprised of Mr. John Burger, Managing Director at BlackRock, Mr. Daniel
Chen, Director at BlackRock, Ms. Debra L. Jelilian, Managing Director at BlackRock and
Mr. Kyle G. McClements, Director at BlackRock. Messrs. Burger, Chen and McClements
and Ms. Jelilian are the registrant’s co-portfolio managers and are responsible for the day-
to-day management of the Fund’s portfolio and the selection of its investments. Messrs.
Burger and Chen have been members of the registrant’s management team since 2006. Ms.
Jelilian and Mr. McClements joined the registrant’s management team in 2009.

                               Portfolio Manager     Biography         
                               Debra L. Jelilian       Managing Director of BlackRock, Inc. since 2009; Director of BlackRock, 
       Inc. from 2006 to 2009; Director of Merrill Lynch Investment Managers, L.P. 
       from 1999 to 2006.         
                               Kyle G. McClements     Director of BlackRock, Inc. since 2006; Vice President of BlackRock, Inc. 
       from 2005 to 2006; Vice President of State Street Research & Management 
       from 2004 to 2005.         
                             (a)(2) As of April 30, 2009:           
         (ii) Number of Other Accounts Managed  (iii) Number of Other Accounts and 
    and Assets by Account Type  Assets for Which Advisory Fee is 
            Performance-Based   
       Other  Other Pooled    Other  Other Pooled   
(i) Name of  Registered  Investment  Other  Registered  Investment  Other 
Portfolio Manager  Investment  Vehicles  Accounts  Investment  Vehicles  Accounts 
  Companies      Companies     
Debra L. Jelilian    31  34  35  0  0  1 
  $16.4 Billion  $16.3 Billion  $34.2 Billion  $0  $0  $848 Million 
Kyle G. McClements    11  6  0  0  0  0 
  $4.22 Billion  $411.9 Million  $0  $0  $0  $0 

(iv) Potential Material Conflicts of Interest


BlackRock and its affiliates (collectively, herein “BlackRock”) has built a professional
working environment, firm-wide compliance culture and compliance procedures and
systems designed to protect against potential incentives that may favor one account over
another. BlackRock has adopted policies and procedures that address the allocation of
investment opportunities, execution of portfolio transactions, personal trading by employees
and other potential conflicts of interest that are designed to ensure that all client accounts are
treated equitably over time. Nevertheless, BlackRock furnishes investment management and
advisory services to numerous clients in addition to the Fund, and BlackRock may,
consistent with applicable law, make investment recommendations to other clients or
accounts (including accounts which are hedge funds or have performance or higher fees
paid to BlackRock, or in which portfolio managers have a personal interest in the receipt of
such fees), which may be the same as or different from those made to the Fund. In addition,
BlackRock, its affiliates and significant shareholders and any officer, director, stockholder
or employee may or may not have an interest in the securities whose purchase and sale
BlackRock recommends to the Fund. BlackRock, or any of its affiliates or significant
shareholders, or any officer, director, stockholder, employee or any member of their
families may take different actions than those recommended to the Fund by BlackRock with
respect to the same securities. Moreover, BlackRock may refrain from rendering any advice
or services concerning securities of companies of which any of BlackRock’s (or its
affiliates’ or significant shareholders’) officers, directors or employees are directors or
officers, or companies as to which BlackRock or any of its affiliates or significant
shareholders or the officers, directors and employees of any of them has any substantial
economic interest or possesses material non-public information. Each portfolio manager
also may manage accounts whose investment strategies may at times be opposed to the
strategy utilized for a fund. In this connection, it should be noted that Ms. Jelilian currently
manages certain accounts that are subject to performance fees. In addition, a portfolio
manager may assist in managing certain hedge funds and may be entitled to receive a
portion of any incentive fees earned on such funds and a portion of such incentive fees may
be voluntarily or involuntarily deferred. Additional portfolio managers may in the future
manage other such accounts or funds and may be entitled to receive incentive fees.

