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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 Credit Allocation Income Trust IV (BTZ)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: Anne F. Ackerley, 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: 10/31/2010

Date of reporting period: 04/30/2010

Item 1 – Report to Stockholders



Semi-Annual Report

APRIL 30, 2010 I (UNAUDITED)

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

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

BlackRock Credit Allocation Income Trust III (BPP)

BlackRock Credit Allocation Income Trust IV (BTZ)

BlackRock Floating Rate Income Trust (BGT)

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  9 
Derivative Financial Instruments  10 
Financial Statements:   
   Schedules of Investments  11 
   Statements of Assets and Liabilities  38 
   Statements of Operations  39 
   Statements of Changes in Net Assets  40 
   Statement of Cash Flows  42 
Financial Highlights  44 
Notes to Financial Statements  48 
Officers and Directors  58 
Additional Information  59 

2 SEMI-ANNUAL REPORT

APRIL 30, 2010


Dear Shareholder

Although overall global economic and financial conditions have generally improved over the past year, the period ended with high levels of market volatility

and diminishing investor confidence sparked by the sovereign debt crisis in Europe, concerns over the strength of the economic recovery and uncertainty

surrounding the future of interest rate policies. Additionally, as the period drew to a close, the increasing likelihood of more stringent financial market regula-

tions added to the overall sense of investment uncertainty. Despite the uneven nature of recent market conditions, we continue to believe that the “Great

Recession” likely ended at some point last summer, thanks primarily to massive fiscal and monetary stimulus, and that the global economy remains in

recovery mode.

Global equity markets bottomed in early 2009 and since that time have moved unevenly higher as investors were lured back into the markets by depressed

valuations, desire for higher yields and improvements in corporate earnings prospects. There have been several corrections along the way and volatility levels

have remained elevated — reflections of mixed economic data, lingering deflation issues (especially in Europe) and uncertainty surrounding financial regula-

tions. On balance, however, improving corporate revenues and profits and a positive macro backdrop helped push stock prices higher over the last twelve

and six months. From a geographic perspective, US equities have outpaced their international counterparts in recent months, as the domestic economic

recovery has been more pronounced and as credit-related issues have held European markets down.

Within fixed income markets, yields have been moving unevenly as improving economic conditions have been acting to push Treasury yields higher (and

prices correspondingly lower), while concerns over ongoing deflation threats have acted as a counterweight. As the period drew to a close, Treasury yields

were falling as investors flocked to the “safe haven” asset class in the face of escalating uncertainty. Over the course of the last twelve and six months,

however, Treasuries underperformed other areas of the bond market, particularly the high yield sector, which has been benefiting from increased investor

demand. Meanwhile, municipal bonds slightly outperformed taxable sectors over both the six- and twelve-month periods thanks to continued high demand

levels, but have continued to face the headwinds of ongoing state and local budget problems. As in the taxable arena, high yield municipals have been out-

performing the rest of the market.

Regarding cash investments, yields on money market securities remain near all-time lows (producing returns only marginally above zero percent), with

the Federal Open Market Committee reiterating that economic circumstances are likely to necessitate an accommodative interest rate stance for an

“extended period.”

Against this backdrop, the major market averages posted the following returns:     
Total Returns as of April 30, 2010  6-month  12-month 
US equities (S&P 500 Index)  15.66%  38.84% 
Small cap US equities (Russell 2000 Index)  28.17  48.95 
International equities (MSCI Europe, Australasia, Far East Index)  2.48  34.43 
3-month Treasury bill (BofA Merrill Lynch 3-Month Treasury Bill Index)  0.04  0.15 
US Treasury securities (BofA Merrill Lynch 10-Year US Treasury Index)  (0.54)  (1.32) 
Taxable fixed income (Barclays Capital US Aggregate Bond Index)  2.54  8.30 
Tax-exempt fixed income (Barclays Capital Municipal Bond Index)  3.68  8.85 
High yield bonds (Barclays Capital US Corporate High Yield 2% Issuer Capped Index)  11.60  42.53 

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

Global financial markets continue to show signs of improvement, but questions about the strength and sustainability of the recovery abound. Through

periods of uncertainty, as ever, BlackRock’s full resources are dedicated to the management of our clients’ assets. For additional market perspective and

investment insight, visit www.blackrock.com/shareholdermagazine, where you’ll find the most recent issue of our award-winning Shareholder® magazine,

as well as its quarterly companion newsletter, Shareholder Perspectives. As always, we thank you for entrusting BlackRock with your investments, and we

look forward to your continued partnership in the months and years ahead.


THIS PAGE NOT PART OF YOUR FUND REPORT

3


Fund Summary as of April 30, 2010

BlackRock Credit Allocation Income Trust I, Inc.

Investment Objective

BlackRock Credit Allocation Income Trust I, Inc. (PSW) (formerly BlackRock Preferred and Corporate Income Strategies Fund, Inc.) (the “Fund”) seeks to
provide shareholders with high current income and capital appreciation. The Fund seeks to achieve its objectives by investing primarily in credit-related securi-
ties, including, but not limited to, investment grade corporate bonds, high yield bonds, bank loans, preferred securities or convertible bonds or derivatives with
economic characteristics similar to these credit-related securities.

Effective November 13, 2009, BlackRock Preferred and Corporate Income Strategies Fund, Inc. was renamed BlackRock Credit Allocation Income Trust I, Inc.

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

Performance

For the six months ended April 30, 2010, the Fund returned 17.86% based on market price and 16.40% based on net asset value (“NAV”). For the same
period, the closed-end Lipper Income & Preferred Stock Funds category posted an average return of 22.64% on a market price basis and 15.18% 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. In accordance with a change to its investment policies the Fund transitioned its portfolio away
from primarily investing in preferred securities and corporate bonds into a broader spectrum of securities across the capital structure. Performance has been
driven by the strong rebound in preferred securities, along with asset allocation decisions within the preferred sector. In particular, the Fund benefited from
an overweight allocation to institutional corporate securities and hybrid securities as those sectors continued their dramatic outperformance versus $25 par
preferred securities, in which the Fund was underweight. The Fund’s performance also benefited from participation in several additional issuer-related ten-
ders in preferred equity exchanges, along with an overweight in the European banking sector. On the other hand, markets experienced substantial volatility
over the period, most notably during the first three months of 2010. Markets were robust in early January as improving economic conditions left investors
feeling underinvested and scrambling to purchase assets. The rally met an abrupt end in mid-January due to rising Greek default risk and the unexpected
tightening of monetary policy in China. Markets declined over the ensuing weeks until a European Union-led finance package for Greece was announced.
From that point, markets rallied on stronger economic data, including the first month of job creation (in March) and upward revisions to the previous three
months’ jobs data. The preferred market was largely immune from this volatility, however, as prices rose whether the broader market was rallying or selling
off. This was due to the previously discussed positive effect of market tenders in the European banking sector.
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 (“NYSE”)  PSW 
  Initial Offering Date  August 1, 2003 
  Yield based on Closing Market Price as of April 30, 2010 ($9.32)1    7.73% 
  Current Monthly Distribution per Common Share2  $0.06 
  Current Annualized Distribution per Common Share2  $0.72 
  Leverage as of April 30, 20103  29% 

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.
2 The monthly distribution per Common Share, declared on June 1, 2010, was decreased to $0.057. The yield on the Closing Market Price, Current
Monthly Distribution per Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The
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 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 borrowings and Preferred Shares) minus the sum of liabilities (other
than borrowings representing financial leverage). For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks
of Leveraging on page 9.

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

  4/30/10  10/31/09  Change  High  Low 
Market Price  $ 9.32  $8.24  13.11%  $ 9.40  $7.93 
Net Asset Value  $10.40  $9.31  11.71%  $10.40  $9.22 

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

Portfolio Composition     
  4/30/10  10/31/09 
Corporate Bonds  67%  18% 
Preferred Securities  32     82 
Taxable Municipal Bonds  1   

     Credit Quality Allocations4     
  4/30/10  10/31/09 
AA/Aa  9%   
A  27  26% 
BBB/Baa  48  62 
BB/Ba  13  8 
B  1  2 
CCC/Caa  1   
Not Rated  1  2 

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

4 SEMI-ANNUAL REPORT

APRIL 30, 2010


Fund Summary as of April 30, 2010

BlackRock Credit Allocation Income Trust II, Inc.

Investment Objective

BlackRock Credit Allocation Income Trust II, Inc. (PSY) (formerly BlackRock Preferred Income Strategies Fund, Inc.) (the “Fund”) seeks to provide share-
holders with current income and capital appreciation. The Fund seeks to achieve its objectives by investing primarily in credit-related securities, including,
but not limited to, investment grade corporate bonds, high yield bonds, bank loans, preferred securities or convertible bonds or derivatives with economic
characteristics similar to these credit-related securities.

Effective November 13, 2009, BlackRock Preferred Income Strategies Fund, Inc. was renamed BlackRock Credit Allocation Income Trust II, Inc.

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

Performance

For the six months ended April 30, 2010, the Fund returned 21.75% based on market price and 18.47% based on net asset value (NAV). For the same
period, the closed-end Lipper Income & Preferred Stock Funds category posted an average return of 22.64% on a market price basis and 15.18% 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. In accordance with a change to its investment policies the Fund transitioned its portfolio away
from primarily investing in preferred securities into a broader spectrum of securities across the capital structure. Performance has been driven by the strong
rebound in preferred securities, along with asset allocation decisions within the sector. In particular, the Fund benefited from an overweight allocation to
institutional corporate securities and hybrid securities as those sectors continued their dramatic outperformance versus $25 par preferred securities, in
which the Fund was underweight. The Fund’s performance also benefited from participation in several additional issuer-related tenders in preferred equity
exchanges, along with an overweight in the European banking sector. On the other hand, markets experienced substantial volatility over the period, most
notably during the first three months of 2010. Markets were robust in early January as improving economic conditions left investors feeling underinvested
and scrambling to purchase assets. The rally met an abrupt end in mid-January due to rising Greek default risk and the unexpected tightening of monetary
policy in China. Markets declined over the ensuing weeks until a European Union-led finance package for Greece was announced. From that point, markets
rallied on stronger economic data, including the first month of job creation (in March) and upward revisions to the previous three months’ jobs data. The
preferred market was largely immune from this volatility, however, as prices rose whether the broader market was rallying or selling off. This was due to the
previously discussed positive effect of market tenders in the European banking sector.
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 NYSE  PSY 
  Initial Offering Date  March 28, 2003 
  Yield on Closing Market Price as of April 30, 2010 ($10.35)1  8.70% 
  Current Monthly Distribution per Common Share2  $0.075 
  Current Annualized Distribution per Common Share2  $0.900 
  Leverage as of April 30, 20103  28% 

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.
2 The monthly distribution per Common Share, declared on June 1, 2010, was decreased to $0.0635. The yield on the Closing Market Price, Current
Monthly Distribution per Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The distribu-
tion 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 borrowings and Preferred Shares) minus the sum of liabilities (other than borrowings representing financial
leverage). For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 9.

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

  4/30/10  10/31/09  Change  High  Low 
Market Price  $10.35  $ 8.90  16.29%  $10.49  $8.53 
Net Asset Value  $11.35  $10.03  13.16%  $11.35  $9.91 

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

Portfolio Composition     
  4/30/10  10/31/09 
Corporate Bonds  56%    3% 
Preferred Securities  43  97 
Taxable Municipal Bonds  1        

     Credit Quality Allocations4     
  4/30/10  10/31/09 
AA/Aa  7%  1% 
A  26  26 
BBB/Baa  50  56 
BB/Ba  13  14 
B  2  3 
CCC/Caa  1   
Not Rated  1   
 4 Using the higher of S&P’s or Moody’s ratings.   

SEMI-ANNUAL REPORT

APRIL 30, 2010

5


Fund Summary as of April 30, 2010

BlackRock Credit Allocation Income Trust III

Investment Objective

BlackRock Credit Allocation Income Trust III (BPP) (formerly BlackRock Preferred Opportunity Trust) (the “Fund”) seeks high current income consistent
with capital preservation. The Fund seeks to achieve its objectives by investing primarily in credit-related securities, including, but not limited to, investment
grade corporate bonds, high yield bonds, bank loans, preferred securities or convertible bonds or derivatives with economic characteristics similar to these
credit-related securities.

Effective November 13, 2009, BlackRock Preferred Opportunity Trust was renamed BlackRock Credit Allocation Income Trust III.

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

Performance

For the six months ended April 30, 2010, the Fund returned 13.05% based on market price and 12.74% based on net asset value (NAV). For the same
period, the closed-end Lipper Income & Preferred Stock Funds category posted an average return of 22.64% on a market price basis and 15.18% 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. In accordance with a change to its investment policies the Fund transitioned its portfolio away
from primarily investing in preferred securities into a broader spectrum of securities across the capital structure. Performance has been driven by the strong
rebound in preferred securities, along with asset allocation decisions within the preferred sector. In particular, the Fund benefited from an overweight alloca-
tion to institutional corporate securities and hybrid securities as those sectors continued their dramatic outperformance versus $25 par preferred securities,
in which the Fund was underweight. The Fund’s performance also benefited from participation in several additional issuer-related tenders in preferred equity
exchanges, along with an overweight in the European banking sector. On the other hand, markets experienced substantial volatility over the period, most
notably during the first three months of 2010. Markets were robust in early January as improving economic conditions left investors feeling underinvested
and scrambling to purchase assets. The rally met an abrupt end in mid-January due to rising Greek default risk and the unexpected tightening of monetary
policy in China. Markets declined over the ensuing weeks until a European Union-led finance package for Greece was announced. From that point, markets
rallied on stronger economic data, including the first month of job creation (in March) and upward revisions to the previous three months’ jobs data. The
preferred market was largely immune from this volatility, however, as prices rose whether the broader market was rallying or selling off. This was due to the
previously discussed positive effect of market tenders in the European banking sector.
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 NYSE  BPP 
  Initial Offering Date  February 28, 2003 
  Yield on Closing Market Price as of April 30, 2010 ($10.78)1  8.07% 
  Current Monthly Distribution per Common Share2  $0.0725 
  Current Annualized Distribution per Common Share2  $0.8700 
  Leverage as of April 30, 20103  24% 

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.
2 The monthly distribution per Common Share, declared on June 1, 2010, was decreased to $0.066500. The yield on the Closing Market Price, Current
Monthly Distribution per Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The distribu-
tion 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 borrowings and Preferred Shares) minus the sum of liabilities (other than borrowings representing financial
leverage). For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 9.

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

  4/30/10  10/31/09  Change  High  Low 
Market Price  $10.78  $ 9.94  8.45%  $10.85  $ 9.56 
Net Asset Value  $11.95  $11.05  8.14%  $11.95  $10.92 

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

     Portfolio Composition     
  4/30/10  10/31/09 
Corporate Bonds  58%  10% 
Preferred Securities  40  90 
Municipal Bonds  2   

     Credit Quality Allocations4     
  4/30/10  10/31/09 
AA/Aa  7%  4% 
A  32  28 
BBB/Baa  40  45 
BB/Ba  18  13 
B  2  5 
CCC/Caa  1  5 
 4 Using the higher of S&P’s or Moody’s ratings.   

6 SEMI-ANNUAL REPORT

APRIL 30, 2010


Fund Summary as of April 30, 2010

BlackRock Credit Allocation Income Trust IV

Investment Objective

BlackRock Credit Allocation Income Trust IV (BTZ) (formerly BlackRock Preferred and Equity Advantage Trust) (the “Fund”) seeks to achieve high
current income, current gains and capital appreciation. The Fund seeks to achieve its objectives by investing primarily in credit-related securities, including,
but not limited to, investment grade corporate bonds, high yield bonds, bank loans, preferred securities or convertible bonds or derivatives with economic char-
acteristics similar to these credit-related securities.

Effective November 13, 2009, BlackRock Preferred and Equity Advantage Trust was renamed BlackRock Credit Allocation Income Trust IV.
No assurance can be given that the Fund’s investment objective will be achieved.

Performance

For the six months ended April 30, 2010, the Fund returned 20.86% based on market price and 16.29% based on net asset value (NAV). For the same
period, the closed-end Lipper Income & Preferred Stock Funds category posted an average return of 22.64% on a market price basis and 15.18% 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. In accordance with a change to its investment policies the Fund transitioned its portfolio away
from primarily investing in preferred and equity securities into a broader spectrum of securities across the capital structure. In addition, the Fund no longer
employs an option-writing strategy. Performance has been driven by the strong rebound in preferred securities, along with asset allocation decisions within
the preferred sector. In particular, the Fund benefited from an overweight allocation to institutional corporate securities and hybrid securities as those sec-
tors continued their dramatic outperformance versus $25 par preferred securities, in which the Fund was underweight. The Fund’s performance also bene-
fited from participation in several additional issuer-related tenders in preferred equity exchanges, along with an overweight in the European banking sector.
On the other hand, markets experienced substantial volatility over the period, most notably during the first three months of 2010. Markets were robust in
early January as improving economic conditions left investors feeling underinvested and scrambling to purchase assets. The rally met an abrupt end in mid-
January due to rising Greek default risk and the unexpected tightening of monetary policy in China. Markets declined over the ensuing weeks until a
European Union-led finance package for Greece was announced. From that point, markets rallied on stronger economic data, including the first month of
job creation (in March) and upward revisions to the previous three months’ jobs data. The preferred market was largely immune from this volatility, however,
as prices rose whether the broader market was rallying or selling off. This was due to the previously discussed positive effect of market tenders in the
European banking sector.
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 NYSE  BTZ 
  Initial Offering Date  December 27, 2006 
  Yield on Closing Market Price as of April 30, 2010 ($12.59)1  9.53% 
  Current Monthly Distribution per Common Share2  $0.10 
  Current Annualized Distribution per Common Share2  $1.20 
  Leverage as of April 30, 20103  29% 

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.
2 The monthly distribution per Common Share, declared on June 1, 2010, was decreased to $0.079. The yield on the Closing Market Price, Current
Monthly Distribution per Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The distribu-
tion 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 borrowings and Preferred Shares) minus the sum of liabilities (other than borrowings representing financial
leverage). For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 9.

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

  4/30/10  10/31/09  Change  High  Low 
Market Price  $12.59  $10.96  14.87%  $12.65  $10.66 
Net Asset Value  $13.97  $12.64  10.52%  $13.97  $12.55 

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

Portfolio Composition     
  4/30/10  10/31/09 
Corporate Bonds  51%  6% 
Preferred Securities  38  84 
U.S. Treasury Obligations  8   
Taxable Municipal Bonds  2   
Common Stocks  1  10 

     Credit Quality Allocations4     
  4/30/10  10/31/09 
AA/Aa  7%  4% 
A  31  33 
BBB/Baa  40  53 
BB/Ba  11  6 
B  2  4 
CCC/Caa  1   
Not Rated  8   
 4 Using the higher of S&P’s or Moody’s ratings.   

SEMI-ANNUAL REPORT

APRIL 30, 2010

7


Fund Summary as of April 30, 2010

BlackRock Floating Rate Income Trust

Investment Objective

BlackRock Floating Rate Income Trust (BGT) 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, 2010, the Fund returned 22.72% based on market price and 10.90% based on net asset value (NAV). For the same
period, the closed-end Lipper Loan Participation Funds category posted an average return of 29.63% on a market price basis and 11.27% on a NAV basis. All
returns reflect reinvestment of dividends. (The performance of the Lipper category does not necessarily correlate to that of the Fund, as the Lipper group com-
prises both closed-end funds that employ leverage and continuously offered closed-end funds that do not. For this reporting period, those Lipper peers that do
not employ leverage were at a disadvantage given the market rally.) The Fund moved from a discount to NAV to a premium by period-end, which accounts for
the difference between performance based on price and performance based on NAV. The Fund's use of leverage produced positive absolute performance but
accounted for the Fund’s underperformance versus its Lipper category, as many of the funds in the category employ higher levels of leverage. Conversely, the
Fund’s allocation to high yield bonds outperformed bank loans during the period and added to performance. Relative to its Lipper peers, the Fund continues to
focus on higher-quality sectors and structures, which underperformed in the market rally that favored riskier assets.

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

Fund Information     
  Symbol on NYSE  BGT 
  Initial Offering Date  August 30, 2004 
  Yield on Closing Market Price as of April 30, 2010 ($15.00)1  5.40% 
  Current Monthly Distribution per Common Share2  $0.0675 
  Current Annualized Distribution per Common Share2  $0.8100 
  Leverage as of April 30, 2010  22% 

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, 2010, was increased to $0.07. The yield on the Closing Market Price, Current
Monthly Distribution per Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The distri-
bution 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 Preferred Shares as a percentage of total managed assets, which is the total assets of the Fund (including any
assets attributable to any borrowings and Preferred Shares) minus the sum of liabilities (other than borrowings representing financial leverage).
For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 9.

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

  4/30/10  10/31/09  Change  High  Low 
Market Price  $15.00  $12.58  19.24%  $15.93  $12.55 
Net Asset Value  $14.32  $13.29  7.75%  $14.32  $13.20 

The following charts show the portfolio composition of the Fund’s long-term investments and credit quality allocations of the
Fund’s long-term investments excluding Common Stocks and Floating Rate Loan Interests:

Portfolio Composition     
  4/30/10  10/31/09 
Floating Rate Loan Interests  76%  76% 
Corporate Bonds  17  20 
Foreign Government Obligations  6  3 
Other Interests  1  1 

     Credit Quality Allocations4     
  4/30/10  10/31/09 
AAA/Aaa    16% 
A  5%  4 
BBB/Baa  23  27 
BB/Ba  28  17 
B  27  22 
CCC/Caa  2  6 
C    5 
D    1 
Not Rated  155  2 

4 Using the higher of S&P’s or Moody’s ratings.
5 The investment advisor has deemed certain of these non-rated securi-
ties to be of investment grade quality. As of April 30, 2010, the mar-
ket value of these securities was $6,503,550 representing 6% of the
Fund’s long-term investments.

8 SEMI-ANNUAL REPORT

APRIL 30, 2010


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.

The Funds may utilize leverage through borrowings, including by entering
into reverse repurchase agreements, or through the issuance of Preferred
Shares. 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 net income.

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, income 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 borrows and/or issues Preferred Shares for an addi-
tional $50 million, creating a total value of $150 million available for invest-
ment in long-term securities. If prevailing short-term interest rates are 3%
and long-term interest rates are 6%, the yield curve has a strongly positive
slope. In this case, the Fund pays interest expense and/or dividends on
the $50 million of Preferred Shares based on the lower short-term interest
rates. At the same time, the securities purchased by the Fund with assets
received from the borrowings and/or issuance of Preferred Shares can earn
income based on long-term interest rates. In this case, the interest expense
and/or dividends paid to Preferred Shareholders are significantly lower
than the income earned on the Fund’s long-term investments, and there-
fore the Common Shareholders are the beneficiaries of the incremental
net income.

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

Furthermore, the value of a 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 Funds’ borrowings and/or Preferred Shares does not fluctuate
in relation to interest rates. As a result, changes in interest rates can influ-
ence the Funds’ NAV positively or negatively in addition to the impact on
Fund performance from leverage from borrowings.

The use of leverage may enhance opportunities for increased income to the
Funds and Common Shareholders, but as described above, it also creates
risks as short- or long-term interest rates fluctuate. Leverage also will gener-
ally cause greater changes to each Fund’s NAV, market price and dividend
rates than a comparable portfolio without leverage. If the income derived
from securities purchased with assets received from leverage exceeds the
cost of leverage, each 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, each Fund’s net income will be
less than if leverage had not been used, and therefore the amount available
for distribution to shareholders will be reduced. Each Fund may be required
to sell portfolio securities at inopportune times or at distressed values in
order to comply with regulatory requirements applicable to the use of 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 each Fund’s ability to
invest in certain types of securities or use certain types of hedging strate-
gies, such as in the case of certain restrictions imposed by ratings agencies
that rate Preferred Shares issued by each Fund. Each Fund will incur
expenses in connection with the use of leverage, all of which are borne by
the Common Shareholders and may reduce income on the Common Shares.

Under the Investment Company Act of 1940, BGT is permitted to borrow
through a credit facility up to 33 1 / 3 % of its total managed assets and 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 cir-
cumstances, each Fund anticipates that the total economic leverage from
Preferred Shares, reverse repurchase agreements and credit facility borrow-
ings will not exceed 50% of its total managed assets at the time such lever-
age is incurred. As of April 30, 2010, the Funds had economic leverage from
Preferred Shares, reverse repurchase agreements and/or credit facility bor-
rowings as a percentage of their total managed assets as follows:

  Percent of 
  Leverage 
PSW  29% 
PSY  28% 
BPP  24% 
BTZ  29% 
BGT  22% 

SEMI-ANNUAL REPORT

APRIL 30, 2010

9


Derivative Financial Instruments

The Funds may invest in various derivative instruments, including financial
futures contracts, swaps, foreign currency exchange contracts and options,
as specified in Note 2 of the Notes to Financial Statements, which consti-
tute forms of economic leverage. Such instruments are used to obtain
exposure to a market without owning or taking physical custody of securi-
ties or to hedge market, equity, credit, interest rate and/or foreign currency
exchange rate risks. Such derivative instruments involve risks, including the
imperfect correlation between the value of a derivative instrument and the
underlying asset, possible default of the counterparty to the transaction
and illiquidity of the derivative instrument. Each Fund’s ability to success-

fully use a derivative instrument depends on the investment 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 port-
folio securities at inopportune times or at distressed values, may limit the
amount of appreciation the Funds can realize on an investment or may
cause the Funds to hold a security that they might otherwise sell. The
Funds’ investments in these instruments are discussed in detail in the
Notes to Financial Statements.

10 SEMI-ANNUAL REPORT

APRIL 30, 2010


Schedule of Investments April 30, 2010 (Unaudited)

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

(Percentages shown are based on Net Assets)

  Par   
Corporate Bonds  (000)           Value 
Aerospace & Defense — 3.7%     
BE Aerospace, Inc., 8.50%, 7/01/18  $ 560  $ 599,200 
Bombardier, Inc., 7.75%, 3/15/20 (a)  720  765,000 
United Technologies Corp., 5.70%, 4/15/40  2,500  2,610,327 
    3,974,527 
Airlines — 0.4%     
Continental Airlines Pass-Through Certificates,     
Series 2009-2, Class B, 9.25%, 5/10/17  375  401,250 
Auto Components — 0.6%     
Icahn Enterprises LP (a):     
     7.75%, 1/15/16  200  194,500 
     8.00%, 1/15/18  500  486,250 
    680,750 
Beverages — 0.4%     
Constellation Brands, Inc., 7.25%, 5/15/17  460  469,200 
Capital Markets — 1.7%     
Ameriprise Financial, Inc., 5.30%, 3/15/20  750  780,626 
Morgan Stanley, 7.30%, 5/13/19  900  988,270 
    1,768,896 
Chemicals — 0.2%     
CF Industries, Inc., 7.13%, 5/01/20  250  263,125 
Commercial Services & Supplies — 2.6%     
Browning-Ferris Industries, Inc., 7.40%, 9/15/35  865  987,136 
Corrections Corp. of America, 7.75%, 6/01/17  775  821,500 
Waste Management, Inc., 6.13%, 11/30/39  900  937,159 
    2,745,795 
Communications Equipment — 0.7%     
Brocade Communications Systems, Inc.,     
6.88%, 1/15/20 (a)  700  722,750 
Consumer Finance — 5.2%     
American Express Co., 8.13%, 5/20/19  925  1,132,932 
Capital One Bank USA NA, 8.80%, 7/15/19  775  950,341 
Inmarsat Finance Plc, 7.38%, 12/01/17 (a)  520  542,100 
SLM Corp., 4.00%, 7/25/14 (b)  3,200  2,979,168 
    5,604,541 
Containers & Packaging — 1.0%     
Ball Corp.:     
     7.13%, 9/01/16  400  425,000 
     6.75%, 9/15/20  405  414,113 
Bemis Co., Inc., 6.80%, 8/01/19  200  227,786 
    1,066,899 
Diversified Financial Services — 2.5%     
Bank of America Corp., 7.63%, 6/01/19  1,575  1,797,891 
GMAC, Inc., 8.30%, 2/12/15 (a)  800  835,000 
    2,632,891 
Diversified Telecommunication Services — 3.7%     
AT&T, Inc., 6.30%, 1/15/38  1,000  1,038,919 
New Communications Holdings, Inc.,     
8.50%, 4/15/20 (a)  700  721,000 
Qwest Corp., 8.38%, 5/01/16  390  444,600 
Verizon Communications, Inc., 7.35%, 4/01/39  925  1,098,394 
Windstream Corp.:     
     8.63%, 8/01/16  250  255,938 
     7.88%, 11/01/17  400  397,000 
    3,955,851 

  Par   
Corporate Bonds  (000)           Value 
Electric Utilities — 1.7%     
Progress Energy Inc., 7.00%, 10/30/31  $ 1,000  $ 1,142,424 
Southern California Edison Co., 5.50%, 3/15/40  650  661,578 
    1,804,002 
Food & Staples Retailing — 3.9%     
CVS Caremark Corp., 6.30%, 6/01/62 (b)  1,500  1,447,500 
Wal-Mart Stores, Inc., 6.20%, 4/15/38  2,500  2,752,035 
    4,199,535 
Food Products — 0.8%     
Kraft Foods, Inc.:     
     6.50%, 8/11/17  385  436,215 
     6.13%, 8/23/18  390  430,336 
    866,551 
Gas Utilities — 0.9%     
Nisource Finance Corp., 6.13%, 3/01/22  900  955,581 
Health Care Equipment & Supplies — 1.7%     
Medtronic, Inc., 5.55%, 3/15/40  1,765  1,822,583 
Health Care Providers & Services — 2.4%     
Aetna, Inc., 6.75%, 12/15/37  800  881,674 
HCA, Inc./DE, 8.50%, 4/15/19 (a)  400  439,500 
Tenet Healthcare Corp., 10.00%, 5/01/18 (a)  350  398,563 
UnitedHealth Group, Inc., 6.88%, 2/15/38  800  878,953 
    2,598,690 
Insurance — 4.9%     
Lincoln National Corp.:     
     8.75%, 7/01/19  400  498,973 
     6.25%, 2/15/20  800  855,095 
Northwestern Mutual Life Insurance,     
6.06%, 3/30/40 (a)  900  929,587 
Principal Financial Group, Inc., 8.88%, 5/15/19  225  277,550 
Prudential Financial, Inc., 6.63%, 12/01/37  800  881,974 
QBE Insurance Group Ltd., 9.75%, 3/14/14 (a)  1,484  1,807,461 
    5,250,640 
Life Sciences Tools & Services — 1.8%     
Bio-Rad Laboratories, Inc., 8.00%, 9/15/16  865  923,387 
Life Technologies Corp., 6.00%, 3/01/20  1,000  1,052,160 
    1,975,547 
Machinery — 1.5%     
Ingersoll-Rand Global Holding Co., Ltd.,     
9.50%, 4/15/14  800  980,878 
Navistar International Corp., 8.25%, 11/01/21  600  633,000 
    1,613,878 
Media — 19.3%     
CSC Holdings, Inc., 8.63%, 2/15/19 (a)  275  300,438 
CSC Holdings LLC, 8.50%, 6/15/15 (a)  400  426,000 
Comcast Corp., 6.30%, 11/15/17  800  886,715 
Cox Communications, Inc., 8.38%, 3/01/39 (a)  10,800  14,023,940 
DISH DBS Corp.:     
     7.00%, 10/01/13  450  465,750 
     7.88%, 9/01/19  250  262,500 
Intelsat Corp., 9.25%, 6/15/16  350  369,250 
News America, Inc., 6.15%, 3/01/37  950  972,633 
Time Warner Cable, Inc., 6.75%, 6/15/39  925  999,820 
Time Warner, Inc., 7.70%, 5/01/32  950  1,114,834 
UPC Germany GmbH, 8.13%, 12/01/17 (a)  240  244,800 
Virgin Media Secured Finance Plc, 6.50%, 1/15/18 (a)  600  603,000 
    20,669,680 

     Portfolio Abbreviations         
To simplify the listings of portfolio holdings in the Schedules of  EUR  Euro  GO  General Obligation Bonds 
Investments, the names of many of the securities have been  FKA  Formerly Known As  RB  Revenue Bonds 
abbreviated according to the following list:  GBP  British Pound  USD  US Dollar 
See Notes to Financial Statements.         

