Blackrock Income Opportunity Trust (BNA) N-CSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-06443

Name of Fund: BlackRock Income Opportunity Trust, Inc. (BNA)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Income Opportunity Trust, Inc., 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 Core Bond Trust (BHK)

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

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

BlackRock High Income Shares (HIS)

BlackRock High Yield Trust (BHY)

BlackRock Income Opportunity Trust, Inc. (BNA)

BlackRock Income Trust, Inc. (BKT)

BlackRock Strategic Bond Trust (BHD)

Not FDIC Insured • May Lose Value • No Bank Guarantee

Table of Contents

	Page
Dear Shareholder	3
Semi-Annual Report:
Trust Summaries	4
The Benefits and Risks of Leveraging	20
Derivative Financial Instruments	20
Financial Statements:
Schedules of Investments	21
Statements of Assets and Liabilities	118
Statements of Operations	122
Statements of Changes in Net Assets	124
Statements of Cash Flows	126
Financial Highlights	128
Notes to Financial Statements	136
Officers and Trustees	150
Additional Information	151

2 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 3

Trust Summary as of February 28, 2013 BlackRock Core Bond Trust

Trust Overview

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

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

Portfolio Management Commentary

How did the Trust perform?

• For the six-month period ended February 28, 2013, the Trust returned 0.49% based on market price and 3.30% based on net asset value (“NAV”). For the same period, the closed-end Lipper Corporate BBB-Rated Debt Funds (Leveraged) category posted an average return of 4.48% based on market price and 5.05% based on NAV. All returns reflect reinvestment of dividends. The Trust moved from a premium to NAV to a discount 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?

• 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 Trust’s allocations to high yield and investment grade corporate credit were significant contributors to performance during the period. In particular, the Trust’s preference for banking, insurance and communication-related names contributed meaningfully to returns.

• Additionally, the Trust 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”).

• As interest rates generally trended higher during the period, the Trust’s duration profile (sensitivity to interest rate movements) detracted from performance, as did its yield curve positioning.

Describe recent portfolio activity.

• During the six-month period, the Trust maintained a positive view on spread sectors and increased exposure to high yield credit and securitized products such as CMBS and ABS. Within investment grade credit, the Trust favored financials and industrials over utilities. In financials, the Trust rotated out of senior bank debt into subordinated bank debt to take advantage of the yield differential. In addition, the Trust added to positions in floating rate preferred securities to benefit from a potential rise in interest rates. Finally, the Trust shortened its duration profile in light of expectations that positive economic data may lead to a gradual increase in interest rates.

Describe portfolio positioning at period end.

• At period end, the Trust maintained diversified exposure to non-government spread sectors, including investment grade credit, high yield corporate credit, CMBS, ABS and non-agency residential MBS. The Trust also held allocations to government-related sectors such as US Treasuries, US agency debt and agency MBS.

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

4 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

BlackRock Core Bond Trust

Trust Information

Symbol on New York Stock Exchange (“NYSE”)	BHK
Initial Offering Date	November 27, 2001
Yield on Closing Market Price as of February 28, 2013 ($14.99)1	5.84%
Current Monthly Distribution per Common Share2	$0.073
Current Annualized Distribution per Common Share2	$0.876
Economic Leverage as of February 28, 20133	31%

¹ Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

² The distribution rate is not constant and is subject to change.

³ Represents loan outstanding as a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to borrowings) minus the sum of liabilities (other than borrowings representing financial leverage). For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 20.

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

	2/28/13		8/31/12		Change			High		Low
Market Price	$	14.99	$	15.41		(2.73	)%	$	16.24	$	14.10
Net Asset Value	$	15.21	$	15.21		0.00	%	$	15.57	$	14.96

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

Portfolio Composition

	2/28/13			8/31/12
Corporate Bonds		58	%		52	%
US Government Sponsored Agency Securities		12			13
Non-Agency Mortgage-Backed Securities		11			11
US Treasury Obligations		8			14
Asset-Backed Securities		6			5
Taxable Municipal Bonds		3			2
Preferred Securities		2			2
Foreign Agency Obligations		—			1

Credit Quality Allocation⁴

	2/28/13			8/31/12
AAA/Aaa5		26	%		36	%
AA/Aa		3			3
A		24			20
BBB/Baa		22			23
BB/Ba		12			7
B		11			9
CCC/Caa		2			2

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

⁵ Includes US Government Sponsored Agency Securities, which were deemed AAA/Aaa by the investment advisor.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 5

Trust Summary as of February 28, 2013 BlackRock Corporate High Yield Fund V, Inc.

Trust Overview

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

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

Portfolio Management Commentary

How did the Trust perform?

• For the six-month period ended February 28, 2013, the Trust returned 1.78% based on market price and 9.62% 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 moved from a premium to NAV to a discount 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 the lower quality tiers of high yield credit had a positive impact on performance. From an industry perspective, holdings within gaming, automotive and building materials boosted returns. The Trust’s exposure to select common stocks and preferred securities also enhanced results.

• Detracting from performance was security selection within middle quality tier credits, as well as within non-rated securities. On an industry basis, selection in metals, paper and wireless impaired results. The Trust’s tactical allocation to floating rate loan interests (bank loans) hindered relative performance as the asset class underperformed high yield bonds during the period.

Describe recent portfolio activity.

• The Trust maintained its focus on higher-quality income-oriented credit names with stable fundamentals, good earnings/revenue visibility and an attractive coupon rate. The Trust remained generally cautious of cyclical credits that tend to be more vulnerable to slower economic growth and bouts of weakness, but allowed some risk in companies with positive growth catalysts or idiosyncratic characteristics. Also during the period, the Trust increased exposure to floating rate loan interests as valuations appeared increasingly attractive relative to certain segments of the high yield universe such as higher-quality short-dated paper.

Describe portfolio positioning at period end.

• At period end, the Trust held 73% of its total portfolio in corporate bonds and 19% in floating rate loan interests, with the remainder in common stocks and preferred stocks. The Trust held its largest industry exposures in healthcare, wirelines and consumer services (housing-related), while reflecting less emphasis on the riskier, more volatile segments of the market such as the banking sector and supermarkets and restaurants industries.

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

6 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

BlackRock Corporate High Yield Fund V, Inc.

Trust Information

Symbol on NYSE	HYV
Initial Offering Date	November 30, 2001
Yield on Closing Market Price as of February 28, 2013 ($13.09)1	8.25%
Current Monthly Distribution per Common Share2	$0.09
Current Annualized Distribution per Common Share2	$1.08
Economic Leverage as of February 28, 20133	29%

¹ Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

² The distribution rate is not constant and is subject to change.

³ Represents loan outstanding as a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to borrowings) minus the sum of liabilities (other than borrowings representing financial leverage). For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 20.

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

	2/28/13		8/31/12		Change			High		Low
Market Price	$	13.09	$	13.51		(3.11	)%	$	13.52	$	11.40
Net Asset Value	$	13.18	$	12.63		4.35	%	$	13.26	$	12.60

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

Portfolio Composition

	2/28/13			8/31/12
Corporate Bonds		73	%		75	%
Floating Rate Loan Interests		19			17
Common Stocks		7			6
Preferred Stocks		1			2

Credit Quality Allocation⁴

	2/28/13			8/31/12
A		1	%		1	%
BBB/Baa		5			6
BB/Ba		36			35
B		46			43
CCC/Caa		10			13
Not Rated		2			2

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

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 7

Trust Summary as of February 28, 2013 BlackRock Corporate High Yield Fund VI, Inc.

Trust Overview

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

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

Portfolio Management Commentary

How did the Trust perform?

• For the six-month period ended February 28, 2013, the Trust returned 2.86% based on market price and 9.31% 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 moved from a premium to NAV to a discount 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 the lower quality tiers of high yield credit had a positive impact on performance. From an industry perspective, holdings within gaming, automotive and building materials boosted returns. The Trust’s exposure to select common stocks and equity-correlated instruments also enhanced results.

• Detracting from performance was security selection within middle quality tier credits, where the Trust held its quality bias. On an industry basis, selection in metals, paper and wireless impaired results. The Trust’s tactical allocation to floating rate loan interests (bank loans) hindered relative performance as the asset class underperformed high yield bonds during the period.

Describe recent portfolio activity.

• The Trust maintained its focus on higher-quality income-oriented credit names with stable fundamentals, good earnings/revenue visibility and an attractive coupon rate. The Trust remained generally cautious of cyclical credits that tend to be more vulnerable to slower economic growth and bouts of weakness, but allowed some risk in companies with positive growth catalysts or idiosyncratic characteristics. Also during the period, the Trust increased exposure to floating rate loan interests as valuations appeared increasingly attractive relative to certain segments of the high yield universe such as higher-quality short-dated paper.

Describe portfolio positioning at period end.

• At period end, the Trust held 73% of its total portfolio in corporate bonds and 19% in floating rate loan interests, with the remainder in common stocks and preferred stocks. The Trust held its largest industry exposures in healthcare, wirelines and consumer services (housing-related), while reflecting less emphasis on the riskier, more volatile segments of the market such as the banking sector and supermarkets and restaurants industries.

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

8 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

BlackRock Corporate High Yield Fund VI, Inc.

Trust Information

Symbol on NYSE	HYT
Initial Offering Date	May 30, 2003
Yield on Closing Market Price as of February 28, 2013 ($12.72)1	8.25%
Current Monthly Distribution per Common Share2	$0.0875
Current Annualized Distribution per Common Share2	$1.0500
Economic Leverage as of February 28, 20133	28%

¹ Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

² The distribution rate is not constant and is subject to change.

³ Represents loan outstanding as a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to borrowings) minus the sum of liabilities (other than borrowings representing financial leverage). For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 20.

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

	2/28/13		8/31/12		Change			High		Low
Market Price	$	12.72	$	12.96		(1.85	)%	$	13.37	$	11.31
Net Asset Value	$	12.85	$	12.32		4.30	%	$	12.94	$	12.28

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

Portfolio Composition

	2/28/13			8/31/12
Corporate Bonds		73	%		75	%
Floating Rate Loan Interests		19			17
Common Stocks		7			6
Preferred Stocks		1			2

Credit Quality Allocation⁴

	2/28/13			8/31/12
A		—			1	%
BBB/Baa		5	%		6
BB/Ba		36			35
B		47			43
CCC/Caa		10			14
Not Rated		2			1

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

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 9

Trust Summary as of February 28, 2013 BlackRock High Income Shares

Trust Overview

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

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

Portfolio Management Commentary

How did the Trust perform?

• For the six-month period ended February 28, 2013, the Trust returned 5.48% based on market price and 6.92% 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 narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.

What factors influenced performance?

• Security selection among the lower quality tiers of high yield credit had a positive impact on performance. From an industry perspective, holdings within non-captive diversified (consumer credit-related businesses), automotive and building materials boosted returns. The Trust’s exposure to select common stocks and preferred securities also enhanced results.

• Detracting from performance was security selection within middle quality tier credits, where the Trust held its quality bias. On an industry basis, selection in metals, paper and wireless impaired results. The Trust’s tactical allocation to floating rate loan interests (bank loans) hindered relative performance as the asset class underperformed high yield bonds during the period.

Describe recent portfolio activity.

• The Trust maintained its focus on higher-quality income-oriented credit names with stable fundamentals, good earnings/revenue visibility and an attractive coupon rate. The Trust remained generally cautious of cyclical credits that tend to be more vulnerable to slower economic growth and bouts of weakness, but allowed some risk in companies with positive growth catalysts or idiosyncratic characteristics. Also during the period, the Trust increased exposure to floating rate loan interests as valuations appeared increasingly attractive relative to certain segments of the high yield universe such as higher-quality short-dated paper.

Describe portfolio positioning at period end.

• At period end, the Trust held 78% of its total portfolio in corporate bonds and 19% in floating rate loan interests, with the remainder in preferred securities and common stocks. The Trust held its largest industry exposures in healthcare, wirelines and media non-cable, while reflecting less emphasis on the riskier, more volatile segments of the market such as the banking sector and supermarkets and restaurants industries.

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

10 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

BlackRock High Income Shares

Trust Information

Symbol on NYSE	HIS
Initial Offering Date	August 10, 1988
Yield on Closing Market Price as of February 28, 2013 ($2.42)1	7.54%
Current Monthly Distribution per Common Share2	$0.0152
Current Annualized Distribution per Common Share2	$0.1824
Economic Leverage as of February 28, 20133	26%

¹ Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

² The distribution rate is not constant and is subject to change.

³ Represents loan outstanding as a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to borrowings) minus the sum of liabilities (other than borrowings representing financial leverage). For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 20.

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

	2/28/13		8/31/12		Change			High		Low
Market Price	$	2.42	$	2.40		0.83	%	$	2.49	$	2.04
Net Asset Value	$	2.31	$	2.26		2.21	%	$	2.34	$	2.25

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

Portfolio Composition

	2/28/13			8/31/12
Corporate Bonds		78	%		79	%
Floating Rate Loan Interests		19			18
Preferred Securities		2			2
Common Stocks		1			1

Credit Quality Allocation⁴

	2/28/13			8/31/12
A		—			1	%
BBB/Baa		5	%		7
BB/Ba		36			34
B		47			43
CCC/Caa		10			14
Not Rated		2			1

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

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 11

Trust Summary as of February 28, 2013 BlackRock High Yield Trust

Trust Overview

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

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

Portfolio Management Commentary

How did the Trust perform?

• For the six-month period ended February 28, 2013, the Trust returned 4.11% based on market price and 8.14% 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 Trust’s premium to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.

What factors influenced performance?

• Security selection among the lower quality tiers of high yield credit had a positive impact on performance. From an industry perspective, holdings within gaming, non-captive diversified (consumer credit-related businesses) and building materials boosted returns. The Trust’s exposure to select common stocks and preferred securities also enhanced results.

• Detracting from performance was security selection within middle quality tier credits, where the Trust held its quality bias. On an industry basis, selection in metals, paper and wireless impaired results. The Trust’s tactical allocation to floating rate loan interests (bank loans) hindered relative performance as the asset class underperformed high yield bonds during the period.

Describe recent portfolio activity.

• The Trust maintained its focus on higher-quality income-oriented credit names with stable fundamentals, good earnings/revenue visibility and an attractive coupon rate. The Trust remained generally cautious of cyclical credits that tend to be more vulnerable to slower economic growth and bouts of weakness, but allowed some risk in companies with positive growth catalysts or idiosyncratic characteristics. Also during the period, the Trust increased exposure to floating rate loan interests as valuations appeared increasingly attractive relative to certain segments of the high yield universe such as higher-quality short-dated paper.

Describe portfolio positioning at period end.

• At period end, the Trust held 76% of its total portfolio in corporate bonds and 19% in floating rate loan interests, with the remainder in common stocks and preferred securities. The Trust held its largest industry exposures in healthcare, media non-cable and wireless, while reflecting less emphasis on the riskier, more volatile segments of the market such as the banking sector and supermarkets and restaurants industries.

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

12 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

BlackRock High Yield Trust

Trust Information

Symbol on NYSE	BHY
Initial Offering Date	December 23, 1998
Yield on Closing Market Price as of February 28, 2013 ($8.08)1	6.61%
Current Monthly Distribution per Common Share2	$0.0445
Current Annualized Distribution per Common Share2	$0.5340
Economic Leverage as of February 28, 20133	27%

¹ Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

² The distribution rate is not constant and is subject to change.

³ Represents loan outstanding as a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to borrowings) minus the sum of liabilities (other than borrowings representing financial leverage). For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 20.

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

	2/28/13		8/31/12		Change			High		Low
Market Price	$	8.08	$	8.04		0.50	%	$	8.54	$	6.64
Net Asset Value	$	7.61	$	7.29		4.39	%	$	7.66	$	7.26

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

Portfolio Composition

	2/28/13			8/31/12
Corporate Bonds		76	%		78	%
Floating Rate Loan Interests		19			17
Common Stocks		4			3
Preferred Securities		1			2

Credit Quality Allocation⁴

	2/28/13			8/31/12
A		1	%		1	%
BBB/Baa		7			7
BB/Ba		33			35
B		47			44
CCC/Caa		10			12
Not Rated		2			1

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

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 13

Trust Summary as of February 28, 2013 BlackRock Income Opportunity Trust, Inc.

Trust Overview

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

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

Portfolio Management Commentary

How did the Trust perform?

• For the six-month period ended February 28, 2013, the Trust returned (0.39)% based on market price and 3.33% based on NAV. For the same period, the closed-end Lipper Corporate BBB-Rated Debt Funds (Leveraged) category posted an average return of 4.48% based on market price and 5.05% based on NAV. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.

What factors influenced performance?

• 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 Trust’s allocations to high yield and investment grade corporate credit were significant contributors to performance during the period. In particular, the Trust’s preference for banking, insurance and communication-related names contributed meaningfully to returns.

• Additionally, the Trust 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”).

• As interest rates generally trended higher during the period, the Trust’s duration profile (sensitivity to interest rate movements) detracted from performance, as did its yield curve positioning.

Describe recent portfolio activity.

• During the six-month period, the Trust maintained a positive view on spread sectors and increased exposure to high yield credit and securitized products such as CMBS and ABS. Within investment grade credit, the Trust favored financials and industrials over utilities. In financials, the Trust rotated out of senior bank debt into subordinated bank debt to take advantage of the yield differential. In addition, the Trust added to positions in floating rate preferred securities to benefit from a potential rise in interest rates. Finally, the Trust shortened its duration profile in light of expectations that positive economic data may lead to a gradual increase in interest rates.

Describe portfolio positioning at period end.

• At period end, the Trust maintained diversified exposure to non-government spread sectors, including investment grade credit, high yield corporate credit, CMBS, ABS and non-agency residential MBS. The Trust also held allocations to government-related sectors such as US Treasuries, US agency debt and agency MBS.

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

14 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

BlackRock Income Opportunity Trust, Inc.

Trust Information

Symbol on NYSE	BNA
Initial Offering Date	December 20, 1991
Yield on Closing Market Price as of February 28, 2013 ($11.20)1	6.11%
Current Monthly Distribution per Common Share2	$0.057
Current Annualized Distribution per Common Share2	$0.684
Economic Leverage as of February 28, 20133	31%

¹ Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

² The distribution rate is not constant and is subject to change.

³ Represents reverse repurchase agreements outstanding as a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to borrowings) minus the sum of liabilities (other than borrowings representing financial leverage). For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 20.

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

	2/28/13		8/31/12		Change			High		Low
Market Price	$	11.20	$	11.58		(3.28	)%	$	12.07	$	10.95
Net Asset Value	$	11.88	$	11.84		0.34	%	$	12.12	$	11.63

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

Portfolio Composition

	2/28/13			8/31/12
Corporate Bonds		58	%		51	%
US Government Sponsored Agency Securities		13			14
Non-Agency Mortgage-Backed Securities		12			11
US Treasury Obligations		7			15
Asset-Backed Securities		5			4
Preferred Securities		3			2
Taxable Municipal Bonds		2			2
Foreign Agency Obligations		—			1

Credit Quality Allocation⁴

	2/28/13			8/31/12
AAA/Aaa5		26	%		37	%
AA/Aa		3			3
A		22			19
BBB/Baa		24			23
BB/Ba		11			6
B		11			9
CCC/Caa		3			2
Not Rated		—			1

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

⁵ Includes US Government Sponsored Agency Securities, which were deemed AAA/Aaa by the investment advisor.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 15

Trust Summary as of February 28, 2013 BlackRock Income Trust, Inc.

Trust Overview

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

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

Portfolio Management Commentary

How did the Trust perform?

• For the six-month period ended February 28, 2013, the Trust returned (3.47)% based on market price and (0.60)% based on NAV. For the same period, the closed-end Lipper US Mortgage Funds category posted an average return of 5.02% based on market price and 6.93% based on NAV. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.

What factors influenced performance?

• The Trust’s focus on high quality agency mortgage-backed securities (“MBS”) detracted from returns as the sector lagged other credit-sensitive fixed income assets during a period of rising interest rates. It should be noted that the Lipper US Mortgage Funds category experienced a wide dispersion of returns primarily determined by the extent to which a fund allocated to non-agency residential MBS.

• Also detracting from performance during the period was the Trust’s yield curve positioning. Exposure to the long end of the US Treasury curve hurt returns as the yield curve steepened and interest rates moved higher in early 2013.

• Contributing positively to performance was the Trust’s leveraged exposure to agency pass-through MBS, despite uncertainty around how long the US Federal Reserve would maintain its accommodative monetary policy programs. Further enhancing performance was the Trust’s positioning within the agency MBS coupon range, where heavier weightings in middle- and high-coupon issues proved beneficial. Higher coupons outperformed as rising interest rates led to reduced prepayment risk, making these issues more appealing to mortgage market participants.

• The Trust uses interest rate derivatives including futures, options, swaps and swaptions, mainly for the purpose of managing duration, convexity and yield curve positioning. During the period, the Trust held short positions in US Treasury futures in order to reduce the overall duration profile of the portfolio. These positions were beneficial to the Trust’s performance during certain periods of rising interest rates.

Describe recent portfolio activity.

• During the six-month period, the economy continued to show signs of growth despite higher tax rates and reduced government spending. As the economy’s resilience coupled with an improving housing market could cause interest rates to gradually move higher, the Trust increased exposure to agency MBS while reducing its strategic exposure to long-term US Treasuries.

• The Trust maintained a strong level of yield by increasing exposure to stable-cash-flow collateralized mortgage obligations (“CMOs”), which tend to outperform pass-through agency MBS in a rising interest rate environment. The Trust also continued to maintain small allocations to commercial mortgage-backed securities (“CMBS”) and non-agency residential MBS, which have performed well primarily due to improving underlying fundamentals.

Describe portfolio positioning at period end.

• Despite higher prices in agency MBS, the backdrop for the sector continued to appear constructive given the presence of the US Federal Reserve’s large asset purchase program, which has the effect of limiting net supply and is supportive of valuations. However, the Trust continued to maintain a cautious stance as prepayment risk for higher-coupon agency MBS still remains high as borrowers organically take advantage of historically low mortgage rates. As of period end, the Trust maintained leveraged exposure to high quality agency MBS with varying maturities and coupon rates. The Trust continued to hold positions in intermediate and longer dated stable-cash-flow CMOs as well as small allocations to non-agency MBS and CMBS.

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

16 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

BlackRock Income Trust, Inc.

Trust Information

Symbol on NYSE	BKT
Initial Offering Date	July 22, 1988
Yield on Closing Market Price as of February 28, 2013 ($7.13)1	6.82%
Current Monthly Distribution per Common Share2	$0.0405
Current Annualized Distribution per Common Share2	$0.4860
Economic Leverage as of February 28, 20133	30%

¹ Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

² The distribution rate is not constant and is subject to change.

³ Represents reverse repurchase agreements outstanding as a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to borrowings) minus the sum of liabilities (other than borrowings representing financial leverage). For a discussion of leveraging techniques utilized by the Trust, please see the Benefits and Risks of Leveraging on page 20.

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

	2/28/13		8/31/12		Change			High		Low
Market Price	$	7.13	$	7.63		(6.55	)%	$	7.74	$	7.07
Net Asset Value	$	7.64	$	7.94		(3.78	)%	$	7.96	$	7.63

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

Portfolio Composition

	2/28/13			8/31/12
US Government Sponsored Agency Securities		96	%		86	%
US Treasury Obligations		2			11
Non-Agency Mortgage-Backed Securities		1			2
Asset-Backed Securities		1			1

Credit Quality Allocation⁴

	2/28/13			8/31/12
AAA/Aaa5		100	%		100	%

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

⁵ Includes US Government Sponsored Agency Securities, which were deemed AAA/Aaa by the investment advisor.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 17

Trust Summary as of February 28, 2013 BlackRock Strategic Bond Trust

Trust Overview

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

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

Portfolio Management Commentary

How did the Trust perform?

• For the six-month period ended February 28, 2013, the Trust returned 7.60% based on market price and 6.12% 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 Trust’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 within investment-grade credits had a positive impact on performance. From an industry perspective, holdings within gaming, non-captive diversified (consumer credit-related businesses) and wirelines boosted returns. The Trust’s exposure to select equity positions also enhanced results.

• Detracting from performance was security selection within middle quality tier credits, where the Trust held its quality bias. On an industry basis, selection in metals, paper and wireless impaired results. The Trust’s tactical allocation to floating rate loan interests (bank loans) hindered relative performance as the asset class underperformed high yield bonds during the period.

Describe recent portfolio activity.

• The Trust maintained its focus on higher-quality income-oriented credit names with stable fundamentals, good earnings/revenue visibility and an attractive coupon rate. The Trust remained generally cautious of cyclical credits that tend to be more vulnerable to slower economic growth and bouts of weakness, but allowed some risk in companies with positive growth catalysts or idiosyncratic characteristics. Also during the period, the Trust increased exposure to floating rate loan interests as valuations appeared increasingly attractive relative to certain segments of the high yield universe such as higher-quality short-dated paper.

Describe portfolio positioning at period end.

• At period end, the Trust held 79% of its total portfolio in corporate bonds and 19% in floating rate loan interests, with the remainder in preferred securities and US treasury obligations. The Trust held its largest industry exposures in healthcare, media non-cable and wireless, while reflecting less emphasis on the riskier, more volatile segments of the market such as the supermarkets and restaurants industries.

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

18 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

BlackRock Strategic Bond Trust

Trust Information

Symbol on NYSE	BHD
Initial Offering Date	February 26, 2002
Yield on Closing Market Price as of February 28, 2013 ($15.09)1	6.72%
Current Monthly Distribution per Common Share2	$0.0845
Current Annualized Distribution per Common Share2	$1.0140
Economic Leverage as of February 28, 20133	21%

¹ Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

² The distribution rate is not constant and is subject to change.

³ Represents loan outstanding as a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to borrowings) minus the sum of liabilities (other than borrowings representing financial leverage). For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 20.

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

	2/28/13		8/31/12		Change			High		Low
Market Price	$	15.09	$	14.52		3.93	%	$	16.01	$	13.25
Net Asset Value	$	14.76	$	14.40		2.50	%	$	14.89	$	14.40

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

Portfolio Composition

	2/28/13			8/31/12
Corporate Bonds		79	%		79	%
Floating Rate Loan Interests		19			17
Preferred Securities		1			2
US Treasury Obligations		1			1
Common Stocks		—			1

Credit Quality Allocation⁴

	2/28/13			8/31/12
AAA/Aaa		1	%		—
AA/Aa		1			1	%
A		14			12
BBB/Baa		19			21
BB/Ba		28			26
B		32			32
CCC/Caa		4			7
Not Rated		1			1

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

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 19

The Benefits and Risks of Leveraging

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

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

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

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

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

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

The use of leverage may enhance opportunities for increased income to the Trusts, but as described above, it also creates risks as short- or long-term interest rates fluctuate. Leverage also will generally cause greater changes in the Trusts’ NAVs, market prices and dividend rates than comparable portfolios without leverage. If the income derived from securities purchased with assets received from leverage exceeds the cost of leverage, the Trusts’ net income will be greater than if leverage had not been used. Conversely, if the income from the securities purchased is not sufficient to cover the cost of leverage, each Trust’s net income will be less than if leverage had not been used, and therefore the amount available for distribution to shareholders will be reduced. Each Trust may be required to sell portfolio securities at inopportune times or at distressed values in order to comply with regulatory requirements applicable to the use of leverage or as required by the terms of leverage instruments, which may cause a Trust to incur losses. The use of leverage may limit each Trust’s ability to invest in certain types of securities or use certain types of hedging strategies. Each Trust will incur expenses in connection with the use of leverage, all of which are borne by shareholders and may reduce income.

Under the Investment Company Act of 1940, as amended (the “1940 Act”), the Trusts are permitted to issue senior securities representing indebtedness up to 33¹⁄3% of their total managed assets (each Trust’s net assets plus the proceeds of any outstanding borrowings). If the Trusts segregate liquid assets having a value not less than the repurchase price (including accrued interest), a reverse repurchase agreement will not be considered a senior security and therefore will not be subject to this limitation. In addition, each Trust voluntarily limits its aggregate economic leverage to 50% of its managed assets. As of February 28, 2013, the Trusts had aggregate economic leverage from reverse repurchase agreements, treasury roll transactions and/or borrowings through a credit facility as a percentage of their total managed assets as follows:

	Percent of Economic Leverage
BHK		31	%
HYV		29	%
HYT		28	%
HIS		26	%
BHY		27	%
BNA		31	%
BKT		30	%
BHD		21	%

Derivative Financial Instruments

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

20 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

Schedule of Investments February 28, 2013 (Unaudited) BlackRock Core Bond Trust (BHK)
(Percentages shown are based on Net Assets)

Asset-Backed Securities		Par (000)			Value
Asset-Backed Securities — 8.1%
321 Henderson Receivables I LLC, Series 2010-3A, Class A, 3.82%, 12/15/48 (a)	USD		719	��	$	779,656
ACAS CLO Ltd., Series 2013-1A, Class C, 3.04%, 4/20/25 (a)(b)(c)			500			487,800
AH Mortgage Advance Co. Ltd., Series SART-3, Class 1A1, 2.98%, 3/13/43 (a)			630			631,104
AmeriCredit Automobile Receivables Trust, Series 2011-5, Class C, 3.44%, 10/08/17			400			419,704
Apidos CDO, Series 2012-11A, Class D, 4.74%, 1/17/23 (a)(b)			600			600,900
Atrium CDO Corp., Series 9A, Class D, 3.96%, 2/28/24 (a)(b)			500			483,500
CarMax Auto Owner Trust, Series 2012-1:
Class B, 1.76%, 8/15/17			210			214,781
Class C, 2.20%, 10/16/17			125			127,980
Class D, 3.09%, 8/15/18			155			160,475
Cavalry CLO Ltd., Series 2A (a)(b):
Class C, 3.23%, 1/17/24			1,035			1,014,300
Class D, 4.38%, 1/17/24			770			749,595
CenterPoint Energy Transition Bond Co. LLC, Series 2012-1, Class A3, 3.03%, 10/15/25			1,105			1,165,103
CIFC Funding Ltd. (a)(b):
Series 2012-1A, Class B1L, 5.54%, 8/14/24			750			757,500
Series 2013-1A, Class B, 3.10%, 4/16/25 (c)			500			493,750
Series 2013-1A, Class C, 3.89%, 4/16/25 (c)			500			486,500
Countrywide Asset-Backed Certificates, Series 2006-13, Class 3AV2, 0.35%, 1/25/37 (b)			1,039			897,095
Credit Acceptance Auto Loan Trust, Series 2010-1, Class B, 3.63%, 10/15/18 (a)			1,980			1,991,739
DT Auto Owner Trust (a):
Series 2011-2A, Class C, 3.05%, 2/16/16			1,500			1,504,674
Series 2011-3A, Class C, 4.03%, 2/15/17			255			259,733
Duane Street CLO IV Ltd., Series 2007-4A, Class D, 2.54%, 11/14/21 (a)(b)			500			445,000
Figueroa CLO Ltd., Series 2013-1A, Class C, 3.94%, 3/21/24 (a)(b)(c)			500			477,500
Ford Credit Floorplan Master Owner Trust:
Series 2012-1, Class B, 1.10%, 1/15/16 (b)			180			180,720
Series 2012-1, Class C, 1.70%, 1/15/16 (b)			475			478,373
Series 2012-1, Class D, 2.30%, 1/15/16 (b)			445			447,953
Series 2012-2, Class B, 2.32%, 1/15/19			245			252,913
Series 2012-2, Class C, 2.86%, 1/15/19			105			110,368
Series 2012-2, Class D, 3.50%, 1/15/19			200			211,127
Galaxy CLO Ltd., Series 2013-15A, Class C, 2.89%, 4/15/25 (a)(b)(c)			500			490,510
Home Equity Asset Trust, Series 2007-2, Class 2A1, 0.31%, 7/25/37 (b)			36			36,026
Mountain Hawk I CLO Ltd., Series 2013-1A, Class C, 3.12%, 1/20/24 (a)(b)			750			723,750
Nelnet Student Loan Trust (b):
Series 2006-1, Class A5, 0.40%, 8/23/27			525			514,436
Series 2008-3, Class A4, 1.94%, 11/25/24			615			654,947
OZLM Funding Ltd., Series 2013-3A (a)(b):
Class B, 3.35%, 1/22/25			750			754,725
Class C, 4.15%, 1/22/25			500			488,850

Asset-Backed Securities		Par (000)		Value
Asset-Backed Securities (concluded)
PFS Financing Corp., Series 2012-AA, Class A, 1.40%, 2/15/16 (a)(b)	USD		480	$	483,831
Santander Consumer Acquired Receivables Trust (a):
Series 2011-S1A, Class B, 1.66%, 8/15/16			460		463,693
Series 2011-S1A, Class C, 2.01%, 8/15/16			311		314,223
Series 2011-S1A, Class D, 3.15%, 8/15/16			325		330,281
Series 2011-WO, Class C, 3.19%, 10/15/15			580		596,183
Santander Drive Auto Receivables Trust:
Series 2010-2, Class B, 2.24%, 12/15/14			777		780,844
Series 2010-2, Class C, 3.89%, 7/17/17			1,010		1,044,275
Series 2010-B, Class B, 2.10%, 9/15/14 (a)			419		419,672
Series 2010-B, Class C, 3.02%, 10/17/16 (a)			740		752,697
Series 2011-1, Class D, 4.01%, 2/15/17			940		988,523
Series 2011-S1A, Class B, 1.48%, 5/15/17 (a)			197		198,187
Series 2011-S1A, Class D, 3.10%, 5/15/17 (a)			175		175,521
Series 2011-S2A, Class C, 2.86%, 6/15/17 (a)			511		515,497
Series 2012-1, Class B, 2.72%, 5/16/16			240		246,372
Series 2012-1, Class C, 3.78%, 11/15/17			325		341,443
SLM Student Loan Trust:
Series 2004-B, Class A2, 0.51%, 6/15/21 (b)			171		167,923
Series 2008-5, Class A3, 1.60%, 1/25/18 (b)			515		524,047
Series 2008-5, Class A4, 2.00%, 7/25/23 (b)			615		648,482
Series 2012-A, Class A1, 1.60%, 8/15/25 (a)(b)			296		300,469
Series 2012-A, Class A2, 3.83%, 1/17/45 (a)			345		378,332
Small Business Administration, Class 1:
Series 2003-P10B, 5.14%, 8/10/13			56		57,379
Series 2004-P10B, 4.75%, 8/10/14			96		98,780
Structured Asset Securities Corp., Series 2002-AL1, Class A2, 3.45%, 2/25/32			1,219		1,219,733
Symphony CLO VII Ltd., Series 2011-7A, Class E, 3.90%, 7/28/21 (a)(b)			750		727,500
Venture CDO Ltd., Series 2012-12A, Class D, 4.01%, 2/28/24 (a)(b)			770		723,800
World Financial Network Credit Card Master Trust, Series 2012-C, Class C, 4.55%, 8/15/22			1,180		1,286,930
					33,277,704
Interest Only Asset-Backed Securities — 0.2%
Sterling Bank Trust, Series 2004-2, Class Note, 2.08%, 3/30/30 (a)			3,590		277,179
Sterling Coofs Trust, Series 2004-1, 2.36%, 4/15/29 (a)			5,591		408,845
					686,024
Total Asset-Backed Securities — 8.3%					33,963,728
Common Stocks (d)			Shares
Paper & Forest Products — 0.1%
NewPage Corp.			1,720		146,200
Software — 0.0%
Bankruptcy Management Solutions, Inc.			135		1
Total Common Stocks — 0.1%					146,201

