BlackRock Strategic Bond Trust (XBHDX) N-CSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-10635

Name of Fund: BlackRock Strategic Bond Trust (BHD)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Strategic Bond Trust, 55 East 52^nd Street, New York, NY 10055

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

Date of fiscal year end: 08/31/2011

Date of reporting period: 02/28/2011

Item 1 – Report to Stockholders

February 28, 2011

Semi-Annual Report (Unaudited)

BlackRock Core Bond Trust (BHK)

BlackRock Corporate High Yield Fund V, Inc. (HYV)

BlackRock Corporate High Yield Fund VI, Inc. (HYT)

BlackRock High Income Shares (HIS)

BlackRock High Yield Trust (BHY)

BlackRock Income Opportunity Trust, Inc. (BNA)

BlackRock Income Trust, Inc. (BKT)

BlackRock Strategic Bond Trust (BHD)

Not FDIC Insured § No Bank Guarantee § May Lose Value

Table of Contents

	Page
Dear Shareholder	3
Semi-Annual Report:
Trust Summaries	4
The Benefits and Risks of Leveraging	20
Derivative Financial Instruments	20
Financial Statements:
Schedules of Investments	21
Statements of Assets and Liabilities	100
Statements of Operations	104
Statements of Changes in Net Assets	106
Statements of Cash Flows	108
Financial Highlights	110
Notes to Financial Statements	118
Officers and Trustees	131
Additional Information	132

2 SEMI-ANNUAL REPORT FEBRUARY 28, 2011

Dear Shareholder

Over the past 12 months, we have seen a sluggish, stimulus-driven economic recovery at long last gain real traction, accelerate, and transition into a consumption-driven expansion. For the most part, 2010 was plagued with widely fluctuating economic data, but as the year drew to a close, it became clear that cyclical stimulus had beaten out structural problems as economic data releases generally became more positive and financial markets showed signs of continuing improvement. Although the sovereign debt crises and emerging market inflation that troubled the global economy in 2010 remain a challenge, overall investor sentiment considerably improved. Near the end of the period, geopolitical tensions across the Middle East North Africa (“MENA”) region along with rising oil prices introduced new cause for concern about the future of the global economy. As of this writing, economic news remains fairly positive although we face additional uncertainties related to the aftermath of the devastating earthquake in Japan, with particular focus on the damage to nuclear power plants.

In the United States, strength from the corporate sector and increasing consumer spending have been key drivers of economic growth, while the housing and labor markets have been the heaviest burdens. While housing has yet to show any meaningful sign of improvement, labor statistics have delivered a mixed bag month after month, but became increasingly encouraging toward the end of the period when the unemployment rate fell to its lowest level since April 2009.

Global equity markets experienced uneven growth and high volatility over the course of 2010, but ended the year strong. Following a strong start to 2011, stocks lost their momentum on the back of geopolitical events in the MENA region and a sharp rise in oil prices. Overall, equities posted strong returns for the 12-month period. US stocks outpaced most international markets and small cap stocks outperformed large caps as investors moved into higher-risk assets.

Fixed income markets saw yields trend lower over most of 2010, until the fourth quarter brought an abrupt reversal in sentiment and risk tolerance that drove yields sharply upward (pushing bond prices down) through year end. Improving economic data continued to pressure fixed income yields in 2011; however, escalating geopolitical risks have acted as a counterweight, restoring relative stability to yield movements. Nevertheless, the yield curve remained steep and higher-risk sectors outperformed the fixed income market.

The tax-exempt municipal market enjoyed a powerful rally during the period of low interest rates in 2010; however, when the yield trend reversed, the market was dealt an additional blow as it became evident that the Build America Bond program would expire at year end. In addition, negative headlines regarding fiscal challenges faced by state and local governments damaged investor confidence and further heightened volatility in the municipal market. Tax-exempt mutual funds experienced heavy outflows, resulting in wider quality spreads and further downward pressure on municipal bond prices. These headwinds began to abate as the period came to a close and municipals finally posted gains in February, following a five-month run of negative performance.

Cash investments, as represented by the 3-month Treasury bill, returned only a fraction over 0% for the 12-month period as short-term interest rates remained low. Yields on money market securities remain near all-time lows.

Total returns as of February 28, 2011	6-month		12-month
US large cap equities (S&P 500 Index)	27.73	%	22.57	%
US small cap equities (Russell 2000 Index)	37.55		32.60
International equities (MSCI Europe, Australasia, Far East Index)	23.77		20.00
3-month Treasury bill (BofA Merrill Lynch 3-Month Treasury Bill Index)	0.07		0.14
US Treasury securities (BofA Merrill Lynch 10-Year US Treasury Index)	(6.04	)	4.76
US investment grade bonds (Barclays Capital US Aggregate Bond Index)	(0.83	)	4.93
Tax-exempt municipal bonds (Barclays Capital Municipal Bond Index)	(3.51	)	1.72
US high yield bonds (Barclays Capital US Corporate High Yield 2% Issuer Capped Index)	10.05		17.34

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

While no one can peer into a crystal ball and eliminate the uncertainties presented by the economic landscape and financial markets, BlackRock can offer investors the next best thing: partnership with the world’s largest asset management firm and a unique global perspective that allows us to identify trends early and capitalize on market opportunities. 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.

Sincerely,

Rob Kapito

President, BlackRock Advisors, LLC

THIS PAGE NOT PART OF YOUR FUND REPORT 3

Trust Summary as of February 28, 2011 BlackRock Core Bond Trust

Investment Objective

BlackRock Core Bond Trust’s (BHK) (the “Trust”) investment objective is to provide current income and capital appreciation. The Trust seeks to achieve its investment objective by investing at least 75% of its assets in bonds that are investment grade quality at the time of investment. The Trust’s investments will include a broad range of bonds, including corporate bonds, US government and agency securities and mortgage-related securities. The Trust may invest directly in such securities or synthetically through the use of derivatives.

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

Portfolio Management Commentary

	How did the Trust perform?
•	For the six months ended February 28, 2011, the Trust returned (8.46)% based on market price and (1.21)% based on net asset value (“NAV”). For the same period, the closed-end Lipper Corporate Debt Funds BBB-Rated category posted an average return of (0.83)% based on market price and 2.73% based on NAV. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.
	What factors influenced performance?
•	The largest individual factor impacting the Trust’s performance relative to its Lipper category competitors, many of which carry a lower average credit quality and/or a higher allocation to spread assets (those driven by movements in credit risk), is the Trust’s high-quality bias. This bias hurt performance for the period as spread sectors and lower-quality risk assets generally outperformed US Treasuries and government-related assets. In addition, the Trust carried a higher duration (sensitivity to interest rates) relative to its Lipper category average, which detracted from relative performance as interest rates rose significantly in the fourth quarter of 2010.
•	Contributing positively to performance on an absolute basis was the Trust’s exposure to non-government spread sectors, such as investment grade credit, non-agency residential mortgage-backed securities (“MBS”) and asset-backed securities (“ABS”). Also contributing positively were allocations to high yield corporate credit and commercial mortgage-backed securities (“CMBS”), which were among the best performing fixed income sectors during the period.
•	The Trust engaged in financial futures contracts and interest rate options (swaptions) for purposes of hedging and managing risks related to duration and yield curve positioning. As interest rates rose during the period, the Trust’s interest rate options (swaptions) had a positive impact on performance while financial futures contracts detracted.
	Describe recent portfolio activity.
•	During the period, the Trust gradually increased its use of leverage and added exposure to corporate credit and high-quality securitized debt, including CMBS and ABS. In addition, the Trust reduced its duration during the period.
	Describe portfolio positioning at period end.
•	At period end, the Trust maintained a diversified exposure to non-government spread sectors, including investment grade credit, high yield corporate credit, CMBS, ABS and non-agency residential MBS. The Trust also held allocations to government-related sectors such US Treasuries, agency debt and agency MBS.

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.

4 SEMI-ANNUAL REPORT FEBRUARY 28, 2011

BlackRock Core Bond Trust

Trust Information

Symbol on New York Stock Exchange (“NYSE”)	BHK
Initial Offering Date	November 27, 2001
Yield on Closing Market Price as of February 28, 2011 ($12.28)1	6.55%
Current Monthly Distribution per Common Share2	$0.067
Current Annualized Distribution per Common Share2	$0.804
Leverage as of February 28, 20113	29%

1	Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2	The distribution rate is not constant and is subject to change.
3	Represents reverse repurchase agreements outstanding as a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to borrowings) minus the sum of liabilities (other than borrowings representing financial leverage). For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 20.

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

	2/28/11		8/31/10		Change			High		Low
Market Price	$	12.28	$	13.92		(11.78	)%	$	13.99	$	12.00
Net Asset Value	$	13.51	$	14.19		(4.79	)%	$	14.30	$	13.19

The following charts show the portfolio composition of the Trust’s long-term investments and credit quality allocations of the Trust’s corporate bond and US Government securities:

Portfolio Composition

	2/28/11		8/31/10
Corporate Bonds	38	%	38	%
U.S. Government Sponsored Agency Securities	32		23
U.S. Treasury Obligations	14		19
Non-Agency Mortgage-Backed Securities	10		10
Asset-Backed Securities	3		5
Taxable Municipal Bonds	1		2
Foreign Agency Obligations	1		2
Preferred Securities	1		1

Credit Quality Allocations⁴

	2/28/11		8/31/10
AAA/Aaa5	51	%	43	%
AA/Aa	7		11
A	11		17
BBB/Baa	10		11
BB/Ba	7		8
B	10		7
CCC/Caa	3		2
Not Rated	1		1

4	Using the higher of Standard & Poor’s Corporation (“S&P’s”) or Moody’s Investors Service, Inc. (“Moody’s”) ratings.
5	Includes US Government Sponsored Agency Securities which are deemed AAA/Aaa by the investment advisor.

SEMI-ANNUAL REPORT FEBRUARY 28, 2011 5

Trust Summary as of February 28, 2011 BlackRock Corporate High Yield Fund V, Inc.

Investment Objective

BlackRock Corporate High Yield Fund V, Inc.’s (HYV) (the “Trust”) investment objective is to provide shareholders with current income by investing primarily in a diversified portfolio of fixed income securities that are rated in the lower rating categories of the established rating services (BB or lower by S&P or Ba or lower by Moody’s) or in unrated securities considered by the Trust’s investment adviser to be of comparable quality. The Trust also seeks to provide shareholders with capital appreciation. The Trust seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets in domestic and foreign high yield debt instruments, including high yield bonds (commonly referred to as “junk” bonds) and high yield corporate loans which are below investment grade quality. The Trust may invest directly in such securities or synthetically through the use of derivatives.

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

Portfolio Management Commentary

	How did the Trust perform?
•	For the six months ended February 28, 2011, the Trust returned 8.59% based on market price and 14.21% based on NAV. For the same period, the closed-end Lipper High Current Yield Funds (Leveraged) category posted an average return of 9.98% based on market price and 12.87% based on NAV. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.
	What factors influenced performance?
•	High yield bonds outperformed the broader fixed income market as risk assets rallied during the period. Lower-quality high yield bonds outperformed higher-quality issues. The bank loan sector also posted strong returns, but underperformed high yield. The largest contributor to the Trust’s performance was individual security selection, particularly among lower-quality credits and special situations in the automotive sector, including manufacturers of automobiles, auto parts and components. Within the Trust’s small allocation to common stocks, its holdings in Delphi boosted returns. The Trust’s limited exposure to high-quality, non-investment grade proved beneficial, as did its large allocation to lower-quality credits later in the period.
•	During the period, the Trust maintained leverage at an average amount between 20% and 22% of its total managed assets, which detracted from relative performance versus competitors that maintained higher levels of leverage, as would be expected when markets are advancing. During most of the period, the Trust held a significant position in mid-tier speculative grade names, which detracted modestly as they underperformed their lower-quality counterparts. Also having a negative impact was the Trust’s exposure to floating rate loan interests; however, the Trust continues to hold a number of loans issued by speculative companies where we believe the loans are the most attractive instrument in the company’s capital structure.
	Describe recent portfolio activity.
•	Over the period, the Trust shifted its overall positioning from a more conservative stance to that which is more consistent with a gradually improving economy. The Trust reduced its exposure to the automotive sector and increased exposure to lower-quality credits as well as sectors where companies are positioned to benefit from rising commodity prices.
	Describe portfolio positioning at period end.
•	At period end, the Trust held 80% of its total portfolio in corporate bonds, 12% in floating rate loan interests, 6% in common stocks and 2% in preferred stocks. Cash positions were negligible for most of the period. The Trust ended the period with leverage at approximately 24% of its total managed assets.

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

6 SEMI-ANNUAL REPORT FEBRUARY 28, 2011

BlackRock Corporate High Yield Fund V, Inc.

Trust Information

Symbol on NYSE	HYV
Initial Offering Date	November 30, 2001
Yield on Closing Market Price as of February 28, 2011 ($11.81)1	8.38%
Current Monthly Distribution per Common Share2	$0.0825
Current Annualized Distribution per Common Share2	$0.9900
Leverage as of February 28, 20113	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	A change in the distribution rate was declared on March 1, 2011. The Monthly Distribution per Share was increased to $0.085. The Yield on Closing Market Price, Current Monthly Distribution per Share and Current Annualized Distribution per Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to further change in the future.
3	Represents loan outstanding as a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to borrowings) minus the sum of liabilities (other than borrowings representing financial leverage). For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 20.

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

	2/28/11		8/31/10		Change			High		Low
Market Price	$	11.81	$	11.40		3.60	%	$	11.94	$	10.56
Net Asset Value	$	12.65	$	11.61		8.96	%	$	12.69	$	11.61

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

Portfolio Composition

	2/28/11		8/31/10
Corporate Bonds	80	%	80	%
Floating Rate Loan Interests	12		15
Common Stocks	4		2
Preferred Stocks	2		1
Other Interests	2		2

Credit Quality Allocations⁴

	2/28/11		8/31/10
BBB/Baa	4	%	3	%
BB/Ba	31		35
B	46		46
CCC/Caa	14		11
CC/Ca	—		1
Not Rated	5		4

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

SEMI-ANNUAL REPORT FEBRUARY 28, 2011 7

Trust Summary as of February 28, 2011	BlackRock Corporate High Yield Fund VI, Inc.
Investment Objective

BlackRock Corporate High Yield Fund VI, Inc.’s (HYT) (the “Trust”) primary investment objective is to provide shareholders with current income. The Trust’s secondary investment objective is to provide shareholders with capital appreciation. The Trust seeks to achieve its objectives by investing, under normal market conditions, at least 80% of its assets in domestic and foreign high yield securities, including high yield bonds (commonly referred to as “junk” bonds), corporate loans, convertible debt securities and preferred securities which are below investment grade quality. The Trust may invest directly in such securities or synthetically through the use of derivatives.

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

Portfolio Management Commentary

	How did the Trust perform?
•	For the six months ended February 28, 2011, the Trust returned 10.01% based on market price and 13.31% based on NAV. For the same period, the closed-end Lipper High Current Yield Funds (Leveraged) category posted an average return of 9.98% based on market price and 12.87% based on NAV. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.
	What factors influenced performance?
•	High yield bonds outperformed the broader fixed income market as risk assets rallied during the period. Lower-quality high yield bonds outperformed higher-quality issues. The bank loan sector also posted strong returns, but underperformed high yield. The largest contributor to the Trust’s performance was individual security selection, particularly among lower-quality credits and special situations in the automotive sector, including manufacturers of automobiles, auto parts and components. Within the Trust’s small allocation to common stocks, its holdings in Delphi boosted returns. The Trust’s limited exposure to high-quality, non-investment grade proved beneficial, as did its large allocation to lower-quality credits later in the period.
•	During the period, the Trust maintained leverage at an average amount between 18% and 20% of its total managed assets, which detracted from relative performance versus competitors that maintained higher levels of leverage, as would be expected when markets are advancing. During most of the period, the Trust held a significant position in mid-tier speculative grade names, which detracted modestly as they underperformed their lower-quality counterparts. Also having a negative impact was the Trust’s exposure to floating rate loan interests; however, the Trust continues to hold a number of loans issued by speculative companies where we believe the loans are the most attractive instrument in the company’s capital structure.
	Describe recent portfolio activity.
•	Over the period, the Trust shifted its overall positioning from a more conservative stance to that which is more consistent with a gradually improving economy. The Trust reduced its exposure to the automotive sector and increased exposure to lower-quality credits as well as sectors where companies are positioned to benefit from rising commodity prices.
	Describe portfolio positioning at period end.
•	At period end, the Trust held 81% of its total portfolio in corporate bonds, 12% in floating rate loan interests, 6% in common stocks and 1% in preferred stocks. Cash positions were negligible for most of the period. The Trust ended the period with leverage at approximately 23% of its total managed assets.
	The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

8 SEMI-ANNUAL REPORT FEBRUARY 28, 2011

BlackRock Corporate High Yield Fund VI, Inc.

Trust Information

Symbol on NYSE	HYT
Initial Offering Date	May 30, 2003
Yield on Closing Market Price as of February 28, 2011 ($11.79)1	8.40%
Current Monthly Distribution per Common Share2	$0.0825
Current Annualized Distribution per Common Share2	$0.9900
Leverage as of February 28, 20113	23%

1	Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2	The distribution rate is not constant and is subject to change.
3	Represents loan outstanding as a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to borrowings) minus the sum of liabilities (other than borrowings representing financial leverage). For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 20.

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

	2/28/11		8/31/10		Change			High		Low
Market Price	$	11.79	$	11.19		5.36	%	$	11.90	$	10.52
Net Asset Value	$	12.35	$	11.38		8.52	%	$	12.39	$	11.38

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

Portfolio Composition

	2/28/11		8/31/10
Corporate Bonds	81	%	81	%
Floating Rate Loan Interests	12		15
Common Stocks	4		2
Other Interests	2		1
Preferred Stocks	1		1

Credit Quality Allocations⁴

	2/28/11		8/31/10
BBB/Baa	4	%	3	%
BB/Ba	32		36
B	46		47
CCC/Caa	14		11
Not Rated	4		3

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

SEMI-ANNUAL REPORT FEBRUARY 28, 2011 9

Trust Summary as of February 28, 2011 BlackRock High Income Shares

Investment Objective

BlackRock High Income Shares’ (HIS) (the “Trust”) primary investment objective is to provide the highest current income attainable consistent with reasonable risk as determined by the Trust’s investment adviser, through investment in a professionally managed, diversified portfolio of high yield, high risk fixed income securities (commonly referred to as “junk bonds”). The Trust’s secondary objective is to provide capital appreciation, but only when consistent with its primary objective. The Trust seeks to achieve its objectives by investing primarily in high yield, high risk debt instruments rated in the medium to lower categories by nationally recognized rating services (BBB or lower by S&P or Baa or lower by Moody’s) or non-rated securities, which, in the investment adviser’s opinion, are of comparable quality. Under normal market conditions, the average maturity of the Trust’s portfolio is between eight and twelve years. The Trust may invest directly in such securities or synthetically through the use of derivatives.

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

Portfolio Management Commentary

	How did the Trust perform?
•	For the six months ended February 28, 2011, the Trust returned 9.43% based on market price and 12.65% based on NAV. For the same period, the closed-end Lipper High Current Yield Funds (Leveraged) category posted an average return of 9.98% based on market price and 12.87% based on NAV. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.
	What factors influenced performance?
•	High yield bonds outperformed the broader fixed income market as risk assets rallied during the period. Lower-quality high yield bonds outperformed higher-quality issues. The bank loan sector also posted strong returns, but underperformed high yield. Given the advancing market, the Trust’s use of leverage had a positive impact on returns on an absolute basis. However, the Trust maintains a lower level of leverage (at an average amount between 15% and 18% of its total managed assets) than the average level maintained by its Lipper category competitors, which detracted from performance on a relative basis.
•	During most of the period, the Trust held a significant position in mid-tier speculative grade names, which detracted modestly as they underperformed their lower-quality counterparts. Also having a negative impact was the Trust’s exposure to floating rate loan interests; however, the Trust continues to hold a number of loans issued by speculative companies where we believe the loans are the most attractive instrument in the company’s capital structure.
•	Contributing positively to performance was individual security selection, particularly among lower-quality credits and special situations in the automotive sector, including manufacturers of automobiles, auto parts and components. Within the Trust’s small allocation to common stocks, its holdings in Delphi boosted returns. The Trust’s limited exposure to high-quality, non-investment grade proved beneficial, as did its large allocation to lower-quality credits later in the period.
	Describe recent portfolio activity.
•	Over the period, the Trust shifted its overall positioning from a more conservative stance to that which is more consistent with a gradually improving economy. The Trust reduced its exposure to the automotive sector and increased exposure to lower-quality credits as well as sectors where companies are positioned to benefit from rising commodity prices.
	Describe portfolio positioning at period end.
•	At period end, the Trust held 86% of its total portfolio in corporate bonds, 12% in floating rate loan interests and 1% in both common stocks and preferred stocks. Cash positions were negligible for most of the period. The Trust ended the period with leverage at approximately 18% of its total managed assets.
	The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

10 SEMI-ANNUAL REPORT FEBRUARY 28, 2011

BlackRock High Income Shares

Trust Information

Symbol on NYSE	HIS
Initial Offering Date	August 10, 1988
Yield on Closing Market Price as of February 28, 2011 ($2.16)1	7.89%
Current Monthly Distribution per Common Share2	$0.0142
Current Annualized Distribution per Common Share2	$0.1704
Leverage as of February 28, 20113	18%

1	Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2	The distribution rate is not constant and is subject to change.
3	Represents loan outstanding as a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to borrowings) minus the sum of liabilities (other than borrowings representing financial leverage). For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 20.

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

	2/28/11		8/31/10		Change			High		Low
Market Price	$	2.16	$	2.09		3.35	%	$	2.22	$	1.93
Net Asset Value	$	2.33	$	2.19		6.39	%	$	2.34	$	2.19

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

Portfolio Composition

	2/28/11		8/31/10
Corporate Bonds	86	%	84	%
Floating Rate Loan Interests	12		13
Preferred Securities	1		2
Common Stocks	1		1

Credit Quality Allocations⁴

	2/28/11		8/31/10
A	1	%	—
BBB/Baa	4		3	%
BB/Ba	31		35
B	45		46
CCC/Caa	14		11
Not Rated	5		5

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

SEMI-ANNUAL REPORT FEBRUARY 28, 2011 11

Trust Summary as of February 28, 2011 BlackRock High Yield Trust

Investment Objective

BlackRock High Yield Trust’s (BHY) (the “Trust”) primary investment objective is to provide high current income. The Trust’s secondary investment objective is to provide capital appreciation. The Trust seeks to achieve its objectives by investing, under normal market conditions, at least 80% of its assets in high-risk, high yield bonds and other such securities, such as preferred stocks, which are rated below investment grade. The Trust may invest directly in such securities or synthetically through the use of derivatives.

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

Portfolio Management Commentary

	How did the Trust perform?
•	For the six months ended February 28, 2011, the Trust returned 9.00% based on market price and 12.85% based on NAV. For the same period, the closed-end Lipper High Current Yield Funds (Leveraged) category posted an average return of 9.98% based on market price and 12.87% based on NAV. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.
	What factors influenced performance?
•	High yield bonds outperformed the broader fixed income market as risk assets rallied during the period. Lower-quality high yield bonds outperformed higher-quality issues. The bank loan sector also posted strong returns, but underperformed high yield. Given the advancing market, the Trust’s use of leverage had a positive impact on returns on an absolute basis. However, the Trust maintains a lower level of leverage (at an average amount between 15% and 18% of its total managed assets) than the average level maintained by its Lipper category competitors, which detracted from performance on a relative basis.
•	During most of the period, the Trust held a significant position in mid-tier speculative grade names, which detracted modestly as they underperformed their lower-quality counterparts. Also having a negative impact was the Trust’s exposure to floating rate loan interests; however, the Trust continues to hold a number of loans issued by speculative companies where we believe the loans are the most attractive instrument in the company’s capital structure.
•	Contributing positively to performance was individual security selection, particularly among lower-quality credits and special situations in the automotive sector, including manufacturers of automobiles, auto parts and components. Within the Trust’s small allocation to common stocks, its holdings in Delphi boosted returns. The Trust’s limited exposure to high-quality, non-investment grade proved beneficial, as did its large allocation to lower-quality credits later in the period.
	Describe recent portfolio activity.
•	Over the period, the Trust shifted its overall positioning from a more conservative stance to that which is more consistent with a gradually improving economy. The Trust reduced its exposure to the automotive sector and increased exposure to lower-quality credits as well as sectors where companies are positioned to benefit from rising commodity prices.
	Describe portfolio positioning at period end.
•	At period end, the Trust held 85% of its total portfolio in corporate bonds, 12% in floating rate loan interests and 3% in stocks. Cash positions were negligible for most of the period. The Trust ended the period with leverage at approximately 18% of its total managed assets.
	The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

12 SEMI-ANNUAL REPORT FEBRUARY 28, 2011

BlackRock High Yield Trust

Trust Information

Symbol on NYSE	BHY
Initial Offering Date	December 23, 1998
Yield on Closing Market Price as of February 28, 2011 ($6.75)1	7.73%
Current Monthly Distribution per Common Share2	$0.0435
Current Annualized Distribution per Common Share2	$0.5220
Leverage as of February 28, 20113	18%

1	Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2	The distribution rate is not constant and is subject to change.
3	Represents loan outstanding as a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to borrowings) minus the sum of liabilities (other than borrowings representing financial leverage). For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 20.

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

	2/28/11		8/31/10		Change			High		Low
Market Price	$	6.75	$	6.44		4.81	%	$	6.77	$	5.94
Net Asset Value	$	7.26	$	6.69		8.52	%	$	7.28	$	6.69

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

Portfolio Composition

	2/28/11		8/31/10
Corporate Bonds	85	%	84	%
Floating Rate Loan Interests	12		13
Other Interests	2		1
Preferred Securities	1		1
Common Stocks	—		1

Credit Quality Allocations⁴

	2/28/11		8/31/10
BBB/Baa	4	%	3	%
BB/Ba	35		38
B	44		42
CCC/Caa	13		12
Not Rated	4		5

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

SEMI-ANNUAL REPORT FEBRUARY 28, 2011 13

Trust Summary as of February 28, 2011 BlackRock Income Opportunity Trust, Inc.

Investment Objective

BlackRock Income Opportunity Trust, Inc.’s (BNA) (the “Trust”) investment objective is to provide current income and capital appreciation. The Trust seeks to achieve its investment objective by investing at least 75% of its assets in bonds that are investment grade quality at the time of investment. The Trust’s investments will include a broad range of bonds, including corporate bonds, US government and agency securities and mortgage-related securities. The Trust may invest directly in such securities or synthetically through the use of derivatives.

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

Portfolio Management Commentary

	How did the Trust perform?
•	For the six months ended February 28, 2011, the Trust returned (6.69)% based on market price and (1.64)% based on NAV. For the same period, the closed-end Lipper Corporate Debt Funds BBB-Rated category posted an average return of (0.83)% based on market price and 2.73% based on NAV. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.
	What factors influenced performance?
•	The largest individual factor impacting performance relative to its Lipper category competitors, many of which carry a lower average credit quality and/or a higher allocation to spread assets (those driven by movements in credit risk), is the Trust’s high-quality bias. This bias hurt performance for the period as spread sectors and lower-quality risk assets generally outperformed US Treasuries and government-related assets. In addition, the Trust carried a higher duration (sensitivity to interest rates) relative to its Lipper category average, which detracted from relative performance as interest rates rose significantly in the fourth quarter of 2010.
•	Contributing positively to performance on an absolute basis was the Trust’s exposure to non-government spread sectors, such as investment grade credit, non-agency residential MBS and ABS. Also contributing positively were allocations to high yield corporate credit and CMBS, which were among the best performing fixed income sectors during the period.
•	The Trust engaged in financial futures contracts for purposes of hedging and managing risks related to duration and yield curve positioning. As interest rates rose during the period, the Trust’s financial futures contracts had a negative impact on performance.
	Describe recent portfolio activity.
•	During the period, the Trust gradually reduced its exposure to agency MBS, while it increased exposure to corporate credit and reduced the duration of its portfolio.
	Describe portfolio positioning at period end.
•	At period end, the Trust maintained a diversified exposure to non-government spread sectors, including investment grade credit, high yield corporate credit, CMBS, ABS and non-agency residential MBS. The Trust also held allocations to government-related sectors such US Treasuries, agency debt and agency MBS.
	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.

14 SEMI-ANNUAL REPORT FEBRUARY 28, 2011

BlackRock Income Opportunity Trust, Inc.

Trust Information

Symbol on NYSE	BNA
Initial Offering Date	December 20, 1991
Yield on Closing Market Price as of February 28, 2011 ($9.52)1	6.43%
Current Monthly Distribution per Common Share2	$0.051
Current Annualized Distribution per Common Share2	$0.612
Leverage as of February 28, 20113	30%

1	Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2	The distribution rate is not constant and is subject to change.
3	Represents reverse repurchase agreements outstanding as a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to borrowings) minus the sum of liabilities (other than borrowings representing financial leverage). For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 20.

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

	2/28/11		8/31/10		Change			High		Low
Market Price	$	9.52	$	10.56		(9.85	)%	$	10.59	$	9.30
Net Asset Value	$	10.52	$	11.07		(4.97	)%	$	11.13	$	10.28

The following charts show the portfolio composition of the Trust’s long-term investments and credit quality allocations of the Trust’s corporate bond and US Government securities:

Portfolio Composition

	2/28/11			8/31/10
Corporate Bonds		39	%		38	%
U.S. Government Sponsored Agency Securities		32			23
U.S. Treasury Obligations		13			18
Non-Agency Mortgage-Backed Securities		11			12
Asset-Backed Securities		3			4
Taxable Municipal Bonds		2			2
Foreign Agency Obligations		—			2
Preferred Securities		—			1

Credit Quality Allocations⁴

	2/28/11			8/31/10
AAA/Aaa5		50	%		41	%
AA/Aa		6			11
A		12			20
BBB/Baa		11			12
BB/Ba		7			9
B		10			6
CCC/Caa		4			1

4	Using the higher of S&P’s or Moody’s ratings.
5	Includes US Government Sponsored Agency Securities which are deemed AAA/Aaa by the investment advisor.

SEMI-ANNUAL REPORT FEBRUARY 28, 2011 15

Trust Summary as of February 28, 2011 BlackRock Income Trust, Inc.

Investment Objective

BlackRock Income Trust, Inc.’s (BKT) (the “Trust”) investment objective is to manage a portfolio of high-quality securities to achieve both preservation of capital and high monthly income. The Trust seeks to achieve its investment objective by investing at least 65% of its assets in mortgage-backed securities. The Trust invests at least 80% of its assets in securities that are (i) issued or guaranteed by the US government or one of its agencies or instrumentalities or (ii) rated at the time of investment either AAA by S&P or Aaa by Moody’s. Securities issued or guaranteed by the US government or its agencies or instrumentalities are generally considered to be of the same or higher credit or quality as privately issued securities rated AAA or Aaa. The Trust may invest directly in such securities or synthetically through the use of derivatives.

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

Portfolio Management Commentary

	How did the Trust perform?
•	For the six months ended February 28, 2011, the Trust returned 0.01% based on market price and 2.22% based on NAV. For the same period, the closed-end Lipper US Mortgage Funds category posted an average return of 1.37% based on market price and 6.30% based on NAV. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.
	What factors influenced performance?
•	The largest individual factor impacting performance relative to its Lipper category competitors, many of which carry a lower average credit quality and/or a higher allocation to CMBS and non-agency residential MBS, is the Trust’s high-quality bias. This bias hurt performance for the period as CMBS and non-agency residential MBS generally outperformed agency MBS.
•	Contributing positively to performance on an absolute basis was the Trust’s exposure to CMBS and non-agency residential MBS. Security selection among agency MBS had a positive impact on performance, most notably with respect to positioning in agency interest-only (“IO”) mortgages.
•	The Trust engaged in financial futures contracts and interest rate swaps for purposes of hedging and managing risks related to duration and yield curve positioning. As interest rates rose during the period, the Trust’s financial futures contracts and interest rate swaps had a positive impact on performance.
	Describe recent portfolio activity.
•	During the period, the Trust gradually reduced exposure to CMBS and altered its agency IO mortgage exposure by moving from higher-coupon mortgages to lower-coupon mortgages.
	Describe portfolio positioning at period end.
•	At period end, the Trust maintained its exposure to high-quality agency MBS with varying maturities and coupons and held allocations to non-agency residential MBS and CMBS.

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.

16 SEMI-ANNUAL REPORT FEBRUARY 28, 2011

BlackRock Income Trust, Inc.

Trust Information

Symbol on NYSE	BKT
Initial Offering Date	July 22, 1988
Yield on Closing Market Price as of February 28, 2011 ($6.80)1	4.68%
Current Monthly Distribution per Common Share2	$0.0265
Current Annualized Distribution per Common Share2	$0.3180
Leverage as of February 28, 20113	16%

1	Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2	The distribution rate is not constant and is subject to change.
3	Represents reverse repurchase agreements and the Term Asset-Backed Securities Loan Facility (“TALF”) outstanding as a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to borrowings) minus the sum of liabilities (other than borrowings representing financial leverage). For a discussion of leveraging techniques utilized by the Trust, please see the Benefits and Risks of Leveraging on page 20.

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

	2/28/11		8/31/10		Change			High		Low
Market Price	$	6.80	$	6.95		(2.16	)%	$	7.06	$	6.63
Net Asset Value	$	7.76	$	7.76		—	%	$	7.84	$	7.64

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

Portfolio Composition

	2/28/11			8/31/10
U.S. Government Sponsored Agency Securities		86	%		83	%
U.S. Treasury Obligations		9			11
Non-Agency Mortgage Backed Securities		4			5
Asset-Backed Securities		1			1

Credit Quality Allocations⁴

	2/28/11			8/31/10
AAA/Aaa5		100	%		100	%

4	Using the higher of S&P’s or Moody’s ratings.
5	Includes US Government Sponsored Agency Securities which are deemed AAA/Aaa by the investment advisor.

SEMI-ANNUAL REPORT FEBRUARY 28, 2011 17

Trust Summary as of February 28, 2011	BlackRock Strategic Bond Trust
Investment Objective

BlackRock Strategic Bond Trust’s (BHD) (the “Trust”) investment objective is to provide total return through high current income and capital appreciation. The Trust seeks to achieve its investment objective by investing primarily in a diversified portfolio of fixed income securities including corporate bonds, US government and agency securities, mortgage-related and asset-backed securities and other types of fixed income securities. The Trust invests, under normal market conditions, a significant portion of its assets in corporate fixed income securities that are below investment grade quality, including high-risk, high yield bonds (commonly referred to as “junk” bonds) and other such securities, such as preferred stocks. The Trust may invest directly in such securities or synthetically through the use of derivatives.

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

Portfolio Management Commentary

	How did the Trust perform?
•	For the six months ended February 28, 2011, the Trust returned 3.55% based on market price and 9.30% based on NAV. For the same period, the closed-end Lipper High Current Yield Funds (Leveraged) category posted an average return of 9.98% based on market price and 12.87% based on NAV. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.
	What factors influenced performance?
•	High yield bonds delivered strong performance as risk assets rallied during the period. The Trust’s average allocation to high yield contributed to performance on an absolute basis, its average allocation to investment grade credit, which underperformed amid rising interest rates, hurt performance relative to its Lipper category competitors, which invest primarily in high yield bonds. The Trust also invests in floating rate loan interests (approximately 14% of the portfolio during the period), which detracted from relative performance as the bank loan sector underperformed high yield during the period.
•	The Trust maintained leverage at an average amount between 18% and 22% of its total managed assets, which detracted from relative performance versus competitors that maintained higher levels of leverage, as would be expected when markets are advancing.
•	Within the Trust’s high yield segment, a large allocation to lower-quality credits benefited performance, as did security selection in that space.
	Describe recent portfolio activity.
•	Over the period, the Trust shifted its overall positioning from a more conservative stance to that which is more consistent with a gradually improving economy. In particular, the Trust increased exposure to lower-quality credits and sectors that are more sensitive to commodity prices and economic conditions.
	Describe portfolio positioning at period end.
•	At period end, the Trust held 83% of its total portfolio in corporate bonds and 12% in floating rate loan interests, with the remainder in US Treasury obligations and stocks. Cash positions were negligible for most of the period. The Trust ended the period with leverage at approximately 22% of its total managed assets.

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

18 SEMI-ANNUAL REPORT FEBRUARY 28, 2011

BlackRock Strategic Bond Trust

Trust Information

Symbol on NYSE	BHD
Initial Offering Date	February 26, 2002
Yield on Closing Market Price as of February 28, 2011 ($13.02)1	7.33%
Current Monthly Distribution per Common Share2	$0.0795
Current Annualized Distribution per Common Share2	$0.9540
Leverage as of February 28, 20113	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	A change in the distribution rate was declared on March 1, 2011. The Monthly Distribution per Share was increased to $0.0845. The Yield on Closing Market Price, Current Monthly Distribution per Share and Current Annualized Distribution per Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to further change in the future.
3	Represents loan outstanding as a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to borrowings) minus the sum of liabilities (other than borrowings representing financial leverage). For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 20.

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

	2/28/11		8/31/10		Change			High		Low
Market Price	$	13.02	$	13.17		(1.14	)%	$	13.53	$	12.22
Net Asset Value	$	14.16	$	13.57		4.35	%	$	14.23	$	13.57

The following charts show the portfolio composition of the Trust’s long-term investments and credit quality allocations of the Trust’s corporate bond securities:

Portfolio Composition

	2/28/11			8/31/10
Corporate Bonds		83	%		85	%
Floating Rate Loan Interests		12			11
U.S. Treasury Obligations		2			—
Other Interests		2			1
Preferred Securities		1			2
Common Stocks		—			1

Credit Quality Allocations⁴

	2/28/11			8/31/10
AA/Aa		3	%		3	%
A		13			14
BBB/Baa		14			13
BB/Ba		25			28
B		35			33
CCC/Caa		8			8
Not Rated		2			1

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

SEMI-ANNUAL REPORT FEBRUARY 28, 2011 19

The Benefits and Risks of Leveraging

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

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

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

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

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

Furthermore, the value of the Trusts’ 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 Trusts’ borrowings does not fluctuate in relation to interest rates. As a result, changes in interest rates can influence the Trusts’ NAV positively or negatively in addition to the impact on Trust performance from leverage and borrowings discussed above.

The use of leverage may enhance opportunities for increased income to the Trusts and shareholders, but as described above, it also creates risks as short or long-term interest rates fluctuate. Leverage also will generally cause greater changes in the Trusts’ NAVs, market prices and dividend rates than comparable portfolios without leverage. If the income derived from securities purchased with assets received from leverage exceeds the cost of leverage, each Trust’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 Trust’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 Trust may be required to sell portfolio securities at inopportune times or at distressed values in order to comply with regulatory requirements applicable to the use of leverage or as required by the terms of leverage instruments, which may cause a Trust to incur losses. The use of leverage may limit each Trust’s ability to invest in certain types of securities or use certain types of hedging strategies. Each Trust will incur expenses in connection with the use of leverage, all of which are borne by shareholders and may reduce income.

Under the Investment Company Act of 1940, the Trusts are permitted to borrow through their credit facility, through participation in the TALF or entering into reverse repurchase agreements up to 33¹/₃% of their total managed assets. As of February 28, 2011, the Trusts had outstanding leverage from borrowings as a percentage of their total managed assets as follows:

	Percent of Leverage
BHK	29%
HYV	24%
HYT	23%
HIS	18%
BHY	18%
BNA	30%
BKT	16%
BHD	22%

Derivative Financial Instruments

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

20 SEMI-ANNUAL REPORT FEBRUARY 28, 2011

Schedule of Investments February 28, 2011 (Unaudited) BlackRock Core Bond Trust (BHK)
(Percentages shown are based on Net Assets)

Asset-Backed Securities	Par  (000)		Value
321 Henderson Receivables I LLC (a):
Series 2010-1A, Class B, 9.31%, 7/15/61	USD	1,150	$	1,218,578
Series 2010-3A, Class A, 3.82%, 12/15/48		876		848,511
Capital One Multi-Asset Execution Trust, Series 2006-A5, Class A5, 0.33%, 1/15/16 (b)		350		347,911
Countrywide Asset-Backed Certificates, Series 2006-13, Class 3AV2, 0.41%, 1/25/37 (b)		1,323		945,960
Credit Acceptance Auto Loan Trust, Series 2010-1, Class B, 3.63%, 10/15/18 (a)		1,980		1,978,918
Globaldrive BV, Series 2008-2, Class A, 4.00%, 10/20/16	EUR	500		696,859
Home Equity Asset Trust, Series 2007-2, Class 2A1, 0.37%, 7/25/37 (b)	USD	239		232,483
Maryland Insurance Backed Securities Trust, Series 2006-1A, Class A, 5.55%, 12/10/65		2,500		1,675,000
Nelnet Student Loan Trust, Series 2008-3, Class A4, 4.61%, 11/25/24 (b)		650		674,808
SLM Student Loan Trust (b):
Series 2006-A, Class A4, 0.42%, 1/15/19		460		447,017
Series 2008-5, Class A3, 1.60%, 1/25/18		1,140		1,171,618
Series 2008-5, Class A4, 2.00%, 7/25/23		3,620		3,785,960
Santander Consumer Acquired Receivables Trust, Series 2011-WO, Class C, 3.19%, 10/15/15 (a)		580		578,956
Santander Drive Auto Receivables Trust:
Series 2010-2, Class B, 2.24%, 12/15/14		860		862,511
Series 2010-2, Class C, 3.89%, 7/17/17		1,010		1,040,100
Series 2010-B, Class B, 2.10%, 9/15/14 (a)		700		701,209
Series 2010-B, Class C, 3.02%, 10/17/16 (a)		740		740,709
Series 2011-S1A, Class B, 1.48%, 5/15/17 (a)		597		596,574
Series 2011-S1A, Class D, 3.10%, 5/15/17 (a)		610		610,000
Small Business Administration, Class 1:
Series 2003-P10B, 5.14%, 8/10/13		368		388,871
Series 2004-P10B, 4.75%, 8/10/14		239		252,915
				19,795,468
Interest Only Asset-Backed Securities — 0.2%
Sterling Bank Trust, Series 2004-2, Class Note, 2.08%, 3/30/30 (a)		4,494		289,381
Sterling Coofs Trust, Series 1, 2.36%, 4/15/29 (a)		7,069		516,906
				806,287
Total Asset-Backed Securities — 5.6%				20,601,755

Common Stocks	Shares
Software — 0.0%
Bankruptcy Management Solutions, Inc. (c)		135	474
Total Common Stocks — 0.0%			474

Corporate Bonds	Par  (000)		Value
Aerospace & Defense — 0.9%
Northrop-Grumman Corp., 7.88%, 3/01/26	USD	960	$	1,256,664
United Technologies Corp.:
4.88%, 5/01/15		1,125		1,241,176
6.13%, 7/15/38		700		783,555
				3,281,395
Airlines — 0.4%
American Airlines, Inc., Series 2001-2, 7.86%, 4/01/13		380		392,350
Continental Airlines, Inc., Series 2010-1-B, 6.00%, 7/12/20		700		698,250
United Air Lines, Inc., 12.75%, 7/15/12		334		373,141
				1,463,741
Auto Components — 0.1%
BorgWarner Inc., 4.63%, 9/15/20		265		266,315
Beverages — 1.1%
Anheuser-Busch InBev Worldwide, Inc., 7.75%, 1/15/19 (a)(d)		2,950		3,657,227
Crown European Holdings SA, 7.13%, 8/15/18 (a)	EUR	355		521,725
				4,178,952
Building Products — 0.1%
Momentive Performance Materials, Inc., 11.50%, 12/01/16	USD	235		254,975
Capital Markets — 4.1%
American Capital Ltd., 7.96%, 12/31/13		720		737,330
CDP Financial, Inc. (a)(d):
3.00%, 11/25/14		1,935		1,970,987
5.60%, 11/25/39		2,935		3,041,787
Credit Suisse, 5.50%, 5/01/14		575		632,216
The Goldman Sachs Group, Inc.:
3.70%, 8/01/15		800		811,063
5.38%, 3/15/20		1,725		1,772,298
6.00%, 6/15/20		870		932,803
6.25%, 2/01/41		345		351,093
Morgan Stanley:
2.81%, 5/14/13 (b)(d)		1,890		1,955,713
4.20%, 11/20/14		490		508,739
4.00%, 7/24/15		410		419,778
6.25%, 8/28/17		875		955,726
5.63%, 9/23/19		630		647,171
Nomura Holdings Inc., 4.13%, 1/19/16		389		387,269
				15,123,973
Chemicals — 0.5%
American Pacific Corp., 9.00%, 2/01/15		250		245,625
The Dow Chemical Co., 4.25%, 11/15/20		185		178,283
Hexion U.S. Finance Corp., 8.88%, 2/01/18		595		638,881
Huntsman International LLC, 6.88%, 11/15/13 (a)	EUR	435		613,784
				1,676,573

Portfolio Abbreviations

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

CAD	Canadian Dollar
EUR	Euro
EURIBOR	Euro Interbank Offered Rate
FHLMC	Federal Home Loan Mortgage Corp.
FKA	Formerly Known As
FNMA	Federal National Mortgage Association
GBP	British Pound

GNMA	Government National Mortgage Association
GO	General Obligation Bonds
INR	Indian Rupee
JPY	Japanese Yen
LIBOR	London InterBank Offered Rate
RB	Revenue Bonds
USD	US Dollar

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	21

Schedule of Investments (continued) BlackRock Core Bond Trust (BHK)
(Percentages shown are based on Net Assets)

Corporate Bonds	Par  (000)		Value
Commercial Banks — 7.8%
BNP Paribas Home Loan Covered Bonds SA, 2.20%, 11/02/15 (a)	USD	3,130	$	3,001,110
Bank of Nova Scotia, 1.65%, 10/29/15 (a)		4,795		4,604,791
CIT Group, Inc.:
7.00%, 5/01/16		110		110,963
7.00%, 5/01/17		1,680		1,692,600
Canadian Imperial Bank of Commerce, 2.75%, 1/27/16 (a)		1,490		1,488,891
DEPFA ACS Bank, 5.13%, 3/16/37 (a)		3,775		2,475,822
Discover Bank, 8.70%, 11/18/19		1,045		1,257,230
DnB NOR Boligkreditt, 2.10%, 10/14/15 (a)		4,020		3,859,288
Eksportfinans ASA:
2.00%, 9/15/15 (d)		2,455		2,393,821
5.50%, 6/26/17		950		1,063,828
HSBC Bank USA NA, 5.88%, 11/01/34 (d)		775		769,860
HSBC Holdings Plc, 6.50%, 5/02/36		300		310,513
Royal Bank of Canada, 3.13%, 4/14/15 (a)		3,870		3,967,598
Sparebanken 1 Boligkreditt, 1.25%, 10/25/13 (a)		1,580		1,565,162
				28,561,477
Commercial Services & Supplies — 0.3%
AWAS Aviation Capital Ltd., 7.00%, 10/15/16 (a)		250		256,875
Mobile Mini, Inc., 7.88%, 12/01/20 (a)		320		340,800
RR Donnelley & Sons Co., 7.63%, 6/15/20		169		177,153
West Corp., 7.88%, 1/15/19 (a)		200		205,250
				980,078
Construction Materials — 0.5%
Inversiones CMPC SA, 4.75%, 1/19/18 (a)		220		211,666
Nortek, Inc., 10.00%, 12/01/18 (a)		1,450		1,547,875
				1,759,541
Consumer Finance — 0.5%
Ford Motor Credit Co. LLC:
3.05%, 1/13/12 (b)		125		126,274
7.80%, 6/01/12		340		362,591
SLM Corp.:
6.25%, 1/25/16		661		677,525
Series A, 0.59%, 1/27/14 (b)		550		519,227
				1,685,617
Containers & Packaging — 1.3%
Ardagh Packaging Finance Plc, 7.38%, 10/15/17 (a)	EUR	425		605,539
Ball Corp.:
7.38%, 9/01/19	USD	270		293,625
6.75%, 9/15/20		675		707,063
Berry Plastics Corp., 9.75%, 1/15/21 (a)		975		977,438
Pregis Corp., 12.38%, 10/15/13		260		261,950
Smurfit Kappa Acquisitions (a):
7.25%, 11/15/17	EUR	725		1,060,491
7.75%, 11/15/19		685		1,011,434
				4,917,540
Diversified Financial Services — 6.2%
Ally Financial, Inc.:
8.30%, 2/12/15	USD	1,920		2,167,200
6.25%, 12/01/17 (a)		240		250,500
8.00%, 3/15/20		560		630,700
8.00%, 11/01/31		320		366,400
Bank of America Corp.:
7.63%, 6/01/19		450		526,129
5.63%, 7/01/20		1,070		1,113,020
Citigroup, Inc., 4.75%, 5/19/15		375		395,823

Corporate Bonds	Par  (000)		Value
Diversified Financial Services (concluded)
General Electric Capital Corp.:
5.30%, 2/11/21	USD	370	$	380,110
6.15%, 8/07/37 (d)(e)		4,150		4,287,797
5.88%, 1/14/38 (d)		177		177,581
6.88%, 1/10/39 (d)		135		152,878
JPMorgan Chase & Co.:
3.70%, 1/20/15 (d)		3,425		3,543,741
2.60%, 1/15/16		690		668,739
6.00%, 1/15/18		125		139,034
6.30%, 4/23/19 (d)		2,000		2,248,738
4.25%, 10/15/20		190		183,193
Novus USA Trust, 1.56%, 11/18/11 (a)(b)		860		859,679
Reynolds Group DL Escrow, Inc., 7.75%, 10/15/16 (a)		890		947,850
Reynolds Group Issuer, Inc. (a):
7.75%, 10/15/16	EUR	550		804,511
7.13%, 4/15/19	USD	2,111		2,163,775
9.00%, 4/15/19		600		625,500
				22,632,898
Diversified Telecommunication Services — 5.1%
AT&T Inc.:
6.45%, 6/15/34		780		820,613
6.55%, 2/15/39 (d)(e)		3,375		3,596,305
BellSouth Telecommunications, Inc., 8.30%, 12/15/95 (f)		1,700		1,184,599
GCI, Inc., 8.63%, 11/15/19		1,700		1,870,000
Level 3 Financing, Inc., 8.75%, 2/15/17		340		334,050
Qwest Communications International, Inc.:
7.50%, 2/15/14		60		60,900
Series B, 7.50%, 2/15/14		30		30,450
Qwest Corp., 8.38%, 5/01/16		180		214,875
Telecom Italia Capital SA:
4.95%, 9/30/14 (d)		1,075		1,104,561
6.00%, 9/30/34		1,550		1,372,201
Telefonica Emisiones SAU, 7.05%, 6/20/36		1,975		2,125,535
Verizon Communications, Inc.:
8.75%, 11/01/18		1,220		1,574,381
6.40%, 2/15/38 (d)		2,125		2,273,419
8.95%, 3/01/39		900		1,254,778
Verizon Global Funding Corp., 7.75%, 12/01/30		70		85,914
Verizon New Jersey, Inc.:
5.88%, 1/17/12		335		349,792
7.85%, 11/15/29		230		264,657
Windstream Corp.:
8.13%, 8/01/13		60		66,075
8.63%, 8/01/16		90		95,175
7.88%, 11/01/17		60		65,175
				18,743,455
Electric Utilities — 4.2%
Alabama Power Co., 6.00%, 3/01/39 (d)		1,275		1,388,687
Duke Energy Carolinas LLC:
6.10%, 6/01/37		315		341,058
6.00%, 1/15/38		825		894,700
EDF SA, 5.60%, 1/27/40 (a)(d)		1,400		1,446,916
E.ON International Finance BV, 6.65%, 4/30/38 (a)		1,525		1,812,020
Elwood Energy LLC, 8.16%, 7/05/26		92		91,191
Florida Power & Light Co., 4.95%, 6/01/35		950		922,505
Florida Power Corp.:
6.35%, 9/15/37 (d)		1,325		1,491,237
6.40%, 6/15/38		430		488,961
PacifiCorp., 6.25%, 10/15/37		575		639,186
Public Service Co. of Colorado, 6.25%, 9/01/37 (d)		1,200		1,366,902

See Notes to Financial Statements.
22	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011

Schedule of Investments (continued)	BlackRock Core Bond Trust (BHK)
	(Percentages shown are based on Net Assets)

Corporate Bonds	Par  (000)		Value
Electric Utilities (concluded)
Southern California Edison Co.:
5.63%, 2/01/36	USD	625	$	652,879
Series 05-E, 5.35%, 7/15/35		125		125,841
Series 08-A, 5.95%, 2/01/38		1,075		1,174,517
The Toledo Edison Co., 6.15%, 5/15/37		350		361,561
Virginia Electric and Power Co., Series A, 6.00%, 5/15/37 (d)		2,000		2,161,112
				15,359,273
Energy Equipment & Services — 0.6%
Calfrac Holdings LP, 7.50%, 12/01/20 (a)		340		348,500
Exterran Holdings, Inc., 7.25%, 12/01/18 (a)		605		620,125
Frac Tech Services LLC, 7.13%, 11/15/18 (a)		875		905,625
Precision Drilling Corp., 6.63%, 11/15/20 (a)		160		165,200
Thermon Industries, Inc., 9.50%, 5/01/17		180		194,850
				2,234,300
Food & Staples Retailing — 0.9%
Wal-Mart Stores, Inc. (d):
6.50%, 8/15/37		1,900		2,192,410
6.20%, 4/15/38		850		946,173
				3,138,583
Food Products — 0.6%
Darling International, Inc., 8.50%, 12/15/18 (a)		335		361,381
Kraft Foods, Inc., 7.00%, 8/11/37		1,455		1,652,952
				2,014,333
Health Care Equipment & Supplies — 0.3%
DJO Finance LLC, 10.88%, 11/15/14		860		942,775
Health Care Providers & Services — 1.0%
ConvaTec Healthcare E SA (a):
7.38%, 12/15/17	EUR	600		861,089
10.50%, 12/15/18	USD	630		672,525
Tenet Healthcare Corp.:
9.00%, 5/01/15		410		451,000
10.00%, 5/01/18		170		199,750
8.88%, 7/01/19		1,150		1,308,125
				3,492,489
Hotels, Restaurants & Leisure — 1.9%
Boyd Gaming Corp., 9.13%, 12/01/18 (a)		835		876,750
Caesars Entertainment Operating Co., Inc., 10.00%, 12/15/18		4,960		4,662,400
Cirsa Funding Luxembourg SA, 8.75%, 5/15/18	EUR	69		99,025
CityCenter Holdings LLC, 7.63%, 1/15/16 (a)	USD	440		458,700
McDonald’s Corp., 5.70%, 2/01/39		825		887,904
				6,984,779
Household Durables — 1.6%
Beazer Homes USA, Inc.:
8.13%, 6/15/16		255		259,144
12.00%, 10/15/17		1,050		1,220,625
Standard Pacific Corp.:
10.75%, 9/15/16		2,100		2,467,500
8.38%, 5/15/18 (a)		655		694,300
8.38%, 1/15/21 (a)		1,065		1,123,575
				5,765,144
Household Products — 0.3%
Kimberly-Clark Corp., 6.63%, 8/01/37		850		1,022,845

Corporate Bonds	Par  (000)		Value
IT Services — 1.3%
First Data Corp. (a):
8.25%, 1/15/21	USD	674	$	670,630
12.63%, 1/15/21		520		544,700
iPayment, Inc., 9.75%, 5/15/14		240		237,900
iPayment Investors LP, 12.75%, 7/15/14 (a)(g)		863		803,013
SunGard Data Systems, Inc. (a):
7.38%, 11/15/18		660		681,450
7.63%, 11/15/20		1,730		1,786,225
				4,723,918
Independent Power Producers & Energy Traders — 1.9%
Calpine Construction Finance Co. LP, 8.00%, 6/01/16 (a)		1,000		1,085,000
Energy Future Holdings Corp., 10.00%, 1/15/20 (a)		1,520		1,582,855
Energy Future Intermediate Holding Co. LLC, 10.00%, 12/01/20		347		362,217
NRG Energy, Inc., 7.63%, 1/15/18 (a)		3,610		3,758,912
				6,788,984
Industrial Conglomerates — 0.8%
Sequa Corp. (a):
11.75%, 12/01/15		690		748,650
13.50%, 12/01/15 (g)		1,940		2,148,984
				2,897,634
Insurance — 2.2%
CNO Financial Group, Inc., 9.00%, 1/15/18 (a)		384		408,960
Chubb Corp., 6.00%, 5/11/37		1,100		1,180,541
Hartford Life Global Funding Trusts, 0.48%, 6/16/14 (b)		425		413,269
Manulife Financial Corp., 3.40%, 9/17/15		780		772,868
Metropolitan Life Global Funding I (a)(d):
2.50%, 1/11/13		2,545		2,593,210
5.13%, 6/10/14		775		841,489
Prudential Financial, Inc.:
5.70%, 12/14/36		675		672,223
Series D, 5.90%, 3/17/36		500		508,541
Teachers Insurance & Annuity Association of America, 6.85%, 12/16/39 (a)		505		581,081
				7,972,182
Life Sciences Tools & Services — 0.0%
Life Technologies Corp., 5.00%, 1/15/21		145		146,784
Machinery — 1.0%
AGY Holding Corp., 11.00%, 11/15/14		310		275,900
Navistar International Corp.:
3.00%, 10/15/14 (h)		1,040		1,453,400
8.25%, 11/01/21		880		974,600
Titan International, Inc., 5.63%, 1/15/17 (a)(h)		340		885,700
				3,589,600
Marine — 0.9%
Horizon Lines, Inc., 4.25%, 8/15/12 (h)		2,355		2,184,263
Nakilat, Inc., Series A, 6.07%, 12/31/33 (a)(d)		1,050		1,055,250
				3,239,513
Media — 8.4%
Affinion Group, Inc., 7.88%, 12/15/18 (a)		625		598,438
CBS Corp., 8.88%, 5/15/19		510		643,120
CCH II LLC, 13.50%, 11/30/16		2,300		2,786,330
CMP Susquehanna Corp., 3.44%, 5/15/14 (a)		52		36,656
Cengage Learning Acquisitions, Inc., 10.50%, 1/15/15 (a)		1,095		1,136,062
Citadel Broadcasting Corp., 7.75%, 12/15/18 (a)		350		375,375

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	23

Schedule of Investments (continued)	BlackRock Core Bond Trust (BHK)
	(Percentages shown are based on Net Assets)

Corporate Bonds	Par  (000)		Value
Media (concluded)
Clear Channel Worldwide Holdings, Inc., Series B, 9.25%, 12/15/17	USD	1,127	$	1,253,787
Comcast Cable Communications Holdings, Inc., 9.46%, 11/15/22		600		818,149
Comcast Corp.:
6.45%, 3/15/37		790		826,880
6.40%, 3/01/40		390		405,819
Cox Enterprises, Inc:
Loan Close 2, 4.00%, 8/15/18		1,059		1,058,750
Loan Close 3, 12.00%, 8/15/18		1,092		1,091,944
Shares Loan, 4.00%, 8/15/18		926		926,058
Discovery Communications LLC, 3.70%, 6/01/15		480		497,355
Gray Television, Inc., 10.50%, 6/29/15		485		515,313
Interactive Data Corp., 10.25%, 8/01/18 (a)		1,480		1,657,600
NBC Universal, Inc. (a):
5.15%, 4/30/20		968		997,873
4.38%, 4/01/21		795		765,150
The New York Times Co., 6.63%, 12/15/16 (a)		1,800		1,840,500
News America Holdings, Inc.:
7.70%, 10/30/25		825		982,841
8.45%, 8/01/34		625		757,894
News America, Inc.:
4.50%, 2/15/21 (a)		625		621,179
7.63%, 11/30/28		385		443,378
6.15%, 2/15/41 (a)		750		762,343
Rainbow National Services LLC (a):
8.75%, 9/01/12		200		200,750
10.38%, 9/01/14		943		981,899
TCI Communications, Inc., 7.88%, 2/15/26		610		741,576
Time Warner Cable, Inc.:
7.30%, 7/01/38		930		1,047,756
5.88%, 11/15/40		465		441,535
Time Warner, Inc.:
4.70%, 1/15/21		350		351,794
6.10%, 7/15/40		215		217,041
UPC Germany GmbH, 8.13%, 12/01/17 (a)		2,600		2,788,500
Virgin Media Secured Finance Plc, 6.50%, 1/15/18		525		574,875
Ziggo Finance BV, 6.13%, 11/15/17 (a)	EUR	1,135		1,601,484
				30,746,004
Metals & Mining — 2.7%
Cliffs Natural Resources, Inc., 4.80%, 10/01/20	USD	240		237,630
Corporacion Nacional del Cobre de Chile, 3.75%, 11/04/20 (a)		259		243,763
Drummond Co., Inc.:
9.00%, 10/15/14 (a)		805		859,338
7.38%, 2/15/16		375		388,125
Falconbridge Ltd., 6.20%, 6/15/35		1,250		1,273,561
Goldcorp, Inc., 2.00%, 8/01/14 (h)		645		811,894
New World Resources NV, 7.88%, 5/01/18	EUR	215		318,941
Newmont Mining Corp., Series A, 1.25%, 7/15/14 (h)	USD	615		820,256
Novelis, Inc., 8.75%, 12/15/20 (a)(d)		4,380		4,828,950
				9,782,458
Oil, Gas & Consumable Fuels — 6.6%
Arch Coal, Inc., 7.25%, 10/01/20		1,225		1,301,562
BP Capital Markets Plc, 3.13%, 3/10/12		1,270		1,298,656
Bill Barrett Corp., 9.88%, 7/15/16		75		84,000
Burlington Resources Finance Co., 7.40%, 12/01/31		875		1,037,802
Canadian Natural Resources, Ltd.:
6.50%, 2/15/37		410		454,739
6.25%, 3/15/38		375		405,435
6.75%, 2/01/39		1,025		1,174,411
Cenovus Energy, Inc., 6.75%, 11/15/39		895		1,018,578
Chesapeake Energy Corp., 6.63%, 8/15/20		1,185		1,244,250

Corporate Bonds	Par  (000)		Value
Oil, Gas & Consumable Fuels (concluded)
ConocoPhillips Canada Funding Co., 5.95%, 10/15/36	USD	535	$	570,894
Crosstex Energy LP, 8.88%, 2/15/18		130		143,325
Devon Energy Corp., 7.95%, 4/15/32		625		812,944
EnCana Corp.:
6.50%, 8/15/34		670		720,681
6.63%, 8/15/37		700		772,526
Energy XXI Gulf Coast, Inc., 9.25%, 12/15/17 (a)		580		623,500
Enterprise Products Operating LLC:
6.13%, 2/01/13		695		748,350
6.13%, 10/15/39		700		701,354
Marathon Petroleum Corp., 6.50%, 3/01/41 (a)		434		439,682
MidAmerican Energy Co., 5.80%, 10/15/36		700		728,622
MidAmerican Energy Holdings Co.:
5.95%, 5/15/37		800		829,182
6.50%, 9/15/37		1,900		2,112,181
Niska Gas Storage US LLC, 8.88%, 3/15/18 (a)		1,000		1,090,000
Peabody Energy Corp., 6.50%, 9/15/20		620		663,400
Petrobras International Finance Co.:
3.88%, 1/27/16		1,785		1,802,343
5.88%, 3/01/18		75		79,816
5.75%, 1/20/20		1,725		1,789,943
Rockies Express Pipeline LLC, 3.90%, 4/15/15 (a)		680		676,399
Valero Energy Corp., 6.63%, 6/15/37		641		655,030
				23,979,605
Paper & Forest Products — 1.1%
Boise Paper Holdings LLC:
9.00%, 11/01/17		490		546,350
8.00%, 4/01/20		210		231,525
Clearwater Paper Corp., 10.63%, 6/15/16		620		708,350
International Paper Co., 7.30%, 11/15/39		750		879,151
NewPage Corp., 11.38%, 12/31/14		900		897,750
Verso Paper Holdings LLC, 11.50%, 7/01/14		745		821,362
				4,084,488
Pharmaceuticals — 1.6%
Grifols, Inc., 8.25%, 2/01/18 (a)		175		179,812
Merck & Co., Inc., 6.55%, 9/15/37 (d)		1,125		1,331,296
Roche Holdings, Inc., 7.00%, 3/01/39 (a)(d)		850		1,050,912
Teva Pharmaceutical Finance LLC, 6.15%, 2/01/36		1,445		1,592,389
Wyeth (d):
6.00%, 2/15/36		675		738,964
5.95%, 4/01/37		925		999,772
				5,893,145
Real Estate Investment Trusts (REITs) — 0.1%
Kimco Realty Corp., 6.88%, 10/01/19		430		501,873
Road & Rail — 0.9%
Avis Budget Car Rental LLC, 9.63%, 3/15/18		715		799,012
Burlington Northern Santa Fe LLC, 5.75%, 5/01/40		950		989,889
Canadian National Railway Co., 6.25%, 8/01/34		350		398,372
Florida East Coast Railway Corp., 8.13%, 2/01/17 (a)		490		512,050
The Hertz Corp., 7.38%, 1/15/21 (a)		670		700,150
				3,399,473
Semiconductors & Semiconductor
Equipment — 0.1%
Spansion LLC, 7.88%, 11/15/17 (a)		390		397,800
Software — 0.2%
Oracle Corp., 5.38%, 7/15/40 (a)		895		872,369

See Notes to Financial Statements.
24	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011

Schedule of Investments (continued)	BlackRock Core Bond Trust (BHK)
	(Percentages shown are based on Net Assets)

Corporate Bonds	Par  (000)		Value
Thrifts & Mortgage Finance — 1.6%
Achmea Hypotheekbank NV, 3.20%, 11/03/14 (a)(d)	USD	1,305	$	1,348,186
MGIC Investment Corp., 5.38%, 11/01/15		840		791,700
The PMI Group, Inc., 6.00%, 9/15/16		1,400		1,115,235
Radian Group, Inc.:
5.63%, 2/15/13		1,400		1,400,000
5.38%, 6/15/15		1,400		1,270,500
				5,925,621
Tobacco — 0.2%
Philip Morris International, Inc., 4.50%, 3/26/20		640		660,671
Wireless Telecommunication Services — 3.0%
Clearwire Communications LLC (a):
12.00%, 12/01/15		190		207,100
12.00%, 12/01/17		160		172,800
Cricket Communications, Inc., 10.00%, 7/15/15		35		38,588
Crown Castle Towers LLC, 6.11%, 1/15/40 (a)		1,420		1,542,170
Digicel Group Ltd. (a):
9.13%, 1/15/15 (g)		560		583,240
8.25%, 9/01/17		150		156,750
Intelsat Jackson Holdings SA, 7.25%, 10/15/20 (a)		1,050		1,078,875
MetroPCS Wireless, Inc.:
7.88%, 9/01/18		850		897,812
6.63%, 11/15/20		850		827,687
Rogers Communications, Inc., 7.50%, 8/15/38		1,150		1,426,112
SBA Tower Trust, 4.25%, 4/15/40 (a)		950		992,928
Sprint Capital Corp., 6.88%, 11/15/28		745		671,431
Syniverse Holdings, Inc., 9.13%, 1/15/19 (a)		350		378,000
Vodafone Group Plc, 4.15%, 6/10/14 (d)		2,050		2,171,122
				11,144,615
Total Corporate Bonds — 74.9%				273,227,788
Foreign Agency Obligations
Hellenic Republic Government Bond, 4.60%, 9/20/40	EUR	160		122,363
Israel Government AID Bond:
5.50%, 4/26/24	USD	825		928,541
5.50%, 9/18/33		845		932,093
Italy Government International Bond, 5.38%, 6/15/33		455		451,167
Japan Finance Corp., 2.00%, 6/24/11		860		864,548
Japan Finance Organization for Municipal Enterprises, 4.00%, 1/13/21		500		494,995
Kreditanstalt fuer Wiederaufbau, 1.38%, 7/15/13 (d)		660		664,720
Mexico Government International Bond, 5.63%, 1/15/17		370		407,925
United Mexican States, Series A, 5.13%, 1/15/20		215		225,213
Total Foreign Agency Obligations — 1.4%				5,091,565
Non-Agency Mortgage-Backed Securities
Collateralized Mortgage Obligations — 7.3%
Adjustable Rate Mortgage Trust, Series 2005-7, Class 4A1, 5.40%, 10/25/35 (b)		1,017		948,981
Banc of America Funding Corp., Series 2007-2, Class 1A2, 6.00%, 3/25/37		1,100		766,422
Bear Stearns Adjustable Rate Mortgage Trust, Series 2004-8, Class 14A1, 5.39%, 11/25/34 (b)		487		462,605
CS First Boston Mortgage Securities Corp., Series 2005-12, Class 6A1, 6.00%, 1/25/36		980		734,672

Non-Agency Mortgage-Backed Securities	Par  (000)		Value
Collateralized Mortgage Obligations (concluded)
Chase Mortgage Finance Corp., Series 2005-A1, Class 1A1, 5.40%, 12/25/35 (b)	USD	974	$	939,756
Countrywide Alternative Loan Trust:
Series 2005-64CB, Class 1A15, 5.50%, 12/25/35		1,583		1,417,855
Series 2006-0A19, Class A1, 0.44%, 2/20/47 (b)		465		243,000
Series 2006-0A21, Class A1, 0.45%, 3/20/47 (b)		865		517,994
Series 2006-41CB, Class 1A4, 5.75%, 1/25/37		800		618,562
Series 2007-HY4, Class 4A1, 5.54%, 6/25/47 (b)		984		712,299
Countrywide Home Loan Mortgage Pass-Through Trust:
Series 2006-0A5, Class 2A1, 0.46%, 4/25/46 (b)		359		222,275
Series 2007-10, Class A22, 6.00%, 7/25/37		771		646,481
Credit Suisse Mortgage Capital Certificates:
Series 2007-1, Class 5A14, 6.00%, 2/25/37		598		518,929
Series 2011-2R, Class 2A1, 5.25%, 7/25/36		1,730		1,569,283
Series 2011-2R, Class 2A1, 4.58%, 7/27/36 (a)(b)		1,700		1,542,070
Series 2011-4R, Class 1A1, 5.69%, 5/27/36 (a)(b)		900		801,562
Series 2011-4R, Class 1A1, 5.16%, 8/25/47		1,800		1,603,125
Series 2011-4R, Class 2A1, 5.17%, 5/27/36 (a)(b)		1,165		1,060,150
Deutsche ALT-A Securities, Inc., Alternate Loan Trust, Series 2006-0A1, Class A1, 0.46%, 2/25/47 (b)		283		186,587
GMAC Mortgage Corp. Loan Trust, Series 2005-AR3, Class 5A1, 5.14%, 6/19/35 (b)		1,571		1,554,435
GSR Mortgage Loan Trust:
Series 2005-AR4, Class 6A1, 5.25%, 7/25/35 (b)		399		388,958
Series 2006-4F, Class 1A1, 5.00%, 5/25/36		824		706,005
Series 2006-AR1, Class 2A1, 2.81%, 1/25/36 (b)		732		630,129
Series 2007-4F, Class 3A1, 6.00%, 7/25/37		920		883,367
Homebanc Mortgage Trust, Series 2006-2, Class A1, 0.44%, 12/25/36 (b)		723		563,042
IndyMac IMJA Mortgage Loan Trust, Series 2007-A1, Class A4, 6.00%, 8/25/37		1,100		964,887
JPMorgan Mortgage Trust:
Series 2006-S3, Class 1A12, 6.50%, 8/25/36		677		664,324
Series 2007-S1, Class 2A22, 5.75%, 3/25/37		651		560,013
Merrill Lynch Mortgage Investors, Inc., Series 2006-A3, Class 3A1, 3.78%, 5/25/36 (b)		750		572,897
Residential Funding Mortgage Securities I, Series 2007-S6, Class 1A16, 6.00%, 6/25/37		524		462,693
Structured Asset Securities Corp., Series 2002-AL1, Class A2, 3.45%, 2/25/32		1,592		1,508,967
Wells Fargo Mortgage-Backed Securities Trust:
Series 2006, Class 1A29, 6.00%, 8/25/36		593		591,712
Series 2006-3, Class A9, 5.50%, 3/25/36		460		466,513
Series 2007-8, Class 2A9, 6.00%, 7/25/37		524		505,154
Series 2007-10, Class 1A21, 6.00%, 7/25/37		223		221,576
				26,757,280
Commercial Mortgage-Backed Securities — 13.3%
Banc of America Commercial Mortgage, Inc.:
Series 2006-4, Class A4, 5.63%, 7/10/46		420		456,014
Series 2006-4, Class AM, 5.68%, 7/10/46		250		262,516
Series 2007-1, Class A4, 5.45%, 1/15/49		1,520		1,619,758
Series 2007-2, Class A4, 5.69%, 4/10/49 (b)		750		804,771
Bear Stearns Commercial Mortgage Securities, Series 2007-PW17, Class A4, 5.69%, 6/11/50 (b)		870		941,924
CS First Boston Mortgage Securities Corp., Series 2002-CP5, Class A2, 4.94%, 12/15/35		2,720		2,846,124

