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: 08/31/2012

Date of reporting period: 02/29/2012

Item 1 – Report to Stockholders

February 29, 2012

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	99
Statements of Operations	103
Statements of Changes in Net Assets	105
Statements of Cash Flows	107
Financial Highlights	109
Notes to Financial Statements	117
Officers and Trustees	132
Additional Information	133

2 SEMI-ANNUAL REPORT FEBRUARY 29, 2012

Dear Shareholder

Risk assets were advancing at this time last year despite a wave of geopolitical revolutions, soaring oil prices and natural disasters in Japan. Markets reversed sharply in May, however, when escalating political strife in Greece rekindled fears about sovereign debt problems spreading across Europe. Concurrently, global economic indicators signaled that the recovery had slowed. Confidence was further shaken by the prolonged debt ceiling debate in Washington, DC. On August 5, 2011, Standard & Poor’s downgraded the US government’s credit rating and turmoil erupted in financial markets around the world. Extraordinary levels of volatility persisted in the months that followed as Greece teetered on the brink of default, debt problems escalated in Italy and Spain, and exposure to European sovereign bonds stressed banks globally. Financial markets whipsawed on hopes and fears. Macro news flow became a greater influence on trading decisions than the fundamentals of the securities traded. By the end of the third quarter, equity markets had fallen nearly 20% from their April peak while safe-haven assets such as US Treasuries and gold had rallied to historic highs.

October brought enough positive economic data to assuage fears of a global double-dip recession. Additionally, European leaders began to show progress toward stemming the region’s debt crisis. Investors began to reenter the markets and risk assets recovered through the month. But a lack of definitive details about Europe’s rescue plan eventually raised doubts among investors and thwarted the rally at the end of October. The last two months of 2011 saw more political instability in Greece, unsustainable yields on Italian government bonds, and US policymakers in gridlock over budget issues. Global central bank actions and improving economic data invigorated the markets, but investor confidence was easily tempered by sobering news flow.

Investors showed more optimism at the start of 2012. Risk assets rallied through January and February as economic data grew stronger and debt problems in Europe stabilized. In the United States, jobs data signaled solid improvement in the labor market and the Federal Reserve indicated that it would keep short-term interest rates low through 2014. In Europe, policymakers made significant progress toward securing a Greek bailout plan and restructuring the nation’s debt. Nevertheless, considerable head-winds remain. Europe faces a prolonged recession, the US economy still remains somewhat shaky and the risks of additional flare ups of euro-zone debt problems and slowing growth in China weigh heavily on the future of the global economy.

Risk assets, including equities and high yield bonds, recovered their late-summer losses and posted strong returns for the 6-month period ended February 29, 2012. On a 12-month basis, US large-cap stocks and high yield bonds delivered positive results, while small-cap and emerging-market stocks finished slightly negative. International markets, which experienced some significant downturns in 2011, lagged the broader rebound. Fixed income securities, which benefited from declining yields, advanced over the 6- and 12-month periods. Despite their quality rating downgrade, US Treasury bonds performed particularly well. Municipal bonds also delivered superior results. Continued low short-term interest rates kept yields on money market securities near their all-time lows.

Many of the themes that caused uncertainty in 2011 remain. For investors, the risks appear daunting, but this challenging environment offers new opportunities. BlackRock was built for these times. Visit blackrock.com/newworld for more information.

Sincerely,

Rob Kapito
President, BlackRock Advisors, LLC

“For investors, the risks appear daunting, but this challenging environment offers new opportunities. BlackRock was built for these times.”

Rob Kapito
President, BlackRock Advisors, LLC

Total Returns as of February 29, 2012

	6-month		12-month
US large cap equities (S&P 500® Index)	13.31	%	5.12	%
US small cap equities (Russell 2000® Index)	12.40		(0.15	)
International equities (MSCI Europe, Australasia, Far East Index)	4.13		(7.45	)
Emerging market equities (MSCI Emerging Markets Index)	5.27		(0.11	)
3-month Treasury bill (BofA Merrill Lynch 3-Month Treasury Bill Index)	0.00		0.08
US Treasury securities (BofA Merrill Lynch 10- Year US Treasury Index)	3.70		17.22
US investment grade bonds (Barclays US Aggregate Bond Index)	2.73		8.37
Tax-exempt municipal bonds (S&P Municipal Bond Index)	5.93		12.88
US high yield bonds (Barclays US Corporate High Yield 2% Issuer Capped Index)	8.62		6.92
Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.

THIS PAGE NOT PART OF YOUR FUND REPORT 3

Trust Summary as of February 29, 2012 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 29, 2012, the Trust returned 15.20% based on market price and 8.63% based on net asset value (“NAV”). For the same period, the closed-end Lipper Corporate Debt Funds BBB-Rated category posted an average return of 8.84% based on market price and 5.79% based on NAV. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which narrowed 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?
•	Spread sectors outperformed government-related debt for the six-month period as improving US economic fundamentals and accommodative monetary policy provided a backdrop conducive for credit spread compression. As a result, the Trust benefited from its allocations to investment grade credit and high yield corporate credit. Within corporate credit, relative value trading in industrials was additive to performance. The Trust also benefited from exposure to commercial mortgage-backed securities (“CMBS”), which outperformed most other securitized debt sectors. Finally, the Trust’s duration stance (sensitivity to interest rate movements) contributed to returns as rates generally moved lower throughout the period.
•	The Trust actively traded exposure to financials within investment grade credit. Although these positions performed well toward period end, the overall effect was a drag on performance as European sovereign debt fear caused weakness in US financial names.
Describe recent portfolio activity.
•	During the period, the Trust reduced its allocation to investment grade securities in the banking industry while increasing exposure to companies with strong cash flow and high earnings visibility in the energy and telecommunications space. Toward period end, the Trust increased its portfolio duration, primarily by adding exposure to US Treasury bonds.
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, asset-backed securities and non-agency residential mortgage-backed securities (“MBS”). The Trust also held allocations to government-related sectors such as US Treasuries, agency debt and agency MBS. The Trust ended the reporting period with a long duration profile.

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 29, 2012

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 29, 2012 ($14.19)1	5.67%
Current Monthly Distribution per Common Share2	$0.067
Current Annualized Distribution per Common Share2	$0.804
Economic Leverage as of February 29, 20123	29%

1	Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2	The distribution rate is not constant and is subject to change.
3	Represents 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:

	2/29/12	8/31/11	Change	High	Low
Market Price	$14.19	$12.69	11.82%	$14.24	$12.59
Net Asset Value	$14.53	$13.78	5.44%	$14.56	$13.65

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
	2/29/12		8/31/11
Corporate Bonds	53	%	52	%
US Treasury Obligations	22		16
Non-Agency Mortgage-Backed Securities	11		12
US Government Sponsored Agency Securities	5		13
Asset-Backed Securities	5		4
Foreign Agency Obligations	2		1
Taxable Municipal Bonds	1		1
Preferred Securities	1		1
Credit Quality Allocations4
	2/29/12		8/31/11
AAA/Aaa5	38	%	40	%
AA/Aa	6		8
A	18		17
BBB/Baa	16		16
BB/Ba	9		6
B	10		11
CCC/Caa	2		2
Not Rated	1		—

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

SEMI-ANNUAL REPORT FEBRUARY 29, 2012 5

Trust Summary as of February 29, 2012 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 29, 2012, the Trust returned 16.85% based on market price and 11.05% based on NAV. For the same period, the closed-end Lipper High Current Yield Funds (Leveraged) category posted an average return of 13.38% based on market price and 10.05% based on NAV. All returns reflect reinvestment of dividends. The Trust moved from a discount to NAV to a premium by period end, which accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.
What factors influenced performance?
•	The Trust delivered strong returns for the six-month period as risk assets rallied. High yield debt posted solid gains, outpacing government, emerging market and investment grade corporate sectors. Across the high yield credit spectrum, security selection in the mid- to higher-quality tiers boosted the Trust’s returns. Among sectors, security selection in the consumer service and non-captive diversified financials was rewarding. The Trust’s exposure to Delphi Automotive Plc stock received in connection with the company’s reorganization also added to performance.
•	Detracting from performance was the Trust’s tactical allocations to bank loans and investment grade credit, which underperformed relative to high yield debt in the risk asset rally. Exposure to select lower- and non-rated names in the high yield market hurt performance, as did security selection in the paper, metals & mining and non-cable media sectors.
Describe recent portfolio activity.
•	The period began with severe market volatility in reaction to headwinds from Europe’s debt crisis and a possible US government shut-down. However, the environment shifted in December when the European Central Bank announced a long-term refinancing operation. This liquidity program provided a much-needed short-term panacea for the financial markets and mitigated the risk of a collapse in the European banking system. Moreover, it was the catalyst for a positive turn in the valuation of risk assets.
•	Given these developments, the Trust maintained its higher-quality income- oriented bias, but started selectively adding back some risk in names with appealing risk-reward characteristics. Despite this modest shift to “risk-on,” the Trust continued to seek issuers with superior fundamentals (solid cash flows, earnings visibility and attractive downside protection), while generally remaining cautious of higher-beta credits (i.e., those with higher sensitivity to market volatility) and the more cyclical sectors.
Describe portfolio positioning at period end.
•	At period end, the Trust held 76% of its total portfolio in corporate bonds, 15% in floating rate loan interests (bank loans), with the remainder in common stocks, preferred stocks and other interests. The Trust’s largest sector exposures included non-cable media, wireless and independent energy, while its portfolio holdings reflected less emphasis on the more cyclical segments of the market such as gaming, building materials and technology. The Trust ended the period with economic leverage at 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 29, 2012

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 29, 2012 ($12.88)1	8.01%
Current Monthly Distribution per Common Share2	$0.086
Current Annualized Distribution per Common Share2	$1.032
Economic Leverage as of February 29, 20123	24%

1	Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2	The distribution rate is not constant and is subject to change.
3	Represents 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:

	2/29/12	8/31/11	Change	High	Low
Market Price	$12.88	$11.55	11.52%	$13.05	$10.13
Net Asset Value	$12.41	$11.71	5.98%	$12.41	$10.91

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
	2/29/12			8/31/11
Corporate Bonds		76	%		79	%
Floating Rate Loan Interests		15			13
Common Stocks		7			3
Preferred Stocks		2			2
Other Interests		—			3
Credit Quality Allocations4
	2/29/12			8/31/11
A		1	%		—
BBB/Baa		7			7	%
BB/Ba		38			34
B		43			45
CCC/Caa		10			11
D		—			1
Not Rated		1			2

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

SEMI-ANNUAL REPORT FEBRUARY 29, 2012 7

Trust Summary as of February 29, 2012	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 29, 2012, the Trust returned 16.21% based on market price and 10.55% based on NAV. For the same period, the closed-end Lipper High Current Yield Funds (Leveraged) category posted an average return of 13.38% based on market price and 10.05% based on NAV. All returns reflect reinvestment of dividends. The Trust moved from a discount to NAV to a premium by period end, which accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.
	What factors influenced performance?
•	The Trust delivered strong returns for the six-month period as risk assets rallied. High yield debt posted solid gains, outpacing government, emerging market and investment grade corporate sectors. Across the high yield credit spectrum, security selection in the mid- to higher-quality tiers boosted the Trust’s returns. Among sectors, security selection in the consumer service and non-captive diversified financials was rewarding. The Trust’s exposure to Delphi Automotive Plc stock received in connection with the company’s reorganization also added to performance.
•	Detracting from performance was the Trust’s tactical allocations to bank loans and investment grade credit, which underperformed relative to high yield debt in the risk asset rally. Exposure to select lower- and non-rated names in the high yield market hurt performance, as did security selection in the paper, metals & mining and non-cable media sectors.
	Describe recent portfolio activity.
•	The period began with severe market volatility in reaction to headwinds from Europe’s debt crisis and a possible US government shut-down. However, the environment shifted in December when the European Central Bank announced a long-term refinancing operation. This liquidity program provided a much-needed short-term panacea for the financial markets and mitigated the risk of a collapse in the European banking system. Moreover, it was the catalyst for a positive turn in the valuation of risk assets.
•	Given these developments, the Trust maintained its higher-quality income-oriented bias, but started selectively adding back some risk in names with appealing risk-reward characteristics. Despite this modest shift to “risk-on,” the Trust continued to seek issuers with superior fundamentals (solid cash flows, earnings visibility and attractive downside protection), while generally remaining cautious of higher-beta credits (i.e., those with higher sensitivity to market volatility) and the more cyclical sectors.
	Describe portfolio positioning at period end.
•	At period end, the Trust held 77% of its total portfolio in corporate bonds, 15% in floating rate loan interests (bank loans), with the remainder in common stocks, preferred stocks and other interests. The Trust’s largest sector exposures included non-cable media, wireless and independent energy, while its portfolio holdings reflected less emphasis on the more cyclical segments of the market such as gaming, building materials and technology. The Trust ended the period with economic leverage at 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.

8 SEMI-ANNUAL REPORT FEBRUARY 29, 2012

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 29, 2012 ($12.44)1	8.05%
Current Monthly Distribution per Common Share2	$0.0835
Current Annualized Distribution per Common Share2	$1.0020
Economic Leverage as of February 29, 20123	24%

1	Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2	The distribution rate is not constant and is subject to change.
3	Represents 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:

	2/29/12	8/31/11	Change	High	Low
Market Price	$12.44	$11.21	10.97%	$12.67	$  9.95
Net Asset Value	$12.13	$11.49	5.57%	$12.13	$10.72

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
	2/29/12			8/31/11
Corporate Bonds		77	%		79	%
Floating Rate Loan Interests		15			13
Common Stocks		6			3
Preferred Stocks		2			2
Other Interests		—			3
Credit Quality Allocations4
	2/29/12			8/31/11
A		1	%		—
BBB/Baa		6			7	%
BB/Ba		38			35
B		43			45
CCC/Caa		11			11
D		—			1
Not Rated		1			1

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

SEMI-ANNUAL REPORT FEBRUARY 29, 2012 9

Trust Summary as of February 29, 2012	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 29, 2012, the Trust returned 16.70% based on market price and 8.54% based on NAV. For the same period, the closed-end Lipper High Current Yield Funds (Leveraged) category posted an average return of 13.38% based on market price and 10.05% based on NAV. All returns reflect reinvestment of dividends. The Trust moved from a discount to NAV to a premium by period end, which accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.
	What factors influenced performance?
•	The Trust delivered strong returns for the six-month period as risk assets rallied. High yield debt posted solid gains, outpacing government, emerging market and investment grade corporate sectors. Across the high yield credit spectrum, security selection in the higher-quality tiers boosted the Trust’s returns. Among sectors, security selection in the consumer service and non-captive diversified financials was rewarding. The Trust’s exposure to preferred stock also added to performance.
•	Detracting from performance was the Trust’s tactical allocations to bank loans and investment grade credit, which underperformed relative to high yield debt in the risk asset rally. Exposure to select mid-, lower- and non-rated names in the high yield market hurt performance, as did security selection in the paper, metals & mining and non-cable media sectors.
	Describe recent portfolio activity.
•	The period began with severe market volatility in reaction to headwinds from Europe’s debt crisis and a possible US government shut-down. However, the environment shifted in December when the European Central Bank announced a long-term refinancing operation. This liquidity program provided a much-needed short-term panacea for the financial markets and mitigated the risk of a collapse in the European banking system. Moreover, it was the catalyst for a positive turn in the valuation of risk assets.
•	Given these developments, the Trust maintained its higher-quality income- oriented bias, but started selectively adding back some risk in names with appealing risk-reward characteristics. Despite this modest shift to “risk-on,” the Trust continued to seek issuers with superior fundamentals (solid cash flows, earnings visibility and attractive downside protection), while generally remaining cautious of higher-beta credits (i.e., those with higher sensitivity to market volatility) and the more cyclical sectors.
	Describe portfolio positioning at period end.
•	At period end, the Trust held 81% of its total portfolio in corporate bonds, 16% in floating rate loan interests (bank loans), with the remainder in preferred securities and common stocks. The Trust’s largest sector exposures included non-cable media, wireless and independent energy, while its portfolio holdings reflected less emphasis on the more cyclical segments of the market such as gaming, building materials and technology. The Trust ended the period with economic leverage at 19% 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 29, 2012

BlackRock High Income Shares

Trust Information
Symbol on NYSE		HIS
Initial Offering Date	August 10, 1988
Yield on Closing Market Price as of February 29, 2012 ($2.32)1		7.34%
Current Monthly Distribution per Common Share2	$	0.0142
Current Annualized Distribution per Common Share2	$	0.1704
Economic Leverage as of February 29, 20123		19%

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:

	2/29/12		8/31/11		Change			High		Low
Market Price	$	2.32	$	2.10		10.48	%	$	2.35	$	1.81
Net Asset Value	$	2.24	$	2.18		2.75	%	$	2.24	$	2.04

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
	2/29/12			8/31/11
Corporate Bonds		81	%		83	%
Floating Rate Loan Interests		16			14
Preferred Securities		2			2
Common Stocks		1			1

Credit Quality Allocations4
	2/29/12			8/31/11
A		1	%		—
BBB/Baa		7			7	%
BB/Ba		38			34
B		41			45
CCC/Caa		12			12
D		—			1
Not Rated		1			1

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

SEMI-ANNUAL REPORT
FEBRUARY 29, 2012
11

Trust Summary as of February 29, 2012 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 29, 2012, the Trust returned 13.56% based on market price and 10.07% based on NAV. For the same period, the closed-end Lipper High Current Yield Funds (Leveraged) category posted an average return of 13.38% based on market price and 10.05% based on NAV. All returns reflect reinvestment of dividends. The Trust moved from a discount to NAV to a premium by period end, which accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.
	What factors influenced performance?
•	The Trust delivered strong returns for the six-month period as risk assets rallied. High yield debt posted solid gains, outpacing government, emerging market and investment grade corporate sectors. Across the high yield credit spectrum, security selection in the higher-quality tiers and among non-rated investments boosted the Trust’s returns. Among sectors, security selection in the consumer service and non-captive diversified financials was rewarding. The Trust’s exposure to Delphi Automotive Plc stock received in connection with the company’s reorganization also added to performance.
•	Detracting from performance was the Trust’s tactical allocations to bank loans and investment grade credit, which underperformed relative to high yield debt in the risk asset rally. Exposure to select lower-rated names in the high yield market hurt performance, as did security selection in the paper and non-cable media sectors.
	Describe recent portfolio activity.
•	The period began with severe market volatility in reaction to headwinds from Europe’s debt crisis and a possible US government shut-down. However, the environment shifted in December when the European Central Bank announced a long-term refinancing operation. This liquidity program provided a much-needed short-term panacea for the financial markets and mitigated the risk of a collapse in the European banking system. Moreover, it was the catalyst for a positive turn in the valuation of risk assets.
•	Given these developments, the Trust maintained its higher-quality income- oriented bias, but started selectively adding back some risk in names with appealing risk-reward characteristics. Despite this modest shift to “risk-on,” the Trust continued to seek issuers with superior fundamentals (solid cash flows, earnings visibility and attractive downside protection), while generally remaining cautious of higher-beta credits (i.e., those with higher sensitivity to market volatility) and the more cyclical sectors.
	Describe portfolio positioning at period end.
•	At period end, the Trust held 79% of its total portfolio in corporate bonds, 16% in floating rate loan interests (bank loans), with the remainder in common stocks and other interests. The Trust’s largest sector exposures included non-cable media, wireless and independent energy, while its portfolio holdings reflected less emphasis on the more cyclical segments of the market such as banking, building materials and technology. The Trust ended the period with economic leverage at 21% 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 29, 2012

BlackRock High Yield Trust

Trust Information
Symbol on NYSE		BHY
Initial Offering Date	December 23, 1998
Yield on Closing Market Price as of February 29, 2012 ($7.21)1		7.24%
Current Monthly Distribution per Common Share2	$	0.0435
Current Annualized Distribution per Common Share2	$	0.5220
Economic Leverage as of February 29, 20123		21%

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:

	2/29/12		8/31/11		Change		High		Low
Market Price	$	7.21	$	6.60		9.24%	$	7.25	$	5.92
Net Asset Value	$	7.19	$	6.79		5.89%	$	7.19	$	6.36

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
	2/29/12			8/31/11
Corporate Bonds		79	%		82	%
Floating Rate Loan Interests		16			15
Common Stocks		3			—
Preferred Securities		2			1
Other Interests		—			2

Credit Quality Allocations4
	2/29/12			8/31/11
A		1	%		—
BBB/Baa		6			8	%
BB/Ba		40			35
B		42			46
CCC/Caa		9			9
D		—			1
Not Rated		2			1

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

SEMI-ANNUAL REPORT FEBRUARY 29, 2012 13

Trust Summary as of February 29, 2012 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 29, 2012, the Trust returned 12.86% based on market price and 8.48% based on NAV. For the same period, the closed-end Lipper Corporate Debt Funds BBB-Rated category posted an average return of 8.84% based on market price and 5.79% based on NAV. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which narrowed 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?
•	Spread sectors outperformed government-related debt for the six-month period as improving US economic fundamentals and accommodative monetary policy provided a backdrop conducive for credit spread compression. As a result, the Trust benefited from its allocations to investment grade credit and high yield corporate credit. Within corporate credit, relative value trading in industrials was additive to performance. The Trust also benefited from exposure to commercial mortgage-backed securities (“CMBS”), which outperformed most other securitized debt sectors. Finally, the Trust’s duration stance (sensitivity to interest rate movements) contributed to returns as rates generally moved lower throughout the period.
•	The Trust actively traded exposure to financials within investment grade credit. Although these positions performed well toward period end, the overall effect was a drag on performance as European sovereign debt fear caused weakness in US financial names.
	Describe recent portfolio activity.
•	During the period, the Trust reduced its allocation to investment grade securities in the banking industry while increasing exposure to companies with strong cash flow and high earnings visibility in the energy and telecommunications space. Toward period end, the Trust increased its portfolio duration, primarily by adding exposure to US Treasury bonds.
	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, asset-backed securities and non-agency residential mortgage-backed securities (“MBS”). The Trust also held allocations to government-related sectors such as US Treasuries, agency debt and agency MBS. The Trust ended the reporting period with a long duration profile.

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 29, 2012

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 29, 2012 ($10.78)1	5.90%
Current Monthly Distribution per Common Share2	$0.053
Current Annualized Distribution per Common Share2	$0.636
Economic Leverage as of February 29, 20123	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:

	2/29/12	8/31/11	Change	High	Low
Market Price	$10.78	$  9.85	9.44%	$10.81	$  9.66
Net Asset Value	$11.33	$10.77	5.20%	$11.37	$10.68

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
	2/29/12			8/31/11
Corporate Bonds		52	%		52	%
US Treasury Obligations		24			16
Non-Agency Mortgage-Backed Securities		10			12
US Government Sponsored Agency Securities		5			13
Asset-Backed Securities		4			4
Foreign Agency Obligations		2			1
Taxable Municipal Bonds		2			1
Preferred Securities		1			1
Credit Quality Allocations4
	2/29/12			8/31/11
AAA/Aaa5		40	%		40	%
AA/Aa		5			7
A		17			19
BBB/Baa		18			16
BB/Ba		8			7
B		9			9
CCC/Caa		2			2
Not Rated		1			—

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

SEMI-ANNUAL REPORT FEBRUARY 29, 2012 15

Trust Summary as of February 29, 2012	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 29, 2012, the Trust returned 8.48% based on market price and 3.29% based on NAV. For the same period, the closed-end Lipper US Mortgage Funds category posted an average return of 5.62% based on market price and 4.03% based on NAV. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which narrowed 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 agency mortgage-backed securities (“MBS”) sector exhibited elevated volatility during the period as debt problems in Europe weighed on market sentiment and the future of government policy on mortgage pre-payment remained uncertain. While these headwinds challenged the sector, the US Federal Reserve’s MBS purchase program provided support, and agency MBS outperformed US Treasuries for the period. Given these market conditions, the Trust benefited from increasing its allocation to pre-payment-sensitive agency MBS during the fourth quarter of 2011 after spreads widened in the space due to increased policy risk. These purchases were focused on securities where the impact of the potential policy changes would be limited while their spread widening was commensurate with the rest of the sector. These holdings were significant contributors to the Trust’s performance as they generated strong returns in the first two months of 2012.
•	Detracting slightly from performance were the Trust’s interest rate hedges designed to protect the portfolio from market volatility. The Trust uses interest rate derivatives including futures, options, swaps and swaptions, mainly for the purpose of managing duration, convexity and yield curve positioning. During the period, the Trust held short positions in US Treasury futures in order to reduce the overall duration profile of the portfolio. These positions served as a drag on performance as the US Treasury market broadly advanced during the period.
	Describe recent portfolio activity.
•	The Trust increased its allocation to agency MBS in the fourth quarter of 2011, as discussed above. Near the end of the period, the Trust took profits on these holdings. The sales were mainly among the lower-coupon securities, where the potential for their extension was greatest. The Trust maintained a strong level of yield by increasing exposure to pre-payment-sensitive securities. The Trust also maintained a limited exposure to commercial mortgage-backed securities (“CMBS”), which performed well later in the period. The Trust slightly reduced its small allocation to non-agency MBS.
	Describe portfolio positioning at period end.
•	The backdrop for agency MBS appears constructive given the impact of the Federal Reserve’s mortgage reinvestment program in curtailing net supply along with the pending conclusion of the US Treasury portfolio liquidation, subdued mortgage refinance and purchase activity, and the sector’s attractive yields relative to other high-quality asset classes in a low interest rate environment. However, the extension potential for lower-coupon agency MBS remains high and, therefore, the Trust maintains a cautious stance. The Trust maintains exposure to high-quality agency MBS with varying maturities and coupon rates. The Trust also holds small allocations to non-agency MBS and CMBS. The Trust ended the reporting period with a slightly short duration profile.
	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 29, 2012

BlackRock Income Trust, Inc.

Trust Information

Symbol on NYSE	BKT
Initial Offering Date	July 22, 1988
Yield on Closing Market Price as of February 29, 2012 ($7.55)1	6.44%
Current Monthly Distribution per Common Share2	$0.0405
Current Annualized Distribution per Common Share2	$0.4860
Economic Leverage as of February 29, 20123	24%

1	Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2	The distribution rate is not constant and is subject to change.
3	Represents reverse repurchase agreements 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:

	2/29/12	8/31/11	Change	High	Low
Market Price	$7.55	$7.18	5.15%	$7.58	$7.00
Net Asset Value	$7.97	$7.96	0.13%	$8.12	$7.95

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

Portfolio Composition
	2/29/12			8/31/11
US Government Sponsored Agency Securities		82	%		84	%
US Treasury Obligations		15			12
Non-Agency Mortgage-Backed Securities		2			3
Asset-Backed Securities		1			1
Credit Quality Allocations4
	2/29/12			8/31/11
AAA/Aaa5		100	%		100	%

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

SEMI-ANNUAL REPORT FEBRUARY 29, 2012 17

Trust Summary as of February 29, 2012	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 29, 2012, the Trust returned 12.07% based on market price and 10.13% based on NAV. For the same period, the closed-end Lipper High Current Yield Funds (Leveraged) category posted an average return of 13.38% based on market price and 10.05% based on NAV. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which narrowed 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?
•	Security selection among higher-quality credit instruments had a positive impact on the Trust’s performance. While the surge in risk assets benefited overall performance, the Trust’s tactical exposure to equity securities was particularly helpful as equities outperformed high yield bonds, bank loans and investment grade credits amid improving investor demand for riskier assets over the six-month period.
•	The Trust differs from its Lipper category competitors,which invest primarily in high yield bonds, in that the Trust also invests in floating rate loan interests (bank loans) and investment grade credits. While the Trust’s allocations to bank loans and investment grade credit did not detract from performance on an absolute basis, these asset classes underperformed high yield bonds for the period.
	Describe recent portfolio activity.
•	In the early part of the period, as the outlook for global growth worsened and the potential for further spreading of the ongoing debt crisis in Europe increased, the Trust shifted its positioning to a more conservative posture. Specifically, the Trust reduced positions in the more cyclical credits and increased exposure to market sectors with more stable cash flows.
•	However, the environment shifted in December when the European Central Bank announced a long-term refinancing operation. This liquidity program provided a much-needed short-term panacea for the financial markets and mitigated the risk of a collapse in the European banking system. Moreover, it was the catalyst for a positive turn in the valuation of risk assets. Given these developments, the Trust maintained its higher-quality income-oriented bias, but started selectively adding back some risk in names with appealing risk-reward characteristics. Despite this modest shift to “risk-on,” the Trust continued to seek issuers with superior fundamentals while avoiding higher-beta credits (i.e., those with higher sensitivity to market volatility) and the more economically sensitive areas of the market.
	Describe portfolio positioning at period end.
•	At period end, the Trust held 82% of its total portfolio in corporate bonds, 14% in floating rate loan interests (bank loans), with the remainder in other interests, preferred securities and US Treasury Obligations. The Trust’s largest sector exposures included non-cable media, independent energy and wireless. The Trust ended the period with economic leverage at 20% 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 29, 2012

BlackRock Strategic Bond Trust

Trust Information
Symbol on NYSE		BHD
Initial Offering Date	February 26, 2002
Yield on Closing Market Price as of February 29, 2012 ($13.87)1		7.31%
Current Monthly Distribution per Common Share2	$	0.0845
Current Annualized Distribution per Common Share2	$	1.0140
Economic Leverage as of February 29, 20123		20%

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:

	2/29/12		8/31/11		Change			High		Low
Market Price	$	13.87	$	12.93		7.27	%	$	13.88	$	11.86
Net Asset Value	$	14.21	$	13.48		5.42	%	$	14.21	$	12.72

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
	2/29/12		8/31/11
Corporate Bonds	82	%	85	%
Floating Rate Loan Interests	14		12
Other Interests	2		2
Preferred Securities	1		1
US Treasury Obligations	1		—

Credit Quality Allocations4
	2/29/12			8/31/11
AA/Aa		2	%		3	%
A		13			13
BBB/Baa		17			16
BB/Ba		33			26
B		29			34
CCC/Caa		5			6
D		—			1
Not Rated		1			1

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

SEMI-ANNUAL REPORT
FEBRUARY 29, 2012
19

The Benefits and Risks of Leveraging

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

The Trusts may utilize leverage by borrowing through a credit facility 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 Trust’s shareholders are the beneficiaries of the incremental net income.

If short-term interest rates rise, narrowing the differential between short-term and long-term interest rates, the incremental net income pickup will be reduced or eliminated completely. Furthermore, if prevailing short-term interest rates rise above long-term interest rates, the yield curve has a negative slope. In this case, the Trust pays 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’ NAVs positively or negatively in addition to the impact on Trust performance from leverage from borrowings discussed above.

The use of leverage may enhance opportunities for increased income to the Trusts, 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, the Trusts’ 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, as amended (the “1940 Act”), the Trusts are permitted to issue senior securities representing indebtedness up to 33¹/₃% of their total managed assets (each Trust’s net assets plus the proceeds of any outstanding borrowings). If the Trusts segregate liquid assets having a value not less than the repurchase price (including accrued interest), a reverse repurchase agreement will not be considered a senior security and therefore will not be subject to this limitation. In addition, each Trust voluntarily limits its aggregate economic leverage to 50% of its managed assets. As of February 29, 2012, the Trusts had aggregate economic leverage from reverse repurchase agreements, treasury roll transactions and/or borrowings through a credit facility as a percentage of their total managed assets as follows:

	Percent of Economic Leverage
BHK	29%
HYV	24%
HYT	24%
HIS	19%
BHY	21%
BNA	30%
BKT	24%
BHD	20%

Derivative Financial Instruments

The Trusts may invest in various derivative financial instruments, including financial futures contracts, foreign currency exchange contracts, options and swaps as specified in Note 2 of the Notes to Financial Statements, which may constitute forms of economic leverage. Such derivative financial instruments are used to obtain exposure to a market without owning or taking physical custody of securities or to hedge market, equity, credit, interest rate, foreign currency exchange rate and/or other risks. Derivative financial instruments involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the derivative financial instrument. The Trusts’ ability to use a derivative financial instrument successfully depends on the investment advisor’s ability to predict pertinent market movements accurately, which cannot be assured. The use of derivative financial instruments may result in losses greater than if they had not been used, may require a 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 29, 2012

Schedule of Investments February 29, 2012 (Unaudited)	BlackRock Core Bond Trust (BHK)
	(Percentages shown are based on Net Assets)

Asset-Backed Securities	Par (000)		Value
Asset-Backed Securities — 6.1%
321 Henderson Receivables I LLC, Series 2010-3A, Class A, 3.82%, 12/15/48 (a)	USD	808	$	814,447
AH Mortgage Advance Trust, Series SART-3, Class 1A1, 2.98%, 3/13/43 (a)		630		624,706
AmeriCredit Automobile Receivables Trust, Series 2011-5, Class C, 3.44%, 10/08/17		400		409,022
CarMax Auto Owner Trust:
Series 2012-1, Class B, 1.76%, 8/15/17		210		209,783
Series 2012-1, Class C, 2.20%, 10/16/17		125		124,845
Series 2012-1, Class D, 3.09%, 8/15/18		155		154,815
CenterPoint Energy Transition Bond Co. LLC, Series 2012-1, Class A3, 3.03%, 10/15/25		1,105		1,118,781
Countrywide Asset-Backed Certificates, Series 2006-13, Class 3AV2, 0.39%, 1/25/37 (b)		1,153		793,063
Credit Acceptance Auto Loan Trust, Series 2010-1, Class B, 3.63%, 10/15/18 (a)		1,980		1,984,470
DT Auto Owner Trust (a):
Series 2011-2A, Class C, 3.05%, 2/16/16		1,500		1,498,858
Series 2011-3A, Class C, 4.03%, 2/15/17		255		257,829
Ford Credit Floorplan Master Owner Trust:
Series 2012-1, Class B, 1.15%, 1/15/16 (b)		180		180,002
Series 2012-1, Class C, 1.75%, 1/15/16 (b)		475		475,004
Series 2012-1, Class D, 2.35%, 1/15/16 (b)		445		445,003
Series 2012-2, Class B, 2.32%, 1/15/19		245		245,023
Series 2012-2, Class C, 2.86%, 1/15/19		105		104,921
Series 2012-2, Class D, 3.51%, 1/15/19		200		199,843
Globaldrive BV, Series 2008-2, Class A, 4.00%, 10/20/16	EUR	234		314,378
Home Equity Asset Trust, Series 2007-2, Class 2A1, 0.35%, 7/25/37 (b)	USD	120		117,302
Nelnet Student Loan Trust (b):
Series 2006-1, Class A5, 0.60%, 8/23/27		525		488,049
Series 2008-3, Class A4, 2.14%, 11/25/24		615		634,037
PFS Financing Corp., Series 2012-AA, Class A, 1.46%, 2/15/16 (a)(b)		480		480,000
Santander Consumer Acquired Receivables Trust (a):
Series 2011-S1A, Class B, 1.66%, 8/15/16		596		596,319
Series 2011-S1A, Class C, 2.01%, 8/15/16		437		432,086
Series 2011-S1A, Class D, 3.15%, 8/15/16		452		451,249
Series 2011-WO, Class C, 3.19%, 10/15/15		580		579,242
Santander Drive Auto Receivables Trust:
Series 2010-2, Class B, 2.24%, 12/15/14		860		863,669
Series 2010-2, Class C, 3.89%, 7/17/17		1,010		1,021,202
Series 2010-B, Class B, 2.10%, 9/15/14 (a)		700		704,040
Series 2010-B, Class C, 3.02%, 10/17/16 (a)		740		735,407
Series 2011-1, Class D, 4.01%, 2/15/17		940		944,687
Series 2011-S1A, Class B, 1.48%, 5/15/17 (a)		357		354,894
Series 2011-S1A, Class D, 3.10%, 5/15/17 (a)		388		384,887
Series 2011-S2A, Class C, 2.86%, 6/15/17 (a)		919		919,399
Series 2012-1, Class B, 2.72%, 5/16/16		240		240,290
Series 2012-1, Class C, 3.78%, 11/15/17		325		325,521

Asset-Backed Securities	Par (000)		Value
Asset-Backed Securities (concluded)
SLM Student Loan Trust:
Series 2004-B, Class A2, 0.75%, 6/15/21 (b)	USD	213	$	204,187
Series 2008-5, Class A3, 1.86%, 1/25/18 (b)		515		523,075
Series 2008-5, Class A4, 2.26%, 7/25/23 (b)		615		629,850
Series 2012-A, Class A1, 1.66%, 8/15/25 (a)(b)		380		380,085
Series 2012-A, Class A2, 3.83%, 1/17/45 (a)		345		345,338
Small Business Administration, Class 1:
Series 2003-P10B, 5.14%, 8/10/13		262		273,767
Series 2004-P10B, 4.75%, 8/10/14		174		184,522
Structured Asset Securities Corp., Series 2002-AL1, Class A2, 3.45%, 2/25/32		1,406		1,283,799
				24,051,696
Interest Only Asset-Backed Securities — 0.2%
Sterling Bank Trust, Series 2004-2, Class Note, 2.08%, 3/30/30 (a)		4,107		318,310
Sterling Coofs Trust, Series 1, 2.36%, 4/15/29		6,359		492,822
				811,132
Total Asset-Backed Securities — 6.3%				24,862,828

Common Stocks (c) — 0.0%	Shares
Software — 0.0%
Bankruptcy Management Solutions, Inc.		135	3

Corporate Bonds	Par (000)
Aerospace & Defense — 0.6%
United Technologies Corp.:
4.88%, 5/01/15	USD	1,125	1,263,058
6.13%, 7/15/38		700	929,554
			2,192,612
Airlines — 0.3%
Continental Airlines, Inc., Series 2010-1, Class B, 6.00%, 7/12/20		672	651,508
United Air Lines, Inc., 12.75%, 7/15/12		334	345,594
			997,102
Auto Components — 0.1%
BorgWarner, Inc., 4.63%, 9/15/20		265	284,247
Beverages — 0.1%
Crown European Holdings SA, 7.13%, 8/15/18 (a)	EUR	355	506,665
Building Products — 0.1%
Momentive Performance Materials, Inc., 11.50%, 12/01/16	USD	510	428,400

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:

AUD	Australian Dollar
CAD	Canadian Dollar
CHF	Swiss Franc
ETF	Exchange-Traded Fund
EUR	Euro
EURIBOR	Euro Interbank Offered Rate
FKA	Formerly Known As
GBP	British Pound
JPY	Japanese Yen
LIBOR	London Interbank Offered Rate
NZD	New Zealand Dollar
PHP	Philippine Peso
RB	Revenue Bonds
SGD	Singapore Dollar
SPDR	Standard and Poor’s Depositary Receipts
USD	US Dollar

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012	21

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

Corporate Bonds	Par (000)		Value
Capital Markets — 5.6%
American Capital Ltd., 8.96%, 12/31/13 (d)	USD	720	$	733,349
CDP Financial, Inc., 5.60%, 11/25/39 (a)		2,935		3,549,838
Credit Suisse AG:
2.60%, 5/27/16 (a)		570		583,207
5.40%, 1/14/20		1,565		1,572,146
E*Trade Financial Corp., 12.50%, 11/30/17		1,570		1,829,050
Goldman Sachs Group, Inc.:
5.38%, 3/15/20		1,220		1,250,169
5.25%, 7/27/21		3,165		3,170,171
5.75%, 1/24/22		3,450		3,601,248
Morgan Stanley:
3.01%, 5/14/13 (b)		1,890		1,892,682
4.20%, 11/20/14		490		491,830
4.00%, 7/24/15		410		410,372
6.25%, 8/28/17		1,930		2,023,202
5.63%, 9/23/19		630		629,901
5.50%, 7/28/21		360		356,676
				22,093,841
Chemicals — 0.5%
American Pacific Corp., 9.00%, 2/01/15		250		243,750
The Dow Chemical Co., 4.13%, 11/15/21		350		372,474
Ineos Finance Plc, 8.38%, 2/15/19 (a)		265		281,562
Lyondell Chemical Co., 11.00%, 5/01/18		680		745,450
LyondellBasell Industries NV, 6.00%, 11/15/21 (a)		240		263,400
				1,906,636
Commercial Banks — 5.4%
CIT Group, Inc. (a):
7.00%, 5/02/16		110		110,138
7.00%, 5/02/17		1,035		1,036,294
DEPFA ACS Bank, 5.13%, 3/16/37 (a)		3,775		2,638,178
Discover Bank, 8.70%, 11/18/19		250		300,923
DnB NOR Boligkreditt (a):
2.10%, 10/14/16		4,020		4,062,712
2.90%, 3/29/17		2,600		2,694,936
Eksportfinans ASA, 5.50%, 6/26/17		950		911,884
HSBC Bank Brasil SA — Banco Multiplo, 4.00%, 5/11/16 (a)		1,400		1,393,000
HSBC Bank Plc, 3.10%, 5/24/16 (a)		700		716,034
HSBC Holdings Plc, 6.10%, 1/14/42		305		363,539
Sparebanken 1 Boligkreditt (a):
1.25%, 10/25/14		1,580		1,581,657
2.63%, 5/27/17		1,675		1,714,687
Wachovia Corp., 5.25%, 8/01/14		3,425		3,697,606
				21,221,588
Commercial Services & Supplies — 0.1%
ARAMARK Corp., 8.50%, 2/01/15		18		18,473
AWAS Aviation Capital Ltd., 7.00%, 10/17/16 (a)		136		141,702
Mobile Mini, Inc., 7.88%, 12/01/20		320		336,000
				496,175
Construction & Engineering — 0.1%
Abengoa SA, 8.50%, 3/31/16	EUR	150		204,881
Construction Materials — 0.0%
Lafarge SA, 7.13%, 7/15/36	USD	135		124,670
Consumer Finance — 0.6%
Ford Motor Credit Co. LLC:
7.80%, 6/01/12		340		344,191
5.88%, 8/02/21		270		301,313
SLM Corp.:
6.25%, 1/25/16		661		690,745
Series A, 0.86%, 1/27/14 (b)		550		523,388
Toll Brothers Finance Corp., 5.88%, 2/15/22		345		357,846
				2,217,483

Corporate Bonds	Par (000)		Value
Containers & Packaging — 0.6%
Ardagh Packaging Finance Plc, 7.38%, 10/15/17 (a)	EUR	425	$	597,370
Smurfit Kappa Acquisitions (a):
7.25%, 11/15/17		725		1,033,531
7.75%, 11/15/19		410		588,577
				2,219,478
Diversified Financial Services — 7.3%
Ally Financial, Inc.:
8.30%, 2/12/15	USD	1,500		1,657,500
6.25%, 12/01/17		160		165,379
8.00%, 3/15/20		560		634,200
Capital One Financial Corp., 4.75%, 7/15/21		960		1,012,109
Citigroup, Inc.:
5.00%, 9/15/14		285		296,700
4.59%, 12/15/15		6,390		6,768,141
General Electric Capital Corp.:
2.13%, 12/21/12 (e)		515		522,987
6.15%, 8/07/37 (e)		4,150		4,682,055
6.88%, 1/10/39		135		166,638
JPMorgan Chase & Co.:
3.70%, 1/20/15 (e)		3,425		3,636,209
6.30%, 4/23/19		2,000		2,351,116
4.50%, 1/24/22		750		796,909
Series BKNT, 6.00%, 10/01/17		2,050		2,300,188
Reynolds Group Issuer, Inc. (a):
7.75%, 10/15/16	EUR	550		778,563
7.88%, 8/15/19	USD	660		722,700
6.88%, 2/15/21		1,215		1,287,900
WMG Acquisition Corp. (a):
9.50%, 6/15/16		160		176,800
11.50%, 10/01/18		785		834,062
				28,790,156
Diversified Telecommunication Services — 2.9%
Level 3 Financing, Inc. (a):
8.13%, 7/01/19		698		731,155
8.63%, 7/15/20		740		789,950
Qwest Communications International, Inc., 7.50%, 2/15/14		1,200		1,204,200
Telecom Italia Capital SA:
4.95%, 9/30/14		1,075		1,084,406
6.00%, 9/30/34		1,550		1,290,375
Verizon Communications, Inc.:
3.50%, 11/01/21		500		523,076
6.40%, 2/15/38		3,483		4,364,011
8.95%, 3/01/39		900		1,426,869
Windstream Corp., 7.88%, 11/01/17		40		45,100
				11,459,142
Electric Utilities — 5.7%
Alabama Power Co.:
3.95%, 6/01/21		460		499,779
6.00%, 3/01/39		1,275		1,647,876
The Cleveland Electric Illuminating Co.:
8.88%, 11/15/18		121		161,070
5.95%, 12/15/36		217		238,477
Constellation Energy Group, Inc., 7.60%, 4/01/32		200		267,491
Duke Energy Carolinas LLC:
6.10%, 6/01/37		315		399,949
6.00%, 1/15/38		825		1,084,208
4.25%, 12/15/41		375		395,793
E.ON International Finance BV, 6.65%, 4/30/38 (a)		1,525		1,997,058
EDF SA, 5.60%, 1/27/40 (a)		1,400		1,490,042
Florida Power Corp.:
6.35%, 9/15/37		1,325		1,785,846
6.40%, 6/15/38		430		585,411
Jersey Central Power & Light Co., 7.35%, 2/01/19		245		310,546

See Notes to Financial Statements.
22	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012

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

Corporate Bonds	Par (000)		Value
Electric Utilities (concluded)
Ohio Power Co., Series D, 6.60%, 3/01/33	USD	1,500	$	1,893,546
PacifiCorp., 6.25%, 10/15/37		575		762,992
Public Service Co. of Colorado, 6.25%, 9/01/37		1,200		1,614,450
Southern California Edison Co.:
5.63%, 2/01/36		625		782,376
Series 08-A, 5.95%, 2/01/38		1,075		1,414,934
The Tokyo Electric Power Co., Inc., 4.50%, 3/24/14	EUR	1,350		1,680,796
The Toledo Edison Co., 6.15%, 5/15/37	USD	350		413,908
Trans-Allegheny Interstate Line Co., 4.00%, 1/15/15 (a)		250		264,907
Virginia Electric and Power Co., Series A, 6.00%, 5/15/37		2,000		2,581,362
				22,272,817
Energy Equipment & Services — 2.8%
Calfrac Holdings LP, 7.50%, 12/01/20 (a)(e)		565		565,000
Ensco Plc:
3.25%, 3/15/16		160		166,976
4.70%, 3/15/21		1,745		1,910,543
Frac Tech Services LLC, 7.63%, 11/15/18 (a)		1,110		1,184,925
Noble Holding International Ltd., 5.25%, 3/15/42		350		370,145
Peabody Energy Corp., 6.25%, 11/15/21 (a)		3,845		4,027,637
Pride International, Inc., 6.88%, 8/15/20		230		280,173
Transocean, Inc.:
5.05%, 12/15/16		850		929,948
6.50%, 11/15/20		350		408,186
6.38%, 12/15/21		840		991,326
				10,834,859
Food & Staples Retailing — 0.9%
Wal-Mart Stores, Inc.:
6.50%, 8/15/37		1,900		2,585,685
6.20%, 4/15/38 (e)		850		1,120,925
				3,706,610
Food Products — 1.0%
Darling International, Inc., 8.50%, 12/15/18		335		376,875
Kraft Foods, Inc., 5.38%, 2/10/20		3,000		3,497,868
				3,874,743
Health Care Equipment & Supplies — 0.9%
Boston Scientific Corp., 6.25%, 11/15/15		1,251		1,390,957
DJO Finance LLC:
10.88%, 11/15/14		810		824,175
7.75%, 4/15/18		735		632,100
Fresenius Medical Care US Finance, Inc., 6.50%, 9/15/18 (a)		152		168,340
Teleflex, Inc., 6.88%, 6/01/19		385		414,837
				3,430,409
Health Care Providers & Services — 2.2%
Aviv Healthcare Properties LP, 7.75%, 2/15/19		175		178,937
ConvaTec Healthcare E SA, 7.38%, 12/15/17 (a)	EUR	494		682,837
HCA, Inc.:
6.50%, 2/15/20	USD	2,115		2,268,337
7.88%, 2/15/20		135		148,838
Health Management Associates, Inc., 7.38%, 1/15/20 (a)		850		886,125
IASIS Healthcare LLC, 8.38%, 5/15/19		1,000		955,000
INC Research LLC, 11.50%, 7/15/19 (a)		545		523,200
inVentiv Health, Inc., 10.00%, 8/15/18 (a)		155		141,050
Omnicare, Inc., 7.75%, 6/01/20		805		896,569
Symbion, Inc., 8.00%, 6/15/16		455		439,075
Tenet Healthcare Corp.:
10.00%, 5/01/18		200		233,000
8.88%, 7/01/19		1,150		1,311,000
UnitedHealth Group, Inc., 3.38%, 11/15/21		160		168,580
				8,832,548

Corporate Bonds	Par (000)		Value
Health Care Technology — 0.8%
Amgen, Inc.:
3.88%, 11/15/21	USD	1,500	$	1,558,739
6.40%, 2/01/39		750		896,546
5.15%, 11/15/41		750		784,909
				3,240,194
Hotels, Restaurants & Leisure — 0.6%
El Dorado Resorts LLC, 8.63%, 6/15/19 (a)		180		171,450
MGM Resorts International, 11.13%, 11/15/17		265		301,438
Punch Taverns Finance B Ltd., Series A7, 4.77%, 6/30/33	GBP	1,721		1,964,615
				2,437,503
Household Durables — 0.9%
Beazer Homes USA, Inc., 12.00%, 10/15/17	USD	1,050		1,144,500
Standard Pacific Corp., 10.75%, 9/15/16		2,100		2,412,375
				3,556,875
Household Products — 0.1%
Ontex IV SA, 7.50%, 4/15/18 (a)	EUR	190		232,886
Independent Power Producers & Energy Traders — 0.6%
Energy Future Holdings Corp., 10.00%, 1/15/20	USD	1,425		1,540,781
Energy Future Intermediate Holding Co. LLC, 10.00%, 12/01/20		742		805,998
				2,346,779
Industrial Conglomerates — 0.7%
Sequa Corp. (a):
11.75%, 12/01/15		690		733,125
13.50%, 12/01/15		1,940		2,071,368
				2,804,493
Insurance — 2.5%
Allianz Finance II BV, 5.75%, 7/08/41 (b)	EUR	500		633,705
American International Group, Inc., 5.45%, 5/18/17	USD	800		850,281
AXA SA, 5.25%, 4/16/40 (b)	EUR	250		279,985
CNO Financial Group, Inc., 9.00%, 1/15/18 (a)	USD	478		514,447
Fairfax Financial Holdings Ltd., 5.80%, 5/15/21 (a)		820		804,094
Hartford Financial Services Group, Inc., 6.00%, 1/15/19		345		368,167
Hartford Life Global Funding Trusts, 0.73%, 6/16/14 (b)		425		402,955
Lincoln National Corp., 6.25%, 2/15/20		630		722,091
Manulife Financial Corp., 3.40%, 9/17/15		1,630		1,696,700
Metropolitan Life Global Funding I, 5.13%, 6/10/14 (a)		775		836,546
MPL 2 Acquisition Canco, Inc., 9.88%, 8/15/18 (a)		340		303,450
Muenchener Rueckversicherungs AG, 6.00%, 5/26/41 (b)	EUR	200		270,465
Prudential Financial, Inc.:
7.38%, 6/15/19	USD	250		309,444
5.38%, 6/21/20		250		282,002
4.50%, 11/15/20		450		479,050
5.70%, 12/14/36		675		728,359
Series D, 5.90%, 3/17/36		500		549,010
				10,030,751
IT Services — 0.8%
First Data Corp. (a):
7.38%, 6/15/19		205		207,306
8.25%, 1/15/21		80		77,400
SunGard Data Systems, Inc.:
7.38%, 11/15/18		1,080		1,161,000
7.63%, 11/15/20		1,730		1,868,400
				3,314,106

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012	23

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

Corporate Bonds	Par (000)		Value
Machinery — 0.5%
Joy Global, Inc., 5.13%, 10/15/21	USD	225	$	247,153
Navistar International Corp.:
3.00%, 10/15/14 (f)		518		583,397
8.25%, 11/01/21		14		15,312
UR Financing Escrow Corp. (a)(g):
5.75%, 7/15/18		194		199,335
7.38%, 5/15/20		495		507,994
7.63%, 4/15/22		452		467,820
				2,021,011
Marine — 0.3%
Nakilat, Inc., Series A, 6.07%, 12/31/33 (a)		1,050		1,128,750
Media — 8.7%
Affinion Group, Inc., 7.88%, 12/15/18		1,045		935,275
AMC Networks, Inc., 7.75%, 7/15/21 (a)		320		356,800
CBS Corp.:
4.63%, 5/15/18		810		874,123
8.88%, 5/15/19		325		433,344
5.75%, 4/15/20		250		287,944
CCH II LLC, 13.50%, 11/30/16		2,300		2,645,432
Clear Channel Communications, Inc., 9.00%, 3/01/21		680		625,600
Clear Channel Worldwide Holdings, Inc., Series B, 9.25%, 12/15/17		2,172		2,389,200
Comcast Cable Communications Holdings, Inc., 9.46%, 11/15/22		600		887,318
Comcast Corp., 6.45%, 3/15/37		790		986,479
Cox Communications, Inc., 8.38%, 3/01/39 (a)		905		1,279,889
Cox Enterprises, Inc.:
Loan Close 2, 4.00%, 8/15/18		963		977,628
Loan Close 3, 4.00%, 8/15/18		1,102		1,117,709
Shares Loan, 4.00%, 8/15/18		1,136		1,152,751
DIRECTV Holdings LLC, 6.38%, 3/01/41		260		312,960
Gray Television, Inc., 10.50%, 6/29/15		1,055		1,114,344
Intelsat Luxembourg SA:
11.25%, 6/15/16		450		475,875
11.25%, 2/04/17		520		536,250
11.50%, 2/04/17 (h)		415		427,450
Interactive Data Corp., 10.25%, 8/01/18		1,330		1,499,575
NBC Universal Media LLC:
5.15%, 4/30/20		1,983		2,292,812
4.38%, 4/01/21		1,015		1,111,845
The New York Times Co., 6.63%, 12/15/16		1,800		1,876,500
News America, Inc.:
4.50%, 2/15/21		40		43,122
7.63%, 11/30/28		385		460,393
TCI Communications, Inc., 7.88%, 2/15/26		610		804,450
Time Warner Cable, Inc.:
7.30%, 7/01/38		930		1,195,128
5.88%, 11/15/40		465		528,001
5.50%, 9/01/41		920		1,012,976
Time Warner, Inc.:
4.70%, 1/15/21		350		390,302
6.10%, 7/15/40		215		254,966
Unitymedia Hessen GmbH & Co. KG (FKA UPC Germany GmbH), 8.13%, 12/01/17 (a)		2,370		2,571,450
Virgin Media Secured Finance Plc, 6.50%, 1/15/18		525		572,250
Ziggo Finance BV, 6.13%, 11/15/17 (a)	EUR	1,135		1,568,866
				33,999,007

Corporate Bonds	Par (000)		Value
Metals & Mining — 3.5%
Alcoa, Inc., 5.40%, 4/15/21	USD	1,450	$	1,509,501
AngloGold Ashanti Holdings Plc, 5.38%, 4/15/20		245		252,252
Barrick Gold Corp., 2.90%, 5/30/16		1,690		1,781,390
Barrick North America Finance LLC, 4.40%, 5/30/21		15		16,508
Cliffs Natural Resources, Inc., 4.80%, 10/01/20		240		253,865
Falconbridge Ltd., 6.20%, 6/15/35		1,250		1,309,683
Freeport-McMoRan Copper & Gold, Inc., 3.55%, 3/01/22		540		537,419
New World Resources NV, 7.88%, 5/01/18	EUR	215		290,741
Newcrest Finance Pty Ltd., 4.45%, 11/15/21 (a)	USD	475		487,131
Novelis, Inc., 8.75%, 12/15/20		4,120		4,593,800
Teck Resources Ltd., 5.38%, 10/01/15		2,359		2,631,266
				13,663,556
Multiline Retail — 0.4%
Macy’s Retail Holdings, Inc.:
5.90%, 12/01/16		800		920,615
7.45%, 7/15/17		581		713,135
				1,633,750
Oil, Gas & Consumable Fuels — 8.5%
Anadarko Petroleum Corp.:
5.95%, 9/15/16		1,916		2,218,197
6.38%, 9/15/17		1,824		2,189,387
Bill Barrett Corp., 9.88%, 7/15/16		40		44,200
BP Capital Markets Plc, 3.13%, 10/01/15		330		353,344
Burlington Resources Finance Co., 7.40%, 12/01/31		875		1,191,593
Cenovus Energy, Inc., 6.75%, 11/15/39		750		1,022,706
Chesapeake Midstream Partners LP, 6.13%, 7/15/22 (a)		400		414,000
ConocoPhillips Canada Funding Co., 5.95%, 10/15/36		535		669,913
Crosstex Energy LP, 8.88%, 2/15/18		130		141,050
Devon Energy Corp., 7.95%, 4/15/32		625		910,312
El Paso Pipeline Partners Operating Co. LLC, 6.50%, 4/01/20		240		267,419
EnCana Corp.:
6.50%, 8/15/34		670		757,430
6.63%, 8/15/37		700		819,783
Energy XXI Gulf Coast, Inc., 9.25%, 12/15/17		540		598,050
Enterprise Products Operating LLC:
6.13%, 10/15/39		700		835,938
Series L, 6.30%, 9/15/17		575		679,820
KeySpan Gas East Corp., 5.82%, 4/01/41 (a)		505		611,284
Kinder Morgan Energy Partners LP:
5.95%, 2/15/18		1,300		1,547,482
6.55%, 9/15/40		110		126,146
6.38%, 3/01/41		150		170,532
Linn Energy LLC, 6.25%, 11/01/19 (a)		590		589,263
Marathon Petroleum Corp., 6.50%, 3/01/41		997		1,126,789
MidAmerican Energy Co., 5.80%, 10/15/36		700		848,567
MidAmerican Energy Holdings Co.:
5.95%, 5/15/37		800		969,312
6.50%, 9/15/37		1,900		2,462,212
Nexen, Inc., 7.50%, 7/30/39		1,000		1,284,406
Niska Gas Storage US LLC, 8.88%, 3/15/18		305		292,800
Petrobras International Finance Co.:
3.88%, 1/27/16		1,340		1,397,553
5.75%, 1/20/20		1,725		1,897,500

See Notes to Financial Statements.
24	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012

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

Corporate Bonds	Par (000)		Value
Oil, Gas & Consumable Fuels (concluded)
Premier Oil Plc, 5.00%, 6/09/18 (a)	USD	1,900	$	1,961,750
Range Resources Corp., 5.75%, 6/01/21		935		1,000,450
Rockies Express Pipeline LLC, 3.90%, 4/15/15 (a)		804		771,840
Suncor Energy, Inc., 6.10%, 6/01/18		1,750		2,134,933
Western Gas Partners LP, 5.38%, 6/01/21		710		757,591
Woodside Finance, Ltd., 4.60%, 5/10/21 (a)		205		214,411
				33,277,963
Paper & Forest Products — 0.9%
Boise Paper Holdings LLC:
9.00%, 11/01/17		430		473,000
8.00%, 4/01/20		210		230,475
Clearwater Paper Corp., 10.63%, 6/15/16		620		704,475
International Paper Co.:
7.50%, 8/15/21		75		96,316
4.75%, 2/15/22		420		457,552
6.00%, 11/15/41		435		502,718
NewPage Corp., 11.38%, 12/31/14 (c)(e)(i)		430		259,075
Verso Paper Holdings LLC, 11.50%, 7/01/14		670		683,400
				3,407,011
Pharmaceuticals — 0.6%
Capsugel Finance Co. SCA, 9.88%, 8/01/19 (a)	EUR	200		286,445
Jaguar Holding Co. II, 9.50%, 12/01/19 (a)	USD	620		678,125
Teva Pharmaceutical Finance Co. BV, Series 2, 3.65%, 11/10/21		205		213,889
Teva Pharmaceutical Finance IV BV, 3.65%, 11/10/21		1,000		1,043,362
				2,221,821
Real Estate Investment Trusts (REITs) — 0.5%
ERP Operating LP, 4.63%, 12/15/21		500		535,722
Ventas Realty LP, 4.75%, 6/01/21		275		283,342
Vornado Realty LP, 5.00%, 1/15/22		1,185		1,249,283
				2,068,347
Real Estate Management & Development — 0.3%
Realogy Corp. (a)(e):
7.88%, 2/15/19		434		420,980
7.63%, 1/15/20		520		536,900
WEA Finance LLC, 4.63%, 5/10/21 (a)		305		321,743
				1,279,623
Road & Rail — 0.6%
Burlington Northern Santa Fe LLC, 5.75%, 5/01/40		950		1,151,968
Florida East Coast Railway Corp., 8.13%, 2/01/17		490		494,900
The Hertz Corp., 7.38%, 1/15/21		650		703,625
				2,350,493
Semiconductors & Semiconductor Equipment — 0.1%
Spansion LLC, 7.88%, 11/15/17		390		383,175
Software — 0.2%
Oracle Corp., 5.38%, 7/15/40		775		942,406
Specialty Retail — 0.3%
Home Depot, Inc., 5.88%, 12/16/36		830		1,038,021
QVC, Inc. (a):
7.50%, 10/01/19		35		38,850
7.38%, 10/15/20		35		38,763
				1,115,634

Corporate Bonds	Par (000)		Value
Thrifts & Mortgage Finance — 0.6%
Northern Rock Plc, 5.63%, 6/22/17 (a)	USD	290	$	308,892
Radian Group, Inc.:
5.63%, 2/15/13		1,400		1,211,000
5.38%, 6/15/15		1,400		1,029,000
				2,548,892
Wireless Telecommunication Services — 2.1%
America Movil SAB de CV, 2.38%, 9/08/16		795		811,760
Crown Castle Towers LLC, 6.11%, 1/15/40 (a)		1,560		1,756,490
Digicel Group Ltd. (a):
9.13%, 1/15/15		560		571,200
8.25%, 9/01/17		150		159,000
MetroPCS Wireless, Inc., 6.63%, 11/15/20		960		988,800
Rogers Communications, Inc., 7.50%, 8/15/38		1,150		1,562,431
SBA Tower Trust, 5.10%, 4/15/17 (a)		360		385,920
Sprint Capital Corp., 6.88%, 11/15/28		595		464,100
Sprint Nextel Corp. (a):
9.00%, 11/15/18		530		590,950
7.00%, 3/01/20		770		782,513
				8,073,164
Total Corporate Bonds — 72.9%				286,173,252

Foreign Agency Obligations
Hellenic Republic Government Bond, 4.60%, 9/20/40	EUR	160	42,634
Hydro-Quebec:
9.40%, 2/01/21	USD	390	584,676
8.40%, 1/15/22		730	1,046,735
8.05%, 7/07/24		1,900	2,801,945
Italy Buoni Poliennali Del Tesoro, 5.00%, 3/01/22	EUR	1,700	2,230,482
Italy Government International Bond, 5.38%, 6/15/33	USD	455	429,795
Kreditanstalt fuer Wiederaufbau, 1.38%, 7/15/13 (j)		660	667,363
Mexico Government International Bond:
5.63%, 1/15/17		370	426,425
5.13%, 1/15/20		145	165,663
Poland Government International Bond, 5.13%, 4/21/21		705	756,113
Russian Foreign Bond Eurobond, 7.50%, 3/31/30 (k)		1,386	1,652,924
Turkey Government International Bond, 6.25%, 9/26/22		1,500	1,608,750
Total Foreign Agency Obligations — 3.2%			12,413,505

Non-Agency Mortgage-Backed Securities
Collateralized Mortgage Obligations — 3.0%
Banc of America Funding Corp., Series 2007-2, Class 1A2, 6.00%, 3/25/37	1,100	863,258
Bear Stearns Adjustable Rate Mortgage Trust, Series 2004-8, Class 14A1, 5.37%, 11/25/34 (b)	368	340,709
Countrywide Alternative Loan Trust:
Series 2005-64CB, Class 1A15, 5.50%, 12/25/35	1,533	1,149,721
Series 2006-0A21, Class A1, 0.44%, 3/20/47 (b)	819	376,607
Series 2006-41CB, Class 1A4, 5.75%, 1/25/37	748	506,865
Series 2007-HY4, Class 4A1, 5.29%, 6/25/47 (b)	872	572,733