Portfolio Abbreviations

To simplify the listings of portfolio holdings in the Schedules of Investments, the names and descriptions of many of the securities have been abbreviated according to the following list:	AUD	Australian Dollar	FKA	Formerly Known As
	CAD	Canadian Dollar	FNMA	Federal National Mortgage Association
	DIP	Debtor-In-Possession	GBP	British Pound
	EBITDA	Earnings Before Interest, Taxes, Depreciation and Amortization	GO	General Obligation Bonds
	EUR	Euro	LIBOR	London Interbank Offered Rate
	EURIBOR	Euro Interbank Offered Rate	RB	Revenue Bonds
			TBA	To Be Announced
			USD	US Dollar

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 21

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

Corporate Bonds		Par (000)		Value
Aerospace & Defense — 0.7%
Bombardier, Inc., 4.25%, 1/15/16 (a)	USD		335	$	347,563
Huntington Ingalls Industries, Inc., 7.13%, 3/15/21			230		250,700
United Technologies Corp. (e):
4.88%, 5/01/15			1,125		1,230,691
6.13%, 7/15/38			700		909,242
					2,738,196
Airlines — 0.7%
Continental Airlines Pass-Through Trust:
Series 2010-1, Class B, 6.00%, 1/12/19			571		588,248
Series 2012-3, Class C, 6.13%, 4/29/18			500		498,750
US Airways Pass-Through Trust, Series 2012-1, Class C, 9.13%, 10/01/15			1,553		1,661,710
					2,748,708
Auto Components — 1.1%
Icahn Enterprises LP (b)(f):
4.00%, 8/15/13			1,455		1,458,637
4.00%, 8/15/13 (a)			2,900		2,907,250
					4,365,887
Automobiles — 0.5%
Ford Motor Co., 4.75%, 1/15/43			1,995		1,894,813
Beverages — 0.1%
Crown European Holdings SA, 7.13%, 8/15/18 (a)	EUR		287		405,605
Building Products — 0.1%
Momentive Performance Materials, Inc., 8.88%, 10/15/20	USD		255		261,694
Capital Markets — 3.8%
CDP Financial, Inc., 5.60%, 11/25/39 (a)(e)			2,935		3,559,768
The Goldman Sachs Group, Inc.:
5.38%, 3/15/20			1,220		1,402,524
5.25%, 7/27/21 (e)			3,165		3,602,254
5.75%, 1/24/22 (e)			1,800		2,111,742
Morgan Stanley:
4.20%, 11/20/14			490		513,514
4.00%, 7/24/15			410		432,664
6.25%, 8/28/17 (e)			1,930		2,239,229
Murray Street Investment Trust I, 4.65%, 3/09/17 (g)			1,650		1,806,722
					15,668,417
Chemicals — 1.7%
Axiall Corp., 4.88%, 5/15/23 (a)			248		251,720
The Dow Chemical Co., 4.13%, 11/15/21			350		378,147
Eagle Spinco, Inc., 4.63%, 2/15/21 (a)			527		535,564
Huntsman International LLC, 4.88%, 11/15/20 (a)			727		719,730
Methanex Corp., 3.25%, 12/15/19			2,074		2,107,825
Nufarm Australia Ltd., 6.38%, 10/15/19 (a)			245		259,700
Rockwood Specialties Group, Inc., 4.63%, 10/15/20			1,390		1,438,650
Tronox Finance LLC, 6.38%, 8/15/20 (a)			991		984,806
US Coatings Acquisition, Inc./Flash Dutch 2 BV, 7.38%, 5/01/21 (a)			151		156,285
					6,832,427
Commercial Banks — 3.0%
CIT Group, Inc.:
5.38%, 5/15/20			1,650		1,798,500
5.00%, 8/15/22			360		385,200
Depfa ACS Bank, 5.13%, 3/16/37 (a)			3,775		3,086,063
HSBC Bank Brasil SA—Banco Multiplo, 4.00%, 5/11/16 (a)			1,400		1,456,000
HSBC Bank Plc, 3.10%, 5/24/16 (a)(e)			700		743,324
HSBC Holdings Plc, 6.10%, 1/14/42 (e)			305		392,960
Rabobank Nederland (e):
3.88%, 2/08/22			1,390		1,476,819
3.95%, 11/09/22			1,500		1,524,342
Wells Fargo & Co., 3.50%, 3/08/22 (e)			1,390		1,466,087
					12,329,295
Corporate Bonds		Par (000)		Value
Commercial Services & Supplies — 0.7%
ADS Waste Holdings, Inc., 8.25%, 10/01/20 (a)	USD		246	$	264,450
The ADT Corp., 4.88%, 7/15/42 (a)			539		513,286
Aviation Capital Group Corp., 4.63%, 1/31/18 (a)			650		660,118
Clean Harbors, Inc., 5.25%, 8/01/20			391		402,730
HDTFS, Inc. (a):
5.88%, 10/15/20			230		239,200
6.25%, 10/15/22			385		413,875
Mobile Mini, Inc., 7.88%, 12/01/20			320		356,000
					2,849,659
Communications Equipment — 1.2%
ADC Telecommunications, Inc., 3.50%, 7/15/15 (f)			4,330		4,332,165
Zayo Group LLC/Zayo Capital, Inc., 8.13%, 1/01/20			530		592,275
					4,924,440
Construction & Engineering — 0.0%
ABB Finance USA, Inc., 4.38%, 5/08/42			192		201,667
Construction Materials — 0.6%
HD Supply, Inc. (a):
8.13%, 4/15/19			570		641,962
7.50%, 7/15/20			1,544		1,545,930
11.50%, 7/15/20			255		293,888
Lafarge SA, 7.13%, 7/15/36			135		141,075
					2,622,855
Consumer Finance — 1.1%
Discover Financial Services, 3.85%, 11/21/22 (a)			250		255,733
Ford Motor Credit Co. LLC:
8.13%, 1/15/20			1,265		1,593,667
4.25%, 9/20/22			800		824,824
SLM Corp.:
6.25%, 1/25/16			661		715,533
Series A, 0.60%, 1/27/14 (b)			550		546,015
Toll Brothers Finance Corp., 5.88%, 2/15/22			345		384,940
					4,320,712
Containers & Packaging — 1.1%
Ardagh Packaging Finance Plc (a):
7.38%, 10/15/17	EUR		425		602,022
7.38%, 10/15/17	USD		200		217,750
4.88%, 11/15/22			209		205,865
Crown Americas LLC/Crown Americas Capital Corp. III, 6.25%, 2/01/21			61		66,490
Crown Americas LLC/Crown Americas Capital Corp. IV, 4.50%, 1/15/23 (a)			662		647,105
Sealed Air Corp. (a):
6.50%, 12/01/20			550		598,125
8.38%, 9/15/21			225		256,500
Smurfit Kappa Acquisitions (a):
7.25%, 11/15/17	EUR		725		1,008,047
4.88%, 9/15/18	USD		410		420,250
7.75%, 11/15/19	EUR		410		587,465
					4,609,619
Diversified Consumer Services — 0.5%
313 Group, Inc., 6.38%, 12/01/19 (a)	USD		636		620,100
Service Corp. International, 4.50%, 11/15/20			1,243		1,238,339
					1,858,439
Diversified Financial Services — 7.6%
Aircastle Ltd., 6.25%, 12/01/19			708		762,870
Ally Financial, Inc.:
8.30%, 2/12/15			1,500		1,668,750
5.50%, 2/15/17			1,500		1,626,261
6.25%, 12/01/17			160		178,681
8.00%, 3/15/20			560		687,400
8.00%, 11/01/31			300		376,875
Bank of America Corp. (e):
5.63%, 7/01/20			1,100		1,287,086
3.30%, 1/11/23			4,990		4,974,052
Capital One Financial Corp., 4.75%, 7/15/21			960		1,092,672

See Notes to Financial Statements.

22 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

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

Corporate Bonds		Par (000)		Value
Diversified Financial Services (concluded)
FMR LLC, 4.95%, 2/01/33 (a)(e)	USD		1,150	$	1,167,765
General Electric Capital Corp. (e):
6.15%, 8/07/37			2,150		2,611,308
6.88%, 1/10/39			135		177,972
JPMorgan Chase & Co.:						��
3.70%, 1/20/15			3,425		3,606,957
6.30%, 4/23/19 (e)			2,000		2,449,740
JPMorgan Chase Bank NA, 6.00%, 10/01/17 (e)			2,050		2,427,040
Moody’s Corp., 4.50%, 9/01/22			900		904,224
Reynolds Group Issuer, Inc.:
7.88%, 8/15/19			560		618,800
5.75%, 10/15/20			1,000		1,032,500
6.88%, 2/15/21			680		725,900
Spirit Issuer Plc, 5.86%, 12/28/21	GBP		1,620		2,371,604
WMG Acquisition Corp., 11.50%, 10/01/18	USD		562		652,623
					31,401,080
Diversified Telecommunication Services — 2.3%
Level 3 Financing, Inc.:
8.13%, 7/01/19			698		760,820
8.63%, 7/15/20			650		721,500
Lynx I Corp., 5.38%, 4/15/21 (a)			395		404,875
Telecom Italia Capital SA:
4.95%, 9/30/14			1,075		1,112,625
6.00%, 9/30/34			1,550		1,420,790
Verizon Communications, Inc. (e):
3.50%, 11/01/21			500		525,624
6.40%, 2/15/38			3,483		4,378,438
Windstream Corp., 7.88%, 11/01/17			40		45,300
					9,369,972
Electric Utilities — 6.1%
The Cleveland Electric Illuminating Co.:
8.88%, 11/15/18			121		161,303
5.95%, 12/15/36			217		246,849
CMS Energy Corp., 5.05%, 3/15/22			915		1,029,661
Duke Energy Carolinas LLC:
6.10%, 6/01/37			315		398,262
6.00%, 1/15/38 (e)			825		1,059,048
4.25%, 12/15/41 (e)			375		393,690
E.ON International Finance BV, 6.65%, 4/30/38 (a)(e)			1,525		2,042,539
Electricite de France SA, 5.60%, 1/27/40 (a)(e)			1,400		1,582,339
Florida Power Corp. (e):
6.35%, 9/15/37			1,325		1,744,352
6.40%, 6/15/38			430		574,148
Hydro-Quebec (e):
9.40%, 2/01/21			390		582,362
8.40%, 1/15/22			730		1,043,297
8.05%, 7/07/24			1,900		2,773,230
Jersey Central Power & Light Co., 7.35%, 2/01/19			245		313,698
Nisource Finance Corp.:
6.40%, 3/15/18			280		336,096
5.25%, 2/15/43			500		530,513
Ohio Power Co., Series D, 6.60%, 3/01/33			1,500		1,933,883
PacifiCorp., 6.25%, 10/15/37 (e)			575		770,007
Public Service Co. of Colorado, 6.25%, 9/01/37 (e)			1,200		1,617,247
Southern California Edison Co. (e):
5.63%, 2/01/36			625		775,524
Series 08-A, 5.95%, 2/01/38			1,075		1,395,897
The Tokyo Electric Power Co., Inc., 4.50%, 3/24/14 (e)	EUR		1,000		1,333,358
Virginia Electric and Power Co., Series A, 6.00%, 5/15/37 (e)	USD		2,000		2,613,318
					25,250,621
Electrical Equipment — 0.1%
GrafTech International Ltd., 6.38%, 11/15/20 (a)			580		616,250
Corporate Bonds		Par (000)		Value
Energy Equipment & Services — 3.0%
Calfrac Holdings LP, 7.50%, 12/01/20 (a)(e)	USD		565	$	567,825
Ensco Plc:
3.25%, 3/15/16			160		170,029
4.70%, 3/15/21			1,745		1,952,852
EOG Resources, Inc., 2.63%, 3/15/23 (e)			1,902		1,886,556
FTS International Services LLC/FTS International Bonds, Inc., 8.13%, 11/15/18 (a)			807		835,245
Genesis Energy LP, 5.75%, 2/15/21 (a)			236		244,260
Noble Holding International Ltd., 5.25%, 3/15/42			350		353,231
Peabody Energy Corp.:
6.00%, 11/15/18			429		455,812
6.25%, 11/15/21			2,171		2,257,840
Seadrill Ltd., 5.63%, 9/15/17 (a)			1,590		1,609,875
Tervita Corp., 8.00%, 11/15/18 (a)			516		531,480
Transocean, Inc.:
5.05%, 12/15/16			850		946,873
6.50%, 11/15/20			350		407,990
					12,219,868
Food Products — 1.4%
Darling International, Inc., 8.50%, 12/15/18			335		381,063
Kraft Foods Group, Inc.:
5.38%, 2/10/20			1,570		1,874,520
5.00%, 6/04/42			997		1,088,216
Mondelez International, Inc. (FKA Kraft Foods, Inc.), 5.38%, 2/10/20			1,430		1,705,346
Post Holdings, Inc., 7.38%, 2/15/22			749		808,920
					5,858,065
Gas Utilities — 0.5%
CenterPoint Energy Resources Corp., 5.85%, 1/15/41			1,600		1,982,877
Health Care Equipment & Supplies — 0.7%
Boston Scientific Corp., 6.25%, 11/15/15			1,251		1,407,734
DJO Finance LLC, 7.75%, 4/15/18			735		731,325
Fresenius Medical Care US Finance II, Inc., 5.63%, 7/31/19 (a)			152		164,540
Teleflex, Inc., 6.88%, 6/01/19			385		418,688
					2,722,287
Health Care Providers & Services — 4.3%
Aviv Healthcare Properties LP, 7.75%, 2/15/19			175		187,688
CHS/Community Health Systems, Inc., 5.13%, 8/15/18			400		420,500
ConvaTec Healthcare E SA, 7.38%, 12/15/17 (a)	EUR		494		683,638
HCA, Inc.:
6.50%, 2/15/20	USD		1,990		2,228,800
7.88%, 2/15/20			205		227,294
7.25%, 9/15/20			900		999,000
4.75%, 5/01/23			1,289		1,285,777
IASIS Healthcare LLC, 8.38%, 5/15/19			550		566,500
INC Research LLC, 11.50%, 7/15/19 (a)			465		496,387
inVentiv Health, Inc. (a):
9.00%, 1/15/18			310		323,175
11.00%, 8/15/18			40		34,700
Omnicare, Inc., 7.75%, 6/01/20			805		893,550
Symbion, Inc., 8.00%, 6/15/16			455		475,475
Tenet Healthcare Corp.:
6.25%, 11/01/18			769		851,667
8.88%, 7/01/19			1,150		1,299,500
4.50%, 4/01/21 (a)			588		579,915
UnitedHealth Group, Inc., 2.88%, 3/15/22 (e)			2,000		2,019,720
WellPoint, Inc., 4.65%, 1/15/43 (e)			4,005		4,050,425
					17,623,711

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 23

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

Corporate Bonds			Par (000)		Value
Health Care Technology — 0.6%
Amgen, Inc. (e):
6.40%, 2/01/39	USD			750	$	948,013
5.15%, 11/15/41				1,500		1,642,570
						2,590,583
Hotels, Restaurants & Leisure — 1.7%
Caesars Operating Escrow LLC, 9.00%, 2/15/20 (a)				398		393,025
El Dorado Resorts LLC, 8.63%, 6/15/19 (a)				180		178,875
MCE Finance Ltd., 5.00%, 2/15/21 (a)				935		935,000
Six Flags Entertainment Corp., 5.25%, 1/15/21 (a)				865		847,700
The Unique Pub Finance Co. Plc:
Series A3, 6.54%, 3/30/21	GBP			900		1,361,931
Series A4, 5.66%, 6/30/27				1,327		1,867,174
Series N, 6.46%, 3/30/32				1,195		1,350,592
						6,934,297
Household Durables — 0.8%
Beazer Homes USA, Inc., 6.63%, 4/15/18	USD			580		619,875
Standard Pacific Corp., 10.75%, 9/15/16				2,100		2,614,500
United Rentals North America, Inc., 5.75%, 7/15/18				194		208,792
						3,443,167
Household Products — 0.2%
Ontex IV SA, 7.50%, 4/15/18 (a)	EUR			190		257,977
Spectrum Brands Escrow Corp. (a):
6.38%, 11/15/20	USD			200		212,750
6.63%, 11/15/22				275		296,312
						767,039
Independent Power Producers & Energy Traders — 0.8%
Calpine Corp., 7.50%, 2/15/21 (a)				157		170,737
Energy Future Intermediate Holding Co. LLC:
10.00%, 12/01/20				922		1,046,470
10.00%, 12/01/20 (a)				890		1,003,475
GenOn REMA LLC, Series C, 9.68%, 7/02/26				415		452,350
NRG Energy, Inc., 6.63%, 3/15/23 (a)				435		463,275
						3,136,307
Industrial Conglomerates — 0.0%
Smiths Group Plc, 3.63%, 10/12/22 (a)				180		178,797
Insurance — 4.5%
Alliant Holdings I, Inc., 7.88%, 12/15/20 (a)				613		616,065
Allianz Finance II BV, 5.75%, 7/08/41	EUR			500		733,220
American International Group, Inc. (e):
3.80%, 3/22/17	USD			5,580		6,058,747
5.45%, 5/18/17				800		917,591
AXA SA, 5.25%, 4/16/40	EUR			250		338,835
Hartford Financial Services Group, Inc.:
6.00%, 1/15/19	USD			345		407,716
5.13%, 4/15/22				930		1,071,440
Hartford Life Global Funding Trusts, 0.49%, 6/16/14 (b)				425		424,730
Liberty Mutual Group, Inc., 6.50%, 5/01/42 (a)				1,000		1,135,115
Lincoln National Corp., 6.25%, 2/15/20				630		764,436
Manulife Financial Corp., 3.40%, 9/17/15				1,630		1,715,528
MetLife Global Funding I, 5.13%, 6/10/14 (a)(e)				775		819,711
Montpelier Re Holdings Ltd., 4.70%, 10/15/22				450		453,858
MPL 2 Acquisition Canco, Inc., 9.88%, 8/15/18 (a)				340		336,600
Muenchener Rueckversicherungs AG, 6.00%, 5/26/41 (b)	EUR			200		302,077
Prudential Financial, Inc. (e):
7.38%, 6/15/19	USD			250		320,523
5.38%, 6/21/20				250		294,761
4.50%, 11/15/20				450		504,328
5.90%, 3/17/36				500		579,371
5.70%, 12/14/36				675		770,128
						18,564,780
Corporate Bonds			Par (000)		Value
Internet Software & Services — 0.0%
Equinix, Inc., 4.88%, 4/01/20	USD			86	$	86,000
IT Services — 0.7%
First Data Corp. (a):
7.38%, 6/15/19				775		814,719
6.75%, 11/01/20				680		697,850
8.25%, 1/15/21				30		30,675
SunGard Data Systems, Inc., 7.38%, 11/15/18				1,080		1,159,650
						2,702,894
Life Sciences Tools & Services — 0.1%
Agilent Technologies, Inc., 3.20%, 10/01/22				250		249,832
Machinery — 0.3%
UR Merger Sub Corp.:
7.38%, 5/15/20				495		542,025
7.63%, 4/15/22				452		500,590
						1,042,615
Marine — 0.3%
Nakilat, Inc., Series A, 6.07%, 12/31/33 (a)(e)		��		1,050		1,275,750
Media — 6.6%
Affinion Group, Inc., 7.88%, 12/15/18 (e)				507		385,320
AMC Networks, Inc.:
7.75%, 7/15/21				320		363,200
4.75%, 12/15/22				343		341,714
Cinemark USA, Inc., 5.13%, 12/15/22 (a)				175		175,875
Clear Channel Communications, Inc., 9.00%, 12/15/19 (a)				305		283,650
Clear Channel Worldwide Holdings, Inc. (a):
6.50%, 11/15/22				674		704,330
6.50%, 11/15/22				1,821		1,916,603
Comcast Cable Communications Holdings, Inc., 9.46%, 11/15/22				600		910,124
Comcast Corp., 6.45%, 3/15/37				790		1,013,708
Cox Communications, Inc., 8.38%, 3/01/39 (a)				1,740		2,569,510
DIRECTV Holdings LLC:
6.38%, 3/01/41				260		285,254
5.15%, 3/15/42				2,100		2,021,063
Intelsat Luxembourg SA:
11.25%, 2/04/17				750		796,875
11.50%, 2/04/17				415		441,456
Interactive Data Corp., 10.25%, 8/01/18				1,330		1,507,888
NBC Universal Media LLC (e):
5.15%, 4/30/20				1,983		2,354,009
4.38%, 4/01/21				1,015		1,143,202
The New York Times Co., 6.63%, 12/15/16				1,800		1,966,500
News America, Inc., 7.63%, 11/30/28				385		504,734
Omnicom Group, Inc., 3.63%, 5/01/22				2,355		2,398,544
TCI Communications, Inc., 7.88%, 2/15/26				610		841,889
Time Warner Cable, Inc.:
7.30%, 7/01/38				930		1,164,988
5.88%, 11/15/40				465		499,450
5.50%, 9/01/41				920		963,869
Time Warner, Inc.:
4.70%, 1/15/21				350		392,996
6.10%, 7/15/40				215		251,539
Unitymedia Hessen GmbH & Co. KG, 5.50%, 1/15/23 (a)				255		257,550
Virgin Media Secured Finance Plc, 6.50%, 1/15/18				525		560,438
						27,016,278
Metals & Mining — 4.3%
Alcoa, Inc., 5.40%, 4/15/21				1,450		1,523,909
ArcelorMittal:
9.50%, 2/15/15				410		462,788
4.25%, 2/25/15				174		179,660
4.25%, 8/05/15				233		241,235
4.25%, 3/01/16				175		180,250
5.00%, 2/25/17				243		252,842

See Notes to Financial Statements.

24 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

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

Corporate Bonds			Par (000)		Value
Metals & Mining (concluded)
ArcelorMittal (concluded):
6.13%, 6/01/18		USD		313	$	337,507
6.75%, 2/25/22 (e)				252		277,479
Barrick Gold Corp., 2.90%, 5/30/16				1,690		1,775,507
Corp. Nacional del Cobre de Chile, 3.00%, 7/17/22 (a)				1,565		1,543,799
Falconbridge Ltd., 6.20%, 6/15/35				1,250		1,361,800
Freeport-McMoRan Copper & Gold, Inc.:
3.55%, 3/01/22				540		537,202
5.45%, 3/15/43 (a)				450		447,948
New Gold, Inc. (a):
7.00%, 4/15/20				105		113,400
6.25%, 11/15/22				440		463,100
New World Resources NV, 7.88%, 5/01/18		EUR		165		220,904
Newcrest Finance Property Ltd., 4.45%, 11/15/21 (a)		USD		475		504,598
Novelis, Inc., 8.75%, 12/15/20				4,120		4,614,400
Teck Resources Ltd., 5.38%, 10/01/15				2,359		2,598,979
						17,637,307
Multiline Retail — 0.3%
Dufry Finance SCA, 5.50%, 10/15/20 (a)				1,260		1,313,550
Oil, Gas & Consumable Fuels — 11.2%
Access Midstream Partners LP, 6.13%, 7/15/22				400		429,000
Anadarko Petroleum Corp., 5.95%, 9/15/16				1,916		2,203,042
BP Capital Markets Plc, 3.13%, 10/01/15 (e)				330		349,598
Burlington Resources Finance Co., 7.40%, 12/01/31 (e)				875		1,223,184
Carrizo Oil & Gas, Inc., 7.50%, 9/15/20				400		420,000
Cenovus Energy, Inc., 6.75%, 11/15/39				750		988,233
ConocoPhillips Canada Funding Co., 5.95%, 10/15/36 (e)				535		678,285
Continental Resources, Inc., 5.00%, 9/15/22				486		522,450
Denbury Resources, Inc., 4.63%, 7/15/23				623		611,319
El Paso Natural Gas Co. LLC, 8.38%, 6/15/32				275		390,763
El Paso Pipeline Partners Operating Co. LLC, 6.50%, 4/01/20				240		289,967
Energy Transfer Partners LP, 6.50%, 2/01/42				500		577,145
Energy XXI Gulf Coast, Inc., 9.25%, 12/15/17				455		514,150
Enterprise Products Operating LLC:
4.05%, 2/15/22				1,250		1,359,645
6.13%, 10/15/39				700		825,763
5.95%, 2/01/41				500		585,478
Series L, 6.30%, 9/15/17				575		693,642
KeySpan Gas East Corp., 5.82%, 4/01/41 (a)(e)				505		633,385
Kinder Morgan Energy Partners LP:
5.95%, 2/15/18				1,300		1,550,585
6.50%, 9/01/39				3,000		3,627,495
6.55%, 9/15/40				110		134,430
6.38%, 3/01/41				150		180,688
Kodiak Oil & Gas Corp., 8.13%, 12/01/19				110		123,750
Linn Energy LLC, 6.25%, 11/01/19 (a)				355		362,100
Marathon Petroleum Corp., 6.50%, 3/01/41				997		1,252,804
MarkWest Energy Partners LP:
5.50%, 2/15/23				160		168,000
4.50%, 7/15/23	��			206		201,365
MidAmerican Energy Co., 5.80%, 10/15/36				700		877,932
MidAmerican Energy Holdings Co.:
5.95%, 5/15/37				800		989,205
6.50%, 9/15/37				1,900		2,492,217
Newfield Exploration Co., 5.63%, 7/01/24				710		741,950
Nexen, Inc., 7.50%, 7/30/39				1,000		1,433,105
Offshore Group Investments Ltd., 11.50%, 8/01/15				163		177,670
PBF Holding Co. LLC, 8.25%, 2/15/20 (a)				110		119,625
PDC Energy, Inc., 7.75%, 10/15/22 (a)				300		317,250
Petrobras International Finance Co.:
3.88%, 1/27/16				1,340		1,400,741
5.75%, 1/20/20				1,725		1,914,862
Corporate Bonds			Par (000)		Value
Oil, Gas & Consumable Fuels (concluded)
Pioneer Natural Resources Co., 3.95%, 7/15/22		USD		350	$	364,750
Plains Exploration & Production Co., 6.88%, 2/15/23				950		1,094,875
Premier Oil Plc, 5.00%, 6/09/18				1,900		1,992,625
Range Resources Corp., 5.75%, 6/01/21				935		995,775
Sabine Pass Liquefaction LLC, 5.63%, 2/01/21 (a)				2,246		2,318,995
Sabine Pass Liquified Natural Gas LP:
7.50%, 11/30/16				1,475		1,629,875
6.50%, 11/01/20 (a)				475		501,125
SandRidge Energy, Inc., 7.50%, 2/15/23				588		615,930
Tennessee Gas Pipeline Co. LLC, 7.50%, 4/01/17				1,040		1,278,551
Western Gas Partners LP:
5.38%, 6/01/21				710		802,705
4.00%, 7/01/22				200		207,069
The Williams Cos., Inc., Series A, 7.50%, 1/15/31				2,500		3,077,585
						46,240,683
Paper & Forest Products — 0.3%
Boise Paper Holdings LLC:
9.00%, 11/01/17				180		194,625
8.00%, 4/01/20				155		170,887
International Paper Co.:
7.50%, 8/15/21				75		97,868
4.75%, 2/15/22				420		471,177
6.00%, 11/15/41				435		507,082
NewPage Corp., 11.38%, 12/31/14 (d)(h)				397		—
						1,441,639
Pharmaceuticals — 0.4%
Capsugel Finance Co. SCA, 9.88%, 8/01/19 (a)		EUR		200		293,748
Jaguar Holding Co. II/Jaguar Merger Sub, Inc., 9.50%, 12/01/19 (a)		USD		520		596,700
Valeant Pharmaceuticals International, 6.38%, 10/15/20 (a)				575		618,844
						1,509,292
Real Estate Investment Trusts (REITs) — 0.7%
Felcor Lodging LP, 5.63%, 3/01/23 (a)				247		248,544
Simon Property Group LP, 4.75%, 3/15/42				835		885,314
Ventas Realty LP/Ventas Capital Corp., 4.75%, 6/01/21				275		304,264
Vornado Realty LP, 5.00%, 1/15/22				1,185		1,315,747
						2,753,869
Real Estate Management & Development — 0.8%
Lennar Corp., 4.75%, 11/15/22 (a)				440		425,150
Mattamy Group Corp., 6.50%, 11/15/20 (a)				540		537,975
Punch Taverns Finance Plc, Series A2R, 6.82%, 7/15/20		GBP		704		1,076,013
Realogy Corp. (a)(e):
7.88%, 2/15/19		USD		374		406,725
7.63%, 1/15/20				520		586,300
WEA Finance LLC, 4.63%, 5/10/21 (a)				305		338,649
						3,370,812
Road & Rail — 0.4%
Burlington Northern Santa Fe LLC, 5.75%, 5/01/40				950		1,147,220
The Hertz Corp., 7.38%, 1/15/21				620		683,550
						1,830,770
Semiconductors & Semiconductor Equipment — 0.2%
NXP BV/NXP Funding LLC, 5.75%, 2/15/21 (a)				470		480,575
Spansion LLC, 7.88%, 11/15/17				390		411,450
						892,025
Software — 0.5%
IAC/InterActiveCorp, 4.75%, 12/15/22 (a)				598		584,545
Nuance Communications, Inc., 5.38%, 8/15/20 (a)				555		561,938
Oracle Corp., 5.38%, 7/15/40 (e)				775		935,416
						2,081,899

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 25

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

Corporate Bonds		Par (000)		Value
Specialty Retail — 0.5%
The Home Depot, Inc., 5.88%, 12/16/36 (e)	USD		830	$	1,052,685
New Academy Finance Co. LLC, 8.00%, 6/15/18 (a)(i)			244		251,930
QVC, Inc. (a):
7.50%, 10/01/19			395		435,958
7.38%, 10/15/20			275		304,821
5.13%, 7/02/22			35		37,009
					2,082,403
Textiles, Apparel & Luxury Goods — 0.1%
PVH Corp., 4.50%, 12/15/22			490		483,262
Thrifts & Mortgage Finance — 0.3%
Radian Group, Inc., 5.38%, 6/15/15			1,400		1,400,000
Tobacco — 1.1%
Altria Group, Inc.:
9.95%, 11/10/38			800		1,330,455
10.20%, 2/06/39			1,388		2,352,645
Reynolds American, Inc., 4.75%, 11/01/42			1,050		1,027,370
					4,710,470
Wireless Telecommunication Services — 2.2%
America Movil SAB de CV, 2.38%, 9/08/16			795		823,162
Crown Castle International Corp., 5.25%, 1/15/23 (a)			465		476,625
Crown Castle Towers LLC, 6.11%, 1/15/40 (a)			1,560		1,894,428
Digicel Group Ltd., 8.25%, 9/30/20 (a)			460		490,590
Digicel Ltd. (a):
8.25%, 9/01/17			150		158,250
6.00%, 4/15/21 (c)			445		443,887
MetroPCS Wireless, Inc., 6.63%, 11/15/20			660		690,525
Rogers Communications, Inc., 7.50%, 8/15/38			1,150		1,590,971
SBA Tower Trust, 5.10%, 4/15/42 (a)			360		403,894
Sprint Capital Corp., 6.88%, 11/15/28			570		575,700
Sprint Nextel Corp. (a):
9.00%, 11/15/18			530		657,200
7.00%, 3/01/20			770		900,900
					9,106,132
Total Corporate Bonds — 82.8%					340,519,616
Foreign Agency Obligations — 0.1%
Italy Government International Bond, 5.38%, 6/15/33			455		462,708
Non-Agency Mortgage-Backed Securities
Collateralized Mortgage Obligations — 2.4%
Banc of America Funding Corp., Series 2007-2, Class 1A2, 6.00%, 3/25/37			953		860,374
Countrywide Alternative Loan Trust:
Series 2005-64CB, Class 1A15, 5.50%, 12/25/35			1,344		1,186,368
Series 2006-OA21, Class A1, 0.39%, 3/20/47 (b)			757		514,744
Series 2007-HY4, Class 4A1, 5.05%, 6/25/47 (b)			684		553,527
Countrywide Home Loan Mortgage Pass-Through Trust:
Series 2006-OA5, Class 2A1, 0.40%, 4/25/46 (b)			306		206,062
Series 2007-10, Class A22, 6.00%, 7/25/37			528		471,869
Credit Suisse Mortgage Capital Certificates, Series 2011-2R, Class 2A1, 2.63%, 7/27/36 (a)(b)			1,204		1,185,366
GMAC Mortgage Corp. Loan Trust, Series 2005-AR3, Class 5A1, 5.20%, 6/19/35 (b)			911		924,132
GSR Mortgage Loan Trust:
Series 2006-4F, Class 1A1, 5.00%, 5/25/36			484		463,503
Series 2007-4F, Class 3A1, 6.00%, 7/25/37			645		608,839

Non-Agency Mortgage-Backed Securities		Par (000)		Value
Collateralized Mortgage Obligations (concluded)
Homebanc Mortgage Trust, Series 2006-2, Class A1, 0.38%, 12/25/36 (b)	USD		557	$	451,768
IndyMac IMJA Mortgage Loan Trust, Series 2007-A1, Class A4, 6.00%, 8/25/37			771		658,967
JPMorgan Mortgage Trust, Series 2006-S3, Class 1A12, 6.50%, 8/25/36			232		212,285
Merrill Lynch Mortgage Investors, Inc., Series 2006-A3, Class 3A1, 2.97%, 5/25/36 (b)			619		493,468
Monastery BV, Series 2004-I, Class A2, 0.52%, 3/17/37 (b)	EUR		957		1,070,896
Wells Fargo Mortgage-Backed Securities Trust, Series 2007-10, Class 1A21, 6.00%, 7/25/37	USD		43		42,417
					9,904,585
Commercial Mortgage-Backed Securities — 12.3%
Banc of America Merrill Lynch Commercial Mortgage, Inc., Class A4:
Series 2007-1, 5.45%, 1/15/49			500		570,795
Series 2007-2, 5.63%, 4/10/49 (b)			750		868,175
Bear Stearns Commercial Mortgage Securities, Series 2005-PWR9, Class A4A, 4.87%, 9/11/42			800		867,762
Citigroup Commercial Mortgage Trust, Series 2008-C7, Class A4, 6.06%, 12/10/49 (b)			1,370		1,626,675
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2006-CD3, Class AM, 5.65%, 10/15/48			1,093		1,228,286
Commercial Mortgage Pass-Through Certificates:
Series 2006-C7, Class AM, 5.77%, 6/10/46 (b)			1,750		1,924,666
Series 2013-LC6, Class B, 3.74%, 1/10/46			695		715,320
Series 2013-LC6, Class D, 4.29%, 1/10/46 (a)(b)			835		762,006
Credit Suisse Mortgage Capital Certificates:
Series 2006-C3, Class AM, 5.80%, 6/15/38 (b)			1,000		1,098,945
Series 2006-C5, Class AM, 5.34%, 12/15/39			1,750		1,925,779
Series 2010-RR2, Class 2A, 5.76%, 9/15/39 (a)(b)			1,010		1,159,595
CS First Boston Mortgage Securities Corp., Series 2005-C3, Class AJ, 4.77%, 7/15/37			705		730,171
DBRR Trust, Series 2011-C32, Class A3A, 5.74%, 6/17/49 (a)(b)			365		417,394
Greenwich Capital Commercial Funding Corp.:
Series 2006-GG7, Class A4, 5.86%, 7/10/38 (b)			1,165		1,318,213
Series 2007-GG9, Class A4, 5.44%, 3/10/39			2,190		2,495,188
GS Mortgage Securities Corp. II:
Series 2007-GG10, Class A4, 5.79%, 8/10/45 (b)(e)			435		497,085
Series 2013-GC10, Class B, 3.68%, 2/10/46 (a)			1,250		1,285,841
JPMorgan Chase Commercial Mortgage Securities Corp.:
Series 2004-CB8, Class A1A, 4.16%, 1/12/39 (a)			2,248		2,298,647
Series 2004-LN2, Class A2, 5.12%, 7/15/41			820		859,954
Series 2006-CB14, Class AM, 5.45%, 12/12/44 (b)			330		356,979
Series 2006-CB16, Class AJ, 5.62%, 5/12/45			730		694,324
LB-UBS Commercial Mortgage Trust (b):
Series 2004-C8, Class C, 4.93%, 12/15/39			1,385		1,456,181
Series 2007-C6, Class A4, 5.86%, 7/15/40			5,201		6,024,199
Series 2007-C7, Class A3, 5.87%, 9/15/45			1,460		1,685,532
Morgan Stanley Capital I Trust (b):
Series 2007-HQ11, Class A4, 5.45%, 2/12/44			4,000		4,577,876
Series 2007-XLC1, Class A2, 0.56%, 7/17/17			124		119,282
Morgan Stanley Reremic Trust, Series 2011, Class A, 2.50%, 3/23/51 (a)			600		605,727
RCMC LLC, Series 2012-CRE1, Class A, 5.62%, 11/15/44 (a)			989		990,519

See Notes to Financial Statements.

