Blackrock Defined Opportunity Credit Trust NCSRS Certified semi-annual shareholder report (management investment company)

Blackrock Defined Opportunity Credit Trust (BHL) Inactive N-CSRSCertified 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 811-22126

Name of Fund: BlackRock Defined Opportunity Credit Trust (BHL)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Defined Opportunity Credit 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: 08/31/2013

Date of reporting period: 02/28/2013

Item 1 – Report to Stockholders

FEBRUARY 28, 2013

SEMI-ANNUAL REPORT (UNAUDITED)

BlackRock Defined Opportunity Credit Trust (BHL)

BlackRock Floating Rate Income Strategies Fund, Inc. (FRA)

BlackRock Limited Duration Income Trust (BLW)

Not FDIC Insured • May Lose Value • No Bank Guarantee

Table of Contents

					Page
Dear Shareholder					3
Semi-Annual Report:
Fund Summaries					4
The Benefits and Risks of Leveraging					10
Derivative Financial Instruments					10
Financial Statements
Schedules of Investments					11
Statements of Assets and Liabilities					47
Statements of Operations					48
Statements of Changes in Net Assets					49
Statements of Cash Flows					51
Financial Highlights					52
Notes to Financial Statements					55
Officers and Directors					67
Additional Information					68

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Dear Shareholder

Despite a number of headwinds, risk assets generated strong returns during the 6- and 12-month periods as investors sought meaningful yields in the ongoing low-interest-rate environment. About this time one year ago, the European debt crisis returned to the headlines as unresolved policy decisions left it unclear as to how troubled peripheral countries would finance their sovereign debt, causing yields to soar. In the second quarter of 2012, political instability in Greece and severe deficit and liquidity problems in Spain raised the specter of a full-blown euro collapse. Alongside the drama in Europe, investors were discouraged by gloomy economic reports from various parts of the world. A slowdown in China, a key powerhouse for global growth, emerged as a particular concern. As the outlook for the global economy worsened, however, investors grew increasingly optimistic that the world’s largest central banks would soon intervene to stimulate growth. This theme, along with the announcement of the European Central Bank’s (“ECB’s”) firm commitment to preserve the euro currency bloc, drove most asset classes higher through the summer. Policy relief came in early September, when the ECB announced its decision to support the eurozone’s debt-laden countries with unlimited purchases of short term sovereign debt. Days later, the US Federal Reserve announced its own much-anticipated stimulus package.

Although financial markets world-wide were buoyed by accommodative monetary policies, risk assets weakened in the fall. Global trade began to slow as many European countries fell into recession and growth continued to decelerate in China, where a once-a-decade leadership change compounded uncertainty. In the United States, stocks slid on lackluster corporate earnings reports and market volatility rose in advance of the US Presidential election. In the post-election environment, investors grew increasingly concerned over the “fiscal cliff,” the automatic tax increases and spending cuts that had been scheduled to take effect at the beginning of 2013. There was widespread fear that the fiscal cliff would push the United States into recession unless politicians could agree upon alternate measures to reduce the deficit before the end of 2012. Worries that bipartisan gridlock would preclude a timely budget deal triggered higher levels of volatility in financial markets around the world in the months leading up to the last day of the year. Ultimately, the worst of the fiscal cliff was averted with a last-minute tax deal; however, decisions relating to spending cuts and the debt ceiling continued to weigh on investors’ minds.

Investors shook off the nerve-wracking finale to 2012 and began the New Year with a powerful equity rally. Money that had been pulled to the sidelines amid year-end tax-rate uncertainty poured back into the markets in January. Key indicators signaled modest but broad-based improvements in the world’s major economies, particularly in China. Global equities soared through January while rising US Treasury yields pressured high-quality fixed income assets. However, bond markets strengthened in February when economic momentum slowed and investors toned down their risk appetite. US stocks continued to rise, but at a more moderate pace. Uncertainty about how long the Federal Reserve would maintain its easing bias drove high levels of volatility later in the month, but these fears abated as the budget sequester (automatic spending cuts scheduled to take effect March 1) began to appear imminent and was deemed likely to deter any near-term curtailment of monetary easing policies. Outside the United States, equities largely declined as political uncertainty escalated after the Italian presidential election ended in a stalemate.

On the whole, riskier asset classes outperformed lower-risk investments for the 6- and 12-month periods ended February 28, 2013. International, US small cap and emerging market equities were the leading asset classes for the 6-month period, while US stocks and high yield bonds generated the strongest returns for the 12-month period. US Treasury yields remained relatively low overall, but have inched higher in recent months, pressuring Treasuries and investment-grade bonds. Tax-exempt municipal bonds, however, continued to benefit from favorable supply-and-demand dynamics. Near-zero short term interest rates continued to keep yields on money market securities near their all-time lows.

Investors continue to face many of the same risks as in years past. But we see a world of possibilities. BlackRock was built to provide the global market insight, breadth of capabilities, unbiased investment advice and deep risk management expertise these times require. Investors everywhere are asking, “So what do I do with my money?” Visit www.blackrock.com for answers.

Sincerely,

Rob Kapito
President, BlackRock Advisors, LLC

“Despite a number of headwinds, risk assets generated strong returns during the 6- and 12-month periods as investors sought meaningful yields in the ongoing low-interest-rate environment.”

Rob Kapito
President, BlackRock Advisors, LLC

Total Returns as of February 28, 2013

	6-month			12-month
US large cap equities (S&P 500^® Index)		8.95	%		13.46	%
US small cap equities (Russell 2000^® Index)		13.02			14.02
International equities (MSCI Europe, Australasia, Far East Index)		14.41			9.84
Emerging market equities (MSCI Emerging Markets Index)		12.06			0.28
3-month Treasury bill (BofA Merrill Lynch 3-Month US Treasury Bill Index)		0.05			0.11
US Treasury securities (BofA Merrill Lynch 10-Year US Treasury Index)		(1.51	)		3.66
US investment grade bonds (Barclays US Aggregate Bond Index)		0.15			3.12
Tax-exempt municipal bonds (S&P Municipal Bond Index)		2.40			5.71
US high yield bonds (Barclays US Corporate High Yield 2% Issuer Capped Index)		6.67			11.79

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


Fund Summary as of February 28, 2013	BlackRock Defined Opportunity Credit Trust

Fund Overview

BlackRock Defined Opportunity Credit Trust’s (BHL) (the “Fund”) primary investment objective is to provide high current income, with a secondary objective of long-term capital appreciation. The Fund seeks to achieve its investment objectives by investing substantially all of its assets in loan and debt instruments and loan-related and debt-related instruments (collectively “credit securities”). The Fund invests, under normal market conditions, at least 80% of its assets in any combination of the following credit securities: (i) senior secured floating rate and fixed rate loans; (ii) second lien or other subordinated or unsecured floating rate and fixed rate loans or debt; (iii) credit securities that are rated below investment grade quality; and (iv) investment grade corporate bonds. The Fund may invest directly in such securities or synthetically through the use of derivatives.

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

Portfolio Management Commentary

How did the Fund perform?

•

For the six months ended February 28, 2013, the Fund returned 9.13% based on market price and 5.55% based on net asset value (“NAV”). For the same period, the closed-end Lipper Loan Participation Funds category posted an average return of 10.24% based on market price and 6.30% based on NAV. All returns reflect reinvestment of dividends. The Fund moved from a discount to NAV to a premium by period-end, which accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.

What factors influenced performance?

•

Security selection among higher quality loan instruments (where the Fund maintained a quality bias) had a positive impact on performance. From an industry perspective, holdings within healthcare, chemicals and gaming boosted results. The Fund’s tactical allocation to high yield bonds generated additional gains as the asset class outperformed floating rate loan interests (bank loans) during the period.

•

Conversely, security selection in the media non-cable and automotive industries detracted from results.

Describe recent portfolio activity.

•

During the period, the Fund maintained its focus on the higher quality segments of the loan market in terms of loan structure, liquidity and overall credit quality. Given mixed economic data and a tepid outlook for global growth, along with lingering global policy uncertainty, the Fund remained cautious of lower-rated less-liquid loans. Instead, the Fund sought issuers with attractive risk-reward characteristics and superior fundamentals. Monetary stimulus measures from global central banks largely supported risk asset prices in 2012; however, this development did not significantly influence the way the Fund invests in the loan market. More specifically, the Fund continued to adhere to a strict investment discipline with the goal of pursuing yield while minimizing exposure to macro risks. With the average loan trading at or just below par recently (i.e., with little or no upside), the Fund’s principal emphasis is on investing in strong companies with the ability to pay their debts despite a slow growth environment.

Describe portfolio positioning at period end.

•

At period end, the Fund held 90% of its total portfolio in floating rate loan interests and 7% in corporate bonds, with the remainder in asset-backed securities. The Fund’s largest industry exposures included healthcare, consumer services (housing-related) and wirelines.

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.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


	BlackRock Defined Opportunity Credit Trust

Fund Information

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.

The distribution rate is not constant and is subject to change.

Represents loan outstanding as a percentage of total managed assets, which is the total assets of the Fund (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 Fund, please see The Benefits and Risks of Leveraging on page 10.

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

	2/28/13		8/31/12		Change			High		Low
Market Price	$	14.75	$	13.94		5.81	%	$	14.93	$	12.92
Net Asset Value	$	14.45	$	14.12		2.34	%	$	14.48	$	14.12

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

Portfolio Composition

	2/28/13			8/31/12
Floating Rate Loan Interests		90	%		90	%
Corporate Bonds		7			7
Asset-Backed Securities		3			2
Common Stocks		—			1

Credit Quality Allocation⁴

	2/28/13			8/31/12
BBB/Baa		6	%		12	%
BB/Ba		25			40
B		65			46
CCC/Caa		4			2

⁴

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

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Fund Summary as of February 28, 2013	BlackRock Floating Rate Income Strategies Fund, Inc.

Fund Overview

BlackRock Floating Rate Income Strategies Fund, Inc.’s (FRA) (the “Fund”) investment objective is to provide shareholders with high current income and such preservation of capital as is consistent with investment in a diversified, leveraged portfolio consisting primarily of floating rate debt securities and instruments. The Fund seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets in floating rate debt securities, including floating or variable rate debt securities that pay interest at rates that adjust whenever a specified interest rate changes and/or which reset on predetermined dates (such as the last day of a month or calendar quarter). The Fund invests a substantial portion of its investments in floating rate debt securities consisting of secured or unsecured senior floating rate loans that are rated below investment grade. The Fund may invest directly in such securities or synthetically through the use of derivatives.

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

Portfolio Management Commentary

•

On October 5, 2012, the Fund acquired substantially all of the assets and assumed substantially all of the liabilities of BlackRock Diversified Income Strategies Fund, Inc. and BlackRock Floating Rate Income Strategies Fund II, Inc. in exchange for newly issued shares of the Fund.

How did the Fund perform?

•

For the six months ended February 28, 2013, the Fund returned 12.50% based on market price and 6.53% based on NAV. For the same period, the closed-end Lipper Loan Participation Funds category posted an average return of 10.24% based on market price and 6.30% based on NAV. All returns reflect reinvestment of dividends. The Fund’s premium to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.

What factors influenced performance?

•

Security selection among higher quality loan instruments (where the Fund maintained a quality bias) had a positive impact on performance, as did the Fund’s high-conviction holdings of lower quality loan credits. From an industry perspective, holdings within paper, chemicals and gaming boosted results. The Fund’s tactical allocation to high yield bonds generated additional gains as the asset class outperformed floating rate loan interests (bank loans) during the period.

•

Conversely, security selection in the media non-cable, independent energy and automotive industries detracted from results.

Describe recent portfolio activity.

•

Describe portfolio positioning at period end.

•

At period end, the Fund held 88% of its total portfolio in floating rate loan interests and 8% in corporate bonds, with the remainder in asset-backed securities and common stocks. The Fund’s largest industry exposures included healthcare, building materials and wirelines.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


	BlackRock Floating Rate Income Strategies Fund, Inc.

Fund Information

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.

The distribution rate is not constant and is subject to change.

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

	2/28/13		8/31/12		Change			High		Low
Market Price	$	16.47	$	15.20		8.36	%	$	16.51	$	13.91
Net Asset Value	$	15.37	$	14.98		2.60	%	$	15.38	$	14.96

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

Portfolio Composition

	2/28/13			8/31/12
Floating Rate Loan Interests		88	%		88	%
Corporate Bonds		8			10
Asset-Backed Securities		3			2
Common Stocks		1			—

Credit Quality Allocation⁴

	2/28/13			8/31/12
BBB/Baa		6	%		8	%
BB/Ba		25			34
B		57			44
CCC/Caa		6			8
Not Rated		6			6

⁴

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

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Fund Summary as of February 28, 2013	BlackRock Limited Duration Income Trust

Fund Overview

BlackRock Limited Duration Income Trust’s (BLW) (the “Fund”) investment objective is to provide current income and capital appreciation. The Fund seeks to achieve its investment objective by investing primarily in three distinct asset classes:

•

intermediate duration, investment grade corporate bonds, mortgage-related securities, asset-backed securities and US Government and agency securities;

•

senior, secured floating rate loans made to corporate and other business entities; and

•

US dollar-denominated securities of US and non-US issuers rated below investment grade and, to a limited extent, non-US dollar denominated securities of non-US issuers rated below investment grade.

The Fund’s portfolio normally has an average portfolio duration of less than five years (including the effect of anticipated leverage), although it may be longer from time to time depending on market conditions. The Fund may invest directly in such securities or synthetically through the use of derivatives.

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

Portfolio Management Commentary

How did the Fund perform?

•

For the six-month period ended February 28, 2013, the Fund returned 9.10% based on market price and 7.17% based on NAV. For the same period, the closed-end Lipper High Yield Funds (Leveraged) category posted an average return of 4.30% based on market price and 8.66% based on NAV. All returns reflect reinvestment of dividends. The Fund’s premium to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.

What factors influenced performance?

•

Spread sectors outperformed government-related debt for the six-month period as accommodative monetary policy in the United States and Europe along with the continued recovery of the US economy drove credit spreads tighter. The Fund’s allocations to high yield bonds and floating rate loan interests (bank loans) were the largest contributors to performance, followed by its positions in non-US sovereign securities. The Fund also benefited from its exposure to structured products including commercial mortgage-backed securities (“CMBS”), asset-backed securities (“ABS”) and non-agency residential mortgage-backed securities (“MBS”). An allocation to investment grade credit also had a positive impact.

•

The Fund’s duration profile (sensitivity to interest rate movements) detracted from performance as interest rates moved higher during the period.

Describe recent portfolio activity.

•

During the six-month period, the Fund maintained a positive view on spread sectors and increased exposure to high yield credit, floating rate loan interests and securitized products such as CMBS and ABS. Within investment grade credit, the Fund favored financials over industrials and utilities. In financials, the Fund rotated out of senior bank debt into subordinated bank debt to take advantage of the yield differential. In addition, the Fund added to positions in floating rate preferred securities to benefit from a potential rise in interest rates.

Describe portfolio positioning at period end.

•

At period end, the Fund held 46% in corporate bonds and 34% of its total portfolio in floating rate loan interests (bank loans). The remainder of the portfolio was invested in MBS, structured products (including CMBS and ABS), US government sponsored agency securities and common stocks.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


	BlackRock Limited Duration Income Trust

Fund Information

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.

The distribution rate is not constant and is subject to change.

Represents reverse repurchase agreements outstanding as a percentage of total managed assets, which is the total assets of the Fund (including any assets attributable to borrowing) minus the sum of liabilities (other than borrowings representing financial leverage). For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 10.

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

	2/28/13		8/31/12		Change			High		Low
Market Price	$	18.84	$	18.00		4.67	%	$	19.17	$	16.80
Net Asset Value	$	17.87	$	17.38		2.82	%	$	17.92	$	17.38

The following charts show the portfolio composition of the Fund’s long-term investments and credit quality allocation of the Fund’s corporate bond and US government securities investments:

Portfolio Composition

	2/28/13			8/31/12
Corporate Bonds		46	%		46	%
Floating Rate Loan Interests		34			34
Non-Agency Mortgage-Backed Securities		8			8
Asset-Backed Securities		6			4
US Government Sponsored Agency Securities		5			6
Common Stocks		1			1
Taxable Municipal Bonds		—			1

Credit Quality Allocation⁴

	2/28/13			8/31/12
AAA/Aaa⁵		10	%		12	%
AA/Aa		1			1
A		6			6
BBB/Baa		14			15
BB/Ba		24			26
B		29			30
CCC/Caa		5			8
Not Rated		11			2

⁴

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

⁵

Includes US Government Sponsored Agency securities and US Treasury Obligations, which were deemed AAA/Aaa by the investment advisor.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


The Benefits and Risks of Leveraging

The Funds 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 Funds may utilize leverage through a credit facility or by entering into reverse repurchase agreements. 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 Fund on its longer-term portfolio investments. To the extent that the total assets of each Fund (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, each Fund’s 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 Funds had not used leverage.

To illustrate these concepts, assume a Fund’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 Fund 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 Fund 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 Fund’s long-term investments, and therefore the Fund’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 Fund pays higher short-term interest rates whereas the Fund’s total portfolio earns income based on lower long-term interest rates.

Furthermore, the value of the Funds’ portfolio investments generally varies inversely with the direction of long-term interest rates, although other factors can influence the value of portfolio investments. In contrast, the redemption value of the Funds’ debt securities does not fluctuate in relation to interest rates. As a result, changes in interest rates can influence the Funds’ NAVs positively or negatively in addition to the impact on Fund performance from leverage from borrowings discussed above.

The use of leverage may enhance opportunities for increased income to the Funds, 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 Funds’ 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 Funds’ net income will be greater than if leverage had not been used. Conversely, if the income from the securities purchased is not sufficient to cover the cost of leverage, each Fund’s net income will be less than if leverage had not been used, and therefore the amount available for distribution to shareholders will be reduced. Each Fund may be required to sell portfolio securities at inopportune times or at distressed values in order to comply with regulatory requirements applicable to the use of leverage or as required by the terms of leverage instruments, which may cause a Fund to incur losses. The use of leverage may limit each Fund’s ability to invest in certain types of securities or use certain types of hedging strategies. Each Fund 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 Funds are permitted to issue senior securities representing indebtedness up to 33¹⁄3% of their total managed assets (each Fund’s net assets plus the proceeds of any outstanding borrowings). If the Funds 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 Fund voluntarily limits its aggregate economic leverage to 50% of its managed assets. As of February 28, 2013, the Funds had aggregate economic leverage from reverse repurchase agreements and/or borrowings through a credit facility as a percentage of their total managed assets as follows:


Derivative Financial Instruments

The Funds 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 and/or foreign currency exchange rate 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 Funds’ 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 Fund to sell or purchase portfolio investments at inopportune times or for distressed values, may limit the amount of appreciation a Fund can realize on an investment, may result in lower dividends paid to shareholders or may cause a Fund to hold an investment that it might otherwise sell. The Funds’ investments in these instruments are discussed in detail in the Notes to Financial Statements.Report of Independent Registered Public Accounting Firm

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Schedule of Investments February 28, 2013 (Unaudited)	BlackRock Defined Opportunity Credit Trust (BHL) (Percentages shown are based on Net Assets)

Asset-Backed Securities		Par (000)		Value
ACAS CLO Ltd., Series 2012-1A, Class D, 5.58%, 9/20/23 (a)(b)	USD		250	$	251,250
Anchorage Capital CLO Ltd., Series 2012-1A, Class B, 3.16%, 1/13/25 (a)(b)			500		479,450
Atrium CDO Corp., Series 9A, Class D, 3.96%, 2/28/24 (a)(b)			250		241,750
Carlyle Global Market Strategies CLO Ltd., Series 2012-4A, Class D, 4.89%, 1/20/25 (a)(b)			250		250,375
Fraser Sullivan CLO VII Ltd., Series 2012-7A, Class C, 4.30%, 4/20/23 (a)(b)			215		214,998
Goldentree Loan Opportunities VI Ltd., Series 2012-6A, Class D, 4.50%, 4/17/22 (a)(b)			350		348,005
Highbridge Loan Management Ltd., Series 2012-1A, Class C, 5.71%, 9/20/22 (a)(b)			350		352,100
ING Investment Management, Series 2012-2A, Class D, 4.85%, 10/15/22 (a)(b)			350		350,875
LCM XI LP, Series 11A, Class D2, 4.25%, 4/19/22 (a)(b)			375		371,250
Marea CLO Ltd., Series 2012-1A, Class D, 4.85%, 10/16/23 (a)(b)			400		402,000
Octagon Investment Partners XIV Ltd., Series 2012-1A, Class C, 4.56%, 1/15/24 (a)(b)			250		242,500
OZLM Funding Ltd., Series 2013-3A, Class C, 4.15%, 1/22/25 (a)(b)			250		244,425
Race Point VI CLO Ltd., Series 2012-6A, Class D, 4.79%, 5/24/23 (a)(b)			250		252,400
Symphony CLO IX LP, Series 2012-9A, Class D, 4.55%, 4/16/22 (a)(b)			500		496,850
Symphony CLO X Ltd., Series 2012-10A, Class D, 5.55%, 7/23/23 (a)(b)			350		354,375
West CLO Ltd., Series 2012-1A, Class C, 5.05%, 10/30/23 (a)(b)			250		253,227
Total Asset-Backed Securities — 3.9%					5,105,830

Common Stocks (c)			Shares
Hotels, Restaurants & Leisure — 0.3%
BLB Worldwide Holdings, Inc.			21		453,254
Software — 0.2%
HMH Holdings/EduMedia			14		247,582
Total Common Stocks — 0.5%					700,836

Corporate Bonds			Par (000)
Airlines — 0.2%
American Airlines Pass-Through Trust, Series 2011-2, Class A, 8.63%, 4/15/23	USD		79		82,130
Continental Airlines Pass-Through Trust, Series 2012-3, Class C, 6.13%, 4/29/18			155		154,612
Delta Air Lines Pass-Through Trust, Series 2009-1, Class B, 9.75%, 6/17/18			51		57,035
					293,777
Auto Components — 0.3%
Icahn Enterprises LP, 8.00%, 1/15/18			340		364,225
Building Products — 0.1%
Momentive Performance Materials, Inc., 8.88%, 10/15/20			160		164,200

Corporate Bonds		Par (000)		Value
Chemicals — 0.1%
INEOS Finance Plc, 8.38%, 2/15/19 (a)	USD		110	$	120,450
Commercial Services & Supplies — 0.3%
ARAMARK Corp., 3.80%, 2/01/15 (b)			65		65,098
AWAS Aviation Capital Ltd., 7.00%, 10/17/16 (a)			304		318,999
					384,097
Communications Equipment — 0.7%
Avaya, Inc., 7.00%, 4/01/19 (a)			206		196,730
Zayo Group LLC/Zayo Capital, Inc.:
8.13%, 1/01/20			380		424,650
10.13%, 7/01/20			250		293,125
					914,505
Consumer Finance — 0.3%
Inmarsat Finance Plc, 7.38%, 12/01/17 (a)			325		347,750
Diversified Financial Services — 1.3%
Ally Financial, Inc., 2.62%, 12/01/14 (b)			440		441,107
Reynolds Group Issuer, Inc.:
7.13%, 4/15/19			120		128,850
5.75%, 10/15/20			930		960,225
6.88%, 2/15/21			185		197,488
					1,727,670
Diversified Telecommunication Services — 0.2%
Lynx I Corp., 5.38%, 4/15/21 (a)			200		205,000
Energy Equipment & Services — 0.3%
FTS International Services LLC/FTS International Bonds, Inc., 8.13%, 11/15/18 (a)			113		116,955
Tervita Corp., 8.00%, 11/15/18 (a)			232		238,960
					355,915
Health Care Providers & Services — 1.1%
CHS/Community Health Systems, Inc., 5.13%, 8/15/18			358		376,347
HCA, Inc., 6.50%, 2/15/20 (a)			375		420,000
inVentiv Health, Inc., 9.00%, 1/15/18 (a)			190		198,075
Tenet Healthcare Corp.:
6.25%, 11/01/18			185		204,888
4.50%, 4/01/21 (a)			264		260,370
					1,459,680
Health Care Technology — 0.8%
IMS Health, Inc., 12.50%, 3/01/18 (a)			850		1,024,250
Hotels, Restaurants & Leisure — 0.3%
Caesars Entertainment Operating Co., Inc., 9.00%, 2/15/20 (a)			67		66,163
Caesars Operating Escrow LLC, 9.00%, 2/15/20 (a)			319		315,012
					381,175
Household Durables — 0.2%
Beazer Homes USA, Inc., 6.63%, 4/15/18			180		192,375
United Rentals North America, Inc., 5.75%, 7/15/18			80		86,100
					278,475
Independent Power Producers & Energy Traders — 1.6%
Calpine Corp., 7.25%, 10/15/17 (a)			220		234,025
Energy Future Intermediate Holding Co. LLC:
10.00%, 12/01/20 (a)			230		259,325
10.00%, 12/01/20			1,405		1,594,675
					2,088,025

Portfolio Abbreviations

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

CAD
DIP
EBITDA

Canadian Dollar
Debtor-In-Possession
Earnings Before Interest, Taxes, Depreciation and Amortization

EUR
GBP
TBA

USD

Euro
British Pound
To Be Announced
US Dollar

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Schedule of Investments (continued)	BlackRock Defined Opportunity Credit Trust (BHL) (Percentages shown are based on Net Assets)

Corporate Bonds		Par (000)		Value
IT Services — 0.2%
First Data Corp., 6.75%, 11/01/20 (a)	USD		245	$	251,431
Media — 0.8%
AMC Networks, Inc., 7.75%, 7/15/21			105		119,175
Clear Channel Communications, Inc., 9.00%, 12/15/19 (a)			195		181,350
Clear Channel Worldwide Holdings, Inc. (a):
6.50%, 11/15/22			192		200,640
6.50%, 11/15/22			517		544,142
					1,045,307
Oil, Gas & Consumable Fuels — 0.1%
EP Energy LLC/Everest Acquisition Finance, Inc., 6.88%, 5/01/19			145		158,050
Paper & Forest Products — 0.1%
Longview Fibre Paper & Packaging, Inc., 8.00%, 6/01/16 (a)			155		162,750
Real Estate Management & Development — 0.1%
Realogy Corp., 7.63%, 1/15/20 (a)			165		186,038
Wireless Telecommunication Services — 0.8%
Sprint Nextel Corp. (a):
9.00%, 11/15/18			290		359,600
7.00%, 3/01/20			550		643,500
					1,003,100
Total Corporate Bonds — 9.9%					12,915,870

Floating Rate Loan Interests (b)
Aerospace & Defense — 1.4%
DigitalGlobe, Inc., Term Loan B, 3.75%, 1/24/20			515		517,092
DynCorp International LLC, Term Loan B, 6.25%, 7/07/16			255		256,748
The SI Organization, Inc., Term Loan B, 4.50%, 11/22/16			414		412,905
Spirit Aerosystems, Inc., Term Loan B, 3.75%, 4/18/19			367		368,756
Transdigm, Inc., Term Loan C, 4.00%, 2/28/20			225		225,423
					1,780,924
Airlines — 2.1%
Delta Air Lines, Inc.:
Term Loan, 3.56%, 9/16/15			352		328,867
Term Loan B, 4.50%, 4/20/17			997		1,005,870
Northwest Airlines, Inc.:
Term Loan, 2.32%, 3/10/17			134		124,754
Term Loan, 2.32%, 3/10/17			242		225,302
Term Loan, 1.70%, 9/10/18			110		98,208
Term Loan, 1.70%, 9/10/18			109		97,315
US Airways Group, Inc., Term Loan, 2.70%, 3/21/14			815		812,669
					2,692,985
Auto Components — 3.6%
Autoparts Holdings Ltd., First Lien Term Loan, 6.50%, 7/28/17			642		645,617
Federal-Mogul Corp.:
Term Loan B, 2.14%, 12/29/14			1,293		1,203,326
Term Loan C, 2.14%, 12/28/15			542		504,073
The Goodyear Tire & Rubber Co., Second Lien Term Loan, 4.75%, 4/30/19			1,150		1,154,313
Schaeffler AG, Term Loan B2, 6.00%, 1/27/17			420		419,895
Transtar Holding Co., First Lien Term Loan, 5.50%, 10/09/18			494		498,700
UCI International, Inc., Term Loan B, 5.50%, 7/26/17			343		343,751
					4,769,675
Biotechnology — 0.5%
Grifols, Inc., Term Loan B, 4.25%, 6/01/17			634		636,869

Floating Rate Loan Interests (b)		Par (000)		Value
Building Products — 1.8%
Armstrong World Industries, Inc., Term Loan B, 4.00%, 3/09/18	USD		760	$	760,256
CPG International, Inc., Term Loan, 5.75%, 9/18/19			818		824,085
Wilsonart International Holdings LLC, Term Loan B, 5.50%, 10/31/19			800		808,400
					2,392,741
Capital Markets — 1.7%
American Capital Holdings, Inc., Term Loan, 5.50%, 8/22/16			603		609,030
HarbourVest Partners LLC, Term Loan B, 4.75%, 11/21/17			370		371,725
Nuveen Investments, Inc.:
Extended First Lien Term Loan, 5.70%—5.81%, 5/13/17			391		395,604
Extended Term Loan, 5.70% – 5.81%, 5/12/17			637		645,901
Incremental Term Loan, 7.25%, 5/13/17			115		115,575
Second Lien Term Loan, 8.25%, 2/28/19			147		149,940
					2,287,775
Chemicals — 4.5%
American Rock Salt Holdings LLC, Term Loan, 5.50%, 4/25/17			604		598,353
Chemtura Corp., Exit Term Loan B, 5.50%, 8/27/16			655		659,912
Evergreen Acqco 1 LP, Term Loan, 5.00%, 7/09/19			483		486,978
General Chemical Corp., Term Loan, 5.00% – 5.75% 10/06/15			356		357,102
INEOS US Finance LLC:
3 Year Term Loan, 5.50%, 5/04/15			89		90,978
6 Year Term Loan, 6.50%, 5/04/18			365		372,053
Nexeo Solutions LLC, Term Loan B, 5.00%, 9/08/17			590		587,971
Tronox Pigments (Netherlands) BV, Term Loan B, 4.25%, 2/08/18			602		601,209
Univar, Inc., Term Loan B, 5.00%, 6/30/17			412		410,129
US Coatings Acquisition, Inc.:
Term Loan, 4.75%, 2/03/20			1,510		1,528,331
Term Loan B, 5.25%, 2/03/20	EUR		145		191,232
					5,884,248
Commercial Banks — 0.5%
Everest Acquisition LLC, Term Loan B1, 5.00%, 5/24/18	USD		660		665,537
Commercial Services & Supplies — 5.5%
ACCO Brands Corp., Term Loan B, 4.25%, 4/30/19			605		609,885
ADS Waste Holdings, Inc., Term Loan B, 5.25%, 10/09/19			1,305		1,306,227
Altegrity, Inc.:
Term Loan, 3.20%, 2/21/15			225		217,125
Tranche D Term Loan, Tranche D Term Loan, 7.75%, 2/20/15			279		279,288
ARAMARK Corp.:
Extended Synthetic LC, 3.46%, 7/26/16			9		9,420
Extended Term Loan B, 3.45%, 7/26/16			211		211,797
Extended Term Loan C, 3.45% – 3.56%, 7/26/16			116		116,936
Letter of Credit, 3.46%, 7/26/16			14		13,929
AWAS Finance Luxembourg 2012 SA, Term Loan, 4.75%, 7/16/18			309		314,013
AWAS Finance Luxembourg Sarl, Term Loan B, 5.25%, 6/10/16			327		329,269
Delos Aircraft, Inc., Term Loan 2, 4.75%, 4/12/16			825		829,810
Garda World Security Corp., Term Loan B, 4.50%, 11/13/19			165		166,131
KAR Auction Services, Inc., Term Loan B, 5.00%, 5/19/17			1,182		1,193,820
Progressive Waste Solutions Ltd., Term Loan B, 3.50%, 10/24/19			315		317,756
Protection One, Inc., Term Loan, 5.75%, 3/21/19			561		565,669
WEST Corp., Term Loan B8, 5.75%, 2/07/18			690		692,015
					7,173,090

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Schedule of Investments (continued)	BlackRock Defined Opportunity Credit Trust (BHL) (Percentages shown are based on Net Assets)

Floating Rate Loan Interests (b)		Par (000)		Value
Communications Equipment — 4.0%
Alcatel-Lucent:
Term Loan B, 6.25%, 7/29/16	USD		440	$	444,598
Term Loan C, 7.25%, 1/31/19			755		763,305
Term Loan D, 7.75%, 1/31/19	EUR		245		320,704
Arris Group, Inc., Term Loan B, 3.50%, 2/07/20	USD		175		174,617
Avaya, Inc.:
Extended Term Loan B3, 4.79%, 10/26/17			182		169,600
Term Loan B5, 8.00%, 3/30/18			121		121,268
CommScope, Inc., Term Loan, 4.25%, 1/12/18			810		813,413
Riverbed Technology, Inc., Term Loan, 4.00%, 12/18/19			380		384,275
Zayo Group, LLC Refinancing, Term Loan B, 5.25%, 7/12/19			2,075		2,081,317
					5,273,097
Construction & Engineering — 1.5%
BakerCorp International, Inc., Term Loan B, 5.00%, 2/14/20			360		360,486
Centaur LLC:
First Lien Term Loan, 8.75%, 2/15/19			570		570,359
Second Lien Term Loan, 8.75%, 2/15/20			280		284,200
Safway Services LLC, First Out Term Loan, 9.00%, 12/16/17			750		750,000
					1,965,045
Construction Materials — 1.9%
HD Supply, Inc., Senior Debt B, 4.50%, 10/12/17			2,537		2,544,124
Consumer Finance — 0.8%
Springleaf Financial Funding Co., Term Loan, 5.50%, 5/10/17			1,060		1,063,752
Containers & Packaging — 0.5%
Berry Plastics Holding Corp., Term Loan C, 2.20%, 4/03/15			247		247,223
Sealed Air Corp., Term Loan, 4.00%, 10/03/18			379		383,567
					630,790
Distributors — 0.4%
Crossmark Holdings, Inc., Term Loan, 4.50%, 1/31/20			235		235,099
VWR Funding, Inc., Extended Term Loan B, 4.54%, 4/03/17			280		282,013
					517,112
Diversified Consumer Services — 2.9%
Bright Horizons Family, Inc., Term Loan B, 4.00%, 1/16/20			645		648,225
Coinmach Service Corp.:
Delayed Draw Term Loan, 3.21%, 11/20/14			241		235,188
Term Loan B, 3.21%, 11/20/14			886		866,304
Education Management LLC, Term Loan C3, 8.25%, 3/29/18			113		96,946
Laureate Education, Inc., Extended Term Loan, 5.25%, 6/18/18			692		695,924
ServiceMaster Co., Term Loan, 2.70%, 4/01/17			870		867,048
Weight Watchers International, Inc., Term Loan F, 4.00%, 3/15/19			350		351,441
					3,761,076
Diversified Financial Services — 1.9%
Reynolds Group Holdings Inc., Dollar Term Loan, 4.75%, 9/28/18			1,416		1,432,088
Telesat LLC, Term Loan B, 4.25%, 3/28/19			741		746,464
WMG Acquisition Corp., Term Loan, 5.25%, 11/01/18			370		374,162
					2,552,714
Diversified Telecommunication Services — 4.9%
Consolidated Communications, Inc., Term Loan B3, 5.25%, 12/31/18			880		888,527
Floating Rate Loan Interests (b)		Par (000)		Value
Diversified Telecommunication Services (concluded)
Hawaiian Telcom Communications, Inc., Term Loan B, 7.00%, 2/28/17	USD		529	$	538,588
Integra Telecom, Inc.:
Second Lien Term Loan, 9.75%, 2/15/20			245		250,513
Term Loan, 9.25%, 2/15/19			465		470,115
Level 3 Financing, Inc.:
2016 Term Loan B, 4.75%, 2/01/16			668		675,844
2019 Term Loan B, 5.25%, 8/01/19			650		656,636
Term Loan, 4.75%, 8/01/19			1,735		1,748,880
Syniverse Holdings, Inc., Delayed Draw Term Loan, 4.00%, 4/23/19			460		459,425
US Telepacific Corp., Term Loan B, 5.75%, 2/23/17			738		736,072
					6,424,600
Electronic Equipment, Instruments & Components — 0.4%
CDW LLC, Extended Term Loan, 4.00%, 7/14/17			503		503,994
Energy Equipment & Services — 2.2%
Dynegy Midwest Generation LLC, Coal Co. Term Loan, 9.25%, 8/04/16			542		559,344
Dynegy Power LLC, Gas Co. Term Loan, 9.25%, 8/04/16			632		657,214
MEG Energy Corp., Term Loan, 3.75%, 3/20/20			965		967,413
Tervita Corp., Incremental Term Loan, 3.20%, 5/01/18			450		452,322
Unifrax I LLC/Unifrax Holding Co., Term Loan, 4.25%, 11/28/18			220		221,454
					2,857,747
Food & Staples Retailing — 2.2%
Alliance Boots Holdings Ltd., Term Loan B1, 3.49%, 7/09/15	GBP		900		1,337,192
Pilot Travel Centers LLC, Term Loan B2, 4.25%, 8/07/19	USD		484		488,171
Rite Aid Corp.:
Second Lien Term Loan, 5.75%, 7/07/20			235		240,353
Term Loan 6, 4.00%, 2/21/20			225		225,434
Supervalu, Inc., Term Loan B, 6.25%, 2/05/18			520		525,850
					2,817,000
Food Products — 2.2%
Advance Pierre Foods, Inc., Term Loan, 5.75%, 7/10/17			545		551,643
Del Monte Foods Co., Term Loan, 4.50%, 3/08/18			888		890,600
Michael Foods Group, Inc., Term Loan, 4.25%, 2/23/18			170		171,447
Pinnacle Foods Finance LLC:
Extended Term Loan B, 3.70%, 10/03/16			39		39,647
Term Loan E, 4.75%, 10/17/18			499		503,916
Solvest Ltd. (Dole):
Term Loan B-2, 5.00% – 6.00%, 7/06/18			278		277,699
Term Loan C-2, 5.00% – 6.00%, 7/06/18			497		496,935
					2,931,887
Health Care Equipment & Supplies — 4.6%
Bausch & Lomb, Inc., Term Loan B, 5.25%, 5/17/19			1,323		1,333,116
Biomet, Inc., Extended Term Loan B, 3.95% – 4.06%, 7/25/17			465		468,037
BSN Medical Acquisition Holding GmbH, Term Loan B, 5.00%, 8/28/19			385		386,540
Capital Safety North America Holding, Inc., Term Loan, 4.50%, 1/21/19			352		352,338
DJO Finance LLC:
Extended Term Loan B2, 5.20%, 11/01/16			189		190,044
Term Loan B3, 6.25%, 9/15/17			1,052		1,060,604
Hologic, Inc., Term Loan B, 4.50%, 8/01/19			1,118		1,129,784
IASIS Healthcare LLC, Term Loan B2, 4.50%, 5/03/18			96		96,807
Immucor, Inc., Term Loan B1, 5.00%, 8/18/18			815		813,700
LHP Hospital Group, Inc., Term Loan, 9.00%, 7/03/18			214		218,738
					6,049,708