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	25

Schedule of Investments (continued)	BlackRock Core Bond Trust (BHK)
	(Percentages shown are based on Net Assets)

Non-Agency Mortgage-Backed Securities	Par  (000)		Value
Commercial Mortgage-Backed Securities
(concluded)
Citigroup Commercial Mortgage Trust, Series 2008-C7, Class A4, 6.10%, 12/10/49 (b)	USD	1,370	$	1,505,121
Commercial Mortgage Pass-Through Certificates, Series 2004-LB3A, Class A3, 5.09%, 7/10/37 (b)		960		965,501
Credit Suisse Mortgage Capital Certificates (b):
Series 2006-C3, Class AM, 5.83%, 6/15/38		1,000		1,054,967
Series 2010-RR2, Class 2A, 5.80%, 9/15/39 (a)		1,010		1,098,384
Extended Stay America Trust, Series 2010-ESHA (a):
Class A, 2.95%, 11/05/27		2,544		2,523,389
Class C, 4.86%, 11/05/27		1,005		1,042,587
First Union National Bank Commercial Mortgage:
Series 2001-C3, Class A3, 6.42%, 8/15/33		1,254		1,260,450
Series 2001-C4, Class A2, 6.22%, 12/12/33		1,937		1,975,134
GMAC Commercial Mortgage Securities, Inc., Series 2002-C3, Class A2, 4.93%, 7/10/39		2,350		2,455,871
GS Mortgage Securities Corp. II, Series 2010-C2, Class C, 5.23%, 12/10/43 (a)(b)		900		908,863
JPMorgan Chase Commercial Mortgage Securities Corp.:
Series 2001-C1, Class A3, 5.86%, 10/12/35		1,841		1,858,449
Series 2004-CB8, Class A1A, 4.16%, 1/12/39 (a)		748		763,664
Series 2004-CBX, Class A4, 4.53%, 1/12/37		2,180		2,209,522
Series 2006-CB14, Class AM, 5.45%, 12/12/44 (b)		330		343,812
Series 2006-CB16, Class AJ, 5.62%, 5/12/45		730		711,852
Series 2007-CB19, Class A4, 5.74%, 2/12/49 (b)		640		689,319
LB-UBS Commercial Mortgage Trust (b):
Series 2007-C6, Class A4, 5.86%, 7/15/40		1,761		1,901,423
Series 2007-C7, Class A3, 5.87%, 9/15/45		700		755,432
Merrill Lynch Mortgage Trust, Series 2004-BPC1, Class A3, 4.47%, 10/12/41 (b)		4,200		4,253,371
Morgan Stanley Capital I:
Series 2004-HQ4, Class A7, 4.97%, 4/14/40		1,000		1,061,717
Series 2005-T17, Class A4, 4.52%, 12/13/41		2,525		2,560,777
Wachovia Bank Commercial Mortgage Trust:
Series 2005-C21, Class A3, 5.20%, 10/15/44 (b)		156		159,191
Series 2006-C28, Class A2, 5.50%, 10/15/48		7,374		7,475,260
Series 2007-C33, Class A4, 5.90%, 2/15/51 (b)		1,935		2,090,161
				48,555,324
Total Non-Agency Mortgage-Backed Securities — 20.6%				75,312,604
	Beneficial
	Interest
Other Interests (i)	(000)
Health Care Providers & Services — 0.0%
Critical Care Systems International, Inc. (c)		2		191
Total Other Interests — 0.0%				191

Preferred Securities
	Par
Capital Trusts	(000)			Value
Capital Markets — 0.2%
Credit Suisse Guernsey Ltd., 5.86% (b)(j)	USD	494	$	477,327
Insurance — 0.7%
The Allstate Corp., 6.50%, 5/15/67 (b)		1,950		2,001,187
Lincoln National Corp., 6.05%, 4/20/67 (b)		675		645,503
				2,646,690
Total Capital Trusts — 0.9%				3,124,017
Preferred Stocks	Shares
Automobiles — 0.4%
General Motors Co., 4.75%		30,000		1,526,400
Media — 0.0%
CMP Susquehanna Radio Holdings Corp., 0.00% (a)(c)		12,033		—
Total Preferred Stocks — 0.4%				1,526,400
Total Preferred Securities — 1.3%				4,650,417
	Par
Taxable Municipal Bonds	(000)
City of Chicago Illinois, RB, Build America Bonds, 6.40%, 1/01/40	USD	250		240,293
East Bay Municipal Utility District, RB, Build America Bonds, 5.87%, 6/01/40		950		953,078
Indianapolis Local Public Improvement Bond Bank, RB, Build America Bonds, 6.12%, 1/15/40		1,275		1,307,028
Metropolitan Transportation Authority, RB, Build America Bonds, 7.34%, 11/15/39		625		713,125
New York City Municipal Water Finance Authority, RB:
Build America Bonds, 5.72%, 6/15/42		700		686,350
Second General Resolution, Series EE, 5.38%, 6/15/43		385		390,386
Second General Resolution, Series EE, 5.50%, 6/15/43		465		477,722
New York State Dormitory Authority, RB, Build America Bonds:
5.63%, 3/15/39		550		540,447
5.60%, 3/15/40		950		896,762
Port Authority of New York & New Jersey, RB, Consolidated, 159th Series, 6.04%, 12/01/29		385		393,666
State of California, GO:
Build America Bonds, 7.30%, 10/01/39		1,090		1,146,822
Build America Bonds, 7.35%, 11/01/39		540		571,509
Build America Bonds, Various Purpose, 7.50%, 4/01/34		360		389,113
Various Purpose, Series 3, 5.45%, 4/01/15		2,300		2,429,076
University of California, RB, Build America Bonds, 5.95%, 5/15/45		445		411,785
Total Taxable Municipal Bonds — 3.2%				11,547,162

See Notes to Financial Statements.
26	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011

Schedule of Investments (continued)	BlackRock Core Bond Trust (BHK)
	(Percentages shown are based on Net Assets)

U.S. Government Sponsored Agency Securities		Par  (000)	Value
Agency Obligations — 2.7%
Fannie Mae:
6.44%, 10/09/19 (d)(k)	USD	5,875	$	3,919,500
5.63%, 7/15/37 (l)		775		865,811
Federal Home Loan Banks:
5.25%, 12/09/22 (l)		675		745,391
5.37%, 9/09/24 (d)		1,075		1,192,130
Resolution Funding Corp. (k):
6.39%, 7/15/18		525		410,908
6.39%, 10/15/18		525		405,901
Tennessee Valley Authority, 5.25%, 9/15/39 (d)		2,355		2,466,387
				10,006,028
Collateralized Mortgage Obligations — 0.5%
Fannie Mae Mortgage-Backed Securities, Series 2005-5, Class PK, 5.00%, 12/25/34		1,043		1,110,085
Freddie Mac Mortgage-Backed Securities, Series 2825, Class VP, 5.50%, 6/15/15		803		867,047
				1,977,132
Federal Deposit Insurance Corporation Guaranteed — 0.7%
General Electric Capital Corp. (d):
2.00%, 9/28/12		1,850		1,891,092
2.13%, 12/21/12		515		527,962
				2,419,054
Interest Only Collateralized Mortgage Obligations — 0.1%
Freddie Mac Mortgage-Backed Securities:
Series 2579, Class HI, 5.00%, 8/15/17		589		27,933
Series 2611, Class QI, 5.50%, 9/15/32		2,405		317,147
				345,080
Mortgage-Backed Securities — 60.4%
Fannie Mae Mortgage-Backed Securities (m):
4.00%, 3/15/41		45,400		44,931,989
4.50%, 3/15/41		43,100		43,928,339
5.00%, 3/15/26 – 4/15/41		54,600		57,137,707
5.50%, 3/15/26 – 4/15/41		41,900		44,770,955
6.00%, 8/01/29 – 3/15/41 (d)		25,841		28,115,657
Freddie Mac Mortgage-Backed Securities:
4.50%, 3/15/41 (m)		100		101,828
5.00%, 3/15/41 (m)		100		104,609
6.00%, 2/01/13 – 12/01/18		992		1,084,462
Ginnie Mae Mortgage-Backed Securities, 5.50%, 8/15/33		140		152,877
				220,328,423
Total U.S. Government Sponsored Agency Securities — 64.4%				235,075,717
U.S. Treasury Obligations
U.S. Treasury Bonds:
8.13%, 8/15/21 (d)		1,550		2,189,617
6.25%, 8/15/23 (d)		5,720		7,138,383
3.50%, 2/15/39 (e)		330		277,510
4.38%, 5/15/40 (d)		6,375		6,249,476
3.88%, 8/15/40 (d)		2,560		2,298,399
4.25%, 11/15/40		11,625		11,150,921
4.75%, 2/15/41 (d)		4,975		5,187,990
U.S. Treasury Obligations		Par  (000)	Value
U.S. Treasury Notes:
0.63%, 1/31/13 (d)	USD	8,720	$	8,715,570
0.50%, 10/15/13 (d)(e)		2,695		2,661,312
1.25%, 2/15/14		1,840		1,844,600
2.00%, 1/31/16 (d)		20,415		20,317,702
2.63%, 1/31/18		2,605		2,575,897
2.63%, 8/15/20		1,105		1,038,700
2.63%, 11/15/20 (d)		23,506		21,992,333
3.63%, 2/15/21 (d)		3,550		3,612,679
4.25%, 5/15/39 (d)		6,045		5,816,426
Total U.S. Treasury Obligations — 28.3%				103,067,515
Warrants (n)		Shares
Media — 0.0%
CMP Susquehanna Radio Holdings Corp. (Expires 3/26/19) (a)		13,751		—
Software — 0.0%
Bankruptcy Management Solutions, Inc. (Expires 9/29/17)		90		1
Total Warrants — 0.0%				1
Total Long-Term Investments (Cost — $711,383,341) — 199.7%				728,575,189
Short-Term Securities
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.15% (o)(p)		2,222,695		2,222,695
Total Short-Term Securities (Cost — $2,222,695) — 0.6%				2,222,695
Options Purchased		Contracts
Exchange-Traded Call Options — 0.0%
10-Year U.S. Treasury Note, Strike Price USD 120.50, Expires 5/20/11		98		93,406
Exchange-Traded Put Options — 0.1%
10-Year U.S. Treasury Note, Strike Price USD 117.50, Expires 3/25/11		71		26,625
Eurodollar 1-Year Mid-Curve Options, Strike Price USD 98.25, Expires 9/16/11		264		174,900
				201,525
		Notional Amount (000)
Over-the-Counter Call Swaptions — 0.9%
Receive a fixed rate of 4.22% and pay a floating rate based on 3-month LIBOR, Expires 4/29/11, Broker Credit Suisse International	USD	9,000		484,448
Receive a fixed rate of 3.65% and pay a floating rate based on 3-month LIBOR, Expires 5/05/11, Broker Credit Suisse International		5,700		97,996
Receive a fixed rate of 4.01% and pay a floating rate based on 3-month LIBOR, Expires 5/16/11, Broker Goldman Sachs Bank USA		6,000		229,883
Receive a fixed rate of 3.86% and pay a floating rate based on 3-month LIBOR, Expires 5/19/11, Broker JPMorgan Chase Bank NA		10,700		306,334

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	27

Schedule of Investments (continued)	BlackRock Core Bond Trust (BHK)
	(Percentages shown are based on Net Assets)

Options Purchased		Notional Amount (000)	Value
Over-the-Counter Call Swaptions (concluded)
Receive a fixed rate of 3.00% and pay a floating rate based on 3-month LIBOR, Expires 9/02/11, Broker UBS AG	USD	5,000	$	21,334
Receive a fixed rate of 3.12% and pay a floating rate based on 3-month LIBOR, Expires 11/08/11, Broker Deutsche Bank AG		3,000		21,765
Receive a fixed rate of 3.54% and pay a floating rate based on 3-month LIBOR, Expires 12/01/11, Broker Citibank NA		6,500		113,658
Receive a fixed rate of 3.63% and pay a floating rate based on 3-month LIBOR, Expires 12/02/11, Broker Deutsche Bank AG		3,200		65,972
Receive a fixed rate of 3.99% and pay a floating rate based on 3-month LIBOR, Expires 1/12/12, Broker UBS AG		1,700		59,532
Receive a fixed rate of 1.76% and pay a floating rate based on 3-month LIBOR, Expires 1/26/12, Broker Deutsche Bank AG		9,300		61,470
Receive a fixed rate of 4.29% and pay a floating rate based on 3-month LIBOR, Expires 2/06/12, Broker UBS AG		2,100		104,266
Receive a fixed rate of 4.33% and pay a floating rate based on 3-month LIBOR, Expires 2/07/12, Broker Goldman Sachs Bank USA		2,100		108,757
Receive a fixed rate of 4.39% and pay a floating rate based on 3-month LIBOR, Expires 5/08/12, Broker Citibank NA		2,400		125,772
Receive a fixed rate of 3.89% and pay a floating rate based on 3-month LIBOR, Expires 7/09/12, Broker Goldman Sachs Bank USA		4,200		124,617
Receive a fixed rate of 3.93% and pay a floating rate based on 3-month LIBOR, Expires 7/16/12, Broker Goldman Sachs Bank USA		4,700		146,009
Receive a fixed rate of 3.70% and pay a floating rate based on 3-month LIBOR, Expires 8/03/12, Broker Credit Suisse International		4,800		113,574
Receive a fixed rate of 3.30% and pay a floating rate based on 3-month LIBOR, Expires 10/22/12, Broker JPMorgan Chase Bank NA		4,000		57,019
Receive a fixed rate of 3.46% and pay a floating rate based on 3-month LIBOR, Expires 10/22/12, Broker UBS AG		5,500		96,396
Receive a fixed rate of 4.25% and pay a floating rate based on 3-month LIBOR, Expires 1/14/13, Broker Morgan Stanley Capital Services, Inc.		2,100		87,952
Receive a fixed rate of 3.81% and pay a floating rate based on 3-month LIBOR, Expires 9/17/13, Broker Citibank NA		1,500		39,970
Receive a fixed rate of 3.88% and pay a floating rate based on 3-month LIBOR, Expires 10/28/13, Broker Deutsche Bank AG		2,000		57,239
Receive a fixed rate of 5.20% and pay a floating rate based on 3-month LIBOR, Expires 4/28/15, Broker Citibank NA		9,300		661,248
				3,185,211
Over-the-Counter Put Options — 0.0%
EUR Put Option, Strike Price USD 1.32, Expires 5/19/11, Broker Citibank NA	EUR	12,780		121,510
JPY Put Option, Strike Price USD 86.00, Expires 5/20/11, Broker Deutsche Bank AG	USD	2,925		10,472
				131,982
Options Purchased		Notional Amount (000)	Value
Over-the-Counter Put Swaptions — 1.2%
Pay a fixed rate of 4.22% and receive a floating rate based on 3-month LIBOR, Expires 4/29/11, Broker Credit Suisse International	USD	9,000	$	19,960
Pay a fixed rate of 4.02% and receive a floating rate based on 3-month LIBOR, Expires 5/05/11, Broker Credit Suisse International		9,200		46,807
Pay a fixed rate of 4.01% and receive a floating rate based on 3-month LIBOR, Expires 5/16/11, Broker Goldman Sachs Bank USA		6,000		39,250
Pay a fixed rate of 3.86% and receive a floating rate based on 3-month LIBOR, Expires 5/19/11, Broker JPMorgan Chase Bank NA		10,700		111,360
Pay a fixed rate of 3.00% and receive a floating rate based on 3-month LIBOR, Expires 9/02/11, Broker UBS AG		5,000		358,717
Pay a fixed rate of 3.12% and receive a floating rate based on 3-month LIBOR, Expires 11/08/11, Broker Deutsche Bank AG		3,000		216,492
Pay a fixed rate of 3.54% and receive a floating rate based on 3-month LIBOR, Expires 12/01/11, Broker Citibank NA		6,500		323,870
Pay a fixed rate of 3.63% and receive a floating rate based on 3-month LIBOR, Expires 12/02/11, Broker Deutsche Bank AG		3,200		144,109
Pay a fixed rate of 3.99% and receive a floating rate based on 3-month LIBOR, Expires 1/12/12, Broker UBS AG		1,700		57,834
Pay a fixed rate of 1.76% and receive a floating rate based on 3-month LIBOR, Expires 1/26/12, Broker Deutsche Bank AG		9,300		75,871
Pay a fixed rate of 2.50% and receive a floating rate based on 3-month LIBOR, Expires 1/26/12, Broker Deutsche Bank AG		4,500		17,797
Pay a fixed rate of 4.29% and receive a floating rate based on 3-month LIBOR, Expires 2/06/12, Broker UBS AG		2,100		54,748
Pay a fixed rate of 4.33% and receive a floating rate based on 3-month LIBOR, Expires 2/07/12, Broker UBS AG		2,100		52,458
Pay a fixed rate of 4.39% and receive a floating rate based on 3-month LIBOR, Expires 5/08/12, Broker Citibank NA		2,400		74,776
Pay a fixed rate of 3.89% and receive a floating rate based on 3-month LIBOR, Expires 7/09/12, Broker Goldman Sachs Bank USA		4,200		237,205
Pay a fixed rate of 3.93% and receive a floating rate based on 3-month LIBOR, Expires 7/16/12, Broker Goldman Sachs Bank USA		4,700		259,789
Pay a fixed rate of 3.70% and receive a floating rate based on 3-month LIBOR, Expires 8/03/12, Broker Credit Suisse International		4,800		326,799
Pay a fixed rate of 3.30% and receive a floating rate based on 3-month LIBOR, Expires 10/22/12, Broker JPMorgan Chase Bank NA		4,000		393,369
Pay a fixed rate of 3.46% and receive a floating rate based on 3-month LIBOR, Expires 10/22/12, Broker UBS AG		5,500		489,653
Pay a fixed rate of 4.25% and receive a floating rate based on 3-month LIBOR, Expires 1/14/13, Broker Morgan Stanley Capital Services, Inc.		2,100		117,736
Pay a fixed rate of 3.81% and receive a floating rate based on 3-month LIBOR, Expires 9/17/13, Broker Citibank NA		1,500		139,443

See Notes to Financial Statements.
28	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011

Schedule of Investments (continued)	BlackRock Core Bond Trust (BHK)
	(Percentages shown are based on Net Assets)

Options Purchased		Notional Amount (000)	Value
Over-the-Counter Put Swaptions (concluded)
Pay a fixed rate of 3.88% and receive a floating rate based on 3-month LIBOR, Expires 10/28/13, Broker Deutsche Bank AG	USD	2,000	$	182,448
Pay a fixed rate of 5.20% and receive a floating rate based on 3-month LIBOR, Expires 4/28/15, Broker Citibank NA		9,300		533,684
				4,274,175
Total Options Purchased (Cost — $9,378,271) — 2.2%				7,886,299
Total Investments Before TBA Sale Commitments and Options Written (Cost — $722,984,307*) — 202.4%				738,684,183
TBA Sale Commitments (m)		Par  (000)
Fannie Mae Mortgage-Backed Securities:
4.00%, 3/15/41		34,200		(33,719,080	)
4.50%, 3/15/41		33,600		(34,245,758	)
5.00%, 3/15/26 – 4/15/41		50,700		(53,043,895	)
5.50%, 3/15/26 – 4/15/41		36,000		(38,450,934	)
6.00%, 8/01/29 – 3/15/41		32,000		(34,746,082	)
Ginnie Mae Mortgage-Backed Securities, 5.50%, 8/15/33		100		(108,312	)
Total TBA Sale Commitments (Proceeds — $193,476,453) — (53.3)%				(194,314,061	)
Options Written		Contracts
Exchange-Traded Call Options — (0.0)%
10-Year U.S. Treasury Note:
Strike Price USD 121.50, Expires 5/20/11		98		(62,781	)
Strike Price USD 122.50, Expires 5/20/11		98		(39,813	)
				(102,594	)
Exchange-Traded Put Options — (0.0)%
Eurodollar 1-Year Mid-Curve Options, Strike Price USD 97.75, Expires 9/16/11		264		(92,400	)
		Notional Amount (000)
Over-the-Counter Call Swaptions — (1.2)%
Pay a fixed rate of 4.06% and receive a floating rate based on 3-month LIBOR, Expires 5/12/11, Broker Royal Bank of Scotland Plc	USD	6,800		(286,459	)
Pay a fixed rate of 4.06% and receive a floating rate based on 3-month LIBOR, Expires 5/13/11, Broker BNP Paribas SA		3,500		(146,820	)
Pay a fixed rate of 4.49% and receive a floating rate based on 3-month LIBOR, Expires 12/05/11, Broker Deutsche Bank AG		4,000		(254,121	)
Pay a fixed rate of 3.82% and receive a floating rate based on 3-month LIBOR, Expires 12/08/11, Broker JPMorgan Chase Bank NA		3,200		(89,139	)
Pay a fixed rate of 3.83% and receive a floating rate based on 3-month LIBOR, Expires 12/12/11, Broker JPMorgan Chase Bank NA		2,300		(64,772	)
Pay a fixed rate of 3.85% and receive a floating rate based on 3-month LIBOR, Expires 12/12/11, Broker UBS AG		1,200		(35,207	)
Options Written		Notional Amount (000)	Value
Over-the-Counter Call Swaptions (continued)
Pay a fixed rate of 3.95% and receive a floating rate based on 3-month LIBOR, Expires 12/13/11, Broker Goldman Sachs Bank USA	USD	3,500	$	(117,705	)
Pay a fixed rate of 4.00% and receive a floating rate based on 3-month LIBOR, Expires 1/05/12, Broker JPMorgan Chase Bank NA		3,200		(113,951	)
Pay a fixed rate of 4.02% and receive a floating rate based on 3-month LIBOR, Expires 2/02/12, Broker Goldman Sachs Bank USA		2,700		(97,121	)
Pay a fixed rate of 4.02% and receive a floating rate based on 3-month LIBOR, Expires 2/02/12, Broker UBS AG		3,600		(130,312	)
Pay a fixed rate of 2.08% and receive a floating rate based on 3-month LIBOR, Expires 2/07/12, Broker Goldman Sachs Bank USA		9,300		(97,025	)
Pay a fixed rate of 4.14% and receive a floating rate based on 3-month LIBOR, Expires 6/15/12, Broker Deutsche Bank AG		3,700		(147,241	)
Pay a fixed rate of 4.05% and receive a floating rate based on 3-month LIBOR, Expires 6/18/12, Broker Deutsche Bank AG		3,500		(126,281	)
Pay a fixed rate of 3.83% and receive a floating rate based on 3-month LIBOR, Expires 7/30/12, Broker Citibank NA		1,200		(33,263	)
Pay a fixed rate of 3.86% and receive a floating rate based on 3-month LIBOR, Expires 11/23/12, Broker Deutsche Bank AG		4,600		(129,889	)
Pay a fixed rate of 3.77% and receive a floating rate based on 3-month LIBOR, Expires 11/23/12, Broker UBS AG		3,300		(84,998	)
Pay a fixed rate of 4.03% and receive a floating rate based on 3-month LIBOR, Expires 12/06/12, Broker UBS AG		2,000		(67,904	)
Pay a fixed rate of 4.90% and receive a floating rate based on 3-month LIBOR, Expires 3/04/13, Broker Deutsche Bank AG		4,800		(337,450	)
Pay a fixed rate of 4.92% and receive a floating rate based on 3-month LIBOR, Expires 3/05/13, Broker Deutsche Bank AG		7,000		(500,989	)
Pay a fixed rate of 5.00% and receive a floating rate based on 3-month LIBOR, Expires 4/22/13, Broker JPMorgan Chase Bank NA		6,100		(454,027	)
Pay a fixed rate of 4.32% and receive a floating rate based on 3-month LIBOR, Expires 5/28/13, Broker Royal Bank of Scotland Plc		500		(21,535	)
Pay a fixed rate of 4.07% and receive a floating rate based on 3-month LIBOR, Expires 7/08/13, Broker Deutsche Bank AG		1,700		(58,418	)
Pay a fixed rate of 4.06% and receive a floating rate based on 3-month LIBOR, Expires 7/15/13, Broker Credit Suisse International		2,600		(88,458	)
Pay a fixed rate of 3.44% and receive a floating rate based on 6-month EURIBOR, Expires 10/21/13, Broker Deutsche Bank AG	EUR	1,300		(684	)
Pay a fixed rate of 4.76% and receive a floating rate based on 3-month LIBOR, Expires 1/27/14, Broker Royal Bank of Scotland Plc	USD	1,100		(63,692	)
Pay a fixed rate of 5.08% and receive a floating rate based on 3-month LIBOR, Expires 2/10/14, Broker Bank of America NA		3,500		(249,986	)
Pay a fixed rate of 5.09% and receive a floating rate based on 3-month LIBOR, Expires 2/10/14, Broker Goldman Sachs Bank USA		3,800		(273,165	)

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	29

Schedule of Investments (continued)	BlackRock Core Bond Trust (BHK)
	(Percentages shown are based on Net Assets)

Options Written		Notional Amount (000)	Value
Over-the-Counter Call Swaptions (concluded)
Pay a fixed rate of 4.84% and receive a floating rate based on 3-month LIBOR, Expires 12/02/14, Broker JPMorgan Chase Bank NA	USD	2,500	$	(145,141	)
Pay a fixed rate of 4.89% and receive a floating rate based on 3-month LIBOR, Expires 12/03/14, Broker Deutsche Bank AG		2,900		(173,813	)
				(4,389,566	)
Over-the-Counter Put Swaptions — (1.2)%
Receive a fixed rate of 1.80% and pay a floating rate based on 3-month LIBOR, Expires 3/02/11, Broker Royal Bank of Scotland Plc		14,000		(368,745	)
Receive a fixed rate of 2.15% and pay a floating rate based on 3-month LIBOR, Expires 4/26/11, Broker Deutsche Bank AG		3,700		(64,791	)
Receive a fixed rate of 4.06% and pay a floating rate based on 3-month LIBOR, Expires 5/12/11, Broker Royal Bank of Scotland Plc		6,800		(35,210	)
Receive a fixed rate of 4.06% and pay a floating rate based on 3-month LIBOR, Expires 5/13/11, Broker BNP Paribas SA		3,500		(18,611	)
Receive a fixed rate of 4.49% and pay a floating rate based on 3-month LIBOR, Expires 12/05/11, Broker Deutsche Bank AG		4,000		(62,389	)
Receive a fixed rate of 3.82% and pay a floating rate based on 3-month LIBOR, Expires 12/08/11, Broker JPMorgan Chase Bank NA		3,200		(118,383	)
Receive a fixed rate of 3.83% and pay a floating rate based on 3-month LIBOR, Expires 12/12/11, Broker JPMorgan Chase Bank NA		2,300		(85,302	)
Receive a fixed rate of 3.85% and pay a floating rate based on 3-month LIBOR, Expires 12/12/11, Broker UBS AG		1,200		(43,090	)
Receive a fixed rate of 3.95% and pay a floating rate based on 3-month LIBOR, Expires 12/13/11, Broker Goldman Sachs Bank USA		3,500		(112,524	)
Receive a fixed rate of 4.00% and pay a floating rate based on 3-month LIBOR, Expires 1/05/12, Broker JPMorgan Chase Bank NA		3,200		(105,090	)
Receive a fixed rate of 4.02% and pay a floating rate based on 3-month LIBOR, Expires 2/02/12, Broker Goldman Sachs Bank USA		2,700		(95,026	)
Receive a fixed rate of 4.02% and pay a floating rate based on 3-month LIBOR, Expires 2/02/12, Broker UBS AG		3,600		(126,012	)
Receive a fixed rate of 2.08% and pay a floating rate based on 3-month LIBOR, Expires 2/07/12, Broker Goldman Sachs Bank USA		9,300		(58,916	)
Receive a fixed rate of 4.14% and pay a floating rate based on 3-month LIBOR, Expires 6/15/12, Broker Deutsche Bank AG		3,700		(160,559	)
Receive a fixed rate of 4.05% and pay a floating rate based on 3-month LIBOR, Expires 6/18/12, Broker Deutsche Bank AG		3,500		(165,142	)
Receive a fixed rate of 3.83% and pay a floating rate based on 3-month LIBOR, Expires 7/30/12, Broker Citibank NA		1,200		(73,305	)
Receive a fixed rate of 3.86% and pay a floating rate based on 3-month LIBOR, Expires 11/23/12, Broker Deutsche Bank AG		4,600		(322,745	)
Receive a fixed rate of 3.77% and pay a floating rate based on 3-month LIBOR, Expires 11/23/12, Broker UBS AG		3,300		(245,375	)
Options Written		Notional Amount (000)		Value
Over-the-Counter Put Swaptions (concluded)
Receive a fixed rate of 4.03% and pay a floating rate based on 3-month LIBOR, Expires 12/06/12, Broker UBS AG	USD	2,000	$	(125,738	)
Receive a fixed rate of 4.90% and pay a floating rate based on 3-month LIBOR, Expires 3/04/13, Broker Deutsche Bank AG		4,800		(177,227	)
Receive a fixed rate of 4.92% and pay a floating rate based on 3-month LIBOR, Expires 3/05/13, Broker Deutsche Bank AG		7,000		(253,940	)
Receive a fixed rate of 5.00% and pay a floating rate based on 3-month LIBOR, Expires 4/22/13, Broker JPMorgan Chase Bank NA		6,100		(223,818	)
Receive a fixed rate of 4.32% and pay a floating rate based on 3-month LIBOR, Expires 5/28/13, Broker Royal Bank of Scotland Plc		500		(31,169	)
Receive a fixed rate of 4.07% and pay a floating rate based on 3-month LIBOR, Expires 7/08/13, Broker Deutsche Bank AG		1,700		(128,711	)
Receive a fixed rate of 4.06% and pay a floating rate based on 3-month LIBOR, Expires 7/15/13, Broker Credit Suisse International		2,600		(199,177	)
Receive a fixed rate of 3.44% and pay a floating rate based on 6-month EURIBOR, Expires 10/21/13, Broker Deutsche Bank AG	EUR	1,300		(504	)
Receive a fixed rate of 4.76% and pay a floating rate based on 3-month LIBOR, Expires 1/27/14, Broker Royal Bank of Scotland Plc	USD	1,100		(63,244	)
Receive a fixed rate of 5.08% and pay a floating rate based on 3-month LIBOR, Expires 2/10/14, Broker Bank of America NA		3,500		(166,547	)
Receive a fixed rate of 5.09% and pay a floating rate based on 3-month LIBOR, Expires 2/10/14, Broker Goldman Sachs Bank USA		3,800		(179,668	)
Receive a fixed rate of 4.84% and pay a floating rate based on 3-month LIBOR, Expires 12/02/14, Broker JPMorgan Chase Bank NA		2,500		(164,970	)
Receive a fixed rate of 4.89% and pay a floating rate based on 3-month LIBOR, Expires 12/03/14, Broker Deutsche Bank AG		2,900		(186,256	)
Receive a fixed rate of 4.47% and pay a floating rate based on 3-month LIBOR, Expires 8/05/15, Broker JPMorgan Chase Bank NA		7,900		(364,095	)
				(4,526,279	)
Total Options Written (Premiums Received — $9,961,055) — (2.5)%				(9,110,839	)
Total Investments, Net of TBA Sale Commitments and Options Written — 146.6%				535,259,283
Liabilities in Excess of Other Assets — (46.6)%				(170,398,068	)
Net Assets — 100.0%			$	364,861,215

*	The cost and unrealized appreciation (depreciation) of investments as of February 28, 2011, as computed for federal income tax purposes were as follows:
	Aggregate cost	$	723,768,152
	Gross unrealized appreciation	$	26,146,872
	Gross unrealized depreciation		(11,230,841	)
	Net unrealized appreciation	$	14,916,031

See Notes to Financial Statements.
30	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011

Schedule of Investments (continued) BlackRock Core Bond Trust (BHK)

(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)	Non-income producing security.
(d)	All or a portion of security has been pledged as collateral in connection with open reverse repurchase agreements.
(e)	All or a portion of security has been pledged as collateral in connection with swaps.
(f)	Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown reflects the current yield as of report date.
(g)	Represents a payment-in-kind security which may pay interest/dividends in additional par/shares.
(h)	Convertible security.
(i)	Other interests represent beneficial interest in liquidation trusts and other reorganization entities and are non-income producing.
(j)	Security is perpetual in nature and has no stated maturity date.
(k)	Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(l)	All or a portion of security has been pledged as collateral in connection with open financial futures contracts.
(m)	Represents or includes a to-be-announced (“TBA”) transaction. Unsettled TBA transactions as of report date were as follows:

Counterparty	Value			Unrealized Appreciation (Depreciation)
Banc Nationale De Paris	$	1,157,810		$	2,810
Citigroup Global Markets, Inc.	$	(633,236	)	$	(106,436	)
Credit Suisse Securities (USA) LLC	$	12,397,500		$	141,203
Deutsche Bank Securities, Inc.	$	(28,828,732	)	$	31,186
Goldman Sachs & Co.	$	(4,581,236	)	$	59,756
Greenwich Financial Services	$	5,383,538		$	46,710
JPMorgan Securities, Inc.	$	789,502		$	18,295
Morgan Stanley Capital Services, Inc.	$	(44,682	)	$	(854	)
Nomura Securities International, Inc.	$	36,383,969		$	213,508
UBS Securities	$	171,140		$	45,593

(n)	Warrants entitle the Trust to purchase a predetermined number of shares of common stock and are non-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date, if any.
(o)	Investments in companies considered to be an affiliate of the Trust during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate	Shares Held at August 31, 2010		Net Activity		Shares Held at February 28, 2011		Income
BlackRock Liquidity Funds, TempFund, Institutional Class		506,274		1,716,421		2,222,695	$	1,843

(p)	Represents the current yield as of report date.
•	Reverse repurchase agreements outstanding as of February 28, 2011 were as follows:

Counterparty	Interest Rate	Trade Date	Maturity Date	Net Closing Amount		Face Amount
Barclays Capital, Inc.	0.24%	10/19/10	Open	$	7,778,941	$	7,772,050
Barclays Capital, Inc.	0.28%	10/19/10	Open		6,082,248		6,075,962
Barclays Capital, Inc.	0.40%	10/19/10	Open		4,803,987		4,796,898
Credit Suisse Securities (USA), Inc.	0.26%	10/19/10	Open		2,366,020		2,363,750
Credit Suisse Securities (USA), Inc.	0.31%	10/19/10	Open		1,850,452		1,848,335
Barclays Capital, Inc.	0.26%	10/20/10	Open		1,286,225		1,285,000
Royal Bank of Scotland Plc	0.33%	10/26/10	Open		1,373,344		1,371,760
Credit Suisse Securities (USA), Inc.	0.40%	11/03/10	Open		3,138,411		3,138,000
UBS Securities LLC	0.38%	11/04/10	Open		3,469,523		3,465,244
Merrill Lynch & Co., Inc.	0.23%	12/13/10	Open		6,330,341		6,327,187
Merrill Lynch & Co., Inc.	0.24%	12/13/10	Open		3,819,047		3,817,062
UBS Securities LLC	0.38%	12/13/10	Open		4,165,693		4,162,266
UBS Securities LLC	0.40%	12/13/10	Open	��	2,051,520		2,049,744
Deutsche Bank AG	0.40%	12/14/10	Open		10,094,379		10,085,750
Credit Suisse Securities (USA), Inc.	0.26%	1/19/11	Open		1,010,312		1,010,013
Deutsche Bank AG	0.60%	1/21/11	Open		4,273,276		4,270,500
Credit Suisse Securities (USA), Inc.	0.40%	1/27/11	Open		4,399,644		4,398,031
Deutsche Bank AG	0.40%	1/28/11	Open		7,296,218		7,293,625
BNP Paribas	0.23%	2/11/11	3/10/11		2,450,282		2,450,000
Credit Suisse Securities (USA), Inc.	0.19%	2/14/11	3/15/11		4,304,606		4,304,288
Credit Suisse Securities (USA), Inc.	0.45%	2/24/11	3/11/11		8,010,745		8,010,345
Barclays Capital, Inc.	0.18%	2/28/11	3/01/11		8,720,044		8,720,000
Credit Suisse Securities (USA), Inc.	0.03%	2/28/11	3/01/11		3,149,165		3,149,163
Credit Suisse Securities (USA), Inc.	0.18%	2/28/11	3/01/11		22,154,045		22,153,934
Credit Suisse Securities (USA), Inc.	0.19%	2/28/11	3/01/11		5,416,797		5,416,769
Deutsche Bank AG	0.14%	2/28/11	3/01/11		20,389,561		20,389,481
Total				$	150,184,826	$	150,125,157

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	31

Schedule of Investments (continued) BlackRock Core Bond Trust (BHK)

• Financial futures contracts purchased as of February 28, 2011 were as follows:

Contracts	Issue	Exchange	Expiration	Notional Value		Unrealized Appreciation (Depreciation)
57	5-Year U.S. Treasury Note	Chicago Board of Trade	March 2011	$	6,708,123	$	10,752
3	Euro-Bund Future	Eurex	March 2011	$	516,722		(2,883	)
30	Euro-Dollar Future	Chicago Mercantile Exchange	March 2011	$	7,463,033		13,343
67	2-Year U.S. Treasury Note	Chicago Board of Trade	June 2011	$	14,599,133		26,757
322	30-Year U.S. Treasury Bond	Chicago Board of Trade	June 2011	$	38,656,617		94,070
Total						$	142,039

• Financial futures contracts sold as of February 28, 2011 were as follows:

Contracts	Issue	Exchange	Expiration	Notional Value		Unrealized Depreciation
45	2-Year U.S. Treasury Note	Chicago Board of Trade	March 2011	$	9,853,971	$	(326	)
400	10-Year U.S. Treasury Note	Chicago Board of Trade	March 2011	$	47,804,098		(333,402	)
29	30-Year U.S. Treasury Ultra Bond	Chicago Board of Trade	March 2011	$	3,512,119		(114,693	)
404	5-Year U.S. Treasury Note	Chicago Board of Trade	June 2011	$	47,002,933		(239,817	)
101	10-Year U.S. Treasury Note	Chicago Board of Trade	June 2011	$	11,886,543		(137,192	)
59	Euro-Dollar Future	Chicago Mercantile Exchange	December 2011	$	14,589,078		(70,947	)
Total						$	(896,377	)

• Foreign currency exchange contracts as of February 28, 2011 were as follows:

Currency Purchased		Currency Sold		Counterparty	Settlement Date	Unrealized Appreciation (Depreciation)
INR	82,735,100	USD	1,810,000	Goldman Sachs International	3/01/11	$	17,794
INR	249,834,300	USD	5,493,831	Morgan Stanley Capital Services, Inc.	3/01/11		25,539
USD	1,823,564	INR	82,735,100	Goldman Sachs International	3/01/11		(4,230	)
USD	5,442,766	INR	249,834,300	Morgan Stanley Capital Services, Inc.	3/01/11		(76,604	)
EUR	4,345,000	USD	5,842,602	BNP Paribas SA	3/03/11		153,204
EUR	2,385,000	USD	3,161,778	Citibank NA	3/03/11		129,360
EUR	2,040,000	USD	2,683,056	Royal Bank of Scotland Plc	3/03/11		132,006
EUR	1,335,000	USD	1,787,483	UBS AG	3/03/11		54,727

• Foreign currency exchange contracts as of February 28, 2011 were as follows (concluded):

Currency Purchased		Currency Sold		Counterparty	Settlement Date	Unrealized Appreciation (Depreciation)
USD	1,766,259	EUR	1,345,000	BNP Paribas SA	3/03/11	$	(89,750	)
USD	4,436,684	EUR	3,355,000	Citibank NA	3/03/11		(192,989	)
USD	3,561,350	EUR	2,685,000	Deutsche Bank AG	3/03/11		(143,768	)
USD	3,592,535	EUR	2,720,000	Goldman Sachs International	3/03/11		(160,881	)
EUR	830,000	USD	1,118,757	Citibank NA	3/23/11		26,295
USD	1,071,598	EUR	830,000	UBS AG	3/23/11		(73,454	)
USD	7,810,630	EUR	5,707,500	Citibank NA	4/27/11		(59,966	)
EUR	1,032,500	USD	1,415,228	Citibank NA	5/06/11		8,402
USD	1,391,543	EUR	1,032,500	UBS AG	5/06/11		(32,087	)
Total						$	(286,402	)

• Credit default swaps on single-name issues — buy protection outstanding as of February 28, 2011 were as follows:

Issuer	Pay Fixed Rate	Counterparty	Expiration Date		Notional Amount (000)		Unrealized Appreciation (Depreciation)
Radian Group, Inc.	5.00%	Citibank NA	3/20/13	$	1,400	$	(77,693	)
Radian Group, Inc.	5.00%	Citibank NA	6/20/15	$	1,400		(67,048	)
MGIC Investment Corp.	5.00%	Citibank NA	12/20/15	$	840		(41,442	)
Spain (Kingdom of)	1.00%	Citibank NA	3/20/16	$	936		(2,742	)
Spain (Kingdom of)	1.00%	JPMorgan Chase Bank NA	3/20/16	$	4,682		(6,637	)
The PMI Group, Inc.	5.00%	Citibank NA	9/20/16	$	1,400		18,962
The New York Times Co.	1.00%	Barclays Bank Plc	12/20/16	$	1,800		(34,752	)
Total						$	(211,352	)

• Credit default swaps on traded indexes — buy protection outstanding as of February 28, 2011 were as follows:

Index	Pay Fixed Rate	Counterparty	Expiration Date	Notional Amount (000)		Unrealized Depreciation
Dow Jones CDX Emerging Markets Series 14	5.00%	Morgan Stanley Capital Services, Inc.	12/20/15	$	990	$	(1,721	)
Dow Jones CDX North America High Yield Index Series 15	5.00%	Credit Suisse International	12/20/15	$	5,000		(35,389	)
Total						$	(37,110	)

See Notes to Financial Statements.
32	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011

Schedule of Investments (continued) BlackRock Core Bond Trust (BHK)

• Interest rate swaps outstanding as of February 28, 2011 were as follows:

Fixed Rate	Floating Rate	Counterparty	Expiration Date	Notional Amount (000)		Unrealized Appreciation (Depreciation)
0.63% (a)	3-month LIBOR	Credit Suisse International	11/26/12	$	23,300	$	43,111
0.96% (a)	3-month LIBOR	Deutsche Bank AG	2/08/13	$	7,600		(16,877	)
0.92% (b)	3-month LIBOR	Credit Suisse International	2/28/13	$	3,800		3,398
0.91% (b)	3-month LIBOR	Deutsche Bank AG	2/28/13	$	6,100		3,642
1.36% (a)	3-month LIBOR	Royal Bank of Scotland Plc	11/08/15	$	3,700		143,817
2.80% (b)	3-month LIBOR	Deutsche Bank AG	2/10/21	$	3,900		(177,578	)
3.73% (b)	3-month LIBOR	Credit Suisse International	2/15/21	$	700		12,597
3.77% (b)	3-month LIBOR	Morgan Stanley Capital Services, Inc.	2/15/21	$	1,400		29,882
3.67% (b)	3-month LIBOR	Credit Suisse International	2/22/21	$	3,100		37,873
3.57% (b)	3-month LIBOR	Citibank NA	2/25/21	$	300		1,233
4.47% (a)	3-month LIBOR	Barclays Bank Plc	2/15/41	$	1,500		(53,414	)
Total						$	27,684

	(a)	Pays a fixed interest rate and receives floating rate.
	(b)	Pays floating rate and receives fixed rate.
•	For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by Trust management. This definition may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.
•	Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivatives. These inputs are summarized in three broad levels for financial statement purposes as follows:
	•	Level 1 — price quotations in active markets/exchanges for identical assets and liabilities
	•	Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
	•	Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments and derivatives)
	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 Trust’s policy regarding valuation of investments and derivatives 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 February 28, 2011 in determining the fair valuation of the Trust’s investments and derivatives:

Valuation Inputs	Level 1		Level 2			Level 3		Total
Assets:
Investments in Securities:
Asset-Backed Securities		—	$	16,334,938		$	4,266,817	$	20,601,755
Common Stocks		—		474			—		474
Corporate Bonds		—		270,151,036			3,076,752		273,227,788
Foreign Agency Obligations		—		5,091,565			—		5,091,565
Non-Agency Mortgage-Backed Securities		—		73,743,321			1,569,283		75,312,604
Other Interests		—		—			191		191
Preferred Securities	$	1,526,400		3,124,017			—		4,650,417
Taxable Municipal Bonds		—		11,547,162			—		11,547,162
U.S. Government Sponsored Agency Securities		—		235,075,717			—		235,075,717
U.S. Treasury Obligations		—		103,067,515			—		103,067,515
Warrants		—		—			1		1
Short-Term Securities		2,222,695		—			—		2,222,695
Liabilities:
TBA Sale Commitments		—		(194,314,061	)		—		(194,314,061	)
Total	$	3,749,095	$	523,821,684		$	8,913,044	$	536,483,823

	Derivative Financial Instruments1
Valuation Inputs	Level 1			Level 2			Level 3		Total
Assets:
Credit contracts		—		$	18,962			—	$	18,962
Foreign currency exchange contracts		—			679,309			—		679,309
Interest rate contracts	$	439,853			7,734,939			—		8,174,792
Liabilities:
Credit contracts		—			(267,424	)		—		(267,424	)
Foreign currency exchange contracts		—			(833,729	)		—		(833,729	)
Interest rate contracts		(1,094,254	)		(9,163,714	)		—		(10,257,968	)
Total	$	(654,401	)	$	(1,831,657	)		—	$	(2,486,058	)

¹ Derivative financial instruments are swaps, financial futures contracts and foreign currency exchange contracts and options. Swaps, financial futures contracts and foreign currency exchange contracts are shown at the unrealized appreciation/ depreciation on the instrument and options are shown at value.

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	33

Schedule of Investments (concluded) BlackRock Core Bond Trust (BHK)

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

	Asset-Backed Securities			Common Stocks			Corporate Bonds			Non-Agency Mortgage-Backed Securities			Other Interests			Preferred Securities			Warrants			Total
Assets:
Balance, as of August 31, 2010	$	5,104,409		$	11,492		$	3,029,472		$	2,310,902		$	381		$	56,838			—		$	10,513,494
Accrued discounts/premiums		19,470			—			177,849			9,203			—			—			—			206,522
Net realized gain (loss)		—			(294,917	)		—			34,661			—			113,247			—			(147,009	)
Net change in unrealized appreciation/depreciation2		477,832			315,473			(93,913	)		(34,542	)		(190	)		(11,539	)	$	(1,590	)		651,531
Purchases		1,889,760			—			—			1,569,283			—			—			1,591			3,460,634
Sales		(103,465	)		(32,048	)		—			(1,673,742	)		—			(158,546	)		—			(1,967,801	)
Transfer in3		—			—			—			—			—			—			—			—
Transfer out3		(3,121,189	)		—			(36,656	)		(646,482	)		—			—			—			(3,804,327	)
Balance as of February 28, 2011	$	4,266,817			—		$	3,076,752		$	1,569,283		$	191			—		$	1		$	8,913,044

2	Included in the related net change in unrealized appreciation/depreciation on the Statements of Operations. The change in the unrealized appreciation/depreciation on the securities still held on February 28, 2011 was $432,573.
3	The Trust’s policy is to recognize transfers in and transfers out as of the end of the period of the event or the change in circumstances that caused the transfer.

See Notes to Financial Statements.
34	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011

Schedule of Investments February 28, 2011 (Unaudited) BlackRock Corporate High Yield Fund V, Inc. (HYV)
(Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Capital Markets — 0.2%
E*Trade Financial Corp. (a)		43,000	$	687,140
Chemicals — 0.1%
LyondellBasell Industries NV, Class A (a)		4,740		180,499
Wellman Holdings, Inc. (a)		2,499		125
				180,624
Commercial Banks — 0.1%
CIT Group, Inc. (a)		10,229		443,120
Commercial Services & Supplies — 0.1%
Air Lease Corp. (a)(b)		19,100		401,100
Communications Equipment — 0.6%
Loral Space & Communications Ltd. (a)		31,026		2,347,427
Construction Materials — 0.0%
Nortek, Inc. (a)		3,280		145,960
Diversified Financial Services — 0.3%
Bank of America Corp.		85,000		1,214,650
Electrical Equipment — 0.0%
Medis Technologies Ltd. (a)		109,685		2,303
Food Products — 0.1%
Zhongpin, Inc. (a)		17,361		322,741
Health Care Equipment & Supplies — 0.1%
Zimmer Holdings, Inc. (a)		8,271		515,614
Hotels, Restaurants & Leisure — 0.0%
Buffets Restaurants Holdings, Inc. (a)		1,854		7,880
Household Durables — 0.2%
Beazer Homes USA, Inc. (a)		83,108		386,452
Pulte Group, Inc. (a)		80,900		558,210
				944,662
Machinery — 0.2%
Navistar International Corp. (a)		11,667		723,121
Media — 1.0%
Charter Communications, Inc. (a)		83,448		3,819,415
Clear Channel Outdoor Holdings, Inc., Class A (a)		16,306		240,351
				4,059,766
Metals & Mining — 0.1%
African Minerals Ltd. (a)		45,951		404,501
Oil, Gas & Consumable Fuels — 0.7%
Alpha Natural Resources, Inc. (a)		18,200		986,804
Marathon Oil Corp.		42,300		2,098,080
				3,084,884
Paper & Forest Products — 0.3%
Ainsworth Lumber Co. Ltd. (a)		181,600		600,006
Ainsworth Lumber Co. Ltd. (a)(b)		208,741		689,680
Western Forest Products, Inc. (a)		74,889		57,041
Western Forest Products, Inc. (a)(b)		74,936		57,076
				1,403,803
Road & Rail — 0.3%
Dollar Thrifty Automotive Group, Inc. (a)		26,300		1,396,793
Semiconductors & Semiconductor Equipment — 0.3%
Spansion, Inc., Class A (a)		66,453		1,400,165
SunPower Corp., Class B (a)		573		9,672
				1,409,837
Software — 0.3%
Bankruptcy Management Solutions, Inc. (a)		737		2,578
HMH Holdings/EduMedia (a)		133,690		668,450
TiVo, Inc. (a)		32,660		335,745
				1,006,773

Common Stocks	Shares		Value
Wireless Telecommunication Services — 0.7%
American Tower Corp., Class A (a)		17,063	$	920,720
Crown Castle International Corp. (a)		41,121		1,733,250
FiberTower Corp. (a)		127,570		416,157
				3,070,127
Total Common Stocks — 5.7%				23,772,826
Corporate Bonds	Par  (000)
Aerospace & Defense — 0.3%
DynCorp International, Inc., 10.38%, 7/01/17 (b)	USD	410		440,750
Kratos Defense & Security Solutions, Inc., 10.00%, 6/01/17		690		777,975
				1,218,725
Air Freight & Logistics — 0.5%
National Air Cargo Group, Inc.:
Series 1, 12.38%, 9/02/15		1,069		1,068,667
Series 2, 12.38%, 10/08/15		1,079		1,078,933
				2,147,600
Airlines — 2.7%
Air Canada, 9.25%, 8/01/15 (b)		1,570		1,679,900
American Airlines, Inc.:
10.50%, 10/15/12		1,400		1,536,500
Series 2001-2, 7.86%, 4/01/13		490		505,925
Continental Airlines, Inc.:
6.75%, 9/15/15 (b)		900		924,750
Series 1997-4-B, 6.90%, 7/02/18		71		71,788
Series 2001-1-C, 7.03%, 12/15/12		269		270,351
Series 2010-1-B, 6.00%, 7/12/20		700		698,250
Delta Air Lines, Inc.:
Series 2010-1-B, 6.38%, 7/02/17		800		796,000
Series B, 9.75%, 12/17/16		1,353		1,460,907
United Air Lines, Inc., 12.75%, 7/15/12		2,838		3,171,701
				11,116,072
Auto Components — 1.5%
Allison Transmission, Inc. (b):
11.00%, 11/01/15		350		380,625
11.25%, 11/01/15 (c)		272		296,480
Delphi International Holdings Unsecured, 12.00%, 10/06/14		134		147,905
Exide Technologies, 8.63%, 2/01/18 (b)		550		586,438
Icahn Enterprises LP, 8.00%, 1/15/18		4,815		4,983,525
				6,394,973
Beverages — 0.2%
Cott Beverages, Inc., 8.13%, 9/01/18		394		424,042
Crown European Holdings SA, 7.13%, 8/15/18 (b)	EUR	365		536,424
				960,466
Biotechnology — 0.2%
QHP Pharma, 10.25%, 3/15/15 (b)	USD	715		720,608
Building Products — 1.2%
Associated Materials LLC, 9.13%, 11/01/17 (b)		730		789,313
Building Materials Corp. of America (b):
6.88%, 8/15/18		785		804,625
7.00%, 2/15/20		930		979,987
Momentive Performance Materials, Inc.:
11.50%, 12/01/16		255		276,675
9.00%, 1/15/21 (b)		1,900		2,021,125
				4,871,725

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	35

Schedule of Investments (continued) BlackRock Corporate High Yield Fund V, Inc. (HYV)
(Percentages shown are based on Net Assets)

Corporate Bonds	Par  (000)		Value
Capital Markets — 0.6%
American Capital Ltd., 7.36%, 12/31/13 (d)	USD	740	$	757,812
E*Trade Financial Corp., 3.43%, 8/31/19 (b)(e)(f)		356		550,020
KKR Group Finance Co., 6.38%, 9/29/20 (b)		970		999,416
				2,307,248
Chemicals — 3.4%
American Pacific Corp., 9.00%, 2/01/15		1,300		1,277,250
Chemtura Corp., 7.88%, 9/01/18 (b)		785		837,987
Georgia Gulf Corp., 9.00%, 1/15/17 (b)		245		272,563
Hexion U.S. Finance Corp.:
8.88%, 2/01/18		1,135		1,218,706
9.00%, 11/15/20 (b)		550		585,062
Huntsman International LLC (b):
6.88%, 11/15/13	EUR	415		585,568
8.63%, 3/15/21	USD	740		821,400
Ineos Finance Plc, 9.00%, 5/15/15 (b)		625		685,937
KRATON Polymers LLC, 6.75%, 3/01/19 (b)		185		188,700
MacDermid, Inc., 9.50%, 4/15/17 (b)		1,845		1,964,925
Nalco Co., 6.63%, 1/15/19 (b)		490		506,537
Nexeo Solutions LLC, 8.38%, 3/01/18 (b)(g)		275		279,813
OXEA Finance/Cy SCA, 9.50%, 7/15/17 (b)		1,010		1,108,475
Omnova Solutions, Inc., 7.88%, 11/01/18 (b)		220		225,775
Polymer Group, Inc., 7.75%, 2/01/19 (b)		214		222,828
PolyOne Corp., 7.38%, 9/15/20		320		339,200
Rhodia SA, 6.88%, 9/15/20 (b)		1,085		1,110,769
TPC Group LLC, 8.25%, 10/01/17 (b)		495		526,556
Wellman Holdings, Inc., Subordinate Note (e):
(Second Lien), 10.00%, 1/29/19		1,385		1,204,950
(Third Lien), 5.00%, 1/29/19 (c)		466		181,602
				14,144,603
Commercial Banks — 2.8%
CIT Group, Inc.:
7.00%, 5/01/16		5,078		5,122,240
7.00%, 5/01/17		6,594		6,643,386
Glitnir Banki HF, 6.38%, 9/25/12 (b)(h)		1,005		—
				11,765,626
Commercial Services & Supplies — 1.8%
ACCO Brands Corp., 10.63%, 3/15/15		1,115		1,259,950
AWAS Aviation Capital Ltd., 7.00%, 10/15/16 (b)		376		386,340
Brickman Group Holdings, Inc., 9.13%, 11/01/18 (b)		780		838,500
Casella Waste Systems, Inc., 7.75%, 2/15/19 (b)		549		562,725
International Lease Finance Corp., 8.25%, 12/15/20		478		531,775
Mobile Mini, Inc., 7.88%, 12/01/20 (b)		345		367,425
RSC Equipment Rental, Inc. (b):
10.00%, 7/15/17		870		1,000,500
8.25%, 2/01/21		872		922,140
West Corp. (b):
8.63%, 10/01/18		1,120		1,187,200
7.88%, 1/15/19		290		297,612
				7,354,167
Communications Equipment — 0.2%
Avaya, Inc., 7.00%, 4/01/19 (b)		640		633,600
Computers & Peripherals — 0.3%
EMC Corp., 1.75%, 12/01/13 (e)		720		1,258,200
Construction Materials — 1.4%
Nortek, Inc.:
11.00%, 12/01/13		3,655		3,892,125
10.00%, 12/01/18 (b)		1,770		1,889,475
				5,781,600

Corporate Bonds	Par  (000)		Value
Consumer Finance — 0.7%
Credit Acceptance Corp., 9.13%, 2/01/17	USD	1,010	$	1,088,275
Ford Motor Credit Co. LLC:
3.05%, 1/13/12 (i)		310		313,159
7.80%, 6/01/12		300		319,933
6.63%, 8/15/17		1,150		1,223,115
				2,944,482
Containers & Packaging — 2.2%
Ardagh Packaging Finance Plc, 7.38%, 10/15/17 (b)	EUR	710		1,011,612
Ball Corp., 6.75%, 9/15/20	USD	750		785,625
Berry Plastics Corp.:
8.25%, 11/15/15		205		219,606
9.75%, 1/15/21 (b)		1,380		1,383,450
Graham Packaging Co. LP, 8.25%, 10/01/18		375		404,063
Graphic Packaging International, Inc.:
9.50%, 6/15/17		1,180		1,309,800
7.88%, 10/01/18		590		634,250
OI European Group BV, 6.88%, 3/31/17	EUR	233		334,793
Pregis Corp., 12.38%, 10/15/13	USD	835		841,263
Smurfit Kappa Acquisitions (b):
7.25%, 11/15/17	EUR	735		1,075,125
7.75%, 11/15/19		700		1,033,588
				9,033,175
Diversified Consumer Services — 1.1%
Service Corp. International, 7.00%, 6/15/17	USD	4,425		4,712,625
Diversified Financial Services — 5.8%
Ally Financial, Inc.:
7.50%, 12/31/13		460		501,400
2.51%, 12/01/14 (i)		592		581,732
8.30%, 2/12/15		1,890		2,133,337
6.25%, 12/01/17 (b)		1,130		1,179,438
8.00%, 3/15/20		2,170		2,443,962
7.50%, 9/15/20 (b)		1,800		1,968,750
8.00%, 11/01/31		1,310		1,500,465
8.00%, 11/01/31		1,490		1,706,050
Axcan Intermediate Holdings, Inc., 12.75%, 3/01/16		665		733,163
FCE Bank Plc, 7.13%, 1/15/13	EUR	1,300		1,890,369
Leucadia National Corp., 8.13%, 9/15/15	USD	1,780		1,958,000
Reynolds Group DL Escrow, Inc., 7.75%, 10/15/16 (b)		1,945		2,071,425
Reynolds Group Issuer, Inc. (b):
7.75%, 10/15/16	EUR	550		804,515
7.13%, 4/15/19	USD	860		881,500
9.00%, 4/15/19		2,570		2,679,225
6.88%, 2/15/21		585		586,463
8.25%, 2/15/21		730		731,825
				24,351,619
Diversified Telecommunication Services — 4.1%
Broadview Networks Holdings, Inc., 11.38%, 9/01/12		1,530		1,524,262
Frontier Communications Corp.:
8.25%, 4/15/17		546		603,330
8.50%, 4/15/20		500		555,000
GCI, Inc., 8.63%, 11/15/19		1,700		1,870,000
ITC Deltacom, Inc., 10.50%, 4/01/16		530		581,675
Level 3 Communications, Inc., 6.50%, 10/01/16 (e)		410		585,275
Level 3 Financing, Inc.:
5.50%, 11/01/14		190		196,175
8.75%, 2/15/17		2,160		2,122,200

See Notes to Financial Statements.
36	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011

Schedule of Investments (continued) BlackRock Corporate High Yield Fund V, Inc. (HYV)
(Percentages shown are based on Net Assets)

Corporate Bonds	Par  (000)		Value
Diversified Telecommunication Services (concluded)
Qwest Communications International, Inc.:
7.50%, 2/15/14	USD	2,990	$	3,034,850
8.00%, 10/01/15		800		873,000
Series B, 7.50%, 2/15/14		2,285		2,319,275
Qwest Corp., 7.63%, 6/15/15		850		975,375
Windstream Corp.:
8.13%, 8/01/13		510		561,638
7.88%, 11/01/17		1,090		1,184,012
				16,986,067
Electronic Equipment, Instruments & Components — 0.7%
CDW LLC:
11.00%, 10/12/15		180		195,750
11.50%, 10/12/15 (c)		980		1,063,300
8.00%, 12/15/18 (b)		840		903,000
NXP BV, 3.05%, 10/15/13 (i)		770		766,150
				2,928,200
Energy Equipment & Services — 1.4%
Bayou Well Services, 0.16%, 12/22/13		950		950,000
Calfrac Holdings LP, 7.50%, 12/01/20 (b)		365		374,125
Compagnie Générale de Géophysique-Veritas:
7.50%, 5/15/15		1,455		1,505,925
7.75%, 5/15/17		365		385,988
Exterran Holdings, Inc., 7.25%, 12/01/18 (b)		655		671,375
Frac Tech Services LLC, 7.13%, 11/15/18 (b)		925		957,375
Precision Drilling Corp., 6.63%, 11/15/20 (b)		170		175,525
Thermon Industries, Inc., 9.50%, 5/01/17		810		876,825
				5,897,138
Food & Staples Retailing — 0.7%
AmeriQual Group LLC, 9.50%, 4/01/12 (b)		855		846,450
BI-LO LLC, 9.25%, 2/15/19 (b)		495		514,800
Rite Aid Corp.:
9.75%, 6/12/16		615		692,644
7.50%, 3/01/17		925		930,781
				2,984,675
Food Products — 0.7%
B&G Foods, Inc., 7.63%, 1/15/18		330		352,275
Blue Merger Sub, Inc., 7.63%, 2/15/19 (b)		1,560		1,575,600
Darling International, Inc., 8.50%, 12/15/18 (b)		360		388,350
Reddy Ice Corp., 11.25%, 3/15/15		650		682,500
Smithfield Foods, Inc., 10.00%, 7/15/14		102		120,360
				3,119,085
Health Care Equipment & Supplies — 1.4%
DJO Finance LLC, 10.88%, 11/15/14		3,630		3,979,388
Hologic, Inc., 2.86%, 12/15/37 (d)(e)		2,035		1,961,231
				5,940,619
Health Care Providers & Services — 5.6%
Aviv Healthcare Properties LP, 7.75%, 2/15/19 (b)		415		432,638
ConvaTec Healthcare E SA (b):
7.38%, 12/15/17	EUR	800		1,148,125
10.50%, 12/15/18	USD	710		757,925
DaVita, Inc., 6.38%, 11/01/18		590		598,112
Gentiva Health Services, Inc., 11.50%, 9/01/18		1,050		1,182,562
HCA, Inc.:
9.13%, 11/15/14		2,605		2,731,994
8.50%, 4/15/19		1,505		1,685,600
7.25%, 9/15/20		3,430		3,700,112

Corporate Bonds	Par  (000)		Value
Health Care Providers & Services (concluded)
inVentiv Health, Inc., 10.00%, 8/15/18 (b)	USD	970	$	996,675
Omnicare, Inc.:
6.13%, 6/01/13		266		266,998
6.88%, 12/15/15		685		707,262
7.75%, 6/01/20		930		992,775
Priory Group Ltd., 7.00%, 2/15/18	GBP	209		348,254
Tenet Healthcare Corp.:
9.00%, 5/01/15	USD	1,952		2,147,200
10.00%, 5/01/18		662		777,850
8.88%, 7/01/19		4,400		5,005,000
				23,479,082
Health Care Technology — 1.1%
IMS Health, Inc., 12.50%, 3/01/18 (b)		3,550		4,162,375
MedAssets, Inc., 8.00%, 11/15/18 (b)		245		251,738
				4,414,113
Hotels, Restaurants & Leisure — 3.7%
Boyd Gaming Corp., 9.13%, 12/01/18 (b)		925		971,250
Caesars Entertainment Operating Co., Inc., 10.00%, 12/15/18		5,580		5,245,200
Cirsa Funding Luxembourg SA, 8.75%, 5/15/18	EUR	79		113,377
CityCenter Holdings LLC, 7.63%, 1/15/16 (b)	USD	505		526,463
Diamond Resorts Corp., 12.00%, 8/15/18 (b)		1,770		1,898,325
Enterprise Inns Plc, 6.50%, 12/06/18	GBP	625		922,046
Harrah’s Operating Co., Inc., 11.25%, 6/01/17	USD	970		1,100,950
Inn of the Mountain Gods Resort & Casino (b):
1.25%, 11/30/20 (c)		1,653		859,560
8.75%, 11/30/20		735		698,250
Little Traverse Bay Bands, 9.00%, 8/31/20 (b)		548		452,100
MGM Resorts International:
10.38%, 5/15/14		395		442,400
11.13%, 11/15/17		1,220		1,406,050
Palace Entertainment Holding LLC, 8.88%, 4/15/17 (b)		180		183,600
Travelport LLC:
4.94%, 9/01/14 (i)		210		187,425
9.88%, 9/01/14		280		273,350
9.00%, 3/01/16		180		170,100
Tropicana Entertainment LLC, Series WI, 9.63%, 12/15/14 (a)(h)		475		48
				15,450,494
Household Durables — 4.0%
American Standard Americas, 10.75%, 1/15/16 (b)		600		637,500
Ashton Woods USA LLC, 21.57%, 6/30/15 (b)(d)		1,300		845,000
Beazer Homes USA, Inc.:
8.13%, 6/15/16		470		477,638
12.00%, 10/15/17		1,960		2,278,500
9.13%, 6/15/18		2,615		2,699,987
Jarden Corp., 7.50%, 1/15/20	EUR	447		643,057
K. Hovnanian Enterprises, Inc., 10.63%, 10/15/16	USD	2,560		2,774,400
Ryland Group, Inc., 6.63%, 5/01/20		1,000		980,000
Standard Pacific Corp.:
10.75%, 9/15/16		2,210		2,596,750
8.38%, 5/15/18		650		689,000
8.38%, 5/15/18 (b)		710		752,600
8.38%, 1/15/21 (b)		1,155		1,218,525
				16,592,957
IT Services — 1.8%
First Data Corp. (b):
8.88%, 8/15/20		1,890		2,069,550
8.25%, 1/15/21		2,626		2,612,870
12.63%, 1/15/21		1,070		1,120,825
SunGard Data Systems, Inc. (b):
7.38%, 11/15/18		700		722,750
7.63%, 11/15/20		880		908,600
				7,434,595

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	37

Schedule of Investments (continued) BlackRock Corporate High Yield Fund V, Inc. (HYV)
(Percentages shown are based on Net Assets)

Corporate Bonds	Par  (000)		Value
Independent Power Producers & Energy Traders — 3.2%
Calpine Construction Finance Co. LP, 8.00%, 6/01/16 (b)	USD	1,875	$	2,034,375
Calpine Corp. (b):
7.50%, 2/15/21		700		715,750
7.88%, 1/15/23		950		976,125
Energy Future Holdings Corp., 10.00%, 1/15/20 (b)		4,955		5,159,899
Energy Future Intermediate Holding Co. LLC, 10.00%, 12/01/20		253		264,095
NRG Energy, Inc., 7.63%, 1/15/18 (b)		4,060		4,227,475
				13,377,719
Industrial Conglomerates — 2.5%
Sequa Corp. (b):
11.75%, 12/01/15		3,550		3,851,750
13.50%, 12/01/15 (c)		5,797		6,419,931
				10,271,681
Insurance — 1.0%
Alliant Holdings I, Inc., 11.00%, 5/01/15 (b)		2,500		2,643,750
CNO Financial Group, Inc., 9.00%, 1/15/18 (b)		508		541,020
USI Holdings Corp., 4.16%, 11/15/14 (b)(i)		1,000		965,000
				4,149,770
Machinery — 1.9%
AGY Holding Corp., 11.00%, 11/15/14		1,640		1,459,600
Navistar International Corp.:
3.00%, 10/15/14 (e)		2,720		3,801,200
8.25%, 11/01/21		880		974,600
Oshkosh Corp., 8.25%, 3/01/17		150		166,500
Titan International, Inc. (b):
5.63%, 1/15/17 (e)		360		937,800
7.88%, 10/01/17		685		732,950
				8,072,650
Marine — 0.7%
Horizon Lines, Inc., 4.25%, 8/15/12 (e)		3,130		2,903,075
Media — 12.8%
AMC Entertainment Holdings, Inc., 9.75%, 12/01/20 (b)		755		809,737
Affinion Group, Inc., 7.88%, 12/15/18 (b)		845		809,087
CCH II LLC, 13.50%, 11/30/16		539		652,903
CCO Holdings LLC:
7.88%, 4/30/18		700		747,250
8.13%, 4/30/20		700		755,125
CMP Susquehanna Corp., 3.44%, 5/15/14 (b)		236		166,361
CSC Holdings, Inc., 8.50%, 4/15/14		580		649,600
Catalina Marketing Corp., 10.50%, 10/01/15 (b)(c)		885		958,012
Cengage Learning Acquisitions, Inc., 10.50%, 1/15/15 (b)		2,175		2,256,562
Checkout Holding Corp., 10.98%, 11/15/15 (b)(f)		1,300		838,500
Citadel Broadcasting Corp., 7.75%, 12/15/18 (b)		380		407,550
Clear Channel Communications, Inc., 9.00%, 3/01/21 (b)		375		381,094
Clear Channel Worldwide Holdings, Inc.:
9.25%, 12/15/17		2,246		2,493,060
Series B, 9.25%, 12/15/17		8,250		9,178,125
Cox Enterprises, Inc.:
Loan Close 2, 4.00%, 8/15/18		988		987,796
Loan Close 3, 12.00%, 8/15/18		1,129		1,129,333
Shares Loan, 4.00%, 8/15/18		1,165		1,164,740
DISH DBS Corp., 7.00%, 10/01/13		140		150,500
Gray Television, Inc., 10.50%, 6/29/15		1,420		1,508,750
Harland Clarke Holdings Corp.:
6.00%, 5/15/15 (i)		510		457,725
9.50%, 5/15/15		620		609,150