26 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

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

Non-Agency Mortgage-Backed Securities		Par (000)		Value
Commercial Mortgage-Backed Securities (concluded)
Titan Europe Plc, Series 2007-1X, Class A, 0.76%, 1/20/17 (b)	GBP		1,607	$	2,048,313
Wachovia Bank Commercial Mortgage Trust:
Series 2006-C28, Class A2, 5.50%, 10/15/48	USD		4,203		4,247,949
Series 2007-C33, Class A4, 5.92%, 2/15/51 (b)			2,185		2,521,872
WF-RBS Commercial Mortgage Trust:
Series 2012-C8, Class B, 4.31%, 8/15/45			695		753,349
Series 2012-C8, Class C, 4.88%, 8/15/45 (b)			895		978,836
Series 2013-C11, Class D, 4.19%, 3/15/45 (a)(b)			800		764,750
					50,476,185
Interest Only Commercial Mortgage-Backed Securities — 1.3%
Morgan Stanley Bank of America Merrill Lynch Trust, Series 2012-C5, Class XA, 1.93%, 8/15/45 (a)(b)			15,852		1,780,987
Morgan Stanley Capital I Trust, Series 2012-C4, Class XA, 2.69%, 3/15/45 (a)(b)			9,551		1,395,889
WF-RBS Commercial Mortgage Trust, Class XA (a)(b):
Series 2012-C8, 2.25%, 8/15/45			6,065		824,576
Series 2012-C9, 2.28%, 11/15/45			10,842		1,552,528
					5,553,980
Total Non-Agency Mortgage-Backed Securities — 16.0%					65,934,750
Preferred Securities
Capital Trusts
Capital Markets — 0.0%
State Street Capital Trust IV, 1.31%, 6/01/67 (b)			70		56,175
Commercial Banks — 0.1%
Fifth Third Capital Trust IV, 6.50%, 4/15/67 (b)			505		505,631
Diversified Financial Services — 1.0%
JPMorgan Chase & Co., Series 1, 7.90% (b)(e)(j)			3,500		4,036,718
Electric Utilities — 0.5%
Electricite de France SA, 5.25% (a)(b)(j)			2,100		2,067,450
Insurance — 2.3%
The Allstate Corp., 6.50%, 5/15/67 (b)			1,950		2,106,000
American International Group, Inc., 8.18%, 5/15/68 (b)			195		257,644
Lincoln National Corp., 6.05%, 4/20/67 (b)			675		681,750
MetLife Capital Trust IV, 7.88%, 12/15/67 (a)			640		790,400
MetLife, Inc., 6.40%, 12/15/66			3,500		3,783,790
Swiss Re Capital I LP, 6.85% (a)(b)(j)			1,060		1,120,950
XL Group Plc, Series E, 6.50% (b)(j)			815		794,625
					9,535,159
Total Capital Trusts — 3.9%					16,201,133
Preferred Stocks			Shares
Commercial Banks — 1.0%
US Bancorp, Series G, 6.00% (b)			150,000		4,057,500
Trust Preferreds
Commercial Banks — 0.1%
Citigroup Capital XIII, 7.88%, 10/30/40 (b)			14,773		414,914
Total Preferred Securities — 5.0%					20,673,547

Taxable Municipal Bonds		Par (000)		Value
City of Detroit Michigan, GO, Capital Improvement, Limited Tax, Series A-2, 8.00%, 4/01/14	USD		1,525	$	1,454,347
District of Columbia, Refunding RB, Howard University, Series B, 7.63%, 10/01/35			1,000		1,233,940
East Bay Municipal Utility District, RB, Build America Bonds, 5.87%, 6/01/40			950		1,245,697
Indianapolis Local Public Improvement Bond Bank, RB, Build America Bonds, 6.12%, 1/15/40			1,275		1,665,456
Metropolitan Transportation Authority, RB, Build America Bonds, 7.34%, 11/15/39			625		920,669
Municipal Electric Authority of Georgia Plant Vogtle Units 3 & 4, Refunding RB, Build America Bonds, 7.06%, 4/01/57			1,000		1,144,870
New York City Municipal Water Finance Authority, Refunding RB, Second General Resolution:
Series EE, 5.38%, 6/15/43			385		449,618
Series EE, 5.50%, 6/15/43			465		547,500
Series GG, Build America Bonds, 5.72%, 6/15/42			700		908,551
New York State Dormitory Authority, RB, Build America Bonds:
5.63%, 3/15/39			550		668,624
5.60%, 3/15/40			950		1,188,821
Port Authority of New York & New Jersey, RB, Consolidated, 159th Series, 6.04%, 12/01/29			385		494,494
State of California, GO, Build America Bonds:
7.63%, 3/01/40			860		1,252,968
Various Purpose, 7.55%, 4/01/39			140		203,202
State of Illinois, GO, Pension Funding, 5.10%, 6/01/33			1,000		991,140
University of California, RB, Build America Bonds, 5.95%, 5/15/45			445		543,803
Total Taxable Municipal Bonds — 3.6%					14,913,700
US Government Sponsored Agency Securities
Agency Obligations — 3.3%
Fannie Mae:
1.94%, 10/09/19 (e)(k)			7,055		6,212,577
5.63%, 7/15/37 (l)			775		1,085,216
Federal Home Loan Bank (e):
5.25%, 12/09/22			675		870,463
5.37%, 9/09/24			1,075		1,390,643
Resolution Funding Corp. (k):
1.13%, 7/15/18			525		492,272
1.20%, 10/15/18			525		492,826
Tennessee Valley Authority, 5.25%, 9/15/39 (e)			2,355		3,025,914
					13,569,911
Collateralized Mortgage Obligations — 0.2%
Fannie Mae Mortgage-Backed Securities, Series 2005-5, Class PK, 5.00%, 12/25/34			477		511,260
Freddie Mac Mortgage-Backed Securities, Series 2825, Class VP, 5.50%, 6/15/15			455		470,401
					981,661
Commercial Mortgage-Backed Securities — 0.7%
Freddie Mac Mortgage-Backed Securities (b):
Series 2012-K706, Class C, 4.02%, 11/25/44 (a)			165		167,604
Series 2013-K24, Class B, 3.50%, 11/25/45 (a)			1,750		1,742,442
Series K013, Class A2, 3.97%, 1/25/21			940		1,063,116
					2,973,162

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 27

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

US Government Sponsored Agency Securities		Par (000)		Value
Interest Only Collateralized Mortgage Obligations — 2.7%
Fannie Mae Mortgage-Backed Securities:
Series 2010-126, Class UI, 5.50%, 10/25/40	USD		5,342	$	785,430
Series 2012-47, Class NI, 4.50%, 4/25/42			5,749		885,314
Series 2012-96, Class DI, 4.00%, 2/25/27			8,614		964,773
Series 2012-M9, Class X1, 4.08%, 12/25/17 (b)			13,284		2,149,675
Freddie Mac Mortgage-Backed Securities:
Series 2611, Class QI, 5.50%, 9/15/32			1,324		148,903
Series K021, Class X1, 1.51%, 6/25/22 (b)			7,081		788,308
Series K707, Class X1, 1.56%, 12/25/18 (b)			2,503		195,151
Series K710, Class X1, 1.78%, 5/25/19 (b)			8,637		814,000
Ginnie Mae Mortgage-Backed Securities (b):
Series 2009-78, Class SD, 6.00%, 9/20/32			6,824		1,274,811
Series 2011-52, Class NS, 6.47%, 4/16/41			18,743		3,117,804
					11,124,169
Mortgage-Backed Securities — 11.4%
Fannie Mae Mortgage-Backed Securities:
3.00%, 3/15/43–4/15/43 (m)			24,700		25,549,906
3.50%, 3/01/42			1,218		1,290,183
4.00%, 12/01/41			3,962		4,228,886
4.50%, 7/01/41			5,361		5,793,808
5.00%, 8/01/34			3,799		4,145,365
5.50%, 6/01/38			2,543		2,787,312
6.00%, 12/01/38			2,187		2,402,471
Freddie Mac Mortgage-Backed Securities, 6.00%, 11/01/13–12/01/18			451		486,020
Ginnie Mae Mortgage-Backed Securities, 5.50%, 8/15/33			65		72,810
					46,756,761
Total US Government Sponsored Agency Securities — 18.3%					75,405,664
US Treasury Obligations
US Treasury Bonds (e):
8.13%, 8/15/21			1,550		2,368,836
6.25%, 8/15/23			5,085		7,196,068
3.50%, 2/15/39			330		360,834
4.25%, 5/15/39			6,045		7,468,410
4.38%, 5/15/40			6,375		8,035,490
4.75%, 2/15/41			1,630		2,176,559
4.38%, 5/15/41			800		1,009,000
3.13%, 11/15/41			9,930		10,040,163
3.13%, 2/15/42			6,268		6,330,680
3.00%, 5/15/42			2,730		2,685,637
US Treasury Notes:
2.25%, 7/31/18			495		531,274
2.00%, 2/15/22 (e)			1,826		1,871,223
1.75%, 5/15/22			156		155,854
Total US Treasury Obligations — 12.2%					50,230,028

Warrants (n)		Shares		Value
Software — 0.0%
Bankruptcy Management Solutions, Inc. (Expires 9/28/17)			90		—
Total Long-Term Investments
(Cost — $563,831,522) — 146.4%				$	602,249,942
Short-Term Securities
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.10% (o)(p)			2,677,125		2,677,125
Total Short-Term Securities
(Cost — $2,677,125) — 0.7%					2,677,125
Options Purchased
(Cost — $1,734,751) — 0.3%					1,321,160
Total Investments Before TBA Sale Commitments and Options Written
(Cost — $568,243,398) — 147.4%					606,248,227
TBA Sale Commitments (m)			Par (000)
Fannie Mae Mortgage-Backed Securities, 3.00%, 3/15/43	USD		8,400		(8,696,625	)
Total TBA Sale Commitments (Proceeds — $8,690,719) — (2.1)%					(8,696,625	)
Options Written
(Premiums Received — $3,446,258) — (0.7)%					(2,733,943	)
Total Investments, Net of TBA Sale Commitments and Options Written — 144.6%					594,817,659
Liabilities in Excess of Other Assets — (44.6)%					(183,617,467	)
Net Assets — 100.0%				$	411,200,192

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 Depreciation
Deutsche Bank Securities, Inc.	$	487,800		—
JPMorgan Chase & Co.	$	493,750		—
JPMorgan Chase & Co.	$	486,500		—
Citigroup Global Markets	$	443,887	$	(1,113	)
Bank of New York Mellon	$	477,500		—
Goldman Sachs & Co.	$	490,510		—

See Notes to Financial Statements.

28 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

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

(d)	Non-income producing security.
(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 step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown is as of report date.
(h)	Issuer filed for bankruptcy and/or is in default of principal and/or interest payments.
(i)	Represents a payment-in-kind security which may pay interest/dividends in additional par/shares.
(j)	Security is perpetual in nature and has no stated maturity date.
(k)	Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(l)	All or a portion of security has been pledged as collateral in connection with open financial futures contracts.
(m)	Represents or includes a TBA transaction. Unsettled TBA transactions as of February 28, 2013 were as follows:

Counterparty	Value			Unrealized Appreciation (Depreciation)
Goldman Sachs Group, Inc.	$	16,875,594		$	53,484
Deutsche Bank AG	$	(22,313	)	$	(984	)

(n)	Warrants entitle the Trust to purchase a predetermined number of shares of common stock and are non-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date of the warrants, if any.
(o)	Investments in issuers considered to be an affiliate of the Trust 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		Realized Gain
BlackRock Liquidity Funds, TempFund, Institutional Class		534,025		2,143,100		2,677,125	$	1,715	$	72

(p)	Represents the current yield as of report date.
•	For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Trust management. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.
•	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
BNP Paribas Securities Corp.	0.18%	5/09/12	Open	$	1,039,000	$	1,040,538
BNP Paribas Securities Corp.	0.19%	5/09/12	Open		367,950		368,525
BNP Paribas Securities Corp.	0.17%	7/18/12	Open		7,051,500		7,059,025
Barclays Capital, Inc.	0.35%	8/09/12	Open		4,342,543		4,351,156
Barclays Capital, Inc.	0.35%	8/21/12	Open		5,635,800		5,640,049
BNP Paribas Securities Corp.	0.11%	8/21/12	Open		2,791,425		2,793,063
Credit Suisse Securities (USA) LLC	0.25%	9/06/12	Open		1,903,605		1,905,932
Barclays Capital, Inc.	0.35%	9/18/12	Open		3,346,988		3,352,324
Deutsche Bank Securities	(0.63)%	10/24/12	Open		345,482		344,715
Bank of America Merrill Lynch	0.21%	12/10/12	Open		15,392,700		15,399,973
Bank of America Merrill Lynch	0.24%	12/10/12	Open		2,309,750		2,310,997
Credit Suisse Securities (USA) LLC	0.37%	12/17/12	Open		19,400,364		19,415,117
BNP Paribas Securities Corp.	0.35%	1/11/13	Open		4,741,000		4,743,259
Credit Suisse Securities (USA) LLC	0.35%	1/14/13	Open		2,166,425		2,167,394
UBS Securities LLC	(0.50)%	1/15/13	Open		496,600		496,290
UBS Securities LLC	(0.25)%	1/15/13	Open		484,487		484,336
UBS Securities LLC	0.28%	1/15/13	Open		3,529,338		3,530,573
UBS Securities LLC	0.32%	1/15/13	Open		16,979,175		16,985,966
UBS Securities LLC	0.33%	1/15/13	Open		2,483,125		2,484,150
UBS Securities LLC	0.34%	1/15/13	Open		20,680,084		20,688,874
UBS Securities LLC	0.35%	1/15/13	Open		941,250		941,662
BNP Paribas Securities Corp.	0.35%	1/22/13	Open		2,126,000		2,126,785
Credit Suisse Securities (USA) LLC	0.35%	2/01/13	Open		3,673,140		3,674,140
Deutsche Bank Securities, Inc.	(0.75)%	2/06/13	Open		257,040		256,917
Credit Suisse Securities (USA) LLC	0.20%	2/07/13	Open		2,418,000		2,418,148
Credit Suisse Securities (USA) LLC	0.22%	2/07/13	Open		2,949,638		2,949,854
Deutsche Bank Securities, Inc.	0.17%	2/07/13	Open		2,194,387		2,194,589
Deutsche Bank Securities, Inc.	0.23%	2/07/13	Open		6,155,488		6,156,089
Bank of America Merrill Lynch	0.20%	2/07/13	Open		8,032,500		8,033,236
UBS Securities LLC	0.34%	2/07/13	Open		1,737,375		1,737,736
BNP Paribas Securities Corp.	0.32%	2/08/13	Open		2,473,000		2,473,461

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 29

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

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
HSBC Holdings Plc	0.27%	2/11/13	3/12/13	$	20,276,909	$	20,279,647
BNP Paribas Securities Corp.	0.20%	2/14/13	Open		9,942,413		9,943,034
BNP Paribas Securities Corp.	0.33%	2/14/13	Open		1,020,000		1,020,140
Barclays Capital, Inc.	(0.50)%	2/28/13	Open		371,377		371,372
BNP Paribas Securities Corp.	0.34%	2/28/13	Open		3,378,000		3,378,032
Total				$	183,433,858	$	183,517,098

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

Contracts Purchased (Sold)	Issue	Exchange	Expiration	Notional Value		Unrealized Appreciation (Depreciation)
50	5-Year US Treasury Note	Chicago Board of Trade	June 2013	USD	6,199,219	$	11,842
399	30-Year US Treasury Bond	Chicago Board of Trade	June 2013	USD	57,368,719		21,143
40	Ultra Long US Treasury Bond	Chicago Board of Trade	June 2013	USD	6,320,000		(35,585	)
300	90-Day Euro-Dollar	Chicago Mercantile	March 2015	USD	74,538,750		28,703
349	90-Day Euro-Dollar	Chicago Mercantile	March 2016	USD	86,320,787		25,076
(15)	90-Day Euro-Dollar	Chicago Mercantile	March 2013	USD	3,738,938		(6,038	)
(55)	2-Year US Treasury Note	Chicago Board of Trade	June 2013	USD	12,125,781		(6,426	)
(608)	10-Year US Treasury Note	Chicago Board of Trade	June 2013	USD	79,980,500		(282,000	)
(12)	90-Day Euro-Dollar	Chicago Mercantile	June 2013	USD	2,990,700		(3,780	)
(12)	90-Day Euro-Dollar	Chicago Mercantile	September 2013	USD	2,990,100		(7,059	)
(16)	90-Day Euro-Dollar	Chicago Mercantile	December 2013	USD	3,985,800		(13,342	)
(12)	90-Day Euro-Dollar	Chicago Mercantile	March 2014	USD	2,988,600		(9,354	)
(9)	90-Day Euro-Dollar	Chicago Mercantile	June 2014	USD	2,240,550		(5,348	)
(9)	90-Day Euro-Dollar	Chicago Mercantile	September 2014	USD	2,239,425		(8,900	)
(9)	90-Day Euro-Dollar	Chicago Mercantile	December 2014	USD	2,237,850		(9,848	)
(40)	90-Day Euro-Dollar	Chicago Mercantile	June 2015	USD	9,930,000		(51,783	)
(281)	90-Day Euro-Dollar	Chicago Mercantile	September 2015	USD	69,688,000		(29,294	)
(40)	90-Day Euro-Dollar	Chicago Mercantile	December 2015	USD	9,907,500		(63,610	)
(349)	90-Day Euro-Dollar	Chicago Mercantile	September 2016	USD	86,037,225		(2,617	)
Total						$	(448,220	)

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

Currency Purchased			Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
GBP	421,000	USD		662,122	Royal Bank of Scotland Group Plc	4/17/13	$	(23,595	)
USD	803,177	EUR		610,000	BNP Paribas SA	4/17/13		6,541
USD	1,465,115	GBP		960,000	BNP Paribas SA	4/17/13		9,091
USD	425,257	GBP		268,237	Citigroup, Inc.	4/17/13		18,424
USD	159,501	GBP		99,323	Credit Suisse Group AG	4/17/13		8,858
USD	642,575	GBP		400,147	Credit Suisse Group AG	4/17/13		35,675
USD	111,188	GBP		69,600	Credit Suisse Group AG	4/17/13		5,626
USD	5,898,999	GBP		3,654,000	Deutsche Bank AG	4/17/13		357,008
USD	473,431	GBP		302,366	Deutsche Bank AG	4/17/13		14,836
USD	2,071,135	GBP		1,353,000	Deutsche Bank AG	4/17/13		19,051
USD	7,400,705	EUR		5,554,000	Citigroup, Inc.	4/23/13		147,073
Total							$	598,588

See Notes to Financial Statements.

30 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

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

• Over-the-counter interest rate swaptions purchased as of February 28, 2013 were as follows:

Description	Counterparty	Put/ Call	Exercise Rate	Pay/Receive Exercise Rate	Floating Rate Index	Expiration Date	Notional Amount (000)		Market Value
7-Year Interest Rate Swap	Citigroup, Inc.	Call	1.20%	Receive	3-month LIBOR	7/08/13	USD	11,700	$	16,112
7-Year Interest Rate Swap	Deutsche Bank AG	Call	1.30%	Receive	3-month LIBOR	8/21/13	USD	9,900		32,683
7-Year Interest Rate Swap	JPMorgan Chase & Co.	Call	1.39%	Receive	3-month LIBOR	10/06/14	USD	21,700		152,587
30-Year Interest Rate Swap	JPMorgan Chase & Co.	Put	3.75%	Pay	3-month LIBOR	6/03/13	USD	2,400		2,976
7-Year Interest Rate Swap	Citigroup, Inc.	Put	1.70%	Pay	3-month LIBOR	7/08/13	USD	16,700		104,861
7-Year Interest Rate Swap	Deutsche Bank AG	Put	1.80%	Pay	3-month LIBOR	8/21/13	USD	13,200		94,814
10-Year Interest Rate Swap	Deutsche Bank AG	Put	3.15%	Pay	3-month LIBOR	1/25/16	USD	2,500		112,322
10-Year Interest Rate Swap	Deutsche Bank AG	Put	3.75%	Pay	3-month LIBOR	2/16/16	USD	9,300		273,095
10-Year Interest Rate Swap	Deutsche Bank AG	Put	3.50%	Pay	3-month LIBOR	2/22/16	USD	10,000		357,303
10-Year Interest Rate Swap	Deutsche Bank AG	Put	4.50%	Pay	3-month LIBOR	3/16/17	USD	6,300		174,407
Total									$	1,321,160

• Over-the-counter interest rate swaptions written as of February 28, 2013 were as follows:

Description	Counterparty	Put/ Call	Exercise Rate	Pay/Receive Exercise Rate	Floating Rate Index	Expiration Date	Notional Amount (000)		Market Value
7-Year Interest Rate Swap	Morgan Stanley	Call	1.45%	Pay	3-month LIBOR	4/05/13	USD	10,000	$	(45,852	)
7-Year Interest Rate Swap	Citigroup, Inc.	Call	1.45%	Pay	3-month LIBOR	7/08/13	USD	11,700		(74,185	)
7-Year Interest Rate Swap	Deutsche Bank AG	Call	1.55%	Pay	3-month LIBOR	8/21/13	USD	9,900		(98,182	)
5-Year Interest Rate Swap	JPMorgan Chase & Co.	Call	2.06%	Pay	3-month LIBOR	4/09/14	USD	16,100		(601,312	)
5-Year Interest Rate Swap	BNP Paribas SA	Call	1.15%	Pay	3-month LIBOR	6/09/14	USD	30,300		(207,371	)
5-Year Interest Rate Swap	JPMorgan Chase & Co.	Call	1.00%	Pay	3-month LIBOR	7/11/14	USD	15,500		(65,950	)
5-Year Interest Rate Swap	JPMorgan Chase & Co.	Call	1.48%	Pay	3-month LIBOR	7/31/14	USD	10,000		(140,910	)
5-Year Interest Rate Swap	Deutsche Bank AG	Call	1.00%	Pay	3-month LIBOR	8/01/14	USD	9,700		(41,107	)
5-Year Interest Rate Swap	Goldman Sachs Group, Inc.	Call	1.25%	Pay	3-month LIBOR	2/04/15	USD	6,200		(47,147	)
7-Year Interest Rate Swap	Citigroup, Inc.	Put	1.95%	Receive	3-month LIBOR	7/08/13	USD	16,700		(48,788	)
7-Year Interest Rate Swap	Deutsche Bank AG	Put	2.05%	Receive	3-month LIBOR	8/21/13	USD	13,200		(50,796	)
5-Year Interest Rate Swap	JPMorgan Chase & Co.	Put	2.06%	Receive	3-month LIBOR	4/09/14	USD	16,100		(85,287	)
5-Year Interest Rate Swap	BNP Paribas SA	Put	2.15%	Receive	3-month LIBOR	6/09/14	USD	30,300		(193,544	)
5-Year Interest Rate Swap	JPMorgan Chase & Co.	Put	2.00%	Receive	3-month LIBOR	7/11/14	USD	15,500		(136,543	)
5-Year Interest Rate Swap	JPMorgan Chase & Co.	Put	1.48%	Receive	3-month LIBOR	7/31/14	USD	10,000		(176,284	)
5-Year Interest Rate Swap	Deutsche Bank AG	Put	2.00%	Receive	3-month LIBOR	8/01/14	USD	9,700		(92,634	)
7-Year Interest Rate Swap	JPMorgan Chase & Co.	Put	2.39%	Receive	3-month LIBOR	10/06/14	USD	21,700		(402,164	)
5-Year Interest Rate Swap	Goldman Sachs Group, Inc.	Put	2.25%	Receive	3-month LIBOR	2/04/15	USD	6,200		(82,489	)
10-Year Interest Rate Swap	Deutsche Bank AG	Put	6.00%	Receive	3-month LIBOR	3/16/17	USD	12,600		(143,398	)
Total									$	(2,733,943	)

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

Issuer	Pay Fixed Rate	Counterparty	Expiration Date	Notional Amount (000)		Unrealized Depreciation
Radian Group, Inc.	5.00%	Citigroup, Inc.	6/20/15	USD	1,400	$	(83,197	)
The New York Times Co.	1.00%	Barclays Plc	12/20/16	USD	1,800		(40,920	)
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						$	(124,151	)

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 31

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

• 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
MetLife, Inc.	1.00%	Credit Suisse Group AG	9/20/16	A-	USD	535	$	36,926
MetLife, Inc.	1.00%	Deutsche Bank AG	9/20/16	A-	USD	730		46,262
MetLife, Inc.	1.00%	Goldman Sachs Group, Inc.	9/20/16	A-	USD	500		30,886
MetLife, Inc.	1.00%	Morgan Stanley	9/20/16	A-	USD	900		55,995
MetLife, Inc.	1.00%	Morgan Stanley	9/20/16	A-	USD	275		15,387
MetLife, Inc.	1.00%	Citigroup, Inc.	12/20/16	A-	USD	298		16,973
MetLife, Inc.	1.00%	Citigroup, Inc.	12/20/16	A-	USD	285		17,585
Markit CMBX North America AAA Index Series 3	0.08%	Morgan Stanley	12/13/49	AA	USD	525		39,810
Markit CMBX North America AAA Index Series 4	0.35%	Morgan Stanley	2/17/51	A	USD	525		42,507
Total							$	302,331

¹ Using S&P’s rating of the issuer or the underlying securities of the index, as applicable.

² The maximum potential amount the Trust may pay should a negative credit event take place as defined under the terms of the agreement.

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

Fixed Rate	Floating Rate	Counterparty	Expiration Date	Notional Amount (000)		Unrealized Appreciation (Depreciation)
0.39%3	3-month LIBOR	JPMorgan Chase & Co.	11/29/14	USD	50,000	$	(18,750	)
0.40%3	3-month LIBOR	Goldman Sachs Group, Inc.	12/27/14	USD	30,000		(12,195	)
0.66%4	6-month EURIBOR	Deutsche Bank AG	2/05/15	EUR	5,000		22,054
1.18%3	3-month LIBOR	JPMorgan Chase & Co.	10/05/19	USD	15,800		147,065
1.48%4	3-month LIBOR	Deutsche Bank AG	2/25/20	USD	4,600		20,806
1.41%4	3-month LIBOR	Bank of America Corp.	2/28/20	USD	5,800		(2,290	)
1.41%4	3-month LIBOR	JPMorgan Chase & Co.	3/01/20	USD	2,400		(1,056	)
1.41%4	3-month LIBOR	JPMorgan Chase & Co.	3/04/20	USD	18,000		(11,750	)
1.89%3	3-month LIBOR	JPMorgan Chase & Co.	10/08/21	USD	11,900		146,395
1.89%4	6-month EURIBOR	Citigroup, Inc.	6/27/22	EUR	1,800		46,955
1.90%3	3-month LIBOR	Royal Bank of Scotland Group Plc	1/28/23	USD	400		2,298
1.72%4	6-month EURIBOR	Deutsche Bank AG	1/28/23	EUR	1,200		(2,872	)
1.97%4	3-month LIBOR	Deutsche Bank AG	1/29/23	USD	1,000		736
2.08%4	3-month LIBOR	Deutsche Bank AG	2/19/23	USD	2,800		28,509
2.06%4	3-month LIBOR	Deutsche Bank AG	2/25/23	USD	3,400		27,406
2.58%3	6-month EURIBOR	Deutsche Bank AG	11/11/41	EUR	350		(17,925	)
2.68%3	6-month EURIBOR	Deutsche Bank AG	11/18/41	EUR	745		(58,915	)
3.07%3	3-month LIBOR	Barclays Plc	3/21/42	USD	4,000		(106,193	)
2.15%3	6-month EURIBOR	Citigroup, Inc.	6/27/42	EUR	770		48,886
2.49%3	3-month LIBOR	Deutsche Bank AG	7/05/42	USD	2,900		272,061
2.52%3	3-month LIBOR	Citigroup, Inc.	9/04/42	USD	1,600		139,724
2.49%3	6-month EURIBOR	Citigroup, Inc.	1/15/43	EUR	500		(13,085	)
3.05%3	3-month LIBOR	Deutsche Bank AG	2/07/43	USD	4,800		(97,771	)
2.95%3	3-month LIBOR	JPMorgan Chase & Co.	3/04/43	USD	2,600		1,070
Total						$	561,163

³ Trust pays the fixed rate and receives the floating rate.

⁴ Trust pays the floating rate and receives the fixed rate.

• 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 Trust 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 Trust’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.

See Notes to Financial Statements.

32 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

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

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’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 Trust’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following tables summarize the Trust’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		—		$	26,235,503		$	7,728,225	$	33,963,728
Common Stocks		—			—			146,201		146,201
Corporate Bonds		—			334,194,826			6,324,790		340,519,616
Foreign Agency Obligations		—			462,708			—		462,708
Non-Agency Mortgage-Backed Securities		—			65,050,718			884,032		65,934,750
Preferred Securities	$	4,472,414			16,201,133			—		20,673,547
Taxable Municipal Bonds		—			14,913,700			—		14,913,700
US Government Sponsored Agency Securities		—			75,405,664			—		75,405,664
US Treasury Obligations		—			50,230,028			—		50,230,028
Short-Term Securities		2,677,125			—			—		2,677,125
Options Purchased:
Interest Rate Contracts		—			1,321,160			—		1,321,160
Liabilities:
Investments:
TBA Sale Commitments		—			(8,696,625	)		—		(8,696,625	)
Total	$	7,149,539		$	575,318,815		$	15,083,248	$	597,551,602
	Level 1			Level 2			Level 3		Total
Derivative Financial Instruments1
Assets:
Credit contracts		—		$	302,331			—	$	302,331
Foreign currency exchange contracts		—			622,183			—		622,183
Interest rate contracts	$	86,764			903,965			—		990,729
Liabilities:
Credit contracts		—			(124,151	)		—		(124,151	)
Foreign currency exchange contracts		—			(23,595	)		—		(23,595	)
Interest rate contracts		(534,984	)		(3,076,745	)		—		(3,611,729	)
Total	$	(448,220	)	$	(1,396,012	)		—	$	(1,844,232	)

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

Certain of the Trust’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	$	60,313		—			—	$	60,313
Foreign currency at value		159,393		—			—		159,393
Cash pledged as collateral for financial futures contracts		882,000		—			—		882,000
Cash pledged as collateral for reverse repurchase agreements		1,615,619		—			—		1,615,619
Cash pledged as collateral for swaps		3,210,000		—			—		3,210,000
Liabilities:
Reverse repurchase agreements		—	$	(183,433,858	)		—		(183,433,858	)
Cash received as collateral for swaps		—		(1,100,000	)		—		(1,100,000	)
Total	$	5,927,325	$	(184,533,858	)		—	$	(178,606,533	)

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 33

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

A reconciliation of Level 3 investments is presented when the Trust 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			Common Stocks		Corporate Bonds			Non-Agency Mortgage-Backed Securities			Total
Assets:
Opening Balance, as of August 31, 2012	$	1,505,315		$	1	$	5,224,808		$	511,457		$	7,241,581
Transfers into Level 31		—			—		4,712,948			—			4,712,948
Transfers out of Level 32		(365,529	)		—		—			—			(365,529	)
Accrued discounts/premiums		(212,482	)		—		(11,673	)		2,052			(222,103	)
Net realized gain (loss)		6			—		1,445			27,721			29,172
Net change in unrealized appreciation/depreciation3		254,004			146,200		(304,989	)		7,530			102,745
Purchases		6,603,254			—		—			755,446			7,358,700
Sales		(56,343	)		—		(3,297,749	)		(420,174	)		(3,774,266	)
Closing Balance, as of February 28, 2013	$	7,728,225		$	146,201	$	6,324,790		$	884,032		$	15,083,248

¹ As of August 31, 2012, the Trust used observable inputs in determining the value of certain investments. As of February 28, 2013, the Trust used significant unobservable inputs in determining the value of the same investments. As a result, investments with a beginning of period value of $4,712,948 transferred from Level 2 to Level 3 in the disclosure hierarchy.

² As of August 31, 2012, the Trust used significant unobservable inputs in determining the value of certain investments. As of February 28, 2013, the Trust used observable inputs in determining the value of the same investments. As a result, investments with a beginning of period value of $365,529 transferred from Level 3 to Level 2 in the disclosure hierarchy.

³ 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 $365,574.

Certain of the Trust’s investments that are categorized as Level 3 were valued utilizing transaction prices or third party pricing information without adjustment. Such valuations are based on unobservable inputs. A significant change in third party information inputs could result in a significantly lower or higher value of such Level 3 investments.

See Notes to Financial Statements.