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Schedule of Investments (continued)	BlackRock Defined Opportunity Credit Trust (BHL) (Percentages shown are based on Net Assets)

Floating Rate Loan Interests (b)		Par (000)		Value
Health Care Providers & Services — 5.5%
American Renal Holdings Co., Inc.:
First Lien Term Loan, 4.00%, 8/14/19	USD		660	$	658,350
Second Lien Term Loan, 8.50%, 2/14/20			410		408,975
Ardent Medical Services, Inc., Term Loan, 6.75%, 7/02/18			265		268,644
CHG Buyer Corp., First Lien Term Loan, 5.00%, 11/22/19			459		464,248
ConvaTec, Inc., Term Loan, 5.00%, 12/22/16			581		586,854
DaVita, Inc.:
Term Loan B, 4.50%, 10/20/16			1,006		1,012,918
Term Loan B2, 4.00%, 11/01/19			630		634,523
Emergency Medical Services Corp., Term Loan, 4.00%, 5/25/18			631		631,973
Genesis HealthCare Corp., Term Loan B, 10.00%—10.75%, 9/25/17			215		210,223
Harden Healthcare LLC:
Add on Term Loan A, 7.75%, 3/02/15			411		402,796
Term Loan A, 8.50%, 3/02/15			273		270,586
HCA, Inc., Extended Term Loan B3, 3.45%, 5/01/18			235		236,074
inVentiv Health, Inc.:
Combined Term Loan, 7.50%, 8/04/16			170		167,084
Incremental Term Loan B-3, 7.75%, 5/15/18			219		215,289
Medpace, Inc., Term Loan, 6.50% – 7.25%, 6/16/17			507		504,742
US Renal Care, Inc., First Lien Term Loan, 6.25%, 7/02/19			512		519,471
Vanguard Health Holding Co. II LLC (Vanguard Health Systems, Inc.), Term Loan B, 5.00%, 1/29/16			59		59,476
					7,252,226
Health Care Technology — 1.5%
IMS Health, Inc., Term Loan B, 3.75%, 8/25/17			752		753,490
Kinetic Concepts, Inc., Term Loan C1, 5.50% – 6.50%, 5/04/18			921		932,803
MedAssets, Inc., Term Loan B, 4.00%, 12/13/19			285		286,662
					1,972,955
Hotels, Restaurants & Leisure — 7.7%
Alpha D2 Ltd., Extended Term Loan B2, 6.00%, 4/30/19			606		613,101
Boyd Gaming Corp., Incremental Term Loan, 6.00%, 12/17/15			375		377,971
Caesars Entertainment Operating Co., Inc.:
Term Loan, 9.25%, 4/25/17			320		326,400
Term Loan B1, 3.20%, 1/28/15			632		630,520
Golden Living, Term Loan, 5.00%, 5/04/18			366		350,674
Harrah’s Property Co., Mezzanine Term Loan, 3.69%, 2/13/14			1,333		1,226,084
MGM Resorts International, Term Loan B, 4.25%, 12/20/19			775		783,912
OSI Restaurant Partners LLC, Term Loan B, 4.75%, 10/24/19			580		587,313
Sabre, Inc., Term Loan B, 5.25%, 2/01/19			320		319,773
SeaWorld Parks & Entertainment, Inc., Term Loan B, 4.00%, 8/17/17			426		428,265
Six Flags Theme Parks, Inc., Term Loan B, 4.00% – 5.25%, 12/20/18			342		345,835
Station Casinos, Inc.:
2011 Term Loan B2, 6.25%, 6/17/16			95		94,209
Term Loan B, 5.50%, 9/27/19			793		797,636
Term Loan B, 5.00%, 2/13/20			1,200		1,210,000
Term Loan B1, 3.20%, 6/17/16			351		353,660
Twin River Worldwide Holdings, Inc., Term Loan, 8.50%, 11/05/15			484		486,965
Wendy’s International, Inc., Term Loan B, 4.75%, 5/15/19			1,082		1,091,346
					10,023,664
Floating Rate Loan Interests (b)		Par (000)		Value
Household Products — 1.1%
Prestige Brands, Inc., Term Loan, 5.25%—6.25%, 1/31/19	USD		469	$	471,231
Spectrum Brands, Inc., Term Loan, 4.50%, 12/17/19			955		966,536
					1,437,767
Independent Power Producers & Energy Traders — 0.8%
The AES Corp., Term Loan, 4.25%, 6/01/18			768		771,095
Calpine Corp., Term Loan B1, 4.50%, 4/02/18			214		215,171
					986,266
Industrial Conglomerates — 1.2%
Sequa Corp., Term Loan B, 5.25%, 6/19/17			1,496		1,513,545
Insurance — 1.6%
Alliant Holdings I, Inc., Term Loan B, 5.00%, 12/20/19			425		428,187
Asurion LLC, Term Loan B1, 5.50%, 5/24/19			305		305,891
CNO Financial Group, Inc.:
Term Loan B-1, 4.25%, 9/28/16			390		392,421
Term Loan B-2, 5.00%, 9/20/18			536		541,495
Cunningham Lindsey Group, Inc., Term Loan B, 5.00%, 12/10/19			370		374,625
					2,042,619
Internet Software & Services — 0.4%
Web.com Group, Inc., Term Loan B, 5.50%, 10/27/17			521		525,454
IT Services — 5.9%
CCC Information Services, Inc., Term Loan, 5.25%, 12/20/19			215		216,290
Ceridian Corp., Extended Term Loan, 5.95%, 5/09/17			954		964,859
First Data Corp.:
2018 Add-on Term Loan, 5.20%, 9/24/18			595		594,732
Extended 2018 Term Loan B, 4.20%, 3/23/18			2,910		2,872,851
Genpact International, Inc., Term Loan B, 4.25%, 8/30/19			808		816,055
InfoGroup, Inc., Term Loan, 5.75%, 5/25/18			272		246,696
iPayment, Inc., Term Loan B, 5.75%, 5/08/17			74		73,914
SunGard Data Systems, Inc., Term Loan D, 4.50%, 1/31/20			590		594,425
TransUnion LLC, Term Loan B, 5.50%, 2/12/18			1,259		1,266,628
					7,646,450
Leisure Equipment & Products — 0.5%
Eastman Kodak Co., DIP Term Loan B, 8.50%, 7/19/13			192		192,013
FGI Operating Co. LLC, Term Loan, 5.50%, 4/19/19			413		411,632
					603,645
Life Sciences Tools & Services — 0.2%
Patheon, Inc., Term Loan, 7.25%, 12/06/18			274		277,399
Machinery — 2.7%
Alliance Laundry Systems LLC:
First Lien Term Loan, 5.50%, 12/07/18			230		230,934
Second Lien Term Loan, 9.50%, 12/10/19			131		133,200
Dematic S.A., Term Loan, 5.25%, 12/27/19			570		573,739
Intelligrated, Inc., First Lien Term Loan, 4.50% – 6.75%, 7/30/18			399		399,000
Rexnord Corp., Term Loan B, 4.50%, 4/02/18			312		313,802
Silver II US Holdings LLC, First Lein Term Loan, 4.75%, 12/05/19			650		650,000
Terex Corp. Term Loan B:
4.50%, 4/28/17			598		603,504
5.00%, 4/28/17	EUR		59		77,573
Wabash National Corp., Term Loan B, 6.00%, 5/02/19	USD		516		519,316
					3,501,068

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Schedule of Investments (continued)	BlackRock Defined Opportunity Credit Trust (BHL) (Percentages shown are based on Net Assets)

Floating Rate Loan Interests (b)		Par (000)		Value
Media — 15.8%
AMC Entertainment, Inc., Term Loan B3, 3.75%, 2/22/18	USD		322	$	324,002
BBHI Acquisition LLC, Term Loan B, 4.50%, 12/14/17			626		627,806
Capsugel Holdings US, Inc., Term Loan B, 4.75%, 8/01/18			541		546,296
Catalina Marketing Corp., Extended Term Loan B, 5.70%, 9/29/17			508		508,623
Cengage Learning Acquisitions, Inc.:
Non-Extended Term Loan, 2.71%, 7/03/14			227		177,448
Tranche 1 Incremental, 7.50%, 7/03/14			367		292,047
Charter Communications Operating LLC:
Extended Term Loan C, 3.46%, 9/06/16			538		540,169
Term Loan D, 4.00%, 5/15/19			313		315,128
Clarke American Corp., Term Facility B, 2.70%, 6/30/14			89		88,250
Clear Channel Communications, Inc.:
Term Loan B, 3.85%, 1/29/16			1,472		1,258,645
Term Loan C, 3.85%, 1/29/16			167		141,178
Cumulus Media, Inc., First Lien Term Loan, 4.50%, 9/17/18			609		614,132
EMI Music Publishing Ltd., Term Loan B, 5.50%, 6/29/18			358		362,051
Foxco Acquisition Sub LLC, Term Loan B, 5.50%, 7/14/17			693		701,235
Getty Images, Inc., Term Loan B, 4.75%, 10/18/19			515		519,007
Gray Television, Inc., Term Loan B, 4.75%, 10/15/19			612		617,981
Houghton Mifflin Harcourt Publishing Co., DIP Term Loan B, 7.25%, 6/01/18			432		433,896
Hubbard Broadcasting, Term Loan B, 4.50%, 4/28/17			403		406,430
Intelsat Jackson Holdings SA, Term Loan B1, 4.50%, 4/02/18			2,357		2,379,334
Interactive Data Corp., Term Loan B, 3.75%, 2/11/18			1,312		1,313,613
Kabel Deutschland GmbH, Term Loan F1, 3.50%, 2/01/19			770		771,240
Lavena Holding 4 GmbH (Prosiebensat.1 Media AG):
Term Loan B, 2.62%, 3/06/15	EUR		460		591,572
Term Loan C, 3.00%, 3/04/16			460		594,578
Mediacom LLC, Term Loan E, 4.50%, 10/23/17	USD		488		487,500
NEP Supershooters LP:
First Lien Term Loan, 5.25%, 1/18/20			330		330,927
Second Lien Term Loan, 9.50%, 8/18/20			230		235,750
Term Loan, 4.75%, 1/18/20			330		330,825
Nielsen Finance LLC, Class B Term Loan, 3.95%, 5/02/16			627		628,702
Sinclair Television Group, Inc., Term Loan B, 4.00%, 10/28/16			295		296,392
Univision Communications, Inc., Extended Term Loan, 4.45%, 3/31/17			770		770,328
UPC Broadband Holding BV, Term Loan U, 4.12%, 12/29/17	EUR		196		255,508
UPC Financing Partnership, Term Loan T, 3.70%, 12/30/16	USD		80		80,186
Virgin Media Investment Holdings:
Term Loan B, 4.50%, 2/15/20	GBP		650		982,227
Term Loan B, 3.50%, 2/17/20	USD		935		929,418
WC Luxco Sarl, Term Loan B-3, 4.25%, 3/15/18			184		185,822
Weather Channel, Term Loan B, 4.25%, 2/07/17			406		409,055
WideOpenWest Finance LLC, First Lien Term Loan, 6.25%, 7/17/18			517		523,479
					20,570,780
Metals & Mining — 5.0%
Ameriforge Group, Inc.:
First Lien Term Loan, 5.00%, 12/19/19			375		378,517
Second Lien Term Loan, 8.75%, 12/18/20			185		187,544
Floating Rate Loan Interests (b)		Par (000)		Value
Metals & Mining (concluded)
Constellium Holdco BV, Term Loan B, 9.25%, 5/25/18	USD		517	$	527,748
FMG America Finance, Inc., Term Loan, 5.25%, 10/18/17			1,865		1,887,672
Metals USA, Inc., Term Loan, 6.25%, 11/15/19			455		455,569
Novelis, Inc., Term Loan, 4.00%, 3/10/17			1,154		1,154,923
SunCoke Energy, Inc., Term Loan B, 4.00%, 7/26/18			137		136,844
Walter Energy, Inc., Term Loan B, 5.75%, 4/02/18			1,141		1,143,299
Windsor Financing LLC, Term Loan B, 6.25%, 12/05/17			648		668,231
					6,540,347
Multiline Retail — 3.7%
99¢ Only Stores, Term Loan, 5.25%, 1/11/19			460		462,863
Apex Tool Group LLC, Term Loan B, 4.50%, 1/28/20			485		489,763
BJ’s Wholesale Club, Inc.:
First Lien Term Loan, 5.75%, 9/13/19			414		414,223
Second Lien Term Loan, 9.75%, 3/26/20			285		294,442
Dollar General Corp., Tranche B-2 Term Loan, 2.95%, 7/07/14			316		315,982
HEMA Holding BV, Second Lien Term Loan, 5.12%, 1/05/17	EUR		1,800		2,133,790
The Neiman Marcus Group, Inc., Extended Term Loan, 4.00%, 5/16/18	USD		690		689,773
					4,800,836
Oil, Gas & Consumable Fuels — 4.0%
Chesapeake Energy Corp., Unsecured Term Loan, 5.75%, 12/01/17			985		1,005,419
Gibson Energy ULC, Term Loan B, 4.75%, 6/15/18			738		745,191
Obsidian Natural Gas Trust, Term Loan, 7.00%, 11/02/15			447		451,564
Plains Exploration & Production, 7-Year Term Loan B, 4.00%, 11/30/19			900		901,503
Samson Investment Co., Second Lien Term Loan, 6.00%, 9/25/18			295		297,767
Tesoro Corp., Term Loan B, 2.55%, 1/30/16			540		544,725
Vantage Drilling Co., Term Loan, 6.25%, 10/26/17			1,299		1,305,056
					5,251,225
Pharmaceuticals — 4.8%
Aptalis Pharma, Inc., Term Loan B, 5.50%, 2/10/17			1,109		1,111,559
Par Pharmaceutical, Term Loan B, 4.25%, 9/28/19			1,302		1,300,110
Pharmaceutical Product Development, Inc., Term Loan B, 4.25%, 12/05/18			1,392		1,399,405
Quintiles Transnational Corp., Term Loan B, 4.50%, 6/08/18			577		581,341
RPI Finance Trust, Incremental Tranche 2, 4.00%, 11/09/18			89		90,087
Valeant Pharmaceuticals International, Inc. Tranche B:
Series C, 3.50%, 12/11/19			615		617,306
Series D, 3.50%, 2/13/19			665		668,251
Warner Chilcott Corp.:
Incremental Term Loan B-1, 4.25%, 3/15/18			102		102,647
Term Loan B-1, 4.25%, 3/15/18			268		270,286
Term Loan B-2, 4.25%, 3/15/18			83		83,562
					6,224,554
Professional Services — 1.7%
Booz Allen Hamilton, Inc., Term Loan B, 4.50%, 7/31/19			643		649,017
Emdeon, Inc., Term Loan B1, 5.00%, 11/02/18			787		796,828
ON Assignment, Inc., Term Loan B, 5.00%, 5/15/19			225		227,184
Truven Health Analytics, Inc., Term Loan B, 5.75%, 6/01/19			602		607,622
					2,280,651
Real Estate Investment Trusts (REITs) — 0.6%
iStar Financial, Inc., Term Loan, 4.50%, 9/28/17			747		746,984

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Schedule of Investments (continued)	BlackRock Defined Opportunity Credit Trust (BHL) (Percentages shown are based on Net Assets)

Floating Rate Loan Interests (b)		Par (000)		Value
Real Estate Management & Development — 1.5%
Realogy Corp.:
Extended Letter of Credit Loan, 4.46%, 10/10/16	USD		88	$	87,748
Extended Synthetic Letter of Credit, 3.23%, 10/10/13			21		21,046
Extended Term Loan, 4.42%, 10/10/16			1,815		1,814,833
					1,923,627
Road & Rail — 0.4%
Genesee & Wyoming, Inc., Term Loan A, 2.70%, 9/29/17			259		258,657
Road Infrastructure Investment LLC, Term Loan B, 6.25%, 3/30/18			233		233,820
					492,477
Semiconductors & Semiconductor Equipment — 1.8%
Freescale Semiconductor, Inc.:
Extended Term Loan B, 4.45%, 12/01/16			629		628,764
Term Loan, 5.50%, 3/20/20			930		926,280
NXP BV:
Term Loan A-2, 5.50%, 3/03/17			390		397,066
Term Loan C, 4.75%, 1/11/20			435		441,660
					2,393,770
Software — 3.7%
Blackboard, Inc., Term Loan B2, 6.25%, 10/04/18			116		116,595
GCA Services Group, Inc.:
Second Lien Term Loan, 9.25%, 10/22/20			220		217,800
Term Loan B, 5.25%, 11/01/19			440		440,000
Infor US, Inc., Term Loan B2, 5.25%, 4/05/18			1,776		1,795,321
Kronos, Inc., Second Lien Term Loan, 9.75%, 4/30/20			345		358,800
RP Crown Parent LLC, First Lien Term Loan, 6.75%, 12/21/18			360		365,177
Sophia LP, Term Loan B, 6.25%, 7/19/18			630		634,602
SS&C Technologies, Inc.:
Term Loan B-1, 5.00%, 6/07/19			819		826,333	��
Term Loan B-2, 5.00%, 6/07/19			85		85,483
					4,840,111
Specialty Retail — 6.8%
Academy Ltd., Term Loan, 4.75%, 8/03/18			792		801,171
Bass Pro Group LLC, Term Loan, 4.00%, 11/20/19			620		623,336
Burlington Coat Factory Warehouse Corp., Term Loan B1, 5.50%, 2/23/17			152		153,605
David’s Bridal, Inc., Term Loan B, 5.00%, 10/11/19			920		929,430
Equinox Fitness Clubs, First Lien Term Loan, 5.50%, 11/16/19			455		459,550
The Gymboree Corp., Initial Term Loan, 5.00%, 2/23/18			77		74,301
Harbor Freight Tools USA, Inc., Term Loan B, 5.50%, 11/14/17			458		462,277
Jo-Ann Stores, Inc., Term Loan, 4.75%, 3/16/18			284		283,922
Leslie’s Poolmart, Inc., Term Loan B, 2.00% – 5.25%, 10/16/19			741		749,289
Michaels Stores, Inc., Term Loan, 4.81%, 1/31/20			1,025		1,027,275
Party City Holdings, Inc., Term Loan B, 5.75%, 7/26/19			1,370		1,368,972
PETCO Animal Supplies, Inc., Term Loan, 4.00%, 11/24/17			980		987,640
Floating Rate Loan Interests (b)		Par (000)		Value
Specialty Retail (concluded)
Things Remembered, Inc., Term Loan B, 8.00%, 5/24/18	USD		314	$	309,499
Toys ‘R’ Us Delaware, Inc., Term Loan B3, 5.25%, 5/25/18			94		89,102
The Yankee Candle Co., Inc., Term Loan B, 5.25%, 4/02/19			518		520,992
					8,840,361
Textiles, Apparel & Luxury Goods — 1.4%
Ascend Performance Materials LLC, Term Loan B, 6.75%, 4/10/18			918		927,243
Phillips-Van Heusen Corp., Term Loan B, 3.25%, 12/19/19			390		393,128
Wolverine Worldwide, Inc., Term Loan B, 4.00%, 7/31/19			496		499,515
					1,819,886
Thrifts & Mortgage Finance — 0.6%
Insight Global, Inc., First Lien Term Loan, 6.00%, 10/31/19			450		451,125
Ocwen Financial Corp., Term Loan, 5.00%, 1/22/18			375		379,530
					830,655
Trading Companies & Distributors — 0.4%
WESCO Distribution, Inc., Term Loan B, 4.50%, 12/12/19			510		514,677
Wireless Telecommunication Services — 2.3%
Cricket Communications, Inc., Term Loan, 4.75%, 10/10/19			490		491,534
MetroPCS Wireless, Inc., Tranche B-2 Term Loan, 4.07%, 11/03/16			757		759,230
Vodafone Americas Finance 2, Inc. (d):
Term Loan, 6.88%, 8/11/15			1,314		1,340,404
Term Loan B, 6.25%, 7/11/16			413		423,844
					3,015,012
Total Floating Rate Loan Interests — 135.6%					177,045,501

Warrants (e)			Shares
Software — 0.0%
HMH Holdings/EduMedia, (Issued/Exercisable 3/09/10, 19 Shares for 1 Warrant, Expires 6/22/19, Strike Price $42.27)			1		—
Total Warrants — 0.0%					—
Total Long-Term Investments (Cost — $192,279,003) — 149.9%					195,768,037

Short-Term Securities
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.10% (f)(g)			4,275,893		4,275,893
Total Short-Term Securities (Cost — $4,275,893) — 3.3%					4,275,893
Total Investments (Cost — $196,554,896) — 153.2%					200,043,930
Liabilities in Excess of Other Assets — (53.2)%					(69,493,029	)
Net Assets — 100.0%				$	130,550,901

Notes to Schedule of Investments

(a)				Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. 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.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Schedule of Investments (continued)	BlackRock Defined Opportunity Credit Trust (BHL)

(d)				Represents a payment-in-kind security which may pay interest/dividends in additional par/shares.
(e)				Warrants entitle the Fund 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 of the warrants, if any.
(f)				Investments in issuers considered to be an affiliate of the Fund during the six months ended February 28, 2013, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliate				Shares Held at August 31, 2012				Net Activity				Shares Held at February 28, 2013				Income
BlackRock Liquidity Funds, TempFund, Institutional Class					2,326,441				1,949,452				4,275,893			$	492

(g)				Represents the current yield as of report date.
•				Foreign currency exchange contracts as of February 28, 2013 were as follows:

Currency Purchased			Currency Sold			Counterparty		Settlement Date		Unrealized Appreciation
USD	103,386	CAD		102,000	Deutsche Bank AG		4/17/13		$	4,580
USD	1,297,555	GBP		810,000	Goldman Sachs Group, Inc.		4/17/13			69,033
USD	240,481	EUR		180,000	BNP Paribas SA		4/23/13			5,396
USD	92,995	EUR		70,000	BNP Paribas SA		4/23/13			1,573
USD	118,401	EUR		89,000	BNP Paribas SA		4/23/13			2,165
USD	63,565	EUR		47,000	Citigroup Inc.		4/23/13			2,181
USD	3,605,745	EUR		2,706,000	Citigroup Inc.		4/23/13			71,629
Total									$	156,557

•

Credit default swaps — sold protection outstanding as of February 28, 2013 were as follows:

Issuer

Receive
Fixed
Rate

Counterparty/Exchange

Expiration
Date

Credit
Rating¹

Notional
Amount
(000)²

Unrealized
Appreciation
(Depreciation)

Caesars Entertainment Operating Co., Inc.

5.00%

JPMorgan Chase & Co.

12/20/15

CCC

USD

4,183

Caesars Entertainment Operating Co., Inc.

5.00%

JPMorgan Chase & Co.

12/20/15

CCC

USD

138

15,462

Caesars Entertainment Operating Co., Inc.

5.00%

JPMorgan Chase & Co.

12/20/15

CCC

USD

124

20,889

Caesars Entertainment Operating Co., Inc.

5.00%

Goldman Sachs Group, Inc.

3/20/16

CCC

USD

3,847

Caesars Entertainment Operating Co., Inc.

5.00%

Goldman Sachs Group, Inc.

3/20/16

CCC

USD

3,847

Caesars Entertainment Operating Co., Inc.

5.00%

Goldman Sachs Group, Inc.

3/20/16

CCC

USD

143

9,236

Caesars Entertainment Operating Co., Inc.

5.00%

Goldman Sachs Group, Inc.

6/20/16

CCC

USD

190

9,437

Caesars Entertainment Operating Co., Inc.

5.00%

Goldman Sachs Group, Inc.

3/20/17

CCC

USD

(682

)

Total

66,219

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

•				For Fund compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. 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 to valuation techniques 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 that the Fund has the ability to access
•				Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
•				Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments and derivative financial instruments)

				The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
				Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. 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 is not necessarily an indication of the risks associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to the Fund’s most recent financial statements as contained in its semi-annual report.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Schedule of Investments (continued)	BlackRock Defined Opportunity Credit Trust (BHL)

The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy as of February 28, 2013:

	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments:
Asset-Backed Securities		—		—	$	5,105,830	$	5,105,830
Common Stocks		—	$	700,836		—		700,836
Corporate Bonds		—		12,915,870		—		12,915,870
Floating Rate Loan Interests		—		163,277,715		13,767,786		177,045,501
Short-Term Securities	$	4,275,893		—		—		4,275,893
Unfunded Commitments		—		180		—		180
Total	$	4,275,893	$	176,894,601	$	18,873,616	$	200,044,110

	Level 1		Level 2			Level 3		Total
Derivative Financial Instruments¹
Assets:
Credit contracts		—	$	66,901			—	$	66,901
Foreign currency exchange contracts		—		156,557			—		156,557
Liabilities:
Credit contracts		—		(682	)		—		(682	)
Total		—	$	222,776			—	$	222,776

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

Certain of the Fund’s assets and liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of February 28, 2013, such assets and liabilities are categorized within the disclosure hierarchy as follows:

	Level 1		Level 2			Level 3		Total
Assets:
Foreign currency at value	$	141,316		—			—	$	141,316
Liabilities:
Bank overdraft		—	$	(313,625	)		—		(313,625	)
Loans payable		—		(48,000,000	)		—		(48,000,000	)
Total	$	141,316	$	(48,313,625	)		—	$	(48,172,309	)

				There were no transfers between Level 1 and Level 2 during the six months ended February 28, 2013.
				A reconciliation of Level 3 investments is presented when the Fund had a significant amount of Level 3 investments at the beginning and/or end of the period in relation to net assets. The following table is a reconciliation of Level 3 investments for which significant unobservable inputs were used in determining fair value:

	Asset-Backed Securities			Floating Rate Loan Interests			Total
Assets:
Opening Balance, as of August 31, 2012	$	3,427,772		$	10,204,028		$	13,631,800
Transfers into Level 3²		—			2,977,415			2,977,415
Transfers out of Level 3³		—			(3,112,046	)		(3,112,046	)
Accrued discounts/premiums		12,834			13,111			25,945
Net realized gain (loss)		69,456			29,826			99,282
Net change in unrealized appreciation/depreciation⁴		352,013			128,358			480,371
Purchases		2,276,608			5,633,808			7,910,416
Sales		(1,032,853	)		(2,106,714	)		(3,139,567	)
Closing Balance, as of February 28, 2013	$	5,105,830		$	13,767,786		$	18,873,616

As of August 31, 2012, the Fund used observable inputs in determining the value of certain investments. As of February 28, 2013, the Fund used significant unobservable inputs in determining the value of the same investments. As a result, investments with a beginning of period value of $3,112,046 transferred from Level 2 to Level 3 in the disclosure hierarchy.

As of August 31, 2012, the Fund used significant unobservable inputs in determining the value of certain investments. As of February 28, 2013, the Fund used observable inputs in determining the value of the same investments. As a result, investments with a beginning of period value of $2,977,415 transferred from Level 3 to Level 2 in the disclosure hierarchy.

⁴

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 as of February 28, 2013 was $503,059.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Schedule of Investments (concluded)	BlackRock Defined Opportunity Credit Trust (BHL)

The following table summarizes the valuation techniques used and unobservable inputs developed by the BlackRock Global Valuation Methodologies Committee (“Global Valuation Committee”) to determine the value of certain of the Fund’s Level 3 investments as of February 28, 2013. The table does not include Level 3 investments with values derived utilizing third party pricing information without adjustment. A significant change in third party pricing information could result in a significantly lower or higher value of such Level 3 investments. The value of Level 3 investments derived using third party pricing information is $16,811,868.

	Value		Valuation Techniques	Unobservable Inputs¹	Range of Unobservable Inputs Utilized
Assets:
Floating Rate Loan Interests	$	673,382	Discounted Cash Flow	Yield	9.50%
		309,499	Market Comparable Yield Analysis	Yield	8.375%
		1,078,867	Cost²	N/A	—
Total	$	2,061,748

A change to the unobservable input may result in a significant change to the value of the investment as follows:

Unobservable Input				Impact to Value if Input Increases		Impact to Value if Input Decreases
Yield				Decrease		Increase

The Fund fair values certain of its Level 3 investments using prior transaction prices (acquisition cost), although the transaction may not have occurred during the current reporting period. In such cases, these investments are generally privately held investments. There may not be a secondary market, and/or there are a limited number of investors. The determination to fair value such investments at cost is based upon factors consistent with the principles of fair value measurement that are reasonably available to the Global Valuation Committee, or its delegate. Valuations are reviewed utilizing available market information to determine if the carrying value should be adjusted. Such market data may include, but is not limited to, observations of the trading multiples of public companies considered comparable to the private companies being valued, financial or operational information released by the company, and/or news or corporate events that affect the investment. Valuations may be adjusted to account for company-specific issues, the lack of liquidity inherent in a nonpublic investment and the fact that comparable public companies are not identical to the investments being fair valued by the Fund.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Consolidated Schedule of Investments February 28, 2013 (Unaudited)	BlackRock Floating Rate Income Strategies Fund, Inc. (FRA) (Percentages shown are based on Net Assets)

Asset-Backed Securities		Par (000)		Value
ACAS CLO Ltd., Series 2012-1A, Class D, 5.58%, 9/20/23 (a)(b)	USD		1,500	$	1,507,500
Anchorage Capital CLO Ltd., Series 2012-1A, Class B, 3.16%, 1/13/25 (a)(b)			1,750		1,678,075
Apidos CDO, Series 2012-11A, Class D, 4.74%, 1/17/23 (a)(b)			675		676,013
Atrium CDO Corp., Series 9A, Class D, 3.96%, 2/28/24 (a)(b)			750		725,250
Carlyle Global Market Strategies (a)(b):
CLO Ltd., Series 2012-4A, Class D, 4.89%, 1/20/25			700		701,050
Series 2013-1A, Class C, 4.29%, 2/14/25			250		250,000
Cavalry CLO Ltd., Series 2A, Class D, 4.38%, 1/17/24 (a)(b)(c)			500		486,750
Cent CLO LP, Series 2013-17A, Class C, 3.79%, 1/30/25 (a)(b)			500		466,050
Fraser Sullivan CLO VII Ltd., Series 2012-7A, Class C, 4.30%, 4/20/23 (a)(b)			950		949,991
Goldentree Loan Opportunities VI Ltd., Series 2012-6A, Class D, 4.50%, 4/17/22 (a)(b)			1,550		1,541,165
Highbridge Loan Management Ltd., Series 2012-1A, Class C, 5.71%, 9/20/22 (a)(b)			1,500		1,509,000
ING Investment Management (a)(b):
Series 2012-2A, Class D, 4.85%, 10/15/22			1,550		1,553,875
Series 2012-4A, Class C, 4.73%, 10/15/23			700		705,824
LCM XI LP, Series 11A, Class D2, 4.25%, 4/19/22 (a)(b)			1,625		1,608,750
Marea CLO Ltd., Series 2012-1A, Class D, 4.85%, 10/16/23 (a)(b)			1,650		1,658,250
Octagon Investment Partners XIV Ltd., Series 2012-1A, Class C, 4.56%, 1/15/24 (a)(b)			950		921,500
OZLM Funding Ltd., Class C (a)(b):
Series 2012-2A, 5.08%, 10/30/23			500		504,650
Series 2013-3A, 4.15%, 1/22/25			500		488,850
Race Point VI CLO Ltd., Series 2012-6A, Class D, 4.79%, 5/24/23 (a)(b)			1,075		1,085,320
Regatta Funding LP, Series 2013-2A, Class C, 4.80%, 1/15/25 (a)(b)			500		482,450
Symphony CLO Ltd., Class D (a)(b):
Series 2012-9A, 4.55%, 4/16/22			1,625		1,614,762
Series 2012-10A, 5.55%, 7/23/23			1,500		1,518,750
West CLO Ltd., Series 2012-1A, Class C, 5.05%, 10/30/23 (a)(b)			1,385		1,402,880
Total Asset-Backed Securities — 4.2%					24,036,705

Common Stocks (d)		Shares
Chemicals — 0.0%
GEO Specialty Chemicals, Inc. (a)			23,849		15,621
Diversified Financial Services — 0.3%
Kcad Holdings I Ltd.			217,833,983		1,470,379
Electrical Equipment — 0.0%
Medis Technologies Ltd.			260,833		3
Metals & Mining — 0.0%
Euramax International			468		97,006
Paper & Forest Products — 0.5%
Ainsworth Lumber Co. Ltd. (a)			318,000		1,005,266
Ainsworth Lumber Co. Ltd.			558,853		1,772,072
Western Forest Products, Inc.			84,448		102,361
					2,879,699
Semiconductors & Semiconductor Equipment — 0.0%
SunPower Corp.			1,860		21,836

Common Stocks		Shares			Value
Software — 0.2%
Bankruptcy Management Solutions, Inc.			536		$	6
HMH Holdings/EduMedia			64,670			1,185,589
						1,185,595
Total Common Stocks — 1.0%						5,670,139