As a fiduciary, BlackRock owes a duty of loyalty to its clients and must treat each client
fairly. When BlackRock purchases or sells securities for more than one account, the trades
must be allocated in a manner consistent with its fiduciary duties. BlackRock attempts to
allocate investments in a fair and equitable manner among client accounts, with no account
receiving preferential treatment. To this end, BlackRock has adopted a policy that is
intended to ensure that investment opportunities are allocated fairly and equitably among
client accounts over time. This policy also seeks to achieve reasonable efficiency in client
transactions and provide BlackRock with sufficient flexibility to allocate investments in a
manner that is consistent with the particular investment discipline and client base.

(a)(3) As of April 30, 2009:

Portfolio Manager Compensation Overview

BlackRock’s financial arrangements with its portfolio managers, its competitive
compensation and its career path emphasis at all levels reflect the value senior management
places on key resources. Compensation may include a variety of components and may vary
from year to year based on a number of factors. The principal components of compensation
include a base salary, a performance and revenue-based discretionary bonus, participation in
various benefits programs and one or more of the incentive compensation programs


established by BlackRock such as its Long-Term Retention and Incentive Plan and
Restricted Stock Program.

Base compensation. Generally, portfolio managers receive base compensation based on
their seniority and/or their position with the firm. Senior portfolio managers who perform
additional management functions within the portfolio management group or within
BlackRock may receive additional compensation for serving in these other capacities.

Discretionary Incentive Compensation
Discretionary incentive compensation is a function of several components: the performance
of BlackRock, Inc., the performance of the portfolio manager’s group within BlackRock,
the investment performance, including risk-adjusted returns, of the firm’s assets under
management or supervision by that portfolio manager relative to predetermined
benchmarks, and the individual’s seniority, role within the portfolio management team,
teamwork and contribution to the overall performance of these portfolios and BlackRock.
In most cases, including for the portfolio managers of the Fund, these benchmarks are the
same as the benchmark or benchmarks against which the performance of the Fund or other
accounts managed by the portfolio managers are measured. BlackRock’s Chief Investment
Officers determine the benchmarks against which the performance of funds and other
accounts managed by each portfolio manager is compared and the period of time over which
performance is evaluated. With respect to the Ms. Jelilian and Mr. McClements, such
benchmarks include:

Portfolio Manager  Applicable Benchmarks 
Debra L. Jelilian  A combination of market-based indices (e.g., 
  The S&P 500 Index), certain customized 
  indices and certain fund industry peer groups. 
Kyle G. McClements  A combination of Lipper peer groups and a subset of 
  other closed-end funds. 

BlackRock’s Chief Investment Officers make a subjective determination with respect to the portfolio
manager’s compensation based on the performance of the funds and other accounts
managed by each portfolio manager relative to the various benchmarks noted above.
Performance is measured on a pre-tax basis over various time periods including 1, 3 and 5-
year periods, as applicable.

Distribution of Discretionary Incentive Compensation
Discretionary incentive compensation is distributed to portfolio managers in a combination
of cash and BlackRock, Inc. restricted stock units which vest ratably over a number of
years. The BlackRock, Inc. restricted stock units, if properly vested, will be settled in
BlackRock, Inc. common stock. Typically, the cash bonus, when combined with base
salary, represents more than 60% of total compensation for the portfolio managers. Paying
a portion of annual bonuses in stock puts compensation earned by a portfolio manager for a
given year “at risk” based on BlackRock’s ability to sustain and improve its performance
over future periods.

Long-Term Retention and Incentive Plan (“LTIP”) — The LTIP is a long-term
incentive plan that seeks to reward certain key employees. Prior to 2006, the plan provided
for the grant of awards that were expressed as an amount of cash that, if properly vested and
subject to the attainment of certain performance goals, will be settled in cash and/or in
BlackRock, Inc. common stock. Beginning in 2006, awards are granted under the LTIP in


the form of BlackRock, Inc. restricted stock units that, if properly vested and subject to the
attainment of certain performance goals, will be settled in BlackRock, Inc. common stock.
Ms. Jelilian and Mr. McClements have each received awards under the LTIP.