34 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

Consolidated Schedule of Investments
February 28, 2013 (Unaudited) BlackRock Corporate High Yield Fund V, Inc. (HYV)
(Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Auto Components — 0.5%
Dana Holding Corp.		91,707	$	1,534,258
Delphi Automotive Plc		13,100		543,998
				2,078,256
Biotechnology — 0.0%
Ironwood Pharmaceuticals, Inc. (a)		10,590		158,109
Capital Markets — 1.7%
American Capital Ltd. (a)		412,530		5,767,169
E*Trade Financial Corp. (a)		109,400		1,171,674
Uranium Participation Corp. (a)		53,140		275,169
				7,214,012
Chemicals — 0.5%
ADA-ES, Inc. (a)		2,690		71,473
CF Industries Holdings, Inc.		5,300		1,064,399
Huntsman Corp.		51,100		880,453
				2,016,325
Commercial Banks — 0.6%
CIT Group, Inc. (a)		57,665		2,413,857
Communications Equipment — 0.3%
Loral Space & Communications Ltd.		19,132		1,114,248
Diversified Financial Services — 0.7%
Bank of America Corp.		35,400		397,542
Kcad Holdings I Ltd. (a)		422,854,200		2,854,266
				3,251,808
Diversified Telecommunication Services — 0.2%
Broadview Networks Holdings, Inc. (a)		49,725		332,660
Level 3 Communications, Inc. (a)		33,620		671,728
				1,004,388
Electrical Equipment — 0.0%
Medis Technologies Ltd. (a)		109,685		1
Energy Equipment & Services — 0.9%
Laricina Energy Ltd. (a)		70,588		2,395,714
Osum Oil Sands Corp. (a)		120,000		1,585,454
				3,981,168
Hotels, Restaurants & Leisure — 0.2%
Caesars Entertainment Corp. (a)		59,623		745,288
Travelport LLC (a)		113,632		1,136
				746,424
Insurance — 1.0%
American International Group, Inc. (a)		117,041		4,448,728
Media — 1.3%
Belo Corp., Class A		32,921		284,438
Charter Communications, Inc., Class A (a)		63,429		5,479,631
Clear Channel Outdoor Holdings, Inc., Class A (a)		14,202		107,935
				5,872,004
Metals & Mining — 0.1%
African Minerals Ltd. (a)		65,551		280,079
Peninsula Energy Ltd. (a)		11,250,902		375,911
				655,990
Oil, Gas & Consumable Fuels — 0.0%
African Petroleum Corp. Ltd. (a)		294,600		57,175
Paper & Forest Products — 1.0%
Ainsworth Lumber Co. Ltd. (a)		728,451		2,309,852
Ainsworth Lumber Co. Ltd. (a)(b)		208,741		659,875
NewPage Corp. (a)		12,520		1,064,200
Western Forest Products, Inc. (a)		74,889		95,483
Western Forest Products, Inc. (a)		74,936		90,831
				4,220,241
Semiconductors & Semiconductor Equipment — 0.3%
Freescale Semiconductor Ltd. (a)		6,695		103,304
NXP Semiconductors NV (a)		14,053		454,193
Spansion, Inc., Class A (a)		58,263		685,173

Common Stocks		Par (000)		Value
Semiconductors & Semiconductor Equipment (concluded)
SunPower Corp. (a)			200	$	2,348
					1,245,018
Software — 0.1%
Bankruptcy Management Solutions, Inc. (a)			737		7
HMH Holdings/EduMedia (a)			30,127		552,312
					552,319
Total Common Stocks — 9.4%					41,030,071
Corporate Bonds		Par (000)
Aerospace & Defense — 1.0%
Bombardier, Inc., 4.25%, 1/15/16 (b)	USD		900		933,750
Huntington Ingalls Industries, Inc.:
6.88%, 3/15/18			240		261,450
7.13%, 3/15/21			375		408,750
Kratos Defense & Security Solutions, Inc., 10.00%, 6/01/17			1,244		1,373,065
Meccanica Holdings USA, Inc., 6.25%, 7/15/19 (b)			690		709,030
Spirit Aerosystems, Inc., 7.50%, 10/01/17			498		527,880
					4,213,925
Air Freight & Logistics — 0.4%
National Air Cargo Group, Inc.:
Series 1, 12.38%, 9/02/15			822		826,775
Series 2, 12.38%, 8/16/15			833		837,101
					1,663,876
Airlines — 1.7%
American Airlines Pass-Through Trust, Series 2011-2, Class A, 8.63%, 4/15/23			999		1,039,334
Continental Airlines Pass-Through Trust:
Series 1997-4, Class B, 6.90%, 7/02/18			34		33,989
Series 2010-1, Class B, 6.00%, 7/12/20			571		588,248
Series 2012-3, Class C, 6.13%, 4/29/18			1,370		1,366,575
Delta Air Lines Pass-Through Trust:
Series 2002-1, Class G-1, 6.72%, 7/02/24			867		959,763
Series 2009-1, Class B, 9.75%, 6/17/18			257		285,173
Series 2010-1, Class B, 6.38%, 7/02/17			800		834,000
US Airways Pass-Through Trust:
Series 2011-1, Class C, 10.88%, 10/22/14			837		883,006
Series 2012-1, Class C, 9.13%, 10/01/15			622		665,540
Series 2012-2, Class B, 6.75%, 12/03/22			600		627,000
					7,282,628
Auto Components — 2.0%
Continental Rubber of America Corp., 4.50%, 9/15/19 (b)			300		306,000
Dana Holding Corp., 6.75%, 2/15/21			660		718,575
Delphi Corp.:
6.13%, 5/15/21			115		125,350
5.00%, 2/15/23			225		234,281
Icahn Enterprises LP, 8.00%, 1/15/18			4,455		4,772,419
IDQ Holdings, Inc., 11.50%, 4/01/17 (b)			585		640,575
Jaguar Land Rover Plc, 8.25%, 3/15/20	GBP		712		1,211,053
Titan International, Inc., 7.88%, 10/01/17	USD		685		734,662
					8,742,915
Beverages — 0.1%
Crown European Holdings SA:
7.13%, 8/15/18	EUR		91		128,607
7.13%, 8/15/18 (b)			230		325,049
Refresco Group BV, 7.38%, 5/15/18			107		146,022
					599,678
Building Products — 0.9%
Building Materials Corp. of America (b):
7.00%, 2/15/20	USD		810		876,825
6.75%, 5/01/21			1,170		1,256,288

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 35

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

Corporate Bonds		Par (000)		Value
Building Products (concluded)
Grohe Holding GmbH, 8.75%, 12/15/17 (c)	EUR		100	$	136,756
Momentive Performance Materials, Inc., 8.88%, 10/15/20	USD		515		528,519
USG Corp., 9.75%, 1/15/18			1,045		1,229,181
					4,027,569
Capital Markets — 0.4%
E*Trade Financial Corp., 0.01%, 8/31/19 (b)(d)(e)			356		372,242
KKR Group Finance Co. LLC, 6.38%, 9/29/20 (b)			670		787,904
Nuveen Investments, Inc., 9.13%, 10/15/17 (b)			699		702,495
					1,862,641
Chemicals — 3.4%
Axiall Corp., 4.88%, 5/15/23 (b)			260		263,900
Basell Finance Co. BV, 8.10%, 3/15/27 (b)			610		805,200
Celanese US Holdings LLC, 5.88%, 6/15/21			1,905		2,081,212
Ciech Group Financing AB, 9.50%, 11/30/19	EUR		137		194,958
Eagle Spinco, Inc., 4.63%, 2/15/21 (b)	USD		552		560,970
Huntsman International LLC, 8.63%, 3/15/21			250		282,500
INEOS Finance Plc, 7.50%, 5/01/20 (b)			570		614,175
Kinove German Bondco GmbH, 10.00%, 6/15/18	EUR		505		731,681
Kraton Polymers LLC, 6.75%, 3/01/19	USD		185		192,400
LyondellBasell Industries NV, 5.75%, 4/15/24 (f)			3,870		4,498,875
Nexeo Solutions LLC, 8.38%, 3/01/18			135		131,962
Nufarm Australia Ltd., 6.38%, 10/15/19 (b)			335		355,100
PolyOne Corp., 7.38%, 9/15/20			320		354,400
Rockwood Specialties Group, Inc., 4.63%, 10/15/20			1,095		1,133,325
Tronox Finance LLC, 6.38%, 8/15/20 (b)			1,997		1,984,519
US Coatings Acquisition, Inc./Flash Dutch 2 BV:
5.75%, 2/01/21	EUR		100		133,166
7.38%, 5/01/21 (b)	USD		525		543,375
					14,861,718
Commercial Banks — 0.9%
CIT Group, Inc.:
5.25%, 3/15/18			830		892,250
6.63%, 4/01/18 (b)			455		516,425
5.50%, 2/15/19 (b)			790		859,125
5.00%, 8/15/22			710		759,700
6.00%, 4/01/36			810		793,500
					3,821,000
Commercial Services & Supplies — 2.2%
ADS Waste Holdings, Inc., 8.25%, 10/01/20 (b)			412		442,900
ARAMARK Holdings Corp. (b):
8.63%, 5/01/16 (g)			650		663,006
5.75%, 3/15/20 (h)			962		981,240
Aviation Capital Group Corp., 6.75%, 4/06/21 (b)			800		865,874
AWAS Aviation Capital Ltd., 7.00%, 10/17/16 (b)			223		234,158
Brickman Group Holdings, Inc., 9.13%, 11/01/18 (b)			38		40,850
Casella Waste Systems, Inc., 7.75%, 2/15/19			79		75,643
Catalent Pharma Solutions, Inc., 7.88%, 10/15/18 (b)			918		929,475
Clean Harbors, Inc., 5.25%, 8/01/20			780		803,400
Covanta Holding Corp., 6.38%, 10/01/22			940		1,019,275
EC Finance Plc, 9.75%, 8/01/17	EUR		621		881,687
HDTFS, Inc. (b):
5.88%, 10/15/20	USD		95		98,800
6.25%, 10/15/22			395		424,625
Mead Products LLC/ACCO Brands Corp., 6.75%, 4/30/20 (b)			112		118,580
Mobile Mini, Inc., 7.88%, 12/01/20			545		606,313
RSC Equipment Rental, Inc., 8.25%, 2/01/21			686		777,752
Verisure Holding AB:
8.75%, 9/01/18	EUR		174		245,339
8.75%, 12/01/18			134		178,443
West Corp., 8.63%, 10/01/18	USD		205		218,325
					9,605,685

Corporate Bonds		Par (000)		Value
Communications Equipment — 1.1%
Alcatel-Lucent USA, Inc.:
6.50%, 1/15/28	USD		85	$	65,450
6.45%, 3/15/29			279		216,922
Avaya, Inc., 9.75%, 11/01/15			893		878,489
Zayo Group LLC/Zayo Capital, Inc.:
8.13%, 1/01/20			1,400		1,564,500
10.13%, 7/01/20			1,880		2,204,300
					4,929,661
Computers & Peripherals — 0.2%
EMC Corp., Series B, 1.75%, 12/01/13 (d)			298		430,983
SanDisk Corp., 1.50%, 8/15/17 (d)			425		523,281
					954,264
Construction & Engineering — 0.3%
Boart Longyear Management Property Ltd., 7.00%, 4/01/21 (b)			275		285,312
H&E Equipment Services, Inc., 7.00%, 9/01/22 (b)			654		716,130
Weekley Homes LLC, 6.00%, 2/01/23 (b)			230		234,600
					1,236,042
Construction Materials — 2.1%
Buzzi Unicem SpA, 6.25%, 9/28/18	EUR		201		282,280
HD Supply, Inc. (b):
8.13%, 4/15/19	USD		1,870		2,106,087
11.00%, 4/15/20			1,945		2,343,725
7.50%, 7/15/20			2,855		2,858,569
11.50%, 7/15/20			775		893,188
HeidelbergCement AG, 7.50%, 4/03/20	EUR		81		127,428
Xefin Lux SCA, 8.00%, 6/01/18 (b)			376		527,090
					9,138,367
Consumer Finance — 0.2%
Credit Acceptance Corp., 9.13%, 2/01/17	USD		660		719,400
Springleaf Finance, 6.90%, 12/15/17			155		151,900
					871,300
Containers & Packaging — 2.1%
Ardagh Packaging Finance Plc:
7.38%, 10/15/17	EUR		200		283,304
7.38%, 10/15/17			100		141,652
7.38%, 10/15/17 (b)			600		849,913
7.38%, 10/15/17 (b)	USD		200		217,750
9.13%, 10/15/20 (b)			590		643,100
9.13%, 10/15/20 (b)			459		502,605
7.00%, 11/15/20 (b)			912		914,280
4.88%, 11/15/22 (b)			218		214,730
5.00%, 11/15/22	EUR		320		414,643
Berry Plastics Corp.:
4.18%, 9/15/14 (c)	USD		445		445,000
8.25%, 11/15/15			175		182,385
9.75%, 1/15/21			270		311,850
Beverage Packaging Holdings Luxembourg II SA, 8.00%, 12/15/16	EUR		867		1,134,968
Crown Americas LLC/Crown Americas Capital Corp. III, 6.25%, 2/01/21	USD		16		17,440
Crown Americas LLC/Crown Americas Capital Corp. IV, 4.50%, 1/15/23 (b)			180		175,950
GCL Holdings SCA, 9.38%, 4/15/18 (b)	EUR		394		558,212
Graphic Packaging International, Inc., 7.88%, 10/01/18	USD		550		605,000
Pactiv LLC, 7.95%, 12/15/25			605		567,187
Tekni-Plex, Inc., 9.75%, 6/01/19 (b)			815		900,575
					9,080,544
Distributors — 0.5%
VWR Funding, Inc., 7.25%, 9/15/17 (b)			2,030		2,136,575
Diversified Consumer Services — 2.1%
313 Group, Inc. (b):
6.38%, 12/01/19			1,456		1,419,600
8.75%, 12/01/20			882		870,975

See Notes to Financial Statements.

36 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

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

Corporate Bonds		Par (000)		Value
Diversified Consumer Services (concluded)
Laureate Education, Inc., 9.25%, 9/01/19 (b)	USD		1,845	$	2,006,437
Service Corp. International, 7.00%, 6/15/17			4,095		4,632,469
ServiceMaster Co., 8.00%, 2/15/20			280		296,800
					9,226,281
Diversified Financial Services — 5.2%
Air Lease Corp., 4.50%, 1/15/16			880		899,800
Aircastle, Ltd.:
6.75%, 4/15/17			550		606,375
6.25%, 12/01/19			481		518,278
Ally Financial, Inc.:
7.50%, 12/31/13			460		483,000
8.00%, 11/01/31			4,534		5,695,837
CNG Holdings, Inc., 9.38%, 5/15/20 (b)			610		601,613
Co-Operative Group Ltd. (i):
5.63%, 7/08/20	GBP		250		397,467
6.25%, 7/08/26			100		159,745
DPL, Inc.:
6.50%, 10/15/16	USD		450		472,500
7.25%, 10/15/21			1,275		1,367,438
Gala Group Finance Plc, 8.88%, 9/01/18	GBP		706		1,156,720
General Motors Financial Co., Inc., 6.75%, 6/01/18	USD		460		529,000
Lehman Brothers Holdings, Inc. (a)(j):
1.00%, 5/17/13			915		237,900
5.38%, 10/17/13	EUR		200		71,152
4.75%, 1/16/14			1,130		402,011
1.00%, 2/05/14			2,350		820,701
1.00%, 9/22/18	USD		255		66,300
Leucadia National Corp., 8.13%, 9/15/15			1,148		1,297,240
Reynolds Group Issuer, Inc.:
7.13%, 4/15/19			365		391,919
9.00%, 4/15/19			700		742,000
7.88%, 8/15/19			485		535,925
9.88%, 8/15/19			910		996,450
5.75%, 10/15/20			3,080		3,180,100
WMG Acquisition Corp.:
11.50%, 10/01/18			618		717,653
6.00%, 1/15/21 (b)			449		464,715
					22,811,839
Diversified Telecommunication Services — 2.4%
Broadview Networks Holdings, Inc., 10.50%, 11/15/17			765		747,787
Cequel Communications Escrow I LLC/Cequel Communications Escrow Capital Corp., 6.38%, 9/15/20 (b)			705		728,794
Consolidated Communications Finance Co., 10.88%, 6/01/20 (b)			515		583,237
Level 3 Communications, Inc., 8.88%, 6/01/19 (b)			475		513,000
Level 3 Financing, Inc.:
8.13%, 7/01/19			1,736		1,892,240
7.00%, 6/01/20 (b)			639		670,950
8.63%, 7/15/20			1,260		1,398,600
Lynx I Corp., 5.38%, 4/15/21 (b)			420		430,500
OTE Plc, 7.25%, 2/12/15	EUR		256		335,892
Telenet Finance V Luxembourg SCA:
6.25%, 8/15/22			431		576,759
6.75%, 8/15/24			520		709,436
tw telecom holdings, Inc., 5.38%, 10/01/22	USD		440		458,700
Windstream Corp.:
8.13%, 8/01/13			510		523,362
7.88%, 11/01/17			630		713,475
7.50%, 4/01/23			120		125,400
6.38%, 8/01/23 (b)			120		117,600
					10,525,732

Corporate Bonds		Par (000)		Value
Electric Utilities — 0.7%
Mirant Mid Atlantic Pass-Through Trust, Series B, 9.13%, 6/30/17	USD		433	$	480,449
The Tokyo Electric Power Co., Inc., 4.50%, 3/24/14	EUR		1,800		2,400,044
					2,880,493
Electrical Equipment — 0.6%
Belden, Inc., 5.50%, 9/01/22 (b)	USD		550		563,750
General Cable Corp., 5.75%, 10/01/22 (b)			890		912,250
Techem GmbH:
6.13%, 10/01/19	EUR		633		878,064
6.13%, 10/01/19 (b)			105		145,650
					2,499,714
Electronic Equipment, Instruments & Components — 0.1%
Jabil Circuit, Inc., 8.25%, 3/15/18	USD		350		420,875
NXP BV/NXP Funding LLC, 9.75%, 8/01/18 (b)			100		114,250
					535,125
Energy Equipment & Services — 3.7%
Atwood Oceanics, Inc., 6.50%, 2/01/20			205		222,937
Calfrac Holdings LP, 7.50%, 12/01/20 (b)			497		499,485
Compagnie Générale de Géophysique, Veritas:
7.75%, 5/15/17			365		376,406
6.50%, 6/01/21			1,855		1,929,200
FTS International Services LLC/FTS International Bonds, Inc., 8.13%, 11/15/18 (b)			1,602		1,658,070
Genesis Energy LP, 5.75%, 2/15/21 (b)			250		258,750
Gulfmark Offshore, Inc., 6.38%, 3/15/22			230		237,475
Hornbeck Offshore Services, Inc., 5.88%, 4/01/20			465		488,250
MEG Energy Corp. (b):
6.50%, 3/15/21			2,025		2,136,375
6.38%, 1/30/23			535		553,725
Oil States International, Inc.:
6.50%, 6/01/19			470		502,900
5.13%, 1/15/23 (b)			200		200,000
Peabody Energy Corp.:
6.00%, 11/15/18			340		361,250
6.25%, 11/15/21			1,720		1,788,800
7.88%, 11/01/26			555		593,850
4.75%, 12/15/41 (d)			1,055		896,091
Precision Drilling Corp.:
6.63%, 11/15/20			115		122,188
6.50%, 12/15/21			440		466,400
Rain CII Carbon LLC/CII Carbon Corp., 8.25%, 1/15/21 (b)			349		366,450
Seadrill Ltd., 5.63%, 9/15/17 (b)			2,009		2,034,112
Tervita Corp., 8.00%, 11/15/18 (b)			549		565,470
					16,258,184
Food & Staples Retailing — 0.3%
Bakkavor Finance 2 Plc, 8.25%, 2/15/18	GBP		393		605,144
Rite Aid Corp., 9.25%, 3/15/20	USD		555		621,600
Zobele Holding SpA, 7.88%, 2/01/18	EUR		140		185,518
					1,412,262
Food Products — 0.5%
Darling International, Inc., 8.50%, 12/15/18	USD		170		193,375
Del Monte Corp., 7.63%, 2/15/19			90		93,375
Post Holdings, Inc., 7.38%, 2/15/22			840		907,200
Smithfield Foods, Inc., 6.63%, 8/15/22			702		763,425
					1,957,375
Health Care Equipment & Supplies — 2.3%
Biomet, Inc. (b):
6.50%, 8/01/20			2,623		2,773,822
6.50%, 10/01/20			3,189		3,284,670
DJO Finance LLC:
8.75%, 3/15/18			560		618,100
7.75%, 4/15/18			155		154,225
9.88%, 4/15/18			620		661,850

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 37

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

Corporate Bonds		Par (000)		Value
Health Care Equipment & Supplies (concluded)
Fresenius Medical Care US Finance, Inc., 5.75%, 2/15/21 (b)	USD		420	$	457,800
Fresenius Medical Care US Finance II, Inc., 5.63%, 7/31/19 (b)			308		333,410
Fresenius US Finance II, Inc., 9.00%, 7/15/15 (b)			800		918,000
Kinetic Concepts, Inc./KCI USA, Inc., 12.50%, 11/01/19 (b)			485		475,300
Teleflex, Inc., 6.88%, 6/01/19			435		473,063
					10,150,240
Health Care Providers & Services — 8.2%
Aviv Healthcare Properties LP, 7.75%, 2/15/19			845		906,262
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	USD		1,180		1,240,475
7.13%, 7/15/20			669		720,848
ConvaTec Healthcare E SA, 7.38%, 12/15/17 (b)	EUR		694		960,414
Crown Newco 3 Plc:
7.00%, 2/15/18	GBP		200		313,271
7.00%, 2/15/18 (b)			547		856,796
DaVita HealthCare Partners, Inc., 5.75%, 8/15/22	USD		1,319		1,375,057
HCA Holdings, Inc., 6.25%, 2/15/21			1,619	��	1,708,045
HCA, Inc.:
8.50%, 4/15/19			200		221,500
6.50%, 2/15/20			3,030		3,393,600
7.88%, 2/15/20			405		449,044
7.25%, 9/15/20			3,560		3,951,600
5.88%, 3/15/22			325		350,188
4.75%, 5/01/23			1,544		1,540,140
Hologic, Inc., 6.25%, 8/01/20 (b)			2,366		2,496,130
IASIS Healthcare LLC, 8.38%, 5/15/19			965		993,950
INC Research LLC, 11.50%, 7/15/19 (b)			516		550,830
inVentiv Health, Inc., 9.00%, 1/15/18 (b)			930		969,525
Omnicare, Inc.:
7.75%, 6/01/20			1,460		1,620,600
3.75%, 4/01/42 (d)			236		246,030
Symbion, Inc., 8.00%, 6/15/16			510		532,950
Tenet Healthcare Corp.:
6.25%, 11/01/18			1,579		1,748,742
8.88%, 7/01/19			4,505		5,090,650
6.75%, 2/01/20			775		829,250
4.50%, 4/01/21 (b)			1,059		1,044,439
Vanguard Health Holding Co. II LLC:
8.00%, 2/01/18			357		380,205
7.75%, 2/01/19 (b)			685		733,806
Voyage Care Bondco Plc, 6.50%, 8/01/18	GBP		170		262,412
					35,685,455
Health Care Technology — 1.0%
IMS Health, Inc. (b):
12.50%, 3/01/18	USD		3,290		3,964,450
6.00%, 11/01/20			212		220,480
					4,184,930
Hotels, Restaurants & Leisure — 3.3%
Caesars Entertainment Operating Co., Inc.:
10.00%, 12/15/18			732		483,120
8.50%, 2/15/20			298		290,550
Caesars Operating Escrow LLC, 9.00%, 2/15/20 (b)			1,484		1,465,450
Carlson Wagonlit BV, 6.88%, 6/15/19 (b)			485		506,825
Cirsa Funding Luxembourg SA, 8.75%, 5/15/18	EUR		680		870,018
Diamond Resorts Corp., 12.00%, 8/15/18	USD		1,770		1,947,000
El Dorado Resorts LLC, 8.63%, 6/15/19 (b)			200		198,750
Enterprise Inns Plc, 6.50%, 12/06/18	GBP		477		710,969
Gategroup Finance Luxembourg SA, 6.75%, 3/01/19	EUR		453		609,156
Little Traverse Bay Bands of Odawa Indians, 9.00%, 8/31/20 (b)	USD		433		415,680
MCE Finance, Ltd., 5.00%, 2/15/21 (b)			998		998,000
MTR Gaming Group, Inc., 11.50%, 8/01/19 (g)			221		229,944
Regal Entertainment Group, 5.75%, 2/01/25			385		377,300

Corporate Bonds		Par (000)		Value
Hotels, Restaurants & Leisure (concluded)
Six Flags Entertainment Corp., 5.25%, 1/15/21 (b)	USD		882	$	864,360
Station Casinos LLC:
3.66%, 6/18/18			991		991,000
7.50%, 3/01/21 (b)(h)			1,730		1,740,813
Travelport LLC (c):
4.91%, 9/01/14			245		222,950
6.31%, 12/01/16 (b)(g)			640		580,407
Tropicana Entertainment LLC, 9.63%, 12/15/14 (a)(j)			475		—
The Unique Pub Finance Co. Plc, Series A3, 6.54%, 3/30/21	GBP		200		302,652
Wynn Las Vegas LLC, 5.38%, 3/15/22	USD		579		608,674
					14,413,618
Household Durables — 2.6%
Algeco Scotsman Global Finance Plc, 9.00%, 10/15/18	EUR		205		278,343
Ashton Woods USA LLC, 6.88%, 2/15/21 (b)	USD		336		337,680
Beazer Homes USA, Inc., 6.63%, 4/15/18			55		58,781
Brookfield Residential Properties, Inc., 6.50%, 12/15/20 (b)			605		641,300
Jarden Corp., 7.50%, 1/15/20	EUR		447		628,808
K. Hovnanian Enterprises, Inc., 7.25%, 10/15/20 (b)	USD		1,400		1,540,000
Libbey Glass, Inc., 6.88%, 5/15/20			905		970,613
PH Holding LLC, 9.75%, 12/31/17			510		499,800
Pulte Group, Inc., 6.38%, 5/15/33			280		284,200
The Ryland Group, Inc., 6.63%, 5/01/20			500		550,000
Spie BondCo 3 SCA, 11.00%, 8/15/19	EUR		339		493,478
Standard Pacific Corp.:
10.75%, 9/15/16	USD		2,050		2,552,250
8.38%, 1/15/21			1,450		1,721,875
United Rentals North America, Inc., 5.75%, 7/15/18			379		407,899
William Lyon Homes, Inc., 8.50%, 11/15/20 (b)			445		478,375
					11,443,402
Household Products — 0.8%
Ontex IV SA:
7.50%, 4/15/18	EUR		100		135,777
7.50%, 4/15/18 (b)			220		298,710
9.00%, 4/15/19			321		429,559
Spectrum Brands Escrow Corp. (b):
6.38%, 11/15/20	USD		568		604,210
6.63%, 11/15/22			370		398,675
Spectrum Brands, Inc.:
9.50%, 6/15/18			1,395		1,581,581
6.75%, 3/15/20 (b)			142		153,005
					3,601,517
Independent Power Producers & Energy Traders — 3.6%
The AES Corp., 7.38%, 7/01/21			405		457,650
Calpine Corp. (b):
7.25%, 10/15/17			238		253,172
7.50%, 2/15/21			135		146,812
7.88%, 1/15/23			590		653,425
Energy Future Intermediate Holding Co. LLC:
6.88%, 8/15/17 (b)			1,115		1,176,325
10.00%, 12/01/20			3,357		3,810,195
10.00%, 12/01/20 (b)			2,090		2,356,475
GenOn REMA LLC:
Series B 9.24%, 7/02/17			357		393,673
Series C, 9.68%, 7/02/26			445		485,050
Laredo Petroleum, Inc.:
9.50%, 2/15/19			730		824,900
7.38%, 5/01/22			550		596,750
NRG Energy, Inc.:
7.63%, 1/15/18			2,243		2,571,039
6.63%, 3/15/23 (b)			965		1,027,725

See Notes to Financial Statements.

38 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

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

Corporate Bonds		Par (000)		Value
Independent Power Producers & Energy Traders (concluded)
QEP Resources, Inc.:
5.38%, 10/01/22	USD		488	$	511,180
5.25%, 5/01/23			380		393,300
					15,657,671
Industrial Conglomerates — 0.2%
Sequa Corp., 7.00%, 12/15/17 (b)			850		856,375
Insurance — 0.6%
Alliant Holdings I, Inc., 7.88%, 12/15/20 (b)			1,661		1,669,305
CNO Financial Group, Inc., 6.38%, 10/01/20 (b)			332		351,920
MPL 2 Acquisition Canco, Inc., 9.88%, 8/15/18 (b)			375		371,250
TMF Group Holding B.V., 9.88%, 12/01/19	EUR		270		356,023
					2,748,498
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		219		219,000
					475,867
IT Services — 3.3%
Ceridian Corp., 8.88%, 7/15/19 (b)			1,855		2,091,512
Epicor Software Corp., 8.63%, 5/01/19			820		883,550
First Data Corp.:
7.38%, 6/15/19 (b)			2,315		2,433,644
8.88%, 8/15/20 (b)			795		878,475
6.75%, 11/01/20 (b)			2,793		2,866,316
8.25%, 1/15/21 (b)			186		190,185
11.25%, 1/15/21 (b)			733		747,660
12.63%, 1/15/21			1,170		1,247,512
SunGard Data Systems, Inc.:
7.38%, 11/15/18			810		869,738
6.63%, 11/01/19 (b)			1,190		1,222,725
WEX, Inc., 4.75%, 2/01/23 (b)			726		702,405
					14,133,722
Machinery — 1.7%
Dematic SA, 7.75%, 12/15/20 (b)			137		140,083
The Manitowoc Co., Inc., 5.88%, 10/15/22			705		722,625
Silver II Borrower/Silver II US Holdings LLC, 7.75%, 12/15/20 (b)			417		433,680
SPX Corp., 6.88%, 9/01/17			260		290,550
Terex Corp., 6.00%, 5/15/21			700		726,250
Trinseo Materials Operating SCA, 8.75%, 2/01/19 (b)			606		603,727
UR Merger Sub Corp.:
7.38%, 5/15/20			655		717,225
7.63%, 4/15/22			2,966		3,284,845
6.13%, 6/15/23			280		294,000
					7,212,985
Media — 10.0%
Affinion Group, Inc., 7.88%, 12/15/18			582		442,320
AMC Networks, Inc.:
7.75%, 7/15/21			330		374,550
4.75%, 12/15/22			529		527,016
Cablevision Systems Corp., 5.88%, 9/15/22			820		795,400
CCO Holdings LLC:
5.25%, 9/30/22			1,155		1,136,231
5.13%, 2/15/23			920		897,000
Cengage Learning Acquisitions, Inc., 11.50%, 4/15/20 (b)			942		744,180
Checkout Holding Corp., 11.47%, 11/15/15 (b)(e)			639		472,061
Cinemark USA, Inc.:
8.63%, 6/15/19			375		415,781
5.13%, 12/15/22 (b)			314		315,570
Clear Channel Communications, Inc., 9.00%, 12/15/19 (b)			1,101		1,023,930

Corporate Bonds		Par (000)		Value
Media (concluded)
Clear Channel Worldwide Holdings, Inc.:
6.50%, 11/15/22 (b)	USD		916	$	957,220
6.50%, 11/15/22 (b)			2,477		2,607,042
Series B, 7.63%, 3/15/20			1,677		1,735,695
DISH DBS Corp.:
5.88%, 7/15/22			1,505		1,587,775
5.00%, 3/15/23 (b)			1,000		992,500
Harron Communications LP, 9.13%, 4/01/20 (b)			470		517,000
Intelsat Jackson Holdings SA:
7.25%, 10/15/20			1,030		1,104,675
6.63%, 12/15/22 (b)			259		260,943
Intelsat Luxembourg SA:
11.25%, 2/04/17			910		966,875
11.50%, 2/04/17			3,306		3,517,130
Interactive Data Corp., 10.25%, 8/01/18			1,990		2,256,162
The Interpublic Group of Cos., Inc., 10.00%, 7/15/17			500		539,375
Kabel Deutschland Vertrieb und Service GmbH & Co. KG, 6.50%, 6/29/18 (b)	EUR		505		705,981
Live Nation Entertainment, Inc., 8.13%, 5/15/18 (b)	USD		1,130		1,226,050
Lynx I Corp., 6.00%, 4/15/21	GBP		1,676		2,612,497
Lynx II Corp., 6.38%, 4/15/23 (b)	USD		285		295,331
The McClatchy Co., 9.00%, 12/15/22 (b)			640		676,800
NAI Entertainment Holdings LLC, 8.25%, 12/15/17 (b)			743		809,870
Nara Cable Funding Ltd.:
8.88%, 12/01/18	EUR		200		274,165
8.88%, 12/01/18 (b)	USD		200		206,500
Nielsen Finance LLC:
11.63%, 2/01/14			91		99,418
7.75%, 10/15/18			1,779		1,970,243
Odeon & UCI Finco Plc, 9.00%, 8/01/18 (b)	GBP		308		485,942
ProQuest LLC, 9.00%, 10/15/18 (b)	USD		270		267,975
Sterling Entertainment Corp., 10.00%, 12/15/19			1,275		1,275,000
Unitymedia GmbH:
9.63%, 12/01/19 (b)	EUR		845		1,220,679
9.50%, 3/15/21			518		770,006
Unitymedia Hessen GmbH & Co. KG:
7.50%, 3/15/19			1,249		1,773,312
5.50%, 1/15/23 (b)	USD		760		767,600
Univision Communications, Inc., 6.75%, 9/15/22 (b)			652		704,160
UPCB Finance II Ltd.:
6.38%, 7/01/20			514		711,316
6.38%, 7/01/20 (b)	EUR		1,218		1,685,569
WaveDivision Escrow LLC/WaveDivision Escrow Corp., 8.13%, 9/01/20 (b)	USD		531		557,550
Ziggo Bond Co. BV, 8.00%, 5/15/18 (b)	EUR		273		384,928
					43,667,323
Metals & Mining — 4.8%
ArcelorMittal:
9.50%, 2/15/15	USD		445		502,294
4.25%, 8/05/15			581		601,534
4.25%, 3/01/16			175		180,250
5.00%, 2/25/17			620		645,110
6.13%, 6/01/18			619		667,466
6.00%, 3/01/21			87		92,331
6.75%, 2/25/22			727		800,505
7.50%, 10/15/39			90		93,300
7.25%, 3/01/41			342		341,145
Eco-Bat Finance Plc, 7.75%, 2/15/17	EUR		585		788,568
FMG Resources August 2006 Property Ltd. (b):
6.38%, 2/01/16	USD		661		689,092
6.00%, 4/01/17			709		739,132
Global Brass and Copper, Inc., 9.50%, 6/01/19 (b)			445		483,938
GoldCorp, Inc., 2.00%, 8/01/14 (d)			1,575		1,649,812
Kaiser Aluminum Corp., 8.25%, 6/01/20			330		368,775

