UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number 811-21972

 

Name of Fund: BlackRock Credit Allocation Income Trust IV (BTZ)

 

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

 

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Credit Allocation Income Trust IV, 55 East 52nd Street, New York, NY 10055

 

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

 

Date of fiscal year end: 10/31/2011

 

Date of reporting period: 07/31/2011

 

Item 1 – Schedule of Investments

 

 

 

 

 

 

Schedule of Investments July 31, 2011 (Unaudited)

BlackRock Credit Allocation Income Trust IV, Inc. (BTZ)
(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Asset-Backed Securities

 

Par
(000)

 

Value

 

Atrium CDO Corp., Series 5A,
Class A4, 0.65%, 7/20/20 (a)(b)

 

$

4,400

 

$

3,630,000

 

SLM Student Loan Trust,
Series 2004-B, Class A2, 0.45%,
6/15/21 (b)

 

 

4,207

 

 

4,092,497

 

Total Asset-Backed Securities – 1.0%

 

 

 

 

 

7,722,497

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate Bonds

 

 

 

 

 

 

 

Aerospace & Defense — 1.8%

 

 

 

 

 

 

 

BE Aerospace, Inc., 8.50%,
7/01/18

 

 

3,575

 

 

3,945,906

 

Bombardier, Inc., 7.75%, 3/15/20 (a)

 

 

4,500

 

 

5,062,500

 

Huntington Ingalls Industries, Inc. (a):

 

 

 

 

 

 

 

6.88%, 3/15/18

 

 

990

 

 

1,019,700

 

7.13%, 3/15/21

 

 

960

 

 

991,200

 

Kratos Defense & Security
Solutions, Inc., 10.00%,
6/01/17

 

 

2,052

 

 

2,190,510

 

 

 

 

 

 

 

13,209,816

 

Airlines — 0.9%

 

 

 

 

 

 

 

American Airlines Pass-Through
Trust, Series 2011-1, Class A,
5.25%, 7/31/22

 

 

2,425

 

 

2,382,563

 

Continental Airlines Pass-Through
Certificates, Series 2009-2,
Class B, 9.25%, 5/10/17

 

 

1,990

 

 

2,092,107

 

Delta Air Lines, Inc., Series 02G1,
6.72%, 7/02/24

 

 

2,205

 

 

2,221,889

 

 

 

 

 

 

 

6,696,559

 

Auto Components — 0.7%

 

 

 

 

 

 

 

Delphi Corp., 6.13%, 5/15/21 (a)

 

 

950

 

 

959,500

 

Icahn Enterprises LP:

 

 

 

 

 

 

 

7.75%, 1/15/16

 

 

1,700

 

 

1,763,750

 

8.00%, 1/15/18

 

 

2,500

 

 

2,581,250

 

 

 

 

 

 

 

5,304,500

 

Beverages — 0.5%

 

 

 

 

 

 

 

Constellation Brands, Inc., 7.25%,
5/15/17

 

 

3,230

 

 

3,536,850

 

Building Products — 0.4%

 

 

 

 

 

 

 

Building Materials Corp. of America (a):

 

 

 

 

 

 

 

7.00%, 2/15/20

 

 

790

 

 

827,525

 

6.75%, 5/01/21

 

 

1,930

 

 

1,956,538

 

 

 

 

 

 

 

2,784,063

 

 

 

 

 

 

 

 

 

Corporate Bonds

 

Par
(000)

 

Value

 

Capital Markets — 4.2%

 

 

 

 

 

 

 

Ameriprise Financial, Inc., 5.30%,
3/15/20 (c)

 

$

4,500

 

$

4,956,066

 

E*Trade Financial Corp., 12.50%,
11/30/17 (d)

 

 

2,460

 

 

2,939,700

 

The Goldman Sachs Group, Inc. (c):

 

 

 

 

 

 

 

7.50%, 2/15/19

 

 

6,850

 

 

8,091,542

 

6.25%, 2/01/41

 

 

7,350

 

 

7,392,490

 

Macquarie Bank, Ltd., 6.63%,
4/07/21 (a)(c)

 

 

3,415

 

 

3,525,824

 

UBS AG (c):

 

 

 

 

 

 

 

2.25%, 1/28/14

 

 

2,678

 

 

2,711,740

 

5.88%, 7/15/16

 

 

1,575

 

 

1,734,752

 

 

 

 

 

 

 

31,352,114

 

Chemicals — 0.5%

 

 

 

 

 

 

 

CF Industries, Inc., 7.13%,
5/01/20

 

 

1,550

 

 

1,817,375

 

Celanese US Holdings LLC, 5.88%,
6/15/21

 

 

975

 

 

1,033,500

 

Omnova Solutions, Inc., 7.88%,
11/01/18 (a)

 

 

1,125

 

 

1,094,063

 

 

 

 

 

 

 

3,944,938

 

Commercial Banks — 6.3%

 

 

 

 

 

 

 

Amsouth Bank, 4.85%, 4/01/13

 

 

1,800

 

 

1,785,636

 

Asciano Finance, 5.00%,
4/07/18 (a)

 

 

1,475

 

 

1,540,300

 

Associated Banc-Corp, 5.13%,
3/28/16

 

 

3,645

 

 

3,863,335

 

BNP Paribas (c):

 

 

 

 

 

 

 

3.60%, 2/23/16

 

 

7,250

 

 

7,366,333

 

7.20%, 6/29/49 (a)(e)

 

 

2,500

 

 

2,337,500

 

Branch Banking & Trust Co. (b)(c):

 

 

 

 

 

 

 

0.57%, 9/13/16

 

 

1,850

 

 

1,713,287

 

0.56%, 5/23/17

 

 

1,100

 

 

1,007,134

 

CIT Group, Inc.:

 

 

 

 

 

 

 

7.00%, 5/01/17

 

 

4,070

 

 

4,080,175

 

6.63%, 4/01/18 (a)

 

 

553

 

 

583,415

 

Credit Agricole SA (a)(b)(c)(e):

 

 

 

 

 

 

 

6.64%, 5/29/49

 

 

2,450

 

 

2,094,750

 

8.38%, 10/29/49

 

 

2,450

 

 

2,523,500

 

Discover Bank, 8.70%, 11/18/19

 

 

1,950

 

 

2,413,195

 

HSBC Holdings Plc, 5.10%,
4/05/21 (c)

 

 

3,500

 

 

3,676,173

 

Regions Financial Corp.:

 

 

 

 

 

 

 

4.88%, 4/26/13

 

 

4,150

 

 

4,153,955

 

5.75%, 6/15/15

 

 

3,000

 

 

2,981,250

 

Standard Chartered Plc, 7.01%,
7/29/49 (a)(b)(e)

 

 

5,000

 

 

4,925,495

 

 

 

 

 

 

 

47,045,433

 

 

Portfolio Abbreviations

To simplify the listings of portfolio holdings in the Schedule of Investments, the names and descriptions of many of the securities have been abbreviated according to the following list:

 

 

GO

General Obligation Bonds

LIBOR

London InterBank Offered Rate

RB

Revenue Bonds

USD

US Dollar

 

 

 

 

 

 

 

 

 

BLACKROCK CREDIT ALLOCATION INCOME TRUST IV, INC.