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012	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
Collateralized Mortgage Obligations (concluded)
Countrywide Home Loan Mortgage Pass-Through Trust:
Series 2006-0A5, Class 2A1, 0.44%, 4/25/46 (b)	USD	336	$	177,404
Series 2007-10, Class A22, 6.00%, 7/25/37		675		520,090
Credit Suisse Mortgage Capital Certificates, Series 2011-2R, Class 2A1, 2.70%, 7/27/36 (a)(b)		1,383		1,315,130
CS First Boston Mortgage Securities Corp., Series 2005-12, Class 6A1, 6.00%, 1/25/36		841		583,096
Deutsche ALT-A Securities, Inc. Alternate Loan Trust, Series 2006-0A1, Class A1, 0.44%, 2/25/47 (b)		257		151,713
GMAC Mortgage Corp. Loan Trust, Series 2005-AR3, Class 5A1, 5.10%, 6/19/35 (b)		1,232		1,158,735
GSR Mortgage Loan Trust:
Series 2006-4F, Class 1A1, 5.00%, 5/25/36		657		565,875
Series 2007-4F, Class 3A1, 6.00%, 7/25/37		788		671,020
Homebanc Mortgage Trust, Series 2006-2, Class A1, 0.42%, 12/25/36 (b)		636		400,839
IndyMac IMJA Mortgage Loan Trust, Series 2007-A1, Class A4, 6.00%, 8/25/37		967		810,519
JPMorgan Mortgage Trust:
Series 2006-S3, Class 1A12, 6.50%, 8/25/36		409		378,737
Series 2007-S1, Class 2A22, 5.75%, 3/25/37		452		361,764
Merrill Lynch Mortgage Investors, Inc., Series 2006-A3, Class 3A1, 2.84%, 5/25/36 (b)		710		466,114
Residential Funding Mortgage Securities I, Series 2007-S6, Class 1A16, 6.00%, 6/25/37		462		373,766
Wells Fargo Mortgage-Backed Securities Trust:
Series 2006-9, Class 1A29, 6.00%, 8/25/36		158		157,581
Series 2007-10, Class 1A21, 6.00%, 7/25/37		54		48,718
				11,950,994
Commercial Mortgage-Backed Securities — 11.9%
Banc of America Merrill Lynch
Commercial Mortgage, Inc.:
Series 2007-1, Class A4, 5.45%, 1/15/49		500		563,501
Series 2007-2, Class A4, 5.66%, 4/10/49 (b)		750		832,763
Bear Stearns Commercial Mortgage Securities, Series 2005-PWR9, Class A4A, 4.87%, 9/11/42		800		879,736
Citigroup Commercial Mortgage Trust, Series 2008-C7, Class A4, 6.07%, 12/10/49 (b)		1,370		1,592,362
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2006-CD3, Class AM, 5.65%, 10/15/48		1,093		1,091,264
Commercial Mortgage Pass-Through Certificates, Series 2006-C7, Class AM, 5.78%, 6/10/46 (b)		1,750		1,812,758
Credit Suisse First Boston Mortgage Securities Corp., Series 2005-C3, Class AJ, 4.77%, 7/15/37		705		620,444
Credit Suisse Mortgage Capital Certificates:
Series 2006-C3, Class AM, 5.81%, 6/15/38 (b)		1,000		1,056,006
Series 2006-C5, Class AM, 5.34%, 12/15/39		1,750		1,751,489
Series 2010-RR2, Class 2A, 5.79%, 9/15/39 (a)(b)		1,010		1,110,067
DBRR Trust, Series 2011-C32, Class A3A, 5.74%, 6/17/49 (a)(b)		365		396,307
Extended Stay America Trust, Series 2010-ESHA (a):
Class A, 2.95%, 11/05/27		489		493,750
Class B, 4.22%, 11/05/27		2,000		2,025,276
Class D, 5.50%, 11/05/27		210		213,275
GMAC Commercial Mortgage Securities, Inc., Series 2002-C3, Class A2, 4.93%, 7/10/39		2,053		2,084,653
Greenwich Capital Commercial Funding Corp.:
Series 2006-GG7, Class A4, 5.88%, 7/10/38 (b)		1,165		1,327,709
Series 2007-GG9, Class A4, 5.44%, 3/10/39		2,190		2,431,340
Non-Agency Mortgage-Backed Securities	Par (000)		Value
Commercial Mortgage-Backed Securities (concluded)
GS Mortgage Securities Corp. II, Series 2007-GG10, Class A4, 5.79%, 8/10/45 (b)	USD	435	$	486,326
JPMorgan Chase Commercial Mortgage Securities Corp.:
Series 2004-CB8, Class A1A, 4.16%, 1/12/39 (a)		2,300		2,397,605
Series 2004-CBX, Class A4, 4.53%, 1/12/37		519		519,339
Series 2004-LN2, Class A2, 5.12%, 7/15/41		820		877,614
Series 2006-CB14, Class AM, 5.45%, 12/12/44 (b)		330		342,646
Series 2006-CB16, Class AJ, 5.62%, 5/12/45		730		600,073
LB-UBS Commercial Mortgage Trust (b):
Series 2004-C8, Class C, 4.93%, 12/15/39		1,385		1,345,115
Series 2007-C6, Class A4, 5.86%, 7/15/40		1,761		1,994,429
Series 2007-C7, Class A3, 5.87%, 9/15/45		1,460		1,658,566
Merrill Lynch Mortgage Trust (b):
Series 2004-BPC1, Class A3, 4.47%, 10/12/41		409		413,070
Series 2004-KEY2, Class A4, 4.86%, 8/12/39		1,000		1,077,270
Morgan Stanley, Series 2007-XLC1, Class A2, 0.56%, 7/17/17		610		567,747
Morgan Stanley Capital I:
Series 2004-HQ4, Class A7, 4.97%, 4/14/40		1,000		1,065,040
Series 2007-HQ11, Class A4, 5.45%, 2/12/44 (b)		4,000		4,507,196
Morgan Stanley Reremic Trust, Series 2011-IO, Class A, 2.50%, 3/23/51 (a)		1,092		1,095,604
Titan Europe Plc, Series 2006-4FSX, Class A1, 9.14%, 9/03/14 (b)	GBP	255		389,708
Wachovia Bank Commercial Mortgage Trust:
Series 2006-C28, Class A2, 5.50%, 10/15/48	USD	4,592		4,626,234
Series 2007-C33, Class A4, 5.90%, 2/15/51 (b)		2,185		2,408,753
				46,655,035
Total Non-Agency Mortgage-Backed Securities — 14.9%				58,606,029
Preferred Securities
Capital Trusts
Capital Markets — 0.0%
State Street Capital Trust IV, 1.55%, 6/15/37 (b)		70		49,417
Commercial Banks — 0.2%
Barclays Bank Plc, 5.93% (a)(b)(l)		250		215,625
Fifth Third Capital Trust IV, 6.50%, 4/15/67 (b)		505		501,212
JPMorgan Chase Capital XXV, Series Y, 6.80%, 10/01/37		210		212,100
				928,937
Consumer Finance — 0.2%
Capital One Capital VI, 8.88%, 5/15/40		690		713,074
Capital One Financial Corp. Capital V, 10.25%, 8/15/39		200		208,500
				921,574
Insurance — 1.2%
The Allstate Corp., 6.50%, 5/15/67 (b)		1,950		1,911,000
American International Group, Inc., 8.18%, 5/15/68 (b)		195		206,456
Lincoln National Corp., 6.05%, 4/20/67 (b)		675		619,313
MetLife Capital Trust IV, 7.88%, 12/15/67 (a)		120		132,000
Swiss Re Capital I LP, 6.85% (a)(b)(l)		1,060		956,422
XL Group Plc, Series E, 6.50% (b)(l)		815		690,712
				4,515,903
Total Capital Trusts — 1.6%				6,415,831

See Notes to Financial Statements.
26	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012

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

Trust Preferreds — 0.1%	Par (000)		Value
Commercial Banks — 0.1%
Citigroup Capital XIII, 7.88%, 10/30/40	USD	14,773	$	397,186
Total Preferred Securities — 1.7%				6,813,017
Taxable Municipal Bonds
East Bay Municipal Utility District, RB, Build America Bonds, 5.87%, 6/01/40		950		1,202,310
Indianapolis Local Public Improvement Bond Bank, RB, Build America Bonds, 6.12%, 1/15/40		1,275		1,590,907
Metropolitan Transportation Authority, RB, Build America Bonds, 7.34%, 11/15/39		625		898,906
New York City Municipal Water Finance Authority:
Second General Resolution, Series EE, 5.50%, 6/15/43		465		535,610
RB, 5.72%, 6/15/42		700		890,379
RB, Build America Bonds, Second General Resolution, Series EE, 5.38%, 6/15/43		385		436,725
New York State Dormitory Authority:
5.63%, 3/15/39		550		656,178
5.60%, 3/15/40		950		1,155,399
Port Authority of New York & New Jersey, RB, Consolidated, 159th Series, 6.04%, 12/01/29		385		477,970
University of California, RB, Build America Bonds, 5.95%, 5/15/45		445		529,222
Total Taxable Municipal Bonds — 2.1%				8,373,606
US Government Sponsored Agency Securities
Agency Obligations — 3.2%
Fannie Mae:
6.12%, 10/09/19 (e)(m)		7,055		5,489,192
5.63%, 7/15/37 (n)		775		1,065,921
Federal Home Loan Bank (e):
5.25%, 12/09/22		675		848,550
5.37%, 9/09/24		1,075		1,329,662
Resolution Funding Corp. (m):
1.62%, 7/15/18		525		473,753
1.69%, 10/15/18		525		469,887
Tennessee Valley Authority, 5.25%, 9/15/39 (e)		2,355		2,947,869
				12,624,834
Collateralized Mortgage Obligations — 0.8%
Fannie Mae Mortgage-Backed Securities, Series 2005-5, Class PK, 5.00%, 12/25/34		708		774,120
Freddie Mac Mortgage-Backed Securities:
Series 2825, Class VP, 5.50%, 6/15/15		634		677,146
Series K013, Class A2, 3.97%, 1/25/21 (b)		940		1,035,249
Series K706, Class X1, 1.60%, 10/25/18 (b)		2,605		226,666
FREMF Mortgage Trust (a)(b):
Series 2012-K706, Class B, 4.02%, 11/25/44		145		141,595
Series 2012-K706, Class C, 4.02%, 11/25/44		165		145,369
				3,000,145
Interest Only Collateralized Mortgage Obligations — 0.1%
Freddie Mac Mortgage-Backed Securities:
Series 2579, Class HI, 5.00%, 8/15/17		232		4,191
Series 2611, Class QI, 5.50%, 9/15/32		1,798		213,585
				217,776
US Government Sponsored Agency Securities	Par (000)		Value
Mortgage-Backed Securities — 2.7%
Fannie Mae Mortgage-Backed Securities (o):
4.00%, 3/15/27	USD	4,100	$	4,340,875
5.00%, 3/15/27 – 03/14/42		3,900		4,209,469
5.50%, 3/15/27		300		326,344
3.50%, 3/14/42 (b)		700		723,406
Freddie Mac Mortgage-Backed Securities:
6.00%, 2/01/13 – 12/01/18		721		778,519
4.50%, 3/14/42 (o)		100		106,203
5.00%, 3/14/42 (o)		100		107,656
Ginnie Mae Mortgage-Backed Securities, 5.50%, 8/15/33		86		96,400
				10,688,872
Total US Government Sponsored Agency Securities — 6.8%				26,531,627
US Treasury Obligations
US Treasury Bonds (e):
8.13%, 8/15/21		1,550		2,407,465
6.25%, 8/15/23		5,720		8,117,933
3.50%, 2/15/39		330		359,133
4.25%, 5/15/39		6,045		7,449,520
4.38%, 5/15/40		6,375		8,017,557
4.75%, 2/15/41		1,630		2,174,012
4.38%, 5/15/41		800		1,007,500
3.13%, 11/15/41		30,855		31,110,510
3.13%, 2/15/42		3,255		3,279,412
US Treasury Inflation Indexed Bonds, 2.13%, 2/15/41 (e)		3,808		5,263,761
US Treasury Notes:
0.63%, 1/31/13 (n)		200		200,789
0.25%, 1/31/14 (e)		1,415		1,413,729
0.25%, 2/15/15 (e)		8,145		8,104,275
2.50%, 4/30/15 (e)		965		1,026,066
0.88%, 1/31/17 (e)		7,600		7,607,129
2.25%, 7/31/18 (e)		2,495		2,649,573
2.63%, 8/15/20 (e)		1,105		1,186,580
2.00%, 2/15/22 (e)		29,150		29,209,204
Total US Treasury Obligations — 30.7%				120,584,148
Warrants (p)	Shares
Media — 0.0%
Cumulus Media, Inc. (Expires 3/26/19)		13,751		99,323
Software — 0.0%
Bankruptcy Management Solutions, Inc. (Expires 9/29/17)		90		—
Total Warrants — 0.0%				99,323
Total Long-Term Investments (Cost — $518,319,515) — 138.6%				544,457,338
Short-Term Securities
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.11% (q)(r)		163,811		163,811
Total Short-Term Securities (Cost — $163,811) — 0.1%				163,811

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012	27

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

Options Purchased	Contracts		Value
Exchange-Traded Put Options — 0.0%
Eurodollar 1-Year Mid-Curve Options, Strike Price USD 99.00, Expires 3/16/12		221	$	1,381
	Notional Amount (000)
Over-the-Counter Interest Rate Call Swaptions — 0.0%
Receive a fixed rate of 2.65% and pay a floating rate based on 3-month LIBOR, Expires 5/01/12, Broker Bank of America NA	USD	3,600		68,976
Over-the-Counter Put Options — 0.0%
EUR Put Option, Strike Price USD 1.30, Expires 3/21/12, Broker Citibank NA		8,810		26,926
Over-the-Counter Interest Rate Put Swaptions — 0.1%
Pay a fixed rate of 0.65% and receive a floating rate based on 3-month LIBOR, Expires 7/05/12, Broker Morgan Stanley Capital Services, Inc.		59,900		28,848
Pay a fixed rate of 3.50% and receive a floating rate based on a 6-month EURIBOR, Expires 11/08/12, Broker Citibank NA	EUR	4,000		42,282
				71,130
Total Options Purchased (Cost — $693,411) — 0.1%				168,413
Total Investments Before TBA Sale Commitments and Options Written (Cost — $519,176,737) — 138.8%				544,789,562
TBA Sale Commitments (o)	Par (000)
Fannie Mae Mortgage-Backed Securities:
4.00%, 3/15/27	USD	4,100		(4,340,875	)
5.00%, 3/15/27 – 3/14/42		3,900		(4,209,469	)
5.50%, 3/15/27		300		(326,344	)
3.50%, 3/14/42		700		(723,406	)
Freddie Mac Mortgage-Backed Securities:
4.50%, 3/14/42		100		(106,203	)
5.00%, 3/14/42		100		(107,656	)
Total TBA Sale Commitments (Proceeds — $9,811,934) — (2.5)%				(9,813,953	)
Options Written	Notional Amount (000)		Value
Over-the-Counter Interest Rate Call Swaptions — (0.3)%
Pay a fixed rate of 2.45% and receive a floating rate based on 3-month LIBOR, Expires 02/22/13 Broker Citibank NA	USD	25,000	$	(963,422	)
Pay a fixed rate of 2.60% and receive a floating rate based on 3-month LIBOR, Expires 12/16/13, Broker JPMorgan Chase Bank		1,400		(63,784	)
Pay a fixed rate of 2.09% and receive a floating rate based on 3-month LIBOR, Expires 01/03/14, Broker Deutsche Bank AG		4,200		(107,326	)
Pay a fixed rate of 1.97% and receive a floating rate based on 3-month LIBOR, Expires 01/27/14, Broker Citibank NA		2,400		(51,669	)
				(1,186,201	)
Over-the-Counter Put Options — (0.0)%
EUR Put Option, Strike Price USD 1.25, Expires 3/21/12, Broker Citibank NA		8,810		(1,162	)
Over-the-Counter Interest Rate Put Swaptions — (0.7)%
Receive a fixed rate of 1.50% and pay a floating rate based on 3-month LIBOR, Expires 05/21/12, Broker JPMorgan Chase Bank		124,600		(279,465	)
Receive a fixed rate of 1.55% and pay a floating rate based on 3-month LIBOR, Expires 07/30/12, Broker Citibank NA		200,000		(925,440	)
Receive a fixed rate of 1.70% and pay a floating rate based on 3-month LIBOR, Expires 08/10/12, Broker Bank of America NA		3,900		(14,293	)
Receive a fixed rate of 1.75% and pay a floating rate based on 3-month LIBOR, Expires 08/23/12, Broker Royal Bank of Scotland Plc		142,500		(531,682	)
Receive a fixed rate of 2.90% and pay a floating rate based on 3-month LIBOR, Expires 01/09/13, Broker Citibank NA		6,000		(89,089	)
Receive a fixed rate of 2.45% and pay a floating rate based on 3-month LIBOR, Expires 02/22/13, Broker Citibank NA		25,000		(766,158	)
Receive a fixed rate of 2.60% and pay a floating rate based on 3-month LIBOR, Expires 12/16/13, Broker JPMorgan Chase Bank		1,400		(64,530	)
Receive a fixed rate of 2.09% and pay a floating rate based on 3-month LIBOR, Expires 01/03/14, Broker Deutsche Bank AG		4,200		(79,290	)
Receive a fixed rate of 1.97% and pay a floating rate based on 3-month LIBOR, Expires 01/27/14, Broker Citibank NA		2,400		(53,147	)
				(2,803,094	)
Total Options Written (Premiums Received — $4,225,523) — (1.0)%				(3,990,457	)
Total Investments, Net of TBA Sale
Commitments and Options Written — 135.3%				530,985,152
Liabilities in Excess of Other Assets — (35.3)%				(138,407,350	)
Net Assets — 100.0%			$	392,577,802

See Notes to Financial Statements.
28	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012

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

(a)	Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(b)	Variable rate security. Rate shown is as of report date.
(c)	Non-income producing security.
(d)	Represents a step-down bond that pays an initial coupon rate for the first period and then a lower coupon rate for the following periods. Rate shown is as of report date.
(e)	All or a portion of security has been pledged as collateral in connection with open reverse repurchase agreements.
(f)	Convertible security.
(g)	When-issued security. Unsettled when-issued transactions were as follows:

Counterparty	Value		Unrealized Appreciation
Morgan Stanley & Co., Inc.	$	1,175,149	$	34,149

(h)	Represents a payment-in-kind security which may pay interest/dividends in additional par/shares.
(i)	Issuer filed for bankruptcy and/or is in default of interest payments.
(j)	All or a portion of security has been pledged as collateral in connection with swaps.
(k)	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.
(l)	Security is perpetual in nature and has no stated maturity date.
(m)	Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(n)	All or a portion of security has been pledged as collateral in connection with open financial futures contracts.
(o)	Represents or includes a to-be-announced (“TBA”) transaction. Unsettled TBA transactions as of February 29, 2012 were as follows:

Counterparty	Value			Unrealized Appreciation (Depreciation)
BNP Paribas Securities Corp.	$	310,031		$	(141	)
Credit Suisse Securities (USA) LLC	$	3,455,000		$	4,000
Deutsche Bank Securities, Inc.	$	326,344		$	891
Goldman Sachs & Co., Inc.	$	4,014,531		$	363
JPMorgan Securities, Inc.	$	(3,765,031	)	$	(1,250	)
Morgan Stanley & Co., Inc.	$	(754,069	)	$	(90	)
RBS Greenwich Capital	$	(4,340,875	)	$	(641	)
UBS Securities	$	754,469		$	1,422

(p)	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.
(q)	Represents the current yield as of report date.
(r)	Investments in companies considered to be an affiliate of the Trust during the period, for purposes of Section 2(a)(3) of the 1940 Act, as amended, were as follows:

Affiliate	Shares Held at August 31, 2011		Net Activity			Shares Held at February 29, 2012		Income
BlackRock Liquidity Funds, TempFund, Institutional Class		4,711,687		(4,547,876	)		163,811	$	2,089

• Reverse repurchase agreements outstanding as of February 29, 2012 were as follows:

Counterparty	Interest Rate		Trade Date	Maturity Date		Net Closing Amount		Face Amount
Credit Suisse Securities (USA) LLC	0.13	%	11/29/11	Open	$	2,449,822	$	2,449,000
Credit Suisse Securities (USA) LLC	0.17	%	11/29/11	Open		2,992,163		2,990,850
BNP Paribas Securities Corp.	0.13	%	12/02/11	Open		360,642		360,525
Deutsche Bank AG	(0.50	)%	1/17/12	Open		344,819		345,030
UBS Securities LLC	0.35	%	1/19/12	Open		3,409,267		3,407,875
BNP Paribas Securities Corp.	0.14	%	1/24/12	Open		1,190,808		1,190,637
Barclays Capital, Inc.	0.10	%	1/25/12	Open		2,597,260		2,597,000
Barclays Capital, Inc.	0.12	%	1/25/12	Open		8,209,185		8,208,200
Barclays Capital, Inc.	0.13	%	1/25/12	Open		1,372,147		1,371,969
Deutsche Bank AG	(0.12	)%	1/25/12	Open		259,152		262,300
Deutsche Bank AG	0.12	%	1/25/12	Open		2,660,613		2,660,294
Deutsche Bank AG	0.13	%	1/25/12	Open		2,184,484		2,184,200
UBS Securities LLC	(0.25	)%	2/01/12	Open		475,916		476,012
UBS Securities LLC	(1.25	)%	2/02/12	Open		440,272		440,700
BofA Merrill Lynch	0.11	%	2/07/12	Open		4,832,996		4,832,656
BofA Merrill Lynch	0.12	%	2/07/12	Open		8,009,208		8,008,594
BofA Merrill Lynch	0.01	%	2/13/12	Open		1,415,007		1,415,000
Deutsche Bank AG	0.25	%	2/13/12	3/12/12		1,901,814		1,901,444
BNP Paribas Securities Corp.	0.15	%	2/16/12	Open		1,015,059		1,015,000
BNP Paribas Securities Corp.	0.16	%	2/16/12	Open		1,036,233		1,036,169
BofA Merrill Lynch	0.17	%	2/16/12	Open		857,307		857,250
BNP Paribas Securities Corp.	0.13	%	2/28/12	Open		5,311,600		5,311,562
BNP Paribas Securities Corp.	0.32	%	2/28/12	Open		1,602,229		1,602,200
Deutsche Bank AG	0.16	%	2/28/12	Open		5,467,674		5,467,625
BofA Merrill Lynch	0.12	%	2/29/12	3/01/12		8,114,483		8,114,456
BNP Paribas Securities Corp.	0.09	%	2/29/12	3/01/12		7,628,519		7,628,500
BNP Paribas Securities Corp.	0.18	%	2/29/12	3/01/12		15,522,041		15,521,963
BNP Paribas Securities Corp.	0.19	%	2/29/12	3/01/12		31,626,542		31,626,375
BNP Paribas Securities Corp.	0.32	%	2/29/12	Open		4,520,540		4,520,500
Credit Suisse Securities (USA) LLC	(0.06	)%	2/29/12	3/01/12		29,332,139		29,332,188
Total					$	157,139,941	$	157,136,074

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012	29

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

• Financial futures contracts purchased as of February 29, 2012 were as follows:

Contracts	Issue	Exchange	Expiration	Notional Value		Unrealized Appreciation
2	Long-Term UK Gilt Bond	London International Financial Futures and Options Exchange	March 2012	GBP	232,760	$	10,878
257	30-Year US Treasury Bond	Chicago Board of Trade	June 2012	USD	36,405,656		82,066
Total						$	92,944

• Financial futures contracts sold as of February 29, 2012 were as follows:

Contracts	Issue	Exchange	Expiration	Notional Value		Unrealized Appreciation (Depreciation)
8	Euro-Bund	Eurex	March 2012	EUR	1,119,120	$	(1,291	)
312	Euro-Schatz	Eurex	March 2012	EUR	34,451,040		(23,057	)
67	2-Year US Treasury Note	Chicago Board of Trade	June 2012	USD	14,755,703		4,060
48	5-Year US Treasury Note	Chicago Board of Trade	June 2012	USD	5,912,250		6,259
114	10-Year US Treasury Note	Chicago Board of Trade	June 2012	USD	14,928,656		43,810
40	90-Day Euro-Dollar	Chicago Mercantile	March 2015	USD	9,867,000		(1,370	)
40	90-Day Euro-Dollar	Chicago Mercantile	June 2015	USD	9,850,000		(1,687	)
40	90-Day Euro-Dollar	Chicago Mercantile	September 2015	USD	9,834,000		(2,733	)
40	90-Day Euro-Dollar	Chicago Mercantile	December 2015	USD	9,817,500		(3,722	)
Total						$	20,269

• Foreign currency exchange contracts as of February 29, 2012 were as follows:

Currency Purchased		Currency Sold		Counterparty	Settlement Date	Unrealized Appreciation (Depreciation)
USD	2,295,352	EUR	1,707,000	Deutsche Bank AG	3/01/12	$	21,117
GBP	799,000	USD	1,268,804	UBS Securities LLC	3/02/12		2,325
EUR	863,000	USD	1,142,931	UBS Securities LLC	3/05/12		6,855
GBP	693,000	USD	1,103,178	Deutsche Bank AG	3/05/12		(684	)
USD	1,137,468	EUR	863,000	Citibank NA	3/05/12		(12,319	)
EUR	8,790,000	CHF	10,593,532	UBS Securities LLC	3/06/12		555
EUR	1,700,000	USD	2,221,135	Citibank NA	3/07/12		43,813
EUR	1,470,000	USD	1,920,140	Royal Bank of Scotland Plc	3/07/12		38,373
USD	1,131,750	EUR	863,000	Citibank NA	3/07/12		(18,044	)
AUD	1,220,000	USD	1,308,670	UBS Securities LLC	3/13/12		(1,916	)
NZD	1,710,000	USD	1,420,711	Royal Bank of Scotland Plc	3/13/12		5,117
USD	1,314,294	AUD	1,220,000	HSBC Bank USA	3/13/12		7,540

Foreign currency exchange contracts as of February 29, 2012 were as follows (concluded):

Currency Purchased		Currency Sold		Counterparty	Settlement Date	Unrealized Appreciation (Depreciation)
USD	1,427,183	NZD	1,710,000	Morgan Stanley Capital Services, Inc.	3/13/12	$	1,355
USD	1,616,393	EUR	1,220,000	Citibank NA	3/14/12		(9,079	)
JPY	78,276,510	USD	975,000	Citibank NA	3/16/12		(11,950	)
JPY	74,259,462	USD	925,000	Deutsche Bank AG	3/16/12		(11,373	)
USD	1,950,000	JPY	152,438,520	BNP Paribas Securities Corp.	3/16/12		74,522
USD	1,102,885	GBP	693,000	Deutsche Bank AG	4/11/12		713
USD	1,268,447	GBP	799,000	UBS Securities LLC	4/11/12		(2,311	)
USD	28,767	JPY	2,210,000	Citibank NA	4/11/12		1,571
PHP	53,125,804	USD	1,250,000	Royal Bank of Scotland Plc	4/17/12		(11,607	)
SGD	1,551,750	USD	1,250,000	HSBC Bank USA	4/17/12		(9,196	)
USD	1,250,000	PHP	53,387,500	Morgan Stanley Capital Services, Inc.	4/17/12		5,507
USD	1,250,000	SGD	1,577,488	Standard Chartered Bank	4/17/12		(11,385	)
EUR	1,707,000	USD	2,295,790	Deutsche Bank AG	4/18/12		(21,143	)
USD	9,495,666	EUR	7,392,500	Citibank NA	4/18/12		(355,142	)
USD	2,131,107	EUR	1,629,000	Citibank NA	4/18/12		(39,602	)
USD	367,592	EUR	280,000	Citibank NA	4/18/12		(5,520	)
USD	193,204	EUR	146,000	Citibank NA	4/18/12		(1,347	)
USD	2,977,160	EUR	2,264,000	Deutsche Bank AG	4/18/12		(39,712	)
Total						$	(352,967	)

• Credit default swaps on single-name issues — buy protection outstanding as of February 29, 2012 were as follows:

Issuer	Pay Fixed Rate		Counterparty	Expiration Date	Notional Amount (000)		Unrealized Appreciation (Depreciation)
Radian	5.00	%	Citibank NA	3/20/13	$	1,400	$	188,478
Group, Inc.
Radian	5.00	%	Citibank NA	6/20/15	$	1,400		303,681
Group, Inc.
The New York	1.00	%	Barclays Bank, Inc.	12/20/16	$	1,800		385
Times Co.
Sara Lee Corp.	1.00	%	JPMorgan Chase Bank NA	3/20/17	$	404		(626	)
Total							$	491,918

See Notes to Financial Statements.
30	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012

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

• Credit default swaps on single-name issues — sold protection outstanding as of February 29, 2012 were as follows:

Issuer	Receive Fixed Rate		Counterparty	Expiration Date		Issuer Credit Rating1				Notional Amount (000)2		Unrealized Appreciation (Depreciation)
Aviva USA Corp.		1.00%	Deutsche Bank AG		5/25/12		Not Rated			$	1,150	$	(619	)
Assured Guaranty Corp.		5.00%	Citibank NA		12/20/14			AA	–	$	3		336
Assured Guaranty Corp.		5.00%	Citibank NA		3/20/15			AA	–	$	10		1,330
MetLife, Inc.		1.00%	Credit Suisse Securities (USA) LLC		9/20/16			A	–	$	535		20,656
MetLife, Inc.		1.00%	Deutsche Bank AG		9/20/16			A	–	$	730		22,969
MetLife, Inc.		1.00%	Goldman Sachs & Co.		9/20/16			A	–	$	500		14,705
MetLife, Inc.		1.00%	Morgan Stanley & Co., Inc.		9/20/16			A	–	$	900		26,986
MetLife, Inc.		1.00%	Morgan Stanley & Co., Inc.		9/20/16			A	–	$	275		6,017
Assured Guaranty Corp.		5.00%	Citibank NA		12/20/16			AA	–	$	146		25,075
MetLife, Inc.		1.00%	Citibank NA		12/20/16			A	–	$	298		6,143
MetLife, Inc.		1.00%	Citibank NA		12/20/16			A	–	$	285		7,565
Total												$	131,163

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

• Credit default swaps on traded indexes — buy protection outstanding as of February 29, 2012 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 & Co., Inc.		12/20/15	$	990	$	(202	)
Dow Jones CDX North America Investment Grade Index Series 16	1.00%	Credit Suisse Securities (USA) LLC		6/20/16	$	388		(5,485	)
Dow Jones CDX North America Investment Grade Index Series 16	1.00%	JPMorgan Chase & Co.		6/20/16	$	22		(264	)
Dow Jones CDX North America Investment Grade Index Series 16	1.00%	Morgan Stanley & Co., Inc.		6/20/16	$	1,480		(28,844	)
Total							$	(34,795	)

• Credit default swaps on traded indexes — sold protection outstanding as of February 29, 2012 were as follows:

Index	Receive Fixed Rate	Counterparty	Expiration Date	Credit Rating3	Notional Amount (000)4		Unrealized Appreciation
Markit CMBX North America AAA Index Series 3	0.08%	Morgan Stanley & Co., Inc.	12/13/49	AA	$	525	$	28,946
Markit CMBX North America AAA Index Series 4	0.35%	Morgan Stanley & Co., Inc.	2/17/51	A–	$	525		28,839
Total							$	57,785

	3	Using S&P’s rating of the underlying securities.
	4	The maximum potential amount the Trust may pay should a negative credit event take place as defined under the terms of agreement.
•	Interest rate swaps outstanding as of February 29, 2012 were as follows:

Fixed Rate	Floating Rate	Counterparty	Expiration Date	Notional Amount (000)		Unrealized Appreciation (Depreciation)
1.24%5	6-month EURIBOR	Citibank NA	12/13/13	EUR	40,010	$	204,880
3.27%6	3-month LIBOR	Deutsche Bank AG	5/16/21	USD	910		(102,530	)
3.85%6	3-month LIBOR	UBS Securities LLC	12/14/21	USD	300		(37,959	)
3.02%5	3-month LIBOR	Goldman Sachs & Co.	1/17/22	USD	1,000		(2,991	)
1.97%6	3-month LIBOR	Deutsche Bank AG	2/02/22	USD	2,200		17,832
2.01%6	3-month LIBOR	Credit Suisse Securities (USA) LLC	2/08/22	USD	600		2,810
2.14%6	3-month LIBOR	JPMorgan Chase Bank NA	2/24/22	USD	25,000		(188,488	)
2.58%6	6-month EURIBOR	Deutsche Bank AG	11/11/41	EUR	350		(5,803	)
2.68%6	6-month EURIBOR	Deutsche Bank AG	11/18/41	EUR	745		(33,512	)
2.70%6	3-month LIBOR	Deutsche Bank AG	1/11/42	USD	1,000		16,294
2.85%6	3-month LIBOR	Bank of America NA	2/09/42	USD	1,100		(16,737	)
2.86%6	3-month LIBOR	JPMorgan Chase Bank NA	2/24/42	USD	10,000		(164,984	)
Total						$	(311,188	)

5	Trust pays a floating interest rate and receives fixed rate.
6	Trust pays a fixed interest rate and receives floating rate.

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012	31

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

• Total return swaps outstanding as of February 29, 2012 were as follows:

Reference Entity	Trust Pays/ Receives the Total Return of the Reference Entity	Fixed Rate	Counterparty	Expiration Date	Notional Amount (000)		Unrealized Depreciation
Change in Return of the Consumer Price Index for All Urban Consumers	Pays	2.18%1	Bank of America NA	10/06/21	$	1,880	$	(77,284	)
1 Net payment made at termination.

• 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. These definitions 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 derivative financial instruments. These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:

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

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

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

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

The following tables summarize the inputs used as of February 29, 2012 in determining the fair valuation of the Trust’s investments and derivative financial instruments:

Valuation Inputs	Level 1		Level 2			Level 3		Total
Assets:
Investments:
Long-Term Investments:
Asset-Backed Securities		—	$	19,268,906		$	5,593,922	$	24,862,828
Common Stocks		—		—			3		3
Corporate Bonds		—		280,963,414			5,209,838		286,173,252
Foreign Agency Obligations		—		12,413,505			—		12,413,505
Non-Agency Mortgage-Backed Securities		—		57,641,975			964,054		58,606,029
Preferred Securities	$	397,186		6,415,831			—		6,813,017
Taxable Municipal Bonds		—		8,373,606			—		8,373,606
US Government Sponsored Agency Securities		—		26,531,627			—		26,531,627
US Treasury Obligations		—		120,584,148			—		120,584,148
Warrants		—		99,323			—		99,323
Short-Term Securities		163,811		—			—		163,811
Liabilities:
TBA Sale Commitments		—		(9,813,953	)		—		(9,813,953	)
Total	$	560,997	$	522,478,382		$	11,767,817	$	534,807,196

Valuation Inputs	Level 1			Level 2			Level 3			Total
Derivative Financial Instruments2
Assets:
Credit contracts		—		$	682,111			—		$	682,111
Foreign currency exchange contracts		—			236,289			—			236,289
Interest rate contracts	$	148,454			381,922			—			530,376
Liabilities:
Credit contracts		—			(35,421	)	$	(619	)		(36,040	)
Foreign currency exchange contracts		—			(563,492	)		—			(563,492	)
Interest rate contracts		(33,860	)		(4,542,299	)		—			(4,576,159	)
Other contracts		—			(77,284	)		—			(77,284	)
Total	$	114,594		$	(3,918,174	)	$	(619	)	$	(3,804,199	)

² Derivative financial instruments are financial futures contracts, foreign currency exchange contracts, options and swaps. Financial futures contracts, foreign currency exchange contracts and swaps are valued at the unrealized appreciation/depreciation on the instrument and options are shown at value.

See Notes to Financial Statements.
32	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012

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 to determine 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, 2011	$	6,120,404			—		$	5,241,393		$	1,960,958		$	191		$	102,281		$	77,670		$	13,502,897
Accrued discounts/premiums		(146,593	)		—			190			62			—			—			—		��	(146,341	)
Net realized gain (loss)		89			—			17,862			40,781			—			—			—			58,732
Net change in unrealized appreciation/depreciation1		97,835		$	(1,584	)		(60,374	)		30,880			(191	)		(102,281	)		(1	)		(35,716	)
Purchases		1,364,968			—			62,767			960,976			—			—			—			2,388,711
Sales		(513,437	)		—			(52,000	)		(1,676,933	)		—			—			—			(2,242,370	)
Transfers in2		—			1,587			—			—			—			—			—			1,587
Transfers out2		(1,329,344	)		—			—			(352,670	)		—			—			(77,669	)		(1,759,683	)
Balance, as of February 29, 2012	$	5,593,922		$	3		$	5,209,838		$	964,054			—			—			—		$	11,767,817

1	Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations. The change in unrealized appreciation/depreciation on investments still held at February 29, 2012 was $61,330.
2	The Trust’s policy is to recognize transfers in and transfers out as of the beginning of the period of the event or the change in circumstances that caused the event.

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

	Credit Contracts
Liabilities:
Balance, as of August 31, 2011	$	(941	)
Accrued discounts/premiums		—
Net realized gain (loss)		—
Net change in unrealized appreciation/depreciation3		322
Purchases		—
Issuances4		—
Sales		—
Settlements5		—
Transfers in6		—
Transfers out6		—
Balance, as of February 29, 2012	$	(619	)

3	Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations. The change in unrealized appreciation/depreciation on derivative financial instruments still held at February 29, 2012 was $322.
4	Issuances represent upfront cash received on certain derivative financial instruments.
5	Settlements represent periodic contractual cash flows and/or cash flows to terminate certain derivative financial instruments.
6	The Trust’s policy is to recognize transfers in and transfers out as of the beginning of the period of the event or the change in circumstances that caused the transfer.

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

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012	33

Consolidated Schedule of Investments February 29, 2012 (Unaudited)	BlackRock Corporate High Yield Fund V, Inc. (HYV)
	(Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Auto Components — 3.0%
Delphi Automotive Plc		25,885	$	828,330
Delphi Automotive Plc (180-day lock) (Acquired 11/17/11, cost $3,421,472) (a)		360,536		11,248,714
				12,077,044
Capital Markets — 0.3%
E*Trade Financial Corp. (b)		109,400		1,053,522
Commercial Banks — 0.3%
CIT Group, Inc. (b)		24,890		1,013,272
Communications Equipment — 0.3%
Loral Space & Communications Ltd. (b)		19,132		1,362,964
Diversified Financial Services — 0.6%
Kcad Holdings I Ltd.		280,076,816		2,564,103
Diversified Telecommunication Services — 0.1%
Level 3 Communications, Inc. (b)		22,720		552,323
Electrical Equipment — 0.0%
Medis Technologies Ltd. (b)		109,685		549
Energy Equipment & Services — 1.2%
Laricina Energy Ltd. (b)		70,588		3,031,977
Osum Oil Sands Corp. (b)		120,000		1,515,994
Transocean Ltd.		8,000		426,720
				4,974,691
Hotels, Restaurants & Leisure — 0.0%
Buffets Restaurants Holdings, Inc. (b)		1,854		185
Travelport Worldwide Ltd.		113,632		56,816
				57,001
Media — 1.7%
Belo Corp., Class A		69,821		500,617
Charter Communications, Inc. (b)		98,748		6,261,611
Clear Channel Outdoor Holdings, Inc., Class A (b)		14,202		187,892
				6,950,120
Metals & Mining — 0.1%
African Minerals Ltd. (b)		65,551		599,272
Paper & Forest Products — 0.2%
Ainsworth Lumber Co. Ltd. (b)		181,600		286,317
Ainsworth Lumber Co. Ltd. (b)		208,741		329,108
Western Forest Products, Inc. (b)		74,889		72,660
Western Forest Products, Inc. (b)		74,936		72,705
				760,790
Professional Services — 0.0%
Pendrell Corp. (b)		5,100		12,342
Road & Rail — 0.2%
Dollar Thrifty Automotive Group, Inc. (b)		8,900		675,599
Semiconductors & Semiconductor
Equipment — 0.3%
Spansion, Inc., Class A (b)		94,583		1,210,662
SunPower Corp. (b)		200		1,506
				1,212,168
Software — 0.0%
Bankruptcy Management Solutions, Inc. (b)		737		15
HMH Holdings/EduMedia		133,690		33,422
				33,437
Total Common Stocks — 8.3%				33,899,197

Corporate Bonds	Par (000)		Value
Aerospace & Defense — 0.5%
Huntington Ingalls Industries, Inc.:
6.88%, 3/15/18 (c)	USD	340	$	357,850
7.13%, 3/15/21		480		514,200
Kratos Defense & Security Solutions, Inc., 10.00%, 6/01/17		1,114		1,200,335
				2,072,385
Air Freight & Logistics — 0.5%
National Air Cargo Group, Inc.:
Series 1, 12.38%, 9/02/15		945		985,460
Series 2, 12.38%, 8/16/15		956		996,161
				1,981,621
Airlines — 2.1%
American Airlines Pass-Through Trust, Series 2011-2, Class A, 8.63%, 4/15/23		1,663		1,762,780
Continental Airlines, Inc.:
6.75%, 9/15/15 (c)		900		909,000
Series 1997-4-B, 6.90%, 7/02/18		50		49,466
Series 2010-1, 6.00%, 7/12/20		672		651,508
Delta Air Lines, Inc.:
Series 2009-1-B, 9.75%, 6/17/18		277		293,314
Series 2010-1-B, 6.38%, 7/02/17		800		748,000
United Air Lines, Inc., 12.75%, 7/15/12		2,838		2,937,549
US Airways Pass-Through Trust, 10.88%, 10/22/14		1,020		1,020,000
				8,371,617
Auto Components — 1.8%
Allison Transmission, Inc., 11.00%, 11/01/15 (c)		110		116,188
B-Corp Merger Sub, Inc., 8.25%, 6/01/19 (c)		310		316,200
Dana Holding Corp., 6.75%, 2/15/21		660		714,450
Delphi Corp., 6.13%, 5/15/21 (c)		260		278,850
Icahn Enterprises LP, 8.00%, 1/15/18		4,815		5,103,900
International Automotive Components Group, SL, 9.13%, 6/01/18 (c)		70		62,300
Titan International, Inc., 7.88%, 10/01/17		685		727,812
				7,319,700
Beverages — 0.4%
Cott Beverages, Inc., 8.13%, 9/01/18		394		434,385
Crown European Holdings SA:
7.13%, 8/15/18	EUR	396		565,181
7.13%, 8/15/18 (c)		447		637,970
				1,637,536
Biotechnology — 0.1%
QHP Pharma, 10.25%, 3/15/15 (c)	USD	327		329,008
Building Products — 0.7%
Building Materials Corp. of America (c):
7.00%, 2/15/20		670		726,950
6.75%, 5/01/21		1,510		1,642,125
Momentive Performance Materials, Inc., 11.50%, 12/01/16		710		596,400
				2,965,475
Capital Markets — 1.0%
American Capital Ltd., 7.96%, 12/31/13 (d)		1,040		1,059,282
E*Trade Financial Corp. (c):
12.50%, 11/30/17		1,575		1,834,875
3.46%, 8/31/19 (e)(f)		356		336,865
KKR Group Finance Co., 6.38%, 9/29/20 (c)		970		1,032,290
				4,263,312

See Notes to Financial Statements.
34	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012

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

Corporate Bonds	Par (000)		Value
Chemicals — 3.8%
American Pacific Corp., 9.00%, 2/01/15	USD	1,300	$	1,267,500
Ashland, Inc., 9.13%, 6/01/17		635		712,787
Basell Finance Co. BV, 8.10%, 3/15/27 (c)		735		841,575
Celanese US Holdings LLC, 5.88%, 6/15/21		2,640		2,877,600
Chemtura Corp., 7.88%, 9/01/18		555		596,625
Hexion U.S. Finance Corp., 9.00%, 11/15/20		460		450,800
Huntsman International LLC, 8.63%, 3/15/21		250		282,500
Ineos Finance Plc, 8.38%, 2/15/19 (c)		695		738,437
Kinove German Bondco GmbH, 10.00%, 6/15/18	EUR	561		767,974
KRATON Polymers LLC, 6.75%, 3/01/19	USD	185		188,700
Lyondell Chemical Co., 11.00%, 5/01/18		4,017		4,404,179
LyondellBasell Industries NV, 6.00%, 11/15/21 (c)		245		268,888
Nexeo Solutions LLC, 8.38%, 3/01/18 (c)		275		275,000
PolyOne Corp., 7.38%, 9/15/20		320		344,800
Solutia, Inc., 7.88%, 3/15/20		910		1,066,975
TPC Group LLC, 8.25%, 10/01/17		495		522,225
				15,606,565
Commercial Banks — 2.3%
CIT Group, Inc.:
7.00%, 5/02/16 (c)		4,958		4,964,197
7.00%, 5/01/17		0.00		0.00
7.00%, 5/02/17 (c)		3,555		3,559,444
5.50%, 2/15/19 (c)		890		908,913
Glitnir Banki HF, 6.38%, 9/25/12 (b)(c)(g)		1,005		—
				9,432,554
Commercial Services & Supplies — 2.0%
ACCO Brands Corp., 10.63%, 3/15/15		490		540,842
Aviation Capital Group Corp., 6.75%, 4/06/21 (c)		800		792,992
AWAS Aviation Capital Ltd., 7.00%, 10/17/16 (c)		250		260,732
Brickman Group Holdings, Inc., 9.13%, 11/01/18 (c)		38		36,100
Casella Waste Systems, Inc., 7.75%, 2/15/19		969		964,155
Clean Harbors, Inc., 7.63%, 8/15/16		540		572,400
Iron Mountain, Inc., 7.75%, 10/01/19		620		685,100
Mobile Mini, Inc., 7.88%, 12/01/20		545		572,250
RSC Equipment Rental, Inc.:
10.00%, 7/15/17 (c)		870		1,009,200
8.25%, 2/01/21		1,287		1,364,220
Verisure Holding AB:
8.75%, 9/01/18	EUR	274		368,701
8.75%, 12/01/18		134		158,890
WCA Waste Corp., 7.50%, 6/15/19 (c)	USD	490		496,125
West Corp., 8.63%, 10/01/18		205		224,987
				8,046,694
Communications Equipment — 0.8%
Avaya, Inc., 9.75%, 11/01/15		1,110		1,110,000
Frontier Communications Corp., 6.25%, 1/15/13		1,330		1,373,225
Hughes Satellite Systems Corp., 6.50%, 6/15/19		550		583,000
				3,066,225
Computers & Peripherals — 0.1%
SanDisk Corp., 1.50%, 8/15/17 (f)		330		395,175
Construction & Engineering — 0.1%
Abengoa SA, 8.50%, 3/31/16	EUR	150		204,881
Boart Longyear Management Ltd., 7.00%, 4/01/21 (c)	USD	275		289,438
				494,319
Construction Materials — 0.2%
Xefin Lux SCA:
8.00%, 6/01/18	EUR	100		133,896
8.00%, 6/01/18 (c)		376		503,449
				637,345
Corporate Bonds	Par (000)		Value
Consumer Finance — 1.7%
Credit Acceptance Corp., 9.13%, 2/01/17	USD	660	$	702,900
Ford Motor Credit Co. LLC:
7.80%, 6/01/12		300		303,698
7.00%, 4/15/15		3,030		3,363,300
12.00%, 5/15/15		1,090		1,370,613
6.63%, 8/15/17		193		218,701
5.88%, 8/02/21		641		715,338
Springleaf Finance (FKA AGFS Funding Co.), 6.90%, 12/15/17		155		120,125
				6,794,675
Containers & Packaging — 1.3%
Ardagh Packaging Finance Plc:
7.38%, 10/15/17 (c)		210		225,750
7.38%, 10/15/17 (c)	EUR	600		843,346
7.38%, 10/15/17		100		140,558
9.13%, 10/15/20 (c)	USD	590		609,175
Berry Plastics Corp.:
4.42%, 9/15/14 (h)		445		426,087
8.25%, 11/15/15		175		188,125
9.75%, 1/15/21		530		567,100
GCL Holdings SCA, 9.38%, 4/15/18 (c)	EUR	394		468,496
Graphic Packaging International, Inc., 7.88%, 10/01/18	USD	550		605,000
OI European Group BV, 6.88%, 3/31/17	EUR	233		322,843
Sealed Air Corp., 8.38%, 9/15/21 (c)	USD	375		429,375
Smurfit Kappa Acquisitions, 7.75%, 11/15/19 (c)	EUR	418		600,061
				5,425,916
Diversified Consumer Services — 1.5%
Service Corp. International, 7.00%, 6/15/17	USD	4,425		4,956,000
ServiceMaster Co., 8.00%, 2/15/20 (c)		970		1,023,350
				5,979,350
Diversified Financial Services — 5.3%
Ally Financial, Inc.:
7.50%, 12/31/13		460		489,900
8.30%, 2/12/15		930		1,027,650
6.25%, 12/01/17		760		785,550
7.50%, 9/15/20		1,000		1,101,250
8.00%, 11/01/31		1,705		1,903,206
8.00%, 11/01/31		920		998,251
Axcan Intermediate Holdings, Inc., 12.75%, 3/01/16		552		588,570
Boparan Holdings Ltd. (c):
9.75%, 4/30/18	EUR	155		203,202
9.88%, 4/30/18	GBP	210		329,078
DPL, Inc., 7.25%, 10/15/21 (c)	USD	1,165		1,328,100
FCE Bank Plc, 4.75%, 1/19/15	EUR	1,614		2,204,068
General Motors Financial Co., Inc., 6.75%, 6/01/18	USD	460		496,413
Lehman Brothers Holdings, Inc. (b)(g):
5.38%, 10/17/12	EUR	200		73,010
5.75%, 5/17/13	USD	915		248,194
4.75%, 1/16/14	EUR	1,130		412,507
1.00%, 2/05/14		2,350		876,653
8.80%, 3/01/15	USD	255		69,169
Leucadia National Corp., 8.13%, 9/15/15		1,148		1,277,150
Reynolds Group Issuer, Inc.:
8.75%, 10/15/16 (c)		848		903,120
8.75%, 10/15/16 (c)	EUR	394		557,734
8.75%, 10/15/16		726		1,027,702
7.13%, 4/15/19 (c)	USD	365		385,987
7.88%, 8/15/19 (c)		1,585		1,735,575
9.88%, 8/15/19 (c)		1,615		1,669,506

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012	35

Consolidated 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 Financial Services (concluded)
WMG Acquisition Corp. (c):
9.50%, 6/15/16	USD	180	$	198,900
11.50%, 10/01/18		865		919,062
				21,809,507
Diversified Telecommunication Services — 3.2%
Broadview Networks Holdings, Inc., 11.38%, 9/01/12		1,530		1,373,175
GCI, Inc., 6.75%, 6/01/21		424		429,300
ITC Deltacom, Inc., 10.50%, 4/01/16		420		437,850
Level 3 Escrow, Inc., 8.13%, 7/01/19 (c)		3,569		3,738,527
Level 3 Financing, Inc., 8.63%, 7/15/20 (c)		1,570		1,675,975
Qwest Communications International, Inc.:
7.50%, 2/15/14		2,010		2,017,035
8.00%, 10/01/15		940		1,009,032
Qwest Corp., 7.63%, 6/15/15		850		966,950
Videotron Ltee, 5.00%, 7/15/22 (c)		210		210,525
Windstream Corp.:
8.13%, 8/01/13		510		546,975
7.88%, 11/01/17		630		710,325
				13,115,669
Electric Utilities — 0.8%
The Tokyo Electric Power Co., Inc., 4.50%, 3/24/14	EUR	2,450		3,050,333
Electronic Equipment, Instruments & Components — 0.2%
Elster Finance BV, 6.25%, 4/15/18 (c)		165		222,907
Jabil Circuit, Inc., 8.25%, 3/15/18	USD	350		416,500
NXP BV/NXP Funding LLC, 9.75%, 8/01/18 (c)		300		339,375
				978,782
Energy Equipment & Services — 3.1%
Antero Resources Finance Corp., 7.25%, 8/01/19 (c)		245		258,475
Atwood Oceanics, Inc., 6.50%, 2/01/20		205		215,763
Calfrac Holdings LP, 7.50%, 12/01/20 (c)		585		585,000
Compagnie Générale de Géophysique-Veritas, 7.75%, 5/15/17		365		380,056
Forbes Energy Services Ltd., 9.00%, 6/15/19		540		531,900
Frac Tech Services LLC, 7.63%, 11/15/18 (c)		2,595		2,770,162
Key Energy Services, Inc., 6.75%, 3/01/21		665		696,588
MEG Energy Corp., 6.50%, 3/15/21 (c)		1,455		1,556,850
Oil States International, Inc., 6.50%, 6/01/19		470		505,250
Peabody Energy Corp., 6.25%, 11/15/21 (c)		3,870		4,053,825
Transocean, Inc., 6.38%, 12/15/21		1,115		1,315,867
				12,869,736
Food Products — 0.2%
Darling International, Inc., 8.50%, 12/15/18		360		405,000
Post Holdings, Inc., 7.38%, 2/15/22 (c)		335		356,775
				761,775
Health Care Equipment & Supplies — 2.2%
Biomet, Inc.:
10.00%, 10/15/17		285		309,581
10.38%, 10/15/17 (i)		2,145		2,335,369
DJO Finance LLC:
10.88%, 11/15/14		3,425		3,484,937
7.75%, 4/15/18		155		133,300
Fresenius Medical Care US Finance II, Inc., 5.88%, 1/31/22 (c)		965		1,018,075
Fresenius Medical Care US Finance, Inc., 6.50%, 9/15/18 (c)		308		341,110
Fresenius US Finance II, Inc., 9.00%, 7/15/15 (c)		800		924,000
Teleflex, Inc., 6.88%, 6/01/19		435		468,713
				9,015,085

Corporate Bonds	Par (000)		Value
Health Care Providers & Services — 5.6%
Aviv Healthcare Properties LP, 7.75%, 2/15/19	USD	615	$	628,837
ConvaTec Healthcare E SA, 7.38%, 12/15/17 (c)	EUR	694		959,289
Crown Newco 3 Plc, 7.00%, 2/15/18	GBP	547		858,257
HCA, Inc.:
8.50%, 4/15/19	USD	200		224,000
6.50%, 2/15/20		2,950		3,163,875
7.88%, 2/15/20		135		148,838
7.25%, 9/15/20		3,840		4,185,600
5.88%, 3/15/22		405		415,125
Health Management Associates, Inc., 7.38%, 1/15/20 (c)		1,385		1,443,862
IASIS Healthcare LLC, 8.38%, 5/15/19		1,120		1,069,600
INC Research LLC, 11.50%, 7/15/19 (c)		605		580,800
inVentiv Health, Inc., 10.00%, 8/15/18 (c)		195		177,450
Omnicare, Inc., 7.75%, 6/01/20		1,460		1,626,075
PSS World Medical, Inc., 6.38%, 3/01/22 (c)		425		442,000
Symbion, Inc., 8.00%, 6/15/16		510		492,150
Tenet Healthcare Corp.:
10.00%, 5/01/18		807		940,155
6.25%, 11/01/18 (c)		485		517,131
8.88%, 7/01/19		4,400		5,016,000
				22,889,044
Health Care Technology — 1.0%
IMS Health, Inc., 12.50%, 3/01/18 (c)		3,550		4,224,500
Hotels, Restaurants & Leisure — 2.6%
Caesars Entertainment Operating Co., Inc.:
11.25%, 6/01/17		510		558,450
10.00%, 12/15/18		2,155		1,664,737
Caesars Operating Escrow, LLC., 8.50%, 2/15/20 (c)		1,060		1,081,200
Diamond Resorts Corp., 12.00%, 8/15/18		1,770		1,867,350
El Dorado Resorts LLC, 8.63%, 6/15/19 (c)		200		190,500
Enterprise Inns Plc, 6.50%, 12/06/18	GBP	477		614,676
Little Traverse Bay Bands of Odawa Indians, 9.00%, 8/31/20 (c)	USD	433		381,040
MGM Resorts International:
10.38%, 5/15/14		395		449,313
4.25%, 4/15/15 (f)		795		852,638
11.13%, 11/15/17		2,085		2,371,687
Travelport LLC:
5.15%, 9/01/14 (h)		245		125,563
9.88%, 9/01/14		55		31,488
9.00%, 3/01/16		180		95,400
6.58%, 12/01/16 (c)(h)(i)		599		422,358
Tropicana Entertainment LLC, Series WI, 9.63%, 12/15/14 (b)(g)		475		—
				10,706,400
Household Durables — 1.5%
Beazer Homes USA, Inc., 12.00%, 10/15/17		1,960		2,136,400
Jarden Corp., 7.50%, 1/15/20	EUR	447		601,493
Ryland Group, Inc., 6.63%, 5/01/20	USD	500		510,000
Standard Pacific Corp.:
10.75%, 9/15/16		2,210		2,538,737
8.38%, 1/15/21		435		462,188
				6,248,818
Household Products — 0.5%
Ontex IV SA, 7.50%, 4/15/18 (c)	EUR	220		269,657
Spectrum Brands Holdings, Inc.:
9.50%, 6/15/18	USD	530		604,200
9.50%, 6/15/18 (c)		865		986,100
				1,859,957

See Notes to Financial Statements.
36	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012

Consolidated 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 — 2.7%
The AES Corp., 7.38%, 7/01/21 (c)	USD	965	$	1,100,100
Calpine Corp. (c):
7.25%, 10/15/17		265		280,900
7.50%, 2/15/21		150		162,750
7.88%, 1/15/23		420		457,800
Energy Future Holdings Corp., 10.00%, 1/15/20		4,640		5,017,000
Energy Future Intermediate Holding Co. LLC:
10.00%, 12/01/20		1,413		1,534,871
11.75%, 3/01/22 (c)		1,260		1,291,500
Laredo Petroleum, Inc., 9.50%, 2/15/19		755		832,388
QEP Resources, Inc., 5.38%, 10/01/22		488		492,880
				11,170,189
Industrial Conglomerates — 2.4%
Sequa Corp. (c):
11.75%, 12/01/15		3,550		3,771,875
13.50%, 12/01/15		5,797		6,188,059
				9,959,934
Insurance — 1.0%
Alliant Holdings I, Inc., 11.00%, 5/01/15 (c)(j)		2,500		2,628,125
CNO Financial Group, Inc., 9.00%, 1/15/18 (c)		543		584,404
Genworth Financial, Inc., 7.63%, 9/24/21		630		653,640
MPL 2 Acquisition Canco, Inc., 9.88%, 8/15/18 (c)		375		334,687
				4,200,856
IT Services — 1.7%
Eagle Parent Canada, Inc., 8.63%, 5/01/19 (c)		820		848,700
First Data Corp.:
7.38%, 6/15/19 (c)		285		288,206
8.88%, 8/15/20 (c)		795		860,588
8.25%, 1/15/21 (c)		950		919,125
12.63%, 1/15/21		2,150		2,257,500
SunGard Data Systems, Inc.:
7.38%, 11/15/18		650		698,750
7.63%, 11/15/20		880		950,400
				6,823,269
Machinery — 0.8%
Navistar International Corp.:
3.00%, 10/15/14 (f)		493		555,241
8.25%, 11/01/21		180		196,875
SPX Corp., 6.88%, 9/01/17		260		288,600
UR Financing Escrow Corp. (c)(k):
5.75%, 7/15/18		379		389,423
7.38%, 5/15/20		520		533,650
7.63%, 4/15/22		1,406		1,455,210
				3,418,999
Media — 14.2%
Affinion Group, Inc., 7.88%, 12/15/18		1,200		1,074,000
AMC Networks, Inc., 7.75%, 7/15/21 (c)		330		367,950
CCH II LLC, 13.50%, 11/30/16		4,549		5,231,387
CCO Holdings LLC:
7.88%, 4/30/18		160		174,800
7.38%, 6/01/20		390		429,000
6.50%, 4/30/21		724		769,250
Checkout Holding Corp., 10.96%, 11/15/15 (c)(e)		995		447,750
Cinemark USA, Inc., 8.63%, 6/15/19		375		417,187
Clear Channel Communications, Inc., 9.00%, 3/01/21		815		749,800
Clear Channel Worldwide Holdings, Inc.:
9.25%, 12/15/17		2,201		2,410,095
7.63%, 3/15/20 (c)		1,545		1,545,000
Series B, 9.25%, 12/15/17		8,680		9,548,000
Corporate Bonds	Par (000)		Value
Media (concluded)
Cox Enterprises, Inc.:
Loan Close 2, 4.00%, 8/15/18	USD	1,028	$	1,042,802
Loan Close 3, 4.00%, 8/15/18		1,175		1,192,222
Shares Loan, 4.00%, 8/15/18		1,212		1,229,600
CSC Holdings LLC, 8.50%, 4/15/14		580		643,800
DISH DBS Corp.:
7.00%, 10/01/13		140		150,325
6.75%, 6/01/21		610		677,100
Gray Television, Inc., 10.50%, 6/29/15		1,420		1,499,875
Harland Clarke Holdings Corp.:
6.00%, 5/15/15 (h)		510		348,075
9.50%, 5/15/15		460		362,250
Intelsat Luxembourg SA:
11.25%, 6/15/16		2,240		2,368,800
11.25%, 2/04/17		530		546,562
11.50%, 2/04/17 (i)		1,945		2,003,350
Interactive Data Corp., 10.25%, 8/01/18		1,990		2,243,725
The Interpublic Group of Cos., Inc., 10.00%, 7/15/17		500		572,500
Kabel BW Erste Beteiligungs GmbH, 7.50%, 3/15/19 (c)	EUR	988		1,408,454
Kabel Deutschland Vertrieb und Service GmbH & Co. KG, 6.50%, 6/29/18 (c)		505		709,876
Lamar Media Corp., 5.88%, 2/01/22 (c)	USD	295		307,906
Live Nation Entertainment, Inc., 8.13%, 5/15/18 (c)		1,130		1,202,037
Musketeer GmbH, 9.50%, 3/15/21	EUR	518		745,342
NAI Entertainment Holdings LLC, 8.25%, 12/15/17 (c)	USD	825		907,500
Nielsen Finance LLC:
11.63%, 2/01/14		91		105,788
7.75%, 10/15/18		3,340		3,715,750
Odeon & UCI Finco Plc, 9.00%, 8/01/18 (c)	GBP	308		483,872
ProQuest LLC, 9.00%, 10/15/18 (c)	USD	745		659,325
Unitymedia GmbH:
9.63%, 12/01/19	EUR	235		338,138
9.63%, 12/01/19		845		1,215,856
Unitymedia Hessen GmbH & Co. KG (FKA UPC Germany GmbH):
8.13%, 12/01/17 (c)	USD	935		1,014,475
8.13%, 12/01/17	EUR	662		948,131
UPC Holding BV, 9.88%, 4/15/18 (c)	USD	640		710,400
UPCB Finance II Ltd., 6.38%, 7/01/20 (c)	EUR	1,218		1,614,627
UPCB Finance II, Ltd., 6.38%, 7/01/20		514		681,378
Virgin Media Secured Finance Plc, 7.00%, 1/15/18	GBP	476		817,850
Ziggo Bond Co. BV, 8.00%, 5/15/18	EUR	583		821,393
Ziggo Finance BV, 6.13%, 11/15/17 (c)		1,085		1,499,753
				57,953,056
Metals & Mining — 3.1%
Goldcorp, Inc., 2.00%, 8/01/14 (f)	USD	1,575		1,996,312
New World Resources NV, 7.88%, 5/01/18	EUR	990		1,338,761
Newmont Mining Corp., Series A, 1.25%, 7/15/14 (f)	USD	2,170		2,994,600
Novelis, Inc., 8.75%, 12/15/20		4,920		5,485,800
Taseko Mines Ltd., 7.75%, 4/15/19		605		580,800
Vedanta Resources Plc, 8.25%, 6/07/21 (c)		415		382,838
				12,779,111
Multiline Retail — 1.7%
Dollar General Corp., 11.88%, 7/15/17 (h)		6,421		7,047,112
Oil, Gas & Consumable Fuels — 10.6%
Alpha Natural Resources, Inc., 6.25%, 6/01/21		595		577,150
Aurora USA Oil & Gas, Inc., 9.88%, 2/15/17 (c)		660		679,800
Berry Petroleum Co., 8.25%, 11/01/16		750		781,875
Bill Barrett Corp., 9.88%, 7/15/16		35		38,675
BreitBurn Energy Partners LP, 7.88%, 4/15/22 (c)		375		392,812

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012	37

Consolidated 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)
Carrizo Oil & Gas, Inc., 8.63%, 10/15/18	USD	190	$	197,600
Chesapeake Midstream Partners LP, 6.13%, 7/15/22 (c)		405		419,175
Chesapeake Oilfield Operating LLC, 6.63%, 11/15/19 (c)		80		81,600
Coffeyville Resources LLC, 9.00%, 4/01/15 (c)		392		419,440
Concho Resources, Inc., 7.00%, 1/15/21		610		686,250
Consol Energy, Inc., 8.25%, 4/01/20		2,895		3,155,550
Continental Resources, Inc., 7.13%, 4/01/21		545		604,950
Copano Energy LLC, 7.13%, 4/01/21		495		524,700
Crosstex Energy LP, 8.88%, 2/15/18		265		287,525
Crown Oil Partners IV LP, 15.00%, 3/07/15		869		868,882
Denbury Resources, Inc.:
8.25%, 2/15/20		935		1,065,900
6.38%, 8/15/21		520		573,300
Energy XXI Gulf Coast, Inc.:
9.25%, 12/15/17		825		913,687
7.75%, 6/15/19		1,330		1,403,150
EV Energy Partners LP, 8.00%, 4/15/19		215		225,750
Hilcorp Energy I LP, 7.63%, 4/15/21 (c)		1,115		1,215,350
Holly Energy Partners LP, 6.50%, 3/01/20 (c)		230		234,888
Kodiak Oil & Gas Corp., 8.13%, 12/01/19 (c)		480		513,600
Linn Energy LLC:
6.50%, 5/15/19 (c)		145		147,900
6.25%, 11/01/19 (c)		2,680		2,676,650
8.63%, 4/15/20		330		366,300
7.75%, 2/01/21		305		327,875
MarkWest Energy Partners LP, 6.75%, 11/01/20		195		213,038
Newfield Exploration Co., 6.88%, 2/01/20		1,390		1,501,200
Niska Gas Storage US LLC, 8.88%, 3/15/18		835		801,600
Oasis Petroleum, Inc.:
7.25%, 2/01/19		480		508,800
6.50%, 11/01/21		430		442,900
OGX Petroleo e Gas Participações SA, 8.50%, 6/01/18 (c)		6,975		7,271,437
PBF Holding Co. LLC, 8.25%, 2/15/20 (c)		505		505,000
PetroBakken Energy, Ltd., 8.63%, 2/01/20 (c)		1,285		1,365,312
Petrohawk Energy Corp.:
10.50%, 8/01/14		555		616,744
7.88%, 6/01/15		695		734,094
7.25%, 8/15/18		470		537,562
Petroleum Geo-Services ASA, 7.38%, 12/15/18 (c)		650		682,500
Pioneer Natural Resources Co.:
6.88%, 5/01/18		680		798,777
7.50%, 1/15/20		215		265,691
Plains Exploration & Production Co.:
6.63%, 5/01/21		1,180		1,274,400
6.75%, 2/01/22		750		821,250
Precision Drilling Corp., 6.50%, 12/15/21 (c)		440		469,700
Range Resources Corp.:
8.00%, 5/15/19		515		574,225
5.75%, 6/01/21		1,445		1,546,150
5.00%, 8/15/22 (k)		644		650,440
Ruby Pipeline LLC, 6.00%, 4/01/22 (c)		575		573,847
Samson Investment Co., 9.75%, 2/15/20 (c)		940		989,350
SandRidge Energy, Inc., 7.50%, 3/15/21		675		681,750
SM Energy Co., 6.63%, 2/15/19		195		209,138
				43,415,239
Corporate Bonds	Par (000)		Value
Paper & Forest Products — 2.5%
Ainsworth Lumber Co. Ltd., 11.00%, 7/29/15 (c)(i)	USD	1,816	$	1,325,406
Boise Paper Holdings LLC:
9.00%, 11/01/17		645		709,500
8.00%, 4/01/20		240		263,400
Clearwater Paper Corp.:
10.63%, 6/15/16		585		664,706
7.13%, 11/01/18		865		921,225
Georgia-Pacific LLC, 8.25%, 5/01/16 (c)		2,395		2,653,246
Longview Fibre Paper & Packaging, Inc., 8.00%, 6/01/16 (c)		505		518,888
NewPage Corp., 11.38%, 12/31/14 (b)(g)		3,130		1,885,825
Sappi Papier Holding GmbH, 6.63%, 4/15/21 (c)		200		187,500
Verso Paper Holdings LLC, 11.50%, 7/01/14		1,139		1,161,780
				10,291,476
Pharmaceuticals — 0.6%
Capsugel Finance Co. SCA:
9.88%, 8/01/19	EUR	100		143,222
9.88%, 8/01/19 (c)		300		429,667
Jaguar Holding Co. II, 9.50%, 12/01/19 (c)	USD	620		678,125
Valeant Pharmaceuticals International, 6.50%, 7/15/16 (c)		1,265		1,290,300
				2,541,314
Professional Services — 0.4%
FTI Consulting, Inc., 6.75%, 10/01/20		1,370		1,481,313
Real Estate Investment Trusts (REITs) — 0.7%
Felcor Lodging LP, 6.75%, 6/01/19		2,070		2,116,575
The Rouse Co. LP, 6.75%, 11/09/15		770		805,612
				2,922,187
Real Estate Management & Development — 2.4%
CB Richard Ellis Services, Inc., 6.63%, 10/15/20		500		531,250
Forest City Enterprises, Inc., 7.63%, 6/01/15		2,300		2,265,500
Realogy Corp.:
11.50%, 4/15/17		575		526,125
12.00%, 4/15/17		145		133,400
7.88%, 2/15/19 (c)		3,455		3,351,350
7.63%, 1/15/20 (c)		750		774,375
9.00%, 1/15/20 (c)		535		537,675
Shea Homes LP, 8.63%, 5/15/19 (c)		1,775		1,792,750
				9,912,425
Road & Rail — 1.6%
Avis Budget Car Rental LLC, 8.25%, 1/15/19		190		198,075
Florida East Coast Railway Corp., 8.13%, 2/01/17		610		616,100
Hertz Corp.:
7.50%, 10/15/18		960		1,035,600
6.75%, 4/15/19 (c)		430		450,425
6.75%, 4/15/19		165		172,837
7.38%, 1/15/21		730		790,225
Hertz Holdings Netherlands BV:
8.50%, 7/31/15	EUR	277		398,571
8.50%, 7/31/15 (c)		1,975		2,841,795
				6,503,628
Semiconductors & Semiconductor Equipment — 0.2%
Spansion LLC, 7.88%, 11/15/17	USD	850		835,125
Software — 0.2%
Sophia LP, 9.75%, 1/15/19 (c)		645		693,375