Corporate Bonds	Par  (000)		Value
Media (concluded)
Interactive Data Corp., 10.25%, 8/01/18 (b)	USD	1,525	$	1,708,000
Liberty Global, Inc., 4.50%, 11/15/16 (e)		580		1,004,850
Liberty Media Corp., 3.13%, 3/30/23 (e)		1,616		1,991,720
Live Nation Entertainment, Inc., 8.13%, 5/15/18 (b)		1,235		1,272,050
NAI Entertainment Holdings LLC, 8.25%, 12/15/17 (b)		810		870,750
Nielsen Finance LLC:
11.63%, 2/01/14		91		106,925
7.75%, 10/15/18 (b)		3,340		3,611,375
ProQuest LLC, 9.00%, 10/15/18 (b)		745		771,075
Rainbow National Services LLC (b):
8.75%, 9/01/12		650		652,438
10.38%, 9/01/14		2,432		2,532,320
Regal Entertainment Group, 9.13%, 8/15/18		585		625,950
UPC Germany GmbH (b):
8.13%, 12/01/17	EUR	662		983,189
8.13%, 12/01/17	USD	1,035		1,110,037
9.63%, 12/01/19	EUR	845		1,324,940
UPC Holding BV, 9.88%, 4/15/18 (b)	USD	800		888,000
UPCB Finance II Ltd., 6.38%, 7/01/20	EUR	1,218		1,659,732
Unitymedia GmbH, 9.63%, 12/01/19		235		368,475
Univision Communications, Inc., 7.88%, 11/01/20 (b)	USD	685		734,662
Virgin Media Secured Finance Plc, 7.00%, 1/15/18	GBP	877		1,536,183
Ziggo Bond Co. BV, 8.00%, 5/15/18 (b)	EUR	583		862,843
Ziggo Finance BV, 6.13%, 11/15/17 (b)		1,185		1,672,043
				53,398,517
Metals & Mining — 4.2%
Drummond Co., Inc.:
9.00%, 10/15/14 (b)	USD	850		907,375
7.38%, 2/15/16		335		346,725
FMG Resources August 2006 Property Ltd., 7.00%, 11/01/15 (b)		2,240		2,324,000
Foundation PA Coal Co., 7.25%, 8/01/14		2,925		2,983,500
Goldcorp, Inc., 2.00%, 8/01/14 (e)		890		1,120,287
New World Resources NV, 7.88%, 5/01/18	EUR	990		1,468,620
Newmont Mining Corp., Series A, 1.25%, 7/15/14 (e)	USD	630		840,262
Novelis, Inc., 8.75%, 12/15/20 (b)		5,230		5,766,075
Ryerson, Inc.:
7.66%, 11/01/14 (i)		600		576,000
12.00%, 11/01/15		400		430,000
Steel Dynamics, Inc., 7.38%, 11/01/12		310		329,375
Vedanta Resources Plc, 9.50%, 7/18/18 (b)		305		336,263
				17,428,482
Multiline Retail — 1.8%
Dollar General Corp., 11.88%, 7/15/17 (c)		6,421		7,424,281
Oil, Gas & Consumable Fuels — 7.4%
Arch Coal, Inc., 7.25%, 10/01/20		1,270		1,349,375
Berry Petroleum Co., 8.25%, 11/01/16		750		792,188
Bill Barrett Corp., 9.88%, 7/15/16		70		78,400
Carrizo Oil & Gas, Inc., 8.63%, 10/15/18 (b)		340		361,250
Chaparral Energy, Inc., 8.25%, 9/01/21 (b)		375		381,563
Chesapeake Energy Corp.:
6.63%, 8/15/20		2,345		2,462,250
6.13%, 2/15/21		1,405		1,433,100
2.25%, 12/15/38 (e)		1,200		1,098,000
Coffeyville Resources LLC, 9.00%, 4/01/15 (b)		392		427,280
Concho Resources, Inc., 7.00%, 1/15/21		610		638,975
Connacher Oil and Gas Ltd. (b):
11.75%, 7/15/14		260		281,450
10.25%, 12/15/15		1,695		1,792,462

See Notes to Financial Statements.
38	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011

Schedule of Investments (continued) BlackRock Corporate High Yield Fund V, Inc. (HYV)
(Percentages shown are based on Net Assets)

Corporate Bonds	Par  (000)		Value
Oil, Gas & Consumable Fuels (concluded)
Consol Energy, Inc., 8.25%, 4/01/20	USD	2,935	$	3,235,837
Continental Resources, Inc., 7.13%, 4/01/21 (b)		545		580,425
Crosstex Energy LP, 8.88%, 2/15/18		265		292,163
Denbury Resources, Inc.:
8.25%, 2/15/20		1,025		1,140,312
6.38%, 8/15/21		520		525,200
Energy Transfer Equity LP, 7.50%, 10/15/20		195		211,331
Energy XXI Gulf Coast, Inc. (b):
9.25%, 12/15/17		630		677,250
7.75%, 6/15/19		785		792,850
Hilcorp Energy I LP, 7.63%, 4/15/21 (b)		1,150		1,213,250
Linn Energy LLC (b):
8.63%, 4/15/20		1,630		1,817,450
7.75%, 2/01/21		880		935,000
MarkWest Energy Partners LP, 6.75%, 11/01/20		385		394,625
Niska Gas Storage US LLC, 8.88%, 3/15/18 (b)		2,775		3,024,750
Oasis Petroleum, Inc., 7.25%, 2/01/19 (b)		335		340,025
Peabody Energy Corp., 6.50%, 9/15/20		755		807,850
Petrohawk Energy Corp.:
10.50%, 8/01/14		555		638,250
7.88%, 6/01/15		695		736,700
Range Resources Corp., 8.00%, 5/15/19		600		660,750
SM Energy Co., 6.63%, 2/15/19 (b)		425		429,781
Teekay Corp., 8.50%, 1/15/20		970		1,043,963
United Refining Co., 10.50%, 2/28/18 (b)(g)		360		356,400
				30,950,455
Paper & Forest Products — 3.0%
Ainsworth Lumber Co. Ltd., 11.00%, 7/29/15 (b)(c)		1,728		1,754,061
Boise Paper Holdings LLC:
9.00%, 11/01/17		495		551,925
8.00%, 4/01/20		240		264,600
Clearwater Paper Corp.:
10.63%, 6/15/16		585		668,363
7.13%, 11/01/18 (b)		865		897,438
Georgia-Pacific LLC, 8.25%, 5/01/16 (b)		2,395		2,700,362
NewPage Corp., 11.38%, 12/31/14		4,050		4,039,875
Verso Paper Holdings LLC:
11.50%, 7/01/14		1,265		1,394,662
8.75%, 2/01/19 (b)		345		360,525
				12,631,811
Pharmaceuticals — 0.8%
Angiotech Pharmaceuticals, Inc., 4.06%, 12/01/13 (i)		1,365		1,146,600
Grifols, Inc., 8.25%, 2/01/18 (b)		195		200,363
Novasep Holding SAS, 9.63%, 12/15/16 (b)	EUR	784		876,328
Valeant Pharmaceuticals International (b):
6.75%, 10/01/17	USD	560		579,600
7.00%, 10/01/20		715		739,131
				3,542,022
Professional Services — 0.3%
FTI Consulting, Inc., 6.75%, 10/01/20 (b)		1,370		1,370,000
Real Estate Investment Trusts (REITs) — 0.4%
Omega Healthcare Investors, Inc., 6.75%, 10/15/22 (b)		790		797,900
The Rouse Co. LP, 6.75%, 11/09/15		770		806,575
				1,604,475

Corporate Bonds	Par  (000)		Value
Real Estate Management & Development — 1.9%
CB Richard Ellis Services, Inc., 6.63%, 10/15/20	USD	500	$	515,625
Forest City Enterprises, Inc., 7.63%, 6/01/15		2,300		2,231,000
Realogy Corp. (b):
11.50%, 4/15/17		1,170		1,246,050
7.88%, 2/15/19		3,855		3,869,456
				7,862,131
Road & Rail — 2.1%
Avis Budget Car Rental LLC:
9.63%, 3/15/18		760		849,300
8.25%, 1/15/19		1,150		1,220,437
Florida East Coast Railway Corp., 8.13%, 2/01/17 (b)		610		637,450
The Hertz Corp. (b):
7.50%, 10/15/18		960		1,016,400
6.75%, 4/15/19		660		673,200
7.38%, 1/15/21		730		762,850
Hertz Holdings Netherlands BV, 8.50%, 7/31/15 (b)	EUR	1,975		2,963,890
Syncreon Global Ireland Ltd., 9.50%, 5/01/18 (b)	USD	540		560,250
				8,683,777
Semiconductors & Semiconductor Equipment — 0.3%
Linear Technology Corp., Series A, 3.00%, 5/01/27 (e)		655		713,131
Spansion LLC, 7.88%, 11/15/17 (b)		420		428,400
				1,141,531
Specialty Retail — 1.6%
Asbury Automotive Group, Inc., 8.38%, 11/15/20 (b)		490		514,500
Claire’s Escrow Corp., 8.88%, 3/15/19 (b)(g)		480		481,800
Hillman Group, Inc., 10.88%, 6/01/18		790		869,000
Limited Brands, Inc., 8.50%, 6/15/19		1,170		1,339,650
PETCO Animal Supplies, Inc., 9.25%, 12/01/18 (b)		675		729,000
Sonic Automotive, Inc., 9.00%, 3/15/18		550		588,500
Toys ‘R’ US-Delaware, Inc., 7.38%, 9/01/16 (b)		630		663,863
United Auto Group, Inc., 7.75%, 12/15/16		1,550		1,600,375
				6,786,688
Thrifts & Mortgage Finance — 0.2%
Radian Group, Inc., 3.00%, 11/15/17 (e)		740		699,300
Transportation Infrastructure — 0.2%
Aguila 3 SA, 7.88%, 1/31/18 (b)		632		655,700
Wireless Telecommunication Services — 4.5%
Clearwire Communications LLC (b):
12.00%, 12/01/15		730		795,700
12.00%, 12/01/17		1,670		1,803,600
Cricket Communications, Inc.:
10.00%, 7/15/15		1,120		1,234,800
7.75%, 5/15/16		1,140		1,205,550
Digicel Group Ltd. (b):
8.88%, 1/15/15		1,030		1,071,200
9.13%, 1/15/15 (c)		2,787		2,902,660
8.25%, 9/01/17		1,650		1,724,250
10.50%, 4/15/18		800		912,000
FiberTower Corp., 9.00%, 1/01/16 (c)		503		437,711
iPCS, Inc., 2.43%, 5/01/13 (i)		1,200		1,185,000
Intelsat Jackson Holdings SA, 7.25%, 10/15/20 (b)		500		513,750
MetroPCS Wireless, Inc.:
7.88%, 9/01/18		770		813,313
6.63%, 11/15/20		1,140		1,110,075
NII Holdings, Inc., 3.13%, 6/15/12 (e)		550		547,250
Sprint Capital Corp., 6.88%, 11/15/28		2,290		2,063,862
Syniverse Holdings, Inc., 9.13%, 1/15/19 (b)		380		410,400
				18,731,121
Total Corporate Bonds — 102.9%				428,629,325

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	39

Schedule of Investments (continued) BlackRock Corporate High Yield Fund V, Inc. (HYV)
(Percentages shown are based on Net Assets)

Floating Rate Loan Interests (i)	Par  (000)		Value
Building Products — 0.3%
Goodman Global, Inc., Term Loan (Second Lien), 9.00%, 10/13/17	USD	1,175	$	1,210,984
Capital Markets — 0.1%
Marsico Parent Co., LLC, Term Loan, 5.31%, 12/15/14		755		613,494
Chemicals — 0.3%
PQ Corp. (FKA Niagara Acquisition, Inc.), Term Loan (First Lien), 3.52% – 3.56%, 7/30/14		449		441,749
Styron Sarl, Term Loan B, 6.00%, 7/27/17		1,000		1,009,000
				1,450,749
Commercial Services & Supplies — 0.8%
AWAS Finance Luxembourg Sarl, Term Loan B, 7.75%, 6/10/16		770		790,694
Delos Aircraft, Inc., Term Loan 2, 7.00%, 3/17/16		875		882,499
Volume Services America, Inc. (Centerplate), Term Loan B, 10.50% – 10.75%, 8/24/16		1,496		1,510,584
				3,183,777
Construction & Engineering — 0.7%
Safway Services, LLC, Last Out Term Loan, 15.63%, 12/14/17		3,000		3,000,000
Consumer Finance — 1.5%
Springleaf Financial Funding Co. (FKA AGFS Funding Co.), Term Loan, 7.25%, 4/21/15		6,000		6,053,400
Electric Utilities — 0.1%
New Development Holdings LLC, Term Loan, 7.00%, 7/03/17		209		211,321
Food Products — 0.3%
Advance Pierre Foods, Term Loan, 11.25%, 9/29/17		1,300		1,332,500
Health Care Providers & Services — 0.7%
Harden Healthcare, Inc.:
Tranche A Additional Term Loan, 7.75%, 3/02/15		760		744,800
Tranche A Term Loan, 8.50%, 2/22/15		630		617,556
inVentiv Health, Inc. (FKA Ventive Health, Inc.), Term Loan B, 4.75%, 7/31/16		1,393		1,399,094
				2,761,450
Hotels, Restaurants & Leisure — 0.8%
Harrah’s Operating Co., Inc., Term Loan B-3, 3.30%, 1/28/15		625		580,295
Travelport LLC (FKA Travelport, Inc.), Loan, 8.31%, 3/27/12 (c)		3,095		2,761,909
				3,342,204
Household Durables — 0.7%
Visant Corp. (FKA Jostens), Term Loan B, 7.00%, 12/20/16		1,496		1,509,641
Visant Holding Corp. Term Loan, 4.31%, 12/22/16		1,500		1,500,000
				3,009,641
IT Services — 0.5%
First Data Corp.:
Initial Tranche B-1 Term Loan, 3.01%, 9/24/14		254		240,882
Initial Tranche B-2 Term Loan, 3.01%, 9/24/14		608		576,064
Initial Tranche B-3 Term Loan, 3.01%, 9/24/14		1,119		1,059,193
				1,876,139

Floating Rate Loan Interests (i)	Par  (000)		Value
Independent Power Producers & Energy Traders — 1.0%
Texas Competitive Electric Holdings Co., LLC (TXU):
Initial Tranche B-1 Term Loan, 3.76% – 3.80%, 10/10/14	USD	321	$	270,421
Initial Tranche B-2 Term Loan, 3.76% – 3.80%, 10/10/14		313		263,372
Initial Tranche B-3 Term Loan, 3.76% – 3.80%, 10/10/14		4,233		3,558,478
				4,092,271
Media — 4.0%
Cengage Learning Acquisitions, Inc. (Thomson Learning), Tranche 1 Incremental Term Loan, 7.50%, 7/03/14		2,438		2,448,469
HMH Publishing Co., Ltd., Tranche A Term Loan, 6.01%, 6/12/14		1,371		1,301,692
Intelsat Jackson Holdings Ltd., Term Loan B, 5.25%, 3/07/18		10,750		10,822,229
Newsday, LLC, Fixed Rate Term Loan, 10.50%, 8/01/13		2,150		2,285,719
				16,858,109
Metals & Mining — 0.1%
Euramax International, Inc., Domestic Term Loan:
10.00%, 6/29/13		258		248,803
14.00%, 6/29/13		248		238,839
				487,642
Multiline Retail — 0.4%
Hema Holding BV, Mezzanine, 4.41% – 5.00%, 1/29/17 (c)	EUR	1,338		1,808,986
Oil, Gas & Consumable Fuels — 1.2%
Obsidian Natural Gas Trust, Term Loan, 7.00%, 11/30/15	USD	3,453		3,539,449
Turbo Beta Ltd., Dollar Facility, 2.50% – 12.00%, 3/15/18 (c)		3,527		1,446,152
				4,985,601
Paper & Forest Products — 0.4%
Verso Paper Finance Holdings LLC, 7.30%, 2/01/13		2,020		1,818,170
Pharmaceuticals — 0.2%
Axcan Pharma, Inc., Term Loan, 0.50% – 5.50%, 2/03/17		1,000		1,002,500
Real Estate Investment Trusts (REITs) — 0.1%
iStar Financial, Inc., Term Loan (Second Lien), 6/28/11		350		345,187
Real Estate Management & Development — 0.3%
Realogy Corp.:
Term Loan B, 4.56% – 6.50%, 10/16/16		1,084		1,039,930
Term Loan C, 0.11% – 4.40%, 10/16/16		196		188,120
				1,228,050
Specialty Retail — 0.2%
Claire’s Stores, Inc., Term Loan B, 3.01% – 5.00%, 5/29/14		215		209,544
Michaels Stores, Inc., Term Loan B-1, 2.56% – 2.63%, 10/31/13		486		484,218
				693,762
Wireless Telecommunication Services — 0.7%
Vodafone Americas Finance 2, Inc., Initial Loan, 6.88%, 7/30/15		2,847		2,946,808
Total Floating Rate Loan Interests — 15.4%				64,312,745

See Notes to Financial Statements.
40	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011

Schedule of Investments (continued) BlackRock Corporate High Yield Fund V, Inc. (HYV)
(Percentages shown are based on Net Assets)

Other Interests (j)	Beneficial Interest (000)		Value
Auto Components — 2.5%
Delphi Debtor-in-Possession Holding Co. LLP, Class B Membership Interests	USD	1	$	10,484,987
Lear Corp. Escrow		790		21,725
				10,506,712
Hotels, Restaurants & Leisure — 0.0%
Buffets, Inc.		970		10
Media — 0.0%
Adelphia Escrow		1,250		12
Adelphia Recovery Trust		1,568		157
				169
Total Other Interests — 2.5%				10,506,891

Preferred Stocks	Shares
Auto Components — 0.7%
Dana Holding Corp., 4.00% (b)(e)		18,800	3,085,550
Automobiles — 0.8%
General Motors Co., 4.75% (a)		68,700	3,495,456
Diversified Financial Services — 0.8%
Citigroup, Inc., 7.50% (e)		24,500	3,295,250
Household Durables — 0.1%
Beazer Homes USA, Inc., 7.50% (e)		17,226	429,789
Media — 0.2%
CMP Susquehanna Radio Holdings Corp., 0.00% (a)(b)		55,038	1
TRA Global, Inc., 0.00% (a)		420,689	679,833
			679,834
Professional Services — 0.1%
Nielsen Holdings NV, 6.25% (a)(e)		6,584	363,355
Real Estate Investment Trusts (REITs) — 0.1%
MPG Office Trust, Inc., Series A, 7.63% (a)		13,326	247,197
Thrifts & Mortgage Finance — 0.1%
Fannie Mae, Series O, 0.00% (a)		40,000	128,000
Freddie Mac, Series Z, 8.38% (a)		108,377	210,251
			338,251
Total Preferred Stocks — 2.9%			11,934,682

Warrants (k)
Containers & Packaging — 0.0%
MDP Acquisitions Plc (Expires 10/01/13)	1,100	70,991
Health Care Providers & Services — 0.0%
HealthSouth Corp. (Expires 1/16/14)	52,465	1
Hotels, Restaurants & Leisure — 0.0%
Buffets Restaurants Holdings, Inc. (Expires 4/29/14)	819	8
Media — 0.0%
CMP Susquehanna Radio Holdings Corp. (Expires 3/26/19) (b)	62,894	1
New Vision Holdings LLC (Expires 9/30/14)	4	40
New Vision Holdings LLC (Expires 9/30/14)	22	222
		263

Warrants (k)	Shares		Value
Oil, Gas & Consumable Fuels — 0.0%
Turbo Cayman Ltd. (No Expiration)	2		—
Software — 0.0%
Bankruptcy Management Solutions, Inc. (Expires 9/29/17)	491	$	5
HMH Holdings/EduMedia (Expires 3/09/17)	20,878		—
			5
Total Warrants — 0.0%			71,268
Total Long-Term Investments (Cost — $512,793,951) — 129.4%			539,227,737

Short-Term Securities
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.15% (l)(m)	1,708,712		1,708,712
Total Short-Term Securities (Cost — $1,708,712) — 0.4%			1,708,712
Total Investments (Cost — $514,502,663*) — 129.8%			540,936,449
Liabilities in Excess of Other Assets — (29.8)%			(124,241,865	)
Net Assets — 100.0%		$	416,694,584

* The cost and unrealized appreciation (depreciation) of investments as of February 28, 2011, as computed for federal income tax purposes were as follows:

Aggregate cost	$	515,890,877
Gross unrealized appreciation	$	42,092,541
Gross unrealized depreciation		(17,046,969	)
Net unrealized appreciation	$	25,045,572

(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)	Represents a payment-in-kind security which may pay interest/dividends in additional par/shares.
(d)	Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown reflects the current yield as of report date.
(e)	Convertible security.
(f)	Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(g)	When-issued security. Unsettled when-issued transactions were as follows:

Counterparty	Value		Unrealized Appreciation
Banc of America NA	$	198,413	$	2,278
Credit Suisse International	$	838,200	$	11,002
Sterne Agee	$	81,400	$	934

(h)	Issuer filed for bankruptcy and/or is in default of interest payments.
(i)	Variable rate security. Rate shown is as of report date.
(j)	Other interests represent beneficial interest in liquidation trusts and other reorganization entities and are non-income producing.
(k)	Warrants entitle the Trust to purchase a predetermined number of shares of common stock and are non-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date, if any.

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	41

Schedule of Investments (continued) BlackRock Corporate High Yield Fund V, Inc. (HYV)

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

Affiliate	Shares Held at August 31, 2010		Net Activity		Shares Held at February 28, 2011		Income
BlackRock Liquidity Funds, TempFund, Institutional Class		2,725,924		(1,017,212)		1,708,712	$	2,318

(m)	Represents the current yield as of report date.
•	For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by Trust management. This definition may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.
•	Financial futures contracts sold as of February 28, 2011 were as follows:

Contracts	Issue	Exchange	Expiration		Notional Value		Unrealized Depreciation
158	E-mini S&P 500	Chicago Mercantile	March 2011	$	10,036,115	$	(440,075	)

• Credit default swaps on single-name issues — buy protection outstanding as of February 28, 2011 were as follows:

Issuer	Pay Fixed Rate	Counterparty	Expiration	Notional Amount (000)		Unrealized Depreciation
K. Hovnanian Enterprises, Inc.	5.00%	Goldman Sachs International	12/20/11	$	755	$	(34,429	)
K. Hovnanian Enterprises, Inc.	5.00%	Goldman Sachs Bank USA	12/20/13	$	1,475		(125,466	)
Louisiana-Pacific Corp.	5.00%	JPMorgan Chase Bank NA	3/20/14	$	1,000		(228,385	)
Harrah’s Operating Co., Inc.	5.00%	Deutsche Bank AG	12/20/15	$	1,900		(265,072	)
Republic of Hungary	1.00%	Deutsche Bank AG	12/20/15	$	450		(8,158	)
Israel (State of)	1.00%	Deutsche Bank AG	3/20/16	$	1,000		(3,843	)
iStar Financial, Inc.	5.00%	Deutsche Bank AG	12/20/16	$	350		(69,478	)
Total						$	(734,831	)

• Credit default swaps on single-name issues — sold protection outstanding as of February 28, 2011 were as follows:

Issuer	Receive Fixed Rate	Counterparty	Expiration Date	Issuer Credit Rating1	Notional Amount (000)2		Unrealized Appreciation (Depreciation)
iStar Financial, Inc.	5.00%	Deutsche Bank AG	9/20/11	CCC–	$	350	$	37,448
MBIA Insurance Corp.	5.00%	Deutsche Bank AG	3/20/12	B–	$	175		15,688
Texas Competitive Electric Holdings Co. LLC	5.00%	Goldman Sachs International	9/20/12	D	$	750		(75,717	)
MBIA Insurance Corp.	5.00%	Deutsche Bank AG	12/20/12	B–	$	1,060		114,600
Advanced Micro Devices, Inc.	5.00%	JPMorgan Chase Bank NA	3/20/15	B+	$	700		85,150
Realogy Corp.	5.00%	JPMorgan Chase Bank NA	9/20/15	CC	$	200		30,606
Assured Guaranty Ltd.	5.00%	Deutsche Bank AG	12/20/15	A+	$	100		782
D.R. Horton, Inc.	1.00%	JPMorgan Chase Bank NA	12/20/15	BB–	$	450		13,845
M.D.C. Holdings, Inc.	1.00%	Deutsche Bank AG	12/20/15	BBB–	$	510		4,893
M.D.C. Holdings, Inc.	1.00%	JPMorgan Chase Bank NA	12/20/15	BBB–	$	510		2,764
Realogy Corp.	5.00%	JPMorgan Chase Bank NA	12/20/15	CC	$	1,125		63,108
ARAMARK Corp.	5.00%	Goldman Sachs International	3/20/16	B	$	750		(1,360	)
Chesapeake Energy Corp.	5.00%	Credit Suisse International	3/20/16	BB	$	400		7,499
Chesapeake Energy Corp.	5.00%	Goldman Sachs International	3/20/16	BB	$	400		4,449
Chesapeake Energy Corp.	5.00%	JPMorgan Chase Bank NA	3/20/16	BB	$	400		7,499
Realogy Corp.	5.00%	JPMorgan Chase Bank NA	3/20/16	CC	$	225		946
General Motors Co.	5.00%	Deutsche Bank AG	3/20/21	BB–	$	600		(1,503	)
Total							$	310,697

1	Using Standard and Poor’s rating.
2	The maximum potential amount the Trust may pay should a negative event take place as defined under the terms of agreement.

See Notes to Financial Statements.
42	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011

Schedule of Investments (continued) BlackRock Corporate High Yield Fund V, Inc. (HYV)

• Credit default swaps on traded indexes — sold protection outstanding as of February 28, 2011 were as follows:

Index	Receive Fixed Rate	Counterparty	Expiration Date	Credit Rating1	Notional Amount (000)2		Unrealized Depreciation
Dow Jones CDX North America High Yield Index Series 10	0.00%	Deutsche Bank AG	6/20/11	CCC	$	1,066	$	(8,217	)
Dow Jones CDX North America High Yield Index Series 9	0.00%	Deutsche Bank AG	12/20/12	CCC	$	822		(31,787	)
Dow Jones CDX North America High Yield Index Series 15	5.00%	Credit Suisse International	12/20/15	B	$	2,950		(9,424	)
Total							$	(49,428	)

1	Using Standard and Poor’s rating of the underlying securities.
2	The maximum potential amount the Trust may pay should a negative event take place as defined under the terms of agreement.

• Foreign currency exchange contracts as of February 28, 2011 were as follows:

Currency Purchased		Currency Sold		Counterparty	Settlement Date	Unrealized Appreciation (Depreciation)
USD	587,989	CAD	583,000	Citibank NA	4/14/11	$	(11,490	)
USD	1,245,434	GBP	788,500	Citibank NA	4/14/11		(35,857	)
USD	1,226,071	GBP	763,000	Deutsche Bank AG	4/14/11		(13,783	)
USD	88,511	GBP	55,000	Royal Bank of Scotland Plc	4/14/11		(863	)
USD	372,564	GBP	232,000	UBS AG	4/14/11		(4,430	)
EUR	71,000	USD	97,839	Citibank NA	4/27/11		67
USD	19,897,306	EUR	14,539,500	Citibank NA	4/27/11		(152,089	)
USD	767,085	EUR	568,000	Deutsche Bank AG	4/27/11		(16,164	)
USD	2,615,558	EUR	1,910,000	Royal Bank of Scotland Plc	4/27/11		(18,257	)
Total						$	(252,866	)

•	Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivatives. These inputs are summarized in three broad levels for financial statement purposes as follows:
	•	Level 1 — price quotations in active markets/exchanges for identical assets and liabilities
	•	Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
	•	Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments and derivatives)
	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 Trust’s policy regarding valuation of investments and derivatives 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 February 28, 2011 in determining the fair valuation of the Trust’s investments and derivatives:

Valuation Inputs	Level 1		Level 2		Level 3			Total
Assets:
Investments in Securities:
Common Stocks	$	22,010,893	$	692,258	$	1,069,675		$	23,772,826
Corporate Bonds		—		420,263,251		8,366,074			428,629,325
Floating Rate Loan Interests		—		48,867,310		15,445,435			64,312,745
Other Interests		157		10,484,987		21,747			10,506,891
Preferred Stocks		7,677,943		3,576,905		679,834			11,934,682
Warrants		—		70,991		277			71,268
Short-Term Securities		1,708,712		—		—			1,708,712
Unfunded Loan Commitments		—		1,563		—			1,563
Liabilities:
Unfunded Loan Commitments		—		—		(38,321	)		(38,321	)
Total	$	31,397,705	$	483,957,265	$	25,544,721		$	540,899,691

	Derivative Financial Instruments1
Valuation Inputs	Level 1			Level 2			Level 3		Total
Assets:
Credit contracts		—		$	389,277			—	$	389,277
Foreign currency exchange contracts		—			67			—		67
Liabilities:
Credit contracts		—			(862,839	)		—		(862,839	)
Foreign currency exchange contracts		—			(252,933	)		—		(252,933	)
Interest rate contracts	$	(440,075	)		—			—		(440,075	)
Total	$	(440,075	)	$	(726,428	)		—	$	(1,166,503	)

¹ Derivative financial instruments are swaps, financial futures contracts, foreign currency exchange contracts and options. Swaps, financial futures contracts and foreign currency exchange contracts are shown at the unrealized appreciation/ depreciation on the instrument and options are shown at value.

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	43

Schedule of Investments (concluded) BlackRock Corporate High Yield Fund V, Inc. (HYV)

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

	Common Stocks		Corporate Bonds			Floating Rate Loan Interests			Other Interests		Preferred Stocks		Warrants			Unfunded Loan Commitments (Liabilities)			Total
Assets/Liabilities:
Balance, as of August 31, 2010	$	1,056,339	$	7,015,576		$	21,875,386		$	16,367	$	679,708	$	49,708		$	(70,023	)	$	30,623,061
Accrued discounts/premiums		—		436,843			734,165			—		—		—			—			1,171,008
Net realized gain (loss)		—		15,033			49,238			—		—		—			—			64,271
Net change in unrealized appreciation/depreciation2		13,336		(231,373	)		6,129,124			5,380		126		21,554			31,702			5,969,849
Purchases		—		1,462,895			7,612,215			—		—		6			—			9,075,116
Sales		—		(166,539	)		(14,590,337	)		—		—		—			—			(14,756,876	)
Transfers in3		—		—			1,446,152			—		—		—			—			1,446,152
Transfers out3		—		(166,361	)		(7,810,508	)		—		—		(70,991	)		—			(8,047,860	)
Balance as of February 28, 2011	$	1,069,675	$	8,366,074		$	15,445,435		$	21,747	$	679,834	$	277		$	(38,321	)	$	25,544,721

2	Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations. The net change in the unrealized appreciation/depreciation on the securities still held on February 28, 2011 was $5,947,885.
3	The Trust’s policy is to recognize transfers in and transfers out as of the end of the period of the event or the change in circumstances that caused the transfer.

See Notes to Financial Statements.
44	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011

Schedule of Investments February 28, 2011 (Unaudited)	BlackRock Corporate High Yield Fund VI, Inc. (HYT)
	(Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Auto Components — 0.3%
Dana Holding Corp. (a)		76,490	$	1,444,131
Capital Markets — 0.2%
E*Trade Financial Corp. (a)		46,400		741,472
Chemicals — 0.0%
Wellman Holdings, Inc. (a)		2,616		131
Commercial Banks — 0.1%
CIT Group, Inc. (a)		10,736		465,084
Communications Equipment — 0.6%
Loral Space & Communications Ltd. (a)		36,431		2,756,369
Construction Materials — 0.0%
Nortek, Inc. (a)		3,445		153,303
Diversified Financial Services — 0.3%
Bank of America Corp.		89,000		1,271,810
Electrical Equipment — 0.0%
Medis Technologies Ltd. (a)		116,910		2,455
Food Products — 0.1%
Zhongpin, Inc. (a)		18,157		337,539
Health Care Equipment & Supplies — 0.1%
Zimmer Holdings, Inc. (a)		8,727		544,041
Hotels, Restaurants & Leisure — 0.0%
Buffets Restaurants Holdings, Inc. (a)		1,816		7,718
Household Durables — 0.2%
Beazer Homes USA, Inc. (a)		68,300		317,595
Pulte Group, Inc. (a)		84,500		583,050
				900,645
Machinery — 0.1%
Navistar International Corp. (a)		5,338		330,849
Media — 1.0%
Charter Communications, Inc. (a)		85,376		3,907,660
Clear Channel Outdoor Holdings, Inc., Class A (a)		16,704		246,217
				4,153,877
Metals & Mining — 0.1%
African Minerals Ltd. (a)		50,501		444,554
Oil, Gas & Consumable Fuels — 0.8%
Alpha Natural Resources, Inc. (a)		19,000		1,030,180
Marathon Oil Corp.		44,400		2,202,240
				3,232,420
Paper & Forest Products — 0.3%
Ainsworth Lumber Co. Ltd. (a)		192,951		637,510
Ainsworth Lumber Co. Ltd. (a)(b)		221,591		732,136
Western Forest Products, Inc. (a)(b)		78,039		59,440
				1,429,086
Road & Rail — 0.3%
Dollar Thrifty Automotive Group, Inc. (a)		27,600		1,465,836
Semiconductors & Semiconductor
Equipment — 0.4%
Spansion, Inc., Class A (a)		73,658		1,551,974
SunPower Corp., Class B (a)		1,235		20,847
				1,572,821

Common Stocks	Shares		Value
Software — 0.2%
Bankruptcy Management Solutions, Inc. (a)		787	$	2,754
HMH Holdings/EduMedia (a)		141,287		706,434
				709,188
Wireless Telecommunication Services — 0.7%
American Tower Corp., Class A (a)		17,859		963,672
Crown Castle International Corp. (a)		43,048		1,814,473
FiberTower Corp. (a)		127,570		423,532
				3,201,677
Total Common Stocks — 5.8%				25,165,006

Corporate Bonds	Par  (000)
Aerospace & Defense — 0.3%
DynCorp International, Inc., 10.38%, 7/01/17 (b)	USD	440	473,000
Kratos Defense & Security Solutions, Inc., 10.00%, 6/01/17		730	823,075
			1,296,075
Airlines — 2.9%
Air Canada, 9.25%, 8/01/15 (b)		1,640	1,754,800
American Airlines, Inc.:
10.50%, 10/15/12		1,470	1,613,325
Series 2001-2, 7.86%, 4/01/13		510	526,575
Continental Airlines, Inc.:
6.75%, 9/15/15 (b)		900	924,750
Series 1997-4-B, 6.90%, 7/02/18		1,132	1,148,600
Series 2001-1-C, 7.03%, 12/15/12		284	285,712
Series 2010-1-B, 6.00%, 7/12/20		700	698,250
Delta Air Lines, Inc.:
Series 2010-1-B, 6.38%, 7/02/17		900	895,500
Series B, 9.75%, 12/17/16		1,443	1,558,301
United Air Lines, Inc., 12.75%, 7/15/12		3,064	3,424,120
			12,829,933
Auto Components — 1.5%
Allison Transmission, Inc. (b):
11.00%, 11/01/15		360	391,500
11.25%, 11/01/15 (c)		284	309,560
Delphi International Holdings Unsecured, 12.00%, 10/06/14		69	76,049
Exide Technologies, 8.63%, 2/01/18 (b)		580	618,425
Icahn Enterprises LP, 8.00%, 1/15/18		5,060	5,237,100
			6,632,634
Beverages — 0.2%
Cott Beverages, Inc., 8.13%, 9/01/18		413	444,491
Crown European Holdings SA, 7.13%, 8/15/18 (b)	EUR	380	558,469
			1,002,960
Biotechnology — 0.2%
QHP Pharma, 10.25%, 3/15/15 (b)	USD	763	768,649
Building Products — 1.2%
Associated Materials LLC, 9.13%, 11/01/17 (b)		760	821,750
Building Materials Corp. of America (b):
6.88%, 8/15/18		825	845,625
7.00%, 2/15/20		980	1,032,675
Momentive Performance Materials, Inc.:
11.50%, 12/01/16		265	287,525
9.00%, 1/15/21 (b)		1,985	2,111,544
			5,099,119

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	45

Schedule of Investments (continued)	BlackRock Corporate High Yield Fund VI, Inc. (HYT)
	(Percentages shown are based on Net Assets)

Corporate Bonds	Par   (000)			Value
Capital Markets — 0.6%
American Capital Ltd., 7.96%, 12/31/13 (d)	USD	780	$	798,775
E*Trade Financial Corp., 3.43%, 8/31/19 (b)(d)(e)		380		587,100
KKR Group Finance Co., 6.38%, 9/29/20 (b)		1,020		1,050,932
				2,436,807
Chemicals — 3.4%
American Pacific Corp., 9.00%, 2/01/15		1,400		1,375,500
Chemtura Corp., 7.88%, 9/01/18 (b)		825		880,687
Georgia Gulf Corp., 9.00%, 1/15/17 (b)		260		289,250
Hexion U.S. Finance Corp.:
8.88%, 2/01/18		1,225		1,315,344
9.00%, 11/15/20 (b)		575		611,656
Huntsman International LLC (b):
6.88%, 11/15/13	EUR	440		620,843
8.63%, 3/15/21	USD	780		865,800
Ineos Finance Plc, 9.00%, 5/15/15 (b)		655		718,863
KRATON Polymers LLC, 6.75%, 3/01/19 (b)		195		198,900
MacDermid, Inc., 9.50%, 4/15/17 (b)		1,985		2,114,025
Nalco Co., 6.63%, 1/15/19 (b)		515		532,381
Nexeo Solutions LLC, 8.38%, 3/01/18 (b)(f)		290		295,075
OXEA Finance/Cy SCA, 9.50%, 7/15/17 (b)		1,055		1,157,862
Omnova Solutions, Inc., 7.88%, 11/01/18 (b)		230		236,038
Polymer Group, Inc., 7.75%, 2/01/19 (b)		228		237,405
PolyOne Corp., 7.38%, 9/15/20		335		355,100
Rhodia SA, 6.88%, 9/15/20 (b)		1,135		1,161,956
TPC Group LLC, 8.25%, 10/01/17 (b)		520		553,150
Wellman Holdings, Inc., Subordinate Note (e):
(Second Lien), 10.00%, 1/29/19		1,450		1,261,500
(Third Lien), 5.00%, 1/29/19 (c)		488		190,229
				14,971,564
Commercial Banks — 2.8%
CIT Group, Inc.:
7.00%, 5/01/16		2,995		3,021,206
7.00%, 5/01/17		9,275		9,344,563
				12,365,769
Commercial Services & Supplies — 1.7%
ACCO Brands Corp., 10.63%, 3/15/15		1,170		1,322,100
AWAS Aviation Capital Ltd., 7.00%, 10/15/16 (b)		276		283,590
Brickman Group Holdings, Inc., 9.13%, 11/01/18 (b)		815		876,125
Casella Waste Systems, Inc., 7.75%, 2/15/19 (b)		576		590,400
International Lease Finance Corp., 8.25%, 12/15/20		503		559,588
Mobile Mini, Inc., 7.88%, 12/01/20 (b)		360		383,400
RSC Equipment Rental, Inc. (b):
10.00%, 7/15/17		935		1,075,250
8.25%, 2/01/21		913		965,497
West Corp. (b):
8.63%, 10/01/18		1,170		1,240,200
7.88%, 1/15/19		305		313,006
				7,609,156
Communications Equipment — 0.2%
Avaya, Inc., 7.00%, 4/01/19 (b)		670		663,300
Computers & Peripherals — 0.3%
EMC Corp., 1.75%, 12/01/13 (c)		740		1,293,150
Construction Materials — 1.3%
Nortek, Inc.:
11.00%, 12/01/13		3,460		3,685,231
10.00%, 12/01/18 (b)		1,850		1,974,875
				5,660,106

Corporate Bonds	Par   (000)		Value
Consumer Finance — 0.7%
Credit Acceptance Corp., 9.13%, 2/01/17	USD	1,080	$	1,163,700
Ford Motor Credit Co. LLC:
3.05%, 1/13/12 (g)		340		343,465
7.80%, 6/01/12		300		319,933
6.63%, 8/15/17		1,140		1,212,479
				3,039,577
Containers & Packaging — 2.2%
Ardagh Packaging Finance Plc, 7.38%, 10/15/17 (b)	EUR	680		968,868
Ball Corp., 6.75%, 9/15/20	USD	785		822,288
Berry Plastics Corp.:
8.25%, 11/15/15		215		230,319
9.75%, 1/15/21 (b)		1,435		1,438,587
Graham Packaging Co. LP, 8.25%, 10/01/18		390		420,225
Graphic Packaging International, Inc.:
9.50%, 6/15/17		1,245		1,381,950
7.88%, 10/01/18		620		666,500
OI European Group BV, 6.88%, 3/31/17	EUR	254		364,968
Pregis Corp., 12.38%, 10/15/13	USD	905		911,787
Smurfit Kappa Acquisitions (b):
7.25%, 11/15/17	EUR	785		1,148,263
7.75%, 11/15/19		745		1,100,033
				9,453,788
Diversified Consumer Services — 1.2%
Service Corp. International, 7.00%, 6/15/17	USD	4,775		5,085,375
Diversified Financial Services — 6.0%
Ally Financial, Inc.:
7.50%, 12/31/13		700		763,000
2.51%, 12/01/14 (g)		635		623,986
8.30%, 2/12/15		1,930		2,178,487
6.25%, 12/01/17 (b)		1,230		1,283,813
8.00%, 3/15/20		2,360		2,657,950
7.50%, 9/15/20 (b)		1,900		2,078,125
8.00%, 11/01/31		1,570		1,797,650
8.00%, 11/01/31		1,370		1,569,188
Axcan Intermediate Holdings, Inc., 12.75%, 3/01/16		695		766,238
FCE Bank Plc, 7.13%, 1/15/13	EUR	1,450		2,108,489
Leucadia National Corp., 8.13%, 9/15/15	USD	1,870		2,057,000
Reynolds Group DL Escrow, Inc., 7.75%, 10/15/16 (b)		2,050		2,183,250
Reynolds Group Issuer, Inc. (b):
7.75%, 10/15/16	EUR	600		877,653
7.13%, 4/15/19	USD	910		932,750
9.00%, 4/15/19		2,685		2,799,112
6.88%, 2/15/21		610		611,525
8.25%, 2/15/21		760		761,900
				26,050,116
Diversified Telecommunication Services — 4.1%
Broadview Networks Holdings, Inc., 11.38%, 9/01/12		1,680		1,673,700
Frontier Communications Corp.:
8.25%, 4/15/17		598		660,790
8.50%, 4/15/20		500		555,000
GCI, Inc., 8.63%, 11/15/19		1,700		1,870,000
ITC Deltacom, Inc., 10.50%, 4/01/16		550		603,625
Level 3 Communications, Inc., 6.50%, 10/01/16 (d)		440		628,100
Level 3 Financing, Inc.:
5.50%, 11/01/14		200		206,500
8.75%, 2/15/17		2,240		2,200,800

See Notes to Financial Statements.
46	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011

Schedule of Investments (continued)	BlackRock Corporate High Yield Fund VI, Inc. (HYT)
	(Percentages shown are based on Net Assets)

Corporate Bonds	Par  (000)		Value
Diversified Telecommunication Services (concluded)
Qwest Communications International, Inc.:
7.50%, 2/15/14	USD	3,190	$	3,237,850
8.00%, 10/01/15		900		982,125
Series B, 7.50%, 2/15/14		2,370		2,405,550
Qwest Corp., 7.63%, 6/15/15		875		1,004,062
Windstream Corp.:
8.13%, 8/01/13		703		774,179
7.88%, 11/01/17		1,017		1,104,716
				17,906,997
Electronic Equipment, Instruments & Components — 0.7%
CDW LLC:
11.00%, 10/12/15		190		206,625
11.50%, 10/12/15 (c)		1,030		1,117,550
8.00%, 12/15/18 (b)		880		946,000
NXP BV, 3.05%, 10/15/13 (f)		800		796,000
				3,066,175
Energy Equipment & Services — 1.4%
Bayou Well Services, 0.16%, 12/22/13		975		975,000
Calfrac Holdings LP, 7.50%, 12/01/20 (b)		380		389,500
Compagnie Générale de Géophysique-Veritas:
7.50%, 5/15/15		1,535		1,588,725
7.75%, 5/15/17		395		417,712
Exterran Holdings, Inc., 7.25%, 12/01/18 (b)		685		702,125
Frac Tech Services LLC, 7.13%, 11/15/18 (b)		965		998,775
Precision Drilling Corp., 6.63%, 11/15/20 (b)		180		185,850
Thermon Industries, Inc., 9.50%, 5/01/17		850		920,125
				6,177,812
Food & Staples Retailing — 0.7%
AmeriQual Group LLC, 9.50%, 4/01/12 (b)		910		900,900
BI-LO LLC, 9.25%, 2/15/19 (b)		515		535,600
Rite Aid Corp.:
9.75%, 6/12/16		660		743,325
7.50%, 3/01/17		945		950,906
				3,130,731
Food Products — 0.7%
B&G Foods, Inc., 7.63%, 1/15/18		340		362,950
Blue Merger Sub, Inc., 7.63%, 2/15/19 (b)		1,640		1,656,400
Darling International, Inc., 8.50%, 12/15/18 (b)		375		404,531
Reddy Ice Corp., 11.25%, 3/15/15		690		724,500
Smithfield Foods, Inc., 10.00%, 7/15/14		102		120,360
				3,268,741
Health Care Equipment & Supplies — 1.4%
DJO Finance LLC, 10.88%, 11/15/14		3,810		4,176,712
Hologic, Inc., 2.00%, 12/15/37 (e)(h)		2,150		2,072,063
				6,248,775
Health Care Providers & Services — 5.6%
Aviv Healthcare Properties LP, 7.75%, 2/15/19 (b)		430		448,275
ConvaTec Healthcare E SA (b):
7.38%, 12/15/17	EUR	800		1,148,125
10.50%, 12/15/18	USD	740		789,950
DaVita, Inc., 6.38%, 11/01/18		620		628,525
Gentiva Health Services, Inc., 11.50%, 9/01/18		1,095		1,233,244
HCA, Inc.:
9.13%, 11/15/14		2,745		2,878,819
8.50%, 4/15/19		1,550		1,736,000
7.25%, 9/15/20		3,605		3,888,894
inVentiv Health, Inc., 10.00%, 8/15/18 (b)		1,020		1,048,050

Corporate Bonds	Par  (000)		Value
Health Care Providers & Services (concluded)
Omnicare, Inc.:
6.13%, 6/01/13	USD	276	$	277,035
6.88%, 12/15/15		675		696,937
7.75%, 6/01/20		980		1,046,150
Priory Group Ltd., 7.00%, 2/15/18	GBP	220		366,583
Tenet Healthcare Corp.:
9.00%, 5/01/15	USD	2,935		3,228,500
10.00%, 5/01/18		1,050		1,233,750
8.88%, 7/01/19		3,360		3,822,000
				24,470,837
Health Care Technology — 1.1%
IMS Health, Inc., 12.50%, 3/01/18 (b)		3,760		4,408,600
MedAssets, Inc., 8.00%, 11/15/18 (b)		255		262,013
				4,670,613
Hotels, Restaurants & Leisure — 3.7%
Boyd Gaming Corp., 9.13%, 12/01/18 (b)		970		1,018,500
Caesars Entertainment Operating Co., Inc., 10.00%, 12/15/18		5,835		5,484,900
Cirsa Funding Luxembourg SA, 8.75%, 5/15/18	EUR	81		116,248
CityCenter Holdings LLC, 7.63%, 1/15/16 (b)	USD	530		552,525
Diamond Resorts Corp., 12.00%, 8/15/18 (b)		1,860		1,994,850
Enterprise Inns Plc, 6.50%, 12/06/18	GBP	656		967,780
Harrah’s Operating Co., Inc., 11.25%, 6/01/17	USD	980		1,112,300
Inn of the Mountain Gods Resort & Casino (b):
1.25%, 11/30/20 (c)		1,738		903,760
8.75%, 11/30/20		772		733,400
Little Traverse Bay Bands, 9.00%, 8/31/20 (b)		561		462,825
MGM Resorts International:
10.38%, 5/15/14		415		464,800
11.13%, 11/15/17		1,310		1,509,775
Palace Entertainment Holding LLC, 8.88%, 4/15/17 (b)		190		193,800
Travelport LLC:
4.94%, 9/01/14 (g)		195		174,037
9.88%, 9/01/14		285		278,231
9.00%, 3/01/16		190		179,550
Tropicana Entertainment LLC, Series WI, 9.63%, 12/15/14 (a)(i)		515		52
				16,147,333
Household Durables — 4.1%
American Standard Americas, 10.75%, 1/15/16 (b)		630		669,375
Ashton Woods USA LLC, 21.57%, 6/30/15 (b)(h)		1,360		884,000
Beazer Homes USA, Inc.:
8.13%, 6/15/16		495		503,044
12.00%, 10/15/17		2,080		2,418,000
9.13%, 6/15/18		3,240		3,345,300
Jarden Corp., 7.50%, 1/15/20	EUR	455		654,566
K. Hovnanian Enterprises, Inc., 10.63%, 10/15/16	USD	2,730		2,958,637
Ryland Group, Inc., 6.63%, 5/01/20		1,045		1,024,100
Standard Pacific Corp.:
10.75%, 9/15/16		2,355		2,767,125
8.38%, 5/15/18		680		720,800
8.38%, 5/15/18 (b)		745		789,700
8.38%, 1/15/21 (b)		1,210		1,276,550
				18,011,197
IT Services — 1.8%
First Data Corp. (b):
8.88%, 8/15/20		1,980		2,168,100
8.25%, 1/15/21		2,721		2,707,395
12.63%, 1/15/21		1,115		1,167,962
SunGard Data Systems, Inc. (b):
7.38%, 11/15/18		740		764,050
7.63%, 11/15/20		930		960,225
				7,767,732

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	47

Schedule of Investments (continued)	BlackRock Corporate High Yield Fund VI, Inc. (HYT)
	(Percentages shown are based on Net Assets)

Corporate Bonds	Par  (000)		Value
Independent Power Producers & Energy Traders — 3.2%
Calpine Construction Finance Co. LP, 8.00%, 6/01/16 (b)	USD	2,010	$	2,180,850
Calpine Corp. (b):
7.50%, 2/15/21		730		746,425
7.88%, 1/15/23		995		1,022,363
Energy Future Holdings Corp., 10.25%, 1/15/20 (b)		5,200		5,415,030
Energy Future Intermediate Holding Co. LLC, 10.00%, 12/01/20		271		282,884
NRG Energy, Inc., 7.63%, 1/15/18 (b)		4,245		4,420,106
				14,067,658
Industrial Conglomerates — 2.5%
Sequa Corp. (b):
11.75%, 12/01/15		3,810		4,133,850
13.50%, 12/01/15 (c)		6,236		6,906,494
				11,040,344
Insurance — 1.0%
Alliant Holdings I, Inc., 11.00%, 5/01/15 (b)		2,600		2,749,500
CNO Financial Group, Inc., 9.00%, 1/15/18 (b)		530		564,450
USI Holdings Corp., 4.16%, 11/15/14 (b)(g)		1,070		1,032,550
				4,346,500
Machinery — 1.7%
AGY Holding Corp., 11.00%, 11/15/14		1,650		1,468,500
Navistar International Corp.:
3.00%, 10/15/14 (d)		2,840		3,968,900
8.25%, 11/01/21		940		1,041,050
Oshkosh Corp., 8.25%, 3/01/17		160		177,600
Titan International, Inc., 7.88%, 10/01/17 (b)		720		770,400
				7,426,450
Marine — 0.7%
Horizon Lines, Inc., 4.25%, 8/15/12 (d)		3,340		3,097,850
Media — 12.8%
AMC Entertainment Holdings, Inc., 9.75%, 12/01/20 (b)		795		852,637
Affinion Group, Inc., 7.88%, 12/15/18 (b)		885		847,388
CCH II LLC, 13.50%, 11/30/16		876		1,061,523
CCO Holdings LLC:
7.88%, 4/30/18		730		779,275
8.13%, 4/30/20		730		787,488
CMP Susquehanna Corp., 3.44%, 5/15/14		254		179,050
CSC Holdings, Inc., 8.50%, 4/15/14		550		616,000
Catalina Marketing Corp., 10.50%, 10/01/15 (b)(c)		935		1,012,137
Cengage Learning Acquisitions, Inc., 10.50%, 1/15/15 (b)		2,275		2,360,312
Checkout Holding Corp., 10.98%, 11/15/15 (b)		1,360		877,200
Citadel Broadcasting Corp., 7.75%, 12/15/18 (b)		400		429,000
Clear Channel Communications, Inc., 9.00%, 3/01/21 (b)		390		396,338
Clear Channel Worldwide Holdings, Inc.:
9.25%, 12/15/17		2,368		2,628,480
Series B, 9.25%, 12/15/17		8,711		9,690,987
Cox Enterprises, Inc.:
Loan Close 2, 4.00%, 8/15/18		1,019		1,018,664
Loan Close 3, 12.00%, 8/15/18		1,165		1,164,625
Shares Loan, 4.00%, 8/15/18		1,203		1,203,139
DISH DBS Corp., 7.00%, 10/01/13		150		161,250
Gray Television, Inc., 10.50%, 6/29/15		1,425		1,514,062
Harland Clarke Holdings Corp.:
6.00%, 5/15/15 (g)		550		493,625
9.50%, 5/15/15		660		648,450
Interactive Data Corp., 10.25%, 8/01/18 (b)		1,600		1,792,000
Liberty Global, Inc., 4.50%, 11/15/16 (d)		580		1,004,850

Corporate Bonds	Par  (000)		Value
Media (concluded)
Liberty Media Corp., 3.13%, 3/30/23 (d)	USD	1,748	$	2,154,410
Live Nation Entertainment, Inc., 8.13%, 5/15/18 (b)		1,280		1,318,400
NAI Entertainment Holdings LLC, 8.25%, 12/15/17 (b)		845		908,375
Nielsen Finance LLC:
11.63%, 2/01/14		147		172,725
7.75%, 10/15/18 (b)		3,425		3,703,281
ProQuest LLC, 9.00%, 10/15/18 (b)		775		802,125
Rainbow National Services LLC, 10.38%, 9/01/14 (b)		2,570		2,676,012
Regal Entertainment Group, 9.13%, 8/15/18		610		652,700
UPC Germany GmbH (b):
8.13%, 12/01/17		985		1,056,412
8.13%, 12/01/17	EUR	701	$	1,041,111
9.63%, 12/01/19		900		1,411,179
UPC Holding BV, 9.88%, 4/15/18 (b)	USD	800		888,000
UPCB Finance II Ltd., 6.38%, 7/01/20	EUR	1,273		1,734,679
Unitymedia GmbH, 9.63%, 12/01/19		244		382,586
Unitymedia Hessen GmbH & Co. KG, 8.13%, 12/01/17		120		178,222
Univision Communications, Inc., 7.88%, 11/01/20 (b)	USD	715		766,838
Virgin Media Secured Finance Plc, 7.00%, 1/15/18	GBP	910		1,593,987
Ziggo Bond Co. BV, 8.00%, 5/15/18 (b)	EUR	610		902,803
Ziggo Finance BV, 6.13%, 11/15/17 (b)		1,240		1,749,648
				55,611,973
Metals & Mining — 4.3%
Drummond Co., Inc.:
9.00%, 10/15/14 (b)	USD	905		966,088
7.38%, 2/15/16		360		372,600
FMG Resources August 2006 Property Ltd., 7.00%, 11/01/15 (b)		2,385		2,474,437
Foundation PA Coal Co., 7.25%, 8/01/14		3,250		3,315,000
Goldcorp, Inc., 2.00%, 8/01/14 (d)		930		1,170,637
New World Resources NV, 7.88%, 5/01/18	EUR	1,055		1,565,044
Newmont Mining Corp., Series A, 1.25%, 7/15/14 (d)	USD	665		886,944
Novelis, Inc., 8.75%, 12/15/20 (b)		5,470		6,030,675
Ryerson, Inc.:
7.68%, 11/01/14 (g)		640		614,400
12.00%, 11/01/15		450		483,750
Steel Dynamics, Inc., 7.38%, 11/01/12		325		345,313
Vedanta Resources Plc, 9.50%, 7/18/18 (b)		325		358,313
				18,583,201
Multiline Retail — 1.8%
Dollar General Corp., 11.88%, 7/15/17 (c)		6,753		7,808,156
Oil, Gas & Consumable Fuels — 7.5%
Arch Coal, Inc., 7.25%, 10/01/20		1,335		1,418,437
Berry Petroleum Co., 8.25%, 11/01/16		800		845,000
Bill Barrett Corp., 9.88%, 7/15/16		70		78,400
Carrizo Oil & Gas, Inc., 8.63%, 10/15/18 (b)		355		377,188
Chaparral Energy, Inc., 8.25%, 9/01/21 (b)		390		396,825
Chesapeake Energy Corp.:
6.63%, 8/15/20		2,460		2,583,000
6.13%, 2/15/21		1,475		1,504,500
2.25%, 12/15/38 (d)		1,250		1,143,750
Coffeyville Resources LLC, 9.00%, 4/01/15 (b)		414		451,260

See Notes to Financial Statements.
48	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011

Schedule of Investments (continued)	BlackRock Corporate High Yield Fund VI, Inc. (HYT)
	(Percentages shown are based on Net Assets)

Corporate Bonds	Par (000)		Value
Oil, Gas & Consumable Fuels (concluded)
Concho Resources, Inc., 7.00%, 1/15/21	USD	635	$	665,163
Connacher Oil and Gas Ltd. (b):
11.75%, 7/15/14		280		303,100
10.25%, 12/15/15		1,755		1,855,912
Consol Energy, Inc., 8.25%, 4/01/20		3,095		3,412,237
Continental Resources, Inc., 7.13%, 4/01/21 (b)		575		612,375
Crosstex Energy LP, 8.88%, 2/15/18		280		308,700
Denbury Resources Inc.:
6.38%, 8/15/21		540		545,400
8.25%, 2/15/20		1,095		1,218,188
Energy Transfer Equity LP, 7.50%, 10/15/20		210		227,588
Energy XXI Gulf Coast, Inc. (b):
9.25%, 12/15/17		660		709,500
7.75%, 6/15/19		820		828,200
Hilcorp Energy I LP, 7.63%, 4/15/21 (b)		1,200		1,266,000
Linn Energy LLC (b):
8.63%, 4/15/20		1,715		1,912,225
7.75%, 2/01/21		920		977,500
MarkWest Energy Partners LP, 6.75%, 11/01/20		405		415,125
Niska Gas Storage US LLC, 8.88%, 3/15/18 (b)		2,930		3,193,700
Oasis Petroleum, Inc., 7.25%, 2/01/19 (b)		355		360,325
Peabody Energy Corp., 6.50%, 9/15/20		805		861,350
Petrohawk Energy Corp.:
10.50%, 8/01/14		595		684,250
7.88%, 6/01/15		680		720,800
Range Resources Corp., 8.00%, 5/15/19		700		770,875
SM Energy Co., 6.63%, 2/15/19 (b)		445		450,006
Teekay Corp., 8.50%, 1/15/20		1,020		1,097,775
United Refining Co., 10.50%, 2/28/18 (b)(f)		375		371,250
				32,565,904
Paper & Forest Products — 3.1%
Ainsworth Lumber Co. Ltd., 11.00%, 7/29/15 (b)(c)		1,835		1,862,044
Boise Paper Holdings LLC:
9.00%, 11/01/17		525		585,375
8.00%, 4/01/20		240		264,600
Clearwater Paper Corp.:
10.63%, 6/15/16		625		714,063
7.13%, 11/01/18 (b)		885		918,188
Georgia-Pacific LLC, 8.25%, 5/01/16 (b)		2,570		2,897,675
NewPage Corp., 11.38%, 12/31/14		4,335		4,324,162
Verso Paper Holdings LLC:
11.50%, 7/01/14		1,335		1,471,837
8.75%, 2/01/19 (b)		360		376,200
				13,414,144
Pharmaceuticals — 0.9%
Angiotech Pharmaceuticals, Inc., 4.06%, 12/01/13 (g)		1,441		1,210,440
Grifols, Inc., 8.25%, 2/01/18 (b)		205		210,638
Novasep Holding SAS, 9.63%, 12/15/16 (b)	EUR	822		918,803
Valeant Pharmaceuticals International (b):
6.75%, 10/01/17	USD	590		610,650
7.00%, 10/01/20		750		775,312
				3,725,843
Professional Services — 0.3%
FTI Consulting, Inc., 6.75%, 10/01/20 (b)		1,450		1,450,000
Real Estate Investment Trusts (REITs) — 0.4%
Omega Healthcare Investors, Inc., 6.75%, 10/15/22 (b)		830		838,300
The Rouse Co. LP, 6.75%, 11/09/15		805		843,238
				1,681,538

Corporate Bonds		Par  (000)	Value
Real Estate Management & Development — 1.9%
CB Richard Ellis Services Inc., 6.63%, 10/15/20	USD	520	$	536,250
Forest City Enterprises, Inc., 7.63%, 6/01/15		2,300		2,231,000
Realogy Corp. (b):
11.50%, 4/15/17		1,230		1,309,950
7.88%, 2/15/19		4,070		4,085,262
				8,162,462
Road & Rail — 2.1%
Avis Budget Car Rental LLC:
9.63%, 3/15/18		800		894,000
8.25%, 1/15/19		1,205		1,278,806
Florida East Coast Railway Corp., 8.13%, 2/01/17 (b)		650		679,250
The Hertz Corp. (b):
7.50%, 10/15/18		1,005		1,064,044
6.75%, 4/15/19		695		708,900
7.38%, 1/15/21		765		799,425
Hertz Holdings Netherlands BV, 8.50%, 7/31/15 (b)	EUR	2,080		3,121,464
Syncreon Global Ireland Ltd., 9.50%, 5/01/18 (b)	USD	550		570,625
				9,116,514
Semiconductors & Semiconductor Equipment — 0.1%
Spansion LLC, 7.88%, 11/15/17 (b)		430		438,600
Specialty Retail — 1.6%
Asbury Automotive Group, Inc., 8.38%, 11/15/20 (b)		515		540,750
Claire’s Escrow Corp., 8.88%, 3/15/19 (b)(f)		500		501,875
Hillman Group, Inc., 10.88%, 6/01/18		830		913,000
Limited Brands, Inc., 8.50%, 6/15/19		1,255		1,436,975
PETCO Animal Supplies, Inc., 9.25%, 12/01/18 (b)		705		761,400
Sonic Automotive, Inc., 9.00%, 3/15/18		580		620,600
Toys ‘R’ US-Delaware, Inc., 7.38%, 9/01/16 (b)		660		695,475
United Auto Group, Inc., 7.75%, 12/15/16		1,670		1,724,275
				7,194,350
Transportation Infrastructure — 0.2%
Aguila 3 SA, 7.88%, 1/31/18 (b)		665		689,938
Wireless Telecommunication Services — 4.4%
Clearwire Communications LLC (b):
12.00%, 12/01/15		750		817,500
12.00%, 12/01/17		1,760		1,900,800
Cricket Communications, Inc.:
10.00%, 7/15/15		1,155		1,273,387
7.75%, 5/15/16		1,080		1,142,100
Digicel Group Ltd. (b):
8.88%, 1/15/15		1,120		1,164,800
9.13%, 1/15/15		2,864		2,982,856
8.25%, 9/01/17		1,720		1,797,400
10.50%, 4/15/18		800		912,000
FiberTower Corp., 9.00%, 1/01/16 (c)		503		430,336
iPCS, Inc., 2.43%, 5/01/13 (g)		1,295		1,278,812
Intelsat Jackson Holdings SA, 7.25%, 10/15/20 (b)		525		539,438
MetroPCS Wireless, Inc.:
7.88%, 9/01/18		810		855,563
6.63%, 11/15/20 (b)		1,190		1,158,763
NII Holdings, Inc., 3.13%, 6/15/12 (d)		570		567,150
Sprint Capital Corp., 6.88%, 11/15/28		2,370		2,135,962
Syniverse Holdings, Inc., 9.13%, 1/15/19 (b)		390		421,200
				19,378,067
Total Corporate Bonds — 102.5%				446,924,513

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	49

Schedule of Investments (continued)	BlackRock Corporate High Yield Fund VI, Inc. (HYT)
	(Percentages shown are based on Net Assets)

Floating Rate Loan Interests (g)	Par  (000)		Value
Building Products — 0.3%
Goodman Global, Inc., Term Loan (Second Lien), 9.00%, 10/13/17	USD	1,200	$	1,236,750
Capital Markets — 0.1%
Marsico Parent Co., LLC, Term Loan, 5.31%, 12/15/14		755		613,494
Chemicals — 0.3%
PQ Corp. (FKA Niagara Acquisition, Inc.), Term Loan (First Lien), 3.52% – 3.56%, 7/30/14		419		412,462
Styron Sarl, Term Loan B, 6.00%, 7/27/17		1,000		1,009,000
				1,421,462
Commercial Services & Supplies — 0.8%
AWAS Finance Luxembourg Sarl, Term Loan B, 7.75%, 6/10/16		845		867,709
Delos Aircraft, Inc., Term Loan 2, 7.00%, 3/17/16		975		983,357
Volume Services America, Inc. (Centerplate), Term Loan B, 10.50% – 10.75%, 8/24/16		1,596		1,611,290
				3,462,356
Construction & Engineering — 0.7%
Safway Services, LLC, Last Out Term Loan, 15.63%, 12/14/17		3,250		3,250,000
Consumer Finance — 1.5%
Springleaf Financial Funding Co. (FKA AGFS Funding Co.), Term Loan, 7.25%, 4/21/15		6,500		6,557,850
Electric Utilities — 0.1%
New Development Holdings LLC, Term Loan, 7.00%, 7/03/17		233		235,226
Food Products — 0.3%
Advance Pierre Foods, Term Loan, 11.25%, 9/29/17		1,300		1,332,500
Health Care Providers & Services — 0.7%
Harden Healthcare, Inc.:
Tranche A Additional Term Loan, 7.75%, 3/02/15		855		837,900
Tranche A Term Loan, 8.50%, 2/22/15		630		617,556
inVentiv Health, Inc. (FKA Ventive Health, Inc.), Term Loan B, 6.50%, 7/31/16		1,393		1,399,094
				2,854,550
Hotels, Restaurants & Leisure — 0.8%
Harrah’s Operating Co., Inc., Term Loan B-3, 3.30%, 1/28/15		675		626,719
Travelport LLC (FKA Travelport, Inc.), Loan, 8.31%, 3/27/12 (c)		3,240		2,891,365
				3,518,084
Household Durables — 0.7%
Visant Corp. (FKA Jostens):
Term Loan, 5.25%, 12/22/16		1,500		1,500,000
Tranche B Term Loan, 7.00%, 12/20/16		1,596		1,610,284
				3,110,284
IT Services — 0.5%
First Data Corp.:
Initial Tranche B-1 Term Loan, 3.01%, 9/24/14		254		240,882
Initial Tranche B-2 Term Loan, 3.01%, 9/24/14		642		607,816
Initial Tranche B-3 Term Loan, 3.01%, 9/24/14		1,162		1,099,950
				1,948,648

Floating Rate Loan Interests (g)	Par  (000)		Value
Independent Power Producers & Energy Traders — 1.0%
Texas Competitive Electric Holdings Co., LLC (TXU):
Initial Tranche B-1 Term Loan, 3.76% – 3.80%, 10/10/14	USD	340	$	286,810
Initial Tranche B-2 Term Loan, 3.76% – 3.80%, 10/10/14		214		179,959
Initial Tranche B-3 Term Loan, 3.76% – 3.80%, 10/10/14		4,518		3,798,760
				4,265,529
Media — 4.1%
Cengage Learning Acquisitions, Inc. (Thomson Learning), Tranche 1 Incremental Term Loan, 7.50%, 7/03/14		2,681		2,693,316
HMH Publishing Co., Ltd., Tranche A Term Loan, 6.01%, 6/12/14		1,444		1,371,497
Intelsat Jackson Holdings Ltd., Term Loan B, 5.25%, 3/07/18		11,300		11,375,925
Newsday, LLC, Fixed Rate Term Loan, 10.50%, 8/01/13		2,450		2,604,656
				18,045,394
Metals & Mining — 0.1%
Euramax International, Inc., Domestic Term Loan:
10.00%, 6/29/13		271		261,243
14.00%, 6/29/13		261		250,781
				512,024
Multiline Retail — 0.5%
Hema Holding BV, Mezzanine, 4.41% – 5.00%, 1/29/17 (c)	EUR	1,605		2,170,783
Oil, Gas & Consumable Fuels — 1.2%
Obsidian Natural Gas Trust, Term Loan, 7.00%, 11/30/15	USD	3,621		3,711,485
Turbo Beta Ltd., Dollar Facility, 2.50% – 12.00%, 3/15/18 (c)		3,848		1,577,620
				5,289,105
Paper & Forest Products — 0.4%
Verso Paper Finance Holdings LLC, 6.55% – 7.30%, 2/01/13		2,089		1,880,289
Pharmaceuticals — 0.2%
Axcan Pharma, Inc., Term Loan, 5.50%, 2/03/17		1,000		1,002,500
Real Estate Investment Trusts (REITs) — 0.1%
iStar Financial, Inc., Term Loan (Second Lien), 1.76%, 6/28/11		350		345,187
Real Estate Management & Development — 0.3%
Realogy Corp.:
Term Loan B, 4.56% – 6.50%, 10/16/16		1,173		1,124,943
Term Loan C, 4.51%, 10/16/16		199		190,798
				1,315,741
Specialty Retail — 0.2%
Claire’s Stores, Inc., Term Loan B, 3.01% – 5.00%, 5/29/14		235		228,654
Michaels Stores, Inc., Term Loan B-1, 2.56% – 2.63%, 10/31/13		516		514,754
				743,408
Total Floating Rate Loan Interests — 14.9%				65,111,164

See Notes to Financial Statements.
50	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011

Schedule of Investments (continued)	BlackRock Corporate High Yield Fund VI, Inc. (HYT)
	(Percentages shown are based on Net Assets)

Other Interests (j)		Beneficial Interest (000)		Value
Auto Components — 2.2%
Delphi Debtor-in-Possession Holding Co. LLP, Class B Membership Interests	USD	—	(k)	$	9,614,334
Hotels, Restaurants & Leisure — 0.0%
Buffets, Inc.		950			10
Media — 0.0%
Adelphia Escrow		1,300			13
Adelphia Recovery Trust		1,630			163
					176
Total Other Interests — 2.2%					9,614,520

Preferred Stocks	Shares
Auto Components — 0.1%
Dana Holding Corp., 4.00% (a)(b)(d)	3,000	492,375
Automobiles — 0.8%
General Motors Co., 4.75% (a)	71,550	3,640,464
Media — 0.0%
CMP Susquehanna Radio Holdings Corp., 0.00% (a)(b)	59,235	1
Professional Services — 0.1%
Nielsen Holdings NV, 6.25% (a)(d)	6,917	381,732
Thrifts & Mortgage Finance — 0.1%
Fannie Mae, Series O, 0.00% (a)	40,000	128,000
Freddie Mac, Series Z, 8.38% (a)	110,157	213,704
		341,704
Total Preferred Stocks — 1.1%		4,856,276

Warrants (l)
Health Care Providers & Services — 0.0%
HealthSouth Corp. (Expires 1/16/14)	54,577	1
Hotels, Restaurants & Leisure — 0.0%
Buffets Restaurants Holdings, Inc. (Expires 4/29/14)	802	8
Media — 0.0%
CMP Susquehanna Radio Holdings Corp. (Expires 3/26/19) (b)	67,691	1
New Vision Holdings LLC (Expires 9/14/30)	4	40
New Vision Holdings LLC (Expires 9/14/30)	22	222
		263
Oil, Gas & Consumable Fuels — 0.0%
Turbo Cayman Ltd. (No Expiration)	2	—
Software — 0.0%
Bankruptcy Management Solutions, Inc. (Expires 9/29/17)	525	5
HMH Holdings/EduMedia (Expires 3/09/17)	22,578	—
		5
Total Warrants — 0.0%		277
Total Long-Term Investments (Cost — $526,146,168) — 126.5%		551,671,756

Short-Term Securities	Shares	Value
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.15% (m)(n)	1,225,083	$	1,225,083
Total Short-Term Securities (Cost — $1,225,083) — 0.3%			1,225,083
Total Investments (Cost — $527,371,251*) — 126.8%			552,896,839
Liabilities in Excess of Other Assets — (26.8)%			(116,864,147	)
Net Assets — 100.0%		$	436,032,692

* The cost and unrealized appreciation (depreciation) of investments as of February 28, 2011, as computed for federal income tax purposes were as follows:

Aggregate cost	$	528,710,124
Gross unrealized appreciation	$	41,588,921
Gross unrealized depreciation		(17,402,206	)
Net unrealized appreciation	$	24,186,715

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

Counterparty	Value		Unrealized Appreciation (Depreciation)
Banc of America NA	$	208,587	$	3,587
Credit Suisse International	$	873,125	$	11,460
Sterne Agee	$	86,488	$	(212	)

(g)	Variable rate security. Rate shown is as of report date.
(h)	Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown reflects the current yield as of report date.
(i)	Issuer filed for bankruptcy and/or is in default of interest payments.
(j)	Other interests represent beneficial interest in liquidation trusts and other reorganization entities and are non-income producing.
(k)	Amount is less than $1,000.
(l)	Warrants entitle the Trust to purchase a predetermined number of shares of common stock and are non-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date, if any.
(m)	Investments in companies considered to be an affiliate of the Trust during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate	Shares Held at August 31, 2010		Net Activity			Shares Held at February 28, 2011		Income
BlackRock Liquidity Funds, TempFund, Institutional Class		1,808,758		(583,675	)		1,225,083	$	2,129

(n) Represents the current yield as of report date.