JULY 31, 2011

1


 

 

 

 

 

Schedule of Investments (continued)

BlackRock Credit Allocation Income Trust IV, Inc. (BTZ)
(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Corporate Bonds

 

Par
(000)

 

Value

 

Commercial Services & Supplies — 3.9%

 

 

 

 

 

 

 

Aviation Capital Group Corp. (a):

 

 

 

 

 

 

 

7.13%, 10/15/20 (c)

 

$

15,000

 

$

15,581,562

 

6.75%, 4/06/21

 

 

3,850

 

 

3,868,480

 

Casella Waste Systems, Inc.,
7.75%, 2/15/19 (a)

 

 

1,201

 

 

1,188,990

 

Clean Harbors, Inc., 7.63%,
8/15/16

 

 

2,250

 

 

2,390,625

 

Corrections Corp. of America,
7.75%, 6/01/17

 

 

4,835

 

 

5,252,019

 

Mobile Mini, Inc., 7.88%,
12/01/20

 

 

455

 

 

474,338

 

 

 

 

 

 

 

28,756,014

 

Communications Equipment — 0.9%

 

 

 

 

 

 

 

Avaya, Inc.:

 

 

 

 

 

 

 

9.75%, 11/01/15

 

 

1,400

 

 

1,424,500

 

7.00%, 4/01/19 (a)

 

 

850

 

 

822,375

 

Brocade Communications
Systems, Inc., 6.88%, 1/15/20

 

 

3,580

 

 

3,888,775

 

EH Holding Corp., 6.50%, 6/15/19 (a)

 

 

700

 

 

720,125

 

 

 

 

 

 

 

6,855,775

 

Construction Materials — 0.2%

 

 

 

 

 

 

 

Inversiones CMPC SA, 4.75%,
1/19/18 (a)

 

 

1,375

 

 

1,410,496

 

Consumer Finance — 3.9%

 

 

 

 

 

 

 

American Express Credit Corp.,
2.75%, 9/15/15 (c)

 

 

9,850

 

 

9,984,088

 

Capital One Bank USA NA, 8.80%,
7/15/19

 

 

3,950

 

 

4,968,085

 

Ford Motor Credit Co. LLC, 7.00%,
4/15/15

 

 

2,450

 

 

2,682,750

 

Inmarsat Finance Plc, 7.38%,
12/01/17 (a)

 

 

2,975

 

 

3,157,219

 

SLM Corp., 6.25%, 1/25/16

 

 

8,205

 

 

8,585,728

 

 

 

 

 

 

 

29,377,870

 

Containers & Packaging — 1.3%

 

 

 

 

 

 

 

Ball Corp.:

 

 

 

 

 

 

 

7.13%, 9/01/16

 

 

2,000

 

 

2,192,500

 

6.75%, 9/15/20

 

 

3,575

 

 

3,825,250

 

Crown Americas LLC, 6.25%,
2/01/21 (a)

 

 

1,350

 

 

1,380,375

 

Graphic Packaging International,
Inc., 9.50%, 6/15/17

 

 

1,105

 

 

1,223,787

 

Rock-Tenn Co., 9.25%, 3/15/16

 

 

800

 

 

865,000

 

 

 

 

 

 

 

9,486,912

 

Diversified Financial Services — 11.4%

 

 

 

 

 

 

 

Ally Financial, Inc.:

 

 

 

 

 

 

 

4.50%, 2/11/14

 

 

1,500

 

 

1,492,500

 

8.30%, 2/12/15

 

 

2,890

 

 

3,164,550

 

8.00%, 11/01/31

 

 

3,010

 

 

3,224,462

 

 

 

 

 

 

 

 

 

Corporate Bonds

 

Par
(000)

 

Value

 

Diversified Financial Services (concluded)

 

 

 

 

 

 

 

Bank of America Corp.:

 

 

 

 

 

 

 

5.30%, 3/15/17

 

$

6,505

 

$

6,718,696

 

5.00%, 5/13/21 (c)

 

 

16,100

 

 

15,935,732

 

Citigroup, Inc. (c):

 

 

 

 

 

 

 

4.59%, 12/15/15

 

 

1,575

 

 

1,680,659

 

3.95%, 6/15/16

 

 

2,150

 

 

2,234,364

 

Dresdner Funding Trust I, 8.15%,
6/30/31 (a)

 

 

3,715

 

 

3,362,075

 

Forethought Financial Group, Inc.,
8.63%, 4/15/21 (a)

 

 

1,625

 

 

1,690,993

 

General Electric Capital Corp.,
5.30%, 2/11/21 (c)

 

 

7,775

 

 

8,287,691

 

General Motors Financial Co., Inc.,
6.75%, 6/01/18 (a)

 

 

2,040

 

 

2,080,800

 

ING Bank NV, 5.00%, 6/09/21 (a)(c)

 

 

3,950

 

 

4,047,664

 

Intesa Sanpaolo SpA:

 

 

 

 

 

 

 

2.38%, 12/21/12

 

 

5,800

 

 

5,608,548

 

6.50%, 2/24/21 (a)

 

 

922

 

 

954,240

 

JPMorgan Chase & Co., 3.15%,
7/05/16 (c)

 

 

4,375

 

 

4,421,134

 

Moody’s Corp., 6.06%, 9/07/17

 

 

10,000

 

 

10,521,480

 

Morgan Stanley, 5.50%, 7/28/21

 

 

6,670

 

 

6,875,116

 

Reynolds Group Issuer, Inc. (a):

 

 

 

 

 

 

 

7.88%, 8/15/19 (f)

 

 

275

 

 

278,094

 

6.88%, 2/15/21

 

 

1,095

 

 

1,051,200

 

8.25%, 2/15/21

 

 

1,345

 

 

1,240,762

 

WMG Acquisition Corp., 9.50%,
6/15/16 (a)

 

 

340

 

 

360,825

 

 

 

 

 

 

 

85,231,585

 

Diversified Telecommunication
Services — 5.0%

 

 

 

 

 

 

 

AT&T, Inc., 6.30%, 1/15/38 (c)

 

 

5,000

 

 

5,533,760

 

Level 3 Financing, Inc.:

 

 

 

 

 

 

 

8.75%, 2/15/17

 

 

1,620

 

 

1,648,350

 

10.00%, 2/01/18

 

 

310

 

 

334,025

 

8.13%, 7/01/19 (a)

 

 

4,577

 

 

4,611,328

 

Qwest Corp., 8.38%, 5/01/16

 

 

3,285

 

 

3,892,725

 

Telecom Italia Capital SA, 6.18%,
6/18/14

 

 

1,650

 

 

1,719,133

 

Telefonica Emisiones SAU, 5.46%,
2/16/21 (c)

 

 

2,250

 

 

2,256,413

 

Verizon Communications, Inc. (c):

 

 

 

 

 

 

 

1.95%, 3/28/14

 

 

8,525

 

 

8,740,972

 

7.35%, 4/01/39

 

 

4,700

 

 

5,962,166

 

Windstream Corp., 7.88%,
11/01/17

 

 

2,700

 

 

2,885,625

 

 

 

 

 

 

 

37,584,497

 

Electric Utilities — 2.2%

 

 

 

 

 

 

 

Dominion Resources, Inc., Series
D, 8.88%, 1/15/19 (c)

 

 

8,000

 

 

10,592,360

 

Progress Energy, Inc., 7.00%,
10/30/31

 

 

5,000

 

 

6,070,220

 

 

 

 

 

 

 

16,662,580

 

 

 

 

 

 

 

 

 

 

BLACKROCK CREDIT ALLOCATION INCOME TRUST IV, INC.

JULY 31, 2011

2


 

 

 

 

 

Schedule of Investments (continued)

BlackRock Credit Allocation Income Trust IV, Inc. (BTZ)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Corporate Bonds

 

Par
(000)

 

Value

 

Electronic Equipment, Instruments
& Components — 1.0%

 

 

 

 

 

 

 

Jabil Circuit, Inc., 8.25%, 3/15/18

 

$

2,000

 

$

2,295,000

 

NXP BV, 3.00%, 10/15/13

 

 

4,900

 

 

4,896,937

 

 

 

 

 

 

 

7,191,937

 

Energy Equipment & Services — 1.6%

 

 

 

 

 

 

 

Ensco Plc, 4.70%, 3/15/21

 

 

3,255

 

 

3,418,567

 

Frac Tech Services LLC, 7.13%,
11/15/18 (a)

 

 

1,795

 

 

1,871,288

 

Hornbeck Offshore Services, Inc.,
Series B, 6.13%, 12/01/14

 

 

2,695

 

 

2,695,000

 

Key Energy Services, Inc., 6.75%,
3/01/21

 

 

1,240

 

 

1,280,300

 

MEG Energy Corp., 6.50%,
3/15/21 (a)

 

 

1,580

 

 

1,643,200

 

Oil States International, Inc.,
6.50%, 6/01/19 (a)

 

 

835

 

 

851,700

 

SunCoke Energy, Inc., 7.63%,
8/01/19 (a)

 

 

320

 

 

328,000

 

 

 

 

 

 

 

12,088,055

 