Corporate Bonds			Par (000	)
Airlines — 0.2%
American Airlines Pass-Through Trust, Series 2011-2, Class A, 8.63%, 10/15/21	USD		335			348,074
Continental Airlines Pass-Through Trust, Series 2012-3, Class C, 6.13%, 4/29/18			675			673,313
Delta Air Lines Pass-Through Trust, Series 2009-1, Class B, 9.75%, 12/17/16			206			228,139
						1,249,526
Auto Components — 0.4%
Icahn Enterprises LP, 8.00%, 1/15/18			2,085			2,233,556
Building Products — 0.1%
Momentive Performance Materials, Inc., 8.88%, 10/15/20			685			702,981
Capital Markets — 0.0%
E*Trade Financial Corp., 0.00%, 8/31/19 (a)(e)(f)			129			134,885
KKR Group Finance Co. LLC, 6.38%, 9/29/20 (a)			55			64,679
						199,564
Chemicals — 0.5%
GEO Specialty Chemicals, Inc., 7.50%, 3/31/15			1,559			2,666,040
Commercial Services & Supplies — 0.3%
ARAMARK Corp., 3.80%, 2/01/15 (b)			275			275,415
AWAS Aviation Capital Ltd., 7.00%, 10/17/16 (a)			1,231			1,292,962
Brickman Group Holdings, Inc., 9.13%, 11/01/18 (a)			52			55,900
						1,624,277
Communications Equipment — 0.6%
Avaya, Inc., 7.00%, 4/01/19 (a)			787			751,585
Zayo Group LLC/Zayo Capital, Inc.:
8.13%, 1/01/20			1,470			1,642,725
10.13%, 7/01/20			1,095			1,283,888
						3,678,198
Consumer Finance — 0.3%
Inmarsat Finance Plc, 7.38%, 12/01/17 (a)			1,550			1,658,500
Containers & Packaging — 0.1%
Ardagh Packaging Finance Plc, 4.88%, 11/15/22 (a)			292			287,620
Diversified Financial Services — 1.4%
Ally Financial, Inc.:
7.50%, 12/31/13			20			21,000
2.49%, 12/01/14 (b)			1,950			1,954,908
7.50%, 9/15/20			160			193,600
8.00%, 11/01/31			360			452,250
Reynolds Group Issuer, Inc.:
5.75%, 10/15/20			4,075			4,207,437
6.88%, 2/15/21			1,305			1,393,088
						8,222,283
Diversified Telecommunication Services — 0.1%
Lynx I Corp., 5.38%, 4/15/21 (a)			700			717,500
Energy Equipment & Services — 0.3%
FTS International Services LLC/FTS International Bonds, Inc., 8.13%, 11/15/18 (a)			498			515,430
Tervita Corp., 8.00%, 11/15/18 (a)			1,015			1,045,450
						1,560,880
Health Care Equipment & Supplies — 0.1%
DJO Finance LLC, 7.75%, 4/15/18			305			303,475

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Consolidated Schedule of Investments (continued)	BlackRock Floating Rate Income Strategies Fund, Inc. (FRA) (Percentages shown are based on Net Assets)

Corporate Bonds		Par (000)		Value
Health Care Providers & Services — 1.1%
CHS/Community Health Systems, Inc., 5.13%, 8/15/18	USD		1,566	$	1,646,257
HCA, Inc., 6.50%, 2/15/20			1,635		1,831,200
inVentiv Health, Inc., 9.00%, 1/15/18 (a)			820		854,850
Tenet Healthcare Corp.:
6.25%, 11/01/18			195		215,963
8.88%, 7/01/19			550		621,500
4.50%, 4/01/21 (a)			1,155		1,139,119
					6,308,889
Health Care Technology — 0.8%
IMS Health, Inc., 12.50%, 3/01/18 (a)			3,540		4,265,700
Hotels, Restaurants & Leisure — 0.7%
Caesars Operating Escrow LLC (a):
9.00%, 2/15/20			291		287,363
9.00%, 2/15/20			1,386		1,368,675
Little Traverse Bay Bands of Odawa Indians, 9.00%, 8/31/20 (a)			948		910,080
Travelport LLC, 4.94%, 9/01/14 (b)			1,330		1,210,300
Tropicana Entertainment LLC, 9.63%, 12/15/14 (d)(g)			120		—
					3,776,418
Household Durables — 0.2%
Beazer Homes USA, Inc., 6.63%, 4/15/18			790		844,312
United Rentals North America, Inc., 5.75%, 7/15/18			350		376,688
					1,221,000
Independent Power Producers & Energy Traders — 1.7%
Calpine Corp., 7.25%, 10/15/17 (a)			1,917		2,039,209
Energy Future Intermediate Holding Co. LLC:
10.00%, 12/01/20			5,790		6,571,650
10.00%, 12/01/20 (a)			1,115		1,257,162
					9,868,021
IT Services — 0.2%
First Data Corp., 6.75%, 11/01/20 (a)			1,075		1,103,219
Media — 1.1%
AMC Networks, Inc., 7.75%, 7/15/21			455		516,425
Checkout Holding Corp., 11.47%, 11/15/15 (a)(f)			860		635,325
Clear Channel Communications, Inc., 9.00%, 12/15/19 (a)(c)			903		839,790
Clear Channel Worldwide Holdings, Inc. (a):
6.50%, 11/15/22			829		866,305
6.50%, 11/15/22			2,240		2,357,600
NAI Entertainment Holdings LLC, 8.25%, 12/15/17 (a)			1,120		1,220,800
					6,436,245
Metals & Mining — 0.0%
RathGibson, Inc., 11.25%, 2/15/14 (d)(g)			1,390		—
Oil, Gas & Consumable Fuels — 0.1%
EP Energy LLC/Everest Acquisition Finance, Inc., 6.88%, 5/01/19			635		692,150
Paper & Forest Products — 0.1%
Longview Fibre Paper & Packaging, Inc., 8.00%, 6/01/16 (a)			685		719,250
Real Estate Management & Development — 0.2%
Realogy Corp., 7.63%, 1/15/20 (a)			730		823,075
Wireless Telecommunication Services — 1.3%
Digicel Group Ltd., 8.25%, 9/01/17 (a)			835		880,925
iPCS, Inc., 2.42%, 5/01/13 (b)			2,000		1,998,000
Sprint Nextel Corp. (a):
9.00%, 11/15/18			1,530		1,897,200
7.00%, 3/01/20			2,410		2,819,700
					7,595,825
Total Corporate Bonds — 11.9%					67,914,192


Floating Rate Loan Interests (b)		Par (000)		Value
Aerospace & Defense — 1.3%
DigitalGlobe, Inc., Term Loan B, 3.75%, 1/24/20	USD		2,240	$	2,249,094
DynCorp International LLC, Term Loan B, 6.25%, 7/07/16			1,174		1,179,832
The SI Organization, Inc., Term Loan B, 4.50%, 11/22/16			1,703		1,697,755
Spirit Aerosystems, Inc., Term Loan B, 3.75%, 4/18/19			1,588		1,594,622
Transdigm, Inc., Term Loan C, 4.00%, 2/28/20			900		901,692
					7,622,995
Airlines — 2.0%
Delta Air Lines, Inc.:
Term Loan, 3.56%, 9/16/15			1,524		1,425,089
Term Loan B, 4.50%, 4/20/17			4,152		4,187,969
Northwest Airlines, Inc.:
Term Loan, 2.32%, 3/10/17			586		545,566
Term Loan, 2.32%, 3/10/17			1,063		989,653
Term Loan, 1.70%, 9/10/18			483		431,222
Term Loan, 1.70%, 9/10/18			478		426,758
US Airways Group, Inc., Term Loan, 2.70%, 3/21/14			3,570		3,559,690
					11,565,947
Auto Components — 3.6%
Autoparts Holdings Ltd., First Lien Term Loan, 6.50%, 7/28/17			2,864		2,880,446
Federal-Mogul Corp.:
Term Loan B, 2.14%, 12/29/14			5,669		5,274,638
Term Loan C, 2.14%, 12/28/15			2,351		2,185,492
FleetPride Corp., First Lien Term Loan, 5.25%, 11/20/19			1,575		1,593,207
The Goodyear Tire & Rubber Co., Second Lien Term Loan, 4.75%, 4/30/19			5,015		5,033,806
GPX International Tire Corp. (d)(g):
Term Loan, 12.25%, 3/30/12			1,097		—
Term Loan, 13.00%, 3/30/12 (h)			18		—
Schaeffler AG, Term Loan B2, 6.00%, 1/27/17			225		224,944
Transtar Holding Co., First Lien Term Loan, 5.50%, 10/09/18			2,145		2,166,071
UCI International, Inc., Term Loan B, 5.50%, 7/26/17			1,470		1,473,219
					20,831,823
Biotechnology — 0.5%				��
Grifols, Inc., Term Loan B, 4.25%, 6/01/17			2,682		2,695,649
Building Products — 1.9%
Armstrong World Industries, Inc., Term Loan B, 4.00%, 3/09/18			3,699		3,700,985
CPG International, Inc., Term Loan, 5.75%, 9/18/19			3,601		3,627,982
Wilsonart International Holdings LLC, Term Loan B, 5.50%, 10/31/19			3,455		3,491,278
					10,820,245
Capital Markets — 1.6%
American Capital Holdings, Inc., Term Loan, 5.50%, 8/22/16			2,639		2,665,390
HarbourVest Partners LLC, Term Loan B, 4.75%, 11/21/17			1,609		1,617,243
Nuveen Investments, Inc.:
Extended First Lien Term Loan, 5.70%—5.81%, 5/13/17			1,794		1,815,229
Extended Term Loan, 5.70%—5.81%, 5/12/17			2,216		2,246,320
Incremental Term Loan, 7.25%, 5/13/17			440		442,200
Second Lien Term Loan, 8.25%, 2/28/19			588		599,760
					9,386,142
Chemicals — 5.6%
ADS Waste Holdings, Inc., Term Loan B, 5.25%, 10/09/19			5,720		5,725,377
American Rock Salt Holdings LLC, Term Loan, 5.50%, 4/25/17			2,510		2,485,636
Chemtura Corp., Exit Term Loan B, 5.50%, 8/27/16			2,555		2,574,163
Evergreen Acqco 1 LP, Term Loan, 5.00%, 7/09/19			2,091		2,108,557

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Consolidated Schedule of Investments (continued)	BlackRock Floating Rate Income Strategies Fund, Inc. (FRA) (Percentages shown are based on Net Assets)

Floating Rate Loan Interests (b)		Par (000)		Value
Chemicals (concluded)
General Chemical Corp., Term Loan, 5.00%—5.75%, 10/06/15	USD		1,500	$	1,506,031
INEOS US Finance LLC:
3 Year Term Loan, 5.50%, 5/04/15			387		394,236
6 Year Term Loan, 6.50%, 5/04/18			1,624		1,657,466
MacDermid, Inc., Tranche C Term Loan, 2.31%, 4/11/14	EUR		929		1,211,132
Nexeo Solutions LLC, Term Loan B, 5.00%, 9/08/17	USD		2,492		2,484,230
Tronox Pigments (Netherlands) BV, Delayed Draw Term Loan B, 4.25%, 2/08/18			2,602		2,599,985
Univar, Inc., Term Loan B, 5.00%, 6/30/17			1,805		1,796,892
US Coatings Acquisition, Inc.:
Term Loan, 4.75%, 2/03/20			6,580		6,659,881
Term Loan B, 5.25%, 2/03/20	EUR		645		850,652
					32,054,238
Commercial Banks — 0.5%
Everest Acquisition LLC, Term Loan B1, 5.00%, 5/24/18	USD		2,880		2,904,163
Commercial Services & Supplies — 4.5%
ACCO Brands Corp., Term Loan B, 4.25%, 4/30/19			2,654		2,673,564
Altegrity, Inc.:
Term Loan, 3.20%, 2/21/15			1,055		1,018,075
Tranche D Term Loan, 7.75%, 2/20/15			1,351		1,350,581
ARAMARK Corp.:
Extended Synthetic LC, 3.46%, 7/26/16			32		32,367
Extended Term Loan B, 3.45%, 7/26/16			701		705,074
Extended Term Loan C, 3.45%—3.56%, 7/26/16			400		401,802
Letter of Credit, 3.46%, 7/26/16			46		46,369
AWAS Finance Luxembourg Sarl:
Term Loan, 4.75%, 7/16/18			1,279		1,300,913
Term Loan B, 5.25%, 6/10/16			1,543		1,555,059
Delos Aircraft, Inc., Term Loan 2, 4.75%, 4/12/16			3,800		3,822,154
Garda World Security Corp., Term Loan B, 4.50%, 11/13/19			708		714,868
KAR Auction Services, Inc., Term Loan B, 5.00%, 5/19/17			5,122		5,173,220
Progressive Waste Solutions Ltd., Term Loan B, 3.50%, 10/24/19			1,350		1,361,812
Protection One, Inc., Term Loan, 5.75%, 3/21/19			2,442		2,462,915
WEST Corp., Term Loan B6, 5.75%, 6/29/18			3,005		3,013,775
					25,632,548
Communications Equipment — 3.9%
Alcatel-Lucent:
Term Loan B, 6.25%, 7/29/16			1,910		1,929,959
Term Loan C, 7.25%, 1/31/19			3,285		3,321,135
Term Loan D, 7.75%, 1/31/19	EUR		1,055		1,380,991
Arris Group, Inc., Term Loan B, 3.50%, 2/07/20	USD		770		768,314
Avaya, Inc.:					��
Extended Term Loan B3, 4.79%, 10/26/17			788		733,363
Term Loan B5, 8.00%, 3/30/18			523		525,763
CommScope, Inc., Term Loan, 4.25%, 1/12/18			3,092		3,105,087
Riverbed Technology, Inc., Term Loan, 4.00%, 12/18/19			1,730		1,749,463
Telesat Canada, Term Loan A, 4.40%, 3/24/17	CAD		2,500		2,381,818
Zayo Group, LLC, Term Loan B, 5.25%, 7/12/19	USD		6,259		6,279,818
					22,175,711
Construction & Engineering — 1.5%
BakerCorp International, Inc., Term Loan, 5.00%, 2/14/20			1,704		1,708,310
Centaur LLC:
First Lien Term Loan, 8.75%, 2/15/19			2,500		2,501,575
Second Lien Term Loan, 8.75%, 2/15/20			1,230		1,248,450
Safway Services LLC, First Out Term Loan, 9.00%, 12/16/17			3,400		3,400,000
					8,858,335
Floating Rate Loan Interests (b)		Par (000)		Value
Construction Materials — 2.0%
HD Supply, Inc., Senior Debt B, 4.50%, 10/12/17	USD		11,130	$	11,159,228
Consumer Finance — 0.8%
Springleaf Financial Funding Co., Term Loan, 5.50%, 5/10/17			4,630		4,646,390
Containers & Packaging — 0.3%
Sealed Air Corp., Term Loan, 4.00%, 10/03/18			1,660		1,678,729
Distributors — 0.4%
Crossmark Holdings, Inc., Term Loan, 4.50%, 1/31/20			1,030		1,030,432
VWR Funding, Inc., Extended Term Loan B, 4.54%, 4/03/17			1,210		1,218,700
					2,249,132
Diversified Consumer Services — 2.9%
Bright Horizons Family, Inc., Term Loan B, 4.00%, 1/16/20			2,825		2,839,125
Coinmach Service Corp., Term Loan B, 3.21%, 11/20/14			4,964		4,852,144
Education Management LLC, Term Loan C3, 8.25%, 3/29/18			475		408,601
Laureate Education, Inc., Extended Term Loan, 5.25%, 6/18/18			3,008		3,024,102
ServiceMaster Co., Term Loan, 2.70%, 4/01/17			3,810		3,797,073
Weight Watchers International, Inc., Term Loan F, 4.00%, 3/15/19			1,514		1,519,447
					16,440,492
Diversified Financial Services — 1.5%
Reynolds Group Holdings Inc., Dollar Term Loan, 4.75%, 9/28/18			6,189		6,257,819
Telesat LLC, Term Loan B, 4.25%, 3/28/19			781		786,543
WMG Acquisition Corp., Term Loan, 5.25%, 11/01/18			1,600		1,618,000
					8,662,362
Diversified Telecommunication Services — 4.9%
Consolidated Communications, Inc., Term Loan B3, 5.25%, 12/31/18			3,920		3,957,985
Hawaiian Telcom Communications, Inc., Term Loan B, 7.00%, 2/28/17			2,758		2,809,802
Integra Telecom, Inc.:
Second Lien Term Loan, 9.75%, 2/15/20			1,070		1,094,075
Term Loan, 9.25%, 2/15/19			2,040		2,062,440
Level 3 Financing, Inc.:
2016 Term Loan B, 4.75%, 2/01/16			2,524		2,552,066
2019 Term Loan B, 5.25%, 8/01/19			2,710		2,737,669
Term Loan, 4.75%, 8/01/19			7,830		7,892,640
Syniverse Holdings, Inc., Delayed Draw Term Loan, 4.00%, 4/23/19			2,000		1,997,500
US Telepacific Corp., Term Loan B, 5.75%, 2/23/17			3,101		3,091,504
					28,195,681
Electronic Equipment, Instruments & Components — 0.4%
CDW LLC, Extended Term Loan, 4.00%, 7/14/17			2,190		2,193,745
Flextronics International Ltd., Delay Draw:
Term Loan A-2, 2.45%, 10/01/14			13		13,390
Term Loan A-3, 2.45%, 10/01/14			11		11,478
					2,218,613
Energy Equipment & Services — 2.2%
Dynegy Midwest Generation LLC, Coal Co. Term Loan, 9.25%, 8/04/16			2,174		2,243,571
Dynegy Power LLC, Gas Co. Term Loan, 9.25%, 8/04/16			2,873		2,987,911
MEG Energy Corp., Term Loan B, 3.75%, 3/31/20			4,172		4,182,868
Tervita Corp., Term Loan, 6.50%, 5/01/18			1,980		1,990,217
Unifrax Corp., Term Loan, 4.25%, 11/28/18			965		971,379
					12,375,946

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Consolidated Schedule of Investments (continued)	BlackRock Floating Rate Income Strategies Fund, Inc. (FRA) (Percentages shown are based on Net Assets)

Floating Rate Loan Interests (b)			Par (000)		Value
Food & Staples Retailing — 2.0%
Alliance Boots Holdings Ltd., Term Loan B1, 3.49%, 7/09/15	GBP			3,250	$	4,828,748
Pilot Travel Centers LLC, Term Loan B2, 4.25%, 8/07/19	USD			2,115		2,133,859
Rite Aid Corp.:
Second Lien Term Loan, 5.75%, 7/07/20				1,040		1,063,691
Term Loan 6, 4.00%, 2/21/20				875		876,689
Supervalu, Inc., Term Loan B, 6.25%, 2/05/18				2,270		2,295,537
						11,198,524
Food Products — 2.2%
AdvancePierre Foods, Inc., Term Loan, 5.75%, 7/10/17				2,360		2,388,768
Del Monte Foods Co., Term Loan, 4.50%, 3/08/18				3,745		3,758,336
Michael Foods Group, Inc., Term Loan, 4.25%, 2/23/18				653		658,559
Pinnacle Foods Finance LLC:
Extended Term Loan B, 3.70%, 10/03/16				182		183,367
Term Loan E, 4.75%, 10/17/18				2,267		2,288,014
Solvest Ltd. (Dole):
Term Loan B-2, 5.03%, 7/06/18				1,110		1,110,738
Term Loan C-2, 5.00%—6.00%, 7/06/18				1,986		1,987,640
						12,375,422
Health Care Equipment & Supplies — 4.6%
Bausch & Lomb, Inc., Term Loan B, 5.25%, 5/17/19				5,786		5,828,625
Biomet, Inc., Extended Term Loan B, 3.95%—4.06%, 7/25/17				1,914		1,927,587
BSN Medical Acquisition Holding GmbH, Term Loan B1A, 5.00%, 8/28/19				1,680		1,686,720
Capital Safety North America Holdings, Inc., Term Loan, 4.50%, 1/21/19				1,553		1,553,263
DJO Finance LLC:
Extended Term Loan B2, 5.20%, 11/01/16				854		859,722
Term Loan B3, 6.25%, 9/15/17				4,570		4,607,623
Hologic, Inc., Term Loan B, 4.50%, 8/01/19				4,867		4,920,770
IASIS Healthcare LLC, Term Loan B2, 4.50%, 5/03/18				438		440,172
Immucor, Inc., Term Loan B1, 5.75%, 8/18/18		��		3,590		3,585,212
LHP Hospital Group, Inc., Term Loan, 9.00%, 7/03/18				930		951,257
						26,360,951
Health Care Providers & Services — 5.6%
American Renal Holdings Co., Inc.:
First Lien Term Loan, 4.50%, 8/14/19				2,890		2,882,775
Second Lien Term Loan, 8.50%, 2/14/20				1,795		1,790,513
Ardent Medical Services, Inc., Term Loan, 6.75%, 7/02/18				1,160		1,175,950
CHG Buyer Corp., First Lien Term Loan, 5.00%, 11/22/19				1,974		1,996,766
ConvaTec, Inc., Term Loan, 5.00%, 12/22/16				2,517		2,543,033
DaVita, Inc.:
Term Loan B, 4.50%, 10/20/16				3,871		3,899,137
Term Loan B2, 4.00%, 11/01/19				2,745		2,764,709
Emergency Medical Services Corp., Term Loan, 4.00%, 5/25/18				2,758		2,761,843
Genesis HealthCare Corp., Term Loan B, 10.00%—10.75%, 10/25/17				949		929,763
Harden Healthcare LLC:
Add on Term Loan A, 7.75%, 3/02/15				1,807		1,768,944
Term Loan A, 8.50%, 3/02/15				1,092		1,082,345
HCA, Inc.:
Extended Term Loan B3, 3.45%, 5/01/18				1,139		1,143,764
Tranche B-2 Term Loan, 3.56%, 3/31/17				827		830,390
inVentiv Health, Inc.:
Combined Term Loan, 7.50%, 8/04/16				708		696,527
Incremental Term Loan B-3, 7.75%, 5/15/18				1,105		1,086,460
Floating Rate Loan Interests (b)			Par (000)		Value
Health Care Providers & Services (concluded)
Medpace, Inc., Term Loan, 6.50%—7.25%, 6/16/17	USD			2,306	$	2,294,282
US Renal Care, Inc., First Lien Term Loan, 6.25%, 7/02/19				2,244		2,274,576
Vanguard Health Holding Co. II LLC (Vanguard Health Systems, Inc.), Term Loan B, 5.00%, 1/29/16				267		267,642
						32,189,419
Health Care Technology — 1.5%
IMS Health, Inc., Tranche B Term Loan, 3.75%, 8/25/17				3,235		3,242,612
Kinetic Concepts, Inc., Term Loan C1, 5.50%, 5/04/18				3,988		4,036,726
MedAssets, Inc., Term Loan B, 4.00%, 12/13/19				1,245		1,252,259
						8,531,597
Hotels, Restaurants & Leisure — 7.6%
Alpha D2 Ltd., Extended Term Loan B2, 6.00%, 4/30/19				2,809		2,844,400
Boyd Gaming Corp., Incremental Term Loan, 6.00%, 12/17/15				1,648		1,660,200
Caesars Entertainment Operating Co., Inc.:
Term Loan, 9.25%, 4/25/17				1,389		1,416,780
Term Loan B1, 3.20%, 1/28/15				2,592		2,583,711
Golden Living, Term Loan, 5.00%, 5/04/18				1,638		1,569,269
Harrah’s Property Co., Mezzanine Term Loan, 3.69%, 2/13/14				6,305		5,800,600
MGM Resorts International, Term Loan B, 4.25%, 12/20/19				3,370		3,408,755
OSI Restaurant Partners, LLC, Term Loan B, 4.75%, 10/24/19				2,525		2,556,538
Sabre, Inc., Term Loan B, 5.25%, 2/01/19				1,410		1,408,999
SeaWorld Parks & Entertainment, Inc., Term Loan B, 4.00%, 8/17/17				1,867		1,874,349
Six Flags Theme Parks, Inc., Term Loan B, 4.00%—5.25%, 12/20/18				1,317		1,331,978
Station Casinos, Inc.:
2011 Term Loan B2, 6.25%, 6/17/16				465		461,127
Term Loan B, 5.50%, 9/27/19				3,436		3,456,422
Term Loan B, 5.50%, 2/13/20				5,280		5,323,998
Term Loan B1, 3.20%, 6/17/16				1,532		1,544,935
Twin River Worldwide Holdings, Inc., Term Loan, 8.50%, 11/05/15				1,420		1,429,169
Wendy’s International, Inc., Term Loan B, 4.75%, 5/15/19				4,698		4,737,549
						43,408,779
Household Products — 1.1%
Prestige Brands, Inc., Term Loan, 5.25%—6.25%, 1/31/19				2,049		2,059,074
Spectrum Brands, Inc., Term Loan, 4.50%, 12/17/19				4,140		4,190,011
						6,249,085
Independent Power Producers & Energy Traders — 0.7%
The AES Corp., Term Loan, 4.25%, 6/01/18				3,073		3,084,380
Calpine Corp., Term Loan B1, 4.50%, 4/02/18				930		935,745
						4,020,125
Industrial Conglomerates — 1.1%
Sequa Corp., Term Loan B, 5.25%, 6/19/17				6,503		6,577,133
Insurance — 1.6%
Alliant Holdings I, Inc., Term Loan B, 5.00%, 12/20/19				1,840		1,853,800
Asurion LLC, Term Loan B1, 5.50%, 5/24/19				1,345		1,348,928
CNO Financial Group, Inc.:
Term Loan B-1, 4.25%, 9/28/16				1,710		1,722,825
Term Loan B-2, 5.00%, 9/20/18				2,342		2,364,205
Cunningham Lindsey Group, Inc., Term Loan B, 5.00%, 12/10/19				1,600		1,620,000
						8,909,758

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Consolidated Schedule of Investments (continued)	BlackRock Floating Rate Income Strategies Fund, Inc. (FRA) (Percentages shown are based on Net Assets)

Floating Rate Loan Interests (b)		Par (000)		Value
Internet Software & Services — 0.4%
Web.com Group, Inc., Term Loan B, 5.50%, 10/27/17	USD		2,277	$	2,297,669
IT Services — 5.8%
CCC Information Services, Inc., Term Loan, 5.25%, 12/20/19			930		935,580
Ceridian Corp., Extended Term Loan, 5.95%, 5/09/17			4,118		4,163,321
First Data Corp.:
2018 Add-on Term Loan, 5.20%, 9/24/18			2,320		2,318,956
Extended 2018 Term Loan B, 4.20%, 3/23/18			12,624		12,465,416
Genpact International, Inc., Term Loan B, 4.25%, 8/30/19			3,521		3,556,387
InfoGroup, Inc., Term Loan, 5.75%, 5/25/18			1,127		1,021,574
iPayment, Inc., Term Loan B, 5.75%, 5/08/17			409		411,303
SunGard Data Systems, Inc., Term Loan D, 4.50%, 1/31/20			2,560		2,579,200
TransUnion LLC, Term Loan B, 5.50%, 2/12/18			5,519		5,551,588
					33,003,325
Leisure Equipment & Products — 0.6%
Eastman Kodak Co., DIP Term Loan B, 8.50%, 7/19/13			831		830,690
EB Sports Corp., Term Loan, 11.50%, 12/31/15			562		560,527
FGI Operating Co. LLC, Term Loan, 5.50%, 4/19/19			1,790		1,785,430
					3,176,647
Life Sciences Tools & Services — 0.2%
Patheon, Inc., Term Loan, 7.25%, 12/06/18			1,207		1,220,553
Machinery — 2.7%
Alliance Laundry Systems LLC:
First Lien Term Loan, 5.50%, 12/07/18			1,020		1,024,141
Second Lien Term Loan, 9.50%, 12/10/19			573		582,750
Dematic S.A., Term Loan, 5.25%, 12/27/19			2,465		2,481,171
Intelligrated, Inc., First Lien Term Loan, 4.50%, 7/30/18			1,995		1,995,000
Rexnord LLC, Term Loan B, 4.50%, 4/02/18			1,411		1,419,580
Silver II US Holdings LLC, First Lien Term Loan, 4.75%, 12/05/19			2,845		2,845,000
Terex Corp.:
Term Loan B, 4.50%, 4/28/17			2,618		2,643,799
Term Loan B, 5.00%, 4/28/17	EUR		267		349,079
Wabash National Corp., Term Loan B, 6.00%, 5/02/19	USD		2,262		2,277,012
					15,617,532
Media — 15.2%
AMC Entertainment, Inc., Term Loan B3, 3.75%, 2/22/18			1,411		1,420,625
BBHI Acquisition LLC, Term Loan B, 4.50%, 12/14/17			4,681		4,695,379
Capsugel Holdings US, Inc., Term Loan B, 4.75%, 8/01/18			2,375		2,399,000
Catalina Marketing Corp., Extended Term Loan B, 5.70%, 9/29/17			2,217		2,219,965
Cengage Learning Acquisitions, Inc.:
Non-Extended Term Loan, 2.71%, 7/03/14			785		614,010
Tranche 1 Incremental, 7.50%, 7/03/14			1,717		1,364,715
Charter Communications Operating LLC:
Extended Term Loan C, 3.46%, 9/06/16			2,212		2,219,719
Term Loan D, 4.00%, 5/15/19			1,286		1,294,959
Clarke American Corp., Term Facility B, 2.70%, 6/30/14			330		326,387
Clear Channel Communications, Inc.:
Term Loan B, 3.85%, 1/29/16			6,457		5,522,725
Term Loan C, 3.85%, 1/29/16			726		612,984
Cumulus Media, Inc., First Lien Term Loan, 4.50%, 9/17/18			2,627		2,651,252
EMI Music Publishing Ltd., Term Loan B, 5.50%, 6/29/18			1,965		1,986,250
Floating Rate Loan Interests (b)		Par (000)		Value
Media (concluded)
Foxco Acquisition Sub LLC, Term Loan B, 5.50%, 7/14/17	USD		3,042	$	3,077,362
Getty Images, Inc., Term Loan B, 4.75%, 10/18/19			2,235		2,252,388
Gray Television, Inc., Term Loan B, 4.75%, 10/15/19			2,685		2,710,359
Houghton Mifflin Harcourt Publishing Co., DIP Term Loan B, 7.25%, 6/01/18			1,891		1,900,166
Hubbard Broadcasting, Term Loan B, 4.50%, 4/28/17			1,613		1,625,722
Intelsat Jackson Holdings SA, Term Loan B1, 4.50%, 4/02/18			10,968		11,070,655
Interactive Data Corp., Term Loan B, 3.75%, 2/11/18			5,841		5,849,294
Kabel Deutschland GmbH, Term Loan F1, 3.50%, 2/01/19			3,320		3,325,345
Lavena Holding 4 GmbH:
Term Loan B, 2.62%, 3/06/15	EUR		912		1,171,098
Term Loan C, 3.00%, 3/04/16			304		392,349
NEP Supershooters LP:
First Lien Term Loan, 5.25%, 1/18/20	USD		1,450		1,454,075
Second Lien Term Loan, 9.50%, 8/18/20			1,000		1,025,000
Term Loan, 4.75%, 1/18/20			1,450		1,453,625
Nielsen Finance LLC, Class B Term Loan, 3.95%, 5/02/16			2,758		2,763,264
Sinclair Television Group, Inc., Term Loan B, 4.00%, 10/28/16			1,487		1,491,415
Univision Communications, Inc., Extended Term Loan, 4.45%, 3/31/17			3,345		3,348,078
UPC Broadband Holding BV, Term Loan U, 4.12%, 12/29/17	EUR		914		1,192,280
UPC Financing Partnership, Term Loan T, 3.70%, 12/30/16	USD		348		349,148
Virgin Media Investment Holdings Ltd., Term Loan B, 4.50%, 2/15/20	GBP		2,840		4,291,576
Virgin Media Investment Holdings Ltd., Term Loan B, 3.50%, 2/17/20	USD		4,085		4,060,613
WC Luxco Sarl, Term Loan B-3, 4.25%, 3/15/18			763		769,833
Weather Channel, Term Loan B, 4.25%, 2/13/17			1,800		1,812,810
WideOpenWest Finance LLC, First Lien Term Loan, 6.25%, 7/17/18			2,254		2,280,156
					86,994,581
Metals & Mining — 4.8%
Ameriforge Group, Inc.:
First Lien Term Loan, 5.00%, 12/19/19			1,640		1,655,383
Second Lien Term Loan, 8.75%, 12/18/20			815		826,206
Constellium Holdco BV, Term Loan B, 9.25%, 5/25/18			2,249		2,293,674
FMG America Finance, Inc., Term Loan, 5.25%, 10/18/17			6,893		6,975,300
Metals USA, Inc., Term Loan, 6.25%, 11/15/19			1,980		1,982,475
Novelis, Inc., Term Loan, 4.00%, 3/10/17			5,026		5,030,610
SunCoke Energy, Inc., Term Loan B, 4.00%, 7/26/18			576		577,787
Walter Energy, Inc., Term Loan B, 5.75%, 4/02/18			4,972		4,981,013
Windsor Financing LLC, Term Loan B, 6.25%, 12/05/17			2,811		2,899,095
					27,221,543
Multiline Retail — 2.5%
99¢ Only Stores, Term Loan, 5.25%, 1/11/19			2,007		2,020,741
Apex Tool Group, LLC, Term Loan B, 4.50%, 1/28/20			2,115		2,135,769
BJ’s Wholesale Club, Inc.:
First Lien Term Loan, 5.75%, 9/13/19			1,800		1,801,622
Second Lien Term Loan, 9.75%, 3/26/20			1,230		1,270,750
Dollar General Corp., Tranche B-2 Term Loan, 2.95%, 7/07/14			1,247		1,248,461

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Consolidated Schedule of Investments (continued)	BlackRock Floating Rate Income Strategies Fund, Inc. (FRA) (Percentages shown are based on Net Assets)