See Notes to Financial Statements.
SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	51

Schedule of Investments (continued) BlackRock Corporate High Yield Fund VI, Inc. (HYT)

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

• Financial futures contracts sold as of February 28, 2011 were as follows:

Contracts	Issue	Exchange	Expiration		Notional Value		Unrealized Depreciation
168	E-Mini S&P 500	Chicago Mercantile		March 2011	$	10,668,127	$	(471,113	)

• Credit default swaps on single-name issues — buy protection outstanding as of February 28, 2011 were as follows:

Issuer	Pay Fixed Rate		Counterparty	Expiration Date	Notional Amount (000)		Unrealized Depreciation
K. Hovnanian Enterprises, Inc.	5.00	%	Goldman Sachs International	12/20/11	$	805	$	(36,709	)
K. Hovnanian Enterprises, Inc.	5.00	%	Goldman Sachs Bank USA	12/20/13	$	1,600		(136,099	)
Louisiana-Pacific Corp.	5.00	%	JPMorgan Chase Bank NA	3/20/14	$	500		(114,192	)
Harrah’s Operating Co., Inc.	5.00	%	Deutsche Bank AG	12/20/15	$	2,025		(282,511	)
Republic of Hungary	1.00	%	Deutsche Bank AG	12/20/15	$	470		(8,521	)
Israel (State of)	1.00	%	Deutsche Bank AG	3/20/16	$	1,050		(4,036	)
iStar Financial, Inc.	5.00	%	Deutsche Bank AG	12/20/16	$	375		(74,441	)
Total							$	(656,509	)

• Credit default swaps on single-name issues — sold protection outstanding as of February 28, 2011 were as follows:

Issuer	Received Fixed Rate		Counterparty	Expiration Date	Issuer Credit Rating1	Notional Amount (000)2			Unrealized Appreciation (Depreciation)
iStar Financial, Inc.	5.00	%	Deutsche Bank AG	9/20/11	CCC–		$	375	$	40,123
MBIA Insurance Corp.	5.00	%	Deutsche Bank AG	3/20/12	B–		$	185		16,584
Texas Competitive Electric Holdings Co. LLC	5.00	%	Goldman Sachs International	9/20/12	D		$	775		(78,240	)
MBIA Insurance Corp.	5.00	%	Deutsche Bank AG	12/20/12	B–		$	1,100		118,890
Advanced Micro Devices, Inc.	5.00	%	JPMorgan Chase Bank NA	3/20/15	B+		$	1,150		139,889
Realogy Corp.	5.00	%	JPMorgan Chase Bank NA	9/20/15	CC		$	200		30,606
Assured Guaranty Ltd.	5.00	%	Deutsche Bank AG	12/20/15	A+		$	105		822
D.R. Horton, Inc.	1.00	%	JPMorgan Chase Bank NA	12/20/15	BB–		$	475		14,614
M.D.C. Holdings, Inc.	1.00	%	Deutsche Bank AG	12/20/15	BBB–		$	535		5,133
M.D.C. Holdings, Inc.	1.00	%	JPMorgan Chase Bank NA	12/20/15	BBB–		$	535		2,900
Realogy Corp.	5.00	%	JPMorgan Chase Bank NA	12/20/15	CC		$	1,175		65,711
ARAMARK Corp.	5.00	%	Goldman Sachs International	3/20/16	B		$	750		(1,360	)
Chesapeake Energy Corp.	5.00	%	Credit Suisse International	3/20/16	BB		$	425		7,968
Chesapeake Energy Corp.	5.00	%	Goldman Sachs International	3/20/16	BB		$	425		4,727
Chesapeake Energy Corp.	5.00	%	JPMorgan Chase Bank NA	3/20/16	BB		$	425		7,968
Realogy Corp.	5.00	%	JPMorgan Chase Bank NA	3/20/16	CC		$	225		946
General Motors Co.	5.00	%	Deutsche Bank AG	3/20/21	BB–		$	600		(1,503	)
Total									$	375,778

1	Using Standard & Poor’s rating.
2	The maximum potential amount the Trust may pay should a negative event take place as defined under the terms of agreement.

See Notes to Financial Statements.
52	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011

Schedule of Investments (continued) BlackRock Corporate High Yield Fund VI, Inc. (HYT)

• Credit default swaps on traded indexes — sold protection outstanding as of February 28, 2011 were as follows:

Index	Receive Fixed Rate		Counterparty	Expiration Date	Credit Rating1	Notional Amount (000)2			Unrealized Depreciation
Dow Jones CDX North America High Yield Index Series 10	0.00	%	Deutsche Bank AG	6/20/11	CCC		$	1,119		$	(8,622	)
Dow Jones CDX North America High Yield Index Series 9	0.00	%	Deutsche Bank AG	12/20/12	CCC		$	822			(31,787	)
Dow Jones CDX North America High Yield Index Series 15	5.00	%	Credit Suisse International	12/20/15	B		$	3,100			(9,903	)
Total										$	(50,312	)

	1	Using Standard and Poor’s rating.
	2	The maximum potential amount the Trust may pay should a negative event take place as defined under the terms of agreement.
•	Foreign currency exchange contracts as of February 28, 2011 were as follows:

Currency Purchased		Currency Sold		Counterparty	Settlement Date	Unrealized Appreciation (Depreciation)
USD	551,681	CAD	547,000	Citibank NA	4/14/11		$	(10,781	)
USD	1,345,739	GBP	852,500	Citibank NA	4/14/11			(39,551	)
USD	1,290,350	GBP	803,000	Deutsche Bank AG	4/14/11			(14,503	)
USD	87,706	GBP	54,500	Royal Bank of Scotland Plc	4/14/11			(855	)
USD	403,014	GBP	251,000	UBS AG	4/14/11			(4,854	)
EUR	75,000	USD	103,351	Citibank NA	4/27/11			71
USD	21,380,076	EUR	15,623,000	Citibank NA	4/27/11			(163,422	)
USD	802,198	EUR	594,000	Deutsche Bank AG	4/27/11			(16,904	)
USD	2,734,695	EUR	1,997,000	Royal Bank of Scotland Plc	4/27/11			(19,089	)
Total							$	(269,888	)

•	Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivatives. These inputs are summarized in three broad levels for financial statement purposes as follows:
	•	Level 1 — price quotations in active markets/exchanges for identical assets and liabilities
	•	Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
	•	Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments)
	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 Trust’s policy regarding valuation of investments and derivatives 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 February 28, 2011 in determining the fair valuation of the Trust’s investments and derivatives:

Valuation Inputs	Level 1		Level 2		Level 3			Total
Assets:
Investments in Securities:
Long-Term Investments:
Common Stocks	$	23,723,551	$	734,890	$	706,565		$	25,165,006
Corporate Bonds		—		440,572,430		6,352,083			446,924,513
Floating Rate Loan Interests		—		51,903,814		13,207,350			65,111,164
Other Interests		163		9,614,334		23			9,614,520
Preferred Stocks		3,854,168		1,002,107		1			4,856,276
Warrants		—		—		277			277
Short-Term Securities		1,225,083		—		—			1,225,083
Unfunded Loan Commitments		—		4,056		—			4,056
Liabilities:
Unfunded loan commitments		—		—		(19,704	)		(19,704	)
Total	$	28,802,965	$	503,831,631	$	20,246,595		$	552,881,191

	Derivative Financial Instruments1
Valuation Inputs	Level 1			Level 2			Level 3		Total
Assets:
Credit contracts		—		$	456,881			—	$	456,881
Foreign currency exchange contracts		—			71			—		71
Liabilities:
Credit contracts		—			(787,924	)		—		(787,924	)
Foreign currency exchange contracts		—			(269,959	)		—		(269,959	)
Interest rate contracts	$	(471,113	)		—			—		(471,113	)
Total	$	(471,113	)	$	(600,931	)		—	$	(1,072,044	)

¹ Derivative financial instruments are swaps, financial futures contracts and foreign currency exchange contracts. Swaps, financial futures contracts and foreign currency exchange contracts are valued at the unrealized appreciation/depreciation on the instrument.

See Notes to Financial Statements.
SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	53

Schedule of Investments (concluded) BlackRock Corporate High Yield Fund VI, Inc. (HYT)

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

	Common Stocks			Corporate Bonds			Floating Rate Loan Interests			Other Interests				Preferred Stocks		Warrants			Unfunded Loan Commitments (Liabilities)				Total
Assets/Liabilities:
Balance, as of August 31, 2010	$	712,707		$	4,851,224		$	20,602,850			$	6,747		$	1	$	271			$	(36,123	)	$	26,137,677
Accrued discounts/premiums		—			218,405			174,322				—			—		—				—			392,727
Net realized gain (loss)		—			—			215,718				—			—		—				—			215,718
Net change in unrealized appreciation/depreciation2		83,133			11,795			1,066,366				(6,561	)		—		(1	)			16,419			1,171,151
Purchases		—			986,832			5,142,505				—			—		7				—			6,129,344
Sales		(89,275	)		—			(11,187,604	)			—			—		—				—			(11,276,879	)
Transfers in3		—			462,877			1,577,620				(163	)		—		—				—			2,040,334
Transfers out3		—			(179,050	)		(4,384,427	)			—			—		—				—			(4,563,477	)
Balance as of February 28, 2011	$	706,565		$	6,352,083		$	13,207,350			$	23		$	1	$	277			$	(19,704	)	$	20,246,595

2	Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations. The net change in the unrealized appreciation/depreciation on the securities still held on February 28, 2011 was $779,345.
3	The Trust’s policy is to recognize transfers in and transfers out as of the end of the period of the event or the change in circumstances that caused the transfer.

See Notes to Financial Statements.
54	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011

Schedule of Investments February 28, 2011 (Unaudited)	BlackRock High Income Shares (HIS)
	(Percentages shown are based on Net Assets)

Common Stocks (a)	Shares		Value
Construction Materials — 0.0%
Nortek, Inc.		960	$	42,720
Containers & Packaging — 0.4%
Smurfit-Stone Container Corp.		14,168		544,618
Independent Power Producers & Energy Traders — 0.4%
NRG Energy, Inc.		25,000		499,750
Software — 0.2%
Bankruptcy Management Solutions, Inc.		251		877
HMH Holdings/EduMedia		39,515		197,575
				198,452
Wireless Telecommunication Services — 0.1%
FiberTower Corp.		38,271		127,060
Total Common Stocks — 1.1%				1,412,600
Corporate Bonds		Par  (000)
Aerospace & Defense — 0.3%
DynCorp International, Inc., 10.38%, 7/01/17 (b)	USD	120		129,000
Kratos Defense & Security Solutions, Inc., 10.00%, 6/01/17		210		236,775
				365,775
Air Freight & Logistics — 0.5%
National Air Cargo Group, Inc.:
Series 1, 12.38%, 9/02/15		334		333,958
Series 2, 12.38%, 10/08/15		337		337,167
				671,125
Airlines — 2.4%
Air Canada, 9.25%, 8/01/15 (b)		490		524,300
American Airlines, Inc., 10.50%, 10/15/12		440		482,900
American Airlines, Inc. Series 2001-2, 7.86%, 4/01/13		160		165,200
Continental Airlines, Inc.:
6.75%, 9/15/15 (b)		270		277,425
Series 2010-1-B, 6.00%, 7/12/20		200		199,500
Delta Air Lines, Inc., Series B, 9.75%, 12/17/16		473		511,318
United Air Lines, Inc., 12.75%, 7/15/12		835		932,853
				3,093,496
Auto Components — 1.8%
Allison Transmission, Inc. (b):
11.00%, 11/01/15		100		108,750
11.25%, 11/01/15 (c)		83		90,470
Delphi International Holdings Unsecured, 12.00%, 10/06/14		4		4,264
Exide Technologies, 8.63%, 2/01/18 (b)		170		181,263
Icahn Enterprises LP, 8.00%, 1/15/18		1,510		1,562,850
Stanadyne Corp., Series 1, 10.00%, 8/15/14		335		346,725
				2,294,322
Beverages — 0.2%
Cott Beverages, Inc., 8.13%, 9/01/18		125		134,531
Crown European Holdings SA, 7.13%, 8/15/18 (b)	EUR	115		169,010
				303,541
Biotechnology — 0.2%
QHP Pharma, 10.25%, 3/15/15 (b)	USD	225		226,477

Corporate Bonds	Par  (000)			Value
Building Products — 1.2%
Associated Materials LLC, 9.13%, 11/01/17 (b)	USD	220	$	237,875
Building Materials Corp. of America (b):
6.88%, 8/15/18		245		251,125
7.00%, 2/15/20		290		305,588
Momentive Performance Materials, Inc.:
11.50%, 12/01/16		80		86,800
9.00%, 1/15/21 (b)		590		627,612
				1,509,000
Capital Markets — 0.8%
American Capital Ltd., 7.96%, 12/31/13		230		235,536
E*Trade Financial Corp., Series A, 0.17%, 8/31/19 (d)(e)		295		455,775
KKR Group Finance Co., 6.38%, 9/29/20 (b)		300		309,098
				1,000,409
Chemicals — 3.1%
American Pacific Corp., 9.00%, 2/01/15		400		393,000
Chemtura Corp., 7.88%, 9/01/18 (b)		245		261,537
Georgia Gulf Corp., 9.00%, 1/15/17 (b)		75		83,438
Hexion U.S. Finance Corp.:
8.88%, 2/01/18		345		370,444
9.00%, 11/15/20 (b)		170		180,838
Huntsman International LLC (b):
6.88%, 11/15/13	EUR	130		183,430
8.63%, 3/15/21	USD	230		255,300
Ineos Finance Plc, 9.00%, 5/15/15 (b)		195		214,012
KRATON Polymers LLC, 6.75%, 3/01/19 (b)		55		56,100
MacDermid, Inc., 9.50%, 4/15/17 (b)		555		591,075
Nalco Co., 6.63%, 1/15/19 (b)		150		155,063
Nexeo Solutions LLC, 8.38%, 3/01/18 (b)(f)		85		86,488
OXEA Finance/Cy SCA, 9.50%, 7/15/17 (b)		355		389,612
Omnova Solutions, Inc., 7.88%, 11/01/18 (b)		65		66,706
Polymer Group, Inc., 7.75%, 2/01/19 (b)		65		67,681
PolyOne Corp., 7.38%, 9/15/20		100		106,000
Rhodia SA, 6.88%, 9/15/20 (b)		360		368,550
TPC Group LLC, 8.25%, 10/01/17 (b)		155		164,881
				3,994,155
Commercial Banks — 2.9%
CIT Group, Inc.:
7.00%, 5/01/16		1,088		1,097,939
7.00%, 5/01/17		2,571		2,590,063
				3,688,002
Commercial Services & Supplies — 1.8%
ACCO Brands Corp., 10.63%, 3/15/15		350		395,500
AWAS Aviation Capital Ltd., 7.00%, 10/15/16 (b)		200		205,500
Brickman Group Holdings, Inc., 9.13%, 11/01/18 (b)		140		150,500
Casella Waste Systems, Inc., 7.75%, 2/15/19 (b)		174		178,350
International Lease Finance Corp., 8.25%, 12/15/20		151		167,988
Mobile Mini, Inc., 7.88%, 12/01/20 (b)		105		111,825
RSC Equipment Rental, Inc. (b):
10.00%, 7/15/17		275		316,250
8.25%, 2/01/21		267		282,352
West Corp. (b):
8.63%, 10/01/18		345		365,700
7.88%, 1/15/19		95		97,494
				2,271,459
Communications Equipment — 0.2%
Avaya Inc., 7.00%, 4/01/19 (b)		200		198,000
Computers & Peripherals — 0.3%
EMC Corp., 1.75%, 12/01/13 (d)		240		419,400

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	55

Schedule of Investments (continued)	BlackRock High Income Shares (HIS)
	(Percentages shown are based on Net Assets)

Corporate Bonds	Par  (000)		Value
Construction Materials — 1.3%
Nortek, Inc.:
11.00%, 12/01/13	USD	964	$	1,026,943
10.00%, 12/01/18 (b)		550		587,125
				1,614,068
Consumer Finance — 0.9%
Credit Acceptance Corp., 9.13%, 2/01/17		320		344,800
Ford Motor Credit Co. LLC:
3.05%, 1/13/12 (g)		145		146,478
7.80%, 6/01/12		300		319,933
6.63%, 8/15/17		360		382,888
				1,194,099
Containers & Packaging — 2.0%
Ardagh Packaging Finance Plc, 7.38%, 10/15/17 (b)	EUR	285		406,067
Ball Corp., 6.75%, 9/15/20	USD	250		261,875
Berry Plastics Corp.:
8.25%, 11/15/15		65		69,631
9.75%, 1/15/21 (b)		430		431,075
Graham Packaging Co. LP, 8.25%, 10/01/18		115		123,913
Graphic Packaging International, Inc.:
9.50%, 6/15/17		355		394,050
7.88%, 10/01/18		185		198,875
OI European Group BV, 6.88%, 3/31/17	EUR	100		143,687
Pregis Corp., 12.38%, 10/15/13	USD	484		487,630
				2,516,803
Diversified Financial Services — 5.6%
Ally Financial, Inc.:
7.50%, 12/31/13		90		98,100
2.51%, 12/01/14 (g)		156		153,294
8.30%, 2/12/15		480		541,800
6.25%, 12/01/17 (b)		340		354,875
8.00%, 3/15/20		660		743,325
7.50%, 9/15/20 (b)		520		568,750
8.00%, 11/01/31		390		446,703
8.00%, 11/01/31		450		515,250
Axcan Intermediate Holdings, Inc., 12.75%, 3/01/16		205		226,012
FCE Bank Plc, 7.13%, 1/15/13	EUR	450		654,355
Leucadia National Corp., 8.13%, 9/15/15	USD	540		594,000
Reynolds Group DL Escrow, Inc., 7.75%, 10/15/16 (b)		595		633,675
Reynolds Group Issuer, Inc. (b):
7.13%, 4/15/19		270		276,750
9.00%, 4/15/19		870		906,975
6.88%, 2/15/21		180		180,450
8.25%, 2/15/21		225		225,563
				7,119,877
Diversified Telecommunication Services — 3.9%
Broadview Networks Holdings, Inc., 11.38%, 9/01/12		480		478,200
Frontier Communications Corp.:
8.25%, 4/15/17		196		216,580
8.50%, 4/15/20		180		199,800
GCI, Inc., 8.63%, 11/15/19		600		660,000
ITC Deltacom, Inc., 10.50%, 4/01/16		170		186,575
Level 3 Communications, Inc., 6.50%, 10/01/16 (d)		120		171,300
Level 3 Financing, Inc.:
9.25%, 11/01/14		60		61,950
8.75%, 2/15/17		660		648,450
Qwest Communications International, Inc.:
7.50%, 2/15/14		910		923,650
8.00%, 10/01/15		300		327,375
Series B, 7.50%, 2/15/14		540		548,100

Corporate Bonds	Par (000)		Value
Diversified Telecommunication Services (concluded)
Windstream Corp.:
8.13%, 8/01/13	USD	112	$	123,340
8.63%, 8/01/16		205		216,788
7.88%, 11/01/17		253		274,821
				5,036,929
Electric Utilities — 0.5%
Elwood Energy LLC, 8.16%, 7/05/26		358		356,216
Salton Sea Funding Corp., Series E, 8.30%, 5/30/11		235		236,704
				592,920
Electronic Equipment, Instruments & Components — 0.7%
CDW LLC:
11.00%, 10/12/15		60		65,250
11.50%, 10/12/15 (c)		300		325,500
8.00%, 12/15/18 (b)		260		279,500
NXP BV, 3.05%, 10/15/13 (g)		225		223,875
				894,125
Energy Equipment & Services — 1.5%
Bayou Well Services, 0.16%, 12/22/13		300		300,000
Calfrac Holdings LP, 7.50%, 12/01/20 (b)		115		117,875
Compagnie Générale de Géophysique-Veritas:
7.50%, 5/15/15		485		501,975
7.75%, 5/15/17		170		179,775
Exterran Holdings, Inc., 7.25%, 12/01/18 (b)		205		210,125
Frac Tech Services LLC, 7.13%, 11/15/18 (b)		285		294,975
Precision Drilling Corp., 6.63%, 11/15/20 (b)		55		56,788
Thermon Industries, Inc., 9.50%, 5/01/17		255		276,037
				1,937,550
Food & Staples Retailing — 0.5%
BI-LO LLC, 9.25%, 2/15/19 (b)		150		156,000
Rite Aid Corp.:
9.75%, 6/12/16		195		219,619
7.50%, 3/01/17		290		291,812
				667,431
Food Products — 0.7%
B&G Foods, Inc., 7.63%, 1/15/18		100		106,750
Blue Merger Sub Inc., 7.63%, 2/15/19 (b)		480		484,800
Reddy Ice Corp., 11.25%, 3/15/15		210		220,500
Smithfield Foods, Inc., 10.00%, 7/15/14		33		38,940
				850,990
Health Care Equipment & Supplies — 1.5%
DJO Finance LLC, 10.88%, 11/15/14		1,135		1,244,243
Hologic, Inc., 2.00%, 12/15/37 (d)(h)		665		640,894
				1,885,137
Health Care Providers & Services — 5.7%
Aviv Healthcare Properties LP, 7.75%, 2/15/19 (b)		130		135,525
ConvaTec Healthcare E SA (b):
7.38%, 12/15/17	EUR	200		287,030
10.50%, 12/15/18	USD	220		234,850
DaVita, Inc., 6.38%, 11/01/18		180		182,475
Gentiva Health Services Inc., 11.50%, 9/01/18		325		366,031
HCA, Inc.:
9.13%, 11/15/14		620		650,225
8.50%, 4/15/19		465		520,800
7.25%, 9/15/20		1,295		1,396,981
inVentiv Health, Inc., 10.00%, 8/15/18 (b)		300		308,250

See Notes to Financial Statements.
56	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011

Schedule of Investments (continued)	BlackRock High Income Shares (HIS)
	(Percentages shown are based on Net Assets)

Corporate Bonds	Par  (000)		Value
Health Care Providers & Services (concluded)
Omnicare, Inc.:
6.13%, 6/01/13	USD	84	$	84,315
6.88%, 12/15/15		200		206,500
7.75%, 6/01/20		290		309,575
Priory Group Ltd., 7.00%, 2/15/18	GBP	100		166,629
Tenet Healthcare Corp.:
9.00%, 5/01/15	USD	747		821,700
10.00%, 5/01/18		257		301,975
8.88%, 7/01/19		1,175		1,336,563
				7,309,424
Health Care Technology — 1.1%
IMS Health, Inc., 12.50%, 3/01/18 (b)		1,125		1,319,062
MedAssets, Inc., 8.00%, 11/15/18 (b)		75		77,063
				1,396,125
Hotels, Restaurants & Leisure — 3.0%
Boyd Gaming Corp., 9.13%, 12/01/18 (b)		285		299,250
Caesars Entertainment Operating Co., Inc., 10.00%, 12/15/18		1,710		1,607,400
CityCenter Holdings LLC, 7.63%, 1/15/16 (b)		155		161,587
Diamond Resorts Corp., 12.00%, 8/15/18 (b)		550		589,875
Harrah’s Operating Co., Inc., 11.25%, 6/01/17		310		351,850
MGM Resorts International:
10.38%, 5/15/14		125		140,000
11.13%, 11/15/17		390		449,475
Palace Entertainment Holding LLC, 8.88%, 4/15/17 (b)		55		56,100
Travelport LLC:
4.94%, 9/01/14 (g)		75		66,938
9.88%, 9/01/14		90		87,862
9.00%, 3/01/16		60		56,700
Tropicana Entertainment LLC, Series WI, 9.63%, 12/15/14 (a)(i)		215		22
				3,867,059
Household Durables — 3.8%
American Standard Americas, 10.75%, 1/15/16 (b)		190		201,875
Ashton Woods USA LLC, 23.20%, 6/30/15 (b)(j)		400		260,000
Beazer Homes USA, Inc.:
8.13%, 6/15/16		145		147,356
12.00%, 10/15/17		720		837,000
9.13%, 6/15/18		915		944,737
Jarden Corp., 7.50%, 1/15/20	EUR	140		201,404
Ryland Group, Inc., 6.63%, 5/01/20	USD	315		308,700
Standard Pacific Corp.:
10.75%, 9/15/16		890		1,045,750
8.38%, 5/15/18 (b)		220		233,200
8.38%, 5/15/18		210		222,600
8.38%, 1/15/21 (b)		360		379,800
				4,782,422
IT Services — 1.8%
First Data Corp. (b):
8.25%, 1/15/21		806		801,970
12.63%, 1/15/21		383		401,192
iPayment, Inc., 9.75%, 5/15/14		335		332,069
iPayment Investors LP, 12.75%, 7/15/14 (b)(c)		292		271,964
SunGard Data Systems, Inc. (b):
7.38%, 11/15/18		220		227,150
7.63%, 11/15/20		280		289,100
				2,323,445

Corporate Bonds	Par  (000)		Value
Independent Power Producers & Energy Traders — 4.2%
AES Red Oak LLC, Series B, 9.20%, 11/30/29	USD	1,250	$	1,231,250
Calpine Construction Finance Co. LP, 8.00%, 6/01/16 (b)		600		651,000
Calpine Corp. (b):
7.50%, 2/15/21		215		219,838
7.88%, 1/15/23		290		297,975
Energy Future Holdings Corp., 10.00%, 1/15/20 (b)		1,460		1,520,374
Energy Future Intermediate Holding Co. LLC, 10.00%, 12/01/20		81		84,552
NRG Energy, Inc., 7.63%, 1/15/18 (b)		1,245		1,296,356
				5,301,345
Industrial Conglomerates — 2.4%
Sequa Corp. (b):
11.75%, 12/01/15		1,060		1,150,100
13.50%, 12/01/15 (c)		1,770		1,959,767
				3,109,867
Insurance — 1.0%
Alliant Holdings I, Inc., 11.00%, 5/01/15 (b)		800		846,000
CNO Financial Group, Inc., 9.00%, 1/15/18 (b)		159		169,335
USI Holdings Corp., 4.16%, 11/15/14 (b)(g)		310		299,150
				1,314,485
Machinery — 2.0%
AGY Holding Corp., 11.00%, 11/15/14		700		623,000
Navistar International Corp.:
3.00%, 10/15/14 (d)		760		1,062,100
8.25%, 11/01/21		310		343,325
Oshkosh Corp., 8.25%, 3/01/17		50		55,500
Titan International, Inc. (b):
5.63%, 1/15/17 (d)		110		286,550
7.88%, 10/01/17		190		203,300
				2,573,775
Marine — 0.5%
Horizon Lines, Inc., 4.25%, 8/15/12 (d)		700		649,250
Media — 13.3%
Affinion Group, Inc., 7.88%, 12/15/18 (b)		260		248,950
CCH II LLC, 13.50%, 11/30/16		457		553,714
CCO Holdings LLC:
7.88%, 4/30/18		220		234,850
8.13%, 4/30/20		220		237,325
CMP Susquehanna Corp., 3.44%, 5/15/14		69		48,639
CSC Holdings, Inc., 8.50%, 4/15/14		180		201,600
Cengage Learning Acquisitions, Inc., 10.50%, 1/15/15 (b)		665		689,937
Checkout Holding Corp., 10.97%, 11/15/15 (b)(e)		405		261,225
Citadel Broadcasting Corp., 7.75%, 12/15/18 (b)		120		128,700
Clear Channel Communications Inc., 9.00%, 3/01/21 (b)		115		116,869
Clear Channel Worldwide Holdings, Inc.:
9.25%, 12/15/17		701		778,110
Series B, 9.25%, 12/15/17		2,596		2,888,050
Cox Enterprises, Inc.:
Loan Close 2, 4.00%, 8/15/18		309		308,686
Loan Close 3, 12.00%, 8/15/18		353		352,917
Shares Loan, 4.00%, 8/15/18		364		363,981
DISH DBS Corp., 7.00%, 10/01/13		192		206,400
Gray Television, Inc., 10.50%, 6/29/15		445		472,813
Harland Clarke Holdings Corp.:
6.00%, 5/15/15 (g)		160		143,600
9.50%, 5/15/15		190		186,675
Interactive Data Corp., 10.25%, 8/01/18 (b)		480		537,600
Liberty Global, Inc., 4.50%, 11/15/16 (d)		180		311,850
Live Nation Entertainment, Inc., 8.13%, 5/15/18 (b)		365		375,950

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	57

Schedule of Investments (continued)	BlackRock High Income Shares (HIS)
	(Percentages shown are based on Net Assets)

Corporate Bonds		Par  (000)	Value
Media (concluded)
NAI Entertainment Holdings LLC, 8.25%, 12/15/17 (b)	USD	290	$	311,750
Nielsen Finance LLC:
11.63%, 2/01/14		72		84,600
7.75%, 10/15/18 (b)		970		1,048,812
ProQuest LLC, 9.00%, 10/15/18 (b)		230		238,050
ProtoStar I Ltd., 18.00%, 10/15/12 (a)(b)(d)(i)		1,427		14,274
Rainbow National Services LLC, 10.38%, 9/01/14 (b)		1,813		1,887,786
Regal Entertainment Group, 9.13%, 8/15/18		180		192,600
Unitymedia GmbH, 9.63%, 12/01/19	EUR	100		156,797
Univision Communications, Inc., 7.88%, 11/01/20 (b)	USD	215		230,588
UPC Germany GmbH (b):
8.13%, 12/01/17		425		455,813
8.13%, 12/01/17	EUR	175		259,905
9.63%, 12/01/19		245		384,152
UPC Holding BV, 9.88%, 4/15/18 (b)	USD	300		333,000
UPCB Finance II Ltd., 6.38%, 7/01/20	EUR	371		505,548
Virgin Media Secured Finance Plc, 7.00%, 1/15/18	GBP	200		350,327
Ziggo Bond Co. BV, 8.00%, 5/15/18 (b)	EUR	175		258,999
Ziggo Finance BV, 6.13%, 11/15/17 (b)		370		522,070
				16,883,512
Metals & Mining — 3.2%
Drummond Co., Inc.:
9.00%, 10/15/14 (b)	USD	290		309,575
7.38%, 2/15/16		105		108,675
FMG Resources August 2006 Property Ltd., 7.00%, 11/01/15 (b)		735		762,562
Goldcorp, Inc., 2.00%, 8/01/14 (d)		250		314,688
Newmont Mining Corp., Series A, 1.25%, 7/15/14 (d)		200		266,750
Novelis, Inc., 8.75%, 12/15/20 (b)		1,625		1,791,562
Ryerson, Inc.:
7.68%, 11/01/14 (g)		180		172,800
12.00%, 11/01/15		100		107,500
Steel Dynamics, Inc., 7.38%, 11/01/12		175		185,938
				4,020,050
Multiline Retail — 1.8%
Dollar General Corp., 11.88%, 7/15/17 (c)		2,020		2,335,625
Oil, Gas & Consumable Fuels — 8.0%
Alpha Natural Resources Inc., 2.38%, 4/15/15 (d)		110		143,687
Arch Coal, Inc., 7.25%, 10/01/20		400		425,000
Berry Petroleum Co., 8.25%, 11/01/16		275		290,469
Bill Barrett Corp., 9.88%, 7/15/16		20		22,400
Carrizo Oil & Gas, Inc., 8.63%, 10/15/18 (b)		105		111,563
Chaparral Energy Inc., 8.25%, 9/01/21 (b)		115		117,012
Chesapeake Energy Corp.:
6.50%, 8/15/17		235		252,037
6.63%, 8/15/20		730		766,500
6.13%, 2/15/21		430		438,600
2.25%, 12/15/38 (d)		375		343,125
Coffeyville Resources LLC, 9.00%, 4/01/15 (b)		122		132,980
Concho Resources Inc., 7.00%, 1/15/21		190		199,025
Connacher Oil and Gas Ltd. (b):
11.75%, 7/15/14		85		92,013
10.25%, 12/15/15		520		549,900
Consol Energy, Inc., 8.25%, 4/01/20		920		1,014,300
Continental Resources, Inc., 7.13%, 4/01/21 (b)		170		181,050
Crosstex Energy LP, 8.88%, 2/15/18		85		93,713
Denbury Resources Inc.:
8.25%, 2/15/20		348		387,150
6.38%, 8/15/21		160		161,600
Energy Transfer Equity LP, 7.50%, 10/15/20		65		70,444

Corporate Bonds		Par  (000)	Value
Oil, Gas & Consumable Fuels (concluded)
Energy XXI Gulf Coast, Inc. (b):
9.25%, 12/15/17	USD	195	$	209,625
7.75%, 6/15/19		240		242,400
Hilcorp Energy I LP, 7.63%, 4/15/21 (b)		360		379,800
Linn Energy LLC (b):
8.63%, 4/15/20		515		574,225
7.75%, 2/01/21		275		292,187
MarkWest Energy Partners LP, 6.75%, 11/01/20		120		123,000
Niska Gas Storage US LLC, 8.88%, 3/15/18 (b)		875		953,750
Oasis Petroleum, Inc., 7.25%, 2/01/19 (b)		105		106,575
Peabody Energy Corp., 6.50%, 9/15/20		250		267,500
Petrohawk Energy Corp.:
10.50%, 8/01/14		180		207,000
7.88%, 6/01/15		210		222,600
Range Resources Corp., 8.00%, 5/15/19		200		220,250
SM Energy Co., 6.63%, 2/15/19 (b)		135		136,519
Teekay Corp., 8.50%, 1/15/20		300		322,875
United Refining Co., 10.50%, 2/28/18 (b)(f)		120		118,800
				10,169,674
Paper & Forest Products — 2.8%
Boise Paper Holdings LLC:
9.00%, 11/01/17		155		172,825
8.00%, 4/01/20		70		77,175
Catalyst Paper Corp., 7.38%, 3/01/14		175		151,375
Clearwater Paper Corp.:
10.63%, 6/15/16		185		211,363
7.13%, 11/01/18 (b)		270		280,125
Georgia-Pacific LLC, 8.25%, 5/01/16 (b)		755		851,262
NewPage Corp., 11.38%, 12/31/14		1,280		1,276,800
Verso Paper Holdings LLC:
11.50%, 7/01/14		405		446,512
8.75%, 2/01/19 (b)		105		109,725
				3,577,162
Pharmaceuticals — 0.9%
Angiotech Pharmaceuticals, Inc., 4.06%, 12/01/13 (g)		420		352,800
Grifols, Inc., 8.25%, 2/01/18 (b)		60		61,650
Novasep Holding SAS, 9.75%, 12/15/16 (b)		373		296,535
Valeant Pharmaceuticals International (b):
6.75%, 10/01/17		175		181,125
7.00%, 10/01/20		225		232,594
				1,124,704
Professional Services — 0.6%
FTI Consulting, Inc.:
7.75%, 10/01/16		275		288,406
6.75%, 10/01/20 (b)		425		425,000
				713,406
Real Estate Investment Trusts (REITs) — 0.4%
Omega Healthcare Investors, Inc., 6.75%, 10/15/22 (b)		245		247,450
The Rouse Co. LP, 6.75%, 11/09/15		240		251,400
				498,850
Real Estate Management & Development — 1.3%
CB Richard Ellis Services Inc,, 6.63%, 10/15/20		160		165,000
Realogy Corp. (b):
11.50%, 4/15/17		355		378,075
7.88%, 2/15/19		1,165		1,169,369
				1,712,444

See Notes to Financial Statements.
58	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011

Schedule of Investments (continued)	BlackRock High Income Shares (HIS)
	(Percentages shown are based on Net Assets)

Corporate Bonds		Par  (000)	Value
Road & Rail — 1.5%
Avis Budget Car Rental LLC:
9.63%, 3/15/18	USD	240	$	268,200
8.25%, 1/15/19		355		376,744
Florida East Coast Railway Corp., 8.13%, 2/01/17 (b)		200		209,000
The Hertz Corp. (b):
7.50%, 10/15/18		420		444,675
6.75%, 4/15/19		195		198,900
7.38%, 1/15/21		225		235,125
Syncreon Global Ireland Ltd., 9.50%, 5/01/18 (b)		170		176,375
				1,909,019
Semiconductors & Semiconductor Equipment — 0.3%
Linear Technology Corp., Series A, 3.00%, 5/01/27 (d)		200		217,750
Spansion LLC, 7.88%, 11/15/17 (b)		130		132,600
				350,350
Specialty Retail — 1.5%
Asbury Automotive Group, Inc., 8.38%, 11/15/20 (b)		155		162,750
Claire’s Escrow Corp., 8.88%, 3/15/19 (b)(f)		150		150,563
Hillman Group, Inc., 10.88%, 6/01/18		250		275,000
Limited Brands, Inc., 8.50%, 6/15/19		70		80,150
PETCO Animal Supplies, Inc., 9.25%, 12/01/18 (b)		210		226,800
Sonic Automotive, Inc., 9.00%, 3/15/18		175		187,250
Toys ‘R’ US-Delaware, Inc., 7.38%, 9/01/16 (b)		200		210,750
United Auto Group, Inc., 7.75%, 12/15/16		655		676,287
				1,969,550
Transportation Infrastructure — 0.2%
Aguila 3 SA, 7.88%, 1/31/18 (b)		198		205,425
Wireless Telecommunication Services — 4.5%
Clearwire Communications LLC (b):
12.00%, 12/01/15		110		119,900
12.00%, 12/01/17		270		291,600
Cricket Communications, Inc.:
10.00%, 7/15/15		325		358,312
7.75%, 5/15/16		320		338,400
Digicel Group Ltd. (b):
8.88%, 1/15/15		370		384,800
9.13%, 1/15/15		1,220		1,270,630
8.25%, 9/01/17		565		590,425
10.50%, 4/15/18		200		228,000
FiberTower Corp., 9.00%, 1/01/16 (c)		151		129,095
Intelsat Jackson Holdings SA, 7.25%, 10/15/20 (b)		155		159,263
iPCS, Inc., 2.43%, 5/01/13 (g)		330		325,875
MetroPCS Wireless, Inc.:
7.88%, 9/01/18		240		253,500
6.63%, 11/15/20		350		340,813
NII Holdings, Inc., 3.13%, 6/15/12 (d)		170		169,150
Sprint Capital Corp., 6.88%, 11/15/28		650		585,812
Syniverse Holdings, Inc., 9.13%, 1/15/19 (b)		120		129,600
				5,675,175
Total Corporate Bonds — 100.6%				128,117,233
Floating Rate Loan Interests (g)		Par  (000)	Value
Building Products — 0.3%
Goodman Global, Inc., Term Loan (Second Lien), 9.00%, 10/13/17	USD	300	$	309,187
Chemicals — 0.2%
Styron Sarl, Term Loan, 7.50%, 6/17/16		300		302,700
Commercial Services & Supplies — 0.8%
AWAS Finance Luxembourg Sarl, Term Loan B, 7.75%, 6/10/16		240		246,450
Delos Aircraft, Inc., Term Loan 2, 7.00%, 3/17/16		325		327,786
Volume Services America, Inc. (Centerplate), Term Loan B, 10.50%, 8/24/16		449		453,175
				1,027,411
Consumer Finance — 1.6%
AGFS Funding Co., Term Loan, 7.25%, 4/21/15		2,000		2,017,800
Electric Utilities — 0.0%
New Development Holdings LLC, Term Loan, 7.00%, 7/03/17		45		45,440
Food Products — 0.3%
Advance Pierre Foods, Term Loan, 11.25%, 9/29/17		400		410,000
Health Care Providers & Services — 0.7%
Harden Healthcare, Inc.:
Add-on Term Loan, 7.75%, 3/02/15		285		279,300
Tranche A Term Loan, 8.50%, 2/22/15		203		198,500
inVentiv Health, Inc. (FKA Ventive Health, Inc.), Term Loan B, 4.75%, 7/31/16		398		399,741
				877,541
Hotels, Restaurants & Leisure — 0.8%
Harrah’s Operating Co., Inc., Term Loan B-3, 3.30%, 1/28/15		200		185,694
Travelport LLC (FKA Travelport, Inc.), Loan, 8.31%, 3/27/12 (c)		946		843,969
				1,029,663
Household Durables — 0.7%
Visant Corp. (FKA Jostens), Term Loan B, 7.00%, 12/20/16		499		503,214
Visant Holding Corp. 5.25%, 12/22/16		440		440,000
				943,214
IT Services — 0.5%
First Data Corp.:
Initial Tranche B-2 Term Loan, 3.01%, 9/24/14		192		181,437
Initial Tranche B-3 Term Loan, 3.01%, 9/24/14		421		398,279
				579,716
Independent Power Producers & Energy Traders — 1.0%
Texas Competitive Electric Holdings Co., LLC (TXU):
Initial Tranche B-3 Term Loan, 3.76%, 10/10/14		1,451		1,220,138
Term Loan B2, 3.76%, 10/10/14		89		74,939
				1,295,077
Media — 4.1%
Cengage Learning Acquisitions, Inc. (Thomson Learning), Tranche 1 Incremental Term Loan, 7.50%, 7/03/14		731		734,540
HMH Publishing Co., Ltd., Tranche A Term Loan, 6.01%, 6/12/14		428		406,529
Intelsat Jackson Holdings Ltd., Term Loan B, 5.25%, 3/07/18		3,300		3,322,173
Newsday, LLC, Fixed Rate Term Loan, 10.50%, 8/01/13		750		797,344
				5,260,586

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	59

Schedule of Investments (continued)	BlackRock High Income Shares (HIS)
	(Percentages shown are based on Net Assets)

Floating Rate Loan Interests (g)		Par  (000)		Value
Metals & Mining — 0.1%
Euramax International, Inc., Domestic Term Loan:
10.00%, 6/29/13	USD	78		$	74,641
14.00%, 6/29/13		74			71,652
					146,293
Multiline Retail — 0.1%
The Neiman Marcus Group, Inc., Term Loan, 2.29%, 4/06/13		117			117,364
Oil, Gas & Consumable Fuels — 1.2%
Obsidian Natural Gas Trust, Term Loan, 7.00%, 11/30/15		1,078			1,104,550
Turbo Beta Ltd., Dollar Facility, 14.50%, 3/15/18 (c)		1,069			438,228
					1,542,778
Paper & Forest Products — 0.4%
Verso Paper Finance Holdings LLC, PIK Loan, 7.30%, 2/01/13		499			449,167
Real Estate Investment Trusts (REITs) — 0.1%
iStar Financial, Inc., Term Loan (Second Lien), 6/28/11		100			98,625
Real Estate Management & Development — 0.3%
Realogy Corp.:
Synthetic Letter of Credit, 4.51%, 10/10/13		24			22,654
Term Loan B, 4.56%, 10/16/16		351			336,734
Term Loan C, 4.51%, 10/16/16		42			39,905
					399,293
Specialty Retail — 0.2%
Claire’s Stores, Inc., Term Loan B, 3.01%, 5/29/14		73			71,496
Michaels Stores, Inc., Term Loan B-1, 2.56%, 10/31/13		153			152,681
					224,177
Wireless Telecommunication Services — 0.6%
Vodafone Americas Finance 2 Inc., Initial Loan, 6.88%, 7/30/15		776			803,675
Total Floating Rate Loan Interests — 14.0%					17,879,707
Other Interests (a)(l)		Beneficial Interest (000)
Auto Components — 0.4%
Delphi Debtor-in-Possession Holding Co. LLP, Class B Membership Interests		—	(k)		560,224
Health Care Providers & Services — 0.0%
Critical Care Systems International, Inc.		5			477
Total Other Interests — 0.4%					560,701
Preferred Stocks		Shares		Value
Automobiles — 0.8%
General Motors Co., 4.75% (d)		20,600		$	1,048,128
Media — 0.1%
CMP Susquehanna Radio Holdings Corp., 0.00% (a)(b)(g)		16,138			—
Emmis Communications Corp., Series A, 6.25% (a)(d)		10,300			180,250
					180,250
Professional Services — 0.1%
Nielsen Holdings NV, 6.25% (a)(d)		2,000			110,375
Real Estate Investment Trusts (REITs) — 0.1%
MPG Office Trust, Inc., Series A, 7.63% (a)(d)		4,171			77,372
Thrifts & Mortgage Finance — 0.1%
Fannie Mae, Series O (a)		10,000			32,000
Freddie Mac, Series Z (a)		31,930			61,944
					93,944
Total Preferred Stocks — 1.2%					1,510,069
Warrants (m)
Media — 0.0%
CMP Susquehanna Radio Holdings Corp. (Expires 3/26/19) (b)		18,441			—
Software — 0.0%
Bankruptcy Management Solutions, Inc. (Expires 9/29/17)		167			2
HMH Holdings/EduMedia (Expires 3/09/17)		3,476			—
					2
Total Warrants — 0.0%					2
Total Long-Term Investments (Cost — $142,423,935) — 117.3%					149,480,312
Short-Term Securities
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.15% (n)(o)		1,388,372			1,388,372
Total Short-Term Securities (Cost — $1,388,372) — 1.1%					1,388,372
Total Investments (Cost — $143,812,307*) — 118.4%					150,868,684
Liabilities in Excess of Other Assets — (18.4)%					(23,501,463	)
Net Assets — 100.0%				$	127,367,221

See Notes to Financial Statements.
60	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011

Schedule of Investments (continued) BlackRock High Income Shares (HIS)

*	The cost and unrealized appreciation (depreciation) of investments as of February 28, 2011, as computed for federal income tax purposes were as follows:
	Aggregate cost	$	143,425,515
	Gross unrealized appreciation	$	10,223,896
	Gross unrealized depreciation		(2,780,727	)
	Net unrealized appreciation	$	7,443,169

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

Counterparty	Value		Unrealized Appreciation (Depreciation)
Bank of America NA	$	61,050	$	1,050
Credit Suisse International	$	269,363	$	3,630
Sterne Agee	$	25,438	$	(62	)

(g)	Variable rate security. Rate shown is as of report date.
(h)	Represents a step-down bond that pays an initial coupon rate for the first period and then a lower coupon rate for the following periods. Rate shown is as of report date.
(i)	Issuer filed for bankruptcy and/or is in default of interest payments.
(j)	Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown is as of report date.
(k)	Amount is less than $1,000.
(l)	Other interests represent beneficial interest in liquidation trusts and other reorganization entities and are non-income producing.
(m)	Warrants entitle the Trust to purchase a predetermined number of shares of common stock and are non-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date, if any.
(n)	Represents the current yield as of report date.
(o)	Investments in companies considered to be an affiliate of the Trust during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate	Shares Held at August 31, 2010		Net Activity			Shares Held at February 28, 2011		Income
BlackRock Liquidity Funds, TempFund, Institutional Class		2,032,818		(644,446	)		1,388,372	$	1,748

• Financial futures contracts sold as of February 28, 2011 were as follows:

Contracts	Issue	Exchange	Expiration	Notional Value		Unrealized Depreciation
30	S&P E-Mini Mercantile	Chicago	March 2011	$	1,902,242	$	(86,908	)

• Foreign currency exchange contracts as of February 28, 2011 were as follows:

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Depreciation
USD	85,369	GBP	53,000	Citibank NA		4/14/11	$	(758	)
USD	417,526	GBP	260,000	Deutsche Bank AG		4/14/11		(4,984	)
USD	3,462,305	EUR	2,530,000	Citibank NA		4/27/11		(26,545	)
USD	638,157	EUR	466,000	Royal Bank of Scotland		4/27/11		(4,453	)
Total							$	(36,740	)

•	For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by Trust management. This definition may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.
•	Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivatives. These inputs are summarized in three broad levels for financial statement purposes as follows:
	•	Level 1 — price quotations in active markets/exchanges for identical assets and liabilities
	•	Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
	•	Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments)
	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 Trust’s policy regarding valuation of investments and derivatives and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	61

Schedule of Investments (concluded) BlackRock High Income Shares (HIS)

The following tables summarize the inputs used as of February 28, 2011 in determining the fair valuation of the Trust’s investments and derivatives:

Valuation Inputs	Level 1			Level 2			Level 3			Total
Assets:
Investments in Securities:
Common Stocks	$	1,214,148		$	877		$	197,575		$	1,412,600
Corporate Bonds		—			126,101,964			2,015,269			128,117,233
Floating Rate Loan Interests		—			14,196,287			3,683,420			17,879,707
Other Interests		—			560,224			477			560,701
Preferred Stocks		1,367,694			142,375			—			1,510,069
Warrants		—			—			2			2
Short-Term Securities		1,388,372			—			—			1,388,372
Liabilities:
Unfunded Loan Commitments		—			—			(1,105	)		(1,105	)
Total	$	3,970,214		$	141,001,727		$	5,895,638		$	150,867,579
	Derivative Financial Instruments1
Valuation Inputs	Level 1			Level 2			Level 3			Total
Liabilities:
Foreign currency exchange contracts		—		$	(36,740	)		—		$	(36,740	)
Interest rate contracts	$	(86,908	)		—			—			(86,908	)
Total	$	(86,908	)	$	(36,740	)		—		$	(123,648	)

¹ Derivative financial instruments are financial futures contracts and foreign currency exchange contracts. Financial futures contracts and foreign currency exchange contracts 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 in determining fair value:

	Common Stocks			Corporate Bonds			Floating Rate Loan Interests			Other Interests			Preferred Stocks			Warrants		Unfunded Loan Commitments			Total
Assets/Liabilities:
Balance, as of August 31, 2010	$	283,463		$	3,070,692		$	5,191,058		$	953		$	417,114			—	$	(2,026	)	$	8,961,254
Accrued discounts/premiums		—			106,362			219,167			—			—			—		—			325,529
Net realized gain (loss)		(2,246,360	)		—			104,121			—			831,079			—		—			(1,311,160	)
Net change in unrealized appreciation/depreciation2		2,395,668			(1,384,292	)		362,698			(476	)		(84,683	)		—		921			1,289,836
Purchases		—			300,000			1,856,218			—			—		$	2		—			2,156,220
Sales		(235,196	)		(28,875	)		(4,010,045	)		—			(1,163,510	)		—		—			(5,437,626	)
Transfers in3		—			—			438,228			—			—			—		—			438,228
Transfers out3		—			(48,618	)		(478,025	)		—			—			—		—			(526,643	)
Balance, as of February 28, 2011	$	197,575		$	2,015,269		$	3,683,420		$	477			—		$	2	$	(1,105	)	$	5,895,638

2	Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations. The net change in unrealized appreciation/depreciation on securities still held at February 28, 2011 was $(1,000,072).
3	The Trust’s policy is to recognize transfers in and transfers out as of the end of the period of the event or the change in circumstances that caused the transfer.

See Notes to Financial Statements.
62	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011

Schedule of Investments February 28, 2011 (Unaudited)	BlackRock High Yield Trust (BHY)
	(Percentages shown are based on Net Assets)

Common Stocks (a)	Shares		Value
Capital Markets — 0.2%
E*Trade Financial Corp.		4,900	$	78,302
Commercial Banks — 0.1%
CIT Group, Inc.		600		25,992
Construction Materials — 0.0%
Nortek, Inc.		375		16,687
Machinery — 0.1%
Navistar International Corp.		474		29,379
Paper & Forest Products — 0.0%
Ainsworth Lumber Co. Ltd.		2,234		7,381
Ainsworth Lumber Co. Ltd. (b)		2,507		8,283
				15,664
Software — 0.1%
Bankruptcy Management Solutions, Inc.		91		319
HMH Holdings/EduMedia		13,576		67,880
				68,199
Total Common Stocks — 0.5%				234,223
Corporate Bonds	Par (000)
Air Freight & Logistics — 0.5%
National Air Cargo Group, Inc.:
Series 1, 12.38%, 9/02/15	$	119		119,271
Series 2, 12.38%, 10/08/15		120		120,417
				239,688
Airlines — 1.4%
Air Canada, 9.25%, 8/01/15 (b)		180		192,600
American Airlines, Inc. Series 2001-2, 7.86%, 4/01/13		20		20,650
Continental Airlines, Inc.:
6.75%, 9/15/15 (b)		90		92,475
Series 2010-1-B, 6.00%, 7/12/20		100		99,750
United Air Lines, Inc., 12.75%, 7/15/12		246		274,369
				679,844
Auto Components — 1.9%
Delphi International Holdings Unsecured, 12.00%, 10/06/14		8		8,422
Icahn Enterprises LP, 8.00%, 1/15/18		650		672,750
Stanadyne Corp., Series 1, 10.00%, 8/15/14		90		93,150
Tenneco Inc., 7.75%, 8/15/18		90		96,863
				871,185
Beverages — 0.1%
Cott Beverages, Inc., 8.13%, 9/01/18		43		46,279
Biotechnology — 0.2%
QHP Pharma, 10.25%, 3/15/15 (b)		89		89,218
Building Products — 0.8%
Building Materials Corp. of America, 6.88%, 8/15/18 (b)		90		92,250
Momentive Performance Materials, Inc.:
11.50%, 12/01/16		30		32,550
9.00%, 1/15/21 (b)		215		228,706
				353,506
Capital Markets — 0.7%
American Capital Ltd., 7.96%, 12/31/13		90		92,166
E*Trade Financial Corp., Series A, 2.51%, 8/31/19 (c)(d)		71		109,695
KKR Group Finance Co., 6.38%, 9/29/20 (b)		110		113,336
				315,197
Corporate Bonds	Par (000)		Value
Chemicals — 2.9%
American Pacific Corp., 9.00%, 2/01/15	$	140	$	137,550
Chemtura Corp., 7.88%, 9/01/18 (b)		90		96,075
Georgia Gulf Corp., 9.00%, 1/15/17 (b)		30		33,375
Hexion U.S. Finance Corp.:
8.88%, 2/01/18		130		139,588
9.00%, 11/15/20 (b)		60		63,825
Huntsman International LLC, 8.63%, 3/15/21 (b)		85		94,350
Ineos Finance Plc, 9.00%, 5/15/15 (b)		100		109,750
KRATON Polymers LLC, 6.75%, 3/01/19 (b)		20		20,400
MacDermid, Inc., 9.50%, 4/15/17 (b)		195		207,675
Nalco Co., 6.63%, 1/15/19 (b)		55		56,856
Nexeo Solutions LLC, 8.38%, 3/01/18 (b)(e)		30		30,525
OXEA Finance/Cy SCA, 9.50%, 7/15/17 (b)		100		109,750
Omnova Solutions, Inc., 7.88%, 11/01/18 (b)		25		25,656
Polymer Group, Inc., 7.75%, 2/01/19 (b)		23		23,949
PolyOne Corp., 7.38%, 9/15/20		35		37,100
Rhodia SA, 6.88%, 9/15/20 (b)		100		102,375
TPC Group LLC, 8.25%, 10/01/17 (b)		55		58,506
				1,347,305
Commercial Banks — 3.0%
CIT Group, Inc.:
7.00%, 5/01/16		445		448,894
7.00%, 5/01/17		935		942,012
				1,390,906
Commercial Services & Supplies — 2.0%
ACCO Brands Corp., 10.63%, 3/15/15		125		141,250
AWAS Aviation Capital Ltd., 7.00%, 10/15/16 (b)		200		205,500
Brickman Group Holdings, Inc., 9.13%, 11/01/18 (b)		85		91,375
International Lease Finance Corp., 8.25%, 12/15/20		59		65,637
Mobile Mini, Inc., 7.88%, 12/01/20 (b)		40		42,600
RSC Equipment Rental, Inc. (b):
10.00%, 7/15/17		100		115,000
8.25%, 2/01/21		98		103,635
West Corp. (b):
8.63%, 10/01/18		130		137,800
7.88%, 1/15/19		30		30,788
				933,585
Construction Materials — 1.3%
Nortek, Inc.:
11.00%, 12/01/13		377		401,149
10.00%, 12/01/18 (b)		180		192,150
				593,299
Consumer Finance — 2.2%
Credit Acceptance Corp., 9.13%, 2/01/17		120		129,300
Ford Motor Credit Co. LLC:
3.05%, 1/13/12 (f)		110		111,121
7.80%, 6/01/12		500		533,222
6.63%, 8/15/17		230		244,623
				1,018,266
Containers & Packaging — 1.5%
Ball Corp., 6.75%, 9/15/20		85		89,038
Berry Plastics Corp.:
8.25%, 11/15/15		25		26,781
9.75%, 1/15/21 (b)		155		155,387
Graham Packaging Co. LP, 8.25%, 10/01/18		40		43,100
Graphic Packaging International, Inc.:
9.50%, 6/15/17		160		177,600
7.88%, 10/01/18		65		69,875
Pregis Corp., 12.38%, 10/15/13		150		151,125
				712,906

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	63

Schedule of Investments (continued)	BlackRock High Yield Trust (BHY)
	(Percentages shown are based on Net Assets)

Corporate Bonds		Par (000)	Value
Diversified Financial Services — 7.0%
Ally Financial, Inc.:
2.51%, 12/01/14 (f)	$	73	$	71,734
8.30%, 2/12/15		190		214,462
6.25%, 12/01/17 (b)		150		156,562
8.00%, 3/15/20		300		337,875
7.50%, 9/15/20 (b)		200		218,750
8.00%, 11/01/31		140		160,355
8.00%, 11/01/31		340		389,300
Axcan Intermediate Holdings, Inc., 12.75%, 3/01/16		75		82,688
CDX North America High Yield, Series 6-T1, 8.63%, 6/29/11 (b)		435		446,658
Leucadia National Corp.:
8.13%, 9/15/15		200		220,000
7.13%, 3/15/17		110		115,500
Reynolds Group DL Escrow, Inc., 7.75%, 10/15/16 (b)		250		266,250
Reynolds Group Issuer, Inc. (b):
9.00%, 4/15/19		400		417,000
6.88%, 2/15/21		65		65,163
8.25%, 2/15/21		100		100,250
				3,262,547
Diversified Telecommunication Services — 3.7%
Broadview Networks Holdings, Inc., 11.38%, 9/01/12		195		194,269
Frontier Communications Corp.:
8.25%, 4/15/17		52		57,460
8.50%, 4/15/20		70		77,700
GCI, Inc., 8.63%, 11/15/19		200		220,000
Level 3 Financing, Inc., 8.75%, 2/15/17		40		39,300
Qwest Communications International, Inc.:
7.50%, 2/15/14		685		695,275
8.00%, 10/01/15		100		109,125
Series B, 7.50%, 2/15/14		235		238,525
Windstream Corp.:
8.13%, 8/01/13		25		27,531
8.63%, 8/01/16		50		52,875
7.88%, 11/01/17		25		27,156
				1,739,216
Electric Utilities — 0.8%
Elwood Energy LLC, 8.16%, 7/05/26		356		353,366
Energy Equipment & Services — 1.5%
Bayou Well Services, 0.16%, 12/22/13		100		100,000
Calfrac Holdings LP, 7.50%, 12/01/20 (b)		40		41,000
Compagnie Générale de Géophysique-Veritas:
7.50%, 5/15/15		175		181,125
7.75%, 5/15/17		65		68,737
Exterran Holdings, Inc., 7.25%, 12/01/18 (b)		75		76,875
Frac Tech Services LLC, 7.13%, 11/15/18 (b)		105		108,675
Precision Drilling Corp., 6.63%, 11/15/20 (b)		20		20,650
Thermon Industries, Inc., 9.50%, 5/01/17		90		97,425
				694,487
Food & Staples Retailing — 0.4%
BI-LO LLC, 9.25%, 2/15/19 (b)		55		57,200
Rite Aid Corp., 7.50%, 3/01/17		120		120,750
				177,950
Food Products — 0.5%
Blue Merger Sub Inc., 7.63%, 2/15/19 (b)		170		171,700
Darling International, Inc., 8.50%, 12/15/18 (b)		40		43,150
Smithfield Foods, Inc., 10.00%, 7/15/14		6		7,080
				221,930
Corporate Bonds		Par (000)	Value
Health Care Equipment & Supplies — 1.5%
DJO Finance LLC, 10.88%, 11/15/14	$	410	$	449,463
Hologic, Inc., 2.00%, 12/15/37 (c)(g)		240		231,300
				680,763
Health Care Providers & Services — 5.3%
Aviv Healthcare Properties LP, 7.75%, 2/15/19 (b)		45		46,913
ConvaTec Healthcare E SA, 10.50%, 12/15/18 (b)		200		213,500
Gentiva Health Services Inc., 11.50%, 9/01/18		115		129,519
HCA, Inc.:
9.13%, 11/15/14		265		277,919
8.50%, 4/15/19		205		229,600
7.25%, 9/15/20		340		366,775
inVentiv Health, Inc., 10.00%, 8/15/18 (b)		95		97,613
Omnicare, Inc.:
6.88%, 12/15/15		115		118,737
7.75%, 6/01/20		105		112,087
Tenet Healthcare Corp.:
9.00%, 5/01/15		279		306,900
10.00%, 5/01/18		259		304,325
8.88%, 7/01/19		245		278,687
				2,482,575
Health Care Technology — 1.1%
IMS Health, Inc., 12.50%, 3/01/18 (b)		410		480,725
MedAssets, Inc., 8.00%, 11/15/18 (b)		25		25,688
				506,413
Hotels, Restaurants & Leisure — 3.3%
Boyd Gaming Corp., 9.13%, 12/01/18 (b)		105		110,250
Caesars Entertainment Operating Co., Inc., 10.00%, 12/15/18		625		587,500
CityCenter Holdings LLC, 7.63%, 1/15/16 (b)		55		57,337
Diamond Resorts Corp., 12.00%, 8/15/18 (b)		200		214,500
MGM Mirage, 13.00%, 11/15/13		25		29,937
MGM Resorts International, 10.38%, 5/15/14		465		520,800
Palace Entertainment Holding LLC, 8.88%, 4/15/17 (b)		20		20,400
Travelport LLC, 4.94%, 9/01/14 (f)		25		22,313
Tropicana Entertainment LLC, Series WI, 9.63%, 12/15/14 (a)(h)		25		3
				1,563,040
Household Durables — 3.7%
Ashton Woods USA LLC, 19.31%, 6/30/15 (b)(i)		145		94,250
Beazer Homes USA, Inc.:
8.13%, 6/15/16		50		50,813
12.00%, 10/15/17		40		46,500
9.13%, 6/15/18		395		407,837
Jarden Corp., 8.00%, 5/01/16		40		43,800
K. Hovnanian Enterprises, Inc., 10.63%, 10/15/16		300		325,125
Ryland Group, Inc., 6.63%, 5/01/20		115		112,700
Standard Pacific Corp.:
10.75%, 9/15/16		300		352,500
8.38%, 5/15/18		70		74,200
8.38%, 5/15/18 (b)		80		84,800
8.38%, 1/15/21 (b)		130		137,150
				1,729,675
IT Services — 2.5%
First Data Corp. (b):
8.88%, 8/15/20		210		229,950
8.25%, 1/15/21		292		290,540
12.63%, 1/15/21		116		121,510
iPayment, Inc., 9.75%, 5/15/14		120		118,950
iPayment Investors LP, 11.63%, 7/15/14 (b)(j)		104		96,715

See Notes to Financial Statements.
64	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011

Schedule of Investments (continued)	BlackRock High Yield Trust (BHY)
	(Percentages shown are based on Net Assets)

Corporate Bonds		Par (000)	Value
IT Services (concluded)
SunGard Data Systems, Inc.:
10.63%, 5/15/15	$	100	$	110,750
7.38%, 11/15/18 (b)		80		82,600
7.63%, 11/15/20 (b)		100		103,250
				1,154,265
Independent Power Producers &
Energy Traders — 4.6%
AES Red Oak LLC:
Series A, 8.54%, 11/30/19		106		106,431
Series B, 9.20%, 11/30/29		500		492,500
Calpine Construction Finance Co. LP, 8.00%, 6/01/16 (b)		220		238,700
Calpine Corp. (b):
7.50%, 2/15/21		80		81,800
7.88%, 1/15/23		105		107,888
Energy Future Holdings Corp., 10.25%, 1/15/20 (b)		575		598,777
Energy Future Intermediate Holding Co. LLC, 10.00%, 12/01/20		28		29,228
NRG Energy, Inc., 7.63%, 1/15/18 (b)		455		473,769
				2,129,093
Industrial Conglomerates — 2.2%
Sequa Corp. (b):
11.75%, 12/01/15		350		379,750
13.50%, 12/01/15 (j)		586		648,748
				1,028,498
Insurance — 0.3%
CNO Financial Group, Inc., 9.00%, 1/15/18 (b)		65		69,225
USI Holdings Corp., 4.19%, 11/15/14 (b)(f)		100		96,500
				165,725
Machinery — 1.8%
AGY Holding Corp., 11.00%, 11/15/14		170		151,300
Navistar International Corp.:
3.00%, 10/15/14 (c)		240		335,400
8.25%, 11/01/21		210		232,575
Oshkosh Corp., 8.25%, 3/01/17		30		33,300
Titan International, Inc., 5.63%, 1/15/17 (b)(c)		40		104,200
				856,775
Marine — 0.5%
Horizon Lines, Inc., 4.25%, 8/15/12 (c)		240		222,600
Media — 13.0%
AMC Entertainment Holdings, Inc., 9.75%, 12/01/20 (b)		85		91,163
Affinion Group, Inc., 7.88%, 12/15/18 (b)		115		110,113
CCH II LLC, 13.50%, 11/30/16		169		204,098
CMP Susquehanna Corp., 3.44%, 5/15/14 (b)(f)		23		16,213
CSC Holdings, Inc., 8.50%, 4/15/14		80		89,600
Cengage Learning Acquisitions, Inc., 10.50%, 1/15/15 (b)		245		254,187
Checkout Holding Corp., 10.69%, 11/15/15 (b)(d)		145		93,525
Citadel Broadcasting Corp., 7.75%, 12/15/18 (b)		45		48,263
Clear Channel Communications Inc., 9.00%, 3/01/21 (b)		40		40,650
Clear Channel Worldwide Holdings, Inc.:
9.25%, 12/15/17		251		278,610
Series B, 9.25%, 12/15/17		946		1,052,425
Cox Enterprises, Inc.:
Loan Close 2, 4.00%, 8/15/18		123		123,474
Loan Close 3, 12.00%, 8/15/18		141		141,167
Shares Loan, 4.00%, 8/15/18		146		145,593
DISH DBS Corp., 7.00%, 10/01/13		40		43,000
Gannett Co., Inc., 10.00%, 4/01/16		60		70,200
Gray Television, Inc., 10.50%, 6/29/15		250		265,625
Corporate Bonds		Par (000)	Value
Media (concluded)
Harland Clarke Holdings Corp.:
6.00%, 5/15/15 (f)	$	50	$	44,875
9.50%, 5/15/15		60		58,950
Interactive Data Corp., 10.25%, 8/01/18 (b)		170		190,400
Liberty Global, Inc., 4.50%, 11/15/16 (c)		60		103,950
Live Nation Entertainment, Inc., 8.13%, 5/15/18 (b)		135		139,050
NAI Entertainment Holdings LLC, 8.25%, 12/15/17 (b)		105		112,875
The New York Times Co., 6.63%, 12/15/16 (b)		225		230,062
Nielsen Finance LLC, 7.75%, 10/15/18 (b)		600		648,750
ProQuest LLC, 9.00%, 10/15/18 (b)		85		87,975
ProtoStar I Ltd., 18.00%, 10/15/12 (a)(b)(c)(h)		414		4,141
Rainbow National Services LLC (b):
8.75%, 9/01/12		310		311,162
10.38%, 9/01/14		378		393,592
Regal Entertainment Group, 9.13%, 8/15/18		55		58,850
Univision Communications, Inc., 7.88%, 11/01/20 (b)		80		85,800
UPC Germany GmbH, 8.13%, 12/01/17 (b)		400		429,000
UPC Holding BV, 9.88%, 4/15/18 (b)		100		111,000
				6,078,338
Metals & Mining — 3.1%
Drummond Co., Inc.:
9.00%, 10/15/14 (b)		110		117,425
7.38%, 2/15/16		40		41,400
FMG Resources August 2006 Property Ltd., 7.00%, 11/01/15 (b)		245		254,187
Goldcorp, Inc., 2.00%, 8/01/14 (c)		85		106,994
Newmont Mining Corp., Series A, 1.25%, 7/15/14 (c)		70		93,363
Novelis, Inc., 8.75%, 12/15/20 (b)		585		644,962
Ryerson, Inc.:
7.66%, 11/01/14 (f)		60		57,600
12.00%, 11/01/15		70		75,250
Steel Dynamics, Inc., 7.38%, 11/01/12		50		53,125
				1,444,306
Multiline Retail — 2.3%
Dollar General Corp., 11.88%, 7/15/17 (j)		929		1,074,156
Oil, Gas & Consumable Fuels — 7.6%
Alpha Natural Resources Inc., 2.38%, 4/15/15 (c)		40		52,250
Arch Coal, Inc., 7.25%, 10/01/20		145		154,063
Berry Petroleum Co., 8.25%, 11/01/16		80		84,500
Bill Barrett Corp., 9.88%, 7/15/16		5		5,600
Carrizo Oil & Gas, Inc., 8.63%, 10/15/18 (b)		40		42,500
Chaparral Energy Inc., 8.25%, 9/01/21 (b)		40		40,700
Chesapeake Energy Corp.:
6.50%, 8/15/17		250		268,125
6.63%, 8/15/20		130		136,500
6.13%, 2/15/21		160		163,200
2.25%, 12/15/38 (c)		125		114,375
Coffeyville Resources LLC, 9.00%, 4/01/15 (b)		45		49,050
Concho Resources Inc., 7.00%, 1/15/21		70		73,325
Connacher Oil and Gas Ltd. (b):
11.75%, 7/15/14		30		32,475
10.25%, 12/15/15		170		179,775
Consol Energy, Inc., 8.25%, 4/01/20		335		369,337
Continental Resources, Inc., 7.13%, 4/01/21 (b)		60		63,900
Crosstex Energy LP, 8.88%, 2/15/18		30		33,075
Denbury Resources, Inc.:
6.38%, 8/15/21		60		60,600
8.25%, 2/15/20		119		132,388
Energy Transfer Equity LP, 7.50%, 10/15/20		20		21,675
Energy XXI Gulf Coast, Inc. (b):
9.25%, 12/15/17		70		75,250
7.75%, 6/15/19		85		85,850
Hilcorp Energy I LP, 7.63%, 4/15/21 (b)		130		137,150