SEMI-ANNUAL REPORT

APRIL 30, 2010

11


Schedule of Investments (continued)

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

(Percentages shown are based on Net Assets)

  Par   
Corporate Bonds  (000)           Value 
Metals & Mining — 1.2%     
Phelps Dodge Corp., 7.13%, 11/01/27  $ 700  $ 724,585 
Teck Resources Ltd., 10.75%, 5/15/19  400  498,000 
United States Steel Corp., 7.38%, 4/01/20  75  77,062 
    1,299,647 
Multi-Utilities — 1.5%     
CenterPoint Energy, Inc.:     
     5.95%, 2/01/17  750  789,789 
     6.50%, 5/01/18  775  844,879 
    1,634,668 
Multiline Retail — 0.8%     
Dollar General Corp., 10.63%, 7/15/15  750  833,438 
Oil, Gas & Consumable Fuels — 3.7%     
Enbridge Energy Partners LP, 9.88%, 3/01/19  475  628,835 
Enterprise Products Operating LLC, 6.65%, 4/15/18  1,000  1,139,448 
Kinder Morgan Energy Partners LP, 6.85%, 2/15/20  1,000  1,151,640 
ONEOK Partners LP, 8.63%, 3/01/19  800  1,004,031 
    3,923,954 
Paper & Forest Products — 2.5%     
Georgia-Pacific LLC, 8.25%, 5/01/16 (a)  785  859,575 
International Paper Co.:     
     7.50%, 8/15/21  775  910,322 
     7.30%, 11/15/39  800  886,953 
    2,656,850 
Pharmaceuticals — 11.5%     
Abbott Laboratories:     
     6.15%, 11/30/37  235  262,297 
     6.00%, 4/01/39  1,177  1,296,250 
Bristol-Myers Squibb Co.:     
     5.88%, 11/15/36  2,014  2,127,447 
     6.13%, 5/01/38  588  641,962 
Eli Lilly & Co., 5.95%, 11/15/37  588  639,820 
GlaxoSmithKline Capital, Inc., 6.38%, 5/15/38  1,690  1,913,246 
Merck & Co., Inc., 6.50%, 12/01/33  475  549,138 
Pfizer, Inc., 7.20%, 3/15/39  2,500  3,102,572 
Schering-Plough Corp., 6.55%, 9/15/37  1,504  1,754,663 
    12,287,395 
Real Estate Investment Trusts (REITs) — 3.1%     
AvalonBay Communities, Inc.:     
     5.70%, 3/15/17  775  830,277 
     6.10%, 3/15/20  800  866,981 
ERP Operating LP:     
     5.38%, 8/01/16  775  817,385 
     5.75%, 6/15/17  800  857,885 
    3,372,528 
Semiconductors & Semiconductor Equipment — 1.0%     
KLA-Tencor Corp., 6.90%, 5/01/18  461  509,796 
National Semiconductor Corp., 6.60%, 6/15/17  539  593,609 
    1,103,405 
Specialty Retail — 1.0%     
AutoNation, Inc., 6.75%, 4/15/18  445  446,669 
AutoZone, Inc., 7.13%, 8/01/18  300  346,753 
Ltd. Brands, Inc., 7.00%, 5/01/20 (c)  230  234,600 
    1,028,022 
Tobacco — 1.8%     
Altria Group, Inc.:     
     9.70%, 11/10/18  800  1,006,073 
     9.25%, 8/06/19  775  957,343 
    1,963,416 

  Par   
Corporate Bonds  (000)           Value 
Wireless Telecommunication Services — 4.0%     
Cricket Communications, Inc., 7.75%, 5/15/16  $ 155  $ 160,813 
Nextel Communications, Inc., Series E,     
 6.88%, 10/31/13  535  525,637 
SBA Tower Trust, 5.10%, 4/15/42 (a)  3,500  3,605,019 
    4,291,469 
Total Corporate Bonds — 93.7%    100,437,954 
Preferred Securities     
Capital Trusts     
Building Products — 0.3%     
C8 Capital SPV Ltd., 6.64% (a)(b)(d)  490  357,426 
Capital Markets — 4.6%     
Ameriprise Financial, Inc., 7.52%, 6/01/66 (b)  500  505,000 
Lehman Brothers Holdings Capital Trust V,     
 2.09% (d)(e)(f)  1,600  160 
State Street Capital Trust III, 8.25% (b)(d)  725  744,423 
State Street Capital Trust IV, 1.26%, 6/01/67 (b)  4,740  3,653,663 
    4,903,246 
Commercial Banks — 3.2%     
Bank of Ireland Capital Funding II, LP,     
 5.57% (a)(b)(d)(e)(f)  429  304,590 
Bank of Ireland Capital Funding III, LP,     
 6.11% (a)(b)(d)(e)(f)  740  525,400 
Barclays Bank Plc, 5.93% (a)(b)(d)  500  452,500 
First Empire Capital Trust II, 8.28%, 6/01/27  910  844,943 
National City Preferred Capital Trust I, 12.00% (b)(d)  300  347,226 
SunTrust Preferred Capital I, 5.85% (b)(d)  135  105,638 
USB Capital XIII Trust, 6.63%, 12/15/39  825  867,578 
    3,447,875 
Diversified Financial Services — 3.0%     
Farm Credit Bank of Texas, Series 1, 7.56% (b)(d)  1,000  853,270 
JPMorgan Chase Capital XXIII, 1.25%, 5/15/77 (b)(g)  3,085  2,395,900 
    3,249,170 
Electric Utilities — 0.4%     
PPL Capital Funding, 6.70%, 3/30/67 (b)  500  457,500 
Insurance — 10.6%     
AXA SA, 6.38% (a)(b)(d)  1,000  890,000 
Ace Capital Trust II, 9.70%, 4/01/30  500  606,907 
The Allstate Corp., 6.50%, 5/15/67 (b)  500  480,000 
Chubb Corp., 6.38%, 3/29/67 (b)(h)  500  500,625 
Farmers Exchange Capital, 7.05%, 7/15/28 (a)  500  471,639 
Genworth Financial, Inc., 6.15%, 11/15/66 (b)  750  600,000 
Great West Life & Annuity Insurance Co.,     
 7.15%, 5/16/46 (a)(b)  500  480,000 
Liberty Mutual Group, Inc., 10.75%, 6/15/88 (a)(b)  500  582,500 
Lincoln National Corp., 7.00%, 5/17/66 (b)  500  462,500 
MetLife, Inc., 6.40%, 12/15/66  500  472,500 
Nationwide Life Global Funding I, 6.75%, 5/15/67  500  427,500 
Progressive Corp., 6.70%, 6/15/67 (b)  500  495,481 
Reinsurance Group of America, 6.75%, 12/15/65 (b)  700  662,754 
The Travelers Cos., Inc., 6.25%, 3/15/67 (b)  500  491,739 
ZFS Finance (USA) (a)(b):     
Trust II, 6.45%, 12/15/65  1,800  1,737,000 
Trust IV, 5.88%, 5/09/32  146  139,485 
Trust V, 6.50%, 5/09/67  1,097  1,050,377 
Zenith National Insurance Capital Trust I,     
 8.55%, 8/01/28 (a)  1,000  865,000 
    11,416,007 

See Notes to Financial Statements.

12 SEMI-ANNUAL REPORT

APRIL 30, 2010


Schedule of Investments (continued)

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

(Percentages shown are based on Net Assets)

  Par   
Capital Trusts  (000)  Value 
Multi-Utilities — 1.4%     
Dominion Resources Capital Trust I,     
 7.83%, 12/01/27 (g)  $ 500  $ 516,467 
Dominion Resources, Inc., 7.50%, 6/30/66 (b)  500  507,500 
Puget Sound Energy, Inc., Series A,     
 6.97%, 6/01/67 (b)  475  451,473 
    1,475,440 
Oil, Gas & Consumable Fuels — 1.3%     
Enterprise Products Operating LLC,     
 8.38%, 8/01/66 (b)  825  858,000 
TransCanada PipeLines Ltd., 6.35%, 5/15/67 (b)  500  480,821 
    1,338,821 
Total Capital Trusts — 24.8%    26,645,485 
Preferred Stocks  Shares   
Commercial Banks — 1.8%     
First Tennessee Bank NA, 3.75% (a)(b)  1,176  752,640 
Provident Financial Group, Inc., 7.75%  42,000  1,044,750 
Royal Bank of Scotland Group Plc, Series M, 6.40%  5,000  66,700 
    1,864,090 
Diversified Financial Services — 1.0%     
Falcons Funding Trust I, 8.88% (a)(b)  1,100  1,096,906 
Electric Utilities — 3.3%     
Alabama Power Co., 6.50%  25,000  649,750 
Entergy Arkansas, Inc., 6.45%  28,800  683,102 
Entergy Louisiana LLC, 6.95%  22,650  2,216,047 
    3,548,899 
Insurance — 3.6%     
Aspen Insurance Holdings Ltd., 7.40% (b)  55,000  1,276,000 
Axis Capital Holdings Ltd.:     
     Series A, 7.25%  35,000  853,650 
     Series B, 7.50% (b)  9,000  850,500 
Endurance Specialty Holdings Ltd., Series A, 7.75%  35,200  854,304 
    3,834,454 
Real Estate Investment Trusts (REITs) — 2.7%     
BRE Properties, Inc., Series D, 6.75%  10,000  228,200 
iStar Financial, Inc., Series I, 7.50%  59,500  952,000 
Public Storage:     
     Series F, 6.45%  10,000  235,400 
     Series I, 7.25%  40,000  1,016,400 
     Series M, 6.63%  20,000  491,600 
    2,923,600 
Wireless Telecommunication Services — 2.8%     
Centaur Funding Corp., 9.08%  2,720  2,992,850 
Total Preferred Stocks — 15.2%    16,260,799 
Trust Preferreds     
Consumer Finance — 1.4%     
Capital One Capital II, 7.50%, 6/15/66  63,034  1,514,729 
Insurance — 2.8%     
ABN AMRO North America Capital Funding Trust II,     
 0.31% (a)(b)(d)  80,000  1,586,536 
Lincoln National Capital VI, Series F, 6.75%, 9/11/52  58,966  1,396,139 
    2,982,675 
Total Trust Preferreds — 4.2%    4,497,404 
Total Preferred Securities — 44.2%    47,403,688 

Par 
Taxable Municipal Bonds  (000)  Value 
Metropolitan Transportation Authority, RB,     
Build America Bonds, 6.55%, 11/15/31  $ 800  $ 843,440 
State of California, GO, Build America Bonds,     
 7.35%, 11/01/39  400  432,152 
State of Illinois, GO, Pension, 5.10%, 6/01/33  775  668,461 
Total Taxable Municipal Bonds — 1.8%    1,944,053 
Total Long-Term Investments     
(Cost — $149,969,746) — 139.7%    149,785,695 
Short-Term Securities  Shares   
BlackRock Liquidity Funds, TempFund,     
 Institutional Class, 0.13% (i)(j)  124,379  124,379 
Total Short-Term Securities     
(Cost — $124,379) — 0.1%    124,379 
Total Investments (Cost — $150,094,125*) — 139.8%    149,910,074 
Liabilities in Excess of Other Assets — (2.2)%    (2,398,252) 
Preferred Shares, at Redemption Value — (37.6)%    (40,259,152) 
Net Assets Applicable to Common Shares — 100.0%    $107,252,670 

* The cost and unrealized appreciation (depreciation) of investments as of April 30,
2010, as computed for federal income tax purposes, were as follows:

Aggregate cost  $ 150,119,907 
Gross unrealized appreciation  $ 5,240,140 
Gross unrealized depreciation  (5,449,973) 
Net unrealized depreciation  $ (209,833) 

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

    Unrealized 
Counterparty  Value  Appreciation 
Bank of America, NA  $ 234,600  $ 4,600 

(d) Security is perpetual in nature and has no stated maturity date.
(e) Issuer filed for bankruptcy and/or is in default of interest payments.
(f) Non-income producing security.
(g) All or a portion of security has been pledged as collateral in connection with open
reverse repurchase agreements.
(h) All or a portion of security has been pledged as collateral in connection with swaps.
(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:

  Shares    Shares   
  Held at    Held at   
  October 31,  Net  April 30,   
Affiliate  2009  Activity  2010  Income 
BlackRock Liquidity         
   Funds, TempFund,         
   Institutional Class  33,286,296  (33,161,917)  124,379  $25,184 

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

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

APRIL 30, 2010

13


Schedule of Investments (concluded)

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

  Reverse repurchase agreements outstanding as of April 30, 2010 were as follows: 
    Interest  Trade  Maturity     Net Closing  Face 
  Counterparty  Rate  Date  Date         Amount  Amount 
  Credit Suisse             
  Securities  0.38%  4/22/10  5/24/10     $2,663,833  $2,662,946 
  Financial futures contracts purchased as of April 30, 2010 were as follows: 
      Expiration                    Notional  Unrealized 
  Contracts  Issue  Date       Value  Appreciation 
  39  2-Year U.S.           
                               Treasury Bond  June 2010                    $8,458,211  $ 27,336 
  6  30-Year U.S.           
                                 Treasury Bond  June 2010                     $ 694,935  19,440 
  Total            $ 46,776 
  Credit default swaps on single-name issues — buy protection outstanding as of April 
  30, 2010 were as follows:           
    Pay               Notional   
    Fixed  Counter-      Amount  Unrealized 
  Issuer  Rate  party    Expiration  (000)  Depreciation 
  Nordstrom, Inc.                      5.20%    Deutsche  June       
      Bank AG  2014            $ 1,000  $ (175,918) 

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 assets
and liabilities
Level 2 — other observable inputs (including, but not limited to: quoted prices for
similar assets or liabilities in markets that are active, quoted prices for identical
or similar assets or liabilities in markets that are not active, inputs other than
quoted prices that are observable for the assets or liabilities (such as interest
rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs)
Level 3 — unobservable inputs based on the best information available in the
circumstances, to the extent observable inputs are not available (including the
Fund’s own assumptions used in determining the fair value of investments)
The inputs or methodologies 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 tables summarize the inputs used as of April 30, 2010 in determining
the fair valuation of the Fund’s investments:

    Investments in Securities   
Valuation Inputs  Level 1  Level 2  Level 3  Total 
Assets:           
Long-Term           
Investments:           
   Capital           
   Trusts      $ 26,645,485               $ 26,645,485 
   Corporate           
   Bonds      100,437,954               100,437,954 
   Preferred           
   Stocks  $ 6,624,004  9,636,795               16,260,799 
   Taxable           
   Municipal           
   Bonds      1,944,053               1,944,053 
   Trust           
   Preferreds    2,910,868  1,586,536               4,497,404 
Short-Term           
Securities    124,379                 124,379 
Total  $ 9,659,251  140,250,823               $149,910,074 

Other Financial Instruments1

Valuation Inputs  Level 1  Level 2  Level 3  Total 
Assets  $ 46,776                 $ 46,776 
Liabilities             — $  (175,918)                      (175,918) 
Total  $ 46,776 $  (175,918)               $ (129,142) 

1 Other financial instruments are financial futures contracts and swaps, which are
shown at the unrealized appreciation/depreciation on the instrument.

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

Investments in Securities

  Capital 
  Trusts 
Balance, as of October 31, 2009  $ 576,450 
Accrued discounts/premiums   
Net realized gain (loss)  (156,053) 
Net change in unrealized appreciation/depreciation2  332,190 
Net purchases (sales)  (752,587) 
Net transfers in/out   
Balance, as of April 30, 2010  $ — 

2 Included in the related net change in unrealized appreciation/depreciation on
the Statements of Operations. The change in unrealized appreciation/deprecia-
tion on securities still held at April 30, 2010 was $0.

See Notes to Financial Statements.

14 SEMI-ANNUAL REPORT

APRIL 30, 2010


Schedule of Investments April 30, 2010 (Unaudited)

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

(Percentages shown are based on Net Assets)

  Par   
Corporate Bonds  (000)  Value 
Aerospace & Defense — 2.7%     
BE Aerospace, Inc., 8.50%, 7/01/18  $ 2,500  $ 2,675,000 
Bombardier, Inc., 7.75%, 3/15/20 (a)  3,205  3,405,312 
United Technologies Corp., 5.70%, 4/15/40  6,250  6,525,819 
    12,606,131 
Airlines — 0.4%     
Continental Airlines Pass-Through Certificates,     
Series 2009-2, Class B, 9.25%, 5/10/17  1,625  1,738,750 
Auto Components — 0.6%     
Icahn Enterprises LP (a):     
     7.75%, 1/15/16  880  855,800 
     8.00%, 1/15/18  2,000  1,945,000 
    2,800,800 
Beverages — 0.4%     
Constellation Brands, Inc., 7.25%, 5/15/17  1,970  2,009,400 
Capital Markets — 1.7%     
Ameriprise Financial, Inc., 5.30%, 3/15/20  3,250  3,382,714 
Morgan Stanley, 7.30%, 5/13/19  4,000  4,392,312 
    7,775,026 
Chemicals — 0.3%     
CF Industries, Inc., 7.13%, 5/01/20  1,125  1,184,063 
Commercial Services & Supplies — 2.6%     
Browning-Ferris Industries, Inc., 7.40%, 9/15/35  3,742  4,270,363 
Corrections Corp.of America, 7.75%, 6/01/17  3,375  3,577,500 
Waste Management, Inc., 6.13%, 11/30/39  4,000  4,165,152 
    12,013,015 
Communications Equipment — 0.7%     
Brocade Communications Systems, Inc.,     
6.88%, 1/15/20 (a)  2,965  3,061,363 
Consumer Finance — 5.2%     
American Express Co., 8.13%, 5/20/19  4,000  4,899,164 
Capital One Bank USA NA, 8.80%, 7/15/19  3,325  4,077,271 
Inmarsat Finance Plc, 7.38%, 12/01/17 (a)  2,135  2,225,738 
SLM Corp., 4.00%, 7/25/14 (b)  13,900  12,940,761 
    24,142,934 
Containers & Packaging — 0.8%     
Ball Corp.:     
     7.13%, 9/01/16  1,750  1,859,375 
     6.75%, 9/15/20  1,835  1,876,288 
    3,735,663 
Diversified Financial Services — 2.2%     
Bank of America Corp., 7.63%, 6/01/19  6,750  7,705,246 
GMAC, Inc., 8.30%, 2/12/15 (a)  2,500  2,609,375 
    10,314,621 
Diversified Telecommunication Services — 3.9%     
AT&T, Inc., 6.30%, 1/15/38  4,000  4,155,676 
New Communications Holdings, Inc.,     
8.50%, 4/15/20 (a)  3,100  3,193,000 
Qwest Corp., 8.38%, 5/01/16  2,795  3,186,300 
Verizon Communications, Inc., 7.35%, 4/01/39  4,025  4,779,498 
Windstream Corp.:     
     8.63%, 8/01/16  1,000  1,023,750 
     7.88%, 11/01/17  1,900  1,885,750 
    18,223,974 
Electric Utilities — 1.6%     
Progress Energy Inc., 7.00%, 10/30/31  4,000  4,569,696 
Southern California Edison Co., 5.50%, 3/15/40  2,850  2,900,764 
    7,470,460 

  Par   
Corporate Bonds  (000)  Value 
Food & Staples Retailing — 3.4%     
CVS Caremark Corp., 6.30%, 6/01/62 (b)  $ 6,600  $ 6,369,000 
Wal-Mart Stores, Inc.:     
     5.25%, 9/01/35  2,500  2,461,938 
     6.20%, 4/15/38  6,250  6,880,087 
    15,711,025 
Food Products — 0.8%     
Kraft Foods, Inc.:     
     6.50%, 8/11/17  1,665  1,886,490 
     6.13%, 8/23/18  1,660  1,831,685 
    3,718,175 
Gas Utilities — 0.9%     
Nisource Finance Corp., 6.13%, 3/01/22  4,000  4,247,028 
Health Care Equipment & Supplies — 1.1%     
Medtronic, Inc.:     
     6.50%, 3/15/39  650  750,740 
     5.55%, 3/15/40  4,412  4,555,942 
    5,306,682 
Health Care Providers & Services — 3.0%     
Aetna, Inc., 6.75%, 12/15/37  3,400  3,747,116 
HCA, Inc., 7.25%, 9/15/20 (a)  2,550  2,667,938 
HCA, Inc./DE, 8.50%, 4/15/19 (a)  1,800  1,977,750 
Tenet Healthcare Corp., 10.00%, 5/01/18 (a)  1,530  1,742,288 
UnitedHealth Group, Inc., 6.88%, 2/15/38  3,400  3,735,549 
    13,870,641 
Insurance — 4.8%     
Lincoln National Corp.:     
     8.75%, 7/01/19  1,750  2,183,006 
     6.25%, 2/15/20  3,400  3,634,155 
Northwestern Mutual Life Insurance,     
 6.06%, 3/30/40 (a)  3,800  3,924,921 
Principal Financial Group, Inc., 8.88%, 5/15/19  980  1,208,884 
Prudential Financial, Inc., 6.63%, 12/01/37  3,400  3,748,391 
QBE Insurance Group Ltd., 9.75%, 3/14/14 (a)  5,967  7,267,603 
Structured Asset Repackaged Trust,     
 Series 2004-1, 0.78%, 4/21/11 (a)(b)  214  207,440 
    22,174,400 
Life Sciences Tools & Services — 1.8%     
Bio-Rad Laboratories, Inc., 8.00%, 9/15/16  3,825  4,083,187 
Life Technologies Corp., 6.00%, 3/01/20  4,200  4,419,072 
    8,502,259 
Machinery — 1.5%     
Ingersoll-Rand Global Holding Co., Ltd.,     
 9.50%, 4/15/14  3,400  4,168,730 
Navistar International Corp., 8.25%, 11/01/21  2,550  2,690,250 
    6,858,980 
Media — 7.2%     
CSC Holdings, Inc., 8.63%, 2/15/19 (a)  1,200  1,311,000 
CSC Holdings LLC, 8.50%, 6/15/15 (a)  1,500  1,597,500 
Comcast Corp., 6.30%, 11/15/17  3,400  3,768,540 
Cox Communications, Inc., 8.38%, 3/01/39 (a)  3,400  4,414,944 
DISH DBS Corp.:     
     7.00%, 10/01/13  1,750  1,811,250 
     7.88%, 9/01/19  1,100  1,155,000 
Intelsat Corp., 9.25%, 6/15/16  1,800  1,899,000 
News America, Inc., 6.15%, 3/01/37  4,200  4,300,061 
Time Warner Cable, Inc., 6.75%, 6/15/39  4,050  4,377,592 
Time Warner, Inc., 7.70%, 5/01/32  4,150  4,870,062 
UPC Germany GmbH, 8.13%, 12/01/17 (a)  1,030  1,050,600 
Virgin Media Secured Finance Plc,     
 6.50%, 1/15/18 (a)  2,675  2,688,375 
    33,243,924 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

APRIL 30, 2010

15


Schedule of Investments (continued)

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

(Percentages shown are based on Net Assets)

    Par   
Corporate Bonds    (000)  Value 
Metals & Mining — 1.2%       
Phelps Dodge Corp., 7.13%, 11/01/27  $ 2,900  $ 3,001,851 
Teck Resources Ltd., 10.75%, 5/15/19    1,750  2,178,750 
United States Steel Corp., 7.38%, 4/01/20    375  385,312 
      5,565,913 
Multi-Utilities — 1.5%       
CenterPoint Energy, Inc.:       
     5.95%, 2/01/17    3,150  3,317,114 
     6.50%, 5/01/18    3,350  3,652,056 
      6,969,170 
Multiline Retail — 0.8%       
Dollar General Corp., 10.63%, 7/15/15    3,275  3,639,344 
Oil, Gas & Consumable Fuels — 3.6%       
Enbridge Energy Partners LP, 9.88%, 3/01/19    2,100  2,780,114 
Enterprise Products Operating LLC, 6.65%, 4/15/18  4,200  4,785,682 
Kinder Morgan Energy Partners LP, 6.85%, 2/15/20  4,200  4,836,888 
ONEOK Partners LP, 8.63%, 3/01/19    3,400  4,267,129 
      16,669,813 
Paper & Forest Products — 2.5%       
Georgia-Pacific LLC, 8.25%, 5/01/16 (a)    3,400  3,723,000 
International Paper Co.:       
     7.50%, 8/15/21    3,325  3,905,575 
     7.30%, 11/15/39    3,400  3,769,549 
      11,398,124 
Pharmaceuticals — 8.5%       
Abbott Laboratories:       
     6.15%, 11/30/37    588  656,301 
     6.00%, 4/01/39    5,891  6,487,858 
Bristol-Myers Squibb Co.:       
     5.88%, 11/15/36    5,000  5,281,645 
     6.13%, 5/01/38    1,471  1,605,997 
Eli Lilly & Co., 5.95%, 11/15/37    1,471  1,600,638 
GlaxoSmithKline Capital, Inc., 6.38%, 5/15/38    7,250  8,207,711 
Merck & Co., Inc., 6.50%, 12/01/33    2,070  2,393,088 
Pfizer, Inc., 7.20%, 3/15/39    6,250  7,756,431 
Schering-Plough Corp., 6.55%, 9/15/37    4,572  5,333,988 
      39,323,657 
Real Estate Investment Trusts (REITs) — 3.1%       
AvalonBay Communities, Inc.:       
     5.70%, 3/15/17    3,350  3,588,939 
     6.10%, 3/15/20    3,400  3,684,668 
ERP Operating LP:       
     5.38%, 8/01/16    3,350  3,533,215 
     5.75%, 6/15/17    3,405  3,651,372 
      14,458,194 
Semiconductors & Semiconductor Equipment — 1.0%     
KLA-Tencor Corp., 6.90%, 5/01/18    1,928  2,132,073 
National Semiconductor Corp., 6.60%, 6/15/17    2,334  2,570,472 
      4,702,545 
Specialty Retail — 1.0%       
AutoNation, Inc., 6.75%, 4/15/18    1,965  1,972,369 
AutoZone, Inc., 7.13%, 8/01/18    1,350  1,560,389 
Ltd. Brands, Inc., 7.00%, 5/01/20 (c)    980  999,600 
      4,532,358 
Tobacco — 1.8%       
Altria Group, Inc.:       
     9.70%, 11/10/18    3,400  4,275,809 
     9.25%, 8/06/19    3,350  4,138,195 
      8,414,004 

    Par   
Corporate Bonds    (000)  Value 
Wireless Telecommunication Services — 4.0%       
Cricket Communications, Inc., 7.75%, 5/15/16  $ 670  $ 695,125 
Nextel Communications, Inc., Series E,       
 6.88%, 10/31/13    2,340  2,299,050 
SBA Tower Trust, 5.10%, 4/15/42 (a)    15,225  15,681,834 
      18,676,009 
Total Corporate Bonds — 76.6%      355,058,445 
Preferred Securities       
Capital Trusts       
Building Products — 0.3%       
C8 Capital SPV Ltd., 6.64% (a)(b)(d)    1,960  1,429,702 
Capital Markets — 4.2%       
Ameriprise Financial, Inc., 7.52%, 6/01/66 (b)    2,500  2,525,000 
Lehman Brothers Holdings Capital Trust V,       
 2.09% (d)(e)(f)    6,400  640 
State Street Capital Trust III, 8.25% (b)(d)    2,920  2,998,227 
State Street Capital Trust IV, 1.26%, 6/01/67 (b)  18,235  14,055,811 
      19,579,678 
Commercial Banks — 7.7%       
Bank of Ireland Capital Funding II, LP,       
 5.57% (a)(b)(d)(e)(f)    1,715  1,217,650 
Bank of Ireland Capital Funding III, LP,       
 6.11% (a)(b)(d)(e)(f)    2,951  2,095,210 
Bank One Capital III, 8.75%, 9/01/30    2,000  2,393,608 
Barclays Bank Plc, 5.93% (a)(b)(d)    2,500  2,262,500 
First Empire Capital Trust II, 8.28%, 6/01/27    3,630  3,370,488 
HSBC Capital Funding LP/Jersey Channel Islands,     
 10.18% (a)(b)(d)(g)    4,835  6,183,965 
Lloyds Banking Group Plc, 6.66% (a)(b)(d)    5,000  3,300,000 
National City Preferred Capital Trust I, 12.00% (b)(d)  1,100  1,273,162 
NationsBank Capital Trust III, 0.83%, 1/15/27 (b)  13,470  9,798,172 
SunTrust Preferred Capital I, 5.85% (b)(d)    307  240,227 
USB Capital XIII Trust, 6.63%, 12/15/39    3,500  3,680,635 
      35,815,617 
Diversified Financial Services — 1.7%       
Farm Credit Bank of Texas, Series 1, 7.56% (b)(d)  2,500  2,133,175 
JPMorgan Chase Capital XXIII, 1.25%, 5/15/77 (b)  7,500  5,824,718 
      7,957,893 
Electric Utilities — 0.6%       
PPL Capital Funding, 6.70%, 3/30/67 (b)    3,000  2,745,000 
Insurance — 13.5%       
AXA SA, 6.38% (a)(b)(d)    3,000  2,670,000 
Ace Capital Trust II, 9.70%, 4/01/30    5,000  6,069,070 
The Allstate Corp., 6.50%, 5/15/67 (b)    5,000  4,800,000 
Aon Corp., 8.21%, 1/01/27    2,500  2,723,765 
Chubb Corp., 6.38%, 3/29/67 (b)    2,000  2,002,500 
Farmers Exchange Capital, 7.05%, 7/15/28 (a)    2,500  2,358,193 
GE Global Insurance Holding Corp., 7.75%, 6/15/30  2,000  2,198,502 
Genworth Financial, Inc., 6.15%, 11/15/66 (b)    3,000  2,400,000 
Liberty Mutual Group, Inc., 10.75%, 6/15/88 (a)(b)  2,925  3,407,625 
Lincoln National Corp., 7.00%, 5/17/66 (b)    3,350  3,098,750 
MetLife, Inc., 6.40%, 12/15/66    6,825  6,449,625 
Nationwide Life Global Funding I, 6.75%, 5/15/67  7,000  5,985,000 
Principal Life Insurance Co., 8.00%, 3/01/44 (a)  2,500  2,611,485 
Progressive Corp., 6.70%, 6/15/67 (b)(g)    2,000  1,981,922 
Reinsurance Group of America, 6.75%, 12/15/65 (b)  3,000  2,840,376 
The Travelers Cos., Inc., 6.25%, 3/15/67 (b)    3,000  2,950,431 

See Notes to Financial Statements.