Food & Staples Retailing — 1.6%

 

 

 

 

 

 

 

CVS Caremark Corp., 6.30%,
6/01/62 (b)

 

 

2,900

 

 

2,827,500

 

Wal-Mart Stores, Inc. (c):

 

 

 

 

 

 

 

5.25%, 9/01/35

 

 

2,650

 

 

2,773,633

 

6.20%, 4/15/38

 

 

5,225

 

 

6,162,929

 

 

 

 

 

 

 

11,764,062

 

Food Products — 0.9%

 

 

 

 

 

 

 

Blue Merger Sub, Inc., 7.63%,
2/15/19 (a)

 

 

710

 

 

730,412

 

JBS USA LLC, 7.25%, 6/01/21 (a)

 

 

250

 

 

246,875

 

Kraft Foods, Inc.:

 

 

 

 

 

 

 

6.50%, 8/11/17

 

 

1,985

 

 

2,384,779

 

6.13%, 8/23/18

 

 

1,990

 

 

2,351,812

 

Smithfield Foods, Inc., 10.00%,
7/15/14

 

 

668

 

 

780,725

 

 

 

 

 

 

 

6,494,603

 

Gas Utilities — 0.1%

 

 

 

 

 

 

 

Targa Resources Partners LP,
6.88%, 2/01/21 (a)

 

 

820

 

 

820,000

 

Health Care Equipment & Supplies — 0.8%

 

 

 

 

 

 

 

Boston Scientific Corp.:

 

 

 

 

 

 

 

4.50%, 1/15/15

 

 

0.00

 

 

0.00

 

6.40%, 6/15/16

 

 

0.00

 

 

0.00

 

5.13%, 1/12/17

 

 

0.00

 

 

0.00

 

Fresenius US Finance II, Inc.,
9.00%, 7/15/15 (a)

 

 

4,250

 

 

4,823,750

 

Teleflex, Inc., 6.88%, 6/01/19

 

 

815

 

 

839,450

 

 

 

 

 

 

 

5,663,200

 

Health Care Providers & Services — 3.8%

 

 

 

 

 

 

 

Aetna, Inc., 6.75%, 12/15/37 (c)

 

 

4,075

 

 

4,891,031

 

 

 

 

 

 

 

 

 

Corporate Bonds

 

Par
(000)

 

Value

 

Health Care Providers & Services (concluded)

 

 

 

 

 

 

 

Aviv Healthcare Properties LP,
7.75%, 2/15/19 (a)

 

$

765

 

$

779,344

 

HCA, Inc.:

 

 

 

 

 

 

 

8.50%, 4/15/19

 

 

600

 

 

661,500

 

6.50%, 2/15/20 (f)

 

 

3,240

 

 

3,288,600

 

7.25%, 9/15/20

 

 

4,590

 

 

4,842,450

 

7.50%, 2/15/22 (f)

 

 

3,840

 

 

3,897,600

 

inVentiv Health, Inc., 10.00%,
8/15/18 (a)

 

 

840

 

 

819,000

 

Tenet Healthcare Corp.:

 

 

 

 

 

 

 

10.00%, 5/01/18

 

 

2,175

 

 

2,474,062

 

8.88%, 7/01/19

 

 

1,825

 

 

2,016,625

 

UnitedHealth Group, Inc., 6.88%,
2/15/38 (c)

 

 

4,075

 

 

4,932,392

 

 

 

 

 

 

 

28,602,604

 

Household Durables — 0.6%

 

 

 

 

 

 

 

Cemex Espana Luxembourg,
9.25%, 5/12/20 (a)

 

 

4,947

 

 

4,563,608

 

IT Services — 0.7%

 

 

 

 

 

 

 

Eagle Parent Canada, Inc., 8.63%,
5/01/19 (a)

 

 

1,910

 

 

1,833,600

 

First Data Corp. (a):

 

 

 

 

 

 

 

7.38%, 6/15/19

 

 

1,205

 

 

1,214,038

 

12.63%, 1/15/21

 

 

2,300

 

 

2,438,000

 

 

 

 

 

 

 

5,485,638

 

Independent Power Producers &
Energy Traders — 0.8%

 

 

 

 

 

 

 

AES Corp.:

 

 

 

 

 

 

 

9.75%, 4/15/16

 

 

1,620

 

 

1,854,900

 

7.38%, 7/01/21 (a)

 

 

705

 

 

729,675

 

Calpine Corp., 7.25%, 10/15/17 (a)

 

 

730

 

 

748,250

 

Energy Future Intermediate
Holding Co. LLC, 10.00%,
12/01/20

 

 

2,460

 

 

2,595,654

 

 

 

 

 

 

 

5,928,479

 

Insurance — 6.0%

 

 

 

 

 

 

 

AXA SA, 6.46%, 12/29/49 (a)(b)(e)

 

 

6,000

 

 

4,980,000

 

Ace Capital Trust II, 9.70%,
4/01/30

 

 

4,000

 

 

5,325,656

 

Aon Corp., 8.21%, 1/01/27

 

 

4,000

 

 

4,656,080

 

American International Group, Inc.:

 

 

 

 

 

 

 

6.40%, 12/15/20 (c)

 

 

2,800

 

 

3,071,905

 

8.18%, 5/15/68

 

 

1,300

 

 

1,417,000

 

The Dai-ichi Life Insurance Co. Ltd,
7.25%, 12/29/49 (a)(b)(e)

 

 

1,116

 

 

1,177,899

 

Fairfax Financial Holdings, Ltd.,
5.80%, 5/15/21 (a)

 

 

4,975

 

 

4,918,569

 

Genworth Financial, Inc., 7.63%,
9/24/21

 

 

1,615

 

 

1,542,325

 

Lincoln National Corp., 6.25%,
2/15/20 (c)

 

 

4,075

 

 

4,639,701

 

MPL 2 Acquisition Canco, Inc.,
9.88%, 8/15/18 (a)

 

 

790

 

 

791,975

 

 

 

 

 

 

 

 

 

 

BLACKROCK CREDIT ALLOCATION INCOME TRUST IV, INC.

JULY 31, 2011

3


 

 

 

 

 

Schedule of Investments (continued)

BlackRock Credit Allocation Income Trust IV, Inc. (BTZ)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Corporate Bonds

 

Par
(000)

 

Value

 

Insurance (concluded)

 

 

 

 

 

 

 

Northwestern Mutual Life
Insurance, 6.06%,
3/30/40 (a)(c)

 

$

5,500

 

$

6,039,264

 

Principal Financial Group, Inc.,
8.88%, 5/15/19

 

 

1,145

 

 

1,484,821

 

Prudential Financial, Inc., 6.63%,
12/01/37 (c)

 

 

4,075

 

 

4,575,047

 

 

 

 

 

 

 

44,620,242

 

Life Sciences Tools & Services — 1.7%

 

 

 

 

 

 

 

Bio-Rad Laboratories, Inc., 8.00%,
9/15/16

 

 

5,480

 

 

6,130,750

 

INC Research LLC, 11.50%,
7/15/19 (a)

 

 

1,155

 

 

1,155,000

 

Life Technologies Corp., 6.00%,
3/01/20

 

 

4,800

 

 

5,400,922

 

 

 

 

 

 

 

12,686,672

 

Machinery — 0.9%

 

 

 

 

 

 

 

Ingersoll-Rand Global Holding Co.,
Ltd., 9.50%, 4/15/14

 

 

4,075

 

 

4,900,253

 

Navistar International Corp.,
8.25%, 11/01/21

 

 

1,515

 

 

1,647,562

 

 

 

 

 

 

 

6,547,815

 

Media — 7.8%

 

 

 

 

 

 

 

AMC Networks, Inc., 7.75%,
7/15/21 (a)

 

 

1,375

 

 

1,447,187

 

CCH II LLC, 13.50%, 11/30/16

 

 

3,851

 

 

4,544,180

 

CSC Holdings LLC:

 

 

 

 

 

 

 

8.50%, 6/15/15

 

 

2,300

 

 

2,484,000

 

8.63%, 2/15/19

 

 

1,950

 

 

2,232,750

 

Cengage Learning Acquisitions,
Inc., 10.50%, 1/15/15 (a)(f)

 