Floating Rate Loan Interests (b)		Par (000)		Value
Multiline Retail (concluded)
HEMA Holding BV:
Second Lien Term Loan, 5.12%, 1/05/17	EUR		1,400	$	1,659,615
Term Loan B, 2.12%, 7/06/15			596		740,329
Term Loan C, 2.87%, 7/05/16			596		744,218
The Neiman Marcus Group, Inc., Extended Term Loan, 4.00%, 5/16/18	USD		2,620		2,619,135
					14,240,640
Oil, Gas & Consumable Fuels — 4.0%
Chesapeake Energy Corp., Unsecured Term Loan, 5.75%, 12/01/17			4,285		4,373,828
Gibson Energy ULC, Term Loan B, 4.75%, 6/15/18			3,323		3,353,361
Obsidian Natural Gas Trust, Term Loan, 7.00%, 11/02/15			1,991		2,011,182
Plains Exploration & Production, 7-Year Term Loan B, 4.00%, 11/30/19			3,900		3,906,513
Samson Investment Co., Second Lien Term Loan, 6.00%, 9/25/18			1,285		1,297,053
Tesoro Corp., Term Loan B, 2.55%, 1/30/16			2,365		2,385,694
Vantage Drilling Co., Term Loan, 6.25%, 10/26/17			5,653	��	5,681,705
					23,009,336
Pharmaceuticals — 4.8%
Aptalis Pharma, Inc., Term Loan B, 5.50%, 2/10/17			4,874		4,883,880
Par Pharmaceutical, Term Loan B, 5.00%, 9/30/19			5,696		5,688,605
Pharmaceutical Product Development, Inc., Term Loan B, 4.25%, 12/05/18			6,062		6,095,631
Quintiles Transnational Corp., Term Loan B, 4.50%, 6/08/18			2,647		2,667,330
RPI Finance Trust, Incremental Tranche 2, 4.00%, 11/09/18			401		405,391
Valeant Pharmaceuticals International, Inc.:
Term Loan C, Tranche B, 3.50%, 12/11/19			2,700		2,710,125
Series D, Tranche B, 3.50%, 2/13/19			2,970		2,982,541
Warner Chilcott Corp.:
Incremental Term Loan B-1, 4.25%, 3/15/18			421		425,251
Term Loan B-1, 4.25%, 3/15/18			1,110		1,119,757
Term Loan B-2, 4.25%, 3/15/18			343		346,185
					27,324,696
Professional Services — 1.8%
Booz Allen Hamilton, Inc., Term Loan B, 4.50%, 7/31/19			2,813		2,837,563
Emdeon, Inc., Term Loan B1, 5.00%, 11/02/18			3,544		3,585,728
ON Assignment, Inc., Term Loan B, 5.00%, 5/15/19			985		993,930
Truven Health Analytics, Inc., Term Loan B, 5.75%, 6/01/19			2,632		2,656,461
					10,073,682
Real Estate Investment Trusts (REITs) — 0.6%
iStar Financial, Inc., Term Loan, 4.50%, 9/28/17			3,197		3,198,915
Real Estate Management & Development — 1.4%
Realogy Corp.:
Extended Letter of Credit Loan, 4.46%, 10/10/16			250		249,847
Extended Synthetic Letter of Credit, 3.23%, 10/10/13			93		92,369
Extended Term Loan, 4.42%, 10/10/16			7,541		7,539,391
					7,881,607
Road & Rail — 0.4%
Genesee & Wyoming, Inc., Term Loan A, 2.70%, 10/02/17			1,183		1,183,115
Road Infrastructure Investment LLC, Term Loan B, 6.25%, 3/30/18			1,022		1,024,831
					2,207,946
Semiconductors & Semiconductor Equipment — 1.8%
Freescale Semiconductor, Inc.:
Extended Term Loan B, 4.45%, 12/01/16			2,732		2,731,921
Term Loan, 5.00%, 3/20/20			4,080		4,063,680
Floating Rate Loan Interests (b)		Par (000)		Value
Semiconductors & Semiconductor Equipment (concluded)
NXP BV:
Term Loan A-2, 5.50%, 3/03/17	USD		1,647	$	1,678,367
Term Loan C, 4.75%, 1/11/20			1,845		1,873,247
					10,347,215
Software — 3.7%
Blackboard, Inc., Term Loan B, 6.25%, 10/04/18			497		500,674
GCA Services Group, Inc.:
Second Lien Term Loan, 9.25%, 10/22/20			975		965,250
Term Loan B, 5.25%, 11/01/19			1,920		1,920,000
Infor US, Inc., Term Loan B2, 5.25%, 4/05/18			7,761		7,845,101
Kronos, Inc., Second Lien Term Loan, 9.75%, 4/30/20			1,505		1,565,200
RP Crown Parent, LLC, First Lien Term Loan, 6.75%, 12/21/18			1,565		1,587,505
Sophia LP, Term Loan B, 6.25%, 7/19/18			2,757		2,777,602
SS&C Technologies, Inc.:
Term Loan B-1, 5.00%, 6/07/19			3,585		3,616,229
Term Loan B-2, 5.00%, 6/07/19			371		374,093
					21,151,654
Specialty Retail — 6.8%
Academy Ltd., Term Loan, 4.75%, 8/03/18			3,465		3,505,122
Bass Pro Group LLC, Term Loan, 4.00%, 11/20/19			2,700		2,714,526
Burlington Coat Factory Warehouse Corp., Term Loan B1, 5.50%, 2/23/17			620		625,911
David’s Bridal, Inc., Term Loan B, 5.00%, 10/11/19			3,990		4,030,898
Equinox Fitness Clubs, First Lien Term Loan, 5.50%, 11/16/19			1,965		1,984,650
The Gymboree Corp., Initial Term Loan, 5.00%, 2/23/18			161		154,237
Harbor Freight Tools USA, Inc., Term Loan B, 5.50%, 11/14/17			1,995		2,014,925
Jo-Ann Stores, Inc., Term Loan, 4.75%, 3/16/18			1,273		1,275,234
Leslie’s Poolmart, Inc., Term Loan B, 2.00%—5.25%, 10/16/19			3,205		3,240,306
Michaels Stores, Inc., Term Loan, 4.25%, 1/31/20			4,475		4,484,935
Party City Holdings, Inc., Term Loan B, 5.75%, 7/26/19			6,000		5,995,500
PETCO Animal Supplies, Inc., Term Loan, 4.00%, 11/24/17			4,269		4,299,701
Things Remembered, Inc., Term Loan B, 8.00%, 5/24/18			1,367		1,346,076
Toys ‘R’ Us Delaware, Inc.:
Incremental Term Loan B2, 5.25%, 5/25/18			830		787,799
Term Loan B3, 5.25%, 5/25/18			417		393,923
The Yankee Candle Co., Inc., Term Loan B, 5.25%, 4/02/19			2,269		2,281,180
					39,134,923
Textiles, Apparel & Luxury Goods — 1.4%
Ascend Performance Materials LLC, Term Loan B, 6.75%, 4/10/18			4,005		4,044,785
PVH Corp., Term Loan B, 3.25%, 12/19/19			1,830		1,844,677
Wolverine Worldwide, Inc., Term Loan B, 4.00%, 7/31/19			2,154		2,170,306
					8,059,768
Thrifts & Mortgage Finance — 0.6%
Insight Global, Inc., First Lien Term Loan, 6.00%, 10/31/19			1,960		1,964,900
Ocwen Financial Corp., Term Loan, 5.00%, 1/22/18			1,645		1,664,872
					3,629,772
Trading Companies & Distributors — 0.4%
WESCO Distribution, Inc., Term Loan B, 4.50%, 12/12/19			2,205		2,225,220
Wireless Telecommunication Services — 2.0%
Cricket Communications, Inc., Term Loan, 4.75%, 10/10/19			2,135		2,141,683

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Consolidated Schedule of Investments (continued)	BlackRock Floating Rate Income Strategies Fund, Inc. (FRA) (Percentages shown are based on Net Assets)

Floating Rate Loan Interests (b)			Par (000)		Value
Wireless Telecommunication Services (concluded)
MetroPCS Wireless, Inc.:
Term Loan B-3, 4.00%, 3/16/18		USD		286	$	286,624
Tranche B-2 Term Loan, 4.07%, 11/03/16				1,933		1,938,717
Vodafone Americas Finance 2, Inc. (h):
Term Loan, 6.88%, 8/11/15				5,870		5,987,801
Term Loan B, 6.25%, 7/11/16				1,238		1,271,531
						11,626,356
Total Floating Rate Loan Interests — 132.2%						755,638,742

Other Interests (i)	Beneficial Interest (000)
Auto Components — 0.0%
Intermet Liquidating Trust, Class A				256		—
Chemicals — 0.0%
Wellman Holdings, Inc., Litigation Trust Certificate (d)				9,750		98
Diversified Financial Services — 0.2%
J.G. Wentworth LLC Preferred Equity Interests (d)				1		1,072,295
Hotels, Restaurants & Leisure — 0.0%
Buffets, Inc. (d)				360		4
Household Durables — 0.3%
Stanley Martin, Class B Membership Units (d)				1		1,731,250
Total Other Interests — 0.5%						2,803,647

Trust Preferreds				Shares
Diversified Financial Services — 0.2%
GMAC Capital Trust I, Series 2, 8.13%, 2/15/40 (b)				54,780		1,448,916

Warrants (j)	Shares		Value
Chemicals — 0.0%
GEO Specialty Chemicals, Inc., (Expires 3/31/15)		143,928	$	9,283
Software — 0.0%
HMH Holdings/EduMedia, (Issued/Exercisable 3/09/10, 19 Shares for 1 Warrant, Expires 6/22/19, Strike Price $42.27)		2,406		—
Total Warrants — 0.0%				9,283
Total Long-Term Investments (Cost — $853,488,660) — 150.0%				857,521,624

Short-Term Securities
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.10% (k)(l)		14,430,590		14,430,590
Total Short-Term Securities (Cost — $14,430,590) — 2.5%				14,430,590

Options Purchased
(Cost — $43,022) — 0.0%				—
Total Investments (Cost — $867,962,272) — 152.5%				871,952,214
Liabilities in Excess of Other Assets — (52.5)%				(300,294,664	)
Net Assets — 100.0%			$	571,657,550

Notes to Schedule of Investments

(a)				Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(b)				Variable rate security. Rate shown is as of report date.
(c)				When-issued security. Unsettled when-issued transactions were as follows:

Counterparty	Value		Unrealized Appreciation
Bank of America Securities LLC	$	176,356	$	3,670
Citigroup Global Markets, Inc.	$	663,434	$	13,806
Deutsche Bank Securities, Inc	$	486,750	$	97

(d)				Non-income producing security.
(e)				Convertible security.
(f)				Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(g)				Issuer filed for bankruptcy and/or is in default of principal and/or interest payments.
(h)				Represents a payment-in-kind security which may pay interest/dividends in additional par/shares.
(i)				Other interests represent beneficial interests in liquidation trusts and other reorganization or private entities.
(j)				Warrants entitle the Fund 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 of the warrants, if any.
(k)				Investments in issuers considered to be an affiliate of the Fund during the six months ended February 28, 2013, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliate				Shares Held at August 31, 2012				Net Activity				Shares Held at February 28, 2013				Income
BlackRock Liquidity Funds, TempFund, Institutional Class					1,779,337				12,651,253				14,430,590			$	1,622

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Consolidated Schedule of Investments (continued)	BlackRock Floating Rate Income Strategies Fund, Inc. (FRA)

(l)				Represents the current yield as of report date.
•				Foreign currency exchange contracts as of February 28, 2013 were as follows:

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
CAD	292,000	USD	289,532	Bank of America Corp.	4/17/13	$	(6,674	)
CAD	384,000	USD	378,335	Citigroup, Inc.	4/17/13		(6,356	)
USD	4,173,973	CAD	4,118,000	Deutsche Bank AG	4/17/13		184,889
USD	4,629,549	GBP	2,890,000	Goldman Sachs Group, Inc.	4/17/13		246,299
EUR	426,000	USD	558,241	Citigroup, Inc.	4/23/13		(1,872	)
USD	1,959,297	EUR	1,470,000	BNP Paribas SA	4/23/13		39,434
USD	7,075,729	EUR	5,306,000	Citigroup, Inc.	4/23/13		145,937
Total						$	601,657

•

Over-the-counter options purchased as of February 28, 2013 were as follows:

Description

Counterparty

Put/
Call

Strike
Price

Expiration
Date

Contracts

Market
Value

Marsico Parent Superholdco LLC

Goldman Sachs Group, Inc.

Call

USD

942.86

12/14/19

—

•

Credit default swaps — sold protection outstanding as of February 28, 2013 were as follows:

Issuer

Receive
Fixed
Rate

Counterparty

Expiration
Date

Credit
Rating¹

Notional
Amount
(000)²

Unrealized
Appreciation
(Depreciation)

Caesars Entertainment Operating Co., Inc.

5.00%

JPMorgan Chase & Co.

12/20/15

CCC

USD

149

18,163

Caesars Entertainment Operating Co., Inc.

5.00%

JPMorgan Chase & Co.

12/20/15

CCC

USD

597

67,140

Caesars Entertainment Operating Co., Inc.

5.00%

JPMorgan Chase & Co.

12/20/15

CCC

USD

538

90,709

Caesars Entertainment Operating Co., Inc.

5.00%

Barclays Plc

12/20/15

CCC

USD

1,112

96,600

Caesars Entertainment Operating Co., Inc.

5.00%

Barclays Plc

3/20/16

CCC

USD

2,000

99,546

Caesars Entertainment Operating Co., Inc.

5.00%

Goldman Sachs Group, Inc.

3/20/17

CCC

USD

389

(2,961

)

Total

369,197

Using S&P’s rating of the issuer.

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

•				For Fund compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. 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 to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for consolidated financial statement purposes as follows:

•				Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the Fund has the ability to access
•				Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
•				Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments and derivative financial instruments)

				The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
				Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. 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 is not necessarily an indication of the risks associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Consolidated Financial Statements.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Consolidated Schedule of Investments (continued)	BlackRock Floating Rate Income Strategies Fund, Inc. (FRA)

The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy as of February 28, 2013:

	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments
Asset-Backed Securities		—		—	$	24,036,705	$	24,036,705
Common Stocks	$	1,896,270	$	2,287,861		1,486,008		5,670,139
Corporate Bonds		—		64,338,072		3,576,120		67,914,192
Floating Rate Loan Interests		—		695,100,484		60,538,258		755,638,742
Other Interests		—		—		2,803,647		2,803,647
Preferred Securities		1,448,916		—		—		1,448,916
Warrants		—		—		9,283		9,283
Short-Term Securities		14,430,590		—		—		14,430,590
Unfunded Commitments		—		777		—		777
Total	$	17,775,776	$	761,727,194	$	92,450,021	$	871,952,991

	Level 1	Level 2			Level 3	Total
Derivative Financial Instruments¹
Assets:
Credit contracts	—	$	372,158		—	$	372,158
Foreign currency exchange contracts	—		616,559				616,559

Liabilities:
Credit contracts	—		(2,961	)	—		(2,961	)
Foreign currency exchange contracts	—		(14,902	)	—		(14,902	)
Total	—	$	970,854		—	$	970,854

	Level 1		Level 2			Level 3	Total
Assets:
Cash	$	1,844,191		—		—	$	1,844,191
Foreign currency at value		12,535		—		—		12,535
Cash pledged as collateral for swaps		620,000		—		—		620,000
Liabilities:
Loans payable		—	$	(208,000,000	)	—		(208,000,000	)
Total	$	2,476,726	$	(208,000,000	)	—	$	(205,523,274	)

				There were no transfers between Level 1 and Level 2 during the six months ended February 28, 2013.
				A reconciliation of Level 3 investments is presented when the Fund had a significant amount of Level 3 investments at the beginning and/or end of the period in relation to net assets. 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			Floating Rate Loan Interests			Other Interests			Warrant		Total
Assets:
Opening Balance, as of August 31, 2012	$	7,043,642		$	6,034		$	2,355,204		$	23,180,519		$	835,765			—	$	33,421,164
Transfers into Level 3²		—			215			—			6,481,543			—			—		6,481,758
Transfers out of Level 3³		—			—			—			(6,684,789	)		—			—		(6,684,789	)
Accrued discounts/premiums		47,027			—			46,401			122,910			—			—		216,338
Net realized gain (loss)		270,089			—			291,984			(329,303	)		—			—		232,770
Net change in unrealized appreciation/depreciation⁴		1,475,295			(5,449,635	)		(565,100	)		1,497,084			(1,280,852	)	$	9,279		(4,313,929	)
Purchases		19,166,762			6,929,394			3,200,581			49,060,785			4,372,036			4		82,729,562
Sales		(3,966,110	)		—			(1,752,950	)		(12,790,491	)		(1,123,302	)		—		(19,632,853	)
Closing Balance, as of February 28, 2013	$	24,036,705		$	1,486,008		$	3,576,120		$	60,538,258		$	2,803,647		$	9,283	$	92,450,021

As of August 31, 2012, the Fund used observable inputs in determining the value of certain investments. As of February 28, 2013, the Fund used significant unobservable inputs in determining the value of the same investments. As a result, investments with a beginning of period value of $6,684,789 transferred from Level 2 to Level 3 in the disclosure hierarchy.

As of August 31, 2012, the Fund used significant unobservable inputs in determining the value of certain investments. As of February 28, 2013, the Fund used observable inputs in determining the value of the same investments. As a result, investments with a beginning of period value of $6,481,544 transferred from Level 3 to Level 2 in the disclosure hierarchy.

⁴

Included in the related net change in unrealized appreciation/depreciation in the Statement of Operations. The change in unrealized appreciation/depreciation on investments still held as of February 28, 2013 was $(3,374,156).

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Consolidated Schedule of Investments (concluded)	BlackRock Floating Rate Income Strategies Fund, Inc. (FRA)

The following table summarizes the valuation techniques used and unobservable inputs developed by the Global Valuation Committee to determine the value of certain of the Fund’s Level 3 investments as of February 28, 2013. The table does not include Level 3 investments with values derived utilizing third party pricing information without adjustment. A significant change in third party pricing information could result in a significantly lower or higher value of such Level 3 investments. The value of Level 3 investments derived using third party pricing information is $77,534,994.

Value

Valuation Techniques

Unobservable Inputs¹

Range of
Unobservable
Inputs Utilized

Assets:

Common Stocks

1,486,000

Market Comparable Companies

EBITDA Multiple

5.25x—6.56x

Corporate Bonds

2,666,040

Market Comparable Companies

EBITDA Multiple

5.25x

Floating Rate Loan Interests

2,851,289

Discounted Cash Flow

Yield

9.50%

1,346,076

Market Comparable Yield Analysis

Yield

8.375%

4,825,089

Cost²

N/A

—

Other Interests³

1,731,250

Discounted Cash Flow

Perpetuity Growth Rate

3.50%

Free Cash Flow

$25.2—$35.2⁴

Weighted Cost of Capital

10.90%

Warrant

9,283

Market Comparable Companies

EBITDA Multiple

5.25x

Total

14,915,027

A change to the unobservable input may result in a significant change to the value of the investment as follows:

Unobservable Input	Impact to Value if Input Increases	Impact to Value if Input Decreases
EBITDA Multiple	Increase	Decrease
Free Cash Flow	Increase	Decrease
Perpetuity Growth Rate	Increase	Decrease
Weighted Cost of Capital	Decrease	Increase
Yield	Decrease	Increase

For the six months ended February 28, 2013, the valuation technique for other interests changed from a market approach to an income approach. Market information previously utilized to determine fair value under the market approach no longer applied to this investment. Therefore, the income approach is considered to be a more relevant measure of fair value for this investment.

⁴

Amount is in millions.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Consolidated Schedule of Investments February 28, 2013 (Unaudited)	BlackRock Limited Duration Income Trust (BLW) (Percentages shown are based on Net Assets)

Asset-Backed Securities		Par (000)			Value
Asset-Backed Securities — 8.8%
321 Henderson Receivables I LLC (a):
Series 2010-2A, Class A, 4.07%, 1/15/48	USD		1,455		$	1,607,985
Series 2010-3A, Class A, 3.82%, 12/15/48			4,130			4,476,454
ACAS CLO Ltd. (a)(b):
Series 2012-1A, Class D, 5.58%, 9/20/23			1,750			1,758,750
Series 2013-1A, Class D, 3.89%, 4/20/25			750			716,250
ALM Loan Funding Ltd., Series 2010-3AR, Class D, 4.54%, 11/20/20 (a)(b)			4,000			4,027,500
Anchorage Capital CLO Ltd., Series 2012-1A, Class B, 3.16%, 1/13/25 (a)(b)			4,000			3,835,600
Apidos CDO XI, Series 2012-11A, Class D, 4.74%, 1/17/23 (a)(b)			1,000			1,001,500
Atrium CDO Corp., Series 9A, Class D, 3.96%, 2/28/24 (a)(b)			750			725,250
Capital One Multi-Asset Execution Trust, Series 4-3C, 6.63%, 4/19/17	GBP		2,650			4,233,964
Carlyle Global Market Strategies, Series 2013-1A, Class C, 4.29%, 2/14/25 (a)(b)	USD		250			250,000
CarMax Auto Owner Trust, Series 2012-3, Class D, 2.29%, 4/15/19			2,530			2,525,525
Cavalry CLO Ltd., Series 2A, Class D, 4.38%, 1/17/24 (a)(b)			500			486,750
Conseco Financial Corp., Series 1995-5, Class M1, 7.65%, 9/15/26 (b)			289			291,408
Countrywide Asset-Backed Certificates (b):
Series 2007-12, Class 2A1, 0.55%, 8/25/47			566			561,395
Series 2007-7, Class 2A2, 0.36%, 10/25/47			2,697			2,642,146
CSAM Funding, Series 2A, Class B1, 7.05%, 10/15/16 (a)			750			756,150
Ford Credit Floorplan Master Owner Trust:
Series 2010-5, Class C, 2.07%, 9/15/15 (a)			890			896,240
Series 2011-2, Class C, 2.37%, 9/15/15			1,125			1,132,603
Series 2011-2, Class D, 2.86%, 9/15/15			1,145			1,155,179
Fraser Sullivan CLO VII Ltd., Series 2012-7A, Class C, 4.30%, 4/20/23 (a)(b)			1,090			1,089,989
Goldentree Loan Opportunities VI Ltd., Series 2012-6A, Class D, 4.50%, 4/17/22 (a)(b)			1,500			1,491,450
GSAA Trust, Series 2007-3, Class 1A2, 0.37%, 3/25/47 (b)			2,967			1,388,827
ING Investment Management (a)(b):
Series 2012-2A, Class D, 4.85%, 10/15/22			1,800			1,804,500
Series 2012-4A, Class C, 4.73%, 10/15/23			800			806,656
Oak Hill Credit Opportunities Funding, Ltd., 0.68%, 9/13/13 (a)(b)			3,400			3,345,600
Octagon Investment Partners XIV Ltd., Series 2012-1A, Class C, 4.56%, 1/15/24 (a)(b)			1,050			1,018,500
OZLM Funding Ltd. (a)(b):
Series 2012-2A, Class C, 5.08%, 10/30/23			500			504,650
Series 2013-3A, Class C, 4.15%, 1/22/25			1,000			977,700
Regatta II Funding LP, Series 2013-2A, Class C, 4.80%, 1/15/25 (a)(b)			500			482,450
Santander Consumer Acquired Receivables Trust, Series 2011-S1A, Class D, 3.15%, 8/15/16 (a)			1,987			2,018,112
Santander Drive Auto Receivables Trust (a):
Series 2011-S1A, Class D, 3.10%, 5/15/17			637			639,294
Series 2011-S2A, Class B, 2.06%, 6/15/17			413			416,086
Series 2011-S2A, Class C, 2.86%, 6/15/17			428			431,334
SLC Student Loan Trust, Series 2006-A, Class A4, 0.42%, 1/15/19 (b)			669			668,516
SLM Student Loan Trust, 2.50%, 3/15/47 (a)			2,655			2,524,438
Spirit Issuer Plc, Series A2, 3.22%, 12/28/31 (b)	GBP		1,800			2,184,552
World Financial Network Credit Card Master Trust, Series 2012-C, Class B, 3.57%, 8/15/22	USD		3,000			3,156,927
						58,030,230
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		10,813		$	834,622
Sterling Coofs Trust, Series 2004-1, 2.36%, 4/15/29 (a)			9,691			708,664
						1,543,286
Total Asset-Backed Securities — 9.0%						59,573,516

Common Stocks (c)			Shares
Construction & Engineering — 0.0%
USI United Subcontractors			6,454			6,454
Diversified Financial Services — 0.4%
Kcad Holdings I Ltd.			384,412,912			2,594,787
Hotels, Restaurants & Leisure — 0.2%
BLB Worldwide Holdings, Inc.			51,947			1,120,133
Travelport LLC (d)			176,501			1,765
						1,121,898
Metals & Mining — 0.0%
Euramax International			234			48,493
Paper & Forest Products — 0.2%
NewPage Corp. (d)			13,780			1,171,300
Software — 0.2%
Bankruptcy Management Solutions, Inc.			880			9
HMH Holdings/EduMedia			71,219			1,305,660
						1,305,669
Total Common Stocks — 1.0%						6,248,601

Corporate Bonds			Par (000	)
Aerospace & Defense — 0.9%
Bombardier, Inc., 4.25%, 1/15/16 (a)(e)	USD		1,365			1,416,188
DigitalGlobe, Inc., 5.25%, 2/01/21 (a)(e)			1,158			1,149,315
Huntington Ingalls Industries, Inc., 7.13%, 3/15/21 (e)			570			621,300
Kratos Defense & Security Solutions, Inc., 10.00%, 6/01/17 (e)			1,966			2,169,972
Meccanica Holdings USA, Inc., 6.25%, 7/15/19 (a)(e)			559			574,417
						5,931,192
Airlines — 1.3%
American Airlines Pass-Through Trust, Series 2011-2, Class A, 8.63%, 4/15/23 (e)			539			560,243
Continental Airlines Pass-Through Trust, Series 2012-3, Class C, 6.13%, 4/29/18 (e)			2,090			2,084,775
Continental Airlines, Inc., 6.75%, 9/15/15 (a)(e)			1,350			1,417,500
Delta Air Lines Pass-Through Trust, Series 2009-1, Class B, 9.75%, 6/17/18 (e)			244			270,345
US Airways Pass-Through Trust (e):
Series 2011-1, Class C, 10.88%, 10/22/14			1,333			1,406,750
Series 2012-1, Class C, 9.13%, 10/01/15			2,512			2,687,840
						8,427,453
Auto Components — 1.4%
Continental Rubber of America Corp., 4.50%, 9/15/19 (a)			150			153,000
Icahn Enterprises LP (b)(f):
4.00%, 8/15/13 (a)			4,500			4,511,250
4.00%, 8/15/13			2,305			2,310,762
Jaguar Land Rover Automotive Plc (FKA Jaguar Land Rover Plc), 8.25%, 3/15/20	GBP		554			942,308
Titan International, Inc., 7.88%, 10/01/17	USD		1,330			1,426,425
						9,343,745

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Consolidated Schedule of Investments (continued)	BlackRock Limited Duration Income Trust (BLW) (Percentages shown are based on Net Assets)

Corporate Bonds		Par (000)		Value
Beverages — 0.2%
Constellation Brands, Inc.:
7.25%, 5/15/17	USD		82	$	92,968
6.00%, 5/01/22 (e)			463		505,827
Crown European Holdings SA:
7.13%, 8/15/18 (a)	EUR		440		621,833
7.13%, 8/15/18			66		93,275
					1,313,903
Building Products — 0.7%
Building Materials Corp. of America (a)(e):
7.00%, 2/15/20	USD		1,345		1,455,962
6.75%, 5/01/21			1,030		1,105,963
Momentive Performance Materials, Inc., 8.88%, 10/15/20			530		543,913
USG Corp., 9.75%, 1/15/18			1,390		1,634,987
					4,740,825
Capital Markets — 0.3%
E*Trade Financial Corp., 0.00%, 8/31/19 (a)(f)(g)			249		260,361
Nuveen Investments, Inc., 9.13%, 10/15/17 (a)			431		433,155
SteelRiver Transmission Co. LLC, 4.71%, 6/30/17 (a)			1,162		1,225,616
					1,919,132
Chemicals — 2.8%
Ashland, Inc., 3.88%, 4/15/18 (a)			675		685,125
Axiall Corp., 4.88%, 5/15/23 (a)(e)			394		399,910
Celanese US Holdings LLC, 5.88%, 6/15/21 (e)			629		687,182
Ciech Group Financing AB, 9.50%, 11/30/19	EUR		180		256,149
Eagle Spinco, Inc., 4.63%, 2/15/21 (a)(e)	USD		837		850,601
Huntsman International LLC:
4.88%, 11/15/20 (e)			1,134		1,122,660
4.88%, 11/15/20 (a)			634		624,490
8.63%, 3/15/21 (e)			655		740,150
INEOS Finance Plc, 7.50%, 5/01/20 (a)(e)			445		479,488
LyondellBasell Industries NV, 5.75%, 4/15/24 (e)			1,790		2,080,875
Nova Chemicals Corp., 8.38%, 11/01/16 (e)			5,500		5,953,750
Nufarm Australia Ltd., 6.38%, 10/15/19 (a)(e)			320		339,200
Orion Engineered Carbons Bondco GmbH, 9.63%, 6/15/18 (a)			898		987,800
Rockwood Specialties Group, Inc., 4.63%, 10/15/20 (e)			1,330		1,376,550
Tronox Finance LLC, 6.38%, 8/15/20 (a)(e)			1,573		1,563,169
US Coatings Acquisition, Inc./Flash Dutch 2 BV:
5.75%, 2/01/21	EUR		200		266,332
7.38%, 5/01/21 (a)	USD		398		411,930
					18,825,361
Commercial Banks — 3.7%
BNP Paribas SA, 2.38%, 9/14/17 (e)			3,225		3,303,532
CIT Group, Inc. (e):
4.75%, 2/15/15 (a)			1,709		1,798,722
5.00%, 5/15/17			890		946,738
5.50%, 2/15/19 (a)			2,040		2,218,500
HSBC Bank Plc, 3.10%, 5/24/16 (a)(e)			2,560		2,718,441
HSBC Holdings Plc, 6.25%, 3/19/18	EUR		1,000		1,548,721
ING Bank NV, 2.00%, 9/25/15 (a)(e)	USD		3,245		3,300,425
Nordea Bank AB, 4.50%, 3/26/20	EUR		1,020		1,471,099
Penske Truck Leasing Co. LP/PTL Finance Corp., 3.38%, 3/15/18 (a)(e)	USD		6,155		6,407,349
Regions Financial Corp., 4.88%, 4/26/13 (e)			907		912,369
					24,625,896
Commercial Services & Supplies — 1.4%
ADS Waste Holdings, Inc., 8.25%, 10/01/20 (a)			292		313,900
ARAMARK Holdings Corp. (a):
8.63%, 5/01/16 (h)			890		907,809
5.75%, 3/15/20 (i)			1,462		1,491,240
Aviation Capital Group Corp., 4.63%, 1/31/18 (a)(e)			1,000		1,015,566
Brickman Group Holdings, Inc., 9.13%, 11/01/18 (a)			63		67,725
Corporate Bonds		Par (000)		Value
Commercial Services & Supplies (concluded)
Catalent Pharma Solutions, Inc., 7.88%, 10/15/18 (a)	USD		375	$	379,687
Clean Harbors, Inc., 5.25%, 8/01/20 (e)			607		625,210
Covanta Holding Corp., 6.38%, 10/01/22 (e)			1,130		1,225,299
EC Finance Plc, 9.75%, 8/01/17	EUR		100		141,979
HDTFS, Inc. (a):
5.88%, 10/15/20	USD		435		452,400
6.25%, 10/15/22			605		650,375
Mead Products LLC/ACCO Brands Corp., 6.75%, 4/30/20 (a)			100		105,875
Mobile Mini, Inc., 7.88%, 12/01/20 (e)			915		1,017,937
Verisure Holding AB:
8.75%, 9/01/18	EUR		311		438,508
8.75%, 12/01/18			111		147,814
West Corp., 8.63%, 10/01/18	USD		165		175,725
					9,157,049
Communications Equipment — 1.7%
ADC Telecommunications, Inc., 3.50%, 7/15/15 (e)(f)			6,670		6,673,335
Avaya, Inc.:
9.75%, 11/01/15 (e)			413		406,289
7.00%, 4/01/19 (a)			437		417,335
Zayo Group LLC/Zayo Capital, Inc.:
8.13%, 1/01/20 (e)			1,800		2,011,500
10.13%, 7/01/20			1,460		1,711,850
					11,220,309
Construction Materials — 1.0%
Buzzi Unicem SpA, 6.25%, 9/28/18	EUR		154		216,274
HD Supply, Inc. (a):
8.13%, 4/15/19 (e)	USD		3,085		3,474,481
7.50%, 7/15/20			2,374		2,376,968
11.50%, 7/15/20			335		386,088
HeidelbergCement AG, 7.50%, 4/03/20	EUR		64		100,684
					6,554,495
Consumer Finance — 0.9%
Ally Financial, Inc., 3.13%, 1/15/16 (a)(e)	USD		1,500		1,515,330
Ford Motor Credit Co. LLC:
3.88%, 1/15/15 (e)			2,475		2,576,042
7.00%, 4/15/15			400		442,149
Hyundai Capital America, 3.75%, 4/06/16 (a)(e)			1,285		1,362,843
					5,896,364
Containers & Packaging — 0.9%
Ardagh Packaging Finance Plc:
7.38%, 10/15/17 (a)(e)			299		325,536
7.38%, 10/15/17	EUR		200		283,304
7.38%, 10/15/17 (a)			587		831,498
7.38%, 10/15/17			100		141,652
7.00%, 11/15/20 (a)	USD		982		984,455
4.88%, 11/15/22 (a)			332		327,020
5.00%, 11/15/22	EUR		260		336,897
Berry Plastics Corp.:
4.18%, 9/15/14 (b)	USD		700		700,000
8.25%, 11/15/15 (e)			490		510,678
9.75%, 1/15/21			290		334,950
Beverage Packaging Holdings Luxembourg II SA, 8.00%, 12/15/16	EUR		274		358,687
Crown Americas LLC/Crown Americas Capital Corp. III, 6.25%, 2/01/21	USD		96		104,640
Crown Americas LLC/Crown Americas Capital Corp. IV, 4.50%, 1/15/23 (a)(e)			1,049		1,025,398
					6,264,715
Distributors — 0.1%
VWR Funding, Inc., 7.25%, 9/15/17 (a)			874		919,885

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Consolidated Schedule of Investments (continued)	BlackRock Limited Duration Income Trust (BLW) (Percentages shown are based on Net Assets)

Corporate Bonds		Par (000)		Value
Diversified Consumer Services — 0.5%
313 Group, Inc. (a):
6.38%, 12/01/19	USD		566	$	551,850
8.75%, 12/01/20			1,249		1,233,387
Laureate Education, Inc., 9.25%, 9/01/19 (a)			1,460		1,587,750
					3,372,987
Diversified Financial Services — 5.1%
Aircastle Ltd., 6.25%, 12/01/19 (e)			367		395,442
Ally Financial, Inc. (e):
8.30%, 2/12/15			2,460		2,736,750
7.50%, 9/15/20			1,630		1,972,300
8.00%, 11/01/31			1,330		1,670,812
Banque Paribas, 6.95%, 7/22/13 (e)			2,100		2,145,457
Citigroup, Inc., 5.95% (b)(e)(j)			1,370		1,395,687
CNG Holdings, Inc., 9.38%, 5/15/20 (a)			700		690,375
Co-Operative Group Ltd. (k):
6.88%, 7/08/20	GBP		300		476,961
7.50%, 7/08/26			600		958,472
DPL, Inc.:
6.50%, 10/15/16	USD		70		73,500
7.25%, 10/15/21			185		198,413
Gala Group Finance Plc, 8.88%, 9/01/18	GBP		700		1,146,890
The Goldman Sachs Group, Inc. (e):
6.00%, 5/01/14	USD		1,150		1,217,420
5.13%, 1/15/15			3,515		3,765,553
3.30%, 5/03/15			3,285		3,434,717
Leucadia National Corp., 8.13%, 9/15/15 (e)			1,870		2,113,100
Morgan Stanley, 5.30%, 3/01/13			825		825,000
Reynolds Group Issuer, Inc.:
7.13%, 4/15/19 (e)			995		1,068,381
9.00%, 4/15/19			180		190,800
9.88%, 8/15/19			795		870,525
5.75%, 10/15/20 (e)			1,800		1,858,500
6.88%, 2/15/21 (e)			820		875,350
SLM Corp., Series A, 5.00%, 10/01/13 (e)			150		153,000
Spirit Issuer Plc, 5.86%, 12/28/21	GBP		1,570		2,298,407
WMG Acquisition Corp., 6.00%, 1/15/21 (a)(e)	USD		935		967,725
					33,499,537
Diversified Telecommunication Services — 1.4%
Level 3 Communications, Inc., 8.88%, 6/01/19 (a)			735		793,800
Level 3 Financing, Inc.:
4.21%, 2/15/15 (b)			1,725		1,725,000
8.13%, 7/01/19			3,083		3,360,470
7.00%, 6/01/20 (a)			495		519,750
Lynx I Corp., 5.38%, 4/15/21 (a)(e)			845		866,125
OTE Plc, 7.25%, 2/12/15	EUR		151		198,123
Telenet Finance V Luxembourg SCA:
6.25%, 8/15/22			271		362,649
6.75%, 8/15/24			397		541,627
Windstream Corp., 8.13%, 8/01/13 (e)	USD		590		605,458
					8,973,002
Electric Utilities — 0.3%
Mirant Mid Atlantic Pass-Through Trust, Series B, 9.13%, 6/30/17 (e)			677		750,993
Nisource Finance Corp. (e):
6.40%, 3/15/18			440		528,150
5.25%, 2/15/43			800		848,821
					2,127,964
Electrical Equipment — 0.2%
Belden, Inc., 5.50%, 9/01/22 (a)(e)			510		522,750
Pentair Finance SA, 1.88%, 9/15/17 (a)(e)			371		371,047
Techem GmbH, 6.13%, 10/01/19	EUR		300		416,144
					1,309,941
Corporate Bonds		Par (000)		Value
Energy Equipment & Services — 2.4%
Calfrac Holdings LP, 7.50%, 12/01/20 (a)	USD		1,105	$	1,110,525
Compagnie Générale de Géophysique, Veritas (e):
7.75%, 5/15/17			330		340,313
6.50%, 6/01/21			2,115		2,199,600
FTS International Services LLC/FTS International Bonds, Inc., 8.13%, 11/15/18 (a)(e)			1,182		1,223,370
Gulfmark Offshore, Inc., 6.38%, 3/15/22 (e)			185		191,013
Hornbeck Offshore Services, Inc., 5.88%, 4/01/20 (e)			375		393,750
MEG Energy Corp. (a)(e):
6.50%, 3/15/21			110		116,050
6.38%, 1/30/23			335		346,725
Oil States International, Inc. (e):
6.50%, 6/01/19			725		775,750
5.13%, 1/15/23 (a)			908		908,000
Peabody Energy Corp. (e):
6.00%, 11/15/18			342		363,375
6.25%, 11/15/21			1,743		1,812,720
Rain CII Carbon LLC/CII Carbon Corp., 8.25%, 1/15/21 (a)(e)			535		561,750
Seadrill Ltd., 5.63%, 9/15/17 (a)			2,534		2,565,675
Tervita Corp., 8.00%, 11/15/18 (a)			833		857,990
Transocean, Inc. (e):
4.95%, 11/15/15			1,040		1,131,267
5.05%, 12/15/16			180		200,514
2.50%, 10/15/17			725		734,093
6.00%, 3/15/18			230		263,688
					16,096,168
Food & Staples Retailing — 0.3%
Bakkavor Finance 2 Plc, 8.25%, 2/15/18	GBP		312		480,420
Rite Aid Corp., 9.25%, 3/15/20 (e)	USD		1,095		1,226,400
Zobele Holding SpA, 7.88%, 2/01/18	EUR		100		132,513
					1,839,333
Food Products — 0.3%
Post Holdings, Inc., 7.38%, 2/15/22 (e)	USD		780		842,400
Smithfield Foods, Inc., 6.63%, 8/15/22 (e)			783		851,512
					1,693,912
Gas Utilities — 0.3%
Florida Gas Transmission Co. LLC, 4.00%, 7/15/15 (a)			2,000		2,125,714
Health Care Equipment & Supplies — 1.5%
Biomet, Inc. (a):
6.50%, 8/01/20			1,720		1,818,900
6.50%, 10/01/20			1,445		1,488,350
CareFusion Corp., 5.13%, 8/01/14 (e)			3,000		3,174,957
DJO Finance LLC:
8.75%, 3/15/18 (e)			413		455,849
7.75%, 4/15/18			540		537,300
9.88%, 4/15/18			500		533,750
Fresenius Medical Care US Finance II, Inc., 5.63%, 7/31/19 (a)			960		1,039,200
Kinetic Concepts, Inc./KCI USA, Inc., 12.50%, 11/01/19 (a)			210		205,800
Teleflex, Inc., 6.88%, 6/01/19 (e)			675		734,062
					9,988,168
Health Care Providers & Services — 3.4%
Aviv Healthcare Properties LP, 7.75%, 2/15/19 (e)			995		1,067,137
Care UK Health & Social Care Plc, 9.75%, 8/01/17	GBP		130		198,696
CHS/Community Health Systems, Inc.:
5.13%, 8/15/18 (e)	USD		490		515,113
7.13%, 7/15/20			471		507,503
Crown Newco 3 Plc, 7.00%, 2/15/18	GBP		541		847,398
DaVita HealthCare Partners, Inc., 5.75%, 8/15/22 (e)	USD		939		978,907