16 SEMI-ANNUAL REPORT

APRIL 30, 2010


Schedule of Investments (continued)

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

(Percentages shown are based on Net Assets)

  Par   
Capital Trusts  (000)  Value 
Insurance (concluded)     
ZFS Finance (USA) (a)(b):     
     Trust IV, 5.88%, 5/09/32  $ 379  $ 362,089 
     Trust V, 6.50%, 5/09/67  4,312  4,128,740 
Zenith National Insurance Capital Trust I,     
 8.55%, 8/01/28 (a)  3,750  3,243,750 
    62,281,823 
Multi-Utilities — 1.4%     
Dominion Resources Capital Trust I,     
 7.83%, 12/01/27  2,500  2,582,335 
Dominion Resources, Inc., 7.50%, 6/30/66 (b)  3,900  3,958,500 
    6,540,835 
Oil, Gas & Consumable Fuels — 1.3%     
Enterprise Products Operating LLC,     
 8.38%, 8/01/66 (b)  2,000  2,080,000 
TransCanada PipeLines Ltd., 6.35%, 5/15/67 (b)  4,000  3,846,568 
    5,926,568 
Road & Rail — 0.8%     
BNSF Funding Trust I, 6.61%, 12/15/55 (b)  3,750  3,703,125 
Total Capital Trusts — 31.5%    145,980,241 
Preferred Stocks  Shares   
Capital Markets — 0.0%     
Deutsche Bank Contingent Capital Trust II, 6.55%  530  11,750 
Commercial Banks — 7.1%     
Barclays Bank Plc, 8.13% (h)  225,000  5,661,000 
First Tennessee Bank NA, 3.75% (a)(b)  4,650  2,976,000 
Provident Financial Group, Inc., 7.75%  166,800  4,149,150 
Royal Bank of Scotland Group Plc,     
 Series M, 6.40%  15,000  200,100 
SG Preferred Capital II, 6.30%  23,000  19,887,813 
    32,874,063 
Diversified Financial Services — 1.0%     
Falcons Funding Trust I, 8.88% (a)(b)  4,750  4,736,641 
Electric Utilities — 3.0%     
Alabama Power Co.:     
     5.83%  14,000  348,320 
     6.50%  145,000  3,768,550 
Entergy Arkansas, Inc., 6.45%  114,400  2,713,431 
Entergy Louisiana LLC, 6.95%  49,850  4,877,260 
Interstate Power & Light Co., Series B, 8.38%  80,000  2,338,400 
    14,045,961 
Insurance — 6.8%     
Aspen Insurance Holdings Ltd., 7.40% (b)  194,000  4,500,800 
Axis Capital Holdings Ltd.:     
     Series A, 7.25%  129,300  3,153,627 
     Series B, 7.50% (b)  36,000  3,402,000 
Endurance Specialty Holdings Ltd.,     
 Series A, 7.75%  139,200  3,378,384 
MetLife, Inc., Series B, 6.50%  237,606  5,757,193 
Prudential Plc, 6.50%  92,400  2,137,212 
Zurich RegCaPS Funding Trust II, 6.58% (a)(b)  9,800  9,077,250 
    31,406,466 
Real Estate Investment Trusts (REITs) — 2.4%     
BRE Properties, Inc., Series D, 6.75%  35,000  798,700 
Kimco Realty Corp., Series F, 6.65%  50,000  1,164,000 

Preferred Stocks    Shares  Value 
Real Estate Investment Trusts (REITs) (concluded)       
Public Storage:       
Series F, 6.45%    40,000  $ 941,600 
Series I, 7.25%    160,000  4,065,600 
Series M, 6.63%    71,900  1,767,302 
Regency Centers Corp., Series D, 7.25%    100,000  2,360,000 
      11,097,202 
Wireless Telecommunication Services — 0.6%       
Centaur Funding Corp., 9.08%    2,423  2,666,057 
Total Preferred Stocks — 20.9%      96,838,140 
Trust Preferreds       
Communications Equipment — 0.4%       
Corporate-Backed Trust Certificates, Motorola       
 Debenture Backed, Series 2002-14, 8.38%, 11/15/28  80,000  1,949,802 
Consumer Finance — 1.3%       
Capital One Capital II, 7.50%, 6/15/66    253,466  6,090,874 
Electric Utilities — 0.8%       
Georgia Power Co., Series O, 1.48%, 4/15/33    50,000  1,252,353 
HECO Capital Trust III, 6.50%, 3/18/34    50,000  1,264,993 
National Rural Utilities Cooperative Finance Corp.,       
 6.75%, 2/15/43    50,000  1,237,251 
      3,754,597 
Insurance — 4.2%       
ABN AMRO North America Capital Funding       
 Trust II, 0.31% (a)(b)(d)    440,000  8,726,578 
Lincoln National Capital VI, Series F,       
 6.75%, 9/11/52    131,034  3,102,494 
W.R. Berkley Capital Trust II, 6.75%, 7/26/45    295,000  7,264,742 
      19,093,814 
Total Trust Preferreds — 6.7%      30,889,087 
Total Preferred Securities — 59.1%      273,707,468 
    Par   
Taxable Municipal Bonds    (000)   
Metropolitan Transportation Authority, RB,       
 Build America Bonds, 6.55%, 11/15/31  $ 3,450  3,637,335 
State of California, GO, Build America Bonds,       
 7.35%, 11/01/39    1,725  1,863,655 
State of Illinois, GO, Pension, 5.10%, 6/01/33    3,475  2,997,292 
Total Taxable Municipal Bonds — 1.8%      8,498,282 
Total Long-Term Investments       
(Cost — $650,680,840) — 137.5%      637,264,195 
Short-Term Securities    Shares   
BlackRock Liquidity Funds, TempFund,       
 Institutional Class, 0.13% (i)(j)  1,817,048  1,817,048 
Total Short-Term Securities       
(Cost — $1,817,048) — 0.4%      1,817,048 
Total Investments (Cost — $652,497,888*) — 137.9%      639,081,243 
Liabilities in Excess of Other Assets — (1.4)%      (6,662,171) 
Preferred Shares, at Redemption Value — (36.5)%      (169,091,457) 
Net Assets Applicable to Common Shares — 100.0%      $ 463,327,615 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

APRIL 30, 2010

17


Schedule of Investments (continued)

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

* The cost and unrealized appreciation (depreciation) of investments as of April 30,
2010, as computed for federal income tax purposes, were as follows:

Aggregate cost  $ 654,272,212 
Gross unrealized appreciation  $ 15,173,099 
Gross unrealized depreciation  (30,364,068) 
Net unrealized depreciation  $ (15,190,969) 

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

    Unrealized 
Counterparty  Value  Appreciation 
Bank of America, NA  $ 999,600  $ 19,600 

(d) Security is perpetual in nature and has no stated maturity date.
(e) Issuer filed for bankruptcy and/or is in default of interest payments.
(f) Non-income producing security.
(g) All or a portion of security has been pledged as collateral in connection with open
reverse repurchase agreements.
(h) All or a portion of security has been pledged as collateral in connection with open
financial futures contracts.
(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:

        Shares    Shares   
        Held at    Held at   
      October 31,  Net     April 30,   
  Affiliate      2009  Activity  2010  Income 
  BlackRock Liquidity           
     Funds, TempFund,           
     Institutional Class  41,019,397     (39,202,349)      1,817,048  $87,691 
(j) Represents the current yield as of report date.     
  For Fund compliance purposes, the Fund's industry classifications refer to any one 
  or more of the industry sub-classifications used by one or more widely recognized 
  market indexes or rating group indexes, and/or as defined by Fund management. 
  This definition may not apply for purposes of this report, which may combine such 
  industry sub-classifications for reporting ease.     
  Reverse repurchase agreements outstanding as of April 30, 2010 were as follows: 
            Interest  Trade  Maturity  Net Closing  Face 
  Counterparty    Rate  Date  Date  Amount  Amount 
  Credit Suisse             
     Securities         0.38%  4/22/10  5/24/10  $ 7,709,771  $ 7,707,202 
  Financial futures contracts purchased as of April 30, 2010 were as follows: 
        Expiration  Notional  Unrealized 
  Contracts       Issue  Date  Amount  Appreciation 
  22  30-Year U.S.         
    Treasury Bond  June 2010  $2,548,095  $ 71,280 

Credit default swaps on single-name issues — buy protection outstanding as of
April 30, 2010 were as follows:

  Pay      Notional   
  Fixed  Counter-    Amount  Unrealized 
Issuer  Rate  party  Expiration  (000)  Depreciation 
Nordstrom, Inc.  5.20%  Deutsche  June     
    Bank AG  2014  $ 2,000  $ (351,837) 

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 assets
and liabilities
Level 2 — other observable inputs (including, but not limited to: quoted prices for
similar assets or liabilities in markets that are active, quoted prices for identical
or similar assets or liabilities in markets that are not active, inputs other than
quoted prices that are observable for the assets or liabilities (such as interest
rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs)
Level 3 — unobservable inputs based on the best information available in the
circumstances, to the extent observable inputs are not available (including the
Fund's own assumptions used in determining the fair value of investments)
The inputs or methodologies 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 tables summarize the inputs used as of April 30, 2010 in determining
the fair valuation of the Fund's investments:

Investments in Securities

Valuation Inputs  Level 1  Level 2  Level 3  Total 
Assets:           
Long-Term           
Investments:           
   Capital           
   Trusts      $145,980,241    $145,980,241 
   Corporate           
   Bonds      354,851,005 $  207,440  355,058,445 
   Preferred           
   Stocks  $42,352,538  54,485,602    96,838,140 
   Taxable           
   Municipal           
   Bonds      8,498,282    8,498,282 
   Trust           
   Preferreds  22,162,509  8,726,578    30,889,087 
Short-Term           
Securities    1,817,048      1,817,048 
Total  $66,332,095  $572,541,708 $  207,440  $639,081,243 
Other Financial Instruments1

Valuation Inputs  Level 1  Level 2  Level 3  Total 
Assets  $ 71,280      $ 71,280 
Liabilities      $ (351,837)    (351,837) 
Total  $ 71,280  $ (351,837)    $ (280,557) 

1 Other financial instruments are financial futures contracts and swaps, which are
shown at the unrealized appreciation/depreciation on the instrument.

See Notes to Financial Statements.

18 SEMI-ANNUAL REPORT

APRIL 30, 2010


Schedule of Investments (concluded)

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

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

    Investments in Securities   
     Capital  Corporate  Preferred   
  Trusts  Bonds  Stocks  Total 
Balance, as of October 31, 2009  $ 2,271,150  $ 266,121  $ 13,800,000  $ 16,337,271 
Accrued discounts/premiums         
Net realized gain (loss)  (614,833)  27    (614,806) 
Net change in unrealized appreciation/depreciation1  1,308,795  26,449  6,087,813  7,423,057 
Net purchases (sales)  (2,965,112)  (85,157)    (3,050,269) 
Net transfers in/out      (19,887,813)  (19,887,813) 
Balance, as of April 30, 2010  $ —  $ 207,440    $ 207,440 

1 Included in the related net change in unrealized appreciation/depreciation on the Statements of Operations. The change in unrealized appreciation/depreciation on securities
still held at April 30, 2010 was $26,449.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

APRIL 30, 2010

19


Schedule of Investments April 30, 2010 (Unaudited)

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

Common Stocks  Shares  Value 
Specialty Retail — 0.0%     
Lazydays RV Center, Inc. (a)  8,575  $ 33,444 
Total Common Stocks — 0.0%    33,444 
  Par   
Corporate Bonds  (000)   
Aerospace & Defense — 2.5%     
BE Aerospace, Inc., 8.50%, 7/01/18  $ 1,215  1,300,050 
Bombardier, Inc., 7.75%, 3/15/20 (b)  1,405  1,492,813 
United Technologies Corp., 5.70%, 4/15/40  2,500  2,610,327 
    5,403,190 
Airlines — 0.4%     
Continental Airlines Pass-Through Certificates,     
Series 2009-2, Class B, 9.25%, 5/10/17  775  829,250 
Auto Components — 0.6%     
Icahn Enterprises LP (b):     
     7.75%, 1/15/16  420  408,450 
     8.00%, 1/15/18  1,000  972,500 
    1,380,950 
Beverages — 0.4%     
Constellation Brands, Inc., 7.25%, 5/15/17  955  974,100 
Capital Markets — 1.7%     
Ameriprise Financial, Inc., 5.30%, 3/15/20  1,500  1,561,253 
Morgan Stanley, 7.30%, 5/13/19  1,950  2,141,252 
    3,702,505 
Chemicals — 0.3%     
CF Industries, Inc., 7.13%, 5/01/20  525  552,562 
Commercial Banks — 0.7%     
RESPARCS Funding LP I, 8.00% (a)(c)(d)  4,000  1,620,000 
Commercial Services & Supplies — 2.6%     
Browning-Ferris Industries, Inc., 7.40%, 9/15/35  1,824  2,081,545 
Corrections Corp.of America, 7.75%, 6/01/17  1,600  1,696,000 
Waste Management, Inc., 6.13%, 11/30/39  1,950  2,030,512 
    5,808,057 
Communications Equipment — 0.7%     
Brocade Communications Systems, Inc.,     
6.88%, 1/15/20 (b)  1,450  1,497,125 
Consumer Finance — 5.3%     
American Express Co., 8.13%, 5/20/19  1,950  2,388,343 
Capital One Bank USA NA, 8.80%, 7/15/19  1,625  1,992,651 
Inmarsat Finance Plc, 7.38%, 12/01/17 (b)  1,020  1,063,350 
SLM Corp., 4.00%, 7/25/14 (e)  6,600  6,144,534 
    11,588,878 
Containers & Packaging — 0.9%     
Ball Corp.:     
     7.13%, 9/01/16  850  903,125 
     6.75%, 9/15/20  870  889,575 
Impress Holdings BV, 3.43%, 9/15/13 (b)(e)  240  230,400 
    2,023,100 
Diversified Financial Services — 2.2%     
Bank of America Corp., 7.63%, 6/01/19  3,325  3,795,547 
GMAC, Inc., 8.30%, 2/12/15 (b)  1,000  1,043,750 
    4,839,297 
Diversified Telecommunication Services — 4.0%     
AT&T, Inc., 6.30%, 1/15/38  2,000  2,077,838 
New Communications Holdings, Inc.,     
8.50%, 4/15/20 (b)  1,500  1,545,000 
Qwest Corp., 8.38%, 5/01/16  1,360  1,550,400 
Verizon Communications, Inc., 7.35%, 4/01/39  1,950  2,315,533 

    Par   
Corporate Bonds    (000)  Value 
Diversified Telecommunication Services (concluded)       
Windstream Corp.:       
     8.63%, 8/01/16  $ 320  $ 327,600 
     7.88%, 11/01/17    900  893,250 
      8,709,621 
Electric Utilities — 1.7%       
Progress Energy Inc., 7.00%, 10/30/31    2,000  2,284,848 
Southern California Edison Co., 5.50%, 3/15/40    1,400  1,424,937 
      3,709,785 
Food & Staples Retailing — 3.4%       
CVS Caremark Corp., 6.30%, 6/01/62 (e)    3,100  2,991,500 
Wal-Mart Stores, Inc.:       
     5.25%, 9/01/35    1,850  1,821,834 
     6.20%, 4/15/38    2,500  2,752,035 
      7,565,369 
Food Products — 0.8%       
Kraft Foods, Inc.:       
     6.50%, 8/11/17    800  906,422 
     6.13%, 8/23/18    800  882,740 
      1,789,162 
Gas Utilities — 0.9%       
Nisource Finance Corp., 6.13%, 3/01/22    1,950  2,070,426 
Health Care Equipment & Supplies — 1.0%       
Medtronic, Inc.:       
     6.50%, 3/15/39    300  346,496 
     5.55%, 3/15/40    1,765  1,822,583 
      2,169,079 
Health Care Providers & Services — 3.1%       
Aetna, Inc., 6.75%, 12/15/37    1,725  1,901,110 
HCA, Inc., 7.25%, 9/15/20 (b)    1,250  1,307,813 
HCA, Inc./DE, 8.50%, 4/15/19 (b)    800  879,000 
Tenet Healthcare Corp., 10.00%, 5/01/18 (b)    745  848,369 
UnitedHealth Group, Inc., 6.88%, 2/15/38    1,725  1,895,242 
      6,831,534 
Hotels, Restaurants & Leisure — 0.0%       
Greektown Holdings, LLC, 10.75%, 12/01/13 (a)(b)(d)  362  23,982 
Insurance — 4.9%       
Lincoln National Corp.:       
     8.75%, 7/01/19    850  1,060,317 
     6.25%, 2/15/20    1,725  1,843,799 
Northwestern Mutual Life Insurance,       
6.06%, 3/30/40 (b)    1,800  1,859,173 
Principal Financial Group, Inc., 8.88%, 5/15/19    475  585,939 
Prudential Financial, Inc., 6.63%, 12/01/37    1,725  1,901,757 
QBE Insurance Group Ltd., 9.75%, 3/14/14 (b)    2,975  3,623,449 
      10,874,434 
Life Sciences Tools & Services — 1.8%       
Bio-Rad Laboratories, Inc., 8.00%, 9/15/16    1,830  1,953,525 
Life Technologies Corp., 6.00%, 3/01/20    2,000  2,104,320 
      4,057,845 
Machinery — 1.7%       
AGY Holding Corp., 11.00%, 11/15/14    390  343,200 
Ingersoll-Rand Global Holding Co., Ltd., 9.50%, 4/15/14  1,725  2,115,017 
Navistar International Corp., 8.25%, 11/01/21    1,245  1,313,475 
      3,771,692 
Media — 7.4%       
CMP Susquehanna Corp., 3.20%, 5/15/14 (a)(b)(d)    9  180 
CSC Holdings, Inc., 8.63%, 2/15/19 (b)    580  633,650 
CSC Holdings LLC, 8.50%, 6/15/15 (b)    800  852,000 
Comcast Corp., 6.30%, 11/15/17    1,725  1,911,980 
Cox Communications, Inc., 8.38%, 3/01/39 (b)    1,725  2,239,935 

See Notes to Financial Statements.

20 SEMI-ANNUAL REPORT

APRIL 30, 2010


Schedule of Investments (continued)

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

    Par   
Corporate Bonds    (000)  Value 
Media (concluded)       
DISH DBS Corp.:       
     7.00%, 10/01/13  $ 850  $ 879,750 
     7.88%, 9/01/19    550  577,500 
Intelsat Corp., 9.25%, 6/15/16    850  896,750 
News America, Inc., 6.15%, 3/01/37    2,000  2,047,648 
Time Warner Cable, Inc., 6.75%, 6/15/39    1,950  2,107,729 
Time Warner, Inc., 7.70%, 5/01/32    2,000  2,347,018 
UPC Germany GmbH, 8.13%, 12/01/17 (b)    505  515,100 
Virgin Media Secured Finance Plc, 6.50%, 1/15/18 (b)  1,300  1,306,500 
      16,315,740 
Metals & Mining — 1.2%       
Phelps Dodge Corp., 7.13%, 11/01/27    1,400  1,449,169 
Teck Resources Ltd., 10.75%, 5/15/19    850  1,058,250 
United States Steel Corp., 7.38%, 4/01/20    175  179,813 
      2,687,232 
Multi-Utilities — 1.5%       
CenterPoint Energy, Inc.:       
     5.95%, 2/01/17    1,500  1,579,578 
     6.50%, 5/01/18    1,600  1,744,266 
      3,323,844 
Multiline Retail — 0.8%       
Dollar General Corp., 10.63%, 7/15/15    1,550  1,722,437 
Oil, Gas & Consumable Fuels — 3.7%       
EXCO Resources, Inc., 7.25%, 1/15/11    40  39,950 
Enbridge Energy Partners LP, 9.88%, 3/01/19    1,000  1,323,864 
Enterprise Products Operating LLC, 6.65%, 4/15/18    2,000  2,278,896 
Kinder Morgan Energy Partners LP, 6.85%, 2/15/20    2,000  2,303,280 
ONEOK Partners LP, 8.63%, 3/01/19    1,725  2,164,941 
      8,110,931 
Paper & Forest Products — 3.1%       
Georgia-Pacific LLC, 8.25%, 5/01/16 (b)    1,635  1,790,325 
International Paper Co.:       
     7.50%, 8/15/21    1,625  1,908,740 
     8.70%, 6/15/38    900  1,152,653 
     7.30%, 11/15/39    1,725  1,912,492 
      6,764,210 
Pharmaceuticals — 7.8%       
Abbott Laboratories:       
     6.15%, 11/30/37    235  262,297 
     6.00%, 4/01/39    2,777  3,058,357 
Bristol-Myers Squibb Co.:       
     5.88%, 11/15/36    1,994  2,106,320 
     6.13%, 5/01/38    588  641,962 
Eli Lilly & Co., 5.95%, 11/15/37    588  639,820 
GlaxoSmithKline Capital, Inc., 6.38%, 5/15/38    3,460  3,917,059 
Merck & Co., Inc., 6.50%, 12/01/33    990  1,144,520 
Pfizer, Inc., 7.20%, 3/15/39    2,500  3,102,573 
Schering-Plough Corp., 6.55%, 9/15/37    1,979  2,308,828 
      17,181,736 
Professional Services — 0.0%       
FTI Consulting, Inc., 7.75%, 10/01/16    100  102,875 
Real Estate Investment Trusts (REITs) — 3.3%       
AvalonBay Communities, Inc.:       
     5.70%, 3/15/17    1,625  1,740,903 
     6.10%, 3/15/20    1,725  1,869,427 
ERP Operating LP:       
     5.38%, 8/01/16    1,625  1,713,873 
     5.75%, 6/15/17    1,715  1,839,091 
      7,163,294 

Corporate Bonds    (000)  Value 
Semiconductors & Semiconductor Equipment — 1.0%       
KLA-Tencor Corp., 6.90%, 5/01/18  $ 918  $ 1,015,167 
National Semiconductor Corp., 6.60%, 6/15/17    1,123  1,236,778 
      2,251,945 
Specialty Retail — 1.0%       
AutoNation, Inc., 6.75%, 4/15/18    940  943,525 
AutoZone, Inc., 7.13%, 8/01/18    650  751,299 
Ltd. Brands, Inc., 7.00%, 5/01/20 (g)    470  479,400 
      2,174,224 
Tobacco — 1.9%       
Altria Group, Inc.:       
9.70%, 11/10/18    1,725  2,169,345 
9.25%, 8/06/19    1,600  1,976,451 
      4,145,796 
Wireless Telecommunication Services — 0.6%       
Cricket Communications, Inc., 7.75%, 5/15/16    325  337,188 
Nextel Communications, Inc., Series E,       
6.88%, 10/31/13    1,105  1,085,662 
      1,422,850 
Total Corporate Bonds — 74.9%      165,159,057 
Investment Companies    Shares   
ProShares UltraShort Real Estate    12,000  310,080 
Total Investment Companies — 0.1%      310,080 
Preferred Securities       
    Par   
Capital Trusts    (000)   
Building Products — 0.3%       
C8 Capital SPV Ltd., 6.64% (b)(c)(e)  $ 970  707,557 
Capital Markets — 4.0%       
State Street Capital Trust III, 8.25% (c)(e)    1,385  1,422,104 
State Street Capital Trust IV, 1.26%, 6/01/67 (e)    9,675  7,457,635 
      8,879,739 
Commercial Banks — 7.8%       
Bank of Ireland Capital Funding II, LP, 5.57% (a)(b)(c)(d)(e)  854  606,340 
Bank of Ireland Capital Funding III, LP, 6.11% (a)(b)(c)(d)(e)  1,471  1,044,410 
Barclays Bank Plc, 5.93% (b)(c)(e)    890  805,450 
CBA Capital Trust I, 5.81% (b)(c)    5,000  4,943,700 
FCB/NC Capital Trust I, 8.05%, 3/01/28    1,100  1,039,309 
NBP Capital Trust III, 7.38% (c)    2,000  1,590,000 
National City Preferred Capital Trust I, 12.00% (c)(e)    600  694,452 
SunTrust Preferred Capital I, 5.85% (c)(e)    303  237,097 
USB Capital XIII Trust, 6.63%, 12/15/39    1,725  1,814,027 
Wells Fargo Capital XIII, Series GMTN, 7.70% (c)(e)    1,700  1,768,000 
Westpac Capital Trust IV, 5.26% (b)(c)(e)    3,000  2,753,040 
      17,295,825 
Diversified Financial Services — 4.7%       
JPMorgan Chase Capital XXI, Series U,       
1.29%, 1/15/87 (e)    7,125  5,542,708 
JPMorgan Chase Capital XXIII, 1.25%, 5/15/77 (e)    6,190  4,807,334 
      10,350,042 
Electric Utilities — 0.4%       
PPL Capital Funding, 6.70%, 3/30/67 (e)    900  823,500 
Insurance — 7.5%       
AXA SA, 6.38% (b)(c)(e)    900  801,000 
The Allstate Corp., 6.50%, 5/15/67 (e)    900  864,000 
Chubb Corp., 6.38%, 3/29/67 (e)    900  901,125 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

APRIL 30, 2010

21


Schedule of Investments (continued)

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

  Par   
Capital Trusts  (000)  Value 
Insurance (concluded)     
Genworth Financial, Inc., 6.15%, 11/15/66 (e)  $ 1,475  $ 1,180,000 
Liberty Mutual Group, Inc., 10.75%, 6/15/88 (b)(e)  900  1,048,500 
Lincoln National Corp., 7.00%, 5/17/66 (e)  900  832,500 
MetLife, Inc., 6.40%, 12/15/66  900  850,500 
Nationwide Life Global Funding I, 6.75%, 5/15/67  900  769,500 
Progressive Corp., 6.70%, 6/15/67 (e)  900  891,865 
Reinsurance Group of America, 6.75%, 12/15/65 (e)  1,300  1,230,830 
The Travelers Cos., Inc,, 6.25%, 3/15/67 (e)  900  885,129 
White Mountains Re Group Ltd., 7.51% (b)(c)(e)  2,600  2,388,776 
ZFS Finance (USA) (b)(e):     
     Trust IV, 5.88%, 5/09/32  190  181,522 
     Trust V, 6.50%, 5/09/67  2,209  2,115,117 
Zenith National Insurance Capital Trust I,     
8.55%, 8/01/28 (b)  1,800  1,557,000 
    16,497,364 
Multi-Utilities — 0.4%     
Puget Sound Energy, Inc., Series A, 6.97%, 6/01/67 (e)  925  879,185 
Oil, Gas & Consumable Fuels — 0.4%     
TransCanada PipeLines Ltd., 6.35%, 5/15/67 (e)  900  865,478 
Total Capital Trusts — 25.5%    56,298,690 
Preferred Stocks  Shares   
Capital Markets — 0.0%     
Lehman Brothers Holdings Inc., Series D, 5.67% (c)(d)  31,100  2,519 
Commercial Banks — 2.5%     
Banesto Holdings, Ltd., Series A, 10.50% (b)  30,000  754,689 
First Republic Preferred Capital Corp., 7.25%  42,512  885,100 
Royal Bank of Scotland Group Plc, Series M, 6.40%  10,000  133,400 
Union Planter Preferred Funding Corp., 7.75%  60  3,780,000 
    5,553,189 
Diversified Financial Services — 1.7%     
JPMorgan Chase & Co., Series E, 6.15%  75,000  3,728,250 
Electric Utilities — 0.6%     
Alabama Power Co., 6.50%  50,000  1,299,500 
Insurance — 10.2%     
Arch Capital Group Ltd., Series A, 8.00%  67,414  1,701,529 
Aspen Insurance Holdings Ltd., 7.40% (e)  115,000  2,668,000 
Endurance Specialty Holdings Ltd., Series A, 7.75%  122,400  2,970,648 
MetLife, Inc., Series B, 6.50%  61,294  1,485,154 
PartnerRe Ltd., Series C, 6.75%  209,400  5,182,650 
Prudential Plc:     
     6.50%  62,000  1,434,060 
     6.50% (c)  6,000,000  5,235,000 
Zurich RegCaPS Funding Trust II, 6.58% (b)(e)  2,000  1,852,500 
    22,529,541 
Media — 1.5%     
CMP Susquehanna Radio Holdings Corp. (a)(b)(e)  2,052   
Comcast Holdings Corp., 2.00%, 11/15/29 (f)  110  3,340,068 
    3,340,068 
Real Estate Investment Trusts (REITs) — 2.2%     
BRE Properties, Inc., Series D, 6.75%  20,000  456,400 
Public Storage:     
     Series F, 6.45%  20,000  470,800 
     Series M, 6.63%  35,000  860,300 
SunTrust Real Estate Investment Trust, 9.00%  30  3,027,187 
    4,814,687 
Specialty Retail — 0.1%     
Lazydays RV Center, Inc., 8.00%  182  181,809 
Total Preferred Stocks — 18.8%    41,449,563 

Trust Preferreds  Shares  Value 
Capital Markets — 1.1%     
Structured Asset Trust Unit Repackagings (SATURNS):     
     Credit Suisse First Boston (USA), Inc. Debenture     
     Backed, 6.25%, 7/15/32  11,100  $ 249,903 
     Goldman Sachs Group, Inc. Debenture Backed,     
     6.00%, 2/15/33  102,900  2,097,199 
    2,347,102 
Diversified Financial Services — 0.1%     
PPLUS Trust Certificates, Series VAL-1, Class A,     
 7.25%, 4/15/32 (f)  11,100  276,510 
Food Products — 1.1%     
Corporate-Backed Trust Certificates, Kraft     
 Foods, Inc. Debenture Backed, Series 2003-11,     
 5.88%, 11/01/31  100,000  2,401,202 
Insurance — 1.1%     
Assured Guaranty Municipal Holdings, Inc.,     
 5.60%, 7/15/03 (f)  15,200  279,692 
Everest Re Capital Trust, 6.20%, 3/29/34  30,000  642,884 
The Phoenix Cos., Inc., 7.45%, 1/15/32  79,385  1,552,604 
    2,475,180 
Media — 1.4%     
Comcast Corp.:     
     7.00%, 9/15/55  50,000  1,251,825 
     6.63%, 5/15/56  73,000  1,772,135 
Corporate-Backed Trust Certificates, News     
 America Debenture Backed, Series 2002-9,     
 8.13%, 12/01/45 (f)  7,200  180,197 
    3,204,157 
Oil, Gas & Consumable Fuels — 1.7%     
Nexen, Inc., 7.35%, 11/01/43  155,000  3,834,702 
Wireless Telecommunication Services — 0.9%     
Structured Repackaged Asset-Backed Trust     
 Securities, Sprint Capital Corp. Debenture Backed,     
 Series 2004-2, 6.50%, 11/15/28  103,439  1,892,041 
Total Trust Preferreds — 7.4%    16,430,894 
Total Preferred Securities — 51.7%    114,179,147 
  Par   
Taxable Municipal Bonds  (000)   
Metropolitan Transportation Authority, RB, Build     
 America Bonds, 6.55%, 11/15/31  $ 1,675  1,765,952 
State of California, GO, Build America Bonds,     
 7.35%, 11/01/39  825  891,314 
State of Illinois, GO, Pension, 5.10%, 6/01/33  1,675  1,444,738 
Total Taxable Municipal Bonds — 1.9%    4,102,004 
Warrants (h)  Shares   
Media — 0.0%     
CMP Susquehanna Radio Holdings Corp.     
 (Expires 3/26/19) (b)  2,345   
Total Warrants — 0.0%     
Total Long Term Investments     
(Cost — $295,822,018) — 128.6%    283,783,732 

See Notes to Financial Statements.

22 SEMI-ANNUAL REPORT

APRIL 30, 2010


Schedule of Investments (continued)

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

Short-Term Securities  Shares  Value 
BlackRock Liquidity Funds, TempFund,     
Institutional Class, 0.13% (i)(j)  6,947,057  $ 6,947,057 
Total Short-Term Securities     
(Cost — $6,947,057) — 3.2%    6,947,057 
Total Investments (Cost — $302,769,075*) — 131.8%    290,730,789 
Other Assets Less Liabilities — 0.1%    300,013 
Preferred Shares, at Redemption Value — (31.9)%    (70,427,782) 
Net Assets Applicable to Common Shares — 100.0%    $ 220,603,020 

* The cost and unrealized appreciation (depreciation) of investments as of April 30,
2010, as computed for federal income tax purposes, were as follows:

Aggregate cost  $ 304,317,602 
Gross unrealized appreciation  $ 8,338,212 
Gross unrealized depreciation  (21,925,025) 
Net unrealized depreciation  $ (13,586,813) 

(a) Non-income producing security.
(b) 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.
(c) Security is perpetual in nature and has no stated maturity date.
(d) Issuer filed for bankruptcy and/or is in default of interest payments.
(e) Variable rate security. Rate shown is as of report date.
(f) Convertible security.
(g) When-issued security. Unsettled when-issued transactions were as follows:

    Unrealized 
Counterparty  Value  Appreciation 
Bank of America, NA  $ 479,400  $ 9,400 

(h) 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.
(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:

      Shares Held at          Shares Held at 
      October 31,  Net     April 30,   
  Affiliate      2009    Activity  2010  Income 
  BlackRock Liquidity             
   Funds, TempFund,             
   Institutional Class                                       51,450,797            (44,503,740) 6,947,057  $40,567 
(j) Represents the current yield as of report date.     
  For Fund compliance purposes, the Fund’s industry classifications refer to any one 
  or more of the industry sub-classifications used by one or more widely recognized 
  market indexes or rating group indexes, and/or as defined by Fund management. 
  This definition may not apply for purposes of this report, which may combine 
  industry sub-classifications for reporting ease.     
  Financial futures contracts purchased as of April 30, 2010 were as follows: 
        Expiration  Notional  Unrealized 
  Contracts  Issue  Date  Value  Appreciation 
     13  30-Year U.S.           
                                           Treasury Bond  June 2010  $ 1,505,693  $ 42,120 
  Credit default swaps on single-name issues — buy protection outstanding as of 
  April 30, 2010 were as follows:         
                Received        Notional   
      Fixed  Counter-    Amount  Unrealized 
  Issuer    Rate         party           Expiration  (000)  Depreciation 
  Nordstrom, Inc    5.20%  Deutsche  June     
        Bank AG  2014  $1,000  $ (175,919) 

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 assets
and liabilities
Level 2 — other observable inputs (including, but not limited to: quoted prices
for similar assets or liabilities in markets that are active, quoted prices for
identical or similar assets or liabilities in markets that are not active, inputs
other than quoted prices that are observable for the assets or liabilities (such
as interest rates, yield curves, volatilities, prepayment speeds, loss severities,
credit risks and default rates) or other market-corroborated inputs)
Level 3 — unobservable inputs based on the best information available in the
circumstances, to the extent observable inputs are not available (including the
Fund’s own assumptions used in determining the fair value of investments)
The inputs or methodologies 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 tables summarize the inputs used as of April 30, 2010 in determin-
ing the fair valuation of the Fund’s investments:

Investments in Securities

Valuation Inputs  Level 1  Level 2  Level 3  Total 
Assets:           
Long-Term           
Investments:           
   Capital           
   Trusts      $ 56,298,690    $ 56,298,690 
   Common           
   Stocks        $ 33,444  33,444 
   Corporate           
   Bonds      165,158,877  180  165,159,057 
   Investment           
   Companies .$  310,080      310,080 
   Preferred           
   Stocks  23,278,310  14,962,257  3,208,996  41,449,563 
   Taxable           
   Municipal           
   Bonds      4,102,004    4,102,004 
   Trust           
   Preferreds  16,151,202  279,692    16,430,894 
Short-Term           
Securities    6,947,057      6,947,057 
Total  $46,686,649  $240,801,520  $ 3,242,620  $290,730,789 
Other Financial Instruments1

Valuation Inputs  Level 1  Level 21  Level 3  Total 
Assets  $ 42,120      $ 42,120 
Liabilities      $ (175,919)    (175,919) 
Total  $ 42,120  $ (175,919)    $ (133,799) 

1 Other financial instruments are financial futures contracts and swaps, which are
shown at the unrealized appreciation/depreciation on the instrument.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

APRIL 30, 2010

23


Schedule of Investments (concluded)

BlackRock Credit Allocation Income Trust III (BPP)

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

    Investments in Securities   
  Common  Corporate  Preferred   
  Stocks    Bonds  Stocks  Total 
Balance, as of October 31, 2009    $ 12,000  $ 3,027,189  $ 3,039,189 
Accrued discounts/premiums         
Net realized gain (loss)         
Net change in unrealized appreciation/depreciation1      (2)  (2) 
Net purchases (sales)  $ 33,444  (11,820)  181,809  203,433 
Net transfers in/out         
Balance, as of April 30, 2010  $ 33,444  $ 180  $ 3,208,996  $ 3,242,620 

1 Included in the related net change in unrealized appreciation/depreciation on the Statements of Operations. The change in unrealized appreciation/depreciation on securities
still held at April 30, 2010 was $(2).