See Notes to Financial Statements.
38	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012

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

Corporate Bonds	Par (000)		Value
Specialty Retail — 2.4%
Asbury Automotive Group, Inc., 8.38%, 11/15/20	USD	540	$	579,150
Hillman Group, Inc., 10.88%, 6/01/18		790		827,525
House of Fraser Funding Plc:
8.88%, 8/15/18 (c)	GBP	420		598,019
8.88%, 8/15/18		221		314,672
Limited Brands, Inc.:
8.50%, 6/15/19	USD	1,170		1,398,150
5.63%, 2/15/22		235		242,050
Phones4u Finance Plc, 9.50%, 4/01/18 (c)	GBP	545		760,828
QVC, Inc. (c):
7.13%, 4/15/17	USD	340		365,500
7.50%, 10/01/19		920		1,021,200
7.38%, 10/15/20		440		487,300
Sally Holdings LLC, 6.88%, 11/15/19 (c)		805		865,375
Sonic Automotive, Inc., 9.00%, 3/15/18		550		598,125
Toys ‘R’ US-Delaware, Inc., 7.38%, 9/01/16 (c)		220		226,050
United Auto Group, Inc., 7.75%, 12/15/16		1,550		1,615,891
				9,899,835
Transportation Infrastructure — 0.2%
Aguila 3 SA, 7.88%, 1/31/18 (c)		632		664,390
Wireless Telecommunication Services — 5.3%
Cricket Communications, Inc., 7.75%, 5/15/16		900		958,500
Digicel Group Ltd. (c):
8.88%, 1/15/15		1,030		1,048,025
9.13%, 1/15/15		2,787		2,842,740
8.25%, 9/01/17		1,650		1,749,000
10.50%, 4/15/18		800		872,000
iPCS, Inc., 2.67%, 5/01/13 (h)		1,460		1,405,250
Matterhorn Mobile Holdings SA, 8.25%, 2/15/20	EUR	400		548,907
MetroPCS Wireless, Inc., 6.63%, 11/15/20	USD	1,600		1,648,000
NII Capital Corp., 7.63%, 4/01/21		992		1,014,320
Sprint Capital Corp., 6.88%, 11/15/28		3,540		2,761,200
Sprint Nextel Corp. (c):
9.00%, 11/15/18		3,240		3,612,600
7.00%, 3/01/20		2,970		3,018,263
				21,478,805
Total Corporate Bonds — 101.8%				416,340,716
Floating Rate Loan Interests (h)
Airlines — 0.2%
Delta Air Lines, Inc., Credit New Term Loan B, 5.50%, 4/20/17		854		833,427
Auto Components — 0.2%
Schaeffler AG, Term Loan C2, 5.29%, 1/27/17		735		737,146
Building Products — 0.2%
Goodman Global, Inc., Term Loan (Second Lien), 9.00%, 10/30/17		748		759,414
Capital Markets — 0.4%
Nuveen Investments, Inc., Incremental Term Loan (First Lien):
7.25%, 5/13/17		995		1,001,965
7.25%, 3/14/19		615		620,381
				1,622,346
Chemicals — 0.2%
PQ Corp. (FKA Niagara Acquisition, Inc.), Term Loan B (First Lien), 3.50%, 7/30/14		348		339,356
Styron Sarl LLC, Term Loan B, 6.00% – 6.75%, 8/02/17		692		624,186
				963,542
Floating Rate Loan Interests (h)	Par (000)		Value
Commercial Services & Supplies — 0.7%
AWAS Finance Luxembourg Sarl, Term Loan B, 5.25%, 6/10/16	USD	707	$	704,788
Delos Aircraft, Inc., Term Loan B2, 7.00%, 3/17/16		875		875,936
Volume Services America, Inc. (FKA Centerplate), Term Loan B, 10.50% – 10.75%, 9/16/16		1,481		1,487,427
				3,068,151
Communications Equipment — 0.1%
Avaya, Inc., Term Loan B1, 3.24%, 10/24/14		290		283,756
Construction & Engineering — 0.7%
Safway Services LLC, Mezzanine Loan, 15.63%, 12/16/17		3,000		3,000,000
Consumer Finance — 1.7%
Springleaf Finance Corp. (FKA AGFS Funding Co.), Term Loan, 5.50%, 5/10/17		7,480		6,818,843
Diversified Consumer Services — 0.0%
ServiceMaster Co.:
Delayed Draw Term Loan, 2.75%, 7/24/14		13		12,461
Term Loan, 2.77% – 3.03%, 7/24/14		127		125,134
				137,595
Diversified Telecommunication Services — 0.5%
Level 3 Financing, Inc.:
Term Loan B, 5.75%, 8/31/18		1,200		1,208,256
Tranche A Term Loan, 2.83%, 3/13/14		750		737,625
				1,945,881
Electronic Equipment, Instruments & Components — 0.1%
CDW LLC (FKA CDW Corp.):
Extended Term Loan, 4.00%, 7/14/17		410		400,701
Term Loan, 3.75%, 10/10/14		155		153,990
				554,691
Energy Equipment & Services — 2.2%
CCS Corp., Incremental Term Loan, 5.62%, 10/17/14		405		405,405
Dynegy Midwest Generation LLC., Coal Co. Term Loan, 9.25%, 8/04/16		2,943		2,926,418
Dynegy Power LLC., Gas Co. Term Loan, 9.25%, 8/04/16		5,386		5,555,832
				8,887,655
Food & Staples Retailing — 0.1%
US Foodservice, Inc., Term Loan B, 2.74%, 7/03/14		250		241,250
Food Products — 0.3%
Advance Pierre Foods, Term Loan (Second Lien), 11.25%, 9/29/17		1,300		1,301,079
Health Care Equipment & Supplies — 0.3%
Hupah Finance, Inc., Term Loan B, 6.25%, 1/21/19		1,120		1,119,306
Health Care Providers & Services — 0.7%
Harden Healthcare LLC:
Term Loan A, 8.50%, 3/02/15		574		562,318
Tranche A Additional Term Loan, 7.75%, 3/02/15		659		645,584
Health Management Associates, Inc., Term Loan B, 4.50%, 11/16/18		580		576,230
inVentiv Health, Inc., Combined Term Loan, 6.50%, 8/04/16		1,237		1,189,088
				2,973,220

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012	39

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

Floating Rate Loan Interests (h)	Par (000)		Value
Hotels, Restaurants & Leisure — 1.3%
Caesars Entertainment Operating Co., Inc.:
Term Loan B-3, 3.00% – 3.58%, 1/28/15	USD	3,081	$	2,886,683
Term Loan B-4, 9.50%, 10/31/16		720		740,621
OSI Restaurant Partners LLC:
Revolver, 2.56% – 2.79%, 6/14/13		14		13,572
Term Loan B, 2.56%, 6/14/14		141		137,678
Station Casinos, Inc., Term Loan B1, 3.24%, 6/17/16		1,550		1,397,588
Travelport LLC (FKA Travelport, Inc.):
Extended Tranche A Term Loan, 6.54%, 9/28/12		276		130,985
Extended Tranche B Term Loan, 14.04%, 12/01/16		857		192,775
				5,499,902
Independent Power Producers & Energy Traders — 0.1%
Texas Competitive Electric Holdings Co. LLC (FKA TXU), Extended Term Loan, 4.76%, 10/10/17		1,103		615,276
Industrial Conglomerates — 0.2%
Sequa Corp., Incremental Term Loan, 6.25%, 12/03/14		650		652,165
IT Services — 0.3%
First Data Corp., Extended Term Loan B, 4.24%, 3/23/18		1,160		1,040,914
Leisure Equipment & Products — 0.2%
Eastman Kodak Co., DIP Term Loan B, 8.50%, 7/20/13		865		875,544
Media — 5.1%
Cengage Learning Acquisitions, Inc. (FKA Thomson Learning):
Term Loan, 2.49%, 7/03/14		485		450,080
Tranche 1 Incremental Term Loan, 7.50%, 7/03/14		2,412		2,334,094
Cequel Communications LLC, Term Loan B, 4.00%, 2/11/19		865		856,151
Clear Channel Communication:
Term Loan B, 3.89%, 1/28/16		3,180		2,609,805
Term Loan C, 3.89%, 1/28/16		567		449,112
HMH Publishing Co. Ltd., Tranche A Term Loan, 6.51%, 6/12/14		1,348		833,119
Intelsat Jackson Holdings SA (FKA Intelsat Jackson Holdings, Ltd.), Tranche B Term Loan, 5.25%, 4/02/18		10,669		10,651,237
Interactive Data Corp., Term Loan B, 4.50%, 2/12/18		75		74,831
Newsday LLC, Fixed Rate Term Loan, 10.50%, 8/01/13		2,150		2,211,812
Univision Communications, Inc., Extended First Lien Term Loan, 4.52%, 3/31/17		500		464,325
				20,934,566
Multiline Retail — 0.3%
HEMA Holding BV, Mezzanine, 9.19%, 7/05/17 (i)	EUR	1,407		1,433,892
Oil, Gas & Consumable Fuels — 0.6%
Obsidian Natural Gas Trust, Term Loan, 7.00%, 11/02/15	USD	2,453		2,464,830
Paper & Forest Products — 0.5%
NewPage Corp., DIP Term Loan, 8.00%, 3/07/13		900		906,750
Verso Paper Finance Holdings LLC, Term Loan, 6.79% – 7.54%, 2/01/13 (i)		2,162		1,080,868
				1,987,618

Floating Rate Loan Interests (h)	Par (000)		Value
Pharmaceuticals — 0.5%
Aptalis Pharma, Inc., Term Loan B, 5.50%, 2/10/17	USD	1,485	$	1,472,378
Pharmaceutical Product Development, Inc., Term Loan, 9.50%, 12/05/18		580		585,075
				2,057,453
Real Estate Investment Trusts (REITs) — 0.6%
iStar Financial, Inc., Term Loan (Second Lien), 5.00%, 6/28/13		2,506		2,494,721
Real Estate Management & Development — 0.3%
Realogy Corp.:
Extended Letter of Credit, 4.53%, 10/10/16		164		152,237
Extended Term Loan, 4.77%, 10/10/16		1,084		1,006,096
				1,158,333
Semiconductors & Semiconductor Equipment — 0.0%
NXP BV, Term Loan A-2, 5.50%, 3/03/17		100		99,250
Software — 0.2%
Infor Enterprise Solutions Holdings, Inc., Extended Delayed Draw Term Loan, 6.29%, 7/28/15		675		659,813
Specialty Retail — 0.2%
Claire’s Stores, Inc., Term Loan B, 2.99% – 3.30%, 5/29/14		778		736,782
Wireless Telecommunication Services — 1.3%
Crown Castle International Corp., Term Loan B, 4.00%, 1/25/19		345		343,430
Vodafone Americas Finance 2, Inc. (i):
Term Loan, 6.88%, 8/11/15		3,046		3,045,701
Term Loan B, 6.25%, 7/11/16		1,908		1,903,043
				5,292,174
Total Floating Rate Loan Interests — 20.3%				83,250,535

Other Interests (l)	Beneficial Interest (000		)
Auto Components — 0.0%
Lear Corp. Escrow		790		7,900
Chemicals — 0.0%
Wellman Holdings, Inc., Litigation Trust Certificate		4,650		46
Hotels, Restaurants & Leisure — 0.0%
Buffets, Inc. (b)		970		10
Media — 0.0%
Adelphia Escrow (b)		1,250		12
Adelphia Recovery Trust (b)		1,568		157
				169
Total Other Interests — 0.0%				8,125

Preferred Securities	Par (000		)
Capital Trusts — 0.2%
Insurance — 0.2%
Genworth Financial, Inc., 6.15%, 11/15/66 (h)		1,270		871,538

See Notes to Financial Statements.
40	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012

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

Preferred Stocks	Shares		Value
Auto Components — 0.8%
Dana Holding Corp., 4.00% (c)(f)		25,990	$	3,498,904
Diversified Financial Services — 1.1%
Ally Financial, Inc., 7.00% (c)		5,010		4,347,114
Media — 0.1%
TRA Global, Inc., 0.00% (b)		420,689		517,448
Real Estate Investment Trusts (REITs) — 0.0%
MPG Office Trust, Inc., Series A, 7.63% (b)		13,326		189,229
Thrifts & Mortgage Finance — 0.1%
Fannie Mae, Series O, 7.00% (b)(h)		40,000		74,000
Freddie Mac, Series Z, 8.38% (b)(h)		108,377		160,398
				234,398
Total Preferred Stocks — 2.1%				8,787,093

Trust Preferreds
Diversified Financial Services — 0.9%
GMAC Capital Trust I, Series 2, 8.13%, 2/15/40 (f)	109,590	2,564,683
RBS Capital Funding Trust VII, 6.08%, 12/31/49 (f)	67,000	915,890
Total Trust Preferreds — 0.9%		3,480,573
Total Preferred Securities — 3.2%		13,139,204

Warrants (m)
Containers & Packaging — 0.0%
MDP Acquisitions Plc (Expires 10/10/13)	1,100	58,653
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	—
Media — 0.1%
Cumulus Media, Inc. (Expires 3/26/19)	62,894	454,271
New Vision Holdings LLC (Expires 9/30/14)	26,189	—
		454,271
Software — 0.0%
Bankruptcy Management Solutions, Inc. (Expires 9/29/17)	491	—
HMH Holdings/EduMedia (Expires 3/09/17)	20,878	—
Total Warrants — 0.1%		512,925
Total Long-Term Investments
(Cost — $533,487,280) — 133.7%		547,150,702

Options Purchased	Contracts
Exchange-Traded Put Options — 0.1%
SPDR S&P 500 ETF Trust:
Strike Price USD 134.00, Expires 3/17/12	1,725	162,150
Strike Price USD 136.00, Expires 3/17/12	300	47,400
Strike Price USD 136.00, Expires 4/21/12	300	95,700
Total Options Purchased (Cost — $664,541) — 0.1%		305,250
Total Investments Before Options Written (Cost — $534,151,821) — 133.8%		547,455,952

Options Written	Contracts		Value
Exchange-Traded Put Options — (0.0)%
SPDR S&P 500 ETF Trust, Strike Price USD 125.00, Expires 3/17/12		1,725	$	(25,013	)
Total Options Written (Premiums Received — $123,355) — (0.0)%				(25,013	)
Total Investments, Net of Options Written — 133.8%				547,430,939
Liabilities in Excess of Other Assets — (33.8)%				(138,255,059	)
Net Assets — 100.0%			$	409,175,880

(a)	Restricted security as to resale. As of report date the Trust held 2.7% of its net assets, with a current value of $11,248,714 in this security.
(b)	Non-income producing security.
(c)	Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(d)	Represents a step-down bond that pays an initial coupon rate for the first period and then a lower coupon rate for the following periods. Rate shown is as of report date.
(e)	Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(f)	Convertible security.
(g)	Issuer filed for bankruptcy and/or is in default of interest payments.
(h)	Variable rate security. Rate shown is as of report date.
(i)	Represents a payment-in-kind security which may pay interest/dividends in additional par/shares.
(j)	All or a portion of security has been pledged as collateral in connection with swaps.
(k)	When-issued security. Unsettled when-issued transactions were as follows:

Counterparty	Value		Unrealized Appreciation
Bank of America Securities, Inc.	$	650,440	$	6,440
Morgan Stanley & Co., Inc.	$	2,378,283	$	73,283

(l)	Other interests represent beneficial interests in liquidation trusts and other reorganization or private entities.
(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.
•	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, 2011		Net Activity			Shares Held at February 29, 2012		Income
BlackRock Liquidity Funds, TempFund, Institutional Class		1,171,689		(1,171,689	)		—	$	397

• Financial futures contracts sold as of February 29, 2012 were as follows:

Contracts	Issue	Exchange	Expiration	Notional Value		Unrealized Depreciation
179	S&P 500	Chicago	March 2012	$	12,211,380	$	(387,946	)
	Index E-Mini	Mercantile

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012	41

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

• Foreign currency exchange contracts as of February 29, 2012 were as follows:

Currency Purchased		Currency Sold		Counterparty		Settlement Date	Unrealized Appreciation (Depreciation)
GBP	110,000	USD	172,509		Royal Bank of Scotland Plc	4/11/12	$	2,440
USD	1,461,430	CAD	1,500,000		Citibank NA	4/11/12		(53,214)
USD	3,457,588	CAD	3,531,000		Royal Bank of Scotland Plc	4/11/12		(107,884)
USD	4,940,604	GBP	3,223,000		UBS Securities LLC	4/11/12		(185,410)
EUR	170,000	USD	220,118		Citibank NA	4/18/12		6,417
EUR	480,000	USD	646,239		Deutsche Bank AG	4/18/12		(6,610)
USD	27,919,892	EUR	21,736,000		Citibank NA	4/18/12		(1,044,650)
USD	389,040	EUR	296,000		Citibank NA	4/18/12		(5,398)
USD	809,101	EUR	610,000		Citibank NA	4/18/12		(3,761)
USD	194,527	EUR	147,000		Citibank NA	4/18/12		(1,359)
USD	153,982	EUR	119,000		Deutsche Bank AG	4/18/12		(4,593)
USD	66,299	EUR	50,000		Deutsche Bank AG	4/18/12		(329)
USD	1,178,909	EUR	905,000		Royal Bank of Scotland Plc	4/18/12		(27,058)
USD	501,389	EUR	378,000		Royal Bank of Scotland Plc	4/18/12		(2,319)
USD	627,484	EUR	475,000		UBS Securities LLC	4/18/12		(5,482)
Total							$	(1,439,210)

• Credit default swaps on single-name issues — buy protection outstanding as of February 29, 2012 were as follows:

Issuer	Pay Fixed Rate	Counterparty	Expiration Date		Notional Amount (000)		Unrealized Appreciation (Depreciation)
MGM Resorts International	5.00%	Deutsche Band AG	6/20/15	$	155	$	(8,626)
MGM Resorts International	5.00%	Deutsche Bank AG	6/20/15	$	130		(8,465)
MGM Resorts International	5.00%	Deutsche Bank AG	6/20/15	$	250		(13,059)
MGM Resorts International	5.00%	Deutsche Bank AG	6/20/15	$	130		(3,687)
MGM Resorts International	5.00%	Deutsche Bank AG	6/20/15	$	130		(4,649)
Republic of Hungary	1.00%	Deutsche Bank AG	12/20/15	$	450		23,961
Realogy Corp.	5.00%	Goldman Sachs International	9/20/16	$	200		(23,109)
iStar Financial, Inc.	5.00%	Deutsche Bank AG	12/20/16	$	350		(35,906)
Israel (State of)	1.00%	Deutsche Bank AG	3/20/17	$	335		(3,483)
Israel Government Bond	1.00%	Deutsche Bank AG	3/20/17	$	1,000		(11,089)
Total						$	(88,112)

• Credit default swaps on single-name issues — sold protection outstanding as of February 29, 2012 were as follows:

Issuer	Receive Fixed Rate	Counterparty	Expiration Date	Issuer Credit Rating1		Notional Amount (000)2		Unrealized Appreciation (Depreciation)
Air Lease Corp.	5.00%	Goldman Sachs International	2/14/13	Not Rated	$	800	$	1,103
CIT Group, Inc.	5.00%	Deutsche Bank AG	9/20/15	BB–	$	4,700		313,885
ARAMARK Corp.	5.00%	Goldman Sachs International	3/20/16	B	$	750		39,744
ARAMARK Corp.	5.00%	Goldman Sachs International	6/20/16	B	$	500		23,789
ARAMARK Corp.	5.00%	Goldman Sachs International	6/20/16	B	$	500		26,932
ARAMARK Corp.	5.00%	Credit Suisse Securities (USA) LLC	9/20/16	B	$	200		16,201
ARAMARK Corp.	5.00%	Goldman Sachs International	9/20/16	B	$	200		15,461
ARAMARK Corp.	5.00%	Goldman Sachs International	9/20/16	B	$	450		20,322
Bausch & Lomb, Inc.	5.00%	Credit Suisse Securities (USA) LLC	3/20/17	B	$	160		8,011
ARAMARK Corp.	5.00%	Deutsche Bank AG	3/20/17	B	$	295		6,353
Crown Castle International Corp.	7.25%	Deutsche Bank AG	3/20/17	B–	$	690		14,966
Ford Motor Co.	5.00%	Deutsche Bank AG	3/20/17	BB+	$	2,200		132,448
CCO Holdings LLC	8.00%	Deutsche Bank AG	9/20/17	BB–	$	2,400		(134)
Total							$	619,081

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

• 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. These definitions 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 derivative financial instruments. These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:

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

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

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

See Notes to Financial Statements.
42	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012

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

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

The following tables summarize the inputs used as of February 29, 2012 in determining the fair valuation of the Trust’s investments and derivative financial instruments:

Valuation Inputs	Level 1			Level 2			Level 3			Total
Assets:
Investments:
Long-Term Investments:
Common Stocks	$	14,848,884		$	11,847,986		$	7,202,327		$	33,899,197
Corporate Bonds		—			409,644,549			6,696,167			416,340,716
Floating Rate Loan Interests		—			69,391,312			13,859,223			83,250,535
Other Interests		157			—			7,968			8,125
Preferred Securities		3,904,201			8,717,556			517,447			13,139,204
Warrants		—			512,924			1			512,925
Total	$	18,753,242		$	500,114,327		$	28,283,133		$	547,150,702
Valuation Inputs	Level 1			Level 2			Level 3			Total
Derivative Financial Instruments1
Assets:
Credit contracts		—		$	313,222		$	329,954		$	643,176
Foreign currency exchange contracts		—			8,857			—			8,857
Equity contracts	$	305,250			—			—			305,250
Liabilities:
Credit contracts		—			(112,073	)		(134	)		(112,207	)
Foreign currency exchange contracts		—			(1,448,067	)		—			(1,448,067	)
Equity contracts		(412,959	)		—			—			(412,959	)
Total	$	(107,709	)	$	(1,238,061	)	$	329,820		$	(1,015,950	)

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

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

	Common Stocks			Corporate Bonds			Floating Rate Loan Interests			Other Interests			Preferred Securities			Warrants			Total
Assets:
Balance, as of August 31, 2011	$	3,390,998		$	8,408,570		$	14,224,136		$	3,097,694		$	985,270		$	355,505		$	30,462,173
Accrued discounts/premiums		—			3,387			120,185			—			—			—			123,572
Net realized gain (loss)		8,788			(3,496,785	)		(359,806	)		—			—			—			(3,847,803	)
Net change in unrealized appreciation/depreciation2		2,239,989			3,519,894			(839,134	)		(3,089,726	)		(467,823	)		(275	)		1,362,925
Purchases		1,573,669			935,832			620,035			—			—			—			3,129,536
Sales		(11,117	)		(2,674,731	)		(991,223	)		—			—			—			(3,677,071	)
Transfers in3		—			—			3,304,905			—			—			—			3,304,905
Transfers out3		—			—			(2,219,875	)		—			—			(355,229	)		(2,575,104	)
Balance, as of February 29, 2012	$	7,202,327		$	6,696,167		$	13,859,223		$	7,968		$	517,447		$	1		$	28,283,133

2	Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations. The change in unrealized appreciation/depreciation on investments still held at February 29, 2012 was $(2,179,491).
3	The Trust’s policy is to recognize transfers in and transfers out as of the beginning of the period of the event or the change in circumstances that caused the transfer.

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

	Credit Contracts
Liabilities:
Balance, as of August 31, 2011		—
Accrued discounts/premiums	$	(43,709	)
Net realized gain (loss)		—
Net change in unrealized appreciation/depreciation4		329,820
Purchases		—
Issuances5		408,569
Sales		—
Settlements6		(364,860	)
Transfers in7		—
Transfers out7		—
Balance, as of February 29, 2012	$	329,820

4	Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations. The change in unrealized appreciation/depreciation on derivative financial instruments still held at February 29, 2012 was $329,820.
5	Issuances represent upfront cash received on certain derivative financial instruments.
6	Settlements represent periodic contractual cash flows and/or cash flows to terminate certain derivative financial instruments.
7	The Trust’s policy is to recognize transfers in and transfers out as of the beginning of the period of the event or the change in circumstances that caused the transfer.

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

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012	43

Consolidated Schedule of Investments February 29, 2012 (Unaudited)	BlackRock Corporate High Yield Fund VI, Inc. (HYT)
	(Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Auto Components — 3.1%
Dana Holding Corp. (a)		94,250	$	1,508,000
Delphi Automotive Plc		21,191		678,109
Delphi Automotive Plc (180-day lock) (Acquired 11/17/11, cost $4,028,721) (b)		355,462		11,090,417
				13,276,526
Capital Markets — 0.3%
E*Trade Financial Corp. (a)		116,200		1,119,006
Commercial Banks — 0.2%
CIT Group, Inc. (a)		26,110		1,062,938
Communications Equipment — 0.4%
Loral Space & Communications Ltd. (a)		21,531		1,533,868
Diversified Financial Services — 0.6%
Kcad Holdings I Ltd.		305,538,344		2,797,204
Diversified Telecommunication Services — 0.1%
Level 3 Communications, Inc. (a)		23,800		578,578
Electrical Equipment — 0.0%
Medis Technologies Ltd. (a)		116,910		585
Energy Equipment & Services — 1.2%
Laricina Energy Ltd. (a)		70,588		3,031,977
Osum Oil Sands Corp. (a)		124,000		1,566,527
Transocean Ltd.		8,400		448,056
				5,046,560
Hotels, Restaurants & Leisure — 0.0%
Buffets Restaurants Holdings, Inc. (a)		1,816		182
Travelport Worldwide Ltd.		118,935		59,467
				59,649
Media — 1.7%
Belo Corp., Class A		73,341		525,855
Charter Communications, Inc. (a)		101,076		6,409,229
Clear Channel Outdoor Holdings, Inc., Class A (a)		14,553		192,536
				7,127,620
Metals & Mining — 0.1%
African Minerals Ltd. (a)		72,301		660,981
Paper & Forest Products — 0.2%
Ainsworth Lumber Co. Ltd. (a)		221,591		349,368
Ainsworth Lumber Co. Ltd. (a)		192,951		304,213
Western Forest Products, Inc. (a)		78,039		75,716
				729,297
Professional Services — 0.0%
Pendrell Corp. (a)		5,400		13,068
Road & Rail — 0.2%
Dollar Thrifty Automotive Group, Inc. (a)		9,100		690,781
Semiconductors & Semiconductor Equipment — 0.3%
Spansion, Inc., Class A (a)		103,218		1,321,190
SunPower Corp. (a)		431		3,246
				1,324,436
Software — 0.0%
Bankruptcy Management Solutions, Inc. (a)		787		16
HMH Holdings/EduMedia		141,287		35,322
				35,338
Total Common Stocks — 8.4%				36,056,435
Corporate Bonds	Par (000)		Value
Aerospace & Defense — 0.5%
Huntington Ingalls Industries, Inc.:
6.88%, 3/15/18	USD	370	$	389,425
7.13%, 3/15/21		520		557,050
Kratos Defense & Security Solutions, Inc., 10.00%, 6/01/17		1,144		1,232,660
				2,179,135
Airlines — 2.2%
American Airlines Pass-Through Trust, Series 2011-2, Class A, 8.63%, 4/15/23		1,744		1,848,640
Continental Airlines, Inc.:
6.75%, 9/15/15 (c)		900		909,000
6.90%, 7/02/18		793		791,454
Series 2010-1, Class B, 6.00%, 7/12/20		672		651,508
Delta Air Lines, Inc.:
Series 2009-1-B, Class B, 9.75%, 6/17/18		293		310,913
Series 2010-1-B, 6.38%, 7/02/17		900		841,500
United Air Lines, Inc., 12.75%, 7/15/12		3,064		3,171,333
US Airways Pass-Through Trust, Series 2011-1, Class C, 10.88%, 10/22/14		1,070		1,070,000
				9,594,348
Auto Components — 1.8%
Allison Transmission, Inc., 11.00%, 11/01/15 (c)		113		119,356
Baker Corp. International, Inc., 8.25%, 6/01/19 (c)		325		331,500
Dana Holding Corp., 6.75%, 2/15/21		700		757,750
Delphi Corp., 6.13%, 5/15/21 (c)		260		278,850
Icahn Enterprises LP, 8.00%, 1/15/18		5,060		5,363,600
International Automotive Components Group, SL, 9.13%, 6/01/18 (c)		70		62,300
Titan International, Inc., 7.88%, 10/01/17		720		765,000
				7,678,356
Beverages — 0.4%
Cott Beverages, Inc., 8.13%, 9/01/18		413		455,333
Crown European Holdings SA (c):
7.13%, 8/15/18	EUR	413		589,444
7.13%, 8/15/18		465		663,660
				1,708,437
Biotechnology — 0.1%
QHP Pharma, 10.25%, 3/15/15 (c)	USD	349		350,942
Building Products — 0.7%
Building Materials Corp. of America (c):
7.00%, 2/15/20		700		759,500
6.75%, 5/01/21		1,580		1,718,250
Momentive Performance Materials, Inc., 11.50%, 12/01/16		740		621,600
				3,099,350
Capital Markets — 1.1%
American Capital Ltd., 7.96%, 12/31/13 (d)		1,100		1,120,394
E*Trade Financial Corp.:
12.50%, 11/30/17		1,660		1,933,900
3.46%, 8/31/19 (c)(e)(f)		380		359,575
KKR Group Finance Co., 6.38%, 9/29/20 (c)		1,020		1,085,501
				4,499,370
Chemicals — 3.8%
American Pacific Corp., 9.00%, 2/01/15		1,400		1,365,000
Ashland, Inc., 9.13%, 6/01/17		670		752,075
Basell Finance Co. BV, 8.10%, 3/15/27 (c)		770		881,650
Celanese US Holdings LLC, 5.88%, 6/15/21		2,780		3,030,200
Chemtura Corp., 7.88%, 9/01/18		585		628,875
Hexion U.S. Finance Corp., 9.00%, 11/15/20		485		475,300
Huntsman International LLC, 8.63%, 3/15/21		265		299,450
Ineos Finance Plc, 8.38%, 2/15/19 (c)		725		770,312

See Notes to Financial Statements.
44	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012

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

Corporate Bonds	Par (000)		Value
Chemicals (concluded)
Kinove German Bondco GmbH, 10.00%, 6/15/18	EUR	591	$	809,042
Kraton Polymers LLC, 6.75%, 3/01/19	USD	195		198,900
Lyondell Chemical Co., 11.00%, 5/01/18		4,232		4,639,715
LyondellBasell Industries NV, 6.00%, 11/15/21 (c)		250		274,375
Nexeo Solutions LLC, 8.38%, 3/01/18 (c)		290		290,000
PolyOne Corp., 7.38%, 9/15/20		335		360,963
Solutia, Inc., 7.88%, 3/15/20		955		1,119,737
TPC Group LLC, 8.25%, 10/01/17		520		548,600
				16,444,194
Commercial Banks — 2.0%
CIT Group, Inc. (c):
7.00%, 5/02/16		3,305		3,309,131
7.00%, 5/02/17		4,165		4,170,206
5.50%, 2/15/19		930		949,763
				8,429,100
Commercial Services & Supplies — 2.0%
ACCO Brands Corp., 10.63%, 3/15/15		510		562,917
Aviation Capital Group Corp., 6.75%, 4/06/21 (c)		840		832,641
AWAS Aviation Capital Ltd., 7.00%, 10/17/16 (c)		159		166,264
Brickman Group Holdings, Inc., 9.13%, 11/01/18 (c)		43		40,850
Casella Waste Systems, Inc., 7.75%, 2/15/19		1,016		1,010,920
Clean Harbors, Inc., 7.63%, 8/15/16		590		625,400
Iron Mountain, Inc., 7.75%, 10/01/19		640		707,200
Mobile Mini, Inc., 7.88%, 12/01/20		570		598,500
RSC Equipment Rental, Inc.:
10.00%, 7/15/17 (c)		935		1,084,600
8.25%, 2/01/21		1,348		1,428,880
Verisure Holding AB:
8.75%, 9/01/18	EUR	385		518,065
8.75%, 12/01/18		139		164,819
WCA Waste Corp., 7.50%, 6/15/19 (c)	USD	520		526,500
West Corp., 8.63%, 10/01/18		210		230,475
				8,498,031
Communications Equipment — 0.8%
Avaya, Inc., 9.75%, 11/01/15		1,160		1,160,000
Frontier Communications Corp., 6.25%, 1/15/13		1,390		1,435,175
Hughes Satellite Systems Corp., 6.50%, 6/15/19		580		614,800
				3,209,975
Computers & Peripherals — 0.1%
SanDisk Corp., 1.50%, 8/15/17 (f)		340		407,150
Construction & Engineering — 0.1%
Abengoa SA, 8.50%, 3/31/16	EUR	200		273,175
Boart Longyear Management Property Ltd., 7.00%, 4/01/21 (c)	USD	300		315,750
				588,925
Construction Materials — 0.2%
Xefin Lux SCA:
8.00%, 6/01/18	EUR	210		281,182
8.00%, 6/01/18 (c)		393		526,211
				807,393
Consumer Finance — 1.7%
Credit Acceptance Corp., 9.13%, 2/01/17	USD	710		756,150
Ford Motor Credit Co. LLC:
7.80%, 6/01/12		300		303,698
7.00%, 4/15/15		3,140		3,485,400
12.00%, 5/15/15		1,150		1,446,060
6.63%, 8/15/17		185		209,635
5.88%, 8/02/21		907		1,012,187
Springleaf Finance (FKA AGFS Funding Co.), 6.90%, 12/15/17		160		124,000
				7,337,130
Corporate Bonds	Par (000)		Value
Containers & Packaging — 1.3%
Ardagh Packaging Finance Plc:
7.38%, 10/15/17 (c)	USD	210	$	225,750
7.38%, 10/15/17	EUR	100		140,558
7.38%, 10/15/17 (c)		574		806,801
9.13%, 10/15/20 (c)	USD	615		634,987
Berry Plastics Corp.:
4.42%, 9/15/14 (g)		465		445,238
8.25%, 11/15/15		185		198,875
9.75%, 1/15/21		560		599,200
GCL Holdings SCA, 9.38%, 4/15/18 (c)	EUR	414		492,278
Graphic Packaging International, Inc., 7.88%, 10/01/18	USD	580		638,000
OI European Group BV, 6.88%, 3/31/17	EUR	254		351,940
Sealed Air Corp., 8.38%, 9/15/21 (c)	USD	395		452,275
Smurfit Kappa Acquisitions (c):
7.25%, 11/15/17	EUR	52		74,129
7.75%, 11/15/19		449		644,563
				5,704,594
Diversified Consumer Services — 1.5%
Service Corp. International, 7.00%, 6/15/17	USD	4,775		5,348,000
ServiceMaster Co., 8.00%, 2/15/20 (c)		1,020		1,076,100
				6,424,100
Diversified Financial Services — 5.0%
Ally Financial, Inc.:
7.50%, 12/31/13		700		745,500
8.30%, 2/12/15		950		1,049,750
6.25%, 12/01/17		820		847,567
7.50%, 9/15/20		1,050		1,156,312
8.00%, 11/01/31		1,820		2,031,575
8.00%, 11/01/31		950		1,030,802
Axcan Intermediate Holdings, Inc., 12.75%, 3/01/16		577		615,226
Boparan Holdings Ltd. (c):
9.75%, 4/30/18	EUR	166		217,623
9.88%, 4/30/18	GBP	225		352,583
DPL, Inc., 7.25%, 10/15/21 (c)	USD	1,230		1,402,200
FCE Bank Plc, 4.75%, 1/19/15	EUR	1,793		2,448,509
General Motors Financial Co., Inc., 6.75%, 6/01/18	USD	460		496,413
Leucadia National Corp., 8.13%, 9/15/15		1,232		1,370,600
Reynolds Group Issuer, Inc. (c):
8.75%, 10/15/16		941		1,002,165
8.75%, 10/15/16 (h)	EUR	385		544,994
8.75%, 10/15/16		756		1,070,170
7.13%, 4/15/19	USD	385		407,138
7.88%, 8/15/19		1,645		1,801,275
9.88%, 8/15/19		1,695		1,752,206
WMG Acquisition Corp. (c):
9.50%, 6/15/16		190		209,950
11.50%, 10/01/18		910		966,875
				21,519,433
Diversified Telecommunication Services — 3.3%
Broadview Networks Holdings, Inc., 11.38%, 9/01/12		1,680		1,507,800
GCI, Inc., 6.75%, 6/01/21		444		449,550
ITC Deltacom, Inc., 10.50%, 4/01/16		440		458,700
Level 3 Escrow, Inc., 8.13%, 7/01/19 (c)		3,737		3,914,507
Level 3 Financing, Inc., 8.63%, 7/15/20 (c)		1,660		1,772,050
Qwest Communications International, Inc.:
7.50%, 2/15/14		2,100		2,107,350
8.00%, 10/01/15		1,010		1,084,172

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012	45

Consolidated 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 Corp., 7.63%, 6/15/15	USD	875	$	995,389
Videotron Ltee, 5.00%, 7/15/22 (c)		230		230,575
Windstream Corp.:
8.13%, 8/01/13		703		753,968
7.88%, 11/01/17		627		706,943
				13,981,004
Electric Utilities — 0.8%
The Tokyo Electric Power Co., Inc., 4.50%, 3/24/14	EUR	2,600		3,237,088
Electronic Equipment, Instruments & Components — 0.2%
Elster Finance BV, 6.25%, 4/15/18 (c)		173		233,715
Jabil Circuit, Inc., 8.25%, 3/15/18	USD	365		434,350
NXP BV/NXP Funding LLC, 9.75%, 8/01/18 (c)		310		350,687
				1,018,752
Energy Equipment & Services — 3.2%
Antero Resources Finance Corp., 7.25%, 8/01/19 (c)		260		274,300
Atwood Oceanics, Inc., 6.50%, 2/01/20		215		226,288
Calfrac Holdings LP, 7.50%, 12/01/20 (c)		610		610,000
Compagnie Générale de Géophysique-Veritas, 7.75%, 5/15/17		395		411,294
Forbes Energy Services Ltd., 9.00%, 6/15/19		555		546,675
Frac Tech Services LLC, 7.63%, 11/15/18 (c)		2,730		2,914,275
Key Energy Services, Inc., 6.75%, 3/01/21		700		733,250
MEG Energy Corp., 6.50%, 3/15/21 (c)		1,530		1,637,100
Oil States International, Inc., 6.50%, 6/01/19		495		532,125
Peabody Energy Corp., 6.25%, 11/15/21 (c)		4,070		4,263,325
Transocean, Inc., 6.38%, 12/15/21		1,170		1,380,775
				13,529,407
Food Products — 0.2%
Darling International, Inc., 8.50%, 12/15/18		375		421,875
Post Holdings, Inc., 7.38%, 2/15/22 (c)		350		372,750
				794,625
Health Care Equipment & Supplies — 2.2%
Biomet, Inc.:
10.00%, 10/15/17		300		325,875
10.38%, 10/15/17 (i)		2,240		2,438,800
DJO Finance LLC:
10.88%, 11/15/14		3,595		3,657,912
7.75%, 4/15/18		160		137,600
Fresenius Medical Care US Finance II, Inc., 5.88%, 1/31/22 (c)		1,010		1,065,550
Fresenius Medical Care US Finance, Inc., 6.50%, 9/15/18 (c)		324		358,830
Fresenius US Finance II, Inc., 9.00%, 7/15/15 (c)		850		981,750
Teleflex, Inc., 6.88%, 6/01/19		455		490,263
				9,456,580
Health Care Providers & Services — 5.4%
Aviv Healthcare Properties LP, 7.75%, 2/15/19		640		654,400
ConvaTec Healthcare E SA, 7.38%, 12/15/17 (c)	EUR	694		959,289
Crown Newco 3 Plc, 7.00%, 2/15/18 (c)	GBP	575		902,189
HCA, Inc.:
8.50%, 4/15/19	USD	205		229,600
6.50%, 2/15/20		3,100		3,324,750
7.88%, 2/15/20		145		159,863
7.25%, 9/15/20		4,020		4,381,800
5.88%, 3/15/22		425		435,625
Health Management Associates, Inc., 7.38%, 1/15/20 (c)		1,460		1,522,050
IASIS Healthcare LLC, 8.38%, 5/15/19		1,170		1,117,350
INC Research LLC, 11.50%, 7/15/19 (c)		640		614,400
Corporate Bonds	Par (000)		Value
Health Care Providers & Services (concluded)
inVentiv Health, Inc., 10.00%, 8/15/18 (c)	USD	200	$	182,000
Omnicare, Inc., 7.75%, 6/01/20		1,520		1,692,900
PSS World Medical, Inc., 6.38%, 3/01/22 (c)		450		468,000
Symbion, Inc., 8.00%, 6/15/16		535		516,275
Tenet Healthcare Corp.:
10.00%, 5/01/18		1,270		1,479,550
6.25%, 11/01/18 (c)		510		543,787
8.88%, 7/01/19		3,360		3,830,400
				23,014,228
Health Care Technology — 1.0%
IMS Health, Inc., 12.50%, 3/01/18 (c)		3,760		4,474,400
Hotels, Restaurants & Leisure — 2.6%
Caesars Entertainment Operating Co., Inc.:
11.25%, 6/01/17		535		585,825
10.00%, 12/15/18		2,265		1,749,712
Caesars Operating Escrow, LLC., 8.50%, 2/15/20 (c)		1,105		1,127,100
Diamond Resorts Corp., 12.00%, 8/15/18		1,860		1,962,300
El Dorado Resorts LLC, 8.63%, 6/15/19 (c)		210		200,025
Enterprise Inns Plc, 6.50%, 12/06/18	GBP	501		645,603
Little Traverse Bay Bands of Odawa Indians, 9.00%, 8/31/20 (c)	USD	441		388,080
MGM Resorts International:
10.38%, 5/15/14		415		472,063
4.25%, 4/15/15 (f)		830		890,175
11.13%, 11/15/17		2,210		2,513,875
Travelport LLC:
5.15%, 9/01/14 (g)		235		120,438
9.88%, 9/01/14		50		28,625
9.00%, 3/01/16		190		100,700
6.58%, 12/01/16 (c)(g)(i)		627		442,069
Tropicana Entertainment LLC, Series WI, 9.63%, 12/15/14 (a)(j)		515		—
				11,226,590
Household Durables — 1.5%
Beazer Homes USA, Inc., 12.00%, 10/15/17		2,080		2,267,200
Jarden Corp., 7.50%, 1/15/20	EUR	455		612,258
Ryland Group, Inc., 6.63%, 5/01/20	USD	525		535,500
Standard Pacific Corp.:
10.75%, 9/15/16		2,355		2,705,306
8.38%, 1/15/21		455		483,438
				6,603,702
Household Products — 0.5%
Ontex IV SA, 7.50%, 4/15/18 (c)	EUR	220		269,657
Spectrum Brands Holdings, Inc.:
9.50%, 6/15/18	USD	560		638,400
9.50%, 6/15/18 (c)		910		1,037,400
				1,945,457
Independent Power Producers & Energy Traders — 2.9%
AES Corp., 7.38%, 7/01/21 (c)		1,010		1,151,400
Calpine Corp. (c):
7.25%, 10/15/17		275		291,500
7.50%, 2/15/21		160		173,600
7.88%, 1/15/23		435		474,150
Energy Future Holdings Corp., 10.00%, 1/15/20		4,870		5,265,687
Energy Future Intermediate Holding Co. LLC:
10.00%, 12/01/20		1,486		1,614,168
11.75%, 3/01/22 (c)		2,210		2,265,250
Laredo Petroleum, Inc., 9.50%, 2/15/19		790		870,975
QEP Resources, Inc., 5.38%, 10/01/22		513		518,130
				12,624,860

See Notes to Financial Statements.
46	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012

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

Corporate Bonds	Par (000)		Value
Industrial Conglomerates — 2.5%
Sequa Corp. (c):
11.75%, 12/01/15	USD	3,810	$	4,048,125
13.50%, 12/01/15		6,236		6,657,050
				10,705,175
Insurance — 1.2%
Alliant Holdings I, Inc., 11.00%, 5/01/15 (c)(k)		2,600		2,733,250
CNO Financial Group, Inc., 9.00%, 1/15/18 (c)		573		616,691
Genworth Financial, Inc.:
7.63%, 9/24/21		660		684,766
6.15%, 11/15/66 (g)		1,335		916,144
MPL 2 Acquisition Canco, Inc., 9.88%, 8/15/18 (c)		395		352,537
				5,303,388
IT Services — 1.7%
Eagle Parent Canada, Inc., 8.63%, 5/01/19 (c)		860		890,100
First Data Corp.:
7.38%, 6/15/19 (c)		300		303,375
8.88%, 8/15/20 (c)		830		898,475
8.25%, 1/15/21 (c)		1,000		967,500
12.63%, 1/15/21		2,260		2,373,000
SunGard Data Systems, Inc.:
7.38%, 11/15/18		680		731,000
7.63%, 11/15/20		930		1,004,400
				7,167,850
Machinery — 0.8%
Navistar International Corp.:
3.00%, 10/15/14 (f)		511		575,514
8.25%, 11/01/21		188		205,625
SPX Corp., 6.88%, 9/01/17		275		305,250
UR Financing Escrow Corp. (c)(l):
5.75%, 7/15/18		398		408,945
7.38%, 5/15/20		540		554,175
7.63%, 4/15/22		1,289		1,334,115
				3,383,624
Media — 14.4%
Affinion Group, Inc., 7.88%, 12/15/18		1,260		1,127,700
AMC Networks, Inc., 7.75%, 7/15/21 (c)		350		390,250
CCH II LLC, 13.50%, 11/30/16		5,116		5,883,844
CCO Holdings LLC:
7.88%, 4/30/18		160		174,800
7.38%, 6/01/20		410		451,000
6.50%, 4/30/21		755		802,187
Checkout Holding Corp., 10.96%, 11/15/15 (c)(e)		1,040		468,000
Cinemark USA, Inc., 8.63%, 6/15/19		390		433,875
Clear Channel Communications, Inc., 9.00%, 3/01/21		845		777,400
Clear Channel Worldwide Holdings, Inc.:
9.25%, 12/15/17		2,323		2,543,685
7.63%, 3/15/20 (c)		1,625		1,625,000
Series B, 9.25%, 12/15/17		9,551		10,506,100
Cox Enterprises, Inc.:
Loan Close 2, 4.00%, 8/15/18		1,060		1,075,390
Loan Close 3, 4.00%, 8/15/18		1,212		1,229,480
Shares Loan, 4.00%, 8/15/18		1,250		1,268,025
CSC Holdings LLC, 8.50%, 4/15/14		550		610,500
DISH DBS Corp.:
7.00%, 10/01/13		150		161,063
6.75%, 6/01/21		630		699,300
Gray Television, Inc., 10.50%, 6/29/15		1,425		1,505,156
Harland Clarke Holdings Corp.:
6.00%, 5/15/15 (g)		550		375,375
9.50%, 5/15/15		490		385,875
Corporate Bonds	Par (000)		Value
Media (concluded)
Intelsat Luxembourg SA:
11.25%, 6/15/16	USD	2,370	$	2,506,275
11.25%, 2/04/17		560		577,500
11.50%, 2/04/17 (i)		2,070		2,132,100
Interactive Data Corp., 10.25%, 8/01/18		2,080		2,345,200
The Interpublic Group of Cos., Inc., 10.00%, 7/15/17		525		601,125
Kabel BW Erste Beteiligungs GmbH, 7.50%, 3/15/19 (c)	EUR	1,037		1,478,306
Kabel Deutschland Vertrieb und Service GmbH & Co. KG, 6.50%, 6/29/18 (c)		530		745,018
Lamar Media Corp., 5.88%, 2/01/22 (c)	USD	310		323,563
Live Nation Entertainment, Inc., 8.13%, 5/15/18 (c)		1,170		1,244,587
Musketeer GmbH, 9.50%, 3/15/21 (c)	EUR	548		788,508
NAI Entertainment Holdings LLC, 8.25%, 12/15/17 (c)	USD	1,015		1,116,500
Nielsen Finance LLC:
11.63%, 2/01/14		147		170,888
7.75%, 10/15/18		3,425		3,810,312
Odeon & UCI Finco Plc, 9.00%, 8/01/18 (c)	GBP	324		509,008
ProQuest LLC, 9.00%, 10/15/18 (c)	USD	775		685,875
Unitymedia GmbH:
9.63%, 12/01/19	EUR	244		351,088
9.63%, 12/01/19 (c)		900		1,294,995
Unitymedia Hessen GmbH & Co. KG (FKA UPC Germany GmbH):
8.13%, 12/01/17		120		171,867
8.13%, 12/01/17 (c)	USD	885		960,225
8.13%, 12/01/17	EUR	701		1,003,988
UPC Holding BV, 9.88%, 4/15/18 (c)	USD	640		710,400
UPCB Finance II Ltd.:
6.38%, 7/01/20 (c)	EUR	1,273		1,687,537
6.38%, 7/01/20		514		681,378
Virgin Media Secured Finance Plc, 7.00%, 1/15/18	GBP	495		850,495
Ziggo Bond Co. BV, 8.00%, 5/15/18	EUR	610		859,433
Ziggo Finance BV, 6.13%, 11/15/17 (c)		1,136		1,570,248
				61,670,424
Metals & Mining — 3.1%
Goldcorp, Inc., 2.00%, 8/01/14 (f)	USD	1,650		2,091,375
New World Resources NV, 7.88%, 5/01/18	EUR	1,055		1,426,660
Newmont Mining Corp., Series A, 1.25%, 7/15/14 (f)	USD	2,275		3,139,500
Novelis, Inc., 8.75%, 12/15/20		5,140		5,731,100
Taseko Mines Ltd., 7.75%, 4/15/19		650		624,000
Vedanta Resources Plc, 8.25%, 6/07/21 (c)		435		401,287
				13,413,922
Multiline Retail — 1.7%
Dollar General Corp., 11.88%, 7/15/17 (g)		6,753		7,411,485
Oil, Gas & Consumable Fuels — 10.7%
Alpha Natural Resources, Inc., 6.25%, 6/01/21		625		606,250
Aurora USA Oil & Gas, Inc., 9.88%, 2/15/17 (c)		660		679,800
Berry Petroleum Co., 8.25%, 11/01/16		800		834,000
Bill Barrett Corp., 9.88%, 7/15/16		35		38,675
BreitBurn Energy Partners LP, 7.88%, 4/15/22 (c)		400		419,000
Carrizo Oil & Gas, Inc., 8.63%, 10/15/18		200		208,000
Chesapeake Midstream Partners LP, 6.13%, 7/15/22 (c)		425		439,875
Chesapeake Oilfield Operating LLC, 6.63%, 11/15/19 (c)		80		81,600
Coffeyville Resources LLC, 9.00%, 4/01/15 (c)		414		442,980
Concho Resources, Inc., 7.00%, 1/15/21		635		714,375
Consol Energy, Inc., 8.25%, 4/01/20		3,050		3,324,500
Continental Resources, Inc., 7.13%, 4/01/21		575		638,250

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012	47

Consolidated 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)
Copano Energy LLC, 7.13%, 4/01/21	USD	520	$	551,200
Crosstex Energy LP, 8.88%, 2/15/18		280		303,800
Crown Oil Partners IV LP, 15.00%, 3/07/15		911		910,654
Denbury Resources, Inc.:
8.25%, 2/15/20		1,000		1,140,000
6.38%, 8/15/21		540		595,350
Energy XXI Gulf Coast, Inc.:
9.25%, 12/15/17		860		952,450
7.75%, 6/15/19		1,390		1,466,450
EV Energy Partners LP, 8.00%, 4/15/19		220		231,000
Hilcorp Energy I LP, 7.63%, 4/15/21 (c)		1,165		1,269,850
Holly Energy Partners LP, 6.50%, 3/01/20 (c)		245		250,206
Kodiak Oil & Gas Corp., 8.13%, 12/01/19 (c)		505		540,350
Linn Energy LLC:
6.50%, 5/15/19 (c)		145		147,900
6.25%, 11/01/19 (c)		2,805		2,801,494
8.63%, 4/15/20		345		382,950
7.75%, 2/01/21		320		344,000
MarkWest Energy Partners LP, 6.75%, 11/01/20		205		223,963
Newfield Exploration Co., 6.88%, 2/01/20		1,455		1,571,400
Niska Gas Storage US LLC, 8.88%, 3/15/18		890		854,400
Oasis Petroleum, Inc.:
7.25%, 2/01/19		510		540,600
6.50%, 11/01/21		450		463,500
OGX Petroleo e Gas Participações SA, 8.50%, 6/01/18 (c)		7,500		7,818,750
PBF Holding Co. LLC, 8.25%, 2/15/20 (c)		530		530,000
PetroBakken Energy Ltd., 8.63%, 2/01/20 (c)		1,345		1,429,062
Petrohawk Energy Corp.:
10.50%, 8/01/14		595		661,194
7.88%, 6/01/15		680		718,250
7.25%, 8/15/18		495		566,156
Petroleum Geo-Services ASA, 7.38%, 12/15/18 (c)		690		724,500
Pioneer Natural Resources Co.:
6.88%, 5/01/18		715		839,890
7.50%, 1/15/20		225		278,048
Plains Exploration & Production Co.:
6.63%, 5/01/21		1,245		1,344,600
6.75%, 2/01/22		800		876,000
Precision Drilling Corp., 6.50%, 12/15/21 (c)		460		491,050
Range Resources Corp.:
8.00%, 5/15/19		600		669,000
5.75%, 6/01/21		1,520		1,626,400
5.00%, 8/15/22 (l)		644		650,440
Ruby Pipeline LLC, 6.00%, 4/01/22 (c)		605		603,787
Samson Investment Co., 9.75%, 2/15/20 (c)		1,030		1,084,075
SandRidge Energy, Inc., 7.50%, 3/15/21		710		717,100
SM Energy Co., 6.63%, 2/15/19		205		219,863
				45,816,987
Paper & Forest Products — 2.5%
Ainsworth Lumber Co. Ltd., 11.00%, 7/29/15 (c)(i)		1,927		1,407,001
Boise Paper Holdings LLC:
9.00%, 11/01/17		680		748,000
8.00%, 4/01/20		240		263,400
Clearwater Paper Corp.:
10.63%, 6/15/16		625		710,156
7.13%, 11/01/18		885		942,525
Georgia-Pacific LLC, 8.25%, 5/01/16 (c)		2,570		2,847,115
Longview Fibre Paper & Packaging, Inc., 8.00%, 6/01/16 (c)		535		549,713
NewPage Corp., 11.38%, 12/31/14 (a)(j)		3,350		2,018,375
Sappi Papier Holding GmbH, 6.63%, 4/15/21 (c)		200		187,500
Verso Paper Holdings LLC, 11.50%, 7/01/14		1,202		1,226,040
				10,899,825
Corporate Bonds	Par (000)		Value
Pharmaceuticals — 0.6%
Capsugel Finance Co. SCA:
9.88%, 8/01/19	EUR	105	$	150,383
9.88%, 8/01/19 (c)		300		429,667
Jaguar Holding Co. II, 9.50%, 12/01/19 (c)	USD	650		710,937
Valeant Pharmaceuticals International, 6.50%, 7/15/16 (c)		1,310		1,336,200
				2,627,187
Professional Services — 0.4%
FTI Consulting, Inc., 6.75%, 10/01/20		1,450		1,567,813
Real Estate Investment Trusts (REITs) — 0.7%
Felcor Lodging LP, 6.75%, 6/01/19		2,170		2,218,825
The Rouse Co. LP, 6.75%, 11/09/15		805		842,231
				3,061,056
Real Estate Management & Development — 2.4%
CBRE Services, Inc., 6.63%, 10/15/20		520		552,500
Forest City Enterprises, Inc., 7.63%, 6/01/15		2,300		2,265,500
Realogy Corp.:
11.50%, 4/15/17		605		553,575
12.00%, 4/15/17		155		142,600
7.88%, 2/15/19 (c)		3,645		3,535,650
7.63%, 1/15/20 (c)		785		810,513
9.00%, 1/15/20 (c)		560		562,800
Shea Homes LP, 8.63%, 5/15/19 (c)		1,885		1,903,850
				10,326,988
Road & Rail — 1.6%
Avis Budget Car Rental LLC, 8.25%, 1/15/19		200		208,500
Florida East Coast Railway Corp., 8.13%, 2/01/17		650		656,500
Hertz Holdings Netherlands BV:
8.50%, 7/31/15	EUR	295		424,471
8.50%, 7/31/15 (c)		2,080		2,992,878
The Hertz Corp.:
7.50%, 10/15/18	USD	1,005		1,084,144
6.75%, 4/15/19 (c)		450		471,375
6.75%, 4/15/19		175		183,312
7.38%, 1/15/21		765		828,112
				6,849,292
Semiconductors & Semiconductor Equipment — 0.2%
Spansion LLC, 7.88%, 11/15/17		890		874,425
Software — 0.2%
Sophia LP, 9.75%, 1/15/19 (c)		666		715,950
Specialty Retail — 2.4%
Asbury Automotive Group, Inc., 8.38%, 11/15/20		565		605,962
Hillman Group, Inc., 10.88%, 6/01/18		830		869,425
House of Fraser Funding Plc:
8.88%, 8/15/18 (c)	GBP	439		625,073
8.88%, 8/15/18		222		316,096
Limited Brands, Inc.:
8.50%, 6/15/19	USD	1,255		1,499,725
5.63%, 2/15/22		250		257,500
Phones4u Finance Plc, 9.50%, 4/01/18 (c)	GBP	570		795,728
QVC, Inc. (c):
7.13%, 4/15/17	USD	355		381,625
7.50%, 10/01/19		970		1,076,700
7.38%, 10/15/20		455		503,912
Sally Holdings LLC, 6.88%, 11/15/19 (c)		840		903,000
Sonic Automotive, Inc., 9.00%, 3/15/18		580		630,750
Toys ‘R’ US-Delaware, Inc., 7.38%, 9/01/16 (c)		195		200,363
United Auto Group, Inc., 7.75%, 12/15/16		1,670		1,740,992
				10,406,851

See Notes to Financial Statements.
48	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012

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

Corporate Bonds	Par (000)		Value
Transportation Infrastructure — 0.2%
Aguila 3 SA, 7.88%, 1/31/18 (c)	USD	665	$	699,081
Wireless Telecommunication Services — 5.2%
Cricket Communications, Inc., 7.75%, 5/15/16		830		883,950
Digicel Group Ltd. (c):
8.88%, 1/15/15		1,120		1,139,600
9.13%, 1/15/15		2,864		2,921,280
8.25%, 9/01/17		1,720		1,823,200
10.50%, 4/15/18		800		872,000
iPCS, Inc., 2.67%, 5/01/13 (g)		1,585		1,525,563
Matterhorn Mobile Holdings SA, 8.25%, 2/15/20	EUR	400		548,907
MetroPCS Wireless, Inc., 6.63%, 11/15/20	USD	1,690		1,740,700
NII Capital Corp., 7.63%, 4/01/21		1,039		1,062,378
Sprint Capital Corp., 6.88%, 11/15/28		3,680		2,870,400
Sprint Nextel Corp. (c):
9.00%, 11/15/18		3,410		3,802,150
7.00%, 3/01/20		3,110		3,160,537
				22,350,665
Total Corporate Bonds — 101.6%				435,638,644

Floating Rate Loan Interests (g)
Airlines — 0.2%
Delta Air Lines, Inc., Credit New Term Loan B, 5.50%, 4/20/17	866	845,602
Auto Components — 0.2%
Schaeffler AG, Term Loan C2, 5.29%, 1/27/17	765	767,234
Building Products — 0.2%
Goodman Global, Inc., Term Loan (Second Lien), 9.00%, 10/30/17	764	775,572
Capital Markets — 0.4%
Nuveen Investments, Inc., Incremental Term Loan, (First Lien):
7.25%, 5/13/17	1,045	1,052,315
7.25%, 3/14/19	640	645,600
		1,697,915
Chemicals — 0.2%
PQ Corp. (FKA Niagara Acquisition, Inc.), Term Loan B (First Lien), 3.50%, 7/30/14	325	316,857
Styron Sarl LLC, Term Loan B, 6.00% – 6.75%, 8/02/17	677	610,763
		927,620
Commercial Services & Supplies — 0.8%
AWAS Finance Luxembourg Sarl, Term Loan B, 5.25%, 6/10/16	776	773,436
Delos Aircraft, Inc., Term Loan B2, 7.00%, 3/17/16	975	976,043
Volume Services America, Inc. (FKA Centerplate), Term Loan B, 10.50% – 10.75%, 9/16/16	1,580	1,586,589
		3,336,068
Communications Equipment — 0.1%
Avaya, Inc., Term Loan B1, 3.24%, 10/24/14	305	298,433
Construction & Engineering — 0.7%
Safway Services LLC, Mezzanine Loan, 15.63%, 12/16/17	3,250	3,250,000
Consumer Finance — 1.7%
Springleaf Finance Corp. (FKA AGFS Funding Co.), Term Loan, 5.50%, 5/10/17	7,825	7,133,348

Floating Rate Loan Interests (g)	Par (000)		Value
Diversified Consumer Services — 0.0%
ServiceMaster Co.:
Delayed Draw Term Loan, 2.75%, 7/24/14	USD	13	$	12,907
Term Loan, 2.77% – 3.03%, 7/24/14		131		129,603
				142,510
Diversified Telecommunication Services — 0.5%
Level 3 Financing, Inc.:
Term Loan B, 5.75%, 8/31/18		1,300		1,308,944
Tranche A Term Loan, 2.50% – 2.83%, 3/13/14		775		762,212
				2,071,156
Electronic Equipment, Instruments & Components — 0.1%
CDW LLC (FKA CDW Corp.):
Term Loan, 3.75%, 10/10/14		163		162,789
Term Loan, 4.00%, 7/14/17		435		425,134
				587,923
Energy Equipment & Services — 2.2%
CCS Corp., Incremental Term Loan, 5.62%, 10/17/14		425		425,425
Dynegy Midwest Generation LLC, Coal Co. Term Loan, 9.25%, 8/04/16		3,084		3,066,606
Dynegy Power LLC., Gas Co. Term Loan, 9.25%, 8/04/16		5,644		5,821,979
				9,314,010
Food & Staples Retailing — 0.1%
US Foodservice, Inc., Term Loan B, 2.74%, 7/03/14		265		255,725
Food Products — 0.3%
Advance Pierre Foods, Term Loan (Second Lien), 11.25%, 9/29/17		1,300		1,301,079
Health Care Equipment & Supplies — 0.3%
Hupah Finance, Inc., Term Loan B, 6.25%, 1/21/19		1,180		1,179,268
Health Care Providers & Services — 0.7%
Harden Healthcare LLC:
Term Loan A, 8.50%, 3/02/15		574		562,318
Tranche A Additional Term Loan, 7.75%, 3/02/15		741		726,282
Health Management Associates, Inc., Term Loan B, 4.50%, 11/16/18		610		606,035
inVentiv Health, Inc., Combined Term Loan, 6.50%, 8/04/16		1,237		1,189,088
				3,083,723
Hotels, Restaurants & Leisure — 1.3%
Caesars Entertainment Operating Co., Inc.:
Term Loan B-1, 3.24% – 3.58%, 1/28/15		3,252		3,047,233
Term Loan B-4, 9.50%, 10/31/16		755		776,623
OSI Restaurant Partners LLC:
Revolver, 2.56% – 2.79%, 6/14/13		15		14,448
Term Loan B, 2.56%, 6/14/14		150		146,561
Station Casinos, Inc., Term Loan B1, 3.24%, 6/17/16		1,625		1,465,214
Travelport LLC (FKA Travelport, Inc.):
Extended Tranche A Term Loan, 6.54%, 9/28/12		289		137,097
Extended Tranche B Term Loan, 14.04%, 12/01/16		897		201,771
				5,788,947
Independent Power Producers & Energy Traders — 0.1%
Texas Competitive Electric Holdings Co. LLC (FKA TXU), Extended Term Loan, 4.76%, 10/10/17		1,156		645,008
Industrial Conglomerates — 0.2%
Sequa Corp., Incremental Term Loan, 6.25%, 12/03/14		680		682,264

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012	49

Consolidated 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
IT Services — 0.2%
First Data Corp., Extended Term Loan B, 4.24%, 3/23/18	USD	1,220	$	1,094,755
Leisure Equipment & Products — 0.2%
Eastman Kodak Co., DIP Term Loan B, 8.50%, 7/20/13		910		921,093
Media — 5.2%
Cengage Learning Acquisitions, Inc. (FKA Thomson Learning):
Term Loan, 2.49%, 7/03/14		500		464,000
Tranche 1 Incremental Term Loan, 7.50%, 7/03/14		2,654		2,567,503
Cequel Communications LLC, Term Loan B, 4.00%, 2/11/19		865		856,151
Clear Channel Communications:
Term Loan B, 3.89%, 1/28/16		3,325		2,728,805
Term Loan C, 3.89%, 1/28/16		608		481,504
HMH Publishing Co. Ltd., Tranche A Term Loan, 6.51%, 6/12/14		1,420		877,796
Intelsat Jackson Holdings SA (FKA Intelsat Jackson Holdings, Ltd), Tranche B Term Loan, 5.25%, 4/02/18		11,215		11,196,184
Interactive Data Corp., Term Loan B, 4.50%, 2/12/18		80		79,820
Newsday LLC, Fixed Rate Term Loan, 10.50%, 8/01/13		2,450		2,520,438
Univision Communications, Inc., Extended First Lien Term Loan, 4.52%, 3/31/17		520		482,898
				22,255,099
Multiline Retail — 0.4%
HEMA Holding BV, Mezzanine, 9.19%, 7/05/17 (i)	EUR	1,688		1,720,670
Oil, Gas & Consumable Fuels — 0.6%
Obsidian Natural Gas Trust, Term Loan, 7.00%, 11/02/15	USD	2,572		2,584,634
Paper & Forest Products — 0.5%
NewPage Corp., DIP Term Loan, 8.00%, 3/07/13		950		957,125
Verso Paper Finance Holdings LLC, Term Loan, 6.79% – 7.54%, 2/01/13 (i)		2,236		1,117,797
				2,074,922
Pharmaceuticals — 0.5%
Aptalis Pharma, Inc., Term Loan B, 5.50%, 2/10/17		1,485		1,472,377
Pharmaceutical Products Development, Inc., Term Loan B, 9.50%, 12/05/18		610		615,338
				2,087,715
Real Estate Investment Trusts (REITs) — 0.6%
iStar Financial, Inc., Term Loan (Second Lien), 5.00%, 6/28/13		2,627		2,614,694
Real Estate Management & Development — 0.3%
Realogy Corp.:
Extended Letter of Credit, 4.53%, 10/10/16		166		154,404
Extended Term Loan, 4.77%, 10/10/16		1,173		1,088,344
				1,242,748
Semiconductors & Semiconductor Equipment — 0.0%
NXP BV, Term Loan A-2, 5.50%, 3/03/17		105		104,213
Software — 0.2%
Infor Enterprise Solutions Holdings, Inc.:
Extended Delayed Draw Term Loan, 6.29%, 7/28/15		245		239,042
Extended Initial Term Loan, 6.29%, 7/28/15		460		450,095
				689,137