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 39

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

Corporate Bonds		Par (000)		Value
Metals & Mining (concluded)
New Gold, Inc. (b):
7.00%, 4/15/20	USD		225	$	243,000
6.25%, 11/15/22			445		468,363
New World Resources NV:
7.88%, 5/01/18	EUR		324		433,776
7.88%, 1/15/21			360		434,748
Newmont Mining Corp., Series A, 1.25%, 7/15/14 (d)	USD		2,170		2,396,494
Novelis, Inc., 8.75%, 12/15/20			4,560		5,107,200
Peninsula Energy Ltd., 11.00%, 12/14/14			800		800,000
Perstorp Holding AB, 8.75%, 5/15/17 (b)			285		299,250
Schmolz + Bickenbach Luxembourg SA, 9.88%, 5/15/19	EUR		364		425,464
Steel Dynamics, Inc., 6.38%, 8/15/22 (b)	USD		355		379,850
Taseko Mines Ltd., 7.75%, 4/15/19			605		601,975
Vedanta Resources Plc, 8.25%, 6/07/21 (b)			415		472,063
Walter Energy, Inc., 9.88%, 12/15/20 (b)			198		215,325
					20,920,760
Multiline Retail — 0.5%
Dollar General Corp., 4.13%, 7/15/17			1,169		1,236,217
Dufry Finance SCA, 5.50%, 10/15/20 (b)			661		689,093
					1,925,310
Oil, Gas & Consumable Fuels — 9.1%
Access Midstream Partners LP:
6.13%, 7/15/22			405		434,362
4.88%, 5/15/23			555		549,450
Alpha Appalachia Holdings, Inc., 3.25%, 8/01/15 (d)			1,335		1,274,091
Aurora USA Oil & Gas, Inc., 9.88%, 2/15/17 (b)			990		1,064,250
BreitBurn Energy Partners LP, 7.88%, 4/15/22			375		398,437
Carrizo Oil & Gas, Inc., 7.50%, 9/15/20			354		371,700
Chaparral Energy, Inc., 7.63%, 11/15/22			325		352,625
Chesapeake Energy Corp.:
7.25%, 12/15/18			180		203,400
6.63%, 8/15/20			260		284,700
6.88%, 11/15/20			260		286,000
6.13%, 2/15/21			122		129,320
Concho Resources, Inc.:
7.00%, 1/15/21			245		270,725
6.50%, 1/15/22			436		475,240
5.50%, 10/01/22			332		345,695
CONSOL Energy, Inc., 8.25%, 4/01/20			460		507,150
Continental Resources, Inc., 7.13%, 4/01/21			545		618,575
Crosstex Energy LP, 8.88%, 2/15/18			225		242,438
Crown Oil Partners IV LP, 15.00%, 3/07/15			904		950,629
CVR Refining LLC/Coffeyville Finance, Inc., 6.50%, 11/01/22 (b)			565		569,237
Denbury Resources, Inc., 4.63%, 7/15/23			1,132		1,110,775
Energy XXI Gulf Coast, Inc.:
9.25%, 12/15/17			695		785,350
7.75%, 6/15/19			795		852,637
EP Energy LLC/Everest Acquisition Finance, Inc.:
6.88%, 5/01/19			510		555,900
7.75%, 9/01/22			315		340,988
EV Energy Partners LP, 8.00%, 4/15/19			215		225,213
Halcon Resources Corp., 8.88%, 5/15/21 (b)			616		662,200
Hilcorp Energy I LP, 7.63%, 4/15/21 (b)			392		432,180
Holly Energy Partners LP, 6.50%, 3/01/20 (b)			230		246,100
Kodiak Oil & Gas Corp., 8.13%, 12/01/19			510		573,750
Linn Energy LLC:
6.50%, 5/15/19			66		68,310
6.25%, 11/01/19 (b)			1,760		1,795,200
8.63%, 4/15/20			165		182,531
7.75%, 2/01/21			235		253,800
MarkWest Energy Partners LP:
5.50%, 2/15/23			350		367,500
4.50%, 7/15/23			221		216,028

Corporate Bonds		Par (000)		Value
Oil, Gas & Consumable Fuels (concluded)
Newfield Exploration Co., 6.88%, 2/01/20	USD		1,150	$	1,233,375
Northern Oil and Gas, Inc., 8.00%, 6/01/20			460		480,700
Oasis Petroleum, Inc.:
7.25%, 2/01/19			295		318,600
6.50%, 11/01/21			430		464,400
Offshore Group Investments Ltd., 11.50%, 8/01/15			1,023		1,115,070
PBF Holding Co. LLC, 8.25%, 2/15/20 (b)			325		353,438
PDC Energy, Inc., 7.75%, 10/15/22 (b)			310		327,825
PetroBakken Energy Ltd., 8.63%, 2/01/20 (b)			906		924,120
Petroleum Geo-Services ASA, 7.38%, 12/15/18 (b)			850		935,000
Plains Exploration & Production Co., 6.88%, 2/15/23			1,550		1,786,375
Range Resources Corp.:
8.00%, 5/15/19			515		566,500
5.75%, 6/01/21			1,496		1,593,240
5.00%, 8/15/22			593		606,342
Regency Energy Partners LP:
6.88%, 12/01/18			581		627,480
5.50%, 4/15/23			964		1,017,020
Sabine Pass Liquefaction LLC, 5.63%, 2/01/21 (b)			2,388		2,465,610
Sabine Pass Liquified Natural Gas LP:
7.50%, 11/30/16			2,245		2,480,725
6.50%, 11/01/20 (b)			480		506,400
SandRidge Energy, Inc., 7.50%, 2/15/23			762		798,195
SESI LLC:
6.38%, 5/01/19			480		514,800
7.13%, 12/15/21			345		382,087
SM Energy Co.:
6.63%, 2/15/19			195		209,138
6.50%, 11/15/21			390		424,125
6.50%, 1/01/23			575		622,437
Tesoro Logistics LP/Tesoro Logistics Finance Corp., 5.88%, 10/01/20 (b)			229		238,733
Vanguard Natural Resources, 7.88%, 4/01/20			400		420,000
					39,408,221
Paper & Forest Products — 0.7%
Ainsworth Lumber Co. Ltd., 7.50%, 12/15/17 (b)			520		560,300
Boise Paper Holdings LLC:
9.00%, 11/01/17			85		91,906
8.00%, 4/01/20			180		198,450
Clearwater Paper Corp., 7.13%, 11/01/18			865		936,363
Longview Fibre Paper & Packaging, Inc., 8.00%, 6/01/16 (b)			505		530,250
NewPage Corp., 11.38%, 12/31/14 (a)(j)			2,892		—
Sappi Papier Holding GmbH, 8.38%, 6/15/19 (b)			200		224,000
Unifrax I LLC, 7.50%, 2/15/19 (b)			385		390,775
					2,932,044
Pharmaceuticals — 1.5%
Capsugel Finance Co. SCA:
9.88%, 8/01/19	EUR		100		146,874
9.88%, 8/01/19 (b)			300		440,623
Elan Corp. Plc, 6.25%, 10/15/19 (b)	USD		756		866,565
Jaguar Holding Co. II/Jaguar Merger Sub, Inc., 9.50%, 12/01/19 (b)			632		725,220
Mylan, Inc., 6.00%, 11/15/18 (b)			160		176,219
Valeant Pharmaceuticals International (b):
6.50%, 7/15/16			640		672,400
6.88%, 12/01/18			1,128		1,225,290
6.38%, 10/15/20			600		645,750
6.75%, 8/15/21			725		783,906
Warner Chilcott Co. LLC, 7.75%, 9/15/18			905		977,400
					6,660,247
Professional Services — 0.3%
La Financiere Atalian SA, 7.25%, 1/15/20	EUR		324		423,633
Truven Health Analytics, Inc., 10.63%, 6/01/20 (b)	USD		760		851,200
					1,274,833

See Notes to Financial Statements.

40 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

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

Corporate Bonds			Par (000)		Value
Real Estate Investment Trusts (REITs) — 0.7%
Cantor Commercial Real Estate Co. LP, 7.75%, 2/15/18 (b)		USD		417	$	419,085
Felcor Lodging LP:
6.75%, 6/01/19				1,507		1,619,083
5.63%, 3/01/23 (b)				379		381,369
The Rouse Co. LP, 6.75%, 11/09/15				770		800,800
						3,220,337
Real Estate Management & Development — 2.6%
CBRE Services, Inc., 6.63%, 10/15/20				500		540,000
Country Garden Holdings Co. Ltd., 7.50%, 1/10/23 (b)				226		234,475
Crescent Resources LLC/Crescent Ventures, Inc., 10.25%, 8/15/17 (b)	��			1,270		1,368,425
Forest City Enterprises, Inc., 7.63%, 6/01/15				687		685,282
IVG Immobilien AG, 8.00% (a)(c)(j)(k)		EUR		300		227,166
Mattamy Group Corp., 6.50%, 11/15/20 (b)		USD		550		547,938
Realogy Corp.:
11.50%, 4/15/17				575		613,094
12.00%, 4/15/17				145		154,788
7.88%, 2/15/19 (b)				2,995		3,257,062
7.63%, 1/15/20 (b)				750		845,625
9.00%, 1/15/20 (b)				485		556,537
Shea Homes LP, 8.63%, 5/15/19				2,005		2,225,550
						11,255,942
Road & Rail — 0.5%
The Hertz Corp.:
7.50%, 10/15/18				820		895,850
6.75%, 4/15/19 (b)				430		463,325
7.38%, 1/15/21				645		711,112
Hertz Holdings Netherlands BV, 8.50%, 7/31/15		EUR		71		98,557
						2,168,844
Semiconductors & Semiconductor Equipment — 0.4%
Micron Technology, Inc., Series C, 2.38%, 5/01/32 (b)(d)		USD		391		435,232
NXP BV/NXP Funding LLC, 5.75%, 2/15/21 (b)				500		511,250
Spansion LLC, 7.88%, 11/15/17				850		896,750
						1,843,232
Software — 1.2%
IAC/InterActiveCorp, 4.75%, 12/15/22 (b)				621		607,027
Igloo Holdings Corp., 8.25%, 12/15/17 (b)(g)				436		446,900
Infor US, Inc., 9.38%, 4/01/19				2,270		2,548,075
Interface Security Systems Holdings, Inc., 9.25%, 1/15/18 (b)				219		222,833
Nuance Communications, Inc., 5.38%, 8/15/20 (b)				740		749,250
Sophia LP, 9.75%, 1/15/19 (b)				645		713,531
						5,287,616
Specialty Retail — 3.0%
Asbury Automotive Group, Inc., 8.38%, 11/15/20				540		602,100
Claire’s Stores, Inc., 9.00%, 3/15/19 (b)				1,288		1,429,680
House of Fraser Funding Plc:
8.88%, 8/15/18		GBP		221		355,384
8.88%, 8/15/18 (b)				420		675,391
Limited Brands, Inc.:
8.50%, 6/15/19		USD		1,170		1,433,250
5.63%, 2/15/22				235		248,513
Michaels Stores, Inc., 7.75%, 11/01/18				346		377,572
New Academy Finance Co., 8.00%, 6/15/18 (b)(g)				319		329,368
Party City Holdings, Inc., 8.88%, 8/01/20 (b)				1,500		1,631,250
Penske Automotive Group, Inc., 5.75%, 10/01/22 (b)				1,650		1,726,312
QVC, Inc.:
7.13%, 4/15/17 (b)				340		354,130
7.50%, 10/01/19 (b)				920		1,015,397
7.38%, 10/15/20 (b)				440		487,713
5.13%, 7/02/22				26		27,493

Corporate Bonds		Par (000)		Value
Specialty Retail (concluded)
Sally Holdings LLC:
6.88%, 11/15/19	USD		805	$	897,575
5.75%, 6/01/22			753		795,356
Sonic Automotive, Inc., 9.00%, 3/15/18			550		605,000
					12,991,484
Textiles, Apparel & Luxury Goods — 0.3%
Levi Strauss & Co., 6.88%, 5/01/22			645		700,632
Phillips-Van Heusen Corp., 4.50%, 12/15/22			373		367,871
					1,068,503
Thrifts & Mortgage Finance — 0.0%
Radian Group, Inc., 2.25%, 3/01/19 (d)			105		112,481
Trading Companies & Distributors — 0.7%
Ashtead Capital, Inc., 6.50%, 7/15/22 (b)			735		791,963
Doric Nimrod Air Finance Alpha Ltd., Series 2012-1 (b):
Class A, 5.13%, 11/30/24			1,130		1,214,750
Class B, 6.50%, 5/30/21			855		903,869
					2,910,582
Transportation Infrastructure — 0.2%
Aguila 3 SA, 7.88%, 1/31/18 (b)			632		669,920
Wireless Telecommunication Services — 4.3%
Cricket Communications, Inc., 7.75%, 10/15/20			865		882,300
Crown Castle International Corp., 5.25%, 1/15/23 (b)			1,658		1,699,450
Digicel Group Ltd. (b):
8.25%, 9/01/17			1,650		1,740,750
8.25%, 9/30/20			1,430		1,525,095
6.00%, 4/15/21 (h)			850		847,875
MetroPCS Wireless, Inc., 6.63%, 11/15/20			1,016		1,062,990
NII Capital Corp., 7.63%, 4/01/21			517		361,900
Phones4u Finance Plc:
9.50%, 4/01/18	GBP		200		313,271
9.50%, 4/01/18 (b)			545		853,663
Sprint Capital Corp., 6.88%, 11/15/28	USD		2,273		2,295,730
Sprint Nextel Corp. (b):
9.00%, 11/15/18			3,574		4,431,760
7.00%, 3/01/20			2,205		2,579,850
					18,594,634
Total Corporate Bonds — 103.6%					450,611,986
Floating Rate Loan Interests (c)
Airlines — 1.1%
Delta Air Lines, Inc., Term Loan B, 4.50%, 4/20/17			647		652,926
Northwest Airlines, Inc., Term Loan:
2.32%, 3/10/17			1,061		987,791
2.32%, 3/10/17			1,922		1,789,382
1.70%, 9/10/18			872		778,522
1.70%, 9/10/18			865		772,272
					4,980,893
Auto Components — 1.3%
Federal-Mogul Corp.:
Term Loan B, 2.14%, 12/29/14			2,563		2,384,748
Term Loan C, 2.14%, 12/28/15			1,230		1,143,487
Schaeffler AG, Term Loan B2, 6.00%, 1/27/17			2,135		2,134,466
					5,662,701
Building Products — 0.1%
Wilsonart International Holdings LLC, Term Loan B, 5.50%, 10/31/19			625		631,562
Capital Markets — 0.6%
American Capital Holdings, Inc., Term Loan, 5.50%, 8/22/16			1,382		1,395,820

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 41

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

Floating Rate Loan Interests (c)		Par (000)		Value
Capital Markets (concluded)
Nuveen Investments, Inc.:
Incremental Term Loan, 7.25%, 5/13/17	USD		725	$	728,625
Second Lien Term Loan, 8.25%, 2/28/19			615		627,300
					2,751,745
Chemicals — 0.4%
INEOS US Finance LLC, 6 Year Term Loan, 6.50%, 5/04/18			558		569,695
US Coatings Acquisition, Inc.:
Term Loan, 4.75%, 2/03/20			1,040		1,052,626
Term Loan B, 5.25%, 2/03/20	EUR		115		151,667
					1,773,988
Commercial Services & Supplies — 0.4%
AWAS Finance Luxembourg Sarl, Term Loan B, 5.25%, 6/10/16	USD		625		629,881
Delos Aircraft, Inc., Term Loan 2, 4.75%, 4/12/16			875		880,101
					1,509,982
Communications Equipment — 1.4%
Alcatel-Lucent:
Term Loan C, 7.25%, 1/31/19			2,080		2,102,880
Term Loan D, 7.75%, 1/31/19	EUR		810		1,060,287
Avaya, Inc., Term Loan B5, 8.00%, 3/30/18	USD		186		186,517
Zayo Group LLC, Refinancing Term Loan B, 5.25%, 7/12/19			2,691		2,699,297
					6,048,981
Construction & Engineering — 0.7%
Safway Services LLC, Mezzanine Loan, 9.88%, 12/16/17			3,000		3,000,000
Construction Materials — 0.4%
HD Supply, Inc., Senior Debt B, 4.50%, 10/12/17			1,642		1,646,117
Consumer Finance — 1.4%
Springleaf Financial Funding Co., Term Loan, 5.50%, 5/10/17			5,880		5,900,815
Diversified Consumer Services — 0.2%
Laureate Education, Inc., Extended Term Loan, 5.25%, 6/18/18			213		213,964
ServiceMaster Co., New Term Loan, 2.70%, 4/01/17			680		677,693
					891,657
Diversified Telecommunication Services — 0.8%
Level 3 Financing, Inc.:
2016 Term Loan B, 4.75%, 2/01/16			499		504,361
2019 Term Loan B, 5.25%, 8/01/19			405		409,135
Term Loan, 4.75%, 8/01/19			2,500		2,520,000
					3,433,496
Energy Equipment & Services — 1.6%
Dynegy Midwest Generation LLC, Coal Co. Term Loan, 9.25%, 8/04/16			2,546		2,627,341
Dynegy Power LLC, Gas Co. Term Loan, 9.25%, 8/04/16			4,108		4,272,285
Tervita Corp., Incremental Term Loan, 6.50%, 5/01/18			215		216,110
					7,115,736
Food & Staples Retailing — 0.0%
Rite Aid Corp., Second Lien Term Loan, 5.75%, 7/07/20			160		163,645
Food Products — 0.1%
AdvancePierre Foods, Inc., Term Loan, 5.75%, 7/10/17			320		323,901
Health Care Equipment & Supplies — 0.5%
Bausch & Lomb, Inc., Term Loan B, 5.25%, 5/17/19			567		570,996
Capital Safety North America Holdings, Inc., Term Loan, 4.50%, 1/21/19			1,112		1,111,600

Floating Rate Loan Interests (c)		Par (000)		Value
Health Care Equipment & Supplies (concluded)
LHP Hospital Group, Inc., Term Loan, 9.00%, 7/03/18	USD		413	$	422,216
					2,104,812
Health Care Providers & Services — 0.4%
Genesis HealthCare Corp., Term Loan B, 10.00%—10.75%, 9/25/17			278		272,487
Harden Healthcare LLC:
Add on Term Loan A, 7.75%, 3/02/15			549		537,061
Term Loan A, 8.50%, 3/02/15			478		473,526
inVentiv Health, Inc., Combined Term Loan, 7.50%, 8/04/16			576		566,604
					1,849,678
Hotels, Restaurants & Leisure — 3.2%
Caesars Entertainment Operating Co., Inc.:
Term Loan B1, 3.20%, 1/28/15			766		763,261
Term Loan B3, 3.20%—3.31%, 1/28/15			34		34,289
Harrah’s Property Co., Mezzanine Term Loan, 3.69%, 2/13/14			8,647		7,954,872
MGM Resorts International, Term Loan B, 4.25%, 12/20/19			1,840		1,861,160
Station Casinos, Inc., Term Loan B:
5.50%, 9/27/19			1,531		1,540,089
5.00%, 2/13/20			1,485		1,497,375
Travelport Holdings Ltd.:
Extended Tranche A Term Loan, 6.40%, 12/01/16			294		103,988
Extended Tranche B Term Loan, 13.80%, 12/01/16			985		91,946
					13,846,980
Industrial Conglomerates — 0.2%
Sequa Corp., Term Loan B, 5.25%, 6/19/17			860		869,911
Insurance — 0.1%
Alliant Holdings I, Inc., Term Loan B, 5.00%, 12/20/19			500		503,750
IT Services — 0.3%
Ceridian Corp., Extended Term Loan, 5.95%, 5/09/17			104		104,822
First Data Corp., Extended 2018 Term Loan B, 4.20%, 3/23/18			1,160		1,145,384
					1,250,206
Leisure Equipment & Products — 0.1%
Eastman Kodak Co., DIP Term Loan B, 8.50%, 7/19/13			355		354,732
Life Sciences Tools & Services — 0.1%
Patheon, Inc., Term Loan, 7.25%, 12/06/18			304		307,660
Machinery — 0.7%
Rexnord Corp., Term Loan B, 4.50%, 4/02/18			871		876,653
Silver II US Holdings LLC, Term Loan, 5.00%, 12/05/19			2,355		2,355,000
					3,231,653
Media — 3.7%
Cengage Learning Acquisitions, Inc.:
Non-Extended Term Loan, 2.71%, 7/03/14			480		375,549
Tranche 1 Incremental, 7.50%, 7/03/14			2,298		1,826,513
Cequel Communications LLC, Term Loan B, 4.00%, 2/14/19			425		427,355
Clear Channel Communications, Inc.:
Term Loan B, 3.85%, 1/29/16			1,968		1,682,959
Term Loan C, 3.85%, 1/29/16			581		490,625
EMI Music Publishing Ltd., Term Loan B, 5.50%, 6/29/18			632		638,617
Getty Images, Inc., Term Loan B, 4.75%, 10/18/19			607		611,484
Intelsat Jackson Holdings SA, Term Loan B1, 4.50%, 4/02/18			8,037		8,112,183

See Notes to Financial Statements.

42 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

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

Floating Rate Loan Interests (c)		Par (000)		Value
Media (concluded)
Interactive Data Corp., Term Loan B, 3.75%, 2/11/18	USD		608	$	609,327
Univision Communications, Inc., Extended Term Loan, 4.45%, 3/31/17			400		400,103
Virgin Media Investment Holdings Ltd., Term Loan B, 3.50%, 2/17/20			1,115		1,108,343
					16,283,058
Metals & Mining — 0.9%
Constellium Holdco BV, Term Loan B, 9.25%, 5/25/18			627		639,387
FMG America Finance, Inc., Term Loan, 5.25%, 10/18/17			3,307		3,346,327
					3,985,714
Multiline Retail — 0.4%
HEMA Holding BV, Mezzanine, 8.62%, 7/05/17 (g)	EUR		1,480		1,710,092
Oil, Gas & Consumable Fuels — 1.5%
Chesapeake Energy Corp., Unsecured Term Loan, 5.75%, 12/01/17	USD		3,255		3,322,476
Obsidian Natural Gas Trust, Term Loan, 7.00%, 11/02/15			1,247		1,258,978
Samson Investment Co., Second Lien Term Loan, 6.00%, 9/25/18			345		348,236
Vantage Drilling Co., Term Loan, 6.25%, 10/26/17			1,437		1,443,996
					6,373,686
Pharmaceuticals — 0.7%
Aptalis Pharma, Inc., Term Loan B, 5.50%, 2/10/17			1,470		1,472,940
Par Pharmaceutica, Term Loan B, 4.25%, 9/28/19			1,057		1,056,028
Pharmaceutical Product Development, Inc., Term Loan B, 4.25%, 12/05/18			460		462,555
					2,991,523
Professional Services — 0.1%
Truven Health Analytics, Inc., Term Loan B, 5.75%, 6/01/19			547		552,383
Real Estate Investment Trusts (REITs) — 0.4%
iStar Financial, Inc., Term Loan, 4.50%, 9/28/17			1,539		1,539,667
Real Estate Management & Development — 0.3%
Realogy Corp.:
Extended Letter of Credit, 4.46%, 10/10/16			136		136,303
Extended Term Loan, 4.42%, 10/10/16			1,084		1,084,047
					1,220,350
Road & Rail — 0.1%
Genesee & Wyoming, Inc., Term Loan A, 2.70%, 9/29/17			426		426,305
Semiconductors & Semiconductor Equipment — 0.1%
Freescale Semiconductor, Inc., Extended Term Loan B, 4.45%, 12/01/16			440		440,000
Software — 0.6%
GCA Services Group, Inc., Second Lien Term Loan, 9.25%, 10/22/20			85		84,150
Infor US, Inc., Term Loan B2, 5.25%, 4/05/18			1,811		1,830,524
Kronos, Inc., Second Lien Term Loan, 9.75%, 4/30/20			760		790,400
					2,705,074
Specialty Retail — 0.2%
David’s Bridal, Inc., Term Loan B, 5.00%, 10/11/19			800		808,200
Textiles, Apparel & Luxury Goods — 0.5%
Ascend Performance Materials LLC, Term Loan B, 6.75%, 4/10/18			1,628		1,643,977
PVH Corp., Term Loan B, 3.25%, 12/19/19			650		655,213
					2,299,190
Thrifts & Mortgage Finance — 0.2%
Ocwen Financial Corp., Term Loan, 5.00%, 1/22/18			900		910,872

Floating Rate Loan Interests (c)		Par (000)		Value
Wireless Telecommunication Services — 1.2%
Vodafone Americas Finance 2, Inc. (g):
Term Loan, 6.88%, 8/11/15	USD		3,046	$	3,106,615
Term Loan B, 6.25%, 7/11/16			1,908		1,960,277
					5,066,892
Total Floating Rate Loan Interests — 27.0%					117,467,607
Other Interests (l)		Beneficial Interest (000)
Auto Components — 0.0%
Lear Corp. Escrow			790		19,750
Chemicals — 0.0%
Wellman Holdings, Inc., Litigation Trust Certificate (a)			4,650		47
Hotels, Restaurants & Leisure — 0.0%
Buffets, Inc. (a)			970		10
Media — 0.0%
Adelphia Escrow (a)			1,250		12
Adelphia Recovery Trust (a)			1,568		157
					169
Total Other Interests — 0.0%					19,976
Preferred Securities		Shares
Preferred Stocks
Auto Components — 1.0%
Dana Holding Corp., 4.00% (b)(d)			29,460		4,179,637
Real Estate Investment Trusts (REITs) — 0.1%
MPG Office Trust, Inc., Series A, 7.63% (a)			13,326		303,167
Thrifts & Mortgage Finance — 0.0%
Fannie Mae, Series O, 7.00% (a)(c)			40,000		154,000
Total Preferred Stocks — 1.1%					4,636,804
Trust Preferreds
Diversified Financial Services — 1.1%
GMAC Capital Trust I, Series 2, 8.13%, 2/15/40 (c)			190,520		5,039,201
Total Preferred Securities — 2.2%					9,676,005
Warrants (m)
Containers & Packaging — 0.0%
MDP Acquisitions Plc (issued/exercisable 12/31/02, 5 shares for 1 warrant, Expires 10/01/13, Strike Price EUR 0.001) (b)			1,100		88,959
Health Care Providers & Services — 0.0%
HealthSouth Corp. (Expires 1/16/14)			52,465		1
Media — 0.0%
New Vision Holdings LLC:
(Expires 9/30/14)			22,194		41,052
(Expires 9/30/14)			3,995		7,390
					48,442
Metals & Mining — 0.1%
Peninsula Energy Ltd. (Expires 12/31/15)			5,850,469		89,639
Real Estate Investment Trusts (REITs) — 0.0%
Pepper Residential Securities Trust (Expires 12/31/15)			3,455,851		50,126

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 43

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

Warrants (m)	Shares		Value
Software — 0.0%
Bankruptcy Management Solutions, Inc. (Expires 9/28/17)		491		—
HMH Holdings/EduMedia (issued/exercisable 3/09/10, 19 shares for 1 warrant, Expires 6/22/19, Strike Price $42.27)		1,736		—
				—
Total Warrants — 0.1%			$	277,167
Total Long-Term Investments (Cost — $598,703,117) — 142.3%				619,082,812
Short-Term Securities
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.10% (n)(o)		4,128,807		4,128,807
Total Short-Term Securities (Cost — $4,128,807) — 0.9%				4,128,807

Options Purchased	Value
(Cost — $14,811) — 0.0%	$	3,140
Total Investments Before Options Written (Cost — $602,846,735) — 143.2%		623,214,759
Options Written
(Premiums Received — $157,950) — (0.0)%		(81,138	)
Total Investments, Net of Options Written — 143.2%		623,133,621
Liabilities in Excess of Other Assets — (43.2)%		(187,905,223	)
Net Assets — 100.0%	$	435,228,398

Notes to Consolidated Schedule of Investments

(a)	Non-income producing security.
(b)	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.
(c)	Variable rate security. Rate shown is as of report date.
(d)	Convertible security.
(e)	Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(f)	All or a portion of security has been pledged as collateral in connection with swaps.
(g)	Represents a payment-in-kind security which may pay interest/dividends in additional par/shares.
(h)	When-issued security. Unsettled when-issued transactions were as follows:

Counterparty	Value		Unrealized Appreciation (Depreciation)
Bank of America Corp	$	171,063	$	971
Citigroup, Inc	$	847,875	$	(2,125	)
Deutsche Bank AG	$	1,418,813	$	8,053
Goldman Sachs & Co., Inc	$	657,900	$	8,705
Pershing LLC	$	309,037	$	2,949
Sun Trust Capital	$	165,240	$	2,187

(i)	Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown is as of report date.
(j)	Issuer filed for bankruptcy and/or is in default of principal and/or interest payments.
(k)	Security is perpetual in nature and has no stated maturity date.
(l)	Other interests represent beneficial interests in liquidation trusts and other reorganization or private entities.
(m)	Warrants entitle the Trust to purchase a predetermined number of shares of common stock and are non-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date of the warrants, if any.
(n)	Investments in issuers considered to be an affiliate of the Trust during the six months ended February 28, 2013, for purposes of Section 2(a)(3) 1940 act, were as follows:

Affiliate	Shares Held at August 31, 2012		Net Activity		Shares Held at February 28, 2013		Income		Realized Gain
BlackRock Liquidity Funds, TempFund, Institutional Class		—		4,128,807		4,128,807	$	893	$	114

(o)	Represents the current yield as of report date.
•	For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Trust management. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.
•	Financial futures contracts as of February 28, 2013 were as follows:

Contracts  Sold	Issue	Exchange	Expiration	Notional Value			Unrealized Depreciation
(73)	S&P 500 E-Mini Index	Chicago Mercantile	March 2013		USD	5,523,545	$(92,603)

See Notes to Financial Statements.

44 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

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

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

Currency Purchased			Currency Sold			Counterparty		Settlement Date		Unrealized Appreciation (Depreciation)
USD	774,720	AUD		747,000	Citigroup, Inc.		4/17/13		$	14,241
USD	6,869,115	CAD		6,777,000	Deutsche Bank AG		4/17/13			304,273
USD	2,490,823	GBP		1,610,000	Barclays Plc		4/17/13			48,943
USD	134,761	GBP		87,000	BNP Paribas SA		4/17/13			2,808
USD	179,331	GBP		111,000	BNP Paribas SA		4/17/13			10,978
USD	8,746,483	GBP		5,460,000	Goldman Sachs Group, Inc.		4/17/13			465,325
USD	261,627	GBP		165,000	Royal Bank of Scotland Group Plc		4/17/13			11,372
EUR	354,000	USD		474,805	Westpac Banking Corp.		4/23/13			(12,470	)
USD	3,986	EUR		3,000	BNP Paribas SA		4/23/13			67
USD	70,327	EUR		52,000	Citigroup, Inc.		4/23/13			2,414
USD	32,648,915	EUR		24,502,000	Citigroup, Inc.		4/23/13			648,581
USD	132,794	EUR		99,674	Deutsche Bank AG		4/23/13			2,617
USD	426,389	EUR		320,000	Goldman Sachs Group, Inc.		4/23/13			8,459
USD	128,211	EUR		95,000	Royal Bank of Scotland Group Plc		4/23/13			4,138
Total									$	1,511,746

• Exchange-traded options purchased as of February 28, 2013 were as follows:

Description	Put/ Call	Strike Price		Expiration Date	Contracts	Market Value
Life Technologies Corp.	Call	USD	70.00	3/16/13	157	$	3,140

• Over-the-counter credit default swaptions written as of February 28, 2013 were as follows:

Description

Counterparty

Put/ Call

Strike Price

Pay/Receive Floating Rate Index

Floating Rate Index

Credit  Rating1

Expiration Date

Notional Amount (000)2

Market Value

Sold Protection on 5-Year Credit Default Swap

Credit Suisse Group AG

Call

USD

103.50

Receive

Dow Jones CDX North America High Yield, Series 19, Verison 1

B+

6/19/13

USD

6,500

$

(35,125

)

Sold Protection on 5-Year Credit Default Swap

Credit Suisse Group AG

Put

USD

97.50

Pay

Dow Jones CDX North America High Yield, Series 19, Verison 1

B+

6/19/13

USD

6,500

(46,013

)

Total

$

(81,138

)

¹ Using S&P’s rating of the underlying securities of the index.

² The maximum potential amount the Trust may pay should a negative credit event take place as defined under the terms of the agreement.

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

Issuer	Pay Fixed Rate	Counterparty	Expiration Date	Notional Amount (000)		Unrealized Depreciation
State of Israel	1.00%	Deutsche Bank AG	3/20/17	USD	335	$	(12,997	)
State of Israel	1.00%	Deutsche Bank AG	3/20/17	USD	1,000		(39,391	)
Beazer Homes USA, Inc.	5.00%	JPMorgan Chase & Co.	12/20/17	USD	100		(1,642	)
Total						$	(54,030	)

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 45

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

• 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	112	$	13,604
Caesars Entertainment Operating Co., Inc.	5.00%	JPMorgan Chase & Co.	12/20/15	CCC	USD	447		50,285
Caesars Entertainment Operating Co., Inc.	5.00%	JPMorgan Chase & Co.	12/20/15	CCC	USD	403		67,937
ARAMARK Corp.	5.00%	Goldman Sachs Group, Inc.	3/20/16	B-	USD	750		60,215
Caesars Entertainment Operating Co., Inc.	5.00%	Goldman Sachs Group, Inc.	3/20/16	CCC	USD	483		31,111
Caesars Entertainment Operating Co., Inc.	5.00%	Goldman Sachs Group, Inc.	3/20/16	CCC	USD	118		6,029
Caesars Entertainment Operating Co., Inc.	5.00%	Goldman Sachs Group, Inc.	3/20/16	CCC	USD	558		547
Caesars Entertainment Operating Co., Inc.	5.00%	Goldman Sachs Group, Inc.	3/20/16	CCC	USD	163		12,711
Caesars Entertainment Operating Co., Inc.	5.00%	Goldman Sachs Group, Inc.	3/20/16	CCC	USD	163		12,711
Caesars Entertainment Operating Co., Inc.	5.00%	JPMorgan Chase & Co.	3/20/16	CCC	USD	68		2,494
ARAMARK Corp.	5.00%	Goldman Sachs Group, Inc.	6/20/16	B-	USD	500		40,482
ARAMARK Corp.	5.00%	Goldman Sachs Group, Inc.	6/20/16	B-	USD	500		42,897
Caesars Entertainment Operating Co., Inc.	5.00%	Goldman Sachs Group, Inc.	6/20/16	CCC	USD	1,132		60,768
Caesars Entertainment Operating Co., Inc.	5.00%	Goldman Sachs Group, Inc.	6/20/16	CCC	USD	182		806
Caesars Entertainment Operating Co., Inc.	5.00%	Goldman Sachs Group, Inc.	6/20/16	CCC	USD	331		19,502
Caesars Entertainment Operating Co., Inc.	5.00%	Goldman Sachs Group, Inc.	6/20/16	CCC	USD	630		31,293
ARAMARK Corp.	5.00%	Credit Suisse Group AG	9/20/16	B-	USD	200		22,343
ARAMARK Corp.	5.00%	Deutsche Bank AG	3/20/17	B-	USD	295		21,596
Caesars Entertainment Operating Co., Inc.	5.00%	Goldman Sachs Group, Inc.	3/20/17	CCC	USD	355		11,195
Caesars Entertainment Operating Co., Inc.	5.00%	Goldman Sachs Group, Inc.	3/20/17	CCC	USD	207		2,579
Caesars Entertainment Operating Co., Inc.	5.00%	Goldman Sachs Group, Inc.	3/20/17	CCC	USD	299		(2,279	)
Crown Castle International Corp.	7.25%	Deutsche Bank AG	3/20/17	B-	USD	690		119,435
CCO Holdings LLC	8.00%	Deutsche Bank AG	9/20/17	BB-	USD	2,400		580,279
Level 3 Communications, Inc.	5.00%	Goldman Sachs Group, Inc.	6/20/19	CCC	USD	1,500		117,273
Total							$	1,325,813

¹ Using S&P’s rating of the issuer.