See Notes to Financial Statements.

24 SEMI-ANNUAL REPORT

APRIL 30, 2010


Schedule of Investments April 30, 2010 (Unaudited)

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

Common Stocks  Shares  Value 
Commercial Banks — 1.1%     
Citizens Banking Corp. (a)  6,406,596  $ 8,008,245 
Total Common Stocks — 1.1%    8,008,245 
  Par   
Corporate Bonds  (000)   
Aerospace & Defense — 2.6%     
BE Aerospace, Inc., 8.50%, 7/01/18  $ 3,575  3,825,250 
Bombardier, Inc., 7.75%, 3/15/20 (b)  4,500  4,781,250 
United Technologies Corp., 5.70%, 4/15/40  10,000  10,441,310 
    19,047,810 
Airlines — 0.3%     
Continental Airlines Pass-Through Certificates,     
Series 2009-2, Class B, 9.25%, 5/10/17  2,225  2,380,750 
Auto Components — 0.6%     
Icahn Enterprises LP (b):     
     7.75%, 1/15/16  1,700  1,653,250 
     8.00%, 1/15/18  2,500  2,431,250 
    4,084,500 
Beverages — 0.5%     
Constellation Brands, Inc., 7.25%, 5/15/17  3,230  3,294,600 
Capital Markets — 1.4%     
Ameriprise Financial, Inc., 5.30%, 3/15/20  4,500  4,683,757 
Lehman Brothers Holdings, Inc. (a)(c):     
     3.95%, 11/10/09  105  23,100 
     4.38%, 11/30/10  325  71,500 
Morgan Stanley, 7.30%, 5/13/19  4,750  5,215,870 
    9,994,227 
Chemicals — 0.3%     
CF Industries, Inc., 7.13%, 5/01/20  1,850  1,947,125 
Commercial Banks — 0.1%     
Kazkommerts Finance 2 BV, 9.20%, (d)(e)  500  430,000 
Commercial Services & Supplies — 2.1%     
Browning-Ferris Industries, Inc., 7.40%, 9/15/35  4,420  5,044,095 
Corrections Corp.of America, 7.75%, 6/01/17  4,835  5,125,100 
Waste Management, Inc., 6.13%, 11/30/39  4,750  4,946,118 
    15,115,313 
Communications Equipment — 0.5%     
Brocade Communications Systems, Inc.,     
6.88%, 1/15/20 (b)  3,580  3,696,350 
Consumer Finance — 4.0%     
American Express Co., 8.13%, 5/20/19  4,725  5,787,137 
Capital One Bank USA NA, 8.80%, 7/15/19  3,950  4,843,676 
Inmarsat Finance Plc, 7.38%, 12/01/17 (b)  2,975  3,101,438 
SLM Corp., 4.00%, 7/25/14 (e)  16,300  15,175,137 
    28,907,388 
Containers & Packaging — 0.7%     
Ball Corp.:     
     7.13%, 9/01/16  2,000  2,125,000 
     6.75%, 9/15/20  2,750  2,811,875 
    4,936,875 
Diversified Financial Services — 3.0%     
Bank of America Corp., 7.63%, 6/01/19  8,025  9,160,682 
GMAC, Inc., 8.30%, 2/12/15 (b)  3,700  3,861,875 
ING Groep NV, 5.78% (d)(e)(f)  10,000  8,629,300 
Stan IV Ltd., 2.14%, 7/20/11 (e)  283  240,550 
    21,892,407 

  Par   
Corporate Bonds  (000)  Value 
Diversified Telecommunication Services — 3.2%     
AT&T, Inc., 6.30%, 1/15/38  $ 5,000  $ 5,194,595 
New Communications Holdings, Inc.,     
8.50%, 4/15/20 (b)  4,500  4,635,000 
Qwest Corp., 8.38%, 5/01/16  3,285  3,744,900 
Verizon Communications, Inc., 7.35%, 4/01/39  4,700  5,581,029 
Windstream Corp.:     
     8.63%, 8/01/16  1,250  1,279,688 
     7.88%, 11/01/17  2,700  2,679,750 
    23,114,962 
Electric Utilities — 1.3%     
Progress Energy Inc., 7.00%, 10/30/31  5,000  5,712,120 
Southern California Edison Co., 5.50%, 3/15/40  3,850  3,918,576 
    9,630,696 
Food & Staples Retailing — 2.9%     
CVS Caremark Corp., 6.30%, 6/01/62 (e)  7,800  7,527,000 
Wal-Mart Stores, Inc.:     
     5.25%, 9/01/35  2,650  2,609,654 
     6.20%, 4/15/38  10,000  11,008,140 
    21,144,794 
Food Products — 0.6%     
Kraft Foods, Inc.:     
     6.50%, 8/11/17  1,985  2,249,058 
     6.13%, 8/23/18  1,990  2,195,816 
    4,444,874 
Gas Utilities — 0.7%     
Nisource Finance Corp., 6.13%, 3/01/22  4,750  5,043,346 
Health Care Equipment & Supplies — 1.2%     
Medtronic, Inc.:     
     6.50%, 3/15/39  1,050  1,212,734 
     5.55%, 3/15/40  7,058  7,288,268 
    8,501,002 
Health Care Providers & Services — 2.4%     
Aetna, Inc., 6.75%, 12/15/37  4,075  4,491,029 
HCA, Inc., 7.25%, 9/15/20 (b)  3,600  3,766,500 
HCA, Inc./DE, 8.50%, 4/15/19 (b)  2,000  2,197,500 
Tenet Healthcare Corp., 10.00%, 5/01/18 (b)  2,175  2,476,781 
UnitedHealth Group, Inc., 6.88%, 2/15/38  4,075  4,477,166 
    17,408,976 
IT Services — 0.6%     
International Business Machines Corp.,     
5.60%, 11/30/39  4,400  4,575,644 
Insurance — 3.4%     
Lincoln National Corp.:     
     8.75%, 7/01/19  2,000  2,494,864 
     6.25%, 2/15/20  4,075  4,355,641 
Northwestern Mutual Life Insurance,     
6.06%, 3/30/40 (b)  5,500  5,680,807 
Principal Financial Group, Inc., 8.88%, 5/15/19  1,145  1,412,421 
Prudential Financial, Inc., 6.63%, 12/01/37  4,075  4,492,557 
QBE Insurance Group Ltd., 9.75%, 3/14/14 (b)  4,973  6,056,945 
    24,493,235 
Life Sciences Tools & Services — 1.5%     
Bio-Rad Laboratories, Inc., 8.00%, 9/15/16  5,480  5,849,900 
Life Technologies Corp., 6.00%, 3/01/20  4,800  5,050,368 
    10,900,268 
Machinery — 1.3%     
Ingersoll-Rand Global Holding Co LTD, 9.50%, 4/15/14  4,075  4,996,345 
Navistar International Corp., 8.25%, 11/01/21  3,975  4,193,625 
    9,189,970 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

APRIL 30, 2010

25


Schedule of Investments (continued)

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

  Par   
Corporate Bonds  (000)  Value 
Media — 5.6%     
CSC Holdings LLC, 8.50%, 6/15/15 (b)  $ 2,300  $ 2,449,500 
CSC Holdings, Inc., 8.63%, 2/15/19 (b)  1,950  2,130,375 
Comcast Corp., 6.30%, 11/15/17  4,075  4,516,706 
Cox Communications, Inc., 8.38%, 3/01/39 (b)  4,075  5,291,440 
DISH DBS Corp:     
     7.00%, 10/01/13  1,950  2,018,250 
     7.88%, 9/01/19  1,850  1,942,500 
Intelsat Corp., 9.25%, 6/15/16  2,000  2,110,000 
News America, Inc., 6.15%, 3/01/37  4,850  4,965,546 
Time Warner Cable, Inc., 6.75%, 6/15/39  4,675  5,053,147 
Time Warner, Inc., 7.70%, 5/01/32  4,900  5,750,194 
UPC Germany GmbH, 8.13%, 12/01/17 (b)  1,225  1,249,500 
Virgin Media Secured Finance Plc, 6.50%, 1/15/18 (b)  3,175  3,190,875 
    40,668,033 
Metals & Mining — 0.9%     
Aleris International, Inc., 10.00%, 12/15/16 (a)(c)  5,000  25,000 
Phelps Dodge Corp., 7.13%, 11/01/27  3,500  3,622,924 
Teck Resources Ltd., 10.75%, 5/15/19  2,000  2,490,000 
United States Steel Corp., 7.38%, 4/01/20  550  565,125 
    6,703,049 
Multi-Utilities — 2.5%     
CenterPoint Energy, Inc.:     
     5.95%, 2/01/17  3,600  3,790,987 
     6.50%, 5/01/18  3,950  4,306,156 
Dominion Resources, Inc., 8.88%, 1/15/19  8,000  10,286,944 
    18,384,087 
Multiline Retail — 0.7%     
Dollar General Corp., 10.63%, 7/15/15  4,225  4,695,031 
Oil, Gas & Consumable Fuels — 2.7%     
Enbridge Energy Partners LP, 9.88%, 3/01/19  2,425  3,210,370 
Enterprise Products Operating LLC, 6.65%, 4/15/18  4,800  5,469,350 
Kinder Morgan Energy Partners LP, 6.85%, 2/15/20  4,800  5,527,872 
ONEOK Partners LP, 8.63%, 3/01/19  4,075  5,114,280 
    19,321,872 
Paper & Forest Products — 2.4%     
Georgia-Pacific LLC, 8.25%, 5/01/16 (b)  3,955  4,330,725 
International Paper Co.:     
     7.50%, 8/15/21  3,950  4,639,705 
     8.70%, 6/15/38  3,100  3,970,251 
     7.30%, 11/15/39  4,075  4,517,916 
    17,458,597 
Pharmaceuticals — 8.3%     
Abbott Laboratories:     
     6.15%, 11/30/37  942  1,051,422 
     6.00%, 4/01/39  9,405  10,357,886 
Bristol-Myers Squibb Co.:     
     5.88%, 11/15/36  8,015  8,466,477 
     6.13%, 5/01/38  2,353  2,568,939 
Eli Lilly & Co., 5.95%, 11/15/37  2,353  2,560,368 
GlaxoSmithKline Capital, Inc., 6.38%, 5/15/38  10,100  11,434,190 
Merck & Co., Inc., 6.50%, 12/01/33  2,885  3,335,294 
Pfizer, Inc., 7.20%, 3/15/39  10,000  12,410,290 
Schering-Plough Corp., 6.55%, 9/15/37  6,945  8,102,481 
    60,287,347 
Real Estate Investment Trusts (REITs) — 2.4%     
AvalonBay Communities, Inc.:     
     5.70%, 3/15/17  3,925  4,204,951 
     6.10%, 3/15/20  4,075  4,416,183 
ERP Operating LP:     
     5.38%, 8/01/16  3,925  4,139,662 
     5.75%, 6/15/17  4,080  4,375,213 
    17,136,009 

    Par   
Corporate Bonds    (000)  Value 
Semiconductors & Semiconductor Equipment — 3.1%       
KLA-Tencor Corp., 6.90%, 5/01/18  $ 2,208  $ 2,441,710 
National Semiconductor Corp.:       
     3.95%, 4/15/15    16,750  16,756,851 
     6.60%, 6/15/17    2,770  3,050,645 
      22,249,206 
Specialty Retail — 0.8%       
AutoNation, Inc., 6.75%, 4/15/18    2,775  2,785,406 
AutoZone, Inc., 7.13%, 8/01/18    1,550  1,791,558 
Ltd. Brands, Inc., 7.00%, 5/01/20 (g)    1,370  1,397,400 
      5,974,364 
Tobacco — 1.4%       
Altria Group, Inc.:       
     9.70%, 11/10/18    4,075  5,124,683 
     9.25%, 8/06/19    3,950  4,879,364 
      10,004,047 
Wireless Telecommunication Services — 3.5%       
Cricket Communications, Inc., 7.75%, 5/15/16    780  809,250 
Nextel Communications, Inc., Series E,       
6.88%, 10/31/13    2,890  2,839,425 
SBA Tower Trust, 5.10%, 4/15/42 (b)    21,250  21,887,617 
      25,536,292 
Total Corporate Bonds — 69.5%      502,593,046 
Investment Companies    Shares   
ProShares UltraShort Real Estate    30,000  775,200 
Total Investment Companies — 0.1%      775,200 
Preferred Securities       
    Par   
Capital Trusts    (000)   
Building Products — 0.6%       
C10 Capital SPV Ltd., 6.72% (b)(d)(e)  $ 5,000  3,655,700 
C8 Capital SPV Ltd., 6.64% (b)(d)(e)    1,580  1,152,515 
      4,808,215 
Capital Markets — 3.1%       
Credit Suisse Guernsey Ltd., 5.86% (d)(e)    1,050  990,937 
State Street Capital Trust III, 8.25% (d)(e)    1,740  1,786,615 
State Street Capital Trust IV, 1.26%, 6/01/67 (e)    25,245  19,459,225 
      22,236,777 
Commercial Banks — 14.2%       
BB&T Capital Trust IV, 6.82%, 6/12/77 (e)(f)    15,300  14,688,000 
Bank of Ireland Capital Funding II, LP, 5.57% (a)(b)(c)(d)(e)  1,422  1,009,620 
Bank of Ireland Capital Funding III, LP, 6.11% (a)(b)(c)(d)(e)  9,153  6,498,630 
Barclays Bank Plc (b)(d)(e):       
     5.93%    4,000  3,620,000 
     6.86%    11,500  10,522,500 
Commonwealth Bank of Australia, 6.02% (b)(d)(e)    20,000  19,073,160 
HSBC Capital Funding LP/Jersey Channel Islands,       
10.18% (b)(d)(e)    7,000  8,953,000 
Lloyds Banking Group Plc, 6.66% (b)(d)(e)    10,000  6,600,000 
National City Preferred Capital Trust I, 12.00% (d)(e)    3,713  4,297,500 
Shinsei Finance II (Cayman) Ltd., 7.16% (b)(d)(e)    1,005  775,421 
Standard Chartered Bank, 7.01% (b)(d)(e)    5,000  4,692,115 
USB Capital XIII Trust, 6.63%, 12/15/39    4,100  4,311,601 
Wells Fargo & Co., Series K, 7.98% (d)(e)    12,985  13,699,175 
Wells Fargo Capital XIII, Series GMTN, 7.70% (d)(e)    3,900  4,056,000 
      102,796,722 

See Notes to Financial Statements.

26 SEMI-ANNUAL REPORT

APRIL 30, 2010


Schedule of Investments (continued)

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

  Par   
Capital Trusts  (000)  Value 
Diversified Financial Services — 3.6%     
JPMorgan Chase Capital XXI, Series U,     
1.29%, 1/15/87 (e)(f)  $ 12,875  $ 10,015,772 
JPMorgan Chase Capital XXIII, 1.25%, 5/15/77 (e)(f)  20,695  16,072,337 
    26,088,109 
Electric Utilities — 0.5%     
PPL Capital Funding, 6.70%, 3/30/67 (e)  3,900  3,568,500 
Insurance — 10.6%     
AXA SA, 6.46% (b)(d)(e)  12,000  10,680,000 
Ace Capital Trust II, 9.70%, 4/01/30 (f)  4,000  4,855,256 
The Allstate Corp. 6.50%, 5/15/67 (e)  4,000  3,840,000 
Aon Corp., 8.21%, 1/01/27  4,000  4,358,024 
Chubb Corp., 6.38%, 3/29/67 (e)(f)  4,000  4,005,000 
Liberty Mutual Group, Inc., 10.75%, 6/15/88 (b)(e)  4,000  4,660,000 
Lincoln National Corp., 7.00%, 5/17/66 (e)  4,255  3,935,875 
MetLife, Inc., 6.40%, 12/15/66  4,550  4,299,750 
Nationwide Life Global Funding I, 6.75%, 5/15/67  4,000  3,420,000 
Progressive Corp., 6.70%, 6/15/67 (e)(f)  4,000  3,963,844 
Reinsurance Group of America, 6.75%, 12/15/65 (e)(f)  15,000  14,201,880 
Swiss Re Capital I LP, 6.85% (b)(d)(e)  3,000  2,784,270 
The Travelers Cos., Inc., 6.25%, 3/15/67 (e)(f)  4,000  3,933,908 
White Mountains Re Group Ltd., 7.51% (b)(d)(e)  4,400  4,042,544 
ZFS Finance (USA) (b)(e):     
     Trust IV, 5.88%, 5/09/32  599  572,273 
     Trust V, 6.50%, 5/09/67  3,331  3,189,432 
    76,742,056 
Multi-Utilities — 0.2%     
Puget Sound Energy, Inc., Series A, 6.97%, 6/01/67 (e)  1,575  1,496,990 
Oil, Gas & Consumable Fuels — 1.2%     
Enterprise Products Operating LLC, 8.38%, 8/01/66 (e)  4,500  4,680,000 
TransCanada PipeLines Ltd., 6.35%, 5/15/67 (e)(f)  4,000  3,846,568 
    8,526,568 
Real Estate Investment Trusts (REITs) — 1.5%     
Sovereign Real Estate Investment Corp., 12.00% (d)  10  10,900,000 
Total Capital Trusts — 35.5%    257,163,937 
Preferred Stocks  Shares   
Commercial Banks — 0.0%     
Royal Bank of Scotland Group Plc, Series M, 6.40%  15,000  200,100 
Diversified Financial Services — 0.9%     
Falcons Funding Trust I, 8.88% (b)(e)  5,650  5,634,110 
ING Groep NV:     
     7.05%  5,800  115,420 
     7.38%  40,000  818,353 
    6,567,883 
Diversified Telecommunication Services — 0.1%     
AT&T, Inc., 6.38%  750,000  790,563 
Electric Utilities — 4.1%     
Alabama Power Co., 6.50%  100,000  2,599,000 
Entergy Louisiana LLC, 6.95%  40,000  3,913,549 
Interstate Power & Light Co., Series B, 8.38%  785,000  22,945,550 
    29,458,099 
Insurance — 7.0%     
Arch Capital Group Ltd., Series A, 8.00%  100,000  2,524,000 
Aspen Insurance Holdings Ltd., 7.40% (e)  655,000  15,196,000 
Axis Capital Holdings Ltd., Series B, 7.50% (e)  180,000  17,010,000 
Endurance Specialty Holdings Ltd., Series A, 7.75%  369,000  8,955,630 
PartnerRe Ltd., Series C, 6.75%  265,600  6,573,600 
    50,259,230 

Preferred Stocks    Shares  Value 
Real Estate Investment Trusts (REITs) — 0.5%       
BRE Properties, Inc., Series D, 6.75%    30,000  $ 684,600 
iStar Financial, Inc., Series I, 7.50%    55,000  880,000 
Public Storage:       
Series F, 6.45%    30,000  706,200 
Series M, 6.63%    55,000  1,351,900 
      3,622,700 
Wireless Telecommunication Services — 1.5%       
Centaur Funding Corp., 9.08%    10,000  11,003,125 
Total Preferred Stocks — 14.1%      101,901,700 
Trust Preferreds       
Capital Markets — 0.0%       
Credit Suisse Guernsey Ltd., 7.90%, (d)    10,000  255,424 
Insurance — 0.6%       
W.R. Berkley Capital Trust II, 6.75%, 7/26/45    170,731  4,204,463 
Media — 1.5%       
Comcast Corp., 6.63%, 5/15/56    447,000  10,818,022 
Oil, Gas & Consumable Fuels — 0.4%       
Nexen, Inc., 7.35%, 11/01/43    120,000  2,968,802 
Total Trust Preferreds — 2.5%      18,246,711 
Total Preferred Securities — 52.1%      377,312,348 
    Par   
Taxable Municipal Bonds    (000)   
City of Chicago Illinois, RB, Build America Bonds,       
 6.85%, 1/01/38  $ 5,000  5,187,200 
Metropolitan Transportation Authority, RB,       
 Build America Bonds, 6.55%, 11/15/31    4,075  4,296,272 
State of California, GO, Build America Bonds,       
 7.35%, 11/01/39    2,050  2,214,779 
State of Illinois, GO, Pension, 5.10%, 6/01/33    4,075  3,514,810 
Total Taxable Municipal Bonds — 2.1%      15,213,061 
U.S. Treasury Obligations       
U.S. Treasury Notes, 4.63%, 2/15/40 (h)    75,000  76,183,575 
Total U.S. Treasury Obligations — 10.5%      76,183,575 
Total Long-Term Investments       
(Cost — $1,003,236,130) — 135.4%      980,085,475 
Short-Term Securities    Shares   
BlackRock Liquidity Funds, TempFund       
 Institutional Class, 0.13% (i)(j)  41,474,360  41,474,360 
Total Short-Term Securities       
(Cost — $41,474,360) — 5.7%      41,474,360 
Total Investments (Cost — $1,044,710,490*) — 141.1%    1,021,559,835 
Liabilities in Excess of Other Assets — (9.2)%      (66,648,040) 
Preferred Shares at Redemption Value — (31.9)%      (231,045,162) 
Net Assets Applicable to Common Shares — 100.0%      $ 723,866,633 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

APRIL 30, 2010

27


Schedule of Investments (continued)

BlackRock Credit Allocation Income Trust IV (BTZ)

* The cost and unrealized appreciation (depreciation) of investments as of April 30,
2010, as computed for federal income tax purposes, were as follows:

Aggregate cost  $1,057,868,824 
Gross unrealized appreciation  $ 29,341,029 
Gross unrealized depreciation  (65,650,018) 
Net unrealized depreciation  $ (36,308,989) 

(a) Non-income producing security.
(b) 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.
(c) Issuer filed for bankruptcy and/or is in default of interest payments.
(d) Security is perpetual in nature and has no stated maturity date.
(e) Variable rate security. Rate shown is as of report date.
(f) All or a portion of security has been pledged as collateral in connection with open
reverse repurchase agreements.
(g) When-issued security. Unsettled when-issued transactions were as follows:

    Unrealized 
Counterparty  Value  Appreciation 
Bank of America, NA  $1,397,400  $ 27,400 

(h) All or portion of security has been pledged as collateral in connection with open
financial futures contracts.
(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:

        Shares Held at      Shares Held at 
        October 31,  Net           April 30,   
  Affiliate        2009  Activity    2010  Income 
  BlackRock Liquidity               
   Funds, TempFund               
   Institutional Class  267,832,781     (226,358,421)         41,474,360             $ 160,242     
(j) Represents the current yield as of report date.         
  For Fund compliance purposes, the Fund’s industry classifications refer to any one 
  or more of the industry sub-classifications used by one or more widely recognized 
  market indexes or rating group indexes, and/or as defined by Fund management. 
  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, 2010 were as follows: 
      Interest  Trade  Maturity      Net Closing  Face 
  Counterparty   Rate  Date  Date      Amount     Amount 
  Credit Suisse                   
  International  0.38%  4/22/10  5/24/10    $68,676,775  $68,653,890 
  Financial futures contracts purchased as of April 30, 2010 were as follows: 
          Expiration    Notional  Unrealized 
  Contracts    Issue  Date      Value     Appreciation 
  380   10-Year US             
    Treasury Bond  June 2010  $44,273,953  $ 530,422 
  32   30-Year US             
    Treasury Bond  June 2010  $ 3,706,320  103,680 
  Total                  $ 634,102 
  Credit default swaps on single-name issues — buy protection outstanding as of 
  April 30, 2010 were as follows:           
        Pay          Notional   
        Fixed   Counter-        Amount  Unrealized 
  Issuer      Rate  party  Expiration   (000)  Depreciation 
  Nordstrom, Inc.    5.20%   Deutsche  June         
             Bank AG  2014      $4,000  $ (703,674) 

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 assets
and liabilities
Level 2 — other observable inputs (including, but not limited to: quoted prices for
similar assets or liabilities in markets that are active, quoted prices for identical
or similar assets or liabilities in markets that are not active, inputs other than
quoted prices that are observable for the assets or liabilities (such as interest
rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs)
Level 3 — unobservable inputs based on the best information available in the
circumstances, to the extent observable inputs are not available (including the
Fund’s own assumptions used in determining the fair value of investments)
The inputs or methodologies 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 tables summarize the inputs used as of April 30, 2010 in determining
the fair valuation of the Fund’s investments:

Investments in Securities

Valuation Inputs  Level 1  Level 2  Level 3  Total 
Assets:           
Long-Term           
Investments:           
   Capital           
   Trusts      $257,163,937    $ 257,163,937 
   Common           
   Stocks  $ 8,008,245      8,008,245 
   Corporate           
   Bonds      502,352,496 $  240,550  502,593,046 
   Investment           
   Companies .    775,200      775,200 
   Preferred           
   Stocks    64,340,916  37,560,784    101,901,700 
   Taxable           
   Municipal           
   Bonds      15,213,061    15,213,061 
   Trust           
   Preferreds    18,246,711      18,246,711 
   U.S. Treasury           
   Obligations .      76,183,575    76,183,575 
Short-Term           
Securities    41,474,360      41,474,360 
Total  $132,845,432  $888,473,853 $  240,550  $1,021,559,835 
Other Financial Instruments1

Valuation Inputs  Level 1  Level 2  Level 3  Total 
Assets  $ 634,102      $ 634,102 
Liabilities      $ (703,674)    (703,674) 
Total  $ 634,102  $ (703,674)    $ (69,572) 

1 Other financial instruments are financial futures contracts and swaps, which are
shown at the unrealized appreciation/depreciation on the instrument.

See Notes to Financial Statements.

28 SEMI-ANNUAL REPORT

APRIL 30, 2010


Schedule of Investments (concluded)

BlackRock Credit Allocation Income Trust IV (BTZ)

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

Investments in Securities   
  Corporate 
  Bonds 
Balance, as of October 31, 2009  $ 240,550 
Accrued discounts/premiums   
Net realized gain (loss)   
Net change in unrealized appreciation/depreciation1   
Net purchases (sales)   
Net transfers in/out   
Balance, as of April 30, 2010  $ 240,550 

1 Included in the related net change in unrealized appreciation/depreciation on
the Statements of Operations. The change in unrealized appreciation/deprecia-
tion on securities still held at April 30, 2010 was $0.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

APRIL 30, 2010

29


Schedule of Investments April 30, 2010 (Unaudited)

BlackRock Floating Rate Income Trust (BGT)
(Percentages shown are based on Net Assets)

Common Stocks    Shares           Value 
Chemicals — 0.0%       
British Vita Holding Co. (a)(b)    166  $ 5,526 
Commercial Services & Supplies — 0.0%       
SIRVA (b)    554  5,540 
Construction & Engineering — 0.0%       
USI United Subcontractors Common (b)    7,644  99,379 
Metals & Mining — 0.1%       
Euramax International (b)    1,135  181,632 
Paper & Forest Products — 0.2%       
Ainsworth Lumber Co. Ltd. (a)(b)    62,685  277,695 
Ainsworth Lumber Co. Ltd. (b)    55,855  247,438 
      525,133 
Software — 0.3%       
HMH Holdings/EduMedia  154,601  1,082,207 
Specialty Retail — 0.0%       
Lazydays RV Center, Inc. (b)    2,721  10,610 
Total Common Stocks — 0.6%      1,910,027 
    Par   
Corporate Bonds    (000)   
Auto Components — 1.0%       
Delphi International Holdings Unsecured,       
12.00%, 10/06/14  USD  39  38,768 
Icahn Enterprises LP (a):       
     7.75%, 1/15/16    1,125  1,094,062 
     8.00%, 1/15/18    2,250  2,188,125 
      3,320,955 
Beverages — 0.5%       
Central European Distribution Corp., 2.62%, 5/15/14  EUR  1,500  1,677,629 
Capital Markets — 0.8%       
E*Trade Financial Corp., 3.34%, 8/31/19 (a)(c)(d)  USD  439  717,765 
MU Finance Plc, 8.75%, 2/01/17 (a)  GBP  544  811,626 
Marsico Parent Co., LLC, 10.63%, 1/15/16 (a)  USD  1,346  890,042 
Marsico Parent Holdco, LLC, 3.13%, 7/15/16 (a)(e)    588  159,617 
Marsico Parent Superholdco, LLC,       
3.63%, 1/15/18 (a)(e)    388  83,826 
      2,662,876 
Chemicals — 0.7%       
Ames True Temper, Inc., 4.30%, 1/15/12 (f)    1,100  1,050,500 
LBI Escrow Corp., 8.00%, 11/01/17 (a)    1,300  1,347,125 
      2,397,625 
Commercial Banks — 1.2%       
VTB Capital SA, 6.88%, 5/29/18    3,940  4,151,775 
Containers & Packaging — 0.6%       
Impress Holdings BV, 3.43%, 9/15/13 (a)(f)    150  144,000 
Smurfit Kappa Acquisitions (a):       
     7.25%, 11/15/17  EUR  655  902,624 
     7.75%, 11/15/19    620  858,520 
      1,905,144 
Diversified Financial Services — 0.7%       
FCE Bank Plc, 7.13%, 1/16/12    1,300  1,756,850 
GMAC, Inc., 2.45%, 12/01/14 (f)  USD  550  487,600 
      2,244,450 
Diversified Telecommunication Services — 2.0%       
ITC Deltacom, Inc., 10.50%, 4/01/16 (a)    1,000  995,000 
New Communications Holdings, Inc.,       
7.88%, 4/15/15 (a)    650  671,125 

    Par   
Corporate Bonds    (000)  Value 
Diversified Telecommunication Services (concluded)       
Qwest Corp., 8.38%, 5/01/16  USD  1,840  $ 2,097,600 
Telefonica Emisiones SAU, 5.43%, 2/03/14  EUR  2,000  2,892,525 
      6,656,250 
Energy Equipment & Services — 0.6%       
Compagnie Generale de Geophysique-Veritas:       
     7.50%, 5/15/15  USD  70  70,875 
     7.75%, 5/15/17    50  50,500 
Expro Finance Luxembourg SCA, 8.50%, 12/15/16 (a)    1,750  1,793,750 
      1,915,125 
Food Products — 0.8%       
B&G Foods, Inc., 7.63%, 1/15/18    700  719,250 
Bumble Bee Foods LLC, 7.75%, 12/15/15 (a)    560  572,600 
Smithfield Foods, Inc., 10.00%, 7/15/14 (a)    1,300  1,459,250 
      2,751,100 
Health Care Equipment & Supplies — 0.2%       
DJO Finance LLC, 10.88%, 11/15/14    635  695,325 
Health Care Providers & Services — 0.6%       
American Renal Holdings, 8.38%, 5/15/18 (a)(g)    360  362,700 
HCA, Inc., 7.25%, 9/15/20 (a)    1,550  1,621,688 
Tenet Healthcare Corp. (a):       
     9.00%, 5/01/15    95  103,431 
     10.00%, 5/01/18    35  39,856 
      2,127,675 
Hotels, Restaurants & Leisure — 0.0%       
Greektown Holdings, LLC, 10.75%, 12/01/13 (a)(b)(h)    97  6,426 
Household Durables — 0.5%       
Beazer Homes USA, Inc., 12.00%, 10/15/17    1,500  1,715,625 
Berkline/BenchCraft, LLC, 4.50%, 11/03/12 (b)(h)    400   
      1,715,625 
IT Services — 0.2%       
SunGard Data Systems, Inc., 4.88%, 1/15/14    763  725,804 
Independent Power Producers & Energy Traders — 1.1%     
AES Ironwood LLC, 8.86%, 11/30/25    81  79,377 
Calpine Construction Finance Co. LP,       
8.00%, 6/01/16 (a)    1,000  1,035,000 
Energy Future Holdings Corp., 10.00%, 1/15/20 (a)    1,000  1,050,000 
NRG Energy, Inc., 7.25%, 2/01/14    1,450  1,469,937 
      3,634,314 
Machinery — 0.0%       
Synventive Molding Solutions, Sub-Series A,       
14.00%, 1/14/11 (e)    1,041  52,050 
Media — 2.2%       
Affinion Group, Inc., 10.13%, 10/15/13    50  51,875 
CCH II LLC, 13.50%, 11/30/16    223  270,506 
Charter Communications Operating, LLC,       
10.00%, 4/30/12 (a)    210  222,600 
Clear Channel Worldwide Holdings, Inc. (a):       
     Series A, 9.25%, 12/15/17    501  534,818 
     Series B, 9.25%, 12/15/17    1,704  1,825,410 
DISH DBS Corp., 7.00%, 10/01/13    58  60,030 
Nielsen Finance LLC, 10.00%, 8/01/14    400  420,000 
Seat Pagine Gialle SpA, 10.50%, 1/31/17 (a)  EUR  1,118  1,458,792 
UPC Germany GmbH, 8.13%, 12/01/17 (a)  USD  2,500  2,550,000 
      7,394,031 
Metals & Mining — 0.2%       
Foundation PA Coal Co., 7.25%, 8/01/14    505  516,362 
New World Resources NV, 7.38%, 5/15/15  EUR  285  368,080 
      884,442 

See Notes to Financial Statements.