Floating Rate Loan Interests (g)	Par (000)		Value
Specialty Retail — 0.2%
Claire’s Stores, Inc., Term Loan B, 2.99% – 3.30%, 5/29/14	USD	816	$	772,527
Wireless Telecommunication Services — 1.0%
Crown Castle International Corp., Term Loan B, 4.00%, 1/25/19		325		323,521
Vodafone Americas Finance 2, Inc., Term Loan B, 6.25%, 7/11/16 (i)		4,022		4,011,821
				4,335,342
Total Floating Rate Loan Interests — 20.2%				86,580,954

Other Interests (m)	Beneficial Interest (000)
Chemicals — 0.0%
Wellman Holdings, Inc., Litigation Trust Certificate		4,870	49
Hotels, Restaurants & Leisure — 0.0%
Buffets, Inc. (a)		950	9
Media — 0.0%
Adelphia Escrow (a)		1,300	13
Adelphia Recovery Trust (a)		1,630	163
			176
Total Other Interests — 0.0%			234

Preferred Securities
Preferred Stocks	Shares
Auto Components — 0.4%
Dana Holding Corp., 4.00% (c)(f)		12,760	1,717,815
Diversified Financial Services — 1.0%
Ally Financial, Inc., 7.00% (c)		5,245	4,551,021
Thrifts & Mortgage Finance — 0.1%
Fannie Mae, Series O, 7.00% (a)(g)		40,000	74,000
Freddie Mac, Series Z,8.38% (a)(g)		110,157	163,032
			237,032
Total Preferred Stocks — 1.5%			6,505,868

Trust Preferreds
Diversified Financial Services — 0.9%
GMAC Capital Trust I, Series 2, 8.13%, 2/15/40 (g)	114,020	2,668,342
RBS Capital Funding Trust VII, 6.08%, 12/31/49 (g)	69,000	943,230
Total Trust Preferreds — 0.9%		3,611,572
Total Preferred Securities — 2.4%		10,117,440

Warrants (n)
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	—
Media — 0.1%
Cumulus Media, Inc. (Expires 3/26/19)	67,691	488,919
New Vision Holdings LLC, (Expires 9/30/14)	26,189	—
		488,919

See Notes to Financial Statements.
50	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012

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

Warrants (n)	Shares		Value
Software — 0.0%
Bankruptcy Management Solutions, Inc. (Expires 9/29/17)		525		—
HMH Holdings/EduMedia (Expires 3/09/17)		22,578		—
Total Warrants — 0.1%			$	488,920
Total Long-Term Investments (Cost — $555,481,120) — 132.7%				568,882,627
Options Purchased		Contracts
Exchange-Traded Put Options — 0.1%
SPDR S&P 500 ETF Trust:
Strike Price USD 134.00, Expires 3/17/12		1,790		168,260
Strike Price USD 136.00, Expires 3/17/12		310		48,980
Strike Price USD 136.00, Expires 4/21/12		310		98,890
Total Options Purchased (Cost — $688,726) — 0.1%				316,130
Total Investments Before Options Written (Cost — $556,169,846) — 132.8%				569,198,757
Options Written
Exchange-Traded Put Options — (0.0)%
SPDR S&P 500 ETF Trust, Strike Price USD 125.00, Expires 3/17/12		1,790		(25,955	)
Total Options Written (Premiums Received — $128,039) — (0.0)%				(25,955	)
Total Investments, Net of Options Written — 132.8%				569,172,802
Liabilities in Excess of Other Assets — (32.8)%				(140,499,627	)
Net Assets — 100.0%			$	428,673,175

(a)	Non-income producing security.
(b)	Restricted security as to resale. As of report date the Trust held 2.6% of its net assets, with a current value of $11,090,417 in this security.
(c)	Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(d)	Represents a step-down bond that pays an initial coupon rate for the first period and then a lower coupon rate for the following periods. Rate shown is as of report date.
(e)	Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(f)	Convertible security.
(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 is as of report date.
(i)	Represents a payment-in-kind security which may pay interest/dividends in additional par/shares.
(j)	Issuer filed for bankruptcy and/or is in default of interest payments.
(k)	All or a portion of security has been pledged as collateral in connection with swaps.
(l)	When-issued security. Unsettled when-issued transactions were as follows:

Counterparty	Value		Unrealized Appreciation
Bank of America Securities, Inc.	$	650,440	$	6,440
Morgan Stanley & Co., Inc.	$	2,297,235	$	70,235

(m)	Other interests represent beneficial interests in liquidation trusts and other reorganization or private entities.
(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.
•	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, 2011		Net Activity			Shares Held at February 29, 2012		Income
BlackRock Liquidity Funds, TempFund, Institutional Class		941,235		(941,235	)		—	$	445

• Financial futures contracts sold as of February 29, 2012 were as follows:

Contracts	Issue	Exchange	Expiration	Notional Value		Unrealized Depreciation
191	S&P 500	Chicago	March 2012	$	13,030,020	$	(419,408	)
	Index E-Mini	Mercantile

• Foreign currency exchange contracts as of February 29, 2012 were as follows:

Currency Purchased		Currency Sold		Counterparty	Settlement Date	Unrealized Appreciation (Depreciation)
GBP	118,000	USD	185,055	Royal Bank of Scotland Plc	4/11/12	$	2,618
USD	1,510,144	CAD	1,550,000	Citibank NA	4/11/12		(54,988	)
USD	3,402,753	CAD	3,475,000	Royal Bank of Scotland Plc	4/11/12		(106,172	)
USD	5,133,752	GBP	3,349,000	UBS Securities LLC	4/11/12		(192,658	)
EUR	122,000	USD	157,967	Citibank NA	4/18/12		4,605
EUR	460,000	USD	619,312	Deutsche Bank AG	4/18/12		(6,334	)
USD	29,691,218	EUR	23,115,000	Citibank NA	4/18/12		(1,110,925	)
USD	2,075,808	EUR	1,565,000	Citibank NA	4/18/12		(9,649	)
USD	389,040	EUR	296,000	Citibank NA	4/18/12		(5,398	)
USD	194,527	EUR	147,000	Citibank NA	4/18/12		(1,359	)
USD	84,108	EUR	65,000	Deutsche Bank AG	4/18/12		(2,509	)
USD	129,945	EUR	98,000	Deutsche Bank AG	4/18/12		(646	)
USD	627,400	EUR	473,000	Royal Bank of Scotland Plc	4/18/12		(2,901	)
USD	774,117	EUR	586,000	UBS Securities LLC	4/18/12		(6,764	)
Total						$	(1,493,080	)

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012	51

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

• Credit default swaps on single-name issues — buy protection outstanding as of February 29, 2012 were as follows:

Issuer	Pay Fixed Rate	Counterparty	Expiration Date	Notional Amount (000)		Unrealized Appreciation (Depreciation)
MGM Resorts International	5.00%	Deutsche Bank AG	6/20/15	$	160	$	(8,905	)
MGM Resorts International	5.00%	Deutsche Bank AG	6/20/15	$	135		(8,790	)
MGM Resorts International	5.00%	Deutsche Bank AG	6/20/15	$	260		(13,581	)
MGM Resorts International	5.00%	Deutsche Bank AG	6/20/15	$	140		(3,971	)
MGM Resorts International	5.00%	Deutsche Bank AG	6/20/15	$	135		(4,827	)
Republic of Hungary	1.00%	Deutsche Bank AG	12/20/15	$	470		25,026
Realogy Corp.	5.00%	Goldman Sachs International	9/20/16	$	225		(25,998	)
iStar Financial, Inc.	5.00%	Deutsche Bank AG	12/20/16	$	375		(38,471	)
Israel (State of)	1.00%	Deutsche Bank AG	3/20/17	$	350		(3,639	)
Israel Government Bond	1.00%	Deutsche Bank AG	3/20/17	$	1,050		(11,643	)
Total						$	(94,799	)

• Credit default swaps on single-name issues — sold protection outstanding as of February 29, 2012 were as follows:

Issuer	Receive Fixed Rate	Counterparty	Expiration Date	Issuer Credit Rating1	Notional Amount (000)2		Unrealized Appreciation (Depreciation)
Air Lease Corp.	5.00%	Goldman Sachs International	2/14/13	Not Rated	$	800	$	1,104
CIT Group, Inc.	5.00%	Deutsche Bank AG	9/20/15	BB–	$	5,000		333,920
ARAMARK Corp.	5.00%	Goldman Sachs International	3/20/16	B	$	750		39,744
ARAMARK Corp.	5.00%	Goldman Sachs International	6/20/16	B	$	475		22,600
ARAMARK Corp.	5.00%	Goldman Sachs International	6/20/16	B	$	475		25,585
ARAMARK Corp.	5.00%	Credit Suisse Securities (USA) LLC	9/20/16	B	$	200		16,201
ARAMARK Corp.	5.00%	Goldman Sachs International	9/20/16	B	$	450		20,322
ARAMARK Corp.	5.00%	Goldman Sachs International	9/20/16	B	$	200		15,461

Credit default swaps on single-name issues — sold protection outstanding as of February 29, 2012 were as follows (concluded):

Issuer	Receive Fixed Rate	Counterparty	Expiration Date	Issuer Credit Rating1	Notional Amount (000)2		Unrealized Appreciation (Depreciation)
Bausch & Lomb Inc.	5.00%	Credit Suisse Securities (USA) LLC	3/20/17	B	$	165	$	8,261
ARAMARK Corp.	5.00%	Deutsche Bank AG	3/20/17	B	$	305		6,568
Crown Castle International Corp.	7.25%	Deutsche Bank AG	3/20/17	B–	$	720		15,616
Ford Motor Co.	5.00%	Deutsche Bank AG	3/20/17	BB+	$	2,200		132,448
CCO Holdings LLC	8.00%	Deutsche Bank AG	9/20/17	BB–	$	2,400		(134	)
Total							$	637,696

	1	Using S&P’s rating.
	2	The maximum potential amount the Trust may pay should a negative credit event take place as defined under the terms of agreement.
•	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. These definitions 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 derivative financial instruments. These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:
	•	Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities
	•	Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
	•	Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)
	Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and does not necessarily correspond to the Trust’s perceived risk of investing in those securities. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

See Notes to Financial Statements.
52	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012

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

The following tables summarize the inputs used as of February 29, 2012 in determining the fair valuation of the Trust’s investments and derivative financial instruments:

Valuation Inputs	Level 1			Level 2			Level 3			Total
Assets:
Investments:
Long-Term Investments:
Common Stocks	$	16,814,523		$	11,751,399		$	7,490,513		$	36,056,435
Corporate Bonds		—			430,767,015			4,871,629			435,638,644
Floating Rate Loan Interests		—			73,111,438			13,469,516			86,580,954
Other Interests		163			—			71			234
Preferred Securities		3,848,604			6,268,836			—			10,117,440
Warrants		—			488,919			1			488,920
Total	$	20,663,290		$	522,387,607		$	25,831,730		$	568,882,627
Valuation Inputs	Level 1			Level 2			Level 3			Total
Derivative Financial Instruments1
Assets:
Credit contracts		—		$	312,216		$	350,640		$	662,856
Foreign currency exchange contracts		—			7,223			—			7,223
Equity contracts	$	316,130			—			—			316,130
Liabilities:
Credit contracts		—			(119,825	)		(134	)		(119,959	)
Foreign currency exchange contracts		—			(1,500,303	)		—			(1,500,303	)
Equity contracts		(445,363	)		—			—			(445,363	)
Total	$	(129,233	)	$	(1,300,689	)	$	350,506		$	(1,079,416	)

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

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

	Common Stocks			Corporate Bonds			Floating Rate Loan Interests			Other Interests			Preferred Securities			Warrants			Total
Assets:
Balance, as of August 31, 2011	$	3,689,799		$	6,541,570		$	14,112,734		$	3,081,895		$	503,497		$	382,599		$	28,312,094
Accrued discounts/premiums		—			3,505			118,663			—			—			—			122,168
Net realized gain (loss)		9,199			(3,657,646	)		(353,729	)		—			592,350			—			(3,409,826	)
Net change in unrealized appreciation/depreciation2		2,173,916			3,685,657			(880,297	)		(3,081,824	)		(503,497	)		(275	)		1,393,680
Purchases		1,629,236			979,696			602,350			—			—			—			3,211,282
Sales		(11,637	)		(2,681,153	)		(1,025,465	)		—			(592,350	)		—			(4,310,605	)
Transfers in3		—			—			3,424,885			—			—			—			3,424,885
Transfers out3		—			—			(2,529,625	)		—			—			(382,323	)		(2,911,948	)
Balance, as of February 29, 2012	$	7,490,513		$	4,871,629		$	13,469,516		$	71			—		$	1		$	25,831,730

2	Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations. The change in unrealized appreciation/depreciation on investments still held at February 29, 2012 was $(1,811,285).
3	The Trust’s policy is to recognize transfers in and transfers out as of the beginning of the period of the event or the change in circumstances that caused the transfer.

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

	Credit Contracts
Liabilities:
Balance, as of August 31, 2011		—
Accrued discounts/premiums	$	(46,404	)
Net realized gain (loss)		—
Net change in unrealized appreciation/depreciation4		350,506
Purchases		—
Issuances5		432,194
Sales		—
Settlements6		(385,790	)
Transfers in7		—
Transfers out7		—
Balance, as of February 29, 2012	$	350,506

4	Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations. The change in unrealized appreciation/depreciation on derivative financial instruments still held at February 29, 2012 was $350,506.
5	Issuances represent upfront cash received on certain derivative financial instruments.
6	Settlements represent periodic contractual cash flows and/or cash flows to terminate certain derivative financial instruments.
7	The Trust’s policy is to recognize transfers in and transfers out as of the beginning of the period of the event or the change in circumstances that caused the transfer.

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

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012	53

Schedule of Investments February 29, 2012 (Unaudited)	BlackRock High Income Shares (HIS)
	(Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Auto Components — 0.5%
Delphi Automotive Plc		1,419	$	45,421
Delphi Automotive Plc (180-day lock) (Acquired 11/17/11, cost $108,667) (b)		17,779		554,692
				600,113
Diversified Financial Services — 0.6%
Kcad Holdings I Ltd.		84,871,761		777,001
Hotels, Restaurants & Leisure — 0.0%
Travelport Worldwide Ltd.		35,081		17,540
Software — 0.0%
Bankruptcy Management Solutions, Inc. (a)		251		5
HMH Holdings/EduMedia		39,515		9,879
				9,884
Total Common Stocks — 1.1%				1,404,538
Corporate Bonds	Par (000)
Aerospace & Defense — 0.5%
Huntington Ingalls Industries, Inc.:
6.88%, 3/15/18	USD	100		105,250
7.13%, 3/15/21		140		149,975
Kratos Defense & Security Solutions, Inc., 10.00%, 6/01/17		358		385,745
				640,970
Air Freight & Logistics — 0.5%
National Air Cargo Group, Inc.:
Series 1, 12.38%, 9/02/15		295		307,956
Series 2, 12.38%, 8/16/15		299		311,301
				619,257
Airlines — 1.9%
American Airlines Pass-Through Trust, Series 2011-2, Class A, 8.63%, 10/15/21		519		550,140
Continental Airlines, Inc.:
6.75%, 9/15/15 (c)		270		272,700
Series 2010-1, Class B, 6.00%, 1/12/19		192		186,145
Delta Air Lines, Inc., Series 2009-1-B, Class B, 9.75%, 2/17/16		97		102,660
United Air Lines, Inc., 12.75%, 7/15/12		835		863,985
US Airways Pass-Through Trust, Series 2011-1, Class C, 10.88%, 10/22/14		310		310,000
				2,285,630
Auto Components — 2.1%
Allison Transmission, Inc., 11.00%, 11/01/15 (c)		32		33,800
Baker Corp. International, Inc., 8.25%, 6/01/19 (c)		95		96,900
Dana Holding Corp., 6.75%, 2/15/21		200		216,500
Delphi Corp., 6.13%, 5/15/21 (c)		80		85,800
Icahn Enterprises LP, 8.00%, 1/15/18		1,510		1,600,600
International Automotive Components Group, SL, 9.13%, 6/01/18 (c)		20		17,800
Stanadyne Corp., Series 1, 10.00%, 8/15/14		335		306,525
Titan International, Inc., 7.88%, 10/01/17		190		201,875
				2,559,800
Beverages — 0.4%
Cott Beverages, Inc., 8.13%, 9/01/18		125		137,812
Crown European Holdings SA (c):
7.13%, 8/15/18	EUR	167		238,347
7.13%, 8/15/18		100		142,723
				518,882
		Par
Corporate Bonds		(000)		Value
Biotechnology — 0.1%
QHP Pharma, 10.25%, 3/15/15 (c)	USD	103	$	103,403
Building Products — 0.7%
Building Materials Corp. of America (c):
7.00%, 2/15/20		210		227,850
6.75%, 5/01/21		450		489,375
Momentive Performance Materials, Inc., 11.50%, 12/01/16		220		184,800
				902,025
Capital Markets — 1.2%
American Capital Ltd., 8.96%, 12/31/13 (d)		320		325,933
E*Trade Financial Corp.:
12.50%, 11/30/17		485		565,025
Series A, 0.74%, 8/31/19 (e)(f)		295		279,144
KKR Group Finance Co., 6.38%, 9/29/20 (c)		300		319,265
				1,489,367
Chemicals — 3.6%
American Pacific Corp., 9.00%, 2/01/15		400		390,000
Ashland, Inc., 9.13%, 6/01/17		195		218,887
Celanese US Holdings LLC, 5.88%, 6/15/21		810		882,900
Chemtura Corp., 7.88%, 9/01/18		175		188,125
Hexion U.S. Finance Corp., 9.00%, 11/15/20		145		142,100
Huntsman International LLC, 8.63%, 3/15/21		80		90,400
Kinove German Bondco GmbH, 10.00%, 6/15/18	EUR	164		224,506
Kraton Polymers LLC, 6.75%, 3/01/19	USD	55		56,100
Lyondell Chemical Co., 11.00%, 5/01/18		1,272		1,394,065
LyondellBasell Industries NV, 6.00%, 11/15/21 (c)		75		82,313
Nexeo Solutions LLC, 8.38%, 3/01/18 (c)		85		85,000
PolyOne Corp., 7.38%, 9/15/20		100		107,750
Solutia, Inc., 7.88%, 3/15/20		280		328,300
TPC Group LLC, 8.25%, 10/01/17		155		163,525
				4,353,971
Commercial Banks — 2.1%
CIT Group, Inc. (c):
7.00%, 5/02/16		1,128		1,129,410
7.00%, 5/02/17		1,200		1,201,500
5.50%, 2/15/19		270		275,737
				2,606,647
Commercial Services & Supplies — 2.0%
ACCO Brands Corp., 10.63%, 3/15/15		155		171,083
ARAMARK Corp., 8.50%, 2/01/15		6		6,158
Aviation Capital Group Corp., 6.75%, 4/06/21 (c)		230		227,985
AWAS Aviation Capital Ltd., 7.00%, 10/17/16 (c)		181		188,936
Brickman Group Holdings, Inc., 9.13%, 11/01/18 (c)		9		8,550
Casella Waste Systems, Inc., 7.75%, 2/15/19		304		302,480
Clean Harbors, Inc., 7.63%, 8/15/16		160		169,600
Iron Mountain, Inc., 7.75%, 10/01/19		200		221,000
Mobile Mini, Inc., 7.88%, 12/01/20		165		173,250
RSC Equipment Rental, Inc.:
10.00%, 7/15/17 (c)		275		319,000
8.25%, 2/01/21		392		415,520
WCA Waste Corp., 7.50%, 6/15/19 (c)		150		151,875
West Corp., 8.63%, 10/01/18		65		71,337
				2,426,774
Communications Equipment — 0.7%
Avaya, Inc., 9.75%, 11/01/15		310		310,000
Frontier Communications Corp., 6.25%, 1/15/13		400		413,000
Hughes Satellite Systems Corp., 6.50%, 6/15/19		170		180,200
				903,200

See Notes to Financial Statements.
54	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012

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

Corporate Bonds	Par (000)		Value
Computers & Peripherals — 0.1%
SanDisk Corp., 1.50%, 8/15/17 (f)	USD	100	$	119,750
Construction & Engineering — 0.1%
Abengoa SA, 8.50%, 3/31/16	EUR	50		68,294
Boart Longyear Management Property Ltd., 7.00%, 4/01/21 (c)	USD	90		94,725
				163,019
Construction Materials — 0.1%
Xefin Lux SCA, 8.00%, 6/01/18 (c)	EUR	113		151,303
Consumer Finance — 1.8%
Credit Acceptance Corp., 9.13%, 2/01/17	USD	220		234,300
Ford Motor Credit Co. LLC:
7.80%, 6/01/12		300		303,698
7.00%, 4/15/15		1,080		1,198,800
12.00%, 5/15/15		330		414,956
				2,151,754
Containers & Packaging — 1.5%
Ardagh Packaging Finance Plc (c):
7.38%, 10/15/17		200		215,000
7.38%, 10/15/17	EUR	285		400,589
9.13%, 10/15/20	USD	200		206,500
Berry Plastics Corp.:
4.42%, 9/15/14 (g)		135		129,263
8.25%, 11/15/15		55		59,125
9.75%, 1/15/21		160		171,200
GCL Holdings SCA, 9.38%, 4/15/18 (c)	EUR	120		142,689
Graphic Packaging International, Inc., 7.88%,
10/01/18	USD	175		192,500
OI European Group BV, 6.88%, 3/31/17	EUR	100		138,559
Sealed Air Corp., 8.38%, 9/15/21 (c)	USD	115		131,675
				1,787,100
Diversified Consumer Services — 0.3%
ServiceMaster Co., 8.00%, 2/15/20 (c)		290		305,950
Diversified Financial Services — 4.8%
Ally Financial, Inc.:
7.50%, 12/31/13		90		95,850
8.30%, 2/12/15		230		254,150
6.25%, 12/01/17		230		237,732
7.50%, 9/15/20		290		319,362
8.00%, 11/01/31		500		558,125
8.00%, 11/01/31		270		292,965
Axcan Intermediate Holdings, Inc., 12.75%, 3/01/16		170		181,263
Boparan Holdings Ltd. (c):
9.75%, 4/30/18	EUR	100		131,098
9.88%, 4/30/18	GBP	100		156,704
DPL, Inc., 7.25%, 10/15/21 (c)	USD	360		410,400
FCE Bank Plc, 4.75%, 1/19/15	EUR	360		491,614
General Motors Financial Co., Inc., 6.75%, 6/01/18	USD	140		151,082
Leucadia National Corp., 8.13%, 9/15/15		378		420,525
Reynolds Group Issuer, Inc. (c):
7.00%, 10/15/16 (h)		348		370,620
8.75%, 10/15/16	EUR	227		321,334
7.13%, 4/15/19	USD	115		121,613
7.88%, 8/15/19		490		536,550
9.88%, 8/15/19		475		491,031
WMG Acquisition Corp. (c):
9.50%, 6/15/16		55		60,775
11.50%, 10/01/18		265		281,562
				5,884,355
Corporate Bonds	Par (000)		Value
Diversified Telecommunication Services — 3.4%
Broadview Networks Holdings, Inc., 11.38%, 9/01/12	USD	480	$	430,800
GCI, Inc., 6.75%, 6/01/21		128		129,600
ITC Deltacom, Inc., 10.50%, 4/01/16		140		145,950
Level 3 Communications, Inc., 6.50%, 10/01/16 (f)		90		139,050
Level 3 Financing, Inc. (c):
8.13%, 7/01/19		1,213		1,270,617
8.63%, 7/15/20		480		512,400
Qwest Communications International, Inc.:
7.50%, 2/15/14		600		602,100
8.00%, 10/01/15		550		590,391
Videotron Ltee, 5.00%, 7/15/22 (c)(i)		80		80,200
Windstream Corp.:
8.13%, 8/01/13		112		120,120
7.88%, 11/01/17		163		183,783
				4,205,011
Electric Utilities — 0.6%
The Tokyo Electric Power Co., Inc., 4.50%, 3/24/14	EUR	550		684,769
Electronic Equipment, Instruments & Components — 0.2%
Elster Finance BV, 6.25%, 4/15/18 (c)		104		140,499
Jabil Circuit, Inc., 8.25%, 3/15/18	USD	105		124,950
				265,449
Energy Equipment & Services — 3.3%
Antero Resources Finance Corp., 7.25%, 8/01/19 (c)		75		79,125
Atwood Oceanics, Inc., 6.50%, 2/01/20		65		68,413
Calfrac Holdings LP, 7.50%, 12/01/20 (c)		185		185,000
Compagnie Générale de Géophysique-Veritas, 7.75%, 5/15/17		170		177,013
Forbes Energy Services Ltd., 9.00%, 6/15/19		165		162,525
Frac Tech Services LLC, 7.63%, 11/15/18 (c)		795		848,662
Key Energy Services, Inc., 6.75%, 3/01/21		205		214,737
MEG Energy Corp., 6.50%, 3/15/21 (c)		445		476,150
Oil States International, Inc., 6.50%, 6/01/19		140		150,500
Peabody Energy Corp., 6.25%, 11/15/21 (c)		1,200		1,257,000
Transocean, Inc., 6.38%, 12/15/21		345		407,152
				4,026,277
Food Products — 0.1%
Post Holdings, Inc., 7.38%, 2/15/22 (c)		100		106,500
Health Care Equipment & Supplies — 2.2%
Biomet, Inc.:
10.00%, 10/15/17		90		97,762
10.38%, 10/15/17 (j)		645		702,244
DJO Finance LLC:
10.88%, 11/15/14		1,070		1,088,725
7.75%, 4/15/18		50		43,000
Fresenius Medical Care US Finance, Inc., 6.50%, 9/15/18 (c)		48		53,160
Fresenius US Finance II, Inc., 9.00%, 7/15/15 (c)		505		583,275
Teleflex, Inc., 6.88%, 6/01/19		130		140,075
				2,708,241
Health Care Providers & Services — 5.7%
Aviv Healthcare Properties LP, 7.75%, 2/15/19		190		194,275
ConvaTec Healthcare E SA, 7.38%, 12/15/17 (c)	EUR	200		276,452
Crown Newco 3 Plc, 7.00%, 2/15/18 (c)	GBP	200		313,805
HCA, Inc.:
8.50%, 4/15/19	USD	60		67,200
6.50%, 2/15/20		915		981,337
7.88%, 2/15/20		40		44,100
7.25%, 9/15/20		1,400		1,526,000
Health Management Associates, Inc., 7.38%, 1/15/20 (c)		435		453,488

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012	55

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)
IASIS Healthcare LLC, 8.38%, 5/15/19	USD	340	$	324,700
INC Research LLC, 11.50%, 7/15/19 (c)		185		177,600
inVentiv Health, Inc., 10.00%, 8/15/18 (c)		55		50,050
Omnicare, Inc., 7.75%, 6/01/20		450		501,187
Symbion, Inc., 8.00%, 6/15/16		155		149,575
Tenet Healthcare Corp.:
10.00%, 5/01/18		312		363,480
6.25%, 11/01/18 (c)		150		159,938
8.88%, 7/01/19		1,175		1,339,500
				6,922,687
Health Care Technology — 1.1%
IMS Health, Inc., 12.50%, 3/01/18 (c)		1,125		1,338,750
Hotels, Restaurants & Leisure — 2.4%
Caesars Entertainment Operating Co., Inc.:
11.25%, 6/01/17		140		153,300
10.00%, 12/15/18		660		509,850
Caesars Operating Escrow, LLC., 8.50%, 2/15/20 (c)		320		326,400
Diamond Resorts Corp., 12.00%, 8/15/18		550		580,250
El Dorado Resorts LLC, 8.63%, 6/15/19 (c)		60		57,150
MGM Resorts International:
10.38%, 5/15/14		125		142,187
11.13%, 11/15/17		790		898,625
Travelport LLC:
5.15%, 9/01/14 (g)		85		43,563
9.88%, 9/01/14		20		11,450
9.00%, 3/01/16		60		31,800
6.58%, 12/01/16 (c)(g)(j)		185		130,393
Tropicana Entertainment LLC, Series WI, 9.63%, 12/15/14 (a)(k)		215		—
				2,884,968
Household Durables — 1.9%
Beazer Homes USA, Inc., 12.00%, 10/15/17		720		784,800
Jarden Corp., 7.50%, 1/15/20	EUR	140		188,387
Ryland Group, Inc., 6.63%, 5/01/20	USD	160		163,200
Standard Pacific Corp.:
10.75%, 9/15/16		890		1,022,388
8.38%, 1/15/21		140		148,750
				2,307,525
Household Products — 0.5%
Ontex IV SA, 7.50%, 4/15/18 (c)	EUR	100		122,572
Spectrum Brands Holdings, Inc.:
9.50%, 6/15/18	USD	160		182,400
9.50%, 6/15/18 (c)		270		307,800
				612,772
Independent Power Producers & Energy Traders — 2.9%
AES Corp., 7.38%, 7/01/21 (c)		295		336,300
Calpine Corp. (c):
7.25%, 10/15/17		80		84,800
7.50%, 2/15/21		45		48,825
7.88%, 1/15/23		130		141,700
Energy Future Holdings Corp., 10.00%, 1/15/20		1,365		1,475,906
Energy Future Intermediate Holding Co. LLC:
10.00%, 12/01/20		431		468,174
11.75%, 3/01/22 (c)		635		650,875
Laredo Petroleum, Inc., 9.50%, 2/15/19		230		253,575
QEP Resources, Inc., 5.38%, 10/01/22		148		149,480
				3,609,635

Corporate Bonds	Par (000)		Value
Industrial Conglomerates — 2.5%
Sequa Corp. (c):
11.75%, 12/01/15	USD	1,060	$	1,126,250
13.50%, 12/01/15		1,770		1,888,985
				3,015,235
Insurance — 1.1%
Alliant Holdings I, Inc., 11.00%, 5/01/15 (c)		800		841,000
CNO Financial Group, Inc., 9.00%, 1/15/18 (c)		168		180,810
Genworth Financial, Inc., 7.63%, 9/24/21		190		197,130
MPL 2 Acquisition Canco, Inc., 9.88%, 8/15/18 (c)		120		107,100
				1,326,040
IT Services — 1.5%
Eagle Parent Canada, Inc., 8.63%, 5/01/19 (c)		230		238,050
First Data Corp.:
7.38%, 6/15/19 (c)		90		91,013
8.25%, 1/15/21 (c)		305		295,087
12.63%, 1/15/21		688		722,400
SunGard Data Systems, Inc.:
7.38%, 11/15/18		200		215,000
7.63%, 11/15/20		280		302,400
				1,863,950
Machinery — 1.0%
Navistar International Corp.:
3.00%, 10/15/14 (f)		270		304,087
8.25%, 11/01/21		63		68,906
SPX Corp., 6.88%, 9/01/17		80		88,800
UR Financing Escrow Corp. (c)(i):
5.75%, 7/15/18		114		117,135
7.38%, 5/15/20		155		159,069
7.63%, 4/15/22		422		436,770
				1,174,767
Media — 14.8%
Affinion Group, Inc., 7.88%, 12/15/18		365		326,675
AMC Networks, Inc., 7.75%, 7/15/21 (c)		100		111,500
CCH II LLC, 13.50%, 11/30/16		1,637		1,882,714
CCO Holdings LLC:
7.88%, 4/30/18		50		54,625
7.38%, 6/01/20		120		132,000
6.50%, 4/30/21		223		236,938
Checkout Holding Corp., 10.96%, 11/15/15 (c)(e)		310		139,500
Cinemark USA, Inc., 8.63%, 6/15/19		120		133,500
Clear Channel Communications, Inc., 9.00%, 3/01/21		250		230,000
Clear Channel Worldwide Holdings, Inc.:
9.25%, 12/15/17		686		751,170
7.63%, 3/15/20 (c)(i)		465		465,000
Series B, 9.25%, 12/15/17		2,656		2,921,600
Cox Enterprises, Inc.:
Loan Close 2, 4.00%, 8/15/18		321		325,876
Loan Close 3, 4.00%, 8/15/18		367		372,570
Shares Loan, 4.00%, 8/15/18		379		384,250
CSC Holdings LLC, 8.50%, 4/15/14		180		199,800
DISH DBS Corp.:
7.00%, 10/01/13		192		206,160
6.75%, 6/01/21		180		199,800
Gray Television, Inc., 10.50%, 6/29/15		445		470,031
Harland Clarke Holdings Corp.:
6.00%, 5/15/15 (g)		160		109,200
9.50%, 5/15/15		140		110,250
Intelsat Luxembourg SA:
11.25%, 6/15/16		680		719,100
11.25%, 2/04/17		160		165,000
11.50%, 2/04/17 (j)		605		623,150

See Notes to Financial Statements.
56	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012

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

Corporate Bonds	Par (000)		Value
Media (concluded)
Interactive Data Corp., 10.25%, 8/01/18	USD	615	$	693,412
The Interpublic Group of Cos., Inc., 10.00%, 7/15/17		155		177,475
Kabel BW Erste Beteiligungs GmbH, 7.50%, 3/15/19 (c)	EUR	304		433,370
Kabel Deutschland Vertrieb und Service GmbH & Co. KG, 6.50%, 6/29/18 (c)		155		217,883
Lamar Media Corp., 5.88%, 2/01/22 (c)	USD	90		93,938
Live Nation Entertainment, Inc., 8.13%, 5/15/18 (c)		335		356,356
Musketeer GmbH, 9.50%, 3/15/21 (c)	EUR	190		273,388
NAI Entertainment Holdings LLC, 8.25%, 12/15/17 (c)	USD	290		319,000
Nielsen Finance LLC:
11.63%, 2/01/14		72		83,700
7.75%, 10/15/18		970		1,079,125
Odeon & UCI Finco Plc, 9.00%, 8/01/18 (c)	GBP	100		157,101
ProQuest LLC, 9.00%, 10/15/18 (c)	USD	230		203,550
ProtoStar I Ltd., 18.00%, 10/15/12 (a)(c)(f)(k)		1,427		714
Unitymedia GmbH:
9.63%, 12/01/19	EUR	100		143,888
9.63%, 12/01/19 (c)		245		352,526
Unitymedia Hessen GmbH & Co. KG
(FKA UPC Germany GmbH):
8.13%, 12/01/17 (c)	USD	425		461,125
8.13%, 12/01/17	EUR	175		250,639
UPC Holding BV, 9.88%, 4/15/18 (c)	USD	200		222,000
UPCB Finance II Ltd., 6.38%, 7/01/20 (c)	EUR	371		491,812
Virgin Media Secured Finance Plc, 7.00%, 1/15/18 (i)	GBP	100		171,817
Ziggo Bond Co. BV, 8.00%, 5/15/18 (c)	EUR	175		246,559
Ziggo Finance BV, 6.13%, 11/15/17 (c)		317		438,177
				18,137,964
Metals & Mining — 2.9%
Goldcorp, Inc., 2.00%, 8/01/14 (f)	USD	460		583,050
Newmont Mining Corp., Series A, 1.25%, 7/15/14 (f)		670		924,600
Novelis, Inc., 8.75%, 12/15/20		1,525		1,700,375
Taseko Mines Ltd., 7.75%, 4/15/19		190		182,400
Vedanta Resources Plc, 8.25%, 6/07/21 (c)		200		184,500
				3,574,925
Multiline Retail — 1.8%
Dollar General Corp., 11.88%, 7/15/17 (g)		2,020		2,216,970
Oil, Gas & Consumable Fuels — 10.2%
Alpha Natural Resources, Inc., 6.25%, 6/01/21		180		174,600
Berry Petroleum Co., 8.25%, 11/01/16		275		286,687
Bill Barrett Corp., 9.88%, 7/15/16		10		11,050
BreitBurn Energy Partners LP, 7.88%, 4/15/22 (c)		115		120,463
Carrizo Oil & Gas, Inc., 8.63%, 10/15/18		60		62,400
Chesapeake Midstream Partners LP, 6.13%, 7/15/22 (c)		120		124,200
Chesapeake Oilfield Operating LLC, 6.63%, 11/15/19 (c)		25		25,500
Coffeyville Resources LLC, 9.00%, 4/01/15 (c)		122		130,540
Concho Resources, Inc., 7.00%, 1/15/21		190		213,750
Consol Energy, Inc., 8.25%, 4/01/20		905		986,450
Continental Resources, Inc., 7.13%, 4/01/21		170		188,700
Copano Energy LLC, 7.13%, 4/01/21		150		159,000
Crosstex Energy LP, 8.88%, 2/15/18		85		92,225
Denbury Resources, Inc.:
8.25%, 2/15/20		318		362,520
6.38%, 8/15/21		160		176,400

Corporate Bonds	Par (000)		Value
Oil, Gas & Consumable Fuels (concluded)
Energy XXI Gulf Coast, Inc.:
9.25%, 12/15/17	USD	250	$	276,875
7.75%, 6/15/19		405		427,275
EV Energy Partners LP, 8.00%, 4/15/19		70		73,500
Hilcorp Energy I LP, 7.63%, 4/15/21 (c)		350		381,500
Kodiak Oil & Gas Corp., 8.13%, 12/01/19 (c)		150		160,500
Linn Energy LLC:
6.50%, 5/15/19 (c)		45		45,900
6.25%, 11/01/19 (c)		720		719,100
8.63%, 4/15/20		100		111,000
7.75%, 2/01/21		95		102,125
MarkWest Energy Partners LP, 6.75%, 11/01/20		60		65,550
Newfield Exploration Co., 6.88%, 2/01/20		425		459,000
Niska Gas Storage US LLC, 8.88%, 3/15/18		265		254,400
Oasis Petroleum, Inc.:
7.25%, 2/01/19		150		159,000
6.50%, 11/01/21		135		139,050
OGX Petroleo e Gas Participações SA, 8.50%, 6/01/18 (c)		2,110		2,199,675
PBF Holding Co. LLC, 8.25%, 2/15/20 (c)		155		155,000
PetroBakken Energy Ltd., 8.63%, 2/01/20 (c)		390		414,375
Petrohawk Energy Corp.:
10.50%, 8/01/14		180		200,025
7.88%, 6/01/15		210		221,812
7.25%, 8/15/18		145		165,844
Petroleum Geo-Services ASA, 7.38%, 12/15/18 (c)		265		278,250
Pioneer Natural Resources Co.:
6.88%, 5/01/18		210		246,681
7.50%, 1/15/20		65		80,325
Plains Exploration & Production Co.:
6.63%, 5/01/21		360		388,800
6.75%, 2/01/22		230		251,850
Precision Drilling Corp., 6.50%, 12/15/21 (c)		135		144,113
Range Resources Corp.:
8.00%, 5/15/19		170		189,550
5.75%, 6/01/21		445		476,150
Samson Investment Co., 9.75%, 2/15/20 (c)		290		305,225
SandRidge Energy, Inc., 7.50%, 3/15/21		210		212,100
SM Energy Co., 6.63%, 2/15/19		60		64,350
				12,483,385
Paper & Forest Products — 2.3%
Boise Paper Holdings LLC:
9.00%, 11/01/17		200		220,000
8.00%, 4/01/20		70		76,825
Clearwater Paper Corp.:
10.63%, 6/15/16		185		210,206
7.13%, 11/01/18		270		287,550
Georgia-Pacific LLC, 8.25%, 5/01/16 (c)		755		836,409
Longview Fibre Paper & Packaging, Inc., 8.00%, 6/01/16 (c)		155		159,263
NewPage Corp., 11.38%, 12/31/14 (a)(k)		995		599,487
Sappi Papier Holding GmbH, 6.63%, 4/15/21 (c)		65		60,938
Verso Paper Holdings LLC, 11.50%, 7/01/14		365		372,300
				2,822,978
Pharmaceuticals — 0.7%
Capsugel Finance Co. SCA, 9.88%, 8/01/19 (c)	EUR	100		143,222
Jaguar Holding Co. II, 9.50%, 12/01/19 (c)	USD	190		207,813
Valeant Pharmaceuticals International, 6.50%, 7/15/16 (c)		550		561,000
				912,035
Professional Services — 0.6%
FTI Consulting, Inc.:
7.75%, 10/01/16		275		286,344
6.75%, 10/01/20		425		459,531
				745,875

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012	57

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

Corporate Bonds	Par (000)		Value
Real Estate Investment Trusts (REITs) — 0.7%
Felcor Lodging LP, 6.75%, 6/01/19	USD	635	$	649,287
The Rouse Co. LP, 6.75%, 11/09/15		240		251,100
				900,387
Real Estate Management & Development — 1.9%
CBRE Services, Inc., 6.63%, 10/15/20		160		170,000
Realogy Corp.:
11.50%, 4/15/17		175		160,125
12.00%, 4/15/17		45		41,400
7.88%, 2/15/19 (c)		1,045		1,013,650
7.63%, 1/15/20 (c)		220		227,150
9.00%, 1/15/20 (c)		160		160,800
Shea Homes LP, 8.63%, 5/15/19 (c)		565		570,650
				2,343,775
Road & Rail — 1.2%
Avis Budget Car Rental LLC, 8.25%, 1/15/19		55		57,337
Florida East Coast Railway Corp., 8.13%, 2/01/17		200		202,000
The Hertz Corp.:
7.50%, 10/15/18		420		453,075
6.75%, 4/15/19 (c)(i)		130		136,175
6.75%, 4/15/19		50		52,375
7.38%, 1/15/21		540		584,550
				1,485,512
Semiconductors & Semiconductor Equipment — 0.2%
Spansion LLC, 7.88%, 11/15/17		260		255,450
Software — 0.2%
Sophia LP, 9.75%, 1/15/19 (c)		198		212,850
Specialty Retail — 2.2%
Asbury Automotive Group, Inc., 8.38%, 11/15/20		165		176,963
Hillman Group, Inc., 10.88%, 6/01/18		250		261,875
House of Fraser Funding Plc, 8.88%, 8/15/18 (c)	GBP	129		183,677
Limited Brands, Inc.:
8.50%, 6/15/19	USD	70		83,650
5.63%, 2/15/22		70		72,100
Phones4u Finance Plc, 9.50%, 4/01/18 (c)	GBP	130		181,482
QVC, Inc. (c):
7.13%, 4/15/17	USD	105		112,875
7.50%, 10/01/19		285		316,350
7.38%, 10/15/20		130		143,975
Sally Holdings LLC, 6.88%, 11/15/19 (c)		245		263,375
Sonic Automotive, Inc., 9.00%, 3/15/18		175		190,312
Toys ‘R’ US-Delaware, Inc., 7.38%, 9/01/16 (c)		70		71,925
United Auto Group, Inc., 7.75%, 12/15/16		655		682,844
				2,741,403
Transportation Infrastructure — 0.2%
Aguila 3 SA, 7.88%, 1/31/18 (c)		198		208,147
Wireless Telecommunication Services — 5.0%
Cricket Communications, Inc., 7.75%, 5/15/16		250		266,250
Digicel Group Ltd. (c):
8.88%, 1/15/15		370		376,475
9.13%, 1/15/15		1,220		1,244,400
8.25%, 9/01/17		565		598,900
10.50%, 4/15/18		200		218,000
iPCS, Inc., 2.67%, 5/01/13 (g)		410		394,625
MetroPCS Wireless, Inc., 6.63%, 11/15/20		490		504,700
NII Capital Corp., 7.63%, 4/01/21		302		308,795
Sprint Capital Corp., 6.88%, 11/15/28		1,010		787,800
Sprint Nextel Corp., 9.00%, 11/15/18 (c)		1,230		1,371,450
				6,071,395
Total Corporate Bonds — 99.8%				122,138,784

Floating Rate Loan Interests (g)	Par (000)		Value
Airlines — 0.2%
Delta Air Lines, Inc., Credit New Term Loan B, 5.50%, 4/20/17	USD	274	$	267,181
Auto Components — 0.2%
Schaeffler AG, Term Loan C2, 5.29%, 1/27/17		225		225,657
Building Products — 0.2%
Goodman Global, Inc., Term Loan (Second Lien), 9.00%, 10/30/17		191		193,893
Capital Markets — 0.4%
Nuveen Investments, Inc., Incremental Term Loan, (First Lien):
7.25%, 3/14/19		185		186,619
7.25%, 5/13/17		295		297,065
				483,684
Chemicals — 0.1%
Styron Sarl LLC, Term Loan B, 6.00% – 6.75%, 8/02/17		208		187,256
Commercial Services & Supplies — 0.8%
AWAS Finance Luxembourg Sarl, Term Loan B, 5.25%, 6/10/16		220		219,674
Delos Aircraft, Inc., Term Loan B2, 7.00%, 3/17/16		325		325,348
Volume Services America, Inc. (FKA Centerplate), Term Loan B, 10.50% – 10.75%, 9/16/16		444		446,228
				991,250
Communications Equipment — 0.1%
Avaya, Inc., Term Loan B1, 3.24%, 10/24/14		90		88,062
Consumer Finance — 1.7%
Springleaf Finance Corp. (FKA AGFS Funding Co.), Term Loan, 5.50%, 5/10/17		2,245		2,046,564
Diversified Consumer Services — 0.0%
ServiceMaster Co.:
Delayed Draw Term Loan, 2.75%, 7/24/14		4		4,005
Term Loan, 2.77% – 3.03%, 7/24/14		41		40,222
				44,227
Diversified Telecommunication Services — 0.8%
Hawaiian Telcom Communications, Inc.:
Exit Term Loan, 9.00%, 2/25/17		405		403,987
Level 3 Financing, Inc.:
Term Loan B, 5.75%, 8/31/18		400		402,752
Tranche A Term Loan, 2.50% – 2.83%, 3/13/14		225		221,288
				1,028,027
Electronic Equipment, Instruments & Components — 0.1%
CDW LLC (FKA CDW Corp.):
Term Loan, 3.75%, 10/10/14		49		48,397
Term Loan, 4.00%, 7/14/17		125		122,165
				170,562
Energy Equipment & Services — 2.2%
CCS Corp., Incremental Term Loan, 5.62%, 10/17/14		120		120,120
Dynegy Midwest Generation LLC., Coal Co. Term Loan, 9.25%, 8/04/16		899		893,697
Dynegy Power LLC., Gas Co. Term Loan, 9.25%, 8/04/16		1,645		1,696,691
				2,710,508
Food & Staples Retailing — 0.1%
US Foodservice, Inc., Term Loan B, 2.74%, 7/03/14		75		72,375
Food Products — 0.3%
Advance Pierre Foods, Term Loan (Second Lien), 11.25%, 9/29/17		400		400,332

See Notes to Financial Statements.
58	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012

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

Floating Rate Loan Interests (g)	Par (000)		Value
Health Care Equipment & Supplies — 0.3%
Hupah Finance, Inc., Term Loan B, 6.25%, 1/21/19	USD	350	$	349,783
Health Care Providers & Services — 0.8%
Harden Healthcare LLC:
Term Loan A, 8.50%, 3/02/15		184		180,745
Tranche A Additional Term Loan, 7.75%, 3/02/15		247		242,094
Health Management Associates, Inc., Term Loan B, 4.50%, 11/16/18		180		178,830
inVentiv Health, Inc., Combined Term Loan, 6.50%, 8/04/16		353		339,739
				941,408
Hotels, Restaurants & Leisure — 1.3%
Caesars Entertainment Operating Co., Inc.:
Term Loan B-1, 9.50%, 1/28/15		313		293,027
Term Loan B-3, 3.00% – 3.58%, 1/28/15		452		423,765
Term Loan B-3, 3.58%, 1/28/15		119		111,788
Term Loan B-4, 9.50%, 10/31/16		220		226,301
OSI Restaurant Partners LLC:
Revolver, 2.56% – 2.79%, 6/14/13		4		3,940
Term Loan B, 2.56%, 6/14/14		41		39,971
Station Casinos, Inc., Term Loan B1, 3.24%, 6/17/16		450		405,752
Travelport LLC (FKA Travelport, Inc.):
Extended Tranche A Term Loan, 6.54%, 9/28/12		85		40,439
Extended Tranche B Term Loan, 14.04%, 12/01/16		265		59,515
				1,604,498
Independent Power Producers & Energy Traders — 0.1%
Texas Competitive Electric Holdings Co. LLC (FKA TXU), Extended Term Loan, 4.76%, 10/10/17		341		190,048
Industrial Conglomerates — 0.2%
Sequa Corp., Incremental Term Loan, 6.25%, 12/03/14		205		205,683
IT Services — 0.3%
First Data Corp., Extended Term Loan B, 4.24%, 3/23/18		355		318,556
Leisure Equipment & Products — 0.2%
Eastman Kodak Co., DIP Term Loan B, 8.50%, 7/20/13		265		268,230
Media — 5.3%
Cengage Learning Acquisitions, Inc. (FKA Thomson Learning):
Term Loan, 1.49%, 7/03/14		140		129,920
Tranche 1 Incremental Term Loan, 7.50%, 7/03/14		724		700,228
Cequel Communications LLC, Term Loan B, 4.00%, 2/11/19		265		262,289
Clear Channel Communications:
Term Loan B, 3.89%, 1/28/16		965		791,969
Term Loan C, 3.89%, 1/28/16		177		140,218
HMH Publishing Co. Ltd., Tranche A Term Loan, 6.51%, 6/12/14		421		260,190
Intelsat Jackson Holdings SA (FKA Intelsat Jackson Holdings Ltd.), Tranche B Term Loan, 5.25%, 4/02/18		3,275		3,269,682
Interactive Data Corp., Term Loan B, 4.50%, 2/12/18		25		24,944
Newsday LLC, Fixed Rate Term Loan, 10.50%, 8/01/13		750		771,562
Univision Communications, Inc., Extended First Lien Term Loan, 4.52%, 3/31/17		150		139,297
				6,490,299

Floating Rate Loan Interests (g)	Par (000)		Value
Oil, Gas & Consumable Fuels — 0.6%
Obsidian Natural Gas Trust, Term Loan, 7.00%, 11/02/15	USD	765	$	769,196
Paper & Forest Products — 0.5%
NewPage Corp., DIP Term Loan, 8.00%, 3/07/13		300		302,250
Verso Paper Finance Holdings LLC, Term Loan, 6.79% – 7.54%, 2/01/13 (j)		534		267,021
				569,271
Pharmaceuticals — 0.1%
Pharmaceutical Products Development, Inc., Term Loan B, 6.25%, 12/05/18		180		181,575
Real Estate Investment Trusts (REITs) — 0.6%
iStar Financial, Inc., Term Loan (Second Lien), 5.00%, 6/28/13		753		749,944
Real Estate Management & Development — 0.2%
Realogy Corp.:
Extended Letter of Credit, 4.53%, 10/10/16		35		32,294
Extended Term Loan, 4.77%, 10/10/16		245		227,626
				259,920
Semiconductors & Semiconductor Equipment — 0.0%
NXP BV, Term Loan A-2, 5.50%, 3/03/17		30		29,775
Software — 0.2%
Infor Enterprise Solutions Holdings, Inc.:
Extended Delayed Draw Term Loan, 6.29%, 7/28/15		69		67,813
Extended Initial Term Loan, 6.29%, 7/28/15		131		127,687
				195,500
Specialty Retail — 0.2%
Claire’s Stores, Inc., Term Loan B, 2.99% – 3.30%, 5/29/14		233		220,740
Wireless Telecommunication Services — 1.3%
Crown Castle International Corp., Term Loan B, 4.00%, 1/25/19		100		99,545
Vodafone Americas Finance 2, Inc. (j):
Term Loan, 6.88%, 8/11/15		831		830,646
Term Loan B, 6.25%, 7/11/16		619		617,203
				1,547,394
Total Floating Rate Loan Interests — 19.4%				23,801,398
Preferred Securities
Capital Trusts
Insurance — 0.2%
Genworth Financial, Inc., 6.15%, 11/15/66 (g)		390		267,637
Oil, Gas & Consumable Fuels — 0.2%
Range Resources Corp., 5.00%, 8/15/22 (i)		193		194,930
Total Capital Trusts — 0.4%				462,567
Preferred Stocks	Shares
Auto Components — 0.2%
Dana Holding Corp., 4.00% (c)(f)		2,200		296,175
Diversified Financial Services — 1.1%
Ally Financial, Inc., 7.00% (c)		1,503		1,304,134
Media — 0.2%
Emmis Communications Corp., Series A, 6.25%		10,300		190,653

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012	59

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

Preferred Stocks	Shares		Value
Real Estate Investment Trusts (REITs) — 0.0%
MPG Office Trust, Inc., Series A, 7.63% (a)		4,171	$	59,228
Thrifts & Mortgage Finance — 0.1%
Fannie Mae, Series O, 7.00% (a)(g)		10,000		18,500
Freddie Mac, Series Z, 8.38% (a)(g)		31,930		47,257
				65,757
Total Preferred Stocks — 1.6%				1,915,947
Trust Preferreds	Par (000)
Diversified Financial Services — 0.8%
GMAC Capital Trust I, Series 2, 8.13%, 2/15/40 (g)	USD	33,110		774,855
RBS Capital Funding Trust VII, 6.08%, 12/31/49 (g)		20,000		273,400
Total Trust Preferreds — 0.8%				1,048,255
Total Preferred Securities — 2.8%				3,426,769
Warrants (l)	Shares
Media — 0.1%
Cumulus Media, Inc. (Expires 3/26/19)		18,441		133,202
Software — 0.0%
Bankruptcy Management Solutions, Inc. (Expires 9/29/17)		167		—
HMH Holdings/EduMedia (Expires 3/09/17)		3,476		—
Total Warrants — 0.1%				133,202
Total Long-Term Investments (Cost — $148,491,381) — 123.2%				150,904,691
Short-Term Securities
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.11% (m)(n)		840,816		840,816
Total Short-Term Securities (Cost — $840,816) — 0.7%				840,816
Options Purchased	Contracts
Exchange-Traded Put Options — 0.1%
SPDR S&P 500 ETF Trust:
Strike Price USD 134.00, Expires 3/17/12		500		47,000
Strike Price USD 136.00, Expires 3/17/12		85		13,430
Strike Price USD 136.00, Expires 4/21/12		85		27,115
Total Options Purchased (Cost — $188,743) — 0.1%				87,545
Total Investments Before Options Written (Cost — $149,520,940) — 124.0%				151,833,052

Options Written	Contracts		Value
Exchange-Traded Put Options — (0.0)%
SPDR S&P 500 ETF Trust, Strike Price USD 125.00, Expires 3/17/12		500	$	(7,250	)
Total Options Written (Premiums Received — $36,987) — (0.0)%				(7,250	)
Total Investments, Net of Options Written — 124.0%				151,825,802
Liabilities in Excess of Other Assets — (24.0)%				(29,418,785	)
Net Assets — 100.0%			$	122,407,017

(a)	Non-income producing security.
(b)	Restricted security as to resale. As of report date the Trust held 0.5% of its net assets, with a current value of $554,962 in this security.
(c)	Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(d)	Represents a step-down bond that pays an initial coupon rate for the first period and then a lower coupon rate for the following periods. Rate shown is as of report date.
(e)	Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(f)	Convertible security.
(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 is as of report date.
(i)	When-issued security. Unsettled when-issued transactions were as follows:

Counterparty	Value		Unrealized Appreciation
Bank of America Securities, Inc.	$	446,947	$	3,385
Barclays Capital, Inc.	$	136,175	$	975
Goldman Sachs & Co., Inc.	$	465,000		—
Morgan Stanley Co., Inc.	$	712,974	$	21,974

(j)	Represents a payment-in-kind security which may pay interest/dividends in additional par/shares.
(k)	Issuer filed for bankruptcy and/or is in default of interest payments.
(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)	Represents the current yield as of report date.
(n)	Investments in companies considered to be an affiliate of the Trust during the period, for purposes of Section 2(a)(3) of the 1940 Act, as amended, were as follows:

Affiliate	Shares Held at August 31, 2011		Net Activity		Shares Held at February 29, 2012		Income
BlackRock Liquidity Funds, TempFund, Institutional Class		822,452		18,364		840,816	$	298

• Financial futures contracts sold as of February 29, 2012 were as follows:

Contracts	Issue	Exchange	Expiration	Notional Value		Unrealized Depreciation
38	S&P 500 Index E-Mini	Chicago Mercantile	March 2012	$	2,592,360	$	(67,084	)

See Notes to Financial Statements.
60	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012

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

• Foreign currency exchange contracts as of February 29, 2012 were as follows:

Currency Purchased		Currency Sold		Counterparty	Settlement Date	Unrealized Depreciation
USD	1,163,487	GBP	759,000	UBS AG	4/11/12	$	(43,653	)
USD	6,199,639	EUR	4,826,500	Citibank NA	4/18/12		(231,869	)
USD	358,232	EUR	275,000	Royal Bank of Scotland Plc	4/18/12		(8,217	)
Total						$	(283,739	)

•	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. These definitions 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 derivative financial instruments. These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:
	•	Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities
	•	Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
	•	Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)
	Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and does not necessarily correspond to the Trust’s perceived risk of investing in those securities. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following tables summarize the inputs used as of February 29, 2012 in determining the fair valuation of the Trust’s investments and derivative financial instruments:

Valuation Inputs	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments:
Common Stocks	$	45,421	$	554,692	$	804,425	$	1,404,538
Corporate Bonds		—		120,436,117		1,702,667		122,138,784
Floating Rate Loan Interests		—		20,534,349		3,267,049		23,801,398
Preferred Securities		1,363,893		2,062,876		—		3,426,769
Warrants		—		133,202		—		133,202
Short-Term Securities		840,816		—		—		840,816
Total	$	2,250,130	$	143,721,236	$	5,774,141	$	151,745,507

Valuation Inputs	Level 1			Level 2			Level 3		Total
Derivative Financial Instruments1
Assets:
Equity contracts	$	87,545			—			—	$	87,545
Liabilities:
Equity contracts		(74,334	)		—			—		(74,334	)
Foreign exchange contracts		—		$	(283,739	)		—		(283,739	)
Total	$	13,211		$	(283,739	)		—	$	(270,528	)

¹ Derivative financial instruments are financial futures contracts, foreign currency exchange contracts and options. 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:

	Common Stocks			Corporate Bonds			Floating Rate Loan Interests			Other Interests			Preferred Securities			Warrants			Total
Assets/Liabilities
Balance, as of August 31, 2011	$	1,023,120		$	1,804,070		$	3,539,166		$	476		$	137,173		$	104,162		$	6,608,167
Accrued discounts/premiums		—			—			29,563			—			—			—			29,563
Net realized gain (loss)		—			36,517			17,850			910			161,380			—			216,657
Net change in unrealized appreciation/depreciation2		(247,041	)		(51,342	)		(299,314	)		(476	)		(137,173	)		(2	)		(735,348	)
Purchases		28,345			20,922			184,164			—			—			—			233,431
Sales		—			(107,500	)		(215,110	)		(910	)		(161,380	)		—			(484,900	)
Transfers in3		1			—			785,105			—			—			—			785,106
Transfers out3		—			—			(774,375	)		—			—			(104,160	)		(878,535	)
Balance, as of February 29, 2012	$	804,425		$	1,702,667		$	3,267,049			—			—			—		$	5,774,141

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 29, 2012 was $(564,632).
3	The Trust’s policy is to recognize transfers in and transfers out as of the beginning of the period of the event or the change in circumstances that caused the transfer.

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

See Notes to Financial Statements.

SEMI-ANNUAL REPORT
FEBRUARY 29, 2012
61

Schedule of Investments February 29, 2012 (Unaudited)	BlackRock High Yield Trust (BHY)
	(Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Auto Components — 2.6%
Delphi Automative Plc (a)		2,826	$	90,429
Delphi Automative Plc (180-day lock) (Acquired 11/17/11, cost $332,803) (a)(b)		35,107		1,095,341
				1,185,770
Capital Markets — 0.1%
E*Trade Financial Corp. (a)		4,900		47,187
Commercial Banks — 0.2%
CIT Group, Inc. (a)		2,780		113,173
Diversified Telecommunication Services — 0.2%
Level 3 Communications, Inc. (a)		3,000		72,930
Energy Equipment & Services — 0.1%
Transocean Ltd.		900		48,006
Hotels, Restaurants & Leisure — 0.0%
Travelport Worldwide Ltd.		12,460		6,230
Media — 0.8%
Charter Communications, Inc. (a)		5,800		367,778
Paper & Forest Products — 0.0%
Ainsworth Lumber Co. Ltd. (a)		2,234		3,522
Ainsworth Lumber Co. Ltd. (a)(c)		2,507		3,953
				7,475
Road & Rail — 0.2%
Dollar Thrifty Automotive Group, Inc. (a)		1,000		75,910
Software — 0.0%
Bankruptcy Management Solutions, Inc.		91		2
HMH Holdings/EduMedia		13,576		3,394
				3,396
Total Common Stocks — 4.2%				1,927,855

Corporate Bonds	Par (000)
Aerospace & Defense — 0.8%
Huntington Ingalls Industries, Inc., 6.88%, 3/15/18	USD	160	168,400
Kratos Defense & Security Solutions, Inc., 10.00%, 6/01/17		200	215,500
			383,900
Air Freight & Logistics — 0.5%
National Air Cargo Group, Inc.:
Series 1, 12.38%, 9/02/15		106	109,984
Series 2, 12.38%, 8/16/15		107	111,179
			221,163
Airlines — 1.6%
American Airlines Pass-Through Trust, Series 2011-2, Class A, 8.63%, 10/15/21		197	208,820
Continental Airlines, Inc.:
6.75%, 9/15/15 (c)		90	90,900
Series 2010-1, Class B, 6.00%, 1/12/19		96	93,073
United Air Lines, Inc., 12.75%, 7/15/12		246	254,113
US Airways Pass-Through Trust, 10.88%, 10/22/14		110	110,000
			756,906

Corporate Bonds	Par (000)		Value
Auto Components — 2.2%
B-Corp Merger Sub, Inc., 8.25%, 6/01/19 (c)	USD	35	$	35,700
Dana Holding Corp., 6.75%, 2/15/21		180		194,850
Delphi Corp., 6.13%, 5/15/21 (c)		30		32,175
Icahn Enterprises LP, 8.00%, 1/15/18		650		689,000
Stanadyne Corp., Series 1, 10.00%, 8/15/14		90		82,350
				1,034,075
Beverages — 0.4%
Cott Beverages, Inc., 8.13%, 9/01/18		43		47,407
Crown European Holdings SA, 7.13%, 8/15/18	EUR	92		131,305
				178,712
Biotechnology — 0.1%
QHP Royalty Sub LLC, 10.25%, 3/15/15 (c)	USD	40		40,734
Building Products — 0.6%
Building Materials Corp. of America, 6.75%, 5/01/21 (c)		200		217,500
Momentive Performance Materials, Inc., 11.50%, 12/01/16		80		67,200
				284,700
Capital Markets — 1.1%
American Capital Ltd., 7.96%, 12/31/13 (e)		130		132,410
E*Trade Financial Corp.:
12.50%, 11/30/17		180		209,700
Series A, 2.51%, 8/31/19 (f)(g)		71		67,184
KKR Group Finance Co., 6.38%, 9/29/20 (c)		110		117,064
				526,358
Chemicals — 4.2%
American Pacific Corp., 9.00%, 2/01/15		140		136,500
Ashland, Inc., 9.13%, 6/01/17		70		78,575
Basell Finance Co. BV, 8.10%, 3/15/27 (c)		85		97,325
Celanese US Holdings LLC, 5.88%, 6/15/21		300		327,000
Chemtura Corp., 7.88%, 9/01/18		65		69,875
Hexion U.S. Finance Corp., 9.00%, 11/15/20		50		49,000
Huntsman International LLC, 8.63%, 3/15/21		25		28,250
Ineos Finance Plc, 8.38%, 2/15/19 (c)		100		106,250
Kinove German Bondco GmbH, 9.63%, 6/15/18 (c)		200		204,500
Kraton Polymers LLC, 6.75%, 3/01/19		20		20,400
Lyondell Chemical Co., 11.00%, 5/01/18		492		539,552
LyondellBasell Industries NV, 6.00%, 11/15/21 (c)		25		27,438
Nexeo Solutions LLC, 8.38%, 3/01/18 (c)		30		30,000
PolyOne Corp., 7.38%, 9/15/20		35		37,713
Solutia, Inc., 7.88%, 3/15/20		105		123,112
TPC Group LLC, 8.25%, 10/01/17 (c)		55		58,025
				1,933,515
Commercial Banks — 2.1%
CIT Group, Inc. (c):
7.00%, 5/02/16		435		435,544
7.00%, 5/02/17		450		450,562
5.50%, 2/15/19		100		102,125
				988,231
Commercial Services & Supplies — 2.0%
ACCO Brands Corp., 10.63%, 3/15/15		55		60,707
ARAMARK Corp., 8.50%, 2/01/15		4		4,105
Aviation Capital Group Corp., 6.75%, 4/06/21 (c)		92		91,194
AWAS Aviation Capital Ltd., 7.00%, 10/17/16		181		188,936
Brickman Group Holdings, Inc., 9.13%, 11/01/18 (c)		7		6,650
Iron Mountain, Inc., 7.75%, 10/01/19		60		66,300
Mobile Mini, Inc., 7.88%, 12/01/20		60		63,000

See Notes to Financial Statements.