 

2,635

 

 

2,252,925

 

Comcast Corp., 6.30%,
11/15/17 (c)

 

 

4,075

 

 

4,824,796

 

Cox Communications, Inc., 8.38%,
3/01/39 (a)

 

 

4,075

 

 

5,604,947

 

DIRECTV Holdings, LLC, 5.00%,
3/01/21

 

 

4,150

 

 

4,428,706

 

DISH DBS Corp., 7.00%, 10/01/13

 

 

1,950

 

 

2,101,125

 

Gannett Co., Inc., 9.38%,
11/15/17

 

 

3,100

 

 

3,448,750

 

Intelsat Bermuda Ltd.:

 

 

 

 

 

 

 

11.25%, 2/04/17

 

 

580

 

 

620,600

 

11.50%, 2/04/17 (a)(d)

 

 

430

 

 

462,250

 

11.50%, 2/04/17 (d)

 

 

550

 

 

591,250

 

Kabel BW Erste Beteiligungs
GmbH, 7.50%, 3/15/19 (a)

 

 

1,760

 

 

1,812,800

 

News America, Inc., 6.15%,
3/01/37

 

 

4,850

 

 

4,870,268

 

Time Warner Cable, Inc., 6.75%,
6/15/39

 

 

4,675

 

 

5,358,060

 

Time Warner, Inc., 7.70%,
5/01/32

 

 

4,900

 

 

6,133,604

 

Unitymedia Hessen GmbH & Co.
KG, 8.13%, 12/01/17 (a)

 

 

1,225

 

 

1,316,875

 

 

 

 

 

 

 

 

 

Corporate Bonds

 

Par
(000)

 

Value

 

Media (concluded)

 

 

 

 

 

 

 

Virgin Media Secured Finance Plc,
6.50%, 1/15/18

 

$

3,175

 

$

3,492,500

 

 

 

 

 

 

 

58,027,573

 

Metals & Mining — 2.3%

 

 

 

 

 

 

 

Alcoa, Inc., 5.40%, 4/15/21 (c)

 

 

4,090

 

 

4,251,551

 

Barrick Gold Corp., 2.90%,
5/30/16 (a)(c)

 

 

1,925

 

 

1,982,942

 

Barrick North America Finance
LLC, 5.70%, 5/30/41 (a)

 

 

2,275

 

 

2,338,761

 

Freeport-McMoRan Corp., 7.13%,
11/01/27

 

 

3,500

 

 

3,851,932

 

JMC Steel Group, 8.25%,
3/15/18 (a)

 

 

280

 

 

290,500

 

Novelis, Inc., 8.75%, 12/15/20

 

 

1,710

 

 

1,902,375

 

Teck Resources Ltd., 10.75%,
5/15/19

 

 

2,000

 

 

2,545,000

 

United States Steel Corp., 7.38%,
4/01/20

 

 

290

 

 

301,238

 

 

 

 

 

 

 

17,464,299

 

Multi-Utilities — 1.2%

 

 

 

 

 

 

 

CenterPoint Energy, Inc.:

 

 

 

 

 

 

 

5.95%, 2/01/17

 

 

3,600

 

 

4,117,021

 

6.50%, 5/01/18

 

 

3,950

 

 

4,644,995

 

 

 

 

 

 

 

8,762,016

 

Multiline Retail — 1.6%

 

 

 

 

 

 

 

JC Penney Co., Inc., 5.65%,
6/01/20

 

 

12,400

 

 

12,276,000

 

Oil, Gas & Consumable Fuels — 10.2%

 

 

 

 

 

 

 

Alpha Natural Resources, Inc.:

 

 

 

 

 

 

 

6.00%, 6/01/19

 

 

535

 

 

551,719

 

6.25%, 6/01/21

 

 

1,245

 

 

1,288,575

 

Anadarko Petroleum Corp.:

 

 

 

 

 

 

 

5.95%, 9/15/16

 

 

1,686

 

 

1,943,730

 

6.38%, 9/15/17

 

 

52

 

 

61,300

 

Arch Coal, Inc. (a):

 

 

 

 

 

 

 

7.00%, 6/15/19 (f)

 

 

370

 

 

387,575

 

7.25%, 6/15/21

 

 

1,195

 

 

1,254,750

 

BP Capital Markets Plc (c):

 

 

 

 

 

 

 

5.25%, 11/07/13

 

 

2,100

 

 

2,282,032

 

3.88%, 3/10/15

 

 

3,085

 

 

3,319,830

 

Buckeye Partners LP, 4.88%,
2/01/21

 

 

1,650

 

 

1,729,480

 

Chesapeake Energy Corp., 6.13%,
2/15/21

 

 

5,745

 

 

6,003,525

 

Consol Energy, Inc., 6.38%,
3/01/21 (a)

 

 

1,385

 

 

1,398,850

 

Copano Energy LLC, 7.13%,
4/01/21

 

 

930

 

 

953,250

 

Denbury Resources, Inc., 6.38%,
8/15/21

 

 

955

 

 

983,650

 

Enbridge Energy Partners LP,
9.88%, 3/01/19

 

 

2,425

 

 

3,271,989

 

 

 

 

 

 

 

 

 

 

BLACKROCK CREDIT ALLOCATION INCOME TRUST IV, INC.

JULY 31, 2011

4


 

 

 

 

 

Schedule of Investments (continued)

BlackRock Credit Allocation Income Trust IV, Inc. (BTZ)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Corporate Bonds

 

Par
(000)

 

Value

 

Oil, Gas & Consumable Fuels (concluded)

 

 

 

 

 

 

 

Energy XXI Gulf Coast, Inc., 7.75%,
6/15/19

 

$

1,700

 

$

1,714,875

 

Enterprise Products Operating LLC,
6.65%, 4/15/18

 

 

4,800

 

 

5,679,168

 

Forest Oil Corp.:

 

 

 

 

 

 

 

8.50%, 2/15/14

 

 

310

 

 

337,125

 

7.25%, 6/15/19

 

 

515

 

 

535,600

 

Hilcorp Energy I LP, 7.75%,
11/01/15 (a)

 

 

1,175

 

 

1,213,188

 

Kinder Morgan Energy Partners LP,
6.85%, 2/15/20

 

 

4,800

 

 

5,733,528

 

Linn Energy LLC, 7.75%, 2/01/21 (a)

 

 

1,740

 

 

1,853,100

 

Marathon Petroleum Corp., 3.50%,
3/01/16 (a)

 

 

2,250

 

 

2,342,837

 

OGX Petroleo e Gas Participacoes
SA, 8.50%, 6/01/18 (a)

 

 

1,950

 

 

2,055,300

 

ONEOK Partners LP, 8.63%,
3/01/19

 

 

4,075

 

 

5,295,450

 

Oasis Petroleum, Inc., 7.25%,
2/01/19 (a)

 

 

625

 

 

643,750

 

Petrobras International Finance
Co., 3.88%, 1/27/16

 

 

6,150

 

 

6,377,286

 

Petrohawk Energy Corp.:

 

 

 

 

 

 

 

10.50%, 8/01/14

 

 

1,020

 

 

1,160,250

 

6.25%, 6/01/19 (a)

 

 

1,180

 

 

1,367,325

 

Plains Exploration & Production Co.:

 

 

 

 

 

 

 

7.75%, 6/15/15

 

 

1,300

 

 

1,348,750

 

10.00%, 3/01/16

 

 

700

 

 

791,000

 

Precision Drilling Corp., 6.50%,
12/15/21 (a)

 

 

450

 

 

459,000

 

Premier Oil, 5.00%, 5/10/18

 

 

5,650

 

 

5,805,375

 

Range Resources Corp., 6.75%,
8/01/20

 

 

1,415

 

 

1,545,888

 

SM Energy Co., 6.63%,
2/15/19 (a)

 

 

795

 

 

818,850

 

SandRidge Energy, Inc., 7.50%,
3/15/21 (a)

 

 

1,200

 

 

1,260,000

 

Western Gas Partners LP, 5.38%,
6/01/21

 

 

2,525

 

 

2,688,443

 

 

 

 

 

 

 

76,456,343

 

Paper & Forest Products — 2.6%

 

 

 

 

 