30 SEMI-ANNUAL REPORT

APRIL 30, 2010


Schedule of Investments (continued)

BlackRock Floating Rate Income Trust (BGT)
(Percentages shown are based on Net Assets)

    Par   
Corporate Bonds    (000)  Value 
Oil, Gas & Consumable Fuels — 3.5%       
Coffeyville Resources LLC, 9.00%, 4/01/15 (a)  USD  380  $ 387,600 
Morgan Stanley Bank AG for OAO Gazprom,       
 9.63%, 3/01/13    5,730  6,503,550 
Petroleos de Venezuela SA, 5.25%, 4/12/17    4,000  2,595,000 
Repsol International Finance B.V., 6.50%, 3/27/14  EUR  1,500  2,230,947 
      11,717,097 
Paper & Forest Products — 1.8%       
Ainsworth Lumber Co. Ltd., 11.00%, 7/29/15 (a)(e)  USD  494  474,195 
NewPage Corp., 11.38%, 12/31/14    4,970  5,106,675 
Verso Paper Holdings LLC, Series B, 4.09%, 8/01/14 (f)    520  473,200 
      6,054,070 
Pharmaceuticals — 0.3%       
Angiotech Pharmaceuticals, Inc., 4.00%, 12/01/13 (f)    900  734,625 
Novasep Holding SAS, 9.63%, 12/15/16 (a)  EUR  159  216,993 
      951,618 
Tobacco — 0.6%       
Imperial Tobacco Finance Plc, 4.38%, 11/22/13    1,500  2,096,155 
Wireless Telecommunication Services — 1.3%       
Cricket Communications, Inc., 7.75%, 5/15/16  USD  1,950  2,023,125 
iPCS, Inc., 2.47%, 5/01/13 (f)    1,155  1,091,475 
Nextel Communications, Inc., Series E,       
 6.88%, 10/31/13    975  957,938 
Sprint Capital Corp., 8.38%, 3/15/12    475  501,125 
      4,573,663 
Total Corporate Bonds — 21.4%      72,311,224 
Floating Rate Loan Interests (f)       
Aerospace & Defense — 1.1%       
Hawker Beechcraft Acquisition Co., LLC:       
     Letter of Credit Facility Deposit, 2.29%, 3/26/14    79  67,284 
     Term Loan, 2.27% – 2.29%, 3/26/14    1,323  1,131,260 
TASC, Inc.:       
     Tranche A Term Loan, 5.50%, 12/18/14    829  828,750 
     Tranche B Term Loan, 5.75%, 12/18/15    1,646  1,650,676 
      3,677,970 
Airlines — 0.8%       
Delta Air Lines, Inc., Revolving Credit, 2.27%, 4/30/12    2,700  2,551,500 
Auto Components — 2.9%       
Affinion Group Holdings, Inc.:       
     Loan, 7.89%, 3/01/12    1,063  1,004,986 
     Term Loan B, 5.00%, 4/08/16    2,000  1,985,000 
Allison Transmission, Inc., Term Loan,       
 3.00% – 3.05%, 8/07/14    4,297  4,102,263 
Cooper-Standard Automotive, Inc.:       
     Revolving Credit, 5.03%, 12/23/10    45  44,812 
     Revolving Credit, 5.03%, 12/23/10    41  41,289 
     Revolving Credit, 5.03%, 12/23/10    83  82,745 
     Term Loan A, 3.03%, 12/23/11    35  35,288 
     Term Loan B, 5.03%, 12/03/11    107  107,599 
     Term Loan C, 5.03%, 12/23/11    268  268,778 
     Term Loan D, 3.03%, 12/23/11    298  298,775 
     Term Loan E, 4.03%, 12/23/11    148  148,277 
Dana Holding Corp., Term Advance,       
 4.50% – 4.58%, 1/30/15    854  845,215 
Dayco Products:       
     Term Loan B, 10.50%, 5/13/14    205  203,569 
     Term Loan C, 12.50%, 11/13/14    30  27,550 
Exide Technologies, Term Loan, 3.69%, 5/15/12  EUR  399  500,006 

    Par   
Floating Rate Loan Interests (f)    (000)  Value 
Auto Components (concluded)       
GPX International Tire Corp., Tranche B       
 Term Loan (b)(h):       
     12.25%, 3/30/12  USD  286  $ — 
     14.00%, 4/11/12    5   
      9,696,152 
Automobiles — 0.6%       
Ford Motor Co., Tranche B-1 Term Loan,       
 3.26% – 3.31%, 12/15/13    2,217  2,137,597 
Beverages — 1.2%       
Culligan International Co., Loan (Second Lien),       
 5.15%, 4/24/13  EUR  1,000  661,288 
Le-Nature’s, Inc., Tranche B Term Loan,       
 9.50%, 3/01/11 (b)(h)  USD  1,000  393,333 
SW Acquisitions Co., Inc., Term Loan, 5.75%, 6/01/16    2,993  3,007,463 
      4,062,084 
Building Products — 1.2%       
Building Materials Corp. of America, Term Loan       
 Advance, 3.06%, 2/22/14    517  508,220 
Goodman Global, Inc., Term Loan, 6.25%, 2/13/14    2,840  2,845,851 
Momentive Performance Materials (Blitz 06-103       
 GmbH), Tranche B-1 Term Loan, 2.56%, 12/04/13    590  557,815 
United Subcontractors, First Lien Term Loan,       
 1.79%, 6/30/15    179  152,293 
      4,064,179 
Capital Markets — 0.4%       
Marsico Parent Co., LLC, Term Loan, 5.31%, 12/15/14    380  274,586 
Nuveen Investments, Inc., Term Loan,       
 3.32% – 3.33%, 11/13/14    999  910,951 
      1,185,537 
Chemicals — 8.5%       
Brenntag Holding Gmbh & Co. KG:       
     Acquisition Facility 1, 4.07% – 4.14%, 1/20/14    232  231,120 
     Facility 3B (Second Lien), 6.47%, 7/17/15    1,000  995,500 
     Facility B2, 4.01% – 4.07%, 1/20/14    1,332  1,328,223 
     Facility B6A and B6B, 4.70%, 11/24/37  EUR  414  547,763 
     Second Lien Term Loan, 4.73%, 1/20/14    267  348,707 
CF Industries Holdings, Inc., Bridge Loan,       
 5.25%, 3/17/15  USD  5,120  5,146,675 
Chemtura Corp., Debtor in Possession Return of       
 Capital Term Loan, 6.00%, 1/26/11    2,000  2,010,000 
Cognis GmbH, Facility B (French):       
     2.65%, 11/16/13  EUR  197  255,777 
     2.65%, 11/17/13    803  1,043,383 
ElectricInvest Holding Co. Ltd. (Viridian Group PLC),       
 Junior Term Facility, 5.05%, 12/21/12  GBP  1,800  2,285,907 
Huish Detergents, Inc., Loan (Second Lien),       
 4.51%, 10/26/14  USD  750  728,437 
Ineos US Finance LLC, Term A4 Facility,       
 7.00%, 12/14/12    1,087  1,090,300 
Lyondell Chemical Co.:       
     Debtor in Possession Term Loan,       
     13.00%, 6/03/10    1,165  1,199,950 
     Exit Term Loan, 5.50%, 3/24/16    1,200  1,203,205 
Matrix Acquisition Corp. (MacDermid, Inc.),       
 Tranche C Term Loan, 2.62%, 12/15/13  EUR  1,547  1,874,136 
Nalco Co., Term Loan, 6.50%, 5/13/16  USD  1,886  1,899,501 
PQ Corp., Term Loan (First Lien),       
 3.53% – 3.59%, 7/30/14    2,702  2,487,654 
Rockwood Specialties Group, Inc., Term Loan H,       
 6.00%, 5/15/14    1,223  1,229,697 
Solutia, Inc., Term Loan, 4.75%, 3/01/17    2,775  2,791,187 
      28,697,122 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

APRIL 30, 2010

31


Schedule of Investments (continued)

BlackRock Floating Rate Income Trust (BGT)
(Percentages shown are based on Net Assets)

    Par   
Floating Rate Loan Interests (f)    (000)  Value 
Commercial Services & Supplies — 3.6%       
ARAMARK Corp.:       
     Facility Letter of Credit, 2.16%, 1/26/14  USD  38  $ 36,932 
     Line of Credit, 3.53%, 7/26/16    68  67,299 
     Term Loan B, 3.54%, 7/26/16    1,031  1,023,318 
     US Term Loan, 2.17%, 1/26/14    572  561,574 
Advanced Disposal Services, Inc., Term B Loan,       
 6.00%, 1/14/15    1,247  1,254,668 
Casella Waste Systems, Inc., Term B Loan,       
 7.00%, 4/09/14    1,092  1,098,573 
International Lease Finance Corp.:       
     Term Loan 1, 6.75%, 2/23/15    1,625  1,653,437 
     Term Loan 2, 7.00%, 3/05/16    1,200  1,212,900 
John Maneely Co., Term Loan, 3.55%, 12/09/13    1,125  1,079,439 
Johnson Diversey, Inc., Tranche B Dollar,       
 5.50%, 11/24/15    1,097  1,104,108 
Quad Graphics, Term Loan B, 4.00%, 4/20/16    725  721,828 
SIRVA Worldwide, Inc., Loan (Second Lien),       
 12.00%, 5/12/15    142  35,390 
Synagro Technologies, Inc., Term Loan (First Lien),       
 2.26%-2.28%, 4/02/14    1,961  1,772,195 
West Corp., Incremental Term B-3 Loan,       
 7.25%, 10/24/13    632  636,408 
      12,258,069 
Communications Equipment — 0.1%       
Safenet, Inc., Loan (Second Lien), 6.26%, 4/12/15    500  475,000 
Construction & Engineering — 1.2%       
Brand Energy & Infrastructure Services, Inc.       
 (FR Brand Acquisition Corp.), Synthetic Letter of       
 Credit, Term Loan (First Lien), 2.69%, 2/07/14    500  460,000 
Safway Services, LLC, First Out Term Loan,       
 9.00%, 12/14/17    2,100  2,100,000 
Welding Services, Term Loan B, 5.50%, 3/23/16    1,450  1,457,250 
      4,017,250 
Consumer Finance — 2.5%       
American General Finance Corp., Term Loan,       
 7.25%, 4/16/16    3,500  3,506,125 
Chrysler Financial Corp., Second Lien Term Loan,       
 6.76%, 8/02/13    2,450  2,429,584 
Chrysler Financial Services Americas LLC,       
 Term Loan (First Lien), 4.26%, 8/03/12    2,581  2,578,298 
      8,514,007 
Containers & Packaging — 1.8%       
Anchor Glass Container Corp., Term Loan B,       
 6.00%, 2/18/16    1,700  1,692,562 
Graham Packaging Co., LP, C Term Loan,       
 6.75%, 4/05/14    722  726,422 
OI European Group BV, Tranche D Term Loan,       
 1.90%, 6/14/13  EUR  1,895  2,434,792 
Smurfit Kappa Acquisitions (JSG):       
     C1 Term Loan Facility, 4.02% – 4.27%, 7/16/15    453  598,808 
     Term B1, 3.78% – 4.37%, 7/16/14    458  605,748 
Smurfit-Stone Container:       
     Revolving Credit, 0.02% – 5.00%, 11/12/09  USD  20  20,041 
     Revolving Credit US, 0.01% – 4.50%, 11/01/09    60  60,279 
Smurfit-Stone Container Canada, Inc.:       
     Tranche C, 2.50%, 11/01/11    26  25,836 
     Tranche C-1 Term Loan, 2.50%, 11/01/11    8  7,811 
Smurfit-Stone Container Enterprises, Inc.:       
     Deposit Funded Facility, 4.50%, 11/01/10    12  12,007 
     Tranche B, 2.50%, 11/01/11    14  13,664 
      6,197,970 

    Par   
Floating Rate Loan Interests (f)    (000)  Value 
Diversified Consumer Services — 2.1%       
Coinmach Laundry Corp., Delayed Draw Term Loan,       
 3.25% – 3.26%, 11/14/14  USD  495  $ 444,251 
Coinmach Service Corp., Term Loan, 3.26%, 11/14/14    2,526  2,265,274 
Laureate Education, Series A New Term Loan,       
 7.00%, 8/15/14    4,229  4,215,535 
      6,925,060 
Diversified Financial Services — 3.0%       
CIT Group, Inc., Tranche 2A Term Loan, 9.50%, 1/20/12    1,806  1,846,129 
MSCI, Inc., Term Loan B, 4.75%, 6/30/16    4,500  4,483,125 
Professional Service Industries, Inc., Term Loan       
 (First Lien), 3.02%, 10/31/12    526  421,151 
Reynolds Group Holdings, Inc., Return of       
 Capital Euro, 6.25%, 10/28/15  EUR  2,484  3,316,095 
      10,066,500 
Diversified Telecommunication Services — 3.4%       
Hawaiian Telcom Communications, Inc., Tranche C       
 Term Loan, 4.75%, 5/30/14  USD  1,235  926,102 
Integra Telecom Holdings, Inc., Term Loan,       
 9.25%, 4/12/15    2,025  2,033,100 
Level 3 Communications, Incremental Term Loan,       
 2.55%, 3/13/14    1,975  1,847,859 
Nordic Telephone Co. Holdings APS:       
     Facility B2 Swiss, 1.89%, 4/06/14  EUR  885  1,138,783 
     Facility C2 Swiss, 2.52%, 4/06/15    1,058  1,360,623 
US Telepacific Corp., Term Loan (Second Lien),       
 9.25%, 7/25/15  USD  625  630,469 
Wind Telecomunicazioni SpA:       
     A1 Term Loan Facility, 2.86% – 2.90%, 9/22/12  EUR  604  789,891 
     B1 Term Loan Facility, 3.65%, 9/22/13    1,000  1,313,912 
     C1 Term Loan Facility, 4.65%, 9/22/14    1,000  1,313,912 
      11,354,651 
Electric Utilities — 0.3%       
Astoria Generating Co. Acquisitions, LLC, Term B       
 Facility, 2.01% – 2.03%, 2/23/13  USD  351  344,631 
TPF Generation Holdings, LLC:       
     Synthetic Letter of Credit Deposit (First Lien),       
     2.29%, 12/15/13    151  145,623 
     Synthetic Revolving Deposit, 2.29%, 12/15/11    47  45,650 
     Term Loan (First Lien), 2.29%, 12/15/13    380  367,773 
      903,677 
Electrical Equipment — 0.0%       
Electrical Components International Holdings Co. (ECI),       
 Term Loan (Second Lien), 11.50%, 5/01/14 (b)(h)    500  60,000 
Electronic Equipment, Instruments & Components — 1.2%     
CDW Computer Centers, Inc., Term Loan B,       
 3.30%, 10/10/14    550  512,875 
Flextronics International Ltd.:       
     A Closing Date Loan, 2.54% – 2.55%, 10/01/14    1,156  1,113,435 
     Term Loan B, 2.54%, 10/01/12    2,244  2,194,686 
Matinvest 2 SAS/Butterfly Wendel US, Inc. (Deutsche       
 Connector), Second Lien, 5.09%, 12/22/15    500  330,000 
      4,150,996 
Energy Equipment & Services — 0.8%       
Dresser, Inc., Term Loan (Second Lien), 6.00%, 5/04/15  825  798,188 
MEG Energy Corp., Term Loan D, 6.00%, 4/03/16    1,973  1,949,780 
      2,747,968 
Food & Staples Retailing — 3.5%       
AB Acquisitions UK Topco 2 Ltd. (FKA Alliance Boots),       
   Facility B1, 3.55%, 7/09/15  GBP  3,000  4,286,897 
DSW Holdings, Inc., Term Loan, 4.26%, 3/02/12  USD  775  759,016 
Pierre Foods, Term Loan B, 7.00%, 2/17/16    1,350  1,359,000 
Pilot Travel Centers, Term Loan B, 5.25%, 11/18/15    3,500  3,521,248 

See Notes to Financial Statements.

32 SEMI-ANNUAL REPORT

APRIL 30, 2010


Schedule of Investments (continued)

BlackRock Floating Rate Income Trust (BGT)
(Percentages shown are based on Net Assets)

    Par   
Floating Rate Loan Interests (f)    (000)  Value 
Food & Staples Retailing (concluded)       
Rite Aid Corp., Tranche 4 Term Loan, 9.50%, 6/10/15  USD  1,400  $ 1,456,291 
Roundy’s, Inc., Term Loan B, 3.75% – 3.78%, 11/03/13    499  501,487 
      11,883,939 
Food Products — 2.8%       
Birds Eye Iglo Group Ltd. (Liberator Midco Ltd.), Sterling       
 Tranche Loan (Mezzanine), 8.55%, 11/02/15  GBP  419  624,927 
CII Investment, LLC (FKA Cloverhill), Term Loan B:       
     8.50%, 10/14/14  USD  1,307  1,307,279 
     8.50%, 10/14/14    1,075  1,074,864 
Dole Food Co., Inc.:       
     Credit-Linked Deposit, 7.99%, 4/12/13    192  193,784 
     Term Loan B, 5.00% – 5.50%, 2/10/17    343  345,771 
     Term Loan C, 5.00%, 2/10/17    851  858,809 
FSB Holdings, Inc. (Fresh Start Bakeries), Term Loan       
 (Second Lien), 6.06%, 3/29/14    500  465,000 
Pilgrim’s Pride Corp., Term Loan A, 5.29%, 12/01/12    1,535  1,517,731 
Pinnacle Foods Finance LLC, Tranche C Term Loan,       
 7.50%, 4/02/14    3,100  3,116,470 
      9,504,635 
Health Care Equipment & Supplies — 1.9%       
Biomet, Inc., Euro Term Loan,       
 3.37% – 3.58%, 3/25/15  EUR  2,508  3,251,730 
DJO Finance LLC (ReAble Therapeutics Finance LLC),       
 Term Loan, 3.27%, 5/20/14  USD  1,331  1,292,012 
Fresenius AG:       
     Term Loan C1, 4.50%, 9/01/14    1,082  1,090,749 
     Term Loan C2, 4.50%, 9/01/14    618  623,064 
      6,257,555 
Health Care Providers & Services — 3.5%       
Ardent Health Services, Inc., Term Loan,       
 6.50%, 8/10/15    1,500  1,480,125 
CHS/Community Health Systems, Inc.:       
     Delayed Draw Term Loan, 2.50%, 7/25/14    170  165,131 
     Funded Term Loan, 2.50%, 7/25/14    3,319  3,224,677 
HCA, Inc., Tranche A-1 Term Loan, 1.79%, 11/16/12    2,615  2,535,268 
Harden Healthcare, Term Loan A, 8.50%, 2/22/15    1,000  980,000 
HealthSouth Corp., Term Loan,       
 2.51% – 2.55%, 3/10/13    794  778,778 
Vanguard Health Holding Co. II, LLC (Vanguard Health       
 Systems, Inc.), Initial Term Loan, 5.00%, 1/29/16    2,600  2,604,875 
      11,768,854 
Health Care Technology — 0.9%       
IMS Healthcare, Term Loan B, 5.25%, 2/16/16    3,070  3,085,860 
Hotels, Restaurants & Leisure — 3.4%       
BLB Worldwide Holdings, Inc. (Wembley, Inc.):       
     First Priority Term Loan, 4.75%, 7/18/11    2,418  1,704,838 
     Second Priority Term Loan, 7.06%, 7/18/12 (b)(h)    1,500  75,000 
Golden Nugget, Inc. (First Lien):       
     Additional Term Advance, 3.26% – 3.28%, 6/30/14    270  208,820 
     Term Advance, 3.28%, 6/30/14    474  366,751 
Green Valley Ranch Gaming, LLC, Loan (Second Lien),       
 8.00%, 8/16/14 (b)(h)    1,500  92,500 
Harrah’s Operating Co., Inc.:       
     Term B-3 Loan, 3.29% – 3.32%, 1/28/15    2,047  1,792,214 
     Term B-4 Loan, 9.50%, 10/31/16    1,496  1,551,527 
OSI Restaurant Partners, LLC, Pre-Funded RC Loan,       
 2.63%, – 4.58% 6/14/13    32  29,090 
Penn National Gaming, Inc., Term Loan B,       
 2.00% – 2.07%, 10/03/12    997  985,182 
Six Flags Theme Parks, Inc., Exit Term Loan,       
 6.00%, 4/19/16    2,750  2,749,142 

    Par   
Floating Rate Loan Interests (f)    (000)  Value 
Hotels, Restaurants & Leisure (concluded)       
VML US Finance LLC (aka Venetian Macau):       
     New Project Term Loan, 4.80%, 5/27/13  USD  158  $ 155,768 
     Term B Delayed Draw Project Loan, 4.80%, 5/25/12    721  710,169 
     Term B Funded Project Loan, 4.80%, 5/27/13    1,090  1,073,447 
      11,494,448 
Household Durables — 0.0%       
Berkline/Benchcraft, LLC, Term Loan,       
 14.00%, 11/03/11 (b)(h)    120  5,982 
Household Products — 0.2%       
VI-JON, Inc. (VJCS Acquisition, Inc.), Tranche B       
 Term Loan, 2.27%, 4/24/14    634  608,936 
IT Services — 4.3%       
Amadeus IT Group SA/Amadeus Verwaltungs GmbH:       
     Term B3 Facility, 2.40%, 6/30/13  EUR  615  801,345 
     Term B4 Facility, 2.40%, 6/30/13    489  637,920 
     Term C3 Facility, 2.90%, 6/30/14    615  801,607 
     Term C3 Facility, 2.90%, 6/30/14    489  638,129 
Audio Visual Services Group, Inc., Loan (Second Lien),       
 5.80%, 8/28/14  USD  1,077  344,653 
Ceridian Corp., US Term Loan, 3.26%, 11/09/14    1,737  1,635,640 
First Data Corp.:       
     Initial Tranche B-1 Term Loan,       
     3.01% – 3.04%, 9/24/14    2,441  2,195,014 
     Initial Tranche B-2 Term Loan,       
     3.03% – 3.04%, 9/24/14    1,582  1,419,796 
     Initial Tranche B-3 Term Loan,       
     3.03% – 3.04%, 9/24/14    2,355  2,115,425 
SunGard Data Systems, Inc. (Solar Capital Corp.),       
 Incremental Term Loan, 6.75%, 2/28/14    1,686  1,686,711 
Travelex Plc:       
     Term Loan B, 2.79%, 10/31/13    1,250  1,176,389 
     Term Loan C, 3.29%, 10/31/14    1,250  1,176,389 
      14,629,018 
Independent Power Producers & Energy Traders — 1.3%     
Dynegy Holdings, Inc.:       
     Term Letter of Credit Facility, 4.03%, 4/02/13    1,110  1,088,698 
     Tranche B Term Loan, 4.03%, 4/02/13    89  87,416 
Texas Competitive Electric Holdings Co., LLC (TXU):       
     Initial Tranche B-1 Term Loan,       
     3.75% – 3.79%, 10/10/14    2,465  2,019,151 
     Initial Tranche B-2 Term Loan,       
     3.75% – 3.79%, 10/10/14    1,080  884,694 
     Initial Tranche B-3 Term Loan,       
     3.75% – 3.79%, 10/10/14    379  308,491 
      4,388,450 
Industrial Conglomerates — 1.4%       
Sequa Corp., Term Loan, 3.48% – 3.55%, 12/03/14    5,124  4,755,931 
Insurance — 0.3%       
Alliant Holdings I, Inc., Term Loan, 3.29%, 8/21/14    975  927,469 
Internet & Catalog Retail — 0.2%       
FTD Group, Inc., Tranche B Term Loan, 6.75%, 8/26/14    573  573,173 
Machinery — 2.3%       
Accuride Corp., Term Loan, 9.75%, 1/31/12  GBP  1,150  1,148,850 
Blount International, Term Loan,       
 5.50% – 5.75%, 2/09/12  USD  532  530,547 
Bucyrus International, Term Loan C, 4.50%, 1/26/16    2,750  2,763,239 
Generac Acquisition Corp., Term Loan (First Lien),       
 2.79%, 11/10/13    1,176  1,103,738 
LN Acquisition Corp. (Lincoln Industrial)(First Lien):       
     Delayed Draw Term Loan, 3.51%, 7/11/14    245  230,021 
     Initial US Term Loan, 3.50% – 3.51%, 7/11/14    637  596,912 
Oshkosh Truck Corp., Term B Loan,       
 6.25% – 6.26%, 12/06/13    1,238  1,241,452 
      7,614,759 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

APRIL 30, 2010

33


Schedule of Investments (continued)

BlackRock Floating Rate Income Trust (BGT)
(Percentages shown are based on Net Assets)

    Par   
Floating Rate Loan Interests (f)    (000)  Value 
Marine — 0.3%       
Horizon Lines, Inc.:       
     Return of Capital, 3.51% — 5.50%, 8/08/12  USD  845  $ 722,535 
     Term Loan A, 3.55%, 8/08/12    405  365,955 
      1,088,490 
Media — 19.1%       
Amsterdamse Beheer — En Consultingmaatschappij BV       
 (Casema):       
     B1 Term Loan Facility, 2.91%, 11/02/14  EUR  625  812,542 
     C Term Loan Facility, 3.41%, 11/02/15    625  812,542 
Atlantic Broadband Finance, LLC:       
     Term Loan B, 6.75%, 6/01/13  USD  1,854  1,850,916 
     Tranche B-2 Term Loan, 2.55%, 9/01/11    69  67,926 
Catalina Marketing Corp., Initial Term Loan,       
 3.01%, 10/01/14    389  380,687 
Cengage Learning Acquisitions, Inc. (Thomson Learning),       
 Tranche 1 Incremental Term Loan, 7.50%, 7/03/14    5,384  5,410,821 
Cequel Communications, LLC (Second Lien):       
     Tranche A Term Loan, 4.75% – 4.79%, 5/05/14    500  500,000 
     Tranche B Facility, 6.29%, 5/05/14(e)    2,975  2,997,313 
Charter Communications Operating, LLC:       
     New Term Loan, 2.30%, 3/06/14    548  519,212 
     Term Loan C, 3.55%, 9/06/16    4,440  4,243,261 
FoxCo Acquisition Sub, LLC, Term Loan, 7.50%, 7/14/15  1,019  1,009,415 
HIT Entertainment, Inc., Term Loan (Second Lien),       
 5.75%, 2/26/13    300  188,000 
HMH Publishing Co., Ltd., Tranche A Term Loan,       
 5.50%, 6/12/14    2,426  2,307,398 
Hanley-Wood, LLC (FSC Acquisition), Term Loan,       
 2.50% – 2.56%, 3/10/14    2,201  1,127,809 
Hargray Acquisition Co./DPC Acquisition LLC/       
 HCP Acquisition LLC, Loan (Second Lien),       
 5.75%, 1/29/15    500  457,500 
Harland Clarke Holdings Corp. (FKA Clarke American       
 Corp.), Tranche B Term Loan, 2.79%, 6/30/14    1,451  1,336,982 
Kabel Deutschland Holding GMBH, A Facility,       
 2.66%, 6/01/12  EUR  4,000  5,203,755 
Lamar Media Corp., Term Loan B, 4.25%, 12/30/16  USD  3,500  3,505,835 
Lavena Holding 3 GmbH (Prosiebensat.1 Media AG):       
     Facility B1, 3.34%, 6/28/15  EUR  337  357,142 
     Facility C1, 3.59%, 6/30/16    674  714,285 
Liberty Cablevision of Puerto Rico, Ltd., Initial Term       
 Facility, 2.26%, 6/17/14  USD  1,459  1,352,991 
Local TV Finance, LLC, Term Loan, 2.30%, 5/07/13    474  433,116 
MCNA Cable Holdings LLC (OneLink Communications),       
 Loan, 6.89%, 3/01/13(e)    1,004  828,039 
Mediacom Illinois, LLC (FKA Mediacom       
 Communications, LLC), Tranche D Term Loan,       
 5.50%, 3/31/17    1,244  1,247,170 
Mediannuaire Holding (Pages Jaunes), Term Loan D,       
 4.90%, 1/11/17  EUR  500  473,775 
Newsday, LLC:       
     Fixed Rate Term Loan, 10.50%, 8/01/13  USD  1,500  1,631,250 
     Floating Rate Term Loan, 6.55%, 8/01/13    1,250  1,270,834 
Nielsen Finance LLC, Class B, Dollar Term Loan,       
 4.00%, 5/01/16    2,281  2,252,046 
Nielsen Finance LLC, Dollar Term Loan, 2.25%, 8/09/13    1,145  1,114,559 
Penton Media, Inc., Term Loan (First Lien),       
 5.00%, 8/01/14    1,092  816,561 
Springer Science and Business Media SA, Facility A1,       
 6.75%, 7/01/16  EUR  3,200  4,246,444 
Sunshine Acquisition Ltd. (aka HIT Entertainment),       
 Term Facility, 5.50%, 3/20/12  USD  1,473  1,400,319 
UPC Financing Partnership, Facility U,       
 4.99%, 12/31/17  EUR  3,017  3,855,884 
Virgin NTL Cable Plc, Term Loan B, 4.40%, 12/31/15  GBP  2,000  3,022,415 

    Par   
Floating Rate Loan Interests (f)    (000)           Value 
Media (concluded)       
Weather Channel, Term Loan B, 5.00%, 9/14/15  USD  2,830  $ 2,852,492 
Worldcolor Press Inc. and Worldcolor (USA)       
 Corp. (FKA Quebecor World, Inc.), Advance,       
 9.00%, 7/23/12    2,015  2,032,268 
Yell Group Plc, Term Loan B, 4.02%, 7/31/14    2,113  1,721,987 
      64,355,491 
Metals & Mining — 0.2%       
Drummond Co., Inc., Term Advance, 1.51%, 2/14/11    700  679,000 
Multi-Utilities — 0.2%       
FirstLight Power Resources, Inc. (FKA NE Energy, Inc.):       
     Synthetic Letter of Credit, 2.81%, 11/01/13    65  62,288 
     Term B Advance (First Lien), 2.81%, 11/01/13    624  602,107 
Mach Gen, LLC, Synthetic Letter of Credit Loan       
 (First Lien), 2.29%, 2/22/13    69  63,811 
      728,206 
Multiline Retail — 1.9%       
Dollar General Corp.:       
     Tranche B-1 Term Loan, 3.01% – 3.09%, 7/07/14    377  370,991 
     Tranche B-2 Term Loan, 3.01% – 3.02%, 7/07/14    427  417,923 
Hema Holding BV:       
     Facility D, 5.40%, 1/01/17  EUR  3,800  4,477,672 
     (Term Loan B) Euro, 2.42%, 7/06/15    175  223,975 
     (Term Loan C) Euro, 3.17%, 7/05/16    175  223,975 
The Neiman Marcus Group, Inc., Term Loan,       
     2.25%, 4/06/13  USD  845  808,031 
      6,522,567 
Oil, Gas & Consumable Fuels — 1.3%       
Big West Oil, LLC:       
     Delayed Draw Loan, 4.50%, 5/15/14    920  909,406 
     Initial Advance Loan, 4.50%, 5/15/14    731  723,291 
     Initial Advance Loan, 12.00%, 1/26/15    775  781,458 
Tronox Worldwide LLC, Tranche B-1 Term Loan:       
     9.00%, 6/24/10    1,576  1,600,118 
     9.00%, 6/24/10    424  429,882 
      4,444,155 
Paper & Forest Products — 0.3%       
Georgia-Pacific LLC, Term Loan B,       
 2.25% – 2.34%, 12/23/12    853  846,789 
Verso Paper Finance Holdings LLC,       
 6.50% – 7.25%, 2/01/13(e)    372  204,802 
      1,051,591 
Personal Products — 0.3%       
American Safety Razor Co., LLC:       
     Loan (Second Lien), 10.50%, 1/30/14    1,150  667,000 
     Term Loan (First Lien), 6.75%, 7/31/13    530  488,458 
      1,155,458 
Pharmaceuticals — 1.1%       
Warner Chilcott Co., LLC, Term A Loan,       
 5.50%, 10/30/14    1,355  1,355,644 
Warner Chilcott Corp.:       
     Additional Term Loan, 5.75%, 4/30/15    624  624,203 
     Term B-1 Loan, 5.75%, 4/30/15    1,038  1,039,412 
     Term B-2 Loan, 5.75%, 4/30/15    723  723,637 
      3,742,896 
Professional Services — 0.7%       
Booz Allen Hamilton, Inc.:       
     Term Loan C, 6.00%, 7/31/15    1,247  1,247,810 
     Tranche B Term Loan, 7.50%, 7/31/15    987  991,172 
      2,238,982 

See Notes to Financial Statements.