² The maximum potential amount the Trust may pay should a negative credit event take place as defined under the terms of the agreement.

•   Fair Value Measurements—Various inputs are used in determining the fair value of investments 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 Trust 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 Trust’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 Trust’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 Trust’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following tables summarize the Trust’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:
Common Stocks	$	30,384,458	$	2,412,176	$	8,233,437	$	41,030,071
Corporate Bonds		—		444,259,214		6,352,772		450,611,986
Floating Rate Loan Interests		—		95,585,666		21,881,941		117,467,607
Other Interests		157		—		19,819		19,976
Preferred Securities		5,496,368		4,179,637		—		9,676,005
Warrants		89,639		88,959		98,569		277,167
Short-Term Securities		4,128,807		—		—		4,128,807
Options Purchased:
Equity Contracts		3,140		—		—		3,140
Total	$	40,102,569	$	546,525,652	$	36,586,538	$	623,214,759

See Notes to Financial Statements.

46 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

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

	Level 1			Level 2			Level 3		Total
Derivative Financial Instruments1
Assets:
Credit contracts		—		$	1,328,092			—	$	1,328,092
Foreign currency exchange contracts		—			1,524,216			—		1,524,216
Liabilities:
Credit contracts		—			(137,447	)		—		(137,447	)
Equity contracts	$	(92,603	)		—			—		(92,603	)
Foreign currency exchange contracts		—			(12,470	)		—		(12,470	)
Total	$	(92,603	)	$	2,702,391			—	$	2,609,788

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

Certain of the Trust’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	$	5,581		—			—	$	5,581
Cash pledged as collateral for financial futures contracts		307,000		—			—		307,000
Cash pledged as collateral for swaps		400,000		—			—		400,000
Liabilities:
Bank overdraft		—	$	(138,781	)		—		(138,781	)
Cash received as collateral for swaps		—		(1,200,000	)		—		(1,200,000	)
Loan payable		—		(174,000,000	)		—		(174,000,000	)
Total	$	712,581	$	(175,338,781	)		—	$	(174,626,200	)

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

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

	Common Stocks		Corporate Bonds			Floating Rate Loan Interests			Other Interests		Warrants		Total
Assets:
Opening Balance, as of August 31, 2012	$	6,755,302	$	6,576,954		$	19,411,992		$	8,463	$	1	$	32,752,712
Transfers into Level 32		15,101		2,120,575			2,296,471			—		—		4,432,147
Transfers out of Level 33		—		—			(1,924,364	)		—		—		(1,924,364	)
Accrued discounts/premiums		—		(13,760	)		69,718			—		—		55,958
Net realized gain (loss)		—		10,524			(117,320	)		—		—		(106,796	)
Net change in unrealized   appreciation/depreciation4		703,574		(1,945,433	)		1,097,715			11,356		98,568		(34,220	)
Purchases		759,460		3,657,923			7,418,353			—		—		11,835,736
Sales		—		(4,054,011	)		(6,370,624	)		—		—		(10,424,635	)
Closing Balance, as of February 28, 2013	$	8,233,437	$	6,352,772		$	21,881,941		$	19,819	$	98,569	$	36,586,538

² As of August 31, 2012, the Trust used observable inputs in determining the value of certain investments. As of February 28, 2013, the Trust used significant unobservable inputs in determining the value of the same investments. As a result, investments with a beginning of period value of $4,432,147 transferred from Level 2 to Level 3 in the disclosure hierarchy.

³ As of August 31, 2012, the Trust used significant unobservable inputs in determining the value of certain investments. As of February 28, 2013, the Trust used observable inputs in determining the value on the same investments. As a result, investments with a beginning of period value of $1,924,364 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 $697,183.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 47

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

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

	Credit Contracts
Assets:
Opening Balance, as of August 31, 2012	$	829,910
Transfers into Level 31		—
Transfers out of Level 31		(205,351	)
Accrued discounts/premiums		—
Net realized gain (loss)		—
Net change in unrealized appreciation/depreciation2		(624,559	)
Purchases		—
Issues3		—
Sales		—
Settlements4		—
Closing Balance, as of February 28, 2013		—

¹ Transfers into and transfers out of Level 3 represent the values as of the beginning of the reporting period.

² Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations.

³ Issues represent upfront cash received on certain derivative financial instruments.

⁴ Settlements represent periodic contractual cash flows and/or cash flows to terminate certain derivative financial instruments.

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 Trust’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 $20,080,471.

	Value		Valuation Techniques	Unobservable Inputs5	Range of Unobservable Inputs Utilized
Assets:
Common Stocks	$	6,835,434	Market Comparable Companies	EBITDA Multiple	6.56x
				Enterprise Value/Oil Barrel Multiple	CAD6  0.44x
		332,660	Restructure Terms7	N/A	—
Corporate Bonds		1,663,876	Market Comparable Companies	Yield	12.10%
		950,629	Discounted Cash Flow	Yield	12%
		2,574,800	Cost8	N/A	—
Floating Rate Loan Interests		1,010,587	Discounted Cash Flow	Yield	9.50%
		3,000,000	Cost8	N/A	—
Warrant		48,442	Discounted Vendor Price	Distribution Rate	0.51639
		89,639	Black-Sholes	Implied Volatility	90%
Total	$	16,506,067

⁵ 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
Enterprise Value/Oil Barrel Multiple	Increase	Decrease
Yield	Decrease	Increase
Distribution Rate	Decrease	Increase
Implied Volatility	Increase	Decrease

⁶ Canadian Dollar.

⁷ Investment is valued based on the company’s financial restructuring plan.

⁸ The Trust 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 Trust.

See Notes to Financial Statements.

48 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

Consolidated Schedule of Investments
February 28, 2013 (Unaudited) BlackRock Corporate High Yield Fund VI, Inc. (HYT)
(Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Auto Components — 0.8%
Dana Holding Corp.		178,397	$	2,984,582
Delphi Automotive Plc		13,700		568,610
				3,553,192
Biotechnology — 0.0%
Ironwood Pharmaceuticals, Inc. (a)		11,018		164,499
Capital Markets — 1.7%
American Capital Ltd. (a)		433,202		6,056,164
E*Trade Financial Corp. (a)		116,200		1,244,502
Uranium Participation Corp. (a)		54,600		282,729
				7,583,395
Chemicals — 0.5%
ADA-ES, Inc. (a)		2,810		74,662
CF Industries Holdings, Inc.		5,500		1,104,565
Huntsman Corp.		53,600		923,528
				2,102,755
Commercial Banks — 0.5%
CIT Group, Inc. (a)		60,104		2,515,953
Communications Equipment — 0.3%
Loral Space & Communications Ltd.		21,531		1,253,965
Diversified Financial Services — 0.8%
Bank of America Corp.		37,100		416,633
Kcad Holdings I Ltd. (a)		461,295,490		3,113,744
				3,530,377
Diversified Telecommunication Services — 0.2%
Broadview Networks Holdings, Inc. (a)		54,600		365,274
Level 3 Communications, Inc. (a)		34,800		695,304
				1,060,578
Electrical Equipment — 0.0%
Medis Technologies Ltd. (a)		116,910		1
Energy Equipment & Services — 0.9%
Laricina Energy Ltd. (a)		70,588		2,395,714
Osum Oil Sands Corp. (a)		124,000		1,638,303
				4,034,017
Hotels, Restaurants & Leisure — 0.2%
Caesars Entertainment Corp. (a)		59,623		745,288
Travelport LLC (a)		118,935		1,189
				746,477
Insurance — 1.0%
American International Group, Inc. (a)		122,977		4,674,356
Media — 1.3%
Belo Corp., Class A		36,341		313,986
Charter Communications, Inc., Class A (a)		65,587		5,666,061
Clear Channel Outdoor Holdings, Inc., Class A (a)		14,553		110,603
				6,090,650
Metals & Mining — 0.1%
African Minerals Ltd. (a)		72,301		308,919
Peninsula Energy Ltd. (a)		11,756,996		392,821
				701,740
Oil, Gas & Consumable Fuels — 0.0%
African Petroleum Corp. Ltd. (a)		307,100		59,601
Paper & Forest Products — 1.0%
Ainsworth Lumber Co. Ltd. (a)		773,706		2,453,351
Ainsworth Lumber Co. Ltd. (a)(b)		221,591		700,496
NewPage Corp. (a)		13,400		1,139,000
Western Forest Products, Inc. (a)		78,039		94,593
				4,387,440
Semiconductors & Semiconductor Equipment — 0.3%
Freescale Semiconductor Ltd. (a)		6,695		103,304
NXP Semiconductors NV (a)		14,683		474,555
Spansion, Inc., Class A (a)		63,578		747,677
SunPower Corp. (a)		431		5,060
				1,330,596

Common Stocks		Par (000)		Value
Software — 0.1%
Bankruptcy Management Solutions, Inc. (a)			787	$	8
HMH Holdings/EduMedia (a)			31,742		581,930
					581,938
Total Common Stocks — 9.7%					44,371,530
Corporate Bonds			Par (000)
Aerospace & Defense — 1.0%
Bombardier, Inc., 4.25%, 1/15/16 (b)	USD		940		975,250
Huntington Ingalls Industries, Inc.:
6.88%, 3/15/18			260		283,238
7.13%, 3/15/21			410		446,900
Kratos Defense & Security Solutions, Inc., 10.00%, 6/01/17			1,274		1,406,177
Meccanica Holdings USA, Inc., 6.25%, 7/15/19 (b)			690		709,030
Spirit Aerosystems, Inc., 7.50%, 10/01/17			521		552,260
					4,372,855
Airlines — 1.8%
American Airlines Pass-Through Trust, Series 2011-2, Class A, 8.63%, 4/15/23			1,047		1,089,199
Continental Airlines Pass-Through Trust:
Series 1997-4, Class B, 6.90%, 7/02/18			538		543,821
Series 2010-1, Class B, 6.00%, 7/12/20			571		588,248
Series 2012-3, Class C, 6.13%, 4/29/18			1,435		1,431,412
Delta Air Lines Pass-Through Trust:
Series 2002-1, Class G-1, 6.72%, 7/02/24			904		1,001,092
Series 2009-1, Class B, 9.75%, 6/17/18			272		302,284
Series 2010-1, Class B, 6.38%, 7/02/17			900		938,250
US Airways Pass-Through Trust:
Series 2011-1, Class C, 10.88%, 10/22/14			878		926,291
Series 2012-1, Class C, 9.13%, 10/01/15			650		695,500
Series 2012-2, Class B, 6.75%, 12/03/22			600		627,000
					8,143,097
Auto Components — 2.0%
Continental Rubber of America Corp., 4.50%, 9/15/19 (b)			300		306,000
Dana Holding Corp., 6.75%, 2/15/21			700		762,125
Delphi Corp.:
6.13%, 5/15/21			115		125,350
5.00%, 2/15/23			235		244,694
Icahn Enterprises LP, 8.00%, 1/15/18			4,690		5,024,162
IDQ Holdings, Inc., 11.50%, 4/01/17 (b)			595		651,525
Jaguar Land Rover Plc, 8.25%, 3/15/20	GBP		745		1,267,183
Titan International, Inc., 7.88%, 10/01/17	USD		720		772,200
					9,153,239
Beverages — 0.2%
Crown European Holdings SA:
7.13%, 8/15/18	EUR		52		73,489
7.13%, 8/15/18 (b)			244		344,835
Refresco Group BV, 7.38%, 5/15/18			212		289,315
					707,639
Building Products — 0.9%
Building Materials Corp. of America (b):
7.00%, 2/15/20	USD		840		909,300
6.75%, 5/01/21			1,220		1,309,975
Grohe Holding GmbH, 8.75%, 12/15/17 (c)	EUR		100		136,756
Momentive Performance Materials, Inc., 8.88%, 10/15/20	USD		540		554,175
USG Corp., 9.75%, 1/15/18			1,100		1,293,875
					4,204,081
Capital Markets — 0.4%
E*Trade Financial Corp., 0.01%, 8/31/19 (b)(d)(e)			380		397,338
KKR Group Finance Co. LLC, 6.38%, 9/29/20 (b)			695		817,303
Nuveen Investments, Inc., 9.13%, 10/15/17 (b)			729		732,645
					1,947,286

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 49

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

Corporate Bonds		Par (000)		Value
Chemicals — 3.4%
Axiall Corp., 4.88%, 5/15/23 (b)	USD		272	$	276,080
Basell Finance Co. BV, 8.10%, 3/15/27 (b)			645		851,400
Celanese US Holdings LLC, 5.88%, 6/15/21			2,015		2,201,387
Ciech Group Financing AB, 9.50%, 11/30/19	EUR		137		194,958
Eagle Spinco, Inc., 4.63%, 2/15/21 (b)	USD		576		585,360
Huntsman International LLC, 8.63%, 3/15/21			265		299,450
INEOS Finance Plc, 7.50%, 5/01/20 (b)			590		635,725
Kinove German Bondco GmbH, 10.00%, 6/15/18	EUR		532		770,808
Kraton Polymers LLC, 6.75%, 3/01/19	USD		195		202,800
LyondellBasell Industries NV, 5.75%, 4/15/24			4,050		4,708,125
Nexeo Solutions LLC, 8.38%, 3/01/18			145		141,738
Nufarm Australia Ltd., 6.38%, 10/15/19 (b)			350		371,000
PolyOne Corp., 7.38%, 9/15/20			335		371,013
Rockwood Specialties Group, Inc., 4.63%, 10/15/20			1,140		1,179,900
Tronox Finance LLC, 6.38%, 8/15/20 (b)			2,094		2,080,912
US Coatings Acquisition, Inc./Flash Dutch 2 BV:
5.75%, 2/01/21	EUR		100		133,166
7.38%, 5/01/21 (b)	USD		550		569,250
					15,573,072
Commercial Banks — 0.9%
CIT Group, Inc.:
5.25%, 3/15/18			860		924,500
6.63%, 4/01/18 (b)			475		539,125
5.50%, 2/15/19 (b)			840		913,500
5.00%, 8/15/22			740		791,800
6.00%, 4/01/36			850		832,686
					4,001,611
Commercial Services & Supplies — 2.2%
ADS Waste Holdings, Inc., 8.25%, 10/01/20 (b)			431		463,325
ARAMARK Holdings Corp. (b):
8.63%, 5/01/16 (f)			680		693,607
5.75%, 3/15/20 (g)			1,005		1,025,100
Aviation Capital Group Corp., 6.75%, 4/06/21 (b)			840		909,168
AWAS Aviation Capital Ltd., 7.00%, 10/17/16 (b)			142		149,318
Brickman Group Holdings, Inc., 9.13%, 11/01/18 (b)			43		46,225
Casella Waste Systems, Inc., 7.75%, 2/15/19			83		79,473
Catalent Pharma Solutions, Inc., 7.88%, 10/15/18 (b)			959		970,987
Clean Harbors, Inc., 5.25%, 8/01/20			817		841,510
Covanta Holding Corp., 6.38%, 10/01/22			985		1,068,070
EC Finance Plc, 9.75%, 8/01/17	EUR		677		961,194
HDTFS, Inc. (b):
5.88%, 10/15/20	USD		100		104,000
6.25%, 10/15/22			410		440,750
Mead Products LLC/ACCO Brands Corp., 6.75%, 4/30/20 (b)			117		123,874
Mobile Mini, Inc., 7.88%, 12/01/20			570		634,125
RSC Equipment Rental, Inc., 8.25%, 2/01/21			718		814,033
Verisure Holding AB:
8.75%, 9/01/18	EUR		275		387,748
8.75%, 12/01/18			139		185,101
West Corp., 8.63%, 10/01/18	USD		210		223,650
					10,121,258
Communications Equipment — 1.1%
Alcatel-Lucent USA, Inc.:
6.50%, 1/15/28			90		69,300
6.45%, 3/15/29			288		223,920
Avaya, Inc., 9.75%, 11/01/15			936		920,790
Zayo Group LLC/Zayo Capital, Inc.:
8.13%, 1/01/20			1,480		1,653,900
10.13%, 7/01/20			1,960		2,298,100
					5,166,010
Computers & Peripherals — 0.2%
EMC Corp., Series B, 1.75%, 12/01/13 (d)			307		443,999
SanDisk Corp., 1.50%, 8/15/17 (d)			445		547,906
					991,905

Corporate Bonds		Par (000)		Value
Construction & Engineering — 0.3%
Boart Longyear Management Property Ltd., 7.00%, 4/01/21 (b)	USD		300	$	311,250
H&E Equipment Services, Inc., 7.00%, 9/01/22 (b)			687		752,265
Weekley Homes LLC, 6.00%, 2/01/23 (b)			240		244,800
					1,308,315
Construction Materials — 2.1%
Buzzi Unicem SpA, 6.25%, 9/28/18	EUR		213		299,133
HD Supply, Inc. (b):
8.13%, 4/15/19	USD		1,970		2,218,712
11.00%, 4/15/20			2,045		2,464,225
7.50%, 7/15/20			2,995		2,998,744
11.50%, 7/15/20			810		933,525
HeidelbergCement AG, 7.50%, 4/03/20	EUR		83		130,574
Xefin Lux SCA, 8.00%, 6/01/18 (b)			393		550,921
					9,595,834
Consumer Finance — 0.2%
Credit Acceptance Corp., 9.13%, 2/01/17	USD		710		773,900
Springleaf Finance, 6.90%, 12/15/17			160		156,800
					930,700
Containers & Packaging — 2.1%
Ardagh Packaging Finance Plc:
7.38%, 10/15/17	EUR		200		283,304
7.38%, 10/15/17			100		141,652
7.38%, 10/15/17 (b)			574		813,083
7.38%, 10/15/17 (b)	USD		200		217,750
9.13%, 10/15/20 (b)			615		670,350
9.13%, 10/15/20 (b)			470		514,650
7.00%, 11/15/20 (b)			945		947,362
4.88%, 11/15/22 (b)			228		224,580
5.00%, 11/15/22	EUR		360		466,473
Berry Plastics Corp.:
4.18%, 9/15/14 (c)	USD		465		465,000
8.25%, 11/15/15			185		192,807
9.75%, 1/15/21			280		323,400
Beverage Packaging Holdings Luxembourg II SA, 8.00%, 12/15/16	EUR		882		1,154,604
Crown Americas LLC/Crown Americas Capital Corp. III, 6.25%, 2/01/21	USD		17		18,530
Crown Americas LLC/Crown Americas Capital Corp. IV, 4.50%, 1/15/23 (b)			189		184,748
GCL Holdings SCA, 9.38%, 4/15/18 (b)	EUR		414		586,548
Graphic Packaging International, Inc., 7.88%, 10/01/18	USD		580		638,000
Pactiv LLC, 7.95%, 12/15/25			632		592,500
Tekni-Plex, Inc., 9.75%, 6/01/19 (b)			849		938,145
					9,373,486
Distributors — 0.5%
VWR Funding, Inc., 7.25%, 9/15/17 (b)			2,126		2,237,615
Diversified Consumer Services — 2.2%
313 Group, Inc. (b):
6.38%, 12/01/19			1,527		1,488,825
8.75%, 12/01/20			924		912,450
Laureate Education, Inc., 9.25%, 9/01/19 (b)			1,930		2,098,875
Service Corp. International, 7.00%, 6/15/17			4,425		5,005,781
ServiceMaster Co., 8.00%, 2/15/20			295		312,700
					9,818,631
Diversified Financial Services — 5.0%
Air Lease Corp., 4.50%, 1/15/16			920		940,700
Aircastle, Ltd.:
6.75%, 4/15/17			575		633,938
6.25%, 12/01/19			500		538,750
Ally Financial, Inc.:
7.50%, 12/31/13			700		735,000
8.00%, 11/01/31 (h)			4,745		5,960,906
CNG Holdings, Inc., 9.38%, 5/15/20 (b)			630		621,338

See Notes to Financial Statements.

50 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

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

Corporate Bonds		Par (000)		Value
Diversified Financial Services (concluded)
Co-Operative Group Ltd. (i):
5.63%, 7/08/20	GBP		370	$	588,251
6.25%, 7/08/26			100		159,745
DPL, Inc.:
6.50%, 10/15/16	USD		470		493,500
7.25%, 10/15/21			1,345		1,442,513
Gala Group Finance Plc, 8.88%, 9/01/18	GBP		802		1,314,008
General Motors Financial Co., Inc., 6.75%, 6/01/18	USD		460		529,000
Leucadia National Corp., 8.13%, 9/15/15			1,232		1,392,160
Reynolds Group Issuer, Inc.:
7.13%, 4/15/19			385		413,394
9.00%, 4/15/19			735		779,100
7.88%, 8/15/19			485		535,925
9.88%, 8/15/19			940		1,029,300
5.75%, 10/15/20			3,225		3,329,812
WMG Acquisition Corp.:
11.50%, 10/01/18			656		761,780
6.00%, 1/15/21 (b)			454		469,890
					22,669,010
Diversified Telecommunication Services — 2.5%
Broadview Networks Holdings, Inc., 10.50%, 11/15/17			840		821,100
Cequel Communications Escrow I LLC/Cequel Communications Escrow Capital Corp., 6.38%, 9/15/20 (b)			730		754,637
Consolidated Communications Finance Co., 10.88%, 6/01/20 (b)			530		600,225
Level 3 Communications, Inc., 8.88%, 6/01/19 (b)			495		534,600
Level 3 Financing, Inc.:
8.13%, 7/01/19			1,817		1,980,530
7.00%, 6/01/20 (b)			660		693,000
8.63%, 7/15/20			1,320		1,465,200
Lynx I Corp., 5.38%, 4/15/21 (b)			440		451,000
OTE Plc, 7.25%, 2/12/15	EUR		256		335,892
Telenet Finance V Luxembourg SCA:
6.25%, 8/15/22			444		594,156
6.75%, 8/15/24			645		879,973
tw telecom holdings, Inc., 5.38%, 10/01/22	USD		460		479,550
Windstream Corp.:
8.13%, 8/01/13			703		721,419
7.88%, 11/01/17			627		710,077
7.50%, 4/01/23			125		130,625
6.38%, 8/01/23 (b)			125		122,500
					11,274,484
Electric Utilities — 0.7%
Mirant Mid Atlantic Pass-Through Trust, Series B, 9.13%, 6/30/17			454		503,771
The Tokyo Electric Power Co., Inc., 4.50%, 3/24/14	EUR		1,900		2,533,380
					3,037,151
Electrical Equipment — 0.6%
Belden, Inc., 5.50%, 9/01/22 (b)	USD		570		584,250
General Cable Corp., 5.75%, 10/01/22 (b)			950		973,750
Techem GmbH:
6.13%, 10/01/19	EUR		644		893,322
6.13%, 10/01/19 (b)			105		145,651
					2,596,973
Electronic Equipment, Instruments & Components — 0.1%
Jabil Circuit, Inc., 8.25%, 3/15/18	USD		365		438,913
NXP BV/NXP Funding LLC, 9.75%, 8/01/18 (b)			100		114,250
					553,163
Energy Equipment & Services — 3.7%
Atwood Oceanics, Inc., 6.50%, 2/01/20			215		233,813
Calfrac Holdings LP, 7.50%, 12/01/20 (b)			518		520,590
Compagnie Générale de Géophysique, Veritas:
7.75%, 5/15/17			395		407,344
6.50%, 6/01/21			1,945		2,022,800

Corporate Bonds		Par (000)		Value
Energy Equipment & Services (concluded)
FTS International Services LLC/FTS International Bonds, Inc., 8.13%, 11/15/18 (b)	USD		1,686	$	1,745,010
Genesis Energy LP, 5.75%, 2/15/21 (b)			262		271,170
Gulfmark Offshore, Inc., 6.38%, 3/15/22			245		252,962
Hornbeck Offshore Services, Inc., 5.88%, 4/01/20			490		514,500
MEG Energy Corp. (b):
6.50%, 3/15/21			2,110		2,226,050
6.38%, 1/30/23			560		579,600
Oil States International, Inc.:
6.50%, 6/01/19			495		529,650
5.13%, 1/15/23 (b)			210		210,000
Peabody Energy Corp.:
6.00%, 11/15/18			359		381,437
6.25%, 11/15/21			1,811		1,883,440
7.88%, 11/01/26			580		620,600
4.75%, 12/15/41 (d)			1,103		936,861
Precision Drilling Corp.:
6.63%, 11/15/20			120		127,500
6.50%, 12/15/21			460		487,600
Rain CII Carbon LLC/CII Carbon Corp., 8.25%, 1/15/21 (b)			364		382,200
Seadrill Ltd., 5.63%, 9/15/17 (b)			2,107		2,133,337
Tervita Corp., 8.00%, 11/15/18 (b)			575		592,250
					17,058,714
Food & Staples Retailing — 0.4%
Bakkavor Finance 2 Plc, 8.25%, 2/15/18	GBP		502		772,982
Rite Aid Corp., 9.25%, 3/15/20	USD		580		649,600
Zobele Holding SpA, 7.88%, 2/01/18	EUR		140		185,519
					1,608,101
Food Products — 0.4%
Darling International, Inc., 8.50%, 12/15/18	USD		180		204,750
Del Monte Corp., 7.63%, 2/15/19			94		97,525
Post Holdings, Inc., 7.38%, 2/15/22			875		945,000
Smithfield Foods, Inc., 6.63%, 8/15/22			729		792,788
					2,040,063
Health Care Equipment & Supplies — 2.3%
Biomet, Inc. (b):
6.50%, 8/01/20			2,742		2,899,665
6.50%, 10/01/20			3,338		3,438,140
DJO Finance LLC:
8.75%, 3/15/18			586		646,797
7.75%, 4/15/18			160		159,200
9.88%, 4/15/18			650		693,875
Fresenius Medical Care US Finance, Inc., 5.75%, 2/15/21 (b)			440		479,600
Fresenius Medical Care US Finance II, Inc., 5.63%, 7/31/19 (b)			324		350,730
Fresenius US Finance II, Inc., 9.00%, 7/15/15 (b)			850		975,375
Kinetic Concepts, Inc./KCI USA, Inc., 12.50%, 11/01/19 (b)			495		485,100
Teleflex, Inc., 6.88%, 6/01/19			455		494,813
					10,623,295
Health Care Providers & Services — 8.0%
Aviv Healthcare Properties LP, 7.75%, 2/15/19			880		943,800
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	USD		1,180		1,240,475
7.13%, 7/15/20			703		757,482
ConvaTec Healthcare E SA, 7.38%, 12/15/17 (b)	EUR		694		960,414
Crown Newco 3 Plc:
7.00%, 2/15/18	GBP		200		313,271
7.00%, 2/15/18 (b)			575		900,654
DaVita HealthCare Partners, Inc., 5.75%, 8/15/22	USD		1,376		1,434,480
HCA Holdings, Inc., 6.25%, 2/15/21			1,688		1,780,840

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 51

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

Corporate Bonds		Par (000)		Value
Health Care Providers & Services (concluded)
HCA, Inc.:
8.50%, 4/15/19	USD		205	$	227,038
6.50%, 2/15/20			3,190		3,572,800
7.88%, 2/15/20			430		476,762
7.25%, 9/15/20			3,720		4,129,200
5.88%, 3/15/22			340		366,350
4.75%, 5/01/23			1,645		1,640,887
Hologic, Inc., 6.25%, 8/01/20 (b)			2,475		2,611,125
IASIS Healthcare LLC, 8.38%, 5/15/19			953		981,590
INC Research LLC, 11.50%, 7/15/19 (b)			546		582,855
inVentiv Health, Inc., 9.00%, 1/15/18 (b)			970		1,011,225
Omnicare, Inc.:
7.75%, 6/01/20			1,520		1,687,200
3.75%, 4/01/42 (d)			247		257,498
Symbion, Inc., 8.00%, 6/15/16			535		559,075
Tenet Healthcare Corp.:
6.25%, 11/01/18			1,658		1,836,235
8.88%, 7/01/19			3,970		4,486,100
6.75%, 2/01/20			810		866,700
4.50%, 4/01/21 (b)			1,108		1,092,765
Vanguard Health Holding Co. II LLC:
8.00%, 2/01/18			374		398,310
7.75%, 2/01/19 (b)			720		771,300
Voyage Care Bondco Plc, 6.50%, 8/01/18	GBP		180		277,848
					36,362,975
Health Care Technology — 1.0%
IMS Health, Inc. (b):
12.50%, 3/01/18	USD		3,480		4,193,400
6.00%, 11/01/20			221		229,840
					4,423,240
Hotels, Restaurants & Leisure — 3.3%
Caesars Entertainment Operating Co., Inc.:
10.00%, 12/15/18			765		504,900
8.50%, 2/15/20			311		303,225
Caesars Operating Escrow LLC, 9.00%, 2/15/20 (b)			1,556		1,536,550
Carlson Wagonlit BV, 6.88%, 6/15/19 (b)			510		532,950
Cirsa Funding Luxembourg SA, 8.75%, 5/15/18	EUR		714		913,519
Diamond Resorts Corp., 12.00%, 8/15/18	USD		1,860		2,046,000
El Dorado Resorts LLC, 8.63%, 6/15/19 (b)			210		208,688
Enterprise Inns Plc, 6.50%, 12/06/18	GBP		501		746,741
Gategroup Finance Luxembourg SA, 6.75%, 3/01/19	EUR		455		611,846
Little Traverse Bay Bands of Odawa Indians, 9.00%, 8/31/20 (b)	USD		441		423,360
MCE Finance, Ltd., 5.00%, 2/15/21 (b)			1,044		1,044,000
MTR Gaming Group, Inc., 11.50%, 8/01/19 (f)			231		240,396
Regal Entertainment Group, 5.75%, 2/01/25			401		392,980
Six Flags Entertainment Corp., 5.25%, 1/15/21 (b)			918		899,640
Station Casinos LLC:
3.66%, 6/18/18			1,037		1,037,000
7.50%, 3/01/21 (b)(g)			1,810		1,821,312
Travelport LLC (c):
4.91%, 9/01/14			235		213,850
6.31%, 12/01/16 (b)(f)			669		607,492
Tropicana Entertainment LLC, 9.63%, 12/15/14 (a)(j)			515		—
The Unique Pub Finance Co. Plc, Series A3, 6.54%, 3/30/21	GBP		200		302,652
Wynn Las Vegas LLC, 5.38%, 3/15/22	USD		605		636,006
					15,023,107
Household Durables — 2.6%
Algeco Scotsman Global Finance Plc, 9.00%, 10/15/18	EUR		206		279,701
Ashton Woods USA LLC, 6.88%, 2/15/21 (b)	USD		352		353,760
Beazer Homes USA, Inc., 6.63%, 4/15/18			55		58,781

Corporate Bonds		Par (000)		Value
Household Durables (concluded)
Brookfield Residential Properties, Inc., 6.50%, 12/15/20 (b)	USD		635	$	673,100
Jarden Corp., 7.50%, 1/15/20	EUR		455		640,062
K. Hovnanian Enterprises, Inc., 7.25%, 10/15/20 (b)	USD		1,465		1,611,500
Libbey Glass, Inc., 6.88%, 5/15/20			945		1,013,512
PH Holding LLC, 9.75%, 12/31/17			535		524,300
Pulte Group, Inc., 6.38%, 5/15/33			290		294,350
The Ryland Group, Inc., 6.63%, 5/01/20			525		577,500
Spie BondCo 3 SCA, 11.00%, 8/15/19	EUR		264		384,302
Standard Pacific Corp.:
10.75%, 9/15/16	USD		2,185		2,720,325
8.38%, 1/15/21			1,510		1,793,125
United Rentals North America, Inc., 5.75%, 7/15/18			398		428,348
William Lyon Homes, Inc., 8.50%, 11/15/20 (b)			470		505,250
					11,857,916
Household Products — 0.8%
Ontex IV SA:
7.50%, 4/15/18	EUR		100		135,777
7.50%, 4/15/18 (b)			220		298,710
9.00%, 4/15/19			316		422,867
Spectrum Brands Escrow Corp. (b):
6.38%, 11/15/20	USD		592		629,740
6.63%, 11/15/22			385		414,838
Spectrum Brands, Inc.:
9.50%, 6/15/18			1,470		1,666,612
6.75%, 3/15/20 (b)			148		159,470
					3,728,014
Independent Power Producers & Energy Traders — 3.7%
The AES Corp., 7.38%, 7/01/21			425		480,250
Calpine Corp. (b):
7.25%, 10/15/17			247		262,746
7.50%, 2/15/21			144		156,600
7.88%, 1/15/23			612		677,790
Energy Future Intermediate Holding Co. LLC:
6.88%, 8/15/17 (b)			1,170		1,234,350
10.00%, 12/01/20			3,696		4,194,960
10.00%, 12/01/20 (b)			2,210		2,491,775
GenOn REMA LLC:
Series B, 9.24%, 7/02/17			375		412,970
Series C, 9.68%, 7/02/26			465		506,850
Laredo Petroleum, Inc.:
9.50%, 2/15/19			765		864,450
7.38%, 5/01/22			575		623,875
NRG Energy, Inc.:
7.63%, 1/15/18			2,345		2,687,956
6.63%, 3/15/23 (b)			1,010		1,075,650
QEP Resources, Inc.:
5.38%, 10/01/22			513		537,368
5.25%, 5/01/23			395		408,825
					16,616,415
Industrial Conglomerates — 0.2%
Sequa Corp., 7.00%, 12/15/17 (b)			890		896,675
Insurance — 0.6%
Alliant Holdings I, Inc., 7.88%, 12/15/20 (b)			1,731		1,739,655
CNO Financial Group, Inc., 6.38%, 10/01/20 (b)			346		366,760
MPL 2 Acquisition Canco, Inc., 9.88%, 8/15/18 (b)			395		391,050
TMF Group Holding B.V., 9.88%, 12/01/19	EUR		270		356,023
					2,853,488
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		229		229,000
					485,867

See Notes to Financial Statements.