62
SEMI-ANNUAL REPORT
FEBRUARY 29, 2012

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

Corporate Bonds	Par (000)		Value
Commercial Services & Supplies (concluded)
RSC Equipment Rental, Inc.:
10.00%, 7/15/17 (c)	USD	100	$	116,000
8.25%, 2/01/21		148		156,880
Verisure Holding AB, 8.75%, 9/01/18	EUR	100		134,562
West Corp., 8.63%, 10/01/18	USD	25		27,438
				915,772
Communications Equipment — 0.4%
Avaya, Inc., 9.75%, 11/01/15		40		40,000
Frontier Communications Corp., 6.25%, 1/15/13		150		154,875
				194,875
Computers & Peripherals — 0.1%
SanDisk Corp., 1.50%, 8/15/17 (g)		40		47,900
Construction & Engineering — 0.1%
Boart Longyear Management Ltd., 7.00%, 4/01/21 (c)		35		36,838
Construction Materials — 0.3%
Xefin Lux SCA, 8.00%, 6/01/18	EUR	100		133,896
Consumer Finance — 2.3%
Credit Acceptance Corp., 9.13%, 2/01/17	USD	80		85,200
Ford Motor Credit Co. LLC:
7.00%, 4/15/15		500		555,000
12.00%, 5/15/15		120		150,893
6.63%, 8/15/17		230		260,628
				1,051,721
Containers & Packaging — 1.2%
Ardagh Packaging Finance Plc, 9.13%, 10/15/20 (c)		200		206,500
Berry Plastics Corp.:
4.35%, 9/15/14 (d)		50		47,875
8.25%, 11/15/15		20		21,500
9.75%, 1/15/21		60		64,200
Graphic Packaging International, Inc., 7.88%, 10/01/18		60		66,000
Sealed Air Corp., 8.38%, 9/15/21 (c)		40		45,800
Smurfit Kappa Acquisitions, 7.75%, 11/15/19	EUR	64		91,875
				543,750
Diversified Consumer Services — 0.2%
ServiceMaster Co., 8.00%, 2/15/20 (c)	USD	110		116,050
Diversified Financial Services — 5.1%
Ally Financial, Inc.:
8.30%, 2/12/15		150		165,750
6.25%, 12/01/17		100		103,362
8.00%, 3/15/20		300		339,750
7.50%, 9/15/20		120		132,150
8.00%, 11/01/31		330		368,362
8.00%, 11/01/31		100		108,506
Axcan Intermediate Holdings, Inc., 12.75%, 3/01/16		145		154,606
DPL, Inc., 7.25%, 10/15/21		130		148,200
Leucadia National Corp.:
8.13%, 9/15/15		140		155,750
Reynolds Group Issuer, Inc. (c):
8.75%, 10/15/16		250		266,250
7.88%, 8/15/19		100		109,500
9.88%, 8/15/19		100		103,375
6.88%, 2/15/21		65		68,900
WMG Acquisition Corp. (c):
9.50%, 6/15/16		20		22,100
11.50%, 10/01/18		95		100,938
				2,347,499

Corporate Bonds		Par (000)		Value
Diversified Telecommunication Services — 3.4%
Broadview Networks Holdings, Inc., 11.38%, 9/01/12	USD	195	$	175,012
Level 3 Financing, Inc. (c):
8.13%, 7/01/19		500		523,750
8.63%, 7/15/20		170		181,475
Qwest Communications International, Inc.:
7.50%, 2/15/14		300		301,050
8.00%, 10/01/15		200		214,688
Videotron Ltee, 5.00%, 7/15/22 (c)		20		20,050
Windstream Corp.:
8.13%, 8/01/13		25		26,813
7.88%, 11/01/17		100		112,750
				1,555,588
Electronic Equipment, Instruments & Components — 0.1%
Jabil Circuit, Inc., 8.25%, 3/15/18		40		47,600
Energy Equipment & Services — 3.2%
Antero Resources Finance Corp., 7.25%, 8/01/19 (c)		25		26,375
Atwood Oceanics, Inc., 6.50%, 2/01/20		25		26,313
Calfrac Holdings LP, 7.50%, 12/01/20 (c)		65		65,000
Compagnie Générale de Géophysique-Veritas, 7.75%, 5/15/17		65		67,681
Forbes Energy Services Ltd., 9.00%, 6/15/19		60		59,100
Frac Tech Services LLC, 7.63%, 11/15/18 (c)		295		314,912
Key Energy Services, Inc., 6.75%, 3/01/21		75		78,562
MEG Energy Corp., 6.50%, 3/15/21 (c)		165		176,550
Oil States International, Inc., 6.50%, 6/01/19 (c)		50		53,750
Peabody Energy Corp., 6.25%, 11/15/21 (c)		440		460,900
Transocean, Inc., 6.38%, 12/15/21		125		147,519
				1,476,662
Food Products — 0.2%
Darling International, Inc., 8.50%, 12/15/18		40		45,000
Post Holdings, Inc., 7.38%, 2/15/22 (c)		40		42,600
Smithfield Foods, Inc., 10.00%, 7/15/14		6		7,035
				94,635
Health Care Equipment & Supplies — 2.2%
Biomet, Inc.:
10.00%, 10/15/17		35		38,019
10.38%, 10/15/17 (h)		250		272,188
DJO Finance LLC:
10.88%, 11/15/14		385		391,737
7.75%, 4/15/18 (c)		20		17,200
Fresenius Medical Care US Finance II, Inc., 5.88%, 1/31/22 (c)		110		116,050
Fresenius Medical Care US Finance, Inc., 6.50%, 9/15/18 (c)		54		59,805
Fresenius US Finance II, Inc., 9.00%, 7/15/15 (c)		80		92,400
Teleflex, Inc., 6.88%, 6/01/19		50		53,875
				1,041,274
Health Care Providers & Services — 5.5%
Aviv Healthcare Properties LP, 7.75%, 2/15/19		65		66,463
Crown Newco 3 Plc, 7.00%, 2/15/18	GBP	100		156,704
HCA, Inc.:
8.50%, 4/15/19	USD	25		28,000
6.50%, 2/15/20		335		359,287
7.88%, 2/15/20		115		126,787
7.25%, 9/15/20		410		446,900
5.88%, 3/15/22		45		46,125

See Notes to Financial Statements.

SEMI-ANNUAL REPORT
FEBRUARY 29, 2012
63

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

Corporate Bonds	Par (000)		Value
Health Care Providers & Services (concluded)
Health Management Associates, Inc., 7.38%, 1/15/20 (c)	USD	160	$	166,800
IASIS Healthcare LLC, 8.38%, 5/15/19		125		119,375
INC Research LLC, 11.50%, 7/15/19 (c)		70		67,200
inVentiv Health, Inc., 10.00%, 8/15/18 (c)		20		18,200
Omnicare, Inc., 7.75%, 6/01/20		160		178,200
PSS World Medical, Inc., 6.38%, 3/01/22 (c)		50		52,000
Symbion, Inc., 8.00%, 6/15/16		55		53,075
Tenet Healthcare Corp.:
10.00%, 5/01/18		279		325,035
6.25%, 11/01/18 (c)		55		58,644
8.88%, 7/01/19		245		279,300
				2,548,095
Health Care Technology — 1.1%
IMS Health, Inc., 12.50%, 3/01/18 (c)		410		487,900
Hotels, Restaurants & Leisure — 3.2%
Caesars Entertainment Operating Co., Inc.:
11.25%, 6/01/17		25		27,375
10.00%, 12/15/18		235		181,537
Caesars Operating Escrow LLC 8.50%, 2/15/20 (c)		125		127,500
Diamond Resorts Corp., 12.00%, 8/15/18		200		211,000
El Dorado Resorts LLC, 8.63%, 6/15/19 (c)		25		23,813
MGM Resorts International:
13.00%, 11/15/13		25		29,188
10.38%, 5/15/14		465		528,937
4.25%, 4/15/15 (g)		95		101,888
11.13%, 11/15/17		185		210,437
Travelport LLC:
5.11%, 9/01/14 (d)		20		10,250
9.88%, 9/01/14		5		2,863
6.58%, 12/01/16 (c)(h)		66		46,311
Tropicana Entertainment LLC, Series WI, 9.63%,
12/15/14 (a)(d)(i)		25		—
				1,501,099
Household Durables — 1.5%
Beazer Homes USA, Inc., 12.00%, 10/15/17		190		207,100
Jarden Corp., 8.00%, 5/01/16		40		43,750
Ryland Group, Inc., 6.63%, 5/01/20		60		61,200
Standard Pacific Corp.:
10.75%, 9/15/16		300		344,625
8.38%, 1/15/21		50		53,125
				709,800
Household Products — 0.4%
Spectrum Brands Holdings, Inc.:
9.50%, 6/15/18		60		68,400
9.50%, 6/15/18 (c)		100		114,000
				182,400
Independent Power Producers & Energy Traders — 3.0%
The AES Corp., 7.38%, 7/01/21 (c)		110		125,400
Calpine Corp. (c):
7.25%, 10/15/17		30		31,800
7.50%, 2/15/21		15		16,275
7.88%, 1/15/23		45		49,050
Energy Future Holdings Corp., 10.00%, 1/15/20		540		583,875
Energy Future Intermediate Holding Co. LLC:
10.00%, 12/01/20		158		171,627
11.75%, 3/01/22		240		246,000

Corporate Bonds	Par (000)		Value
Independent Power Producers & Energy Traders (concluded)
Laredo Petroleum, Inc., 9.50%, 2/15/19	USD	90	$	99,225
QEP Resources, Inc., 5.38%, 10/01/22		56		56,560
				1,379,812
Industrial Conglomerates — 2.2%
Sequa Corp. (c):
11.75%, 12/01/15		350		371,875
13.50%, 12/01/15		586		625,317
				997,192
Insurance — 0.4%
CNO Financial Group, Inc., 9.00%, 1/15/18 (c)		61		65,651
Genworth Financial, Inc., 7.63%, 9/24/21		70		72,627
MPL 2 Acquisition Canco, Inc., 9.88%, 8/15/18 (c)		40		35,700
				173,978
IT Services — 1.8%
Epicor Software Corp., 8.63%, 5/01/19 (c)		87		90,045
First Data Corp. (c):
7.38%, 6/15/19		35		35,394
8.88%, 8/15/20		90		97,425
8.25%, 1/15/21		105		101,587
12.63%, 1/15/21		236		247,800
SunGard Data Systems, Inc.:
7.38%, 11/15/18		130		139,750
7.63%, 11/15/20		100		108,000
				820,001
Machinery — 1.2%
Navistar International Corp.:
3.00%, 10/15/14 (g)		128		144,160
8.25%, 11/01/21		45		49,219
SPX Corp., 6.88%, 9/01/17		30		33,300
UR Financing Escrow Corp. (c)(j):
5.75%, 7/15/18		43		44,182
7.38%, 5/15/20		60		61,575
7.63%, 4/15/22		216		223,560
				555,996
Media — 14.8%
Affinion Group, Inc., 7.88%, 12/15/18		130		116,350
AMC Networks, Inc., 7.75%, 7/15/21 (c)		40		44,600
CCH II LLC, 13.50%, 11/30/16		179		205,277
CCO Holdings LLC:
7.38%,6/01/20		40		44,000
6.50%, 4/30/21		378		401,625
Checkout Holding Corp., 10.68%, 11/15/15 (c)(f)		110		49,500
Cinemark USA, Inc., 8.63%, 6/15/19		35		38,938
Clear Channel Communications, Inc., 9.00%, 3/01/21		95		87,400
Clear Channel Worldwide Holdings, Inc.:
9.25%, 12/15/17		246		269,370
7.63%, 3/15/20 (c)		175		175,000
Series B, 9.25%, 12/15/17		966		1,062,600
Cox Enterprises, Inc.:
Loan Close 2, 12.00%, 8/15/18		128		130,350
Loan Close 3, 12.00%, 8/15/18		147		149,028
Shares Loan, 12.00%, 8/15/18		151		153,701
CSC Holdings LLC, 8.50%, 4/15/14		80		88,800
DISH DBS Corp.:
7.00%, 10/01/13		40		42,950
6.75%, 6/01/21		130		144,300
Gray Television, Inc., 10.50%, 6/29/15		250		264,062
Harland Clarke Holdings Corp.:
6.00%, 5/15/15 (d)		50		34,125
9.50%, 5/15/15		45		35,438

See Notes to Financial Statements.

64
SEMI-ANNUAL REPORT
FEBRUARY 29, 2012

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

Corporate Bonds	Par (000)		Value
Media (concluded)
Intelsat Jackson Holdings SA, 11.25%, 6/15/16	USD	240	$	253,800
Intelsat Luxembourg SA:
11.25%, 2/04/17		160		165,000
11.50%, 2/04/17 (h)		163		167,890
Interactive Data Corp., 10.25%, 8/01/18		220		248,050
The Interpublic Group of Cos., Inc., 10.00%, 7/15/17		55		62,975
Kabel BW Holdings GmbH, 7.50%, 3/15/19	EUR	112		159,663
Kabel Deutschland GmbH, 6.50%, 6/29/18		100		141,224
Lamar Media Corp., 5.88%, 2/01/22 (c)	USD	35		36,531
Live Nation Entertainment, Inc., 8.13%, 5/15/18 (c)		125		132,969
Musketeer GmbH, 9.50%, 3/15/21	EUR	100		143,888
NAI Entertainment Holdings LLC, 8.25%, 12/15/17 (c)	USD	105		115,500
The New York Times Co., 6.63%, 12/15/16		225		234,562
Nielsen Finance LLC, 7.75%, 10/15/18		600		667,500
ProQuest LLC, 9.00%, 10/15/18 (c)		85		75,225
ProtoStar I Ltd., 18.00%, 10/15/12 (a)(c)(g)(i)		414		207
Unitymedia Hessen GmbH & Co. KG (FKA UPC Germany GmbH), 8.13%, 12/01/17 (c)		400		434,000
Ziggo Bond Co. BV, 8.00%, 5/15/18	EUR	65		91,579
Ziggo Finance BV, 6.13%, 11/15/17		120		165,871
				6,833,848
Metals & Mining — 2.3%
Goldcorp, Inc., 2.00%, 8/01/14 (g)	USD	85		107,738
New World Resources NV, 7.88%, 5/01/18	EUR	110		148,751
Newmont Mining Corp., Series A, 1.25%, 7/15/14 (g)	USD	90		124,200
Novelis, Inc., 8.75%, 12/15/20		545		607,675
Taseko Mines Ltd., 7.75%, 4/15/19		70		67,200
				1,055,564
Multiline Retail — 2.2%
Dollar General Corp., 11.88%, 7/15/17 (d)		929		1,019,587
Oil, Gas & Consumable Fuels — 10.5%
Alpha Natural Resources, Inc., 6.25%, 6/01/21		65		63,050
Aurora USA Oil & Gas, Inc., 9.88%, 2/15/17 (c)		80		82,400
Berry Petroleum Co., 8.25%, 11/01/16		80		83,400
Bill Barrett Corp., 9.88%, 7/15/16		5		5,525
BreitBurn Energy Partners LP, 7.88%, 4/15/22 (c)		40		41,900
Carrizo Oil & Gas, Inc., 8.63%, 10/15/18		20		20,800
Chesapeake Midstream Partners LP, 6.13%, 7/15/22 (c)		45		46,575
Chesapeake Oilfield Operating LLC, 6.63%, 11/15/19 (c)		10		10,200
Coffeyville Resources LLC, 9.00%, 4/01/15 (c)		45		48,150
Concho Resources, Inc., 7.00%, 1/15/21		70		78,750
Consol Energy, Inc., 8.25%, 4/01/20		330		359,700
Continental Resources, Inc., 7.13%, 4/01/21		60		66,600
Copano Energy LLC, 7.13%, 4/01/21		55		58,300
Crosstex Energy LP, 8.88%, 2/15/18		30		32,550
Denbury Resources, Inc.:
8.25%, 2/15/20		109		124,260
6.38%, 8/15/21		60		66,150
Energy XXI Gulf Coast, Inc.:
9.25%, 12/15/17		90		99,675
7.75%, 6/15/19		150		158,250
EV Energy Partners LP, 8.00%, 4/15/19 (c)		25		26,250
Hilcorp Energy I LP, 7.63%, 4/15/21 (c)		125		136,250
Holly Energy Partners LP, 6.50%, 3/01/20 (c)		25		25,531
Kodiak Oil & Gas Corp., 8.13%, 12/01/19 (c)		55		58,850

Corporate Bonds	Par (000)		Value
Oil, Gas & Consumable Fuels (concluded)
Linn Energy LLC:
6.50%, 5/15/19 (c)	USD	15	$	15,300
6.25%, 11/01/19 (c)(j)		345		344,569
8.63%, 4/15/20		40		44,400
7.75%, 2/01/21		75		80,625
MarkWest Energy Partners LP, 6.75%, 11/01/20		25		27,313
Newfield Exploration Co., 6.88%, 2/01/20		160		172,800
Niska Gas Storage US LLC, 8.88%, 3/15/18		95		91,200
Oasis Petroleum, Inc.:
7.25%, 2/01/19		55		58,300
6.50%, 11/01/21		50		51,500
OGX Petroleo e Gas Participações SA, 8.50%, 6/01/18 (c)		900		938,250
PBF Holding Co. LLC, 8.25%, 2/15/20 (c)		55		55,000
PetroBakken Energy Ltd., 8.63%, 2/01/20 (c)		145		154,062
Petrohawk Energy Corp.:
10.50%, 8/01/14		65		72,231
7.88%, 6/01/15		15		15,844
7.25%, 8/15/18		55		62,906
Petroleum Geo-Services ASA, 7.38%, 12/15/18 (c)		95		99,750
Pioneer Natural Resources Co.:
6.88%, 5/01/18		75		88,100
7.50%, 1/15/20		25		30,894
Plains Exploration & Production Co.:
6.63%, 5/01/21		130		140,400
6.75%, 2/01/22		90		98,550
Precision Drilling Corp., 6.50%, 12/15/21 (c)		45		48,038
Range Resources Corp.:
8.00%, 5/15/19		20		22,300
5.75%, 6/01/21		160		171,200
Ruby Pipeline LLC, 6.00%, 4/01/22 (c)		65		64,870
Samson Investment Co., 9.75%, 2/15/20 (c)		105		110,513
SandRidge Energy, Inc., 7.50%, 3/15/21 (c)		80		80,800
SM Energy Co., 6.63%, 2/15/19 (c)		20		21,450
				4,854,281
Paper & Forest Products — 2.3%
Ainsworth Lumber Co. Ltd., 11.00%, 7/29/15 (c)(h)		22		15,917
Boise Paper Holdings LLC:
9.00%, 11/01/17		80		88,000
8.00%, 4/01/20		30		32,925
Clearwater Paper Corp.:
10.63%, 6/15/16		70		79,537
7.13%, 11/01/18		95		101,175
Georgia-Pacific LLC, 8.25%, 5/01/16 (c)		285		315,731
Longview Fibre Paper & Packaging, Inc., 8.00%, 6/01/16 (c)		55		56,513
NewPage Corp., 11.38%, 12/31/14 (a)(i)		365		219,912
Sappi Papier Holding GmbH, 6.63%, 4/15/21 (c)		25		23,438
Verso Paper Holdings LLC, 11.50%, 7/01/14		135		137,700
				1,070,848
Pharmaceuticals — 0.7%
Jaguar Holding Co. II, 9.50%, 12/01/19 (c)		70		76,562
Valeant Pharmaceuticals International, 6.50%, 7/15/16 (c)		225		229,500
				306,062
Professional Services — 0.6%
FTI Consulting, Inc.:
7.75%, 10/01/16		100		104,125
6.75%, 10/01/20		150		162,188
				266,313

See Notes to Financial Statements.

SEMI-ANNUAL REPORT
FEBRUARY 29, 2012
65

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

Corporate Bonds	Par (000)		Value
Real Estate Investment Trusts (REITs) — 0.7%
Felcor Lodging LP, 6.75%, 6/01/19	USD	250	$	255,625
The Rouse Co. LP, 6.75%, 11/09/15		85		88,931
				344,556
Real Estate Management & Development — 2.0%
CB Richard Ellis Services, Inc., 6.63%, 10/15/20		55		58,437
Realogy Corp.:
11.50%, 4/15/17 (k)		60		54,900
12.00%, 4/15/17 (k)		15		13,800
7.88%, 2/15/19 (c)		400		388,000
7.63%, 1/15/20 (c)		120		123,900
9.00%, 1/15/20 (c)		60		60,300
Shea Homes LP, 8.63%, 5/15/19 (c)		205		207,050
				906,387
Road & Rail — 1.3%
Avis Budget Car Rental LLC, 8.25%, 1/15/19		25		26,063
Florida East Coast Railway Corp., 8.13%, 2/01/17 (c)		80		80,800
The Hertz Corp.:
7.50%, 10/15/18		150		161,812
6.75%, 4/15/19		60		62,850
6.75%, 4/15/19 (c)		50		52,375
7.38%, 1/15/21		195		211,087
				594,987
Semiconductors & Semiconductor Equipment — 0.1%
Spansion LLC, 7.88%, 11/15/17		50		49,125
Software — 0.2%
Sophia LP, 9.75%, 1/15/19 (c)		78		83,850
Specialty Retail — 2.5%
Asbury Automotive Group, Inc.:
7.63%, 3/15/17		60		61,800
8.38%, 11/15/20		60		64,350
House of Fraser Funding Plc, 8.88%, 8/15/18	GBP	100		142,386
Limited Brands, Inc.:
8.50%, 6/15/19	USD	140		167,300
5.63%, 2/15/22		25		25,750
Phones4u Finance Plc, 9.50%, 4/01/18	GBP	100		139,601
QVC, Inc. (c):
7.13%, 4/15/17	USD	40		43,000
7.50%, 10/01/19		100		111,000
7.38%, 10/15/20		55		60,913
Sally Holdings LLC, 6.88%, 11/15/19 (c)		90		96,750
Sonic Automotive, Inc., 9.00%, 3/15/18		65		70,687
Toys ‘R’ US-Delaware, Inc., 7.38%, 9/01/16 (c)		25		25,688
United Auto Group, Inc., 7.75%, 12/15/16		165		172,014
				1,181,239
Transportation Infrastructure — 0.3%
Aguila 3 SA, 7.88%, 1/31/18		150		157,688
Wireless Telecommunication Services — 5.3%
Cricket Communications, Inc., 7.75%, 5/15/16		250		266,250
Digicel Group Ltd. (c):
9.13%, 1/15/15		294		299,880
8.25%, 9/01/17		330		349,800
iPCS, Inc., 2.67%, 5/01/13 (d)		140		134,750
Matterhorn Mobile Holdings SA, 8.25%, 2/15/20	EUR	100		137,227
MetroPCS Wireless, Inc., 6.63%, 11/15/20	USD	150		154,500
NII Capital Corp., 7.63%, 4/01/21		60		61,350
Sprint Capital Corp., 6.88%, 11/15/28 (j)		330		257,400
Corporate Bonds	Par (000)		Value
Wireless Telecommunication Services (concluded)
Sprint Nextel Corp. (c):
9.00%, 11/15/18	USD	400	$	446,000
7.00%, 3/01/20		330		335,362
				2,442,519
Total Corporate Bonds — 100.5%				46,475,481
Floating Rate Loan Interests (d)
Airlines — 0.3%
Delta Air Lines, Inc., Credit New Term Loan B, 5.50%, 4/20/17		122		118,932
Auto Components — 0.2%
Schaeffler AG, Term Loan C2, 5.25%, 1/27/17		90		90,263
Building Products — 0.0%
Goodman Global, Inc., Term Loan (Second Lien), 9.00%, 10/30/17		16		16,158
Capital Markets — 0.4%
Nuveen Investments, Inc., Incremental Term Loan (First Lien):
7.25%, 5/13/17		110		110,770
7.25%, 3/14/19		70		70,613
				181,383
Commercial Services & Supplies — 0.8%
AWAS Finance Luxembourg Sarl, Term Loan B, 5.25%, 6/10/16		110		109,837
Delos Aircraft, Inc., Term Loan B2, 7.00%, 3/17/16		100		100,107
Volume Services America, Inc. (FKA Centerplate), Term Loan B, 10.50 – 10.75%, 9/16/16		163		163,617
				373,561
Communications Equipment — 0.1%
Avaya, Inc., Term Loan B1, 3.24%, 10/24/14		30		29,354
Construction & Engineering — 0.5%
Safway Services LLC, Mezzanine Loan, 15.63%, 12/16/17		250		250,000
Consumer Finance — 1.6%
Springleaf Financial Funding Co. (FKA AGFS Funding Co.), Term Loan, 5.50%, 5/10/17		840		765,752
Diversified Consumer Services — 0.0%
ServiceMaster Co.:
Delayed Draw Term Loan, 2.75%, 7/24/14		1		1,335
Term Loan, 2.77% – 3.03%, 7/24/14		14		13,407
				14,742
Diversified Telecommunication Services — 0.5%
Level 3 Financing, Inc.:
Term Loan B, 5.75%, 8/31/18		150		151,032
Tranche A Term Loan, 2.50% – 2.83%, 3/13/14		75		73,762
				224,794
Electronic Equipment, Instruments & Components — 0.1%
CDW LLC (FKA CDW Corp.), Term Loan, 4.00%, 7/14/17		50		48,866
Energy Equipment & Services — 2.2%
CCS Corp., Incremental Term Loan, 5.56%, 10/17/14		45		45,045
Dynegy Midwest Generation LLC, Coal Co. Term Loan, 9.25%, 8/04/16		335		332,946
Dynegy Power LLC, Gas Co. Term Loan, 9.25%, 8/04/16		613		632,100
				1,010,091

See Notes to Financial Statements.
66	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012

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

Floating Rate Loan Interests (d)	Par (000)		Value
Food & Staples Retailing — 0.1%
US Foodservice, Inc., Term Loan B, 2.74%, 7/03/14	USD	30	$	28,950
Food Products — 0.3%
Advance Pierre Foods, Inc., Term Loan (Second Lien), 11.25%, 9/29/17		135		135,112
Health Care Equipment & Supplies — 0.3%
Hupah Finance, Inc., Term Loan B, 6.25%, 1/21/19		130		129,919
Health Care Providers & Services — 0.8%
Harden Healthcare LLC:
Term Loan, 8.50%, 3/02/15		70		68,282
Tranche A Additional Term Loan, 7.75%, 3/02/15		82		80,698
Health Management Associates, Inc., Term Loan B, 4.50%, 11/16/18		65		64,577
inVentiv Health, Inc., Combined Term Loan, 6.50%, 8/04/16		177		169,870
				383,427
Hotels, Restaurants & Leisure — 1.4%
Caesars Entertainment Operating Co., Inc.:
Term Loan B-3, 3.25%, 1/28/15		166		155,694
Term Loan B-3, 9.50%, 1/28/15		128		119,539
Term Loan B-3, 9.50%, 1/28/15		54		50,446
Term Loan B-4, 9.50%, 10/31/16		85		87,434
OSI Restaurant Partners LLC:
Revolver, 2.56 – 2.79%, 6/14/13		2		1,751
Term Loan B, 2.56%, 6/14/14		18		17,765
Station Casinos, Inc., Term Loan B1, 3.24%, 6/17/16		175		157,792
Travelport LLC (FKA Travelport, Inc.):
Extended Tranche A Term Loan, 6.54%, 9/28/12		30		14,363
Extended Tranche B Term Loan, 14.04%, 12/01/16		94		21,138
				625,922
Independent Power Producers & Energy Traders — 0.1%
Texas Competitive Electric Holdings Co. LLC (FKA TXU), Extended Term Loan, 4.76%, 10/10/17		126		70,205
Industrial Conglomerates — 0.2%
Sequa Corp., Incremental Term Loan, 6.25%, 12/03/14		75		75,250
IT Services — 0.3%
First Data Corp., Extended Term Loan B, 4.24%, 3/23/18		130		116,654
Leisure Equipment & Products — 0.2%
Eastman Kodak Co., DIP Term Loan B, 8.50%, 7/20/13		100		101,219
Media — 5.4%
Cengage Learning Acquisitions, Inc. (FKA Thomson Learning), Tranche 1 Incremental Term Loan, 7.50%, 7/03/14		301		289,089
Cequel Communications LLC, Term Loan B, 4.00%, 2/11/19		100		98,977
Clear Channel Communication:
Term Loan B, 3.89%, 1/28/16		365		299,553
Term Loan C, 3.89%, 1/28/16		63		49,612
HMH Publishing Co. Ltd., Tranche A, Term Loan, 6.51%, 6/12/14		145		89,354
Intelsat Jackson Holdings SA (FKA Intelsat Jackson Holdings, Ltd.), Tranche B Term Loan, 5.25%, 4/02/18		1,241		1,238,516
Floating Rate Loan Interests (d)	Par (000)		Value
Media (concluded)
Interactive Data Corp., Term Loan B, 4.50%, 2/12/18	USD	10	$	9,978
Newsday LLC, Fixed Rate Term Loan, 10.50%, 8/01/13		375		385,781
Univision Communications, Inc., Extended First Lien Term Loan, 4.52%, 3/31/17		55		51,076
				2,511,936
Oil, Gas & Consumable Fuels — 0.6%
Obsidian Natural Gas Trust, Term Loan, 7.00%, 11/02/15		276		277,727
Paper & Forest Products — 0.5%
NewPage Corp., DIP Term Loan, 8.00%, 3/07/13		100		100,750
Verso Paper Finance Holdings LLC, Term Loan, 6.79% – 7.54%, 2/01/13 (h)		227		113,626
				214,376
Pharmaceuticals — 0.1%
Pharmaceutical Product Development, Inc., Term Loan B, 6.25%, 12/05/18		65		65,569
Real Estate Investment Trusts (REITs) — 0.6%
iStar Financial, Inc., Term Loan (Second Lien), 5.00%, 6/28/13		281		279,938
Real Estate Management & Development — 0.3%
Realogy Corp.:
Extended Letter of Credit Loan, 4.53%, 10/10/16		17		16,147
Extended Term Loan, 4.77%, 10/10/16		123		113,813
				129,960
Semiconductors & Semiconductor Equipment — 0.0%
NXP BV, Incremental Term Loan A-2, 5.50%, 3/03/17		10		9,925
Software — 0.2%
Infor Enterprise Solutions Holdings, Inc.:
Extended Delayed Draw Term Loan, 6.29%, 7/28/15		26		25,430
Extended Initial Term Loan, 6.29%, 7/28/15		49		47,883
				73,313
Specialty Retail — 0.2%
Claire’s Stores, Inc., Term Loan B, 2.99 – 3.30%, 5/29/14		87		82,675
Wireless Telecommunication Services — 1.2%
Crown Castle International Corp., Term B, 4.00%, 1/25/19		40		39,818
Vodafone Americas Finance 2, Inc.:
Initial Loan, 6.88%, 8/11/15		277		276,882
Term Loan B, 6.25%, 7/11/16 (h)		258		257,168
				573,868
Total Floating Rate Loan Interests — 19.5%				9,009,841
Preferred Securities
Capital Trusts
Insurance — 0.2%
Genworth Financial, Inc., 6.15%, 11/15/66 (h)		145		99,506
Diversified Financial Services — 0.2%
Range Resources Corp., 5.00%, 8/15/22		74		74,740
Total Capital Trusts — 0.4%				174,246

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012	67

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

Preferred Stocks	Shares		Value
Auto Components — 0.5%
Dana Holding Corp., 4.00% (c)		1,800	$	242,325
Diversified Financial Services — 1.0%
Ally Financial, Inc., 7.00% (c)		500		433,844
Total Preferred Stocks — 1.5%				676,169
Trust Preferreds	Par (000)
Diversified Financial Services — 0.8%
GMAC Capital Trust I, Series 2, 8.13%, 2/15/40	USD	11,760		275,222
RBS Capital Funding Trust VII, 6.08%, 12/31/49		8,000		109,360
Total Trust Preferreds — 0.8%				384,582
Total Preferred Securities — 2.7%				1,234,997
Warrants (l)		Shares
Diversified Telecommunication Services — 0.0%
NEON Communications, Inc. (Expires 12/02/12)		53,622		1
Media — 0.1%
Cumulus Media, Inc. (Expires 3/26/19)		6,182		44,657
Software — 0.0%
Bankruptcy Management Solutions, Inc. (Expires 9/29/17)		61		—
HMH Holdings/EduMedia (Expires 3/09/17)		1,184		—
Total Warrants — 0.1%				44,658
Total Long-Term Investments (Cost — $56,179,302) — 127.0%				58,692,832
Short-Term Securities
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.11% (m)(n)		980,802		980,802
Total Short-Term Securities (Cost — $980,802) — 2.1%				980,802
Options Purchased		Contracts
Over-the-Counter Call Options — 0.0%
Marsico Parent Superholdco LLC, Strike Price USD 942.86, Expires 12/14/19, Broker Goldman Sachs Bank USA		3		—
Total Options Purchased (Cost — $2,933) — 0.0%				—
Total Investments (Cost — $57,163,037) — 129.1%				59,673,634
Liabilities in Excess of Other Assets — (29.1)%				(13,434,085	)
Net Assets — 100.0%			$	46,239,549

(a)	Non-income producing security.
(b)	Restricted security as to resale. As of report date the Trust held 2.6% of its net assets with a current value of $1,095,341 in this security.
(c)	Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(d)	Variable rate security. Rate shown is as of report date.
(e)	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.
(f)	Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(g)	Convertible security.
(h)	Represents a payment-in-kind security which may pay interest/dividends in additional par/shares.
(i)	Issuer filed for bankruptcy and/or is in default of interest payments.
(j)	When-issued security. Unsettled when-issued transactions were as follows:

Counterparty	Value		Unrealized Appreciation (Depreciation)
Bank of America NA	$	257,400	$	2,075
JPMorgan Chase Bank	$	344,569	$	(331	)
Morgan Stanley Co., Inc.	$	329,317	$	10,318

(k)	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.
(l)	Warrants entitle the Trust to purchase a predetermined number of 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 1940 Act, as amended, were as follows:

Affiliate	Shares Held at August 31, 2011		Net Activity		Shares Held at February 29, 2012		Income
BlackRock Liquidity
Funds, TempFund
Institutional Class		421,345		559,457		980,802	$	215

(n)	Represents the current yield as of report date.
•	Foreign currency exchange contracts as of February 29, 2012 were as follows:

Currency Purchased		Currency Sold		Counterparty	Settlement Date	Unrealized Appreciation (Depreciation)
EUR	216,000	USD	288,187	UBS AG	3/05/12	$	(410	)
USD	1,211,203	EUR	915,000	Citibank NA	4/11/12		(8,050	)
USD	288,230	EUR	216,000	UBS AG	4/11/12		407
USD	437,178	GBP	279,000	Citibank NA	4/11/12		(6,557	)
Total						$	(14,610	)

See Notes to Financial Statements.
68	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012

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

• Credit default swaps on single-name issues — buy protection outstanding as of February 29, 2012 were as follows:

Issuer	Pay Fixed Rate	Counterparty	Expiration Date	Notional Amount (000)		Unrealized Appreciation (Depreciation)
MGM Resorts	5.00%	Deutsche	6/20/15	$	20	$	(1,113	)
International		Bank AG
MGM Resorts	5.00%	Deutsche	6/20/15	$	15		(977	)
International		Bank AG
MGM Resorts	5.00%	Deutsche	6/20/15	$	30		(1,568	)
International		Bank AG
MGM Resorts	5.00%	Deutsche	6/20/15	$	15		(425	)
International		Bank AG
MGM Resorts	5.00%	Deutsche	6/20/15	$	15		(536	)
International		Bank AG
Hovnanian	5.00%	JPMorgan	12/20/15	$	125		16,817
Enterprises, Inc.		Chase & Co.
The New York	1.00%	Barclays	12/20/16	$	225		48
Times Co.		Capital, Inc.
Republic of	1.00%	Deutsche	12/20/15	$	50		2,662
Hungary		Bank AG
Israel (State of)	1.00%	Deutsche	3/20/17	$	35		(364	)
		Bank AG
Israel	1.00%	Deutsche	3/20/17	$	100		(1,109	)
Government Bond		Bank AG
Total						$	13,435

• Credit default swaps on single-name issues — sold protection outstanding as of February 29, 2012 were as follows:

Issuer	Receive Fixed Rate	Counterparty	Expiration Date	Issuer Credit Rating1	Notional Amount (000)2		Unrealized Appreciation (Depreciation)
Air Lease Corp.	5.00%	Goldman	2/14/13	Not Rated	$	100	$	138
		Sachs & Co.
CIT Group, Inc.	5.00%	Deutsche	9/20/15	BB–	$	500		33,393
		Bank AG
ARAMARK Corp.	5.00%	Credit Suisse	9/20/16	B	$	50		4,050
		Securities
		(USA) LLC
ARAMARK Corp.	5.00%	Goldman	9/20/16	B	$	50		3,865
		Sachs & Co.
ARAMARK Corp.	5.00%	Deutsche	3/20/17	B	$	35		754
		Bank AG
Bausch &	5.00%	Credit Suisse	3/20/17	B	$	20		1,001
Lomb, Inc.		Securities
		(USA) LLC
Bausch &	5.00%	Goldman	3/20/17	B	$	35		134
Lomb, Inc.		Sachs & Co.
Bausch &	5.00%	Goldman	3/20/17	B	$	15		684
Lomb, Inc.		Sachs & Co.
Crown Castle	7.25%	Deutsche	3/20/17	B–	$	80		1,735
International		Bank AG
Corp.
CCO	8.00%	Deutsche	9/20/17	BB–	$	280		(15	)
Holdings LLC		Bank AG
Total							$	45,739

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

• Credit default swaps on traded indexes — sold protection outstanding as of February 29, 2012 were as follows:

Issuer	Receive Fixed Rate	Counterparty	Expiration Date	Credit Rating3	Notional Amount (000)4		Unrealized Appreciation
Dow Jones CDX	5.00%	Credit Suisse	12/20/16	B+	$	1,940	$	126,645
North America		Securities
High Yield		(USA) LLC
Series 17

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

• 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. These definitions 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 derivative financial instruments. These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes as follows:

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

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

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

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and does not necessarily correspond to the Trust’s perceived risk of investing in those securities. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to the Trust’s most recent financial statements as contained in its annual report.

The following tables summarize the inputs used as of February 29, 2012 in determining the fair valuation of the Trust’s investments and derivative financial instruments:

Valuation Inputs	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments:
Common Stocks	$	822,888	$	1,095,341	$	9,626	$	1,927,855
Corporate Bonds		—		45,821,032		654,449		46,475,481
Floating Rate Loan Interests		—		7,560,603		1,449,238		9,009,841
Preferred Securities		384,582		850,415		—		1,234,997
Warrants		—		44,657		1		44,658
Short-Term Securities		980,802		—		—		980,802
Total	$	2,188,272	$	55,372,048	$	2,113,314	$	59,673,634

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012	69

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

Valuation Inputs	Level 1		Level 2			Level 3			Total
Derivative Financial Instruments1
Assets:
Credit contracts		—	$	156,660		$	35,266		$	191,926
Foreign currency exchange contracts		—		407			—			407
Liabilities:
Credit contracts		—		(6,092	)		(15	)		(6,107	)
Foreign currency exchange contracts		—		(15,017	)		—			(15,017	)
Total		—	$	135,958		$	35,251		$	171,209

¹ Derivative financial instruments are swaps, foreign currency exchange contracts and options. Swaps 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:

	Common Stocks			Corporate Bonds			Floating Rate Loan Interests			Other Interests			Preferred Securities			Warrants			Total
Assets/Liabilities:
Balance, as of August 31, 2011	$	27,152		$	688,980		$	1,642,711		$	477		$	45,985		$	34,922		$	2,440,227
Accrued discounts/premiums		—			—			10,336			—			—			—			10,336
Net realized gain (loss)		—			8,873			6,344			910			54,100			—			70,227
Net change in unrealized appreciation/depreciation2		(23,756	)		(15,023	)		(119,058	)		(477	)		(45,985	)		—			(204,299	)
Purchases		6,230			8,369			67,215			—			—			—			81,814
Sales		—			(36,750	)		(77,190	)		(910	)		(54,100	)		—			(168,950	)
Transfers in3		—			—			306,067			—			—			—			306,067
Transfers out3		—			—			(387,187	)		—			—			(34,921	)		(422,108	)
Balance, as of February 29, 2012	$	9,626		$	654,449		$	1,449,238			—			—		$	1		$	2,113,314

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 29, 2012 was $(150,114).
3	The Trust’s policy is to recognize transfers in and transfers out as of the beginning of the period of the event or the change in circumstances that caused the transfer.

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

	Credit Contracts
Assets/Liabilities:
Balance, as of August 31, 2011		—
Accrued discounts/premiums	$	(10,677	)
Net realized gain (loss)		—
Net change in unrealized appreciation/depreciation4		35,250
Purchases		—
Issuances5		44,181
Sales		—
Settlements6		(33,503	)
Transfers in7		—
Transfers out7		—
Balance, as of February 29, 2012	$	35,251

4	Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations. The change in unrealized appreciation/depreciation on derivative financial instruments still held at February 29, 2012 was $35,250.
5	Issuances represent upfront cash received on certain derivative financial instruments.
6	Settlements represent periodic contractual cash flows and/or cash flows to terminate certain derivative financial instruments.
7	The Trust’s policy is to recognize transfers in and transfers out as of the beginning of the period of the event or the change in circumstances that caused the transfer.

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

See Notes to Financial Statements.
70	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012

Schedule of Investments February 29, 2012 (Unaudited)	BlackRock Income Opportunity Trust, Inc. (BNA)
	(Percentages shown are based on Net Assets)

Asset-Backed Securities	Par (000)		Value
Asset-Backed Securities — 5.6%
321 Henderson Receivables I LLC, Series 2010-3A, Class A, 3.82%, 12/15/48 (a)	USD	804	$	809,872
AH Mortgage Advance Trust, Series SART-3, Class 1A1, 2.98%, 3/13/43 (a)		630		624,706
AmeriCredit Automobile Receivables Trust, Series 2011-5, Class C, 3.44%, 10/08/17		400		409,022
CarMax Auto Owner Trust:
Series 2012-1, Class B, 1.76%, 8/15/17		210		209,783
Series 2012-1, Class C, 2.20%, 10/16/17		125		124,845
Series 2012-1, Class D, 3.09%, 8/15/18		160		159,809
CenterPoint Energy Transition Bond Co. LLC, Series 2012-1, Class A3, 3.03%, 10/15/25		1,105		1,118,781
Credit Acceptance Auto Loan Trust, Series 2010-1, Class B, 3.63%, 10/15/18 (a)		1,970		1,974,447
DT Auto Owner Trust (a):
Series 2011-2A, Class C, 3.05%, 2/16/16		1,500		1,498,858
Series 2011-3A, Class C, 4.03%, 2/15/17		260		262,884
Ford Credit Floorplan Master Owner Trust:
Series 2012-1, Class B, 1.15%, 1/15/16 (b)		180		180,002
Series 2012-1, Class C, 1.75%, 1/15/16 (b)		480		480,004
Series 2012-1, Class D, 2.35%, 1/15/16 (b)		450		450,003
Series 2012-2, Class B, 2.32%, 1/15/19		245		245,023
Series 2012-2, Class C, 2.86%, 1/15/19		105		104,921
Series 2012-2, Class D, 3.51%, 1/15/19		200		199,843
Globaldrive BV, Series 2008-2, Class A, 4.00%, 10/20/16	EUR	264		354,417
Home Equity Asset Trust, Series 2007-2, Class 2A1, 0.35%, 7/25/37 (b)	USD	130		127,042
Nelnet Student Loan Trust (b):
Series 2006-1, Class A5, 0.60%, 8/23/27		525		488,049
Series 2008-3, Class A4, 2.14%, 11/25/24		620		639,191
PFS Financing Corp., Series 2012-AA, Class A, 1.46%, 2/15/16 (a)(b)		480		480,000
Santander Consumer Acquired Receivables Trust (a):
Series 2011-S1A, Class B, 1.66%, 8/15/16		596		596,319
Series 2011-S1A, Class C, 2.01%, 8/15/16		444		439,288
Series 2011-S1A, Class D, 3.15%, 8/15/16		452		451,249
Series 2011-WO, Class C, 3.19%, 10/15/15		575		574,248
Santander Drive Auto Receivables Trust:
Series 2010-2, Class B, 2.24%, 12/15/14		870		873,712
Series 2010-2, Class C, 3.89%, 7/17/17		1,020		1,031,313
Series 2010-B, Class B, 2.10%, 9/15/14 (a)		700		704,040
Series 2010-B, Class C, 3.02%, 10/17/16 (a)		735		730,438
Series 2011-1, Class D, 4.01%, 2/15/17		940		944,687
Series 2011-S1A, Class B, 1.48%, 5/15/17 (a)		357		354,894
Series 2011-S1A, Class D, 3.10%, 5/15/17 (a)		388		384,887
Series 2011-S2A, Class C, 2.86%, 6/15/17 (a)		919		919,399
Series 2012-1, Class B, 2.72%, 5/16/16		240		240,290
Series 2012-1, Class C, 3.78%, 11/15/17		325		325,521
SLM Student Loan Trust:
Series 2004-B, Class A2, 0.75%, 6/15/21 (b)		217		208,113
Series 2008-5, Class A3, 1.86%, 1/25/18 (b)		525		533,232
Series 2008-5, Class A4, 2.26%, 7/25/23 (b)		630		645,212
Series 2012-A, Class A1, 1.66%, 8/15/25 (a)(b)		380		380,085
Series 2012-A, Class A2, 3.83%, 1/17/45 (a)		345		345,338
Small Business Administration Participation Certificates, Series 1996-20K, Class 1, 6.95%, 11/01/16		222		240,337
				21,864,104
Asset-Backed Securities	Par (000)		Value
Interest Only Asset-Backed Securities — 0.2%
Sterling Bank Trust, Series 2004-2, Class Note, 2.08%, 3/30/30 (a)	USD	4,458	$	345,527
Sterling Coofs Trust, Series 1, 2.36%, 4/15/29		6,359		492,822
				838,349
Total Asset-Backed Securities — 5.8%				22,702,453
Common Stocks (c) — 0.0%	Shares
Software — 0.0%
Bankruptcy Management Solutions, Inc.		152		3
Corporate Bonds	Par (000)
Aerospace & Defense — 0.6%
United Technologies Corp.:
4.88%, 5/01/15	USD	1,250		1,403,397
6.13%, 7/15/38		750		995,951
				2,399,348
Airlines — 0.4%
Continental Airlines, Inc., Series 2010-1, Class B, 6.00%, 1/12/19		672		651,509
United Air Lines, Inc., 12.75%, 7/15/12		786		813,162
				1,464,671
Auto Components — 0.3%
BorgWarner, Inc., 4.63%, 9/15/20		265		284,247
Icahn Enterprises LP, 8.00%, 1/15/18		1,000		1,060,000
				1,344,247
Capital Markets — 5.6%
CDP Financial, Inc., 5.60%, 11/25/39 (a)		2,955		3,574,028
Credit Suisse AG:
2.60%, 5/27/16 (a)		570		583,207
5.40%, 1/14/20 (d)		1,785		1,793,150
E*Trade Financial Corp., 12.50%, 11/30/17		1,440		1,677,600
The Goldman Sachs Group, Inc.:
5.38%, 3/15/20		1,215		1,245,046
5.25%, 7/27/21		3,175		3,180,188
5.75%, 1/24/22		3,455		3,606,467
Lehman Brothers Holdings, Inc., 6.50%, 7/19/17 (c)(e)		225		22
Morgan Stanley:
3.01%, 5/14/13 (b)		1,880		1,882,668
4.20%, 11/20/14		680		682,540
4.00%, 7/24/15		400		400,363
6.25%, 8/28/17		1,925		2,017,960
5.63%, 9/23/19		760		759,881
5.50%, 7/28/21		370		366,583
				21,769,703
Chemicals — 1.0%
American Pacific Corp., 9.00%, 2/01/15		280		273,000
CF Industries, Inc., 7.13%, 5/01/20		1,470		1,800,750
The Dow Chemical Co., 4.13%, 11/15/21		350		372,474
Ineos Finance Plc, 8.38%, 2/15/19 (a)		265		281,562
Lyondell Chemical Co., 11.00%, 5/01/18		680		745,450
LyondellBasell Industries NV, 6.00%, 11/15/21 (a)		240		263,400
				3,736,636

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012	71

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

Corporate Bonds	Par (000)		Value
Commercial Banks — 5.5%
CIT Group, Inc. (a):
7.00%, 5/02/16	USD	110	$	110,138
7.00%, 5/02/17		1,035		1,036,294
DEPFA ACS Bank, 5.13%, 3/16/37 (a)		4,150		2,900,248
Discover Bank, 8.70%, 11/18/19		250		300,923
DnB NOR Boligkreditt (a):
2.10%, 10/14/15		4,005		4,047,553
2.90%, 3/29/16		2,595		2,689,754
Eksportfinans ASA, 5.50%, 6/26/17		1,000		959,878
HSBC Bank Brasil SA — Banco Multiplo, 4.00%, 5/11/16 (a)		1,400		1,393,000
HSBC Bank Plc, 3.10%, 5/24/16 (a)		695		710,919
HSBC Holdings Plc, 6.10%, 1/14/42		305		363,539
Sparebanken 1 Boligkreditt (a):
1.25%, 10/25/13		1,575		1,576,652
2.63%, 5/27/16		1,675		1,714,687
Wachovia Corp., 5.25%, 8/01/14		3,420		3,692,208
				21,495,793
Commercial Services & Supplies — 0.4%
ARAMARK Corp., 8.50%, 2/01/15		18		18,473
AWAS Aviation Capital Ltd., 7.00%, 10/17/16 (a)		136		141,702
Mobile Mini, Inc., 7.88%, 12/01/20		1,320		1,386,000
West Corp., 8.63%, 10/01/18		135		148,162
				1,694,337
Construction & Engineering — 0.1%
Abengoa SA, 8.50%, 3/31/16	EUR	150		204,881
Construction Materials — 0.0%
Lafarge SA, 7.13%, 7/15/36	USD	135		124,670
Consumer Finance — 0.7%
Ford Motor Credit Co. LLC:
7.80%, 6/01/12		380		384,684
6.63%, 8/15/17		280		317,286
5.88%, 8/02/21		270		301,312
SLM Corp.:
6.25%, 1/25/16		651		680,295
Series A, 0.86%, 1/27/14 (b)		600		570,969
Toll Brothers Finance Corp., 5.88%, 2/15/22		345		357,846
				2,612,392
Containers & Packaging — 0.2%
Ardagh Packaging Finance Plc, 7.38%, 10/15/17 (a)	EUR	425		597,370
Diversified Financial Services — 6.5%
Ally Financial, Inc.:
8.30%, 2/12/15	USD	860		950,300
6.25%, 12/01/17		160		165,379
8.00%, 3/15/20		560		634,200
Capital One Financial Corp., 4.75%, 7/15/21		975		1,027,923
Citigroup, Inc.:
5.00%, 9/15/14		285		296,700
4.59%, 12/15/15		7,245		7,673,737
General Electric Capital Corp. (d):
2.13%, 12/21/12		525		533,142
6.75%, 3/15/32		3,000		3,645,615
JPMorgan Chase & Co.:
6.30%, 4/23/19		1,375		1,616,392
4.50%, 1/24/22		2,250		2,390,726
Series BKNT, 6.00%, 10/01/17		2,045		2,294,578
Reynolds Group Issuer, Inc. (a):
7.75%, 10/15/16	EUR	550		778,563
7.88%, 8/15/19	USD	660		722,700
6.88%, 2/15/21		1,730		1,833,800
Corporate Bonds	Par (000)		Value
Diversified Financial Services (concluded)
WMG Acquisition Corp. (a):
9.50%, 6/15/16	USD	160	$	176,800
11.50%, 10/01/18		780		828,750
				25,569,305
Diversified Telecommunication Services — 3.3%
Level 3 Financing, Inc. (a):
8.13%, 7/01/19		671		702,872
8.63%, 7/15/20		740		789,950
Telecom Italia Capital SA, 4.95%, 9/30/14		4,375		4,413,281
Verizon Communications, Inc.:
3.50%, 11/01/21		500		523,076
6.40%, 2/15/38		3,396		4,255,005
8.95%, 3/01/39		1,125		1,783,586
Windstream Corp., 7.88%, 11/01/17		200		225,500
				12,693,270
Electric Utilities — 5.2%
Alabama Power Co.:
3.95%, 6/01/21		460		499,779
6.00%, 3/01/39		550		710,849
The Cleveland Electric Illuminating Co.:
8.88%, 11/15/18		121		161,070
5.95%, 12/15/36		217		238,477
Constellation Energy Group, Inc., 7.60%, 4/01/32		200		267,491
Duke Energy Carolinas LLC:
6.10%, 6/01/37		325		412,645
6.00%, 1/15/38		850		1,117,062
4.25%, 12/15/41		375		395,793
E.ON International Finance BV, 6.65%, 4/30/38 (a)		1,575		2,062,535
EDF SA, 5.60%, 1/27/40 (a)		1,400		1,490,042
Florida Power Corp.:
6.35%, 9/15/37		1,450		1,954,322
6.40%, 6/15/38		340		462,884
Georgia Power Co., 3.00%, 4/15/16		800		851,782
Jersey Central Power & Light Co., 7.35%, 2/01/19		245		310,546
Ohio Power Co., Series D, 6.60%, 3/01/33		1,500		1,893,546
PacifiCorp., 6.25%, 10/15/37		650		862,513
Public Service Co. of Colorado, 6.25%, 9/01/37		1,350		1,816,256
Southern California Edison Co.:
5.63%, 2/01/36		675		844,966
Series 08-A, 5.95%, 2/01/38		1,100		1,447,840
The Tokyo Electric Power Co., Inc., 4.50%, 3/24/14	EUR	1,350		1,680,796
The Toledo Edison Co., 6.15%, 5/15/37	USD	350		413,908
Trans-Allegheny Interstate Line Co., 4.00%, 1/15/15 (a)		250		264,907
				20,160,009
Energy Equipment & Services — 2.9%
Calfrac Holdings LP, 7.50%, 12/01/20 (a)		565		565,000
Ensco Plc:
3.25%, 3/15/16		160		166,976
4.70%, 3/15/21		1,745		1,910,543
Frac Tech Services LLC, 7.63%, 11/15/18 (a)		1,110		1,184,925
MEG Energy Corp., 6.50%, 3/15/21 (a)		560		599,200
Noble Holding International Ltd., 5.25%, 3/15/42		350		370,145
Peabody Energy Corp., 6.25%, 11/15/21 (a)		3,855		4,038,113
Pride International, Inc., 6.88%, 8/15/20		235		286,263
Transocean, Inc.:
5.05%, 12/15/16		850		929,948
6.50%, 11/15/20		350		408,186
6.38%, 12/15/21		845		997,227
				11,456,526

See Notes to Financial Statements.
72	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012

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

Corporate Bonds	Par (000)		Value
Food & Staples Retailing — 1.0%
Wal-Mart Stores, Inc.:
6.50%, 8/15/37	USD	1,975	$	2,687,752
6.20%, 4/15/38 (d)		850		1,120,925
				3,808,677
Food Products — 1.0%
Darling International, Inc., 8.50%, 12/15/18		335		376,875
Kraft Foods, Inc., 5.38%, 2/10/20		3,000		3,497,868
				3,874,743
Health Care Equipment & Supplies — 0.7%
Boston Scientific Corp., 6.25%, 11/15/15		1,260		1,400,964
DJO Finance LLC:
10.88%, 11/15/14		850		864,875
7.75%, 4/15/18		40		34,400
Teleflex, Inc., 6.88%, 6/01/19		385		414,837
				2,715,076
Health Care Providers & Services — 2.4%
Aviv Healthcare Properties LP, 7.75%, 2/15/19		535		547,037
ConvaTec Healthcare E SA, 7.38%, 12/15/17 (a)	EUR	494		682,837
HCA, Inc.:
8.50%, 4/15/19	USD	17		19,040
6.50%, 2/15/20		2,015		2,161,087
7.88%, 2/15/20		135		148,838
7.25%, 9/15/20		50		54,500
Health Management Associates, Inc., 7.38%, 1/15/20 (a)		850		886,125
IASIS Healthcare LLC, 8.38%, 5/15/19		1,000		955,000
INC Research LLC, 11.50%, 7/15/19 (a)		545		523,200
inVentiv Health, Inc., 10.00%, 8/15/18 (a)		155		141,050
Omnicare, Inc., 7.75%, 6/01/20		805		896,569
Symbion, Inc., 8.00%, 6/15/16		455		439,075
Tenet Healthcare Corp.:
10.00%, 5/01/18		370		431,050
8.88%, 7/01/19		1,150		1,311,000
UnitedHealth Group, Inc., 3.38%, 11/15/21		160		168,580
				9,364,988
Health Care Technology — 0.8%
Amgen, Inc.:
3.88%, 11/15/21		1,500		1,558,739
6.40%, 2/01/39		750		896,546
5.15%, 11/15/41		750		784,909
				3,240,194
Hotels, Restaurants & Leisure — 0.6%
El Dorado Resorts LLC, 8.63%, 6/15/19 (a)		180		171,450
MGM Resorts International, 11.13%, 11/15/17		265		301,438
Punch Taverns Finance B Ltd., Series A7, 4.77%, 6/30/33	GBP	1,721		1,964,615
				2,437,503
Household Durables — 0.3%
Standard Pacific Corp., 10.75%, 9/15/16	USD	1,000		1,148,750
Household Products — 0.1%
Ontex IV SA, 7.50%, 4/15/18 (a)	EUR	190		232,886
Independent Power Producers & Energy Traders — 0.5%
Energy Future Intermediate Holding Co. LLC, 10.00%, 12/01/20	USD	1,955		2,123,619
Industrial Conglomerates — 0.5%
Sequa Corp. (a):
11.75%, 12/01/15		760		807,500
13.50%, 12/01/15		927		990,086
				1,797,586
Corporate Bonds	Par (000)		Value
Insurance — 2.7%
Allianz Finance II BV, 5.75%, 7/08/41 (b)	EUR	500	$	633,705
American International Group, Inc., 5.45%, 5/18/17	USD	800		850,281
AXA SA, 5.25%, 4/16/40 (b)	EUR	250		279,985
CNO Financial Group, Inc., 9.00%, 1/15/18 (a)	USD	408		439,110
Fairfax Financial Holdings Ltd., 5.80%, 5/15/21 (a)		820		804,094
Hartford Financial Services Group, Inc., 6.00%, 1/15/19		345		368,167
Lincoln National Corp., 6.25%, 2/15/20		630		722,091
Manulife Financial Corp., 3.40%, 9/17/15		1,625		1,691,495
Metropolitan Life Global Funding I, 5.13%, 6/10/14 (a)		775		836,546
MPL 2 Acquisition Canco, Inc., 9.88%, 8/15/18 (a)		340		303,450
Muenchener Rueckversicherungs AG, 6.00%, 5/26/41 (b)	EUR	200		270,465
Prudential Financial, Inc.:
4.75%, 9/17/15	USD	1,220		1,329,100
7.38%, 6/15/19		300		371,333
5.38%, 6/21/20		250		282,002
4.50%, 11/15/20		400		425,822
5.70%, 12/14/36		950		1,025,097
				10,632,743
IT Services — 0.8%
First Data Corp. (a):
7.38%, 6/15/19		205		207,306
8.88%, 8/15/20		1,000		1,082,500
8.25%, 1/15/21		80		77,400
SunGard Data Systems, Inc.:
7.38%, 11/15/18		490		526,750
7.63%, 11/15/20		1,100		1,188,000
				3,081,956
Machinery — 0.4%
Joy Global, Inc., 5.13%, 10/15/21		225		247,152
Navistar International Corp., 8.25%, 11/01/21		13		14,219
UR Financing Escrow Corp. (a)(f):
5.75%, 7/15/18		194		199,335
7.38%, 5/15/20		495		507,994
7.63%, 4/15/22		455		470,925
				1,439,625
Marine — 0.3%
Nakilat, Inc., Series A, 6.07%, 12/31/33 (a)		1,100		1,182,500
Media — 7.5%
Affinion Group, Inc., 7.88%, 12/15/18		1,505		1,346,975
AMC Networks, Inc., 7.75%, 7/15/21 (a)		320		356,800
CBS Corp.:
4.63%, 5/15/18		810		874,123
8.88%, 5/15/19		320		426,677
5.75%, 4/15/20		250		287,945
CCH II LLC, 13.50%, 11/30/16		2,265		2,604,291
Clear Channel Communications, Inc., 9.00%, 3/01/21		685		630,200
Clear Channel Worldwide Holdings, Inc.:
9.25%, 12/15/17		278		304,410
Series B, 9.25%, 12/15/17		2,492		2,741,200
Comcast Cable Communications Holdings, Inc., 9.46%, 11/15/22		2,000		2,957,728
Cox Communications, Inc. (a):
6.95%, 6/01/38		1,000		1,187,155
8.38%, 3/01/39		900		1,272,818
DIRECTV Holdings LLC, 6.38%, 3/01/41		260		312,960

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012	73

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

Corporate Bonds	Par (000)		Value
Media (concluded)
Gray Television, Inc., 10.50%, 6/29/15	USD	975	$	1,029,844
Intelsat Luxembourg SA:
11.25%, 6/15/16		410		433,575
11.25%, 2/04/17		520		536,250
11.50%, 2/04/17 (g)		420		432,600
NBC Universal Media LLC:
5.15%, 4/30/20		1,974		2,282,406
4.38%, 4/01/21		1,015		1,111,845
The New York Times Co., 6.63%, 12/15/16		1,800		1,876,500
News America, Inc., 4.50%, 2/15/21		40		43,122
Time Warner Cable, Inc.:
7.30%, 7/01/38		970		1,246,531
5.88%, 11/15/40		460		522,324
5.50%, 9/01/41		920		1,012,976
Time Warner, Inc.:
4.70%, 1/15/21		1,000		1,115,148
6.10%, 7/15/40		615		729,321
Virgin Media Secured Finance Plc:
6.50%, 1/15/18		330		359,700
7.00%, 1/15/18	GBP	792		1,360,792
				29,396,216
Metals & Mining — 3.5%
Alcoa, Inc., 5.40%, 4/15/21	USD	1,450		1,509,501
AngloGold Ashanti Holdings Plc, 5.38%, 4/15/20		245		252,252
Barrick Gold Corp., 2.90%, 5/30/16		1,685		1,776,120
Barrick North America Finance LLC, 4.40%, 5/30/21		15		16,508
Cliffs Natural Resources, Inc., 4.80%, 10/01/20		240		253,865
Falconbridge Ltd., 6.20%, 6/15/35		1,550		1,624,006
Freeport-McMoRan Copper & Gold, Inc., 3.55%, 3/01/22		540		537,419
Newcrest Finance Pty Ltd., 4.45%, 11/15/21 (a)		475		487,131
Novelis, Inc., 8.75%, 12/15/20		4,105		4,577,075
Teck Resources Ltd., 5.38%, 10/01/15		2,350		2,621,228
				13,655,105
Multi-Utilities — 0.4%
Dominion Resources, Inc., 6.00%, 11/30/17		1,135		1,371,289
Multiline Retail — 0.8%
Dollar General Corp., 11.88%, 7/15/17 (b)		1,500		1,646,265
Macy’s Retail Holdings, Inc.:
5.90%, 12/01/16		800		920,615
7.45%, 7/15/17		581		713,135
				3,280,015
Oil, Gas & Consumable Fuels — 9.0%
Anadarko Petroleum Corp.:
5.95%, 9/15/16		1,916		2,218,197
6.38%, 9/15/17		1,825		2,190,588
Berry Petroleum Co., 8.25%, 11/01/16		160		166,800
BP Capital Markets Plc, 3.13%, 10/01/15		330		353,344
Burlington Resources Finance Co., 7.40%, 12/01/31		950		1,293,729
Cenovus Energy, Inc., 6.75%, 11/15/39		750		1,022,706
Chesapeake Midstream Partners LP, 6.13%, 7/15/22 (a)		400		414,000
ConocoPhillips Canada Funding Co., 5.95%, 10/15/36		150		187,826
Consol Energy, Inc.:
8.00%, 4/01/17		514		558,975
8.25%, 4/01/20		191		208,190
Denbury Resources, Inc.:
8.25%, 2/15/20		915		1,043,100
6.38%, 8/15/21		450		496,125
Corporate Bonds	Par (000)		Value
Oil, Gas & Consumable Fuels (concluded)
Devon Energy Corp., 7.95%, 4/15/32	USD	650	$	946,724
El Paso Pipeline Partners Operating Co. LLC, 6.50%, 4/01/20		240		267,419
EnCana Corp.:
6.50%, 8/15/34		70		79,135
6.63%, 8/15/37		775		907,616
Energy XXI Gulf Coast, Inc., 9.25%, 12/15/17		540		598,050
Enterprise Products Operating LLC:
6.13%, 10/15/39		700		835,938
Series L, 6.30%, 9/15/17		600		709,377
KeySpan Gas East Corp., 5.82%, 4/01/41 (a)		505		611,284
Kinder Morgan Energy Partners LP:
5.95%, 2/15/18		1,300		1,547,482
6.55%, 9/15/40		110		126,146
6.38%, 3/01/41		160		181,901
Linn Energy LLC, 6.25%, 11/01/19 (a)(f)		590		589,263
Marathon Petroleum Corp., 6.50%, 3/01/41		1,052		1,188,949
MidAmerican Energy Co., 5.80%, 10/15/36		800		969,791
MidAmerican Energy Holdings Co.:
5.95%, 5/15/37		950		1,151,058
6.50%, 9/15/37		2,115		2,740,831
Nexen, Inc.:
6.40%, 5/15/37		400		458,800
7.50%, 7/30/39		670		860,552
Petrobras International Finance Co.:
3.88%, 1/27/16		1,335		1,392,338
5.75%, 1/20/20		1,760		1,936,000
Premier Oil Plc, 5.11%, 6/09/18 (a)		1,900		1,961,750
Range Resources Corp., 5.75%, 6/01/21		941		1,006,870
Rockies Express Pipeline LLC, 3.90%, 4/15/15 (a)		804		771,840
Suncor Energy, Inc., 6.10%, 6/01/18		1,750		2,134,934
Western Gas Partners LP, 5.38%, 6/01/21		715		762,926
Woodside Finance Ltd., 4.60%, 5/10/21 (a)		205		214,411
				35,104,965
Paper & Forest Products — 0.7%
Clearwater Paper Corp., 7.13%, 11/01/18		1,000		1,065,000
International Paper Co.:
7.50%, 8/15/21		75		96,316
4.75%, 2/15/22		420		457,552
6.00%, 11/15/41		435		502,718
NewPage Corp., 11.38%, 12/31/14 (c)(d)(e)		1,240		747,100
				2,868,686
Pharmaceuticals — 0.6%
Capsugel Finance Co. SCA, 9.88%, 8/01/19 (a)	EUR	200		286,445
Jaguar Holding Co. II, 9.50%, 12/01/19 (a)	USD	620		678,125
Teva Pharmaceutical Finance Co. BV, Series 2, 3.65%, 11/10/21		205		213,889
Teva Pharmaceutical Finance IV BV, 3.65%, 11/10/21		1,000		1,043,362
				2,221,821
Professional Services — 0.0%
FTI Consulting, Inc., 7.75%, 10/01/16		125		130,156
Real Estate Investment Trusts (REITs) — 0.5%
ERP Operating LP, 4.63%, 12/15/21		505		541,080
Ventas Realty LP, 4.75%, 6/01/21		275		283,341
Vornado Realty LP, 5.00%, 1/15/22		1,190		1,254,554
				2,078,975
Real Estate Management & Development — 0.3%
Realogy Corp. (a)(d):
7.88%, 2/15/19		429		416,130
7.63%, 1/15/20		520		536,900
WEA Finance LLC, 4.63%, 5/10/21 (a)		305		321,743
				1,274,773

See Notes to Financial Statements.
74	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012