 

 

Georgia-Pacific LLC, 8.25%,
5/01/16 (a)

 

 

3,955

 

 

4,501,696

 

International Paper Co.:

 

 

 

 

 

 

 

7.50%, 8/15/21 (c)

 

 

3,950

 

 

4,825,537

 

8.70%, 6/15/38

 

 

3,100

 

 

4,044,170

 

7.30%, 11/15/39

 

 

4,075

 

 

4,682,717

 

Longview Fibre Paper & Packaging,
Inc., 8.00%, 6/01/16 (a)

 

 

545

 

 

558,625

 

Verso Paper Holdings LLC,
11.50%, 7/01/14

 

 

590

 

 

626,875

 

 

 

 

 

 

 

19,239,620

 

Pharmaceuticals — 6.2%

 

 

 

 

 

 

 

Bristol-Myers Squibb Co., 5.88%,
11/15/36 (c)

 

 

3,549

 

 

4,090,215

 

 

 

 

 

 

 

 

 

Corporate Bonds

 

Par
(000)

 

Value

 

Pharmaceuticals (concluded)

 

 

 

 

 

 

 

GlaxoSmithKline Capital, Inc.,
6.38%, 5/15/38 (c)

 

$

10,100

 

$

12,226,939

 

Merck & Co., Inc. (c):

 

 

 

 

 

 

 

6.50%, 12/01/33

 

 

2,885

 

 

3,549,015

 

6.55%, 9/15/37

 

 

6,945

 

 

8,590,534

 

Pfizer, Inc., 7.20%, 3/15/39 (c)

 

 

10,000

 

 

13,279,770

 

Valeant Pharmaceuticals
International, 6.50%,
7/15/16 (a)

 

 

450

 

 

441,000

 

Watson Pharmaceuticals, Inc.,
6.13%, 8/15/19

 

 

3,495

 

 

4,065,321

 

 

 

 

 

 

 

46,242,794

 

Real Estate Investment Trusts
(REITs) — 2.5%

 

 

 

 

 

 

 

AvalonBay Communities, Inc.,
6.10%, 3/15/20

 

 

4,075

 

 

4,660,439

 

Developers Diversified Realty Corp.:

 

 

 

 

 

 

 

4.75%, 4/15/18

 

 

1,025

 

 

1,039,393

 

7.88%, 9/01/20

 

 

1,325

 

 

1,567,949

 

ERP Operating LP, 5.75%,
6/15/17

 

 

4,080

 

 

4,623,652

 

HCP, Inc., 5.38%, 2/01/21

 

 

1,675

 

 

1,793,513

 

UDR, Inc., 4.25%, 6/01/18

 

 

2,675

 

 

2,716,843

 

Ventas Realty LP, 4.75%, 6/01/21

 

 

1,880

 

 

1,908,920

 

 

 

 

 

 

 

18,310,709

 

Real Estate Management &
Development — 0.2%

 

 

 

 

 

 

 

Realogy Corp., 7.88%, 2/15/19 (a)

 

 

980

 

 

965,300

 

Shea Homes LP, 8.63%,
5/15/19 (a)

 

 

415

 

 

413,963

 

 

 

 

 

 

 

1,379,263

 

Road & Rail — 1.6%

 

 

 

 

 

 

 

Avis Budget Car Rental LLC,
8.25%, 1/15/19

 

 

1,080

 

 

1,113,750

 

Florida East Coast Railway Corp.,
8.13%, 2/01/17 (a)

 

 

320

 

 

336,000

 

The Hertz Corp., 6.75%,
4/15/19 (a)

 

 

1,554

 

 

1,554,000

 

Norfolk Southern Corp., 6.00%,
3/15/05

 

 

8,500

 

 

8,735,620

 

 

 

 

 

 

 

11,739,370

 

Semiconductors & Semiconductor
Equipment — 0.5%

 

 

 

 

 

 

 

Advanced Micro Devices, Inc.,
7.75%, 8/01/20

 

 

1,300

 

 

1,368,250

 

KLA-Tencor Corp., 6.90%, 5/01/18

 

 

2,208

 

 

2,540,401

 

 

 

 

 

 

 

3,908,651

 

Specialty Retail — 1.2%

 

 

 

 

 

 

 

Academy Ltd., 9.25%,
8/01/19 (a)(f)

 

 

1,115

 

 

1,131,725

 

AutoNation, Inc., 6.75%, 4/15/18

 

 

2,775

 

 

2,983,125

 

Best Buy Co., Inc., 5.50%,
3/15/21

 

 

2,450

 

 

2,467,473

 

 

 

 

 

 

 

BLACKROCK CREDIT ALLOCATION INCOME TRUST IV, INC.

JULY 31, 2011

5


 

 

 

 

 

Schedule of Investments (continued)

BlackRock Credit Allocation Income Trust IV, Inc. (BTZ)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Corporate Bonds

 

Par
(000)

 

Value

 

Specialty Retail (concluded)

 

 

 

 

 

 

 

Claire’s Escrow Corp., 8.88%,
3/15/19 (a)

 

$

770

 

$

723,800

 

Limited Brands, Inc., 7.00%,
5/01/20

 

 

1,370

 

 

1,455,625

 

 

 

 

 

 

 

8,761,748

 

Tobacco — 2.9%

 

 

 

 

 

 

 

Altria Group, Inc.:

 

 

 

 

 

 

 

9.70%, 11/10/18

 

 

4,075

 

 

5,492,566

 

9.25%, 8/06/19

 

 

4,780

 

 

6,379,106

 

10.20%, 2/06/39

 

 

6,607

 

 

9,875,113

 

 

 

 

 

 

 

21,746,785

 

Wireless Telecommunication
Services — 2.4%

 

 

 

 

 

 

 

American Tower Corp., 4.50%,
1/15/18

 

 

3,200

 

 

3,330,544

 

Cricket Communications, Inc.,
7.75%, 5/15/16

 

 

780

 

 

831,675

 

Crown Castle Towers LLC (a):

 

 

 

 

 

 

 

5.50%, 1/15/37

 

 

1,975

 

 

2,158,837

 

6.11%, 1/15/40

 

 

2,330

 

 

2,601,951

 

Intelsat Jackson Holdings SA (a):

 

 

 

 

 

 

 

7.25%, 4/01/19

 

 

320

 

 

324,000

 

7.50%, 4/01/21

 

 

1,020

 

 

1,035,300

 

Nextel Communications, Inc.,
Series E, 6.88%, 10/31/13

 

 

1,040

 

 

1,044,550

 

SBA Tower Trust, 5.10%,
4/15/17 (a)

 

 

6,250

 

 

6,484,375

 

 

 

 

 

 

 

17,811,232

 

Total Corporate Bonds – 107.8%

 

 

 

 

 

803,823,320

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Securities

 

 

 

 

 

 

 

Capital Trusts

 

 

 

 

 

 

 

Capital Markets — 3.5%

 

 

 

 

 

 

 

Credit Suisse Guernsey Ltd.,
5.86% (b)(e)

 

 

1,050

 

 

976,500

 

State Street Capital Trust III,
5.24% (b)(e)

 

 

1,740

 

 

1,739,426

 

State Street Capital Trust IV,
1.25%, 6/01/77 (b)

 

 

28,195

 

 

23,162,503

 

 

 

 

 

 

 

25,878,429

 

Commercial Banks — 4.7%

 

 

 

 

 

 

 

ABN AMRO North America Holding
Preferred Capital Repackaging
Trust I, 6.52% (a)(b)(e)

 

 

5,600

 

 

5,124,000

 

BB&T Capital Trust IV, 6.82%,
6/12/77 (b)

 

 

15,300

 

 

15,491,250

 

 

 

 

 

 

 

 

 

Capital Trusts

 

Par
(000)

 

Value

 

Commercial Banks (concluded)

 

 

 

 

 

 

 

Barclays Bank Plc, 7.43% (a)(b)(e)

 

 

1,100

 

 

1,102,750

 

HSBC Capital Funding LP/Jersey
Channel Islands, 10.18% (a)(b)(c)(e)

 

$

7,000

 

$

9,100,000

 

National City Preferred Capital Trust I,
12.00% (b)(e)

 

 