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Consolidated Schedule of Investments (continued)	BlackRock Limited Duration Income Trust (BLW) (Percentages shown are based on Net Assets)

Corporate Bonds		Par (000)		Value
Health Care Providers & Services (concluded)
HCA, Inc. (e):
6.50%, 2/15/20	USD		1,895	$	2,122,400
7.88%, 2/15/20			1,896		2,102,190
7.25%, 9/15/20			996		1,105,560
5.88%, 3/15/22			2,390		2,575,225
Hologic, Inc., 6.25%, 8/01/20 (a)(e)			1,289		1,359,895
IASIS Healthcare LLC, 8.38%, 5/15/19			1,030		1,060,900
inVentiv Health, Inc., 9.00%, 1/15/18 (a)			720		750,600
Omnicare, Inc., 7.75%, 6/01/20			1,135		1,259,850
Tenet Healthcare Corp.:
6.25%, 11/01/18 (e)			721		798,507
8.88%, 7/01/19 (e)			1,005		1,135,650
6.75%, 2/01/20			475		508,250
4.50%, 4/01/21 (a)(e)			803		791,959
Vanguard Health Holding Co. II LLC, 7.75%, 2/01/19 (a)			800		857,000
Voyage Care Bondco Plc, 6.50%, 8/01/18	GBP		150		231,540
WellPoint, Inc., 1.25%, 9/10/15 (e)	USD		1,430		1,441,058
					22,215,338
Health Care Technology — 0.8%
IMS Health, Inc., 12.50%, 3/01/18 (a)(e)			4,300		5,181,500
Hotels, Restaurants & Leisure — 5.7%
Caesars Entertainment Operating Co., Inc., 9.00%, 2/15/20 (a)			149		147,137
Caesars Operating Escrow LLC:
8.50%, 2/15/20 (e)			1,010		984,750
9.00%, 2/15/20 (a)			1,646		1,625,425
Carlson Wagonlit BV, 6.88%, 6/15/19 (a)(e)			370		386,650
Choice Hotels International, Inc., 5.75%, 7/01/22 (e)			240		266,400
Cirsa Funding Luxembourg SA, 8.75%, 5/15/18	EUR		355		454,201
Enterprise Inns Plc:
6.50%, 12/06/18	GBP		2,232		3,326,800
6.88%, 2/15/21			2,070		2,983,279
Gategroup Finance Luxembourg SA, 6.75%, 3/01/19	EUR		290		389,968
Hilton Hotels Corp., Mezzanine G, 1.00%, 11/12/15	USD		9,998		9,773,151
MCE Finance Ltd., 5.00%, 2/15/21 (a)(e)			941		941,000
Regal Entertainment Group, 5.75%, 2/01/25			265		259,700
Six Flags Entertainment Corp., 5.25%, 1/15/21 (a)(e)			576		564,480
Spirit Issuer Plc:
1.07%, 12/28/28	GBP		3,325		3,846,196
5.47%, 12/28/34 (b)			4,500		5,853,917
Station Casinos LLC:
3.66%, 6/18/18	USD		440		440,000
7.50%, 3/01/21 (a)			1,283		1,291,019
Travelport LLC, 6.31%, 12/01/16 (a)(e)(h)			993		901,529
Tropicana Entertainment LLC, 9.63%, 12/15/14 (c)(d)			375		—
The Unique Pub Finance Co. Plc, Series A4, 5.66%, 6/30/27	GBP		1,686		2,372,310
Wynn Las Vegas LLC, 5.38%, 3/15/22 (e)	USD		888		933,510
					37,741,422
Household Durables — 1.6%
Algeco Scotsman Global Finance Plc, 9.00%, 10/15/18	EUR		630		855,396
Ashton Woods USA LLC/Ashton Woods Finance Corp., 6.88%, 2/15/21 (a)	USD		510		512,550
Beazer Homes USA, Inc., 6.63%, 4/15/18 (e)			910		972,562
Berkline/Benchcraft LLC, 4.50%, 11/03/13 (c)(d)			200		—
Brookfield Residential Properties, Inc., 6.50%, 12/15/20 (a)(e)			925		980,500
K. Hovnanian Enterprises, Inc., 7.25%, 10/15/20 (a)			2,130		2,343,000
Corporate Bonds		Par (000)		Value
Household Durables (concluded)
Libbey Glass, Inc., 6.88%, 5/15/20 (e)	USD		250	$	268,125
Spie BondCo 3 SCA, 11.00%, 8/15/19	EUR		248		361,011
Standard Pacific Corp., 8.38%, 1/15/21 (e)	USD		2,400		2,850,000
United Rentals North America, Inc., 5.75%, 7/15/18 (e)			1,244		1,338,855
					10,481,999
Household Products — 0.2%
Ontex IV SA:
7.50%, 4/15/18	EUR		100		135,777
9.00%, 4/15/19			253		338,562
Spectrum Brands Escrow Corp. (a):
6.38%, 11/15/20	USD		250		265,938
6.63%, 11/15/22			285		307,087
					1,047,364
Independent Power Producers & Energy Traders — 2.8%
The AES Corp.:
7.75%, 10/15/15			1,730		1,937,600
9.75%, 4/15/16 (e)			710		844,900
7.38%, 7/01/21			185		209,050
Calpine Corp. (a)(e):
7.25%, 10/15/17			365		388,269
7.50%, 2/15/21			478		519,825
Energy Future Intermediate Holding Co. LLC:
6.88%, 8/15/17 (a)			1,015		1,070,825
10.00%, 12/01/20 (a)(e)			2,105		2,373,387
10.00%, 12/01/20			4,415		5,011,025
GenOn REMA LLC (e):
Series B, 9.24%, 7/02/17			656		723,663
Series C, 9.68%, 7/02/26			650		708,500
Laredo Petroleum, Inc.:
9.50%, 2/15/19			630		711,900
7.38%, 5/01/22			515		558,775
NRG Energy, Inc. (e):
7.63%, 1/15/18			2,001		2,293,646
6.63%, 3/15/23 (a)			790		841,350
QEP Resources, Inc., 5.38%, 10/01/22 (e)			476		498,610
					18,691,325
Industrial Conglomerates — 0.2%
Sequa Corp., 7.00%, 12/15/17 (a)			1,305		1,314,788
Insurance — 1.4%
Allied World Assurance Co. Holdings, Ltd., 7.50%, 8/01/16 (e)			3,000		3,535,302
American International Group, Inc., 3.00%, 3/20/15 (e)			3,120		3,243,983
CNO Financial Group, Inc., 6.38%, 10/01/20 (a)(e)			304		322,240
Forethought Financial Group, Inc., 8.63%, 4/15/21 (a)(e)			750		896,858
MPL 2 Acquisition Canco, Inc., 9.88%, 8/15/18 (a)			595		589,050
Muenchener Rueckversicherungs AG, 6.00%, 5/26/41 (b)	EUR		400		604,154
TMF Group Holding B.V., 9.88%, 12/01/19			210		276,907
					9,468,494
Internet Software & Services — 0.1%
Cerved Technologies SpA:
6.38%, 1/15/20			100		129,902
8.00%, 1/15/21			100		126,965
Equinix, Inc., 4.88%, 4/01/20	USD		139		139,000
					395,867
IT Services — 1.2%
Ceridian Corp., 8.88%, 7/15/19 (a)			1,395		1,572,862
Epicor Software Corp., 8.63%, 5/01/19			1,260		1,357,650
First Data Corp.:
7.38%, 6/15/19 (a)(e)			1,175		1,235,219
6.75%, 11/01/20 (a)(e)			1,250		1,282,812
8.25%, 1/15/21 (a)			38		38,855
12.63%, 1/15/21			1,018		1,085,443

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Consolidated Schedule of Investments (continued)	BlackRock Limited Duration Income Trust (BLW) (Percentages shown are based on Net Assets)

Corporate Bonds			Par (000)		Value
IT Services (concluded)
SunGard Data Systems, Inc., 6.63%, 11/01/19 (a)	USD			1,040	$	1,068,600
WEX, Inc., 4.75%, 2/01/23 (a)(e)				550		532,125
						8,173,566
Machinery — 1.1%
CNH Capital LLC, 3.88%, 11/01/15 (e)				1,320		1,356,300
Silver II Borrower/Silver II US Holdings LLC, 7.75%, 12/15/20 (a)				336		349,440
Terex Corp., 6.00%, 5/15/21 (e)				1,070		1,110,125
Trinseo Materials Operating SCA, 8.75%, 2/01/19 (a)				575		572,844
UR Merger Sub Corp. (e):
7.38%, 5/15/20				805		881,475
7.63%, 4/15/22				2,518		2,788,685
						7,058,869
Media — 4.5%
AMC Networks, Inc. (e):
7.75%, 7/15/21				865		981,775
4.75%, 12/15/22				269		267,991
Cengage Learning Acquisitions, Inc., 11.50%, 4/15/20 (a)(e)				509		402,110
Checkout Holding Corp., 11.49%, 11/15/15 (a)(g)				1,007		743,921
Cinemark USA, Inc., 5.13%, 12/15/22 (a)(e)				206		207,030
Clear Channel Communications, Inc., 9.00%, 12/15/19 (a)(i)				1,017		945,810
Clear Channel Worldwide Holdings, Inc. (e):
6.50%, 11/15/22 (a)				965		1,008,425
6.50%, 11/15/22 (a)				2,608		2,744,920
Series B, 7.63%, 3/15/20				1,045		1,081,575
DIRECTV Holdings LLC, 3.13%, 2/15/16 (e)				3,000		3,144,492
DISH DBS Corp. (e):
7.00%, 10/01/13				1,267		1,306,594
7.13%, 2/01/16				200		222,500
5.88%, 7/15/22				2,025		2,136,375
Intelsat Jackson Holdings SA, 7.25%, 10/15/20				1,660		1,780,350
Intelsat Luxembourg SA:
11.25%, 2/04/17				360		382,500
11.50%, 2/04/17 (h)				280		297,850
Interactive Data Corp., 10.25%, 8/01/18 (e)				2,210		2,505,588
Lynx I Corp., 6.00%, 4/15/21	GBP			1,274		1,985,872
Lynx II Corp., 6.38%, 4/15/23 (a)	USD			200		207,250
The McClatchy Co., 9.00%, 12/15/22 (a)				330		348,975
NAI Entertainment Holdings LLC, 8.25%, 12/15/17 (a)(e)				1,301		1,418,090
Nara Cable Funding Ltd.:
8.88%, 12/01/18	EUR			190		260,457
8.88%, 12/01/18 (a)	USD			200		206,500
ProQuest LLC, 9.00%, 10/15/18 (a)				200		198,500
ProtoStar I Ltd., 18.00%, 10/15/13 (a)(c)(d)(f)				3,454		1,727
Sterling Entertainment Corp., 10.00%, 12/15/19				1,175		1,175,000
Unitymedia Hessen GmbH & Co. KG:
7.50%, 3/15/19				1,440		1,569,600
5.50%, 1/15/23 (a)(e)				720		727,200
Univision Communications, Inc., 6.75%, 9/15/22 (a)				355		383,400
Virgin Media Secured Finance Plc, 6.50%, 1/15/18				1,000		1,067,500
						29,709,877
Metals & Mining — 2.6%
ArcelorMittal:
9.50%, 2/15/15 (e)				1,910		2,155,912
4.25%, 8/05/15 (e)				987		1,021,884
5.00%, 2/25/17				388		403,714
6.13%, 6/01/18 (e)				498		536,992
6.75%, 2/25/22 (e)				400		440,443
Eco-Bat Finance Plc, 7.75%, 2/15/17	EUR			495		667,250
FMG Resources August 2006 Property Ltd., 6.38%, 2/01/16 (a)(e)	USD			625		651,563
Corporate Bonds			Par (000)		Value
Metals & Mining (concluded)
Global Brass and Copper, Inc., 9.50%, 6/01/19 (a)	USD			695	$	755,812
Kaiser Aluminum Corp., 8.25%, 6/01/20 (e)				510		569,925
New Gold, Inc. (a)(e):
7.00%, 4/15/20				175		189,000
6.25%, 11/15/22				685		720,963
New World Resources NV:
7.88%, 5/01/18	EUR			494		661,375
7.88%, 1/15/21				330		398,519
Novelis, Inc., 8.75%, 12/15/20 (e)	USD			3,875		4,340,000
Perstorp Holding AB, 8.75%, 5/15/17 (a)		��		290		304,500
Schmolz & Bickenbach Luxembourg SA, 9.88%, 5/15/19	EUR			365		426,633
Steel Dynamics, Inc., 6.38%, 8/15/22 (a)(e)	USD			555		593,850
Xstrata Canada Financial Corp., 2.85%, 11/10/14 (a)(e)				2,450		2,513,822
						17,352,157
Multiline Retail — 0.3%
Dollar General Corp., 4.13%, 7/15/17 (e)				342		361,665
Dufry Finance SCA, 5.50%, 10/15/20 (a)(e)				1,336		1,392,780
						1,754,445
Oil, Gas & Consumable Fuels — 6.9%
Access Midstream Partners LP:
6.13%, 7/15/22				510		546,975
4.88%, 5/15/23 (e)				510		504,900
BP Capital Markets Plc, 5.25%, 11/07/13				6,000		6,196,752
Chaparral Energy, Inc., 7.63%, 11/15/22				305		330,925
Chesapeake Energy Corp. (e):
6.88%, 11/15/20				405		445,500
6.13%, 2/15/21				620		657,200
Concho Resources, Inc. (e):
6.50%, 1/15/22				221		240,890
5.50%, 10/01/22				265		275,931
CONSOL Energy, Inc., 8.25%, 4/01/20 (e)				1,890		2,083,725
Denbury Resources, Inc., 4.63%, 7/15/23 (e)				994		975,362
EP Energy LLC/Everest Acquisition Finance, Inc., 6.88%, 5/01/19 (e)				630		686,700
Halcon Resources Corp., 8.88%, 5/15/21 (a)				938		1,008,350
Holly Energy Partners LP, 6.50%, 3/01/20 (a)(e)				215		230,050
Kinder Morgan Energy Partners LP, 5.95%, 2/15/18 (e)				3,215		3,834,717
Kinder Morgan Finance Co. LLC, 6.00%, 1/15/18 (a)(e)				1,285		1,418,208
Kodiak Oil & Gas Corp., 8.13%, 12/01/19				865		973,125
Linn Energy LLC:
6.25%, 11/01/19 (a)(e)				1,030		1,050,600
8.63%, 4/15/20				255		282,094
7.75%, 2/01/21				535		577,800
MarkWest Energy Partners LP (e):
5.50%, 2/15/23				370		388,500
4.50%, 7/15/23				540		527,850
Newfield Exploration Co., 5.63%, 7/01/24 (e)				575		600,875
Oasis Petroleum, Inc.:
7.25%, 2/01/19				380		410,400
6.50%, 11/01/21				410		442,800
Offshore Group Investments Ltd., 11.50%, 8/01/15				1,045		1,139,050
ONEOK Partners LP, 2.00%, 10/01/17 (e)				355		359,632
PBF Holding Co. LLC, 8.25%, 2/15/20 (a)(e)				466		506,775
PDC Energy, Inc., 7.75%, 10/15/22 (a)				475		502,313
PetroBakken Energy Ltd., 8.63%, 2/01/20 (a)				898		915,960
Plains Exploration & Production Co., 6.88%, 2/15/23				1,200		1,383,000
Range Resources Corp. (e):
6.75%, 8/01/20				593		647,853
5.75%, 6/01/21				1,298		1,382,370
5.00%, 8/15/22				742		758,695
Sabine Pass Liquefaction LLC, 5.63%, 2/01/21 (a)(e)				3,612		3,729,390

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Consolidated Schedule of Investments (continued)	BlackRock Limited Duration Income Trust (BLW) (Percentages shown are based on Net Assets)

Corporate Bonds		Par (000)		Value
Oil, Gas & Consumable Fuels (concluded)
Sabine Pass Liquified Natural Gas LP (e):
7.50%, 11/30/16	USD		4,110	$	4,541,550
6.50%, 11/01/20 (a)			745		785,975
SandRidge Energy, Inc., 7.50%, 2/15/23 (e)			1,585		1,660,287
SESI LLC:
6.38%, 5/01/19			755		809,738
7.13%, 12/15/21 (e)			745		825,087
SM Energy Co. (e):
6.50%, 11/15/21			605		657,938
6.50%, 1/01/23			285		308,513
Tesoro Logistics LP/Tesoro Logistics Finance Corp., 5.88%, 10/01/20 (a)(e)			176		183,480
					45,787,835
Paper & Forest Products — 0.2%
Ainsworth Lumber Co. Ltd., 7.50%, 12/15/17 (a)			810		872,775
NewPage Corp., 11.38%, 12/31/14 (c)(d)			3,183		—
Sappi Papier Holding GmbH, 8.38%, 6/15/19 (a)(e)			305		341,600
					1,214,375
Pharmaceuticals — 0.3%
Mylan, Inc., 6.00%, 11/15/18 (a)			80		88,109
Valeant Pharmaceuticals International (a)(e):
6.50%, 7/15/16			590		619,869
6.38%, 10/15/20			915		984,769
					1,692,747
Professional Services — 0.1%
La Financiere Atalian SA, 7.25%, 1/15/20	EUR		202		264,117
Truven Health Analytics, Inc., 10.63%, 6/01/20 (a)	USD		540		604,800
					868,917
Real Estate Investment Trusts (REITs) — 0.5%
Cantor Commercial Real Estate Co. LP/CCRE Finance Corp., 7.75%, 2/15/18 (a)			634		637,170
Felcor Lodging LP:
6.75%, 6/01/19			1,170		1,257,018
5.63%, 3/01/23 (a)			291		292,819
Ventas Realty LP/Ventas Capital Corp., 4.75%, 6/01/21 (e)			1,300		1,438,341
					3,625,348
Real Estate Management & Development — 1.4%
Mattamy Group Corp., 6.50%, 11/15/20 (a)(e)			850		846,812
Punch Taverns Finance Plc, Series A2R, 6.82%, 7/15/20	GBP		1,144		1,748,522
Realogy Corp.:
11.50%, 4/15/17	USD		215		229,244
12.00%, 4/15/17			225		240,188
7.88%, 2/15/19 (a)(e)			1,765		1,919,437
7.63%, 1/15/20 (a)(e)			1,015		1,144,412
9.00%, 1/15/20 (a)(e)			435		499,163
Shea Homes LP, 8.63%, 5/15/19 (e)			2,110		2,342,100
					8,969,878
Road & Rail — 1.0%
Asciano Finance Ltd., 3.13%, 9/23/15 (a)(e)			3,400		3,501,633
The Hertz Corp.:
7.50%, 10/15/18			540		589,950
6.75%, 4/15/19 (a)			405		436,388
7.38%, 1/15/21 (e)			1,675		1,846,687
					6,374,658
Semiconductors & Semiconductor Equipment — 0.1%
NXP BV/NXP Funding LLC, 5.75%, 2/15/21 (a)			560		572,600
Software — 0.6%
IAC/InterActiveCorp, 4.75%, 12/15/22 (a)(e)			527		515,143
Infor US, Inc., 9.38%, 4/01/19			2,000		2,245,000
Nuance Communications, Inc., 5.38%, 8/15/20 (a)(e)			875		885,937
					3,646,080
Corporate Bonds		Par (000)		Value
Specialty Retail — 1.4%
Claire’s Stores, Inc., 9.00%, 3/15/19 (a)(e)	USD		1,034	$	1,147,740
Michaels Stores, Inc., 7.75%, 11/01/18			317		345,926
New Academy Finance Co. LLC/New Academy Finance Corp., 8.00%, 6/15/18 (a)(h)			218		225,085
Party City Holdings, Inc., 8.88%, 8/01/20 (a)			599		651,413
Penske Automotive Group, Inc., 5.75%, 10/01/22 (a)			705		737,606
QVC, Inc.:
7.50%, 10/01/19 (a)			410		452,514
7.38%, 10/15/20 (a)			320		354,700
5.13%, 7/02/22			11		11,632
Sally Holdings LLC (e):
6.88%, 11/15/19			920		1,025,800
5.75%, 6/01/22			425		448,906
The Western Union Co., 2.88%, 12/10/17 (e)			4,000		4,021,728
					9,423,050
Textiles, Apparel & Luxury Goods — 0.1%
Levi Strauss & Co., 6.88%, 5/01/22 (e)			380		412,775
Tobacco — 0.5%
Reynolds American, Inc., 7.63%, 6/01/16			2,500		2,978,042
Transportation Infrastructure — 0.8%
Aguila 3 SA, 7.88%, 1/31/18 (a)			498		527,880
Federal Express Corp. 2012 Pass Through Trust, 2.63%, 1/15/18 (a)(e)			1,212		1,226,567
Penske Truck Leasing Co. LP/PTL Finance Corp., 3.13%, 5/11/15 (a)(e)			3,372		3,493,796
					5,248,243
Wireless Telecommunication Services — 2.3%
Crown Castle International Corp., 5.25%, 1/15/23 (a)			725		743,125
Crown Castle Towers LLC, 4.52%, 1/15/35 (a)			3,000		3,184,068
Digicel Group Ltd. (a):
8.25%, 9/01/17			1,335		1,408,425
8.25%, 9/30/20			1,215		1,295,797
6.00%, 4/15/21 (i)			1,300		1,296,750
Sprint Capital Corp., 6.88%, 11/15/28 (e)			1,410		1,424,100
Sprint Nextel Corp. (a)(e):
9.00%, 11/15/18			3,070		3,806,800
7.00%, 3/01/20			1,510		1,766,700
Sunrise Communications International SA, 7.00%, 12/31/17	EUR		150		209,737
					15,135,502
Total Corporate Bonds — 71.7%					472,704,111

Floating Rate Loan Interests (b)
Aerospace & Defense — 0.3%
DigitalGlobe, Inc., Term Loan B, 3.75%, 1/24/20	USD		1,300		1,305,278
Transdigm, Inc., Term Loan C, 4.00%, 2/28/20			660		661,241
					1,966,519
Airlines — 0.3%
Delta Air Lines, Inc., Term Loan B, 4.50%, 4/20/17			686		692,099
Northwest Airlines, Inc., Term Loan:
2.32%, 3/10/17			338		314,678
2.32%, 3/10/17			613		570,703
1.70%, 9/10/18			278		248,198
1.70%, 9/10/18			276		246,413
US Airways Group, Inc., Term Loan, 2.70%, 3/21/14			145		144,585
					2,216,676
Auto Components — 1.9%
Autoparts Holdings Ltd.:
First Lien Term Loan, 6.50%, 7/28/17			988		993,257
Second Lien Term Loan, 10.50%, 1/29/18			1,500		1,522,500

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Consolidated Schedule of Investments (continued)	BlackRock Limited Duration Income Trust (BLW) (Percentages shown are based on Net Assets)

Floating Rate Loan Interests (b)		Par (000)		Value
Auto Components (concluded)
Federal-Mogul Corp.:
Term Loan B, 2.14%, 12/29/14	USD		3,109	$	2,893,033
Term Loan C, 2.14%, 12/28/15			829		770,761
The Goodyear Tire & Rubber Co., Second Lien Term Loan, 4.75%, 4/30/19			2,985		2,996,194
Schaeffler AG, Term Loan B2, 6.00%, 1/27/17			2,135		2,134,466
Transtar Holding Co., First Lien Term Loan, 5.50%, 10/09/18			1,282		1,294,606
					12,604,817
Beverages — 0.0%
Le-Nature’s, Inc., Tranche B Term Loan, 3/01/11 (c)(d)(f)			1,000		100
Biotechnology — 0.1%
Grifols, Inc., Term Loan B, 4.25%, 6/01/17			535		537,393
Building Products — 0.5%
Armstrong World Industries, Inc., Term Loan B, 4.00%, 3/09/18			1,258		1,258,994
CPG International, Inc., Term Loan, 5.75%, 9/18/19			1,372		1,381,849
United Subcontractors, Inc., First Lien Term Loan, 6.32%, 6/30/15			164		155,423
Wilsonart International Holdings LLC, Term Loan B, 5.50%, 10/31/19			820		828,610
					3,624,876
Capital Markets — 0.6%
American Capital Holdings, Inc., Term Loan, 5.50%, 8/22/16			1,462		1,476,620
HarbourVest Partners LLC, Term Loan B, 4.75%, 11/21/17			932		936,552
Nuveen Investments, Inc.:
Extended First Lien Term Loan, 5.70%—5.81%, 5/13/17			198		199,997
Extended Term Loan, 5.70%—5.81%, 5/12/17			302		305,663
Incremental Term Loan, 7.25%, 5/13/17			580		582,900
Second Lien Term Loan, 8.25%, 2/28/19			685		698,700
					4,200,432
Chemicals — 1.3%
American Rock Salt Holdings LLC, Term Loan, 5.50%, 4/25/17			1,226		1,214,181
Chemtura Corp., Exit Term Loan B, 5.50%, 8/27/16			500		503,750
Evergreen Acqco 1 LP, Term Loan, 5.00%, 7/09/19			781		787,672
General Chemical Corp., Term Loan, 5.00%—5.75%, 10/06/15			104		104,451
INEOS US Finance LLC, 6 Year Term Loan, 6.50%, 5/04/18			1,052		1,074,034
MacDermid, Inc., Tranche C Term Loan, 2.31%, 4/11/14	EUR		433		564,417
Nexeo Solutions LLC, Term Loan B, 5.00%, 9/08/17	USD		1,277		1,273,265
Tronox Pigments (Netherlands) BV, Delayed Draw Term Loan B, 4.25%, 2/08/18			688		687,093
US Coatings Acquisition, Inc.:
Term Loan, 4.75%, 2/03/20			2,110		2,135,616
Term Loan B, 5.25%, 2/03/20	EUR		130		171,449
					8,515,928
Commercial Banks — 0.3%
Everest Acquisition LLC, Term Loan B1, 5.00%, 5/24/18	USD		1,690		1,704,179
Commercial Services & Supplies — 1.9%
ACCO Brands Corp., Term Loan B, 4.25%, 4/30/19			676		680,801
ADS Waste Holdings, Inc., Term Loan B, 5.25%, 10/09/19			1,655		1,656,556
Altegrity, Inc.:
Term Loan, 3.20%, 2/21/15			955		921,575
Tranche D Term Loan, 7.75%, 2/20/15			1,211		1,211,201
AWAS Finance Luxembourg 2012 SA, Term Loan, 4.75%, 7/16/18			1,318		1,340,787
Floating Rate Loan Interests (b)		Par (000)		Value
Commercial Services & Supplies (concluded)
AWAS Finance Luxembourg Sarl, Term Loan B, 5.25%, 6/10/16	USD		992	$	999,629
Delos Aircraft, Inc., Term Loan 2, 4.75%, 4/12/16			1,450		1,458,454
KAR Auction Services, Inc., Term Loan B, 5.00%, 5/19/17			1,478		1,492,275
Progressive Waste Solutions Ltd., Term Loan B, 3.50%, 10/24/19			785		791,869
Protection One, Inc., Term Loan, 5.75%, 3/21/19			824		830,984
WEST Corp., Term Loan B8, 5.75%, 2/07/18			995		997,905
					12,382,036
Communications Equipment — 1.9%
Alcatel-Lucent:
Term Loan B, 6.25%, 7/29/16			590		596,166
Term Loan C, 7.25%, 1/31/19			3,650		3,690,150
Term Loan D, 7.75%, 1/31/19	EUR		1,235		1,616,610
Avaya, Inc.:
Extended Term Loan B3, 4.79%, 10/26/17	USD		206		191,200
Term Loan B5, 8.00%, 3/30/18			266		267,872
CommScope, Inc., Term Loan, 4.25%, 1/12/18			1,228		1,233,381
Riverbed Technology, Inc., Term Loan, 4.00%, 12/18/19			620		626,975
Telesat Canada, Term Loan A, 4.40%, 3/28/17	CAD		1,835		1,748,255
Zayo Group, LLC Refinancing, Term Loan B, 5.25%, 7/12/19	USD		2,810		2,818,953
					12,789,562
Construction & Engineering — 0.9%
Centaur LLC:
First Lien Term Loan, 8.75%, 2/15/19			1,445		1,445,910
Second Lien Term Loan, 8.75%, 2/15/20			710		720,650
Safway Services LLC, First Out Term Loan, 9.00%, 12/16/17			3,750		3,750,000
					5,916,560
Construction Materials — 0.4%
HD Supply, Inc., Senior Debt B, 4.50%, 10/12/17			2,328		2,334,493
Consumer Finance — 0.1%
Springleaf Financial Funding Co., Term Loan, 5.50%, 5/10/17			925		928,274
Containers & Packaging — 0.1%
Sealed Air Corp., Term Loan, 4.00%, 10/03/18			517		523,046
Distributors — 0.1%
Crossmark Holdings, Inc., Term Loan, 4.50%, 1/31/20			385		385,162
VWR Funding, Inc., Extended Term Loan B, 4.54%, 4/03/17			460		463,307
					848,469
Diversified Consumer Services — 1.1%
Bright Horizons Family, Inc., Term Loan B, 4.00%, 1/16/20			785		788,925
Coinmach Service Corp., Term Loan B, 3.21%, 11/20/14			3,277		3,203,356
Education Management LLC, Term Loan C3, 8.25%, 3/29/18			549		472,857
Laureate Education, Inc., Extended Term Loan, 5.25%, 6/18/18			1,735		1,744,012
ServiceMaster Co., New Term Loan, 2.70%, 4/01/17			1,295		1,290,606
					7,499,756
Diversified Financial Services — 1.0%
Reynolds Group Holdings Inc., Dollar Term Loan, 4.75%, 9/28/18			2,050		2,072,493
Telesat LLC, Term Loan B, 4.25%, 3/28/19			3,706		3,732,320
WMG Acquisition Corp., Term Loan, 5.25%, 11/01/18			930		940,462
					6,745,275

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Consolidated Schedule of Investments (continued)	BlackRock Limited Duration Income Trust (BLW) (Percentages shown are based on Net Assets)

Floating Rate Loan Interests (b)		Par (000)		Value
Diversified Telecommunication Services — 2.0%
Consolidated Communications, Inc., Term Loan B3, 5.25%, 12/31/18	USD		2,255	$	2,276,851
Hawaiian Telcom Communications, Inc., Term Loan B, 7.00%, 2/28/17			1,751		1,783,436
Integra Telecom, Inc.:
Second Lien Term Loan, 9.75%, 2/15/20			590		603,275
Term Loan, 9.25%, 2/15/19			1,175		1,187,925
Level 3 Financing, Inc.:
2016 Term Loan B, 4.75%, 2/01/16			763		771,672
2019 Term Loan B, 5.25%, 8/01/19			625		631,381
Term Loan, 4.75%, 8/01/19			4,830		4,868,640
Syniverse Holdings, Inc., Delayed Draw Term Loan, 4.00%, 4/23/19			525		524,344
US Telepacific Corp., Term Loan B, 5.75%, 2/23/17			494		492,926
					13,140,450
Electric Utilities — 0.0%
TPF Generation Holdings LLC, Synthetic Letter of Credit Deposit, First Lien, 2.21%, 12/13/13			47		47,074
Energy Equipment & Services — 1.3%
Dynegy Midwest Generation LLC, Coal Co. Term Loan, 9.25%, 8/04/16			2,012		2,076,701
Dynegy Power LLC, Gas Co. Term Loan, 9.25%, 8/04/16			3,247		3,376,896
MEG Energy Corp., Term Loan, 3.75%, 3/20/20			1,320		1,323,300
Tervita Corp., Incremental Term Loan, 3.20%, 5/01/18			1,145		1,150,908
Unifrax I LLC/Unifrax Holding Co., Dollar Term Loan, 4.25%, 11/28/18			555		558,669
					8,486,474
Food & Staples Retailing — 0.3%
Pilot Travel Centers LLC, Term Loan B2, 4.25%, 8/07/19			608		613,988
Rite Aid Corp.:
Second Lien Term Loan, 5.75%, 7/07/20			240		245,467
Term Loan 6, 4.00%, 2/21/20			260		260,502
Supervalu, Inc., Term Loan B, 6.25%, 2/05/18			920		930,350
					2,050,307
Food Products — 0.5%
Advance Pierre Foods, Inc., Term Loan, 5.75%, 7/10/17			785		794,569
Del Monte Foods Co., Term Loan, 4.50%, 3/08/18			918		921,424
Pinnacle Foods Finance LLC, Term Loan E, 4.75%, 10/17/18			1,124		1,134,162
Solvest Ltd. (Dole):
Term Loan B-2, 5.00%—6.00%, 7/06/18			96		96,349
Term Loan C-2, 5.00%—6.00%, 7/06/18			172		172,415
					3,118,919
Health Care Equipment & Supplies — 1.4%
Bausch & Lomb, Inc., Term Loan B, 5.25%, 5/17/19			2,045		2,059,815
BSN Medical Acquisition Holding GmbH, Term Loan B, 5.00%, 8/28/19			700		702,800
Capital Safety North America Holding, Inc., Term Loan, 4.50%, 1/21/19			993		992,500
DJO Finance LLC, Term Loan B3, 6.25%, 9/15/17			2,154		2,171,236
Hologic, Inc., Term Loan B, 4.50%, 8/01/19			1,638		1,656,375
Immucor, Inc., Term Loan B2, 5.00%, 8/18/18			643		641,962
LHP Hospital Group, Inc., Term Loan, 9.00%, 7/03/18			856		874,954
					9,099,642
Health Care Providers & Services — 2.2%
American Renal Holdings Co., Inc.:
First Lien Term Loan, 4.50%, 8/14/19			855		852,862
Second Lien Term Loan, 8.50%, 2/14/20			890		887,775
Floating Rate Loan Interests (b)		Par (000)		Value
Health Care Providers & Services (concluded)
Ardent Medical Services, Inc., Term Loan, 6.75%, 7/02/18	USD		480	$	486,600
CHG Buyer Corp., First Lien Term Loan, 5.00%, 11/22/19			839		848,626
ConvaTec, Inc., Term Loan, 5.00%, 12/22/16			1,258		1,271,516
DaVita, Inc., Term Loan B, 4.50%, 10/20/16			1,960		1,973,994
Emergency Medical Services Corp., Term Loan, 4.00%, 5/25/18			279		279,008
Genesis HealthCare Corp., Term Loan B, 10.00%—10.75%, 9/25/17			1,096		1,074,410
Harden Healthcare LLC:
Add on Term Loan A, 7.75%, 3/02/15			2,880		2,819,570
Term Loan A, 8.50%, 3/02/15			478		473,526
inVentiv Health, Inc.:
Combined Term Loan, 7.50%, 8/04/16			55		54,016
Incremental Term Loan B-3, 7.75%, 5/15/18			232		228,498
Medpace, Inc., Term Loan, 6.50%—7.25%, 6/16/17			2,629		2,615,482
US Renal Care, Inc., First Lien Term Loan, 6.25%, 7/02/19			856		867,466
					14,733,349
Health Care Technology — 0.2%
IMS Health, Inc., Tranche B Term Loan, 3.75%, 8/25/17			646		647,912
Kinetic Concepts, Inc., Term Loan C1, 5.50%, 5/04/18			614		621,374
MedAssets, Inc., Term Loan B, 4.00%, 12/13/19			365		367,128
					1,636,414
Hotels, Restaurants & Leisure — 3.6%
Alpha D2 Ltd., Extended Term Loan B2, 6.00%, 4/30/19			1,673		1,693,869
Caesars Entertainment Operating Co., Inc., Term Loan B1, 3.20%, 1/28/15			2,197		2,190,228
Golden Living, Term Loan, 5.00%, 5/04/18			1,065		1,020,408
Harrah’s Property Co., Mezzanine Term Loan, 3.69%, 2/13/14			3,811		3,505,936
MGM Resorts International, Term Loan B, 4.25%, 12/20/19			1,970		1,992,655
OSI Restaurant Partners LLC, Term Loan B, 4.75%, 10/24/19			843		853,824
Sabre, Inc., Term Loan B, 5.25%, 2/01/19			570		569,595
SeaWorld Parks & Entertainment, Inc., Term Loan B, 4.00%, 8/17/17			825		828,645
Station Casinos, Inc.:
2011 Term Loan B2, 6.25%, 6/17/16			2,355		2,335,383
Term Loan B, 5.50%, 9/27/19			2,010		2,021,681
Term Loan B, 5.00%, 2/13/20			3,735		3,766,124
Travelport Holdings Ltd.:
Extended Tranche A Term Loan, 6.40%, 12/01/16			457		161,522
Extended Tranche B Term Loan, 13.80%, 12/01/16			1,530		142,817
Twin River Worldwide Holdings, Inc., Term Loan, 8.50%, 11/05/15			1,195		1,203,413
Wendy’s International, Inc., Term Loan B, 4.75%, 5/15/19			1,232		1,242,224
					23,528,324
Household Products — 0.3%
Prestige Brands, Inc., Term Loan, 5.25%—6.25%, 1/31/19			680		682,943
Spectrum Brands, Inc., Term Loan, 4.50%, 12/17/19			1,210		1,224,617
					1,907,560
Independent Power Producers & Energy Traders — 0.2%
The AES Corp., Term Loan, 4.25%, 6/01/18			384		385,547
Calpine Corp., Term Loan B1, 4.50%, 4/02/18			1,065		1,070,853
					1,456,400