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

Corporate Bonds	Par (000)			Value
Road & Rail — 0.8%
Avis Budget Car Rental LLC, 8.25%, 1/15/19	USD	165		$	172,013
Burlington Northern Santa Fe LLC, 5.75%, 5/01/40		940			1,139,842
The Hertz Corp., 7.38%, 1/15/21		1,645			1,780,712
					3,092,567
Semiconductors & Semiconductor Equipment — 0.1%
Spansion LLC, 7.88%, 11/15/17		390			383,175
Software — 0.2%
Oracle Corp., 5.38%, 7/15/40		800			972,806
Specialty Retail — 0.3%
Home Depot, Inc., 5.88%, 12/16/36		830			1,038,021
QVC, Inc. (a):
7.50%, 10/01/19		35			38,850
7.38%, 10/15/20		35			38,763
					1,115,634
Thrifts & Mortgage Finance — 0.7%
Northern Rock Plc, 5.63%, 6/22/17 (a)		290			308,892
Radian Group, Inc.:
5.63%, 2/15/13		1,400			1,211,000
5.38%, 6/15/15		1,400			1,029,000
					2,548,892
Wireless Telecommunication Services — 2.7%
America Movil SAB de CV, 2.38%, 9/08/16		800			816,866
Cricket Communications, Inc., 7.75%, 5/15/16		850			905,250
Crown Castle Towers LLC, 6.11%, 1/15/40 (a)		1,595			1,795,898
Digicel Group Ltd. (a):
8.88%, 1/15/15		1,800			1,831,500
8.25%, 9/01/17		150			159,000
MetroPCS Wireless, Inc., 6.63%, 11/15/20		950			978,500
Rogers Communications, Inc., 7.50%, 8/15/38		1,175			1,596,397
SBA Tower Trust, 5.10%, 4/15/17 (a)		360			385,920
Sprint Capital Corp.:
6.88%, 11/15/28		510			397,800
8.75%, 3/15/32		350			311,500
Sprint Nextel Corp. (a):
9.00%, 11/15/18		530			590,950
7.00%, 3/01/20 (f)		770			782,513
					10,552,094
Total Corporate Bonds — 72.9%					284,451,173
Foreign Agency Obligations
Hellenic Republic Government Bond, 4.60%, 9/20/40	EUR	160			42,634
Hydro-Quebec:
9.40%, 2/01/21	USD	390			584,676
8.40%, 1/15/22		730			1,046,735
8.05%, 7/07/24		1,900			2,801,945
Italy Buoni Poliennali Del Tesoro, 5.00%, 3/01/22	EUR	1,650			2,164,880
Italy Government International Bond, 5.38%, 6/15/33	USD	470			443,964
Kreditanstalt fuer Wiederaufbau, 1.38%, 7/15/13		655			662,307
Mexico Government International Bond:
5.63%, 1/15/17		370			426,425
5.13%, 1/15/20		145			165,663
Foreign Agency Obligations	Par (000)			Value
Poland Government International Bond, 5.13%, 4/21/21	USD	705		$	756,112
Russian Foreign Bond Eurobond, 7.50%, 3/31/30 (h)		1,394			1,662,882
Turkey Government International Bond, 6.25%, 9/26/22		1,500			1,608,750
Total Foreign Agency Obligations — 3.2%					12,366,973
Non-Agency Mortgage-Backed Securities
Collateralized Mortgage Obligations — 2.7%
Banc of America Funding Corp., Series 2007-2, Class 1A2, 6.00%, 3/25/37		1,100			863,258
Collateralized Mortgage Obligation Trust:
Series 40, Class R, 580.50%, 4/01/18		—	(i)		49
Series 42, Class R, 6,000.00%, 10/01/14		—	(i)		29
Countrywide Alternative Loan Trust:
Series 2005-64CB, Class 1A15, 5.50%, 12/25/35		1,629			1,221,579
Series 2006-0A21, Class A1, 0.44%, 3/20/47 (b)		882			405,576
Series 2006-41CB, Class 1A4, 5.75%, 1/25/37		748			506,865
Countrywide Home Loan Mortgage Pass-Through Trust:
Series 2006-0A5, Class 2A1, 0.44%, 4/25/46 (b)		350			185,117
Series 2007-10, Class A22, 6.00%, 7/25/37		675			520,090
Credit Suisse Mortgage Capital Certificates, Series 2011-2R, Class 2A1, 2.70%, 7/27/36 (a)(b)		1,395			1,326,735
Deutsche ALT-A Securities, Inc. Alternate Loan Trust, Series 2006-0A1, Class A1, 0.44%, 2/25/47 (b)		267			157,197
GMAC Mortgage Corp. Loan Trust, Series 2005-AR3, Class 5A1, 5.10%, 6/19/35 (b)		1,227			1,153,747
Homebanc Mortgage Trust, Series 2006-2, Class A1, 0.42%, 12/25/36 (b)		648			408,548
IndyMac IMJA Mortgage Loan Trust, Series 2007-A1, Class A4, 6.00%, 8/25/37		967			810,519
JPMorgan Mortgage Trust, Series 2007-S1, Class 2A22, 5.75%, 3/25/37		452			361,764
Merrill Lynch Mortgage Investors, Inc., Series 2006-A3, Class 3A1, 2.84%, 5/25/36 (b)		731			479,823
Residential Funding Securities LLC, Series 2003-RM2, Class AI5, 8.50%, 5/25/33		1,860			1,989,757
WaMu Mortgage Pass-Through Certificates, Series 2007-0A4, Class 1A, 0.95%, 5/25/47 (b)		385			238,362
Wells Fargo Mortgage-Backed Securities Trust, Series 2007-10, Class 1A21, 6.00%, 7/25/37		58			52,197
					10,681,212
Commercial Mortgage-Backed Securities — 11.9%
Banc of America Merrill Lynch Commercial Mortgage, Inc.:
Series 2007-1, Class A4, 5.45%, 1/15/49		500			563,501
Series 2007-2, Class A4, 5.43%, 4/10/49 (b)		750			832,763
Bear Stearns Commercial Mortgage Securities, Series 2005-PWR9, Class A4A, 4.87%, 9/11/42		800			879,736
Citigroup Commercial Mortgage Trust, Series 2008-C7, Class A4, 6.07%, 12/10/49 (b)		1,200			1,394,770
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2006-CD3, Class AM, 5.65%, 10/15/48		1,100			1,098,253
Commercial Mortgage Loan Trust, Series 2008-LS1, Class A4B, 6.01%, 12/10/49 (b)		1,515			1,724,244

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012	75

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
Commercial Mortgage-Backed Securities (concluded)
Commercial Mortgage Pass-Through Certificates, Series 2006-C7, Class AM, 5.78%, 6/10/46 (b)	USD	1,750	$	1,812,759
Credit Suisse First Boston Mortgage Securities Corp., Series 2005-C3, Class AJ, 4.77%, 7/15/37		705		620,444
Credit Suisse Mortgage Capital Certificates:
Series 2006-C3, Class AM, 5.82%, 6/15/38 (b)		1,000		1,056,006
Series 2006-C5, Class AM, 5.34%, 12/15/39		1,750		1,751,489
Series 2010-RR2, Class 2A, 5.79%, 9/15/39 (a)(b)		1,010		1,110,067
DBRR Trust, Series 2011-C32, Class A3A, 5.74%, 6/17/49 (a)(b)		365		396,307
Extended Stay America Trust, Series 2010-ESHA (a):
Class A, 2.95%, 11/05/27		489		493,750
Class D, 5.50%, 11/05/27		210		213,275
First Union-Lehman Brothers-Bank of America, Series 1998-C2, Class D, 6.78%, 11/18/35		2,068		2,118,803
GMAC Commercial Mortgage Securities, Inc.:
Series 2002-C3, Class A2, 4.93%, 7/10/39		2,253		2,288,682
Series 2004-C3, Class A4, 4.55%, 12/10/41		651		656,463
Greenwich Capital Commercial Funding Corp.:
Series 2006-GG7, Class A4, 5.88%, 7/10/38 (b)		1,169		1,332,267
Series 2007-GG9, Class A4, 5.44%, 3/10/39		2,165		2,403,585
GS Mortgage Securities Corp. II, Series 2007-GG10, Class A4, 5.79%, 8/10/45 (b)		430		480,736
JPMorgan Chase Commercial Mortgage Securities Corp.:
Series 2004-CBX, Class A4, 4.53%, 1/12/37		567		566,984
Series 2004-LN2, Class A2, 5.12%, 7/15/41		820		877,614
Series 2006-CB14, Class AM, 5.45%, 12/12/44 (b)		330		342,646
Series 2006-CB16, Class AJ, 5.62%, 5/12/45		720		591,853
LB-UBS Commercial Mortgage Trust (b):
Series 2004-C4, Class A3, 5.17%, 6/15/29		1,628		1,670,322
Series 2004-C8, Class C, 4.93%, 12/15/39		1,385		1,345,115
LB-UBS Commercial Mortgage Trust (b)(concluded):
Series 2007-C6, Class A4, 5.86%, 7/15/40		825		934,358
Series 2007-C7, Class A3, 5.87%, 9/15/45		1,460		1,658,566
Merrill Lynch Mortgage Trust (b):
Series 2004-BPC1, Class A3, 4.47%, 10/12/41		417		420,938
Series 2004-KEY2, Class A4, 4.86%, 8/12/39		1,000		1,077,270
Morgan Stanley, Series 2007-XLC1, Class A2, 0.56%, 7/17/17		625		580,951
Morgan Stanley Capital I, Series 2007-HQ11, Class A4, 5.45%, 2/12/44 (b)		4,000		4,507,196
Morgan Stanley Reremic Trust, Series 2011-IO, Class A, 2.50%, 3/23/51 (a)		1,092		1,095,604
Titan Europe Plc, Series 2006-4FSX, Class A1, 9.14%, 9/03/14 (b)	GBP	255		389,708
Wachovia Bank Commercial Mortgage Trust:
Series 2006-C28, Class A2, 5.50%, 10/15/48	USD	4,592		4,626,234
Series 2007-C33, Class A4, 5.90%, 2/15/51 (b)		2,285		2,518,993
				46,432,252
Interest Only Collateralized Mortgage Obligations — 0.0%
GSMPS Mortgage Loan Trust, Series 1998-5, Class IO, 0.15%, 6/19/27 (a)(b)		2,236		49,905
Salomon Brothers Mortgage Securities VII, Inc., Series 2000-1, Class IO, 0.65%, 3/25/22 (b)		339		7,085
				56,990

Non-Agency Mortgage-Backed Securities	Par (000)		Value
Interest Only Commercial Mortgage-Backed Securities — 0.0%
Morgan Stanley Capital I, Series 1997-HF1, Class X, 2.19%, 7/15/29 (a)(b)	USD	1	$	—
Total Non-Agency Mortgage-Backed Securities — 14.6%				57,170,454
Preferred Securities
Capital Trusts
Capital Markets — 0.0%
State Street Capital Trust IV, 1.55%, 6/15/37 (b)		70		49,417
Commercial Banks — 0.3%
Barclays Bank Plc, 5.93% (a)(b)(j)		250		215,625
Fifth Third Capital Trust IV, 6.50%, 4/15/67 (b)		505		501,212
JPMorgan Chase Capital XXV, Series Y, 6.80%, 10/01/37		205		207,050
				923,887
Consumer Finance — 0.2%
Capital One Capital V, 10.25%, 8/15/39		200		208,500
Capital One Capital VI, 8.88%, 5/15/40		690		713,074
				921,574
Insurance — 1.2%
The Allstate Corp., 6.50%, 5/15/67 (b)		2,150		2,107,000
American International Group, Inc., 8.18%, 5/15/68 (b)		195		206,456
Lincoln National Corp., 6.05%, 4/20/67 (b)		750		688,125
MetLife Capital Trust IV, 7.88%, 12/15/67 (a)		125		137,500
Swiss Re Capital I LP, 6.85% (a)(b)(j)		1,060		956,422
XL Group Plc, Series E, 6.50% (b)(j)		810		686,475
				4,781,978
Total Capital Trusts — 1.7%				6,676,856
Preferred Stocks	Shares
Thrifts & Mortgage Finance — 0.1%
Fannie Mae (b)(c):
Series O, 7.00%		40,000		74,000
Series S, 8.25%		10,000		15,000
Freddie Mac, Series Z, 8.38% (b)(c)		94,539		139,918
Total Preferred Stocks — 0.1%				228,918
Trust Preferreds — 0.1%	Par (000)
Commercial Banks — 0.1%
Citigroup Capital XIII, 7.88%, 10/30/40	USD	14,810		398,181
Total Preferred Securities — 1.9%				7,303,955

See Notes to Financial Statements.
76	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012

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

Taxable Municipal Bonds	Par (000)			Value
East Bay Municipal Utility District, RB, Build America Bonds, 5.87%, 6/01/40	USD	950		$	1,202,310
Indianapolis Local Public Improvement Bond Bank, RB, Build America Bonds, 6.12%, 1/15/40		1,260			1,572,190
Metropolitan Transportation Authority, RB, Build America Bonds, 7.34%, 11/15/39		670			963,628
New York City Municipal Water Finance Authority, RB: Build America Bonds, 5.72%, 6/15/42		690			877,659
Second General Resolution, Series EE, 5.38%, 6/15/43		385			436,725
Second General Resolution, Series EE, 5.50%, 6/15/43		465			535,610
New York State Dormitory Authority, RB, Build America Bonds:
5.63%, 3/15/39		550			656,178
5.60%, 3/15/40		950			1,155,400
Port Authority of New York & New Jersey, RB, Consolidated, 159th Series, 6.04%, 12/01/29		395			490,385
University of California, RB, Build America Bonds, 5.95%, 5/15/45		440			523,274
Total Taxable Municipal Bonds — 2.2%					8,413,359
US Government Sponsored Agency Securities
Agency Obligations — 3.9%
Fannie Mae (d):
6.04%, 10/09/19 (k)		7,305			5,683,706
5.63%, 7/15/37		825			1,134,690
Federal Home Loan Bank (d):
5.25%, 12/09/22		700			879,978
5.37%, 9/09/24		1,100			1,360,585
Federal Housing Administration, Merrill Projects, Series 42, 7.43%, 9/01/22		38			36,884
Resolution Funding Corp., 8.43%, 4/15/30 (k)		6,055			3,337,032
Tennessee Valley Authority, 5.25%, 9/15/39 (d)		2,405			3,010,456
					15,443,331
Collateralized Mortgage Obligations — 0.6%
Fannie Mae Mortgage-Backed Securities:
Series 1991-46, Class S, 2,461.75%, 5/25/21 (b)		—	(i)		2,537
Series 1991-87, Class S, 26.02%, 8/25/21 (b)		21			33,475
Series 2005-5, Class PK, 5.00%, 12/25/34		752			822,004
Series G-7, Class S, 1,116.37%, 3/25/21 (b)		—	(i)		1,903
Series G-12, Class S, 1,146.44%, 5/25/21 (b)		—	(i)		4,382
Series G-17, Class S, 1,055.17%, 6/25/21 (b)		—	(i)		2,305
Series G-33, Class PV, 1,078.42%, 10/25/21		—	(i)		2,351
Series G-49, Class S, 1,008.80%, 12/25/21 (b)		—	(i)		790
Freddie Mac Mortgage-Backed Securities:
Series 19, Class R, 16,195.38%, 3/15/20 (b)		—	(i)		493
Series 75, Class R, 9.50%, 1/15/21		—	(i)		1
Series 75, Class RS, 27.16%, 1/15/21 (b)		—	(i)		1
Series 173, Class R, 9.00%, 11/15/21		5			5
Series 173, Class RS, 9.20%, 11/15/21 (b)		—	(i)		6
Series 192, Class U, 1,009.03%, 2/15/22 (b)		—	(i)		—
Series 1057, Class J, 1,008.00%, 3/15/21		—	(i)		1,082
Series K013, Class A2, 3.97%, 1/25/21 (b)		930			1,024,236
Series K706, Class X1, 1.60%, 10/25/18 (b)		2,620			227,971
FREMF Mortgage Trust (a)(b):
Series 2012-K706, Class B, 4.02%, 11/25/44		145			141,595
Series 2012-K706, Class C, 4.02%, 11/25/44		170			149,774
					2,414,911

US Government Sponsored Agency Securities	Par (000)			Value
Interest Only Collateralized Mortgage Obligations — 0.1%
Fannie Mae Mortgage-Backed Securities:
Series 7, Class 2, 8.50%, 4/25/17	USD	2		$	292
Series 89, Class 2, 8.00%, 10/01/18		3			416
Series 94, Class 2, 9.50%, 8/01/21		1			253
Series 1990-123, Class M, 1,009.50%, 10/25/20		—	(i)		256
Series 1990-136, Class S, 19.83%, 11/25/20 (b)		5			7,540
Series 1991-99, Class L, 930.00%, 8/25/21		—	(i)		1,082
Series 1991-139, Class PT, 648.35%, 10/25/21		—	(i)		1,865
Series 1997-50, Class SI, 1.20%, 4/25/23 (b)		159			5,812
Series G-10, Class S, 1,080.00%, 5/25/21 (b)		—	(i)		6,238
Series G92-5, Class H, 9.00%, 1/25/22		29			4,868
Freddie Mac Mortgage-Backed Securities:
Series 176, Class M, 1,010.00%, 7/15/21		—	(i)		345
Series 200, Class R, 196,031.73%, 12/15/22 (b)		—	(i)		6
Series 1043, Class H, 43.88%, 2/15/21 (b)		4			8,049
Series 1054, Class I, 859.64%, 3/15/21 (b)		—	(i)		635
Series 1056, Class KD, 1,084.50%, 3/15/21		—	(i)		737
Series 1148, Class E, 1,167.37%, 10/15/21 (b)		—	(i)		1,618
Series 1254, Class Z, 8.50%, 4/15/22		56			12,298
Series 2611, Class QI, 5.50%, 9/15/32		1,798			213,585
					265,895
Mortgage-Backed Securities — 2.9%
Fannie Mae Mortgage-Backed Securities:
3.50%, 3/15/42 (l)		900			930,094
4.00%, 3/15/27 (l)		4,000			4,235,000
5.00%, 3/15/42 (l)		5,100			5,506,406
5.50%, 12/01/13 – 3/15/27 (l)		234			251,908
6.00%, 3/01/16 – 7/01/17		201			216,937
Freddie Mac Mortgage-Backed Securities, 4.50%, 3/15/42 (l)		100			106,203
Ginnie Mae Mortgage-Backed Securities, 8.00%, 4/15/24 – 6/15/25		19			20,256
					11,266,804
Principal Only Collateralized Mortgage Obligations — 0.0%
Fannie Mae Mortgage-Backed Securities:
Series 203, Class 1, 2/01/23		9			7,834
Series 228, Class 1, 6/01/23		6			5,530
Series 1993-51, Class E, 2/25/23		28			25,880
Series 1993-70, Class A, 5/25/23		5			4,217
Freddie Mac Mortgage-Backed Securities, Series 1739, Class B, 2/15/24		9			9,444
					52,905
Total US Government Sponsored Agency Securities — 7.5%					29,443,846
US Treasury Obligations
US Treasury Bonds:
8.13%, 8/15/21 (d)		1,550			2,407,465
8.00%, 11/15/21 (d)		7,065			10,955,166
6.25%, 8/15/23 (d)		4,990			7,081,903
3.50%, 2/15/39 (d)		2,865			3,117,925
4.25%, 5/15/39 (d)		2,770			3,413,593
4.38%, 5/15/40 (d)		8,225			10,344,220
4.75%, 2/15/41 (d)		1,621			2,162,009
4.38%, 5/15/41 (d)		805			1,013,797
3.13%, 11/15/41 (d)		30,800			31,055,055
3.13%, 2/15/42 (d)		5,810			5,853,575

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012	77

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

US Treasury Obligations	Par (000)		Value
US Treasury Inflation Indexed Bonds, 2.13%, 2/15/41 (d)	USD	3,834	$	5,299,375
US Treasury Notes:
0.25%, 1/31/14 (d)		1,425		1,423,720
0.25%, 2/15/15 (d)		8,110		8,069,450
2.50%, 4/30/15 (d)		1,035		1,100,496
0.88%, 1/31/17 (d)		7,600		7,607,129
2.25%, 7/31/18 (d)		2,495		2,649,573
2.63%, 8/15/20 (d)		1,105		1,186,580
2.00%, 2/15/22 (d)		27,400		27,455,649
Total US Treasury Obligations — 33.9%				132,196,680
Warrants (m)	Shares
Media — 0.0%
Cumulus Media, Inc. (Expires 3/26/19)		14,710		106,253
Software — 0.0%
Bankruptcy Management Solutions, Inc. (Expires 9/29/17)		101		—
Total Warrants — 0.0%				106,253
Total Long-Term Investments (Cost — $526,858,798) — 142.0%				554,155,149
Short-Term Securities
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.11% (n)(o)		1,301,628		1,301,628
Total Short-Term Securities (Cost — $1,301,628) — 0.3%				1,301,628
Options Purchased	Contracts
Exchange-Traded Put Options — 0.0%
Eurodollar 1-Year Mid-Curve Options, Strike Price USD 99.00, Expires 3/16/12		221		1,381
		Notional Amount (000)
Over-the-Counter Interest Rate Call Swaptions — 0.0%
Receive a fixed rate of 2.65% and pay a floating rate based on 3-month LIBOR, Expires 5/01/12, Broker Bank of America NA	USD	3,600		68,975
Over-the-Counter Put Options — 0.0%
EUR Put Option, Strike Price USD 1.30, Expires 3/21/12, Broker Citibank NA		8,810		26,926
Over-the-Counter Interest Rate Put Swaptions — 0.0%
Pay a fixed rate of 0.65% and receive a floating rate based on 3-month LIBOR, Expires 7/05/12, Broker Morgan Stanley & Co., Inc.		60,300		29,041

Options Purchased		Notional Amount (000)			Value
Over-the-Counter Interest Rate Put Swaptions (concluded)
Pay a fixed rate of 3.50% and receive a floating rate based on a 6-month EURIBOR, Expires 11/08/12, Broker Citibank NA	EUR	4,000		$	42,282
					71,323
Total Options Purchased (Cost — $693,661) — 0.0%					168,605
Total Investments Before TBA Sale Commitments and Options Written (Cost — $528,854,087) — 142.3%					555,625,382
TBA Sale Commitments (l)	Par (000)
Fannie Mae Mortgage-Backed Securities:
3.50%, 3/15/42	USD	900			(930,094	)
4.00%, 3/15/27		4,000			(4,235,000	)
5.00%, 3/15/42		5,100			(5,506,406	)
5.50%, 3/15/27		100			(108,781	)
Freddie Mac Mortgage-Backed Securities, 4.50%, 3/14/42		100			(106,203	)
Total TBA Sale Commitments (Proceeds — $10,884,848) — (2.8)%					(10,886,484	)
		Notional
		Amount
Options Written		(000	)
Over-the-Counter Interest Rate Call Swaptions — (0.3)%
Pay a fixed rate of 2.45% and receive a floating rate based on 3-month LIBOR, Expires 02/22/13 Broker Citibank NA		25,000			(963,423	)
Pay a fixed rate of 2.60% and receive a floating rate based on 3-month LIBOR, Expires 12/16/13, Broker JPMorgan Chase & Co.		1,500			(68,340	)
Pay a fixed rate of 2.09% and receive a floating rate based on 3-month LIBOR, Expires 01/03/14, Broker Deutsche Bank AG		4,200			(107,326	)
Pay a fixed rate of 1.97% and receive a floating rate based on 3-month LIBOR, Expires 01/27/14, Broker Citibank NA		2,400			(51,669	)
					(1,190,758	)
Over-the-Counter Put Options — (0.0)%
EUR Put Option, Strike Price USD 1.25, Expires 3/21/12, Broker Citibank NA		8,810			(1,162	)
Over-the-Counter Interest Rate Put Swaptions — (0.7)%
Receive a fixed rate of 1.50% and pay a floating rate based on 3-month LIBOR, Expires 05/21/12, Broker JPMorgan Chase & Co.		125,400			(281,260	)
Receive a fixed rate of 1.55% and pay a floating rate based on 3-month LIBOR, Expires 07/30/12, Broker Citibank NA		200,000			(925,440	)
Receive a fixed rate of 1.70% and pay a floating rate based on 3-month LIBOR, Expires 08/10/12, Broker Bank of America NA		3,900			(14,293	)

See Notes to Financial Statements.
78	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012

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 Interest Rate Put Swaptions (concluded)
Receive a fixed rate of 1.75% and pay a floating rate based on 3-month LIBOR, Expires 08/23/12, Broker RBC Capital Markets	USD	142,500	$	(531,682	)
Receive a fixed rate of 2.90% and pay a floating rate based on 3-month LIBOR, Expires 01/09/13, Broker Citibank NA		6,000		(89,089	)
Receive a fixed rate of 2.45% and pay a floating rate based on 3-month LIBOR, Expires 02/22/13, Broker Citibank NA		25,000		(766,157	)
Receive a fixed rate of 2.60% and pay a floating rate based on 3-month LIBOR, Expires 12/16/13, Broker JPMorgan Chase & Co.		1,500		(69,139	)
Receive a fixed rate of 2.09% and pay a floating rate based on 3-month LIBOR, Expires 01/03/14, Broker Deutsche Bank AG		4,200		(79,290	)
Receive a fixed rate of 1.97% and pay a floating rate based on 3-month LIBOR, Expires 01/27/14, Broker Citibank NA		2,400		(53,147	)
				(2,809,497	)
Total Options Written (Premiums Received — $4,237,733) — (1.0)%				(4,001,417	)
Total Investments, Net of TBA Sale Commitments and Options Written — 138.5%				540,737,481
Liabilities in Excess of Other Assets — (38.5)%				(150,305,611	)
Net Assets — 100.0%			$	390,431,870

(a)	Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(b)	Variable rate security. Rate shown is as of report date.
(c)	Non-income producing security.
(d)	All or a portion of security has been pledged as collateral in connection with open reverse repurchase agreements.
(e)	Issuer filed for bankruptcy and/or is in default of interest payments.
(f)	When-issued security. Unsettled when-issued transactions were as follows:

Counterparty	Value		Unrealized Appreciation (Depreciation)
JPMorgan Chase & Co.	$	589,263	$	(673	)
Bank of America NA	$	782,513	$	9,350
Morgan Stanley & Co., Inc.	$	1,178,254	$	34,254

(g)	Represents a payment-in-kind security which may pay interest/dividends in additional par/shares.
(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 is as of report date.
(i)	Amount is less than $500.
(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)	Represents or includes a to-be-announced (“TBA”) transaction. Unsettled TBA transactions as of February 29, 2012 were as follows:

Counterparty	Value			Unrealized Appreciation (Depreciation)
BNP Paribas SA	$	310,031		$	(141	)
Credit Suisse Securities (USA) LLC	$	5,506,406		$	6,375
Deutsche Bank AG		—		$	(227	)
Goldman Sachs & Co.	$	4,235,000		$	535
JPMorgan & Co.	$	(5,816,438	)	$	(1,477	)
RBS Greenwich Capital	$	(4,235,000	)	$	(625	)

(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 1940 Act, as amended, were as follows:

Affiliate	Shares Held at August 31, 2011		Net Activity			Shares Held at February 29, 2012		Income
BlackRock Liquidity Funds, TempFund, Institutional Class		3,706,293		(2,404,665	)		1,301,628	$	2,775

(o)	Represents the current yield as of report date.
•	Reverse repurchase agreements outstanding as of February 29, 2012 were as follows:

Counterparty	Interest Rate		Trade Date	Maturity Date	Net Closing Amount		Face Amount
Credit Suisse Securities (USA) LLC	0.10	%	11/29/11	Open	$	3,055,691	$	3,054,350
Deutsche Bank AG	0.05	%	12/05/11	Open		928,836		928,725
Barclays Capital, Inc.	0.08	%	1/11/12	Open		3,466,348		3,465,963
Barclays Capital, Inc.	0.10	%	1/11/12	Open		5,369,921		5,369,175
Deutsche Bank AG	0.09	%	1/11/12	Open		1,110,176		1,110,037
Deutsche Bank AG	0.10	%	1/11/12	Open		1,402,695		1,402,500
Deutsche Bank AG	(0.50	)%	1/17/12	Open		340,846		341,055
BNP Paribas Securities Corp.	0.14	%	1/24/12	Open		1,190,809		1,190,637
BofA Merrill Lynch	0.11	%	1/25/12	Open		10,996,116		10,994,906
BofA Merrill Lynch	0.12	%	1/25/12	Open		10,288,315		10,287,081
Deutsche Bank AG	(12.00	)%	1/25/12	Open		747,323		756,400
BNP Paribas Securities Corp.	0.11	%	1/30/12	Open		994,197		994,087
UBS Securities LLC	(1.25	)%	2/02/12	Open		440,271		440,700
BofA Merrill Lynch	0.12	%	2/07/12	Open		10,333,448		10,332,656
BNP Paribas Securities Corp.	0.12	%	2/07/12	Open		2,657,379		2,657,175
BofA Merrill Lynch	0.16	%	2/10/12	Open		1,425,127		1,425,000
BNP Paribas Securities Corp.	0.20	%	2/10/12	Open		5,282,987		5,282,400
Deutsche Bank AG	0.25	%	2/13/12	3/12/12		1,924,454		1,924,080
BofA Merrill Lynch	0.17	%	2/16/12	Open		889,059		889,000
BofA Merrill Lynch	0.11	%	2/16/12	Open		2,421,979		2,421,875
BNP Paribas Securities Corp.	0.15	%	2/16/12	Open		1,021,403		1,021,344
BNP Paribas Securities Corp.	0.16	%	2/16/12	Open		2,160,117		2,159,983
UBS Securities LLC	0.35	%	2/28/12	Open		1,988,539		1,988,500

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012	79

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

Reverse repurchase agreements outstanding as of February 29, 2012 were as follows (concluded):

Counterparty	Interest Rate			Trade Date		Maturity Date	Net Closing Amount		Face Amount
BNP Paribas Securities Corp.		0.32	%		2/28/12	Open	$	1,612,029	$	1,612,000
BofA Merrill Lynch		0.12	%		2/29/12	3/01/12		8,079,614		8,079,588
BNP Paribas Securities Corp.		0.18	%		2/29/12	3/01/12		15,578,003		15,577,925
BNP Paribas Securities Corp.		0.19	%		2/29/12	3/01/12		31,570,167		31,570,000
BNP Paribas Securities Corp.		0.09	%		2/29/12	3/01/12		7,628,519		7,628,500
BNP Paribas Securities Corp.		0.32	%		2/29/12	Open		3,502,031		3,502,000
Credit Suisse Securities (USA) LLC		(0.06	)%		2/29/12	3/01/12		27,571,204		27,571,250
Total							$	165,977,603	$	165,978,892

• Financial futures contracts purchased as of February 29, 2012 were as follows:

Contracts	Issue	Exchange	Expiration		Notional Value		Unrealized Appreciation
228	30-Year US Treasury Bond	Chicago Board of Trade	June 2012	$	32,297,625	$	105,637

• Financial futures contracts sold as of February 29, 2012 were as follows:

Contracts	Issue	Exchange	Expiration	Notional Value		Unrealized Appreciation (Depreciation)
10	Euro-Bund	Eurex	March 2012	EUR	1,398,900	$	(1,613	)
313	Euro-Schatz	Eurex	March 2012	EUR	34,561,460		(23,165	)
82	2-Year US Treasury Note	Chicago Board of Trade	June 2012	USD	18,059,219		4,969
98	5-Year US Treasury Note	Chicago Board of Trade	June 2012	USD	12,070,844		8,115
186	10-Year US Treasury Note	Chicago Board of Trade	June 2012	USD	24,357,281		71,480
44	90-Day Euro-Dollar	Chicago Mercantile	March 2015	USD	10,853,700		(1,507	)
44	90-Day Euro-Dollar	Chicago Mercantile	June 2015	USD	10,835,000		(1,856	)
44	90-Day Euro-Dollar	Chicago Mercantile	September 2015	USD	10,817,400		(3,007	)
44	90-Day Euro-Dollar	Chicago Mercantile	December 2015	USD	10,799,250		(4,094	)
Total						$	49,322

• Foreign currency exchange contracts purchased as of February 29, 2012 were as follows:

Currency Purchased		Currency Sold		Counterparty	Settlement Date	Unrealized Appreciation (Depreciation)
USD	2,284,594	EUR	1,699,000	Deutsche Bank AG	3/01/12	$	21,018
GBP	824,000	USD	1,308,504	UBS AG	3/02/12		2,398
EUR	863,000	USD	1,142,931	UBS AG	3/05/12		6,857
GBP	693,000	USD	1,103,178	Deutsche Bank AG	3/05/12		(684)

Foreign currency exchange contracts purchased as of February 29, 2012 were as follows (concluded):

Currency Purchased		Currency Sold		Counterparty	Settlement Date	Unrealized Appreciation (Depreciation)
USD	1,137,468	EUR	863,000	Citibank NA	3/05/12	$	(12,320	)
EUR	4,400,000	CHF	5,302,792	UBS AG	3/06/12		584
EUR	1,705,000	USD	2,227,668	Citibank NA	3/07/12		43,947
EUR	1,475,000	USD	1,926,672	Royal Bank of Scotland Plc	3/07/12		38,508
USD	1,131,750	EUR	863,000	Citibank NA	3/07/12		(18,046	)
AUD	1,230,000	USD	1,319,396	UBS AG	3/13/12		(1,927	)
NZD	1,720,000	USD	1,429,019	Royal Bank of Scotland Plc	3/13/12		5,153
USD	1,325,067	AUD	1,230,000	HSBC Bank USA	3/13/12		7,597
USD	1,435,529	NZD	1,720,000	Morgan Stanley & Co., Inc.	3/13/12		1,357
USD	1,623,017	EUR	1,225,000	Citibank NA	3/14/12		(9,126	)
JPY	78,276,510	USD	975,000	Citibank NA	3/16/12		(11,960	)
JPY	74,259,462	USD	925,000	Deutsche Bank AG	3/16/12		(11,382	)
USD	1,950,000	JPY	152,438,520	BNP Paribas SA	3/16/12		74,541
USD	1,102,885	GBP	693,000	Deutsche	4/11/12		704
				Bank AG
USD	1,030,889	GBP	672,500	UBS AG	4/11/12		(38,687	)
USD	1,308,135	GBP	824,000	UBS AG	4/11/12		(2,394	)
PHP	53,125,804	USD	1,250,000	Royal Bank of Scotland Plc	4/17/12		(11,716	)
SGD	1,551,750	USD	1,250,000	HSBC Bank USA	4/17/12		(9,206	)
USD	1,250,000	PHP	53,387,500	Morgan Stanley & Co., Inc.	4/17/12		5,616
USD	1,250,000	SGD	1,577,488	Standard Chartered Bank	4/17/12		(11,374	)
EUR	1,699,000	USD	2,285,031	Deutsche Bank AG	4/18/12		(21,010	)
USD	6,231,110	EUR	4,851,000	Citibank NA	4/18/12		(233,143	)
USD	2,068,312	EUR	1,581,000	Citibank NA	4/18/12		(38,467	)
USD	367,592	EUR	280,000	Citibank NA	4/18/12		(5,525	)
USD	189,234	EUR	143,000	Citibank NA	4/18/12		(1,322	)
USD	2,991,625	EUR	2,275,000	Deutsche Bank AG	4/18/12		(39,951	)
Total						$	(269,960	)

• Credit default swaps on single-name issues — buy protection outstanding as of February 29, 2012 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	$	188,478
Radian Group, Inc.	5.00	%	Citibank NA	6/20/15	$	1,400		303,681
The New York Times Co.	1.00	%	Barclays Capital, Inc.	12/20/16	$	1,800		385
Sara Lee Corp.	1.00	%	JPMorgan Chase & Co.	3/20/17	$	415		(644	)
Total							$	491,900

See Notes to Financial Statements.

80
SEMI-ANNUAL REPORT
FEBRUARY 29, 2012

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

• Credit default swaps on single-name issues — sold protection outstanding as of February 29, 2012 were as follows:

Issuer	Receive Fixed Rate			Counterparty		Expiration Date		Issuer Credit Rating1	Notional Amount (000)2		Unrealized Appreciation (Depreciation)
Aviva USA Corp.		1.00	%		Deutsche Bank AG		5/25/12	Not Rated	$	1,150	$	(619	)
Assured Guaranty Corp.		5.00	%		Citibank NA		12/20/14	AA–	$	3		336
Assured Guaranty Corp.		5.00	%		Citibank NA		3/20/15	AA–	$	10		1,330
MetLife, Inc.		1.00	%		Credit Suisse Securities (USA) LLC		9/20/16	A–	$	545		21,042
MetLife, Inc.		1.00	%		Deutsche Bank AG		9/20/16	A–	$	730		22,969
MetLife, Inc.		1.00	%		Goldman Sachs & Co.		9/20/16	A–	$	500		14,705
MetLife, Inc.		1.00	%		Morgan Stanley & Co., Inc.		9/20/16	A–	$	910		27,286
MetLife, Inc.		1.00	%		Morgan Stanley & Co., Inc.		9/20/16	A–	$	275		6,017
Assured Guaranty Corp.		5.00	%		Citibank NA		12/20/16	AA–	$	146		25,075
MetLife, Inc.		1.00	%		Citibank NA		12/20/16	A–	$	298		6,143
MetLife, Inc.		1.00	%		Citibank NA		12/20/16	A–	$	290		7,721
Total											$	132,005

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

• Credit default swaps on traded indexes — buy protection outstanding as of February 29, 2012 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 & Co., Inc.	12/20/15	$	990	$	(202	)
Dow Jones CDX North America Investment Grade Index Series 16	1.00	%	Credit Suisse Securities (USA) LLC	6/20/16	$	385		(5,449	)
Dow Jones CDX North America Investment Grade Index Series 16	1.00	%	JPMorgan Chase & Co.	6/20/16	$	22		(262	)
Dow Jones CDX North America Investment Grade Index Series 16	1.00	%	Morgan Stanley & Co., Inc.	6/20/16	$	1,488		(29,000	)
Total							$	(34,913	)

• Credit default swaps on traded indexes — sold protection outstanding as of February 29, 2012 were as follows:

Index	Receive Fixed Rate			Counterparty	Expiration Date	Credit Rating3		Notional Amount (000)4		Unrealized Appreciation
Markit CMBX North America AAA Index Series 3		0.08	%	Morgan Stanley & Co., Inc.	12/13/49	AA	$	530	$	29,222
Markit CMBX North America AAA Index Series 4		0.35	%	Morgan Stanley & Co., Inc.	2/17/51	A–	$	530		29,114
Total									$	58,336

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

• Interest rate swaps outstanding as of February 29, 2012 were as follows:

Fixed Rate		Floating Rate	Counterparty	Expiration Date		Notional Amount (000)		Unrealized Appreciation (Depreciation)
1.24	%5	6-month EURIBOR	Citibank NA	12/13/13	EUR	40,115	$	205,417
3.27	%6	3-month LIBOR	Deutsche Bank AG	5/16/21	USD	910		(102,530	)
2.45	%5	3-month LIBOR	Deutsche Bank AG	10/27/21	USD	1,900		72,786
3.02	%5	3-month LIBOR	Goldman Sachs & Co.	1/17/22	USD	1,000		(2,991	)
1.97	%6	3-month LIBOR	Deutsche Bank AG	2/02/22	USD	2,200		17,832
2.01	%6	3-month LIBOR	Credit Suisse Securities (USA) LLC	2/08/22	USD	600		2,810
2.14	%6	3-month LIBOR	JPMorgan Chase & Co.	2/24/22	USD	25,000		(188,488	)
2.58	%6	6-month EURIBOR	Deutsche Bank AG	11/11/41	EUR	350		(5,803	)
2.68	%6	6-month EURIBOR	Deutsche Bank AG	11/18/41	EUR	750		(33,737	)
2.70	%6	3-month LIBOR	Deutsche Bank AG	1/11/42	USD	1,000		16,294
2.85	%6	3-month LIBOR	Bank of America NA	2/09/42	USD	1,100		(16,737	)
2.86	%6	3-month LIBOR	JPMorgan Chase & Co.	2/24/42	USD	10,000		(164,984	)
Total							$	(200,131	)

5	Trust pays a floating interest rate and receives fixed rate.
6	Trust pays a fixed interest rate and receives floating rate.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 29, 2012 81

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

• Total return swaps outstanding as of February 29, 2012 were as follows:

Reference Entity	Trust Pays/ Receives the Total Return of the Reference Entity	Fixed Rate		Counterparty	Expiration Date	Notional Amount (000)		Unrealized Depreciation
Change in Return of the Consumer Price Index for All Urban Consumers	Pays	2.18	%1	Bank of	10/06/21	$	1,885	$	(77,489	)
				America NA

¹ Net payment made at termination.

•	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. These definitions 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 derivative financial instruments. These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:
	•	Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities
	•	Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
	•	Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)
	Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and does not necessarily correspond to the Trust’s perceived risk of investing in those securities. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following tables summarize the inputs used as of February 29, 2012 in determining the fair valuation of the Trust’s investments and derivative financial instruments:

Valuation Inputs	Level 1			Level 2			Level 3			Total
Assets:
Investments:
Long-Term Investments:
Asset-Backed Securities		—		$	17,058,946		$	5,643,507		$	22,702,453
Common Stocks		—			—			3			3
Corporate Bonds		—			282,489,423			1,961,750			284,451,173
Foreign Agency Obligations		—			12,366,973			—			12,366,973
Non-Agency Mortgage-Backed Securities		—			56,193,118			977,336			57,170,454
Preferred Securities	$	627,099			6,676,856			—			7,303,955
Taxable Municipal Bonds		—			8,413,359			—			8,413,359
US Government Sponsored Agency Securities		—			29,406,450			37,396			29,443,846
US Treasury Obligations		—			132,196,680			—			132,196,680
Warrants		—			106,253			—			106,253
Short-Term Securities		1,301,628			—			—			1,301,628
Liabilities:
TBA Sale Commitments		—			(10,886,484	)		—			(10,886,484	)
Total	$	1,928,727		$	534,021,574		$	8,619,992		$	544,570,293
Valuation Inputs	Level 1			Level 2			Level 3			Total
Derivative Financial Instruments2
Assets:
Credit contracts		—		$	683,504			—		$	683,504
Foreign currency exchange contracts		—			235,206			—			235,206
Interest rate contracts	$	191,582			455,437			—			647,019
Liabilities:
Credit contracts		—			(35,557	)	$	(619	)		(36,176	)
Foreign currency exchange contracts		—			(479,402	)		—			(479,402	)
Interest rate contracts		(35,242	)		(4,515,525	)		—			(4,550,767	)
Other contracts		—			(77,489	)		—			(77,489	)
Total	$	156,340		$	(3,733,826	)	$	(619	)	$	(3,578,105	)

² 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.

See Notes to Financial Statements.
82	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012

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

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

	Asset-Backed Securities			Common Stocks			Corporate Bonds			Non-Agency Mortgage-Backed Securities			Other Interests			Preferred Securities			US Government Sponsored Agency Securities			Warrants			Total
Assets:
Balance, as of August 31, 2011	$	6,157,600			—		$	2,004,500		$	1,957,342		$	190		$	109,421		$	80,827		$	83,088		$	10,392,968
Accrued discounts/premiums		(177,723	)		—			200			347			—			—			(85	)		—			(177,261	)
Net realized gain (loss)		93			—			18,672			62,551			—			—			(1,460	)		—			79,856
Net change in unrealized appreciation/depreciation1		127,598		$	(1,782	)		(6,622	)		8,724			(190	)		(109,421	)		249			(1	)		18,555
Purchases		1,369,968			—			—			974,152			—			—			—			—			2,344,120
Sales		(514,765	)		—			(55,000	)		(1,673,110	)		—			—			(42,135	)		—			(2,285,010	)
Transfers in2		—			1,785			—			—			—			—			—			—			1,785
Transfers out2		(1,319,264	)		—			—			(352,670	)		—			—			—			(83,087	)		(1,755,021	)
Balance, as of February 29, 2012	$	5,643,507		$	3		$	1,961,750		$	977,336			—			—		$	37,396			—		$	8,619,992

1	Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations. The change in unrealized appreciation/depreciation on investments still held at February 29, 2012 was $139,625.
2	The Trust’s policy is to recognize transfers in and transfers out as of the beginning of the period of the event or the change in circumstances that caused the event.

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

	Credit Contracts
Liabilities:
Balance, as of August 31, 2011	$	(941	)
Accrued discounts/premiums		(3,710	)
Net realized gain (loss)		—
Net change in unrealized appreciation/depreciation3		322
Purchases		—
Issuances4		—
Sales		—
Settlements5		3,710
Transfers in6		—
Transfers out6		—
Balance, as of February 29, 2012	$	(619	)

3	Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations. The change in unrealized appreciation/depreciation on derivative financial instruments still held at February 29, 2012 was $322.
4	Issuances represent upfront cash received on certain derivative financial instruments.
5	Settlements represent periodic contractual cash flows and/or cash flows to terminate certain derivative financial instruments.
6	The Trust’s policy is to recognize transfers in and transfers out as of the beginning of the period of the event or the change in circumstances that caused the transfer.

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

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012	83

Schedule of Investments February 29, 2012 (Unaudited)	BlackRock Income Trust, Inc. (BKT)
	(Percentages shown are based on Net Assets)

Asset-Backed Securities	Par (000)		Value
Asset-Backed Securities — 1.9%
First Franklin Mortgage Loan Asset-Backed Certificates, Series 2005-FF2, Class M2, 0.68%, 3/25/35 (a)	$	5,890	$	5,506,437
Freddie Mac Mortgage-Backed Securities, Series T-11, Class A9, 2.64%, 1/25/28 (a)		2,149		2,036,831
Securitized Asset-Backed Receivables LLC Trust, Series 2005-OP2, Class M1, 0.67%, 10/25/35 (a)		1,875		1,117,823
Small Business Administration Participation Certificates, Class 1:
Series 1996-20E, 7.60%, 5/01/16		136		146,617
Series 1996-20G, 7.70%, 7/01/16		173		187,225
Series 1996-20H, 7.25%, 8/01/16		211		227,952
Series 1996-20K, 6.95%, 11/01/16		421		455,060
Series 1997-20C, 7.15%, 3/01/17		161		175,684
				9,853,629
Interest Only Asset-Backed Securities — 0.2%
Small Business Administration, Series 1, 2.00%, 4/01/15		1,522		13,314
Sterling Bank Trust, Series 2004-2, Class Note, 2.08%, 3/30/30 (b)		4,561		353,497
Sterling Coofs Trust, Series 1, 2.36%, 4/15/29		7,913		613,290
				980,101
Total Asset-Backed Securities — 2.1%				10,833,730
Non-Agency Mortgage-Backed Securities
Collateralized Mortgage Obligations — 1.5%
Collateralized Mortgage Obligation Trust, Series 40, Class R, 0.58%, 4/01/18		104		104
Countrywide Alternative Loan Trust, Series 2005-28CB, Class 1A5, 5.50%, 8/25/35		398		395,261
Deutsche ALT-A Securities, Inc. Alternate Loan Trust, Series 2006-AR5, Class 22A, 5.50%, 10/25/21		948		921,104
Homebanc Mortgage Trust, Series 2005-4, Class A1, 0.51%, 10/25/35 (a)		3,026		2,036,599
JPMorgan Mortgage Trust, Series 2006-A7, Class 2A2, 2.73%, 1/25/37 (a)		377		256,518
Kidder Peabody Acceptance Corp., Series 1993-1, Class A6, 16.17%, 8/25/23 (a)		51		58,521
Residential Funding Securities LLC, Series 2003-RM2, Class AI5, 8.50%, 5/25/33		2,604		2,785,660
Structured Adjustable Rate Mortgage Loan Trust, Series 2004-11, Class A, 2.69%, 8/25/34 (a)		1,391		1,290,496
				7,744,263
Commercial Mortgage-Backed Securities — 0.7%
Credit Suisse Mortgage Capital Certificates, Series 2007-C2, Class A3, 5.54%, 1/15/49 (a)		2,420		2,634,814
First Union-Lehman Brothers Commercial Mortgage, Series 1997-C2, Class D, 7.12%, 11/18/29		726		731,710
				3,366,524
Interest Only Collateralized Mortgage Obligations — 1.0%
Bank of America Mortgage Securities Inc., Series 2003-3, Class 1A, 0.28%, 5/25/33		70,927		456,130
CitiMortgage Alternative Loan Trust, Series 2007-A5, Class 1A7, 6.00%, 5/25/37 (b)		949		190,958
Collateralized Mortgage Obligation Trust, Series 42, Class R, 6.00%, 10/01/14		1		64
First Boston Mortgage Securities Corp., Series C, 10.97%, 4/25/17		20		3,325
Non-Agency Mortgage-Backed Securities	Par (000)		Value
Interest Only Collateralized Mortgage Obligations (concluded)
GSMPS Mortgage Loan Trust, Series 1998-5, 0.15%, 6/19/27 (a)(b)	$	4,445	$	99,206
IndyMac INDX Mortgage Loan Trust, Series 2006-AR33, Class 4AX, 0.17%, 1/25/37		98,790		493,949
MASTR Adjustable Rate Mortgages Trust, Series 2004-3, Class 3AX, 0.48%, 4/25/34 (a)		11,705		129,812
Morgan Stanley Mortgage Loan Trust, Series 2004-3, Class 1AX, 5.00%, 5/25/19		574		56,215
Sequoia Mortgage Trust, Series 2005-2, Class XA, 1.07%, 3/20/35 (a)		38,308		622,507
Structured Adjustable Rate Mortgage Loan Trust, Series 2006-7, Class 3AS, 2.51%, 8/25/36 (a)		26,489		2,744,010
Vendee Mortgage Trust, Series 1999-2, Class 1, 0.04%, 5/15/29 (a)		53,927		93,574
				4,889,750
Interest Only Commercial Mortgage-Backed Securities — 0.0%
CS First Boston Mortgage Securities Corp., Series 1997-C1, Class AX, 1.24%, 6/20/29 (a)		2,689		66,280
Morgan Stanley Capital I, Series 1997-HF1, Class X, 2.19%, 7/15/29 (a)(b)		3		—
				66,280
Principal Only Collateralized Mortgage Obligations — 0.6%
Countrywide Home Loan Mortgage Pass-Through Trust:
Series 2003-26, 8/25/33		1,540		1,200,127
Series 2003-J4, 6/25/33		295		227,282
Series 2003-J5, 7/25/33		425		323,569
Series 2003-J8, 9/25/23		323		268,404
Drexel Burnham Lambert CMO Trust, Class 1:
Series K, 9/23/17		9		8,263
Series V, 9/01/18		28		27,688
MASTR Asset Securitization Trust, Series 2004-3, Class 4A15, 3/25/34		59		59,914
Residential Asset Securitization Trust, Series 2005-A15, Class 1A8, 2/25/36		812		601,257
Structured Mortgage Asset Residential Trust, Series 1993-3C, Class CX, 4/25/24		7		4,935
Washington Mutual Alternative Mortgage Pass-Through Certificates, Series 2005-9, Class CP, 11/25/35		525		399,274
				3,120,713
Total Non-Agency Mortgage-Backed Securities — 3.8%				19,187,530
US Government Sponsored Agency Securities
Agency Obligations — 2.3%
Federal Housing Administration:
General Motors Acceptance Corp. Projects, Series 56, 7.43%, 1/11/22		209		202,760
Merrill Projects, Series 54, 7.43%, 5/15/23		2		1,868
Reilly Projects, Series 41, 8.28%, 3/01/20		220		216,223
USGI Projects, Series 87, 7.43%, 12/01/22		64		62,384
USGI Projects, Series 99, 7.43%, 6/01/21		4,285		4,156,080
USGI Projects, Series 99, 7.43%, 10/01/23		118		114,530
USGI Projects, Series 99, 7.43%, 10/01/23		40		38,764
Resolution Funding Corp., 9.89%, 4/15/30 (c)		13,000		7,164,560
				11,957,169

See Notes to Financial Statements.
84	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012

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

US Government Sponsored Agency Securities	Par (000)			Value
Collateralized Mortgage Obligations — 14.1%
Fannie Mae Mortgage-Backed Securities:
Series 7, Class 2, 8.50%, 4/01/17	$	4		$	626
Series 89, Class 2, 8.00%, 10/01/18		6			893
Series 94, Class 2, 9.50%, 8/01/21		3			543
Series 1991-46, Class S, 1.40%, 5/25/21 (a)		90			5,445
Series 1991-87, Class S, 26.02%, 8/25/21 (a)		45			73,142
Series 1993-199, Class SB, 7.25%, 10/25/23 (a)		648			75,652
Series 1993-247, Class SN, 10.00%, 12/25/23		370			444,292
Series 1997-90, Class M, 6.00%, 1/25/28		5,319			939,915
Series 2003-32, Class VT, 6.00%, 9/25/15		1,869			1,879,408
Series 2003-135, Class PB, 6.00%, 1/25/34		12,264			14,320,925
Series 2004-29, Class HC, 7.50%, 7/25/30		217			218,353
Series 2004-31, Class ZG, 7.50%, 5/25/34		3,292			4,175,113
Series 2005-43, Class IC, 6.00%, 3/25/34		11			414
Series 2005-73, Class DS, 16.92%, 8/25/35		2,817			3,754,142
Series 2010-75, Class PI, 4.50%, 12/25/36		18,189			778,921
Series G-7, Class S, 16.87%, 3/25/21 (a)		—	(d)		4,044
Series G-12, Class S, 0.61%, 5/25/21		360			9,407
Series G-17, Class S, 0.58%, 6/25/21 (a)		233			4,950
Series G-33, Class PV, 1.08%, 10/25/21		258			5,048
Series G-49, Class S, 5.55%, 12/25/21 (a)		—	(d)		1,696
Series G-50, Class G, 1.16%, 12/25/21		14			26
Series G92-5, Class H, 9.00%, 1/25/22 (a)		74			12,517
Series G92-12, Class C, 1.00%, 2/25/22 (a)		221			4,225
Freddie Mac Mortgage-Backed Securities:
Series 19, Class F, 8.50%, 3/15/20		74			80,798
Series 19, Class R, 9.76%, 3/15/20 (a)		7			1,184
Series 40, Class K, 6.50%, 8/17/24		330			387,803
Series 75, Class R, 9.50%, 1/15/21		—	(d)		2
Series 75, Class RS, 27.16%, 1/15/21		—	(d)		2
Series 173, Class R, 9.00%, 11/15/21 (a)(b)		12			12
Series 173, Class RS, 9.20%, 11/15/21		—	(d)		12
Series 192, Class U, 28.43%, 2/15/22		2			61
Series 1043, Class H, 0.02%, 2/15/21		8,061			17,282
Series 1054, Class I, 0.44%, 3/15/21 (a)		65			1,364
Series 1057, Class J, 1.01%, 3/15/21		90			2,322
Series 1160, Class F, 39.10%, 10/15/21		17			32,905
Series 1691, Class B, 0.01%, 3/15/24 (a)		855			769,398
Series 1739, Class B, 0.01%, 2/15/24 (a)		21			21,163
Series 1961, Class H, 6.50%, 5/15/12		—	(d)		9
Series 2218, Class Z, 8.50%, 3/15/30		5,055			5,925,506
Series 2542, Class UC, 6.00%, 12/15/22		7,131			7,818,545
Series 2545, Class NI, 5.50%, 3/15/22		13			4
Series 2611, Class QI, 5.50%, 9/15/32		3,282			389,822
Series 2758, Class KV, 5.50%, 5/15/23		9,171			10,461,494
Series 2861, Class AX, 10.43%, 9/15/34		188			204,883
Series 2927, Class BZ, 5.50%, 2/15/35 (a)		3,047			3,693,804
Series 3744, Class PI, 4.00%, 6/15/39		20,506			3,271,719
Series 3745, Class IN, 4.00%, 1/15/35 (a)		45,716			5,432,246
Series T-8, Class A10, 0.01%, 11/15/28		134			124,989
Ginnie Mae Mortgage-Backed Securities:
Series 1996-5, Class Z, 7.00%, 5/16/26		506			550,825
Series 2001-33, Class PB, 6.50%, 7/20/31		854			878,590
Series 2004-89, Class PE, 6.00%, 10/20/34		3,392			3,696,683
Series 2010-101, Class YT, 2.00%, 8/16/13		55,905			1,291,449
					71,764,573
Federal Deposit Insurance Corporation Guaranteed — 0.8%
Citigroup Funding, Inc., 1.88%, 10/22/12		3,800			3,841,439
US Government Sponsored Agency Securities	Par (000)			Value
Interest Only Collateralized Mortgage Obligations — 2.4%
Fannie Mae Mortgage-Backed Securities:
4.50%, 4/01/41	$	2,833		$	3,020,987
Series 1991-99, Class L, 0.93%, 8/25/21 (a)		101			2,323
Series 1990-123, Class M, 1.01%, 10/25/20 (a)		21			549
Series 1990-136, Class S, 0.02%, 11/25/20 (a)		11,080			16,188
Series 1991-139, Class PT, 0.65%, 10/25/21		222			4,004
Series 1999-W4, 6.50%, 12/25/28		318			65,263
Series 2010-74, Class DI, 5.00%, 12/25/39		53,610			5,670,295
Series 2010-126, Class UI, 5.50%, 10/25/40		20,130			3,346,901
Series G-10, Class S, 0.58%, 5/25/21		498			13,393
Freddie Mac Mortgage-Backed Securities:
Series 176, Class M, 1.01%, 7/15/21		29			738
Series 200, Class R, 98.52%, 12/15/22 (a)		1			13
Series 1056, Class KD, 1.08%, 3/15/21		56			1,582
Series 1148, Class E, 0.59%, 10/15/21 (a)		157			3,474
Series 2559, 0.50%, 8/15/30 (a)		184			2,048
Series 2949, 5.50%, 3/15/35		551			16,246
					12,164,004
Mortgage-Backed Securities — 114.2%
Fannie Mae Mortgage-Backed Securities:
3.50%, 3/12/42 (a)(f)		7,000			7,234,063
4.00%, 1/01/41 – 3/12/42 (f)		28,946			30,492,471
4.50%, 9/01/25 – 5/01/41 (a)(e)(f)(g)		184,804			199,113,616
5.00%, 1/01/23 – 3/12/42 (e)(f)		114,254			123,974,012
5.50%, 3/15/27 – 3/12/42 (f)(g)		131,633			143,767,947
5.97%, 8/01/16		3,036			3,477,631
6.00%, 3/12/42 (a)(f)		21,800			23,980,000
6.50%, 12/01/37 – 10/01/39		42,365			47,806,950
7.50%, 2/01/22		—	(d)		117
9.50%, 1/01/19		3			2,731
Freddie Mac Mortgage-Backed Securities:
2.48%, 1/01/35 (a)		201			202,955
2.55%, 10/01/34 (a)		301			315,637
2.73%, 11/01/17		14			14,556
5.00%, 4/01/22 (g)		926			997,618
9.00%, 9/01/20 (g)		48			54,117
Ginnie Mae Mortgage-Backed Securities:
7.50%, 1/15/23 – 2/15/23		214			232,876
8.00%, 10/15/22 – 1/15/27		70			79,833
9.00%, 4/15/20		8			8,242
					581,755,372
Principal Only Collateralized Mortgage Obligations — 0.2%
Fannie Mae Mortgage-Backed Securities:
Series 203, Class 1, 2/01/23		18			16,818
Series 228, Class 1, 6/01/23		13			11,873
Series 1991-7, Class J, 2/25/21		18			16,789
Series 1993-51, Class E, 2/25/23		61			55,564
Series 1993-70, Class A, 5/25/23		10			9,055
Series 1996-68, Class SC, 1/25/24		304			11,486
Series 1997-50, Class SI, 4/25/23		318			11,623
Series 1999-W4, Class PO, 2/25/29		160			147,625
Series 2002-13, Class PR, 3/25/32		344			320,256
Series G92-60, Class SB, 10/25/22		226			9,992
Series G93-2, Class KB, 1/25/23		153			139,338
Freddie Mac Mortgage-Backed Securities:
Series 1418, Class M, 11/15/22		64			59,304
Series 1571, Class G, 8/15/23		395			374,563
					1,184,286
Total US Government Sponsored Agency Securities — 134.0%					682,666,843

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012	85

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

US Treasury Obligations	Par (000)		Value
US Treasury Bonds:
6.25%, 8/15/23 (e)	$	3,320	$	4,711,807
4.38%, 5/15/40 (e)		36,985		46,514,407
4.38%, 5/15/41		1,220		1,536,437
3.13%, 11/15/41 (e)		21,985		22,167,057
3.13%, 2/15/42 (e)		3,300		3,324,750
US Treasury Notes:
0.88%, 2/28/17 (e)		10,010		10,010,000
2.25%, 7/31/18 (e)		3,375		3,584,091
2.63%, 8/15/20 (g)		1,455		1,562,420
2.00%, 11/15/21 (e)		19,815		19,914,075
2.00%, 2/15/22 (e)		5,700		5,711,577
4.50%, 8/15/39		330		422,710
Total US Treasury Obligations — 23.5%				119,459,331
Total Long-Term Investments (Cost — $806,654,230) — 163.4%				832,147,434
Short-Term Securities
Borrowed Bond Agreements — 3.6%
Barclays Capital, Inc., 0.11%, Open		6,508		6,508,450
BNP Paribas SA:
0.03%, Open		7,316		7,315,594
0.11%, Open		937		937,250
Credit Suisse Securities (USA) LLC, 0.04%, Open		3,774		3,774,412
				18,535,706
	Shares
Money Market Fund — 0.4%
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.11% (h)(i)		2,011,437		2,011,437
Total Short-Term Securities (Cost — $20,547,143) — 4.0%				20,547,143
Options Purchased	Contracts
Exchange-Traded Put Options — 0.0%
Eurodollar 1-Year Mid-Curve Options, Strike Price USD 99.00, Expires 3/16/12		300		1,875
		Notional Amount (000)
Over-the-Counter Interest Rate Call Swaptions — 0.4%
Receive a fixed rate of 5.47% and pay a floating rate based on 3-month LIBOR, Expires 5/19/12, Broker Bank of America NA	$	6,200		1,913,717
Over-the-Counter Interest Rate Put Swaptions — 0.0%
Pay a fixed rate of 5.47% and receive a floating rate based on 3-month LIBOR, Expires 5/19/12, Broker Bank of America NA		6,200		1
Total Options Purchased (Cost — $581,573) — 0.4%				1,915,593
Total Investments Before Borrowed Bonds, TBA Sale Commitments and Options Written (Cost — $827,782,946) — 167.8%				854,610,170
Borrowed Bonds	Par (000)		Value
US Treasury Notes:
1.25%, 2/15/14	$	920	$	(936,854	)
2.13%, 2/29/16		6,845		(7,242,866	)
1.00%, 10/31/16		3,765		(3,799,118	)
0.88%, 12/31/16		6,460		(6,470,601	)
Total Borrowed Bonds (Proceeds — $17,950,636) — (3.6)%				(18,449,439	)
TBA Sale Commitments (f)
Fannie Mae Mortgage-Backed Securities:
4.50%, 9/01/25 – 5/01/41		13,800		(14,764,922	)
5.50%, 3/15/27 – 3/12/42		1,000		(1,077,813	)
Total TBA Sale Commitments (Proceeds — $15,827,469) — (3.1)%				(15,842,735	)
Options Written	Notional Amount (000)
Over-the-Counter Interest Rate Call Swaptions — (0.4)%
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		(1,921,819	)
Over-the-Counter Interest Rate Put Swaptions — (0.0)%
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		(7,528	)
Total Options Written (Premiums Received — $706,515) — (0.4)%				(1,929,347	)
Total Investments, Net of TBA Sale Commitments, Options Written and Borrowed Bonds — 160.7%				818,388,649
Liabilities in Excess of Other Assets — (60.7)%				(308,976,810	)
Net Assets — 100.0%			$	509,411,839

(a)	Variable rate security. Rate shown is as of report date.
(b)	Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(c)	Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(d)	Amount is less than $500.
(e)	All or a portion of security has been pledged as collateral in connection with open reverse repurchase agreements.
(f)	Represents or includes a to-be-announced (“TBA”) transaction. Unsettled TBA transactions as of February 29, 2012 were as follows:

Counterparty	Value			Unrealized Appreciation (Depreciation)
BNP Paribas Securities Corp.	$	1,550,156		$	(703	)
Credit Suisse Securities (USA) LLC	$	89,523,232		$	229,888
Goldman Sachs & Co.	$	51,393,125		$	59,500
Greenwich Financial Services	$	4,786,375		$	12,375
JPMorgan Chase Securities, Inc.	$	29,443,860		$	(32,456	)
UBS AG	$	(15,842,735	)	$	(15,266	)

(g) All or a portion of security has been pledged as collateral in connection with swaps.

See Notes to Financial Statements.
86	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012

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

(h) 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, 2011		Net Activity			Shares Held at February 29, 2012		Income
BlackRock Liquidity Funds, TempFund, Institutional Class		3,958,025		(1,946,588	)		2,011,437	$	3,309

(i)	Represents the current yield as of report date.
•	Reverse repurchase agreements outstanding as of February 29, 2012 were as follows:

Counterparty	Interest Rate			Trade Date	Maturity Date	Net Closing Amount		Face Amount
Credit Suisse Securities (USA) LLC		0.13	%	11/29/11	Open	$	10,313,462	$	10,310,000
BNP Paribas Securities Corp.		0.10	%	12/12/11	Open		3,595,174		3,594,375
Barclays Capital, Inc.		0.12	%	1/25/12	Open		4,764,772		4,764,200
Deutsche Bank AG		0.25	%	2/13/12	3/12/12		58,639,041		58,632,119
Merrill Lynch & Co., Inc.		0.14	%	2/16/12	Open		36,885,421		36,883,413
BNP Paribas Securities Corp.		0.09	%	2/29/12	3/01/12		7,131,662		7,131,644
BNP Paribas Securities Corp.		0.15	%	2/29/12	3/01/12		3,017,538		3,017,525
BNP Paribas Securities Corp.		0.18	%	2/29/12	3/01/12		2,065,535		2,065,525
BNP Paribas Securities Corp.		0.19	%	2/29/12	3/01/12		22,534,744		22,534,625
Credit Suisse Securities (USA) LLC		(0.06	)%	2/29/12	3/01/12		5,735,615		5,735,625
Credit Suisse Securities (USA) LLC		0.22	%	2/29/12	3/01/12		9,022,555		9,022,500
Total						$	163,705,519	$	163,691,551

• Financial futures contracts purchased as of February 29, 2012 were as follows:

Contracts	Issue	Exchange	Expiration	Notional Value		Unrealized Appreciation (Depreciation)
143	90-Day Euro Dollar	Chicago Mercantile	March 2012	$	35,585,550	$	193,444
155	90-Day Euro Dollar	Chicago Mercantile	June 2012	$	38,575,625		202,748
43	Ultra Long US Treasury Bond	Chicago Board of Trade	June 2012	$	6,761,750		(71,664	)
169	90-Day Euro Dollar	Chicago Mercantile	September 2012	$	42,042,975		388,660
98	90-Day Euro Dollar	Chicago Mercantile	December 2012	$	24,368,925		138,779
70	90-Day Euro Dollar	Chicago Mercantile	March 2013	$	17,401,125		285,170
96	90-Day Euro Dollar	Chicago Mercantile	June 2013	$	23,854,800		246,645
90	90-Day Euro Dollar	Chicago Mercantile	September 2013	$	22,353,750		410,415
57	90-Day Euro Dollar	Chicago Mercantile	December 2013	$	14,148,113		325,018
26	90-Day Euro Dollar	Chicago Mercantile	March 2014	$	6,449,300		159,779
Total						$	2,278,994

• Financial futures contracts sold as of February 29, 2012 were as follows:

Contracts	Issue	Exchange	Expiration	Notional Value		Unrealized Appreciation (Depreciation)
65	2-Year US Treasury Note	Chicago Board of Trade	March 2012	$	14,327,422	$	908
65	5-Year US Treasury Note	Chicago Board of Trade	March 2012	$	8,014,297		(123	)
107	2-Year US Treasury Note	Chicago Board of Trade	June 2012	$	23,565,078		646
638	5-Year US Treasury Note	Chicago Board of Trade	June 2012	$	78,583,656		10,468
1,595	10-Year US Treasury Note	Chicago Board of Trade	June 2012	$	208,870,234		417,644
19	30-Year US Treasury Bond	Chicago Board of Trade	June 2012	$	2,691,469		1,541
Total						$	431,084

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012	87

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

• Interest rate swaps outstanding as of February 29, 2012 were as follows:

Fixed Rate	Floating Rate	Counterparty	Expiration Date	Notional Amount (000)		Unrealized Appreciation (Depreciation)
0.83%1	3-month LIBOR	Deutsche Bank AG	7/27/12	$	34,800	$	(46,198	)
4.88%2	3-month LIBOR	UBS AG	3/21/15	$	25,000		3,169,816
4.87%2	3-month LIBOR	Goldman Sachs & Co.	1/25/16	$	5,500		846,219
2.81%2	3-month LIBOR	Citibank NA	2/06/16	$	20,000		1,502,661
5.72%2	3-month LIBOR	JPMorgan Chase & Co.	7/14/16	$	5,400		1,100,858
5.51%2	3-month LIBOR	Bank of America NA	8/03/17	$	95,147		21,513,217
5.88%1	3-month LIBOR	Deutsche Bank AG	6/25/18	$	31,930		(8,206,426	)
4.55%1	3-month LIBOR	Citibank NA	9/26/18	$	41,600		(8,018,615	)
4.31%1	3-month LIBOR	Deutsche Bank AG	10/01/18	$	66,000		(11,751,455	)
3.09%1	3-month LIBOR	Deutsche Bank AG	3/09/19	$	25,700		(2,595,134	)
3.17%2	3-month LIBOR	Bank of America NA	3/18/19	$	4,700		497,639
2.88%2	3-month LIBOR	Deutsche Bank AG	4/01/19	$	39,700		3,424,487
3.23%1	3-month LIBOR	Deutsche Bank AG	5/19/19	$	2,800		(308,662	)
3.90%1	3-month LIBOR	Barclays Bank Plc	6/05/19	$	20,000		(3,144,251	)
3.55%1	3-month LIBOR	Deutsche Bank AG	8/18/19	$	15,000		(2,123,592	)
5.49%1	3-month LIBOR	JPMorgan Chase & Co.	10/28/19	$	1,400		(344,322	)
3.67%2	3-month LIBOR	Deutsche Bank AG	12/21/19	$	2,000		286,138
5.67%1	3-month LIBOR	Citigroup Global Markets, Inc.	1/06/20	$	12,400		(3,124,695	)
3.88%2	3-month LIBOR	Morgan Stanley & Co., Inc.	1/07/20	$	7,600		1,209,220
3.71%1	3-month LIBOR	Deutsche Bank AG	2/11/20	$	6,200		(907,074	)
3.73%2	3-month LIBOR	Morgan Stanley & Co., Inc.	5/05/20	$	28,000		4,160,854
3.43%2	3-month LIBOR	JPMorgan Chase & Co.	3/28/21	$	7,000		1,179,276
5.41%2	3-month LIBOR	JPMorgan Chase & Co.	8/15/22	$	9,565		3,028,274
Total						$	1,348,235

1	Trust pays a fixed interest rate and receives floating rate.
2	Trust pays a 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. These definitions 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 derivative financial instruments. These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:

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

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

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

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

The following tables summarize the inputs used as of February 29, 2012 in determining the fair valuation of the Trust’s investments and derivative financial instruments:

Valuation Inputs	Level 1		Level 2			Level 3		Total
Assets:
Investments:
Long-Term Investments:
Asset-Backed Securities		—	$	9,853,629		$	980,101	$	10,833,730
Non-Agency Mortgage-Backed Securities		—		15,197,084			3,990,446		19,187,530
US Government Sponsored Agency Securities		—		677,873,009			4,793,834		682,666,843
US Treasury Obligations		—		119,459,331			—		119,459,331
Short-Term Securities:
Borrowed Bond Agreements		—		18,535,706			—		18,535,706
Money Market Funds	$	2,011,437		—			—		2,011,437
Liabilities:
Investments:
Long-Term Investments:
Borrowed Bonds		—		(18,449,439	)		—		(18,449,439	)
TBA Sale Commitments		—		(15,842,735	)		—		(15,842,735	)
Total	$	2,011,437	$	806,626,585		$	9,764,381	$	818,402,403

See Notes to Financial Statements.
88	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012

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

Valuation Inputs	Level 1			Level 2			Level 3		Total
Derivative Financial Instruments1
Assets:
Interest rate contracts	$	2,783,740		$	43,832,377			—	$	46,616,117
Liabilities:
Interest rate contracts		(71,787	)		(42,499,771	)		—		(42,571,558	)
Total	$	2,711,953		$	1,332,606			—	$	4,044,559

¹ Derivative financial instruments are swaps, financial futures contracts and options. Swaps and financial futures 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 to determine fair value:

	Asset-Backed Securities			Non-Agency Mortgage-Backed Securities			US Government Sponsored Agency Securities			Total
Assets/Liabilities:
Balance, as of August 31, 2011	$	1,038,628		$	4,432,527		$	5,096,285		$	10,567,440
Accrued discounts/premiums		(174,660	)		44,578			(6,945	)		(137,027	)
Realized gain (loss)		—			18			(5,921	)		(5,903	)
Change in unrealized appreciation/depreciation2		116,133			(359,799	)		(132,173	)		(375,839	)
Purchases		—			—			—			—
Sales		—			(126,878	)		(157,412	)		(284,290	)
Transfers in3		—			—			—			—
Transfers out3		—			—			—			—
Balance, as of February 29, 2012	$	980,101		$	3,990,446		$	4,793,834		$	9,764,381

2	Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations. The change in unrealized appreciation/depreciation on investments still held at February 29, 2012 was $(342,222).
3	The Trust’s policy is to recognize transfers in and transfers out as of the beginning of the period of the event or the change in circumstances that caused the transfer.