34 SEMI-ANNUAL REPORT

APRIL 30, 2010


Schedule of Investments (continued)

BlackRock Floating Rate Income Trust (BGT)
(Percentages shown are based on Net Assets)

    Par   
Floating Rate Loan Interests (f)    (000)  Value 
Real Estate Management & Development — 1.5%       
Enclave, First Lien Term Loan, 6.14%, 3/01/12 (b)(h)  USD  2,000  $ 1 
Georgian Towers, Term Loan, 6.14%, 3/01/12    2,000   
Pivotal Promontory, LLC, Second Lien Term Loan,       
 12.00%, 8/31/11 (b)(h)    750  37,500 
Realogy Corp.:       
     Delayed Draw Term B Loan, 3.29%, 10/10/13    1,072  968,731 
     Initial Term B Loan, 3.29%, 10/10/13    2,261  2,043,400 
     Synthetic Letter of Credit, 3.28%, 10/10/13    609  550,146 
     Term Loan (Second Lien), 13.50%, 10/15/17    1,250  1,403,125 
      5,002,903 
Software — 0.9%       
Bankruptcy Management Solutions, Inc.:       
     Term Loan (First Lien), 4.28%, 7/31/12    935  635,969 
     Term Loan (Second Lien), 6.52%, 7/31/13    482  96,500 
Reynolds & Reynolds, Term Loan, 5.25%, 4/16/17    1,340  1,337,907 
Telecommunications Management, LLC:       
     Multi-Draw Term Loan, 3.52%, 6/30/13    231  195,979 
     Term Loan, 3.52%, 6/30/13    914  777,218 
      3,043,573 
Specialty Retail — 2.1%       
Bass Pro Group LLC Term Loan B, Term Loan B,       
 5.75%, 4/06/15    1,400  1,401,166 
Burlington Coat Factory Warehouse Corp.,       
 Term Loan, 2.51% – 4.50%, 5/28/13    740  706,873 
Matalan, Term Loan, 5.56%, 3/24/16  GBP  1,300  1,984,103 
Michaels Stores, Inc., B-1 Term Loan:       
     2.50% – 2.63%, 10/31/13  USD  1,585  1,518,317 
     4.75% – 4.88%, 7/31/16    65  64,098 
Orchard Supply Hardware, Term Loan B,       
 2.71%, 12/21/13    1,500  1,357,050 
      7,031,607 
Trading Companies & Distributors — 0.1%       
Beacon Sales Acquisition, Inc., Term B Loan,       
 2.25% – 2.29%, 9/30/13    469  459,942 
Transportation Infrastructure — 0.3%       
Airport Development and Investment Ltd. (BAA),       
 Facility (Second Lien), 4.85%, 4/07/11  GBP  566  836,219 
Wireless Telecommunication Services — 2.4%       
BCM Ireland Holdings Ltd. (Eircom):       
     Facility B, 2.28%, 8/14/14  EUR  499  588,547 
     Facility C, 2.53%, 8/14/13    499  588,565 
Cavtel Holdings, LLC, Term Loan,       
 10.50%, 12/31/12  USD  1,158  1,095,905 
Digicel International Finance Ltd., Tranche A,       
 2.81%, 3/30/12    4,070  3,983,662 
MetroPCS Wireless, Inc., Tranche B Term Loan,       
 2.50% – 2.56%, 11/03/13    1,846  1,801,517 
      8,058,196 
Total Floating Rate Loan Interests — 95.4%      321,681,574 
Foreign Government Obligations       
Argentina Bonos:       
 0.39%, 8/03/12 (f)    3,750  3,371,395 
 7.00%, 10/03/15    2,000  1,610,555 
Brazilian Government International Bond,       
 8.00%, 1/15/18    7,111  8,248,889 
Colombia Government International Bond,       
 3.81%, 3/17/13 (f)    1,200  1,203,000 
Republic of Venezuela, 1.31%, 4/20/11 (f)    4,000  3,660,000 

    Par   
Foreign Government Obligations    (000)  Value 
South Africa Government International Bond,       
 7.38%, 4/25/12  USD  2,400  $ 2,616,000 
Turkey Government International Bond,       
 7.00%, 9/26/16    2,735  3,039,269 
Uruguay Government International Bond,       
 6.88%, 1/19/16  EUR  950  1,343,934 
Total Foreign Government Obligations — 7.4%      25,093,042 
  Beneficial   
    Interest   
Other Interests (i)    (000)   
Auto Components — 1.2%       
Dayco Products LLC Mark IV Industrials, Inc.  USD  9  387,912 
Delphi Debtor-in-Possession Hold Co. LLP,       
 Class B Membership Interests    —(j)  3,672,230 
Lear Corp. Escrow    500  11,500 
      4,071,642 
Diversified Financial Services — 0.3%       
J.G. Wentworth LLC Preferred Equity Interests (k)    1  1,130,844 
Health Care Providers & Services — 0.0%       
Critical Care Systems International, Inc.    1  191 
Household Durables — 0.0%       
Berkline Benchcraft Equity LLC    6   
Total Other Interests — 1.5%      5,202,677 
Preferred Securities       
Preferred Stocks    Shares   
Specialty Retail — 0.0%       
Lazydays RV Center, Inc. (b)    58  57,680 
Total Preferred Securities — 0.0%      57,680 
Warrants (l)       
Chemicals — 0.0%       
British Vita Holding Co. (Non-Expiring) (a)    166   
Machinery — 0.0%       
Synventive Molding Solutions (Expires 1/15/13)    2   
Media — 0.0%       
Cumulus Media (Expires 12/31/19)    2,315  8,589 
New Vision Holdings LLC:       
(Expires 9/30/14)    3,424  34 
(Expires 9/30/14)    19,023  190 
      8,813 
Software — 0.0%       
HMH Holdings/EduMedia (Expires 3/09/17)    21,894   
Total Warrants — 0.0%      8,813 
Total Long-Term Investments       
(Cost — $442,415,652) — 126.3%      426,265,037 
Short-Term Securities       
BlackRock Liquidity Funds, TempFund,       
 Institutional Class, 0.13% (m)(n)  8,662,749  8,662,749 
Total Short-Term Securities       
(Cost — $8,662,749) — 2.6%      8,662,749 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

APRIL 30, 2010

35


Schedule of Investments (continued)

BlackRock Floating Rate Income Trust (BGT)
(Percentages shown are based on Net Assets)

Options Purchased  Contracts  Value 
Over-the-Counter Call Options — 0.0%     
Marsico Parent Superholdco LLC, expires 12/21/19     
at USD 942.86, Broker Goldman Sachs Group, Inc.  26  $ 5,460 
Total Options Purchased (Cost — $25,422) — 0.0%    5,460 
Total Investments (Cost — $451,103,823*) — 128.9%    434,933,246 
Liabilities in Excess of Other Assets — (11.5)%    (38,783,153) 
Preferred Shares, at Redemption Value — (17.4)%    (58,812,346) 
Net Assets Applicable to Common Shares — 100.0%    $ 337,337,747 

* The cost and unrealized appreciation (depreciation) of investments as of April 30,
2010, as computed for federal income tax purposes, were as follows:

Aggregate cost  $ 451,145,378 
Gross unrealized appreciation  $ 14,229,926 
Gross unrealized depreciation  (30,442,058) 
Net unrealized depreciation  $ (16,212,132) 

(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) Non-income producing security.
(c) Convertible security.
(d) Represents a zero-coupon bond. Rate shown reflects the current yield as of
report date.
(e) Represents a payment-in-kind security which may pay interest/dividends in
additional face/shares.
(f) Variable rate security. Rate shown is as of report date.
(g) When-issued security. Unsettled when-issued transactions were as follows:

    Unrealized 
Counterparty  Value  Appreciation 
Bank of America, NA  $ 362,700  $ 5,292 

(h) Issuer filed for bankruptcy and/or is in default of interest payments.
(i) Other interests represent beneficial interest in liquidation trusts and other reorgani-
zation entities and are non-income producing.
(j) Amount is less than $1,000.
(k) The investment is held by a wholly owned taxable subsidiary of the Fund.
(l) 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.
(m) 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:

  Shares Held at    Shares Held at   
  October 31,  Net  April 30,   
Affiliate  2009  Activity  2010  Income 
BlackRock Liquidity         
   Funds, TempFund,         
   Institutional Class  9,320,934  (658,185)   8,662,749 $       2,288 

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

Foreign currency exchange contracts as of April 30, 2010 were as follows:

  Currency    Currency      Settlement  Unrealized 
  Purchased         Sold  Counterparty  Date  Appreciation 
  USD66,548,101  EUR         49,177,000  Citibank NA  5/26/10  $ 1,065,395 
  USD 3,066,901  GBP   1,980,000  Citibank NA  7/28/10  38,532 
  USD18,787,022  GBP        12,142,500      RBS     
          Securities Inc.  7/28/10  215,321 
  Total              $ 1,319,248 
  Credit default swaps on single-name issues — sold protection outstanding as of 
  April 30, 2010 were as follows:         
    Receive        Notional   
    Fixed  Counter-    Credit       Amount  Unrealized 
  Issuer  Rate         party                  Expiration              Rating1  (000)2  Depreciation 
  BAA Ferrovial               
  Junior Term  2.00%  Deutsche  March       
  Loan      Bank AG  2012  NR         GBP 1,800                     $ (173,967)             

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.

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 assets
and liabilities
Level 2 — other observable inputs (including, but not limited to: quoted prices for
similar assets or liabilities in markets that are active, quoted prices for identical
or similar assets or liabilities in markets that are not active, inputs other than
quoted prices that are observable for the assets or liabilities (such as interest
rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs)
Level 3 — unobservable inputs based on the best information available in the
circumstances, to the extent observable inputs are not available (including the
Fund’s own assumptions used in determining the fair value of investments)
The inputs or methodologies 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, 2010 in determining
the fair valuation of the Fund’s investments:

Investments in Securities

Valuation Inputs  Level 1  Level 2  Level 3  Total 
Assets:           
Long-Term           
Investments:           
   Common           
   Stocks  $ 247,438  $ 283,235  $ 1,379,354 $  1,910,027 
   Corporate           
   Bonds      72,220,406  90,818  72,311,224 
   Floating           
   Rate Loan           
   Interests      245,603,580  76,077,994  321,681,574 
   Foreign           
   Government           
   Obligations .      25,093,042    25,093,042 
   Other           
   Interests      11,500  5,191,177  5,202,677 
   Preferred           
   Stocks        57,680  57,680 
   Warrants      8,589  224  8,813 
Short-Term           
Securities    8,662,749      8,662,749 
Total  $ 8,910,187  $343,220,352  $82,797,247 $  434,927,786 

See Notes to Financial Statements.

36 SEMI-ANNUAL REPORT

APRIL 30, 2010


Schedule of Investments (concluded)

BlackRock Floating Rate Income Trust (BGT)

The following table summarizes the inputs used as of April 30, 2010 in determining
the fair valuation of the Fund’s other financial instruments:

Other Financial Instruments1

Valuation Inputs  Level 1  Level 2  Level 3  Total 
Assets    $ 1,324,708  $ 9,486 $  1,334,194 
Liabilities      (196,065)  (196,065) 
Total    $ 1,324,708  $ (186,579) $  1,138,129 

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

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

        Investments in Securities     
  Common  Corporate  Floating Rate  Other  Preferred     
  Stocks  Bonds  Loan Interests     Interests  Stocks  Warrants  Total 
Balance, as of October 31, 2009  $ 112,485  $ 288,246  $84,427,073  $ 2,726,281    $ 224  $87,554,309 
Accrued discounts/premiums    113,227  690,268        803,495 
Realized gain (loss)      (6,804,623)  (2,000,875)      (8,805,498) 
Change in unrealized               
appreciation/               
depreciation2  174,051  74,918  11,686,521  4,482,269      16,417,759 
Net purchases (sales)  10,611  (385,573)  (25,768,459)  (404,410)  $ 57,680    (26,490,151) 
Net transfers in/out  1,082,207    11,847,214  387,912      13,317,333 
Balance, as of April 30, 2010  $ 1,379,354  $ 90,818  $76,077,994  $ 5,191,177  $ 57,680  $ 224  $82,797,247 

2 Included in the related net change in unrealized appreciation/depreciation on the Statements of Operations. The change in unrealized appreciation/depreciation on securities
still held at April 30, 2010 was $5,661,500.

The following table is a reconciliation of Level 3 other financial instruments for which
significant unobservable inputs were used to determine fair value:

Investments in Other
Financial Instruments3

  Assets  Liabilities 
Balance, as of October 31, 2009  $ 1,531  $ (461,174) 
Accrued discounts/premiums     
Realized gain (loss)     
Change in unrealized     
appreciation/depreciation4  7,955  265,109 
Net purchases (sales)     
Net transfers in/out     
Balance, as of April 30, 2010  $ 9,486  $ (196,065) 

3 Other financial instruments are swaps and unfunded loan commitments.
4 Included in the related net change in unrealized appreciation/depreciation
on the Statements of Operations. The change in unrealized appreciation/
depreciation on securities still held at April 30, 2010 was $273,064.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

APRIL 30, 2010

37


Statements of Assets and Liabilities           
  BlackRock  BlackRock  BlackRock  BlackRock  BlackRock 
  Credit  Credit  Credit  Credit  Floating 
  Allocation  Allocation  Allocation  Allocation  Rate 
  Income  Income  Income  Income  Income 
  Trust I, Inc.  Trust II, Inc.  Trust III  Trust IV  Trust 
April 30, 2010 (Unaudited)  (PSW)  (PSY)  (BPP)  (BTZ)  (BGT) 
     Assets           
Investments at value — unaffiliated1  $ 149,785,695  $ 637,264,195  $ 283,783,732  $ 980,085,475  $ 426,270,497 
Investments at value — affiliated2  124,379  1,817,048  6,947,057  41,474,360  8,662,749 
Unrealized appreciation on foreign currency exchange contracts          1,319,248 
Unrealized appreciation on unfunded loan commitments          9,486 
Cash        10,585   
Cash pledged as collateral for financial futures contracts  50,000    40,000  850,000   
Cash pledged as collateral for swaps        600,000  600,000 
Foreign currency at value3  383    478  44  11,220,886 
Investments sold receivable      68,575    19,574,067 
Interest receivable  2,219,885  9,365,164  4,248,900  14,334,034  3,114,886 
Dividends receivable  20,344  80,916  33,707  95,076  355 
Margin variation receivable  12,375  18,563  10,969  205,125   
Income receivable — affiliated    204  208  520   
Swaps receivable          6,426 
Commitment fees receivable          539 
Principal paydown receivable          13,916 
Other assets    72,794  52,203  112,664  100,452 
Prepaid expenses  54,878  86,085  41,606  119,075  127,541 
Total assets  152,267,939  648,704,969  295,227,435  1,037,886,958  471,021,048 
     Liabilities           
Bank overdraft          11,921 
Loan payable          37,000,000 
Unrealized depreciation on swaps  175,918  351,837  175,919  703,674  173,967 
Unrealized depreciation on unfunded loan commitments          22,098 
Reverse repurchase agreements  2,662,946  7,707,202    68,653,890   
Investments purchased payable  1,749,493  7,509,850  3,631,029  12,229,581  37,202,721 
Investment advisory fees payable  76,917  329,225  162,849  563,764  218,360 
Income dividends payable — Common Shares  34,119  189,927  62,316  520,120   
Swaps payable  6,067  12,133  6,067  24,267   
Officer's and Directors' fees payable  978  76,661  53,469  113,451  93,179 
Deferred income          9,486 
Other affiliates payable  888  3,728  1,764  5,932  2,513 
Interest payable  305  883    7,867  25,452 
Other accrued expenses payable  48,486  104,451  103,220  152,617  111,258 
Total liabilities  4,756,117  16,285,897  4,196,633  82,975,163  74,870,955 
     Preferred Shares at Redemption Value           
$25,000 per share liquidation preferrence, plus unpaid dividends4,5,6  40,259,152  169,091,457  70,427,782  231,045,162  58,812,346 
Net Assets Applicable to Common Shareholders  $ 107,252,670  $ 463,327,615  $ 220,603,020  $ 723,866,633  $ 337,337,747 
     Net Assets Applicable to Common Shareholders Consist of           
Paid-in capital4,7,8  $ 237,664,112  $ 942,700,922  $ 423,649,824  $1,138,011,175  $ 427,834,152 
Undistributed (distributions in excess of) net investment income  (540,094)  (3,493,073)  (804,992)  (12,201,408)  794,510 
Accumulated net realized loss  (129,558,170)  (462,183,032)  (190,069,747)  (378,722,908)  (76,159,238) 
Net unrealized appreciation/depreciation  (313,178)  (13,697,202)  (12,172,065)  (23,220,226)  (15,131,677) 
Net Assets Applicable to Common Shareholders  $ 107,252,670  $ 463,327,615  $ 220,603,020  $ 723,866,633  $ 337,337,747 
Net asset value per Common Share  $ 10.40  $ 11.35  $ 11.95  $ 13.97  $ 14.32 
     1 Investments at cost — unaffiliated  $ 149,969,746  $ 650,680,840  $ 295,822,018  $1,003,236,130  $ 442,441,074 
     2 Investments at cost — affiliated  $ 124,379  $ 1,817,048  $ 6,947,057  $ 41,474,360  $ 8,662,749 
     3 Foreign currency at cost  $ 368    $ 459  $ 43  $ 11,312,614 
     4 Preferred and Common Shares par value per share  $ 0.10  $ 0.10  $ 0.001  $ 0.001  $ 0.001 
     5 Preferred Shares outstanding  1,610  6,761  2,817  9,240  2,352 
     6 Preferred Shares authorized  5,460  22,000  unlimited  unlimited  unlimited 
     7 Common Shares outstanding  10,311,941  40,807,418  18,467,785  51,828,157  23,564,801 
     8 Common Shares authorized  199,994,540  199,978,000  unlimited  unlimited  unlimited 

See Notes to Financial Statements.

38 SEMI-ANNUAL REPORT

APRIL 30, 2010


Statements of Operations           
  BlackRock  BlackRock  BlackRock  BlackRock  BlackRock 
         Credit          Credit       Credit       Credit       Floating 
  Allocation  Allocation  Allocation     Allocation         Rate 
  Income       Income       Income       Income       Income 
  Trust I, Inc.  Trust II, Inc.       Trust III       Trust IV         Trust 
Six Months Ended April 30, 2010 (Unaudited)         (PSW)           (PSY)       (BPP)         (BTZ)         (BGT) 
     Investment Income           
Interest  $ 2,457,577  $ 11,090,605  $ 5,397,384  $ 16,318,520  $ 12,769,115 
Dividends  910,188  5,066,074  2,052,105  6,497,752  4,162 
Income — affiliated  25,184  90,414  43,062  164,333  2,288 
Facility and other fees          364,415 
Total income  3,392,949  16,247,093  7,492,551  22,980,605  13,139,980 
     Expenses           
Investment advisory  427,527  1,813,388  907,950  3,104,956  1,515,471 
Commissions for Preferred Shares  30,648  131,079  53,486  172,274  42,764 
Professional  26,915  32,741  29,759  51,418  103,581 
Transfer agent  24,517  65,299  18,638  19,627  15,137 
Accounting services  14,412  74,921  43,378  81,982  31,068 
Printing  6,999  28,589  40,823  129,371  35,363 
Officers and Directors  5,512  27,930  15,304  40,987  21,979 
Registration  5,020  7,913  5,143  9,065  4,569 
Custodian  4,166  12,754  9,406  18,315  74,280 
Borrowing cost1          208,351 
Miscellaneous  21,338  45,290  33,502  67,428  58,436 
Total expenses excluding interest expense  567,054  2,239,904  1,157,389  3,695,423  2,110,999 
Interest expense  5,683  13,855    113,838  165,117 
Total expenses  572,737  2,253,759  1,157,389  3,809,261  2,276,116 
Less fees waived by advisor  (14,257)  (48,676)  (22,496)  (91,034)  (304,457) 
Less fees paid indirectly      (3,804)  (70)   
Total expenses after fees waived and paid indirectly  558,480  2,205,083  1,131,089  3,718,157  1,971,659 
Net investment income  2,834,469  14,042,010  6,361,462  19,262,448  11,168,321 
     Realized and Unrealized Gain (Loss)           
Net realized gain (loss) from:           
   Investments  (1,280,649)  (10,839,240)  (2,368,330)  20,300,392  (9,531,475) 
   Financial futures contracts  151,309  (14,840)  (8,662)  6,287,543   
   Swaps  (26,289)  (52,578)  (26,289)  (105,156)  (40,786) 
   Foreign currency transactions          6,510,307 
   Options written        (2,202,351)   
  (1,155,629)  (10,906,658)  (2,403,281)  24,280,428  (3,061,954) 
Net change in unrealized appreciation/depreciation on:           
   Investments  13,591,954  70,500,903  20,614,474  59,030,355  23,567,083 
   Financial futures contracts  (48,196)  36,435  22,607  (203,337)   
   Swaps  (6,966)  (13,933)  (6,967)  (27,865)  275,079 
   Foreign currency transactions  (41)    (49)  (6)  2,161,128 
   Options written        (661,829)   
   Unfunded loan commitments          58,337 
  13,536,751  70,523,405  20,630,065  58,137,318  26,061,627 
Total realized and unrealized gain  12,381,122  59,616,747  18,226,784  82,417,746  22,999,673 
     Dividends to Preferred Shareholders From           
Net investment income  (298,930)  (1,260,733)  (84,996)  (1,715,794)  (436,859) 
Net Increase in Net Assets Applicable to Common           
   Shareholders Resulting from Operations  $ 14,916,661  $ 72,398,024  $ 24,503,250  $ 99,964,400  $ 33,731,135 
   1 See Note 8 of the Notes to the Financial Statements for details of short-term borrowings.         

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

APRIL 30, 2010

39


Statements of Changes in Net Assets         
  BlackRock Credit Allocation  BlackRock Credit Allocation 
  Income Trust I, Inc. (PSW)  Income Trust II, Inc. (PSY) 
  Six Months  Year       Six Months  Year 
  Ended  Ended  Ended  Ended 
  April 30, 2010  October 31,  April 30, 2010     October 31, 
Increase (Decrease) in Net Assets Applicable to Common Shareholders:  (Unaudited)  2009  (Unaudited)  2009 
     Operations         
Net investment income  $ 2,834,469  $ 8,880,738  $ 14,042,010  $ 45,246,551 
Net realized loss  (1,155,629)  (56,926,270)  (10,906,658)  (196,959,541) 
Net change in unrealized appreciation/depreciation  13,536,751  78,150,799  70,523,405  285,726,033 
Dividends to Preferred Shareholders from net investment income  (298,930)  (774,824)  (1,260,733)  (3,570,342) 
Net increase in net assets applicable to Common Shareholders resulting from operations  14,916,661  29,330,443  72,398,024  130,442,701 
     Dividends and Distributions to Common Shareholders From         
Net investment income  (3,712,299)  (8,498,069)  (18,363,338)  (45,358,157) 
Tax return of capital    (1,345,345)    (116,310) 
Decrease in net assets resulting from dividends and distributions         
   to Common Shareholders  (3,712,299)  (9,843,414)  (18,363,338)  (45,474,467) 
     Capital Share Transactions         
Reinvestment of common dividends    131,419    1,192,453 
     Net Assets Applicable to Common Shareholders         
Total increase in net assets applicable to Common Shareholders  11,204,362  19,618,448  54,034,686  86,160,687 
Beginning of period  96,048,308  76,429,860  409,292,929  323,132,242 
End of period  $ 107,252,670  $ 96,048,308  $ 463,327,615  $ 409,292,929 
Undistributed (distributions in excess of) net investment income  $ (540,094)  $ 636,666  $ (3,493,073)  $ 2,088,988 
  BlackRock Credit Allocation  BlackRock Credit Allocation 
  Income Trust III (BPP)  Income Trust IV (BTZ) 
  Six Months  Year       Six Months  Year 
  Ended  Ended  Ended  Ended 
  April 30, 2010  October 31,  April 30, 2010     October 31, 
Increase (Decrease) in Net Assets Applicable to Common Shareholders:  (Unaudited)  2009  (Unaudited)  2009 
     Operations         
Net investment income  $ 6,361,462  $ 20,010,967  $ 19,262,448  $ 51,505,911 
Net realized gain (loss)  (2,403,281)  (116,393,404)  24,280,428  (247,029,147) 
Net change in unrealized appreciation/depreciation  20,630,065  160,906,851  58,137,318  378,816,964 
Dividends and distributions to Preferred Shareholders from net investment income  (84,996)  (577,861)  (1,715,794)  (3,828,948) 
Net increase in net assets applicable to Common Shareholders         
   resulting from operations  24,503,250  63,946,553  99,964,400  179,464,780 
     Dividends and Distributions to Common Shareholders From         
Net investment income  (8,033,486)  (17,461,459)  (31,096,894)  (48,398,817) 
Tax return of capital    (4,250,036)    (24,678,883) 
Decrease in net assets resulting from dividends and distributions         
   to Common Shareholders  (8,033,486)  (21,711,495)  (31,096,894)  (73,077,700) 
     Capital Share Transactions         
Reinvestment of common dividends    587,363     
     Net Assets Applicable to Common Shareholders         
Total increase in net assets applicable to Common Shareholders  16,469,764  42,822,421  68,867,506  106,387,080 
Beginning of period  204,133,256  161,310,835  654,999,127  548,612,047 
End of period  $ 220,603,020  $ 204,133,256  $ 723,866,633  $ 654,999,127 
Undistributed (distributions in excess of) net investment income  $ (804,992)  $ 952,028  $ (12,201,408)  $ 1,348,832 
See Notes to Financial Statements.         

40 SEMI-ANNUAL REPORT

APRIL 30, 2010


Statements of Changes in Net Assets (concluded)     
  BlackRock              
  Floating Rate Income Trust (BGT) 
  Six Months  Year 
  Ended     Ended 
  April 30, 2010  October 31, 
Increase (Decrease) in Net Assets Applicable to Common Shareholders:  (Unaudited)  2009 
     Operations     
Net investment income  $ 11,168,321  $ 23,060,864 
Net realized loss  (3,061,954)  (48,386,859) 
Net change in unrealized appreciation/depreciation  26,061,627  112,537,512 
Dividends to Preferred Shareholders from net investment income  (436,859)  (971,243) 
Net increase in net assets applicable to Common Shareholders resulting from operations  33,731,135  86,240,274 
     Dividends and Distributions to Common Shareholders From     
Net investment income  (9,539,342)  (27,963,106) 
Tax return of capital    (9,994,857) 
Decrease in net assets resulting from dividends and distributions to Common Shareholders  (9,539,342)  (37,957,963) 
     Capital Share Transactions     
Reinvestment of common dividends  273,755   
     Net Assets Applicable to Common Shareholders     
Total increase in net assets applicable to Common Shareholders  24,465,548  48,282,311 
Beginning of period  312,872,199  264,589,888 
End of period  $ 337,337,747  $ 312,872,199 
Undistributed (distributions in excess of) net investment income  $ 794,510  $ (397,610) 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

APRIL 30, 2010

41


Statement of Cash Flows   
  Six Months 
  Ended 
  April 30, 2010 
BlackRock Floating Rate Income Trust (BGT)  (Unaudited) 
     Cash Used for Operating Activities   
Net increase in net assets resulting from operations, excluding dividends to Preferred Shareholders  $ 34,167,994 
Adjustments to reconcile net increase in net assets resulting from operations to net cash used for operating activities:   
   Decrease in interest receivable  16,946 
   Decrease in swap receivable  467 
   Increase in commitment fees receivable  (539) 
   Decrease in other assets  24,202 
   Increase in dividends receivable  (355) 
   Decrease in income receivable — affiliated  341 
   Increase in investment advisory fees payable  12,141 
   Decrease in interest expense payable  (15,374) 
   Increase in other affiliates payable  289 
   Decrease in accrued expenses payable  (73,794) 
   Decrease in swaps payable  (4,317) 
   Decrease in other liabilities  (845,950) 
   Increase in Officer and Directors payable  14,303 
   Net periodic and termination payments of swaps  35,386 
   Realized and unrealized gain — net  (16,317,203) 
   Amortization of premium and discount on investments  (1,948,886) 
   Paid-in-kind income  (256,753) 
   Proceeds from sales and paydowns of long-term investments  205,141,042 
   Purchases and payups of long-term investments  (232,120,335) 
   Net proceeds from sales of short-term securities  658,185 
Cash used for operating activities  (11,512,210) 
     Cash Provided by Financing Activities   
Cash receipts from borrowings  166,000,000 
Cash payments from borrowings  (143,000,000) 
Cash dividends paid to Common Shareholders  (9,316,700) 
Cash dividends paid to Preferred Shareholders  (436,548) 
Increase in bank overdraft  11,921 
Cash provided by financing activities  13,258,673 
     Cash Impact from Foreign Exchange Fluctuations   
Cash impact from foreign exchange fluctuations  (42,879) 
     Cash   
Net increase in cash  1,703,584 
Cash at beginning of period  9,517,302 
Cash at end of period  $ 11,220,886 
     Cash Flow Information   
Cash paid for interest  $ 180,491 
     Noncash Financing Activities   
Capital shares issued in reinvestment of dividends paid to shareholders  $ 273,755 

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

See Notes to Financial Statements.