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Consolidated Schedule of Investments (continued)	BlackRock Limited Duration Income Trust (BLW) (Percentages shown are based on Net Assets)

Floating Rate Loan Interests (b)		Par (000)		Value
Industrial Conglomerates — 0.4%
Sequa Corp., Term Loan B, 5.25%, 6/19/17	USD		2,635	$	2,665,046
Insurance — 0.9%
Alliant Holdings I, Inc., Term Loan B, 5.00%, 12/20/19			1,075		1,083,063
Asurion LLC, Term Loan B1, 5.50%, 5/24/19			1,545		1,549,511
CNO Financial Group, Inc.:
Term Loan B-1, 4.25%, 9/28/16			993		1,000,196
Term Loan B-2, 5.00%, 9/20/18			1,356		1,368,241
Cunningham Lindsey Group, Inc., Term Loan B, 5.00%, 12/10/19			930		941,625
					5,942,636
Internet Software & Services — 0.1%
Web.com Group, Inc., Term Loan B, 5.50%, 10/27/17			947		955,372
IT Services — 2.1%
CCC Information Services, Inc., Term Loan, 5.25%, 12/20/19			310		311,860
Ceridian Corp., Extended Term Loan, 5.95%, 5/09/17			1,084		1,096,227
First Data Corp.:
2018 Add-on Term Loan, 5.20%, 9/24/18			1,805		1,804,188
Extended 2018 Term Loan B, 4.20%, 3/23/18			5,119		5,054,701
Genpact International, Inc., Term Loan B, 4.25%, 8/30/19			1,067		1,077,998
InfoGroup, Inc., Term Loan, 5.75%, 5/25/18			838		759,065
SunGard Data Systems, Inc., Term Loan D, 4.50%, 1/31/20			855		861,412
TransUnion LLC, Term Loan B, 5.50%, 2/12/18			2,597		2,612,471
					13,577,922
Leisure Equipment & Products — 0.1%
Eastman Kodak Co., DIP Term Loan B, 8.50%, 7/19/13			537		537,089
FGI Operating Co. LLC, Term Loan, 5.50%, 4/19/19			398		396,805
					933,894
Life Sciences Tools & Services — 0.1%
Patheon, Inc., Term Loan, 7.25%, 12/06/18			469		474,099
Machinery — 1.5%
Alliance Laundry Systems LLC, First Lien Term Loan, 5.50%, 12/07/18			300		301,218
Dematic S.A., Term Loan, 5.25%, 12/27/19			1,445		1,454,479
Intelligrated, Inc., First Lien Term Loan, 4.50%, 7/30/18			1,097		1,097,250
Rexnord Corp., Term Loan B, 4.50%, 4/02/18			1,473		1,482,030
Silver II US Holdings LLC, First Lien Term Loan, 4.75%, 12/05/19			1,315		1,315,000
Terex Corp., Term Loan B:
4.50%, 4/28/17			988		997,094
5.00%, 4/28/17	EUR		306		400,795
Wabash National Corp., Term Loan B, 6.00%, 5/02/19	USD		2,744		2,762,567
					9,810,433
Media — 5.9%
Capsugel Holdings US, Inc., Term Loan B, 4.75%, 8/01/18			629		635,748
Cengage Learning Acquisitions, Inc., Tranche 1 Incremental, 7.50%, 7/03/14			2,015		1,602,007
Charter Communications Operating LLC:
Extended Term Loan C, 3.46%, 9/06/16			1,566		1,571,114
Term Loan D, 4.00%, 5/15/19			910		916,570
Clear Channel Communications, Inc.:
Term Loan B, 3.85%, 1/29/16			441		377,148
Term Loan C, 3.85%, 1/29/16			834		704,103
Cumulus Media, Inc., First Lien Term Loan, 4.50%, 9/17/18			1,484		1,497,883
Floating Rate Loan Interests (b)		Par (000)		Value
Media (concluded)
EMI Music Publishing Ltd., Term Loan B, 5.50%, 6/29/18	USD		766	$	774,386
Foxco Acquisition Sub LLC, Term Loan B, 5.50%, 7/14/17			1,171		1,184,062
Getty Images, Inc., Term Loan B, 4.75%, 10/18/19			1,820		1,834,160
Houghton Mifflin Harcourt Publishing Co., DIP Term Loan B, 7.25%, 6/01/18			2,164		2,174,468
Hubbard Broadcasting, Term Loan B, 4.50%, 4/28/17			726		731,575
Intelsat Jackson Holdings SA, Term Loan B1, 4.50%, 4/02/18			4,169		4,208,076
Interactive Data Corp., Term Loan B, 3.75%, 2/11/18			2,126		2,129,019
Kabel Deutschland GmbH, Term Loan F1, 3.50%, 2/01/19			3,195		3,200,144
Lavena Holding 4 GmbH (Prosiebensat.1 Media AG):
Term Loan (Second Lien), 4.12%, 9/02/16	EUR		904		1,148,096
Term Loan B, 2.62%, 3/06/15			304		390,366
Term Loan C, 3.00%, 3/04/16			304		392,349
NEP Supershooters LP:
First Lien Term Loan, 5.25%, 1/18/20	USD		840		842,360
Second Lien Term Loan, 9.50%, 8/18/20			595		609,875
Term Loan, 4.75%, 1/18/20			840		842,100
Sinclair Television Group, Inc., Term Loan B, 4.00%, 10/28/16			1,212		1,216,265
Univision Communications, Inc., Extended Term Loan, 4.45%, 3/31/17			2,654		2,656,513
UPC Broadband Holding BV, Term Loan U, 4.12%, 12/29/17	EUR		97		126,369
UPC Financing Partnership, Term Loan T, 3.70%, 12/30/16	USD		355		355,824
Virgin Media Investment Holdings, Term Loan B:
4.50%, 2/15/20	GBP		2,340		3,536,017
3.50%, 2/17/20	USD		2,110		2,097,403
WC Luxco Sarl, Term Loan B-3, 4.25%, 3/15/18			526		530,919
Weather Channel, Term Loan B, 3.50%, 2/07/17			277		277,992
WideOpenWest Finance LLC, First Lien Term Loan, 6.25%, 7/17/18			741		749,985
					39,312,896
Metals & Mining — 1.9%
Ameriforge Group, Inc.:
First Lien Term Loan, 5.00%, 12/19/19			950		958,911
Second Lien Term Loan, 8.75%, 12/18/20			470		476,463
Constellium Holdco BV, Term Loan B, 9.25%, 5/25/18			1,298		1,324,444
FMG America Finance, Inc., Term Loan, 5.25%, 10/18/17			3,007		3,042,859
Metals USA, Inc., Term Loan, 6.25%, 11/15/19			1,155		1,156,444
Novelis, Inc.:
Incremental Term Loan B-2, 4.00%, 3/10/17			961		961,717
Term Loan, 4.00%, 3/10/17			2,930		2,932,739
Walter Energy, Inc., Term Loan B, 5.75%, 4/02/18			298		298,516
Windsor Financing LLC, Term Loan B, 6.25%, 12/05/17			1,635		1,685,998
					12,838,091
Multiline Retail — 1.0%
99¢ Only Stores, Term Loan, 5.25%, 1/11/19			796		801,239
Apex Tool Group LLC, Term Loan B, 4.50%, 1/28/20			700		706,874
BJ’s Wholesale Club, Inc.:
First Lien Term Loan, 5.75%, 9/13/19			594		593,887
Second Lien Term Loan, 9.75%, 3/26/20			545		563,056
HEMA Holding BV:
Second Lien Term Loan, 5.12%, 1/05/17	EUR		2,600		3,082,141
Term Loan B, 2.12%, 7/06/15			334		414,584
Term Loan C, 2.87%, 7/05/16			334		416,762
					6,578,543

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Consolidated Schedule of Investments (continued)	BlackRock Limited Duration Income Trust (BLW) (Percentages shown are based on Net Assets)

Floating Rate Loan Interests (b)		Par (000)		Value
Oil, Gas & Consumable Fuels — 2.0%
Chesapeake Energy Corp., Unsecured Term Loan, 5.75%, 12/01/17	USD		2,595	$	2,648,794
Gibson Energy ULC, Term Loan B, 4.75%, 6/15/18			1,229		1,240,734
Obsidian Natural Gas Trust, Term Loan, 7.00%, 11/02/15			2,022		2,042,118
Plains Exploration & Production, 7-Year Term Loan B, 4.00%, 11/30/19			2,270		2,273,791
Samson Investment Co., Second Lien Term Loan, 6.00%, 9/25/18			740		746,941
Tesoro Corp., Term Loan B, 2.55%, 1/30/16			1,375		1,387,031
Vantage Drilling Co., Term Loan, 6.25%, 10/26/17			3,125		3,141,065
					13,480,474
Pharmaceuticals — 1.2%
Aptalis Pharma, Inc., Term Loan B, 5.50%, 2/10/17			1,470		1,472,940
Par Pharmaceutical, Term Loan B, 4.25%, 9/28/19			1,970		1,967,600
Pharmaceutical Product Development, Inc., Term Loan B, 4.25%, 12/05/18			1,719		1,728,568
RPI Finance Trust, Incremental Tranche 2, 4.00%, 11/09/18			461		465,448
Valeant Pharmaceuticals International, Inc., Series C, Tranche B, 3.50%, 12/11/19			1,120		1,124,200
Warner Chilcott Corp.:
Incremental Term Loan B-1, 4.25%, 3/15/18			291		293,277
Term Loan B-1, 4.25%, 3/15/18			765		772,247
Term Loan B-2, 4.25%, 3/15/18			237		238,748
					8,063,028
Professional Services — 0.6%
Booz Allen Hamilton, Inc., Term Loan B, 4.50%, 7/31/19			1,387		1,398,657
Emdeon, Inc., Term Loan B1, 5.00%, 11/02/18			926		937,445
ON Assignment, Inc., Term Loan B, 5.00%, 5/15/19			515		519,278
Truven Health Analytics, Inc., Term Loan B, 5.75%, 6/01/19			1,184		1,195,156
					4,050,536
Real Estate Investment Trusts (REITs) — 0.5%
iStar Financial, Inc., Term Loan, 4.50%, 9/28/17			3,244		3,246,483
Real Estate Management & Development — 0.7%
Realogy Corp.:
Extended Letter of Credit Loan, 4.46%, 10/10/16			103		102,664
Extended Term Loan, 4.42%, 10/10/16			4,773		4,771,918
					4,874,582
Road & Rail — 0.1%
Road Infrastructure Investment LLC, Term Loan B, 6.25%, 3/30/18			640		641,763
Semiconductors & Semiconductor Equipment — 0.6%
Freescale Semiconductor, Inc.:
Extended Term Loan B, 4.45%, 12/01/16			1,137		1,137,128
Term Loan, 5.00%, 3/1/20			1,575		1,568,700
NXP BV:
Term Loan A-2, 5.50%, 3/03/17			399		406,205
Term Loan C, 4.75%, 1/11/20			980		995,004
					4,107,037
Software — 1.1%
Bankruptcy Management Solutions, Inc., Term Loan (First Lien), 7.50%, 8/20/14			2		1,099
GCA Services Group, Inc.:
Second Lien Term Loan, 9.25%, 11/1/20			700		693,000
Term Loan B, 5.25%, 11/01/19			560		560,000
Infor US, Inc., Term Loan B2, 5.25%, 4/05/18			1,606		1,623,078
Kronos, Inc., Second Lien Term Loan, 9.75%, 4/30/20			1,170		1,216,800
RP Crown Parent LLC, First Lien Term Loan, 6.75%, 12/21/18			920		933,230
Sophia LP, Term Loan B, 6.25%, 7/19/18			892		898,205
Floating Rate Loan Interests (b)		Par (000)		Value
Software (concluded)
SS&C Technologies, Inc.:
Term Loan B-1, 5.00%, 6/07/19	USD		1,233	$	1,243,590
Term Loan B-2, 5.00%, 6/07/19			128		128,647
					7,297,649
Specialty Retail — 1.7%
Academy Ltd., Term Loan, 4.75%, 8/03/18			1,782		1,802,634
Bass Pro Group LLC, Term Loan, 4.00%, 11/20/19			840		844,519
Burlington Coat Factory Warehouse Corp., Term Loan B1, 5.50%, 2/23/17			200		201,723
David’s Bridal, Inc., Term Loan B, 5.00%, 10/11/19			955		964,789
Equinox Fitness Clubs, First Lien Term Loan, 5.50%, 1/31/20			1,140		1,151,400
Harbor Freight Tools USA, Inc., Term Loan B, 5.50%, 11/14/17			527		532,624
Michaels Stores, Inc., Term Loan, 4.81%, 1/31/20			1,425		1,428,163
Party City Holdings, Inc., Term Loan B, 5.75%, 7/26/19			1,800		1,798,650
PETCO Animal Supplies, Inc., Term Loan, 4.00%, 11/24/17			1,209		1,218,300
Toys ‘R’ Us Delaware, Inc., Term Loan B3, 5.25%, 5/25/18			615		581,506
The Yankee Candle Co., Inc., Term Loan B, 5.25%, 4/02/19			540		543,191
					11,067,499
Textiles, Apparel & Luxury Goods — 0.4%
Ascend Performance Materials LLC, Term Loan B, 6.75%, 4/10/18			1,265		1,278,092
PVH Corp., Term Loan B, 3.25%, 12/19/19			790		796,336
Wolverine Worldwide, Inc., Term Loan B, 4.00%, 7/31/19			710		714,823
					2,789,251
Thrifts & Mortgage Finance — 0.3%
Insight Global, Inc., First Lien Term Loan, 6.00%, 10/31/19			870		872,175
Ocwen Financial Corp., Term Loan, 5.00%, 1/22/18			815		824,845
					1,697,020
Trading Companies & Distributors — 0.1%
WESCO Distribution, Inc., Term Loan B, 4.50%, 12/12/19			770		777,061
Wireless Telecommunication Services — 1.7%
Cricket Communications, Inc., Term Loan, 4.75%, 10/10/19			1,160		1,163,631
MetroPCS Wireless, Inc., Term Loan B-3, 4.00%, 3/16/18			1,027		1,028,316
Vodafone Americas Finance 2, Inc., Term Loan, 6.88%, 8/11/15 (h)			8,583		8,755,004
					10,946,951
Total Floating Rate Loan Interests — 49.8%					330,671,570

Non-Agency Mortgage-Backed Securities
Collateralized Mortgage Obligations — 2.8%
Adjustable Rate Mortgage Trust, Series 2007-1, Class 3A21, 5.59%, 3/25/37 (b)			1,042		1,027,604
Countrywide Alternative Loan Trust, Series 2005-54CB, Class 3A4, 5.50%, 11/25/35			6,546		5,576,788
Countrywide Home Loan Mortgage Pass-Through Trust:
Series 2005-17, Class 1A6 5.50%, 9/25/35			2,014		2,003,643
Series 2006-17, Class A2 6.00%, 12/25/36			4,142		3,814,267
Series 2007-HY5, Class 3A1 5.59%, 9/25/37 (b)			2,681		2,457,472
GSR Mortgage Loan Trust, Series 2005-AR5, Class 2A3, 2.95%, 10/25/35 (b)			2,258		2,031,254
Morgan Stanley Reremic Trust, Series 2010-R4, Class 4A, 0.47%, 2/26/37 (a)(b)			1,499		1,442,667
					18,353,695

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Consolidated Schedule of Investments (continued)	BlackRock Limited Duration Income Trust (BLW) (Percentages shown are based on Net Assets)

Non-Agency Mortgage-Backed Securities		Par (000)		Value
Commercial Mortgage-Backed Securities — 8.1%
Banc of America Commercial Mortgage, Inc. (b):
Series 2007-3, Class A2 5.62%, 6/10/49	USD		386	$	385,899
Series 2007-4, Class A4 5.75%, 2/10/51			2,150		2,502,263
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2007-CD4, Class A2B, 5.21%, 12/11/49			284		287,274
Commercial Mortgage Pass-Through Certificates:
Series 2013-LC6, Class B 3.74%, 1/10/46			1,110		1,142,454
Series 2013-LC6, Class D 4.29%, 1/10/46 (a)(b)			1,330		1,213,734
Credit Suisse Mortgage Capital Certificates:
Series 2006-C5, Class AM 5.34%, 12/15/39			1,850		2,035,823
Series 2007-C2, Class A2 5.45%, 1/15/49 (b)			87		87,571
Series 2007-C4, Class A3 5.76%, 9/15/39 (b)			2,815		2,957,141
Series 2007-C5, Class AAB 5.62%, 9/15/40 (b)			1,887		2,003,186
First Union Commercial Mortgage Securities, Inc., Series 1997-C2, Class G, 7.50%, 11/18/29 (b)			1,312		1,379,663
Greenwich Capital Commercial Funding Corp.:
Series 2006-GG7, Class AM 5.87%, 7/10/38 (b)			1,610		1,804,916
Series 2007-GG9, Class A4 5.44%, 3/10/39			2,110		2,404,039
GS Mortgage Securities Corp. II:
Series 2006-GG6, Class AM 5.62%, 4/10/38 (b)			3,680		4,047,650
Series 2013-GC10, Class B 3.68%, 2/10/46 (a)			1,995		2,052,203
JPMorgan Chase Commercial Mortgage Securities Corp.:
Series 2004-LN2, Class A2 5.12%, 7/15/41			2,315		2,427,796
Series 2007-CB18, Class A4 5.44%, 6/12/47			2,110		2,400,098
Series 2007-CB19, Class A4 5.71%, 2/12/49 (b)			2,140		2,467,893
LB-UBS Commercial Mortgage Trust, Series 2007-C6, Class A4, 5.86%, 7/15/40 (b)			4,745		5,496,024
Morgan Stanley Capital I, Series 2007-IQ15, Class A2, 5.85%, 6/11/49 (b)			1,546		1,572,758
Talisman Finance Plc, Series 6, Class A, 0.39%, 10/22/16 (b)	EUR		2,068		2,497,191
Titan Europe Plc, Series 2007-1X, Class A, 0.76%, 1/20/17 (b)	GBP		2,548		3,247,238
Wachovia Bank Commercial Mortgage Trust, Series 2007-C33, Class A4, 5.93%, 2/15/51 (b)	USD		2,030		2,342,975
WF-RBS Commercial Mortgage Trust:
Series 2012-C8, Class B 4.31%, 8/15/45			1,085		1,176,092
Series 2012-C8, Class C 4.88%, 8/15/45 (b)			1,395		1,525,672
Series 2013-C11, Class D 4.19%, 3/15/45 (a)(b)			1,400		1,338,313
Windermere CMBS Plc, Series XI-X, Class A, 0.76%, 4/24/17 (b)	GBP		1,816		2,612,945
					53,408,811
Interest Only Commercial Mortgage-Backed Securities — 0.7%
Morgan Stanley Capital I Trust, Series 2012-C4, Class XA, 2.69%, 3/15/45 (a)(b)	USD		15,468		2,260,560
WF-RBS Commercial Mortgage Trust, Series 2012-C9, Class XA, 2.28%, 11/15/45 (a)(b)			17,039		2,439,891
					4,700,451
Total Non-Agency Mortgage-Backed Securities — 11.6%					76,462,957

Other Interests (l)	Beneficial Interest (000)			Value
Auto Components — 0.0%
Lear Corp. Escrow		USD	1,000	$	25,000
Diversified Financial Services — 0.1%
J.G. Wentworth LLC Preferred Equity Interests (d)			1		887,943
Household Durables — 0.0%
Berkline Benchcraft Equity LLC (c)(d)			3		—
Total Other Interests — 0.1%					912,943

Preferred Securities			Shares

Preferred Stocks
Auto Components — 0.2%
Dana Holding Corp., 4.00% (a)(f)			9,210		1,306,669

Trust Preferreds
Diversified Financial Services — 0.5%
GMAC Capital Trust I, Series 2, 8.13%, 2/15/40 (b)			121,020		3,229,511
Total Preferred Securities — 0.7%					4,536,180

Taxable Municipal Bonds			Par (000)
State of California, GO:
5.65%, 4/01/39 (b)		USD	455		456,920
Various Purpose 3, Mandatory Put Bonds, 5.10%, 8/01/14			1,350		1,396,116
Total Taxable Municipal Bonds — 0.3%					1,853,036

US Government Sponsored Agency Securities
Collateralized Mortgage Obligations — 0.5%
Freddie Mac Mortgage-Backed Securities, Series 3986, Class M, 4.50%, 9/15/41			2,999		3,324,427
Interest Only Collateralized Mortgage Obligations — 1.6%
Fannie Mae Mortgage-Backed Securities:
Series 2010-126, Class UI, 5.50%, 10/25/40			10,823		1,591,205
Series 2012-M9, Class X1, 4.08%, 12/25/17 (b)			21,101		3,414,663
Freddie Mac Mortgage-Backed Securities (b):
Series K021, Class X1, 1.51%, 6/25/22			11,126		1,238,611
Series K707, Class X1, 1.56%, 12/25/18			43,228		3,370,807
Series K710, Class X1, 1.78%, 5/25/19			13,412		1,264,027
					10,879,313
Mortgage-Backed Securities — 5.7%
Fannie Mae Mortgage-Backed Securities (e):
5.00%, 7/01/20 – 8/01/23			10,130		10,979,879
3.50%, 8/01/26			10,844		11,661,866
Freddie Mac Mortgage-Backed Securities, 4.50%, 4/01/25 (e)			13,595		14,786,864
					37,428,609
Total US Government Sponsored Agency Securities — 7.8%					51,632,349
Total Long-Term Investments (Cost — $987,782,783) — 152.0%					1,004,595,263

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Consolidated Schedule of Investments (continued)	BlackRock Limited Duration Income Trust (BLW) (Percentages shown are based on Net Assets)

Short-Term Securities	Shares		Value
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.10% (m)(n)		2,366,919	$	2,366,919
Total Short-Term Securities (Cost — $2,366,919) — 0.3%				2,366,919

Options Purchased	Value
(Cost — $44,978) — 0.0%		—
Total Investments (Cost — $990,194,680) — 152.3%	$	1,006,962,182
Liabilities in Excess of Other Assets — (52.3)%		(345,824,583	)
Net Assets — 100.0%	$	661,137,599

Notes to Schedule of Investments

(a)				Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. 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)				Issuer filed for bankruptcy and/or is in default of principal and/or interest payments.
(e)				All or a portion of security has been pledged as collateral in connection with open reverse repurchase agreements.
(f)				Convertible security.
(g)				Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(h)				Represents a payment-in-kind security which may pay interest/dividends in additional par/shares.
(i)				When-issued security. Unsettled when-issued transactions were as follows:

Counterparty	Value		Unrealized Appreciation
Citigroup, Inc	$	2,242,560	$	15,558
Pershing LLC	$	1,491,240	$	19,724

Affiliate				Shares Held at August 31, 2012				Net Activity				Shares Held at February 28, 2013				Income				Realized Gain
BlackRock Liquidity Funds, TempFund, Institutional Class					2,323,267				43,652				2,366,919			$	4,226			$	115

(n)				Represents the current yield as of report date.
•				Reverse repurchase agreements outstanding as of February 28, 2013 were as follows:

Counterparty	Interest Rate	Trade Date	Maturity Date	Face Value			Face Value Including Accrued Interest
Credit Suisse Securties (USA) LLC	0.60%	8/22/12	Open	$	426,020		$	427,376
Credit Suisse Securties (USA) LLC	0.65%	8/24/12	Open		735,687			738,198
Credit Suisse Securties (USA) LLC	0.65%	8/29/12	Open		315,000			316,046
Credit Suisse Securties (USA) LLC	0.65%	8/30/12	Open		341,325			342,453
Barclays Capital, Inc.	0.60%	9/10/12	Open		419,012			420,206
Barclays Capital, Inc.	0.60%	9/12/12	Open		435,395			436,629
Credit Suisse Securties (USA) LLC	0.65%	9/13/12	Open		776,950			779,321
Barclays Capital, Inc.	0.60%	9/19/12	Open		3,882,238			3,892,785
Barclays Capital, Inc.	0.60%	9/19/12	Open		921,553	��		924,025
Credit Suisse Securties (USA) LLC	0.65%	9/19/12	Open		821,406			823,794
UBS Securities LLC	0.65%	9/26/12	Open		698,828			700,796
UBS Securities LLC	0.34%	9/28/12	Open		3,074,638			3,079,109
UBS Securities LLC	0.65%	10/04/12	Open		1,637,685			1,642,032
Barclays Capital, Inc.	0.65%	10/10/12	Open		1,128,000			1,130,872
UBS Securities LLC	0.65%	10/15/12	Open		513,300			514,560
BNP Paribas Securities Corp.	0.37%	10/17/12	Open		803,500			804,607
Barclays Capital, Inc.	0.60%	10/22/12	Open		997,688			999,849
Barclays Capital, Inc.	0.55%	10/26/12	Open		1,542,373			1,545,342
Barclays Capital, Inc.	0.65%	10/26/12	Open		1,608,900			1,612,560
Credit Suisse Securties (USA) LLC	0.65%	10/26/12	Open		1,147,006			1,149,616
UBS Securities LLC	(0.50%)	10/26/12	Open		885,588			884,038
UBS Securities LLC	0.10%	10/26/12	Open		1,922,460			1,923,133
UBS Securities LLC	0.60%	10/26/12	Open		2,222,700			2,227,368

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Consolidated Schedule of Investments (continued)	BlackRock Limited Duration Income Trust (BLW)

Reverse repurchase agreements outstanding as of February 28, 2013 were as follows (continued):

Counterparty	Interest Rate	Trade Date	Maturity Date	Face Value		Face Value Including Accrued Interest
UBS Securities LLC	0.65%	10/26/12	Open	$	2,533,800	$	2,539,564
Credit Suisse Securties (USA) LLC	0.70%	10/30/12	Open		1,168,738		1,171,487
Credit Suisse Securties (USA) LLC	0.65%	11/01/12	Open		4,156,238		4,165,243
Barclays Capital, Inc.	0.50%	11/06/12	Open		244,531		244,922
Barclays Capital, Inc.	0.60%	11/07/12	Open		921,444		923,195
Barclays Capital, Inc.	0.60%	11/16/12	Open		688,185		689,390
Credit Suisse Securties (USA) LLC	0.65%	11/19/12	Open		2,713,226		2,718,224
Credit Suisse Securties (USA) LLC	0.75%	11/19/12	Open		1,048,125		1,050,352
Credit Suisse Securties (USA) LLC	0.65%	11/19/12	12/31/22		204,500		204,873
UBS Securities LLC	0.65%	11/20/12	Open		527,590		528,552
Citigroup Global Markets, Inc.	(1.50%)	11/28/12	Open		635,050		632,616
Barclays Capital, Inc.	0.60%	12/05/12	Open		567,956		568,770
UBS Securities LLC	0.65%	12/06/12	Open		585,612		586,511
Credit Suisse Securities (USA) LLC	0.75%	12/10/12	Open		1,107,000		1,108,868
Barclays Capital, Inc.	0.35%	12/11/12	Open		3,672,816		3,675,637
Barclays Capital, Inc.	0.40%	12/11/12	Open		16,527,760		16,542,267
Barclays Capital, Inc.	0.60%	12/11/12	Open		9,235,815		9,247,976
Barclays Capital, Inc.	0.65%	12/11/12	Open		2,243,392		2,246,592
UBS Securities LLC	(0.25%)	12/13/12	Open		890,514		890,032
Barclays Capital, Inc.	0.60%	12/14/12	Open		221,530		221,815
Credit Suisse Securities (USA) LLC	0.37%	12/17/12	Open		44,388,958		44,422,262
UBS Securities LLC	0.70%	12/19/12	Open		2,314,600		2,317,795
Citigroup Global Markets, Inc.	(0.38%)	1/09/13	Open		528,592		528,312
Barclays Capital, Inc.	0.55%	1/15/13	Open		1,107,636		1,108,398
Barclays Capital, Inc.	0.65%	1/15/13	Open		594,529		595,012
Deutsche Bank Securities, Inc.	(2.75%)	1/15/13	Open		452,000		450,481
Deutsche Bank Securities, Inc.	(1.00%)	1/15/13	Open		581,000		580,290
Deutsche Bank Securities, Inc.	(0.63%)	1/15/13	Open		2,335,000		2,333,216
Deutsche Bank Securities, Inc.	(0.50%)	1/15/13	Open		851,000		850,480
Deutsche Bank Securities, Inc.	0.50%	1/15/13	Open		1,416,000		1,416,865
Deutsche Bank Securities, Inc.	0.55%	1/15/13	Open		13,413,000		13,422,016
Deutsche Bank Securities, Inc.	0.57%	1/15/13	Open		8,261,000		8,266,754
Deutsche Bank Securities, Inc.	0.58%	1/15/13	Open		5,435,000		5,438,853
Deutsche Bank Securities, Inc.	0.60%	1/15/13	Open		6,431,000		6,435,716
Deutsche Bank Securities, Inc.	0.65%	1/15/13	Open		3,825,000		3,828,039
Deutsche Bank Securities, Inc.	0.70%	1/15/13	Open		4,224,000		4,227,614
Deutsche Bank Securities, Inc.	0.57%	1/17/13	Open		1,400,729		1,401,682
Deutsche Bank Securities, Inc.	0.65%	1/17/13	Open		900,900		901,599
Deutsche Bank Securities, Inc.	0.70%	1/17/13	Open		1,677,645		1,679,015
Deutsche Bank Securities, Inc.	(0.10%)	1/18/13	Open		1,123,744		1,123,613
UBS Securities LLC	(0.50%)	1/23/13	Open		324,205		324,043
Deutsche Bank Securities, Inc.	0.58%	1/30/13	Open		2,229,565		2,230,643
Deutsche Bank Securities, Inc.	0.65%	1/30/13	Open		1,122,900		1,123,508
UBS Securities LLC	0.50%	1/30/13	Open		2,833,920		2,835,101
UBS Securities LLC	0.60%	1/30/13	Open		1,981,206		1,982,197
Deutsche Bank Securities, Inc.	0.55%	1/31/13	Open		1,685,000		1,685,747
UBS Securities LLC	0.65%	1/31/13	Open		547,200		547,487
Deutsche Bank Securities, Inc.	0.58%	1/31/13	Open		2,316,270		2,317,315
Deutsche Bank Securities, Inc.	0.58%	2/01/13	Open		3,268,860		3,270,334
Credit Suisse Securities (USA) LLC	0.70%	2/06/13	Open		1,151,700		1,152,215
Deutsche Bank Securities, Inc.	(0.75%)	2/06/13	Open		408,000		407,813
UBS Securities LLC	0.54%	2/06/13	Open		646,747		646,961
Deutsche Bank Securities, Inc.	0.55%	2/06/13	Open		473,417		473,569
Barclays Capital, Inc.	0.35%	2/07/13	Open		4,294,439		4,295,316
Barclays Capital, Inc.	0.60%	2/07/13	Open		13,883,962		13,888,819
Credit Suisse Securities (USA) LLC	0.60%	2/07/13	Open		407,469		407,611
Credit Suisse Securities (USA) LLC	0.65%	2/07/13	Open		4,201,990		4,203,583
UBS Securities LLC	0.00%	2/07/13	Open		576,600		576,600
UBS Securities LLC	0.00%	2/07/13	Open		442,225		442,225
UBS Securities LLC	0.25%	2/07/13	Open		1,048,688		1,048,840
UBS Securities LLC	0.34%	2/07/13	Open		3,334,275		3,334,936
UBS Securities LLC	0.35%	2/07/13	Open		3,594,088		3,594,821
UBS Securities LLC	0.45%	2/07/13	Open		866,250		866,477
UBS Securities LLC	0.55%	2/07/13	Open		8,414,156		8,416,854

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Consolidated Schedule of Investments (continued)	BlackRock Limited Duration Income Trust (BLW)

Reverse repurchase agreements outstanding as of February 28, 2013 were as follows (concluded):

Counterparty	Interest Rate	Trade Date	Maturity Date	Face Value		Face Value Including Accrued Interest
UBS Securities LLC	0.60%	2/07/13	Open	$	3,038,725	$	3,039,789
UBS Securities LLC	0.65%	2/07/13	Open		2,396,200		2,397,109
Barclays Capital, Inc.	0.55%	2/08/13	Open		1,938,969		1,939,591
Deutsche Bank Securities, Inc.	0.58%	2/08/13	Open		483,060		483,223
Deutsche Bank Securities, Inc.	0.58%	2/08/13	Open		1,170,163		1,170,502
Credit Suisse Securities (USA) LLC	0.35%	2/11/13	3/1/13		354,275		354,337
Barclays Capital, Inc.	0.30%	2/11/13	3/12/13		36,329,327		36,333,932
Barclays Capital, Inc.	0.60%	2/15/13	Open		606,506		606,648
UBS Securities LLC	0.60%	2/15/13	Open		1,329,437		1,329,747
UBS Securities LLC	0.65%	2/19/13	Open		166,058		166,088
Credit Suisse Securities (USA) LLC	0.35%	2/20/13	Open		520,569		520,614
Deutsche Bank Securities, Inc.	0.55%	2/20/13	Open		3,318,929		3,319,386
UBS Securities LLC	0.55%	2/20/13	Open		1,204,613		1,204,778
UBS Securities LLC	0.57%	2/20/13	Open		773,500		773,610
UBS Securities LLC	0.65%	2/20/13	Open		1,163,323		1,163,512
Credit Suisse Securities (USA) LLC	0.60%	2/20/13	Open		650,177		650,264
Deutsche Bank Securities, Inc.	0.58%	2/20/13	Open		2,512,000		2,512,325
Credit Suisse Securities (USA) LLC	0.25%	2/22/13	Open		779,512		779,550
Deutsche Bank Securities, Inc.	0.55%	2/22/13	Open		6,335,577		6,336,256
UBS Securities LLC	0.55%	2/25/13	Open		978,510		978,555
UBS Securities LLC	0.65%	2/27/13	Open		1,855,622		1,855,656
Credit Suisse Securities (USA) LLC	0.25%	2/28/13	Open		690,357		690,362
Deutsche Bank Securities, Inc.	0.55%	2/28/13	Open		4,527,554		4,527,625
Total				$	311,588,502	$	311,806,087

• Financial futures contracts as of February 28, 2013 were as follows:

Contracts Purchased	Issue	Exchange	Expiration	Notional Value		Unrealized Appreciation
8	90-Day Euro-Dollar	Chicago Mercantile	March 2013	USD	1,994,100		$	31,378
6	90-Day Euro-Dollar	Chicago Mercantile	June 2013	USD	1,495,350			27,434
6	90-Day Euro-Dollar	Chicago Mercantile	September 2013	USD	1,495,050			30,809
6	90-Day Euro-Dollar	Chicago Mercantile	December 2013	USD	1,494,675			34,108
6	90-Day Euro-Dollar	Chicago Mercantile	March 2014	USD	1,494,300			37,033
Total							$	160,762

• Foreign currency exchange contracts as of February 28, 2013 were as follows:

Currency Purchased		Currency Sold		Counterparty	Settlement Date	Unrealized Appreciation (Depreciation)
CAD	1,690,000	USD	1,644,305	BNP Paribas SA	4/17/13	$	(7,186	)
GBP	688,000	USD	1,083,683	Citigroup, Inc.	4/17/13		(40,199	)
USD	27,106	CAD	27,000	Citigroup, Inc.	4/17/13		951
USD	3,290,121	CAD	3,246,000	Deutsche Bank AG	4/17/13		145,690
USD	1,964,811	GBP	1,270,000	Barclays Plc	4/17/13		38,612
USD	789,025	GBP	517,000	BNP Paribas SA	4/17/13		4,896
USD	1,056,722	GBP	655,000	BNP Paribas SA	4/17/13		63,289
USD	3,248,701	GBP	2,142,000	Citigroup, Inc.	4/17/13		(53	)
USD	1,308,571	GBP	845,000	Citigroup, Inc.	4/17/13		26,967
USD	37,116,486	GBP	23,170,000	Goldman Sachs Group, Inc.	4/17/13		1,974,741
USD	160,147	GBP	101,000	Royal Bank of Scotland Group Plc	4/17/13		6,961
USD	1,255,848	EUR	940,000	BNP Paribas SA	4/23/13		28,189
USD	132,496	EUR	101,000	Citigroup, Inc.	4/23/13		588
USD	212,334	EUR	157,000	Citigroup, Inc.	4/23/13		7,289
USD	25,093,640	EUR	18,832,000	Citigroup, Inc.	4/23/13		498,681
USD	133,466	EUR	100,178	Deutsche Bank AG	4/23/13		2,632
USD	346,441	EUR	260,000	Goldman Sachs Group, Inc.	4/23/13		6,876
USD	134,959	EUR	100,000	Royal Bank of Scotland Group Plc	4/23/13		4,357
USD	285,556	EUR	213,000	Royal Bank of Scotland Group Plc	4/23/13		7,373
USD	83,120	EUR	63,000	UBS AG	4/23/13		841
USD	90,189	EUR	67,000	UBS AG	4/23/13		2,686
USD	135,284	EUR	101,000	UBS AG	4/23/13		3,376
Total						$	2,777,557

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Consolidated Schedule of Investments (continued)	BlackRock Limited Duration Income Trust (BLW)

• Over-the-counter options purchased as of February 28, 2013 were as follows:

Description

Counterparty

Put/
Call

Strike
Price

Expiration
Date

Contracts

Market
Value

Marsico Parent Superholdco LLC

Goldman Sachs Group, Inc.