3,713

 

 

4,055,524

 

 

 

 

 

 

 

34,873,524

 

Diversified Financial Services — 3.9%

 

 

 

 

 

 

 

ING Capital Funding Trust III,
3.85% (b)(e)

 

 

2,950

 

 

2,759,268

 

JPMorgan Chase Capital XXI,
Series U, 1.20%, 2/02/37 (b)

 

 

12,875

 

 

10,331,814

 

JPMorgan Chase Capital XXIII,
1.26%, 5/15/77 (b)

 

 

20,695

 

 

16,166,499

 

 

 

 

 

 

 

29,257,581

 

Electric Utilities — 0.5%

 

 

 

 

 

 

 

PPL Capital Funding, 6.70%,
3/30/67 (b)

 

 

3,900

 

 

3,843,450

 

Insurance — 4.4%

 

 

 

 

 

 

 

American General Capital II,
8.50%, 7/01/30

 

 

300

 

 

330,000

 

Chubb Corp., 6.38%, 3/29/67 (b)(c)

 

 

4,000

 

 

4,130,000

 

Liberty Mutual Group, Inc.,
10.75%, 6/15/88 (a)(b)

 

 

4,000

 

 

5,290,000

 

Lincoln National Corp., 7.00%,
5/17/66 (b)

 

 

4,255

 

 

4,297,550

 

MetLife, Inc., 6.40%, 12/15/66

 

 

4,550

 

 

4,509,214

 

Reinsurance Group of America,
6.75%, 12/15/65 (b)

 

 

7,000

 

 

6,799,625

 

Swiss Re Capital I LP, 6.85%, (a)(b)(e)

 

 

3,000

 

 

2,941,281

 

UBS Preferred Funding Trust V,
6.50%, 5/15/57

 

 

4,000

 

 

3,920,000

 

ZFS Finance (USA) Trust IV, 5.88%,
5/09/62 (a)(b)

 

 

599

 

 

604,169

 

 

 

 

 

 

 

32,821,839

 

Oil, Gas & Consumable Fuels — 1.2%

 

 

 

 

 

 

 

Enterprise Products Operating LLC,
8.38%, 8/01/66 (b)

 

 

4,500

 

 

4,893,750

 

TransCanada PipeLines Ltd.,
6.35%, 5/15/67 (b)

 

 

4,000

 

 

4,097,212

 

 

 

 

 

 

 

8,990,962

 

Total Capital Trusts – 18.2%

 

 

 

 

 

135,665,785

 

 

 

 

 

 

 

 

 

BLACKROCK CREDIT ALLOCATION INCOME TRUST IV, INC.

JULY 31, 2011

6


 

 

 

Schedule of Investments (continued)

BlackRock Credit Allocation Income Trust IV, Inc. (BTZ)
(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Preferred Stocks

 

Shares

 

Value

 

Auto Components — 0.1%

 

 

 

 

 

 

 

Dana Holding Corp., 4.00% (a)

 

 

7,000

 

$

1,008,000

 

Commercial Banks — 0.2%

 

 

 

 

 

 

 

SG Preferred Capital II, 6.30% (a)

 

 

2,000

 

 

1,968,125

 

Diversified Financial Services — 0.4%

 

 

 

 

 

 

 

Ally Financial, Inc., 7.00% (a)

 

 

3,130

 

 

2,843,605

 

Real Estate Investment Trusts
(REITs) — 1.1%

 

 

 

 

 

 

 

Sovereign Real Estate Investment
Trust, 12.00% (a)

 

 

7,000

 

 

8,263,850

 

Thrifts & Mortgage Finance — 0.0%

 

 

 

 

 

 

 

Fannie Mae, Series S, 8.25% (g)

 

 

23,000

 

 

54,740

 

Freddie Mac, Series Z, 8.38% (g)

 

 

23,000

 

 

66,700

 

 

 

 

 

 

 

121,440

 

Wireless Telecommunication
Services — 1.6%

 

 

 

 

 

 

 

Centaur Funding Corp., 9.08%

 

 

10,000

 

 

11,668,750

 

Total Preferred Stocks – 3.4%

 

 

 

 

 

25,873,770

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trust Preferreds

 

 

 

 

 

 

 

Diversified Financial Services — 0.4%

 

 

 

 

 

 

 

GMAC Capital Trust I, Series 2,
8.13%, 2/15/40 (b)

 

 

2,743

 

 

2,810,514

 

Total Trust Preferreds – 0.4%

 

 

 

 

 

2,810,514

 

Total Preferred Securities – 22.0%

 

 

 

 

 

164,350,069

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable Municipal Bonds

 

Par
(000)

 

 

 

 

City of Chicago Illinois, RB, 6.85%,
1/01/38

 

$

5,000

 

 

5,269,100

 

Metropolitan Transportation
Authority, RB, 6.55%, 11/15/31

 

 

4,075

 

 

4,582,134

 

State of California, GO, Build
America Bonds, 7.35%,
11/01/39

 

 

2,050

 

 

2,478,839

 

Total Taxable Municipal Bonds – 1.6%

 

 

 

 

 

12,330,073

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government Sponsored
Agency Securities

 

Par
(000)

 

Value

 

Agency Obligations — 0.3%

 

 

 

 

 

 

 

Fannie Mae, 10/09/19

 

$

2,765

 

$

1,998,661

 

Total U.S. Government Sponsored
Agency Securities – 0.3%

 

 

 

 

 

1,998,661

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury Obligations

 

 

 

 

 

 

 

US Treasury Note, 4.75%,
2/15/41 (c)

 

 

4,505

 

 

4,989,990

 

Total U.S. Treasury Obligations – 0.7%

 

 

 

 

 

4,989,990

 

Total Long-Term Investments
(Cost – $967,560,918) – 133.4%

 

 

 

 

 

995,214,610

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 

BlackRock Liquidity Funds, TempFund,
Institutional Class, 0.05% (c)(d)

 

 

358

 

 

358

 

Total Short-Term Securities
(Cost – $358) – 0.0%

 

 

 

 

 

358

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Options Purchased

 

Contracts

 

 

 

 

Over-the-Counter Put Options — 0.1%

 

 

 

 

 

 

 

S&P 500 Index, Strike Price USD
1,250, Expires 9/17/11, Broker
Credit Suisse International

 

 

196

 

 

511,560

 

Total Options Purchased
(Cost – $946,680) – 0.1%

 

 

 

 

 

511,560

 

Total Investments Before Outstanding
Options Written
(Cost – $968,530,733*) – 133.5%

 

 

 

 

 

995,726,528

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Options Written

 

Notional
Amount
(000)

 

 

 

 

Over-the-Counter Call Swaptions — (0.4)%

 

 

 

 

 

 

 

Pay a fixed rate of 4.06% and receive
a floating rate based on 3-month
LIBOR, Expires 4/16/12, Broker
Deutsche Bank AG

 

$

13,000

 

 

(1,060,478

)

Pay a fixed rate of 4.75% and receive
a floating rate based on 3-month
LIBOR, Expires 3/24/14, Broker
Citibank NA

 

 

17,000

 

 

(1,602,241

)

 

 

 

 

 

 

(2,662,719

)

 

 

 

 

 

 

BLACKROCK CREDIT ALLOCATION INCOME TRUST IV, INC.