52 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

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

Corporate Bonds		Par (000)		Value
IT Services — 3.3%
Ceridian Corp., 8.88%, 7/15/19 (b)	USD		1,945	$	2,192,987
Epicor Software Corp., 8.63%, 5/01/19			860		926,650
First Data Corp.:
7.38%, 6/15/19 (b)			2,430		2,554,537
8.88%, 8/15/20 (b)			830		917,150
6.75%, 11/01/20 (b)			2,927		3,003,834
8.25%, 1/15/21 (b)			190		194,275
11.25%, 1/15/21 (b)			766		781,320
12.63%, 1/15/21			1,244		1,326,415
SunGard Data Systems, Inc.:
7.38%, 11/15/18			840		901,950
6.63%, 11/01/19 (b)			1,240		1,274,100
WEX, Inc., 4.75%, 2/01/23 (b)			759		734,333
					14,807,551
Machinery — 1.6%
Dematic SA, 7.75%, 12/15/20 (b)			144		147,240
The Manitowoc Co., Inc., 5.88%, 10/15/22			735		753,375
Silver II Borrower/Silver II US Holdings LLC, 7.75%, 12/15/20 (b)			434		451,360
SPX Corp., 6.88%, 9/01/17			275		307,313
Terex Corp., 6.00%, 5/15/21			730		757,375
Trinseo Materials Operating SCA, 8.75%, 2/01/19 (b)			634		631,622
UR Merger Sub Corp.:
7.38%, 5/15/20			675		739,125
7.63%, 4/15/22			2,939		3,254,942
6.13%, 6/15/23			295		309,750
					7,352,102
Media — 10.1%
Affinion Group, Inc., 7.88%, 12/15/18			612		465,120
AMC Networks, Inc.:
7.75%, 7/15/21			350		397,250
4.75%, 12/15/22			552		549,930
Cablevision Systems Corp., 5.88%, 9/15/22			855		829,350
CCO Holdings LLC:
5.25%, 9/30/22			1,210		1,190,337
5.13%, 2/15/23			955		931,125
Cengage Learning Acquisitions, Inc., 11.50%, 4/15/20 (b)			1,026		810,540
Checkout Holding Corp., 11.47%, 11/15/15 (b)(e)			667		492,746
Cinemark USA, Inc.:
8.63%, 6/15/19			390		432,413
5.13%, 12/15/22 (b)			328		329,640
Clear Channel Communications, Inc., 9.00%, 12/15/19 (b)			1,153		1,072,290
Clear Channel Worldwide Holdings, Inc.:
6.50%, 11/15/22 (b)			959		1,002,155
6.50%, 11/15/22 (b)			2,589		2,724,922
Series B, 7.63%, 3/15/20			1,753		1,814,355
DISH DBS Corp.:
5.88%, 7/15/22			1,575		1,661,625
5.00%, 3/15/23 (b)			1,045		1,037,163
Harron Communications LP, 9.13%, 4/01/20 (b)			500		550,000
Intelsat Jackson Holdings SA:
7.25%, 10/15/20			1,085		1,163,662
6.63%, 12/15/22 (b)			312		314,340
Intelsat Luxembourg SA:
11.25%, 2/04/17			950		1,009,375
11.50%, 2/04/17			3,480		3,702,329
Interactive Data Corp., 10.25%, 8/01/18			2,080		2,358,200
The Interpublic Group of Cos., Inc., 10.00%, 7/15/17			525		566,344
Kabel Deutschland Vertrieb und Service GmbH & Co. KG, 6.50%, 6/29/18 (b)	EUR		530		740,931
Live Nation Entertainment, Inc., 8.13%, 5/15/18 (b)	USD		1,170		1,269,450
Lynx I Corp., 6.00%, 4/15/21	GBP		1,876		2,924,251
Lynx II Corp., 6.38%, 4/15/23 (b)	USD		300		310,875

Corporate Bonds		Par (000)		Value
Media (concluded)
The McClatchy Co., 9.00%, 12/15/22 (b)	USD		670	$	708,525
NAI Entertainment Holdings LLC, 8.25%, 12/15/17 (b)			914		996,260
Nara Cable Funding Ltd.:
8.88%, 12/01/18	EUR		190		260,457
8.88%, 12/01/18 (b)	USD		200		206,500
Nielsen Finance LLC:
11.63%, 2/01/14			147		160,598
7.75%, 10/15/18			1,825		2,021,187
Odeon & UCI Finco Plc, 9.00%, 8/01/18 (b)	GBP		324		511,185
ProQuest LLC, 9.00%, 10/15/18 (b)	USD		281		278,893
Sterling Entertainment Corp., 10.00%, 12/15/19			1,335		1,335,000
Unitymedia GmbH:
9.63%, 12/01/19 (b)	EUR		900		1,300,131
9.50%, 3/15/21			548		814,601
Unitymedia Hessen GmbH & Co. KG:
7.50%, 3/15/19			1,313		1,864,178
5.50%, 1/15/23 (b)	USD		795		802,950
Univision Communications, Inc., 6.75%, 9/15/22 (b)			694		749,520
UPCB Finance II Ltd.:
6.38%, 7/01/20	EUR		514		711,316
6.38%, 7/01/20 (b)			1,273		1,761,682
WaveDivision Escrow LLC/WaveDivision Escrow Corp., 8.13%, 9/01/20 (b)	USD		555		582,750
Ziggo Bond Co. BV, 8.00%, 5/15/18 (b)	EUR		280		394,798
					46,111,249
Metals & Mining — 4.8%
ArcelorMittal:
9.50%, 2/15/15	USD		470		530,512
4.25%, 8/05/15			608		629,489
4.25%, 3/01/16			200		206,000
5.00%, 2/25/17			648		674,244
6.13%, 6/01/18			645		695,502
6.00%, 3/01/21			91		96,576
6.75%, 2/25/22			762		839,044
7.50%, 10/15/39			94		97,446
7.25%, 3/01/41			357		356,108
Eco-Bat Finance Plc, 7.75%, 2/15/17	EUR		610		822,268
FMG Resources August 2006 Property Ltd. (b):
6.38%, 2/01/16	USD		684		713,383
6.00%, 4/01/17			746		777,705
Global Brass and Copper, Inc., 9.50%, 6/01/19 (b)			460		500,250
GoldCorp, Inc., 2.00%, 8/01/14 (d)			1,650		1,728,375
Kaiser Aluminum Corp., 8.25%, 6/01/20			345		385,538
New Gold, Inc. (b):
7.00%, 4/15/20			235		253,800
6.25%, 11/15/22			465		489,412
New World Resources NV:
7.88%, 5/01/18	EUR		349		467,246
7.88%, 1/15/21			370		446,824
Newmont Mining Corp., Series A, 1.25%, 7/15/14 (d)	USD		2,275		2,512,453
Novelis, Inc., 8.75%, 12/15/20			4,760		5,331,200
Peninsula Energy Ltd.,11.00%, 12/14/14			900		900,000
Perstorp Holding AB, 8.75%, 5/15/17 (b)			295		309,750
Schmolz + Bickenbach Luxembourg SA, 9.88%, 5/15/19	EUR		383		447,673
Steel Dynamics, Inc., 6.38%, 8/15/22 (b)	USD		375		401,250
Taseko Mines Ltd., 7.75%, 4/15/19			650		646,750
Vedanta Resources Plc, 8.25%, 6/07/21 (b)			435		494,812
Walter Energy, Inc., 9.88%, 12/15/20 (b)			206		224,025
					21,977,635
Multiline Retail — 0.4%
Dollar General Corp., 4.13%, 7/15/17			1,225		1,295,438
Dufry Finance SCA, 5.50%, 10/15/20 (b)			672		700,560
					1,995,998

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 53

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

Corporate Bonds		Par (000)		Value
Oil, Gas & Consumable Fuels — 9.1%
Access Midstream Partners LP:
6.13%, 7/15/22	USD		425	$	455,812
4.88%, 5/15/23			580		574,200
Alpha Appalachia Holdings, Inc., 3.25%, 8/01/15 (d)			1,381		1,317,992
Aurora USA Oil & Gas, Inc., 9.88%, 2/15/17 (b)			1,005		1,080,375
BreitBurn Energy Partners LP, 7.88%, 4/15/22			400		425,000
Carrizo Oil & Gas, Inc., 7.50%, 9/15/20			367		385,350
Chaparral Energy, Inc., 7.63%, 11/15/22			340		368,900
Chesapeake Energy Corp.:
7.25%, 12/15/18			190		214,700
6.63%, 8/15/20			270		295,650
6.88%, 11/15/20			275		302,500
6.13%, 2/15/21			130		137,800
Concho Resources, Inc.:
7.00%, 1/15/21			255		281,775
6.50%, 1/15/22			458	��	499,220
5.50%, 10/01/22			346		360,273
CONSOL Energy, Inc., 8.25%, 4/01/20			485		534,712
Continental Resources, Inc., 7.13%, 4/01/21			575		652,625
Crosstex Energy LP, 8.88%, 2/15/18			235		253,213
Crown Oil Partners IV LP, 15.00%, 3/07/15			948		996,332
CVR Refining LLC/Coffeyville Finance, Inc., 6.50%, 11/01/22 (b)			590		594,425
Denbury Resources, Inc., 4.63%, 7/15/23			1,187		1,164,744
Energy XXI Gulf Coast, Inc.:
9.25%, 12/15/17			725		819,250
7.75%, 6/15/19			830		890,175
EP Energy LLC/Everest Acquisition Finance, Inc.:
6.88%, 5/01/19			535		583,150
7.75%, 9/01/22			325		351,813
EV Energy Partners LP, 8.00%, 4/15/19			220		230,450
Halcon Resources Corp., 8.88%, 5/15/21 (b)			645		693,375
Hilcorp Energy I LP, 7.63%, 4/15/21 (b)			408		449,820
Holly Energy Partners LP, 6.50%, 3/01/20 (b)			245		262,150
Kodiak Oil & Gas Corp., 8.13%, 12/01/19			540		607,500
Linn Energy LLC:
6.50%, 5/15/19			66		68,310
6.25%, 11/01/19 (b)			1,840		1,876,800
8.63%, 4/15/20			170		188,063
7.75%, 2/01/21			245		264,600
MarkWest Energy Partners LP:
5.50%, 2/15/23			350		367,500
4.50%, 7/15/23			231		225,803
Newfield Exploration Co., 6.88%, 2/01/20			1,205		1,292,362
Northern Oil and Gas, Inc., 8.00%, 6/01/20			480		501,600
Oasis Petroleum, Inc.:
7.25%, 2/01/19			315		340,200
6.50%, 11/01/21			450		486,000
Offshore Group Investments Ltd., 11.50%, 8/01/15			1,070		1,166,300
PBF Holding Co. LLC, 8.25%, 2/15/20 (b)			345		375,187
PDC Energy, Inc., 7.75%, 10/15/22 (b)			325		343,688
PetroBakken Energy Ltd., 8.63%, 2/01/20 (b)			949		967,980
Petroleum Geo-Services ASA, 7.38%, 12/15/18 (b)			901		991,100
Plains Exploration & Production Co., 6.88%, 2/15/23			1,620		1,867,050
Range Resources Corp.:
8.00%, 5/15/19			600		660,000
5.75%, 6/01/21			1,571		1,673,115
5.00%, 8/15/22			593		606,342
Regency Energy Partners LP:
6.88%, 12/01/18			609		657,720
5.50%, 4/15/23			1,011		1,066,605
Sabine Pass Liquefaction LLC, 5.63%, 2/01/21 (b)			2,498		2,579,185
Sabine Pass Liquified Natural Gas LP:
7.50%, 11/30/16			2,345		2,591,225
6.50%, 11/01/20 (b)			505		532,775
SandRidge Energy, Inc., 7.50%, 2/15/23			809		847,427

Corporate Bonds		Par (000)		Value
Oil, Gas & Consumable Fuels (concluded)
SESI LLC:
6.38%, 5/01/19	USD		505	$	541,612
7.13%, 12/15/21			360		398,700
SM Energy Co.:
6.63%, 2/15/19			205		219,863
6.50%, 11/15/21			405		440,437
6.50%, 1/01/23			600		649,500
Tesoro Logistics LP/Tesoro Logistics Finance Corp., 5.88%, 10/01/20 (b)			240		250,200
Vanguard Natural Resources, 7.88%, 4/01/20			420		441,000
					41,261,530
Paper & Forest Products — 0.7%
Ainsworth Lumber Co. Ltd., 7.50%, 12/15/17 (b)			545		587,238
Boise Paper Holdings LLC:
9.00%, 11/01/17			90		97,313
8.00%, 4/01/20			180		198,450
Clearwater Paper Corp., 7.13%, 11/01/18			885		958,012
Longview Fibre Paper & Packaging, Inc., 8.00%, 6/01/16 (b)			535		561,750
NewPage Corp., 11.38%, 12/31/14 (a)(j)			3,095		—
Sappi Papier Holding GmbH, 8.38%, 6/15/19 (b)			200		224,000
Unifrax I LLC, 7.50%, 2/15/19 (b)			405		411,075
					3,037,838
Pharmaceuticals — 1.5%
Capsugel Finance Co. SCA:
9.88%, 8/01/19	EUR		105		154,218
9.88%, 8/01/19 (b)			300		440,623
Elan Corp. Plc, 6.25%, 10/15/19 (b)	USD		772		884,905
Jaguar Holding Co. II/Jaguar Merger Sub, Inc., 9.50%, 12/01/19 (b)			663		760,793
Mylan, Inc., 6.00%, 11/15/18 (b)			180		198,246
Valeant Pharmaceuticals International (b):
6.50%, 7/15/16			665		698,666
6.88%, 12/01/18			1,174		1,275,257
6.38%, 10/15/20			625		672,656
6.75%, 8/15/21			755		816,344
Warner Chilcott Co. LLC, 7.75%, 9/15/18			945		1,020,600
					6,922,308
Professional Services — 0.3%
La Financiere Atalian SA, 7.25%, 1/15/20	EUR		311		406,635
Truven Health Analytics, Inc., 10.63%, 6/01/20 (b)	USD		790		884,800
					1,291,435
Real Estate Investment Trusts (REITs) — 0.7%
Cantor Commercial Real Estate Co. LP, 7.75%, 2/15/18 (b)			436		438,180
Felcor Lodging LP:
6.75%, 6/01/19			1,578		1,695,364
5.63%, 3/01/23 (b)			397		399,481
The Rouse Co. LP, 6.75%, 11/09/15			805		837,200
					3,370,225
Real Estate Management & Development — 2.5%
CBRE Services, Inc., 6.63%, 10/15/20			520		561,600
Country Garden Holdings Co. Ltd., 7.50%,1/10/23 (b)			237		245,888
Crescent Resources LLC/Crescent Ventures, Inc., 10.25%, 8/15/17 (b)			1,330		1,433,075
Forest City Enterprises, Inc., 7.63%, 6/01/15			687		685,282
Mattamy Group Corp., 6.50%, 11/15/20 (b)			580		577,825
Realogy Corp.:
11.50%, 4/15/17			605		645,081
12.00%, 4/15/17			155		165,463
7.88%, 2/15/19 (b)			3,160		3,436,500
7.63%, 1/15/20 (b)			785		885,087
9.00%, 1/15/20 (b)			510		585,225
Shea Homes LP, 8.63%, 5/15/19			2,125		2,358,750
					11,579,776

See Notes to Financial Statements.

54 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

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

Corporate Bonds		Par (000)		Value
Road & Rail — 0.5%
The Hertz Corp.:
7.50%, 10/15/18	USD		855	$	934,087
6.75%, 4/15/19 (b)			450		484,875
7.38%, 1/15/21			675		744,188
Hertz Holdings Netherlands BV, 8.50%, 7/31/15	EUR		89		123,543
					2,286,693
Semiconductors & Semiconductor Equipment — 0.4%
Micron Technology, Inc., Series C, 2.38%, 5/01/32 (b)(d)	USD		412		458,608
NXP BV/NXP Funding LLC, 5.75%, 2/15/21 (b)			525		536,812
Spansion LLC, 7.88%, 11/15/17			890		938,950
					1,934,370
Software — 1.2%
IAC/InterActiveCorp, 4.75%, 12/15/22 (b)			650		635,375
Igloo Holdings Corp., 8.25%, 12/15/17 (b)(f)			454		465,350
Infor US, Inc., 9.38%, 4/01/19			2,370		2,660,325
Interface Security Systems Holdings, Inc., 9.25%, 1/15/18 (b)			229		233,008
Nuance Communications, Inc., 5.38%, 8/15/20 (b)			775		784,687
Sophia LP, 9.75%, 1/15/19 (b)			666		736,762
					5,515,507
Specialty Retail — 3.0%
Asbury Automotive Group, Inc., 8.38%, 11/15/20			565		629,975
Claire’s Stores, Inc., 9.00%, 3/15/19 (b)			1,348		1,496,280
House of Fraser Funding Plc:
8.88%, 8/15/18	GBP		222		356,992
8.88%, 8/15/18 (b)			439		705,944
Limited Brands, Inc.:
8.50%, 6/15/19	USD		1,255		1,537,375
5.63%, 2/15/22			250		264,375
Michaels Stores, Inc., 7.75%, 11/01/18			362		395,033
New Academy Finance Co., 8.00%, 6/15/18 (b)(f)			334		344,855
Party City Holdings, Inc., 8.88%, 8/01/20 (b)			1,559		1,695,412
Penske Automotive Group, Inc., 5.75%, 10/01/22 (b)			1,725		1,804,781
QVC, Inc.:
7.13%, 4/15/17 (b)			355		369,754
7.50%, 10/01/19 (b)			970		1,070,581
7.38%, 10/15/20 (b)			455		504,340
5.13%, 7/02/22			28		29,608
Sally Holdings LLC:
6.88%, 11/15/19			840		936,600
5.75%, 6/01/22			788		832,325
Sonic Automotive, Inc., 9.00%, 3/15/18			580		638,000
					13,612,230
Textiles, Apparel & Luxury Goods — 0.2%
Levi Strauss & Co., 6.88%, 5/01/22			675		733,219
Phillips-Van Heusen Corp., 4.50%, 12/15/22			390		384,637
					1,117,856
Trading Companies & Distributors — 0.7%
Ashtead Capital, Inc., 6.50%, 7/15/22 (b)			765		824,288
Doric Nimrod Air Finance Alpha Ltd., Series 2012-1 (b):
Class A, 5.13%, 11/30/24			1,200		1,290,000
Class B, 6.50%, 5/30/21			900		951,441
					3,065,729
Transportation Infrastructure — 0.2%
Aguila 3 SA, 7.88%, 1/31/18 (b)			665		704,900
Wireless Telecommunication Services — 4.3%
Cricket Communications, Inc., 7.75%, 10/15/20			914		932,280
Crown Castle International Corp., 5.25%, 1/15/23 (b)			1,732		1,775,300
Digicel Group Ltd. (b):
8.25%, 9/01/17			1,720		1,814,600
8.25%, 9/30/20			1,520		1,621,080
6.00%, 4/15/21 (g)			890		887,775
Corporate Bonds		Par (000)		Value
Wireless Telecommunication Services (concluded)
MetroPCS Wireless, Inc., 6.63%, 11/15/20	USD		1,069	$	1,118,441
NII Capital Corp., 7.63%, 4/01/21			539		377,300
Phones4u Finance Plc:
9.50%, 4/01/18	GBP		200		313,271
9.50%, 4/01/18 (b)			570		892,822
Sprint Capital Corp., 6.88%, 11/15/28	USD		2,366		2,389,660
Sprint Nextel Corp. (b):
9.00%, 11/15/18			3,728		4,622,720
7.00%, 3/01/20			2,315		2,708,550
					19,453,799
Total Corporate Bonds — 103.0%					468,754,016
Floating Rate Loan Interests (c)
Airlines — 1.1%
Delta Air Lines, Inc., Term Loan B, 4.50%, 4/20/17			650		655,396
Northwest Airlines, Inc., Term Loan:
2.32%, 3/10/17			1,110		1,033,136
2.32%, 3/10/17			2,009		1,870,653
1.70%, 9/10/18			912		814,234
1.70%, 9/10/18			904		807,091
					5,180,510
Auto Components — 1.3%
Federal-Mogul Corp.:
Term Loan B, 2.14%, 12/29/14			2,534		2,357,271
Term Loan C, 2.14%, 12/28/15			1,225		1,139,089
Schaeffler AG, Term Loan B2, 6.00%, 1/27/17			2,225		2,224,444
					5,720,804
Building Products — 0.1%
Wilsonart International Holdings LLC, Term Loan B, 5.50%, 10/31/19			655		661,877
Capital Markets — 0.6%
American Capital Holdings, Inc., Term Loan, 5.50%, 8/22/16			1,450		1,464,500
Nuveen Investments, Inc.:
Incremental Term Loan, 7.25%, 5/13/17			770		773,850
Second Lien Term Loan, 8.25%, 2/28/19			640		652,800
					2,891,150
Chemicals — 0.4%
INEOS US Finance LLC, 6 Year Term Loan, 6.50%, 5/04/18			588		599,736
US Coatings Acquisition, Inc.:
Term Loan, 4.75%, 2/03/20			1,090		1,103,232
Term Loan B, 5.25%, 2/03/20	EUR		115		151,667
					1,854,635
Commercial Services & Supplies — 0.4%
AWAS Finance Luxembourg Sarl, Term Loan B, 5.25%, 6/10/16	USD		686		691,233
Delos Aircraft, Inc., Term Loan 2, 4.75%, 4/12/16			975		980,684
					1,671,917
Communications Equipment — 1.4%
Alcatel-Lucent:
Term Loan C, 7.25%, 1/31/19			2,175		2,198,925
Term Loan D, 7.75%, 1/31/19	EUR		845		1,106,102
Avaya, Inc., Term Loan B5, 8.00%, 3/30/18	USD		195		196,465
Zayo Group LLC, Refinancing Term Loan B, 5.25%, 7/12/19			2,809		2,818,046
					6,319,538
Construction & Engineering — 0.7%
Safway Services LLC, Mezzanine Loan, 9.88%, 12/16/17			3,250		3,250,000
Construction Materials — 0.4%
HD Supply, Inc., Senior Debt B, 4.50%, 10/12/17			1,721		1,725,929

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 55

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

Floating Rate Loan Interests (c)		Par (000)		Value
Consumer Finance — 1.4%
Springleaf Financial Funding Co., Term Loan, 5.50%, 5/10/17	USD		6,153	$	6,174,782
Diversified Consumer Services — 0.2%
Laureate Education, Inc., Extended Term Loan, 5.25%, 6/18/18			223		223,916
ServiceMaster Co., New Term Loan, 2.70%, 4/01/17			710		707,591
					931,507
Diversified Telecommunication Services — 0.8%
Level 3 Financing, Inc.:
2016 Term Loan B, 4.75%, 2/01/16			514		519,492
2019 Term Loan B, 5.25%, 8/01/19			420		424,288
Term Loan, 4.75%, 8/01/19			2,700		2,721,600
					3,665,380
Energy Equipment & Services — 1.6%
Dynegy Midwest Generation LLC, Coal Co. Term Loan, 9.25%, 8/04/16			2,667		2,753,202
Dynegy Power LLC, Gas Co. Term Loan, 9.25%, 8/04/16			4,305		4,476,946
Tervita Corp., Incremental Term Loan, 6.50%, 5/01/18			225		226,161
					7,456,309
Food & Staples Retailing — 0.0%
Rite Aid Corp., Second Lien Term Loan, 5.75%, 7/07/20			165		168,759
Food Products — 0.1%
AdvancePierre Foods, Inc., Term Loan, 5.75%, 7/10/17			330		334,023
Health Care Equipment & Supplies — 0.5%
Bausch & Lomb, Inc., Term Loan B, 5.25%, 5/17/19			592		596,030
Capital Safety North America Holdings, Inc., Term Loan, 4.50%, 1/21/19			1,171		1,171,150
LHP Hospital Group, Inc., Term Loan, 9.00%, 7/03/18			433		442,563
					2,209,743
Health Care Providers & Services — 0.4%
Genesis HealthCare Corp., Term Loan B, 10.00%—10.75%, 9/25/17			294		288,560
Harden Healthcare LLC:
Add on Term Loan A, 7.75%, 3/02/15			617		604,193
Term Loan A, 8.50%, 3/02/15			478		473,526
inVentiv Health, Inc., Combined Term Loan, 7.50%, 8/04/16			576		566,604
					1,932,883
Hotels, Restaurants & Leisure — 3.1%
Caesars Entertainment Operating Co., Inc.:
Term Loan B1, 3.20%, 1/28/15			804		801,187
Term Loan B3, 3.20%—3.31%, 1/28/15			39		39,018
Harrah’s Property Co., Mezzanine Term Loan, 3.69%, 2/13/14			8,410		7,737,200
MGM Resorts International, Term Loan B, 4.25%, 12/20/19			1,925		1,947,137
Station Casinos, Inc., Term Loan B:
5.50%, 9/27/19			1,596		1,605,305
5.00%, 2/13/20			1,550		1,562,916
Travelport Holdings Ltd.:
Extended Tranche A Term Loan, 6.40%, 12/01/16			308		108,841
Extended Tranche B Term Loan, 13.80%, 12/01/16			1,031		96,237
					13,897,841
Industrial Conglomerates — 0.2%
Sequa Corp., Term Loan B, 5.25%, 6/19/17			895		905,110
Floating Rate Loan Interests (c)		Par (000)		Value
Insurance — 0.1%
Alliant Holdings I, Inc., Term Loan B, 5.00%, 12/20/19	USD		520	$	523,900
IT Services — 0.3%
Ceridian Corp., Extended Term Loan, 5.95%, 5/09/17			107		107,816
First Data Corp., Extended 2018 Term Loan B, 4.20%, 3/23/18			1,220		1,204,628
					1,312,444
Leisure Equipment & Products — 0.1%
Eastman Kodak Co., DIP Term Loan B, 8.50%, 7/19/13			373		372,346
Life Sciences Tools & Services — 0.1%
Patheon, Inc., Term Loan, 7.25%, 12/06/18			319		322,791
Machinery — 0.7%
Rexnord Corp., Term Loan B, 4.50%, 4/02/18			911		916,501
Silver II US Holdings LLC, Term Loan, 5.00%, 12/05/19			2,400		2,400,000
					3,316,501
Media — 3.8%
Cengage Learning Acquisitions, Inc.:
Non-Extended Term Loan, 2.71%, 7/03/14			495		387,164
Tranche 1 Incremental, 7.50%, 7/03/14			2,526		2,008,369
Cequel Communications LLC, Term Loan B, 4.00%, 2/14/19			440		442,392
Clear Channel Communications, Inc.:
Term Loan B, 3.85%, 1/29/16			2,054		1,756,554
Term Loan C, 3.85%, 1/29/16			617		520,938
EMI Music Publishing Ltd., Term Loan B, 5.50%, 6/29/18			672		678,845
Getty Images, Inc., Term Loan B, 4.75%, 10/18/19			635		639,883
Intelsat Jackson Holdings SA, Term Loan B1, 4.50%, 4/02/18			8,412		8,490,792
Interactive Data Corp., Term Loan B, 3.75%, 2/11/18			635		635,411
Univision Communications, Inc., Extended Term Loan, 4.45%, 3/31/17			416		416,107
Virgin Media Investment Holdings Ltd., Term Loan B, 3.50%, 2/17/20			1,170		1,163,015
					17,139,470
Metals & Mining — 0.9%
Constellium Holdco BV, Term Loan B, 9.25%, 5/25/18			657		669,834
FMG America Finance, Inc., Term Loan, 5.25%, 10/18/17			3,461		3,502,792
					4,172,626
Multiline Retail — 0.4%
HEMA Holding BV, Mezzanine, 8.62%, 7/05/17 (f)	EUR		1,776		2,052,111
Oil, Gas & Consumable Fuels — 1.5%
Chesapeake Energy Corp., Unsecured Term Loan, 5.75%, 12/01/17	USD		3,435		3,506,207
Obsidian Natural Gas Trust, Term Loan, 7.00%, 11/02/15			1,308		1,321,565
Samson Investment Co., Second Lien Term Loan, 6.00%, 9/25/18			360		363,377
Vantage Drilling Co., Term Loan, 6.25%, 10/26/17			1,501		1,508,505
					6,699,654
Pharmaceuticals — 0.7%
Aptalis Pharma, Inc., Term Loan B, 5.50%, 2/10/17			1,470		1,472,940
Par Pharmaceutica, Term Loan B, 4.25%, 9/28/19			1,107		1,105,841
Pharmaceutical Product Development, Inc., Term Loan B, 4.25%, 12/05/18			485		487,432
					3,066,213
Professional Services — 0.1%
Truven Health Analytics, Inc., Term Loan B, 5.75%, 6/01/19			572		577,492

See Notes to Financial Statements.

56 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

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

Floating Rate Loan Interests (c)		Par (000)		Value
Real Estate Investment Trusts (REITs) — 0.4%
iStar Financial, Inc., Term Loan, 4.50%, 9/28/17	USD		1,615	$	1,615,689
Real Estate Management & Development — 0.3%
Realogy Corp.:
Extended Letter of Credit, 4.46%, 10/10/16			138		138,243
Extended Term Loan, 4.42%, 10/10/16			1,173		1,172,668
					1,310,911
Road & Rail — 0.1%
Genesee & Wyoming, Inc., Term Loan A, 2.70%, 9/29/17			445		445,464
Semiconductors & Semiconductor Equipment — 0.1%
Freescale Semiconductor, Inc., Extended Term Loan B, 4.45%, 12/01/16			455		455,000
Software — 0.6%
GCA Services Group, Inc., Second Lien Term Loan, 9.25%, 10/22/20			90		89,100
Infor US, Inc., Term Loan B2, 5.25%, 4/05/18			1,895		1,916,015
Kronos, Inc., Second Lien Term Loan, 9.75%, 4/30/20			795		826,800
					2,831,915
Specialty Retail — 0.2%
David’s Bridal, Inc., Term Loan B, 5.00%, 10/11/19			835		843,559
Textiles, Apparel & Luxury Goods — 0.5%
Ascend Performance Materials LLC, Term Loan B, 6.75%, 4/10/18			1,737		1,754,244
PVH Corp., Term Loan B, 3.25%, 12/19/19			680		685,453
					2,439,697
Thrifts & Mortgage Finance — 0.2%
Ocwen Financial Corp., Term Loan, 5.00%, 1/22/18			940		951,355
Wireless Telecommunication Services — 0.9%
Vodafone Americas Finance 2, Inc., Term Loan B, 6.25%, 7/11/16 (f)			4,022		4,132,477
Total Floating Rate Loan Interests — 26.7%					121,534,312
Other Interests (a)(k)			Beneficial Interest (000)
Chemicals — 0.0%
Wellman Holdings, Inc., Litigation Trust Certificate			4,870		49
Hotels, Restaurants & Leisure — 0.0%
Buffets, Inc.			950		9
Media — 0.0%
Adelphia Escrow			1,300		13
Adelphia Recovery Trust			1,630		163
					176
Total Other Interests — 0.0%					234
Preferred Securities
Preferred Stocks			Shares
Auto Components — 0.5%
Dana Holding Corp., 4.00% (b)(d)			16,400		2,326,750

Preferred Stocks	Shares		Value
Thrifts & Mortgage Finance — 0.0%
Fannie Mae, Series O, 7.00% (a)(c)		40,000	$	154,000
Total Preferred Stocks — 0.5%				2,480,750
Trust Preferreds
Diversified Financial Services — 1.2%
GMAC Capital Trust I, Series 2, 8.13%, 2/15/40 (c)		198,960		5,262,437
Total Preferred Securities — 1.7%				7,743,187
Warrants (l)
Health Care Providers & Services — 0.0%
HealthSouth Corp. (Expires 1/16/14)		54,577		1
Media — 0.0%
New Vision Holdings LLC:
(Expires 9/30/14)		22,194		41,052
(Expires 9/30/14)		3,995		7,390
				48,442
Metals & Mining — 0.0%
Peninsula Energy, Ltd. (Expires 12/31/15)		6,113,638		93,672
Real Estate Investment Trusts (REITs) — 0.0%
Pepper Residential Securities Trust (Expires 12/31/15)		3,611,304		52,380
Software — 0.0%
Bankruptcy Management Solutions, Inc. (Expires 9/28/17)		525		—
HMH Holdings/EduMedia (issued/exercisable 3/09/10, 19 shares for 1 warrant, Expires 6/22/19, Strike Price $42.27)		1,835		—
				—
Total Warrants — 0.0%				194,495
Total Long-Term Investments
(Cost — $622,067,211) — 141.1%				642,597,774
Short-Term Securities
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.10% (m)(n)		4,840,770		4,840,770
Total Short-Term Securities
(Cost — $4,840,770) — 1.1%				4,840,770
Options Purchased
(Cost — $15,647) — 0.0%				3,320
Total Investments Before Options Written
(Cost — $626,923,628) — 142.2%				647,441,864
Options Written
(Premiums Received — $165,240) — (0.0)%				(84,883	)
Total Investments, Net of Options Written - 142.2%				647,356,981
Liabilities in Excess of Other Assets — (42.2)%				(192,208,778	)
Net Assets — 100.0%			$	455,148,203

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 57

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

Notes to Consolidated Schedule of Investments

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

Counterparty	Value		Unrealized Appreciation (Depreciation)
Bank of America Corp.	$	181,125	$	1,028
Citigroup, Inc.	$	887,775	$	(2,225	)
Deutsche AG	$	1,484,219	$	8,425
Goldman Sachs & Co., Inc	$	688,500	$	9,122
Pershing LLC	$	319,168	$	3,047
Sun Trust Capital	$	173,400	$	2,297

(h)	All or a portion of security has been pledged as collateral in connection with swaps.
(i)	Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown is as of report date.
(j)	Issuer filed for bankruptcy and/or is in default of principal and/or interest payments.
(k)	Other interests represent beneficial interests in liquidation trusts and other reorganization or private entities.
(l)	Warrants entitle the Trust to purchase a predetermined number of shares of common stock and are non-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date of the warrants, if any.
(m)	Investments in issuers considered to be an affiliate of the Trust 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	Realized Gain
BlackRock Liquidity Funds, TempFund, Institutional Class	—	4,840,770	4,840,770	$ 872	$ 110

(n)	Represents the current yield as of report date.
•	For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Trust management. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.
•	Financial futures contracts as of February 28, 2013 were as follows:

Contracts  Sold	Issue	Exchange	Expiration	Notional Value			Unrealized  Depreciation
(77)	S&P 500 E-Mini Index	Chicago Mercantile	March 2013		USD	5,826,205	$  (98,075)

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

Currency Purchased			Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
USD	809,981	AUD		781,000	Citigroup, Inc.	4/17/13	$	14,889
USD	6,948,175	CAD		6,855,000	Deutsche Bank AG	4/17/13		307,775
USD	2,954,951	GBP		1,910,000	Barclays Plc	4/17/13		58,063
USD	134,761	GBP		87,000	BNP Paribas SA	4/17/13		2,808
USD	179,331	GBP		111,000	BNP Paribas SA	4/17/13		10,978
USD	459,795	GBP		285,000	BNP Paribas SA	4/17/13		27,537
USD	9,371,232	GBP		5,850,000	Goldman Sachs Group, Inc.	4/17/13		498,563
USD	280,654	GBP		177,000	Royal Bank of Scotland Group Plc	4/17/13		12,199
EUR	389,000	USD		521,749	Westpac Banking Corp.	4/23/13		(13,704	)
USD	67,622	EUR		50,000	Citigroup, Inc.	4/23/13		2,320
USD	33,853,495	EUR		25,406,000	Citigroup, Inc.	4/23/13		672,510
USD	132,419	EUR		99,392	Deutsche Bank AG	4/23/13		2,610
USD	479,687	EUR		360,000	Goldman Sachs Group, Inc.	4/23/13		9,517
USD	98,520	EUR		73,000	Royal Bank of Scotland Group Plc	4/23/13		3,180
Total							$	1,609,245

See Notes to Financial Statements.