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	65

Schedule of Investments (continued)	BlackRock High Yield Trust (BHY)
	(Percentages shown are based on Net Assets)

Corporate Bonds		Par  (000)	Value
Oil, Gas & Consumable Fuels (concluded)
Linn Energy LLC (b):
8.63%, 4/15/20	$	50	$	55,750
7.75%, 2/01/21		100		106,250
MarkWest Energy Partners LP, 6.75%, 11/01/20		45		46,125
Niska Gas Storage US LLC, 8.88%, 3/15/18 (b)		320		348,800
Oasis Petroleum, Inc., 7.25%, 2/01/19 (b)		40		40,600
Overseas Shipholding Group, Inc., 7.50%, 2/15/24		350		306,250
Peabody Energy Corp., 6.50%, 9/15/20		70		74,900
Petrohawk Energy Corp.:
10.50%, 8/01/14		65		74,750
7.88%, 6/01/15		15		15,900
Range Resources Corp., 8.00%, 5/15/19		25		27,531
SM Energy Co., 6.63%, 2/15/19 (b)		45		45,506
United Refining Co., 10.50%, 2/28/18 (b)(e)		40		39,600
				3,557,625
Paper & Forest Products — 3.0%
Ainsworth Lumber Co. Ltd., 11.00%, 7/29/15 (b)(j)		21		21,066
Boise Paper Holdings LLC:
9.00%, 11/01/17		55		61,325
8.00%, 4/01/20		30		33,075
Catalyst Paper Corp., 7.38%, 3/01/14		120		103,800
Clearwater Paper Corp.:
10.63%, 6/15/16		70		79,975
7.13%, 11/01/18 (b)		95		98,563
Georgia-Pacific LLC, 8.25%, 5/01/16 (b)		285		321,338
NewPage Corp., 11.38%, 12/31/14		465		463,837
Verso Paper Holdings LLC:
11.50%, 7/01/14		150		165,375
8.75%, 2/01/19 (b)		40		41,800
				1,390,154
Pharmaceuticals — 0.7%
Angiotech Pharmaceuticals, Inc., 4.06%, 12/01/13 (f)		165		138,600
Grifols, Inc., 8.25%, 2/01/18 (b)		20		20,550
Valeant Pharmaceuticals International (b):
6.75%, 10/01/17		65		67,275
7.00%, 10/01/20		80		82,700
				309,125
Professional Services — 0.5%
FTI Consulting, Inc.:
7.75%, 10/01/16		100		104,875
6.75%, 10/01/20 (b)		150		150,000
				254,875
Real Estate Investment Trusts (REITs) — 0.4%
Omega Healthcare Investors, Inc., 6.75%, 10/15/22 (b)		90		90,900
The Rouse Co. LP, 6.75%, 11/09/15		85		89,038
				179,938
Real Estate Management & Development — 1.3%
CB Richard Ellis Services Inc,, 6.63%, 10/15/20		55		56,719
Realogy Corp. (b):
11.50%, 4/15/17		130		138,450
7.88%, 2/15/19		435		436,631
				631,800
Road & Rail — 1.3%
Avis Budget Car Rental LLC:
9.63%, 3/15/18		85		94,988
8.25%, 1/15/19		130		137,963
Florida East Coast Railway Corp., 8.13%, 2/01/17 (b)		80		83,600
The Hertz Corp. (b):
7.50%, 10/15/18		150		158,812
6.75%, 4/15/19		70		71,400
7.38%, 1/15/21		80		83,600
				630,363
Corporate Bonds		Par (000)	Value
Semiconductors & Semiconductor Equipment — 0.3%
Linear Technology Corp., Series A, 3.00%, 5/01/27 (c)	$	70	$	76,213
Spansion LLC, 7.88%, 11/15/17 (b)		50		51,000
				127,213
Specialty Retail — 1.5%
Asbury Automotive Group, Inc.:
7.63%, 3/15/17		60		61,500
8.38%, 11/15/20 (b)		55		57,750
Claire’s Escrow Corp., 8.88%, 3/15/19 (b)(e)		50		50,188
Limited Brands, Inc., 8.50%, 6/15/19		140		160,300
PETCO Animal Supplies, Inc., 9.25%, 12/01/18 (b)		75		81,000
Sonic Automotive, Inc., 9.00%, 3/15/18		65		69,550
Toys ‘R’ US-Delaware, Inc., 7.38%, 9/01/16 (b)		70		73,762
United Auto Group, Inc., 7.75%, 12/15/16		165		170,362
				724,412
Trading Companies & Distributors — 0.3%
Russel Metals, Inc., 6.38%, 3/01/14		125		126,250
Wireless Telecommunication Services — 3.2%
Clearwire Communications LLC (b):
12.00%, 12/01/15		20		21,800
12.00%, 12/01/17		25		27,000
Cricket Communications, Inc.:
10.00%, 7/15/15		95		104,737
7.75%, 5/15/16		270		285,525
Digicel Group Ltd. (b):
9.13%, 1/15/15 (j)		294		306,201
8.25%, 9/01/17		230		240,350
Intelsat Jackson Holdings SA, 7.25%, 10/15/20 (b)		110		113,025
iPCS, Inc., 2.43%, 5/01/13 (f)		110		108,625
MetroPCS Wireless, Inc., 6.63%, 11/15/20		100		97,375
Sprint Capital Corp., 6.88%, 11/15/28		160		144,200
Syniverse Holdings, Inc., 9.13%, 1/15/19 (b)		40		43,200
				1,492,038
Total Corporate Bonds — 97.7%				45,580,695
Floating Rate Loan Interests (f)
Building Products — 0.1%
Goodman Global, Inc., Term Loan (Second Lien), 9.00%, 10/13/17		25		25,766
Commercial Services & Supplies — 0.8%
AWAS Finance Luxembourg Sarl, Term Loan B, 7.75%, 6/10/16		120		123,225
Delos Aircraft, Inc., Term Loan 2, 7.00%, 3/17/16		100		100,857
Volume Services America, Inc. (Centerplate), Term Loan B, 10.50% – 10.75%, 8/24/16		165		166,164
				390,246
Construction & Engineering — 0.5%
Safway Services, LLC, Last Out Term Loan, 15.63%, 12/14/17		250		250,000
Consumer Finance — 1.6%
Springleaf Financial Funding Co. (FKA AGFS Funding Co.), Term Loan, 7.25%, 4/21/15		750		756,675
Electric Utilities — 0.1%
New Development Holdings, LLC, Term Loan, 7.00%, 7/03/17		23		23,389
Food Products — 0.3%
Advance Pierre Foods, Term Loan, 11.25%, 9/29/17		135		138,375

See Notes to Financial Statements.
66	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011

Schedule of Investments (continued)	BlackRock High Yield Trust (BHY)
	(Percentages shown are based on Net Assets)

Floating Rate Loan Interests (f)	Par (000)		Value
Health Care Providers & Services — 0.8%
Harden Healthcare, Inc.:
Tranche A Additional Term Loan, 7.75%, 3/02/15	$	95	$	93,100
Tranche A Term Loan, 8.50%, 2/22/15		77		74,989
inVentiv Health, Inc. (FKA Ventive Health, Inc.), Term Loan B, 6.50%, 7/31/16		199		199,871
				367,960
Hotels, Restaurants & Leisure — 0.8%
Harrah’s Operating Co., Inc., Term Loan B-3, 3.30%, 1/28/15		75		69,635
Travelport LLC (FKA Travelport, Inc.), Loan, 8.31%, 3/27/12 (i)		347		309,321
				378,956
Household Durables — 0.8%
Visant Corp. (FKA Jostens):
Term Loan, 5.25%, 12/22/16		165		165,000
Tranche B Term Loan, 7.00%, 12/20/16		200		201,285
				366,285
IT Services — 0.5%
First Data Corp.:
Initial Tranche B-1 Term Loan, 3.01%, 9/24/14		29		27,212
Initial Tranche B-2 Term Loan, 3.01%, 9/24/14		67		63,503
Initial Tranche B-3 Term Loan, 3.01%, 9/24/14		177		167,447
				258,162
Independent Power Producers & Energy Traders — 0.9%
Texas Competitive Electric Holdings Co., LLC (TXU):
Initial Tranche B-2 Term Loan, 3.76% – 3.80%, 10/10/14		141		119,167
Initial Tranche B-3 Term Loan, 3.76% – 3.80%, 10/10/14		385		323,497
				442,664
Media — 4.4%
Cengage Learning Acquisitions, Inc. (Thomson Learning), Tranche 1 Incremental Term Loan, 7.50%, 7/03/14		244		244,847
HMH Publishing Co., Ltd., Tranche A Term Loan, 6.01%, 6/12/14		147		139,610
Intelsat Jackson Holdings SA (FKA Intel Jackson Holdings Ltd.), Tranche B Term Loan, 5.25%, 3/07/18		1,250		1,258,398
Newsday, LLC, Fixed Rate Term Loan, 10.50%, 8/01/13		375		398,672
				2,041,527
Metals & Mining — 0.1%
Euramax International, Inc., Domestic Term Loan:
10.00%, 6/29/13		26		24,880
14.00%, 6/29/13		25		23,884
				48,764
Oil, Gas & Consumable Fuels — 0.9%
Obsidian Natural Gas Trust, Term Loan, 7.00%, 11/30/15		389		398,811
Paper & Forest Products — 0.4%
Verso Paper Finance Holdings LLC, 6.55% – 7.30%, 2/01/13 (j)		212		191,135
Real Estate Investment Trusts (REITs) — 0.1%
iStar Financial, Inc., Term Loan (Second Lien), 6/28/11		50		49,312
Real Estate Management & Development — 0.4%
Realogy Corp.:
Extended Synthetic Letter of Credit Loan, 0.11%, 10/16/16		21		19,953
Extended Term Loan B, 4.56%, 10/16/16		176		168,367
				188,320

Floating Rate Loan Interests (f)	Par (000)		Value
Specialty Retail — 0.1%
Claire’s Stores, Inc., Term Loan B, 3.01% – 5.00%, 5/29/14	$	29	$	28,628
Wireless Telecommunication Services — 0.6%
Vodafone Americas Finance 2 Inc., Initial Loan, 6.88%, 7/30/15		259		267,892
Total Floating Rate Loan Interests — 14.2%				6,612,867

Other Interests (k)	Beneficial Interest (000)
Auto Components — 2.0%
Delphi Debtor-in-Possession Holding Co. LLP, Class B Membership Interests		—	(l)	918,325
Health Care Providers & Services — 0.0%
Critical Care Systems International, Inc.		5		477
Total Other Interests — 2.0%				918,802
Preferred Stocks	Shares
Automobiles — 0.7%
General Motors Co., 4.75%		7,140		363,283
Media — 0.0%
CMP Susquehanna Radio Holdings Corp., 0.00% (a)(b)		5,410		—
Professional Services — 0.1%
Nielsen Holdings NV, 6.25% (a)(c)		750		41,391
Total Preferred Stocks — 0.8%				404,674
Warrants (m)
Diversified Telecommunication Services — 0.0%
NEON Communications, Inc. (Expires 12/02/12)		53,622		—
Media — 0.0%
CMP Susquehanna Radio Holdings Corp. (Expires 3/26/19) (b)		6,182		—
Software — 0.0%
Bankruptcy Management Solutions, Inc. (Expires 9/29/17)		61		1
HMH Holdings/EduMedia (Expires 3/09/17)		1,184		—
				1
Total Warrants — 0.0%				1
Total Long-Term Investments (Cost — $50,434,626) — 115.2%				53,751,262
Short-Term Securities
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.15% (n)(o)		1,590,898		1,590,898
Total Short-Term Securities (Cost — $1,590,898) — 3.4%				1,590,898

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	67

Schedule of Investments (continued)	BlackRock High Yield Trust (BHY)
	(Percentages shown are based on Net Assets)

Options Purchased	Contracts		Value
Over-the-Counter Call Options — 0.0%
Marsico Parent Superholdco LLC, Strike Price $942.86, Expires 12/01/19, Broker Goldman Sachs Bank USA		3		—
Total Options Purchased (Cost — $2,933) — 0.0%				—
Total Investments (Cost — $52,028,457*) — 118.6%				55,342,160
Liabilities in Excess of Other Assets — (18.6)%				(8,696,075	)
Net Assets — 100.0%			$	46,646,085

*	The cost and unrealized appreciation (depreciation) of investments as of February 28, 2011, as computed for federal income tax purposes were as follows:
	Aggregate cost	$	52,087,055
	Gross unrealized appreciation	$	3,792,332
	Gross unrealized depreciation		(537,227	)
	Net unrealized appreciation	$	3,255,105

(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)	Convertible security.
(d)	Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(e)	When-issued security. Unsettled when-issued transactions were as follows:

Counterparty	Value		Unrealized Appreciation
Bank of America NA	$	20,350	$	217
Credit Suisse International	$	89,788	$	1,210
Sterne Agee	$	10,175	$	108

(f)	Variable rate security. Rate shown is as of report date.
(g)	Represents a step-down bond that pays an initial coupon rate for the first period and then a lower coupon rate for the following periods. Rate shown is as of report date.
(h)	Issuer filed for bankruptcy and/or is in default of interest payments.
(i)	Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown reflects the current yield as of report date.
(j)	Represents a payment-in-kind security which may pay interest/dividends in additional par/shares.
(k)	Other interests represent beneficial interest in liquidation trusts and other reorganization entities and are non-income producing.
(l)	Amount is less than $1,000.
(m)	Warrants entitle the Trust to purchase a predetermined number of shares of common stock and are non-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date, if any.
(n)	Investments in companies considered to be an affiliate of the Trust during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate	Shares Held at at August 31, 2010		Net Activity		Shares Held at February 28, 2011		Income
BlackRock Liquidity Funds, TempFund, Institutional Class		1,573,222		17,676		1,590,898	$	1,627

(o)	Represents the current yield as of report date.
•	For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by Trust management. This definition may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.
•	Credit default swaps on single-name issues — buy protection outstanding as of February 28, 2011 were as follows:

Issuer	Pay Fixed Rate			Counterparty		Expiration Date		Notional Amount (000)		Unrealized Depreciation
Harrah’s Operating Co., Inc.		5.00	%		Deutsche Bank AG		12/20/15	$	225	$	(31,390	)
K. Hovnanian Enterprises, Inc.		5.00	%		JPMorgan Chase Bank NA		12/20/15	$	125		(19,855	)
Republic of Hungary		1.00	%		Deutsche Bank AG		12/20/15	$	50		(906	)
Israel (State of)		1.00	%		Deutsche Bank AG		3/20/16	$	100		(384	)
The New York Times Co.		1.00	%		Barclays Bank Plc		12/20/16	$	225		(4,344	)
Total										$	(56,879	)

• Credit default swaps on single-name issues — sold protection outstanding as of February 28, 2011 were as follows:

Issuer	Receive Fixed Rate			Counterparty	Expiration Date	Issuer Credit Rating1	Notional Amount (000)2		Unrealized Appreciation
D.R. Horton, Inc.		1.00	%	JPMorgan Chase Bank NA	12/20/15	BB–	$	50	$	1,538
M.D.C. Holdings, Inc.		1.00	%	Deutsche Bank AG	12/20/15	BBB–	$	55		528
M.D.C. Holdings, Inc.		1.00	%	JPMorgan Chase Bank NA	12/20/15	BBB–	$	55		298
Realogy Corp.		5.00	%	JPMorgan Chase Bank NA	12/20/15	CC	$	75		5,418
Realogy Corp.		5.00	%	JPMorgan Chase Bank NA	12/20/15	CC	$	50		1,594
Chesapeake Energy Corp.		5.00	%	Credit Suisse International	3/20/16	BB	$	50		937
Chesapeake Energy Corp.		5.00	%	Goldman Sachs Bank USA	3/20/16	BB	$	75		834
Chesapeake Energy Corp.		5.00	%	JPMorgan Chase Bank NA	3/20/16	BB	$	50		937
Realogy Corp.		5.00	%	JPMorgan Chase Bank NA	3/20/16	CC	$	25		105
Total									$	12,189

		1	Using Standard and Poor’s rating.
		2	The maximum potential amount the Trust may pay should a negative event take place as defined under the terms of agreement.
•	Credit default swaps on traded indexes — sold protection outstanding as of February 28, 2011 were as follows:

Index	Receive Fixed Rate		Counterparty	Expiration Date	Credit Rating3	Notional Amount (000)4		Unrealized Depreciation
Dow Jones CDX North America High Yield Index Series 9	0.00	%	Deutsche Bank AG	12/20/12	CCC	$	68	$	(2,649	)

3	Using Standard and Poor’s rating of the underlying securities.
4	The maximum potential amount the Trust may pay should a negative event take place as defined under the terms of agreement.

See Notes to Financial Statements.
68	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011

Schedule of Investments (concluded) BlackRock High Yield Trust (BHY)

•	Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivatives. These inputs are summarized in three broad levels for financial statement purposes as follows:
	•	Level 1 — price quotations in active markets/exchanges for identical assets and liabilities
	•	Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
	•	Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments and derivatives)
	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 Trust’s policy regarding valuation of investments and derivatives 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 February 28, 2011 in determining the fair valuation of the Trust’s investments and derivatives:

Valuation Inputs		Level 1		Level 2			Level 3			Total
Assets:
Investments in Securities:
Long-Term Investments:
Common Stocks	$	157,741	$	8,602		$	67,880		$	234,223
Corporate Bonds		—		44,371,549			1,209,146			45,580,695
Floating Rate Loan Interests		—		5,198,565			1,414,302			6,612,867
Other Interests		—		918,325			477			918,802
Preferred Stocks		363,283		41,391			—			404,674
Warrants		—		—			1			1
Short-Term Securities		1,590,898		—			—			1,590,898
Liabilities:
Unfunded Loan Commitments		—		—			(2,182	)		(2,182	)
Total	$	2,111,922	$	50,538,432		$	2,689,624		$	55,339,978
	Derivative Financial Instruments1
Valuation Inputs		Level 1		Level 2			Level 3			Total
Assets:
Credit contracts		—	$	12,189			—		$	12,189
Liabilities:
Credit contracts		—		(59,528	)		—			(59,528	)
Total		—	$	(47,339	)		—		$	(47,339	)

¹ Derivative financial instruments are swaps and options. Swaps are shown at the unrealized appreciation/depreciation on the instrument and options are shown at value.

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

	Common Stocks			Corporate Bonds			Floating Rate Loan Interests			Other Interests			Preferred Stocks			Warrants		Unfunded Loan Commitments (Liabilities)			Total
Assets/Liabilities:
Balance, as of August 31, 2010	$	86,010		$	1,514,877		$	1,544,738		$	953		$	85,806		$	1	$	(4,001	)	$	3,228,384
Accrued discounts/premiums		—			63,747			125,907			—			—			—		—			189,654
Net realized gain (loss)		(428,771	)		(1,560,455	)		8,662			—			170,964			—		—			(1,809,600	)
Net change in unrealized appreciation/depreciation2		488,794			1,166,750			(619,990	)		(476	)		(17,420	)		—		1,819			1,019,477
Purchases		—			100,000			534,789			—			—			—		—			634,789
Sales		(78,153	)		(59,560	)		(40,194	)		—			(239,350	)		—		—			(417,257	)
Transfers in3		—			—			28,628			—			—			—		—			28,628
Transfers out3		—			(16,213	)		(168,238	)		—			—			—		—			(184,451	)
Balance, as of February 28, 2011	$	67,880		$	1,209,146		$	1,414,302		$	477			—		$	1	$	(2,182	)	$	2,689,624

2	Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations. The net change in unrealized appreciation/depreciation on securities still held at February 28, 2011 was $1,018,628.
3	The Trust’s policy is to recognize transfers in and transfers out as of the end of the period of the event or the change in circumstances that caused the transfer.

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	69

Schedule of Investments February 28, 2011 (Unaudited)	BlackRock Income Opportunity Trust, Inc. (BNA)
	(Percentages shown are based on Net Assets)

Asset-Backed Securities	Par (000)		Value
321 Henderson Receivables I LLC (a):
Series 2010-1A, Class B, 9.31%, 7/15/61	USD	1,150	$	1,218,578
Series 2010-3A, Class A, 3.82%, 12/15/48		872		843,744
Ameriquest Mortgage Securities, Inc., Series 2004-R11, Class A1, 0.56%, 11/25/34 (b)		733		674,781
Capital One Multi-Asset Execution Trust, Series 2006-A5, Class A5, 0.33%, 1/15/16 (b)		350		347,911
Credit Acceptance Auto Loan Trust, Series 2010-1, Class B, 3.63%, 10/15/18 (a)		1,970		1,968,924
Globaldrive BV, Series 2008-2, Class A, 4.00%, 10/20/16	EUR	563		785,610
Home Equity Asset Trust, Series 2007-2, Class 2A1, 0.37%, 7/25/37 (b)	USD	259		251,786
Maryland Insurance Backed Securities Trust, Series 2006-1A, Class A, 5.55%, 12/10/65		2,500		1,675,000
Nelnet Student Loan Trust, Series 2008-3, Class A4, 4.61%, 11/25/24 (b)		650		674,809
SLC Student Loan Trust, Series 2006-A, Class A4, 0.42%, 1/15/19 (b)		460		447,017
SLM Student Loan Trust, Series 2008-5 (b):
Class A3, 1.60%, 1/25/18		1,170		1,202,450
Class A4, 2.00%, 7/25/23		3,690		3,859,170
Santander Consumer Acquired Receivables Trust, Series 2011-WO, Class C, 3.19%, 10/15/15 (a)		575		573,965
Santander Drive Auto Receivables Trust:
Series 2010-2, Class B, 2.24%, 12/15/14		870		872,540
Series 2010-2, Class C, 3.89%, 7/17/17		1,020		1,050,398
Series 2010-B, Class B, 2.10%, 9/15/14 (a)		700		701,209
Series 2010-B, Class C, 3.02%, 10/17/16 (a)		735		735,704
Series 2011-S1A, Class B, 1.48%, 5/15/17 (a)		597		596,574
Series 2011-S1A, Class D, 3.10%, 5/15/17 (a)		610		610,000
Small Business Administration Participation Certificates, Series 1996-20K, Class 1, 6.95%, 11/01/16		310		330,824
				19,420,994
Interest Only — 0.2%
Sterling Bank Trust, Series 2004-2, Class Note, 2.08%, 3/30/30 (a)		4,772		307,284
Sterling Coofs Trust, Series 1, 2.36%, 4/15/29		7		512,668
				819,952
Total Asset-Backed Securities — 5.6%				20,240,946
Common Stocks		Shares
Software — 0.0%
Bankruptcy Management Solutions, Inc. (c)		152		532
Total Common Stocks — 0.0%				532
Corporate Bonds		Par (000)
Aerospace & Defense — 0.6%
United Technologies Corp.:
4.88%, 5/01/15	USD	1,250		1,379,085
6.13%, 7/15/38		750		839,523
				2,218,608

Corporate Bonds		Par (000)		Value
Airlines — 0.4%
Continental Airlines, Inc., Series 2010-1-B, 6.00%, 7/12/20	USD	700	$	698,250
United Air Lines, Inc., 12.75%, 7/15/12		786		877,979
				1,576,229
Auto Components — 0.4%
BorgWarner, Inc., 4.63%, 9/15/20		265		266,315
Icahn Enterprises LP, 8.00%, 1/15/18		1,000		1,035,000
				1,301,315
Beverages — 1.1%
Anheuser-Busch InBev Worldwide, Inc., 7.75%, 1/15/19 (a)(d)		3,050		3,781,201
Capital Markets — 4.7%
CDP Financial, Inc. (a)(d)(e):
3.00%, 11/25/14		1,950		1,986,266
5.60%, 11/25/39		2,955		3,062,515
Credit Suisse, Inc. (USA):
6.13%, 11/15/11		700		727,259
7.13%, 7/15/32		1,000		1,188,026
The Goldman Sachs Group, Inc.:
6.60%, 1/15/12		1,000		1,050,984
3.70%, 8/01/15		800		811,063
5.38%, 3/15/20		1,720		1,767,161
6.00%, 6/15/20		860		922,081
6.25%, 2/01/41		340		346,004
Lehman Brothers Holdings, Inc., 6.50%, 7/19/17 (c)(f)		225		22
Morgan Stanley:
2.81%, 5/14/13 (b)		1,880		1,945,366
4.20%, 11/20/14		680		706,005
4.00%, 7/24/15		400		409,540
6.25%, 8/28/17		900		983,032
5.63%, 9/23/19 (d)		760		780,714
Nomura Holdings, Inc., 4.13%, 1/19/16		389		387,269
				17,073,307
Chemicals — 1.0%
American Pacific Corp., 9.00%, 2/01/15		280		275,100
CF Industries, Inc., 7.13%, 5/01/20		1,750		1,964,375
The Dow Chemical Co., 4.25%, 11/15/20		185		178,283
Nalco Co., 6.63%, 1/15/19 (a)		1,000		1,033,750
				3,451,508
Commercial Banks — 8.0%
BNP Paribas Home Loan Covered Bonds SA, 2.20%, 11/02/15 (a)		3,125		2,996,316
Bank of Nova Scotia, 1.65%, 10/29/15 (a)		4,775		4,585,584
CIT Group, Inc.:
7.00%, 5/01/16		110		110,963
7.00%, 5/01/17		1,790		1,803,425
Canadian Imperial Bank of Commerce, 2.75%, 1/27/16 (a)		1,485		1,483,895
DEPFA ACS Bank, 5.13%, 3/16/37 (a)		4,150		2,721,765
Discover Bank, 8.70%, 11/18/19		1,045		1,257,230
DnB NOR Boligkreditt, 2.10%, 10/14/15 (a)		4,005		3,844,888
Eksportfinans ASA:
2.00%, 9/15/15 (d)		2,440		2,379,195
5.50%, 6/26/17		1,000		1,119,819
HSBC Holdings Plc, 6.50%, 5/02/36 (d)		1,275		1,319,679
Royal Bank of Canada, 3.13%, 4/14/15 (a)		3,855		3,952,219
Sparebanken 1 Boligkreditt, 1.25%, 10/25/13 (a)		1,575		1,560,209
				29,135,187

See Notes to Financial Statements.
70	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011

Schedule of Investments (continued)	BlackRock Income Opportunity Trust, Inc. (BNA)
	(Percentages shown are based on Net Assets)

Corporate Bonds		Par (000)	Value
Commercial Services & Supplies — 0.8%
AWAS Aviation Capital Ltd., 7.00%, 10/15/16 (a)	USD	250	$	256,875
Mobile Mini, Inc., 7.88%, 12/01/20 (a)		1,320		1,405,800
RR Donnelley & Sons Co., 7.63%, 6/15/20		169		177,152
West Corp. (a):
8.63%, 10/01/18		770		816,200
7.88%, 1/15/19		255		261,694
				2,917,721
Construction Materials — 0.5%
Inversiones CMPC SA, 4.75%, 1/19/18 (a)		220		211,666
Nortek, Inc., 10.00%, 12/01/18 (a)		1,450		1,547,875
				1,759,541
Consumer Finance — 0.6%
Ford Motor Credit Co. LLC:
3.05%, 1/13/12 (b)		120		121,223
7.80%, 6/01/12		380		405,249
6.63%, 8/15/17		380		404,160
SLM Corp.:
6.25%, 1/25/16		651		667,275
Series A, 0.59%, 1/27/14 (b)		600		566,429
				2,164,336
Containers & Packaging — 1.4%
Ardagh Packaging Finance Plc, 7.38%, 10/15/17 (a)	EUR	425		605,539
Ball Corp.:
7.13%, 9/01/16	USD	275		301,125
7.38%, 9/01/19		275		299,063
Berry Plastics Corp., 9.75%, 1/15/21 (a)		1,965		1,969,912
Owens-Brockway Glass Container, Inc., 7.38%, 5/15/16		1,435		1,564,150
Pregis Corp., 12.38%, 10/15/13		255		256,913
				4,996,702
Diversified Financial Services — 5.2%
Ally Financial, Inc.:
8.30%, 2/12/15		1,100		1,241,625
6.25%, 12/01/17 (a)		240		250,500
8.00%, 3/15/20		560		630,700
8.00%, 11/01/31		320		366,400
Bank of America Corp.:
7.63%, 6/01/19		500		584,588
5.63%, 7/01/20 (d)		1,055		1,097,417
Citigroup, Inc.:
4.75%, 5/19/15		380		401,101
5.38%, 8/09/20		495		513,158
General Electric Capital Corp.:
5.50%, 1/08/20 (d)		2,150		2,294,854
5.30%, 2/11/21		365		374,973
6.75%, 3/15/32 (d)		3,000		3,343,668
JPMorgan Chase & Co.:
2.60%, 1/15/16		685		663,893
6.30%, 4/23/19		1,375		1,546,007
4.25%, 10/15/20		195		188,013
Novus USA Trust, 1.56%, 11/18/11 (a)(b)		850		849,683
Reynolds Group DL Escrow, Inc., 7.75%, 10/15/16 (a)		890		947,850
Reynolds Group Issuer, Inc. (a):
7.75%, 10/15/16	EUR	550		804,511
7.13%, 4/15/19	USD	2,111		2,163,775
6.88%, 2/15/21		515		516,288
				18,779,004

Corporate Bonds		Par (000)	Value
Diversified Telecommunication Services — 5.3%
AT&T Inc., 6.55%, 2/15/39 (e)	USD	3,525	$	3,756,141
BellSouth Telecommunications, Inc., 8.30%, 12/15/95 (g)		1,700		1,184,599
Frontier Communications Corp., 8.25%, 4/15/17 (a)		383		423,215
GCI, Inc., 8.63%, 11/15/19		1,000		1,100,000
Qwest Communications International, Inc.:
7.50%, 2/15/14		15		15,225
Series B, 7.50%, 2/15/14		10		10,150
Qwest Corp., 8.38%, 5/01/16		170		202,937
Telecom Italia Capital SA, 4.95%, 9/30/14 (d)		4,375		4,495,308
Telefonica Emisiones SAU, 7.05%, 6/20/36		1,000		1,076,220
Verizon Communications, Inc.:
8.75%, 11/01/18		720		929,143
6.40%, 2/15/38 (e)		2,100		2,246,672
8.95%, 3/01/39		1,125		1,568,473
Verizon Global Funding Corp., 7.75%, 6/15/32		575		706,935
Verizon Maryland, Inc., Series A, 6.13%, 3/01/12 (d)		1,355		1,424,266
Windstream Corp.:
8.13%, 8/01/13		50		55,063
8.63%, 8/01/16		100		105,750
7.88%, 11/01/17		50		54,313
				19,354,410
Electric Utilities — 3.5%
Alabama Power Co., 6.00%, 3/01/39		550		599,041
Duke Energy Carolinas LLC:
6.10%, 6/01/37		325		351,885
6.00%, 1/15/38		850		921,812
EDF SA, 5.60%, 1/27/40 (a)		1,400		1,446,916
E.ON International Finance BV, 6.65%, 4/30/38 (a)(d)		1,575		1,871,431
Elwood Energy LLC, 8.16%, 7/05/26		135		133,937
Florida Power & Light Co., 4.95%, 6/01/35		575		558,358
Florida Power Corp.:
6.35%, 9/15/37 (d)		1,450		1,631,920
6.40%, 6/15/38		340		386,620
PacifiCorp., 6.25%, 10/15/37		650		722,558
Public Service Co. of Colorado, 6.25%, 9/01/37 (d)		1,350		1,537,765
Southern California Edison Co.:
5.63%, 2/01/36		675		705,110
Series 05-E, 5.35%, 7/15/35		150		151,009
Series 08-A, 5.95%, 2/01/38		1,100		1,201,831
The Toledo Edison Co., 6.15%, 5/15/37		350		361,561
				12,581,754
Energy Equipment & Services — 0.6%
Calfrac Holdings LP, 7.50%, 12/01/20 (a)		335		343,375
Exterran Holdings, Inc., 7.25%, 12/01/18 (a)		600		615,000
Frac Tech Services LLC, 7.13%, 11/15/18 (a)		875		905,625
Precision Drilling Corp., 6.63%, 11/15/20 (a)		235		242,637
				2,106,637
Food & Staples Retailing — 1.0%
BI-LO LLC, 9.25%, 2/15/19 (a)		430		447,200
Wal-Mart Stores, Inc. (d):
6.50%, 8/15/37		1,975		2,278,953
6.20%, 4/15/38		850		946,173
				3,672,326
Food Products — 0.7%
Blue Merger Sub, Inc., 7.63%, 2/15/19 (a)		330		333,300
Darling International, Inc., 8.50%, 12/15/18 (a)		335		361,381
Kraft Foods, Inc., 7.00%, 8/11/37		1,670		1,897,202
				2,591,883

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	71

Schedule of Investments (continued) BlackRock Income Opportunity Trust, Inc. (BNA)
(Percentages shown are based on Net Assets)

Corporate Bonds	Par  (000)		Value
Health Care Equipment & Supplies — 0.3%
DJO Finance LLC, 10.88%, 11/15/14	USD	900	$	986,625
Health Care Providers & Services — 1.9%
Aviv Healthcare Properties LP, 7.75%, 2/15/19 (a)		360		375,300
ConvaTec Healthcare E SA (a):
7.38%, 12/15/17	EUR	600		861,089
10.50%, 12/15/18	USD	630		672,525
HCA, Inc., 8.50%, 4/15/19		1,700		1,904,000
Tenet Healthcare Corp.:
9.00%, 5/01/15		1,200		1,320,000
10.00%, 5/01/18		280		329,000
8.88%, 7/01/19		1,150		1,308,125
				6,770,039
Hotels, Restaurants & Leisure — 1.9%
Boyd Gaming Corp., 9.13%, 12/01/18 (a)		835		876,750
Caesars Entertainment Operating Co., Inc., 10.00%, 12/15/18		4,710		4,427,400
CityCenter Holdings LLC, 7.63%, 1/15/16 (a)		445		463,912
McDonald’s Corp., 5.70%, 2/01/39		850		914,810
Palace Entertainment Holding LLC, 8.88%, 4/15/17 (a)		160		163,200
				6,846,072
Household Durables — 1.4%
Beazer Homes USA, Inc., 9.13%, 5/15/19 (a)		2,000		2,062,500
Standard Pacific Corp.:
10.75%, 9/15/16		1,000		1,175,000
8.38%, 5/15/18 (a)		655		694,300
8.38%, 1/15/21 (a)		1,060		1,118,300
				5,050,100
Household Products — 0.3%
Kimberly-Clark, Corp., 6.63%, 8/01/37		975		1,173,263
IT Services — 1.3%
First Data Corp. (a):
8.88%, 8/15/20		1,000		1,095,000
8.25%, 1/15/21		674		670,630
12.63%, 1/15/21		520		544,700
iPayment, Inc., 9.75%, 5/15/14		270		267,637
iPayment Investors LP, 12.75%, 7/15/14 (a)(h)		867		806,208
SunGard Data Systems, Inc., 7.63%, 11/15/20 (a)		1,100		1,135,750
				4,519,925
Independent Power Producers & Energy Traders — 1.5%
Energy Future Intermediate Holding Co. LLC, 10.00%, 12/01/20		1,650		1,722,356
NRG Energy, Inc., 7.63%, 1/15/18 (a)		3,600		3,748,500
				5,470,856
Industrial Conglomerates — 0.5%
Sequa Corp. (a):
11.75%, 12/01/15		760		824,600
13.50%, 12/01/15 (h)		927		1,027,185
				1,851,785
Insurance — 2.5%
CNO Financial Group, Inc., 9.00%, 1/15/18 (a)		499		531,435
Chubb Corp., 6.00%, 5/11/37 (d)		1,415		1,518,605
Manulife Financial Corp., 3.40%, 9/17/15		780		772,868
Metropolitan Life Global Funding I (a):
2.50%, 1/11/13 (d)		2,550		2,598,305
5.13%, 6/10/14		775		841,489
Prudential Financial, Inc.:
4.75%, 9/17/15 (d)		1,220		1,306,046
5.70%, 12/14/36		950		946,092

Corporate Bonds	Par  (000)		Value
Insurance (concluded)
Teachers Insurance & Annuity Association of America, 6.85%, 12/16/39 (a)	USD	505	$	581,081
				9,095,921
Life Sciences Tools & Services — 0.0%
Life Technologies Corp., 5.00%, 1/15/21		145		146,784
Machinery — 0.3%
AGY Holding Corp., 11.00%, 11/15/14		340		302,600
Navistar International Corp., 8.25%, 11/01/21		760		841,700
				1,144,300
Marine — 0.3%
Nakilat, Inc., Series A, 6.07%, 12/31/33 (a)(d)		1,100		1,105,500
Media — 7.7%
Affinion Group, Inc., 7.88%, 12/15/18 (a)		1,505		1,441,037
CBS Corp., 8.88%, 5/15/19		505		636,815
CCH II LLC, 13.50%, 11/30/16		2,265		2,742,998
CMP Susquehanna Corp., 3.44%, 5/15/14		55		38,771
Cengage Learning Acquisitions, Inc., 10.50%, 1/15/15 (a)		1,870		1,940,125
Citadel Broadcasting Corp., 7.75%, 12/15/18 (a)		350		375,375
Clear Channel Communications Inc., 9.00%, 3/01/21 (a)		325		330,281
Clear Channel Worldwide Holdings, Inc.:
9.25%, 12/15/17		318		352,980
Series B, 9.25%, 12/15/17		1,257		1,398,412
Comcast Cable Communications Holdings, Inc., 9.46%, 11/15/22		2,000		2,727,162
Comcast Corp., 6.40%, 3/01/40		607		631,621
Discovery Communications LLC, 3.70%, 6/01/15		470		486,993
Gray Television, Inc., 10.50%, 6/29/15		225		239,063
NBC Universal, Inc. (a):
5.15%, 4/30/20		974		1,004,059
4.38%, 4/01/21		795		765,150
The New York Times Co., 6.63%, 12/15/16 (a)		1,800		1,840,500
News America Holdings, Inc.:
8.45%, 8/01/34		2,475		3,001,259
8.15%, 10/17/36		145		178,580
News America, Inc. (a):
4.50%, 2/15/21		620		616,210
6.15%, 2/15/41		745		757,261
Rainbow National Services LLC (a):
8.75%, 9/01/12		225		225,844
10.38%, 9/01/14		1,070		1,114,138
Time Warner Cable, Inc.:
7.30%, 7/01/38		970		1,092,820
5.88%, 11/15/40		460		436,787
Time Warner, Inc.:
4.70%, 1/15/21		1,000		1,005,127
6.10%, 7/15/40		615		620,838
Virgin Media Secured Finance Plc:
6.50%, 1/15/18		330		361,350
7.00%, 1/15/18	GBP	792		1,387,296
				27,748,852
Metals & Mining — 1.9%
Cliffs Natural Resources, Inc., 4.80%, 10/01/20	USD	240		237,630
Corporacion Nacional del Cobre de Chile, 3.75%, 11/04/20 (a)		259		243,763
Falconbridge Ltd., 6.20%, 6/15/35		1,550		1,579,216
Novelis, Inc., 8.75%, 12/15/20 (a)		4,365		4,812,413
				6,873,022

See Notes to Financial Statements.
72	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011

Schedule of Investments (continued) BlackRock Income Opportunity Trust, Inc. (BNA)
(Percentages shown are based on Net Assets)

Corporate Bonds	Par  (000)		Value
Multi-Utilities — 0.4%
Dominion Resources, Inc., 6.00%, 11/30/17	USD	1,135	$	1,279,613
Multiline Retail — 0.5%
Dollar General Corp., 11.88%, 7/15/17 (h)		1,500		1,734,375
Oil, Gas & Consumable Fuels — 7.5%
Arch Coal, Inc., 7.25%, 10/01/20		1,000		1,062,500
BP Capital Markets Plc, 3.13%, 3/10/12 (d)		1,505		1,538,959
Berry Petroleum Co., 8.25%, 11/01/16		160		169,000
Burlington Resources Finance Co., 7.40%, 12/01/31		950		1,126,757
Canadian Natural Resources, Ltd.:
6.50%, 2/15/37		430		476,922
6.25%, 3/15/38		500		540,579
6.75%, 2/01/39		950		1,088,479
Cenovus Energy, Inc., 6.75%, 11/15/39		565		643,013
Chaparral Energy, Inc., 8.25%, 9/01/21 (a)		320		325,600
Chesapeake Energy Corp., 6.63%, 8/15/20		1,175		1,233,750
Conoco Funding Co., 7.25%, 10/15/31		150		184,674
ConocoPhillips Canada Funding Co., 5.95%, 10/15/36		150		160,064
Consol Energy, Inc.:
8.00%, 4/01/17		1,139		1,235,815
8.25%, 4/01/20		861		949,252
Denbury Resources, Inc.:
8.25%, 2/15/20		1,000		1,112,500
6.38%, 8/15/21		450		454,500
Devon Energy Corp., 7.95%, 4/15/32		650		845,461
EnCana Corp.:
6.50%, 8/15/34		70		75,295
6.63%, 8/15/37		775		855,297
Energy XXI Gulf Coast, Inc., 9.25%, 12/15/17 (a)		575		618,125
Enterprise Products Operating LLC:
6.13%, 2/01/13		710		764,502
6.13%, 10/15/39		700		701,354
Marathon Petroleum Corp., 6.50%, 3/01/41 (a)		434		439,682
MidAmerican Energy Co., 5.80%, 10/15/36		800		832,710
MidAmerican Energy Holdings Co.:
5.95%, 5/15/37		950		984,653
6.50%, 9/15/37		2,115		2,351,191
Peabody Energy Corp., 6.50%, 9/15/20		1,220		1,305,400
Petrobras International Finance Co.:
3.88%, 1/27/16		1,780		1,797,294
5.88%, 3/01/18		80		85,137
5.75%, 1/20/20		1,760		1,826,260
Rockies Express Pipeline LLC, 3.90%, 4/15/15 (a)		680		676,399
Valero Energy Corp., 6.63%, 6/15/37		669		683,643
				27,144,767
Paper & Forest Products — 1.5%
Clearwater Paper Corp., 7.13%, 11/01/18 (a)		1,000		1,037,500
Georgia-Pacific LLC, 8.25%, 5/01/16 (a)		1,650		1,860,375
International Paper Co., 7.30%, 11/15/39		610		715,043
NewPage Corp., 11.38%, 12/31/14		1,840		1,835,400
				5,448,318
Pharmaceuticals — 2.2%
GlaxoSmithKline Capital, Inc., 6.38%, 5/15/38 (d)		1,500		1,709,451
Grifols, Inc., 8.25%, 2/01/18 (a)		175		179,813
Merck & Co., Inc., 6.55%, 9/15/37 (d)		1,250		1,479,217
Roche Holdings, Inc., 7.00%, 3/01/39 (a)		900		1,112,730
Teva Pharmaceutical Finance LLC, 6.15%, 2/01/36		1,475		1,625,449
Wyeth, 5.95%, 4/01/37		1,775		1,918,482
				8,025,142

Corporate Bonds	Par  (000)		Value
Professional Services — 0.0%
FTI Consulting, Inc., 7.75%, 10/01/16	USD	125	$	131,094
Real Estate Investment Trusts (REITs) — 0.1%
Kimco Realty Corp., 6.88%, 10/01/19		420		490,202
Road & Rail — 1.3%
Avis Budget Car Rental LLC, 8.25%, 1/15/19		1,000		1,061,250
Burlington Northern Santa Fe LLC, 5.75%, 5/01/40 (e)		940		979,469
Canadian National Railway Co., 6.38%, 10/15/11		1,000		1,037,517
The Hertz Corp., 7.38%, 1/15/21 (a)		1,670		1,745,150
				4,823,386
Semiconductors & Semiconductor Equipment — 0.1%
Spansion LLC, 7.88%, 11/15/17 (a)		390		397,800
Software — 0.2%
Oracle Corp., 5.38%, 7/15/40 (a)		885		862,622
Specialty Retail — 0.2%
Claire’s Escrow Corp., 8.88%, 3/15/19 (a)(i)		415		416,556
General Nutrition Centers, Inc., 10.75%, 3/15/15		405		407,025
				823,581
Thrifts & Mortgage Finance — 1.6%
Achmea Hypotheekbank NV, 3.20%, 11/03/14 (a)(d)		1,325		1,368,848
MGIC Investment Corp., 5.38%, 11/01/15		840		791,700
The PMI Group, Inc., 6.00%, 9/15/16		1,400		1,115,235
Radian Group, Inc.:
5.63%, 2/15/13		1,400		1,400,000
5.38%, 6/15/15		1,400		1,270,500
				5,946,283
Tobacco — 0.2%
Philip Morris International, Inc., 4.50%, 3/26/20		650		670,994
Wireless Telecommunication Services — 4.1%
Clearwire Communications LLC, 12.00%, 12/01/15 (a)		320		348,800
Cricket Communications, Inc.:
10.00%, 7/15/15		35		38,588
7.75%, 5/15/16		1,605		1,697,287
Crown Castle Towers LLC, 6.11%, 1/15/40 (a)		1,595		1,732,226
Digicel Group Ltd. (a):
8.88%, 1/15/15		1,800		1,872,000
8.25%, 9/01/17		150		156,750
Intelsat Jackson Holdings SA, 7.25%, 10/15/20 (a)		980		1,006,950
MetroPCS Wireless, Inc.:
7.88%, 9/01/18		850		897,812
6.63%, 11/15/20		840		817,950
Rogers Communications, Inc., 7.50%, 8/15/38		1,175		1,457,114
SBA Tower Trust, 4.25%, 4/15/40 (a)		950		992,928
Sprint Capital Corp.:
6.88%, 11/15/28		620		558,775
8.75%, 3/15/32		350		364,000
Syniverse Holdings, Inc., 9.13%, 1/15/19 (a)		160		172,800
Vodafone Group Plc, 4.15%, 6/10/14 (d)		2,500		2,647,710
				14,761,690
Total Corporate Bonds — 77.5%				280,784,580

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	73

Schedule of Investments (continued) BlackRock Income Opportunity Trust, Inc. (BNA)
(Percentages shown are based on Net Assets)

Foreign Agency Obligations	Par  (000)			Value
Hellenic Republic Government Bond, 4.60%, 9/20/40	EUR	160		$	122,363
Italy Government International Bond, 5.38%, 6/15/33	USD	470			466,041
Japan Finance Corp., 2.00%, 6/24/11		880			884,653
Japan Finance Organization for Municipal Enterprises, 4.00%, 1/13/21		500			494,995
Kreditanstalt fuer Wiederaufbau, 1.38%, 7/15/13		655			659,685
Mexico Government International Bond, 5.63%, 1/15/17		370			407,925
United Mexican States, Series A, 5.13%, 1/15/20		215			225,212
Total Foreign Agency Obligations — 0.9%					3,260,874
Non-Agency Mortgage-Backed Securities
Collateralized Mortgage Obligations — 6.7%
Adjustable Rate Mortgage Trust, Series 2005-7, Class 4A1, 5.40%, 10/25/35 (b)		1,013			944,577
Banc of America Funding Corp., Series 2007-2, Class 1A2, 6.00%, 3/25/37		1,100			766,422
Chase Mortgage Finance Corp., Series 2005-A1, Class 1A1, 5.40%, 12/25/35 (b)		972			937,430
Collateralized Mortgage Obligation Trust, Series 40, Class R, 580.50%, 4/01/18		—	(j)		67
Countrywide Alternative Loan Trust:
Series 2005-64CB, Class 1A15, 5.50%, 12/25/35		1,682			1,506,471
Series 2006-0A21, Class A1, 0.45%, 3/20/47 (b)		932			557,840
Series 2006-41CB, Class 1A4, 5.75%, 1/25/37		800			618,562
Countrywide Home Loan Mortgage Pass-Through Trust:
Series 2006-0A5, Class 2A1, 0.46%, 4/25/46 (b)		375			231,940
Series 2007-10, Class A22, 6.00%, 7/25/37		771			646,481
Credit Suisse Mortgage Capital Certificates:
Series 2011-2R, Class 2A1, 5.25%, 7/25/36		1,745			1,582,889
Series 2011-2R, Class 2A1, 4.58%, 7/27/36 (a)(b)		1,715			1,555,676
Series 2011-4R, Class 1A1, 5.69%, 5/27/36 (a)(b)		900			801,563
Series 2011-4R, Class 2A1, 5.17%, 5/27/36 (a)(b)		1,160			1,055,600
Series 2011-4R, Class 2A1, 6.25%, 9/25/37		900			801,563
Deutsche ALT-A Securities, Inc. Alternate Loan Trust, Series 2006-0A1, Class A1, 0.46%, 2/25/47 (b)		293			193,331
GMAC Mortgage Corp. Loan Trust, Series 2005-AR3, Class 5A1, 5.14%, 6/19/35 (b)		1,564			1,547,745
GSR Mortgage Loan Trust (b):
Series 2005-AR4, Class 6A1, 5.25%, 7/25/35		2,715			2,644,912
Series 2006-AR1, Class 2A1, 2.81%, 1/25/36		751			645,715
Harborview Mortgage Loan Trust, Series 2005-8, Class 1A2A, 0.59%, 9/19/35 (b)		99			70,433
Homebanc Mortgage Trust, Series 2006-2, Class A1, 0.44%, 12/25/36 (b)		737			573,870
IndyMac IMJA Mortgage Loan Trust, Series 2007-A1, Class A4, 6.00%, 8/25/37		1,100			964,887
JPMorgan Mortgage Trust, Series 2007-S1, Class 2A22, 5.75%, 3/25/37		651			560,013
Merrill Lynch Mortgage Investors, Inc., Series 2006-A3, Class 3A1, 3.78%, 5/25/36 (b)		772			589,746

Non-Agency Mortgage-Backed Securities	Par  (000)		Value
Collateralized Mortgage Obligations (concluded)
Residential Funding Securities LLC, Series 2003-RM2, Class AI5, 8.50%, 5/25/33	USD	2,739	$	2,976,030
WaMu Mortgage Pass-Through Certificates, Series 2007-0A4, Class 1A, 1.10%, 5/25/47 (b)		419		295,653
Wells Fargo Mortgage-Backed Securities Trust:
Series 2006-3, Class A9, 5.50%, 3/25/36		495		502,399
Series 2006-AR4, Class 2A4, 5.66%, 4/25/36 (b)		300		289,338
Series 2007-10, Class 1A21, 6.00%, 7/25/37		239		237,403
				24,098,556
Commercial Mortgage-Backed Securities — 15.3%
Banc of America Commercial Mortgage, Inc.:
Series 2006-4, Class A4, 5.63%, 7/10/46		420		456,014
Series 2006-4, Class AM, 5.68%, 7/10/46		250		262,516
Series 2007-1, Class A4, 5.45%, 1/15/49		1,520		1,619,758
Series 2007-2, Class A4, 5.69%, 4/10/49 (b)		750		804,771
Bear Stearns Commercial Mortgage Securities, Series 2007-PW17, Class A4, 5.69%, 6/11/50 (b)		870		941,924
CS First Boston Mortgage Securities Corp., Series 2002-CP5, Class A2, 4.94%, 12/15/35		2,970		3,107,716
Citigroup Commercial Mortgage Trust, Series 2008-C7, Class A4, 6.10%, 12/10/49 (b)		2,020		2,219,230
Commercial Mortgage Loan Trust, Series 2008-LS1, Class A4B, 6.01%, 12/10/49 (b)		1,515		1,655,382
Commercial Mortgage Pass-Through Certificates, Series 2004-LB3A, Class A3, 5.09%, 7/10/37 (b)		990		995,673
Credit Suisse Mortgage Capital Certificates (b):
Series 2006-C3, Class AM, 5.83%, 6/15/38		1,000		1,054,967
Series 2010-RR2, Class 2A, 5.80%, 9/15/39 (a)		1,010		1,098,384
Extended Stay America Trust, Series 2010-ESHA (a):
Class A, 2.95%, 11/05/27		2,534		2,513,513
Class C, 4.86%, 11/05/27		1,005		1,042,587
First Union-Lehman Brothers-Bank of America, Series 1998-C2, Class D, 6.78%, 11/18/35		2,630		2,726,039
GE Capital Commercial Mortgage Corp., Series 2002-1A, Class A3, 6.27%, 12/10/35		2,228		2,308,132
GMAC Commercial Mortgage Securities, Inc.:
Series 2002-C3, Class A2, 4.93%, 7/10/39		2,580		2,696,233
Series 2004-C3, Class A4, 4.55%, 12/10/41		2,475		2,503,560
GS Mortgage Securities Corp. II, Series 2010-C2, Class C, 5.23%, 12/10/43 (a)(b)		900		908,863
JPMorgan Chase Commercial Mortgage Securities Corp.:
Series 2001-C1, Class A3, 5.86%, 10/12/35		1,712		1,728,184
Series 2004-CBX, Class A4, 4.53%, 1/12/37		2,380		2,412,230
Series 2006-CB14, Class AM, 5.45%, 12/12/44 (b)		330		343,812
Series 2006-CB16, Class AJ, 5.62%, 5/12/45		720		702,101
Series 2007-CB19, Class A4, 5.74%, 2/12/49 (b)		645		694,704
LB-UBS Commercial Mortgage Trust (b):
Series 2004-C4, Class A3, 5.11%, 6/15/29		2,040		2,120,142
Series 2007-C6, Class A4, 5.86%, 7/15/40		825		890,786
Series 2007-C7, Class A3, 5.87%, 9/15/45		700		755,432
Merrill Lynch Mortgage Trust, Series 2004-BPC1, Class A3, 4.47%, 10/12/41 (b)		4,280		4,334,388
Morgan Stanley Capital I, Series 2005-T17, Class A4, 4.52%, 12/13/41		2,663		2,701,093
Wachovia Bank Commercial Mortgage Trust:
Series 2005-C21, Class A3, 5.20%, 10/15/44 (b)		161		164,439
Series 2006-C28, Class A2, 5.50%, 10/15/48		7,374		7,475,237
Series 2007-C33, Class A4, 5.90%, 2/15/51 (b)		2,035		2,198,179
				55,435,989

See Notes to Financial Statements.
74	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011

Schedule of Investments (continued) BlackRock Income Opportunity Trust, Inc. (BNA)
(Percentages shown are based on Net Assets)

Non-Agency Mortgage-Backed Securities		Par  (000)		Value
Interest Only Collateralized Mortgage Obligations — 0.0%
Collateralized Mortgage Obligation Trust, Series 42, Class R, 6,000.00%, 10/01/14	USD	—	(j)	$	226
GSMPS Mortgage Loan Trust, Series 1998-5, Class IO, 0.97%, 6/19/27 (a)(b)		2,585			67,864
Salomon Brothers Mortgage Securities VII, Inc., Series 2000-1, Class IO, 0.49%, 3/25/22 (b)		360			1,605
					69,695
Interest Only Commercial Mortgage-Backed Securities — 0.0%
Morgan Stanley Capital I, Series 1997-HF1, Class X, 3.44%, 7/15/29 (a)(b)		7			2
Total Non-Agency Mortgage-Backed Securities — 22.0%					79,604,242
Other Interests (k)		Beneficial Interest (000)
Health Care Providers & Services — 0.0%
Critical Care Systems International, Inc.		2			191
Total Other Interests — 0.0%					191
Preferred Securities
Capital Trusts		Par  (000)
Insurance — 0.8%
The Allstate Corp., 6.50%, 5/15/67 (b)		2,150			2,206,437
Lincoln National Corp., 6.05%, 4/20/67 (b)		750			717,225
Total Capital Trusts — 0.8%					2,923,662
Preferred Stocks		Shares
Media — 0.0%
CMP Susquehanna Radio Holdings Corp., 0.00% (a)(b)(c)		12,873			—
Thrifts & Mortgage Finance — 0.1%
Fannie Mae, 8.25% (c)		10,000			19,500
Fannie Mae, Series O, 0.00% (c)		40,000			128,000
Freddie Mac, Series Z, 8.38% (c)		94,539			183,406
Total Preferred Stocks — 0.1%					330,906
Total Preferred Securities — 0.9%					3,254,568
Taxable Municipal Bonds		Par  (000)
City of Chicago Illinois, RB, Build America Bonds, 6.40%, 1/01/40	USD	250			240,293
East Bay Municipal Utility District, RB, Build America Bonds, 5.87%, 6/01/40		950			953,078
Indianapolis Local Public Improvement Bond Bank, RB, Build America Bonds, 6.12%, 1/15/40		1,260			1,291,651

Taxable Municipal Bonds		Par  (000)			Value
Metropolitan Transportation Authority, RB, Build America Bonds, 7.34%, 11/15/39	USD	670		$	764,470
New York City Municipal Water Finance Authority, RB:
Build America Bonds, 5.72%, 6/15/42		690			676,545
Second General Resolution, Series EE, 5.38%, 6/15/43		385			390,386
Second General Resolution, Series EE, 5.50%, 6/15/43		465			477,722
New York State Dormitory Authority, RB, Build America Bonds:
5.63%, 3/15/39		550			540,447
5.60%, 3/15/40		950			896,762
Port Authority of New York & New Jersey, RB, Consolidated, 159th Series, 6.04%, 12/01/29		395			403,892
State of California, GO:
Build America Bonds, 7.30%, 10/01/39		1,100			1,157,343
Build America Bonds, 7.35%, 11/01/39		540			571,509
Build America Bonds, Various Purpose, 7.50%, 4/01/34		360			389,113
Various Purpose, Series 3, 5.45%, 4/01/15		2,475			2,613,897
University of California, RB, Build America Bonds, 5.95%, 5/15/45		440			407,158
Total Taxable Municipal Bonds — 3.3%					11,774,266
U.S. Government Sponsored Agency Securities
Agency Obligations — 3.7%
Fannie Mae (d):
6.45%, 10/09/19 (l)		6,125			4,086,288
5.63%, 7/15/37 (e)		825			921,670
Federal Home Loan Banks:
5.25%, 12/09/22		700			772,998
5.37%, 9/09/24 (m)		1,100			1,219,854
Federal Housing Administration, Merrill Projects:
Series 29, 7.43%, 10/01/20		42			41,978
Series 42, 7.43%, 9/25/22		41			40,990
Federal Housing Administration, Westmore Project, 7.25%, 4/01/21		1,372			1,372,348
Resolution Funding Corp., 8.57%, 4/15/30 (l)		6,055			2,429,781
Tennessee Valley Authority, 5.25%, 9/15/39 (d)		2,405			2,518,752
					13,404,659
Collateralized Mortgage Obligations — 0.3%
Fannie Mae Mortgage-Backed Securities:
Series 1991-46, Class S, 1,402.63%, 5/25/21 (b)		—	(j)		2,783
Series 1991-87, Class S, 25.94%, 8/25/21 (b)		28			41,939
Series 2005-5, Class PK, 5.00%, 12/25/34		1,107			1,178,750
Series G-7, Class S, 116.20%, 3/25/21 (b)		—	(j)		1,780
Series G-17, Class S, 580.11%, 6/25/21 (b)		—	(j)		2,546
Series G-33, Class PV, 1,078.42%, 10/25/21		—	(j)		3,219
Series G-49, Class S, 5.55%, 12/25/21 (b)		—	(j)		1,092
Freddie Mac Mortgage-Backed Securities:
Series 19, Class R, 9,757.35%, 3/15/20 (b)		—	(j)		741
Series 75, Class R, 9.50%, 1/15/21		—	(j)		1
Series 75, Class RS, 22.67%, 1/15/21 (b)		—	(j)		1
Series 173, Class R, 9.00%, 11/15/21		—	(j)		7
Series 173, Class RS, 9.19%, 11/15/21 (b)		—	(j)		7
Series 1057, Class J, 1,008.00%, 3/15/21		—	(j)		1,163
					1,234,029

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	75

Schedule of Investments (continued) BlackRock Income Opportunity Trust, Inc. (BNA)
(Percentages shown are based on Net Assets)

U.S. Government Sponsored Agency Securities		Par  (000)		Value
Federal Deposit Insurance Corporation Guaranteed — 0.7%
General Electric Capital Corp.:
2.00%, 9/28/12 (d)	USD	1,850		$	1,891,092
2.13%, 12/21/12		525			538,214
					2,429,306
Interest Only Collateralized Mortgage Obligations — 0.1%
Fannie Mae Mortgage-Backed Securities:
Series 7, Class 2, 8.50%, 4/01/17		2			378
Series 89, Class 2, 8.00%, 10/01/18		4			580
Series 94, Class 2, 9.50%, 8/01/21		2			350
Series 1990-123, Class M, 1,009.50%, 10/25/20		—	(j)		279
Series 1990-136, Class S, 19.80%, 11/25/20 (b)		6			9,391
Series 1991-38, Class N, 1,008.50%, 4/25/21		—	(j)		1
Series 1991-99, Class L, 930.00%, 8/25/21		—	(j)		1,327
Series 1991-139, Class PT, 648.30%, 10/25/21		—	(j)		1,241
Series 1997-50, Class SI, 1.20%, 4/25/23 (b)		190			6,560
Series G-10, Class S, 575.40%, 5/25/21 (b)		—	(j)		5,457
Series G-12, Class S, 608.10%, 5/25/21 (b)		—	(j)		4,256
Series G92-5, Class H, 9.00%, 1/25/22		37			5,553
Freddie Mac Mortgage-Backed Securities:
Series 176, Class M, 1,010.00%, 7/15/21		—	(j)		362
Series 200, Class R, 98,522.80%, 12/15/22 (b)		—	(j)		7
Series 1043, Class H, 21.94%, 2/15/21 (b)		4			8,703
Series 1054, Class I, 435.30%, 3/15/21 (b)		—	(j)		639
Series 1056, Class KD, 1,084.50%, 3/15/21		—	(j)		750
Series 1148, Class E, 592.50%, 10/15/21 (b)		—	(j)		2,593
Series 1254, Class Z, 8.50%, 4/15/22		76			16,167
Series 2611, Class QI, 5.50%, 9/15/32		2,405			317,147
					381,741
Mortgage-Backed Securities — 58.1%
Fannie Mae Mortgage-Backed Securities (n):
4.00%, 3/15/41		46,700			46,209,553
4.50%, 3/15/41		38,100			38,851,279
5.00%, 2/15/41 – 4/15/41		52,100			54,509,738
5.50%, 12/01/13 – 4/15/41		40,004			42,731,945
6.00%, 3/01/16 – 3/15/41		26,106			28,404,082
Freddie Mac Mortgage-Backed Securities, 4.50%, 3/15/41 (n)		100			101,828
Ginnie Mae Mortgage-Backed Securities, 8.00%, 4/15/24 – 6/15/25		20			24,043
					210,832,468
Principal Only Collateralized Mortgage Obligations — 0.0%
Fannie Mae Mortgage-Backed Securities:
Series 203, Class 1, 2/01/23		11			9,463
Series 228, Class 1, 6/01/23		7			6,332
Series 1993-51, Class E, 2/25/23		35			31,264
Series 1993-70, Class A, 5/25/23		5			4,701
Freddie Mac Mortgage-Backed Securities, Series 1739, Class B, 2/15/24		24			23,342
					75,102
Total U.S. Government Sponsored Agency Securities — 62.9%					228,357,305

U.S. Treasury Obligations		Par  (000)	Value
U.S. Treasury Bonds (d):
8.13%, 8/15/21	USD	1,550	$	2,189,617
8.00%, 11/15/21		7,065		9,916,392
6.25%, 8/15/23		4,990		6,227,365
3.50%, 2/15/39		2,865		2,409,287
4.38%, 5/15/40		8,225		8,063,050
3.88%, 8/15/40		1,335		1,198,579
4.25%, 11/15/40		12,900		12,373,925
4.75%, 2/15/41		4,855		5,062,852
U.S. Treasury Notes:
0.63%, 1/31/13 (d)		9,700		9,695,072
0.50%, 10/15/13 (d)		2,745		2,710,687
1.25%, 2/15/14 (d)		1,855		1,859,638
2.00%, 1/31/16 (d)		8,495		8,454,513
2.63%, 1/31/18 (d)		2,595		2,566,009
2.63%, 8/15/20		1,105		1,038,700
2.63%, 11/15/20 (d)		15,229		14,248,165
3.63%, 2/15/21 (d)		3,520		3,582,149
4.25%, 5/15/39 (d)		2,770		2,665,261
Total U.S. Treasury Obligations — 26.0%				94,261,261
Warrants (o)		Shares
Media — 0.0%
CMP Susquehanna Radio Holdings Corp. (Expires 3/26/19) (a)		14,710		—
Software — 0.0%
Bankruptcy Management Solutions, Inc. (Expires 9/29/17)		101		1
Total Warrants — 0.0%				1
Total Long-Term Investments (Cost — $706,365,317) — 199.1%				721,538,766
Short-Term Securities
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.15% (p)(q)		6,527,500		6,527,500
Total Short-Term Securities (Cost — $6,527,500) — 1.8%				6,527,500
Options Purchased		Contracts
Exchange-Traded Call Options — 0.0%
Ten-Year U.S. Treasury Bond, Strike Price USD 120.50, Expires 5/20/11		98		93,406
Exchange-Traded Put Options — 0.1%
Ten-Year U.S. Treasury Bond, Strike Price USD 117.50, Expires 3/25/11		71		26,625
Eurodollar 1-Year Mid-Curve Options, Strike Price USD 98.25, Expires 9/16/11		265		175,562
				202,187

See Notes to Financial Statements.
76	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011

Schedule of Investments (continued) BlackRock Income Opportunity Trust, Inc. (BNA)
(Percentages shown are based on Net Assets)

Options Purchased	Notional Amount (000)		Value
Over-the-Counter Call Swaptions — 0.8%
Receive a fixed rate of 4.22% and pay a floating rate based on 3-month LIBOR, Expires 4/29/11, Broker Credit Suisse International	USD	4,500	$	242,224
Receive a fixed rate of 3.65% and pay a floating rate based on 3-month LIBOR, Expires 5/05/11, Broker Credit Suisse International		5,600		96,277
Receive a fixed rate of 4.01% and pay a floating rate based on 3-month LIBOR, Expires 5/16/11, Broker Goldman Sachs Bank USA		6,000		229,883
Receive a fixed rate of 3.86% and pay a floating rate based on 3-month LIBOR, Expires 5/19/11, Broker JPMorgan Chase Bank NA		10,700		306,334
Receive a fixed rate of 3.00% and pay a floating rate based on 3-month LIBOR, Expires 9/02/11, Broker UBS AG		5,000		21,333
Receive a fixed rate of 3.12% and pay a floating rate based on 3-month LIBOR, Expires 11/08/11, Broker Deutsche Bank AG		3,000		21,765
Receive a fixed rate of 3.54% and pay a floating rate based on 3-month LIBOR, Expires 12/01/11, Broker Citibank NA		6,500		113,658
Receive a fixed rate of 3.63% and pay a floating rate based on 3-month LIBOR, Expires 12/02/11, Broker Deutsche Bank AG		3,100		63,911
Receive a fixed rate of 3.99% and pay a floating rate based on 3-month LIBOR, Expires 1/12/12, Broker UBS AG		1,700		59,531
Receive a fixed rate of 1.76% and pay a floating rate based on 3-month LIBOR, Expires 1/26/12, Broker Deutsche Bank AG		9,300		61,470
Receive a fixed rate of 4.29% and pay a floating rate based on 3-month LIBOR, Expires 2/06/12, Broker UBS AG		2,100		104,266
Receive a fixed rate of 4.33% and pay a floating rate based on 3-month LIBOR, Expires 2/07/12, Broker Goldman Sachs Bank USA		2,100		108,757
Receive a fixed rate of 4.39% and pay a floating rate based on 3-month LIBOR, Expires 5/08/12, Broker Citibank NA		2,300		120,531
Receive a fixed rate of 3.89% and pay a floating rate based on 3-month LIBOR, Expires 7/09/12, Broker Goldman Sachs Bank USA		4,200		124,617
Receive a fixed rate of 3.93% and pay a floating rate based on 3-month LIBOR, Expires 7/16/12, Broker Goldman Sachs Bank USA		4,700		146,009
Receive a fixed rate of 3.70% and pay a floating rate based on 3-month LIBOR, Expires 8/03/12, Broker Credit Suisse International		4,700		111,208
Receive a fixed rate of 3.30% and pay a floating rate based on 3-month LIBOR, Expires 10/22/12, Broker JPMorgan Chase Bank NA		4,000		57,019
Receive a fixed rate of 3.46% and pay a floating rate based on 3-month LIBOR, Expires 10/22/12, Broker UBS AG		5,500		96,396
Receive a fixed rate of 3.81% and pay a floating rate based on 3-month LIBOR, Expires 9/17/13, Broker Citibank NA		1,400		37,306
Receive a fixed rate of 3.88% and pay a floating rate based on 3-month LIBOR, Expires 10/28/13, Broker Deutsche Bank AG		1,600		45,792
Receive a fixed rate of 5.20% and pay a floating rate based on 3-month LIBOR, Expires 4/28/15, Broker Citibank NA		9,300		661,248
				2,829,535