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

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012	89

Schedule of Investments February 29, 2012 (Unaudited)	BlackRock Strategic Bond Trust (BHD)
	(Percentages shown are based on Net Assets)

Common Stocks		Shares	Value
Auto Components — 2.0%
Delphi Automotive Plc		4,902	$	156,861
Delphi Automotive Plc (180-day lock) (Acquired 11/17/11, cost $364,196) (a)		60,671		1,892,938
				2,049,799
Media — 0.0%
Adelphia Recovery Trust		396,568		5,949
Software — 0.0%
Bankruptcy Management Solutions, Inc. (b)		56		2
Total Common Stocks — 2.0%				2,055,750
Corporate Bonds	Par (000)
Airlines — 0.7%
Continental Airlines, Inc., Series 2010-1-A, 4.75%, 1/12/21	USD	427		445,819
Delta Air Lines, Inc., Series 2009-1-B, Class B, 9.75%, 12/17/16		39		41,064
US Airways Pass-Through Trust, Series 2011-1, Class C, 10.88%, 10/22/14		250		250,000
				736,883
Auto Components — 1.0%
Baker Corp. International, Inc., 8.25%, 6/01/19 (c)		75		76,500
Dana Holding Corp., 6.75%, 2/15/21		180		194,850
Icahn Enterprises LP, 8.00%, 1/15/18		670		710,200
				981,550
Beverages — 0.3%
Crown European Holdings SA (c):
7.13%, 8/15/18	EUR	142		202,666
7.13%, 8/15/18		50		71,361
				274,027
Biotechnology — 0.1%
QHP Pharma, 10.25%, 3/15/15 (c)	USD	84		84,602
Building Products — 0.4%
Building Materials Corp. of America, 7.00%, 2/15/20 (c)		210		227,850
Momentive Performance Materials, Inc., 11.50%, 12/01/16		175		147,000
				374,850
Capital Markets — 3.3%
Credit Suisse AG, 5.40%, 1/14/20		480		482,192
E*Trade Financial Corp.:
12.50%, 11/30/17		390		454,350
Series A, 0.0%, 8/31/19 (d)(e)		100		94,625
The Goldman Sachs Group, Inc.:
5.38%, 3/15/20		225		230,564
6.00%, 6/15/20		250		265,762
5.75%, 1/24/22		525		548,016
KKR Group Finance Co., 6.38%, 9/29/20 (c)		170		180,917
Merrill Lynch & Co., Inc., 6.05%, 5/16/16		325		335,576
Morgan Stanley, 5.50%, 7/28/21		725		718,305
				3,310,307
Corporate Bonds	Par (000)		Value
Chemicals — 3.2%
American Pacific Corp., 9.00%, 2/01/15	USD	180	$	175,500
Ashland, Inc., 9.13%, 6/01/17		120		134,700
Celanese US Holdings LLC, 5.88%, 6/15/21		650		708,500
Chemtura Corp., 7.88%, 9/01/18		140		150,500
Ecolab, Inc., 4.35%, 12/08/21		125		137,325
Hexion U.S. Finance Corp., 9.00%, 11/15/20		115		112,700
Huntsman International LLC, 8.63%, 3/15/21		65		73,450
Ineos Finance Plc, 8.38%, 2/15/19 (c)		100		106,250
Kinove German Bondco GmbH, 10.00%, 6/15/18	EUR	109		149,214
Kraton Polymers LLC, 6.75%, 3/01/19	USD	45		45,900
Lyondell Chemical Co., 11.00%, 5/01/18		769		843,342
LyondellBasell Industries NV, 6.00%, 11/15/21 (c)		65		71,338
Nexeo Solutions LLC, 8.38%, 3/01/18 (c)		65		65,000
PolyOne Corp., 7.38%, 9/15/20		80		86,200
Solutia, Inc., 7.88%, 3/15/20		225		263,812
TPC Group LLC, 8.25%, 10/01/17		125		131,875
				3,255,606
Commercial Banks — 4.6%
Amsouth Bank, Series AI, 4.85%, 4/01/13		650		652,437
Barclays Bank Plc, 5.14%, 10/14/20		450		432,807
CIT Group, Inc.:
7.00%, 5/02/16 (c)		599		599,749
7.00%, 5/02/17 (c)		1,555		1,556,944
5.50%, 2/15/19 (c)		220		224,675
HSBC Bank USA NA, 4.88%, 8/24/20		550		553,710
Lloyds TSB Bank Plc, 5.80%, 1/13/20 (c)		100		103,646
Standard Chartered Plc, 5.50%, 11/18/14 (c)		450		483,840
				4,607,808
Commercial Services & Supplies — 1.5%
ACCO Brands Corp., 10.63%, 3/15/15		195		215,233
AWAS Aviation Capital Ltd., 7.00%, 10/17/16 (c)		204		213,498
Brickman Group Holdings, Inc., 9.13%, 11/01/18 (c)		11		10,450
Mobile Mini, Inc., 7.88%, 12/01/20		135		141,750
RSC Equipment Rental, Inc.:
10.00%, 7/15/17 (c)		240		278,400
8.25%, 2/01/21		310		328,600
Verisure Holding AB:
8.75%, 9/01/18	EUR	100		134,562
8.75%, 12/01/18		100		118,575
West Corp., 8.63%, 10/01/18	USD	50		54,875
				1,495,943
Construction & Engineering — 0.1%
Boart Longyear Management Property Ltd., 7.00%, 4/01/21 (c)		75		78,938
Construction Materials — 0.1%
Xefin Lux SCA, 8.00%, 6/01/18 (c)	EUR	100		133,896
Consumer Finance — 1.0%
Credit Acceptance Corp., 9.13%, 2/01/17	USD	185		197,025
Ford Motor Credit Co. LLC:
7.80%, 6/01/12		250		253,082
5.88%, 8/02/21		447		498,839
Toll Brothers Finance Corp., 5.88%, 2/15/22		85		88,165
				1,037,111
Containers & Packaging — 1.0%
Ardagh Packaging Finance Plc, 7.38%, 10/15/17 (c)	EUR	260		365,450
Berry Plastics Corp., 8.25%, 11/15/15	USD	45		48,375
GCL Holdings SCA, 9.38%, 4/15/18 (c)	EUR	100		118,907
Graphic Packaging International, Inc., 7.88%, 10/01/18	USD	135		148,500
Sealed Air Corp., 8.38%, 9/15/21 (c)		95		108,775
Smurfit Kappa Acquisitions, 7.75%, 11/15/19 (c)	EUR	130		186,622
				976,629

See Notes to Financial Statements.
90	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012

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

Corporate Bonds	Par (000)		Value
Diversified Financial Services — 6.6%
Ally Financial, Inc.:
8.30%, 2/12/15	USD	400	$	442,000
6.25%, 12/01/17		30		31,009
8.00%, 3/15/20		60		67,950
7.50%, 9/15/20		550		605,687
8.00%, 11/01/31		1,060		1,170,747
Axcan Intermediate Holdings, Inc., 12.75%, 3/01/16		137		146,076
Bank of America Corp.:
4.50%, 4/01/15		375		380,685
6.50%, 8/01/16		410		443,183
5.63%, 10/14/16		100		104,398
5.75%, 12/01/17		240		251,238
Boparan Holdings Ltd., 9.75%, 4/30/18 (c)	EUR	100		131,098
Citigroup, Inc., 8.13%, 7/15/39	USD	55		71,856
DPL, Inc., 7.25%, 10/15/21 (c)		290		330,600
FCE Bank Plc, 4.75%, 1/19/15	EUR	308		420,603
Itau Unibanco Holding SA, 5.75%, 1/22/21 (c)	USD	225		233,438
JPMorgan Chase & Co.:
5.50%, 10/15/40		175		189,015
5.60%, 7/15/41		175		194,481
Macquarie Bank, Ltd., 5.00%, 2/22/17 (c)		200		202,140
Reynolds Group Issuer, Inc. (c):
8.75%, 10/15/16		306		325,890
8.75%, 10/15/16	EUR	150		212,335
7.88%, 8/15/19	USD	180		197,100
6.88%, 2/15/21		140		148,400
WMG Acquisition Corp. (c):
9.50%, 6/15/16		45		49,725
11.50%, 10/01/18		210		223,125
				6,572,779
Diversified Telecommunication Services — 2.8%
Broadview Networks Holdings, Inc., 11.38%, 9/01/12		155		139,112
Level 3 Financing, Inc., 8.13%, 7/01/19 (c)		1,310		1,372,225
Qwest Communications International, Inc., 7.50%, 2/15/14		600		602,100
Qwest Corp., 8.38%, 5/01/16		270		316,200
Telefonica Emisiones SAU, 5.46%, 2/16/21		250		251,485
Videotron Ltee, 5.00%, 7/15/22 (c)		50		50,125
Windstream Corp.:
8.13%, 8/01/13		45		48,263
7.88%, 11/01/17		65		73,288
				2,852,798
Electric Utilities — 2.1%
Progress Energy, Inc., 7.75%, 3/01/31		1,000		1,390,988
The Tokyo Electric Power Co., Inc., 4.50%, 3/24/14	EUR	600		747,020
				2,138,008
Electronic Equipment, Instruments & Components — 0.1%
Jabil Circuit, Inc., 8.25%, 3/15/18	USD	45		53,550
Energy Equipment & Services — 4.2%
Antero Resources Finance Corp., 7.25%, 8/01/19 (c)		60		63,300
Calfrac Holdings LP, 7.50%, 12/01/20 (c)		145		145,000
Compagnie Générale de Géophysique-Veritas, 7.75%, 5/15/17		55		57,269
Energy Transfer Partners LP, 5.20%, 2/01/22		600		645,874
Ensco Plc, 4.70%, 3/15/21		425		465,318
Forbes Energy Services Ltd., 9.00%, 6/15/19		130		128,050
Frac Tech Services LLC, 7.63%, 11/15/18 (c)		640		683,200
Key Energy Services, Inc., 6.75%, 3/01/21		160		167,600
MEG Energy Corp., 6.50%, 3/15/21 (c)		330		353,100
Oil States International, Inc., 6.50%, 6/01/19		115		123,625
Peabody Energy Corp., 6.25%, 11/15/21 (c)		970		1,016,075
Transocean, Inc., 6.38%, 12/15/21		310		365,846
				4,214,257

Corporate Bonds	Par (000)		Value
Food Products — 1.1%
Darling International, Inc., 8.50%, 12/15/18	USD	90	$	101,250
Kraft Foods, Inc.:
6.50%, 8/11/17		600		728,179
6.13%, 8/23/18		250		301,397
				1,130,826
Gas Utilities — 0.2%
El Paso Natural Gas Co., 8.63%, 1/15/22		145		179,408
Health Care Equipment & Supplies — 1.5%
DJO Finance LLC:
10.88%, 11/15/14		830		844,525
7.75%, 4/15/18		40		34,400
Fresenius Medical Care US Finance, Inc., 6.50%, 9/15/18 (c)		38		42,085
Fresenius US Finance II, Inc., 9.00%, 7/15/15 (c)		410		473,550
Teleflex, Inc., 6.88%, 6/01/19		105		113,137
				1,507,697
Health Care Providers & Services — 5.9%
Aviv Healthcare Properties LP, 7.75%, 2/15/19		150		153,375
ConvaTec Healthcare E SA, 7.38%, 12/15/17 (c)	EUR	200		276,452
Crown Newco 3 Plc, 7.00%, 2/15/18 (c)	GBP	200		313,805
HCA, Inc.:
8.50%, 4/15/19	USD	40		44,800
6.50%, 2/15/20		730		782,925
7.88%, 2/15/20		35		38,588
7.25%, 9/15/20		805		877,450
Health Management Associates, Inc., 7.38%, 1/15/20 (c)		220		229,350
IASIS Healthcare LLC, 8.38%, 5/15/19		270		257,850
INC Research LLC, 11.50%, 7/15/19 (c)		145		139,200
inVentiv Health, Inc., 10.00%, 8/15/18 (c)		50		45,500
Omnicare, Inc., 7.75%, 6/01/20		260		289,575
Symbion, Inc., 8.00%, 6/15/16		125		120,625
Tenet Healthcare Corp.:
10.00%, 5/01/18		665		774,725
6.25%, 11/01/18 (c)		120		127,950
8.88%, 7/01/19		195		222,300
WellPoint, Inc., 5.95%, 12/15/34		1,000		1,195,272
				5,889,742
Health Care Technology — 0.8%
IMS Health, Inc., 12.50%, 3/01/18 (c)		660		785,400
Hotels, Restaurants & Leisure — 1.4%
Caesars Entertainment Operating Co., Inc., 11.25%, 6/01/17		140		153,300
Diamond Resorts Corp., 12.00%, 8/15/18		310		327,050
El Dorado Resorts LLC, 8.63%, 6/15/19 (c)		50		47,625
MGM Resorts International:
10.38%, 5/15/14		750		853,125
11.13%, 11/15/17		65		73,938
Tropicana Entertainment LLC, Series WI, 9.63%, 12/15/14 (b)(f)		50		—
				1,455,038
Household Durables — 1.2%
Beazer Homes USA, Inc., 12.00%, 10/15/17		280		305,200
Ryland Group, Inc., 6.63%, 5/01/20		130		132,600
Standard Pacific Corp.:
10.75%, 9/15/16		565		649,044
8.38%, 1/15/21		105		111,562
				1,198,406

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012	91

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

Corporate Bonds	Par (000)		Value
Household Products — 0.1%
Ontex IV SA, 7.50%, 4/15/18 (c)	EUR	100	$	122,572
Independent Power Producers & Energy Traders — 2.1%
AES Corp., 7.38%, 7/01/21 (c)	USD	230		262,200
Calpine Corp. (c):
7.25%, 10/15/17		80		84,800
7.50%, 2/15/21		35		37,975
7.88%, 1/15/23		100		109,000
Energy Future Holdings Corp., 10.00%, 1/15/20		1,220		1,319,125
Energy Future Intermediate Holding Co. LLC, 10.00%, 12/01/20		203		220,509
QEP Resources, Inc., 5.38%, 10/01/22 (g)		75		75,750
				2,109,359
Industrial Conglomerates — 1.4%
Sequa Corp. (c):
11.75%, 12/01/15		460		488,750
13.50%, 12/01/15		854		911,921
				1,400,671
Insurance — 3.1%
American International Group, Inc., 6.40%, 12/15/20		1,130		1,260,141
CNO Financial Group, Inc., 9.00%, 1/15/18 (c)		130		139,913
Genworth Financial, Inc., 7.63%, 9/24/21		150		155,629
Lincoln National Corp., 8.75%, 7/01/19		575		733,093
Metropolitan Life Global Funding I, 5.13%, 6/10/14 (c)		250		269,853
MPL 2 Acquisition Canco, Inc., 9.88%, 8/15/18 (c)		90		80,325
Prudential Financial, Inc., 5.38%, 6/21/20		400		451,203
				3,090,157
IT Services — 1.5%
First Data Corp.:
7.38%, 6/15/19 (c)		130		131,463
8.88%, 8/15/20 (c)		195		211,087
8.25%, 1/15/21 (c)		155		149,962
12.63%, 1/15/21		445		467,250
SunGard Data Systems, Inc.:
7.38%, 11/15/18		280		301,000
7.63%, 11/15/20		220		237,600
				1,498,362
Machinery — 0.7%
Navistar International Corp.:
3.00%, 10/15/14 (e)		210		236,512
8.25%, 11/01/21		54		59,063
SPX Corp., 6.88%, 9/01/17		65		72,150
UR Financing Escrow Corp. (c)(g):
5.75%, 7/15/18		50		51,375
7.38%, 5/15/20		125		128,281
7.63%, 4/15/22		115		119,025
				666,406
Media — 15.3%
Affinion Group, Inc., 7.88%, 12/15/18		290		259,550
AMC Networks, Inc., 7.75%, 7/15/21 (c)		80		89,200
CCH II LLC, 13.50%, 11/30/16		289		332,843
CCO Holdings LLC, 6.50%, 4/30/21		750		796,875
Checkout Holding Corp., 10.68%, 11/15/15 (c)(d)		245		110,250
Cinemark USA, Inc., 8.63%, 6/15/19		60		66,750
Clear Channel Communications, Inc., 9.00%, 3/01/21		210		193,200
Clear Channel Worldwide Holdings, Inc.:
9.25%, 12/15/17		374		409,530
Series B, 9.25%, 12/15/17		1,899		2,088,900

Corporate Bonds	Par (000)		Value
Media (concluded)
DIRECTV Holdings LLC, 6.00%, 8/15/40	USD	175	$	200,760
DISH DBS Corp., 7.00%, 10/01/13		201		215,824
Gray Television, Inc., 10.50%, 6/29/15		270		285,187
Intelsat Luxembourg SA:
11.25%, 2/04/17		380		391,875
11.50%, 2/04/17 (h)		100		103,000
Interactive Data Corp., 10.25%, 8/01/18		340		383,350
The Interpublic Group of Cos., Inc., 10.00%, 7/15/17		45		51,525
Kabel BW Erste Beteiligungs GmbH, 7.50%, 3/15/19 (c)	EUR	237		337,858
Kabel Deutschland Vertrieb und Service GmbH & Co. KG, 6.50%, 6/29/18 (c)		125		175,712
Live Nation Entertainment, Inc., 8.13%, 5/15/18 (c)	USD	150		159,562
Musketeer GmbH, 9.50%, 3/15/21 (c)	EUR	150		215,833
NAI Entertainment Holdings LLC, 8.25%, 12/15/17 (c)	USD	270		297,000
NBC Universal Media LLC, 6.40%, 4/30/40		530		671,588
The New York Times Co., 6.63%, 12/15/16		500		521,250
News America, Inc., 6.20%, 12/15/34		1,500		1,740,270
Nielsen Finance LLC, 7.75%, 10/15/18		765		851,062
Odeon & UCI Finco Plc, 9.00%, 8/01/18 (c)	GBP	100		157,101
ProQuest LLC, 9.00%, 10/15/18 (c)	USD	130		115,050
TCI Communications, Inc., 7.88%, 2/15/26		1,000		1,318,770
Time Warner Cable, Inc., 5.88%, 11/15/40		410		465,550
Unitymedia GmbH:
9.63%, 12/01/19	EUR	50		71,944
9.63%, 12/01/19 (c)		190		273,388
Unitymedia Hessen GmbH & Co. KG (FKA UPC Germany GmbH):
8.13%, 12/01/17 (c)	USD	200		217,000
8.13%, 12/01/17	EUR	210		300,767
UPC Holding BV, 9.88%, 4/15/18 (c)	USD	100		111,000
UPCB Finance II Ltd., 6.38%, 7/01/20 (c)	EUR	292		387,086
Virgin Media Secured Finance Plc:
6.50%, 1/15/18	USD	200		218,000
7.00%, 1/15/18	GBP	50		85,909
Ziggo Bond Co. BV, 8.00%, 5/15/18 (c)	EUR	165		232,470
Ziggo Finance BV, 6.13%, 11/15/17 (c)		295		407,767
				15,310,556
Metals & Mining — 3.2%
Barrick Gold Corp., 2.90%, 5/30/16	USD	225		237,167
Barrick North America Finance LLC, 5.70%, 5/30/41		250		295,663
Goldcorp, Inc., 2.00%, 8/01/14 (e)		220		278,850
New World Resources NV:
7.88%, 5/01/18	EUR	65		87,899
7.88%, 5/01/18 (c)		76		102,774
Newmont Mining Corp.:
5.13%, 10/01/19	USD	225		255,097
Series A, 1.25%, 7/15/14 (e)		200		276,000
Novelis, Inc., 8.75%, 12/15/20		1,195		1,332,425
Taseko Mines Ltd., 7.75%, 4/15/19		150		144,000
Vedanta Resources Plc, 8.25%, 6/07/21 (c)		200		184,500
				3,194,375
Multiline Retail — 1.2%
Dollar General Corp., 11.88%, 7/15/17 (i)		1,135		1,245,674
Oil, Gas & Consumable Fuels — 11.8%
Alpha Natural Resources, Inc., 6.25%, 6/01/21		145		140,650
Anadarko Petroleum Corp.:
5.95%, 9/15/16		365		422,569
6.38%, 9/15/17		75		90,024
Berry Petroleum Co., 8.25%, 11/01/16		100		104,250

See Notes to Financial Statements.
92	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012

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

Corporate Bonds	Par (000)		Value
Oil, Gas & Consumable Fuels (concluded)
Bill Barrett Corp., 9.88%, 7/15/16	USD	10	$	11,050
Carrizo Oil & Gas, Inc., 8.63%, 10/15/18		50		52,000
Chesapeake Midstream Partners LP, 6.13%, 7/15/22 (c)		100		103,500
Chesapeake Oilfield Operating LLC, 6.63%, 11/15/19 (c)		60		61,200
Coffeyville Resources LLC, 9.00%, 4/01/15 (c)		99		105,930
Concho Resources, Inc., 7.00%, 1/15/21		150		168,750
Consol Energy, Inc., 8.25%, 4/01/20		710		773,900
Continental Resources, Inc., 7.13%, 4/01/21		135		149,850
Copano Energy LLC, 7.13%, 4/01/21		120		127,200
Crosstex Energy LP, 8.88%, 2/15/18		65		70,525
Denbury Resources, Inc.:
8.25%, 2/15/20		239		272,460
6.38%, 8/15/21		125		137,813
El Paso Pipeline Partners Operating Co. LLC, 5.00%, 10/01/21		500		522,139
Energy XXI Gulf Coast, Inc.:
9.25%, 12/15/17		145		160,587
7.75%, 6/15/19		320		337,600
Enterprise Products Operating LLC, 3.70%, 6/01/15		500		532,678
EV Energy Partners LP, 8.00%, 4/15/19		55		57,750
Hilcorp Energy I LP, 7.63%, 4/15/21 (c)		195		212,550
Kodiak Oil & Gas Corp., 8.13%, 12/01/19 (c)		120		128,400
Linn Energy LLC:
6.50%, 5/15/19 (c)		35		35,700
6.25%, 11/01/19 (c)(g)		305		304,619
7.75%, 2/01/21		170		182,750
MarkWest Energy Partners LP, 6.75%, 11/01/20		50		54,625
Nexen, Inc., 6.40%, 5/15/37		150		172,050
Niska Gas Storage US LLC, 8.88%, 3/15/18		215		206,400
Oasis Petroleum, Inc.:
7.25%, 2/01/19		115		121,900
6.50%, 11/01/21		110		113,300
OGX Petroleo e Gas Participações SA, 8.50%, 6/01/18 (c)		1,705		1,777,462
Petrobras International Finance Co.:
3.88%, 1/27/16		1,100		1,147,245
5.88%, 3/01/18		200		222,324
7.88%, 3/15/19		100		123,000
6.88%, 1/20/40		25		29,461
Petrohawk Energy Corp.:
7.25%, 8/15/18		115		131,531
6.25%, 6/01/19		315		355,950
Petroleum Geo-Services ASA, 7.38%, 12/15/18 (c)		210		220,500
Pioneer Natural Resources Co.:
6.88%, 5/01/18		35		41,114
7.50%, 1/15/20		55		67,967
Plains Exploration & Production Co.:
6.63%, 5/01/21		290		313,200
6.75%, 2/01/22		195		213,525
Precision Drilling Corp., 6.50%, 12/15/21 (c)		105		112,088
Range Resources Corp.:
8.00%, 5/15/19		45		50,175
5.75%, 6/01/21		350		374,500
SandRidge Energy, Inc., 7.50%, 3/15/21		165		166,650
SM Energy Co., 6.63%, 2/15/19		45		48,263
Western Gas Partners LP, 5.38%, 6/01/21		325		346,785
The Williams Cos., Inc., 8.75%, 3/15/32		124		165,523
				11,841,982

Corporate Bonds	Par (000)		Value
Paper & Forest Products — 2.2%
Boise Paper Holdings LLC:
9.00%, 11/01/17	USD	105	$	115,500
8.00%, 4/01/20		65		71,337
Clearwater Paper Corp.:
10.63%, 6/15/16		160		181,800
7.13%, 11/01/18		215		228,975
Georgia-Pacific LLC, 8.25%, 5/01/16 (c)		355		393,279
International Paper Co.:
7.95%, 6/15/18		220		275,788
7.30%, 11/15/39		5		6,433
Longview Fibre Paper & Packaging, Inc., 8.00%, 6/01/16 (c)		120		123,300
NewPage Corp., 11.38%, 12/31/14 (b)(f)		845		509,112
Sappi Papier Holding GmbH, 6.63%, 4/15/21 (c)		50		46,875
Verso Paper Holdings LLC, 11.50%, 7/01/14		297		302,940
				2,255,339
Pharmaceuticals — 1.5%
Capsugel Finance Co. SCA, 9.88%, 8/01/19 (c)	EUR	100		143,222
Jaguar Holding Co. II, 9.50%, 12/01/19 (c)	USD	150		164,063
Valeant Pharmaceuticals International, 6.50%, 7/15/16 (c)		470		479,400
Wyeth, 6.50%, 2/01/34		500		673,938
				1,460,623
Professional Services — 0.3%
FTI Consulting, Inc., 6.75%, 10/01/20		265		286,531
Real Estate Investment Trusts (REITs) — 0.7%
Felcor Lodging LP, 6.75%, 6/01/19		345		352,763
HCP, Inc., 5.38%, 2/01/21		225		246,625
The Rouse Co. LP, 6.75%, 11/09/15		145		151,706
				751,094
Real Estate Management & Development — 1.6%
CBRE Services, Inc., 6.63%, 10/15/20		90		95,625
Realogy Corp.:
11.50%, 4/15/17		110		100,650
12.00%, 4/15/17		35		32,200
7.88%, 2/15/19 (c)		810		785,700
7.63%, 1/15/20 (c)		130		134,225
Shea Homes LP, 8.63%, 5/15/19 (c)		445		449,450
				1,597,850
Road & Rail — 1.6%
Avis Budget Car Rental LLC, 8.25%, 1/15/19		45		46,913
Canadian National Railway Co., 6.90%, 7/15/28		500		666,938
The Hertz Corp.:
7.50%, 10/15/18		335		361,381
6.75%, 4/15/19		40		41,900
7.38%, 1/15/21		430		465,475
				1,582,607
Software — 0.3%
Oracle Corp., 5.38%, 7/15/40		210		255,362
Specialty Retail — 1.4%
Asbury Automotive Group, Inc., 8.38%, 11/15/20		130		139,425
House of Fraser Funding Plc:
8.88%, 8/15/18 (c)	GBP	100		142,386
8.88%, 8/15/18		125		177,982
Limited Brands, Inc., 8.50%, 6/15/19	USD	320		382,400
Phones4u Finance Plc, 9.50%, 4/01/18 (c)	GBP	100		139,601
QVC, Inc. (c):
7.13%, 4/15/17	USD	80		86,000
7.50%, 10/01/19		135		149,850
7.38%, 10/15/20		95		105,213
Sonic Automotive, Inc., 9.00%, 3/15/18		115		125,062
				1,447,919

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012	93

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

Corporate Bonds	Par (000)		Value
Tobacco — 0.1%
Altria Group, Inc., 9.95%, 11/10/38	USD	50	$	78,158
Wireless Telecommunication Services — 5.5%
America Movil SAB de CV:
2.38%, 9/08/16		200		204,217
5.00%, 3/30/20		400		454,280
American Tower Corp., 4.50%, 1/15/18		375		387,963
Cricket Communications, Inc., 7.75%, 5/15/16		480		511,200
Crown Castle Towers LLC, 6.11%, 1/15/40 (c)		375		422,233
Digicel Group Ltd. (c):
8.88%, 1/15/15		170		172,975
9.13%, 1/15/15		439		447,780
8.25%, 9/01/17		365		386,900
iPCS, Inc., 2.67%, 5/01/13 (i)		20		19,250
SBA Tower Trust, 4.25%, 4/15/40 (c)		325		334,425
Sprint Capital Corp., 6.88%, 11/15/28		830		647,400
Sprint Nextel Corp. (c):
9.00%, 11/15/18		880		981,200
7.00%, 3/01/20 (g)		560		569,100
				5,538,923
Total Corporate Bonds — 100.8%				101,060,579
Floating Rate Loan Interests (i)
Airlines — 0.2%
Delta Air Lines, Inc., Credit New Term Loan B, 5.50%, 4/20/17		214		208,494
Auto Components — 0.2%
Schaeffler AG, Term Loan C2, 6.25%, 1/27/17		180		180,526
Building Products — 0.2%
Goodman Global, Inc., Term Loan (Second Lien), 9.00%, 10/30/17		191		193,893
Commercial Services & Supplies — 0.7%
AWAS Finance Luxembourg Sarl, Term Loan B, 5.25%, 6/10/16		152		151,026
Delos Aircraft, Inc., Term Loan B2, 7.00%, 3/17/16		225		225,241
Volume Services America, Inc., (FKA Centerplate), Term Loan B, 10.50% – 10.75%, 9/16/16		356		356,982
				733,249
Construction & Engineering — 0.7%
Safway Services LLC, Mezzanine Loan, 15.63%, 12/16/17		750		750,000
Consumer Finance — 1.6%
Springleaf Finance Corp. (FKA AGFS Funding Co.), Term Loan, 5.50%, 5/10/17		1,750		1,595,317
Diversified Consumer Services — 0.5%
Laureate Education, Inc., Extended Term Loan, 5.25%, 8/15/18		490		467,735
ServiceMaster Co.:
Delayed Draw Term Loan, 2.75%, 7/24/14		3		3,115
Term Loan, 2.77% – 3.03%, 7/24/14		32		31,284
				502,134
Diversified Telecommunication Services — 0.5%
Level 3 Financing, Inc.:
Term Loan B, 5.75%, 8/31/18		350		352,408
Tranche A Term Loan, 2.50% – 2.83%, 3/13/14		200		196,700
				549,108

Floating Rate Loan Interests (i)	Par (000)		Value
Energy Equipment & Services — 2.0%
Dynegy Midwest Generation LLC, Coal Co. Term Loan, 9.25%, 8/04/16	USD	705	$	700,939
Dynegy Power LLC, Gas Co. Term Loan, 9.25%, 8/04/16		1,290		1,330,738
				2,031,677
Food Products — 0.3%
Advance Pierre Foods, Inc., Term Loan (Second Lien), 11.25%, 9/29/17		300		300,249
Health Care Equipment & Supplies — 0.3%
Hupah Finance, Inc., Term Loan B, 6.25%, 1/21/19		280		279,826
Health Care Providers & Services — 0.7%
Harden Healthcare LLC:
Term Loan A, 8.50%, 3/02/15		164		160,662
Tranche A Additional Term Loan, 7.75%, 3/02/15		165		161,396
Health Management Associates, Inc., Term Loan B, 4.50%, 11/16/18		145		144,058
inVentiv Health, Inc., Combined Term Loan, 6.50%, 8/04/16		265		254,804
				720,920
Hotels, Restaurants & Leisure — 1.2%
Caesars Entertainment Operating Co., Inc.:
Term Loan B-1,3.24%, 1/28/15		292		273,775
Term Loan B-2, 3.25%, 1/28/15		109		102,445
Term Loan B-3, 3.00% – 3.58%, 1/28/15		350		328,245
Term Loan B-4, 9.50%, 10/31/16		80		82,291
OSI Restaurant Partners LLC:
Revolver, 2.56% 2.79%, 6/14/13		4		3,503
Term Loan B, 2.56%, 6/14/14		36		35,530
Station Casinos, Inc., Term Loan B1, 3.24%, 6/17/16		375		338,126
				1,163,915
Independent Power Producers & Energy Traders — 0.1%
Texas Competitive Electric Holdings Co. LLC (FKA TXU), Extended Term Loan, 4.76%, 10/10/17		136		76,091
Industrial Conglomerates — 0.2%
Sequa Corp., Incremental Term Loan, 6.25%, 12/03/14		160		160,533
IT Services — 0.3%
First Data Corp., Extended Term Loan B, 4.24%, 3/23/18		285		255,742
Leisure Equipment & Products — 0.2%
Eastman Kodak Co., DIP Term Loan B, 8.50%, 7/20/13		215		217,621
Media — 4.1%
Cengage Learning Acquisitions, Inc. (FKA Thomson Learning):
Term Loan, 2.49%, 7/03/14		40		37,120
Tranche 1 Incremental Term Loan, 7.50%, 7/03/14		482		466,819
Clear Channel Communications:
Term Loan B, 3.89%, 1/28/16		550		451,396
Term Loan C, 3.89%, 1/28/16		55		43,588
Intelsat Jackson Holdings SA (FKA Intelsat Jackson Holdings, Ltd.), Tranche B Term Loan, 5.25%, 4/02/18		2,481		2,477,032
Interactive Data Corp., Term Loan B, 4.50%, 2/12/18		20		19,955
Newsday LLC, Fixed Rate Term Loan, 10.50%, 8/01/13		550		565,812
				4,061,722

See Notes to Financial Statements.
94	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012

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

Floating Rate Loan Interests (i)	Par (000)		Value
Oil, Gas & Consumable Fuels — 0.6%
Obsidian Natural Gas Trust, Term Loan, 7.00%, 11/02/15	USD	612	$	614,676
Paper & Forest Products — 0.3%
NewPage Corp., DIP Term Loan, 8.00%, 3/07/13		250		251,875
Pharmaceuticals — 0.1%
Pharmaceutical Products Development, Inc., Term Loan B, 6.25%, 12/05/18		145		146,269
Real Estate Investment Trusts (REITs) — 0.4%
iStar Financial, Inc., Term Loan (Second Lien), 5.00%, 6/28/13		454		451,562
Real Estate Management & Development — 0.4%
Realogy Corp.:
Extended Letter of Credit, 4.53%, 10/10/16		60		56,045
Extended Term Loan, 4.77%, 10/10/16		426		395,042
				451,087
Software — 0.2%
Infor Enterprise Solutions Holdings, Inc., Extended Initial Term Loan, 6.29%, 7/28/15	EUR	155		194,632
Specialty Retail — 0.2%
Claire’s Stores, Inc., Term Loan B, 2.99% – 3.30%, 5/29/14	USD	197		186,418
Wireless Telecommunication Services — 1.3%
Crown Castle International Corp., Term Loan B, 4.00%, 1/31/19		75		74,659
Vodafone Americas Finance 2, Inc. (h):
Term Loan, 6.88%, 8/11/15		831		830,645
Term Loan B, 6.25%, 7/11/16		413		411,469
				1,316,773
Total Floating Rate Loan Interests — 17.5%				17,594,309
Foreign Agency Obligations — 0.2%
Qatar Government International Bond, 4.00%, 1/20/15 (c)		200		211,000
Other Interests (j) — 0.0%	Beneficial Interest (000)
Media — 0.0%
Adelphia Communications Corp., Class A		400		2,480
Preferred Securities
Capital Trusts	Par (000)
Capital Markets — 0.1%
State Street Capital Trust IV, 1.55%, 6/15/37 (i)		200		141,191
Insurance — 0.2%
Genworth Financial, Inc., 6.15%, 11/15/66 (i)		305		209,306
Total Capital Trusts — 0.3%				350,497

Preferred Stocks	Shares		Value
Diversified Financial Services — 0.9%
Ally Financial, Inc., 7.00% (c)		1,000	$	867,688
Real Estate Investment Trusts (REITs) — 0.0%
MPG Office Trust, Inc., Series A, 7.63% (b)		3,277		46,533
Total Preferred Stocks — 0.9%				914,221
Trust Preferreds — 0.2%
Diversified Financial Services — 0.2%
GMAC Capital Trust I, Series 2, 8.13%, 2/15/40 (i)		6,840		159,986
Total Preferred Securities — 1.4%				1,424,704
Taxable Municipal Bonds — 0.4%		Par (000)
Metropolitan Transportation Authority, RB, Build America Bonds, Series TR, 6.81%, 11/15/40	USD	300		391,896
US Government Sponsored Agency Securities — 0.2%
Collateralized Mortgage Obligations — 0.2%
Ginnie Mae Mortgage-Backed Securities, Series 2006-68, Class B, 5.16%, 6/16/31 (i)		247		251,184
US Treasury Obligations
US Treasury Notes:
2.00%, 11/15/21		465		467,325
2.00%, 2/15/22		95		95,193
Total US Treasury Obligations — 0.6%				562,518
Warrants (k)		Shares
Media — 0.1%
Cumulus Media, Inc. (Expires 3/26/19)		10,660		76,995
Software — 0.0%
Bankruptcy Management Solutions, Inc. (Expires 9/28/17)		56		—
Total Warrants — 0.1%				76,995
Total Long-Term Investments (Cost — $116,637,968) — 123.2%				123,631,415
Short-Term Securities
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.11% (l)(m)		308,844		308,844
Total Short-Term Securities (Cost — $308,844) — 0.3%				308,844

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012	95

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

Options Purchased	Contracts		Value
Over-the-Counter Call Options — 0.0%
Marsico Parent Superholdco LLC, Strike Price USD 942.86, Expires 12/14/19, Broker Goldman Sachs & Co.		6		—
		Notional Amount (000)
Over-the-Counter Interest Rate Call Swaptions — 0.0%
Receive a fixed rate of 2.40% and pay a floating rate based on 3-month LIBOR, expires 5/11/12, Broker Citibank NA	USD	1,200	$	9,032
Over-the-Counter Interest Rate Put
Swaptions — 0.1%
Pay a fixed rate of 4.50% and receive a floating rate based on 6-month EURIBOR, Expires 9/16/13, Broker Credit Suisse Securities (USA) LLC	EUR	600		5,511
Pay a fixed rate of 4.50% and receive a floating rate based on 3-month LIBOR, Expires 2/07/17, Broker Deutsche Bank AG	USD	1,000		38,856
				44,367
Total Options Purchased (Cost — $89,464) — 0.1%				53,399
Total Investments Before Options Written (Cost — $117,036,276) — 123.6%				123,993,658
Options Written
Over-the-Counter Interest Rate Put Swaptions — (0.0)%
Receive a fixed rate of 1.75% and pay a floating rate based on 3-month LIBOR, Expires 8/23/12, Broker Deutsche Bank AG		2,400		(8,955	)
Receive a fixed rate of 6.00% and pay a floating rate based on 3-month LIBOR, Expires 2/02/17, Broker Deutsche Bank AG		2,000		(39,290	)
Total Options Written (Premiums Received — $50,160) — (0.0)%				(48,245	)
Total Investments, Net of Options Written 123.6%				123,945,413
Liabilities in Excess of Other Assets — (23.6)%				(23,667,372	)
Net Assets — 100.0%			$	100,278,041

(a)	Restricted security as to resale. As of report date the Trust held 1.9% of its net assets, with a current value of $1,892,938 in this security.
(b)	Non-income producing security.
(c)	Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(d)	Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(e)	Convertible security.
(f)	Issuer filed for bankruptcy and/or is in default of interest payments.
(g)	When-issued security. Unsettled when-issued transactions were as follows:

Counterparty	Value		Unrealized Appreciation (Depreciation)
JPMorgan Chase & Co.	$	304,619	$	(315	)
Wells Fargo Securities	$	75,750	$	750
Bank of America NA	$	569,100	$	2,163
Morgan Stanley & Co.	$	298,681	$	8,681

(h)	Represents a payment-in-kind security which may pay interest/dividends in additional par/shares.
(i)	Variable rate security. Rate shown is as of report date.
(j)	Other interests represent beneficial interests in liquidation trusts and other reorganization or private entities.
(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.
(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, 2011		Net Activity			Shares Held at February 29, 2012		Income
BlackRock Liquidity Funds, TempFund, Institutional Class		891,719		(582,875	)		308,844	$	569

(m)	Represents the current yield as of report date.
•	Financial futures contracts purchased as of February 29, 2012 were as follows:

Contracts	Issue		Exchange		Expiration		Notional Value		Unrealized Depreciation
57		2-Year US Treasury Note		Chicago Board of Trade		June 2012	$	12,553,359	$	(714	)
42		5-Year US Treasury Note		Chicago Board of Trade		June 2012	$	5,173,219		(1,604	)
10		Ultra Long US Treasury Bond		Chicago Board of Trade		June 2012	$	1,572,500		(16,666	)
Total									$	(18,984	)

• Financial futures contracts sold as of February 29, 2012 were as follows^:

Contracts	Issue		Exchange		Expiration		Notional Value		Unrealized Appreciation
34		10-Year US Treasury Note		Chicago Board of Trade		June 2012	$	4,452,406	$	13,067
10		30-Year US Treasury Bond		Chicago Board of Trade		June 2012	$	1,416,563		811
Total									$	13,878

• Foreign currency exchange contracts as of February 29, 2012 were as follows:

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
GBP	100,000	USD	158,417	Citibank NA	4/11/12	$	628
USD	103,301	GBP	65,000	Citibank NA	4/11/12		(78	)
USD	156,943	GBP	100,000	Royal Bank of Scotland Plc	4/11/12		(2,102	)
USD	945,046	GBP	616,500	UBS Securities LLC	4/11/12		(35,466	)
EUR	150,000	USD	201,950	Deutsche Bank AG	4/18/12		(2,066	)
USD	5,288,287	EUR	4,117,000	Citibank NA	4/18/12		(197,866	)
USD	158,498	EUR	120,000	Citibank NA	4/18/12		(1,409	)
USD	64,505	EUR	49,000	Deutsche Bank AG	4/18/12		(790	)
USD	377,772	EUR	290,000	Royal Bank of Scotland Plc	4/18/12		(8,671	)
USD	159,843	EUR	121,000	UBS Securities LLC	4/18/12		(1,397	)
Total						$	(249,217	)

See Notes to Financial Statements.
96	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012

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

• Credit default swaps on single-name issues — buy protection outstanding as of February 29, 2012 were as follows:

Issuer	Pay Fixed Rate			Counterparty		Expiration Date		Notional Amount (000)		Unrealized Appreciation
Republic of Hungary		1.00	%		Deutsche Bank AG		12/20/15	$	110	$	5,857
K. Hovnanian Enterprises, Inc.		5.00	%		JPMorgan Chase & Co.		12/20/15	$	250		33,633
The New York Times Co.		1.00	%		Barclays Capital, Inc.		12/20/16	$	500		107
Total										$	39,597

• Credit default swaps on single-name issues — sold protection outstanding as of February 29, 2012 were as follows:

Issuer	Receive Fixed Rate			Counterparty		Expiration Date		Issuer Credit Rating1		Notional Amount (000)2		Unrealized Appreciation (Depreciation)
Aviva USA Corp.		1.00	%		Deutsche Bank AG		5/25/12		Not Rated	$	375	$	(202	)
Assured Guaranty Corp.		5.00	%		Citibank NA		3/20/15		AA–	$	33		4,397
MetLife, Inc.		5.00	%		Deutsche Bank AG		6/20/15		A–	$	150		8,269
MetLife, Inc.		1.00	%		UBS Securities LLC		9/20/15		A–	$	175		3,984
ARAMARK Corp.		5.00	%		Goldman Sachs & Co.		6/20/16		B	$	150		7,136
ARAMARK Corp.		5.00	%		Goldman Sachs & Co.		6/20/16		B	$	150		8,079
ARAMARK Corp.		5.00	%		JPMorgan Chase & Co.		6/20/16		B	$	50		2,570
ARAMARK Corp.		5.00	%		JPMorgan Chase & Co.		6/20/16		B	$	100		5,139
ARAMARK Corp.		5.00	%		Goldman Sachs & Co.		9/20/16		B	$	150		6,774
Total												$	46,146

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

• Interest rate swaps outstanding as of February 29, 2012 were as follows:

Fixed Rate	Floating Rate		Counterparty		Expiration Date		Notional Amount (000)		Unrealized Appreciation
2.71%(3)		3-month LIBOR		Deutsche Bank AG		2/02/42	$	1,200	$	17,608

³ Trust pays fixed interest rate and receives floating 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. These definitions 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 derivative financial instruments. These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:
•	Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities
•	Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
•	Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and does not necessarily correspond to the Trust’s perceived risk of investing in those securities. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.
The following tables summarize the inputs used as of February 29, 2012 in determining the fair valuation of the Trust’s investments and derivative financial instruments:

Valuation Inputs	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments:
Common Stocks	$	162,809	$	1,892,939	$	2	$	2,055,750
Corporate Bonds		—		101,060,579		—		101,060,579
Floating Rate Loan Interests		—		14,665,460		2,928,849		17,594,309
Foreign Agency Obligations		—		211,000		—		211,000
Other Interests		—		2,480		—		2,480
Preferred Securities		206,519		1,218,185		—		1,424,704
Taxable Municipal
Bonds		—		391,896		—		391,896
US Government Sponsored Agency Securities		—		251,184		—		251,184
US Treasury Obligations		—		562,518		—		562,518
Warrants		—		76,995		—		76,995
Short-Term Securities		308,844		—		—		308,844
Total	$	678,172	$	120,333,236	$	2,928,851	$	123,940,259

Valuation Inputs	Level 1			Level 2			Level 3			Total
Derivative Financial Instruments4
Assets:
Credit contracts		—		$	85,945			—		$	85,945
Foreign currency exchange contracts		—			628			—			628
Interest rate contracts	$	13,878			71,007			—			84,885
Liabilities:
Credit contracts		—			—		$	(202	)		(202	)
Foreign currency exchange contracts		—			(249,845	)		—			(249,845	)
Interest rate contracts		(18,984	)		(48,245	)		—			(67,229	)
Total	$	(5,106	)	$	(140,510	)	$	(202	)	$	(145,818	)

⁴ 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.

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012	97

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

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

	Common Stocks		Corporate Bonds			Floating Rate Loan Interests			Other Interests			Preferred Securities			Warrants			Total
Assets/Liabilities:
Balance, as of August 31, 2011		—	$	38,005		$	3,592,743		$	95		$	79,288		$	60,209		$	3,770,340
Accrued discounts/premiums		—		156			1,661			—			—			—			1,817
Net realized gain (loss)		—		13,618			1,185			182			93,280			—			108,265
Net change in unrealized appreciation/depreciation1	$	1		(11,779	)		867			(95	)		(79,288	)		(1	)		(90,295	)
Purchases		—		—			40,401			—			—			—			40,401
Sales		—		(40,000	)		(140,133	)		(182	)		(93,280	)		—			(273,595	)
Transfers in2		1		—			—			—			—			—			1
Transfers out2		—		—			(567,875	)		—			—			(60,208	)		(628,083	)
Balance, as of February 29, 2012	$	2		—		$	2,928,849			—			—			—		$	2,928,851

1	Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations. The change in unrealized appreciation/depreciation on investments still held at February 29, 2012 was $(97,679).
2	The Trust’s policy is to recognize transfers in and transfers out as of the beginning of the period of the event or the change in circumstances that caused the event.

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

		Credit Contracts
Liabilities:
Balance, as of August 31, 2011	$	(307	)
Accrued discounts/premiums		1,210
Net realized gain (loss)		—
Net change in unrealized appreciation/depreciation3		105
Purchases		—
Issuance4		—
Sales		—
Settlements5		(1,210	)
Transfers in6		—
Transfers out6		—
Balance, as of February 29, 2012	$	(202	)

3	Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations. The change in unrealized appreciation/depreciation on derivative financial instruments still held at February 29, 2012 was $105.
4	Issuances represent upfront cash received on certain derivative financial instruments.
5	Settlements represent periodic contractual cash flows and/or cash flows to terminate certain derivative financial instruments.
6	The Trust’s policy is to recognize transfers in and transfers out as of the beginning of the period of the event or the change in circumstances that caused the transfer.

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

See Notes to Financial Statements.
98	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012

Statements of Assets and Liabilities

February 29, 2012 (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)
Assets
Investments at value — unaffiliated1	$	544,625,751	$	547,455,952	$	569,198,757	$	150,992,236
Investments at value — affiliated2		163,811		—		—		840,816
Foreign currency at value3		202,534		361,936		372,525		251,632
Cash		26,041		—		—		31
Cash pledged as collateral for financial futures contracts		—		860,000		917,000		183,000
Cash pledged as collateral for swaps		3,970,000		400,000		400,000		—
Investments sold receivable		82,971,474		12,788,012		13,161,040		3,742,722
TBA sale commitments receivable		9,811,934		—		—		—
Unrealized appreciation on swaps		923,927		643,176		662,856		—
Interest receivable		5,393,372		7,725,073		8,131,738		2,353,351
Swaps premiums paid		217,047		503,781		522,565		—
Swaps receivable		23,707		149,841		152,660		—
Principal paydown receivable		8,044		501,646		597,236		145,734
Unrealized appreciation on foreign currency exchange contracts		209,363		8,857		7,223		—
Margin variation receivable		—		62,650		66,850		13,300
Dividends receivable — unaffiliated		—		34,875		16,421		2,200
Prepaid expenses		29,118		62,834		8,943		10,360
Other assets		46,800		174,843		181,305		8,944
Total assets		648,622,923		571,733,476		594,397,119		158,544,326
Liabilities
Bank overdraft		—		466,920		245,533		—
Reverse repurchase agreements		157,136,074		—		—		—
Investments purchased payable		82,283,975		28,263,952		29,371,924		7,619,903
Loan payable		—		131,000,000		133,000,000		28,000,000
Cash held as collateral for reverse repurchase agreements		16,000		—		—		—
TBA sale commitments at value4		9,813,953		—		—		—
Unrealized depreciation on swaps		666,328		112,207		119,959		—
Options written at value5		3,990,457		25,013		25,955		7,250
Swaps payable		108,233		17,020		18,040		—
Swaps premiums received		534,442		364,860		385,790		—
Investment advisory fees payable		323,144		251,300		304,243		86,949
Margin variation payable		5,893		—		—		—
Interest expense payable		56,687		115,851		116,814		16,945
Unrealized depreciation on foreign currency exchange contracts		562,330		1,448,067		1,500,303		283,739
Income dividends payable		52,506		—		—		—
Officer’s and Trustees’ fees payable		68,991		86,695		85,279		11,440
Deferred income		—		117,194		123,177		36,081
Other accrued expenses payable		96,562		288,517		426,927		75,002
Other liabilities		329,546		—		—		—
Total liabilities		256,045,121		162,557,596		165,723,944		36,137,309
Net Assets	$	392,577,802	$	409,175,880	$	428,673,175	$	122,407,017
1 Investments at cost — unaffiliated	$	519,012,926	$	534,151,821	$	556,169,846	$	148,680,124
2 Investments at cost — affiliated	$	163,811		—		—	$	840,816
3 Foreign currency at cost	$	201,991	$	359,267	$	366,559	$	249,559
4 Proceeds from TBA sale commitments	$	9,811,934		—		—		—
5 Premiums received	$	4,225,523	$	123,355	$	128,039	$	36,987

* Consolidated Statements of Assets and Liabilities.

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012	99

Statements of Assets and Liabilities (concluded)

February 29, 2012 (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)
Net Assets Consist of
Paid-in capital6,7,8	$	378,671,939		$	470,118,921		$	505,552,795		$	160,626,815
Undistributed net investment income		4,582,677			2,332,739			3,582,027			1,085,651
Accumulated net realized loss		(16,529,678	)		(75,398,403	)		(92,241,782	)		(41,298,548	)
Net unrealized appreciation/depreciation		25,852,864			12,122,623			11,780,135			1,993,099
Net Assets	$	392,577,802		$	409,175,880		$	428,673,175		$	122,407,017
Net asset value	$	14.53		$	12.41		$	12.13		$	2.24
6 Par value per share	$	0.001		$	0.100		$	0.100			—
7 Shares outstanding		27,023,027			32,969,525			35,332,526			54,672,479
8 Shares authorized		unlimited			200 million			200 million			unlimited

* Consolidated Statements of Assets and Liabilities.

See Notes to Financial Statements.
100	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012

Statements of Assets and Liabilities

February 29, 2012 (Unaudited)	BlackRock High Yield Trust (BHY)		BlackRock Income Opportunity Trust, Inc. (BNA)		BlackRock Income Trust, Inc. (BKT)		BlackRock Strategic Bond Trust (BHD)
Assets
Investments at value — unaffiliated1	$	58,692,832	$	554,323,754	$	852,598,733	$	123,684,814
Investments at value — affiliated2		980,802		1,301,628		2,011,437		308,844
Foreign currency at value3		1,380		165,125		—		109,148
Cash		—		25,599		24,438		—
Cash pledged as collateral for financial futures contracts		—		763,000		2,640,000		44,660
Cash pledged as collateral for swaps		—		4,300,000		8,605,000		—
Cash pledged as collateral for reverse repurchase agreements		—		—		330,000		—
Investments sold receivable		1,783,021		80,618,255		10,583,505		2,984,062
TBA sale commitments receivable		—		10,884,848		15,827,469		—
Unrealized appreciation on swaps		191,926		998,643		41,918,659		103,553
Interest receivable		887,906		5,578,273		3,934,337		1,756,475
Swaps premiums paid		69,435		217,142		121,668		130,833
Swaps receivable		32,378		39,715		2,332,174		9,433
Principal paydown receivable		57,813		8,044		389,082		109,944
Margin variation receivable		—		44,549		848,928		2,211
Unrealized appreciation on foreign currency exchange contracts		407		208,280		—		628
Dividends receivable — unaffiliated		1,800		—		354		787
Prepaid expenses		1,901		16,136		16,667		2,615
Other assets		10,040		76,733		86,901		7,921
Total assets		62,711,641		659,569,724		942,269,352		129,255,928
Liabilities
Reverse repurchase agreements		—		165,978,892		163,691,551		—
Investments purchased payable		4,136,637		84,795,017		186,255,698		3,443,143
Loan payable		12,000,000		—		—		25,000,000
Cash held as collateral for swaps		—		—		600,000		—
TBA sale commitments at value4		—		10,886,484		15,842,735		—
Unrealized depreciation on swaps		6,107		628,935		40,570,424		202
Options written at value5		—		4,001,417		1,929,347		48,245
Borrowed bonds at value6		—		—		18,449,439		—
Swaps payable		3,020		106,812		3,282,710		9,242
Swaps premiums received		200,348		526,162		1,280,951		14,970
Investment advisory fees payable		37,786		184,371		262,070		71,814
Interest expense payable		1,365		68,030		164,769		14,498
Unrealized depreciation on foreign currency exchange contracts		15,017		478,240		—		249,845
Income dividends payable		—		54,023		119,015		10,342
Officer’s and Trustees’ fees payable		11,389		78,752		89,237		10,347
Deferred income		13,158		—		—		29,038
Administration fees payable		4,200		30,732		60,533		—
Other accrued expenses payable		43,065		150,429		259,034		76,201
Other liabilities		—		1,169,558		—		—
Total liabilities		16,472,092		269,137,854		432,857,513		28,977,887
Net Assets	$	46,239,549	$	390,431,870	$	509,411,839	$	100,278,041
1 Investments at cost — unaffiliated	$	56,182,235	$	527,552,459	$	825,771,509	$	116,727,432
2 Investments at cost — affiliated	$	980,802	$	1,301,628	$	2,011,437	$	308,844
3 Foreign currency at cost	$	1,366	$	164,678		—	$	108,522
4 Proceeds from TBA sale commitments		—	$	10,884,848	$	15,827,469		—
3 Premiums received		—	$	4,237,733	$	706,515	$	50,160
6 Proceeds from borrowed bonds — cost		—		—	$	17,950,636		—

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012	101

Statements of Assets and Liabilities (concluded)

February 29, 2012 (Unaudited)	BlackRock High Yield Trust (BHY)			BlackRock Income Opportunity Trust, Inc. (BNA)			BlackRock Income Trust, Inc. (BKT)			BlackRock Strategic Bond Trust (BHD)
Net Assets Consist of
Paid-in capital7,8,9	$	58,521,452		$	402,924,496		$	478,542,248		$	98,450,652
Cost of shares held in treasury10		—			(17,377,850	)		—			—
Undistributed net investment income (loss) (distributions in excess of net investment income)		(147,925	)		4,964,408			(1,761,219	)		284,229
Undistributed net realized gain (accumulated net realized loss)		(14,816,607	)		(27,327,848	)		3,451,205			(5,267,473	)
Net unrealized appreciation/depreciation		2,682,629			27,248,664			29,179,605			6,810,633
Net Assets	$	46,239,549		$	390,431,870		$	509,411,839		$	100,278,041
Net asset value	$	7.19		$	11.33		$	7.97		$	14.21
7 Par value per share	$	0.001		$	0.01		$	0.01		$	0.001
8 Shares outstanding		6,428,284			34,456,370			63,942,535			7,058,401
9 Shares authorized		unlimited			200 million			200 million			unlimited
10 Shares held in treasury		—			1,757,400			—			—

See Notes to Financial Statements.
102	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012

Statements of Operations

Six Months Ended February 29, 2012 (Unaudited)	BlackRock Core Bond Trust (BHK)			BlackRock Corporate High Yield Fund V, Inc. (HYV)2			BlackRock Corporate High Yield Fund VI, Inc. (HYT)2			BlackRock High Income Shares (HIS)
Investment Income
Interest	$	13,703,692		$	19,386,469		$	20,295,721		$	6,146,421
Dividends — unaffiliated		32,453			524,118			513,382			105,885
Foreign taxes withheld		(4,423	)		(25,446	)		(28,211	)		(463	)
Dividends — affiliated		4,189			3,734			3,961			655
Total income		13,735,911			19,888,875			20,784,853			6,252,498
Expenses
Investment advisory		1,377,788			1,507,361			1,829,155			536,502
Borrowing costs1		—			157,545			287,672			56,223
Professional		61,506			92,801			107,880			37,350
Custodian		84,539			31,284			38,767			12,869
Printing		44,981			27,549			36,586			19,138
Accounting services		46,694			48,150			75,325			26,984
Officer and Trustees		20,142			26,455			24,718			5,941
Transfer agent		6,335			28,707			35,950			16,316
Registration		4,648			5,320			7,053			8,078
Miscellaneous		31,206			59,789			51,955			7,914
Total expenses excluding interest expense		1,677,839			1,984,961			2,495,061			727,315
Interest expense		98,065			575,503			579,463			123,291
Total expenses		1,775,904			2,560,464			3,074,524			850,606
Less fees waived by advisor		(1,242	)		(251	)		(280	)		(182	)
Total expenses after fees waived		1,774,662			2,560,213			3,074,244			850,424
Net investment income		11,961,249			17,328,662			17,710,609			5,402,074
Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:
Investments		5,700,028			(7,422,842	)		(7,951,066	)		(2,101,711	)
Financial futures contracts		(488,853	)		(3,965,704	)		(4,093,471	)		(355,406	)
Foreign currency transactions		1,291,618			4,242,701			3,686,985			794,255
Options written		(1,299,200	)		1,037,615			1,115,059			66,268
Swaps		2,373,733			(235,126	)		(260,392	)		—
Borrowed bonds		198,493			—			—			—
		7,775,819			(6,343,356	)		(7,502,885	)		(1,596,594	)
Net change in unrealized appreciation/depreciation on:
Investments		11,315,471			28,176,913			29,114,890			6,127,192
Financial futures contracts		570,814			1,980,740			1,905,233			119,132
Foreign currency transactions		(352,626	)		(1,250,641	)		(1,340,227	)		(247,672	)
Options written		2,754,706			528,155			536,217			29,737
Swaps		(2,879,831	)		562,508			572,710			—
		11,408,534			29,997,675			30,788,823			6,028,389
Total realized and unrealized gain		19,184,353			23,654,319			23,285,938			4,431,795
Net Increase in Net Assets Resulting from Operations	$	31,145,602		$	40,982,981		$	40,996,547		$	9,833,869

1	See Note 6 of the Notes to Financial Statements for details of short-term borrowings.
2	Consolidated Statement of Operations.

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012	103

Statements of Operations

Six Months Ended February 29, 2012 (Unaudited)	BlackRock High Yield Trust (BHY)			BlackRock Income Opportunity Trust, Inc. (BNA)			BlackRock Income Trust, Inc. (BKT)			BlackRock Strategic Bond Trust (BHD)
Investment Income
Interest	$	1,968,090		$	13,178,562		$	15,589,898		$	4,225,515
Dividends — unaffiliated		32,622			34,719			—			50,374
Foreign taxes withheld		—			(955	)		—			(112	)
Dividends — affiliated		573			5,866			7,075			533
Total income		2,001,285			13,218,192			15,596,973			4,276,310
Expenses
Investment advisory		220,473			1,133,724			1,652,248			439,324
Administration		24,497			188,954			381,288			—
Borrowing costs1		9,465			—			—			35,741
Professional		31,231			53,963			74,846			36,129
Custodian		8,735			53,624			—			7,466
Printing		8,281			34,525			46,782			13,047
Accounting services		16,711			61,105			49,643			29,124
Officer and Trustees		2,313			17,963			39,765			5,766
Transfer agent		7,595			10,914			66,142			7,466
Registration		4,712			5,571			12,543			3,702
Miscellaneous		3,446			23,164			35,126			9,776
Total expenses excluding interest expense		337,459			1,583,507			2,358,383			587,541
Interest expense		26,738			95,802			198,057			106,339
Total expenses		364,197			1,679,309			2,556,440			693,880
Less fees waived by advisor		(127	)		(1,573	)		(2,449	)		(133	)
Total expenses after fees waived		364,070			1,677,736			2,553,991			693,747
Net investment income		1,637,215			11,540,456			13,042,982			3,582,563
Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:
Investments		(191,639	)		4,792,702			6,541,724			(313,281	)
Financial futures contracts		—			(397,053	)		(5,092,718	)		(57,843	)
Foreign currency transactions		(2,883	)		935,520			—			650,049
Option written		—			(629,788	)		894,514			—
Swaps		216,101			1,847,870			249,984			135,757
Borrowed bonds		—			158,605			325,151			—
		21,579			6,707,856			2,918,655			414,682
Net change in unrealized appreciation/depreciation on:
Investments		2,578,080			11,882,444			1,336,078			5,410,302
Financial futures contracts		—			393,611			(31,774	)		(11,359	)
Foreign currency transactions		(13,787	)		(250,064	)		—			(220,117	)
Option written		—			2,577,109			(396,979	)		1,915
Swaps		44,601			(2,706,648	)		(1,292,938	)		46,113
Borrowed bonds		—			—			(25,860	)		—
Interest rate floors		—			—			(132,104	)		—
		2,608,894			11,896,452			(543,577	)		5,226,854
Total realized and unrealized gain		2,630,473			18,604,308			2,375,078			5,641,536
Net Increase in Net Assets Resulting from Operations	$	4,267,688		$	30,144,764		$	15,418,060		$	9,224,099

¹ See Note 6 of the Notes to Financial Statements for details of short-term borrowings.