42 SEMI-ANNUAL REPORT

APRIL 30, 2010


Financial Highlights      BlackRock Credit Allocation Income Trust I, Inc. (PSW) 
  Six Months             
  Ended                  
  April 30, 2010    Year Ended October 31,     
  (Unaudited)  2009  2008  2007    2006  2005 
     Per Share Operating Performance               
Net asset value, beginning of period  $ 9.31  $ 7.43  $ 19.54  $ 22.25  $ 22.36  $ 23.69 
Net investment income  0.271  0.861  1.701  2.011    2.141  2.16 
Net realized and unrealized gain (loss)  1.21  2.06  (12.06)  (2.41)    0.07  (1.09) 
Dividends to Preferred Shareholders from net investment income  (0.03)  (0.08)  (0.48)  (0.71)    (0.63)  (0.40) 
Net increase (decrease) from investment operations  1.45  2.84  (10.84)  (1.11)    1.58  0.67 
Dividends and distributions to Common Shareholders from:               
   Net investment income  (0.36)2  (0.83)  (1.22)  (1.18)    (1.69)  (2.00) 
   Tax return of capital    (0.13)  (0.05)  (0.42)       
Total dividends and distributions  (0.36)  (0.96)  (1.27)  (1.60)    (1.69)  (2.00) 
Net asset value, end of period  $ 10.40  $ 9.31  $ 7.43  $ 19.54  $ 22.25  $ 22.36 
Market price, end of period  $ 9.32  $ 8.24  $ 7.00  $ 17.29  $ 21.26  $ 21.03 
     Total Investment Return3               
Based on net asset value  16.40%4  46.46%  (58.09)%  (5.03)%    7.97%  3.25% 
Based on market price  17.86%4  37.59%  (55.38)%  (12.05)%    9.69%  0.73% 
     Ratios to Average Net Assets Applicable to Common Shareholders               
Total expenses5  1.15%6  1.61%  2.00%  1.32%    1.29%  1.26% 
Total expenses after fees waived and paid indirectly5  1.12%6  1.59%  2.00%  1.32%    1.29%  1.26% 
Total expenses after fees waived and paid indirectly and excluding               
   interest expense5  1.11%6  1.44%  1.48%  1.29%    1.29%  1.26% 
Net investment income5  5.67%6  12.45%  10.79%  9.38%    9.70%  9.23% 
Dividends to Preferred Shareholders  0.60%6  1.09%  3.03%  3.29%    2.84%  1.71% 
Net investment income to Common Shareholders  5.07%6  11.36%  7.76%  6.09%    6.86%  7.52% 
     Supplemental Data               
Net assets applicable to Common Shareholders, end of period (000)  $ 107,253  $ 96,048  $ 76,430  $ 201,155  $ 228,734  $ 229,850 
Preferred Shares outstanding at $25,000 liquidation preference,               
   end of period (000)  $ 40,250  $ 40,250  $ 68,250  $ 136,500  $ 136,500  $ 136,500 
Borrowings outstanding, end of period (000)  $ 2,663  $ 4,972  $ 4,024  $ 590       
Average borrowings outstanding, during the period (000)  $ 2,442  $ 5,321  $ 25,692  $ 2,690       
Portfolio turnover  28%  36%  119%  88%    19%  25% 
Asset coverage per Preferred Share at $25,000 liquidation preference,               
   end of period  $ 91,622  $ 84,663  $ 53,009  $ 61,846  $ 66,907  $ 67,115 

1 Based on average shares outstanding.
2 A portion of the dividends from net investment income may be deemed a tax return of capital or net realized gain at fiscal year end.
3 Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns.
Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.
4 Aggregate total investment return.
5 Do not reflect the effect of dividends to Preferred Shareholders.
6 Annualized.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

APRIL 30, 2010

43


Financial Highlights      BlackRock Credit Allocation Income Trust II, Inc. (PSY) 
  Six Months             
  Ended                
  April 30, 2010    Year Ended October 31,     
  (Unaudited)  2009  2008  2007    2006  2005 
     Per Share Operating Performance               
Net asset value, beginning of period  $ 10.03  $ 7.96  $ 19.93  $ 22.36  $ 22.26  $ 23.48 
Net investment income1  0.34  1.11  1.73  2.02    2.03  2.09 
Net realized and unrealized gain (loss)  1.46  2.17  (11.84)  (2.35)    0.32  (0.91) 
Dividends to Preferred Shareholders               
   from net investment income  (0.03)  (0.09)  (0.49)  (0.73)    (0.65)  (0.40) 
Net increase (decrease) from investment operations  1.77  3.19  (10.60)  (1.06)    1.70  0.78 
Dividends and distributions to Common Shareholders from:               
   Net investment income  (0.45)2  (1.12)  (1.15)  (1.16)    (1.51)  (2.00) 
   Tax return of capital               (0.00)3  (0.22)  (0.21)    (0.09)   
Total dividends and distributions  (0.45)  (1.12)  (1.37)  (1.37)    (1.60)  (2.00) 
Net asset value, end of period  $ 11.35  $ 10.03  $ 7.96  $ 19.93  $ 22.36  $ 22.26 
Market price, end of period  $ 10.35  $ 8.90  $ 8.10  $ 16.94  $ 20.12  $ 21.20 
     Total Investment Return4               
Based on net asset value  18.47%5  48.36%  (55.71)%  (4.35)%    8.77%  3.73% 
Based on market price  21.75%5  29.37%  (46.97)%  (9.65)%    2.77%  1.43% 
     Ratios to Average Net Assets Applicable to Common Shareholders               
Total expenses6  1.05%7  1.41%  1.90%  1.27%    1.23%  1.20% 
Total expenses after fees waived and paid indirectly6  1.03%7  1.41%  1.90%  1.27%    1.23%  1.20% 
Total expenses after fees waived and paid indirectly and excluding               
   interest expense6  1.02%7  1.33%  1.40%  1.23%    1.23%  1.20% 
Net investment income6  6.53%7  15.05%  10.71%  9.29%    9.26%  8.96% 
Dividends to Preferred Shareholders  0.59%7  1.19%  3.04%  3.34%    2.96%  1.73% 
Net investment income to Common Shareholders  5.94%7  13.86%  7.67%  5.95%    6.30%  7.23% 
     Supplemental Data               
Net assets applicable to Common Shareholders, end of period (000)  $ 463,328  $ 409,293  $ 323,132  $ 809,411  $ 907,897  $ 903,601 
Preferred Shares outstanding at $25,000 liquidation preference,               
   end of period (000)  $ 169,025  $ 169,025  $ 275,000  $ 550,000  $ 550,000  $ 550,000 
Borrowings outstanding, end of period (000)  $ 7,707  $ 9,511  $ 54,369         
Average borrowings outstanding, during the period (000)  $ 5,817  $ 15,842  $ 94,908  $ 14,375       
Portfolio turnover  37%  16%  120%  81%    18%  28% 
Asset coverage per Preferred Share at $25,000 liquidation preference,               
   end of period  $ 93,539  $ 85,547  $ 54,408  $ 61,817  $ 66,294  $ 66,077 

1 Based on average shares outstanding.
2 A portion of the dividends from net investment income may be deemed a tax return of capital or net realized gain at fiscal year end.
3 Amount is less than $(0.01) per share.
4 Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns.
Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.
5 Aggregate total investment return.
6 Do not reflect the effect of dividends to Preferred Shareholders.
7 Annualized.

See Notes to Financial Statements.

44 SEMI-ANNUAL REPORT

APRIL 30, 2010


Financial Highlights        BlackRock Credit Allocation Income Trust III (BPP) 
      Period         
  Six Months  Year  January 1,         
  Ended     Ended  2008 to         
  April 30, 2010  October 31,  October 31,    Year Ended December 31,   
  (Unaudited)  2009  2008  2007  2006  2005  2004 
     Per Share Operating Performance               
Net asset value, beginning of period  $ 11.05  $ 8.77  $ 19.47  $ 24.52  $ 24.43  $ 25.88  $ 25.58 
Net investment income  0.341  1.091  1.481  2.05  2.05  2.11  2.22 
Net realized and unrealized gain (loss)  1.00  2.40  (10.74)  (4.72)  0.62  (0.82)  0.33 
Dividends and distributions to Preferred Shareholders from:               
   Net investment income  (0.00)2  (0.03)  (0.31)  (0.62)  (0.46)  (0.26)  (0.16) 
   Net realized gain          (0.12)  (0.13)  (0.02) 
Net increase (decrease) from investment operations  1.34  3.46  (9.57)  (3.29)  2.09  0.90  2.37 
Dividends and distributions to Common Shareholders from:               
   Net investment income  (0.44)3  (0.95)  (0.83)  (1.59)  (1.58)  (1.74)  (2.00) 
   Net realized gain        (0.02)  (0.42)  (0.61)  (0.07) 
   Tax return of capital    (0.23)  (0.30)  (0.15)       
Total dividends and distributions  (0.44)  (1.18)  (1.13)  (1.76)  (2.00)  (2.35)  (2.07) 
Net asset value, end of period  $ 11.95  $ 11.05  $ 8.77  $ 19.47  $ 24.52  $ 24.43  $ 25.88 
Market price, end of period  $ 10.78  $ 9.94  $ 8.51  $ 17.31  $ 26.31  $ 24.20  $ 25.39 
     Total Investment Return4               
Based on net asset value  12.74%5  47.16%  (51.22)%5  (13.86)%  8.89%  3.81%  10.15% 
Based on market price  13.05%5  36.42%  (46.76)%5  (28.62)%  17.98%  4.83%  11.01% 
     Ratios to Average Net Assets Applicable to Common Shareholders             
Total expenses6  1.11%7  1.66%  1.96%7  1.46%  1.62%  1.51%  1.44% 
Total expenses after fees waived and before fees               
   paid indirectly6  1.09%7  1.64%  1.96%7  1.45%  1.62%  1.51%  1.44% 
Total expenses after fees waived and paid indirectly6  1.08%7  1.64%  1.96%7  1.45%  1.62%  1.51%  1.44% 
Total expenses after fees waived and paid indirectly               
   and excluding interest expense6  1.08%7  1.39%  1.39%7  1.24%  1.25%  1.22%  1.19% 
Net investment income6  6.09%7  13.08%  10.53%7  8.90%  8.46%  8.37%  8.66% 
Dividends to Preferred Shareholders  0.08%7  0.38%  2.19%7  2.70%  1.89%  1.27%  0.62% 
Net investment income to Common Shareholders  6.01%7  12.70%  8.34%7  6.20%  6.58%  7.10%  8.04% 
     Supplemental Data               
Net assets applicable to Common Shareholders,               
   end of period (000)  $ 220,603  $ 204,133  $ 161,311  $ 358,017  $ 449,995  $ 447,190  $ 473,809 
Preferred Shares outstanding at $25,000               
   liquidation preference, end of period (000)  $ 70,425  $ 70,425  $ 110,400  $ 220,800  $ 220,800  $ 220,800  $ 220,800 
Borrowings outstanding, end of period (000)    $ 13,235  $ 44,281         
Average borrowings outstanding, during the period (000)  $ 145  $ 16,330  $ 51,995  $ 903  $ 1,303  $ 2,904  $ 782 
Portfolio turnover  31%  16%  121%  97%  91%  77%  88% 
Asset coverage per Preferred Share at $25,000               
   liquidation preference, end of period  $ 103,312  $ 97,465  $ 61,540  $ 65,554  $ 75,965  $ 75,642  $ 78,650 

1 Based on average shares outstanding.
2 Amount is less than $(0.01) per share.
3 A portion of the dividends from net investment income may be deemed a tax return of capital or net realized gain at fiscal year end.
4 Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns.
Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.
5 Aggregate total investment return.
6 Do not reflect the effect of dividends to Preferred Shareholders.
7 Annualized.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

APRIL 30, 2010

45


Financial Highlights  BlackRock Credit Allocation Income Trust IV (BTZ) 
                Period 
  Six Months        December 27, 
  Ended           20061 to    
      Year Ended October 31,   
  April 30, 2010      October 31, 
  (Unaudited)     2009  2008           2007      
     Per Share Operating Performance           
Net asset value, beginning of period  $ 12.64  $ 10.59  $ 21.39  $ 23.882 
Net investment income  0.373    0.993  1.333  1.25 
Net realized and unrealized gain (loss)  1.59    2.54  (10.06)  (1.86) 
Dividends to Preferred Shareholders from net investment income  (0.03)    (0.07)  (0.33)  (0.31) 
Net increase (decrease) from investment operations  1.93    3.46  (9.06)  (0.92) 
Dividends and distributions to Common Shareholders from:           
   Net investment income  (0.60)4    (0.93)  (0.90)  (0.93) 
   Tax return of capital                 (0.48)  (0.84)  (0.47) 
Total dividends and distributions  (0.60)    (1.41)  (1.74)  (1.40) 
Capital charge with respect to issuance of:           
   Common Shares          (0.04) 
   Preferred Shares          (0.13) 
Total capital charges          (0.17) 
Net asset value, end of period  $ 13.97  $ 12.64  $ 10.59  $ 21.39 
Market price, end of period  $ 12.59  $ 10.96  $ 9.36  $ 18.65 
     Total Investment Return5           
Based on net asset value  16.29%6    41.06%  (44.27)%  (4.42)%6 
Based on market price  20.86%6    38.38%  (43.51)%  (20.34)%6 
     Ratios to Average Net Assets Applicable to Common Shareholders           
Total expenses7  1.12%8    1.60%  1.65%  1.90%8 
Total expenses after fees waived and paid indirectly7  1.10%8    1.58%  1.65%  1.88%8 
Total expenses after fees waived and paid indirectly and excluding interest expense7  1.06%8    1.24%  1.21%  1.04%8 
Net investment income7  5.69%8    9.93%  7.63%  6.50%8 
Dividends to Preferred Shareholders  0.51%8    0.74%  1.89%  1.64%8 
Net investment income to Common Shareholders  5.18%8    9.19%  5.74%  4.86%8 
     Supplemental Data           
Net assets applicable to Common Shareholders, end of period (000)  $ 723,867  $ 654,999  $ 548,612  $ 1,108,534 
Preferred Shares outstanding at $25,000 liquidation preference, end of period (000)  $ 231,000  $ 231,000  $ 231,000  $ 462,000 
Borrowings outstanding, end of period (000)  $ 68,654  $ 61,576  $ 223,512  $ 88,291 
Average borrowings outstanding, during the period (000)  $ 47,478  $ 76,521  $ 107,377  $ 96,468 
Portfolio turnover  30%    30%  126%  35% 
Asset coverage per Preferred Share at $25,000 liquidation preference, end of period  $ 103,345  $ 95,892  $ 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 A portion of the dividends from net investment income may be deemed a tax return of capital or net realized gain at fiscal year end.
5 Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns.
Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.
6 Aggregate total investment return.
7 Do not reflect the effect of dividends to Preferred Shareholders.
8 Annualized.

See Notes to Financial Statements.

46 SEMI-ANNUAL REPORT

APRIL 30, 2010


Financial Highlights        BlackRock Floating Rate Income Trust (BGT) 
  Six Months    Period          Period 
  Ended     Year  January 1,          August 30, 
  April 30,    Ended  2008 to          20041 to 
        Year Ended December 31,     
  2010      October 31,  October 31,          December 31, 
  (Unaudited)   2009  2008  2007  2006    2005  2004 
     Per Share Operating Performance                 
Net asset value, beginning of period  $ 13.29  $ 11.24  $ 17.71  $ 19.11  $ 19.13  $ 19.21  $ 19.102 
Net investment income  0.473  0.983  1.423  2.03  1.99    1.64  0.33 
Net realized and unrealized gain (loss)  0.99  2.72  (6.62)  (1.39)  (0.06)    (0.17)  0.35 
Dividends and distributions to Preferred Shareholders from:                 
   Net investment income  (0.02)  (0.04)  (0.24)  (0.54)  (0.48)    (0.33)  (0.04) 
   Net realized gain          (0.01)         (0.00)4   
Net increase (decrease) from investment operations  1.44  3.66  (5.44)  0.10  1.44    1.14  0.64 
Dividends and distributions to Common Shareholders from:                 
   Net investment income  (0.41)  (1.19)  (1.03)  (1.14)  (1.44)    (1.22)  (0.37) 
   Net realized gain          (0.02)         (0.00)4   
   Tax return of capital    (0.42)    (0.36)         
Total dividends and distributions  (0.41)  (1.61)  (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  $ 14.32  $ 13.29  $ 11.24  $ 17.71  $ 19.11  $ 19.13  $ 19.21 
Market price, end of period  $ 15.00  $ 12.58  $ 9.63  $ 15.78  $ 19.27  $ 17.16  $ 18.63 
     Total Investment Return5                 
Based on net asset value  10.90%6  39.51%  (31.62)%6  0.98%  7.93%    6.63%  2.57%6 
Based on market price  22.72%6  54.14%  (34.24)%6  (10.92)%  21.31%    (1.34)%  (5.00)%6 
     Ratios to Average Net Assets Applicable to Common Shareholders               
Total expenses7  1.41%8  1.96%  2.22%8  1.67%  1.75%    1.56%  1.26%8 
Total expenses after fees waived and paid indirectly7  1.22%8  1.68%  1.89%8  1.33%  1.43%    1.23%  0.97%8 
Total expenses after fees waived and paid indirectly                 
   and excluding interest expense7  1.12%8  1.24%  1.21%8  1.16%  1.19%    1.15%  0.97%8 
Net investment income7  6.91%8  8.92%  10.56%8  10.83%  10.38%    8.52%  5.04%8 
Dividends to Preferred Shareholders  0.27%8  0.38%  1.75%8  2.88%  2.51%    1.71%  0.62%8 
Net investment income to Common Shareholders  6.64%8  8.54%  8.81%8  7.95%  7.87%    6.81%  4.42%8 
     Supplemental Data                 
Net assets applicable to Common Shareholders,                 
   end of period (000)  $ 337,338  $ 312,872  $ 264,590  $ 417,086  $ 449,065  $ 449,219  $ 451,126 
Preferred Shares outstanding at $25,000                 
   liquidation preference, end of period (000)  $ 58,800  $ 58,800  $ 58,800  $ 243,450  $ 243,450  $ 243,450  $ 243,450 
Borrowings outstanding, end of period (000)  $ 37,000  $ 14,000  $ 123,150    $ 26,108       
Average borrowings outstanding during the period (000)  $ 22,264  $ 53,156  $ 71,780  $ 10,524  $ 19,562  $ 10,722  $ 114 
Portfolio turnover  52%  42%  25%  41%  50%    46%  11% 
Asset coverage per Preferred Share at $25,000                 
   liquidation preference, end of period  $ 168,431  $ 158,029  $ 137,505  $ 67,849  $ 73,810  $ 71,139  $ 71,330 

1 Commencement of operations. This information includes the initial investment by BlackRock Funding, Inc.
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 price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns.
Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.
6 Aggregate total investment return.
7 Do not reflect the effect of dividends to Preferred Shareholders.
8 Annualized.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

APRIL 30, 2010

47


Notes to Financial Statements (Unaudited)

1. Organization and Significant Accounting Policies:

BlackRock Credit Allocation Income Trust I, Inc. (formerly BlackRock
Preferred and Corporate Income Strategies Fund, Inc.) (“PSW”) and
BlackRock Credit Allocation Income Trust II, Inc. (formerly BlackRock
Preferred Income Strategies Fund, Inc.) (“PSY”) are registered as diversi-
fied, closed-end management investment companies under the Investment
Company Act of 1940, as amended (the “1940 Act”). BlackRock Credit
Allocation Income Trust III (formerly BlackRock Preferred Opportunity Trust)
(“BPP”), BlackRock Credit Allocation Income Trust IV (formerly BlackRock
Preferred and Equity Advantage Trust) (“BTZ”) and BlackRock Floating Rate
Income Trust (formerly BlackRock Global Floating Rate Income Trust)
(“BGT”) are registered as non-diversified, closed-end management invest-
ment companies under the 1940 Act. PSW and PSY are organized as
Maryland corporations. BPP, BTZ and BGT are organized as Delaware
statutory trusts. PSW, PSY, BPP, BTZ and BGT are collectively referred to as
the “Funds” or individually as the “Fund.” The Funds’ financial statements
are prepared in conformity with accounting principles generally accepted
in the United States of America (“US GAAP”), which may require the use
of management accruals and estimates. Actual results may differ from
these estimates. The Board of Directors and Board of Trustees of the
Funds, as applicable, are referred to throughout this report as the “Board
of Directors” or the “Board.” The Funds determine and make available for
publication the net asset values of their Common Shares on a daily basis.

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

Valuation: The Funds’ policy is to value their financial investments at mar-
ket value using independent dealers or pricing services selected under the
supervision of the Board. The Funds value their bond investments on the
basis of last available bid prices or current market quotations provided by
dealers or pricing services. Floating rate loan interests are valued at the
mean of the bid prices from one or more brokers or dealers as obtained
from a pricing service. In determining the value of a particular investment,
pricing services may use certain information with respect to transactions in
such investments, quotations from dealers, pricing matrixes, market trans-
actions in comparable investments, various relationships observed in the
market between investments and calculated yield measures based on valu-
ation technology commonly employed in the market for such investments.
Financial futures contracts traded on exchanges are valued at their last
sale price. Swap agreements are valued utilizing quotes received daily by
the Funds’ pricing service or through brokers, which are derived using daily
swap curves and models that incorporate a number of market data factors,
such as discounted cash flows and trades and values of the underlying
reference instruments. Investments in open-end investment companies are
valued at net asset value each business day. Short-term securities with
remaining maturities of 60 days or less may be value at amortized cost,
which approximates fair value.

Securities and other assets and liabilities denominated in foreign curren-
cies are translated into US dollars using exchange rates determined as of
the close of business on the New York Stock Exchange (“NYSE”). Foreign
currency exchange contracts are valued at the mean between the bid and
ask prices and are determined as of the close of business on the NYSE.

Interpolated values are derived when the settlement date of the contract is
an interim date for which quotations are not available.

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 (long positions) or ask
(short positions) price. If no bid or ask price is available, the prior day’s
price will be used, unless it is determined that such prior day’s price no
longer reflects the fair value of the security.

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

In the event that application of these methods of valuation results in a
price for an investment which is deemed not to be representative of the
market value of such investment or is not available, the investment will be
valued by a method approved by the Funds’ Board as reflecting fair value
(“Fair Value Assets”). When determining the price for Fair Value Assets, the
investment advisor and/or the sub-advisor seeks to determine the price
that the Funds 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 instruments is substantially completed
each day at various times prior to the close of business on the NYSE.
Occasionally, events affecting the values of such instruments may occur
between the foreign market close and the close of business on the NYSE
that may not be reflected in the computation of the Fund’s net assets. If
events (for example, a company announcement, market volatility or a nat-
ural disaster) occur during such periods that are expected to materially
affect the value of such instruments, those instruments may be Fair Value
Assets and be valued at their fair value, as determined in good faith by
the Board or by the investment advisor using a pricing service and/or
procedures approved by the Board.

Foreign Currency Transactions: The Funds’ books and records are main-
tained in US dollars. Foreign currency amounts are translated into US
dollars as follows: (i) market value of investment 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 pre-
vailing on the respective dates of such transactions. Generally, when the

48 SEMI-ANNUAL REPORT

APRIL 30, 2010


Notes to Financial Statements (continued)

US dollar rises in value against foreign currency, the Funds’ investments
denominated in that currency will lose value because its currency is worth
fewer US dollars; the opposite effect occurs if the US dollar falls in
relative value.

The Funds report foreign currency related transactions as components of
realized gain (loss) for financial reporting purposes, whereas such compo-
nents are treated as ordinary income for federal income tax purposes.

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 stock in liquidation (and generally
in receiving dividends as well) but is subordinated to the liabilities of the
issuer in all respects. As a general rule, the market value of preferred stock
with a fixed dividend rate and no conversion element varies inversely with
interest rates and perceived credit risk, while the market price of 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: The Funds may invest in floating rate loan interests
that are issued to companies (the “borrower”) by banks, other financial
institutions, and privately and publicly offered corporations (the “lender”).
Floating rate loan interests are generally non-investment grade, often
involve borrowers whose financial condition is troubled or uncertain and
companies that are highly leveraged. The Funds may invest in obligations of
borrowers who are in bankruptcy proceedings. Floating rate loan interests
may include fully funded term loans or revolving lines of credit. Floating
rate loan interests are typically senior in the corporate capital structure of
the issuer. Floating rate loan interests generally pay interest at rates that
are periodically determined by reference to a base lending rate plus a pre-
mium. The base lending rates are generally the lending rate offered by one
or more European banks, such as LIBOR (London Interbank Offered Rate),
the prime rate offered by one or more US banks or the certificate of
deposit rate. Floating rate loan interests may involve foreign borrowers, and
investments may be denominated in foreign currencies. The Funds consider
these investments to be investments in debt securities for purposes of their
investment policies.

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

Floating rate loan interests are usually freely callable at the 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, nor any
rights of offset against the borrower, and the Funds may not benefit directly
from any collateral supporting the loan in which it has purchased the
Participation. As a result, the Funds will assume the credit risk of both the
borrower and the lender that is selling the Participation. The Funds’ invest-
ment in loan participation interests involves the risk of insolvency of the
financial intermediaries who are parties to the transactions. In the event
of the insolvency of the lender selling the Participation, the Funds may
be treated as a general creditor 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
repurchase agreements with qualified third party broker-dealers. In a
reverse repurchase agreement, the Funds sell securities to a bank or bro-
ker-dealer and agrees to repurchase the same securities at a mutually
agreed upon date and price. Certain agreements have no stated maturity
and can be terminated by either party at any time. Interest on the value of
the reverse repurchase agreements issued and outstanding is based upon
competitive market rates determined at the time of issuance. The Funds
may utilize reverse repurchase agreements when it is anticipated that the
interest income to be earned from the investment of the proceeds of the
transaction is greater than the interest expense of the transaction. Reverse
repurchase agreements involve leverage risk and also the risk that the
market value of the securities that the Funds are obligated to repurchase
under the agreement may decline below the repurchase price. In the event
the buyer of securities under a reverse repurchase agreement files for
bankruptcy or becomes insolvent, the Funds’ use of the proceeds of the
agreement may be restricted while the other party, or its trustee or receiver,
determines whether or not to enforce the Funds’ obligation to repurchase
the securities.

SEMI-ANNUAL REPORT

APRIL 30, 2010

49


Notes to Financial Statements (continued)

Defensive Positions: Each of PSW, PSY, BPP and BTZ may vary their invest-
ment 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
conditions, the Funds for temporary defensive purposes may invest up to
100% of its total assets in, as applicable and described in each Fund’s
prospectus, U.S. government securities, certificates of deposit, repurchase
agreements 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 Fund may invest in zero-coupon bonds, which are
normally issued at a significant discount from face value and do not pro-
vide 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 the Funds either deliver collateral or segregate assets in con-
nection with certain investments (e.g, financial futures contracts, foreign
currency exchange contracts and swaps), or certain borrowings (e.g.,
reverse repurchase agreements and loan payable) the Funds will, consis-
tent with SEC rules and/or certain interpretive letters issued by the SEC,
segregate collateral or 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, each party has requirements to deliver/deposit
securities as collateral for certain investments.

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

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

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

BGT has a wholly owned taxable subsidiary organized as a limited liability
company (the “Taxable Subsidiary”), which holds one of the investments
listed in the Schedule of Investments. The Taxable Subsidiary allows the
Fund to indirectly hold an investment that is organized as an operating
partnership while still satisfying RIC tax requirements. Income earned on
the investment held by the Taxable Subsidiary is taxable to such subsidiary.
The income tax expense, if any, of the Taxable Subsidiary is reflected in the
market value of the investment held by the Taxable Subsidiary.

Each Fund files US federal and various state and local tax returns. No
income tax returns are currently under examination. The statute of lim-
itations on PSW’s and PSY’s US federal tax returns remains open for the
four years ended October 31, 2009. The statute of limitations on BPP’s
and BGT’s US federal tax returns remains open for the two years ended
December 31, 2007, the period ended October 31, 2008 and year ended
October 31, 2009. The statute of limitations on BTZ’s US Federal tax
returns remains open for the two years ended October 31, 2009 and the
period ended October 31, 2007. The statutes of limitations on the Funds’
state and local tax returns may remain open for an additional year depend-
ing upon the jurisdiction. There are no uncertain tax positions that require
recognition of a tax liability.

Recent Accounting Standard: In January 2010, the Financial Accounting
Standards Board issued amended guidance to improve disclosure about
fair value measurements, which will require additional disclosures about
transfers into and out of Levels 1 and 2 and separate disclosures about
purchases, sales, issuances and settlements in the reconciliation for fair
value measurements using significant unobservable inputs (Level 3). It
also clarifies existing disclosure requirements relating to the levels of
disaggregation for fair value measurement and inputs and valuation tech-
niques used to measure fair value. The amended guidance is effective for
financial statements for fiscal years beginning after December 15, 2009,
and interim periods within those fiscal years, except for disclosures about
purchases, sales, issuances and settlements in the rollforward of activity
in Level 3 fair value measurements, which are effective for fiscal years
beginning after December 15, 2010 and for interim periods within those
fiscal years. The impact of this guidance on the Fund's financial statements
and disclosures 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 (“Independent Directors”) may defer
a portion of their annual complex-wide compensation. Deferred amounts
earn an approximate return as though equivalent dollar amounts had been
invested in common shares of other certain BlackRock Closed-End Funds
selected by the Independent Directors. This has approximately the same
economic effect for the Independent Directors as if the Independent
Directors had invested the deferred amounts directly in other certain
BlackRock Closed-End Funds.

50 SEMI-ANNUAL REPORT

APRIL 30, 2010


Notes to Financial Statements (continued)

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
in order to match its deferred compensation obligations. Investments to
cover each Fund’s deferred compensation liability, if any, are included in
other assets in the Statements of Assets and Liabilities. Dividends and dis-
tributions from the BlackRock Closed-End Fund investments under the plan
are included in income — affiliated in the Statements of Operations.

Other: Expenses directly related to a Fund are charged to the Fund. Other
operating expenses shared by several funds are pro rated among those
funds on the basis of relative net assets or other appropriate methods. The
Funds have an arrangement with the custodian whereby fees may be
reduced by credits earned on uninvested cash balances, which if applica-
ble are shown as fees paid indirectly in the Statements of Operations. The
custodian imposes fees on overdrawn cash balances, which can be offset
by accumulated credits earned or may result in additional custody charges.

2. Derivative Financial Instruments:

The Funds may engage in various portfolio investment strategies both to
increase the returns of the Funds and to economically hedge, or protect,
their exposure to certain risks such as credit risk, equity risk, interest rate
risk and foreign currency exchange rate risk. Losses may arise if the value
of the contract decreases due to an unfavorable change in the price of
the underlying instrument or if the counterparty does not perform under
the contract. The Funds may mitigate counterparty risk through master
netting agreements included within an International Swap and Derivatives
Association, Inc. (“ISDA”) Master Agreement between a Fund and sepa-
rately each of its counterparties. The ISDA Master Agreement allows each
Fund to offset with its counterparty certain derivative financial instrument’s
payables and/or receivables with collateral held with each separate coun-
terparty. The amount of collateral moved to/from applicable counterparties
is based upon minimum transfer amounts of up to $500,000. To the extent
amounts due to the Funds from their counterparties are not fully collateral-
ized, contractually or otherwise, the Funds bear the risk of loss from coun-
terparty non-performance. See Note 1 “Segregation and Collateralization”
for information with respect to collateral practices. In addition, the Fund
manages counterparty risk by entering into agreements only with counter-
parties that it believes have the financial resources to honor their obliga-
tions and by monitoring the financial stability of those counterparties.

The Fund’s maximum risk of loss from counterparty credit risk on OTC
derivatives is generally the aggregate unrealized gain in excess of any
collateral pledged by the counterparty to the Fund. For OTC options pur-
chased, the Fund bears the risk of loss in the amount of the premiums
paid and change in market value of the options should the counterparty
not perform under the contracts. Options written by the Fund do not give
rise to counterparty credit risk, as options written obligate the Fund to
perform and not the counterparty. Certain ISDA Master Agreements allow
counterparties to OTC derivatives to terminate derivative contracts prior to
maturity in the event the Fund’s net assets decline by a stated percentage
or the Fund fails to meet the terms of its ISDA Master Agreements, which
would cause the Fund to accelerate payment of any net liability owed to

the counterparty. Counterparty risk related to exchange-traded financial
futures contracts and options is minimal because of the protection
against defaults provided by the exchange on which they trade.

Financial Futures Contracts: The Funds may purchase or sell financial
futures contracts and options on financial futures contracts to gain
exposure to, or economically hedge against, changes in interest rates
(interest rate risk) or foreign currencies (foreign currency exchange rate
risk). Financial futures contracts are contracts for delayed delivery of secu-
rities or currencies at a specific future date and at a specific price or yield.
Pursuant to the contract, the Funds agree to receive from or pay to the
broker an amount of cash equal to the daily fluctuation in value of the
contract. Such receipts or payments are known as margin variation and
are recognized by the Funds as unrealized gains or losses. When the
contract is closed, the Funds record a realized gain or loss equal to the
difference between the value of the contract at the time it was opened
and the value at the time it was closed. The use of financial futures trans-
actions involves the risk of an imperfect correlation in the movements in
the price of financial futures contracts, interest or foreign currency
exchange rates and the underlying assets.

Foreign Currency Exchange Contracts: The Funds may enter into foreign
currency exchange contracts as an economic hedge against either specific
transactions or portfolio instruments or to gain exposure to foreign curren-
cies (foreign currency exchange rate risk). A foreign currency exchange con-
tract is an agreement between two parties to buy and sell a currency at a
set exchange rate on a future date. Foreign currency exchange contracts,
when used by the Funds, help to manage the overall exposure to the cur-
rency backing some of the investments held by the Funds. The contract is
marked-to-market daily and the change in market value is recorded by the
Funds as an unrealized gain or loss. When the contract is closed, the Funds
record a realized gain or loss equal to the difference between the value at
the time it was opened and the value at the time it was closed. The use of
foreign currency exchange contracts involves the risk that counterparties
may not meet the terms of the agreement or unfavorable movements in
the value of a foreign currency relative to the US dollar.