Options Purchased	Notional Amount (000)		Value
Over-the-Counter Put Options — 0.0%
EUR Put Option, Strike Price USD 86.00, Expires 5/20/11, Broker Deutsche Bank AG	USD	2,915	$	10,436
JPY Put Option, Strike Price USD 1.32, Expires 5/19/11, Broker Citibank NA		12,730		121,035
				131,471
Over-the-Counter Put Swaptions — 1.1%
Pay a fixed rate of 4.22% and receive a floating rate based on 3-month LIBOR, Expires 4/29/11, Broker Credit Suisse International		4,500		9,980
Pay a fixed rate of 4.02% and receive a floating rate based on 3-month LIBOR, Expires 5/05/11, Broker Credit Suisse International		9,100		46,298
Pay a fixed rate of 4.01% and receive a floating rate based on 3-month LIBOR, Expires 5/16/11, Broker Goldman Sachs Bank USA		6,000		39,250
Pay a fixed rate of 3.86% and receive a floating rate based on 3-month LIBOR, Expires 5/19/11, Broker JPMorgan Chase Bank NA		10,700		111,360
Pay a fixed rate of 3.00% and receive a floating rate based on 3-month LIBOR, Expires 9/02/11, Broker UBS AG		5,000		358,717
Pay a fixed rate of 3.12% and receive a floating rate based on 3-month LIBOR, Expires 11/08/11, Broker Deutsche Bank AG		3,000		216,492
Pay a fixed rate of 3.54% and receive a floating rate based on 3-month LIBOR, Expires 12/01/11, Broker Citibank NA		6,500		323,870
Pay a fixed rate of 3.63% and receive a floating rate based on 3-month LIBOR, Expires 12/02/11, Broker Deutsche Bank AG		3,100		139,605
Pay a fixed rate of 3.99% and receive a floating rate based on 3-month LIBOR, Expires 1/12/12, Broker UBS AG		1,700		57,834
Pay a fixed rate of 1.76% and receive a floating rate based on 3-month LIBOR, Expires 1/26/12, Broker Deutsche Bank AG		9,300		75,871
Pay a fixed rate of 2.50% and receive a floating rate based on 3-month LIBOR, Expires 1/26/12, Broker Deutsche Bank AG		4,400		17,401
Pay a fixed rate of 4.29% and receive a floating rate based on 3-month LIBOR, Expires 2/06/12, Broker UBS AG		2,100		54,748
Pay a fixed rate of 4.33% and receive a floating rate based on 3-month LIBOR, Expires 2/07/12, Broker UBS AG		2,100		52,458
Pay a fixed rate of 4.39% and receive a floating rate based on 3-month LIBOR, Expires 5/08/12, Broker Citibank NA		2,300		71,660
Pay a fixed rate of 3.89% and receive a floating rate based on 3-month LIBOR, Expires 7/09/12, Broker Goldman Sachs Bank USA		4,200		237,206
Pay a fixed rate of 3.93% and receive a floating rate based on 3-month LIBOR, Expires 7/16/12, Broker Goldman Sachs Bank USA		4,700		259,789
Pay a fixed rate of 3.70% and receive a floating rate based on 3-month LIBOR, Expires 8/03/12, Broker Credit Suisse International		4,700		319,991
Pay a fixed rate of 3.46% and receive a floating rate based on 3-month LIBOR, Expires 10/22/12, Broker UBS AG		5,500		489,653
Pay a fixed rate of 3.30% and receive a floating rate based on 3-month LIBOR, Expires 10/22/12, Broker JPMorgan Chase Bank NA		4,000		393,370

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	77

Schedule of Investments (continued)	BlackRock Income Opportunity Trust, Inc. (BNA)
	(Percentages shown are based on Net Assets)

Options Purchased	Notional Amount (000)		Value
Over-the-Counter Put Swaptions (concluded)
Pay a fixed rate of 3.81% and receive a floating rate based on 3-month LIBOR, Expires 9/17/13, Broker Citibank NA	USD	1,400	$	130,147
Pay a fixed rate of 3.88% and receive a floating rate based on 3-month LIBOR, Expires 10/28/13, Broker Deutsche Bank AG		1,600		145,958
Pay a fixed rate of 5.20% and receive a floating rate based on 3-month LIBOR, Expires 4/28/15, Broker Citibank NA		9,300		533,684
				4,085,342
Total Options Purchased (Cost — $8,738,783) — 2.0%				7,341,941
Total Investments Before TBA Sale Commitments and Outstanding Options Written (Cost — $721,631,600*) — 202.9%				735,408,207

TBA Sale Commitments	Par  (000)
Fannie Mae Mortgage-Backed Securities:
4.00%, 3/15/41		34,100	(33,620,486	)
4.50%, 3/15/41		28,600	(29,149,663	)
5.00%, 2/15/41 – 4/15/41		47,000	(49,169,880	)
5.50%, 12/01/13 – 4/15/41		34,200	(36,529,184	)
6.00%, 3/01/16 – 3/15/41		32,000	(34,746,082	)
Total TBA Sale Commitments (Proceeds — $182,488,008) — (50.5)%			(183,215,295	)

Options Written	Contracts
Exchange-Traded Call Options — (0.1)%
10-Year U.S. Treasury Bond:
Strike Price USD 122.50, Expires 5/20/11		98	(39,813	)
Strike Price USD 121.50, Expires 5/20/11		98	(62,781	)
			(102,594	)
Exchange-Traded Put Options — (0.0)%
Eurodollar 1-Year Mid-Curve Options, Strike Price USD 97.75, Expires 9/16/11		265	(92,750	)

	Notional Amount (000)
Over-the-Counter Call Swaptions — (1.2)%
Pay a fixed rate of 4.06% and receive a floating rate based on 3-month LIBOR, Expires 5/12/11, Broker Royal Bank of Scotland Plc	USD	6,800	(286,459	)
Pay a fixed rate of 4.06% and receive a floating rate based on 3-month LIBOR, Expires 5/13/11, Broker BNP Paribas SA		3,500	(146,820	)
Pay a fixed rate of 3.86% and receive a floating rate based on 3-month LIBOR, Expires 6/02/11, Broker UBS AG		5,000	(145,657	)

Options Written	Notional Amount (000)		Value
Over-the-Counter Call Swaptions (continued)
Pay a fixed rate of 3.82% and receive a floating rate based on 3-month LIBOR, Expires 12/08/11, Broker JPMorgan Chase Bank NA	USD	3,200	$	(89,139	)
Pay a fixed rate of 3.83% and receive a floating rate based on 3-month LIBOR, Expires 12/12/11, Broker JPMorgan Chase Bank NA		2,300		(64,772	)
Pay a fixed rate of 3.85% and receive a floating rate based on 3-month LIBOR, Expires 12/12/11, Broker UBS AG		1,300		(38,141	)
Pay a fixed rate of 3.95% and receive a floating rate based on 3-month LIBOR, Expires 12/13/11, Broker Goldman Sachs Bank USA		2,000		(67,260	)
Pay a fixed rate of 4.00% and receive a floating rate based on 3-month LIBOR, Expires 1/05/12, Broker JPMorgan Chase Bank NA		3,000		(106,829	)
Pay a fixed rate of 4.02% and receive a floating rate based on 3-month LIBOR, Expires 2/02/12, Broker Goldman Sachs Bank USA		2,800		(100,718	)
Pay a fixed rate of 4.02% and receive a floating rate based on 3-month LIBOR, Expires 2/02/12, Broker UBS AG		3,500		(126,693	)
Pay a fixed rate of 2.08% and receive a floating rate based on 3-month LIBOR, Expires 2/07/12, Broker Goldman Sachs Bank USA		9,200		(95,982	)
Pay a fixed rate of 4.14% and receive a floating rate based on 3-month LIBOR, Expires 6/15/12, Broker Deutsche Bank AG		3,500		(139,282	)
Pay a fixed rate of 4.05% and receive a floating rate based on 3-month LIBOR, Expires 6/18/12, Broker Deutsche Bank AG		3,500		(126,281	)
Pay a fixed rate of 3.83% and receive a floating rate based on 3-month LIBOR, Expires 7/30/12, Broker Citibank NA		1,700		(47,122	)
Pay a fixed rate of 3.77% and receive a floating rate based on 3-month LIBOR, Expires 11/23/12, Broker UBS AG		3,300		(84,998	)
Pay a fixed rate of 3.86% and receive a floating rate based on 3-month LIBOR, Expires 11/23/12, Broker Deutsche Bank AG		4,600		(129,889	)
Pay a fixed rate of 4.03% and receive a floating rate based on 3-month LIBOR, Expires 12/06/12, Broker UBS AG		2,000		(67,904	)
Pay a fixed rate of 4.90% and receive a floating rate based on 3-month LIBOR, Expires 3/04/13, Broker Deutsche Bank AG		4,800		(337,450	)
Pay a fixed rate of 4.92% and receive a floating rate based on 3-month LIBOR, Expires 3/05/13, Broker Deutsche Bank AG		3,300		(236,180	)
Pay a fixed rate of 5.00% and receive a floating rate based on 3-month LIBOR, Expires 4/22/13, Broker JPMorgan Chase Bank NA		6,000		(446,584	)
Pay a fixed rate of 4.32% and receive a floating rate based on 3-month LIBOR, Expires 5/28/13, Broker Royal Bank of Scotland Plc		500		(21,535	)
Pay a fixed rate of 4.07% and receive a floating rate based on 3-month LIBOR, Expires 7/08/13, Broker Deutsche Bank AG		1,700		(58,418	)
Pay a fixed rate of 4.06% and receive a floating rate based on 3-month LIBOR, Expires 7/15/13, Broker Credit Suisse International		2,600		(88,458	)
Pay a fixed rate of 5.33% and receive a floating rate based on 3-month LIBOR, Expires 7/17/13, Broker JPMorgan Chase Bank NA		9,200		(620,266	)

See Notes to Financial Statements.
78	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011

Schedule of Investments (continued)	BlackRock Income Opportunity Trust, Inc. (BNA)
	(Percentages shown are based on Net Assets)

Options Written	Notional Amount (000)		Value
Over-the-Counter Call Swaptions (concluded)
Pay a fixed rate of 3.44% and receive a floating rate based on 6-month EURIBOR, Expires 10/21/13, Broker Deutsche Bank AG	EUR	1,300	$	(684	)
Pay a fixed rate of 4.76% and receive a floating rate based on 3-month LIBOR, Expires 1/27/14, Broker Royal Bank of Scotland Plc	USD	1,000		(57,902	)
Pay a fixed rate of 5.08% and receive a floating rate based on 3-month LIBOR, Expires 2/10/14, Broker Bank of America NA		3,500		(249,986	)
Pay a fixed rate of 5.11% and receive a floating rate based on 3-month LIBOR, Expires 2/10/14, Broker Citibank NA		3,800		(275,804	)
Pay a fixed rate of 4.84% and receive a floating rate based on 3-month LIBOR, Expires 12/02/14, Broker JPMorgan Chase Bank NA		2,600		(150,947	)
				(4,408,160	)
Over-the-Counter Put Swaptions — (1.2)%
Receive a fixed rate of 1.80% and pay a floating rate based on 3-month LIBOR, Expires 3/02/11, Broker Royal Bank of Scotland Plc		13,900		(366,111	)
Receive a fixed rate of 2.15% and pay a floating rate based on 3-month LIBOR, Expires 4/26/11, Broker Deutsche Bank AG		3,700		(64,791	)
Receive a fixed rate of 4.06% and pay a floating rate based on 3-month LIBOR, Expires 5/12/11, Broker Royal Bank of Scotland Plc		6,800		(35,210	)
Receive a fixed rate of 4.06% and pay a floating rate based on 3-month LIBOR, Expires 5/13/11, Broker BNP Paribas SA		3,500		(18,610	)
Receive a fixed rate of 3.86% and pay a floating rate based on 3-month LIBOR, Expires 6/02/11, Broker UBS AG		5,000		(60,879	)
Receive a fixed rate of 3.82% and pay a floating rate based on 3-month LIBOR, Expires 12/08/11, Broker JPMorgan Chase Bank NA		3,200		(118,383	)
Receive a fixed rate of 3.83% and pay a floating rate based on 3-month LIBOR, Expires 12/12/11, Broker JPMorgan Chase Bank NA		2,300		(85,302	)
Receive a fixed rate of 3.85% and pay a floating rate based on 3-month LIBOR, Expires 12/12/11, Broker UBS AG		1,300		(46,681	)
Receive a fixed rate of 3.95% and pay a floating rate based on 3-month LIBOR, Expires 12/13/11, Broker Goldman Sachs Bank USA		2,000		(64,300	)
Receive a fixed rate of 4.00% and pay a floating rate based on 3-month LIBOR, Expires 1/05/12, Broker JPMorgan Chase Bank NA		3,000		(98,522	)
Receive a fixed rate of 4.02% and pay a floating rate based on 3-month LIBOR, Expires 2/02/12, Broker Goldman Sachs Bank USA		2,800		(98,545	)
Receive a fixed rate of 4.02% and pay a floating rate based on 3-month LIBOR, Expires 2/02/12, Broker UBS AG		3,500		(122,512	)
Receive a fixed rate of 2.08% and pay a floating rate based on 3-month LIBOR, Expires 2/07/12, Broker Goldman Sachs Bank USA		9,200		(58,283	)
Receive a fixed rate of 4.14% and pay a floating rate based on 3-month LIBOR, Expires 6/15/12, Broker Deutsche Bank AG		3,500		(151,880	)
Receive a fixed rate of 4.05% and pay a floating rate based on 3-month LIBOR, Expires 6/18/12, Broker Deutsche Bank AG		3,500		(165,142	)

Options Written	Notional Amount (000)		Value
Over-the-Counter Put Swaptions (concluded)
Receive a fixed rate of 3.83% and pay a floating rate based on 3-month LIBOR, Expires 7/30/12, Broker Citibank NA	USD	1,700	$	(103,849	)
Receive a fixed rate of 3.77% and pay a floating rate based on 3-month LIBOR, Expires 11/23/12, Broker UBS AG		3,300		(245,375	)
Receive a fixed rate of 3.86% and pay a floating rate based on 3-month LIBOR, Expires 11/23/12, Broker Deutsche Bank AG		4,600		(322,745	)
Receive a fixed rate of 4.03% and pay a floating rate based on 3-month LIBOR, Expires 12/06/12, Broker UBS AG		2,000		(125,738	)
Receive a fixed rate of 4.90% and pay a floating rate based on 3-month LIBOR, Expires 3/04/13, Broker Deutsche Bank AG		4,800		(177,227	)
Receive a fixed rate of 4.92% and pay a floating rate based on 3-month LIBOR, Expires 3/05/13, Broker Deutsche Bank AG		3,300		(119,714	)
Receive a fixed rate of 5.00% and pay a floating rate based on 3-month LIBOR, Expires 4/22/13, Broker JPMorgan Chase Bank NA		6,000		(220,149	)
Receive a fixed rate of 4.32% and pay a floating rate based on 3-month LIBOR, Expires 5/28/13, Broker Royal Bank of Scotland Plc		500		(31,169	)
Receive a fixed rate of 4.07% and pay a floating rate based on 3-month LIBOR, Expires 7/08/13, Broker Deutsche Bank AG		1,700		(128,711	)
Receive a fixed rate of 4.06% and pay a floating rate based on 3-month LIBOR, Expires 7/15/13, Broker Credit Suisse International		2,600		(199,177	)
Receive a fixed rate of 5.33% and pay a floating rate based on 3-month LIBOR, Expires 7/17/13, Broker JPMorgan Chase Bank NA		9,200		(136,384	)
Receive a fixed rate of 3.44% and pay a floating rate based on 6-month EURIBOR, Expires 10/21/13, Broker Deutsche Bank AG	EUR	1,300		(504	)
Receive a fixed rate of 4.76% and pay a floating rate based on 3-month LIBOR, Expires 1/27/14, Broker Royal Bank of Scotland Plc	USD	1,000		(57,495	)
Receive a fixed rate of 5.08% and pay a floating rate based on 3-month LIBOR, Expires 2/10/14, Broker Bank of America NA		3,500		(166,547	)
Receive a fixed rate of 5.11% and pay a floating rate based on 3-month LIBOR, Expires 2/10/14, Broker Citibank NA		3,800		(177,947	)
Receive a fixed rate of 4.84% and pay a floating rate based on 3-month LIBOR, Expires 12/02/14, Broker JPMorgan Chase Bank NA		2,600		(171,569	)
Receive a fixed rate of 4.47% and pay a floating rate based on 3-month LIBOR, Expires 8/05/15, Broker JPMorgan Chase Bank NA		7,900		(364,095	)
				(4,303,546	)
Total Options Written (Premiums Received — $9,476,295) — (2.5)%				(8,907,050	)
Total Investments, Net of TBA Sale Commitments and Options Written — 149.9%				543,285,862
Liabilities in Excess of Other Assets — (49.9)%				(180,905,113	)
Net Assets — 100.0%			$	362,380,749

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	79

Schedule of Investments (continued) BlackRock Income Opportunity Trust, Inc. (BNA)

* The cost and unrealized appreciation (depreciation) of investments as of February 28, 2011, as computed for federal income tax purposes were as follows:

Aggregate cost	$	722,238,300
Gross unrealized appreciation	$	24,422,660
Gross unrealized depreciation		(11,252,753	)
Net unrealized appreciation	$	13,169,907

(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)	Non-income producing security.
(d)	All or a portion of security has been pledged as collateral in connection with open reverse repurchase agreements.
(e)	All or a portion of security has been pledged as collateral in connection with swaps.
(f)	Issuer filed for bankruptcy and/or is in default of interest payments.
(g)	Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown reflects the current yield as of report date.
(h)	Represents a payment-in-kind security which may pay interest/dividends in additional par/shares.
(i)	When-issued security. Unsettled when-issued transactions were as follows:

Counterparty	Value		Unrealized Appreciation
Credit Suisse Securities (USA) LLC	$	416,556	$	1,556

(j)	Amount is less than $1,000.
(k)	Other interests represent beneficial interest in liquidation trusts and other reorganization entities and are non-income producing.
(l)	Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(m)	All or a portion of security has been pledged as collateral in connection with open financial futures contracts.
(n)	Represents or includes a TBA transaction. Unsettled TBA transactions as of report date were as follows:

Counterparty	Value			Unrealized Appreciation (Depreciation)
Banque Nationale De Paris	$	1,157,810		$	2,810
Citigroup Global Markets Inc.	$	(2,723,970	)	$	(89,735	)
Credit Suisse Securities (USA) LLC	$	12,397,500		$	141,187
Deutsche Bank Securities, Inc.	$	(29,371,435	)	$	28,674
Goldman Sachs & Co.	$	(40,359	)	$	82,071
Greenwich Financial Services	$	4,220,505		$	51,161
JPMorgan	$	2,267,657		$	27,204
Morgan Stanley & Co., Inc.	$	(44,682	)	$	(854	)
Nomura Securities International, Inc.	$	35,541,936		$	468,467
UBS Securities	$	884,780		$	32,030

(o)	Warrants entitle the Trust to purchase a predetermined number of shares of common stock and are non-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date, if any.
(p)	Investments in companies considered to be an affiliate of the Trust during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate	Shares Held at August 31, 2010		Net Activity		Shares Held at February 28, 2011		Income
BlackRock Liquidity Funds, TempFund, Institutional Class		—		6,527,500		6,527,500	$	1,327

(q)	Represents the current yield as of report date.
•	For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by Trust management. This definition may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.
•	Reverse repurchase agreements outstanding as of February 28, 2011 were as follows:

Counterparty	Interest Rate		Trade Date		Maturity Date		Net Closing Amount		Face Amount
Barclays Capital, Inc.		0.28%		10/19/10		Open	$	6,335,509	$	6,328,962
UBS Securities LLC		0.38%		11/3/10		Open		2,407,768		2,404,773
UBS Securities LLC		0.38%		11/4/10		Open		3,174,541		3,170,625
Credit Suisse Securities (USA) LLC		0.40%		11/22/10		Open		2,059,263		2,057,000
Merrill Lynch		0.00%		12/13/10		Open		29,477,013		29,477,013
Deutsche Bank, NA		0.40%		12/14/10		Open		2,501,826		2,499,687
Deutsche Bank, NA		0.40%		12/16/10		Open		4,473,725		4,470,000
Deutsche Bank, NA		0.40%		12/17/10		Open		5,629,876		5,625,250
Credit Suisse Securities (USA) LLC		0.40%		12/22/10		Open		1,840,410		1,839,000
UBS Securities LLC		0.38%		1/10/11		Open		11,656,215		11,650,066
Credit Suisse Securities (USA) LLC		0.26%		1/19/11		Open		2,429,793		2,429,080
BNP Paribas Securities Corp.		0.21%		1/21/11		Open		799,494		799,313
Credit Suisse Securities (USA) LLC		0.40%		1/21/11		Open		1,631,707		1,631,000
Deutsche Bank, NA		0.40%		1/26/11		Open		4,408,415		4,406,750
Credit Suisse Securities (USA) LLC		0.40%		1/27/11		Open		7,703,355		7,700,531
BNP Paribas Securities Corp.		0.23%		2/10/11		3/10/11		2,482,301		2,482,000
Credit Suisse Securities (USA) LLC		0.19%		2/14/11		3/15/11		3,878,724		3,878,437
Credit Suisse Securities (USA) LLC		0.45%		2/24/11		3/11/11		8,634,775		8,634,344
Deutsche Bank, NA		0.14%		2/28/11		3/01/11		8,484,414		8,484,381
Deutsche Bank, NA		0.23%		2/28/11		3/01/11		12,480,830		12,480,750
BNP Paribas Securities Corp.		0.15%		2/28/11		3/01/11		1,857,326		1,857,319
BNP Paribas Securities Corp.		0.24%		2/28/11		3/01/11		1,485,010		1,485,000
Barclays Capital, Inc.		0.18%		2/28/11		3/01/11		9,700,049		9,700,000
Credit Suisse Securities (USA) LLC		0.03%		2/28/11		3/01/11		3,118,640		3,118,638
Credit Suisse Securities (USA) LLC		0.18%		2/28/11		3/01/11		14,352,933		14,352,861
Credit Suisse Securities (USA) LLC		0.19%		2/28/11		3/01/11		5,297,197		5,297,169
Total							$	158,301,109	$	158,259,949

See Notes to Financial Statements.
80	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011

Schedule of Investments (continued) BlackRock Income Opportunity Trust, Inc. (BNA)

• Foreign currency exchange contracts as of February 28, 2011 were as follows:

Currency Purchased		Currency Sold		Counterparty	Settlement Date	Unrealized Appreciation (Depreciation)
INR	82,506,550	USD	1,805,000	Goldman Sachs Bank USA	3/01/11	$	17,745
INR	249,144,150	USD	5,478,654	Morgan Stanley & Co., Inc.	3/01/11		25,469
USD	5,427,731	INR	249,144,150	Morgan Stanley & Co., Inc.	3/01/11		(76,392	)
USD	1,818,527	INR	82,506,550	Goldman Sachs Bank USA	3/01/11		(4,218	)
EUR	4,335,000	USD	5,829,200	BNP Paribas SA	3/03/11		152,808
EUR	2,405,000	USD	3,189,025	Citibank NA	3/03/11		129,714
EUR	2,030,000	USD	2,669,912	Royal Bank of Scotland	3/03/11		131,350
EUR	1,330,000	USD	1,780,954	UBS AG	3/03/11		54,355
USD	1,773,131	EUR	1,350,000	BNP Paribas SA	3/03/11		(89,778	)
USD	4,430,235	EUR	3,350,000	Citibank NA	3/03/11		(192,539	)
USD	3,574,851	EUR	2,695,000	Deutsche Bank AG	3/03/11		(144,068	)
USD	3,572,683	EUR	2,705,000	Goldman Sachs Bank USA	3/03/11		(160,035	)
EUR	840,000	USD	1,132,236	Citibank NA	3/23/11		26,617
USD	1,084,509	EUR	840,000	UBS AG	3/23/11		(74,344	)
USD	832,260	GBP	533,500	Citibank NA	4/14/11		(34,704	)
USD	429,150	GBP	267,000	Deutsche Bank AG	4/14/11		(4,739	)
USD	450,577	GBP	279,500	UBS AG	4/14/11		(3,624	)
USD	123,963	GBP	77,000	Royal Bank of Scotland	4/14/11		(1,164	)
USD	3,020,964	EUR	2,207,500	Citibank NA	4/27/11		(23,201	)
EUR	1,025,000	USD	1,404,948	Citibank NA	5/06/11		8,368
USD	1,381,434	EUR	1,025,000	UBS AG	5/06/11		(31,881	)
Total						$	(294,261	)

• Financial futures contracts purchased as of February 28, 2011 were as follows:

Contracts	Issue		Exchange	Expiration	Notional Value		Unrealized Appreciation (Depreciation)
57		5-Year U.S. Treasury Note	Chicago Board of Trade	March 2011	$	6,707,528	$	11,348
1		Euro-Bund	Chicago Mercantile	March 2011	$	172,240		(961	)
30		Euro-Dollar	Chicago Mercantile	March 2011	$	7,463,033		13,342
57		2-Year U.S. Treasury Bond	Chicago Board of Trade	June 2011	$	12,420,520		22,401
307		30-Year U.S. Treasury Bond	Chicago Board of Trade	June 2011	$	36,818,338		127,194
Total							$	173,324

• Financial futures contracts sold as of February 28, 2011 were as follows:

Contracts	Issue	Exchange	Expiration Date		Notional Value		Unrealized Depreciation
45	2-Year U.S. Treasury Bond	Chicago Board of Trade		March 2011	$	9,853,971	$	(326	)
414	10-Year U.S. Treasury Bond	Chicago Board of Trade		March 2011	$	49,464,855		(357,458	)
29	30-Year Ultra U.S. Treasury Bond	Eurex		March 2011	$	3,512,119		(114,693	)
406	5-Year U.S. Treasury Bond	Chicago Board of Trade		June 2011	$	47,236,246		(240,379	)
102	10-Year U.S. Treasury Note	Chicago Board of Trade		June 2011	$	12,004,231		(138,550	)
60	Euro-Dollar	Chicago Mercantile		December 2011	$	14,836,350		(72,150	)
Total							$	(923,556	)

• Credit default swaps on single-name issues — buy protection outstanding as of February 28, 2011 were as follows:

Issuer	Pay Fixed Rate			Counterparty		Expiration		Notional Amount (000)		Unrealized Appreciation (Depreciation)
Radian Group, Inc.		5.00	%		Citibank NA		3/20/13	$	1,400	$	(77,694	)
Radian Group, Inc.		5.00	%		Citibank NA		6/20/15	$	1,400		(67,048	)
MGIC		5.00	%		Citibank NA		12/20/15	$	840		(41,442	)
Investment Corp.
Spain		1.00	%		Citibank NA		3/20/16	$	936		(2,742	)
(Kingdom of)
Spain		1.00	%		JPMorgan		3/20/16	$	4,682		(6,637	)
(Kingdom of)					Chase Bank NA
The PMI		5.00	%		Citibank NA		9/20/16	$	1,400		18,962
Group, Inc.
The New York		1.00	%		Barclays Bank Plc		12/20/16	$	1,800		(34,752	)
Times Co.
Total										$	(211,353	)

• Credit default swaps on traded indexes — buy protection outstanding as of February 28, 2011 were as follows:

Index	Pay Fixed Rate			Counterparty		Expiration		Notional Amount (000)		Unrealized Depreciation
Dow Jones		5.00	%		Morgan		12/20/15	$	990	$	(1,721	)
CDX Emerging					Stanley Capital
Markets Series 14					Services, Inc.
Dow Jones CDX		5.00	%		Credit Suisse		12/20/15	$	5,000		(35,389	)
North America					International
High Yield
Index Series 15
Total										$	(37,110	)

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	81

Schedule of Investments (continued) BlackRock Income Opportunity Trust, Inc. (BNA)

• Interest rate swaps outstanding as of February 28, 2011 were as follows:

Fixed Rate	Floating Rate	Counterparty	Expiration Date	Notional Amount (000)		Unrealized Appreciation (Depreciation)
0.63% (a)	3-month LIBOR	Credit Suisse International	11/26/12	$	23,200	$	42,926
0.96% (a)	3-month LIBOR	Deutsche Bank AG	2/08/13	$	7,600		(16,877	)
0.92% (b)	3-month LIBOR	Credit Suisse International	2/28/13	$	3,800		3,398
0.91% (b)	3-month LIBOR	Deutsche Bank AG	2/28/13	$	6,100		3,642
1.32% (b)	3-month LIBOR	Morgan Stanley Capital Services, Inc.	10/22/15	$	1,500		(59,070	)
1.35% (b)	3-month LIBOR	Credit Suisse International	10/25/15	$	1,600		(61,140	)
1.39% (b)	3-month LIBOR	Deutsche Bank AG	10/27/15	$	1,900		(69,978	)
3.73% (b)	3-month LIBOR	Credit Suisse International	2/15/21	$	700		12,597
3.74% (b)	3-month LIBOR	Deutsche Bank AG	2/15/21	$	200		3,772
3.77% (b)	3-month LIBOR	Morgan Stanley Capital Services, Inc.	2/15/21	$	1,300		27,748
3.67% (b)	3-month LIBOR	Credit Suisse International	2/22/21	$	3,100		37,873
3.57% (b)	3-month LIBOR	Citibank NA	2/25/21	$	300		1,233
4.47% (a)	3-month LIBOR	Barclays Bank Plc	2/15/41	$	1,400		(49,853	)
Total						$	(123,729	)

(a)	Pays fixed interest rate and receives floating rate.
(b)	Pays floating interest rate and receives fixed rate.

•	Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivatives. These inputs are summarized in three broad levels for financial statement purposes as follows:
	•	Level 1 — price quotations in active markets/exchanges for identical assets and liabilities
	•	Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
	•	Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments and derivatives)
	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 Trust’s policy regarding valuation of investments and derivatives 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 February 28, 2011 in determining the fair valuation of the Trust’s investments and derivatives:

Valuation Inputs	Level 1		Level 2			Level 3		Total
Assets:
Investments in Securities:
Long-Term Investments:
Asset-Backed Securities		—	$	15,965,455		$	4,275,491	$	20,240,946
Common Stocks		—		532			—		532
Corporate Bonds		—		280,784,580			—		280,784,580
Foreign Agency Obligations		—		3,260,874			—		3,260,874
Non-Agency Mortgage-Backed Securities		—		78,021,060			1,583,182		79,604,242
Other Interests		—		—			191		191
Preferred Securities	$	202,906		3,051,662			—		3,254,568
Taxable Municipal Bonds		—		11,774,266			—		11,774,266
U.S. Government Sponsored Agency Securities		—		226,901,225			1,456,080		228,357,305
U.S. Treasury Obligations		—		94,261,261			—		94,261,261
Warrants		—		—			1		1
Short-Term Securities		6,527,500		—			—		6,527,500
Liabilities:
Investments in Securities:
Long-Term Investments:
TBA Sale Commitments		—		(183,215,295	)		—		(183,215,295	)
Total	$	6,730,406	$	530,805,620		$	7,314,945	$	544,850,971

See Notes to Financial Statements.
82	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011

Schedule of Investments (concluded) BlackRock Income Opportunity Trust, Inc. (BNA)

	Derivative Financial Instruments1
Valuation Inputs	Level 1			Level 2			Level 3	Total
Assets:
Credit contracts		—		$	18,962		—	$	18,962
Foreign currency exchange contracts		—			677,897		—		677,897
Interest rate contracts	$	469,878			7,048,066		—		7,517,944
Liabilities:
Credit contracts		—			(267,425	)	—		(267,425	)
Foreign currency exchange contracts		—			(840,687	)	—		(840,687	)
Interest rate contracts		(1,119,861	)		(8,968,624	)	—		(10,088,485	)
Total	$	(649,983	)	$	(2,331,811	)	—	$	(2,981,794	)

¹ Derivative financial instruments are swaps, financial futures contracts, foreign currency exchange contracts and options. Swaps, financial futures contracts and foreign currency exchange contracts are valued at the unrealized appreciation/depreciation on the instrument and options are shown at value.

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

	Asset-Backed Securities			Common Stocks			Corporate Bonds			Non-Agency Mortgage-Backed Securities			Other Interests			Preferred Securities			U.S. Government Sponsored Agency Securities			Warrants		Total
Assets:
Balance, as of August 31, 2010	$	5,145,849		$	13,235		$	1,100		$	2,331,908		$	381		$	65,455		$	1,499,795			—	$	9,057,723
Accrued discounts/ premiums		(37,773	)		—			—			(5,361	)		—			—			(2,757	)		—		(45,891	)
Net realized Gain (loss)		(37,408	)		(339,688	)		—			34,483			—			130,416			(1,133	)		—		(213,330	)
Net change in appreciation/depreciation2		564,997			363,361			37,671			(141,112	)		(190	)		(13,289	)		(79,036	)	$	1		732,403
Purchases		1,781,342			—			—			1,582,889			—			—			—			—		3,364,231
Sales		—			(36,908	)		—			(1,505,280	)		—			(182,582	)		39,211			—		(1,685,559	)
Transfers in3		—			—			—			—			—			—			—			—		—
Transfers out3		(3,141,516	)		—			(38,771	)		(714,345	)		—			—			—			—		(3,894,632	)
Balance, as of February 28, 2011	$	4,275,491			—			—		$	1,583,182		$	191			—		$	1,456,080		$	1	$	7,314,945

2	Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations. The change in unrealized appreciation/depreciation on securities still held at February 28, 2011 was $(717,307).
3	The Trust’s policy is to recognize transfers in and transfers out as of the end of the period of the event or the change in circumstances that caused the transfer.

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	83

Schedule of Investments February 28, 2011 (Unaudited) BlackRock Income Trust, Inc. (BKT)
(Percentages shown are based on Net Assets)

Asset-Backed Securities	Par (000)			Value
First Franklin Mortgage Loan Asset-Backed Certificates, Series 2005-FF2, Class M2, 0.70%, 3/25/35 (a)	$	5,890		$	5,373,164
Freddie Mac Mortgage-Backed Securities, Series T-11, Class A9, 2.37%, 1/25/28 (a)		2,549			2,500,361
GSAA Home Equity Trust, Series 2005-1, Class AF2, 4.32%, 11/25/34 (a)		639			642,076
Securitized Asset-Backed Receivables LLC Trust, Series 2005-OP2, Class M1, 0.69%, 10/25/35 (a)		1,875			1,326,437
Small Business Administration Participation Certificates:
Series 1996-20E, Class 1, 7.60%, 5/01/16		236			251,999
Series 1996-20G, Class 1, 7.70%, 7/01/16		223			245,450
Series 1996-20H, Class 1, 7.25%, 8/01/16		316			342,938
Series 1996-20K, Class 1, 6.95%, 11/01/16		586			626,391
Series 1997-20C, Class 1, 7.15%, 3/01/17		242			263,621
					11,572,437
Interest Only — 0.2%
Small Business Administration, Series 1, 1.00%, 4/01/15		2,056			20,561
Sterling Bank Trust, Series 2004-2, Class Note, 2.08%, 3/30/30 (b)		4,882			314,372
Sterling Coofs Trust, Series 1, 2.36%, 4/15/29		9			637,987
					972,920
Total Asset-Backed Securities — 2.5%					12,545,357
Non-Agency Mortgage-Backed Securities
Collateralized Mortgage Obligations — 2.7%
Collateralized Mortgage Obligation Trust, Series 40, Class R, 580.50%, 4/01/18		—	(c)		143
Countrywide Alternative Loan Trust, Series 2005-28CB, Class 1A5, 5.50%, 8/25/35		1,289			1,235,499
Deutsche ALT-A Securities, Inc. Alternate Loan Trust, Series 2006-AR5, Class 22A, 5.50%, 10/25/21		1,240			1,108,172
Homebanc Mortgage Trust, Series 2005-4, Class A1, 0.53%, 10/25/35 (a)		3,297			2,535,668
JPMorgan Mortgage Trust, Series 2006-A7, Class 2A2, 5.71%, 1/25/37 (a)		454			346,269
Kidder Peabody Acceptance Corp., Series 1993-1, Class A6, 16.14%, 8/25/23 (a)		54			59,512
Residential Funding Securities LLC, Series 2003-RM2, Class AI5, 8.50%, 5/25/33		3,835			4,166,443
Structured Adjustable Rate Mortgage Loan Trust, Series 2004-11, Class A, 2.66%, 8/25/34 (a)		1,410			1,318,415
WaMu Mortgage Pass-Through Certificates, Series 2006-AR1, Class 2A1C, 1.40%, 1/25/46 (a)		5,330			2,702,706
					13,472,827
Commercial Mortgage-Backed Securities — 3.8%
Credit Suisse Mortgage Capital Certificates:
Series 2006-C5, Class A2, 5.25%, 12/15/39 (d)		13,093			13,290,170
Series 2007-C2, Class A3, 5.54%, 1/15/49 (a)		2,420			2,541,785
First Union-Lehman Brothers Commercial Mortgage, Series 1997-C2, Class D, 7.12%, 11/18/29		2,540			2,707,685
					18,539,640

Non-Agency Mortgage-Backed Securities	Par (000)			Value
Interest Only Collateralized Mortgage Obligations — 1.2%
Bank of America Mortgage Securities, Inc., Series 2003-3, Class 1AIO, 0.29%, 5/25/18 (a)	$	100,144		$	829,489
CitiMortgage Alternative Loan Trust, Series 2007-A5, Class 1A7, 6.00%, 5/25/37		1,029			110,239
Collateralized Mortgage Obligation Trust, Series 42, Class R, 6,000.00%, 10/01/14		—	(c)		484
First Boston Mortgage Securities Corp., Series C, Class I-O, 10.97%, 4/25/17		28			4,236
GSMPS Mortgage Loan Trust, Series 1998-5, Class IO, 0.97%, 6/19/27 (a)(b)		5,140			134,908
IndyMac INDX Mortgage Loan Trust, Series 2006-AR33, Class 4AX, 0.17%, 1/25/37		113,207			566,033
MASTR Adjustable Rate Mortgages Trust, Series 2004-3, Class 3AX, 0.98%, 4/25/34		13,744			154,615
MASTR Alternative Loans Trust, Series 2003-9, Class 15X2, 6.00%, 1/25/19		674			96,057
Morgan Stanley Mortgage Loan Trust, Series 2004-3, Class 1AX, 5.00%, 5/25/19		736			78,866
Sequoia Mortgage Trust, Series 2005-2, Class XA, 1.00%, 3/20/35 (a)		40,157			652,556
Structured Adjustable Rate Mortgage Loan Trust:
Series 2005-18, Class 7AX, 5.50%, 9/25/35 (a)		129			15,013
Series 2005-20, Class 3AX, 5.50%, 10/25/35		1,764			202,820
Series 2006-7, Class 3AS, 2.37%, 8/25/36 (a)		29,758			3,124,639
Vendee Mortgage Trust, Series 1999-2, Class 1IO, 0.05%, 5/15/29 (a)		59,501			105,097
					6,075,052
Interest Only Commercial Mortgage-Backed Securities — 0.0%
CS First Boston Mortgage Securities Corp., Series 1997-C1, Class AX, 1.67%, 6/20/29 (a)(b)		3,045			101,718
Morgan Stanley Capital I, Series 1997-HF1, Class X, 3.44%, 7/15/29 (a)(b)		22			8
					101,726
Principal Only Collateralized Mortgage Obligations — 0.8%
Countrywide Home Loan Mortgage Pass-Through Trust:
Series 2003-26, Class PO, 8/25/33		2,121			1,679,600
Series 2003-J4, Class PO, 6/25/33		371			278,089
Series 2003-J5, Class PO, 7/25/33		645			495,883
Series 2003-J8, Class PO, 9/25/23		475			387,586
Drexel Burnham Lambert CMO Trust, Class 1:
Series K, 9/23/17		11			11,119
Series V, 9/01/18		55			54,947
MASTR Asset Securitization Trust, Series 2004-3, Class 4A15, 3/25/34		104			93,618
Residential Asset Securitization Trust, Series 2005-A15, Class 1A8, 2/25/36		946			612,166
Structured Mortgage Asset Residential Trust, Series 1993-3C, Class CX, 4/25/24		8			5,395
Washington Mutual Alternative Mortgage Pass-Through Certificates, Series 2005-9, Class CP, 11/25/35		642			423,926
					4,042,329
Total Non-Agency Mortgage-Backed Securities — 8.5%					42,231,574

See Notes to Financial Statements.
84	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011

Schedule of Investments (continued) BlackRock Income Trust, Inc. (BKT)
(Percentages shown are based on Net Assets)

U.S. Government Sponsored Agency Securities	Par (000)			Value
Agency Obligations — 2.2%
Federal Housing Administration, General Motors Acceptance Corp. Projects, Series 56, 7.43%, 11/01/22	$	225		$	225,375
Federal Housing Administration, Merrill Projects, Series 54, 7.43%, 5/15/23		2			2,048
Federal Housing Administration, Reilly Project, Series 41, 8.28%, 3/01/20		599			598,822
Federal Housing Administration, USGI Projects:
Series 87, 7.43%, 12/01/22		68			68,113
Series 99, 7.43%, 6/01/21		4,564			4,563,634
Series 99, 7.43%, 10/01/23		42			42,397
Series 99, 7.43%, 10/01/23		125			125,265
Resolution Funding Corp., 9.89%, 4/15/30 (e)		13,000			5,216,705
					10,842,359
Collateralized Mortgage Obligations — 13.2%
Fannie Mae Mortgage-Backed Securities:
Series 1991-38, Class F, 8.33%, 4/25/21 (a)		3			2,665
Series 1991-38, Class SA, 10.19%, 4/25/21 (a)		3			2,693
Series 1991-46, Class S, 1,400.00%, 5/25/21 (a)		—	(c)		6,051
Series 1991-87, Class S, 25.94%, 8/25/21 (a)		62			91,637
Series 1993-247, Class SN, 10.00%, 12/25/23 (a)		462			589,452
Series 2003-32, Class VT, 6.00%, 9/25/15		4,479			4,607,060
Series 2003-135, Class PB, 6.00%, 1/25/34		12,264			13,346,375
Series 2004-29, Class HC, 7.50%, 7/25/30		686			724,988
Series 2004-31, Class ZG, 7.50%, 5/25/34		3,036			3,524,826
Series 2005-68, Class PC, 5.50%, 7/25/35		997			1,078,893
Series 2005-73, Class DS, 16.87%, 8/25/35 (a)		3,386			4,235,625
Series 2006-2, Class KP, 0.00%, 2/25/35 (a)		263			244,606
Series G-7, Class S, 116.20%, 3/25/21 (a)		—	(c)		3,820
Series G-17, Class S, 580.11%, 6/25/21 (a)		—	(c)		5,527
Series G-33, Class PV, 1,078.42%, 10/25/21		—	(c)		6,910
Series G-49, Class S, 5.55%, 12/25/21 (a)		—	(c)		2,382
Freddie Mac Mortgage-Backed Securities:
Series 19, Class F, 8.50%, 3/15/20		101			109,672
Series 19, Class R, 9,757.35%, 3/15/20 (a)		—	(c)		1,591
Series 40, Class K, 6.50%, 8/17/24		393			444,304
Series 75, Class R, 9.50%, 1/15/21		—	(c)		3
Series 75, Class RS, 22.67%, 1/15/21 (a)		—	(c)		3
Series 173, Class R, 9.00%, 11/15/21		—	(c)		15
Series 173, Class RS, 9.19%, 11/15/21 (a)		—	(c)		15
Series 192, Class U, 1.01%, 2/15/22 (a)		—	(c)		68
Series 1057, Class J, 1,008.00%, 3/15/21		—	(c)		2,497
Series 1160, Class F, 38.83%, 10/15/21 (a)		21			40,052
Series 1961, Class H, 6.50%, 5/15/12		2			2,365
Series 2218, Class Z, 8.50%, 3/15/30		5,811			6,595,703
Series 2542, Class UC, 6.00%, 12/15/22		9,589			10,539,926
Series 2758, Class KV, 5.50%, 5/15/23		9,748			10,648,929
Series 2765, Class UA, 4.00%, 3/15/11		75			75,239
Series 2861, Class AX, 10.40%, 9/15/34 (a)		279			310,072
Series 2927, Class BZ, 5.50%, 2/15/35		2,884			3,058,577
Ginnie Mae Mortgage-Backed Securities:
Series 1996-5, Class Z, 7.00%, 5/16/26		609			665,860
Series 2001-33, Class PB, 6.50%, 7/20/31		996			1,040,646
Series 2004-89, Class PE, 6.00%, 10/20/34		3,392			3,702,513
					65,711,560
Federal Deposit Insurance Corporation Guaranteed — 0.8%
Citigroup Funding, Inc., 1.88%, 10/22/12		3,800			3,877,315

U.S. Government Sponsored Agency Securities	Par (000)			Value
Interest Only Collateralized Mortgage Obligations — 2.6%
Fannie Mae Mortgage-Backed Securities:
Series 7, Class 2, 8.50%, 4/01/17	$	5		$	812
Series 89, Class 2, 8.00%, 10/01/18		9			1,244
Series 94, Class 2, 9.50%, 8/01/21		3			751
Series 1990-123, Class M, 1,009.50%, 10/25/20		—	(c)		574
Series 1990-136, Class S, 19.80%, 11/25/20 (a)		14			20,009
Series 1991-38, Class N, 1,008.50%, 4/25/21		—	(c)		3
Series 1991-99, Class L, 930.00%, 8/25/21		—	(c)		2,849
Series 1991-139, Class PT, 648.30%, 10/25/21		—	(c)		2,665
Series 1993-199, Class SB, 2.63%, 10/25/23 (a)		921			125,528
Series 1996-68, Class SC, 2.26%, 1/25/24 (a)		599			46,011
Series 1997-50, Class SI, 1.20%, 4/25/23 (a)		381			13,119
Series 1997-90, Class M, 6.00%, 1/25/28		6,810			1,183,652
Series 1999-W4, Class IO, 6.50%, 12/25/28		402			80,750
Series 2005-43, Class IC, 6.00%, 3/25/34		12			156
Series G-10, Class S, 575.40%, 5/25/21 (a)		—	(c)		11,896
Series G-12, Class S, 608.10%, 5/25/21 (a)		—	(c)		9,272
Series G-50, Class G, 1,158.60%, 12/25/21		—	(c)		67
Series G92-5, Class H, 9.00%, 1/25/22		96			14,280
Series G92-12, Class C, 1,016.80%, 2/25/22		—	(c)		5,786
Series G92-60, Class SB, 1.60%, 10/25/22 (a)		—	(c)		10,469
Freddie Mac Mortgage-Backed Securities:
Series 176, Class M, 1,010.00%, 7/15/21		—	(c)		772
Series 200, Class R, 98,522.80%, 12/15/22 (a)		—	(c)		15
Series 1043, Class H, 0.02%, 2/15/21 (a)		8,904			18,482
Series 1054, Class I, 435.30%, 3/15/21 (a)		—	(c)		1,372
Series 1056, Class KD, 1,084.50%, 3/15/21		—	(c)		1,610
Series 1148, Class E, 592.50%, 10/15/21 (a)		—	(c)		5,567
Series 1914, Class PC, 0.75%, 12/15/11		164			297
Series 2545, Class NI, 5.50%, 3/15/22		308			7,555
Series 2559, Class IO, 5.00%, 8/15/30 (a)		233			2,972
Series 2611, Class QI, 5.50%, 9/15/32		4,389			578,837
Series 2949, Class IO, 5.50%, 3/15/35		761			66,812
Ginnie Mae Mortgage-Backed Securities:
Series 2009-92, Class SC, 5.86%, 10/16/39 (a)		12,075			1,514,632
Series 2010-42 Class BS, 6.22%, 4/20/40 (a)		17,820			3,073,597
Series 2010-47 Class AS, 6.18%, 4/20/40 (a)		24,057			3,696,093
Series 2010-101, Class YT, 2.00%, 8/16/13		64,946			2,379,434
					12,877,940
Mortgage-Backed Securities — 168.2%
Fannie Mae Mortgage-Backed Securities:
4.00%, 3/15/41 (f)		59,500			58,663,311
4.50%, 8/01/25 – 3/15/41 (f)(g)		210,102			215,270,523
5.00%, 1/01/23 – 4/15/41 (f)(g)		177,903			186,670,568
5.50%, 3/15/26 – 4/15/41 (f)(g)		240,255			257,406,300
5.97%, 8/01/16		3,074			3,386,357
6.00%, 10/01/37 – 3/15/41 (f)		42,800			47,095,302
6.50%, 3/15/41 (f)		49,900			55,700,875
7.50%, 2/01/22		—	(d)		126
9.50%, 1/01/19 – 9/01/19		3			3,534
Freddie Mac Mortgage-Backed Securities:
2.61%, 1/01/35 (a)		206			207,786
4.51%, 11/01/17 (a)		19			19,886
4.98%, 10/01/34 (a)		541			565,997
5.00%, 2/01/22 – 4/01/22 (g)		1,367			1,458,464
5.50%, 3/01/26 (f)		7,000			7,538,125
9.00%, 9/01/20 (g)		60			67,720
Ginnie Mae Mortgage-Backed Securities:
7.50%, 8/15/21 – 12/15/23		266			304,696
8.00%, 10/15/22 – 2/15/29		91			107,194
9.00%, 6/15/18 – 9/15/21		9			10,244
					834,477,008

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	85

Schedule of Investments (continued) BlackRock Income Trust, Inc. (BKT)
(Percentages shown are based on Net Assets)

U.S. Government Sponsored Agency Securities	Par (000)		Value
Principal Only Collateralized Mortgage Obligations — 0.5%
Fannie Mae Mortgage-Backed Securities:
Series 203, Class 1, 2/01/23	$	23	$	20,317
Series 228, Class 1, 6/01/23		15		13,594
Series 1991-7, Class J, 2/25/21		20		18,175
Series 1993-51, Class E, 2/25/23		76		67,123
Series 1993-70, Class A, 5/25/23		11		10,093
Series 1999-W4, Class PO, 2/25/29		206		175,319
Series 2002-13, Class PR, 3/25/32		442		387,851
Series G93-2, Class KB, 1/25/23		183		166,019
Freddie Mac Mortgage-Backed Securities:
Series 1418, Class M, 11/15/22		82		73,536
Series 1571, Class G, 8/15/23		471		395,971
Series 1691, Class B, 3/15/24		1,095		969,932
Series 1739, Class B, 2/15/24		54		52,310
Series T-8, Class A10, 11/15/28		148		131,536
				2,481,776
Total U.S. Government Sponsored Agency Securities — 187.5%				930,267,958
U.S. Treasury Obligations
U.S. Treasury Bonds (h):
6.25%, 8/15/23		3,320		4,143,257
4.38%, 5/15/40		36,985		36,256,765
4.25%, 11/15/40 (i)		17,975		17,241,962
4.75%, 2/15/41		4,340		4,525,804
U.S. Treasury Notes:
2.00%, 1/31/16 (h)		7,840		7,802,635
2.63%, 1/31/18		3,500		3,460,898
2.63%, 8/15/20		1,455		1,367,700
2.63%, 11/15/20 (h)		19,598		18,335,911
3.63%, 2/15/21 (h)		8,665		8,817,989
4.50%, 8/15/39 (g)		330		330,928
Total U.S. Treasury Obligations — 20.6%				102,283,849
Total Long-Term Investments (Cost — $1,080,941,190) — 219.1%				1,087,328,738
Short-Term Securities	Shares
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.15% (j)(k)		36,489,702		36,489,702
Total Short-Term Securities (Cost — $36,489,702) — 7.4%				36,489,702
Options Purchased	Contracts
Exchange-Traded Call Options — 0.0%
Ten-Year U.S. Treasury Note, Strike Price USD 120.50, Expires 5/20/11		134		127,719
Exchange-Traded Put Options — 0.0%
Ten-Year U.S. Treasury Note, Strike Price USD 117.50, Expires 3/25/11		97		36,375
Eurodollar 1-Year Mid-Curve Options, Strike Price USD 98.25, Expires 9/16/11		303		200,737
				237,112

Options Purchased	Notional Amount (000)		Value
Over-the-Counter Call Options — 0.2%
Receive a fixed rate of 5.47% and pay a floating rate based on 3-month LIBOR, Expires 5/08/12, Broker Bank of America NA	$	6,200	$	748,803
Over-the-Counter Put Options — 0.0%
Pay a fixed rate of 5.47% and receive a floating rate based on 3-month LIBOR, Expires 5/08/12, Broker Bank of America NA		6,200		61,570
Total Options Purchased (Cost — $895,866) — 0.2%				1,175,204
Total Investments Before TBA Sale Commitments and Options Written (Cost — $1,118,326,758*) — 226.7%				1,124,993,644
			��
TBA Sale Commitments (f)	Par (000)
Fannie Mae Mortgage-Backed Securities:
4.00%, 3/15/41		40,700		(40,127,677	)
4.50%, 8/01/25 – 3/15/41		49,300		(50,759,383	)
5.00%, 1/01/23 – 4/15/41		51,900		(54,306,192	)
5.50%, 3/15/26 – 4/15/41		95,100		(101,607,183	)
6.00%, 10/01/37 – 3/15/41		21,000		(22,817,802	)
Freddie Mac Mortgage-Backed Securities, 5.00%, 2/01/22 – 4/01/22		1,300		(1,379,219	)
Total TBA Sale Commitments (Proceeds — $269,507,715) — (54.6)%				(270,997,456	)
Options Written	Contracts
Exchange-Traded Call Options — 0.0%
Ten-Year U.S. Treasury Note, Citibank NA:
Strike Price USD 121.50, Expires 5/20/11		134		(85,844	)
Strike Price USD 122.50, Expires 5/20/11		134		(54,437	)
				(140,281	)
Exchange-Traded Put Options — 0.0%
Eurodollar 1-Year Mid-Curve Options, Strike Price USD 97.75, Expires 9/16/11		303		(106,050	)

See Notes to Financial Statements.
86	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011

Schedule of Investments (continued)	BlackRock Income Trust, Inc. (BKT)
	(Percentages shown are based on Net Assets)

Options Written	Notional Amount (000)		Value
Over-the-Counter Call Swaptions — (0.2)%
Pay a fixed rate of 3.43% and receive a floating rate based on 3-month LIBOR, Expires 3/24/11, Broker JPMorgan Chase Bank NA	$	7,000	$	(30,884	)
Pay a fixed rate of 5.33% and receive a floating rate based on 3-month LIBOR, Expires 7/17/13, Broker JPMorgan Chase Bank NA		11,100		(748,364	)
				(779,248	)
Over-the-Counter Put Swaptions — (0.1)%
Receive a fixed rate of 3.43% and pay a floating rate based on 3-month LIBOR, Expires 3/24/11, Broker JPMorgan Chase Bank NA		7,000		(115,705	)
Receive a fixed rate of 5.33% and pay a floating rate based on 3-month LIBOR, Expires 7/17/13, Broker JPMorgan Chase Bank NA		11,100		(164,551	)
				(280,256	)
Total Options Written (Premiums Received — $1,634,665) — (0.3)%				(1,305,835	)
Total Investments, Net of TBA Sale Commitments and Options Written — 171.8%				852,690,353
Liabilities in Excess of Other Assets — (71.8)%				(356,568,539	)
Net Assets — 100.0%			$	496,121,814

* The cost and unrealized appreciation (depreciation) of investments as of February 28, 2011, as computed for federal income tax purposes were as follows:

Aggregate cost	$	1,118,609,670
Gross unrealized appreciation	$	26,319,011
Gross unrealized depreciation		(19,935,037	)
Net unrealized appreciation	$	6,383,974

(a)	Variable rate security. Rate shown is as of report date.
(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)	Amount is less than $1,000.
(d)	All or a portion of security has been pledged as collateral in connection with TALF program.
(e)	Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(f)	Represents or includes a TBA transaction. Unsettled TBA transactions as of report date were as follows:

Counterparty	Value			Unrealized Appreciation (Depreciation)
Bank Nationale De Paris	$	1,193,434		$	2,497
Citigroup Global Markets, Inc.	$	30,577,627		$	(31,326	)
Credit Suisse International	$	56,711,706		$	824,722
Deutsche Bank Securities, Inc.	$	(29,199,002	)	$	61,568
Goldman Sachs & Co.	$	104,933,320		$	1,195,414
Greenwich Financial Services	$	8,153,752		$	54,533
JPMorgan Chase Securities, Inc.	$	1,972,970		$	24,024
Morgan Stanley & Co., Inc.	$	15,644,535		$	(44,223	)
Nomura Securities International, Inc.	$	56, 119,420		$	248,553
UBS Securities	$	(19,916,760	)	$	(186,671	)

(g)	All or a portion of security has been pledged as collateral in connection with swaps.
(h)	All or a portion of security has been pledged as collateral in connection with open reverse repurchase agreements.
(i)	All or a portion of security has been pledged as collateral in connection with open financial futures contracts.
(j)	Investments in companies considered to be an affiliate of the Trust during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate	Shares Held at August 31, 2010		Net Activity		Shares Held at February 28, 2011		Income
BlackRock Liquidity Funds, TempFund, Institutional Class		857,657		35,632,045		36,489,702	$	6,976

(k)	Represents the current yield as of report date.
•	Interest rate floors outstanding as of February 28, 2011 were as follows:

	Notional Amount (000)		Value			Unrealized Appreciation (Depreciation)
Pay to broker the difference between 3-month LIBOR and a floor of 4.80%
Broker Goldman Sachs Bank USA Expires 3/19/11	$	50,000	$	(537,050	)	$	16,283
Pay to broker the difference between 3-month LIBOR and a floor of 5.50%
Broker Citibank NA Expires 9/17/11	$	24,000		(917,760	)		(457,760	)
Total			$	(1,454,810	)	$	(441,477	)

• Reverse repurchase agreements outstanding as of February 28, 2011 were as follows:

Counterparty	Interest Rate	Trade Date	Maturity Date	Net Closing Amount		Unrealized Appreciation
Barclays Capital, Inc.	0.30%	10/15/10	Open	$	4,499,581	$	4,494,450
Credit Suisse Securities (USA) LLC	0.24%	11/03/10	Open		8,836,946		8,830,000
Merrill Lynch & Co., Inc.	0.23%	12/08/10	Open		16,887,794		16,878,844
Merrill Lynch & Co., Inc.	0.18%	1/21/11	Open		11,627,267		11,625,000
Credit Suisse Securities (USA) LLC	0.03%	2/28/11	3/01/11		8,816,645		8,816,637
Credit Suisse Securities (USA) LLC	0.18%	2/28/11	3/01/11		18,470,736		18,470,644
Credit Suisse Securities (USA) LLC	0.19%	2/28/11	3/01/11		5,169,503		5,169,475
Deutsche Bank, NA	0.14%	2/28/11	3/01/11		7,830,230		7,830,200
Total				$	82,138,702	$	82,115,250

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	87

Schedule of Investments (continued) BlackRock Income Trust, Inc. (BKT)

• Financial futures contracts purchased as of February 28, 2011 were as follows:

Contracts	Issue	Exchange	Expiration	Notional Value		Unrealized Appreciation (Depreciation)
78	5-Year U.S. Treasury Note	Chicago Mercantile	March 2011	$	9,188,789	$	5,461
132	Euro Dollars	Chicago Mercantile	March 2011	$	32,863,870		32,180
49	Ultra Long U.S. Treasury Bond	Chicago Mercantile	March 2011	$	5,961,742		166,320
116	Euro Dollars	Chicago Mercantile	June 2011	$	28,849,169		44,981
113	Euro Dollars	Chicago Mercantile	September 2011	$	28,061,561		61,314
99	Euro Dollars	Chicago Mercantile	March 2012	$	24,485,285		49,390
121	Euro Dollars	Chicago Mercantile	June 2012	$	29,881,183		(233	)
135	Euro Dollars	Chicago Mercantile	September 2012	$	33,292,096		(77,034	)
64	Euro Dollars	Chicago Mercantile	December 2012	$	15,688,226		4,574
36	Euro Dollars	Chicago Mercantile	March 2013	$	8,808,686		(7,137	)
70	Euro Dollars	Chicago Mercantile	June 2013	$	17,136,768		(69,893	)
64	Euro Dollars	Chicago Mercantile	September 2013	$	15,623,589		(59,588	)
31	Euro Dollars	Chicago Mercantile	December 2013	$	7,519,548		(110	)
Total						$	150,225

• Financial futures contracts sold as of February 28, 2011 were as follows:

Contracts	Issue	Exchange	Expiration	Notional Value		Unrealized Depreciation
354	2-Year U.S. Treasury Note	Chicago Mercantile	March 2011	$	77,445,257	$	(75,212	)
252	5-Year U.S. Treasury Note	Chicago Mercantile	June 2011	$	29,390,006		(78,244	)
105	10-Year U.S. Treasury Note	Chicago Mercantile	March 2011	$	12,604,257		(31,836	)
1,687	10-Year U.S. Treasury Note	Chicago Mercantile	June 2011	$	199,063,721		(1,768,357	)
114	30-Year U.S. Treasury Note	Chicago Mercantile	June 2011	$	13,704,008		(15,179	)
195	Euro Dollars	Chicago Mercantile	December 2011	$	48,260,391		(192,234	)
Total						$	(2,161,062	)

• Interest rate swaps outstanding as of February 28, 2011 were as follows:

Fixed Rate	Floating Rate	Counterparty	Expiration Date	Notional Amount (000)		Unrealized Appreciation (Depreciation)
1.45% (b)	3-month LIBOR	JPMorgan Chase Bank NA	7/29/11	$	20,000	$	(93,669	)
0.83% (b)	3-month LIBOR	Deutsche Bank AG	7/27/12	$	34,800		(127,165	)
4.88% (a)	3-month LIBOR	UBS AG	3/21/15	$	25,000		2,889,495
4.87% (a)	3-month LIBOR	Goldman Sachs Bank USA	1/25/16	$	5,500		662,082
2.81% (a)	3-month LIBOR	Citibank NA	2/06/16	$	20,000		462,757
5.72% (a)	3-month LIBOR	JPMorgan Chase Bank NA	7/14/16	$	5,400		893,072
5.51% (a)	3-month LIBOR	Bank of America NA	8/03/17	$	95,147		15,285,756
5.88% (b)	3-month LIBOR	Deutsche Bank AG	6/25/18	$	31,930		(5,529,070	)
4.55% (b)	3-month LIBOR	Citibank NA	9/26/18	$	41,600		(4,107,683	)
4.31% (b)	3-month LIBOR	Deutsche Bank AG	10/01/18	$	66,000		(5,440,574	)
3.09% (b)	3-month LIBOR	Deutsche Bank AG	3/09/19	$	25,700		213,286
3.17% (a)	3-month LIBOR	Bank of America NA	3/18/19	$	4,700		(15,572	)
2.88% (a)	3-month LIBOR	Deutsche Bank AG	4/01/19	$	39,700		(988,328	)
3.23% (b)	3-month LIBOR	Deutsche Bank AG	5/19/19	$	2,800		3,251
3.90% (b)	3-month LIBOR	Barclays Bank Plc	6/05/19	$	20,000		(969,551	)
3.55% (b)	3-month LIBOR	Deutsche Bank AG	8/18/19	$	15,000		(437,571	)
5.49% (b)	3-month LIBOR	JPMorgan Chase Bank NA	10/28/19	$	1,400		(188,235	)
3.67% (a)	3-month LIBOR	Deutsche Bank AG	12/21/19	$	2,000		50,242
5.67% (b)	3-month LIBOR	Citigroup Global Markets, Inc.	1/06/20	$	12,400		(1,694,036	)
3.88% (a)	3-month LIBOR	Morgan Stanley Capital Services, Inc.	1/07/20	$	7,600		315,549
3.71% (b)	3-month LIBOR	Deutsche Bank AG	2/11/20	$	6,200		(164,854	)
3.73% (a)	3-month LIBOR	Morgan Stanley Capital Services, Inc.	5/05/20	$	28,000		719,472
5.41% (a)	3-month LIBOR	JPMorgan Chase Bank NA	8/15/22	$	9,565		1,576,854
Total						$	3,315,508

(a)	Pays floating interest rate and receives fixed rate.
(b)	Pays fixed interest rate and receives floating rate.

See Notes to Financial Statements.
88	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011

Schedule of Investments (continued) BlackRock Income Trust, Inc. (BKT)

•	For Trust compliance purposes,the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by Trust management. This definition may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.
•	Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivatives. These inputs are summarized in three broad levels for financial statement purposes as follows:
	•	Level 1 — price quotations in active markets/exchanges for identical assets and liabilities
	•	Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
	•	Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments and derivatives)
	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 Trusts policy regarding valuation of investments and derivatives 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 February 28, 2011 in determining the fair valuation of the Trust’s investments and derivatives:

Valuation Inputs	Level 1		Level 2			Level 3		Total
Assets:
Investments in Securities:
Long-Term Investments:
Asset-Backed Securities		—	$	11,572,437		$	972,920	$	12,545,357
Non-Agency Mortgage-Backed Securities		—		37,163,607			5,067,967		42,231,574
U.S. Government Sponsored Agency Securities		—		924,640,662			5,627,296		930,267,958
U.S. Treasury Obligations		—		102,283,849			—		102,283,849
Short-Term Securities	$	36,489,702		—			—		36,489,702
Liabilities:
Investments in Securities:
Long-Term Investments:
TBA Sale Commitments		—		(270,997,456	)		—		(270,997,456	)
TALF Loans		—		(10,940,517	)		—		(10,940,517	)
Total	$	36,489,702	$	793,722,582		$	11,668,183	$	841,880,467

	Derivative Financial Instruments1
Valuation Inputs	Level 1			Level 2			Level 3			Total
Assets:
Interest rate contracts	$	729,051		$	23,882,189			—		$	24,611,240
Liabilities:
Interest rate contracts		(2,621,388	)		(21,733,572	)	$	(537,050	)		(24,892,010	)
Total	$	(1,892,337	)	$	2,148,617		$	(537,050	)	$	(280,770	)

¹ Derivative financial instruments are swaps, financial futures contracts, interest rate floors and options. Swaps and financial futures contracts are shown at the unrealized appreciation/depreciation on the instrument and interest rate floors and options are shown at value.

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	89

Schedule of Investments (concluded) BlackRock Income Trust, Inc. (BKT)

The following tables are a reconciliation of Level 3 other financial instruments for which significant unobservable inputs were used in determining fair value:

	Asset-Backed Securities			Non-Agency Mortgage-Backed Securities			U.S. Government Sponsored Agency Securities			Total
Assets/Liabilities:
Balance, as of August 31, 2010	$	1,261,564		$	8,085,631		$	5,750,715		$	15,097,910
Accrued discounts/premiums		(98,416	)		(327,220	)		244,798			(180,838	)
Net realized gain (loss)		—			(560,914	)		(6,335	)		(567,249	)
Net change in unrealized appreciation/depreciation2		(190,228	)		261,392			(206,640	)		(135,476	)
Purchases		—			—			—			—
Sales		—			(387,308	)		(155,242	)		(542,550	)
Transfers in3		—			—			—			—
Transfers out3		—			(2,003,614	)		—			(2,003,614	)
Balance, as of February 28, 2011	$	972,920		$	5,067,967		$	5,627,296		$	11,668,183

2	Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations. The net change in unrealized appreciation/depreciation on securities still held at February 28, 2011 was $(661,822).
3	The Trust’s policy is to recognize transfers in and transfers out as of the end of the period of the event or the change in circumstances that caused the transfer.

	Interest Rate Contracts
Liabilities:
Balance, as of August 31, 2010	$	(3,446,023	)
Accrued discounts/premiums		—
Realized gain (loss)		(1,876,795	)
Change in unrealized appreciation/depreciation4		1,825,213
Purchases		—
Sales		2,042,795
Transfers in5		—
Transfers out5		917,760
Balance, as of February 28, 2011	$	(537,050	)

4	Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations. The net change in unrealized appreciation/depreciation on securities still held at February 28, 2011 was $1,201,839.
5	The Trust’s policy is to recognize transfers in and transfers out as of the end of the period of the event or the change in circumstances that caused the transfer.