Deferred Compensation Program — A portion of the compensation paid to
eligible BlackRock employees may be voluntarily deferred into an account that tracks the
performance of certain of the firm’s investment products. Each participant in the deferred
compensation program is permitted to allocate his deferred amounts among the various
investment options. Ms. Jelilian and Mr. McClements have each participated in the deferred
compensation program.

Other compensation benefits. In addition to base compensation and discretionary
incentive compensation, portfolio managers may be eligible to receive or participate in one
or more of the following:

Incentive Savings Plans — BlackRock, Inc. has created a variety of incentive
savings plans in which BlackRock employees are eligible to participate, including a
401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the BlackRock Employee
Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a
company match equal to 50% of the first 6% of eligible pay contributed to the plan capped
at $4,000 per year, and a company retirement contribution equal to 3-5% of eligible
compensation. The RSP offers a range of investment options, including registered
investment companies managed by the firm. BlackRock contributions follow the investment
direction set by participants for their own contributions or, absent employee investment
direction, are invested into a balanced portfolio. The ESPP allows for investment in
BlackRock common stock at a 5% discount on the fair market value of the stock on the
purchase date. Annual participation in the ESPP is limited to the purchase of 1,000 shares
or a dollar value of $25,000. Ms. Jelilian and Mr. McClements are eligible to participate in
these plans.

(a)(4) Beneficial Ownership of Securities – as of April 30, 2009.

Portfolio Manager  Dollar Range of Equity 
  Securities Beneficially Owned 
Debra L. Jelilian  None 
Kyle G. McClements  None 

Item 9 – Purchases of Equity Securities by Closed-End Management Investment Company and
Affiliated Purchasers – Not Applicable

Item 10 – Submission of Matters to a Vote of Security Holders – The registrant’s Nominating and
Governance Committee will consider nominees to the board of directors recommended by
shareholders when a vacancy becomes available. Shareholders who wish to recommend a
nominee should send nominations that include biographical information and set forth the
qualifications of the proposed nominee to the registrant’s Secretary. There have been no
material changes to these procedures.

Item 11 – Controls and Procedures

11(a) –  The registrant’s principal executive and principal financial officers or persons performing 
  similar functions have concluded that the registrant’s disclosure controls and procedures (as 


defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the
“1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the
evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act
and Rule 13(a)-15(b) under the Securities Exchange Act of 1934, as amended.

11(b) – There were no changes in the registrant’s internal control over financial reporting (as
defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter
of the period covered by this report that have materially affected, or are reasonably likely to
materially affect, the registrant’s internal control over financial reporting.

Item 12 – Exhibits attached hereto

12(a)(1) – Code of Ethics – Not Applicable to this semi-annual report

12(a)(2) – Certifications – Attached hereto

12(a)(3) – Not Applicable

12(b) – Certifications – Attached hereto


Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment
Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.

BlackRock Preferred and Equity Advantage Trust

By: /s/ Donald C. Burke
Donald C. Burke
Chief Executive Officer of
BlackRock Preferred and Equity Advantage Trust

Date: June 19, 2009

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment
Company Act of 1940, this report has been signed below by the following persons on behalf
of the registrant and in the capacities and on the dates indicated.

By: /s/ Donald C. Burke
Donald C. Burke
Chief Executive Officer (principal executive officer) of
BlackRock Preferred and Equity Advantage Trust

Date: June 19, 2009

By: /s/ Neal J. Andrews
Neal J. Andrews
Chief Financial Officer (principal financial officer) of
BlackRock Preferred and Equity Advantage Trust

Date: June 19, 2009