Call

USD

942.86

12/14/19

—

• Credit default swaps—buy protection outstanding as of February 28, 2013 were as follows:

Issuer/Index	Pay Fixed Rate	Counterparty	Expiration Date	Notional Amount (000)		Unrealized Appreciation (Depreciation)
Dow Jones CDX North America Investment Grade Index Series 16, Version 1	1.00%	Morgan Stanley	6/20/16	USD	7,700	$	(83,509	)
Australia & New Zealand Banking Group Ltd.	1.00%	Deutsche Bank AG	9/20/17	USD	1		(17	)
Westpac Banking Corp.	1.00%	Deutsche Bank AG	9/20/17	USD	1		(17	)
Total						$	(83,543	)

• Credit default swaps—sold protection outstanding as of February 28, 2013 were as follows:

Issuer/Index

Receive
Fixed
Rate

Counterparty

Expiration
Date

Credit
Rating¹

Notional
Amount
(000)²

Unrealized
Appreciation
(Depreciation)

Caesars Entertainment Operating Co., Inc.

5.00%

Citigroup, Inc.

12/20/15

CCC

USD

357

46,667

Caesars Entertainment Operating Co., Inc.

5.00%

Citigroup, Inc.

12/20/15

CCC

USD

172

16,862

Caesars Entertainment Operating Co., Inc.

5.00%

JPMorgan Chase & Co.

12/20/15

CCC

USD

145

17,635

Caesars Entertainment Operating Co., Inc.

5.00%

JPMorgan Chase & Co.

12/20/15

CCC

USD

580

65,188

Caesars Entertainment Operating Co., Inc.

5.00%

JPMorgan Chase & Co.

12/20/15

CCC

USD

626

105,388

Caesars Entertainment Operating Co., Inc.

5.00%

UBS AG

12/20/15

CCC

USD

840

78,752

Caesars Entertainment Operating Co., Inc.

5.00%

Barclays Plc

3/20/16

CCC

USD

3,445

Caesars Entertainment Operating Co., Inc.

5.00%

Barclays Plc

3/20/16

CCC

USD

1,263

Caesars Entertainment Operating Co., Inc.

5.00%

Citigroup, Inc.

3/20/16

CCC

USD

1,761

Caesars Entertainment Operating Co., Inc.

5.00%

Goldman Sachs Group, Inc.

3/20/16

CCC

USD

247

19,234

Caesars Entertainment Operating Co., Inc.

5.00%

Goldman Sachs Group, Inc.

3/20/16

CCC

USD

739

47,639

Caesars Entertainment Operating Co., Inc.

5.00%

Goldman Sachs Group, Inc.

3/20/16

CCC

USD

165

8,440

Caesars Entertainment Operating Co., Inc.

5.00%

Goldman Sachs Group, Inc.

3/20/16

CCC

USD

634

622

Caesars Entertainment Operating Co., Inc.

5.00%

Goldman Sachs Group, Inc.

3/20/16

CCC

USD

247

19,234

Caesars Entertainment Operating Co., Inc.

5.00%

JPMorgan Chase & Co.

3/20/16

CCC

USD

3,005

Caesars Entertainment Operating Co., Inc.

5.00%

Goldman Sachs Group, Inc.

6/20/16

CCC

USD

499

29,460

Caesars Entertainment Operating Co., Inc.

5.00%

Goldman Sachs Group, Inc.

6/20/16

CCC

USD

970

48,181

Dow Jones CDX North America Investment
Grade Index Series 16, Version 1

1.00%

Morgan Stanley

6/20/16

USD

7,700

175,559

Caesars Entertainment Operating Co., Inc.

5.00%

Barclays Plc

3/20/17

CCC

USD

541

Caesars Entertainment Operating Co., Inc.

5.00%

Goldman Sachs Group, Inc.

3/20/17

CCC

USD

147

1,829

Caesars Entertainment Operating Co., Inc.

5.00%

Goldman Sachs Group, Inc.

3/20/17

CCC

USD

453

(3,447

)

Total

687,258

Using S&P’s rating of the issuer.

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

•

Interest rate swaps outstanding as of February 28, 2013 were as follows:

Fixed
Rate

Floating
Rate

Counterparty/Exchange

Expiration
Date

Notional
Amount
(000)

Unrealized
Depreciation

1.10%³

3-month LIBOR

Deutsche Bank AG

5/14/17

USD

14,500

(219,310

)

Fund pays the fixed rate and receives the floating rate.

•

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

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Consolidated Schedule of Investments (continued)	BlackRock Limited Duration Income Trust (BLW)

				The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
				Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. 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 is not necessarily an indication of the risks associated with investing in those securities. For information about the Fund’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 Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy as of February 28, 2013:

	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments:
Asset-Backed Securities		—	$	31,649,123	$	27,924,393	$	59,573,516
Common Stocks		—		2,474,286		3,774,315		6,248,601
Corporate Bonds		—		464,854,049		7,850,062		472,704,111
Floating Rate Loan Interests		—		288,929,192		41,742,378		330,671,570
Non-Agency Mortgage-Backed Securities		—		75,124,644		1,338,313		76,462,957
Other Interests		—		—		912,943		912,943
Preferred Securities	$	3,229,511		1,306,669		—		4,536,180
Taxable Municipal Bonds		—		1,853,036		—		1,853,036
US Government Sponsored Agency Securities		—		51,632,349		—		51,632,349
Short-Term Securities		2,366,919		—		—		2,366,919
Total	$	5,596,430	$	917,823,348	$	83,542,404	$	1,006,962,182

	Level 1		Level 2			Level 3		Total
Derivative Financial Instruments¹
Assets:
Interest rate contracts	$	160,762		—			—	$	160,762
Foreign currency exchange contracts		—	$	2,824,995			—		2,824,995
Credit contracts		—		690,705			—		690,705
Liabilities:
Interest rate contracts		—		(219,310	)		—		(219,310	)
Foreign currency exchange contracts		—		(47,438	)		—		(47,438	)
Credit contracts		—		(86,990	)		—		(86,990	)
Total	$	160,762	$	3,161,962			—	$	3,222,724

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

Certain of the Fund’s assets and liabilities are held at carrying amount or face value, which approximates fair value for financial statement purposes. As of February 28, 2013, such assets and liabilities are categorized within the disclosure hierarchy as follows:

	Level 1		Level 2			Level 3		Total
Assets:
Cash pledged as collateral for financial futures contracts	$	15,500		—			—	$	15,500
Liabilities:
Bank overdraft		—	$	(940,679	)		—		(940,679	)
Bank overdraft on foreign currency at value		—		(1,618,646	)		—		(1,618,646	)
Cash received as collateral for swaps		—		(1,200,000	)		—		(1,200,000	)
Reverse repurchase agreements		—		(311,588,502	)		—		(311,588,502	)
Total	$	15,500	$	(315,347,827	)		—	$	(315,332,327	)

There were no transfers between Level 1 and Level 2 during the six months ended February 28, 2013.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Consolidated Schedule of Investments (concluded)	BlackRock Limited Duration Income Trust (BLW)

A reconciliation of Level 3 investments and derivative financial instruments is presented when the Fund had a significant amount of Level 3 investments and derivatives at the beginning and/or end of the period in relation to net assets. The following table is a reconciliation of Level 3 investments for which significant unobservable inputs were used in determining fair value:

	Asset-Backed Securities			Common Stocks		Corporate Bonds			Floating Rate Loan Interests			Non-Agency Mortgage Backed			Other Interests			Total
Assets:
Opening Balance, as of August 31, 2012	$	9,845,241		$	2,007,283	$	1,727		$	38,594,979			—		$	1,608,923		$	52,058,153
Transfers into Level 3¹		—			22,945		9,145,125			6,470,114			—			—			15,638,184
Transfers out of Level 3²		—			—		—			(7,121,367	)		—			—			(7,121,367	)
Accrued discounts/premiums		(470,911	)		—		(17,982	)		65,449			—			18,810			(404,634	)
Net realized gain (loss)		65,279			—		11,578			(108,690	)		—	��		—			(31,833	)
Net change in unrealized appreciation/depreciation³		1,072,279			1,474,842		(2,203,610	)		962,859		$	16,283			136,210			1,458,863
Purchases		18,975,721			269,245		1,175,000			11,423,588			1,322,030			10,000			33,175,584
Sales		(1,563,216	)		—		(261,776	)		(8,544,554	)		—			(861,000	)		(11,230,546	)
Closing Balance, as of February 28, 2013	$	27,924,393		$	3,774,315	$	7,850,062		$	41,742,378		$	1,338,313		$	912,943		$	83,542,404

As of August 31, 2012, the Fund used observable inputs in determining the value of certain investments. As of February 28, 2013, the Fund used significant unobservable inputs in determining the value of the same investments. As a result, investments with a beginning of period value of $7,121,367 transferred from Level 2 to Level 3 in the disclosure hierarchy.

As of August 31, 2012, the Fund used significant unobservable inputs in determining the value of certain investments. As of February 28, 2013, the Fund used observable inputs in determining the value of the same investments. As a result, investments with a beginning of period value of $15,638,184 transferred from Level 3 to Level 2 in the disclosure hierarchy.

Value

Valuation Techniques

Unobservable Inputs⁴

Range of
Unobservable Inputs
Utilized

Assets:

Common Stocks

2,594,787

Market Comparable Companies

EBITDA Multiple

6.56x

Corporate Bonds

1,727

Estimated Final Distribution

Recovery Rate

0.05%

1,175,000

Cost⁵

N/A

—

Floating Rate Loan Interests

3,293,096

Discounted Cash Flow

Yield

9.50%

3,750,000

Cost⁵

N/A

—

Total

10,814,610

⁴

A change to the unobservable input may result in significant change to the value of the investment as follows:

Unobservable Input	Impact to Value if Input Increases	Impact to Value if Input Decreases
EBITDA Multiple	Increase	Decrease
Recovery Rate	Increase	Decrease
Yield	Decrease	Increase

⁵

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Statements of Assets and Liabilities

February 28, 2013 (Unaudited)	BlackRock Defined Opportunity Credit Trust (BHL)			BlackRock Floating Rate Income Strategies Fund, Inc. (FRA)¹			BlackRock Limited Duration Income Trust (BLW)¹
Assets
Investments at value — unaffiliated²	$	195,768,037		$	857,521,624		$	1,004,595,263
Investments at value — affiliated³		4,275,893			14,430,590			2,366,919
Cash		—			1,844,191			—
Cash pledged as collateral for financial futures contracts		—			—			15,500
Cash pledged as collateral for swaps		—			620,000			—
Investments sold receivable		5,597,631			24,518,124			31,944,064
Principal paydown receivable		1,367,275			2,437,814			3,009,233
Interest receivable		984,724			4,463,851			9,455,794
Unrealized appreciation on foreign currency exchange contracts		156,557			616,559			2,824,995
Foreign currency at value⁴		141,316			12,535			—
Unrealized appreciation on swaps		66,901			372,158			690,705
Swaps receivable		8,062			47,187			214,966
Unrealized appreciation on unfunded loan commitments		180			777			—
Variation margin receivable		—			—			909
Swap premiums paid		—			—			29
Prepaid expenses		3,510			7,070			34,234
Income tax refund receivable		—			18,024			—
Other assets		—			—			799,178
Total assets		208,370,086			906,910,504			1,055,951,789

Liabilities
Bank overdraft		313,625			—			940,679
Reverse repurchase agreements		—			—			311,588,502
Loan payable		48,000,000			208,000,000			—
Investments purchased payable		28,933,304			124,472,087			75,753,058
Swap premiums received		245,055			1,351,778			2,146,236
Bank overdraft on foreign currency⁴		—			—			1,618,646
Cash received as collateral for swaps		—			—			1,200,000
Investment advisory fees payable		136,848			451,308			405,372
Interest expense payable		35,371			137,005			213,489
Officer’s and Directors’ fees payable		742			10,500			240,363
Unrealized depreciation on swaps		682			2,961			306,300
Swaps payable		—			—			62,649
Unrealized depreciation on foreign currency exchange contracts		—			14,902			47,438
Deferred capital gains tax payable		—			18,096			—
Income dividends payable		—			—			11
Reorganization costs payable		—			298,422			—
Other accrued expenses payable		153,558			495,895			291,447
Total liabilities		77,819,185			335,252,954			394,814,190
Net Assets	$	130,550,901		$	571,657,550		$	661,137,599

Net Assets Consist of
Paid-in capital^5,6,7	$	128,180,168		$	633,990,230		$	703,095,036
Undistributed net investment income		1,564,291			825,502			4,181,077
Accumulated net realized loss		(2,931,966	)		(68,255,838	)		(66,262,971	)
Net unrealized appreciation/depreciation		3,738,408			5,097,656			20,124,457
Net Assets	$	130,550,901		$	571,657,550		$	661,137,599
Net asset value per share	$	14.45		$	15.37		$	17.87
¹ Consolidated Statement of Assets and Liabilities
² Investments at cost — affiliated	$	4,275,893		$	14,430,590		$	2,366,919
³ Investments at cost — unaffiliated	$	192,279,003		$	853,531,682		$	987,827,761
⁴ Foreign currency at cost	$	143,436		$	12,749		$	(1,623,727	)
⁵ Par value per share	$	0.001		$	0.10		$	0.001
⁶ Shares outstanding		9,034,519			37,196,872			36,988,668
⁷ Shares authorized		unlimited			200 million			unlimited

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Statements of Operations

Six Months Ended February 28, 2013 (Unaudited)	BlackRock Defined Opportunity Credit Trust (BHL)			BlackRock Floating Rate Income Strategies Fund, Inc. (FRA)¹			BlackRock Limited Duration Income Trust (BLW)¹
Investment Income
Interest	$	5,244,389		$	21,028,649		$	28,195,437
Dividends — unaffiliated		—			—			6,000
Dividends — affiliated		492			1,622			4,226
Total income		5,244,881			21,030,271			28,205,663

Expenses
Investment advisory		872,674			2,582,894			2,605,732
Custodian		38,840			119,369			97,178
Professional		36,671			68,922			62,276
Borrowing costs²		32,562			122,569			—
Accounting services		18,878			50,910			59,563
Transfer agent		12,145			39,725			39,936
Reorganization		—			67,096			—
Officer and Directors		5,687			17,042			39,668
Registration		4,677			9,146			6,268
Printing		2,617			30,058			13,473
Miscellaneous		12,611			51,058			27,008
Total expenses excluding interest expense and income tax		1,037,362			3,158,789			2,951,102
Interest expense		219,735			887,229			713,564
Income tax		—			60,285			—
Total expenses		1,257,097			4,106,303			3,664,666
Less fees waived by Manager		(227	)		(730	)		(2,252	)
Total expenses after fees waived		1,256,870			4,105,573			3,662,414
Net investment income		3,988,011			16,924,698			24,543,249

Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:
Investments		1,759,796			7,130,780			11,759,735
Investments — affiliated		—			—			115
Financial futures contracts		—			—			(468,285	)
Foreign currency transactions		(348,994	)		(953,853	)		(2,466,231	)
Options written		—			—			75,600
Swaps		(117,714	)		(183,697	)		(898,791	)
		1,293,088			5,993,230			8,002,143
Net change in unrealized appreciation/depreciation on:
Investments		1,223,657			4,271,556	³		8,658,250
Financial futures contracts		—			—			240,726
Foreign currency translations		314,797			947,370			3,121,043
Options written		—			—			(3,222	)
Swaps		132,539			515,904			864,664
Unfunded loan commitments		180			777			—
		1,671,173			5,735,607			12,881,461
Total realized and unrealized gain		2,964,261			11,728,837			20,883,604
Net Increase in Net Assets Resulting from Operations	$	6,952,272		$	28,653,535		$	45,426,853

Consolidated Statement of Operations.

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

Net of capital gain tax of $18,096.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Statements of Changes in Net Assets

	BlackRock Defined Opportunity Credit Trust (BHL)
Increase (Decrease) in Net Assets:	Six Months Ended February 28, 2013 (Unaudited)			Year Ended August 31, 2012
Operations
Net investment income	$	3,988,011		$	7,715,971
Net realized gain		1,293,088			341,628
Net change in unrealized appreciation/depreciation		1,671,173			7,717,270
Net increase in net assets resulting from operations		6,952,272			15,774,869

Dividends to Shareholders From
Net investment income		(3,963,060	)		(7,217,171	)¹

Capital Share Transactions
Reinvestment of dividends		107,096			—

Net Assets
Total increase in net assets		3,096,308			8,557,698
Beginning of period		127,454,593			118,896,895
End of period	$	130,550,901		$	127,454,593
Undistributed net investment income	$	1,564,291		$	1,539,340

Dividends are determined in accordance with federal income tax regulations.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Consolidated Statements of Changes in Net Assets

	BlackRock Floating Rate Income Strategies Fund, Inc. (FRA)						BlackRock Limited Duration Income Trust (BLW)
Increase (Decrease) in Net Assets:	Six Months Ended February 28, 2013 (Unaudited)			Year Ended August 31, 2012			Six Months Ended February 28, 2013 (Unaudited)			Year Ended August 31, 2012
Operations
Net investment income	$	16,924,698		$	17,932,502		$	24,543,249		$	48,539,048
Net realized gain (loss)		5,993,230			(4,997,420	)		8,002,143			(1,706,968	)
Net change in unrealized appreciation/depreciation		5,735,607			21,658,016			12,881,461			34,080,859
Net increase in net assets resulting from operations		28,653,535			34,593,098			45,426,853			80,912,939

Dividends to Shareholders From
Net investment income		(17,732,665	)		(17,066,400	)¹		(27,283,003	)		(48,930,681	)¹

Capital Share Transactions
Proceeds issued resulting from reorganization		283,047,261			—			—			—
Reinvestment of dividends		699,419			258,718			602,467			591,363
Net increase in net assets derived from capital share transactions		283,746,680			258,718			602,467			591,363

Net Assets
Total increase in net assets		294,667,550			17,785,416			18,746,317			32,573,621
Beginning of period		276,990,000			259,204,584			642,391,282			609,817,661
End of period	$	571,657,550		$	276,990,000		$	661,137,599		$	642,391,282
Undistributed net investment income	$	825,502		$	1,633,469		$	4,181,077		$	6,920,831

Dividends are determined in accordance with federal income tax regulations.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Statements of Cash Flows

Six Months Ended February 28, 2013	BlackRock Defined Opportunity Credit Trust (BHL)			BlackRock Floating Rate Income Strategies Fund, Inc. (FRA)¹			BlackRock Limited Duration Income Trust (BLW)¹
Cash Provided by Operating Activities
Net increase in net assets resulting from operations	$	6,952,272		$	28,624,527		$	45,426,853
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities:
Decrease in interest receivable		169,325			176,165	²		280,590
Increase in swap receivable		(8,062	)		(47,187	)		(195,014	)
Increase in income tax refund receivable		—			(18,024	)		—
Increase in cash pledged as collateral for swaps		—			(620,000	)		—
Decrease in variation margin receivable		—			—			4,066
Decrease in cash pledged as collateral for financial futures contracts		—			—			430,000
Decrease in cash received as collateral for reverse repurchase agreements		—			—			(1,137,000	)
Increase in cash received as collateral for swaps		—						1,200,000
Decrease in other assets		—			—			2,276
Increase in prepaid expenses		(2,486	)		(1,791	)²		(8,369	)
Decrease in investment advisory fees payable		(13,175	)		(97,188	)²		(16,278	)
Increase (decrease) in interest expense payable		(5,097	)		47,279	²		(80,657	)
Increase (decrease) in other accrued expenses payable		(42,015	)		16,191	²		(62,560	)
Decrease in swaps payable		(17,243	)		(38,143	)		(97,586	)
Decrease in reorganization costs payable		—			(416,536	)²		—
Increase in deferred capital gains tax payable		—			18,096			—
Increase (decrease) in Officer’s and Directors’ fees payable		(301	)		(7,876	)²		96,162
Net periodic and termination payments of swaps		222,997			1,379,683			1,853,123
Net realized and unrealized gain on investments		(3,257,574	)		(12,325,095	)		(21,957,598	)
Amortization of premium and accretion of discount on investments		(292,813	)		(1,018,667	)		489,463
Proceeds from sales of long-term investments		80,894,890			343,971,292			335,657,178
Purchases of long-term investments		(71,908,318	)		(310,963,706	)		(353,195,605	)
Net proceeds from sales (purchases) of short-term securities		(1,949,452	)		(4,070,471	)		(43,652	)
Cash provided by operating activities		10,742,948			44,608,549			8,645,392

Cash Used for Financing Activities
Cash receipts from borrowings		56,000,000			223,000,000			—
Cash payments on borrowings		(63,000,000	)		(249,000,000	)		—
Net borrowings of reverse repurchase agreements		—			—			15,112,867
Cash dividends paid to shareholders		(3,925,300	)		(17,033,246	)		(26,680,525	)
Increase in bank overdraft		313,625			—			2,559,325
Cash used for financing activities		(10,611,675	)		(43,033,246	)		(9,008,333	)

Cash Impact from Foreign Exchange Fluctuations
Cash impact from foreign exchange fluctuations		(2,249	)		(3,352	)		(1,658	)

Cash and Foreign Currency
Net increase (decrease) in cash and foreign currency		129,024			1,571,951			(364,599	)
Cash and foreign currency at beginning of period		12,292			284,775			364,599
Cash and foreign currency at end of period	$	141,316		$	1,856,726			—

Cash Flow Information
Cash paid during the period for interest	$	224,832		$	839,950		$	794,221

Non-cash Financing Activities
Fair value of investments acquired through reorganization		—		$	426,639,591			—
Capital shares issued in reorganization		—		$	283,047,261			—
Capital shares issued in reinvestment of dividends	$	107,096		$	699,419		$	602,467

Consolidated Statement of Cash Flows.

Includes assets and liabilities acquired in reorganization.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Financial Highlights	BlackRock Defined Opportunity Credit Trust (BHL)

	Six Months Ended February 28, 2013 (Unaudited)			Year Ended August 31,												Period January 31, 2008¹ to August 31, 2008
	Six Months Ended February 28, 2013 (Unaudited)			2012			2011			2010			2009			Period January 31, 2008¹ to August 31, 2008
Per Share Operating Performance
Net asset value, beginning of period	$	14.12		$	13.17		$	13.55		$	12.53		$	14.31		$	14.33	²
Net investment income³		0.44			0.85			0.86			0.85			0.87			0.47
Net realized and unrealized gain (loss)		0.33			0.90			(0.45	)		0.87			(1.55	)		0.21
Net increase (decrease) from investment operations		0.77			1.75			0.41			1.72			(0.68	)		0.68
Dividends and distributions from:
Net Investment income		(0.44	)		(0.80	)⁴		(0.79	)⁴		(0.70	)⁴		(1.09	)⁴		(0.62	)⁴
Tax return of capital		—			—			—			—			(0.01	)⁴		(0.06	)⁴
Total dividends and distributions		(0.44	)		(0.80	)		(0.79	)		(0.70	)		(1.10	)		(0.68	)
Capital changes with respect to issuance of shares		—			—			—			—			—			(0.02	)
Net asset value, end of period	$	14.45		$	14.12		$	13.17		$	13.55		$	12.53		$	14.31
Market price, end of period	$	14.75		$	13.94		$	12.65		$	12.86		$	11.03		$	12.66

Total Investment Return⁵
Based on net asset value		5.55%	⁶		13.94%			2.93%			14.39%			(2.16)%			4.79%	⁶
Based on market price		9.13%	⁶		17.12%			4.17%			23.33%			(2.65)%		��	(11.44)%	⁶

Ratios to Average Net Assets
Total expenses		1.96%	⁷		1.91%			2.02%			1.91%			2.39%			1.78%	⁷
Total expenses after fees waived and paid indirectly		1.96%	⁷		1.91%			2.02%			1.90%			2.39%			1.78%	⁷
Total expenses after fees waived and paid indirectly and excluding interest expense		1.62%	^7,8		1.61%	⁸		1.71%			1.65%			1.94%			1.48%	⁷
Net investment income		6.23%	⁷		6.24%			6.10%			6.40%			8.11%			5.52%	⁷

Supplemental Data
Net assets, end of period (000)	$	130,551		$	127,455		$	118,897		$	122,062		$	112,862		$	127,695
Borrowings outstanding, end of period (000)	$	48,000		$	55,000		$	43,000		$	24,000		$	27,000		$	38,500
Average borrowings outstanding, during the period (000)	$	46,967		$	39,077		$	36,369		$	24,633		$	31,141		$	13,788
Portfolio turnover		46%			53%			91%			102%			41%			18%
Asset coverage, end of period per $1,000	$	3,720		$	3,317		$	3,765		$	6,086		$	5,180		$	4,317

Commencement of operations.

Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from initial offering price of $15.00 per share.

Based on average shares outstanding.

⁴

Dividends and distributions are determined in accordance with federal income tax regulations.

⁵

Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

⁶

Aggregate total investment return.

⁷

Annualized.

⁸

For the six months ended February 28, 2013 and the year ended August 31, 2012, the total expense ratio after fees waived and paid indirectly and excluding interest expense and borrowing costs was 1.57% and 1.52%, respectively.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Financial Highlights	BlackRock Floating Rate Income Strategies Fund, Inc. (FRA)

	Six Months Ended February 28, 2013¹ (Unaudited)			Year Ended August 31,
	Six Months Ended February 28, 2013¹ (Unaudited)			2012¹			2011			2010			2009			2008
Per Share Operating Performance
Net asset value, beginning of period	$	14.98		$	14.04		$	14.36		$	12.93		$	16.12		$	18.25
Net investment income²		0.50			0.97			0.96			0.91			1.14			1.45
Net realized and unrealized gain (loss)		0.46			0.90			(0.36	)		1.48			(3.04	)		(2.03	)
Net increase (decrease) from investment operations		0.96			1.87			0.60			2.39			(1.90	)		(0.58	)
Dividends and distributions from:
Net investment income		(0.57	)		(0.93	)³		(0.86	)³		(0.94	)³		(1.29	)³		(1.55	)³
Tax return of capital		—			—			(0.06	)³		(0.02	)³		—			—
Total dividends and distributions		(0.57	)		(0.93	)		(0.92	)		(0.96	)		(1.29	)		(1.55	)
Net asset value, end of period	$	15.37		$	14.98		$	14.04		$	14.36		$	12.93		$	16.12
Market price, end of period	$	16.47		$	15.20		$	13.33		$	14.61		$	12.26		$	14.49

Total Investment Return⁴
Based on net asset value		6.53%	⁵		13.91%			4.04%			18.91%			(8.88)%			(2.56)%
Based on market price		12.50%	⁵		21.74%			(2.91)%			27.59%			(3.88)%			(4.28)%

Ratios to Average Net Assets
Total expenses		1.63%	^6,7		1.67%	⁸		1.60%			1.45%			1.96%			2.61%
Total expenses after fees waived and paid indirectly		1.63%	^6,7		1.67%	⁸		1.60%			1.45%			1.96%			2.60%
Total expenses after fees waived and paid indirectly and excluding interest expense and income tax		1.25%	^6,7,9		1.35%	^8,10		1.30%			1.22%			1.31%			1.18%
Net investment income		6.72%	⁶		6.67%			6.44%			6.43%			10.18%			8.49%

Supplemental Data
Net assets, end of period (000)	$	571,629		$	276,900		$	259,205		$	264,379		$	237,160		$	295,005
Borrowings outstanding, end of period (000)	$	208,000		$	117,000		$	93,000		$	53,000		$	38,000		$	101,500
Average borrowings outstanding, during the period (000)	$	189,558		$	88,197		$	79,195		$	48,258		$	50,591		$	102,272
Portfolio turnover		51%			53%			91%			96%			58%			49%
Asset coverage, end of period per $1,000	$	3,748		$	3,367		$	3,787		$	5,988		$	7,241		$	3,906

Consolidated Financial Highlights.

Based on average shares outstanding.

Dividends and distributions are determined in accordance with federal income tax regulations.

⁴

⁵

Aggregate total investment return.

⁶

Annualized.

⁷

Includes reorganization costs associated with the Fund’s merger. Without these costs, total expenses, total expenses after fees waived and paid indirectly, and total expenses after fees waived and paid indirectly and excluding interest expense would have been 1.60%, 1.60%, and 1.23%, respectively.

⁸

⁹

For the six months ended February 28, 2013, the total expense ratio after fees waived and paid indirectly and excluding interest expense, borrowing costs and income tax was 1.20%.

¹⁰

For the year ended August 31, 2012, the total expense ratio after fees waived and paid indirectly and excluding interest expense and borrowing costs was 1.26%.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Financial Highlights	BlackRock Limited Duration Income Trust (BLW)

	Six Months Ended February 28, 2013¹ (Unaudited)			Year Ended August 31,												Period November 1, 2007 to August 31, 2008			Year Ended October 31, 2007
	Six Months Ended February 28, 2013¹ (Unaudited)			2012¹			2011			2010			2009			Period November 1, 2007 to August 31, 2008			Year Ended October 31, 2007
Per Share Operating Performance
Net asset value, beginning of period	$	17.38		$	16.52		$	16.79		$	14.95		$	16.71		$	18.52		$	19.01
Net investment income		0.66	²		1.31	²		1.34	²		1.12	²		1.01	²		1.14	²		1.50
Net realized and unrealized gain (loss)		0.57			0.88			(0.37	)		1.62			(1.61	)		(1.76	)		(0.49	)
Net increase (decrease) from investment operations		1.23			2.19			0.97			2.74			(0.60	)		(0.62	)		1.01
Dividends and distributions from:
Net investment income		(0.74	)		(1.33	)³		(1.24	)³		(0.90	)³		(1.16	)³		(1.19	)³		(1.41	)³
Net realized gain		—			—			—			—			—			—			(0.06	)³
Tax return of capital		—			—			—			—			—			—			(0.03	)³
Total dividends and distributions		(0.74	)		(1.33	)		(1.24	)		(0.90	)		(1.16	)		(1.19	)		(1.50	)
Net asset value, end of period	$	17.87		$	17.38		$	16.52		$	16.79		$	14.95		$	16.71		$	18.52
Market price, end of period	$	18.84		$	18.00		$	16.01		$	16.76		$	14.09		$	14.57		$	16.68

Total Investment Return⁴
Based on net asset value		7.17%	⁵		13.86%			5.85%			19.00%			(1.57)%			(2.60)%	⁵		5.66%
Based on market price		9.10%	⁵		21.68%			2.77%			26.04%			6.40%			(5.70)%	⁵		(4.03)%

Ratios to Average Net Assets
Total expenses		1.13%	⁶		1.05%			1.01%			0.82%			0.72%			1.39%	⁶		2.16%
Total expenses after fees waived and paid indirectly		1.13%	⁶		1.05%			1.00%			0.81%			0.71%			1.38%	⁶		2.14%
Total expenses after fees waived and paid indirectly and excluding interest expense		0.91%	⁶		0.89%			0.87%			0.73%			0.69%			0.76%	⁶		0.83%
Net investment income		7.58%	⁶		7.82%			7.75%			6.90%			7.42%			7.84%	⁶		7.92%

Supplemental Data
Net assets, end of period (000)	$	661,138		$	642,391		$	609,818		$	619,381		$	551,505		$	616,393		$	638,109
Borrowings outstanding, end of period (000)	$	311,589		$	296,476		$	244,120		$	123,233			—		$	64,538		$	109,287
Average borrowings outstanding, during the period (000)		302,037		$	242,396		$	191,303		$	44,160		$	11,705		$	120,295		$	172,040
Portfolio turnover		38%			54%			106%	⁷		248%	⁸		287%	⁹		191%	¹⁰		65%
Asset coverage, end of period per $1,000	$	3,122		$	3,167		$	3,498		$	6,026			—		$	10,551		$	7,251

Consolidated Financial Highlights.