See Notes to Financial Statements.
90	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011

Schedule of Investments February 28, 2011 (Unaudited)	BlackRock Strategic Bond Trust (BHD)
	(Percentages shown are based on Net Assets)

Common Stocks (a)	Shares		Value
Construction Materials — 0.0%
Nortek, Inc.		450	$	20,025
Media — 0.0%
Adelphia Recovery Trust		396,568		2,380
Software — 0.0%
Bankruptcy Management Solutions, Inc.		84		292
Total Common Stocks — 0.0%				22,697
Corporate Bonds		Par  (000)
Airlines — 0.8%
American Airlines, Inc. Series 2001-2, 7.86%, 4/01/13	USD	190		196,175
Continental Airlines, Inc., Series 2010-1-A, 4.75%, 7/12/22		435		431,737
Delta Air Lines, Inc., Series B, 9.75%, 12/17/16		180		194,788
				822,700
Auto Components — 0.7%
Delphi International Holdings Unsecured, 12.00%, 10/06/14		17		18,692
Icahn Enterprises LP, 8.00%, 1/15/18		670		693,450
				712,142
Automobiles — 1.1%
DaimlerChrysler NA Holding Corp., 7.30%, 1/15/12		1,000		1,055,717
Beverages — 0.1%
Crown European Holdings SA, 7.13%, 8/15/18 (b)	EUR	90		132,268
Biotechnology — 0.2%
QHP Pharma, 10.25%, 3/15/15 (b)	USD	184		185,299
Building Products — 1.1%
Building Materials Corp. of America (b):
6.88%, 8/15/18		195		199,875
7.00%, 2/15/20		290		305,588
Momentive Performance Materials, Inc.:
11.50%, 12/01/16		60		65,100
9.00%, 1/15/21 (b)		470		499,962
				1,070,525
Capital Markets — 2.3%
Credit Suisse AG, 5.40%, 1/14/20		480		486,331
E*Trade Financial Corp., Series A, 8/31/19 (c)(d)		100		154,500
The Goldman Sachs Group, Inc.:
6.15%, 4/01/18		25		27,388
7.50%, 2/15/19		125		147,338
5.38%, 3/15/20		225		231,169
6.00%, 6/15/20		250		268,047
KKR Group Finance Co., 6.38%, 9/29/20 (b)		170		175,155
Merrill Lynch & Co., Inc., 6.05%, 5/16/16		325		346,381
Morgan Stanley, 5.50%, 1/26/20		425		430,561
				2,266,870
Chemicals — 2.5%
American Pacific Corp., 9.00%, 2/01/15		180		176,850
Chemtura Corp., 7.88%, 9/01/18 (b)		195		208,162
Georgia Gulf Corp., 9.00%, 1/15/17 (b)		60		66,750
Hexion U.S. Finance Corp.:
8.88%, 2/01/18		275		295,281
9.00%, 11/15/20 (b)		135		143,606
Huntsman International LLC, 8.63%, 3/15/21 (b)		185		205,350
Ineos Finance Plc, 9.00%, 5/15/15 (b)		155		170,112
KRATON Polymers LLC, 6.75%, 3/01/19 (b)		45		45,900

Corporate Bonds	Par  (000)		Value
Chemicals (concluded)
Nalco Co., 6.63%, 1/15/19 (b)	USD	120	$	124,050
Nexeo Solutions LLC, 8.38%, 3/01/18 (b)(e)		65		66,138
OXEA Finance/Cy SCA, 9.50%, 7/15/17 (b)		305		334,737
Omnova Solutions, Inc., 7.88%, 11/01/18 (b)		55		56,444
Polymer Group, Inc., 7.75%, 2/01/19 (b)		51		53,104
PolyOne Corp., 7.38%, 9/15/20		80		84,800
Rhodia SA, 6.88%, 9/15/20 (b)		305		312,244
TPC Group LLC, 8.25%, 10/01/17 (b)		125		132,969
				2,476,497
Commercial Banks — 4.7%
BNP Paribas, 3.60%, 2/23/16		580		583,522
Barclays Bank Plc, 5.14%, 10/14/20		450		427,236
CIT Group, Inc.:
7.00%, 5/01/16		649		654,185
7.00%, 5/01/17		1,516		1,527,285
HSBC Bank USA NA, 4.88%, 8/24/20		550		538,992
Itau Unibanco, 5.75%, 1/22/21 (b)		225		220,113
Lloyds TSB Bank Plc, 5.80%, 1/13/20 (b)		300		298,663
Standard Chartered Plc, 5.50%, 11/18/14 (b)		450		492,261
				4,742,257
Commercial Services & Supplies — 1.7%
ACCO Brands Corp., 10.63%, 3/15/15		195		220,350
AWAS Aviation Capital Ltd., 7.00%, 10/15/16 (b)		226		232,215
Brickman Group Holdings, Inc., 9.13%, 11/01/18 (b)		190		204,250
International Lease Finance Corp., 8.25%, 12/15/20		72		80,100
Mobile Mini, Inc., 7.88%, 12/01/20 (b)		85		90,525
RSC Equipment Rental, Inc. (b):
10.00%, 7/15/17		240		276,000
8.25%, 2/01/21		210		222,075
West Corp. (b):
8.63%, 10/01/18		280		296,800
7.88%, 1/15/19		70		71,837
				1,694,152
Construction Materials — 0.7%
Inversiones CMPC SA, 4.75%, 1/19/18 (b)		175		168,371
Nortek, Inc., 11.00%, 12/01/13		452		481,379
				649,750
Consumer Finance — 2.4%
Credit Acceptance Corp., 9.13%, 2/01/17		260		280,150
Ford Motor Credit Co. LLC:
5.54%, 6/15/11 (f)		1,600		1,615,248
7.80%, 6/01/12		250		266,611
SLM Corp., 6.25%, 1/25/16		275		281,875
				2,443,884
Containers & Packaging — 2.3%
Ardagh Packaging Finance Plc, 7.38%, 10/15/17 (b)	EUR	260		370,448
Ball Corp., 6.75%, 9/15/20	USD	180		188,550
Berry Plastics Corp.:
8.25%, 11/15/15		50		53,563
9.75%, 1/15/21 (b)		335		335,837
Graham Packaging Co. LP, 8.25%, 10/01/18		95		102,363
Graphic Packaging International, Inc.:
9.50%, 6/15/17		250		277,500
7.88%, 10/01/18		145		155,875
Pregis Corp., 12.38%, 10/15/13		265		266,987
Smurfit Kappa Acquisitions (b):
7.25%, 11/15/17	EUR	190		277,922
7.75%, 11/15/19		180		265,778
				2,294,823

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	91

Schedule of Investments (continued)	BlackRock Strategic Bond Trust (BHD)
	(Percentages shown are based on Net Assets)

Corporate Bonds	Par  (000)		Value
Diversified Financial Services — 6.2%
Ally Financial, Inc.:
2.51%, 12/01/14 (f)	USD	110	$	108,092
8.30%, 2/12/15		510		575,662
6.25%, 12/01/17 (b)		40		41,750
8.00%, 3/15/20		60		67,575
7.50%, 9/15/20 (b)		900		984,375
8.00%, 11/01/31		680		778,600
8.00%, 11/01/31		530		607,058
Axcan Intermediate Holdings, Inc., 12.75%, 3/01/16		165		181,913
Bank of America Corp.:
4.50%, 4/01/15		375		391,697
6.50%, 8/01/16		410		460,033
5.75%, 12/01/17		340		363,494
Citigroup, Inc., 8.13%, 7/15/39		55		69,753
JPMorgan Chase & Co., 5.50%, 10/15/40		350		347,449
Reynolds Group DL Escrow, Inc., 7.75%, 10/15/16 (b)		450		479,250
Reynolds Group Issuer, Inc. (b):
9.00%, 4/15/19		375		390,938
6.88%, 2/15/21		140		140,350
8.25%, 2/15/21		170		170,425
				6,158,414
Diversified Telecommunication Services — 5.0%
Broadview Networks Holdings, Inc., 11.38%, 9/01/12		155		154,419
Frontier Communications Corp.:
8.25%, 4/15/17		30		33,150
8.50%, 4/15/20		70		77,700
GCI, Inc., 8.63%, 11/15/19		400		440,000
Qwest Communications International, Inc.:
7.50%, 2/15/14		1,120		1,136,800
Series B, 7.50%, 2/15/14		305		309,575
Qwest Corp., 8.38%, 5/01/16		270		322,313
Telefonica Emisiones SAU, 5.46%, 2/16/21		250		253,789
Verizon New England, Inc., 6.50%, 9/15/11		2,000		2,062,842
Windstream Corp.:
8.13%, 8/01/13		45		49,556
8.63%, 8/01/16		70		74,025
7.88%, 11/01/17		45		48,881
				4,963,050
Electric Utilities — 1.3%
Elwood Energy LLC, 8.16%, 7/05/26		23		22,798
Progress Energy, Inc., 7.75%, 3/01/31		1,000		1,249,676
				1,272,474
Energy Equipment & Services — 1.4%
Bayou Well Services, 0.16%, 12/22/13		225		225,000
Calfrac Holdings LP, 7.50%, 12/01/20 (b)		90		92,250
Compagnie Générale de Géophysique-Veritas:
7.50%, 5/15/15		355		367,425
7.75%, 5/15/17		55		58,163
Exterran Holdings, Inc., 7.25%, 12/01/18 (b)		160		164,000
Frac Tech Services LLC, 7.13%, 11/15/18 (b)		230		238,050
Precision Drilling Corp., 6.63%, 11/15/20 (b)		45		46,463
Thermon Industries, Inc., 9.50%, 5/01/17		195		211,087
				1,402,438
Food & Staples Retailing — 0.4%
BI-LO LLC, 9.25%, 2/15/19 (b)		120		124,800
Rite Aid Corp.:
9.75%, 6/12/16		45		50,681
7.50%, 3/01/17		195		196,219
				371,700

Corporate Bonds	Par  (000)		Value
Food Products — 1.4%
Blue Merger Sub, Inc., 7.63%, 2/15/19 (b)	USD	380	$	383,800
Darling International, Inc., 8.50%, 12/15/18 (b)		90		97,087
Kraft Foods, Inc.:
6.13%, 8/23/18		250		281,001
5.38%, 2/10/20		600		638,260
				1,400,148
Health Care Equipment & Supplies — 1.7%
CareFusion Corp., 6.38%, 8/01/19		195		219,487
DJO Finance LLC, 10.88%, 11/15/14		880		964,700
Fresenius US Finance II, Inc., 9.00%, 7/15/15 (b)		410		469,962
				1,654,149
Health Care Providers & Services — 5.4%
Aviv Healthcare Properties LP, 7.75%, 2/15/19 (b)		100		104,250
ConvaTec Healthcare E SA (b):
7.38%, 12/15/17	EUR	200		287,030
10.50%, 12/15/18	USD	200		213,500
Gentiva Health Services, Inc., 11.50%, 9/01/18		180		202,725
HCA, Inc.:
9.13%, 11/15/14		335		351,331
8.50%, 4/15/19		310		347,200
7.25%, 9/15/20		610		658,037
inVentiv Health, Inc., 10.00%, 8/15/18 (b)		150		154,125
Omnicare, Inc.:
6.13%, 6/01/13		32		32,120
6.88%, 12/15/15		160		165,200
7.75%, 6/01/20		140		149,450
Priory Group Ltd., 7.00%, 2/15/18	GBP	100		166,629
Tenet Healthcare Corp.:
9.00%, 5/01/15	USD	555		610,500
10.00%, 5/01/18		625		734,375
8.88%, 7/01/19		195		221,813
WellPoint, Inc., 5.95%, 12/15/34		1,000		1,029,592
				5,427,877
Health Care Technology — 0.8%
IMS Health, Inc., 12.50%, 3/01/18 (b)		660		773,850
MedAssets, Inc., 8.00%, 11/15/18 (b)		60		61,650
				835,500
Hotels, Restaurants & Leisure — 3.0%
Boyd Gaming Corp., 9.13%, 12/01/18 (b)		225		236,250
Caesars Entertainment Operating Co., Inc., 10.00%, 12/15/18		1,345		1,264,300
CityCenter Holdings LLC, 7.63%, 1/15/16 (b)		120		125,100
Diamond Resorts Corp., 12.00%, 8/15/18 (b)		310		332,475
Harrah’s Operating Co., Inc., 11.25%, 6/01/17		135		153,225
MGM Resorts International, 10.38%, 5/15/14		750		840,000
Palace Entertainment Holding LLC, 8.88%, 4/15/17 (b)		45		45,900
Tropicana Entertainment LLC, Series WI, 9.63%, 12/15/14 (a)(g)		50		5
				2,997,255
Household Durables — 3.7%
Ashton Woods USA LLC, 22.62%, 6/30/15 (b)(h)		314		204,230
Beazer Homes USA, Inc.:
8.13%, 6/15/16		50		50,813
12.00%, 10/15/17		280		325,500
9.13%, 6/15/18		840		867,300
K. Hovnanian Enterprises, Inc., 10.63%, 10/15/16		650		704,437
Ryland Group, Inc., 6.63%, 5/01/20		250		245,000

See Notes to Financial Statements.
92	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011

Schedule of Investments (continued)	BlackRock Strategic Bond Trust (BHD)
	(Percentages shown are based on Net Assets)

Corporate Bonds	Par  (000)		Value
Household Durables (concluded)
Standard Pacific Corp.:
10.75%, 9/15/16	USD	565	$	663,875
8.38%, 5/15/18 (b)		175		185,500
8.38%, 5/15/18		175		185,500
8.38%, 1/15/21 (b)		280		295,400
				3,727,555
IT Services — 2.4%
First Data Corp. (b):
8.88%, 8/15/20		470		514,650
8.25%, 1/15/21		516		513,420
12.63%, 1/15/21		239		250,352
iPayment, Inc., 9.75%, 5/15/14		175		173,469
iPayment Investors LP, 12.75%, 7/15/14 (b)(i)		231		215,089
SunGard Data Systems, Inc.:
10.63%, 5/15/15		295		326,712
7.38%, 11/15/18 (b)		180		185,850
7.63%, 11/15/20 (b)		220		227,150
				2,406,692
Independent Power Producers & Energy Traders — 3.2%
AES Ironwood LLC, 8.86%, 11/30/25		90		89,974
Calpine Construction Finance Co. LP, 8.00%, 6/01/16 (b)		515		558,775
Calpine Corp. (b):
7.50%, 2/15/21		170		173,825
7.88%, 1/15/23		235		241,462
Energy Future Holdings Corp., 10.00%, 1/15/20 (b)		1,005		1,046,559
Energy Future Intermediate Holding Co. LLC, 10.00%, 12/01/20		28		29,228
NRG Energy, Inc., 7.63%, 1/15/18 (b)		975		1,015,219
				3,155,042
Industrial Conglomerates — 1.5%
Sequa Corp. (b):
11.75%, 12/01/15		460		499,100
13.50%, 12/01/15 (i)		854		946,092
				1,445,192
Insurance — 3.1%
American International Group, Inc., 6.40%, 12/15/20		1,130		1,225,265
CNO Financial Group, Inc., 9.00%, 1/15/18 (b)		138		146,970
Lincoln National Corp., 8.75%, 7/01/19		575		724,372
MetLife, Inc., 4.75%, 2/08/21		300		307,636
Metropolitan Life Global Funding I, 5.13%, 6/10/14 (b)		250		271,448
Prudential Financial, Inc., 5.38%, 6/21/20		400		422,324
				3,098,015
Machinery — 1.1%
AGY Holding Corp., 11.00%, 11/15/14		220		195,800
Navistar International Corp.:
3.00%, 10/15/14 (c)		430		600,925
8.25%, 11/01/21		260		287,950
				1,084,675
Marine — 0.6%
Horizon Lines, Inc., 4.25%, 8/15/12 (c)		595		551,863
Media — 15.7%
AMC Entertainment Holdings, Inc., 9.75%, 12/01/20 (b)		180		193,050
Affinion Group, Inc., 7.88%, 12/15/18 (b)		235		225,012
CCH II LLC, 13.50%, 11/30/16		289		350,571
CMP Susquehanna Corp., 3.44%, 5/15/14		40		28,197

Corporate Bonds	Par (000)			Value
Media (concluded)
Cengage Learning Acquisitions, Inc., 10.50%, 1/15/15 (b)	USD	520	$	539,500
Checkout Holding Corp., 10.97%, 11/15/15 (b)(d)		320		206,400
Citadel Broadcasting Corp., 7.75%, 12/15/18 (b)		95		101,888
Clear Channel Communications Inc., 9.00%, 3/01/21 (b)		90		91,463
Clear Channel Worldwide Holdings, Inc.:
9.25%, 12/15/17		384		426,240
Series B, 9.25%, 12/15/17		1,774		1,973,575
DIRECTV Holdings LLC, 6.00%, 8/15/40		175		171,209
DISH DBS Corp., 7.00%, 10/01/13		201		216,075
Gray Television, Inc., 10.50%, 6/29/15		165		175,313
Interactive Data Corp., 10.25%, 8/01/18 (b)		380		425,600
Live Nation Entertainment, Inc., 8.13%, 5/15/18 (b)		165		169,950
NAI Entertainment Holdings LLC, 8.25%, 12/15/17 (b)		220		236,500
NBC Universal, Inc., 4.38%, 4/01/21 (b)		1,025		986,514
The New York Times Co., 6.63%, 12/15/16 (b)		500		511,250
News America, Inc., 6.20%, 12/15/34		1,500		1,546,831
Nielsen Finance LLC, 7.75%, 10/15/18 (b)		765		827,156
ProQuest LLC, 9.00%, 10/15/18 (b)		130		134,550
Rainbow National Services LLC (b):
8.75%, 9/01/12		210		210,787
10.38%, 9/01/14		1,455		1,515,019
Regal Entertainment Group, 9.13%, 8/15/18		85		90,950
TCI Communications, Inc., 7.88%, 2/15/26		1,000		1,215,698
Time Warner Cable, Inc., 5.88%, 11/15/40		410		389,310
UPC Germany GmbH (b):
8.13%, 12/01/17		200		214,500
8.13%, 12/01/17	EUR	210		311,886
9.63%, 12/01/19	USD	190		297,914
UPC Holding BV, 9.88%, 4/15/18 (b)		200		222,000
UPCB Finance II Ltd., 6.38%, 7/01/20	EUR	292		397,897
Unitymedia GmbH, 9.63%, 12/01/19		50		78,398
Univision Communications, Inc., 7.88%, 11/01/20 (b)	USD	170		182,325
Virgin Media Secured Finance Plc:
6.50%, 1/15/18		200		219,000
7.00%, 1/15/18	GBP	100		175,164
Ziggo Bond Co. BV, 8.00%, 5/15/18 (b)	EUR	165		244,199
Ziggo Finance BV, 6.13%, 11/15/17 (b)		295		416,245
				15,718,136
Metals & Mining — 3.3%
Drummond Co., Inc.:
9.00%, 10/15/14 (b)	USD	205		218,837
7.38%, 2/15/16		95		98,325
FMG Resources August 2006 Property Ltd., 7.00%, 11/01/15 (b)		540		560,250
Goldcorp, Inc., 2.00%, 8/01/14 (c)		220		276,925
New World Resources NV:
7.88%, 5/01/18	EUR	65		96,424
7.88%, 5/01/18 (b)		76		112,742
Newmont Mining Corp.:
5.13%, 10/01/19	USD	225		242,204
Series A, 1.25%, 7/15/14 (c)		160		213,400
Novelis, Inc., 8.75%, 12/15/20 (b)		1,275		1,405,687
Steel Dynamics, Inc., 7.38%, 11/01/12		65		69,063
				3,293,857
Multi-Utilities — 0.4%
DTE Energy Co., 7.05%, 6/01/11		250		253,716
Dominion Resources, Inc., 5.70%, 9/17/12		100		106,939
				360,655

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	93

Schedule of Investments (continued) BlackRock Strategic Bond Trust (BHD)
(Percentages shown are based on Net Assets)

Corporate Bonds	Par  (000)		Value
Multiline Retail — 1.3%
Dollar General Corp., 11.88%, 7/15/17 (i)	USD	1,135	$	1,312,344
Oil, Gas & Consumable Fuels — 9.0%
Alpha Natural Resources Inc., 2.38%, 4/15/15 (c)		85		111,031
Anadarko Petroleum Corp., 5.95%, 9/15/16		365		400,278
Arch Coal, Inc., 7.25%, 10/01/20		315		334,687
BP Capital Markets Plc, 3.13%, 10/01/15		650		659,252
Berry Petroleum Co., 8.25%, 11/01/16		100		105,625
Bill Barrett Corp., 9.88%, 7/15/16		20		22,400
Carrizo Oil & Gas, Inc., 8.63%, 10/15/18 (b)		85		90,312
Chaparral Energy, Inc., 8.25%, 9/01/21 (b)		90		91,575
Chesapeake Energy Corp.:
6.63%, 8/15/20		580		609,000
6.13%, 2/15/21		340		346,800
2.25%, 12/15/38 (c)		275		251,625
Coffeyville Resources LLC, 9.00%, 4/01/15 (b)		99		107,910
Concho Resources, Inc., 7.00%, 1/15/21		150		157,125
Consol Energy, Inc., 8.25%, 4/01/20		725		799,312
Continental Resources, Inc., 7.13%, 4/01/21 (b)		135		143,775
Crosstex Energy LP, 8.88%, 2/15/18		65		71,663
Denbury Resources, Inc.:
8.25%, 2/15/20		259		288,137
6.38%, 8/15/21		125		126,250
Energy Transfer Equity LP, 7.50%, 10/15/20		50		54,188
Energy XXI Gulf Coast, Inc. (b):
9.25%, 12/15/17		155		166,625
7.75%, 6/15/19		190		191,900
Enterprise Products Operating LLC, 3.70%, 6/01/15		500		516,052
Hilcorp Energy I LP, 7.63%, 4/15/21 (b)		200		211,000
Linn Energy LLC (b):
8.63%, 4/15/20		115		128,225
7.75%, 2/01/21		220		233,750
MarkWest Energy Partners LP, 6.75%, 11/01/20		95		97,375
Niska Gas Storage US LLC, 8.88%, 3/15/18 (b)		695		757,550
Oasis Petroleum, Inc., 7.25%, 2/01/19 (b)		80		81,200
Peabody Energy Corp., 6.50%, 9/15/20		155		165,850
Petrobras International Finance Co.:
3.88%, 1/27/16		1,100		1,110,688
5.88%, 3/01/18		200		212,841
7.88%, 3/15/19		100		117,856
6.88%, 1/20/40		25		25,883
Range Resources Corp., 8.00%, 5/15/19		50		55,063
SM Energy Co., 6.63%, 2/15/19 (b)		100		101,125
United Refining Co., 10.50%, 2/28/18 (b)(e)		90		89,100
				9,033,028
Paper & Forest Products — 2.8%
Boise Paper Holdings LLC:
9.00%, 11/01/17		125		139,375
8.00%, 4/01/20		65		71,663
Clearwater Paper Corp.:
10.63%, 6/15/16		160		182,800
7.13%, 11/01/18 (b)		215		223,063
Georgia-Pacific LLC, 8.25%, 5/01/16 (b)		355		400,262
International Paper Co.:
7.95%, 6/15/18		220		267,804
7.30%, 11/15/39		5		5,861
NewPage Corp., 11.38%, 12/31/14		1,075		1,072,312
Verso Paper Holdings LLC:
11.50%, 7/01/14		330		363,825
8.75%, 2/01/19 (b)		85		88,825
				2,815,790

Corporate Bonds	Par  (000)		Value
Pharmaceuticals — 1.0%
Grifols, Inc., 8.25%, 2/01/18 (b)	USD	45	$	46,238
Novasep Holding SAS, 9.63%, 12/15/16 (b)	EUR	171		191,137
Valeant Pharmaceuticals International (b):
6.75%, 10/01/17	USD	100		103,500
7.00%, 10/01/20		125		129,219
Wyeth, 6.50%, 2/01/34		500		573,936
				1,044,030
Professional Services — 0.3%
FTI Consulting, Inc., 6.75%, 10/01/20 (b)		265		265,000
Real Estate Investment Trusts (REITs) — 1.0%
HCP, Inc., 5.38%, 2/01/21		225		229,978
iStar Financial, Inc., 5.65%, 9/15/11		500		500,000
Omega Healthcare Investors, Inc., 6.75%, 10/15/22 (b)		140		141,400
The Rouse Co. LP, 6.75%, 11/09/15		145		151,888
				1,023,266
Real Estate Management & Development — 1.2%
CB Richard Ellis Services, Inc., 6.63%, 10/15/20		90		92,813
Realogy Corp. (b):
11.50%, 4/15/17		215		228,975
7.88%, 2/15/19		900		903,375
				1,225,163
Road & Rail — 1.8%
Avis Budget Car Rental LLC:
9.63%, 3/15/18		190		212,325
8.25%, 1/15/19		280		297,150
Canadian National Railway Co., 6.90%, 7/15/28		500		599,603
The Hertz Corp. (b):
7.50%, 10/15/18		335		354,681
6.75%, 4/15/19		160		163,200
7.38%, 1/15/21		180		188,100
				1,815,059
Semiconductors & Semiconductor Equipment — 0.1%
Linear Technology Corp., Series A, 3.00%, 5/01/27 (c)		105		114,319
Software — 0.2%
Oracle Corp., 5.38%, 7/15/40 (b)		210		204,690
Specialty Retail — 1.1%
Asbury Automotive Group, Inc., 8.38%, 11/15/20 (b)		120		126,000
Claire’s Escrow Corp., 8.88%, 3/15/19 (b)(e)		115		115,431
Limited Brands, Inc., 8.50%, 6/15/19		320		366,400
PETCO Animal Supplies, Inc., 9.25%, 12/01/18 (b)		165		178,200
Sonic Automotive, Inc.:
9.00%, 3/15/18		115		123,050
Series B, 8.63%, 8/15/13		205		208,075
				1,117,156
Tobacco — 0.1%
Altria Group, Inc., 9.25%, 8/06/19		105		136,381
Wireless Telecommunication Services — 3.5%
America Movil SAB de CV, 5.00%, 3/30/20		400		412,526
American Tower Corp., 4.50%, 1/15/18		375		371,719
Clearwire Communications LLC, 12.00%, 12/01/15 (b)		70		76,300
Cricket Communications, Inc.:
10.00%, 7/15/15		125		137,813
7.75%, 5/15/16		530		560,475
Crown Castle Towers LLC, 6.11%, 1/15/40 (b)		375		407,263

See Notes to Financial Statements.
94	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011

Schedule of Investments (continued) BlackRock Strategic Bond Trust (BHD)
(Percentages shown are based on Net Assets)

Corporate Bonds	Par  (000)		Value
Wireless Telecommunication Services (concluded)
Digicel Group Ltd. (b):
8.88%, 1/15/15	USD	170	$	176,800
9.13%, 1/15/15		439		457,218
8.25%, 9/01/17		365		381,425
iPCS, Inc., 2.43%, 5/01/13 (f)		20		19,750
SBA Tower Trust, 4.25%, 4/15/40 (b)		325		339,686
Sprint Capital Corp., 6.88%, 11/15/28		170		153,213
Syniverse Holdings, Inc., 9.13%, 1/15/19 (b)		40		43,200
				3,537,388
Total Corporate Bonds — 105.6%				105,515,185
Floating Rate Loan Interests (f)
Building Products — 0.3%
Goodman Global, Inc., Term Loan (Second Lien), 9.00%, 10/13/17		300		309,187
Commercial Services & Supplies — 0.8%
AWAS Finance Luxembourg Sarl, Term Loan B, 7.75%, 6/10/16		165		169,434
Delos Aircraft, Inc., Term Loan 2, 7.00%, 3/17/16		225		226,929
Volume Services America, Inc. (Centerplate), Term Loan B, 10.50% – 10.75%, 8/24/16		359		362,540
				758,903
Construction & Engineering — 0.7%
Safway Services, LLC, Last Out Term Loan, 15.63%, 12/14/17		750		750,000
Consumer Finance — 1.5%
AGFS Funding Co., Term Loan, 7.25%, 4/21/15		1,500		1,513,350
Diversified Consumer Services — 0.5%
Laureate Education, Series A New Term Loan, 7.00%, 8/15/14		495		497,875
Electric Utilities — 0.0%
New Development Holdings LLC, Term Loan, 7.00%, 7/03/17		21		21,534
Food Products — 0.3%
Pierre Foods, Term Loan, 11.25%, 9/29/17		300		307,500
Health Care Providers & Services — 0.7%
Harden Healthcare, Inc.:
Add-on Term Loan, 7.75%, 3/02/15		190		186,200
Tranche A Term Loan, 8.50%, 2/22/15		180		176,444
inVentiv Health, Inc. (FKA Ventive Health, Inc.), Term Loan B, 4.75%, 7/31/16		299		299,806
				662,450
Hotels, Restaurants & Leisure — 0.1%
Harrah’s Operating Co., Inc., Term Loan B-3, 3.30%, 1/28/15		150		139,271
Household Durables — 0.7%
Visant Corp. (FKA Jostens), Term Loan B, 7.00%, 12/20/16		399		402,571
Visant Holding Corp. 5.25% 12/22/16		350		350,000
				752,571

Floating Rate Loan Interests (f)	Par  (000)			Value
IT Services — 0.6%
First Data Corp.:
Initial Tranche B-1 Term Loan, 3.01%, 9/24/14	USD	62		$	58,960
Initial Tranche B-2 Term Loan, 3.01%, 9/24/14		153			145,150
Initial Tranche B-3 Term Loan, 3.01%, 9/24/14		378			357,533
					561,643
Independent Power Producers & Energy Traders — 1.2%
NRG Energy, Inc.:
Credit-Linked Deposit, 2.05%, 2/01/13		—	(j)		31
Letter of Credit, 3.55%, 8/31/15		82			82,774
Term Loan, 2.00% – 2.05%, 2/01/13		21			20,505
Term Loan, 3.55%, 8/31/15		98			98,608
Texas Competitive Electric Holdings Co., LLC (TXU):
Initial Tranche B-1 Term Loan, 3.76% – 3.80%, 10/10/14		982			827,777
Term Loan B2, 3.76% – 3.80%, 10/10/14		236			199,077
					1,228,772
Media — 3.6%
Cengage Learning Acquisitions, Inc. (Thomson Learning), Tranche 1 Incremental Term Loan, 7.50%, 7/03/14		488			489,694
Intelsat Jackson Holdings Ltd., Term Loan B, 5.25%, 3/07/18		2,500			2,516,797
Newsday, LLC, Fixed Rate Term Loan, 10.50%, 8/01/13		550			584,719
					3,591,210
Metals & Mining — 0.1%
Euramax International, Inc., Domestic Term Loan:
10.00%, 6/29/13		65			62,201
14.00%, 6/29/13		62			59,710
					121,911
Oil, Gas & Consumable Fuels — 0.9%
Obsidian Natural Gas Trust, Term Loan, 7.00%, 11/30/15		861			882,663
Real Estate Investment Trusts (REITs) — 0.1%
iStar Financial, Inc., Term Loan (Second Lien), 1.76%, 6/28/11		100			98,625
Real Estate Management & Development — 1.3%
Realogy Corp.:
Initial Term Loan B, 4.56%, 10/10/13		609			584,532
Synthetic Letter of Credit, 0.11% – 4.40%, 10/10/13		72			69,271
Term Loan B, 4.56%, 10/16/16		609			584,397
Term Loan C, 4.51%, 10/16/16		72			69,255
					1,307,455
Specialty Retail — 0.1%
Claire’s Stores, Inc., Term Loan B, 3.01% – 5.00%, 5/29/14		64			61,978
Wireless Telecommunication Services — 0.8%
Vodafone Americas Finance 2, Inc., Initial Loan, 6.88%, 7/30/15		776			803,675
Total Floating Rate Loan Interests — 14.3%					14,370,573
Foreign Agency Obligations
Qatar Government International Bond, 4.00%, 1/20/15 (b)		200			205,000
Republic of Indonesia, 5.88%, 3/13/20 (b)		200			214,250
Total Foreign Agency Obligations — 0.4%					419,250

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	95

Schedule of Investments (continued) BlackRock Strategic Bond Trust (BHD)
(Percentages shown are based on Net Assets)

Other Interests (k)	Beneficial Interest (000)			Value
Auto Components — 1.9%
Delphi Debtor-in-Possession Holding Co. LLP, Class B Membership Interests (a)	USD	—	(j)	$	1,912,225
Health Care Providers & Services — 0.0%
Critical Care Systems International, Inc. (a)		1			95
Media — 0.0%
Adelphia Communications Corp. (a)		400			6,040
Total Other Interests — 1.9%					1,918,360
Preferred Securities
Capital Trusts		Par  (000)
Commercial Banks — 0.9%
Barclays Bank Plc, 8.55% (b)(f)(l)		650			645,125
USB Capital XIII Trust, 6.63%, 12/15/39		225			236,797
					881,922
Consumer Finance — 0.5%
Capital One Capital V, 10.25%, 8/15/39		465			505,106
Total Capital Trusts — 1.4%					1,387,028
Preferred Stocks		Shares
Media — 0.0%
CMP Susquehanna Radio Holdings Corp. (a)(b)		9,328			—
Professional Services — 0.1%
Nielsen Holdings NV, 6.25% (a)(c)		158,300			87,362
Real Estate Investment Trusts (REITs) — 0.1%
MPG Office Trust, Inc., Series A, 7.63% (a)(c)		3,277			60,788
Total Preferred Stocks — 0.2%					148,150
Total Preferred Securities — 1.6%					1,535,178
Taxable Municipal Bonds		Par  (000)
Metropolitan Transportation Authority, RB, Build America Bonds, Series TR, 6.81%, 11/15/40	USD	300			311,478
Total Taxable Municipal Bonds — 0.3%					311,478
U.S. Government Sponsored Agency Securities
Collateralized Mortgage Obligations — 0.4%
Ginnie Mae Mortgage-Backed Securities, Series 2006-68, Class B, 1.00%, 6/16/31 (f)		310			338,029
Total U.S. Government Sponsored Agency Securities — 0.4%					338,029

U.S. Treasury Obligations	Par  (000)		Value
U.S. Treasury Bonds, 4.38%, 5/15/40	USD	250	$	245,077
U.S. Treasury Notes:
3.75%, 11/15/18		475		501,311
2.63%, 8/15/20		1,000		940,000
2.63%, 11/15/20		565		528,628
Total U.S. Treasury Obligations — 2.2%				2,215,016
Warrants (m)		Shares
Media — 0.0%
CMP Susquehanna Radio Holdings Corp. (Expires 3/26/19) (b)		10,660		—
Software — 0.0%
Bankruptcy Management Solutions, Inc. (Expires 9/29/17)		56		1
Total Warrants — 0.0%				1
Total Long-Term Investments (Cost — $119,586,240) — 126.7%				126,645,767
Short-Term Securities
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.15% (n)(o)		1,089,292		1,089,292
Total Short-Term Securities (Cost — $1,089,292) — 1.1%				1,089,292
Options Purchased		Contracts
Over-the-Counter Call Options — 0.0%
Marsico Parent Superholdco LLC, Strike Price USD 942.86, Expires 12/21/19, Broker Goldman Sachs Bank USA		6		—
Total Options Purchased (Cost — $5,867) — 0.0%				—
Total Investments (Cost — $120,681,399*) — 127.8%				127,735,059
Liabilities in Excess of Other Assets — (27.8)%				(27,762,901	)
Net Assets — 100.0%			$	99,972,158

*	The cost and unrealized appreciation (depreciation) of investments as of February 28, 2011, as computed for federal income tax purposes were as follows:
	Aggregate cost	$	120,723,005
	Gross unrealized appreciation	$	7,776,102
	Gross unrealized depreciation		(764,048	)
	Net unrealized appreciation	$	7,012,054

(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)	Convertible security.
(d)	Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.

See Notes to Financial Statements.
96	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011

Schedule of Investments (continued) BlackRock Strategic Bond Trust (BHD)

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

Counterparty	Value		Unrealized Appreciation
Bank of America Securities	$	66,138	$	738
Credit Suisse International	$	204,531	$	2,731

(f)	Variable rate security. Rate shown is as of report date.
(g)	Issuer filed for bankruptcy and/or is in default of interest payments.
(h)	Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown reflects the current yield as of report date.
(i)	Represents a payment-in-kind security which may pay interest/dividends in additional par/shares.
(j)	Amount is less than $1,000.
(k)	Other interests represent beneficial interest in liquidation trusts and other reorganization entities and are non-income producing.
(l)	Security is perpetual in nature and has no stated maturity date.
(m)	Warrants entitle the Trust to purchase a predetermined number of shares of common stock and are non-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date, if any.
(n)	Investments in companies considered to be an affiliate of the Trust during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate	Shares Held at August 31, 2010	Net Activity			Shares Held at February 28, 2011		Income
BlackRock Liquidity Funds, TempFund, Institutional Class	1,132,209		(42,917	)		1,089,292	$	1,601

(o)	Represents the current yield as of report date.
•	Financial futures contracts purchased as of February 28, 2011 were as follows:

Contracts	Issue	Exchange	Expiration		Notional Value		Unrealized Appreciation
18	2-Year U.S. Treasury Note	Chicago Mercantile	June 2011	$	3,923,754	$	5,589
28	5-Year U.S. Treasury Note	Chicago Mercantile	June 2011	$	3,254,834		19,416
5	Ultra Long U.S. Treasury Bond	Chicago Mercantile	June 2011	$	617,938		31
Total						$	25,036

• Financial futures contracts sold as of February 28, 2011 were as follows:

Contracts	Issue		Exchange		Expiration		Notional Value		Unrealized Depreciation
6		30-Year U.S. Treasury Bond		Chicago Mercantile		June 2011	$	721,912	$	(150	)
36		10-Year U.S. Treasury Note		Chicago Mercantile		June 2011	$	4,274,691		(10,997	)
Total									$	(11,147	)

• Foreign currency exchange contracts as of February 28, 2011 were as follows:

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Depreciation
USD	86,175	GBP	53,500	Citibank NA	4/14/11	$	(766	)
USD	85,733	GBP	53,000	Deutsche Bank AG	4/14/11		(395	)
USD	245,815	GBP	153,500	Deutsche Bank Securities	4/14/11		(3,630	)
USD	5,962,554	EUR	4,357,000	Citibank NA	4/27/11		(45,793	)
USD	399,893	EUR	292,000	Royal Bank of Scotland	4/27/11		(2,778	)
Total						$	(53,362	)

• Credit default swaps on single-name issues — buy protection outstanding as of February 28, 2011 were as follows:

Issuer	Pay Fixed Rate		Counterparty	Expiration Date	Notional Amount (000)		Unrealized Depreciation
iStar Financial, Inc.	5.00	%	Morgan Stanley Capital Services, Inc.	9/20/11	$	500	$	(37,441	)
Harrah’s Operating Co., Inc.	5.00	%	Deutsche Bank AG	12/20/15	$	350		(48,829	)
Republic of Hungary	1.00	%	Deutsche Bank AG	12/20/15	$	110		(1,994	)
K. Hovnanian Enterprises, Inc.	5.00	%	JPMorgan Chase Bank NA	12/20/15	$	250		(39,710	)
The New York Times Co.	1.00	%	Barclays Bank Plc	12/20/16	$	500		(9,654	)
Total							$	(137,628	)

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	97

Schedule of Investments (continued) BlackRock Strategic Bond Trust (BHD)

• Credit default swaps on single-name issues — sold protection outstanding as of February 28, 2011 were as follows:

Issuer	Receive Fixed Rate		Counterparty		Expiration	Issuer Credit Rating1	Notional Amount (000)2		Unrealized Appreciation
MetLife, Inc.	5.00	%		Deutsche Bank AG	6/20/15	A–	$	150	$	14,243
MetLife, Inc.	1.00	%		UBS AG	9/20/15	A–	$	175		9,486
M.D.C. Holdings, Inc.	1.00	%		Deutsche Bank AG	12/20/15	BBB–	$	125		1,199
D.R. Horton, Inc.	1.00	%		JPMorgan Chase Bank NA	12/20/15	BB–	$	100		3,077
M.D.C. Holdings, Inc.	1.00	%		JPMorgan Chase Bank NA	12/20/15	BBB–	$	125		677
Realogy Corp.	5.00	%		JPMorgan Chase Bank NA	12/20/15	CC	$	275		15,830
M.D.C. Holdings, Inc.	1.00	%		Morgan Stanley Capital Services, Inc.	12/20/15	BBB–	$	200		913
Chesapeake Energy	5.00	%		Credit Suisse International	3/20/16	BB	$	100		1,875
Chesapeake Energy	5.00	%		Goldman Sachs Bank USA	3/20/16	BB	$	150		1,668
Realogy Corp.	5.00	%		JPMorgan Chase Bank NA	3/20/16	CC	$	50		210
Chesapeake Energy	5.00	%		JPMorgan Chase Bank NA	3/20/16	BB	$	100		1,875
Total									$	51,053

	1	Using S&P’s rating.
	2	The maximum potential amount the Trust may pay should a negative event take place as defined under the terms of agreement.
•	Credit default swaps on traded indexes — buy protection outstanding as of February 28, 2011 were as follows:

Index	Pay Fixed Rate			Counterparty	Expiration	Notional Amount (000)		Unrealized Depreciation
MCDX North America Series 15		1.00	%	Citibank NA	12/20/15	$	500	$	(2,323	)
MCDX North America Series 15		1.00	%	Deutsche Bank AG	12/20/15	$	225		(1,207	)
Total								$	(3,530	)

•	For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by Trust management. This definition may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.
•	Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivatives. These inputs are summarized in three broad levels for financial statement purposes as follows:
	•	Level 1 — price quotations in active markets/exchanges for identical assets and liabilities
	•	Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
	•	Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments and derivatives)
	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 Trust’s policy regarding valuation of investments and derivatives 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 February 28, 2011 in determining the fair valuation of the Trust’s investments and derivatives:

Valuation Inputs		Level 1		Level 2		Level 3			Total
Assets:
Investments in Securities:
Common Stocks	$	22,405	$	292		—		$	22,697
Corporate Bonds		—		105,271,488	$	243,697			105,515,185
Floating Rate Loan Interests		—		11,264,091		3,106,482			14,370,573
Foreign Agency Obligations		—		419,250		—			419,250
Other Interests		—		1,912,225		6,135			1,918,360
Preferred Securities		60,788		1,474,390		—			1,535,178
Taxable Municipal Bonds		—		311,478		—			311,478
U.S. Government Sponsored Agency Securities		—		338,029		—			338,029
U.S. Treasury Obligations		—		2,215,016		—			2,215,016
Warrants		—		—		1			1
Short-Term Securities		1,089,292		—		—			1,089,292
Liabilities:
Unfunded Loan Commitments		—		—		(4,843	)		(4,843	)
Total	$	1,172,485	$	123,206,259	$	3,351,472		$	127,730,216

See Notes to Financial Statements.
98	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011

Schedule of Investments (concluded) BlackRock Strategic Bond Trust (BHD)

	Derivative Financial Instruments1
Valuation Inputs	Level 1			Level 2			Level 3	Total
Assets:
Credit contracts		—		$	51,053		—	$	51,053
Interest rate contracts	$	25,036			—		—		25,036
Liabilities:
Credit contracts		—			(141,158	)	—		(141,158	)
Foreign currency transactions		—			(53,362	)	—		(53,362	)
Interest rate contracts		(11,147	)		—		—		(11,147	)
Total	$	13,889		$	(143,467	)	—	$	(129,578	)

¹ Derivative financial instruments are swaps, financial futures contracts, foreign currency exchange contracts and options. Swaps, financial futures contracts and foreign currency exchange contracts are shown at the unrealized appreciation/ depreciation on the instrument and options are shown at value.

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

	Common Stocks			Corporate Bonds			Floating Rate Loan Interests			Other Interests			Preferred Securities			Warrants		Unfunded Loan Commitments			Total
Assets/Liabilities:
Balance, as of August 31, 2010	$	13,235		$	17,453		$	3,420,874		$	191		$	65,455			—	$	(8,879	)	$	3,508,329
Accrued discounts/premiums		—			1,368			155,723			—			—			—		—			157,091
Net realized gain (loss)		(339,690	)		—			50,342			—			130,416			—		—			(158,932	)
Net change in unrealized appreciation/depreciation2		363,363			28,068			(109,990	)		(96	)		(13,289	)	$	1		4,036			272,093
Purchases		—			225,000			1,211,241			—			—			—		—			1,436,241
Sales		(36,908	)		—			(1,559,730	)		—			(182,582	)		—		—			(1,779,220	)
Transfers in3		—			5			—			6,040			—			—		—			6,045
Transfers out3		—			(28,197	)		(61,978	)		—			—			—		—			(90,175	)
Balance, as of February 28, 2011		—		$	243,697		$	3,106,482		$	6,135			—		$	1	$	(4,843	)	$	3,351,472

2	Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations. The net change in unrealized appreciation/depreciation on securities still held at February 28, 2011 was $272,093.
3	The Trust’s policy is to recognize transfers in and transfers out as of the end of the period of the event or the change in circumstances that caused the transfer.

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	99

Statements of Assets and Liabilities

February 28, 2011 (Unaudited)		BlackRock Core Bond Trust (BHK)		BlackRock Corporate High Yield Fund V, Inc. (HYV)		BlackRock Corporate High Yield Fund VI, Inc. (HYT)		BlackRock High Income Shares (HIS)		BlackRock High Yield Trust (BHY)
Assets
Investments at value — unaffiliated1		$	736,461,488	$	539,227,737	$	551,671,756	$	149,480,312	$	53,751,262
Investments at value — affiliated2			2,222,695		1,708,712		1,225,083		1,388,372		1,590,898
Unrealized appreciation on foreign currency exchange contracts			547,327		67		71		—		—
Unrealized appreciation on swaps			294,515		389,277		456,881		—		12,189
Unrealized appreciation on unfunded loan commitments			—		1,563		4,056		—		—
Cash pledged as collateral for financial futures contracts			1,564,000		770,000		815,000		200,000		—
Cash			—		14,612		—		—		—
Foreign currency at value3			158,783		1,006,975		201,954		6,352		—
Cash pledged as collateral for swaps			—		—		—		—		—
TBA sale commitments receivable			193,476,453		—		—		—		—
Investments sold receivable			91,692,008		7,706,759		7,448,452		5,643,515		907,581
Interest receivable			5,733,710		9,057,249		9,564,595		2,595,463		1,073,591
Swap premiums paid			779,629		1,353,543		1,374,546		—		146,368
Principal paydowns receivable			27,287		467,557		—		—		—
Options written receivable			23,960		—		—		—		—
Dividends receivable — unaffiliated			21,782		89,947		81,983		20,211		—
Swaps receivable			13,836		103,335		111,667		—		3,520
Commitment fees receivable			3,731		27		149		—		—
Dividends receivable — affiliated			1,275		2,634		2,801		60		367
Margin variation receivable			—		—		—		—		—
Prepaid expenses			31,911		118,864		124,771		50,948		17,494
Other assets			46,199		72,210		75,854		10,154		11,640
Total assets			1,033,100,589		562,091,068		573,159,619		159,395,387		57,514,910
Liabilities
TBA sale commitments at value4			194,314,061		—		—		—		—
Reverse repurchase agreements			150,125,157		—		—		—		—
Loan payable			—		134,000,000		127,000,000		28,000,000		10,000,000
Options written at value5			9,110,839		—		—		—		—
Unrealized depreciation on swaps			515,293		862,839		787,924		—		59,528
Interest rate floors at value6			—		—		—		—		—
TALF loans at value7			—		—		—		—		—
Unrealized depreciation on unfunded loan commitments			—		38,321		19,704		1,105		2,182
Unrealized depreciation on foreign currency exchange contracts			833,729		252,933		269,959		36,740		—
Bank overdraft			3,919,419		—		—		—		9,941
Investments purchased payable			308,176,887		8,182,867		6,856,072		3,620,224		570,315
Swap premiums received			367,677		1,032,445		1,080,266		—		50,723
Investment advisory fees payable			217,577		251,829		300,733		90,070		45,533
Swaps payable			185,740		91,625		91,774		—		7,664
Margin variation payable			67,720		57,670		61,320		10,950		—
Interest expense payable			59,669		350,687		235,638		78,811		12,827
Officer’s and Trustees’ fees payable			48,296		63,301		67,073		11,016		10,750
Income dividends payable			46,105		75,247		101,596		35,791		5,817
Other affiliates payable			2,520		2,307		2,388		699		—
Administration fees payable			—		—		—		—		4,345
Other accrued expenses payable			159,899		134,413		252,480		142,760		89,200
Other liabilities			88,786		—		—		—		—
Total liabilities			668,239,374		145,396,484		137,126,927		32,028,166		10,868,825
Net Assets		$	364,861,215	$	416,694,584	$	436,032,692	$	127,367,221	$	46,646,085
1	Investments at cost — unaffiliated	$	720,761,612	$	512,793,951	$	526,146,168	$	142,423,935	$	50,437,559
2	Investments at cost — affiliated	$	2,222,695	$	1,708,712	$	1,225,083	$	1,388,372	$	1,590,898
3	Foreign currency at cost	$	151,439	$	993,155	$	200,256	$	6,211		—
4	Proceeds receivable from TBA sale commitments	$	193,476,453		—		—		—		—
5	Premiums received	$	9,961,055		—		—		—		—
6	Interest rate floors at cost		—		—		—		—		—
7	Proceeds from TALF loans		—		—		—		—		—

See Notes to Financial Statements.
100	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011

		BlackRock Income Opportunity Trust, Inc. (BNA)		BlackRock Income Trust, Inc. (BKT)		BlackRock Strategic Bond Trust (BHD)
Assets
Investments at value — unaffiliated1		$	728,880,707	$	1,088,503,942	$	126,645,767
Investments at value — affiliated2			6,527,500		36,489,702		1,089,292
Unrealized appreciation on foreign currency exchange contracts			546,426		—		—
Unrealized appreciation on swaps			152,151		23,071,816		51,053
Unrealized appreciation on unfunded loan commitments			—		—		—
Cash pledged as collateral for financial futures contracts			238,000		5,310,000		70,000
Cash			6,910,435		—		—
Foreign currency at value3			775,717		—		62,445
Cash pledged as collateral for swaps			—		1,600,000		—
TBA sale commitments receivable			182,488,008		269,507,715		—
Investments sold receivable			149,367,113		430,811,913		1,315,099
Interest receivable			5,852,192		3,682,754		1,955,101
Swap premiums paid			779,629		137,894		329,020
Principal paydowns receivable			4,834		842,718		—
Options written receivable			23,613		32,294		—
Dividends receivable — unaffiliated			—		—		—
Swaps receivable			31,463		2,110,612		9,565
Commitment fees receivable			—		—		—
Dividends receivable — affiliated			260		318		36
Margin variation receivable			—		—		975
Prepaid expenses			32,557		31,403		29,272
Other assets			70,625		86,411		8,064
Total assets			1,082,681,230		1,862,219,492		131,565,689
Liabilities
TBA sale commitments at value4			183,215,295		270,997,456		—
Reverse repurchase agreements			158,259,949		82,115,250		—
Loan payable			—		—		29,000,000
Options written at value5			8,907,050		1,305,835		—
Unrealized depreciation on swaps			524,343		19,756,308		141,158
Interest rate floors at value6			—		1,454,810		—
TALF loans at value7			—		10,940,517		—
Unrealized depreciation on unfunded loan commitments			—		—		4,843
Unrealized depreciation on foreign currency exchange contracts			840,687		—		53,362
Bank overdraft			—		—		90,287
Investments purchased payable			367,169,131		974,287,159		2,004,342
Swap premiums received			300,964		1,119,246		85,300
Investment advisory fees payable			164,598		244,218		73,322
Swaps payable			170,432		3,218,769		20,293
Margin variation payable			98,403		194,443		—
Interest expense payable			41,160		23,452		73,901
Officer’s and Trustees’ fees payable			72,518		88,524		9,924
Income dividends payable			46,103		50,733		8,986
Other affiliates payable			—		—		870
Administration fees payable			27,467		56,604		—
Other accrued expenses payable			462,381		195,370		26,943
Other liabilities			—		48,984		—
Total liabilities			720,300,481		1,366,097,678		31,593,531
Net Assets		$	362,380,749	$	496,121,814	$	99,972,158
1	Investments at cost — unaffiliated	$	715,104,100	$	1,081,837,056	$	119,592,107
2	Investments at cost — affiliated	$	6,527,500	$	36,489,702	$	1,089,292
3	Foreign currency at cost	$	767,943		—	$	61,419
4	Proceeds receivable from TBA sale commitments	$	182,488,008	$	269,507,715		—
5	Premiums received	$	9,476,295	$	1,634,665		—
6	Interest rate floors at cost		—	$	1,013,333		—
7	Proceeds from TALF loans		—	$	10,940,517		—

SEMI-ANNUAL REPORT FEBRUARY 28, 2011 101

Statements of Assets and Liabilities (concluded)

February 28, 2011 (Unaudited)		BlackRock Core Bond Trust (BHK)			BlackRock Corporate High Yield Fund V, Inc. (HYV)			BlackRock Corporate High Yield Fund VI, Inc. (HYT)			BlackRock High Income Shares (HIS)			BlackRock High Yield Trust (BHY)
Net Assets Consist of
Paid-in capital8,9,10		$	378,671,939		$	469,820,161		$	505,109,247		$	184,778,474		$	63,364,045
Cost of shares held in treasury11			—			—			—			—			—
Undistributed (distributions in excess of) net investment income			5,036,646			4,442,265			6,081,735			1,854,358			(50,089	)
Undistributed (accumulated) net realized gain (loss)			(33,562,929	)		(82,815,724	)		(99,618,393	)		(66,199,824	)		(19,933,027	)
Net unrealized appreciation/depreciation			14,715,559			25,247,882			24,460,103			6,934,213			3,265,156
Net Assets		$	364,861,215		$	416,694,584		$	436,032,692		$	127,367,221		$	46,646,085
Net asset value		$	13.51		$	12.65		$	12.35		$	2.33		$	7.26
8	Par value per share	$	0.001		$	0.100		$	0.100			—		$	0.001
9	Shares outstanding		27,023,027			32,944,087			35,294,009			54,620,872			6,427,525
10	Shares authorized		unlimited			200 million			200 million			unlimited			unlimited
11	Shares held in treasury		—			—			—			—			—

See Notes to Financial Statements.
102	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011

		BlackRock Income Opportunity Trust, Inc. (BNA)			BlackRock Income Trust, Inc. (BKT)		BlackRock Strategic Bond Trust (BHD)
Net Assets Consist of
Paid-in capital8,9,10		$	402,924,496		$	478,542,248	$	98,450,652
Cost of shares held in treasury11			(17,377,850	)		—		—
Undistributed (distributions in excess of) net investment income			5,155,609			779,700		902,480
Undistributed (accumulated) net realized gain (loss)			(40,532,415	)		10,430,696		(6,303,827	)
Net unrealized appreciation/depreciation			12,210,909			6,369,170		6,922,853
Net Assets		$	362,380,749		$	496,121,814	$	99,972,158
Net asset value		$	10.52		$	7.76	$	14.16
8	Par value per share	$	0.010		$	0.010	$	0.001
9	Shares outstanding		34,456,370			63,942,535		7,058,401
10	Shares authorized		200 million			200 million		unlimited
11	Shares held in treasury		1,757,400			—		—

SEMI-ANNUAL REPORT FEBRUARY 28, 2011 103

Statements of Operations

Six Months Ended February 28, 2011 (Unaudited)	BlackRock Core Bond Trust (BHK)			BlackRock Corporate High Yield Fund V, Inc. (HYV)			BlackRock Corporate High Yield Fund VI, Inc. (HYT)			BlackRock High Income Shares (HIS)			BlackRock High Yield Trust (BHY)
Investment Income
Interest	$	12,528,136		$	20,071,023		$	21,011,353		$	6,478,697		$	2,194,879
Dividends — unaffiliated		23,840			210,863			74,218			23,044			7,252
Foreign taxes withheld		(49	)		—			—			—			—
Dividends — affiliated		3,268			4,952			4,930			1,787			1,994
Facility and other fees		6,852			16,704			47,810			61,581			8,331
Total income		12,562,047			20,303,542			21,138,311			6,565,109			2,212,456
Expenses
Investment advisory		1,407,559			1,512,573			1,812,223			555,962			281,986
Printing		48,668			26,349			27,693			24,476			9,571
Professional		46,251			84,838			90,515			46,076			35,804
Custodian		34,670			31,851			31,875			13,140			8,022
Accounting services		30,470			35,229			37,665			13,450			5,372
Officer and Trustees		21,650			20,703			24,053			6,693			2,674
Transfer agent		5,911			22,006			23,002			12,687			6,207
Registration		4,667			5,550			5,925			9,096			4,489
Borrowing costs1		—			214,316			212,978			65,561			25,107
Administration		—			—			—			—			26,856
Miscellaneous		65,056			41,743			43,517			27,417			23,752
Total expenses excluding interest expense		1,664,902			1,995,158			2,309,446			774,558			429,840
Interest expense		200,519			661,044			629,408			155,216			56,396
Total expenses		1,865,421			2,656,202			2,938,854			929,774			486,236
Less fees waived by advisor		(381	)		(831	)		(821	)		(664	)		(589	)
Less fees paid indirectly		—			—			—			—			—
Total expenses after fees waived and paid indirectly		1,865,040			2,655,371			2,938,033			929,110			485,647
Net investment income		10,697,007			17,648,171			18,200,278			5,635,999			1,726,809
Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:
Investments		(379,473	)		7,247,673			6,717,461			1,498,824			(1,169,196	)
Financial futures contracts		(4,896,992	)		(1,524,239	)		(1,561,238	)		(260,221	)		—
Swaps		(1,443,336	)		175,892			216,109			—			(31,704	)
Foreign currency transactions		(131,257	)		(1,803,159	)		(1,908,591	)		(260,888	)		—
Options written		766,894			113,750			119,750			—			13,000
Borrowed bonds		(1,514,702	)		—			—			—			—
Interest rate floors		—			—			—			—			—
		(7,598,866	)		4,209,917			3,583,491			977,715			(1,187,900	)
Net change in unrealized appreciation/depreciation on:
Investments		(12,751,165	)		31,755,076			31,620,073			8,027,482			4,858,958
Financial futures contracts		(1,041,525	)		(615,578	)		(651,669	)		(132,386	)		—
Swaps		566,130			(429,508	)		(408,099	)		—			(43,808	)
Foreign currency transactions		38,777			(194,805	)		(207,549	)		(30,495	)		—
Options written		4,274,577			(107,893	)		(113,584	)		—			(12,341	)
Unfunded loan commitments		—			33,265			20,475			921			1,819
Borrowed bonds		(27	)		—			—			—			—
Interest rate floors		—			—			—			—			—
		(8,913,233	)		30,440,557			30,259,647			7,865,522			4,804,628
Total realized and unrealized gain (loss)		(16,512,099	)		34,650,474			33,843,138			8,843,237			3,616,728
Net Increase (Decrease) in Net Assets Resulting from Operations	$	(5,815,092	)	$	52,298,645		$	52,043,416		$	14,479,236		$	5,343,537

¹ See Note 8 of the Notes to the Financial Statements for details of short-term borrowings.

See Notes to Financial Statements.
104	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011

	BlackRock Income Opportunity Trust, Inc. (BNA)			BlackRock Income Trust, Inc. (BKT)			BlackRock Strategic Bond Trust (BHD)
Investment Income
Interest	$	11,873,171		$	13,187,160		$	4,342,116
Dividends — unaffiliated		—			—			1,212
Foreign taxes withheld		249			—			(254	)
Dividends — affiliated		4,288			10,651			1,982
Facility and other fees		911			—			2,619
Total income		11,878,619			13,197,811			4,347,675
Expenses
Investment advisory		1,093,036			1,595,296			439,400
Printing		48,562			63,197			10,130
Professional		50,560			54,266			35,048
Custodian		45,489			47,965			8,023
Accounting services		26,515			35,307			7,666
Officer and Trustees		21,902			28,551			3,994
Transfer agent		9,352			29,400			4,133
Registration		5,499			10,136			3,376
Borrowing costs1		—			—			32,952
Administration		182,173			368,145			—
Miscellaneous		55,184			46,070			22,885
Total expenses excluding interest expense		1,538,272			2,278,333			567,607
Interest expense		175,046			371,133			124,300
Total expenses		1,713,318			2,649,466			691,907
Less fees waived by advisor		(379	)		(2,217	)		(573	)
Less fees paid indirectly		—			(143	)		(109	)
Total expenses after fees waived and paid indirectly		1,712,939			2,647,106			691,225
Net investment income		10,165,680			10,550,705			3,656,450
Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:
Investments		(457,424	)		1,967,409			1,250,789
Financial futures contracts		(6,015,314	)		5,833,761			(100,303	)
Swaps		5,000,663			4,708,781			(73,197	)
Foreign currency transactions		(183,680	)		—			5,877
Options written		720,817			39,284			28,625
Borrowed bonds		(786,567	)		(1,373,383	)		—
Interest rate floors		—			(1,876,795	)		—
		(1,721,505	)		9,299,057			1,111,791
Net change in unrealized appreciation/depreciation on:
Investments		(14,144,504	)		(9,718,690	)		3,837,032
Financial futures contracts		(1,043,699	)		(588,259	)		19,507
Swaps		(4,592,949	)		(2,675,581	)		(107,911	)
Foreign currency transactions		(227,567	)		—			(48,900	)
Options written		4,309,505			856,810			(27,158	)
Unfunded loan commitments		—			—			4,036
Borrowed bonds		(27	)		—			—
Interest rate floors		—			1,825,213			—
		(15,699,241	)		(10,300,507	)		3,676,606
Total realized and unrealized gain (loss)		(17,420,746	)		(1,001,450	)		4,788,397
Net Increase (Decrease) in Net Assets Resulting from Operations	$	(7,255,066	)	$	9,549,255		$	8,444,847

SEMI-ANNUAL REPORT FEBRUARY 28, 2011 105

Statements of Changes in Net Assets

	BlackRock Core Bond Trust (BHK)						BlackRock Corporate High Yield Fund V, Inc. (HYV)
Increase (Decrease) in Net Assets:	Six Months Ended February 28, 2011 (Unaudited)			Year Ended August 31, 2010			Six Months Ended February 28, 2011 (Unaudited)			Year Ended August 31, 2010
Operations
Net investment income	$	10,697,007		$	23,504,592		$	17,648,171		$	34,998,740
Net realized gain (loss)		(7,598,866	)		22,830,017			4,209,917			7,089,947
Net change in unrealized appreciation/depreciation		(8,913,233	)		24,703,783			30,440,557			54,072,650
Net increase (decrease) in net assets resulting from operations		(5,815,092	)		71,038,392			52,298,645			96,161,337
Dividends to Shareholders From
Net investment income		(12,863,258	)		(27,023,027	)		(18,207,308	)		(33,602,969	)
Net Assets
Total increase (decrease) in net assets		(18,678,350	)		44,015,365			34,091,337			62,558,368
Beginning of period		383,539,565			339,524,200			382,603,247			320,044,879
End of period	$	364,861,215		$	383,539,565		$	416,694,584		$	382,603,247
Undistributed net investment income	$	5,036,646		$	7,202,897		$	4,442,265		$	5,001,402

	BlackRock Corporate High Yield Fund VI, Inc. (HYT)						BlackRock High Income Shares (HIS)
Increase (Decrease) in Net Assets:	Six Months Ended February 28, 2011 (Unaudited)			Year Ended August 31, 2010			Six Months Ended February 28, 2011 (Unaudited)			Year Ended August 31, 2010
Operations
Net investment income	$	18,200,278		$	36,935,470		$	5,635,999		$	10,792,615
Net realized gain (loss)		3,583,491			1,901,818			977,715			(276,674	)
Net change in unrealized appreciation/depreciation		30,259,647			57,412,973			7,865,522			17,435,391
Net increase in net assets resulting from operations		52,043,416			96,250,261			14,479,236			27,951,332
Dividends to Shareholders From
Net investment income		(17,770,534	)		(35,992,789	)		(6,753,706	)		(9,230,927	)
Capital Share Transactions
Reinvestment of dividends		—			87,090			—			—
Net Assets
Total increase in net assets		34,272,882			60,344,562			7,725,530			18,720,405
Beginning of period		401,759,810			341,415,248			119,641,691			100,921,286
End of period	$	436,032,692		$	401,759,810		$	127,367,221		$	119,641,691
Undistributed net investment income	$	6,081,735		$	5,651,991		$	1,854,358		$	2,972,065

See Notes to Financial Statements.
106	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011

Statements of Changes in Net Assets (concluded)

	BlackRock High Yield Trust (BHY)						BlackRock Corporate Income Opportunity Trust (BNA)
Increase (Decrease) in Net Assets:	Six Months Ended February 28, 2011 (Unaudited)			Year Ended August 31, 2010			Six Months Ended February 28, 2011 (Unaudited)			Year Ended August 31, 2010
Operations
Net investment income	$	1,726,809		$	3,296,839		$	10,165,680		$	20,499,390
Net realized gain (loss)		(1,187,900	)		(1,522,025	)		(1,721,505	)		21,968,948
Net change in unrealized appreciation/depreciation		4,804,628			7,423,666			(15,699,241	)		20,927,252
Net increase (decrease) in net assets resulting from operations		5,343,537			9,198,480			(7,255,066	)		63,395,590
Dividends and Distributions to Shareholders From
Net investment income		(1,677,584	)		(3,246,508	)		(11,743,661	)		(27,117,163	)
Tax return of capital		—			(108,660	)		—			—
Decrease in net assets resulting from dividends and distributions to shareholders		(1,677,584	)		(3,355,168	)		(11,743,661	)		(27,117,163	)
Net Assets
Total increase (decrease) in net assets		3,665,953			5,843,312			(18,998,727	)		36,278,427
Beginning of period		42,980,132			37,136,820			381,379,476			345,101,049
End of period	$	46,646,085		$	42,980,132		$	362,380,749		$	381,379,476
Undistributed (distributions in excess of) net investment income	$	(50,089	)	$	(99,314	)	$	5,155,609		$	6,733,590

	BlackRock Income Trust, Inc. (BKT)						BlackRock Strategic Bond Trust (BHD)
Increase (Decrease) in Net Assets:	Six Months Ended February 28, 2011 (Unaudited)			Year Ended August 31, 2010			Six Months Ended February 28, 2011 (Unaudited)			Year Ended August 31, 2010
Operations
Net investment income	$	10,550,705		$	12,848,017		$	3,656,450		$	7,157,170
Net realized gain		9,299,057			28,601,188			1,111,791			2,597,390
Net change in unrealized appreciation/depreciation		(10,300,507	)		17,697,571			3,676,606			6,849,508
Net increase in net assets resulting from operations		9,549,255			59,146,776			8,444,847			16,604,068
Dividends and Distributions to Shareholders From
Net investment income		(9,687,294	)		(16,372,760	)		(4,266,860	)		(6,391,382	)
Net realized gain		—			(2,042,690	)		—			—
Decrease in net assets resulting from dividends and distributions to shareholders		(9,687,294	)		(18,415,450	)		(4,266,860	)		(6,391,382	)
Net Assets
Total increase (decrease) in net assets		(138,039	)		40,731,326			4,177,987			10,212,686
Beginning of period		496,259,853			455,528,527			95,794,171			85,581,485
End of period	$	496,121,814		$	496,259,853		$	99,972,158		$	95,794,171
Undistributed (distributions in excess of) net investment income	$	779,700		$	(83,711	)	$	902,480		$	1,512,890

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	107

Statements of Cash Flows

Six Months Ended February 28, 2011 (Unaudited)	BlackRock Core Bond Trust (BHK)			BlackRock Corporate High Yield Fund V, Inc. (HYV)			BlackRock Corporate High Yield Fund VI, Inc. (HYT)			BlackRock High Income Shares (HIS)			BlackRock High Yield Trust (BHY)
Cash Provided by (Used for) Operating Activities
Net increase (decrease) in net assets resulting from operations	$	(5,815,092	)	$	52,298,645		$	52,043,416		$	14,479,236		$	5,343,537
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used for) operating activities:
(Increase) decrease in interest receivable		(322,902	)		(677,522	)		(639,396	)		21,024			(193,799	)
(Increase) decrease in swap receivable		271,267			(29,985	)		(32,317	)		—			(2,970	)
(Increase) decrease in other assets		(3,303	)		171,979			225,916			45,426			22,105
Increase in commitment fees receivable		(3,731	)		(27	)		(149	)		—			—
(Increase) decrease in dividends receivable		(21,782	)		(89,947	)		(81,983	)		(20,271	)		—
(Increase) decrease in margin variation receivable		182,210			—			—			—			—
(Increase) decrease in income receivable — affiliated		(987	)		(2,445	)		(2,519	)		74			(5,348	)
(Increase) decrease in cash pledged as collateral for financial futures contracts		2,093,000			360,000			345,000			40,000			—
Increase (decrease) in investment advisory fees payable		(17,896	)		13,812			11,593			(244	)		149
Increase (decrease) in interest expense and fees payable		(28,616	)		176,364			59,713			34,157			(1,708	)
Increase in other affiliates payable		834			805			832			243			—
Increase in other liabilities		88,786			—			—			—			—
Increase (decrease) in administration fees payable		—			—			—			—			13
Increase (decrease) in other accrued expenses payable		(20,864	)		(15,763	)		105,504			3,715			(764	)
Increase (decrease) in commitment fees payable		(682	)		(2,524	)		(2,737	)		(829	)		(333	)
Increase (decrease) in margin variation payable		67,719			24,070			26,920			3,750			—
Increase (decrease) in swaps payable		48,690			56,325			59,474			—			6,964
Increase in Officer’s and Trustees’ fees payable		3,004			2,468			4,218			710			769
Net periodic and termination payments of swaps		(1,779,994	)		(143,847	)		(179,904	)		—			(113,908	)
Net realized and unrealized gain (loss) on investments		10,245,013			(38,541,407	)		(37,863,737	)		(9,778,723	)		(3,239,450	)
Amortization of premium and accretion of discount on investments		(150,549	)		(925,336	)		(1,061,662	)		(632,902	)		(108,795	)
Paid-in-kind income		—			(523,847	)		(420,401	)		(163,073	)		(34,186	)
Premiums received from options written		6,892,415			—			—			—			—
Proceeds from sales of long-term investments		3,073,359,711			226,712,351			233,123,565			69,399,027			24,342,322
Purchases of long-term investments		(3,051,785,379	)		(262,710,990	)		(266,178,548	)		(70,330,371	)		(26,331,457	)
Net proceeds from sales (purchases) of short-term securities		(1,716,421	)		1,017,212			583,675			644,446			(17,676	)
Premiums paid on closing options written		(3,867,609	)		—			—			—			—
Cash provided by (used for) operating activities		27,716,842			(22,829,609	)		(19,873,527	)		3,745,395			(334,535	)
Cash Provided by (Used for) Financing Activities
Cash receipts from borrowings		630,548,305			148,000,000			149,000,000			43,000,000			11,000,000
Cash payments on borrowings		(649,360,851	)		(106,000,000	)		(111,000,000	)		(40,000,000	)		(9,000,000	)
Cash dividends paid		(12,862,014	)		(18,207,918	)		(17,762,431	)		(6,751,021	)		(1,677,358	)
Increase (decrease) in custodian bank payable		3,919,419			—			(212,807	)		—			9,941
Cash provided by (used for) financing activities		(27,755,141	)		23,792,082			20,024,762			(3,751,021	)		332,583
Cash Impact from Foreign Exchange Fluctuations
Cash impact from foreign exchange fluctuations		(30	)		14,049			1,798			285			—
Cash
Net increase (decrease) in cash		(38,329	)		976,522			153,033			(5,341	)		(1,952	)
Cash and foreign currency at beginning of period		197,112			45,065			48,921			11,693			1,952
Cash and foreign currency at end of period	$	158,783		$	1,021,587		$	201,954		$	6,352			—
Cash Flow Information
Cash paid during the period for interest	$	229,135		$	484,680		$	569,695		$	121,059		$	58,104

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

See Notes to Financial Statements.
108	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011

Six Months Ended February 28, 2011 (Unaudited)	BlackRock Income Opportunity Trust, Inc. (BNA)			BlackRock Strategic Bond Trust (BHD)
Cash Provided by (Used for) Operating Activities
Net increase (decrease) in net assets resulting from operations	$	(7,255,066	)	$	8,444,847
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used for) operating activities:
(Increase) decrease in interest receivable		(592,620	)		(161,129	)
(Increase) decrease in swap receivable		635,515			(6,215	)
(Increase) decrease in other assets		(4,145	)		(537	)
Increase in commitment fees receivable		—			—
(Increase) decrease in dividends receivable		—			—
(Increase) decrease in margin variation receivable		305,240			(975	)
(Increase) decrease in income receivable — affiliated		(260	)		(7	)
(Increase) decrease in cash pledged as collateral for financial futures contracts		(238,000	)		(30,000	)
Increase (decrease) in investment advisory fees payable		(26,004	)		5,639
Increase (decrease) in interest expense and fees payable		(15,786	)		52,923
Increase in other affiliates payable		—			536
Increase in other liabilities		—			—
Increase (decrease) in administration fees payable		(4,307	)		—
Increase (decrease) in other accrued expenses payable		273,043			(72,535	)
Increase (decrease) in commitment fees payable		—			—
Increase (decrease) in margin variation payable		98,403			(949	)
Increase (decrease) in swaps payable		(36,490	)		15,293
Increase in Officer’s and Trustees’ fees payable		3,893			716
Net periodic and termination payments of swaps		(896,122	)		(342,233	)
Net realized and unrealized gain (loss) on investments		10,245,223			(5,064,446	)
Amortization of premium and accretion of discount on investments		152,859			(22,916	)
Paid-in-kind income		—			(28,158	)
Premiums received from options written		6,661,399			—
Proceeds from sales of long-term investments		2,757,021,559			42,950,256
Purchases of long-term investments		(2,737,286,544	)		(58,746,776	)
Net proceeds from sales (purchases) of short-term securities		(6,527,500	)		42,917
Premiums paid on closing options written		(2,874,712	)		—
Cash provided by (used for) operating activities		19,639,578			(12,963,749	)
Cash Provided by (Used for) Financing Activities
Cash receipts from borrowings		573,476,744			40,000,000
Cash payments on borrowings		(572,992,650	)		(23,000,000	)
Cash dividends paid		(11,744,934	)		(4,268,150	)
Increase (decrease) in custodian bank payable		(772,922	)		89,772
Cash provided by (used for) financing activities		(12,033,762	)		12,821,622
Cash Impact from Foreign Exchange Fluctuations
Cash impact from foreign exchange fluctuations		8,245			5,419
Cash
Net increase (decrease) in cash		7,614,061			(136,708	)
Cash and foreign currency at beginning of period		72,091			199,153
Cash and foreign currency at end of period	$	7,686,152		$	62,445
Cash Flow Information
Cash paid during the period for interest	$	190,832		$	71,377

SEMI-ANNUAL REPORT FEBRUARY 28, 2011 109

Financial Highlights BlackRock Core Bond Trust (BHK)

	Six Months Ended February 28, 2011 (Unaudited)									Period November 1, 2007 to August 31, 2008
				Year Ended August 31,									Year Ended October 31,
				2010			2009						2007			2006			2005
Per Share Operating Performance
Net asset value, beginning of period	$	14.19		$	12.56		$	12.81		$	13.63		$	13.82		$	14.27		$	15.22
Net investment income		0.40	1		0.87	1		0.80	1		0.50	1		0.74			0.66			0.78
Net realized and unrealized gain (loss)		(0.60	)		1.76			(0.28	)		(0.69	)		(0.13	)		0.11			(0.37	)
Net increase (decrease) from investment operations		(0.20	)		2.63			0.52			(0.19	)		0.61			0.77			0.41
Dividends and distributions from:
Net investment income		(0.48	)		(1.00	)		(0.77	)		(0.61	)		(0.61	)		(0.93	)		(1.01	)
Net realized gain		—			—			—			—			—			(0.29	)		(0.35	)
Tax return of capital		—			—			—			(0.02	)		(0.19	)		—			—
Total dividends and distributions		(0.48	)		(1.00	)		(0.77	)		(0.63	)		(0.80	)		(1.22	)		(1.36	)
Net asset value, end of period	$	13.51		$	14.19		$	12.56		$	12.81		$	13.63		$	13.82		$	14.27
Market price, end of period	$	12.28		$	13.92		$	11.98		$	11.51		$	12.23		$	12.86		$	13.69
Total Investment Return2
Based on net asset value		(1.21	)%3		22.44	%		5.28	%		(1.00	)%3		5.04	%		6.20	%		3.18	%
Based on market price		(8.46	)%3		25.93	%		11.76	%		(0.87	)%3		1.29	%		3.07	%		7.46	%
Ratios to Average Net Assets
Total expenses		1.02	%4		1.18	%		1.06	%		2.29	%4		1.60	%		1.08	%		1.50	%
Total expenses after fees waived and paid indirectly		1.02	%4		1.18	%		1.06	%		2.29	%4		1.60	%		1.08	%		1.50	%
Total expenses after fees waived and paid indirectly and excluding interest expense		0.91	%4		0.95	%		0.83	%		0.89	%4		0.78	%		0.77	%		0.85	%
Net investment income		5.83	%4		6.62	%		7.09	%		4.55	%4		5.36	%		4.78	%		5.20	%
Supplemental Data
Net assets, end of period (000)	$	364,861		$	383,540		$	339,524		$	346,177		$	368,335		$	373,518		$	385,514
Borrowings outstanding, end of period (000)	$	150,125		$	168,938		$	74,572		$	107,690		$	103,354		$	3,911		$	86,876
Average borrowings outstanding during the period (000)	$	146,121		$	162,760		$	73,467		$	134,784		$	44,786		$	25,340		$	91,130
Portfolio turnover		617	%5		641	%6		315	%7		598	%8		122	%		88	%		220	%
Asset coverage, end of period per $1,000	$	3,430		$	3,270		$	5,553		$	4,215		$	4,564		$	96,502		$	5,438

1	Based on average shares outstanding.
2	Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.
3	Aggregate total investment return.
4	Annualized.
5	Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 428%.
6	Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 534%.
7	Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 184%.
8	Includes TBA transactions. Excluding these transactions, the portfolio turnover would have been 337%.