JULY 31, 2011

7


 

 

 

Schedule of Investments (continued)

BlackRock Credit Allocation Income Trust IV, Inc. (BTZ)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

 

 

Options Written

 

Notional
Amount
(000)

 

Value

 

Over-the-Counter Put Swaptions — (0.1)%

 

 

 

 

 

 

 

Receive a fixed rate of 4.06% and
pay a floating rate based on the 3-
month LIBOR, Expires 4/16/12,
Broker Deutsche Bank AG

 

$

13,000

 

$

(129,266

)

Receive a fixed rate of 4.75% and
pay a floating rate based on 3-
month LIBOR, Expires 3/24/14,
Broker Citibank NA

 

 

17,000

 

 

(669,395

)

Sold credit default protection on Dow
Jones CDX North America
Investment Grade Series 16, Strike
Price USD 120, Expires 09/21/11,
Broker Credit Suisse International

 

 

245,000

 

 

(371,631

)

 

 

 

 

 

 

(1,170,292

)

Total Options Written
(Premiums Received – $3,805,700) – (0.5)%

 

 

 

 

 

(3,833,011

)

Total Investments, Net of Outstanding
Options Written – 133.0%

 

 

 

 

 

991,893,517

 

Liabilities in Excess of Other Assets – (33.0)%

 

 

 

 

 

(246,230,992

)

Net Assets – 100.0%

 

 

 

 

$

745,662,525

 

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of July 31, 2011, as computed for federal income tax purposes, were as follows:

 

 

 

 

 

Aggregate cost

 

$

967,827,503

 

Gross unrealized appreciation

 

$

44,424,767

 

Gross unrealized depreciation

 

 

(16,525,742

)

Net unrealized appreciation

 

$

27,899,025

 

 

 

(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)

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

(c)

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

(d)

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

(e)

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

(f)

When-issued security. Unsettled when-issued transactions were as follows:


 

 

 

 

 

 

 

 

Counterparty

 

Value

 

Unrealized
Appreciation
(Depreciation)

 

Credit Suisse Securities

 

$

1,409,819

 

$

13,945

 

Deutsche Bank Securities

 

$

387,575

 

$

(925

)

Morgan Stanley Co., Inc.

 

$

2,252,925

 

$

(411,482

)

JPMorgan Securities

 

$

7,186,200

 

$

106,200

 

 

 

(g)

Non-income producing security.

 

 

•

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


 

 

 

 

 

 

 

 

 

 

 

 

 

 

Affiliate

 

Shares
Held at
October 31,
2010

 

Net
Activity

 

Shares
Held at
July, 31
2011

 

Income

 

BlackRock
Liquidity
Funds,
TempFund,
Institutional
Class

 

 

26,924,664

 

 

(26,924,306

)

 

358

 

$

23,493

 

 

 

•

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


 

 

 

 

 

 

BLACKROCK CREDIT ALLOCATION INCOME TRUST IV, INC.

JULY 31, 2011

8


 

 

 

 

Schedule of Investments (continued)

BlackRock Credit Allocation Income Trust IV, Inc. (BTZ)

 

 

•

Reverse repurchase agreements outstanding as of July 31, 2011 were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Counterparty

 

Interest
Rate

 

Trade
Date

 

Maturity
Date1

 

Net Closing
Amount

 

Face
Amount

 

Credit Suisse Securities
(USA), LLC

 

0.35%

 

4/11/11

 

Open

 

$

3,361,624

 

$

3,358,000

 

Credit Suisse Securities
(USA), LLC

 

0.35%

 

4/12/11

 

Open

 

 

5,122,941

 

 

5,117,468

 

Credit Suisse Securities
(USA), LLC

 

0.35%

 

4/13/11

 

Open

 

 

4,380,168

 

 

4,375,531

 

Barclays Capital, Inc.

 

0.35%

 

4/14/11

 

Open

 

 

4,702,808

 

 

4,697,875

 

UBS AG

 

0.38%

 

4/18/11

 

Open

 

 

5,492,273

 

 

5,486,250

 

Deutsche Bank Securities
Inc.

 

0.35%

 

4/21/11

 

Open

 

 

4,405,322

 

 

4,401,000

 

Deutsche Bank Securities
Inc.

 

0.35%

 

4/29/11

 

Open

 

 

1,671,010

 

 

1,669,500

 

UBS AG

 

0.35%

 

4/29/11

 

Open

 

 

5,239,233

 

 

5,234,500

 

BNP Paribas

 

0.39%

 

5/10/11

 

Open

 

 

3,191,179

 

 

3,188,347

 

Credit Suisse Securities
(USA), LLC

 

0.35%

 

5/10/11

 

Open

 

 

3,400,634

 

 

3,397,925

 

UBS AG

 

0.38%

 

5/10/11

 

Open

 

 

23,916,133

 

 

23,895,450

 

UBS AG

 

0.38%

 

5/18/11

 

Open

 

 

5,644,405

 

 

5,640,000

 

UBS AG

 

0.38%

 

5/19/11

 

Open

 

 

2,998,309

 

 

2,996,000

 

Credit Suisse Securities
(USA), LLC

 

0.40%

 

5/19/11

 

Open

 

 

2,101,703

 

 

2,100,000

 

Credit Suisse Securities
(USA), LLC

 

0.40%

 

5/20/11

 

Open

 

 

10,361,658

 

 

10,353,375

 

UBS AG

 

0.35%

 

5/31/11

 

Open

 

 

15,263,797

 

 

15,254,750

 

UBS AG

 

0.38%

 

5/31/11

 

Open

 

 

12,307,920

 

 

12,300,000

 

UBS AG

 

0.35%

 

6/09/11

 

Open

 

 

14,895,026

 

 

14,887,500

 

UBS AG

 

0.38%

 

6/10/11

 

Open

 

 

15,899,580

 

 

15,891,025

 

UBS AG

 

0.38%

 

6/14/11

 

Open

 

 

7,181,061

 

 

7,177,500

 

Credit Suisse Securities
(USA), LLC

 

0.35%

 

6/15/11

 

Open

 

 

9,484,865

 

 

9,480,625

 

UBS AG

 

0.38%

 

6/15/11

 

Open

 

 

15,056,151

 

 

15,048,844

 

BNP Paribas

 

0.35%

 

6/17/11

 

Open

 

 

2,064,883

 

 

2,064,000

 

UBS AG

 

0.37%

 

6/22/11

 

Open

 

 

8,251,244

 

 

8,247,938

 

UBS AG

 

0.40%

 

6/22/11

 

Open

 

 

4,610,822

 

 

4,608,825

 

Deutsche Bank Securities
Inc.

 

0.35%

 

6/27/11

 

Open

 

 

2,205,729

 

 

2,205,000

 

UBS AG

 

0.37%

 

6/27/11

 

Open

 

 

5,201,817

 

 

5,200,000

 

Deutsche Bank Securities
Inc.

 

0.38%

 

6/28/11

 

Open

 

 

1,154,842

 

 

1,154,440

 

UBS AG

 

0.35%

 

6/28/11

 

Open

 

 

1,858,221

 

 

1,857,625

 

UBS AG

 

0.38%

 

6/29/11

 

Open

 

 

6,564,717

 

 

6,562,500

 

UBS AG

 

0.31%

 

6/30/11

 

Open

 

 

4,155,171

 

 

4,154,062

 

BNP Paribas

 

0.35%

 

7/01/11

 

Open

 

 

4,581,636

 

 

4,580,300

 

Credit Suisse Securities
(USA), LLC

 

0.35%

 

7/05/11

 

Open

 

 

8,848,486

 

 

8,846,250

 

UBS AG

 

0.35%

 

7/11/11

 

Open

 

 

4,008,979

 

 

4,008,200

 

BNP Paribas

 

0.35%

 

7/12/11

 

Open

 

 

4,553,216

 

 

4,552,375

 

UBS AG

 

0.32%

 

7/12/11

 

Open

 

 

3,774,862

 

 

3,774,225

 

Deutsche Bank Securities
Inc.

 

0.35%

 

7/20/11

 

Open

 

 

13,831,354

 

 

13,829,875

 

Deutsche Bank Securities
Inc.

 

0.17%

 

7/29/11

 

Open

 

 

5,011,860

 

 

5,011,813

 

Total

 

 

 

 

 

 

 

$

256,755,639

 

$

256,608,893

 

1 Certain agreements have no stated maturity and can be terminated by either party at any time.

 

 

•

Financial futures contracts purchased as of July 31, 2011 were as follows:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contracts

 

Issue

 

Exchange

 

Expiration

 

Notional
Value

 

Unrealized
Appreciation

 

695

 

2-Year US Treasury Note

 

Chicago Board of Trade

 

September 2011

 

$

152,492,570

 

$

353,134

 

 

 

 

 

 

 

 

 

 

BLACKROCK CREDIT ALLOCATION INCOME TRUST IV, INC.