Based on average shares outstanding.

Dividends and distributions are determined in accordance with federal income tax regulations.

⁴

⁵

Aggregate total investment return.

⁶

Annualized.

⁷

Includes mortgage dollar roll and to-be-announced (“TBA”) transactions. Excluding these transactions, the portfolio turnover would have been 87%.

⁸

Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 113%.

⁹

Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 79%.

¹⁰

Includes TBA transactions. Excluding these transactions, the portfolio turnover would have been 24%.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Notes to Financial Statements (Unaudited)

1. Organization and Significant Accounting Policies:

BlackRock Defined Opportunity Credit Trust (“BHL”), BlackRock Floating Rate Income Strategies Fund, Inc. (“FRA”) and BlackRock Limited Duration Income Trust (“BLW”) (collectively, the “Funds” or individually as a “Fund”) are registered under the 1940 Act, as diversified, closed-end management investment companies. BHL and BLW are organized as Delaware Statutory trusts. FRA is organized as Maryland corporation. The Funds’ 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 of assets and liabilities in the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. The Boards of Directors and the Boards of Trustees of the Funds are collectively referred to throughout this report as the “Board of Directors” or the “Board”, and the directors/trustees thereof are collectively referred to throughout this report as “Directors”. The Funds determine and make available for publication the NAV of their Common Shares on a daily basis.

Reorganization: The Board and shareholders of FRA and the Board and shareholders of each of BlackRock Diversified Strategies Fund, Inc. (“DVF”) and BlackRock Floating Rate Income Strategies Fund II, Inc., (“FRB”) (individually, a “Target Fund” and collectively the “Target Funds”) approved the reorganization of its respective Target Fund into FRA pursuant to which FRA acquired substantially all of the assets and substantially all of the liabilities of each Target Fund in exchange for an equal aggregate value of newly-issued shares of FRA.

Each shareholder of a Target Fund received shares of FRA in an amount equal to the aggregate NAV of such shareholder’s Target Fund shares, as determined at the close of business on October 5, 2012. Cash was distributed for any fractional shares.

The reorganizations were accomplished by a tax-free exchange of shares of FRA in the following amounts and at the following conversion ratios:

Target Fund	Shares Prior to Reorganization		Conversion Ratio		Shares of FRA
FRB		10,585,281		0.91462449		9,681,549
DVF		12,405,453		0.72423797		8,984,499

Each Target Fund’s net assets and composition of net assets on October 5, 2012, the date of the reorganization, were as follows:

	Target Funds
	FRB			DVF
Net assets	$	145,503,247		$	135,026,897
Paid-in capital	$	199,061,613		$	228,382,252
Undistributed (distributions in excess of) net investment income	$	(164,508	)	$	(88,960	)
Accumulated net realized loss	$	(54,909,880	)	$	(89,378,206	)
Net unrealized appreciation (depreciation)	$	1,516,022		$	(3,888,189	)

For financial reporting purposes, assets received and shares issued by FRA were recorded at fair value. However, the cost basis of the investments being received from the Target Funds were carried forward to align ongoing reporting of FRA’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.

The net assets of FRA before the acquisition were $278,016,037. The aggregate net assets of FRA immediately after the acquisition amounted to $558,546,181. Each Target Fund’s fair value and cost of investments prior to the reorganization were as follows:

Target Fund	Fair Value of Investments		Cost of Investments
FRB	$	220,588,307	$	219,010,017
DVF	$	206,051,284	$	209,710,937

The purpose of these transactions was to combine three funds managed by the Manager with the same or substantially similar (but not identical) investment objectives, investment policies, strategies, risks and restrictions. Each reorganization was a tax-free event and was effective on October 5, 2012.

Assuming the acquisition had been completed on September 1, 2012 the beginning of the fiscal reporting period of FRA, the pro forma results of operations for the six months ended February 28, 2013, are as follows:

•

Net investment income: $18,393,758

•

Net realized and change in unrealized gain/loss on investments: $14,776,513

•

Net increase/decrease in net assets resulting from operations: $33,170,271

Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of the Target Funds that have been included in FRA’s Statement of Operations since October 5, 2012.

Reorganization costs incurred in connection with the reorganization were expensed by FRA.

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

Basis of Consolidation: The accompanying consolidated financial statements include the accounts of FRA Subsidiary, LLC and BLW Subsidiary, LLC (the “Taxable Subsidiaries”), all of which are wholly owned taxable subsidiaries of each Fund. The Taxable Subsidiaries enable the Funds to hold investments in operating companies and still satisfy Regulated Investment Company (“RIC”) tax requirements. Income earned and gains realized on the investments held by the Taxable Subsidiaries are taxable to such subsidiaries. A tax provision for income, if any, is shown as income tax in the Consolidated Statements of Operations. A tax provision for income from realized and unrealized gains, if any, is included as a reduction of realized and unrealized gain (loss) in the Consolidated Statements of Operations. Each Fund may invest up to 25% of their total

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Notes to Financial Statements (continued)

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 Funds.

Valuation: US GAAP defines fair value as the price the Funds would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Funds fair value their financial instruments at market value using independent dealers or pricing services under policies approved by the Board. The Global Valuation Committee is the committee formed by management to develop global pricing policies and procedures and to provide oversight of the pricing function for the Funds for all financial instruments.

The Funds value their bond investments on the basis of last available bid prices or current market quotations provided by dealers or pricing services. Floating rate loan interests are valued at the mean of the bid prices from one or more brokers or dealers as obtained from a pricing service. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market 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. Swap agreements are valued utilizing quotes received daily by the Funds’ pricing service or through brokers, which are derived using daily swap curves and models that incorporate a number of market data factors, such as discounted cash flows, 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 that 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 by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair value (“Fair Value Assets”). When determining the price for Fair Value Assets, the Global Valuation Committee, or its delegate, seeks to determine the price that each Fund might reasonably expect to receive from the current sale of that asset in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee deem relevant consistent with the principles of fair value measurement, which include the market approach, income approach and/or in the case of recent investments, the cost approach, as appropriate. A market approach generally consists of using comparable market transactions. The income approach generally is used to discount future cash flows to present value and adjusted for liquidity as appropriate. These factors include but are not limited to: (i) attributes specific to the investment or asset; (ii) the principal market for the investment or asset; (iii) the customary participants in the principal market for the investment or asset; (iv) data assumptions by market participants for the investment or asset, if reasonably available; (v) quoted prices for similar investments or assets in active markets; and (vi) other factors, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, recovery rates, liquidation amounts and/or default rates. Due to the inherent uncertainty of valuations of such investments, the fair values may differ from the values that would have been used had an active market existed. The Global Valuation Committee, or its delegate, employs various methods for calibrating valuation approaches for investments where an active market does not exist, including regular due diligence of the Funds’ pricing vendors, a regular review of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices and large movements in market values and reviews of any market related activity. The pricing of all Fair Value Assets is subsequently reported to the Board or a committee thereof on a quarterly basis.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Notes to Financial Statements (continued)

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 Funds’ net assets. If events (for example, a company announcement, market volatility or a natural disaster) occur during such periods that are expected to affect the value of such instruments materially, those instruments may be Fair Value Assets and be valued at their fair value, as determined in good faith by the Global Valuation Committee using a pricing service and/or policies approved by the Board.

Foreign Currency: The Funds’ 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 Funds’ investments denominated in that currency will lose value because that currency is worth fewer US dollars; the opposite effect occurs if the US dollar falls in relative value.

The Funds 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 Statement 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 Funds 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: The Funds may invest in asset-backed securities. Asset-backed securities are generally issued as pass-through certificates, which represent undivided fractional ownership interests in an underlying pool of assets, or as debt instruments, which are also known as collateralized obligations, and are generally issued as the debt of a special purpose entity organized solely for the purpose of owning such assets and issuing such debt. Asset-backed securities are often backed by a pool of assets representing the obligations of a number of different parties. The yield characteristics of certain asset-backed securities may 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. In addition, a Fund may have to subsequently reinvest the proceeds at lower interest rates. If a Fund has purchased such an asset-backed security at a premium, a faster than anticipated prepayment rate could result in a loss of principal to the extent of the premium paid.

The Funds 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 Funds 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 this increases the rate at which the principal is returned and the yield to

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Notes to Financial Statements (continued)

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 Trusts may not fully recoup their 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. The Trusts also may invest in stripped mortgage-backed securities that are privately issued.

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

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 Funds may invest in preferred stock. 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: The Funds may invest in floating rate loan interests. The floating rate loan interests the Funds 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 Funds may invest in obligations of borrowers who are in bankruptcy proceedings. Floating rate loan interests may include fully funded term loans or revolving lines of credit. Floating rate loan interests are typically senior in the corporate capital structure of the 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 the London Interbank Offered Rate (“LIBOR”), the prime rate offered by one or more US banks or the certificate of deposit rate. Floating rate loan interests may involve foreign borrowers, and investments may be denominated in foreign currencies. The Funds consider these investments to be investments in debt securities for purposes of its investment policies.

When a Fund 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 Funds 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 Funds upon the prepayment of a floating rate loan interest by a borrower, are recorded as realized gains. The Funds may invest in multiple series or tranches of a loan. A different series or tranche may have varying terms and carry different associated risks.

Floating rate loan interests are usually freely callable at the borrower’s option. The Funds 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 Funds having a contractual relationship only with the lender, not with the borrower. The Funds will have the right to receive payments of principal, interest and any fees to which it is entitled only from the lender selling the Participation and only upon receipt by the lender of the payments from the borrower. In connection with purchasing Participations, the Funds generally will have no right to enforce compliance by the borrower with the terms of the loan agreement, nor any rights of offset against the borrower, and the Funds may not benefit directly from any collateral supporting the loan in which it has purchased the Participation. As a result, the Funds will assume the credit risk of both the borrower and the lender that is selling the Participation. The Funds’ 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 Funds may be treated as a general creditor of the lender and may not benefit from any offset between the lender and the borrower. Assignments typically result in the Funds having a direct contractual relationship with the borrower, and the Funds may enforce compliance by the borrower with the terms of the loan agreement.

Forward Commitments and When-Issued Delayed Delivery Securities: The Funds 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

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Notes to Financial Statements (continued)

sale commitment is made. The Funds 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 Funds may be required to pay more at settlement than the security is worth. In addition, the Funds are not entitled to any of the interest earned prior to settlement. When purchasing a security on a delayed delivery basis, the Funds 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 Funds’ maximum amount of loss is the unrealized appreciation of unsettled when-issued transactions, which is shown in the Schedules of Investments.

Reverse Repurchase Agreements: Certain Funds may enter into reverse repurchase agreements with qualified third party broker-dealers. In a reverse repurchase agreement, the Funds sell securities to a bank or broker-dealer and agrees to repurchase the same securities at a mutually agreed upon date and price. Securities sold under reverse repurchase agreements are recorded as a liability in the Statement of Assets and Liabilities at face value including accrued interest. Due to the short-term nature of the reverse repurchase agreements, face value approximates fair value. During the term of the reverse repurchase agreement, the Funds continue to receive the principal and interest payments on these securities. Certain agreements have no stated maturity and can be terminated by either party at any time. Interest on the value of the reverse repurchase agreements issued and outstanding is based upon competitive market rates determined at the time of issuance. The Funds may utilize reverse repurchase agreements when it is anticipated that the interest income to be earned from the investment of the proceeds of the transaction is greater than the interest expense of the transaction. Reverse repurchase agreements involve leverage risk and also the risk that the market value of the securities that the Funds are obligated to repurchase under the agreement may decline below the repurchase price. In the event the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes insolvent, the Funds’ use of the proceeds of the agreement may be restricted while the other party, or its trustee or receiver, determines whether or not to enforce the Funds’ obligation to repurchase the securities.

Segregation and Collateralization: In cases in which the 1940 Act and the interpretive positions of the Securities and Exchange Commission (“SEC”) require that the Funds either deliver collateral or segregate assets in connection with certain investments (e.g., financial futures contracts, foreign currency exchange contracts and swaps), or certain borrowings (e.g., reverse repurchase agreements and loan payable), the Funds will, consistent with SEC rules and/or certain interpretive letters issued by the SEC, segregate collateral or designate on its 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 Funds 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.

Dividends and Distributions: Dividends from net investment income are declared and paid monthly. Distributions of capital gains are recorded on the ex-dividend dates. The portion of dividends and distributions that exceeds a Fund’s current and accumulated earnings and profits, which are measured on a tax basis, may be treated as a tax return of capital. Distributions in excess of a Fund’s taxable income and net capital gains, but not in excess of a Fund’s earnings and profits, will be taxable to shareholders as ordinary income and will not constitute a nontaxable return of capital. Capital losses carried forward from years beginning before 2011 do not reduce earnings and profits, even if such carried forward losses offset current year realized gains. The character 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 Fund’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 Fund files US federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Funds’ US federal tax returns remains open for each of the four years ended August 31, 2012. The statutes of limitations on the Funds’ 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 December 2011, the Financial Accounting Standards Board (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 financial 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. In January 2013, the FASB issued guidance that clarifies which investments and transactions are subject to the offsetting disclosure requirements. The scope of the disclosure requirements for offsetting will be limited to derivative instruments, repurchase agreements and reverse

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FEBRUARY 28, 2013


Notes to Financial Statements (continued)

repurchase agreements, and securities borrowing and securities lending transactions. 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 Funds’ financial statement disclosures.

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

The Plan is not funded and obligations thereunder represent general unsecured claims against the general assets of each Fund. Deferred compensation liabilities are included in officer’s and directors’ fees payable in the Statements of Assets and Liabilities and will remain as a liability of the Funds until such amounts are distributed in accordance with the Plan.

Other: Expenses directly related to a Fund are charged to that Fund. Other operating expenses shared by several funds are pro rated among those funds on the basis of relative net assets or other appropriate methods.

The Funds 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 Funds engage in various portfolio investment strategies using derivative contracts both to increase the returns of the Funds and/or to economically hedge, or protect, their exposure to certain risks such as credit risk, equity risk, interest rate risk, foreign currency exchange rate 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 Funds’ 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 Funds 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 Funds do not give rise to counterparty credit risk, as options written obligate the Funds and not the counterparty to perform. Counterparty risk related to exchange-traded financial futures contracts and options and centrally cleared swaps is deemed to be minimal due to the protection against defaults provided by the exchange on which these contracts trade.

The Funds 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 Fund and each of its respective counterparties. An ISDA Master Agreement allows each Fund 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 Funds from their counterparties are not fully collateralized, contractually or otherwise, the Funds 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 Funds 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 Funds’ net assets decline by a stated percentage or the Funds fail to meet the terms of its ISDA Master Agreements, which would cause the Funds to accelerate payment of any net liability owed to the counterparty.

Financial Futures Contracts: The Funds 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). Financial futures contracts are agreements between the Funds and a 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, financial 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 Funds agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin and are recorded by the Funds as unrealized appreciation or depreciation. When the contract is closed, the Funds record a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. The use of financial futures contracts involves the risk of an imperfect correlation in the movements in the price of financial futures contracts, interest or foreign currency exchange rates and the underlying assets.

Foreign Currency Exchange Contracts: The Funds 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 Funds, help to manage the overall

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FEBRUARY 28, 2013


Notes to Financial Statements (continued)

exposure to the currencies in which some of the investments held by the Funds are denominated. The contract is marked-to-market daily and the change in market value is recorded by the Funds as an unrealized gain or loss. When the contract is closed, the Funds record a realized gain or loss equal to the difference between the value at the time it was opened and the value at the time it was closed. The use of foreign currency exchange contracts involves the risk that 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 the counterparty to the contract does not perform its obligations under the agreement.

Options: The Funds purchase and write call and put options to increase or decrease their exposure to underlying instruments (equity 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 Funds purchase (write) an option, an amount equal to the premium paid (received) by the Funds is reflected as an asset (liability). The amount of the asset (liability) is subsequently marked-to-market to reflect the current market value of the option purchased (written). When an 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 Funds enter into a closing transaction), the Funds realize a gain or loss on the option to the extent of the premiums received or paid (or gain or loss to the extent the cost of the closing transaction exceeds the premiums received or paid). When the Funds write a call option, such option is “covered,” meaning that the Funds holds the underlying instrument subject to being called by the option counterparty. When the Funds 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.

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

Swaps: The Funds enter into swap agreements, in which the Funds and a counterparty agree either to make periodic net payments on a specified notional amount or a net payment upon termination. Swap agreements are privately negotiated in the OTC market and may be entered into as a bilateral contract or centrally cleared (“centrally cleared swaps”). In a centrally cleared swap, immediately following execution of the swap agreement, the swap agreement is novated to a central counterparty (the “CCP”) and the Funds face the CCP through a future commission merchant. Unlike a bilateral swap agreement, for centrally cleared swaps, the Funds have no credit exposure to the counterparty as the CCP stands between the Funds and the counterparty. These payments received or made by the Funds are recorded in the Statements of Operations as realized gains or losses, respectively. Any upfront fees paid are recorded as assets and any upfront fees received are recorded as liabilities and are shown as swap premiums paid and swap premiums received, respectively in the Statements of Assets and 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). The daily change in valuation of centrally cleared swaps, if any, is recorded as a receivable or payable for variation margin in the Statements of Assets and Liabilities. When the swap is terminated, the Funds will record a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Funds’ basis in the contract, if any. Generally, the basis of the contracts is the premium received or paid. Swap transactions involve, to varying degrees, elements of interest rate, credit and market risk in excess of the amounts recognized in the Statements of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these 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 Funds 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 Funds 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 Funds 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 Funds will either receive from the seller an amount equal to the notional amount of the swap and deliver the referenced security or underlying securities comprising the index or receive a net settlement of cash equal to the notional amount of

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Notes to Financial Statements (continued)

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 Funds will either pay the buyer an amount equal to the notional amount of the swap and take delivery of the referenced security or underlying 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.

•

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 , 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.

Derivative Financial Instruments Categorized by Risk Exposure:

Fair Values of Derivative Financial Instruments as of February 28, 2013
	Asset Derivatives
		BHL		FRA		BLW
	Statements of Assets and Liabilities Location	Value
Interest rate contracts	Net unrealized appreciation/depreciation¹;		—		—	$	160,762
Foreign currency exchange contracts	Unrealized appreciation on foreign currency exchange contracts	$	156,557	$	616,559		2,824,995
Credit contracts	Unrealized appreciation on swaps¹;		66,901		372,158		690,734
Total		$	223,458	$	988,717	$	3,676,491

	Liability Derivatives
		BHL		FRA		BLW
	Statements of Assets and Liabilities Location	Value
Interest rate contracts	Net unrealized appreciation/depreciation¹; Unrealized depreciation on swaps¹		—		—	$	219,130
Foreign currency exchange contracts	Unrealized depreciation on foreign currency exchange contracts		—	$	14,902		47,438
Credit contracts	Unrealized depreciation on swaps¹;	$	245,737		1,354,739		2,233,226
Total		$	245,737	$	1,369,641	$	2,499,794

Includes cumulative appreciation/depreciation on financial futures contracts and centrally cleared swaps, if any, as reported in the Schedules of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.

The Effect of Derivative Financial Instruments in the Statements of Operations Six Months Ended February 28, 2013
	Net Realized Gain (Loss) From
	BHL			FRA			BLW
Interest rate contracts:
Financial futures contracts		—			—		$	6,891
Foreign currency exchange contracts:
Foreign currency transactions	$	(345,936	)	$	(975,272	)		(2,576,120	)
Credit contracts:
Swaps		(117,714	)		(183,697	)		(898,791	)
Equity contracts:
Financial futures contracts		—			—			(475,176	)
Options²								(242,400	)
Total	$	(463,650	)	$	(1,158,969	)	$	(4,185,596	)

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Notes to Financial Statements (continued)

	Net Change in Unrealized Appreciation/Depreciation on
	BHL		FRA			BLW
Interest rate contracts:
Financial futures contracts		—		—		$	(48,162	)
Swaps		—		—			40,933
Foreign currency exchange contracts:
Foreign currency translations	$	288,455	$	823,650			3,912,751
Credit contracts:
Swaps		132,539		515,904			823,731
Equity contracts:
Financial futures contracts		—		—			288,888
Options²		—		(23,466	)		(2,103	)
Total	$	420,994	$	1,316,088		$	5,016,038

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

For the six months ended February 28, 2013, the average quarterly balances of outstanding derivative financial instruments were as follows:

	BHL		FRA		BLW
Financial future contracts:
Average number of contracts purchased		—		—		69
Average number of contracts sold		—		—		20
Average notional value of contracts purchased		—		—	$	12,524,934
Average notional value of contracts sold		—		—	$	3,410,550
Foreign currency exchange contracts:
Average number of contracts — US dollars purchased		6		6		16
Average number of contracts — US dollars sold		2		4		4
Average US dollar amounts purchased	$	5,981,367	$	19,441,470	$	72,124,929
Average US dollar amounts sold	$	770,116	$	3,434,348	$	2,502,768
Options:
Average number of option contracts purchased		—		44		46
Average number of option contracts written		—		—		6,000	¹
Average notional value of option contracts purchased		—	$	41,486	$	43,372
Average notional value of option contracts written		—		—	$	7,950,000	¹
Credit default swaps:
Average number of contracts — buy protection		—		—		4
Average number of contracts — sell protection		5		4		12
Average notional value — buy protection		—		—	$	12,543,000
Average notional value — sell protection	$	470,780	$	2,661,797	$	11,613,292
Interest rate swaps:
Average number of contracts — pays fixed rate		—		—		1
Average notional value — pays fixed rate		—		—	$	14,500,000

Actual contract amount shown due to limited activity

3. Investment Advisory Agreement and Other Transactions with Affiliates:

The PNC Financial Services Group, Inc. (“PNC”) is the largest stockholder and an affiliate, for 1940 Act purposes, of BlackRock, Inc. (“BlackRock”).

Each Fund entered into an Investment Advisory Agreement with BlackRock Advisors, LLC (the “Manager”), the Funds’ investment advisor, an indirect, wholly owned subsidiary of BlackRock, to provide investment advisory and administration services. The Manager is responsible for the management of each Fund’s portfolio and provides the necessary personnel, facilities, equipment and certain other services necessary to the operations of each Fund. For such services, each Fund pays the Manager a monthly fee based on a percentage of each Fund’s average daily net assets at the following annual rates, plus the proceeds of any outstanding borrowings used for leverage as follows:

BHL	1.00	%
FRA	0.75	%
BLW	0.55	%

The Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees each Fund 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 in connection with each Fund’s investment in other affiliated investment companies, if any. These amounts are included in, fees waived by Manager in the Statements of Operations.

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

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FEBRUARY 28, 2013


Notes to Financial Statements (continued)

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

Certain officers and/or Directors of the Funds are officers and/or Directors of BlackRock or its affiliates. The Funds reimburse the Manager for a portion of the compensation paid to the Funds’ Chief Compliance Officer, which is included in officer and directors in the Statements of Operations.

4. Investments:

Purchases and sales of investments including paydowns and excluding short-term securities and US government securities for the six months ended February 28, 2013, were as follows:

	Purchases		Sales
BHL	$	95,015,208	$	86,554,331
FRA	$	389,340,846	$	364,351,206
BLW	$	415,779,704	$	366,522,355

Purchases and sales of US government securities for BLW for the six months ended February 28, 2013 were $0 and $1,745,676, respectively.

Transactions in options written for the six months ended February 28, 2013 were as follows:

	Puts
BLW	Contracts			Notional (000)		Premiums Received
Outstanding options, beginning of year		6,000			—	$	75,600
Options written					—
Options exercised		—			—		—
Options expired		(6,000	)		—		(75,600	)
Outstanding options, end of year		—			—		—

5. Income Tax Information:

As of August 31, 2012, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:

Expires August 31,	BHL		FRA		BLW
2013		—	$	691,829		—
2016		—		475,453	$	21,882,229
2017		—		20,954,032		9,996,868
2018	$	3,695,649		43,990,722		37,509,275
2019		—		2,206,081		—
No expiration date¹		—		4,931,753		4,356,066
Total	$	3,695,649	$	73,249,870	$	73,744,438

Must be utlized prior to losses subject to expiration.

As of February 28, 2013, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

	BHL			FRA			BLW

Tax cost	$	196,810,430		$	867,114,867		$	988,955,528
Gross unrealized appreciation	$	4,169,700		$	19,322,594		$	38,037,425
Gross unrealized depreciation		(936,200	)		(14,485,247	)		(20,030,771	)
Net unrealized appreciation	$	3,233,500		$	4,837,347		$	18,006,654

6. Borrowings:

Effective March 3, 2011, the BHL and FRA were party to 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 Funds have granted a security interest in substantially all of their assets to SSB. The SSB Agreement allowed for the following maximum commitment amounts:

	Commitment Amounts
BHL	$	63,300,000
FRA	$	137,200,000

Advances were made by SSB to the Funds, at the Funds’ 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, the SSB Agreement was renewed for an additional 364 days. The SSB Agreement allows for the following maximum commitment amounts:

	Commitment Amounts
BHL	$	63,300,000
FRA	$	137,200,000

Advances were be made by SSB to the Funds, at the Funds’ 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.

On March 1, 2013, the SSB Agreement was renewed and amended from a 364-day revolving line of credit to a 360-day rolling facility whereby SSB may elect to terminate its commitment upon 360-days written notice to the Funds at any time after February 24, 2014. The SSB Agreement allows for the following maximum commitment amounts:

	Commitment Amounts
BHL	$	63,300,000
FRA	$	137,200,000

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Notes to Financial Statements (continued)

Advances will be made by SSB to the Funds, at the Funds’ option of (a) the higher of (i) 0.80% above the Fed Funds rate and (ii) 0.80% above the Overnight LIBOR or (b) 0.80% above 7-day, 30-day, 60-day or 90-day LIBOR.

In addition, the Funds pay a facility fee and utilization fee (based on the daily unused portion of the commitments). The commitment fees are waived if the Funds meet certain conditions. The fees associated with each of the agreements are included in the Statements of Operations as borrowing costs. Advances to the Funds as of February 28, 2013 are shown in the Statements of Assets and Liabilities as loan payable. Based on the short-term nature of the borrowings under the line of credit and the variable interest rate, the carrying amount of the borrowings approximates fair value.

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

For the six months ended February 28, 2013, the daily weighted average interest rates for Funds with loans under the revolving credit agreements were as follows:

				Daily Weighted Average Interest Rate
BHL				0.94%
FRA				0.94%

For the six months ended February 28, 2013, the daily weighted average interest rate for BLW with borrowings, which include reverse repurchase agreements was as follows:

				Daily Weighted Average Interest Rate
BLW				0.48%

7. Commitments:

The Funds may invest in floating rate loan interests. In connection with these investments, the Funds may also enter into unfunded floating rate loan interests (“commitments”). In connection with these commitments, the Funds 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. Unfunded floating rate loan interests are marked-to-market daily, and any unrealized appreciation or depreciation is included in the Statements of Assets and Liabilities and Statements of Operations. As of February 28, 2013, the Funds had the following unfunded floating rate loan interests:

	Borrower	Unfunded Floating Rate Loan Interest		Value of Underlying Floating Rate Loan Interest		Unrealized Appreciation
BHL	Leslie’s Poolmart, Inc.	$	11,949	$	12,080	$	180
FRA	Leslie’s Poolmart, Inc.	$	51,672	$	52,240	$	777

8. Concentration, Market and Credit Risk:

In the normal course of business, the Funds invest in securities and enter into transactions where risks exist due to fluctuations in the market (market risk) or failure of the issuer of a security to meet all its obligations (issuer credit risk). The value of securities held by the Funds may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Funds; 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 Funds may be exposed to counterparty credit risk, or the risk that an entity with which the Funds have unsettled or open transactions may fail to or be unable to perform on its commitments. The Fund manages counterparty credit risk by entering into transactions only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Funds’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is generally approximated by their value recorded in Statements of Assets and Liabilities, less any collateral held by the Funds.

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

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Notes to Financial Statements (concluded)

9. Capital Share Transactions:

BHL and BLW are authorized to issue an unlimited number of shares, par value $0.001, all of which were initially classified as Common Shares. FRA is authorized to issue 200 million shares, par value $0.10, all of which were initially classified as Common Shares. The Board is authorized, however, to reclassify any unissued Common 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 28, 2013		Year Ended August 31, 2012
BHL	7,413		—
FRA	18,712,185	¹	17,388
BLW	33,959		34,642

Includes 18,666,048 shares issued from the reorganization.

10. Subsequent Events:

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

Each Fund paid a net investment income dividend in the following amounts per share on March 28, 2013 to Common Shareholders of record on March 15, 2013:

	Common Dividend Per Share
BHL	$	0.0685
FRA	$	0.0770
BLW	$	0.1095

Additionally, the Funds declared a net investment income dividend on April 1, 2013 payable to Common Shareholders of record on April 15, 2013 for the same amounts noted above.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Officers and Directors

Richard E. Cavanagh, Chairman of the Board and Director
Karen P. Robards, Vice Chairperson of the Board,
  Chairperson of the Audit Committee and Director
Paul L. Audet, Director
Michael J. Castellano, Director and Member of the Audit
  Committee
Frank J. Fabozzi, Director and Member of the Audit
  Committee
Kathleen F. Feldstein, Director
James T. Flynn, Director and Member of the Audit Committee
Henry Gabbay, Director
Jerrold B. Harris, Director
R. Glenn Hubbard, Director
W. Carl Kester, Director and Member of the Audit Committee
John M. Perlowski, President and Chief Executive Officer
Anne Ackerley, Vice President
Brendan Kyne, Vice President
Robert W. Crothers, Vice President
Neal Andrews, Chief Financial Officer
Jay Fife, Treasurer
Brian Kindelan, Chief Compliance Officer and
  Anti-Money Laundering Officer
Janey Ahn, Secretary

Investment Advisor
BlackRock Advisors, LLC
Wilmington, DE 19809

Sub-Advisor
BlackRock Financial Management, Inc.
New York, NY 10055

Custodian and Accounting Agent
State Street Bank and Trust Company
Boston, MA 02110

Transfer Agent
Common Shares
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 Funds
100 Bellevue Parkway
Wilmington, DE 19809

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Additional Information

Proxy Results

At a special meeting of all shareholders of BlackRock Floating Rate Income Strategies Fund, Inc. held on September 13, 2012, the results were as follows:

With respect to the Proposals, the shares of the Fund were voted as follows:

	Votes For		Votes Against		Abstain
To approve the issuance of additional shares of common stock of the Fund in connection with the Agreement and Plan of Reorganization among BlackRock Floating Rate Income Strategies Fund II, Inc., FRA Merger Subsidiary and the Fund.		10,225,182		503,452		253,747
To approve the issuance of additional shares of common stock of the Fund in connection with the Agreement and Plan of Reorganization among BlackRock Diversified Income Strategies Fund, Inc., FRA Merger Subsidiary and the Fund.		10,097,723		628,903		255,755

Regulation Regarding Derivatives

Effective December 31, 2012, the Commodity Futures Trading Commission (“CFTC”) adopted certain regulatory changes that subject registered investment companies and advisers to registered investment companies to regulation by the CFTC if a fund invests more than a prescribed level of its net assets in CFTC-regulated futures, options and swaps (“CFTC Derivatives”), or if the fund markets itself as providing investment exposure to such instruments. To the extent a Fund uses CFTC-regulated futures, options and swaps, it intends to do so below such prescribed levels and will not market itself as a “commodity pool” or a vehicle for trading such instruments. Accordingly, BlackRock Advisors, LLC has claimed an exclusion from the definition of the term “commodity pool operator” under the Commodity Exchange Act (“CEA”) pursuant to Rule 4.5 under the CEA. BlackRock Advisors, LLC is not, therefore, subject to registration or regulation as a “commodity pool operator” under the CEA in respect of each Fund.

A Fund may also have investments in “underlying funds” not advised by BlackRock (which for purposes of the no-action letter referenced below may include certain securitized vehicles and/or mortgage REITS that may invest in CFTC Derivatives). BlackRock Advisors, LLC has no transparency into the holdings of these underlying funds because they are not advised by BlackRock. To address this issue of lack of transparency, the CFTC staff issued a no-action letter on November 29, 2012 permitting the adviser of a fund that invests in such underlying funds and that would otherwise have filed a claim of exclusion pursuant to Rule 4.5, to delay registration as a “commodity pool operator” until June 30, 2013 or six months from the date in which the CFTC issues additional guidance on the treatment of CFTC Derivatives held by underlying funds. BlackRock Advisors, LLC, the adviser of the Funds, has filed a claim with the CFTC to rely on this no-action relief.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Additional Information (continued)

Dividend Policy

Each Fund’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 dividends paid by the Funds for any particular month may be more or less than the amount of net investment income earned by the Funds during such month. The portion of dividend distributions that exceeds a Fund’s current and accumulated earnings and profits, which are measured on a tax basis, will constitute a nontaxable return of capital. Dividend distributions in excess of a Fund’s taxable income and net capital gains, but not in excess of a Fund’s earnings and profits, will be taxable to shareholders as ordinary income and will not constitute a nontaxable return of capital. The Funds’ 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 Funds do not make available copies of their Statements of Additional Information because the Funds’ shares are not continuously offered, which means that the Statement of Additional Information of each Fund has not been updated after completion of the respective Fund’s offerings and the information contained in each Fund’s Statement of Additional Information may have become outdated.

During the period, there were no material changes in the Funds’ investment objectives or policies or to the Funds’ charters or by-laws that would delay or prevent a change of control of the Funds that were not approved by shareholders or in the principal risk factors associated with investment in the Funds. There have been no changes in the persons who are primarily responsible for the day-to-day management of the Funds’ portfolios.

Quarterly performance, semi-annual and annual reports and other information regarding the Funds may be found on BlackRock’s website, which can be accessed at http://www.blackrock.com. This reference to BlackRock’s website is intended to allow investors public access to information regarding the Funds 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 Funds’ web-sites or shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual reports by enrolling in the Funds’ electronic delivery program.

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

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

Householding

The Funds will mail only one copy of shareholder documents, including annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and 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 Funds at (800) 882-0052.

Availability of Quarterly Schedule of Investments

The Funds files their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the SEC’s website at http://www.sec.gov and may also be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on how to access documents on the SEC’s website without charge may be obtained by calling (800) SEC-0330. The Fund’s Forms N-Q may also be obtained upon request and without charge by calling (800) 882-0052.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013


Additional Information (concluded)

General Information (concluded)

Availability of Proxy Voting Policies and Procedures

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available (1) without charge, upon request, by calling (800) 882-0052; (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 Funds voted proxies relating to securities held in the Funds’ 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) 882-0052 and (2) on the SEC’s website at http://www.sec.gov.

Availability of Fund Updates

BlackRock will update performance and certain other data for the Funds on a monthly basis on its website in the “Closed-end Funds” section of http://www.blackrock.com as well as certain other material information as necessary from time to time. Investors and others are advised to periodically check the website for updated performance information and the release of other material information about the Funds. This reference to BlackRock’s website is intended to allow investors public access to information regarding the Funds and does not, and is not intended to, incorporate BlackRock’s website in this report.

Section 19(a) Notice

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

February 28, 2013
	Total Fiscal Year-to-Date Cumulative Distributions by Character								Percentage 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
FRA	$	0.570000		—		—	$	0.570000		100	%		0	%		0	%		100	%

BlackRock Privacy Principles

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

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

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

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

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

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

[THIS PAGE INTENTIONALLY LEFT BLANK]

This report is transmitted to shareholders only. It is not a prospectus. Past performance results shown in this report should not be considered a representation of future performance. The Funds 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 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.

CEFT-BK3-2/13-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 Defined Opportunity Credit Trust

By: /s/ John M. Perlowski

John M. Perlowski

Chief Executive Officer (principal executive officer) of

BlackRock Defined Opportunity Credit Trust

Date: May 1, 2013

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 Defined Opportunity Credit Trust

Date: May 1, 2013

By: /s/ Neal J. Andrews

Neal J. Andrews

Chief Financial Officer (principal financial officer) of

BlackRock Defined Opportunity Credit Trust

Date: May 1, 2013

Symbol on New York Stock Exchange (“NYSE”)

Initial Offering Date

January 31, 2008

Yield on Closing Market Price as of February 28, 2013 ($14.75)¹

Current Monthly Distribution per Common Share²

Current Annualized Distribution per Common Share²

Economic Leverage as of February 28, 2013³