Options: The Funds may purchase and write call and put options to
increase or decrease its exposure to underlying instruments (equity risk)
and/or, in the case of options written, to generate gains from options pre-
miums. A call option gives the purchaser of the option the right (but not
the obligation) to buy, and obligates the seller to sell (when the option is
exercised), the underlying instrument 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 instrument at the
exercise price at any time or at a specified time during the option period.
When the Funds purchase (writes) an option, an amount equal to the pre-
mium paid (received) by the Funds is reflected as an asset (liability). The
amount of the asset (liability) is subsequently marked-to-market to reflect
the current market value of the option purchased (written).When an instru-
ment is purchased or sold through an exercise of an option, the related
premium paid (or received) is added to (or deducted from) the basis of the
instrument acquired or deducted from (or added to) the proceeds of the
instrument sold. When an option expires (or the Funds enter into a closing

SEMI-ANNUAL REPORT

APRIL 30, 2010

51


Notes to Financial Statements (continued)

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
Funds write a call option, such option is “covered,” meaning that the Funds
hold the underlying instrument subject to being called by the option coun-
terparty, or cash in an amount sufficient to cover the obligation. When the
Funds write a put option, such option is covered by cash in an amount suf-
ficient to cover the obligation.

In purchasing and writing options, the Fund bears the risk of an unfavor-
able change in the value of the underlying instrument or the risk that the
Fund may not be able to enter into a closing transaction due to an illiquid
market. Exercise of an option written could result in the Fund purchasing or
selling a security at a price different from the current market value. The
Fund may execute transactions in both listed and OTC options.

Swaps: The Funds may enter into swap agreements, in which the Funds
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 Statements of Operations as realized gains or losses,
respectively. Any upfront fees paid are recorded as assets and any upfront
fees received are recorded as liabilities and amortized over the term of
the swap. Swaps are marked-to-market daily and changes in value are
recorded as unrealized appreciation (depreciation). When the swap is ter-
minated, the Funds will record a realized gain or loss equal to the differ-
ence between the proceeds from (or cost of) the closing transaction and
the Funds’ basis in the contract, if any. Generally, the basis of the contracts
is the premium received or paid. Swap transactions involve, to varying
degrees, elements of interest rate, credit and market risk in excess of the
amounts recognized in the Statements of Assets and Liabilities. Such risks
involve the possibility that there will be no liquid market for these agree-
ments, that the counterparty to the agreements may default on its obliga-
tion to perform or disagree as to the meaning of the contractual terms in
the agreements, and that there may be unfavorable changes in interest
rates and/or market values associated with these transactions.

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

Derivatives Categorized by Risk Exposure:               
Fair Values of Derivative Instruments as of April 30, 2010

Asset Derivatives

  Statements of Assets             
  and Liabilities Location  PSW    PSY  BPP  BTZ  BGT 
Foreign currency exchange contracts  Unrealized appreciation on foreign             
  currency exchange contracts            $1,319,248 
Interest rate contracts*  Net unrealized appreciation/depreciation  $ 46,776  $ 71,280  $ 42,120  $ 634,102   
Equity contracts  Investments at value - unaffiliated            5,460 
Total    $ 46,776  $ 71,280  $ 42,120  $ 634,102  $1,324,708 
Liability Derivatives

  Statements of Assets             
  and Liabilities Location  PSW    PSY  BPP  BTZ  BGT 
Credit contracts  Unrealized depreciation on swaps  $ 175,918  $ 351,837  $ 175,919  $ 703,674  $ 173,967 

* Includes cumulative unrealized appreciation/depreciation of financial futures contracts as reported in the Schedules of Investments. Only the current day's margin variation is
reported within the Statements of Assets and Liabilities.

52 SEMI-ANNUAL REPORT

APRIL 30, 2010


Notes to Financial Statements (continued)               
The Effect of Derivative Instruments on the Statements of Operations               
The Effect of Derivative Instruments on the Statements of Operations
Six Months Ended April 30, 2010

Net Realized Gain (Loss) From

    PSW    PSY  BPP  BTZ    BGT 
Interest rate contracts:                 
   Financial futures contracts  $ 151,309  $ (14,840)  $ (8,662)  $ 1,179,920     
   Options*          (17,338)  (42,018)     
Foreign currency exchange contracts:                 
   Foreign currency transactions              $ 6,409,739 
Credit contracts:                 
   Swaps    (26,289)    (52,578)  (26,289)  (105,156)    (40,786) 
Equity contracts:                 
   Financial futures contracts            5,107,623     
   Options            (2,202,351)     
Total  $ 125,020  $ (67,418)  $ (52,289)  $ 3,938,018  $ 6,368,953 
Net Change in Unrealized Appreciation/Depreciation on

    PSW    PSY  BPP  BTZ    BGT 
Interest rate contracts:                 
   Financial futures contracts  $ (48,196)  $ 36,435  $ 22,607  $ (348,772)     
Foreign currency exchange contracts:                 
     Foreign currency transactions              $ 1,970,211 
Credit contracts:                 
   Swaps    (6,966)    (13,933)  (6,967)  (27,865)    275,079 
Equity contracts:                 
   Financial futures contracts            145,435     
   Options*            (661,829)    (650) 
Total  $ (55,162)  $ 22,502  $ 15,640  $ (893,031)  $ 2,244,640 
     * Includes options purchased which are shown in the net realized gain (loss) from investments and net change in unrealized appreciation/depreciation on investments.   
For the six months ended April 30, 2010, the average quarterly balance of outstanding derivative financial instruments was as follows:     
    PSW    PSY  BPP  BTZ    BGT 
Financial futures contracts:                 
   Average number of contracts purchased    48    23  13  824     
   Average notional value of contracts purchased  $ 9,719,872  $ 2,656,567  $ 1,534,270  $ 71,911,180     
Foreign currency exchange contracts:                 
   Average number of contracts — US dollars purchased                6 
   Average number of contracts — US dollars sold                1 
   Average US dollar amounts purchased              $91,788,735 
   Average US dollar amounts sold              $ 257,597 
Options:                 
   Average number of contracts purchased          43  103    26 
   Average number of contracts written            310     
   Average notional value of contracts purchased          $ 42,500  $ 103,000  $ 24,514 
   Average notional value of contracts written            $ 35,337,750     
Credit default swaps:                 
   Average number of contracts — buy protection    1    1  1  1     
   Average number of contracts — sell protection                1 
   Average notional value — buy protection  $ 1,000,000  $ 2,000,000  $ 1,000,000  $ 4,000,000     
   Average notional value — sell protection              $ 2,815,694 

3. Investment Advisory Agreement and Other Transactions
with Affiliates:

The PNC Financial Services Group, Inc. ("PNC"), Bank of America
Corporation ("BAC") and Barclays Bank PLC ("Barclays") are the largest
stockholders of BlackRock, Inc. ("BlackRock"). Due to the ownership struc-
ture, PNC is an affiliate of the Funds for 1940 Act purposes, but BAC and
Barclays are not.

Each Fund entered into an Investment Advisory Agreement with BlackRock
Advisors, LLC (the “Manager”), the Funds’ investment advisor, an indirect,
wholly owned subsidiary of BlackRock, to provide investment advisory and
administration services.

The Manager is responsible for the management of each Fund’s portfolio
and provides the necessary personnel, facilities, equipment and certain

other services necessary to the operations of each Fund. For such services,
each Fund pays the Manager a monthly fee at the following annual rates
of each Fund’s average daily (weekly for BPP, BTZ and BGT) net assets
(including any assets attributable to the proceeds from the issuance
of Preferred Shares) minus the sum of accrued liabilities (other than
borrowings representing financial leverage) as follows:

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

The Manager has voluntarily agreed to waive a portion of the investment
advisory fees or other expenses on BGT as a percentage of its average
weekly net assets as follows: 0.15% for the period September 1, 2009 to

SEMI-ANNUAL REPORT

APRIL 30, 2010

53


Notes to Financial Statements (continued)

August 31, 2010, 0.10% for the period September 1, 2010 to August 31,
2011 and 0.05% for the period September 1, 2011 to August 31,
2012. For the six months ended April 30, 2010, the Manager waived
$303,094, which is included in fees waived by advisor in the Statements
of Operations.

The Manager has voluntarily agreed to waive its advisory fees by the
amount of investment advisory fees each Fund pays to the Manager indi-
rectly through its investment in affiliated money market funds, which are
shown as fees waived by advisor in the Statements of Operations. For the
six months ended April 30, 2010, the amounts waived were as follows:

PSW  $14,257 
PSY  $48,676 
BPP  $22,496 
BTZ  $91,034 
BGT  $ 1,363 

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

For the six months ended April 30, 2010, the Funds reimbursed the
Manager for certain accounting services, which are included in accounting
services in the Statements of Operations. The reimbursements were
as follows:

  Accounting 
  Services 
PSW  $1,413 
PSY  $5,980 
BPP  $2,763 
BTZ  $8,925 
BGT  $3,834 

Certain officers and/or directors of the Funds are officers and/or directors
of BlackRock or its affiliates. The Funds reimburse the Manager for com-
pensation paid to the Funds’ Chief Compliance Officer.

4. Investments:

Purchases and sales of investments including paydowns, excluding short-
term securities and US government securities for the six months ended
April 30, 2010, were as follows:

  Purchases  Sales 
PSW  $ 87,203,044  $ 29,967,351 
PSY  $ 354,987,135  $ 175,962,970 
BPP  $ 161,179,639  $ 67,898,742 
BTZ  $ 486,228,429  $ 214,649,244 
BGT  $ 234,074,818  $ 218,100,549 

Purchases and sales of US government securities for the six months ended
April 30, 2010, were as follows:

  Purchases  Sales 
BTZ  $ 74,355,769   

Transactions in call options written for the six months ended April 30,
2010, were as follows:

                       BTZ   
      Premiums 
Call Options Written  Contracts    Received 
Outstanding options written, beginning of period  400  $ 828,039 
Options written  3,040    5,516,038 
Options closed  (2,654)    (4,834,709) 
Options expired  (786)    (1,509,368) 
Outstanding options written, end of period  - —  $ — 

5. Commitments:

BGT invests in floating rate loans. In connection with these investments, the
Fund may also enter into unfunded corporate loans (“commitments”).
Commitments may obligate the Fund to furnish temporary financing to a
borrower until permanent financing can be arranged. In connection with
these commitments, the Fund earns a commitment fee, typically set as a
percentage of the commitment amount. Such fee income, which is classi-
fied in the Statements of Operations as facility and other fees, is recog-
nized ratably over the commitment period. As of April 30, 2010, the Fund
had the following unfunded loan commitments:

    Value of 
  Unfunded  Underlying 
Borrower  Commitment  Loans 
Cloverhill  $517,857  $527,343 
Delphi  $368,293  $346,195 

6. Concentration, Market and Credit Risk:

PSW, PSY, BPP and BTZ invest a significant portion of its assets in securi-
ties in the financials sector and BGT invests a significant portion of its
assets in the consumer discretionary sector. Changes in economic condi-
tions affecting the financials and media sectors would have a greater
impact on the Funds and could affect the value, income and/or liquidity of
positions in such securities.

In the normal course of business, the Funds invest in securities and enter
into transactions where risks exist due to fluctuations in the market (market
risk) or failure of the issuer of a security to meet all its obligations (credit
risk). The value of securities held by the Funds may decline in response to
certain events, including those directly involving the issuers whose securi-
ties are owned by the Funds; conditions affecting the general economy;
overall market changes; local, regional or global political, social or eco-
nomic instability; and currency and interest rate and price fluctuations.
Similar to credit risk, the Funds may be exposed to counterparty risk, or
the risk that an entity with which the Funds have unsettled or open trans-
actions may default. The Funds manage counterparty risk by entering into
transactions only with counterparties that they believe have the financial
resources to honor their obligations and by monitoring the financial stability
of those counterparties. Financial assets, which potentially expose the
Funds to credit and counterparty risks, consist principally of investments
and cash due from counterparties. The extent of the Funds’ exposure to
credit and counterparty risks with respect to these financial assets is

54 SEMI-ANNUAL REPORT

APRIL 30, 2010


Notes to Financial Statements (continued)

generally approximated by their value recorded in the Funds’ Statements
of Assets and Liabilities, less any collateral held by the Funds.

7. Capital Share Transactions:

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

Common Shares

As of April 30, 2010, the shares owned by an affiliate of the Manager of
the Funds were as follows:

  Shares 
PSW  7,978 
PSY  8,299 
BTZ  4,817 
BGT  8,239 

Shares issued and outstanding during the six months ended April 30,
2010 and the year ended October 31, 2009 increased by the following
amounts as a result of dividend reinvestment:

  Six Months   
  Ended        Year Ended 
  April 30,     October 31, 
  2010       2009 
PSW  -  20,060 
PSY  -  200,878 
BPP  -  76,154 
BGT  19,562   

Shares issued and outstanding for the six months ended April 30, 2010
and the year ended October 31, 2009 remained constant for BTZ.

Preferred Shares

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

From time to time in the future, each Fund may effect repurchases of its
Preferred Shares at prices below their liquidation preference as agreed
upon by the Fund and seller. Each Fund also may redeem its Preferred
Shares from time to time as provided in the applicable Governing Instru-
ment. Each Fund intends to effect such redemptions and/or repurchases
to the extent necessary to maintain applicable asset coverage require-
ments 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, the hold-
ers of Preferred Shares, voting as a separate class, are also entitled to
elect two Directors for each Fund. In addition, the 1940 Act requires that
along with approval by shareholders that might otherwise be required, the
approval of the holders of a majority of any outstanding Preferred Shares,
voting separately as a class would be required to (a) adopt any plan of
reorganization that would adversely affect the Preferred Shares, (b) change
a Fund’s sub-classification as a closed-end investment company or change
its fundamental investment restrictions or (c) change its business so as to
cease to be an investment company.

The Funds had the following series of Preferred Shares outstanding,
effective yields and reset frequency as of April 30, 2010:

        Reset 
    Preferred  Effective  Frequency 
  Series  Shares   Yield  Days 
PSW  M7  805   1.51%  7 
  T7  805   1.51%  7 
PSY  M7  861   1.51%  7 
  T7  861   1.51%  7 
  W7  861   1.51%  7 
  TH7  861   1.51%  7 
  F7  861   1.51%  7 
  W28  1,228   1.51%  28 
  TH28  1,228   1.51%  28 
BPP  T7  939   0.36%  7 
  W7  939   0.36%  7 
  R7  939   0.36%  7 
BTZ  T7  2,310   1.51%  7 
  W7  2,310   1.51%  7 
  R7  2,310   1.52%  7 
  F7  2,310   1.52%  7 
BGT  T7  784   1.51%  7 
  W7  784   1.51%  7 
  R7  784   1.52%  7 

Dividends on seven-day and 28-day Preferred Shares are cumulative at
a rate which is reset every seven or 28 days, respectively, based on the
results of an auction. If the Preferred Shares fail to clear the auction on an
auction date, each Fund is required to pay the maximum applicable rate
on the Preferred Shares to holders of such shares for successive dividend
periods until such time as the shares are successfully auctioned. The maxi-
mum applicable rate on the Preferred Shares is as follows: for PSW, PSY
and BGT, the higher of 125% times or 1.25% plus the Telerate/BBA LIBOR
rate; or BPP 150% of the interest equivalent of the 30-day commercial
paper ate and for BTZ, the higher of 150% times or 1.25% plus the

SEMI-ANNUAL REPORT

APRIL 30, 2010

55


Notes to Financial Statements (continued)

Telerate/BBA IBOR rate. The low, high and average dividend rates for the six
months ended April 30, 2010, were as follows:

  Series  Low  High  Average 
PSW  M7  1.46%  1.51%  1.47% 
  T7  1.46%  1.51%  1.47% 
PSY  M7  1.46%  1.51%  1.47% 
  T7  1.46%  1.51%  1.47% 
  W7  1.46%  1.51%  1.47% 
  TH7  1.46%  1.52%  1.52% 
  F7  1.47%  1.52%  1.47% 
  W28  1.48%  1.50%  1.49% 
  TH28  1.48%  1.51%  1.49% 
BPP  T7  0.15%  0.35%  0.25% 
  W7  0.15%  0.38%  0.24% 
  R7  0.15%  0.35%  0.24% 
BTZ  T7  1.46%  1.51%  1.47% 
  W7  1.46%  1.51%  1.47% 
  R7  1.46%  1.52%  1.47% 
  F7  1.46%  1.52%  1.47% 
BGT  T7  1.46%  1.51%  1.47% 
  W7  1.46%  1.51%  1.47% 
  R7  1.46%  1.51%  1.47% 

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 1.46% to 1.52%
for the six months ended April 30, 2010. 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 auction rate preferred shares than buyers. It is impossible to predict
how long this imbalance will last. A successful auction for the Funds’
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 their liquidation preference.

The Funds may not declare dividends or make other distributions on
Common Shares or purchase any such shares if, at the time of the declara-
tion, distribution or purchase, asset coverage with respect to the outstand-
ing Preferred Shares is less than 200%.

During the year ended October 31, 2009 the Funds announced the follow-
ing 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:

March 26, 2009         
    Redemption  Shares  Aggregate 
  Series  Date  Redeemed  Principle 
PSY  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 
BPP  T7  4/15/09  267  $6,675,000 
  W7  4/16/09  267  $6,675,000 
  R7  4/17/09  267  $6,675,000 
February 24, 2009         
    Redemption  Shares  Aggregate 
  Series  Date  Redeemed  Principle 
PSY  M7  3/17/09  160  $4,000,000 
  T7  3/18/09  160  $4,000,000 
PSY  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 
November 25, 2008         
    Redemption  Shares  Aggregate 
  Series  Date  Redeemed  Principle 
PSY  M7  12/16/08  400  $10,000,000 
  T7  12/17/08  400  $10,000,000 
PSY  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 
BPP  T7  12/17/09  266  $6,650,000 
  W7  12/18/09  266  $6,650,000 
  R7  12/19/09  266  $6,650,000 

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

56 SEMI-ANNUAL REPORT

APRIL 30, 2010


Notes to Financial Statements (concluded)

8. Borrowings:

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

Advances are made by SSB to the Fund, at the Fund’s option of (a) the
higher of (i) 1.0% above the Fed Effective Rate and (ii) 1.0% above the
Overnight LIBOR or (b) 1.0% above 7-day, 30-day, 60-day or 90-day LIBOR.
In addition, the Fund pays a facility fee and a commitment fee based upon
SSB’s total commitment to the Fund. The fees associated with each of the
agreements are included in the Statements of Operations as borrowing
costs. Advances to the Fund as of April 30, 2010 are shown in the
Statements of Assets and Liabilities as loan payable. The SSB Agreement
was renewed for 364 days under substantially the same terms effective
March 4, 2010. The commitment amount was increased from $134 million
to $145 million. For the six months ended April 30, 2010, the daily
weighted average interest rate was 1.49%.

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

For the six months ended April 30, 2010, the daily weighted average inter-
est rates for Funds with reverse repurchase agreements were as follows:

PSW  0.47% 
PSY  0.48% 
BTZ  0.48% 

9. Capital Loss CarryForwards:

As of October 31, 2009, the Funds had capital loss carryforwards available
to offset future realized capital gains through the indicated expiration dates:

Expires October 31,  PSW  PSY  BPP 
2011  $ 1,276,621     
2012  10,243,141  $ 62,733,648   
2013  5,058,900  17,911,331   
2014  8,481,628  12,145,117   
2015  6,724,694  19,582,978  $ 18,184,893 
2016  40,232,230  140,413,242  58,197,929 
2017  55,825,534  194,970,854  108,996,120 
Total  $127,842,748  $447,757,170  $185,378,942 
Expires October 31,    BTZ  BGT 
2015    $ 49,741,712  $ 3,268,804 
2016    113,355,213  24,616,531 
2017    223,939,227  45,385,443 
Total    $387,036,152  $ 73,270,778 

10. Subsequent Events:

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

Each Fund paid a net investment income dividend on May 28, 2010 to
Common Shareholders of record on May 14, 2010 as follows:

  Common 
  Dividend 
  Per Share 
PSW  $0.0600 
PSY  $0.0750 
BPP  $0.0725 
BTZ  $0.1000 
BGT  $0.0675 

The dividends declared on Preferred Shares for the period May 1, 2010
to May 31, 2010 were as follows:

    Dividends 
  Series  Declared 
PSW  M7  $25,212 
  T7  $25,190 
PSY  M7  $26,966 
  T7  $26,942 
  W7  $26,940 
  TH7  $26,915 
  F7  $26,986 
  W28  $37,983 
  TH28  $38,122 
BPP  T7  $ 6,695 
  W7  $ 7,299 
  R7  $ 6,936 
BTZ  T7  $72,284 
  W7  $72,278 
  R7  $72,450 
  F7  $72,403 
BGT  T7  $24,585 
  W7  $24,582 
  R7  $24,561 

The Funds’ distribution rates declared on June 1, 2010 were as follows:

  Per Common 
  Share 
  Amount 
PSW  $0.0570 
PSY  $0.0635 
BPP  $0.0665 
BTZ  $0.0790 
BGT  $0.0700 

SEMI-ANNUAL REPORT

APRIL 30, 2010

57


Officers and Directors

Richard E. Cavanagh, Chairman of the Board and Director
Karen P. Robards, Vice Chair of the Board, Chair of the Audit Committee
and Director
Richard S. Davis, Director
Frank J. Fabozzi, Director and Member of the Audit Committee
Kathleen F. Feldstein, Director
James T. Flynn, Director and Member of the Audit Committee
Henry Gabbay, Director
Jerrold B. Harris, Director
R. Glenn Hubbard, Director
W. Carl Kester, Director and Member of the Audit Committee
Anne Ackerley, President and Chief Executive Officer
Brendan Kyne, Vice President
Neal Andrews, Chief Financial Officer
Jay Fife, Treasurer
Brian Kindelan, Chief Compliance Officer of the Funds
Howard Surloff, Secretary

Investment Advisor
BlackRock Advisors, LLC
Wilmington, DE 19809

Sub-Advisor
BlackRock Financial Management, Inc.
New York, NY 10022

Custodians
State Street Bank and Trust Company
Boston, MA 02111

Transfer Agent

Common Shares
Computershare Trust Company, N.A.
Canton, MA 02021

Auction Agent
Preferred Shares
BNY Mellon Shareowner Services
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

Effective January 1, 2010, Kent Dixon, a Director of the Funds, retired.

Effective March 31, 2010, G. Nicholas Beckwith, III, a Director of the Funds, resigned.

The Funds’ Board of Directors extends its best wishes to both Mr. Dixon and Mr. Beckwith.

58 SEMI-ANNUAL REPORT

APRIL 30, 2010


Additional Information

Dividend Policy

Each Fund’s dividend policy is to distribute all or a portion of its net invest-
ment income to its shareholders on a monthly basis. In order to provide
shareholders with a more stable level of dividend distributions, the Funds
may at times pay out less than the entire amount of net investment income
earned in any particular month and may at times in any particular month
pay out such accumulated but undistributed income in addition to net

investment income earned in that month. As a result, the dividends paid by
the Funds for any particular month may be more or less than the amount
of net investment income earned by the Funds during such month. The
Funds’ current accumulated but undistributed net investment income, if
any, is disclosed in the Statements of Assets and Liabilities, which com-
prises part of the financial information included in this report.

General Information

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

Risks

As a result of each Fund’s portfolio restructuring and revisions to certain of
its non-fundamental investment policies, your investment in a Fund will be
subject to the following additional risks following the transition:

Credit Risk — Credit risk is the risk that one or more debt securities in a
Fund’s portfolio will decline in price or fail to pay interest or principal when
due because the issuer of the security experiences a decline in its financial
status. If the recent adverse conditions in the credit markets adversely
affect the broader economy, the credit quality of issuers of credit securities
in which a Fund may invest would be more likely to decline, all other things
being equal. While a senior position in the capital structure of a borrower
may provide some protection with respect to a Fund’s investments in senior
secured floating rate and fixed rate loans or debt, losses may still occur. To
the extent a Fund invests in below investment grade securities, it will be
exposed to a greater amount of credit risk than a Fund which invests in
investment grade securities. The prices of lower grade securities are more
sensitive to negative developments, such as a decline in the issuer’s rev-
enues or a general economic downturn, than are the prices of higher grade
securities. Securities of below investment grade quality are predominantly
speculative with respect to the issuer’s capacity to pay interest and repay
principal when due and therefore involve a greater risk of default. In addi-
tion, each Fund’s use of credit derivatives will expose it to additional risk in
the event that the bonds underlying the derivatives default.

Interest Rate Risk — The value of certain debt securities in each Fund’s
portfolio could be affected by interest rate fluctuations. When interest rates
decline, the value of fixed rate securities can be expected to rise. Con-
versely, when interest rates rise, the value of fixed rate securities can be
expected to decline. Recent adverse conditions in the credit markets may
cause interest rates to rise. Although changes in prevailing interest rates
can be expected to cause some fluctuations in the value of floating rate
securities (due to the fact that rates only reset periodically), the values of

these securities are substantially less sensitive to changes in market inter-
est rates than fixed rate instruments. Fluctuations in the value of a Fund’s
securities will not affect interest income on existing securities, but will be
reflected in the Fund’s net asset value. Each Fund may utilize certain
strategies, including taking positions in futures or interest rate swaps, for
the purpose of reducing the interest rate sensitivity of the portfolio and
decreasing the Fund’s exposure to interest rate risk, although there is no
assurance that it will do so or that such strategies will be successful.

Prepayment Risk — During periods of declining interest rates, borrowers
may exercise their option to prepay principal earlier than scheduled. For
fixed rate securities, such payments often occur during periods of declin-
ing interest rates, forcing a Fund to reinvest in lower yielding securities,
resulting in a possible decline in the Fund’s income and distributions to
shareholders. This is known as prepayment or “call” risk. Below investment
grade securities frequently have call features that allow the issuer to redeem
the security at dates prior to its stated maturity at a specified price (typi-
cally greater than par) only if certain prescribed conditions are met (“call
protection”). An issuer may redeem a below investment grade security if,
for example, the issuer can refinance the debt at a lower cost due to declin-
ing interest rates or an improvement in the credit standing of the issuer.
Certain of each Fund’s investments will not have call protection. For pre-
mium bonds (bonds acquired at prices that exceed their par or principal
value) purchased by a Fund, prepayment risk may be enhanced.

Below Investment Grade Risk — Each Fund may invest a substantial portion
of its assets in fixed income securities that are rated below investment
grade, which are commonly referred to as “junk bonds” and are regarded
as predominately speculative with respect to the issuer’s capacity to pay
interest and repay principal.

Lower grade securities may be particularly susceptible to economic down-
turns. It is likely that a prolonging of the current economic recession or a
future economic recession could disrupt severely the market for such secu-
rities and may have an adverse impact on the value of such securities. In
addition, it is likely that any such continuing or future economic downturn
could adversely affect the ability of the issuers of such securities to repay
principal and pay interest thereon and increase the incidence of default for
such securities.

SEMI-ANNUAL REPORT

APRIL 30, 2010

59


Additional Information (continued)

General Information (continued)

Lower grade securities, though high yielding, are characterized by high risk.
They may be subject to certain risks with respect to the issuing entity and
to greater market fluctuations than certain lower yielding, higher rated
securities. The retail secondary market for lower grade securities may be
less liquid than that for higher rated securities. Adverse conditions could
make it difficult at times for a Fund to sell certain securities or could result
in lower prices than those used in calculating the Fund’s net asset value.
Because of the substantial risks associated with investments in lower grade
securities, you could lose money on your investment in common shares of
a Fund, both in the short-term and the long-term.

Bank Loan Risk — As in the case of junk bonds, bank loans may be rated
in lower grade rating categories, or may be unrated but of lower grade qual-
ity. As in the case of junk bonds, bank loans can provide higher yields than
higher grade income securities, but are subject to greater credit and other
risks. Although bank loan obligations often are secured by pledges of
assets by the borrower and have other structural aspects intended to pro-
vide greater protection to the holders of bank loans than the holders of
unsecured and subordinated securities, there are also additional risks in
holding bank loans. In particular, the secondary trading market for bank
loans is not well developed, and therefore, bank loans present increased
market risk relating to liquidity and pricing concerns. In addition, there is
no assurance that the liquidation of the collateral would satisfy the claims
of the borrower’s obligations in the event of the nonpayment of scheduled
interest or principal, or that the collateral could be readily liquidated. As
a result, a Fund might not receive payments to which it is entitled and
thereby may experience a decline in the value of its investment and its
net asset value.

Convertible Bonds Risk — Although to a lesser extent than with fixed-income
securities, the market value of convertible bonds tends to decline as inter-
est rates increase and, conversely, tends to increase as interest rates
decline. In addition, because of the conversion feature, the market value
of convertible bonds tends to vary with fluctuations in the market value of
the underlying common stock. A unique feature of convertible bonds is that
as the market price of the underlying common stock declines, convertible
bonds tend to trade increasingly on a yield basis, and so may not experi-
ence market value declines to the same extent as the underlying common
stock. When the market price of the underlying common stock increases,
the prices of the convertible bonds tend to rise as a reflection of the value
of the underlying common stock. While no securities investments are with-
out risk, investments in convertible bonds generally entail less risk than
investments in common stock of the same issuer.

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’ web-
sites or shareholders can sign up for e-mail notifications of quarterly state-
ments, annual and semi-annual reports by enrolling in the Funds’ electronic
delivery program.

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

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

Householding

The Funds will mail only one copy of shareholder documents, including
annual and semi-annual reports and proxy statements, to shareholders
with multiple accounts at the same address. This practice is commonly
called “householding” and 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 Portfolio Schedule of Investments

Each Fund files its complete schedule of portfolio holdings with the
Securities and Exchange Commission (“SEC”) for the first and third quar-
ters of each fiscal year on Form N-Q. Each Fund’s 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. Each Fund’s Forms N-Q may also be obtained upon
request and without charge by calling (800) 441-7762.

Availability of Proxy Voting Policies and Procedures

A description of the policies and procedures that the Funds use to deter-
mine how to vote proxies relating to portfolio securities is available (1) with-
out charge, upon request, by calling toll-free (800) 441-7762; (2) at
www.blackrock.com; and (3) on the SEC’s website at http://www.sec.gov.

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 is available upon request and without charge (1) at
www.blackrock.com or by calling (800) 441-7762 and (2) on the
SEC’s website at http://www.sec.gov.

60 SEMI-ANNUAL REPORT

APRIL 30, 2010


Additional Information (continued)

Section 19(a) Notices

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

October 31, 2009                 
    Total Cumulative Distributions    % Breakdown of the Total Cumulative 
             for the Fiscal Year      Distributions for the Fiscal Year   
  Net  Net Realized    Total Per  Net  Net Realized    Total Per 
  Investment  Capital  Return of  Common  Investment  Capital  Return of  Common 
  Income  Gains  Capital  Share  Income  Gains  Capital  Share 
PSW  $0.248092    $0.111908  $0.360000  69%  0%  31%  100% 
PSY  $0.313490    $0.136510  $0.450000  70%  0%  30%  100% 
BPP  $0.332369    $0.102631  $0.435000  76%  0%  24%  100% 
BTZ.  $0.327812    $0.272188  $0.600000  55%  0%  45%  100% 
BGT  $0.405000      $0.405000  100%  0%  0%  100% 

Each Fund estimates that it has distributed more than the amount of earned income and net realized gains; therefore, a portion of the distribution may be
a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment in a Fund is returned to the shareholder.
A return of capital does not necessarily reflect a Fund’s investment performance and should not be confused with ‘yield’ or ‘income.

SEMI-ANNUAL REPORT

APRIL 30, 2010

61


Additional Information (concluded)

BlackRock Privacy Principles

BlackRock is committed to maintaining the privacy of its current and former
fund investors and individual clients (collectively, “Clients”) and to safe-
guarding their non-public personal information. The following information is
provided to help you understand what personal information BlackRock col-
lects, 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 pro-
cedures relating to the proper storage and disposal of such information.

62 SEMI-ANNUAL REPORT

APRIL 30, 2010



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



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 – Not Applicable to
this semi-annual report

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


12(c) – Notices to the registrant’s common shareholders in accordance with 1940 Act Section 19(a)
and Rule 19a-11

1 The Fund has received exemptive relief from the Securities and Exchange Commission permitting it
to make periodic distributions of long-term capital gains with respect to its outstanding common
stock as frequently as twelve times each year, and as frequently as distributions are specified by or in
accordance with the terms of its outstanding preferred stock. This relief is conditioned, in part, on an
undertaking by the Fund to make the disclosures to the holders of the Fund’s common shares, in
addition to the information required by Section 19(a) of the 1940 Act and Rule 19a-1 thereunder. The
Fund is likewise obligated to file with the SEC the information contained in any such notice to
shareholders and, in that regard, has attached hereto copies of each such notice made during the
period.


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/ Anne F. Ackerley
Anne F. Ackerley
Chief Executive Officer of
BlackRock Credit Allocation Income Trust IV

Date: June 28, 2010

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/ Anne F. Ackerley
Anne F. Ackerley
Chief Executive Officer (principal executive officer) of
BlackRock Credit Allocation Income Trust IV

Date: June 28, 2010

By: /s/ Neal J. Andrews
Neal J. Andrews
Chief Financial Officer (principal financial officer) of
BlackRock Credit Allocation Income Trust IV

Date: June 28, 2010