JULY 31, 2011

9


 

 

 

 

Schedule of Investments (continued)

BlackRock Credit Allocation Income Trust IV, Inc. (BTZ)


 

 

•

Financial futures contracts sold as of July 31, 2011 were as follows:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contracts

 

Issue

 

Exchange

 

Expiration

 

Notional
Value

 

Unrealized
Appreciation

 

373

 

5-Year US Treasury Note

 

Chicago Board of Trade

 

September 2011

 

$

44,132,698

 

$

(1,166,404

)

1,055

 

10-Year US Treasury Note

 

Chicago Board of Trade

 

September 2011

 

 

129,531,170

 

 

(3,069,143

)

12

 

30-Year US Treasury Bond

 

Chicago Board of Trade

 

September 2011

 

 

1,493,664

 

 

(43,836

)

34

 

Ultra Long US Treasury Bond

 

Chicago Board of Trade

 

September 2011

 

 

4,356,185

 

 

(129,690

)

Total

 

 

 

 

 

 

 

 

 

 

$

(4,409,073

)

 

 

•

Credit default swaps on single-name issues - buy protection outstanding as of July 31, 2011 were as follows:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuer

 

Pay
Fixed
Rate

 

Counterparty

 

Expiration
Date

 

Notional
Amount
(000)

 

Unrealized
Appreciation

 

Computer Sciences Corp.

 

1.00%

 

JPMorgan Chase & Co.

 

6/20/16

 

$

2,210

 

$

12,567

 

Republic of Finland

 

0.25%

 

Deutsche Bank AG

 

6/20/16

 

 

12,275

 

 

94,382

 

Republic of Finland

 

0.25%

 

Royal Bank of Scotland Plc

 

6/20/16

 

 

9,800

 

 

75,379

 

Arrow Electronics Inc.

 

1.00%

 

Credit Suisse Securities (USA) LLC

 

9/20/16

 

 

2,365

 

 

3,283

 

Goldman Sachs Group Inc.

 

1.00%

 

Credit Suisse Securities (USA) LLC

 

9/20/16

 

 

14,750

 

 

23,200

 

Total

 

 

 

 

 

 

 

 

 

 

$

208,811

 

 

 

•

Credit default swaps on single-name issues - sold protection outstanding as of July 31, 2011 were as follows:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuer

 

Receive
Fixed
Rate

 

Counterparty

 

Expiration
Date

 

Credit
Rating1

 

Notional
Amount
(000)2

 

Unrealized
Appreciation
(Depreciation)

 

Aviva USA Corp.

 

1.00%

 

Deutsche Bank AG

 

5/25/12

 

A-

 

$

4,525

 

$

(530

)

Citigroup Inc.

 

1.00%

 

Credit Suisse Securities (USA) LLC

 

9/20/16

 

A

 

 

14,750

 

 

(45,296

)

MetLife, Inc.

 

1.00%

 

Deutsche Bank AG

 

3/20/18

 

A-

 

 

1,500

 

 

12,490

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

$

(33,336

)

 

 

 

 

1

Using Standard & Poor’s rating.

 

2

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


 

 

•

Interest rate swaps outstanding as of July 31, 2011 were as follows:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed
Rate

 

Floating
Rate

 

Counterparty

 

Expiration
Date

 

Notional
Amount
(000)

 

Unrealized
Appreciation
(Depreciation)

 

0.25% (a)

 

3-month LIBOR

 

Citibank NA

 

3/30/13

 

USD

98,100

 

 

(707,133

)

0.25% (a)

 

3-month LIBOR

 

Deutsche Bank AG

 

7/21/13

 

USD

49,100

 

 

(63,577

)

0.25% (a)

 

3-month LIBOR

 

Deutsche Bank AG

 

7/22/13

 

USD

44,900

 

 

(50,822

)

2.32% (b)

 

3-month LIBOR

 

Citibank NA

 

3/28/16

 

USD

6,900

 

 

256,514

 

0.25% (a)

 

3-month LIBOR

 

Citibank NA

 

4/14/41

 

USD

2,800

 

 

(274,822

)

0.28% (a)

 

3-month LIBOR

 

Goldman Sachs International

 

4/14/41

 

USD

4,000

 

 

(418,877

)

0.28% (a)

 

3-month LIBOR

 

Deutsche Bank AG

 

4/15/41

 

USD

5,000

 

 

(502,247

)

0.26% (a)

 

3-month LIBOR

 

Citibank NA

 

5/19/41

 

USD

2,000

 

 

(57,640

)

0.25% (a)

 

3-month LIBOR

 

Citibank NA

 

7/21/41

 

USD

14,000

 

 

(325,733

)

3.97% (b)

 

3-month LIBOR

 

Citibank NA

 

7/25/41

 

USD

5,400

 

 

160,521

 

Total

 

 

 

 

 

 

 

 

 

 

$

(1,983,816

)

 

 

 

 

(a)

Pays a fixed interest rate and receives floating rate.

 

(b)

Pays a floating interest rate and receives fixed rate.


 

 

 

 

 

 

 

 

 

BLACKROCK CREDIT ALLOCATION INCOME TRUST IV, INC.

JULY 31, 2011

10


 

 

 

 

Schedule of Investments July 31, 2011

BlackRock Credit Allocation Income Trust IV (BTZ)

 

 

 

•

Fair Value Measurements - Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs are categorized in three broad levels for financial reporting purposes as follows:

 

 

 

 

•

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

 

 

 

 

•

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

 

 

 

 

•

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

The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and does not necessarily correspond to the Trust’s perceived risk of investing in those securities. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to the Trust’s most recent financial statements as contained in its semi-annual report.

The following tables summarize the inputs used as of July 31, 2011 in determining the fair valuation of the Trust’s investments and derivative financial instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset-Backed Securities

 

 

—

 

$

4,092,497

 

$

3,630,000

 

$

7,722,497

 

Corporate Bonds

 

 

—

 

 

803,823,320

 

 

—

 

 

803,823,320

 

Preferred Securities

 

$

2,931,954

 

 

161,418,115

 

 

—

 

 

164,350,069

 

Taxable Municipal Bonds

 

 

—

 

 

12,330,073

 

 

—

 

 

12,330,073

 

U.S. Government Sponsored Agency Securities

 

 

—

 

 

1,998,661

 

 

—

 

 

1,998,661

 

U.S. Treasury Obligations

 

 

—

 

 

4,989,990

 

 

—

 

 

4,989,990

 

Short-Term Securities

 

 

358

 

 

—

 

 

—

 

 

358

 

Total

 

$

2,932,312

 

$

988,652,656

 

$

3,630,000

 

$

995,214,968

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation
Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Derivative Financial Instruments1

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts

 

$

353,134

 

$

417,035

 

 

—

 

$

770,169

 

Credit contracts

 

 

—

 

 

221,301

 

 

—

 

 

221,301

 

Equity contracts

 

 

511,560

 

 

—

 

 

—

 

 

511,560

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts

 

 

(4,409,073

)

 

(5,862,231

)

 

—

 

 

(10,271,304

)

Credit contracts

 

 

—

 

 

(416,927

)

$

(530

)

 

(417,457

)

Total

 

$

(3,544,379

)

$

(5,640,822

)

$

(530

)

$

(9,185,731

)

 

 

 

 

1

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


 

 

 

 

 

 

 

JULY 31, 2011

11

Item 2 –

Controls and Procedures

 

 

2(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 13a-15(b) under the Securities Exchange Act of 1934, as amended.

 

 

2(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 registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

 

Item 3 –

Exhibits

 

 

 

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 Credit Allocation Income Trust IV

 

 

 

 By: /s/ John M. Perlowski

 

 

 

John M. Perlowski 

 

 

Chief Executive Officer (principal executive officer) of 

 

 

BlackRock Credit Allocation Income Trust IV 

 

 

 

Date: September 26, 2011 

 

 

 

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/ John M. Perlowski

 

 

 

John M. Perlowski 

 

 

Chief Executive Officer (principal executive officer) of 

 

 

BlackRock Credit Allocation Income Trust IV 

 

 

 

Date: September 26, 2011 

 

 

 

 By: /s/ Neal J. Andrews

 

 

 

Neal J. Andrews 

 

 

Chief Financial Officer (principal financial officer) of 

 

 

BlackRock Credit Allocation Income Trust IV 

 

 

 

 

Date: September 26, 2011