See Notes to Financial Statements.
110	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011

Financial Highlights BlackRock Corporate High Yield Fund V, Inc. (HYV)

	Six Months Ended February 28, 2011 (Unaudited)
				Year Ended August 31,
				2010			2009			2008			2007			2006
Per Share Operating Performance
Net asset value, beginning of period	$	11.61		$	9.71		$	11.94		$	13.83		$	14.10		$	15.19
Net investment income1		0.54			1.06			1.07			1.18			1.20			1.22
Net realized and unrealized gain (loss)		1.05			1.86			(2.10	)		(1.85	)		(0.33	)		(0.50	)
Net increase (decrease) from investment operations		1.59			2.92			(1.03	)		(0.67	)		0.87			0.72
Dividends and distributions from:
Net investment income		(0.55	)		(1.02	)		(1.20	)		(1.17	)		(1.14	)		(1.25	)
Net realized gain		—			—			—			(0.05	)		—			(0.56	)
Total dividends and distributions		(0.55	)		(1.02	)		(1.20	)		(1.22	)		(1.14	)		(1.81	)
Net asset value, end of period	$	12.65		$	11.61		$	9.71		$	11.94		$	13.83		$	14.10
Market price, end of period	$	11.81		$	11.40		$	9.32		$	10.15		$	12.24		$	12.81
Total Investment Return2
Based on net asset value		14.21	%3		31.40	%		(3.83	)%		(3.99	)%		6.76	%		6.37	%
Based on market price		8.59	%3		34.42	%		8.59	%		(7.78	)%		4.00	%		(2.40	)%
Ratios to Average Net Assets
Total expenses		1.33	%4		1.26	%		1.84	%		2.11	%		3.20	%		2.87	%
Total expenses after fees waived and paid indirectly		1.33	%4		1.26	%		1.84	%		2.11	%		3.20	%		2.87	%
Total expenses after fees waived and paid indirectly and excluding interest expense and fees		1.00	%4		0.99	%		1.16	%		0.97	%		0.99	%		0.98	%
Net investment income		8.85	%4		9.52	%		13.00	%		9.16	%		8.23	%		8.49	%
Supplemental Data
Net assets, end of period (000)	$	416,695		$	382,603		$	320,045		$	393,389		$	455,710		$	464,453
Borrowings outstanding, end of period (000)	$	134,000		$	92,000		$	54,000		$	94,700		$	127,700		$	200,100
Average borrowings outstanding during the period (000)	$	106,315		$	79,427		$	65,403		$	106,140		$	188,373		$	183,484
Portfolio turnover		46	%		90	%		65	%		46	%		51	%		64	%
Asset coverage, end of period per $1,000	$	4,110		$	5,159		$	6,927		$	5,154		$	4,569		$	3,321

1	Based on average shares outstanding.
2	Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.
3	Aggregate total investment return.
4	Annualized.

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	111

Financial Highlights BlackRock Corporate High Yield Fund VI, Inc. (HYT)

	Six Months Ended February 28, 2011 (Unaudited)
				Year Ended August 31,
				2010			2009			2008			2007			2006
Per Share Operating Performance
Net asset value, beginning of period	$	11.38		$	9.68		$	11.89		$	13.81		$	14.12		$	15.08
Net investment income1		0.52			1.05			1.05			1.16			1.18			1.16
Net realized and unrealized gain (loss)		0.95			1.67			(2.07	)		(1.87	)		(0.39	)		(0.49	)
Net increase (decrease) from investment operations		1.47			2.72			(1.02	)		(0.71	)		0.79			0.67
Dividends and distributions from:
Net investment income		(0.50	)		(1.02	)		(1.19	)		(1.21	)		(1.10	)		(1.17	)
Net realized gain		—			—			—			—			—			(0.46	)
Total dividends and distributions		(0.50	)		(1.02	)		(1.19	)		(1.21	)		(1.10	)		(1.63	)
Net asset value, end of period	$	12.35		$	11.38		$	9.68		$	11.89		$	13.81		$	14.12
Market price, end of period	$	11.79		$	11.19		$	9.47		$	10.14		$	12.15		$	12.48
Total Investment Return2
Based on net asset value		13.31	%3		29.26	%		(4.03	)%		(4.30	)%		6.29	%		6.29	%
Based on market price		10.01	%3		29.92	%		10.09	%		(7.24	)%		5.80	%		(1.07	)%
Ratios to Average Net Assets
Total expenses		1.41	%4		1.34	%		2.01	%		2.24	%		3.35	%		2.89	%
Total expenses after fees waived and paid indirectly		1.41	%4		1.34	%		2.01	%		2.24	%		3.35	%		2.89	%
Total expenses after fees waived and paid indirectly and excluding interest expense and fees		1.11	%4		1.09	%		1.28	%		1.10	%		1.12	%		1.11	%
Net investment income		8.72	%4		9.52	%		12.82	%		9.02	%		8.03	%		8.11	%
Supplemental Data
Net assets, end of period (000)	$	436,033		$	401,760		$	341,415		$	419,502		$	487,251		$	498,096
Borrowings outstanding, end of period (000)	$	127,000		$	89,000		$	58,000		$	110,900		$	135,900		$	216,200
Average borrowings outstanding during the period (000)	$	101,188		$	76,356		$	73,784		$	113,996		$	202,705		$	184,070
Portfolio turnover		46	%		85	%		60	%		45	%		51	%		62	%
Asset coverage, end of period per $1,000	$	4,433		$	5,514		$	6,886		$	4,783		$	4,585		$	3,304

1	Based on average shares outstanding.
2	Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.
3	Aggregate total investment return.
4	Annualized.

See Notes to Financial Statements.
112	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011

Financial Highlights BlackRock High Income Shares (HIS)

	Six Months Ended February 28, 2011 (Unaudited)									Period January 1, 2007 to August 31, 2008
				Year Ended August 31,
													Year Ended December 31,
				2010			2009						2007			2006			2005
Per Share Operating Performance
Net asset value, beginning of period	$	2.19		$	1.85		$	2.23		$	2.47		$	2.68		$	2.61		$	2.87
Net investment income		0.10	1		0.20	1		0.19	1		0.15	1		0.24			0.22			0.24
Net realized and unrealized gain (loss)		0.15			0.31			(0.36	)		(0.26	)		(0.21	)		0.08			(0.23	)
Net increase (decrease) from investment operations		0.25			0.51			(0.17	)		(0.11	)		0.03			0.30			0.01
Dividends from net investment income		(0.11	)		(0.17	)		(0.21	)		(0.13	)		(0.24	)		(0.23	)		(0.27	)
Net asset value, end of period	$	2.33		$	2.19		$	1.85		$	2.23		$	2.47		$	2.68		$	2.61
Market price, end of period	$	2.16		$	2.09		$	1.68		$	1.88		$	2.14		$	2.55		$	2.33
Total Investment Return2
Based on net asset value		12.65	%3		28.95	%		(3.01	)%		(4.00	)%3		1.58	%		12.32	%		0.43	%
Based on market price		9.43	%3		35.52	%		4.47	%		(6.59	)%3		(7.51	)%		19.70	%		(11.28	)%
Ratios to Average Net Assets
Total expenses		1.51	%4		1.49	%		2.01	%		1.98	%4		3.56	%		3.78	%		3.04	%
Total expenses after fees waived and paid indirectly		1.50	%4		1.49	%		2.01	%		1.98	%4		3.55	%		3.77	%		3.04	%
Total expenses after fees waived and paid indirectly and excluding interest expense		1.25	%4		1.27	%		1.41	%		1.05	%4		1.27	%		1.34	%		1.37	%
Net investment income		9.13	%4		9.34	%		12.06	%		9.52	%4		8.89	%		8.42	%		8.82	%
Supplemental Data
Net assets, end of period (000)	$	127,367		$	119,642		$	100,921		$	121,808		$	135,098		$	146,538		$	142,457
Borrowings outstanding, end of period (000)	$	28,000		$	25,000		$	18,000		$	27,000		$	46,000		$	62,000		$	66,000
Average borrowings outstanding during the period (000)	$	24,956		$	21,027		$	21,220		$	27,069		$	55,868		$	62,838		$	65,992
Portfolio turnover		50	%		85	%		55	%		25	%		69	%		83	%		115	%
Asset coverage, end of period per $1,000	$	5,549		$	5,786		$	6,607		$	5,512		$	3,937		$	3,364		$	3,158

1	Based on average shares outstanding.
2	Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.
3	Aggregate total investment return.
4	Annualized. The performance set forth in this table is the financial data of BlackRock High Income Shares. BlackRock Advisors, LLC began managing the Trust on March 2, 2005.

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	113

Financial Highlights BlackRock High Yield Trust (BHY)

	Six Months Ended February 28, 2011 (Unaudited)									Period November 1, 2007 to August 31, 2008
				Year Ended August 31,
													Year Ended October 31,
				2010			2009						2007			2006			2005
Per Share Operating Performance
Net asset value, beginning of period	$	6.69		$	5.78		$	6.84		$	7.91		$	7.85		$	7.48		$	7.95
Net investment income		0.27	1		0.51	1		0.51	1		0.50	1		0.63			0.66			0.68
Net realized and unrealized gain (loss)		0.56			0.92			(1.00	)		(1.06	)		0.04			0.36			(0.36	)
Net increase (decrease) from investment operations		0.83			1.43			(0.49	)		(0.56	)		0.67			1.02			0.32
Dividends and distributions from:
Net investment income		(0.26	)		(0.50	)		(0.55	)		(0.51	)		(0.61	)		(0.65	)		(0.79	)
Tax return of capital		—			(0.02	)		(0.02	)		—			—			—			—
Total dividends and distributions		(0.26	)		(0.52	)		(0.57	)		(0.51	)		(0.61	)		(0.65	)		(0.79	)
Net asset value, end of period	$	7.26		$	6.69		$	5.78		$	6.84		$	7.91		$	7.85		$	7.48
Market price, end of period	$	6.75		$	6.44		$	5.84		$	5.96		$	6.92		$	7.77		$	7.36
Total Investment Return2
Based on net asset value		12.85	%3		25.70	%		(5.30	)%		(6.47	)%3		9.03	%		14.25	%		2.85	%
Based on market price		9.00	%3		19.76	%		9.81	%		(6.85	)%3		(3.63	)%		14.93	%		(13.49	)%
Ratios to Average Net Assets
Total expenses		2.17	%4		2.10	%		2.61	%		2.61	%4		4.16	%		4.50	%		3.52	%
Total expenses after fees waived and paid indirectly		2.17	%4		2.10	%		2.61	%		2.61	%4		4.14	%		4.49	%		3.51	%
Total expenses after fees waived and excluding interest expense		1.92	%4		1.91	%		2.16	%		1.77	%4		2.10	%		2.19	%		2.10	%
Net investment income		7.72	%4		7.89	%		10.22	%		8.34	%4		7.84	%		8.74	%		8.71	%
Supplemental Data
Net assets, end of period (000)	$	46,646		$	42,980		$	37,137		$	43,897		$	50,782		$	50,385		$	47,924
Borrowings outstanding, end of period (000)	$	10,000		$	8,000		$	4,000		$	6,250		$	9,250		$	20,250		$	20,750
Average borrowings outstanding during the period (000)	$	9,066		$	6,427		$	5,223		$	7,443		$	17,710		$	20,621		$	20,425
Portfolio turnover		49	%		80	%		54	%		34	%		69	%		85	%		102	%
Asset coverage, end of period per $1,000	$	5,665		$	6,373		$	10,284		$	8,023		$	6,490		$	3,488		$	3,310

1	Based on average shares outstanding.
2	Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.
3	Aggregate total investment return.
4	Annualized.

See Notes to Financial Statements.
114	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011

Financial Highlights BlackRock Income Opportunity Trust, Inc. (BNA)

	Six Months Ended February 28, 2011 (Unaudited)									Period November 1, 2007 to August 31, 2008
				Year Ended August 31,
													Year Ended October 31,
				2010			2009						2007			2006			2005
Per Share Operating Performance
Net asset value, beginning of period	$	11.07		$	10.02		$	10.35		$	11.02		$	11.17		$	11.56		$	12.38
Net investment income		0.30	1		0.59	1		0.59	1		0.53	1		0.62			0.57			0.72
Net realized and unrealized gain (loss)		(0.51	)		1.25			(0.31	)		(0.69	)		(0.11	)		0.01			(0.45	)
Net increase (decrease) from investment operations		(0.21	)		1.84			0.28			(0.16	)		0.51			0.58			0.27
Dividends and distributions from:
Net investment income		(0.34	)		(0.79	)		(0.61	)		(0.51	)		(0.61	)		(0.65	)		(0.81	)
Net realized gain		—			—			—			—			—			(0.26	)		(0.28	)
Tax return of capital		—			—			—			—			(0.05	)		(0.06	)		—
Total dividends and distributions		(0.34	)		(0.79	)		(0.61	)		(0.51	)		(0.66	)		(0.97	)		(1.09	)
Net asset value, end of period	$	10.52		$	11.07		$	10.02		$	10.35		$	11.02		$	11.17		$	11.56
Market price, end of period	$	9.52		$	10.56		$	9.65		$	9.82		$	10.19		$	10.58		$	10.90
Total Investment Return2
Based on net asset value		(1.64	)%3		19.83	%		3.90	%		(1.07	)%3		5.11	%		5.76	%		2.95	%
Based on market price		(6.69	)%3		18.69	%		5.46	%		1.51	%3		2.62	%		6.27	%		5.53	%
Ratios to Average Net Assets
Total expenses		0.94	%4		1.09	%		0.95	%		2.25	%4		2.01	%		1.61	%		1.72	%
Total expenses after fees waived and paid indirectly		0.94	%4		1.09	%		0.95	%		2.25	%4		2.00	%		1.61	%		1.72	%
Total expenses after fees waived and paid indirectly and excluding interest expense		0.84	%4		0.86	%		0.85	%		0.83	%4		0.87	%		0.89	%		0.87	%
Net investment income		5.58	%4		5.81	%		6.45	%		5.89	%4		5.68	%		5.11	%		5.97	%
Supplemental Data
Net assets, end of period (000)	$	362,381		$	381,379		$	345,101		$	356,456		$	379,605		$	384,850		$	398,078
Borrowings outstanding, end of period (000)	$	158,260		$	157,776		$	77,474		$	100,740		$	105,262		$	34,326		$	120,179
Average borrowings outstanding during the period (000)	$	140,370		$	151,700		$	49,573		$	131,462		$	68,241		$	59,691		$	122,457
Portfolio turnover		579	%5		720	%6		270	%7		441	%8		196	%		131	%		396	%
Asset coverage, end of period per $1,000	$	3,290		$	3,417		$	5,454		$	4,538		$	4,606		$	12,212		$	4,312

1	Based on average shares outstanding.
2	Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.
3	Aggregate total investment return.
4	Annualized.
5	Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover rate would have been 390%.
6	Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover rate would have been 608%.
7	Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover rate would have been 165%.
8	Includes TBA transactions. Excluding these transactions, the portfolio turnover rate would have been 168%.

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	115

Financial Highlights BlackRock Income Trust, Inc. (BKT)

	Six Months Ended February 28, 2011 (Unaudited)									Period November 1, 2007 to August 31, 2008
				Year Ended August 31,
													Year Ended October 31,
				2010			2009						2007			2006			2005
Per Share Operating Performance
Net asset value, beginning of period	$	7.76		$	7.12		$	6.94		$	6.53		$	6.48		$	6.54		$	6.95
Net investment income		0.17	1		0.20	1		0.28	1		0.26	1		0.30			0.32			0.44
Net realized and unrealized gain (loss)		(0.02	)		0.73			0.19			0.40			0.12			0.05			(0.30	)
Net increase from investment operations		0.15			0.93			0.47			0.66			0.42			0.37			0.14
Dividends and distributions from:
Net investment income		(0.15	)		(0.26	)		(0.29	)		(0.25	)		(0.29	)		(0.34	)		(0.48	)
Net realized gain		—			(0.03	)		—			—			—			—			—
Tax return of capital		—			—			—			—			(0.08	)		(0.09	)		(0.07	)
Total dividends and distributions		(0.15	)		(0.29	)		(0.29	)		(0.25	)		(0.37	)		(0.43	)		(0.55	)
Net asset value, end of period	$	7.76		$	7.76		$	7.12		$	6.94		$	6.53		$	6.48		$	6.54
Market price, end of period	$	6.80		$	6.95		$	6.53		$	6.07		$	5.81		$	6.07		$	5.90
Total Investment Return2
Based on net asset value		2.22	%3		13.86	%		7.64	%		10.82	%3		7.06	%		6.06	%		2.12	%
Based on market price		0.01	%3		11.19	%		12.87	%		8.94	%3		1.69	%		10.18	%		(14.63	)%
Ratios to Average Net Assets
Total expenses		1.08	%4		1.05	%		1.09	%		1.63	%4		2.77	%		2.85	%		2.80	%
Total expenses after fees waived and before fees paid indirectly		1.08	%4		1.02	%		1.08	%		1.63	%4		2.77	%		2.85	%		2.80	%
Total expenses after fees waived and paid indirectly		1.08	%4		1.02	%		1.08	%		1.63	%4		2.76	%		2.84	%		2.79	%
Total expenses after fees waived and paid indirectly and excluding interest expense		0.93	%4		0.92	%		0.93	%		0.91	%4		0.98	%		1.00	%		0.99	%
Net investment income		4.30	%4		2.72	%		4.09	%		4.67	%4		4.60	%		4.92	%		6.54	%
Supplemental Data
Net assets, end of period (000)	$	496,122		$	496,260		$	455,529		$	444,054		$	417,651		$	414,460		$	418,390
Borrowings outstanding, end of period (000)	$	93,056		$	106,985		$	11,815			—		$	33,895		$	70,691		$	149,558
Average borrowings outstanding during the period (000)	$	85,216		$	23,316		$	537		$	61,777		$	93,325		$	104,393		$	180,553
Portfolio turnover		601	%5		883	%6		700	%7		263	%8		250	%		80	%		60	%
Asset coverage, end of period per $1,000	$	6,331		$	5,639		$	39,555			—		$	13,322		$	6,863		$	3,798

1	Based on average shares outstanding.
2	Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.
3	Aggregate total investment return.
4	Annualized.
5	Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover rate would have been 287%.
6	Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover rate would have been 207%.
7	Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover rate would have been 184%.
8	Includes TBA transactions. Excluding these transactions, the portfolio turnover rate would have been 0%.

See Notes to Financial Statements.
116	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011

Financial Highlights BlackRock Strategic Bond Trust (BHD)

	Six Months Ended February 28, 2011 (Unaudited)			Year Ended August 31,						Period November 1, 2007 to August 31, 2008
													Year Ended October 31,
				2010			2009						2007			2006			2005
Per Share Operating Performance
Net asset value, beginning of period	$	13.57		$	12.12		$	12.76		$	13.80		$	13.83		$	13.68		$	15.10
Net investment income		0.52	1		1.01	1		0.93	1		0.76	1		0.95			0.99			1.10
Net realized and unrealized gain (loss)		0.67			1.35			(0.69	)		(1.03	)		(0.06	)		0.18			(1.13	)
Net increase (decrease) from investment operations		1.19			2.36			0.24			(0.27	)		0.89			1.17			(0.03	)
Dividends and distributions from:
Net investment income		(0.60	)		(0.91	)		(0.88	)		(0.77	)		(0.92	)		(0.98	)		(1.12	)
Tax return of capital		—			—			—			—			—			(0.04	)		(0.27	)
Total dividends and distributions		(0.60	)		(0.91	)		(0.88	)		(0.77	)		(0.92	)		(1.02	)		(1.39	)
Net asset value, end of period	$	14.16		$	13.57		$	12.12		$	12.76		$	13.80		$	13.83		$	13.68
Market price, end of period	$	13.02		$	13.17		$	11.43		$	10.85		$	11.88		$	12.85		$	12.45
Total Investment Return2
Based on net asset value		9.30	%3		20.38	%		3.99	%		(1.19	)%3		7.26	%		9.58	%		(0.49	)%
Based on market price		3.55	%3		23.88	%		15.34	%		(2.40	)%3		(0.62	)%		11.87	%		(18.11	)%
Ratios to Average Net Assets
Total expenses		1.42	%4		1.13	%		1.00	%		0.93	%4		1.45	%		2.25	%		2.14	%
Total expenses after fees waived and before fees paid indirectly		1.42	%4		1.11	%		0.92	%		0.82	%4		1.27	%		2.25	%		2.14	%
Total expenses after fees waived and paid indirectly		1.42	%4		1.11	%		0.92	%		0.82	%4		1.27	%		2.00	%		1.87	%
Total expenses after fees waived and paid indirectly and excluding interest expense and fees		1.16	%4		1.04	%		0.92	%		0.81	%4		0.87	%		0.94	%		0.92	%
Net investment income		7.51	%4		7.77	%		8.67	%		6.85	%4		6.86	%		7.26	%		7.58	%
Supplemental Data
Net assets, end of period (000)	$	99,972		$	95,794		$	85,581		$	90,092		$	97,410		$	97,614		$	96,546
Borrowings outstanding, end of period (000)	$	29,000		$	12,000			—		$	1,571		$	413		$	14,951		$	31,883
Average borrowings outstanding during the period (000)	$	19,978		$	5,701		$	303		$	391		$	7,240		$	21,104		$	30,406
Portfolio turnover		38	%		83	%		61	%		27	%		34	%		56	%		51	%
Asset coverage, end of period per $1,000	$	4,447		$	8,983			—		$	58,347		$	236,789		$	7,529		$	4,028

1	Based on average shares outstanding.
2	Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.
3	Aggregate total investment return.
4	Annualized.

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 28, 2011	117

Notes to Financial Statements(Unaudited)

1. Organization and Significant Accounting Policies:

BlackRock Core Bond Trust (“BHK”), BlackRock Corporate High Yield Fund V, Inc. (“HYV”), BlackRock Corporate High Yield Fund VI, Inc. (“HYT”), BlackRock High Income Shares (“HIS”), BlackRock High Yield Trust (“BHY”), BlackRock Income Opportunity Trust, Inc. (“BNA”), BlackRock Income Trust, Inc. (“BKT”) and BlackRock Strategic Bond Trust (“BHD”) (collectively the “Trusts” or individually as a “Trust”) are registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as diversified, closed-end management investment companies. HYV, HYT, BNA and BKT are organized as Maryland corporations. BHK, BHY and BHD are organized as Delaware statutory trusts. HIS is organized as a Massachusetts business trust. The Trusts’ financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”), which may require management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. Each Trust’s Board of Directors/Trustees are collectively referred to throughout this report as the “Board of Trustees” or the “Board.” The Trusts 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 Trusts:

Valuation: US GAAP defines fair value as the price the Trusts’ would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Trusts fair value their financial instruments at market value using independent dealers or pricing services under policies approved by the Board. The Trusts value their bond investments on the basis of last available bid prices or current market quotations provided by dealers or pricing services. Floating rate loan interests are valued at the mean of the bid prices from one or more brokers or dealers as obtained from a pricing service. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market transactions in comparable investments, various relationships observed in the market between investments and calculated yield measures. Asset-backed and mortgage-backed securities are valued by independent pricing services using models that consider estimated cash flows of each tranche of the security, establish a benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique attributes of the tranche. Financial futures contracts traded on exchanges are valued at their last sale price. TBA commitments are valued on the basis of last available bid prices or current market quotations provided by pricing services. Swap agreements are valued utilizing quotes received daily by the Trusts’ 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 registered investment companies are valued at net asset value each business day. Short-term securities with remaining maturities of 60 days or less may be valued at amortized cost, which approximates fair value.

Municipal investments (including commitments to purchase such investments on a “when-issued” basis) are valued on the basis of prices provided by dealers or pricing services. In determining the value of a particular

investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market transactions in comparable investments and information with respect to various relationships between investments.

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

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

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

In the event that application of these methods of valuation results in a price for an investment which is deemed not to be representative of the market value of such investment or is not available, the investment will be valued in accordance with a policy approved by the Board as reflecting fair value (“Fair Value Assets”). When determining the price for Fair Value Assets, the investment advisor and/or the sub-advisor seeks to determine the price that each Trust 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 each Trust’s net assets. If events (for example, a company announcement, market volatility or a natural disaster) occur during such periods that are expected to materially affect the value of such instruments, those instruments may be Fair Value Assets and be valued at their fair value, as determined in good faith by the investment advisor using a pricing service and/or policies approved by the Board.

118 SEMI-ANNUAL REPORT FEBRUARY 28, 2011

Notes to Financial Statements (continued)

Foreign Currency Transactions: The Trusts’ books and records are maintained in US dollars. Purchases and sales of investment securities are recorded at the rates of exchange prevailing on the date the transactions are entered into. Generally, when the US dollar rises in value against a foreign currency, the Trusts’ 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 Trusts report realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are treated as ordinary income for federal income tax purposes.

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

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

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

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

Capital Trusts: Certain Trusts may invest in capital trusts. These securities are typically issued by corporations, generally in the form of interest-bearing notes with preferred securities characteristics, or by an affiliated business trust of a corporation, generally in the form of beneficial interests in subordinated debentures or similarly structured securities. The securities can be structured as either fixed or adjustable coupon securities that can have either a perpetual or stated maturity date. Dividends can be deferred without creating an event of default or acceleration, although maturity cannot take place unless all cumulative payment obligations have been met. The deferral of payments does not affect the purchase or sale of these securities in the open market. Payments on these securities are treated as interest rather than dividends for federal income tax purposes. These securities generally are rated below that of the issuing company’s senior debt securities.

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

SEMI-ANNUAL REPORT FEBRUARY 28, 2011 119

Notes to Financial Statements (continued)

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

When a Trust buys 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 Trusts may receive a commitment fee based on the undrawn portion of the underlying line of credit amount of a floating rate loan interest. The Trusts earns and/or pays 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 Trusts upon the prepayment of a floating rate loan interest by a borrower, are recorded as realized gains. The Trusts may invest in multiple series or tranches of a loan. A different series or tranche may have varying terms and carry different associated risks.

Floating rate loan interests are usually freely callable at the borrower’s option. The Trusts may invest in such loans in the form of participations in loans (“Participations”) or assignments (“Assignments”) of all or a portion of loans from third parties. Participations typically will result in the Trusts having a contractual relationship only with the lender, not with the borrower. The Trusts 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 Trusts 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 Trusts may not benefit directly from any collateral supporting the loan in which it has purchased the Participation. As a result, the Trusts will assume the credit risk of both the borrower and the lender that is selling the Participation. The Trusts’ investment in loan participation interests involves the risk of insolvency of the financial intermediaries who are parties to the transactions. In the event of the insolvency of the lender selling the Participation, the Trusts may be treated as general creditors of the lender and may not benefit from any offset between the lender and the borrower. Assignments typically result in the Trusts having a direct contractual relationship with the borrower, and the Trusts may enforce compliance by the borrower with the terms of the loan agreement.

Borrowed Bond Agreements: Certain Trusts may enter into borrowed bond agreements. In a borrowed bond agreement, each Trust borrows a bond from a counterparty in exchange for cash collateral with the commitment that the security and the cash will be returned to the counterparty and the Trusts, respectively, at a mutually agreed upon rate and date. Certain agreements have no stated maturity and can be terminated by either party at any time. Borrowed bond agreements are entered into primarily in connection with short sales of bonds. Earnings on cash collateral and compensation to the lender of the bond are based on agreed upon rates between the Trusts and the counterparty. The value of the underlying cash collateral approximates the market value and accrued interest of the borrowed bond. To the extent that a borrowed bond transaction exceeds one business day, the value of the cash collateral in the possession of the counterparty is monitored on a daily basis to ensure the adequacy of the collateral. As the market value of the borrowed bond changes, the cash collateral is periodically increased or decreased with a frequency and in amounts prescribed in the borrowed bond agreement. Full realization of the collateral by the Trusts may be limited if the value of an investment purchased with the cash collateral by the lender decreases. The Trusts may also experience delays in gaining access to the collateral.

TBA Commitments: Certain Trusts may enter into TBA commitments. TBA commitments are forward agreements for the purchase or sale of mortgage-backed securities for a fixed price, with payment and delivery on an agreed upon future settlement date. The specific securities to be delivered are not identified at the trade date; however, delivered securities must meet specified terms, including issuer, rate and mortgage terms. The Trusts generally enter into TBA commitments with the intent to take possession of or deliver the underlying mortgage-backed securities but can extend the settlement or roll the transaction. TBA commitments involve a risk of loss if the value of the security to be purchased or sold declines or increases, respectively, prior to settlement date.

Mortgage Dollar Roll Transactions: Certain Trusts may sell TBA mortgage-backed securities and simultaneously contract to repurchase substantially similar (same type, coupon and maturity) securities on a specific future date at an agreed upon price. During the period between the sale and repurchase, the Trusts will not be entitled to receive interest and principal payments on the securities sold. The Trusts account for dollar roll transactions as purchases and sales and realizes gains and losses on these transactions. These transactions may increase the Trusts’ portfolio turnover rate. Mortgage dollar rolls involve the risk that the market value of the securities that the Trusts are required to purchase may decline below the agreed upon repurchase price of those securities.

Treasury Roll Transactions: Certain Trusts may enter into treasury roll transactions. In a treasury roll transaction the Trusts sell a Treasury security to a counterparty with a simultaneous agreement to repurchase the same security at an agreed upon price and future settlement date. The Trusts received cash from the sale of the Treasury security to use for other investment purposes. For US GAAP purposes, a treasury roll transaction is accounted for as a secured borrowing and not as a purchase or sale. The difference between the sale price and repurchase price represents net interest income or net interest expense reflective of an agreed upon rate between the Trusts and the counterparty over the term of the borrowing. The Trusts will benefit from the transaction if the income earned on the investment purchased with the cash

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Notes to Financial Statements (continued)

received in the treasury roll transaction exceeds the interest expense incurred by the Trusts. If the interest expense exceeds the income earned, the Trusts’ net investment income and dividends to shareholders may be adversely impacted. Treasury roll transactions involve the risk that the market value of the securities that the Trusts are required to repurchase may decline below the agreed upon repurchase price of those securities.

Reverse Repurchase Agreements: Certain Trusts may enter into reverse repurchase agreements with qualified third party broker-dealers. In a reverse repurchase agreement, the Trusts sell securities to a bank or broker-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 Trusts 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 Trusts 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 Trusts’ 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 Trusts’ obligation to repurchase the securities.

Segregation and Collateralization: In cases in which the 1940 Act and the interpretive positions of the Securities and Exchange Commission (“SEC”) require that the Trusts either deliver collateral or segregate assets in connection with certain investments (e.g., dollar rolls, TBA sale commitments, financial futures contracts, foreign currency exchange contracts, swaps, short sales, structured options and options written), or certain borrowings (e.g., reverse repurchase agreements, treasury roll transactions, TALF loan and loan payable), the Trusts will, consistent with SEC rules and/or certain interpretive letters issued by the SEC, segregate collateral or designate on their books and records cash or 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 transactions are entered into (the trade dates). Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on the ex-dividend dates. Dividends from foreign securities where the ex-dividend date may have passed are subsequently recorded when the Trust is informed of the ex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized on the accrual basis. Income and realized and unrealized gains and losses are allocated daily to each class based on its relative net assets. Consent fees are compensation for agreeing to changes in the terms of debt instruments and are included in interest income in the Statements of Operations.

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

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

Each Trust files US federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on BHY, BNA, BKT and BHD’s US federal tax returns remains open for the year ended October 31, 2007, the period ended August 31, 2008 and for each of the two years ended August 31, 2010. The statute of limitations on BHK and HIS’s US federal tax returns remains open for the year ended December 31, 2007, the period ended August 31, 2008 and for each of the two years ended August 31, 2010. The statute of limitations on HYV and HYT’s tax returns remains open for each of the four years ended August 31, 2010. The statutes of limitations on the Trusts’ state and local tax returns may remain open for an additional year depending upon the jurisdiction. There are no uncertain tax positions that require recognition of a tax liability.

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

The deferred compensation plan is not funded and obligations thereunder represent general unsecured claims against the general assets of each Trust. Each Trust may, however, elect to invest in common shares of certain other BlackRock Closed-End Funds selected by the Independent Trustees in order to match its deferred compensation obligations. Investments to cover each Trust’s deferred compensation liability, if any, are included in other assets in the Statements of Assets and Liabilities. Dividends and distributions from the BlackRock Closed-End Fund investments under the plan are included in dividend — affiliated in the Statements of Operations.

Other: Expenses directly related to a Trust are charged to that Trust. 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 Trusts have an arrangement with the custodian whereby fees may be reduced by

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Notes to Financial Statements (continued)

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

2. Derivative Financial Instruments:

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

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

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

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

Financial Futures Contracts: The Trusts 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 changes in the value of equity securities (equity risk). Financial futures contracts are agreements between the Trusts and the counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and at a specified date. Depending on the terms of the particular contract, futures contracts are settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash settlement amount on the settlement date. Pursuant to the contract, the Trusts 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 recorded by the Trusts as unrealized appreciation or depreciation. When the contract is closed, the Trusts record a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. The use of financial futures contracts involves the risk of an imperfect correlation in the movements in the price of financial futures contracts, interest rates and the underlying assets.

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

Options: The Trusts purchase and write call and put options to increase or decrease their exposure to underlying instruments (including equity risk and/or interest rate risk) and/or, in the case of options written, to generate gains from options premiums. A call option gives the purchaser 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 Trusts purchase (write) an option, an amount equal to the premium paid (received) by the Trusts is reflected as an asset (liability). The amount of the asset (liability) is subsequently marked-to-market to reflect the current market value of the option purchased (written). When an instrument is purchased or sold through an exercise of an option, the related premium paid (or received) is added to (or deducted from) the basis of the instrument acquired or deducted from (or added to) the proceeds of the instrument sold. When an option expires (or the Fund enters into a closing transaction), the Trusts realize a gain or loss on the option to the extent of the premiums received or paid (or gain or loss to the extent the cost of the closing transaction exceeds the premiums received or paid). When the Trusts write a call option, such option is “covered,” meaning that the Trusts hold the underlying instrument subject to being called by the option counterparty. When the Trusts write a put option, such option is covered by cash in an amount sufficient to cover the obligation.

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Notes to Financial Statements (continued)

Options on swaps (swaptions) are similar to options on securities except that instead of selling or purchasing the right to buy or sell a security, the writer or purchaser of the swap option is granting or buying the right to enter into a previously agreed upon interest rate swap agreement (interest rate risk and/or credit risk) at any time before the expiration of the option.

The Trusts also purchase or sell listed or OTC foreign currency options, foreign currency futures and related options on foreign currency futures as a short or long hedge against possible variations in foreign exchange rates or to gain exposure to foreign currencies (foreign currency exchange rate risk). When foreign currency is purchased or sold through an exercise of a foreign currency option, the related premium paid (or received) is added to (or deducted from) the basis of the foreign currency acquired or deducted from (or added to) the proceeds of the foreign currency sold. Such transactions may be effected with respect to hedges on non-US dollar denominated instruments owned by the Trusts but not yet delivered, or committed or anticipated to be purchased by the Trusts.

In purchasing and writing options, the Trusts bear the risk of an unfavorable change in the value of the underlying instrument or the risk that the Trusts may not be able to enter into a closing transaction due to an illiquid market. Exercise of a written option could result in the Trusts purchasing or selling a security at a price different from the current market value.

Swaps: The Trusts enter into swap agreements, in which the Trusts and a counterparty agree to make periodic net payments on a specified notional amount. These periodic payments received or made by the Trusts 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 terminated, the Trusts will record a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Trusts’ basis in the contract, if any. Generally, the basis of the contracts is the premium received or paid. Swap transactions involve, to varying degrees, elements of interest rate, credit and market risk in excess of the amounts recognized in the Statements of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreements, and that there may be unfavorable changes in interest rates and/or market values associated with these transactions.

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

• Total return swaps — The Trusts enter into total return swaps to obtain exposure to a security or market without owning such security or investing directly in that market or to transfer the risk/return of one market (e.g., fixed income) to another market (e.g., equity) (equity risk and/or interest rate risk). Total return swaps are agreements in which there is an exchange of cash flows whereby one party commits to make payments based on the total return (coupons plus capital gains/losses) of an underlying instrument in exchange for fixed or floating rate interest payments. To the extent the total return of the instrument or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the Trusts will receive a payment from or make a payment to the counterparty.

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

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Notes to Financial Statements (continued)

Derivative Instruments Categorized by Risk Exposure:

Fair Values of Derivative Instruments as of February 28, 2011
	Asset Derivatives
		BHK		HYV		HYT		BHY		BNA		BKT		BHD
	Statements of Assets and Liabilities Location							Value
Interest rate contracts	Net unrealized appreciation/depreciation*; Unrealized appreciation on swaps; Investments at value — unaffiliated**	$	8,174,792		—		—		—	$	7,517,944	$	24,611,240	$	25,036
Foreign currency exchange contracts	Unrealized appreciation on foreign currency exchange contracts; Investments at value — unaffiliated**		679,309	$	67	$	71		—		677,897		—		—
Credit contracts	Unrealized appreciation on swaps		18,962		389,277		456,881	$	12,189		18,962		—		51,053
Total		$	8,873,063	$	389,344	$	456,952	$	12,189	$	8,214,803	$	24,611,240	$	76,089
	Liability Derivatives
		BHK		HYV		HYT		HIS		BHY		BNA		BKT		BHD
	Statements of Assets and Liabilities Location							Value
Interest rate contracts	Net unrealized appreciation/depreciation*; Unrealized depreciation on swaps; Options written at value; Interest rate floors at value	$	10,257,968		—		—		—		—	$	10,088,485	$	24,892,010	$	11,147
Foreign currency exchange contracts	Unrealized depreciation on foreign currency exchange contracts		833,729	$	252,933	$	269,959	$	36,740		—		840,687		—		53,362
Credit contracts	Unrealized depreciation on swaps; Options written at value		267,424		862,839		787,924		—	$	59,528		267,425		—		141,158
Equity contracts	Net unrealized appreciation/depreciation*		—		440,075		471,113		86,908		—		—		—		—
Total		$	11,359,122	$	1,555,847	$	1,528,996	$	123,648	$	59,528	$	11,196,597	$	24,892,010	$	205,667

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

The Effect of Derivative Instruments in the Statement of Operations Six Months Ended February 28, 2011
	Net Realized Gain (Loss) from
	BHK			HYV			HYT			HIS			BHY			BNA			BKT			BHD
Interest rate contracts:
Financial futures contracts	$	(4,896,992	)		—			—			—			—		$	(6,015,314	)	$	5,833,761		$	(100,303	)
Swaps		(1,122,308	)		—			—			—			—			3,854,856			4,708,781			—
Options***		804,170			—			—			—			—			895,513			(40,185	)		28,625
Floors		—			—			—			—			—			—			(1,876,795	)		—
Foreign currency exchange contracts:
Foreign currency exchange contracts		(288,618	)	$	(1,821,239	)	$	(2,066,544	)	$	(291,614	)		—			(58,453	)		—			(164,507	)
Options***		41,688			—			—			—			—			36,063			—			—
Credit contracts:
Swaps		(321,028	)		175,892			216,109			—		$	(31,704	)		1,145,807			—			—
Options***		—			113,750			119,750			—			13,000			—			—			(73,197	)
Equity contracts:
Financial futures contracts		—			(1,524,239	)		(1,561,238	)		(260,221	)		—			—			—			—
Options***		—			50,715			52,351			—			—			—			—			—
Total	$	(5,783,088	)	$	(3,005,121	)	$	(3,239,572	)	$	(551,835	)	$	(18,704	)	$	(141,528	)	$	8,625,562		$	(309,382	)

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

124 SEMI-ANNUAL REPORT FEBRUARY 28, 2011

Notes to Financial Statements (continued)

	Net Change in Unrealized Appreciation/Depreciation on
	BHK			HYV			HYT			HIS			BHY			BNA			BKT			BHD
Interest rate contracts:
Financial futures contracts	$	(1,041,525	)		—			—			—			—		$	(1,043,699	)	$	(588,259	)	$	19,507
Swaps		1,153,379			—			—			—			—			(3,881,597	)		(2,675,581	)		—
Options***		1,167,371			—			—			—			—			1,339,969			270,875			—
Floors		—			—			—			—			—			—			1,825,213			—
Foreign currency exchange contracts:
Foreign currency exchange contracts		(226,335	)	$	(210,673	)	$	(227,991	)	$	(36,398	)		—			(236,822	)		—			(56,815	)
Options***		(66,037	)		—			—			—			—			(65,782	)		—			—
Credit contracts:
Swaps		(176,784	)		(429,508	)		(408,099	)		—		$	(43,808	)		(300,888	)		—			(107,911	)
Options***		—			(107,893	)		(113,584	)		—			(12,341	)		—			—			(27,158	)
Equity contracts:
Financial futures contracts		—			(615,578	)		(651,669	)		(132,386	)		—			—			—			—
Other contracts:
Swaps		(410,465	)		—			—			—			—			(410,464	)		—			—
Total	$	399,604	)	$	(1,363,652	)	$	(1,401,343	)	$	(168,784	)	$	(56,149	)	$	(4,599,283	)	$	(1,167,752	)	$	(172,377	)

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

For the six months ended February 28, 2011, the average quarterly balances of outstanding derivative financial instruments were as follows:

	BHK		HYV			HYT		HIS		BHY		BNA		BKT		BHD
Financial futures contracts:
Average number of contracts purchased		554		—			—		—		—		613		719		52
Average number of contracts sold		953		191			203		39		—		980		2,665		28
Average notional value of contracts purchased	$	86,867,487		—			—		—		—	$	95,818,635	$	165,022,176	$	7,984,721
Average notional value of contracts sold	$	126,561,648	$	11,611,623		$	12,341,602	$	2,340,775		—	$	129,193,058	$	375,739,627	$	3,346,988
Foreign currency exchange contracts:
Average number of contracts — US dollars purchased		14		11			11		4		—		17		—		4
Average number of contracts — US dollars sold		11		1	��		1		—		—		11		—		—
Average US dollar amounts purchased	$	21,338,472	$	26,889,071		$	28,812,263	$	4,411,227		—	$	17,868,564		—	$	4,781,846
Average US dollar amounts sold	$	15,351,150	$	48,920		$	129,673		—		—	$	15,317,787		—		—
Options:
Average number of option contracts purchased		11,895		—			—		—		3		1,683		267		6
Average number of option contracts written		289		—			—		—		—		289		364		—
Average notional value of option contracts purchased	$	1,949,019		—			—		—	$	2,829	$	1,882,030	$	494,250	$	5,657
Average notional value of option contracts written	$	487,000		—			—		—		—	$	487,250	$	590,750		—
Average number of swaption contracts purchased		40		—			—		—		—		39		2		—
Average number of swaption contracts written		55		—			—		—		—		54		4		—
Average notional value of swaption contracts purchased	$	193,950,000		—			—		—		—	$	179,750,000	$	12,400,000		—
Average notional value of swaption contracts written	$	215,950,000		—			—		—		—	$	218,300,000	$	29,200,000		—
Credit default swaps:
Average number of contracts — buy protection		8		7			7		—		5		9		—		7
Average number of contracts — sell protection		2		20			20		—		7		1		—		9
Average notional value — buy protection	$	14,901,500	$	6,430,000		$	6,300,000		—	$	675,000	$	17,871,500		—	$	2,072,500
Average notional value — sell protection	$	5,045,000	$	9,551,528		$	10,365,250		—	$	359,238	$	7,450,000		—	$	1,237,500
Interest rate swaps:
Average number of contracts — pays fixed rate		13		—			—		—		—		11		14		—
Average number of contracts — receives fixed rate		12		—			—		—		—		11		11		—
Average notional value — pays fixed rate	$	74,900,000		—			—		—		—	$	61,950,000	$	360,330,000		—
Average notional value — receives fixed rate	$	31,900,000		—			—		—		—	$	26,350,000	$	243,911,600		—

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 structure, PNC is an affiliate of the Trusts for 1940 Act purposes, but BAC and Barclays are not.

Each Trust entered into an Investment Advisory Agreement with BlackRock Advisors, LLC (the “Manager”), the Trusts’ investment advisor, an indirect, wholly owned subsidiary of BlackRock, to provide investment advisory and administration services for BHK, HYV, HYT, HIS and BHD.

SEMI-ANNUAL REPORT FEBRUARY 28, 2011 125

Notes to Financial Statements (continued)

The following Trusts’ investment advisory fee paid to the Manager is computed weekly and payable monthly based on an annual rate of each Trust’s average total assets (including any assets attributable to borrowings) minus the sum of total liabilities (other than debt representing financial leverage):

BHK	0.55%
HIS	0.75% of the first
	$200 million and
	0.50% thereafter
BHY	1.05%
BHD	0.75%

The following Trusts’ investment advisory fee paid to the Manager is computed daily and payable monthly based on an annual rate of each Trust’s average total assets (including any assets attributable to borrowings) minus the sum of total liabilities (other than debt representing financial leverage):

HYV	0.60	%
HYT	0.70	%

The following Trusts’ investment advisory fee paid to the Manager is computed weekly and payable monthly based on an annual rate of each Trust’s average net assets:

BNA	0.60	%
BKT	0.65	%

BHY, BNA and BKT each have an Administration Agreement with the Manager. The administration fee paid to the Manager is computed weekly and payable monthly based on an annual rate, 0.10% for BNA, and 0.15% for BKT, of each Trust’s average net assets and 0.10% for BHY of the Trust’s average weekly total assets.

The Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees each Trust pays to the Manager indirectly through its investment in affiliated money market funds, however, the Manager does not waive its investment advisory fees by the amount of investment advisory fees paid through each Trust’s investment in other affiliated investment companies, if any. These amounts are included in fees waived by advisor in the Statements of Operations. For the six months ended February 28, 2011, the amounts waived were as follows:

BHK	$	381
HYV	$	831
HYT	$	821
HIS	$	664
BHY	$	589
BNA	$	379
BKT	$	2,217
BHD	$	573

The Manager entered into a separate sub-advisory agreement with BlackRock Financial Management, Inc. (“BFM”), an affiliate of the Manager with respect to BHK, HYV, HYT, HIS, and BHD. The Manager pays BFM for services it provides, a monthly fee that is a percentage of the investment advisory fees paid by each Trust to the Manager.

For the period August 1, 2010 through December 31, 2010, each Trust reimbursed the Manager for certain accounting services, which are included in accounting services in the Statements of Operations. The reimbursements were as follows:

BHK	$	1,668
HYV	$	1,496
HYT	$	1,558
HIS	$	452
BHD	$	761

Effective January 1, 2011, the Trusts no longer reimburse the Manager for accounting services.

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

4. Investments:

Purchases and sales of investments including paydowns, mortgage dollar roll and TBA transactions and excluding short-term securities and US government securities for the six months ended February 28, 2011, were as follows:

		Purchases		Sales
BHK	$	2,362,451,629	$	2,307,568,903
HYV	$	266,616,913	$	232,857,997
HYT	$	270,911,385	$	238,425,888
HIS	$	72,619,558	$	74,480,756
BHY	$	26,413,275	$	25,061,015
BNA	$	2,205,458,027	$	2,150,871,699
BKT	$	4,558,950,728	$	4,372,161,304
BHD	$	57,216,107	$	43,117,112

For the six months ended February 28, 2011, purchases and sales of US government securities were as follows:

	Purchases		Sales
BHK	$	894,549,157	$	884,443,787
BNA	$	789,952,029	$	778,467,525
BKT	$	641,530,144	$	632,431,928
BHD	$	3,318,085	$	1,011,208

For the six months ended February 28, 2011, purchases and sales of mortgage dollar rolls were as follows:

	Purchases		Sales
BHK	$	975,922,430	$	976,005,641
BNA	$	958,259,613	$	958,259,652
BKT	$	2,611,566,758	$	2,614,370,172

126 SEMI-ANNUAL REPORT FEBRUARY 28, 2011

Notes to Financial Statements (continued)

Transactions in options written for the six months ended February 28, 2011, were as follows:

	Calls									Puts
	Options Contracts			Swaptions Notional Amount (000)			Premium Received			Options Contracts			Swaptions Notional Amount (000)			Premium Received
BHK
Outstanding options, beginning of period		—		$	75,700		$	4,043,175			—		$	117,300		$	4,587,195
Options written		17,543			80,700			3,238,797			6,475			100,430			3,446,041
Options closed		(17,187	)		(32,500	)		(1,473,560	)		(98	)		(54,130	)		(1,081,088	)
Options exercised		—			(15,000	)		(798,750	)		(3	)		—			(930	)
Options expired		(160	)		(9,500	)		(183,464	)		(6,110	)		(38,600	)		(1,816,361	)
Outstanding options, end of period		196		$	99,400		$	4,826,198			264		$	125,000		$	5,134,857
HYV
Outstanding options, beginning of period		—		$	13,250		$	94,750			—		$	4,750		$	71,250
Options expired		—			(13,250	)		(94,750	)		—			(4,750	)		(71,250	)
Outstanding options, end of period		—			—			—			—			—			—
HYT
Outstanding options, beginning of period		—		$	13,950		$	99,750			—		$	5,000		$	75,000
Options expired		—			(13,950	)		(99,750	)		—			(5,000	)		75,000
Outstanding options, end of period		—			—			—			—			—			—
BHY
Outstanding options, beginning of period		—		$	1,500,000		$	10,800			—		$	550,000		$	8,250
Options expired		—			(1,500,000	)		(10,800	)		—			(550,000	)		(8,250	)
Outstanding options, end of period		—			—			—			—			—			—
BNA
Outstanding options, beginning of period		—		$	79,400		$	3,860,147			—		$	116,000		$	4,379,012
Options written		17,464			76,800			3,148,350			6,448			96,430			3,355,385
Options closed		(17,108	)		(30,100	)		(1,441,924	)		(6,082	)		(38,200	)		(1,795,761	)
Options exercised		—			(15,000	)		(798,750	)		(3	)		—			(930	)
Options expired		(160	)		(9,600	)		(183,989	)		(98	)		(47,230	)		(1,045,245	)
Outstanding options, end of period		196		$	101,500		$	4,583,834			265		$	127,000		$	4,892,461
BKT
Outstanding options, beginning of period		—		$	18,100		$	679,458			—		$	18,100		$	679,457
Options written		23,475			—			479,926			8,537			—			588,852
Options closed		(23,006	)		—			(235,599	)		(457	)		—			(290,058	)
Options exercised		—			—			—			(7,643	)		—			(90,756	)
Options expired		(201	)		—			(86,919	)		(134	)		—			(89,696	)
Outstanding options, end of period		268		$	18,100		$	836,866			303		$	18,100		$	797,799
BHD
Outstanding options, beginning of period		—		$	3,325		$	23,825			—		$	1,200		$	18,000
Options expired		—			(2,125	)		(10,625	)		—			(1,200	)		(18,000	)
Options exercised		—			(1,200	)		(13,200	)		—			—			—
Outstanding options, end of period		—			—			—			—			—			—

5. Capital Loss Carryforwards:

As of August 31, 2010, the Trusts had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:

Expires August 31,	BHK		HYV		HYT		HIS		BHY		BNA		BHD
2011		—		—		—	$	28,467,396	$	4,771,417		—		—
2012		—		—		—		2,339,279		316,410		—		—
2014	$	231,359		—	$	2,291,195		7,043,976		2,060,533	$	2,451,626	$	447,113
2015		—		—		564,489		—		2,467,772		2,342,921		—
2016		17,415,494	$	950,802		1,125,717		10,829,322		2,039,760		14,734,497		2,036,040
2017		7,416,000		37,231,421		40,815,806		3,140,056		916,541		7,369,088		930,008
2018		—		45,786,654		54,927,764		15,169,557		5,191,260		10,964,638		3,835,687
Total	$	25,062,853	$	83,968,877	$	99,724,971	$	66,989,586	$	17,763,693	$	37,862,770	$	7,248,848

SEMI-ANNUAL REPORT FEBRUARY 28, 2011 127

Notes to Financial Statements (continued)

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

6. Borrowings:

On March 4, 2010, the HYV, HYT, HIS, BHY and BHD 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 Trusts have granted a security interest in substantially all of their assets to SSB. The SSB Agreement allowed for the following maximum commitment amounts:

	Commitment Amounts
HYV	$	140,000,000
HYT	$	145,000,000
HIS	$	45,000,000
BHY	$	18,000,000
BHD	$	30,000,000

Advances were made by SSB to the Funds, at the Funds’ option of (a) the higher of (i) 1.0% above the Fed Funds rate and (ii) 1.0% above the Overnight LIBOR or (b) 1.0% above 7-day, 30-day, 60-day or 90-day LIBOR.

Effective March 3, 2011, the SSB Agreement was renewed for 364 days. The SSB Agreement allows for the following maximum commitment amounts:

	Commitment Amounts
HYV	$	204,500,000
HYT	$	213,800,000
HIS	$	63,600,000
BHY	$	23,000,000
BHD	$	50,200,000

Advances are made by SSB to the Trusts, at the Trusts’ option of (a) the higher of (i) 0.80% above the Fed Funds rate and (ii) 0.80% above the Overnight LIBOR or (b) 0.80% above 7-day, 30-day, 60-day or 90-day LIBOR. In addition, the Trusts pay a facility fee and a commitment fee based upon SSB’s total commitment to the Trusts. The fees associated with each of the agreements are included in the Statements of Operations as borrowing costs. Advances to the Trusts as of February 28, 2011 are shown in the Statements of Assets and Liabilities as loan payable.

The Trusts 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%.

During the six months ended February 28, 2011, BKT borrowed under the TALF. The TALF program was launched by the US Department of Treasury and the Federal Reserve Board as a credit facility designed to restore liquidity to the market for asset-backed securities. The Federal Reserve Bank of New York (“FRBNY”) provided up to $1 trillion in non-recourse loans to support the issuance of certain AAA-rated asset-backed securities and commercial mortgage-backed securities (“Eligible Securities”). The Trusts posted as collateral already-held Eligible Securities, which were all commercial mortgage-backed securities, in return for non-recourse, 5-year term loans (“TALF loans”) in an amount equal to approximately 85% of the value of such Eligible Securities.

	Number of Loans		Aggregate Value of Loan		Maturity Date		Interest Rate		Value of Eligible Security
BKT		1		$10,940,517		8/28/14		3.87%		$13,290,170

The non-recourse provision of the TALF loans allowed the Trusts to satisfy loan obligations with Eligible Securities, subject to certain conditions, even if the value of the Eligible Securities falls below the outstanding amount of the loan. The Trusts can repay TALF loans prior to the maturity dates with no penalty. Principal and interest due on the loans will typically be paid with principal paydowns and interest received from the Eligible Securities. Credit agreements underlying each loan contain provisions to address instances in which interest payments on Eligible Securities fall short of amounts due to the FRBNY. The Trusts paid to the FRBNY a one-time administration fee of 0.20% of the amount borrowed, which was expensed as incurred in the current period by the Trusts and is included in borrowing costs in the Statements of Operations. The Trusts also paid a financing fee equal to the 5-year LIBOR swap rate plus 1.00% on the outstanding loan amount payable monthly, which is included in interest expense in the Statements of Operations.

During the six months ended February 28, 2011, BHK and BNA repaid their outstanding TALF loans and the Eligible Securities posted as collateral were returned to the Trusts. The Trusts financed the repayment of the TALF loans by entering into reverse repurchase agreements.

Since the Trusts had the ability to potentially satisfy TALF loan obligations by surrendering Eligible Securities, potential losses by the Trusts associated with the TALF loans were limited to the difference between the amount of Eligible Securities posted at the time of loan initiation and the loan proceeds received by the Trusts.

The Trusts elected to account for the outstanding TALF loans at fair value. The Trusts elected to fair value its TALF loans to more closely align changes in the value of the TALF loans with changes in the value of the Eligible Securities and to reduce the potential volatility in the Statements of Operations which could result if only the Eligible Securities were fair valued. The TALF loans were valued utilizing quotations received from a board approved pricing service. TALF-eligible Asset-Backed Securities/Collateralized Mortgage-Backed Securities (“ABS/CMBS”) value may be affected by historic defaults and prepayments on the asset pool, expected future defaults and prepayments, current interest rate levels, current and forward modeled ABS/CMBS spread levels. Accordingly, TALF loan valuation methodologies may include, but are not limited to, the following inputs: (i) ABS/CMBS prepayment assumptions, (ii) discount rates and (iii) the non-recourse put option valuation. The resulting TALF loan valuation combines the present value of the future loan cash flows, plus the value of the non-recourse option. The change in unrealized gain or loss associated with fair valuing the TALF loans is reflected in the Statements of Operations.

128 SEMI-ANNUAL REPORT FEBRUARY 28, 2011

Notes to Financial Statements (continued)

For the six months ended February 28, 2011, the Trusts’ daily average amount of outstanding transactions considered as borrowings from reverse repurchase agreements, treasury roll transactions and TALF loans were as follows:

	Daily Weighted Average Interest Rate
BHK	0.27	%
BNA	0.25	%
BKT	0.88	%

For the six months ended February 28, 2011, the Trusts’ daily average amount of outstanding transactions considered as loans under the revolving credit agreements were as follows:

	Daily Weighted Average Interest Rate
HYV	1.25	%
HYT	1.25	%
HIS	1.24	%
BHY	1.25	%
BHD	1.25	%

7. Commitments:

The Trusts may invest in floating rate loan interests. In connection with these investments, the Trusts may also enter into unfunded loan commitments (“commitments”). Commitments may obligate the Trusts to furnish temporary financing to a borrower until permanent financing can be arranged. In connection with these commitments, the Trusts earns a commitment fee, typically set as a percentage of the commitment amount. Such fee income, which is classified in the Statements of Operations as facility and other fees, is recognized ratably over the commitment period. As of February 28, 2011, the Trusts had the following unfunded loan commitments:

Borrower	Unfunded Commitment		Value of Underlying Loan
HIS
Delphi International Holdings	$	36,829	$	35,724
BHY
Delphi International Holdings	$	72,738	$	70,556
HYV
Axcan Intermediate Holdings	$	500,000	$	501,563
Delphi International Holdings	$	1,277,361	$	1,239,040
HYT
Axcan Intermediate Holdings	$	500,000	$	504,056
Echostar DBS Corp	$	4,490,000	$	4,490,000
Delphi International Holdings	$	656,788	$	637,084
BHD
Delphi Automotive Systems Holdings	$	161,435	$	156,592
HIS
Delphi International Holdings	$	72,738	$	70,556

8. Concentration, Market and Credit Risk:

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

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

9. Capital Share Transactions:

There are 200 million of $0.01 par value shares authorized for BNA and BKT. There are an unlimited number of $0.001 par value shares authorized for BHK, BHY and BHD. There are an unlimited number of no par value shares authorized for HIS. There are 200 million of $0.10 par value shares authorized for HYV and HYT. The Board is authorized, however, to reclassify any unissued shares without approval of Common Shareholders.

For the six months ended February 28, 2011 and the year ended August 31, 2010, shares issued and outstanding increased by the following amounts as a result of dividend reinvestments:

	Six Months Ended February 28, 2011		Year Ended August 31, 2010
HYT		—		7,573

SEMI-ANNUAL REPORT FEBRUARY 28, 2011 129

Notes to Financial Statements (concluded)

Shares issued and outstanding remained constant during the six months ended February 28, 2011 and the year ended August 31, 2010 for HYV, HIS, BHY, BKT and BHD.

At February 28, 2011, the shares owned by affiliates of the Manager of the Trusts were as follows:

	Shares
HYV		20,002
HYT		16,603

10. Subsequent Events:

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

Each Trust paid a net investment income dividend on March 31, 2011 to shareholders of record on March 15, 2011 as follows:

	Common Dividend Per Share
BHK	$	0.0670
HYV	$	0.0850
HYT	$	0.0825
HIS	$	0.0142
BHY	$	0.0435
BNA	$	0.0510
BKT	$	0.0265
BHD	$	0.0845

130 SEMI-ANNUAL REPORT FEBRUARY 28, 2011

Officers and Trustees

Richard E. Cavanagh, Chairman of the Board and Trustee

Karen P. Robards, Vice Chair of the Board, Chair of the Audit Committee and Trustee

Richard S. Davis, Trustee

Frank J. Fabozzi, Trustee and Member of the Audit Committee

Kathleen F. Feldstein, Trustee

James T. Flynn, Trustee and Member of the Audit Committee

Henry Gabbay, Trustee

Jerrold B. Harris, Trustee

R. Glenn Hubbard, Trustee

W. Carl Kester, Trustee and Member of the Audit Committee

John M. Perlowski, President and Chief Executive Officer

Brendan Kyne, Vice President

Anne Ackerley, Vice President

Neal Andrews, Chief Financial Officer

Jay Fife, Treasurer

Brian Kindelan, Chief Compliance Officer

Ira Shapiro, Secretary

Investment Advisor

BlackRock Advisors, LLC

Wilmington, DE 19809

Sub-Advisor¹

BlackRock Financial Management, Inc.

New York, NY 10055

Custodian

State Street Bank and Trust Company

Boston, MA 02111

Transfer Agent

Computershare Trust Company, N.A.

Providence, RI 02940

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 Trusts

100 Bellevue Parkway

Wilmington, DE 19809

¹ For BHK, HYV, HYT, HIS and BHD.

Effective February 11, 2011, John M. Perlowski became President and Chief Executive Officer of the Trusts.

Effective November 10, 2010, Ira Shapiro became Secretary of the Trusts.

SEMI-ANNUAL REPORT FEBRUARY 28, 2011 131

Additional Information

Proxy Results

The Annual Meeting of Shareholders was held on September 2, 2010 for shareholders of record on July 6, 2010, to elect trustee/director nominees for each Trust/Fund. There were no broker non-votes with regard to any of the Trusts/Funds.

Approved the Class III Trustees/Directors as follows:

	Richard E. Cavanagh						Kathleen F. Feldstein						Henry Gabbay
	Votes For		Votes Withheld		Abstain		Votes For		Votes Withheld		Abstain		Votes For		Votes Withheld		Abstain
BHK		22,182,721		302,077		0		22,096,470		388,328		0		22,169,823		314,975		0
HIS		41,140,138		1,171,553		0		41,118,883		1,192,808		0		41,062,221		1,249,470		0
BHY		5,786,870		101,056		0		5,776,683		111,243		0		5,785,713		102,213		0
BNA		26,756,239		449,047		0		26,683,571		521,715		0		26,713,163		492,123		0
BKT		54,479,971		1,380,821		0		54,422,061		1,438,731		0		54,499,527		1,361,265		0
BHD		6,243,777		111,281		0		6,226,172		128,886		0		6,221,200		133,858		0
	Jerrold B. Harris
	Votes For		Votes Withheld		Abstain
BHK		22,135,515		349,283		0
HIS		41,119,275		1,192,416		0
BHY		5,782,807		105,119		0
BNA		26,729,916		475,370		0
BKT		54,479,121		1,381,671		0
BHD		6,212,740		142,318		0

For the Trusts listed above, Trustees whose term of office continued after the Annual Meeting of Shareholders because they were not up for election are Richard S. Davis, Frank J. Fabozzi, James T. Flynn, R. Glenn Hubbard, W. Carl Kester and Karen P. Robards.

Approved the Directors as follows:

	Richard E. Cavanagh						Richard S. Davis						Frank J. Fabozzi
	Votes For		Votes Withheld		Abstain		Votes For		Votes Withheld		Abstain		Votes For		Votes Withheld		Abstain
HYV		25,143,237		493,848		0		25,118,999		518,086		0		25,153,295		483,790		0
HYT		26,888,478		445,143		0		26,878,773		454,848		0		26,867,758		465,863		0
	Kathleen F. Feldstein						James T. Flynn						Henry Gabbay
	Votes For		Votes Withheld		Abstain		Votes For		Votes Withheld		Abstain		Votes For		Votes Withheld		Abstain
HYV		25,083,274		553,811		0		25,128,740		508,345		0		25,151,093		485,992		0
HYT		26,857,353		476,268		0		26,874,458		459,163		0		26,889,726		443,895		0
	Jerrold B. Harris						R. Glenn Hubbard						W. Carl Kester
	Votes For		Votes Withheld		Abstain		Votes For		Votes Withheld		Abstain		Votes For		Votes Withheld		Abstain
HYV		25,095,704		541,381		0		25,128,814		508,271		0		25,141,106		495,979		0
HYT		26,868,308		465,313		0		26,836,841		496,780		0		26,869,654		463,967		0
	Karen P. Robards
	Votes For		Votes Withheld		Abstain
HYV		25,111,603		525,482		0
HYT		26,892,679		440,942		0

132 SEMI-ANNUAL REPORT FEBRUARY 28, 2011

Additional Information (continued)

Dividend Policy

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

General Information

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

During the period, there were no materIal changes in the Trusts’ investment objectives or policies or to the Trusts’ charter or by-laws that would delay or prevent a change of control of the Trusts that were not approved by shareholders or in the principal risk factors associated with investment in the Trusts. Other than as disclosed below, there have been no changes in the persons who are primarily responsible for the day-to-day management of the Trusts’ portfolio.

Quarterly performance, semi-annual and annual reports and other information regarding the Trusts may be found on BlackRock’s website, which can be accessed at http://www.blackrock.com. This reference to BlackRock’s website is intended to allow investors public access to information regarding the Trusts 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 Trusts’ website or shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual reports by enrolling in the Trusts’ 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 Trusts will mail only one copy of shareholder documents, including annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call (800) 441-7762.

Availability of Quarterly Schedule of Investments

Each Trust files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Trusts’ 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 Trust’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 Trusts use to determine how to vote proxies relating to portfolio securities is available (1) without charge, upon request, by calling (800) 441-7762;
(2) at http://www.blackrock.com; and (3) on the SEC’s website at http://www.sec.gov.

Availability of Proxy Voting Record

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

Availability of Trust Updates

BlackRock will update performance and certain other data for the Trusts on a monthly basis on its website in the “Closed-end Funds” section of http://www.blackrock.com. Investors and others are advised to periodically check the website for updated performance information and the release of other material information about the Trusts.

SEMI-ANNUAL REPORT FEBRUARY 28, 2011 133

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 Trust’s investment experience during the year and may be subject to changes based on the tax regulations. Each Trust will provide a Form 1099-DIV each calendar year that will explain the character of these dividends and distributions for federal income tax purposes.

February 28, 2011
	Total Cumulative Distributions for the Fiscal Year-to-Date								% Breakdown of the Total Cumulative Distributions for the Fiscal Year-to-Date
	Net Investment Income		Net Realized Capital Gains		Return of Capital		Total Per Common Share		Net Investment Income			Net Realized Capital Gains			Return of Capital			Total Per Common Share
BHY	$	0.2610		—		—	$	0.2610		100	%		0	%		0	%		100	%
BKT	$	0.1515		—		—	$	0.1515		100	%		0	%		0	%		100	%

Each Trust 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 Trust is returned to the shareholder. A return of capital does not necessarily reflect a Trust’s investment performance and should not be confused with ‘yield’ or ‘income.’

134 SEMI-ANNUAL REPORT FEBRUARY 28, 2011

Additional Information (concluded)

BlackRock Privacy Principles

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

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

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

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

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

SEMI-ANNUAL REPORT FEBRUARY 28, 2011 135

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 Trusts have leveraged their Common Shares, which creates risks for Common Shareholders, including the likelihood of greater volatility of net asset value and market price of the 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.

#CEF-1-8-02/11

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
	(a) Not Applicable to this semi-annual report
	(b) As of the date of this filing, there have been no changes in any of the portfolio managers identified in the most recent annual report on Form N-CSR.
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 – There have been no material changes to these procedures.
Item 11 –	Controls and Procedures
	(a) – The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.
	(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
	(a)(1) – Code of Ethics – Not Applicable to this semi-annual report
	(a)(2) – Certifications – Attached hereto
	(a)(3) – Not Applicable
	(b) – Certifications – Attached hereto

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
BlackRock Strategic Bond Trust
By:	/s/ John M. Perlowski
	John M. Perlowski
	Chief Executive Officer (principal executive officer) of
	BlackRock Strategic Bond Trust
Date: May 4, 2011
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By:	/s/ John M. Perlowski
	John M. Perlowski
	Chief Executive Officer (principal executive officer) of
	BlackRock Strategic Bond Trust
Date: May 4, 2011
By:	/s/ Neal J. Andrews
	Neal J. Andrews
	Chief Financial Officer (principal financial officer) of
	BlackRock Strategic Bond Trust
Date: May 4, 2011