See Notes to Financial Statements.
104	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012

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 29, 2012 (Unaudited)			Year Ended August 31, 2011			Six Months Ended February 29, 2012 (Unaudited)1			Year Ended August 31, 2011
Operations
Net investment income	$	11,961,249		$	22,314,162		$	17,328,662		$	35,857,110
Net realized gain (loss)		7,775,819			(647,293	)		(6,343,356	)		14,918,241
Net change in unrealized appreciation/depreciation		11,408,534			(9,184,462	)		29,997,675			(12,682,377	)
Net increase in net assets resulting from operations		31,145,602			12,482,407			40,982,981			38,092,974
Dividends to Shareholders From
Net investment income		(10,863,257	)		(23,726,515	)		(17,793,402	)		(35,008,792	)
Capital Share Transactions
Reinvestment of dividends		—			—			298,872			—
Net Assets
Total increase (decrease) in net assets		20,282,345			(11,244,108	)		23,488,451			3,084,182
Beginning of period		372,295,457			383,539,565			385,687,429			382,603,247
End of period	$	392,577,802		$	372,295,457		$	409,175,880		$	385,687,429
Undistributed net investment income	$	4,582,677		$	3,484,685		$	2,332,739		$	2,797,479
	BlackRock Corporate High Yield Fund VI, Inc. (HYT)						BlackRock High Income Shares (HIS)
Increase (Decrease) in Net Assets:	Six Months Ended February 29, 2012 (Unaudited)1			Year Ended August 31, 2011			Six Months Ended February 29, 2012 (Unaudited)			Year Ended August 31, 2011
Operations
Net investment income	$	17,710,609		$	37,473,827		$	5,402,074		$	10,833,774
Net realized gain (loss)		(7,502,885	)		14,913,681			(1,596,594	)		2,844,466
Net change in unrealized appreciation/depreciation		30,788,823			(13,209,144	)		6,028,389			(3,103,981	)
Net increase in net assets resulting from operations		40,996,547			39,178,364			9,833,869			10,574,259
Dividends to Shareholders From
Net investment income		(18,464,091	)		(35,241,068	)		(6,347,498	)		(11,407,404	)
Capital Share Transactions
Reinvestment of dividends		443,613			—			112,100			—
Net Assets
Total increase (decrease) in net assets		22,976,069			3,937,296			3,598,471			(833,145	)
Beginning of period		405,697,106			401,759,810			118,808,546			119,641,691
End of period	$	428,673,175		$	405,697,106		$	122,407,017		$	118,808,546
Undistributed net investment income	$	3,582,027		$	4,335,509		$	1,085,651		$	2,031,075

¹ Consolidated Statement of Changes in Net Assets.

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012	105

Statements of Changes in Net Assets

	BlackRock High Yield Trust (BHY)						BlackRock Corporate Income Opportunity Trust (BNA)
Increase (Decrease) in Net Assets:	Six Months Ended February 29, 2012 (Unaudited)			Year Ended August 31, 2011			Six Months Ended February 29, 2012 (Unaudited)			Year Ended August 31, 2011
Operations
Net investment income	$	1,637,215		$	3,268,780		$	11,540,456		$	21,766,357
Net realized gain (loss)		21,579			(862,713	)		6,707,856			2,874,735
Net change in unrealized appreciation/depreciation		2,608,894			1,613,207			11,896,452			(12,557,938	)
Net increase in net assets resulting from operations		4,267,688			4,019,274			30,144,764			12,083,154
Dividends and Distributions to Shareholders From
Net investment income		(1,677,622	)		(3,278,764	)		(10,888,214	)		(22,287,310	)
Tax return of capital		—			(76,404	)		—			—
Decrease in net assets resulting from dividends and distributions to shareholders		(1,677,622	)		(3,355,168	)		(10,888,214	)		(22,287,310	)
Capital Share Transactions
Reinvestment of dividends		5,245			—			—			—
Net Assets
Total increase (decrease) in net assets		2,595,311			664,106			19,256,550			(10,204,156	)
Beginning of period		43,644,238			42,980,132			371,175,320			381,379,476
End of period	$	46,239,549		$	43,644,238		$	390,431,870		$	371,175,320
Undistributed (distribution in excess of) net investment income	$	(147,925	)	$	(107,518	)	$	4,964,408		$	4,312,166
	BlackRock Income Trust, Inc. (BKT)						BlackRock Strategic Bond Trust (BHD)
Increase (Decrease) in Net Assets:	Six Months Ended February 29, 2012 (Unaudited)			Year Ended August 31, 2011			Six Months Ended February 29, 2012 (Unaudited)			Year Ended August 31, 2011
Operations
Net investment income	$	13,042,982		$	22,089,670		$	3,582,563		$	7,484,893
Net realized gain (loss)		2,918,655			(866,088	)		414,682			1,355,512
Net change in unrealized appreciation/depreciation		(543,577	)		13,053,505			5,226,854			(1,662,468	)
Net increase in net assets resulting from operations		15,418,060			34,277,087			9,224,099			7,177,937
Dividends to Shareholders From
Net investment income		(14,770,728	)		(21,772,433	)		(4,072,697	)		(7,845,469	)
Net Assets
Total increase (decrease) in net assets		647,332			12,504,654			5,151,402			(667,532	)
Beginning of period		508,764,507			496,259,853			95,126,639			95,794,171
End of period	$	509,411,839		$	508,764,507		$	100,278,041		$	95,126,639
Undistributed (distribution in excess of) net investment income	$	(1,761,219	)	$	(33,473	)	$	284,229		$	774,363

See Notes to Financial Statements.
106	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012

Statements of Cash Flows

Six Months Ended February 29, 2012 (Unaudited)	BlackRock Core Bond Trust (BHK)			BlackRock Corporate High Yield Fund V, Inc. (HYV)1			BlackRock Corporate High Yield Fund VI, Inc. (HYT)1			BlackRock High Income Shares (HIS)
Cash Provided by Operating Activities
Net increase in net assets resulting from operations	$	31,145,602		$	40,982,981		$	40,996,547		$	9,833,869
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities:
Decrease in interest receivable		220,744			535,877			604,542			154,258
Decrease in swaps receivable		506,613			27,721			24,538			—
Increase in other assets		(3,053	)		(88,889	)		(91,377	)		(548	)
(Increase) decrease in prepaid expenses		(7,050	)		—			56,225			15,014
Decrease in commitment fees receivable		3,731			—			—			—
Decrease in dividends receivable — unaffiliated		10,384			1,220			847			6,506
Increase in margin variation receivable		—			(62,650	)		(66,850	)		(13,300	)
Decrease in dividends receivable — affiliated		266			392			382			72
Decrease in cash pledged as collateral for financial futures contracts		765,000			2,165,000			2,093,000			403,000
Decrease in cash pledged as collateral in connection with options written		—			906,360			952,770			—
Increase in cash pledged as collateral for swaps		(1,970,000	)		(400,000	)		(400,000	)		—
Increase in deferred income		—			95,256			100,158			29,350
Increase (decrease) in investment advisory fees payable		76,862			(12,599	)		(16,341	)		(7,033	)
Decrease in interest expense payable		(52,151	)		(9,851	)		(9,737	)		(27,998	)
Decrease in other liabilities		237,774			—			—			—
Increase (decrease) in other accrued expenses payable		(161,197	)		(12,858	)		133,706			(70,831	)
Decrease in margin variation payable		(199,470	)		(261,673	)		(356,378	)		(50,368	)
Decrease in swaps payable		(5,052	)		(487,229	)		(479,851	)		—
Increase (decrease) in Officer’s and Trustees’ fees payable		22,408			(91,058	)		14,419			557
Decrease in cash held as collateral for swaps		(700,000	)		—			—			—
Decrease in cash held as collateral for reverse repurchase agreements		(1,779,000	)		—			—			—
Net periodic and termination payments of swaps		532,656			522,466			552,734			—
Net realized and unrealized gain on investments		(15,677,801	)		(21,604,329	)		(22,023,004	)		(3,842,088	)
Amortization of premium and accretion of discount on investments		(1,466,113	)		21,333			(44,928	)		(298,485	)
Premiums received from options written		7,433,443			1,103,619			1,211,749			164,410
Proceeds from sales of long-term investments		964,225,749			133,773,077			140,473,378			40,639,408
Purchases of long-term investments		(986,486,045	)		(142,140,574	)		(148,638,714	)		(39,365,626	)
Proceeds from borrowed bond transactions		35,247,804			—			—			—
Payments for borrowed bond transactions		(20,160,584	)		—			—			—
Net proceeds from sales (purchases) of short-term securities		4,547,876			1,171,689			941,235			(18,364	)
Premiums paid on closing options written		(9,071,630	)		(904,284	)		(1,017,357	)		(61,155	)
Cash provided by operating activities		7,237,766			15,230,997			15,011,693			7,490,648
Cash Used for Financing Activities
Cash receipts from borrowings		261,483,199			52,000,000			59,000,000			13,000,000
Cash payments on borrowings		(257,960,074	)		(50,000,000	)		(56,000,000	)		(14,000,000	)
Cash dividends paid		(10,861,837	)		(17,568,915	)		(18,115,490	)		(6,261,344	)
Decrease in bank overdraft		—			466,920			245,533			—
Cash used for financing activities		(7,338,712	)		(15,101,995	)		(14,869,957	)		(7,261,344	)
Cash Impact from Foreign Exchange Fluctuations
Cash impact from foreign exchange fluctuations		(262	)		2,462			6,441			1,885
Cash and Foreign Currency
Net increase (decrease) in cash and foreign currency		(101,208	)		131,464			148,177			231,189
Cash and foreign currency at beginning of period		329,783			230,472			224,348			20,474
Cash and foreign currency at end of period	$	228,575		$	361,936		$	372,525		$	251,663
Cash Flow Information
Cash paid during the period for interest	$	150,216		$	585,354		$	589,200		$	151,289
Noncash Financing Activities
Capital shares issued in reinvestments of dividends		—		$	298,872		$	443,613		$	112,100

1	Consolidated Statement of Cash Flows.
	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.
	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012	107

Statements of Cash Flows

Six Months Ended February 29, 2012 (Unaudited)	BlackRock High Yield Trust (BHY)			BlackRock Income Opportunity Trust, Inc. (BNA)			BlackRock Income Trust, Inc. (BKT)			BlackRock Strategic Bond Trust (BHD)
Cash Provided by (Used for) Operating Activities
Net increase in net assets resulting from operations	$	4,267,688		$	30,144,764		$	15,418,060		$	9,224,099
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities:
(Increase) decrease in interest receivable		(70,677	)		280,944			82,014			59,606
(Increase) decrease in swaps receivable		226,581			541,534			(48,555	)		(1,254	)
Increase in other assets		(750	)		(9,877	)		(5,025	)		(473	)
Decrease in prepaid expenses		6,969			6,301			9,255			17,190
(Increase) decrease in dividends receivable — unaffiliated		678			—			336			(787	)
Increase in margin variation receivable		—			(44,549	)		(190,670	)		(2,211	)
Decrease in dividends receivable — affiliated		73			564			—			58
Increase in cash held as collateral for financial futures contracts		—			—			—			(21,000	)
(Increase) decrease in cash pledged as collateral for financial futures contracts		—			(418,000	)		705,000			—
Increase in cash pledged as collateral in connection with reverse
repurchase agreements		—			—			(330,000	)		—
Increase in cash pledged as collateral for swaps		—			(1,200,000	)		(1,760,000	)		—
Increase in deferred income		13,158			—			—			29,038
Decrease in cash held as collateral for swaps		—			—			600,000			—
Increase (decrease) in investment advisory fees payable		18,899			55,707			108,161			(3,573	)
Decrease in interest expense payable		(4,335	)		(45,887	)		(7,279	)		(1,494	)
Decrease in other affiliates payable		—			—			—			(2,056	)
Increase in other liabilities		—			1,169,558			—			—
Decrease in administration fees payable		(17,197	)		(62,081	)		(130,466	)		—
Decrease in other accrued expenses payable		(56,243	)		(379,763	)		(104,691	)		(80,137	)
Decrease in margin variation payable		—			(201,161	)		—			(6,188	)
Increase (decrease) in swaps payable		992			(36,683	)		28,358			(2,548	)
Increase in Officer’s and Trustees’ fees payable		920			6,505			5,096			2,105
Net periodic and termination payments of swaps		(66,568	)		279,384			(74,894	)		(24,363	)
Net realized and unrealized gain on investments		(2,415,100	)		(16,694,138	)		(7,244,561	)		(4,903,679	)
Amortization of premium and accretion of discount on investments		4,010			(178,613	)		3,829,752			1,629
Premiums received from options written		—			7,448,324			612,468			50,160
Proceeds from sales of long-term investments		12,364,219			955,015,224			1,860,412,652			27,579,825
Purchases of long-term investments		(18,038,274	)		(987,783,135	)		(1,791,501,250	)		(29,329,396	)
Proceeds from borrowed bond transactions		—			48,407,777			38,969,154			—
Payments for borrowed bond transactions		—			(30,839,360	)		(25,849,756	)		—
Net proceeds from sales (purchases) of short-term securities		(559,457	)		2,404,665			(8,589,512	)		582,875
Premiums paid on closing options written		—			(7,985,925	)		(254,183	)		—
Cash provided by (used for) operating activities		(4,324,414	)		(117,921	)		84,689,464			3,167,426
Cash Provided by (Used for) Financing Activities
Cash receipts from borrowings		8,000,000			270,683,969			335,305,511			9,000,000
Cash payments on borrowings		(2,000,000	)		(259,588,369	)		(405,290,368	)		(8,000,000	)
Cash dividends paid		(1,674,220	)		(10,885,602	)		(14,739,949	)		(4,072,822	)
Decrease in bank overdraft		—			(3,771	)		—			—
Cash provided by (used for) financing activities		4,325,780			206,227			(84,724,806	)		(3,072,822	)
Cash Impact from Foreign Exchange Fluctuations
Cash impact from foreign exchange fluctuations		14			(2,021	)		—			603
Cash and Foreign Currency
Net increase (decrease) in cash and foreign currency		1,380			86,285			(35,342	)		95,207
Cash and foreign currency at beginning of period		—			104,439			59,780			13,941
Cash and foreign currency at end of period	$	1,380		$	190,724		$	24,438		$	109,148
Cash Flow Information
Cash paid during the period for interest	$	31,073		$	141,689		$	205,336		$	1,494
Noncash Financing Activities
Capital shares issued in reinvestments of dividends	$	5,245			—			—			—

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 29, 2012

Financial Highlights BlackRock Core Bond Trust (BHK)

	Six Months Ended February 29, 2012 (Unaudited)												Period November 1, 2007 to August 31, 2008
				Year Ended August 31,												Year Ended October 31,
				2011			2010			2009						2007			2006
Per Share Operating Performance
Net asset value, beginning of period	$	13.78		$	14.19		$	12.56		$	12.81		$	13.63		$	13.82		$	14.27
Net investment income		0.44	1		0.83	1		0.87	1		0.80	1		0.50	1		0.74			0.66
Net realized and unrealized gain (loss)		0.71			(0.36	)		1.76			(0.28	)		(0.69	)		(0.13	)		0.11
Net increase (decrease) from investment operations		1.15			0.47			2.63			0.52			(0.19	)		0.61			0.77
Dividends and distributions from:
Net investment income		(0.40	)		(0.88	)		(1.00	)		(0.77	)		(0.61	)		(0.61	)		(0.93	)
Net realized gain		—			—			—			—			—			—			(0.29	)
Tax return of capital		—			—			—			—			(0.02	)		(0.19	)		—
Total dividends and distributions		(0.40	)		(0.88	)		(1.00	)		(0.77	)		(0.63	)		(0.80	)		(1.22	)
Net asset value, end of period	$	14.53		$	13.78		$	14.19		$	12.56		$	12.81		$	13.63		$	13.82
Market price, end of period	$	14.19		$	12.69		$	13.92		$	11.98		$	11.51		$	12.23		$	12.86
Total Investment Return2
Based on net asset value		8.63	%3		4.02	%		22.44	%		5.28	%		(1.00	)%3		5.04	%		6.20	%
Based on market price		15.20	%3		(2.35	)%		25.93	%		11.76	%		(0.87	)%3		1.29	%		3.07	%
Ratios to Average Net Assets
Total expenses		0.93	%4		1.02	%		1.18	%		1.06	%		2.29	%4		1.60	%		1.08	%
Total expenses after fees waived and paid indirectly		0.93	%4		1.02	%		1.18	%		1.06	%		2.29	%4		1.60	%		1.08	%
Total expenses after fees waived and paid indirectly and excluding interest expense		0.88	%4		0.93	%		0.95	%		0.83	%		0.89	%4		0.78	%		0.77	%
Net investment income		6.30	%4		6.05	%		6.62	%		7.09	%		4.55	%4		5.36	%		4.78	%
Supplemental Data
Net assets, end of period (000)	$	392,578		$	372,295		$	383,540		$	339,524		$	346,177		$	368,335		$	373,518
Borrowings outstanding, end of period (000)	$	157,136		$	152,301		$	168,938		$	74,572		$	107,690		$	103,354		$	3,911
Average borrowings outstanding, during the period (000)	$	123,070		$	151,080		$	162,760		$	73,467		$	134,784		$	44,786		$	25,340
Portfolio turnover		188	%5		824	%6		641	%7		315	%8		598	%9		122	%		88	%
Asset coverage, end of period per $1,000	$	3,498		$	3,444		$	3,270		$	5,553		$	4,215		$	4,564		$	96,502

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 139%.
6	Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 544%.
7	Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 534%.
8	Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 184%.
9	Includes TBA transactions. Excluding these transactions, the portfolio turnover would have been 337%.

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012	109

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

	Six Months Ended February 29, 2012 (Unaudited)1
				Year Ended August 31,
				2011			2010			2009			2008			2007
Per Share Operating Performance
Net asset value, beginning of period	$	11.71		$	11.61		$	9.71		$	11.94		$	13.83		$	14.10
Net investment income2		0.53			1.09			1.06			1.07			1.18			1.20
Net realized and unrealized gain (loss)		0.71			0.07			1.86			(2.10	)		(1.85	)		(0.33	)
Net increase (decrease) from investment operations		1.24			1.16			2.92			(1.03	)		(0.67	)		0.87
Dividends and distributions from:
Net investment income		(0.54	)		(1.06	)		(1.02	)		(1.20	)		(1.17	)		(1.14	)
Net realized gain		—			—			—			—			(0.05	)		—
Total dividends and distributions		(0.54	)		(1.06	)		(1.02	)		(1.20	)		(1.22	)		(1.14	)
Net asset value, end of period	$	12.41		$	11.71		$	11.61		$	9.71		$	11.94		$	13.83
Market price, end of period	$	12.88		$	11.55		$	11.40		$	9.32		$	10.15		$	12.24
Total Investment Return3
Based on net asset value		11.05	%4		10.29	%		31.40	%		(3.83	)%		(3.99	)%		6.76	%
Based on market price		16.85	%4		10.79	%		34.42	%		8.59	%		(7.78	)%		4.00	%
Ratios to Average Net Assets
Total expenses		1.34	%5		1.34	%		1.26	%		1.84	%		2.11	%		3.20	%
Total expenses after fees waived and paid indirectly		1.34	%5		1.34	%		1.26	%		1.84	%		2.11	%		3.20	%
Total expenses after fees waived and paid indirectly and excluding interest expense		1.04	%5		1.02	%		0.99	%		1.16	%		0.97	%		0.99	%
Net investment income		9.06	%5		8.82	%		9.52	%		13.00	%		9.16	%	��	8.23	%
Supplemental Data
Net assets, end of period (000)	$	409,176		$	385,687		$	382,603		$	320,045		$	393,389		$	455,710
Borrowings outstanding, end of period (000)	$	131,000		$	129,000		$	92,000		$	54,000		$	94,700		$	127,700
Average borrowings outstanding, during the period (000)	$	120,489		$	119,652		$	79,427		$	65,403		$	106,140		$	188,373
Portfolio turnover		29	%		87	%		90	%		65	%		46	%		51	%
Asset coverage, end of period per $1,000	$	4,123		$	3,990		$	5,159		$	6,927		$	5,154		$	4,569

1	Consolidated Financial Highlights.
2	Based on average shares outstanding.
3	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.
4	Aggregate total investment return.
5	Annualized.

See Notes to Financial Statements.
110	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012

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

	Six Months Ended February 29, 2012 (Unaudited)1
				Year Ended August 31,
				2011			2010			2009			2008			2007
Per Share Operating Performance
Net asset value, beginning of period	$	11.49		$	11.38		$	9.68		$	11.89		$	13.81		$	14.12
Net investment income2		0.50			1.06			1.05			1.05			1.16			1.18
Net realized and unrealized gain (loss)		0.66			0.05			1.67			(2.07	)		(1.87	)		(0.39	)
Net increase (decrease) from investment operations		1.16			1.11			2.72			(1.02	)		(0.71	)		0.79
Dividends and distributions from:
Net investment income		(0.52	)		(1.00	)		(1.02	)		(1.19	)		(1.21	)		(1.10	)
Net realized gain		—			—			—			—			—			—
Total dividends and distributions		(0.52	)		(1.00	)		(1.02	)		(1.19	)		(1.21	)		(1.10	)
Net asset value, end of period	$	12.13		$	11.49		$	11.38		$	9.68		$	11.89		$	13.81
Market price, end of period	$	12.44		$	11.21		$	11.19		$	9.47		$	10.14		$	12.15
Total Investment Return3
Based on net asset value		10.55	%4		9.95	%		29.26	%		(4.03	)%		(4.30	)%		6.29	%
Based on market price		16.21	%4		9.09	%		29.92	%		10.09	%		(7.24	)%		5.80	%
Ratios to Average Net Assets
Total expenses		1.53	%5		1.41	%		1.34	%		2.01	%		2.24	%		3.35	%
Total expenses after fees waived and paid indirectly		1.53	%5		1.41	%		1.34	%		2.01	%		2.24	%		3.35	%
Total expenses after fees waived and paid indirectly and excluding interest expense		1.24	%5		1.12	%		1.09	%		1.28	%		1.10	%		1.12	%
Net investment income		8.81	%5		8.80	%		9.52	%		12.82	%		9.02	%		8.03	%
Supplemental Data
Net assets, end of period (000)	$	428,673		$	405,697		$	401,760		$	341,415		$	419,502		$	487,251
Borrowings outstanding, end of period (000)	$	133,000		$	130,000		$	89,000		$	58,000		$	110,900		$	135,900
Average borrowings outstanding, during the period (000)	$	121,319		$	115,512		$	76,356		$	73,784		$	113,996		$	202,705
Portfolio turnover		29	%		87	%		85	%		60	%		45	%		51	%
Asset coverage, end of period per $1,000	$	4,223		$	4,121		$	5,514		$	6,886		$	4,783		$	4,585

1	Consolidated Financial Highlights.
2	Based on average shares outstanding.
3	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.
4	Aggregate total investment return.
5	Annualized.

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012	111

Financial Highlights BlackRock High Income Shares (HIS)

	Six Months Ended February 29, 2012 (Unaudited)												Period January 1, 2008 to August 31, 2008
				Year Ended August 31,												Year Ended December 31,
				2011			2010			2009						2007			2006
Per Share Operating Performance
Net asset value, beginning of period	$	2.18		$	2.19		$	1.85		$	2.23		$	2.47		$	2.68		$	2.61
Net investment income		0.09	1		0.20	1		0.20	1		0.19	1		0.15	1		0.24			0.22
Net realized and unrealized gain (loss)		0.09			—			0.31			(0.36	)		(0.26	)		(0.21	)		0.08
Net increase (decrease) from investment operations		0.18			0.20			0.51			(0.17	)		(0.11	)		0.03			0.30
Dividends from net investment income		(0.12	)		(0.21	)		(0.17	)		(0.21	)		(0.13	)		(0.24	)		(0.23	)
Net asset value, end of period	$	2.24		$	2.18		$	2.19		$	1.85		$	2.23		$	2.47		$	2.68
Market price, end of period	$	2.32		$	2.10		$	2.09		$	1.68		$	1.88		$	2.14		$	2.55
Total Investment Return2
Based on net asset value		8.54	%3		9.56	%		28.95	%		(3.01	)%		(4.00	)%3		1.58	%		12.32	%
Based on market price		16.70	%3		10.59	%		35.52	%		4.47	%		(6.59	)%3		(7.51	)%		19.70	%
Ratios to Average Net Assets
Total expenses		1.45	%4		1.49	%		1.49	%		2.01	%		1.98	%4		3.56	%		3.78	%
Total expenses after fees waived and paid indirectly		1.45	%4		1.49	%		1.49	%		2.01	%		1.98	%4		3.55	%		3.77	%
Total expenses after fees waived and paid indirectly and excluding interest expense		1.24	%4		1.25	%		1.27	%		1.41	%		1.05	%4		1.27	%		1.34	%
Net investment income		9.20	%4		8.66	%		9.34	%		12.06	%		9.52	%4		8.89	%		8.42	%
Supplemental Data
Net assets, end of period (000)	$	122,407		$	118,809		$	119,642		$	100,921		$	121,808		$	135,098		$	146,538
Borrowings outstanding, end of period (000)	$	28,000		$	29,000		$	25,000		$	18,000		$	27,000		$	46,000		$	62,000
Average borrowings outstanding, during the period (000)	$	25,830		$	26,729		$	21,027		$	21,220		$	27,069		$	55,868		$	62,838
Portfolio turnover		30	%		90	%		85	%		55	%		25	%		69	%		83	%
Asset coverage, end of period per $1,000	$	5,372		$	5,097		$	5,786		$	6,607		$	5,512		$	3,937		$	3,364

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 29, 2012

Financial Highlights BlackRock High Yield Trust (BHY)

	Six Months Ended February 29, 2012 (Unaudited)												Period November 1, 2007 to August 31, 2008
																Year Ended October 31,
				Year Ended August 31,
				2011			2010			2009						2007			2006
Per Share Operating Performance
Net asset value, beginning of period	$	6.79		$	6.69		$	5.78		$	6.84		$	7.91		$	7.85		$	7.48
Net investment income		0.25	1		0.51	1		0.51	1		0.51	1		0.50	1		0.63			0.66
Net realized and unrealized gain (loss)		0.41			0.11			0.92			(1.00	)		(1.06	)		0.04			0.36
Net increase (decrease) from investment operations		0.66			0.62			1.43			(0.49	)		(0.56	)		0.67			1.02
Dividends and distributions from:
Net investment income		(0.26	)		(0.51	)		(0.50	)		(0.55	)		(0.51	)		(0.61	)		(0.65	)
Tax return of capital		—			(0.01	)		(0.02	)		(0.02	)		—			—			—
Total dividends and distributions		(0.26	)		(0.52	)		(0.52	)		(0.57	)		(0.51	)		(0.61	)		(0.65	)
Net asset value, end of period	$	7.19		$	6.79		$	6.69		$	5.78		$	6.84		$	7.91		$	7.85
Market price, end of period	$	7.21		$	6.60		$	6.44		$	5.84		$	5.96		$	6.92		$	7.77
Total Investment Return2
Based on net asset value		10.07	%3		9.66	%		25.70	%		(5.30	)%		(6.47	)%3		9.03	%		14.25	%
Based on market price		13.56	%3		10.73	%		19.76	%		9.81	%		(6.85	)%3		(3.63	)%		14.93	%
Ratios to Average Net Assets
Total expenses		1.68	%4		2.04	%		2.10	%		2.61	%		2.61	%4		4.16	%		4.50	%
Total expenses after fees waived and paid indirectly		1.68	%4		2.04	%		2.10	%		2.61	%		2.61	%4		4.14	%		4.49	%
Total expenses after fees waived and paid indirectly and excluding interest expense		1.55	%4		1.85	%		1.91	%		2.16	%		1.77	%4		2.10	%		2.19	%
Net investment income		7.53	%4		7.18	%		7.89	%		10.22	%		8.34	%4		7.84	%		8.74	%
Supplemental Data
Net assets end of period (000)	$	46,240		$	43,644		$	42,980		$	37,137		$	43,897		$	50,782		$	50,385
Borrowings outstanding, end of period (000)	$	12,000		$	6,000		$	8,000		$	4,000		$	6,250		$	9,250		$	20,250
Average borrowings outstanding, during the period (000)	$	5,599		$	7,427		$	6,427		$	5,223		$	7,443		$	17,710		$	20,621
Portfolio turnover		28	%		81	%		80	%		54	%		34	%		69	%		85	%
Asset coverage, end of period per $1,000	$	4,853		$	8,274		$	6,373		$	10,284		$	8,023		$	6,490		$	3,488

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 29, 2012	113

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

	Six Months Ended February 29, 2012 (Unaudited)												Period November 1, 2007 to August 31, 2008
																Year Ended October 31,
				Year Ended August 31,
				2011			2010			2009						2007			2006
Per Share Operating Performance
Net asset value, beginning of period	$	10.77		$	11.07		$	10.02		$	10.35		$	11.02		$	11.17		$	11.56
Net investment income		0.33	1		0.63	1		0.59	1		0.59	1		0.53	1		0.62			0.57
Net realized and unrealized gain (loss)		0.55			(0.28	)		1.25			(0.31	)		(0.69	)		(0.11	)		0.01
Net increase (decrease) from investment operations		0.88			0.35			1.84			0.28			(0.16	)		0.51			0.58
Dividends and distributions from:
Net investment income		(0.32	)		(0.65	)		(0.79	)		(0.61	)		(0.51	)		(0.61	)		(0.65	)
Net realized gain		—			—			—			—			—			—			(0.26	)
Tax return of capital		—			—			—			—			—			(0.05	)		(0.06	)
Total dividends and distributions		(0.32	)		(0.65	)		(0.79	)		(0.61	)		(0.51	)		(0.66	)		(0.97	)
Net asset value, end of period	$	11.33		$	10.77		$	11.07		$	10.02		$	10.35		$	11.02		$	11.17
Market price, end of period	$	10.78		$	9.85		$	10.56		$	9.65		$	9.82		$	10.19		$	10.58
Total Investment Return2
Based on net asset value		8.48	%3		3.91	%		19.83	%		3.90	%		(1.07	)%3		5.11	%		5.76	%
Based on market price		12.86	%3		(0.37	)%		18.69	%		5.46	%		1.51	%3		2.62	%		6.27	%
Ratios to Average Net Assets
Total expenses		0.89	%4		0.95	%		1.09	%		0.95	%		2.25	%4		2.01	%		1.61	%
Total expenses after fees waived and paid indirectly		0.89	%4		0.95	%		1.09	%		0.95	%		2.25	%4		2.00	%		1.61	%
Total expenses after fees waived and paid indirectly and excluding interest expense		0.84	%4		0.85	%		0.86	%		0.85	%		0.83	%4		0.87	%		0.89	%
Net investment income		6.11	%4		5.94	%		5.81	%		6.45	%		5.89	%4		5.68	%		5.11	%
Supplemental Data
Net assets end of period (000)	$	390,432		$	371,175		$	381,379		$	345,101		$	356,456		$	379,605		$	384,850
Borrowings outstanding, end of period (000)	$	165,979		$	154,883		$	157,776		$	77,474		$	100,740		$	105,262		$	34,326
Average borrowings outstanding, during the period (000)	$	131,122		$	148,617		$	151,700		$	49,573		$	131,462		$	68,241		$	59,691
Portfolio turnover		186	%5		774	%6		720	%7		270	%8		44	%9		196	%		131	%
Asset coverage, end of period per $1,000	$	3,352		$	3,396		$	3,417		$	5,454		$	4,538		$	4,606		$	12,212

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 136%.
6	Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 492%.
7	Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 608%.
8	Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 165%.
9	Includes TBA transactions. Excluding these transactions, the portfolio turnover would have been 168%.

See Notes to Financial Statements.
114	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012

Financial Highlights BlackRock Income Trust, Inc. (BKT)

	Six Months Ended February 29, 2012 (Unaudited)												Period November 1, 2007 to August 31, 2008
																Year Ended October 31,
				Year Ended August 31,
				2011			2010			2009						2007			2006
Per Share Operating Performance
Net asset value, beginning of period	$	7.96		$	7.76		$	7.12		$	6.94		$	6.53		$	6.48		$	6.54
Net investment income		0.20	1		0.35	1		0.20	1		0.28	1		0.26	1		0.30			0.32
Net realized and unrealized gain		0.04			0.19			0.73			0.19			0.40			0.12			0.05
Net increase (decrease) from investment operations		0.24			0.54			0.93			0.47			0.66			0.42			0.37
Dividends and distributions from:
Net investment income		(0.23	)		(0.34	)		(0.26	)		(0.29	)		(0.25	)		(0.29	)		(0.34	)
Net realized gain		—			—			(0.03	)		—			—			—			—
Tax return of capital		—			—			—			—			—			(0.08	)		(0.09	)
Total dividends and distributions		(0.23	)		(0.34	)		(0.29	)		(0.29	)		(0.25	)		(0.37	)		(0.43	)
Net asset value, end of period	$	7.97		$	7.96		$	7.76		$	7.12		$	6.94		$	6.53		$	6.48
Market price, end of period	$	7.55		$	7.18		$	6.95		$	6.53		$	6.07		$	5.81		$	6.07
Total Investment Return2
Based on net asset value		3.29	%3		7.70	%		13.86	%		7.64	%		10.82	%3		7.06	%		6.06	%
Based on market price		8.48	%3		8.47	%		11.19	%		12.87	%		8.94	%3		1.69	%		10.18	%
Ratios to Average Net Assets
Total expenses		1.01	%4		1.06	%		1.05	%		1.09	%		1.63	%4		2.77	%		2.85	%
Total expenses after fees waived and before fees paid indirectly		1.01	%4		1.05	%		1.02	%		1.08	%		1.63	%4		2.77	%		2.85	%
Total expenses after fees waived and paid indirectly		1.01	%4		1.05	%		1.02	%		1.08	%		1.63	%4		2.76	%		2.84	%
Total expenses after fees waived and paid indirectly and excluding interest expense		0.93	%4		0.94	%		0.92	%		0.93	%		0.91	%4		0.98	%		1.00	%
Net investment income		5.13	%4		4.43	%		2.72	%		4.09	%		4.67	%4		4.60	%		4.92	%
Supplemental Data
Net assets, end of period (000)	$	509,412		$	508,765		$	496,260		$	455,529		$	444,054		$	417,651		$	414,460
Borrowings outstanding, end of period (000)	$	163,692		$	233,676		$	106,985		$	11,815			—		$	33,895		$	70,691
Average borrowings outstanding, during the period (000)	$	203,760		$	116,771		$	23,316		$	537		$	61,777		$	93,325		$	104,393
Portfolio turnover		222	%5		899	%6		883	%7		700	%8		263	%9		250	%		80	%
Asset coverage, end of period per $1,000	$	4,112		$	3,177		$	5,639		$	39,555			—		$	13,322		$	6,863

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 89%.
6	Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 387%.
7	Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 207%.
8	Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 184%.
9	Includes TBA transactions. Excluding these transactions, the portfolio turnover would have been 0%.

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012	115

Financial Highlights BlackRock Strategic Bond Trust (BHD)

	Six Months Ended February 29, 2012 (Unaudited)												Period November 1, 2007 to August 31, 2008
																Year Ended October 31,
				Year Ended August 31,
				2011			2010			2009						2007			2006
Per Share Operating Performance
Net asset value, beginning of period	$	13.48		$	13.57		$	12.12		$	12.76		$	13.80		$	13.83		$	13.68
Net investment income		0.51	1		1.06	1		1.01	1		0.93	1		0.76	1		0.95			0.99
Net realized and unrealized gain (loss)		0.87			(0.04	)		1.35			(0.69	)		(1.03	)		(0.06	)		0.18
Net increase (decrease) from investment operations		1.38			1.02			2.36			0.24			(0.27	)		0.89			1.17
Dividends and distributions from:
Net investment income		(0.65	)		(1.11	)		(0.91	)		(0.88	)		(0.77	)		(0.92	)		(0.98	)
Tax return of capital		—			—			—			—			—			—			(0.04	)
Total dividends and distributions		(0.65	)		(1.11	)		(0.91	)		(0.88	)		(0.77	)		(0.92	)		(1.02	)
Net asset value, end of period	$	14.21		$	13.48		$	13.57		$	12.12		$	12.76		$	13.80		$	13.83
Market price, end of period	$	13.87		$	12.93		$	13.17		$	11.43		$	10.85		$	11.88		$	12.85
Total Investment Return2
Based on net asset value		10.13	%3		8.09	%		20.38	%		3.99	%		(1.19	)%3		7.26	%		9.58	%
Based on market price		12.07	%3		6.83	%		23.88	%		15.34	%		(2.40	)%3		(0.62	)%		11.87	%
Ratios to Average Net Assets
Total expenses		1.46	%4		1.52	%		1.13	%		1.00	%		0.93	%4		1.45	%		2.25	%
Total expenses after fees waived and before fees paid indirectly		1.46	%4		1.51	%		1.11	%		0.92	%		0.82	%4		1.27	%		2.25	%
Total expenses after fees waived and paid indirectly		1.46	%4		1.51	%		1.11	%		0.92	%		0.82	%4		1.27	%		2.00	%
Total expenses after fees waived and paid indirectly and excluding interest expense		1.24	%4		1.26	%		1.04	%		0.92	%		0.81	%4		0.87	%		0.94	%
Net investment income		7.54	%4		7.59	%		7.77	%		8.67	%		6.85	%4		6.86	%		7.26	%
Supplemental Data
Net assets, end of period (000)	$	100,278		$	95,127		$	95,794		$	85,581		$	90,092		$	97,410		$	97,614
Borrowings outstanding, end of period (000)	$	25,000		$	24,000		$	12,000			—		$	1,571		$	413		$	14,951
Average borrowings outstanding during the period (000)	$	22,264		$	22,696		$	5,701		$	303		$	391		$	7,240		$	21,104
Portfolio turnover		26	%		72	%		83	%		61	%		27	%		34	%		56	%
Asset coverage, end of period per $1,000	$	5,011		$	4,964		$	8,983			—		$	58,347		$	236,789		$	7,529

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.
116	SEMI-ANNUAL REPORT	FEBRUARY 29, 2012

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”) are registered under 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. The Boards of Directors and the Boards of Trustees of the Trusts are collectively referred to throughout this report as the “Board of Trustees” or the “Board,” and the directors/trustees thereof are collectively referred to throughout this report as “Trustees.” The Trusts determine and make available for publication the NAVs of their Common Shares on a daily basis.

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

Basis of Consolidation: The accompanying consolidated financial statements include the accounts of BLK HYV (Luxembourg) Investments, S.a.r.l. and BLK HYT (Luxembourg) Investments, S.a.r.l. (the “Taxable Subsidiaries”), a wholly owned taxable subsidiary of each Trust which holds shares of private Canadian companies. Such shares are held in the Taxable Subsidiaries in order to realize benefits under the Double Tax Avoidance Convention between Canada and Luxembourg, the result of which is gains on the sale of such shares will not be subject to capital gains taxes in Canada. Income earned on the investments held by the Taxable Subsidiary may be taxable to such subsidiaries in Luxembourg. An income tax provision for all income, including realized and unrealized gains, if any, is reflected as either a reduction in investment income or as a component of realized and unrealized gain (loss) on the Consolidated Statements of Operations. The Trusts may invest up to 25% of their total assets in the Taxable Subsidiary. Intercompany accounts and transactions have been eliminated. The Taxable Subsidiary is subject to the same investment policies and restrictions that apply to 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. To-be-announced (“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, trades and values of the underlying reference instruments. Investments in open-end registered investment companies are valued at NAV each business day. Short-term securities with remaining maturities of 60 days or less may be valued at amortized cost, which approximates fair value.

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

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

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

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

In the event that application of these methods of valuation results in a price for an investment, which is deemed not to be representative of the market value of such investment or if a price is not available, the investment will be valued in accordance with a policy approved by the Board as reflecting fair

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Notes to Financial Statements (continued)

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 the 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.

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 respective date of such transactions. 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 do not isolate the portion of the results of operations arising as a result of changes in the foreign exchange rates from the changes in the market prices of investments held or sold for financial reporting purposes. Accordingly, the effects of changes in foreign currency exchange rates on investments are not segregated on the Statements of Operations from the effects of changes in market prices of those investments but are included as a component of net realized and unrealized gain (loss) from investments. The 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 but are supported by the right of the issuer to borrow from the Treasury.

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

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 interest only (“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

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Notes to Financial Statements (continued)

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.

Stripped Mortgage-Backed Securities: Certain Trusts may invest in stripped mortgage-backed securities issued by the US government, its agencies and instrumentalities. Stripped mortgage-backed securities are usually structured with two classes that receive different proportions of the interest (IOs) and principal (POs) distributions on a pool of Mortgage Assets. Certain Trusts also may invest in stripped mortgage-backed securities that are privately issued.

Zero-Coupon Bonds: Certain 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.

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 Interbank Offered Rate), the prime rate offered by one or more US banks or the certificate of deposit rate. Floating rate loan interests may involve foreign borrowers, and investments may be denominated in foreign currencies. The Trusts consider these investments to be investments in debt securities for purposes of their investment policies.

When a Trust purchases a floating rate loan interest it may receive a facility fee and when it sells a floating rate loan interest it may pay a facility fee. On an ongoing basis, the Trusts may receive a commitment fee based on the undrawn portion of the underlying line of credit amount of a floating rate loan interest. Facility and commitment fees are typically amortized to income over the term of the loan or term of the commitment, respectively. Consent and amendment fees are recorded to income as earned. Prepayment penalty fees, which may be received by the 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, the Trusts borrow 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

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Notes to Financial Statements (continued)

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.

Short Sales: Certain Trusts may enter into short sale transactions in which the Trusts sell a security it does not hold in anticipation of a decline in the market price of that security. When a Trust makes a short sale, it will borrow the security sold short (borrowed bond) and deliver it to the counterparty to which it sold the security short. An amount equal to the proceeds received by the Trusts is reflected as an asset and an equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the market value of the short sale. The Trusts are required to repay the counterparty any interest received on the security sold short, which is shown as interest expense in the Statements of Operations. The Trusts may pay a fee on the assets borrowed from the counterparty, which is shown as stock loan fees in the Statements of Operations. The Trusts maintain a segregated account of securities or deposits cash with the broker-dealer as collateral for the short sales. The Trusts may receive interest on their cash collateral deposited with the broker-dealer. The Trusts are exposed to market risk based on the amount, if any, that the market value of the security increases beyond the market value at which the position was sold. Thus, a short sale of a security involves the risk that instead of declining, the price of the security sold short will rise. The short sale of securities involves the possibility of a theoretically unlimited loss since there is a theoretically unlimited potential for the market price of the security sold short to increase. A gain, limited to the price at which the Trusts sold the security short, or a loss, unlimited as to the dollar amount, will be recognized upon the termination of a short sale if the market price is greater or less than the proceeds originally received. There is no assurance the Trusts will be able to close out a short position at a particular time or at an acceptable price.

Forward Commitments and When-Issued Delayed Delivery Securities: Certain Trusts may purchase securities on a when-issued basis and may purchase or sell securities on a forward commitment basis. Settlement of such transactions normally occurs within a month or more after the purchase or sale commitment is made. Certain Trusts may purchase securities under such conditions with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Trusts may be required to pay more at settlement than the security is worth. In addition, the Trusts are not entitled to any of the interest earned prior to settlement. When purchasing a security on a delayed delivery basis, the Trusts assume the rights and risks of ownership of the security, including the risk of price and yield fluctuations. In the event of default by the counterparty, the Trusts’ maximum amount of loss is the unrealized appreciation of unsettled when-issued transactions, which is shown in the Schedules of Investments.

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 mortgage 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 receive cash from the sale of the Treasury security to use for other investment purposes. 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. For US GAAP purposes, a treasury roll transaction is accounted for as a secured borrowing and not as a purchase or sale. During the term of the borrowing, interest income from the Treasury security and the related interest expense on the secured borrowing is recorded by the Trusts on an accrual basis. The Trusts will benefit from the transaction if the income earned on the investment purchased with the cash 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 sells 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

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Notes to Financial Statements (continued)

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 and options written), or certain borrowings (e.g., reverse repurchase agreements and treasury roll transactions), 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 liquid securities having a market value at least equal to the amount that would otherwise be required to be physically segregated. Furthermore, based on requirements and agreements with certain exchanges and third party broker-dealers, each party to such transactions has requirements to deliver/deposit securities as collateral for certain investments.

Investment Transactions and Investment Income: For financial reporting purposes, investment transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on the ex-dividend dates. Dividends from foreign securities where the ex-dividend date may have passed are subsequently recorded when the Trusts are informed of the ex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized on the accrual basis. 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 BHK, HIS, BHY, BNA, BKT and BHD’s US federal tax returns remain open for each of the three years ended August 31, 2011 and for the period ended August 31, 2008. The statutes of limitations on HYV and HYT’s tax returns remain open for each of the four years ended August 31, 2011. The statutes of limitations on the Trusts’ state and local tax returns may remain open for an additional year depending upon the jurisdiction. Management does not believe there are any uncertain tax positions that require recognition of a tax liability.

Recent Accounting Standards: In May 2011, the Financial Accounting Standards Board (the “FASB”) issued amended guidance to improve disclosure about fair value measurements which will require the following disclosures for fair value measurements categorized as Level 3: quantitative information about the unobservable inputs and assumptions used in the fair value measurement, a description of the valuation policies and procedures and a narrative description of the sensitivity of the fair value measurement to changes in unobservable inputs and the interrelationships between those unobservable inputs. In addition, the amounts and reasons for all transfers in and out of Level 1 and Level 2 will be required to be disclosed. The amended guidance is effective for financial statements for fiscal years beginning after December 15, 2011, and interim periods within those fiscal years. Management is evaluating the impact of this guidance on the Trusts’ financial statement disclosures.

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

Deferred Compensation and BlackRock Closed-End Share Equivalent Investment Plan: Under the deferred compensation plan approved by each Trust’s Board, independent 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

SEMI-ANNUAL REPORT FEBRUARY 29, 2012 121

Notes to Financial Statements (continued)

the BlackRock Closed-End Fund investments under the plan are included in dividends — 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 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. master agreement (“ISDA Master Agreement”) implemented between a Trust and each of its respective counterparties. An 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 the Trusts’ net assets decline by a stated percentage or the Trusts fail to meet the terms of their 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 in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate 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 currencies in which some of the investments held by the Trusts are denominated. The contract is marked-to-market daily and the change in market value is recorded by the Trust 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 (holder) of the option the right (but not the obligation) to buy, and obligates the seller (writer) to sell (when the option is exercised), the underlying instrument at the exercise or strike price at any time or at a specified time during the option period. A put option gives the holder the right to sell and obligates the writer to buy the underlying instrument at the exercise or strike price at any time or at a specified time during the option period. When the 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 Trust enters into a closing transaction), the Trusts realize a gain or loss

122 SEMI-ANNUAL REPORT FEBRUARY 29, 2012

Notes to Financial Statements (continued)

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.

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

SEMI-ANNUAL REPORT FEBRUARY 29, 2012 123

Notes to Financial Statements (continued)

Derivative Financial Instruments Categorized by Risk Exposure:

Fair Values of Derivative Financial Instruments as of February 29, 2012
	Asset Derivatives
		BHK		HYV		HYT		HIS		BHY		BNA		BKT		BHD
	Statements of Assets and Liabilities Location	Value
Interest rate contracts	Net unrealized appreciation/depreciation1; Unrealized appreciation on swaps; Investments at value — unaffiliated2	$	530,376		—		—		—		—	$	647,019	$	46,616,117	$	84,885
Foreign currency exchange contracts	Unrealized appreciation on foreign currency exchange contracts; Investments at value — unaffiliated2		236,289	$	8,857	$	7,223		—	$	407		235,206		—		628
Credit contracts	Unrealized appreciation on swaps; Investments at value — unaffiliated2		682,111		643,176		662,856		—		191,926		683,504		—		85,945
Equity contracts	Net unrealized appreciation/depreciation1; Investments at value — unaffiliated2		—		305,250		316,130	$	87,545		—		—		—		—
Total		$	1,448,776	$	957,283	$	986,209	$	87,545	$	192,333	$	1,565,729	$	46,616,117	$	171,458
	Liability Derivatives
		BHK		HYV		HYT		HIS		BHY		BNA		BKT		BHD
	Statements of Assets and Liabilities Location	Value
Interest rate contracts	Net unrealized appreciation/depreciation1; Unrealized depreciation on swaps; Option written at value	$	4,576,159		—		—		—		—	$	4,550,767	$	42,571,558	$	67,229
Foreign currency exchange contracts	Unrealized depreciation on foreign currency exchange contracts; Options written at value		563,492	$	1,448,067	$	1,500,303	$	283,739	$	15,017		479,402		—		249,845
Credit contracts	Unrealized depreciation on swaps; Options written at value		36,040		112,207		119,959		—		6,107		36,176		—		202
Equity contracts	Unrealized depreciation on swaps; Options written at value		—		412,959		445,363		74,334		—		—		—		—
Other contracts	Unrealized depreciation on swaps		77,284		—		—		—		—		77,489		—		—
Total		$	5,252,975	$	1,973,233	$	2,065,625	$	358,073	$	21,124	$	5,143,834	$	42,571,558	$	317,276

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

124 SEMI-ANNUAL REPORT FEBRUARY 29, 2012

Notes to Financial Statements (continued)

The Effect of Derivative Financial Instruments on the Statements of Operations Six Months Ended February 29, 2012
	Net Realized Gain (Loss) From
	BHK			HYV			HYT			HIS			BHY			BNA			BKT			BHD
Interest rate contracts:
Financial futures contracts	$	(453,633	)		—			—			—			—		$	(357,014	)	$	(5,090,929	)	$	(57,843	)
Swaps		1,376,353			—			—			—			—			850,535			249,984			102,783
Options1		(2,053,700	)	$	542,835		$	609,505			—			—			(1,439,130	)		(126,181	)		—
Floors		—			—			—			—			—			—			443,883			—
Foreign currency exchange contracts:
Financial futures contracts		(35,220	)		—			—			—			—			(40,039	)		(1,789	)		—
Foreign currency exchange contracts		1,089,752			3,252,823			3,481,662		$	774,738		$	(2,883	)		445,882			—			597,890
Options1		(76,426	)		—			—			—			—			(78,422	)		—			—
Credit contracts:
Swaps		1,018,396			(381,877	)		(414,494	)		—			198,394			1,018,450			—			32,974
Equity contracts:
Financial futures contracts		—			(3,965,704	)		(4,093,471	)		(355,406	)		—			—			—			—
Options1		—			(406,208	)		(418,826	)		(93,698	)		—			—			—			—
Other contracts:
Swaps		(21,016	)		146,751			154,102			—			17,707			(21,115	)		—			—
Total	$	844,506		$	(811,380	)	$	(681,522	)	$	325,634		$	213,218		$	379,147		$	(4,525,032	)	$	675,804
	Net Change in Unrealized Appreciation/Depreciation on
	BHK			HYV			HYT			HIS			BHY			BNA			BKT			BHD
Interest rate contracts:
Financial futures contracts	$	570,814			—			—			—			—		$	393,611		$	(31,774	)	$	(11,359	)
Swaps		(1,654,566	)		—			—			—			—			(1,484,830	)		(1,292,938	)		17,608
Options1		1,895,867			—			—			—			—			1,707,450			65,267			(28,283	)
Floors		—			—			—			—			—			—			(132,104	)		—
Foreign currency exchange contracts:
Foreign currency exchange contracts		(339,345	)	$	(1,299,680	)	$	(1,346,118	)	$	(251,144	)	$	(14,610	)		(244,840	)		—			(222,923	)
Options1		12,275			—			—			—			—			12,504			—			—
Credit contracts:
Swaps		(1,147,981	)		638,353			652,359			—			53,613			(1,144,329	)		—			28,505
Options1		—			442,787			441,347			—			—			—			—			—
Equity contracts:
Financial futures contracts		—			1,980,740			1,905,233			119,132			—			—			—			—
Options1		—			(122,259	)		(124,721	)		(71,461	)		—			—			—			—
Other contracts:
Swaps		(77,284	)		(75,845	)		(79,649	)		—			(9,012	)		(77,489	)		—			—
Total	$	(740,220	)	$	1,564,096		$	1,448,451		$	(203,473	)	$	29,991		$	(837,923	)	$	(1,391,549	)	$	(216,452	)

¹ Options purchased are included in the net realized gain (loss) from investments and net change in unrealized appreciation/depreciation on investments.

SEMI-ANNUAL REPORT FEBRUARY 29, 2012 125

Notes to Financial Statements (continued)

For the six months ended February 29, 2012, 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		503		—		—		—		—		448		989		88
Average number of contracts sold		909		314		371		51		—		1,020		2,323		81
Average notional value of contracts purchased	$	97,756,601		—		—		—		—	$	90,662,358	$	236,438,591	$	13,889,188
Average notional value of contracts sold	$	144,530,667	$	19,877,370	$	23,647,510	$	3,258,630		—	$	161,080,680	$	325,262,643	$	13,622,047
Foreign currency exchange contracts:
Average number of contracts — US dollars purchased		29		12		10		4		2		29		—		6
Average number of contracts — US dollars sold		25		4		5		2		—		24		—		3
Average US dollar amounts purchased	$	34,190,383	$	32,807,740	$	42,359,736	$	8,164,303	$	824,212	$	31,132,553		—	$	7,185,347
Average US dollar amounts sold	$	20,431,120	$	1,822,882	$	2,041,243	$	273,790		—	$	17,089,813		—	$	440,943
Options:
Average number of option contracts purchased		21,946,571		726		1,205		335		3		21,979,071		369		6
Average number of option contracts written		14,326,250		538		895		250		—		14,336,250		—		—
Average notional value of option contracts purchased	$	22,673,250	$	9,658,514	$	16,209,000	$	4,506,000	$	2,829	$	22,707,000	$	921,250	$	5,657
Average notional value of option contracts written	$	14,426,250	$	6,718,750	$	11,187,500	$	3,125,000		—	$	14,436,250		—		—
Average number of swaption contracts purchased		6		1		1		—		—		6		2		2
Average number of swaption contracts written		11		2		2		—		—		12		2		1
Average notional value of swaption contracts purchased	$	57,226,013	$	7,500,000	$	7,500,000		—		—	$	57,376,013	$	12,400,000	$	1,906,402
Average notional value of swaption contracts written	$	285,700,000	$	14,500,000	$	15,500,000		—		—	$	289,500,000	$	22,200,000	$	2,200,000
Credit default swaps:
Average number of contracts — buy protection		8		11		11		—		7		8		—		6
Average number of contracts — sell protection		14		12		12		—		7		14		—		10
Average notional value — buy protection	$	8,926,162	$	13,027,348	$	14,139,767		—	$	565,000	$	8,942,290		—	$	1,497,500
Average notional value — sell protection	$	6,964,165	$	9,451,500	$	11,945,000		—	$	1,852,500	$	6,999,165		—	$	1,416,359
Interest rate swaps:
Average number of contracts — pays fixed rate		4		—		—		—		—		9		12		1
Average number of contracts — receives fixed rate		5		—		—		—		—		7		12		1
Average notional value — pays fixed rate	$	4,965,679		—		—		—		—	$	25,924,039	$	261,030,000	$	600,000
Average notional value — receives fixed rate	$	50,019,629		—		—		—		—	$	53,368,064	$	249,611,600	$	9,400,000
Total return swaps:
Average number of contracts		1		—		—		—		—		1		—		—
Average notional value	$	940,000		—		—		—		—	$	1,885,000		—		—

3. Investment Advisory Agreement and Other Transactions with Affiliates:

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

Each 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 services for each Trust and administration services for BHK, HYV, HYT, HIS and BHD.

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	0.90%
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	%

126 SEMI-ANNUAL REPORT FEBRUARY 29, 2012

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 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 29, 2012, the amounts waived were as follows:

BHK	$	1,242
HYV	$	251
HYT	$	280
HIS	$	182
BHY	$	127
BNA	$	1,573
BKT	$	2,449
BHD	$	133

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

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.

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 29, 2012, were as follows:

	Purchases		Sales
BHK	$	469,053,488	$	516,744,054
HYV	$	164,014,956	$	143,307,785
HYT	$	171,818,017	$	150,224,762
HIS	$	44,561,663	$	43,405,656
BHY	$	21,817,057	$	13,928,318
BNA	$	481,520,298	$	533,947,655
BKT	$	1,339,537,226	$	1,385,718,993
BHD	$	29,200,573	$	28,228,676

Purchases and sales of US government securities, for the six months ended February 29, 2012, were as follows:

	Purchases		Sales
BHK	$	514,284,821	$	477,424,118
BNA	$	504,329,363	$	449,075,848
BKT	$	488,528,588	$	475,725,365
BHD	$	2,427,194	$	1,862,799

For the six months ended February 29, 2012, purchases and sales of mortgage dollar rolls were as follows:

	Purchases		Sales
BHK	$	256,189,320	$	256,450,408
BNA	$	262,809,813	$	263,087,783
BKT	$	1,091,717,115	$	1,093,392,375

SEMI-ANNUAL REPORT FEBRUARY 29, 2012 127

Notes to Financial Statements (continued)

Transactions in options written for the six months ended February 29, 2012, were as follows:

				Calls									Puts
	Contracts			Notional (000)			Premiums Received			Contracts			Notional (000)			Premiums Received
BHK
Outstanding options, beginning of period		—		$	63,300		$	2,441,442			538		$	86,985		$	2,818,041
Options written		459			82,695			2,289,919			329			572,340			5,143,524
Options expired		(178	)		(35,095	)		(469,381	)		(595	)		(55,763	)		(874,217	)
Options exercised		(15	)		(8,100	)		(93,352	)		—			(26,422	)		(1,070,207	)
Options closed		(266	)		(69,800	)		(3,081,968	)		(272	)		(58,330	)		(2,878,278	)
Outstanding options, end of period		—		$	33,000		$	1,086,660			—		$	518,810		$	3,138,863
HYV
Outstanding options, beginning of period		—		$	24,175		$	296,835			664		$	26,475		$	688,420
Options written		1,350			7,000			422,017			5,700			7,000			681,602
Options expired		—			(17,175	)		(72,135	)		(2,625	)		(19,475	)		(521,579	)
Options exercised		—			—			—			(664	)		—			(23,620	)
Options closed		(1,350	)		(14,000	)		(646,717	)		(1,350	)		(14,000	)		(701,468	)
Outstanding options, end of period		—			—			—			1,725			—		$	123,355
HYT
Outstanding options, beginning of period		—		$	26,025		$	332,505			698		$	27,700		$	741,030
Options written		1,433			8,000			469,894			5,956			8,000			741,855
Options expired		—			(18,025	)		(75,705	)		(2,733	)		(19,700	)		(533,499	)
Options exercised		—			—			—			(698	)		—			(24,830	)
Options closed		(1,433	)		(16,000	)		(726,694	)		(1,433	)		(16,000	)		(796,517	)
Outstanding options, end of period		—			—			—			1,790			—		$	128,039
HIS
Outstanding options, beginning of period		—			—			—			—			—			—
Options written		417			—		$	47,111			1,689			—		$	117,299
Options expired		—			—			—			(772	)		—			(60,723	)
Options closed		(417	)		—			(47,111	)		(417	)		—			(19,589	)
Outstanding options, end of period		—			—			—			500			—		$	36,987
BNA
Outstanding options, beginning of period		—		$	61,300		$	2,208,193			539		$	85,015		$	2,585,616
Options written		461			82,875			2,297,188			329			573,250			5,151,136
Options expired		(180	)		(35,175	)		(471,670	)		(596	)		(59,073	)		(1,004,517	)
Options exercised		(15	)		(6,900	)		(46,390	)		—			(26,442	)		(1,071,191	)
Options closed		(266	)		(69,000	)		(2,895,456	)		(272	)		(53,040	)		(2,515,176	)
Outstanding options, end of period		—		$	33,100		$	1,091,865			—		$	519,710		$	3,145,868
BKT
Outstanding options, beginning of period		—		$	11,100		$	353,258			247		$	11,100		$	448,653
Options written		514			—			296,502			995			—			315,965
Options expired		(242	)		—			(150,973	)		(333	)		—			(128,259	)
Options exercised		(20	)		—			(3,050	)		—			—			—
Options closed		(252	)		—			(142,479	)		(909	)		—			(283,102	)
Outstanding options, end of period		—		$	11,100		$	353,258			—		$	11,100		$	353,257
BHD
Outstanding options, beginning of period		—			—			—			—			—			—
Options written		—			—			—			—		$	4,400		$	50,160
Options exercised		—			—			—			—			—			—
Outstanding options, end of period		—			—			—			—		$	4,400		$	50,160

128 SEMI-ANNUAL REPORT FEBRUARY 29, 2012

Notes to Financial Statements (continued)

5. Income Tax Information:

As of August 31, 2011, 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
2012		—		—		—	$	2,339,279	$	316,410		—		—
2014		—		—		—		7,043,976		2,060,533		—		—
2015		—		—		—		—		2,467,772		—		—
2016	$	17,011,639		—		—		10,829,322		2,039,760	$	13,511,023	$	687,454
2017		7,416,000	$	25,464,032	$	31,939,528		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
2019		—		—		—		—		737,843		—		—
Total	$	24,427,639	$	71,250,686	$	86,867,292	$	38,522,190	$	13,730,119	$	31,844,749	$	5,453,149

Under the 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, any such losses must be utilized prior to the losses incurred in pre-enactment taxable years.

As of February 29, 2012, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

	BHK			HYV			HYT			HIS			BHY			BNA			BKT			BHD
Tax cost	$	519,485,199		$	535,075,073		$	557,006,304		$	149,699,172		$	57,208,243		$	529,204,687		$	827,769,995		$	117,113,498
Gross unrealized appreciation		32,902,354			33,420,622			33,884,899			6,927,547			3,410,212			34,312,914			45,547,388			8,324,695
Gross unrealized depreciation		(7,597,991	)		(21,039,743	)		(21,692,446	)		(4,793,667	)		(944,821	)		(7,892,219	)		(18,707,213	)		(1,444,535	)
Net unrealized appreciation (depreciation)	$	25,304,363		$	12,380,879		$	12,192,453		$	2,133,880		$	2,465,391		$	26,420,695		$	26,840,175		$	6,880,160

6. Borrowings:

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

Prior to March 2, 2012, advances were 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.

Effective March 2, 2012, advances will be made by SSB to the Trusts, at the Trusts’ option of (a) the higher of (i) 0.75% above the Fed Funds rate and (ii) 0.75% above the Overnight LIBOR or (b) 0.75% above 7-day, 30-day, 60-day or 90-day LIBOR.

In addition, the 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 29, 2012 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 borrowing is less than 300%.

SEMI-ANNUAL REPORT FEBRUARY 29, 2012 129

Notes to Financial Statements (continued)

For the six months ended February 29, 2012, the daily weighted average interest rates for Trusts with borrowings from reverse repurchase agreements and treasury roll transactions were as follows:

	Daily Weighted Average Interest Rate
BHK		0.16	%
BNA		0.15	%
BKT		0.19	%

For the six months ended February 29, 2012, the daily weighted average interest rates for Trusts with loans under the revolving credit agreements were as follows:

	Daily Weighted Average Interest Rate
HYV		0.96	%
HYT		0.96	%
HIS		0.96	%
BHY		0.96	%
BHD		0.96	%

7. Commitments:

Certain Trusts may invest in floating rate loan interests. In connection with these investments, the Trust may also enter into bridge loan commitments (“commitments”). Bridge loan commitments may obligate the Trust to furnish temporary financing to a borrower until permanent financing can be arranged. At February 29, 2012, the Trusts had outstanding bridge loan commitments as follows:

	Commitment Amounts
HYV	$	5,101,399
HYT	$	5,352,437
HIS	$	1,557,646
BHY	$	574,917
BHD	$	510,000

In connection with these commitments, the Trusts earn a commitment fee, typically set as a percentage of the commitment amount. Such fee income, which is included in interest income in the Statements of Operations, is recognized ratably over the commitment period. The unrecognized commitment fee income is recorded on the Statements of Assets and Liabilities as deferred income.

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:

BHK, BHY and BHD are authorized to issue an unlimited number of shares, par value $0.001, all of which were initially classified as Common Shares. BNA and BKT are authorized to issue 200 million shares, par value $0.01, all of which were initially classified as Common Shares. HYV and HYT are authorized to issue 200 million shares, par value $0.10, all of which were initially classified as Common Shares. HIS is authorized to issue an unlimited number of shares, no par value, all of which were initially classified as Common Shares. The Board is authorized, however, to reclassify any unissued shares without approval of Common Shareholders.

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

	Six Months Ended February 29, 2012		Year Ended August 31, 2011
HYV		25,438		—
HYT		38,517		—
HIS		51,607		—
BHY		759		—

130 SEMI-ANNUAL REPORT FEBRUARY 29, 2012

Notes to Financial Statements (concluded)

Shares issued and outstanding remained constant during the six months ended February 29, 2012 and the year ended August 31, 2011 for BHK, BNA, BKT and BHD.

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:

The Trusts paid a net investment income dividend in the following amounts per share on March 30, 2012 to shareholders of record on March 15, 2012:

	Common Dividend Per Share
BHK	$	0.0670
HYV	$	0.0860
HYT	$	0.0835
HIS	$	0.0142
BHY	$	0.0435
BNA	$	0.0530
BKT	$	0.0405
BHD	$	0.0845

SEMI-ANNUAL REPORT FEBRUARY 29, 2012 131

Officers and Trustees¹

Richard E. Cavanagh, Chairman of the Board and Trustee

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

Paul L. Audet, Trustee

Michael J. Castellano, Trustee and Member of the Audit Committee

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

Anne Ackerley, Vice President

Brendan Kyne, Vice President

Neal Andrews, Chief Financial Officer

Jay Fife, Treasurer

Brian Kindelan, Chief Compliance Officer and Anti-Money Laundering Officer

Ira P. Shapiro, Secretary

¹ John F. Powers, who was a Trustee of the Trusts, resigned as of February 21, 2012.

Investment Advisor

BlackRock Advisors, LLC

Wilmington, DE 19809

Sub-Advisor²

BlackRock Financial Management, Inc.

New York, NY 10055

Custodian and Accounting Agent

State Street Bank and Trust Company

Boston, MA 02110

Transfer Agent

Computershare Trust Company, N.A.

Canton, MA 02021

Independent Registered Public Accounting Firm

Deloitte & Touche LLP

Boston, MA 02116

Legal Counsel

Skadden, Arps, Slate, Meagher & Flom LLP

New York, NY 10036

Address of the Trusts

100 Bellevue Parkway

Wilmington, DE 19809

² For BHK, HYV, HYT, HIS and BHD.

BHK, BNA and BKT are managed by a team of investment professionals. Effective March 16, 2012, Tom Musmanno was added to the team of portfolio managers responsible for the day-to-day management of the Trusts’ portfolio and the selection of its investments.

132 SEMI-ANNUAL REPORT FEBRUARY 29, 2012

Additional Information

Dividend Policy

Each Trust’s dividend policy is to distribute all or a portion of its net investment income to its 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 on page 132, there have been no changes in the persons who are primarily responsible for the day-to-day management of the Trusts’ portfolios.

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 web-site is intended to allow investors public access to information regarding the Trusts and does not, and is not intended to, incorporate BlackRock’s website in this report.

Electronic Delivery

Electronic copies of most financial reports are available on the Trusts’ web-site 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 the Trusts at (800) 441-7762.

Availability of Quarterly Schedule of Investments

The Trusts file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The 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, D.C. Information on how to access documents on the SEC’s website without charge may be obtained by calling (800) SEC-0330. The Trusts’ 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. 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 in this report.

SEMI-ANNUAL REPORT FEBRUARY 29, 2012 133

Additional Information (concluded)

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 29, 2012
	Total Fiscal Year-to-Date Cumulative Distributions by Character								Percent of Fiscal Year-to-Date Cumulative Distributions by Character
	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	$	0.256197		—	$	0.004803	$	0.261000		98	%		0	%		2	%		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.’

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.

134 SEMI-ANNUAL REPORT FEBRUARY 29, 2012

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 -1-8-2/12-SAR

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 1, 2012
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 1, 2012
By:	/s/ Neal J. Andrews
	Neal J. Andrews
	Chief Financial Officer (principal financial officer) of
	BlackRock Strategic Bond Trust
Date: May 1, 2012