58 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

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

• Exchange-traded options purchased as of February 28, 2013 were as follows:

Description	Put/Call	Strike Price		Expiration Date	Contracts	Market Value
Life Technologies Corp.	Call	USD	70.00	3/16/13	166	$	3,320

• Over-the-counter credit default swaptions written as of February 28, 2013 were as follows:

Description

Counterparty

Put/ Call

Strike Price

Pay/Receive Floating Rate Index

Floating Rate Index

Credit  Rating1

Expiration Date

Notional Amount (000)2

Market Value

Sold Protection on 5-Year Credit Default Swap

Credit Suisse Group AG

Call

USD

103.50

Receive

Dow Jones CDX North America High Yield, Series 19, Verison 1

B+

6/19/13

USD

6,800

$

(36,746

)

Sold Protection on 5-Year Credit Default Swap

Credit Suisse Group AG

Put

USD

97.50

Pay

Dow Jones CDX North America High Yield, Series 19, Verison 1

B+

6/19/13

USD

6,800

(48,137

)

Total

$

(84,883

)

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

Issuer	Pay Fixed Rate	Counterparty	Expiration Date	Notional Amount (000)		Unrealized Depreciation
State of Israel	1.00%	Deutsche Bank AG	3/20/17	USD	1,050	$	(41,360	)
State of Israel	1.00%	Deutsche Bank AG	3/20/17	USD	350		(13,579	)
Beazer Homes USA, Inc.	5.00%	JPMorgan Chase & Co.	12/20/17	USD	100		(1,642	)
Total						$	(56,581	)

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

Issuer	Receive Fixed Rate	Counterparty	Expiration Date	Credit  Rating3	Notional Amount (000)2		Unrealized Appreciation (Depreciation)
Caesars Entertainment Operating Co., Inc.	5.00%	JPMorgan Chase & Co.	12/20/15	CCC	USD	117	$	14,244
Caesars Entertainment Operating Co., Inc.	5.00%	JPMorgan Chase & Co.	12/20/15	CCC	USD	422		71,137
Caesars Entertainment Operating Co., Inc.	5.00%	JPMorgan Chase & Co.	12/20/15	CCC	USD	468		52,653
ARAMARK Corp.	5.00%	Goldman Sachs Group, Inc.	3/20/16	B-	USD	750		60,215
Caesars Entertainment Operating Co., Inc.	5.00%	Goldman Sachs Group, Inc.	3/20/16	CCC	USD	170		13,213
Caesars Entertainment Operating Co., Inc.	5.00%	Goldman Sachs Group, Inc.	3/20/16	CCC	USD	170		13,213
Caesars Entertainment Operating Co., Inc.	5.00%	Goldman Sachs Group, Inc.	3/20/16	CCC	USD	113		5,788
Caesars Entertainment Operating Co., Inc.	5.00%	Goldman Sachs Group, Inc.	3/20/16	CCC	USD	558		547
Caesars Entertainment Operating Co., Inc.	5.00%	Goldman Sachs Group, Inc.	3/20/16	CCC	USD	506		32,569
Caesars Entertainment Operating Co., Inc.	5.00%	JPMorgan Chase & Co.	3/20/16	CCC	USD	66		2,395
ARAMARK Corp.	5.00%	Goldman Sachs Group, Inc.	6/20/16	B-	USD	475		38,458
ARAMARK Corp.	5.00%	Goldman Sachs Group, Inc.	6/20/16	B-	USD	475		40,752
Caesars Entertainment Operating Co., Inc.	5.00%	Goldman Sachs Group, Inc.	6/20/16	CCC	USD	1,184		63,566
Caesars Entertainment Operating Co., Inc.	5.00%	Goldman Sachs Group, Inc.	6/20/16	CCC	USD	190		843
Caesars Entertainment Operating Co., Inc.	5.00%	Goldman Sachs Group, Inc.	6/20/16	CCC	USD	345		20,332
Caesars Entertainment Operating Co., Inc.	5.00%	Goldman Sachs Group, Inc.	6/20/16	CCC	USD	660		32,783
ARAMARK Corp.	5.00%	Credit Suisse Group AG	9/20/16	B-	USD	200		22,343
ARAMARK Corp.	5.00%	Deutsche Bank AG	3/20/17	B-	USD	305		22,328
Caesars Entertainment Operating Co., Inc.	5.00%	Goldman Sachs Group, Inc.	3/20/17	CCC	USD	372		11,712
Caesars Entertainment Operating Co., Inc.	5.00%	Goldman Sachs Group, Inc.	3/20/17	CCC	USD	217		2,697
Caesars Entertainment Operating Co., Inc.	5.00%	Goldman Sachs Group, Inc.	3/20/17	CCC	USD	312		(2,376	)
Crown Castle International Corp.	7.25%	Deutsche Bank AG	3/20/17	B-	USD	720		124,628
CCO Holdings LLC	8.00%	Deutsche Bank AG	9/20/17	BB-	USD	2,400		580,278
Level 3 Communications, Inc.	5.00%	Goldman Sachs Group, Inc.	6/20/19	CCC	USD	1,600		125,091
Total							$	1,349,409

¹ Using S&P’s rating of the underlying securities of the index.

² The maximum potential amount the Trust may pay should a negative credit event take place as defined under the terms of the agreement.

³ Using S&P’s rating of the issuer.

• 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 Trust has the ability to access

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 59

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

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

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

The 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 Trust’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 Trust’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following tables summarize the Trust’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:
Common Stocks	$	33,165,519	$	2,552,779	$	8,653,232	$	44,371,530
Corporate Bonds		—		463,753,924		5,000,092		468,754,016
Floating Rate Loan Interests		—		99,592,860		21,941,452		121,534,312
Other Interests		163		—		71		234
Preferred Securities		5,416,437		2,326,750		—		7,743,187
Warrants		93,672		—		100,823		194,495
Short-Term Securities		4,840,770		—		—		4,840,770
Options Purchased:
Equity Contracts		3,320		—		—		3,320
Total	$	43,519,881	$	568,226,313	$	35,695,670	$	647,441,864

	Level 1			Level 2			Level 3		Total
Derivative Financial Instruments1
Assets:
Credit contracts		—		$	1,351,785			—	$	1,351,785
Foreign currency exchange contracts		—			1,622,949			—		1,622,949
Liabilities:
Credit contracts		—			(143,840	)		—		(143,840	)
Equity contracts	$	(98,075	)		—			—		(98,075	)
Foreign currency exchange contracts		—			(13,704	)		—		(13,704	)
Total	$	(98,075	)	$	2,817,190			—	$	2,719,115

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

Certain of the Trust’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	$	317,411		—			—	$	317,411
Cash pledged as collateral for financial futures contracts		324,000		—			—		324,000
Cash pledged as collateral for swaps		400,000		—			—		400,000
Liabilities:
Bank overdraft		—	$	(307,820	)		—		(307,820	)
Cash held as collateral for swaps		—		(1,200,000	)		—		(1,200,000	)
Loan payable		—		(178,000,000	)		—		(178,000,000	)
Total	$	1,041,411	$	(179,507,820	)		—	$	(178,466,409	)

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

See Notes to Financial Statements.

60 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

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

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

	Common Stocks		Corporate Bonds			Floating Rate Loan Interests			Other Interests		Warrants		Total
Assets:
Opening Balance, as of August 31, 2012	$	7,005,140	$	4,924,921		$	19,461,069		$	71	$	1	$	31,391,202
Transfers into Level 31		15,812		2,269,625			2,470,993			—		—		4,756,430
Transfers out of Level 32		—		—			(2,245,765	)		—		—		(2,245,765	)
Accrued discounts/premiums		—		(15,394	)		60,872			—		—		45,478
Net realized gain (loss)		—		11,264			(118,542	)		—		—		(107,278	)
Net change in unrealized appreciation/depreciation3		800,479		(2,291,902	)		1,226,432			—		100,822		(164,169	)
Purchases		831,801		3,947,719			7,770,453			—		—		12,549,973
Sales		—		(3,846,141	)		(6,684,060	)				—		(10,530,201	)
Closing Balance, as of February 28, 2013	$	8,653,232	$	5,000,092		$	21,941,452		$	71	$	100,823	$	35,695,670

¹ As of August 31, 2012, the Trust used observable inputs in determining the value of certain investments. As of February 28, 2013, the Trust used significant unobservable inputs in determining the value of the same investments. As a result, investments with a beginning of period value of $4,756,430 transferred from Level 2 to Level 3 in the disclosure hierarchy.

² As of August 31, 2012, the Trust used significant unobservable inputs in determining the value of certain investments. As of February 28, 2013, the Trust used observable inputs in determining the value of the same investments. As a result, investments with a beginning of period value of $2,245,765 transferred from Level 3 to Level 2 in the disclosure hierarchy.

³ 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 $870,743.

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

	Credit Contracts
Assets:
Opening Balance, as of August 31, 2012	$	869,356
Transfers into Level 34		—
Transfers out of Level 34		(205,779	)
Accrued discounts/premiums		—
Net realized gain (loss)		—
Net change in unrealized appreciation/depreciation5		(663,577	)
Purchases		—
Issues6		—
Sales		—
Settlements7		—
Closing Balance, as of February 28, 2013		—

⁴ Transfers into and transfers out of Level 3 represent the values as of the beginning of the reporting period.

⁵ Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations.

⁶ Issues represent upfront cash received on certain derivative financial instruments.

⁷ Settlements represent periodic contractual cash flows and/or cash flows to terminate certain derivative financial instruments.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 61

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

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 Trust’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 $19,957,170.

	Value		Valuation Techniques	Unobservable Inputs1	Range of Unobservable Inputs Utilized
Assets:
Common Stocks	$	7,147,761	Market Comparable Companies	EBITDA Multiple	6.56x
				Enterprise Value/Oil Barrel Multiple	CAD2  0.44x
		365,274	Restructure Terms3	N/A	—
Corporate Bonds		996,332	Discounted Cash Flow	Yield	12%
		2,759,300	Cost4	N/A	—
Floating Rate Loan Interests		1,077,719	Discounted Cash Flow	Yield	9.50%
		3,250,000	Cost4	N/A	—
Warrant		48,442	Discounted Vendor Price	Distribution Rate	0.51639
		93,672	Black-Sholes	Implied Volatility	90%
Total	$	15,738,500

¹ 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
Enterprise Value/Oil Barrel Multiple	Increase	Decrease
Yield	Decrease	Increase
Distribution Rate	Decrease	Increase
Implied Volatility	Increase	Decrease

² Canadian Dollar.

³ Investment is valued based on the company’s financial restructuring plan.

⁴ The Trust 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 Trust.

See Notes to Financial Statements.

62 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

Schedule of Investments February 28, 2013 (Unaudited) BlackRock High Income Shares (HIS)
(Percentages shown are based on Net Assets)

Common Stocks		Shares			Value
Diversified Financial Services — 0.7%
Kcad Holdings I Ltd. (a)			128,137,634		$	864,928
Diversified Telecommunication Services — 0.1%
Broadview Networks Holdings, Inc. (a)			15,600			104,364
Hotels, Restaurants & Leisure — 0.0%
Travelport LLC (a)			35,081			351
Paper & Forest Products — 0.3%
NewPage Corp. (a)			3,980			338,300
Software — 0.1%
Bankruptcy Management Solutions, Inc. (a)			251			3
HMH Holdings/EduMedia (a)			9,409			172,491
						172,494
Total Common Stocks — 1.2%						1,480,437
Corporate Bonds			Par (000	)
Aerospace & Defense — 0.9%
Bombardier, Inc., 4.25%, 1/15/16 (b)	USD		265			274,938
Huntington Ingalls Industries, Inc.:
6.88%, 3/15/18			100			108,938
7.13%, 3/15/21			125			136,250
Kratos Defense & Security Solutions, Inc., 10.00%, 6/01/17			398			439,292
Spirit Aerosystems, Inc., 7.50%, 10/01/17			147			155,820
						1,115,238
Air Freight & Logistics — 0.4%
National Air Cargo Group, Inc.:
Series 1, 12.38%, 9/02/15			257			258,367
Series 2, 12.38%, 8/16/15			260			261,594
						519,961
Airlines — 1.5%
American Airlines Pass-Through Trust, Series 2011-2, Class A, 8.63%, 10/15/21			309	��		321,675
Continental Airlines Pass-Through Trust:
Series 2010-1, Class B, 6.00%, 1/12/19			163			168,071
Series 2012-3, Class C, 6.13%, 4/29/18			405			403,987
Delta Air Lines Pass-Through Trust:
Series 2002-1, Class G-1, 6.72%, 1/02/23			261			289,307
Series 2009-1, Class B, 9.75%, 12/17/16			90			99,811
US Airways Pass-Through Trust:
Series 2011-1, Class C, 10.88%, 10/22/14			254			268,365
Series 2012-1, Class C, 9.13%, 10/01/15			186			199,020
Series 2012-2, Class B, 6.75%, 6/03/21			150			156,750
						1,906,986
Auto Components — 1.8%
Dana Holding Corp., 6.75%, 2/15/21			200			217,750
Delphi Corp.:
6.13%, 5/15/21			35			38,150
5.00%, 2/15/23			65			67,681
Icahn Enterprises LP, 8.00%, 1/15/18			1,510			1,617,588
IDQ Holdings, Inc., 11.50%, 4/01/17 (b)			155			169,725
Titan International, Inc., 7.88%, 10/01/17			190			203,775
						2,314,669
Beverages — 0.2%
Crown European Holdings SA:
7.13%, 8/15/18 (b)	EUR		114			161,111
7.13%, 8/15/18			50			70,663
						231,774
Building Products — 1.1%
Building Materials Corp. of America (b):
7.00%, 2/15/20	USD		430			465,475
6.75%, 5/01/21			350			375,812

Corporate Bonds		Par (000)		Value
Building Products (concluded)
Momentive Performance Materials, Inc., 8.88%, 10/15/20	USD		155	$	159,069
USG Corp., 9.75%, 1/15/18			315		370,519
					1,370,875
Capital Markets — 0.6%
E*Trade Financial Corp., Series A, 0.00%, 8/31/19 (c)(d)			295		308,460
KKR Group Finance Co. LLC, 6.38%, 9/29/20 (b)			200		235,195
Nuveen Investments, Inc., 9.13%, 10/15/17 (b)			209		210,045
					753,700
Chemicals — 3.3%
Axiall Corp., 4.88%, 5/15/23 (b)			76		77,140
Celanese US Holdings LLC, 5.88%, 6/15/21			632		690,460
Eagle Spinco, Inc., 4.63%, 2/15/21 (b)			163		165,649
Huntsman International LLC, 8.63%, 3/15/21			80		90,400
INEOS Finance Plc, 7.50%, 5/01/20 (b)			195		210,112
Kraton Polymers LLC, 6.75%, 3/01/19			55		57,200
LyondellBasell Industries NV, 5.75%, 4/15/24			1,210		1,406,625
Nexeo Solutions LLC, 8.38%, 3/01/18			40		39,100
Nufarm Australia Ltd., 6.38%, 10/15/19 (b)			100		106,000
Orion Engineered Carbons Bondco GmbH (FKA Kinove German Bondco GmbH), 10.00%, 6/15/18	EUR		148		213,896
PolyOne Corp., 7.38%, 9/15/20	USD		100		110,750
Rockwood Specialties Group, Inc., 4.63%, 10/15/20			325		336,375
Tronox Finance LLC, 6.38%, 8/15/20 (b)			644		639,975
					4,143,682
Commercial Banks — 1.8%
CIT Group, Inc.:
5.25%, 3/15/18			1,440		1,548,000
6.63%, 4/01/18 (b)			285		323,475
5.50%, 2/15/19 (b)			240		261,000
5.00%, 8/15/22			210		224,700
					2,357,175
Commercial Services & Supplies — 2.0%
ADS Waste Holdings, Inc., 8.25%, 10/01/20 (b)			122		131,150
ARAMARK Corp., 5.75%, 3/15/20 (b)(e)			282		287,640
ARAMARK Holdings Corp., 8.63%, 5/01/16 (b)(e)(f)			190		193,802
Aviation Capital Group Corp., 6.75%, 4/06/21 (b)			230		248,939
AWAS Aviation Capital Ltd., 7.00%, 10/17/16 (b)			162		169,680
Brickman Group Holdings, Inc., 9.13%, 11/01/18 (b)			9		9,675
Casella Waste Systems, Inc., 7.75%, 2/15/19			25		23,938
Catalent Pharma Solutions, Inc., 7.88%, 10/15/18 (b)			270		273,375
Clean Harbors, Inc., 5.25%, 8/01/20			233		239,990
Covanta Holding Corp., 6.38%, 10/01/22			280		303,614
HDTFS, Inc. (b):
5.88%, 10/15/20			40		41,600
6.25%, 10/15/22			115		123,625
Mead Products LLC/ACCO Brands Corp., 6.75%, 4/30/20 (b)			34		35,998
Mobile Mini, Inc., 7.88%, 12/01/20			165		183,562
RSC Equipment Rental, Inc., 8.25%, 2/01/21			210		238,087
West Corp., 8.63%, 10/01/18			65		69,225
					2,573,900
Communications Equipment — 1.2%
Avaya, Inc., 9.75%, 11/01/15			310		304,962
Brocade Communications Systems, Inc., 4.63%, 1/15/23 (b)			90		87,750
Zayo Group LLC/Zayo Capital, Inc.:
8.13%, 1/01/20			430		480,525
10.13%, 7/01/20			560		656,600
					1,529,837

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 63

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

Corporate Bonds		Par (000)		Value
Computers & Peripherals — 0.3%
EMC Corp., Series B, 1.75%, 12/01/13 (c)	USD		89	$	128,716
NCR Corp., 5.00%, 7/15/22 (b)			120		119,400
SanDisk Corp., 1.50%, 8/15/17 (c)			130		160,063
					408,179
Construction & Engineering — 0.3%
Boart Longyear Management Property Ltd., 7.00%, 4/01/21 (b)			90		93,375
H&E Equipment Services, Inc., 7.00%, 9/01/22 (b)			193		211,335
Weekley Homes LLC, 6.00%, 2/01/23 (b)			67		68,340
					373,050
Construction Materials — 2.3%
HD Supply, Inc. (b):
8.13%, 4/15/19			560		630,700
11.00%, 4/15/20			590		710,950
7.50%, 7/15/20			917		918,146
11.50%, 7/15/20			620		714,550
					2,974,346
Consumer Finance — 1.0%
Credit Acceptance Corp., 9.13%, 2/01/17			220		239,800
Ford Motor Credit Co. LLC:
12.00%, 5/15/15			330		400,537
8.13%, 1/15/20			500		629,908
					1,270,245
Containers & Packaging — 1.9%
Ardagh Packaging Finance Plc (b):
7.38%, 10/15/17	EUR		285		403,709
9.13%, 10/15/20	USD		200		219,000
9.13%, 10/15/20			200		218,000
7.00%, 11/15/20			200		200,500
4.88%, 11/15/22			200		197,000
Berry Plastics Corp.:
4.18%, 9/15/14 (g)			135		135,000
8.25%, 11/15/15			55		57,321
9.75%, 1/15/21			85		98,175
Crown Americas LLC, 6.25%, 2/01/21			5		5,450
Crown Americas LLC/Crown Americas Capital Corp. IV, 4.50%, 1/15/23 (b)			52		50,830
GCL Holdings SCA, 9.38%, 4/15/18 (b)	EUR		120		170,014
Graphic Packaging International, Inc., 7.88%, 10/01/18	USD		175		192,500
Pactiv LLC, 7.95%, 12/15/25			177		165,937
Tekni-Plex, Inc., 9.75%, 6/01/19 (b)			243		268,515
					2,381,951
Distributors — 0.5%
VWR Funding, Inc., 7.25%, 9/15/17 (b)			605		636,763
Diversified Consumer Services — 1.1%
313 Group, Inc. (b):
6.38%, 12/01/19			432		421,200
8.75%, 12/01/20			261		257,737
Laureate Education, Inc., 9.25%, 9/01/19 (b)			550		598,125
ServiceMaster Co., 8.00%, 2/15/20			85		90,100
					1,367,162
Diversified Financial Services — 5.0%
Air Lease Corp., 4.50%, 1/15/16			260		265,850
Aircastle Ltd.:
6.75%, 4/15/17			160		176,400
6.25%, 12/01/19			140		150,850
Ally Financial, Inc.:
7.50%, 12/31/13			330		346,500
8.00%, 11/01/31			1,227		1,541,419
CNG Holdings, Inc., 9.38%, 5/15/20 (b)			180		177,525
DPL, Inc.:
6.50%, 10/15/16			146		153,300
7.25%, 10/15/21			384		411,840
Corporate Bonds		Par (000)		Value
Diversified Financial Services (concluded)
General Motors Financial Co., Inc., 6.75%, 6/01/18	USD		140	$	161,000
Leucadia National Corp., 8.13%, 9/15/15			378		427,140
Reynolds Group Issuer, Inc.:
7.13%, 4/15/19			115		123,481
9.00%, 4/15/19			210		222,600
7.88%, 8/15/19			150		165,750
9.88%, 8/15/19			580		635,100
5.75%, 10/15/20			985		1,017,012
WMG Acquisition Corp.:
11.50%, 10/01/18			190		220,638
6.00%, 1/15/21 (b)			154		159,390
					6,355,795
Diversified Telecommunication Services — 2.3%
Broadview Networks Holdings, Inc., 10.50%, 11/15/17			240		234,600
Cequel Communications Escrow I LLC/Cequel Communications Escrow Capital Corp., 6.38%, 9/15/20 (b)			205		211,919
Consolidated Communications Finance Co., 10.88%, 6/01/20 (b)			150		169,875
Level 3 Communications, Inc.:
6.50%, 10/01/16 (c)			125		165,078
8.88%, 6/01/19 (b)			145		156,600
Level 3 Financing, Inc.:
8.13%, 7/01/19			813		886,170
7.00%, 6/01/20 (b)			192		201,600
8.63%, 7/15/20			385		427,350
TW Telecom Holdings, Inc., 5.38%, 10/01/22			130		135,525
Windstream Corp.:
8.13%, 8/01/13			112		114,934
7.88%, 11/01/17			163		184,598
7.50%, 4/01/23			35		36,575
6.38%, 8/01/23 (b)			35		34,300
					2,959,124
Electric Utilities — 0.5%
Mirant Mid Atlantic Pass-Through Trust, Series B, 9.13%, 6/30/17			130		144,601
The Tokyo Electric Power Co., Inc., 4.50%, 3/24/14	EUR		350		466,675
					611,276
Electrical Equipment — 0.3%
Belden, Inc., 5.50%, 9/01/22 (b)	USD		160		164,000
General Cable Corp., 5.75%, 10/01/22 (b)			270		276,750
					440,750
Electronic Equipment, Instruments & Components — 0.1%
Jabil Circuit, Inc., 8.25%, 3/15/18			105		126,263
Energy Equipment & Services — 3.8%
Atwood Oceanics, Inc., 6.50%, 2/01/20			65		70,688
Calfrac Holdings LP, 7.50%, 12/01/20 (b)			185		185,925
Compagnie Générale de Géophysique, Veritas:
7.75%, 5/15/17			170		175,312
6.50%, 6/01/21			595		618,800
FTS International Services LLC/FTS International Bonds, Inc., 8.13%, 11/15/18 (b)			578		598,230
Genesis Energy LP, 5.75%, 2/15/21 (b)			74		76,590
Gulfmark Offshore, Inc., 6.38%, 3/15/22			70		72,275
Hornbeck Offshore Services, Inc., 5.88%, 4/01/20			140		147,000
MEG Energy Corp. (b):
6.50%, 3/15/21			455		480,025
6.38%, 1/30/23			160		165,600
Oil States International, Inc.:
6.50%, 6/01/19			140		149,800
5.13%, 1/15/23 (b)			60		60,000

See Notes to Financial Statements.

64 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

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

Corporate Bonds		Par (000)		Value
Energy Equipment & Services (concluded)
Peabody Energy Corp.:
6.25%, 11/15/21	USD		640	$	665,600
7.88%, 11/01/26			170		181,900
4.75%, 12/15/66 (c)			309		262,457
Precision Drilling Corp.:
6.63%, 11/15/20			35		37,188
6.50%, 12/15/21			135		143,100
Rain CII Carbon LLC/CII Carbon Corp., 8.25%, 1/15/21 (b)			200		210,000
Seadrill Ltd., 5.63%, 9/15/17 (b)			305		308,812
Tervita Corp., 8.00%, 11/15/18 (b)			159		163,770
					4,773,072
Food & Staples Retailing — 0.1%
Rite Aid Corp., 9.25%, 3/15/20			165		184,800
Food Products — 0.4%
Del Monte Corp., 7.63%, 2/15/19			27		28,013
Post Holdings, Inc., 7.38%, 2/15/22			255		275,400
Smithfield Foods, Inc., 6.63%, 8/15/22			205		222,937
					526,350
Health Care Equipment & Supplies — 3.4%
Biomet, Inc. (b):
6.50%, 8/01/20			1,680		1,776,600
6.50%, 10/01/20			1,002		1,032,060
DJO Finance LLC:
8.75%, 3/15/18			168		185,430
7.75%, 4/15/18			50		49,750
9.88%, 4/15/18			180		192,150
Fresenius Medical Care US Finance II, Inc., 5.63%, 7/31/19 (b)			48		51,960
Fresenius Medical Care US Finance, Inc., 5.75%, 2/15/21 (b)			120		130,800
Fresenius US Finance II, Inc., 9.00%, 7/15/15 (b)			505		579,487
Kinetic Concepts, Inc./KCI USA, Inc., 12.50%, 11/01/19 (b)			145		142,100
Teleflex, Inc., 6.88%, 6/01/19			130		141,375
					4,281,712
Health Care Providers & Services — 8.8%
Aviv Healthcare Properties LP, 7.75%, 2/15/19			255		273,488
CHS/Community Health Systems, Inc.:
5.13%, 8/15/18			395		415,244
7.13%, 7/15/20			202		217,655
ConvaTec Healthcare E SA, 7.38%, 12/15/17 (b)	EUR		200		276,776
Crown Newco 3 Plc, 7.00%, 2/15/18 (b)	GBP		200		313,271
DaVita HealthCare Partners, Inc., 5.75%, 8/15/22	USD		393		409,702
HCA Holdings, Inc., 6.25%, 2/15/21			540		569,700
HCA, Inc.:
8.50%, 4/15/19			60		66,450
6.50%, 2/15/20			1,010		1,131,200
7.88%, 2/15/20			40		44,350
7.25%, 9/15/20			1,400		1,554,000
4.75%, 5/01/23			660		658,350
Hologic, Inc., 6.25%, 8/01/20 (b)			703		741,665
IASIS Healthcare LLC, 8.38%, 5/15/19			286		294,580
INC Research LLC, 11.50%, 7/15/19 (b)			302		322,385
inVentiv Health, Inc., 9.00%, 1/15/18 (b)			280		291,900
Omnicare, Inc.:
7.75%, 6/01/20			450		499,500
3.75%, 4/01/42 (c)			69		71,933
Symbion, Inc., 8.00%, 6/15/16			155		161,975
Tenet Healthcare Corp.:
6.25%, 11/01/18			474		524,955
8.88%, 7/01/19			1,260		1,423,800
6.75%, 2/01/20			230		246,100
4.50%, 4/01/21 (b)			312		307,710
Corporate Bonds		Par (000)		Value
Health Care Providers & Services (concluded)
Vanguard Health Holding Co. II LLC:
8.00%, 2/01/18	USD		104	$	110,760
7.75%, 2/01/19 (b)			205		219,606
					11,147,055
Health Care Technology — 1.1%
IMS Health, Inc. (b):
12.50%, 3/01/18			1,125		1,355,625
6.00%, 11/01/20			63		65,520
					1,421,145
Hotels, Restaurants & Leisure — 2.6%
Caesars Entertainment Operating Co., Inc.:
10.00%, 12/15/15			389		353,990
10.00%, 12/15/18			335		221,100
9.00%, 2/15/20 (b)			382		377,225
Caesars Operating Escrow LLC:
8.50%, 2/15/20			88		85,800
9.00%, 2/15/20 (b)			431		425,612
Carlson Wagonlit BV, 6.88%, 6/15/19 (b)			200		209,000
Diamond Resorts Corp., 12.00%, 8/15/18			550		605,000
El Dorado Resorts LLC, 8.63%, 6/15/19 (b)			60		59,625
MTR Gaming Group, Inc., 11.50%, 8/01/19 (f)			65		67,938
Regal Entertainment Group, 5.75%, 2/01/25			112		109,760
Six Flags Entertainment Corp., 5.25%, 1/15/21 (b)			200		196,000
Travelport LLC:
4.91%, 9/01/14 (g)			85		77,350
6.31%, 12/01/16 (b)(f)			197		179,185
Tropicana Entertainment LLC, 9.63%, 12/15/14 (a)(h)			215		—
Wynn Las Vegas LLC, 5.38%, 3/15/22			270		283,838
					3,251,423
Household Durables — 2.8%
Ashton Woods USA LLC, 6.88%, 2/15/21 (b)			98		98,490
Beazer Homes USA, Inc., 6.63%, 4/15/18			15		16,031
Brookfield Residential Properties, Inc., 6.50%, 12/15/20 (b)			180		190,800
Jarden Corp., 7.50%, 1/15/20	EUR		140		196,942
K. Hovnanian Enterprises, Inc., 7.25%, 10/15/20 (b)	USD		415		456,500
Libbey Glass, Inc., 6.88%, 5/15/20			270		289,575
PH Holding LLC, 9.75%, 12/31/17			150		147,000
Pulte Group, Inc., 6.38%, 5/15/33			85		86,275
The Ryland Group, Inc., 6.63%, 5/01/20			160		176,000
Standard Pacific Corp.:
10.75%, 9/15/16			890		1,108,050
8.38%, 1/15/21			440		522,500
United Rentals North America, Inc., 5.75%, 7/15/18			114		122,693
William Lyon Homes, Inc., 8.50%, 11/15/20 (b)			130		139,750
					3,550,606
Household Products — 0.8%
Ontex IV SA, 7.50%, 4/15/18 (b)	EUR		100		135,777
Spectrum Brands Escrow Corp. (b):
6.38%, 11/15/20	USD		167		177,646
6.63%, 11/15/22			110		118,525
Spectrum Brands, Inc.:
9.50%, 6/15/18			430		487,512
6.75%, 3/15/20 (b)			43		46,333
					965,793
Independent Power Producers & Energy Traders — 4.7%
The AES Corp., 7.38%, 7/01/21			125		141,250
Calpine Corp. (b):
7.25%, 10/15/17			72		76,590
7.50%, 2/15/21			40		43,500
7.88%, 1/15/23			180		199,350

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 65

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

Corporate Bonds		Par (000)		Value
Independent Power Producers & Energy Traders (concluded)
Energy Future Intermediate Holding Co. LLC:
6.88%, 8/15/17 (b)	USD		330	$	348,150
10.00%, 12/01/20 (b)			670		755,425
10.00%, 12/01/20			1,936		2,197,360
GenOn REMA LLC:
Series B, 9.24%, 7/02/17			107		117,716
Series C, 9.68%, 7/02/26			135		147,150
Laredo Petroleum, Inc.:
9.50%, 2/15/19			340		384,200
7.38%, 5/01/22			165		179,025
NRG Energy, Inc.:
7.63%, 1/15/18			661		757,671
6.63%, 3/15/23 (b)			285		303,525
QEP Resources, Inc.:
5.38%, 10/01/22			148		155,030
5.25%, 5/01/23			115		119,025
					5,924,967
Industrial Conglomerates — 0.2%
Sequa Corp., 7.00%, 12/15/17 (b)			250		251,875
Insurance — 0.6%
Alliant Holdings I, Inc., 7.88%, 12/15/20 (b)			499		501,495
CNO Financial Group, Inc., 6.38%, 10/01/20 (b)			98		103,880
MPL 2 Acquisition Canco, Inc., 9.88%, 8/15/18 (b)			120		118,800
					724,175
Internet Software & Services — 0.1%
Equinix, Inc., 4.88%, 4/01/20			64		64,000
IT Services — 3.6%
Ceridian Corp., 8.88%, 7/15/19 (b)			650		732,875
Epicor Software Corp., 8.63%, 5/01/19			230		247,825
First Data Corp.:
7.38%, 6/15/19 (b)			895		940,869
6.75%, 11/01/20 (b)			1,131		1,160,689
8.25%, 1/15/21 (b)			58		59,305
11.25%, 1/15/21 (b)			214		218,280
12.63%, 1/15/21			365		389,181
SunGard Data Systems, Inc.:
7.38%, 11/15/18			250		268,437
6.63%, 11/01/19 (b)			350		359,625
WEX, Inc., 4.75%, 2/01/23 (b)			214		207,045
					4,584,131
Machinery — 1.8%
Dematic SA, 7.75%, 12/15/20 (b)			40		40,900
The Manitowoc Co., Inc., 5.88%, 10/15/22			205		210,125
Silver II Borrower/Silver II US Holdings LLC, 7.75%, 12/15/20 (b)			150		156,000
SPX Corp., 6.88%, 9/01/17			80		89,400
Terex Corp., 6.00%, 5/15/21			205		212,687
Trinseo Materials Operating SCA, 8.75%, 2/01/19 (b)			178		177,333
UR Merger Sub Corp.:
7.38%, 5/15/20			195		213,525
7.63%, 4/15/22			957		1,059,877
6.13%, 6/15/23			85		89,250
					2,249,097
Media — 9.7%
Affinion Group, Inc., 7.88%, 12/15/18			177		134,520
AMC Networks, Inc.:
7.75%, 7/15/21			100		113,500
4.75%, 12/15/22			156		155,415
Cablevision Systems Corp., 5.88%, 9/15/22			250		242,500
CCO Holdings LLC:
5.25%, 9/30/22			941		925,709
5.13%, 2/15/23			270		263,250
Corporate Bonds		Par (000)		Value
Media (concluded)
Cengage Learning Acquisitions, Inc., 11.50%, 4/15/20 (b)	USD		293	$	231,470
Checkout Holding Corp., 11.47%, 11/15/15 (b)(d)			199		147,011
Cinemark USA, Inc.:
8.63%, 6/15/19			120		133,050
5.13%, 12/15/22 (b)			93		93,465
Clear Channel Communications, Inc., 9.00%, 12/15/19 (b)			403		374,790
Clear Channel Worldwide Holdings, Inc.:
6.50%, 11/15/22 (b)			271		283,195
6.50%, 11/15/22 (b)			732		770,430
Series B 7.63%, 3/15/20			500		517,500
DISH DBS Corp.:
5.88%, 7/15/22			450		474,750
5.00%, 3/15/23 (b)			295		292,788
Harron Communications LP, 9.13%, 4/01/20 (b)			140		154,000
Intelsat Jackson Holdings SA:
7.25%, 10/15/20			315		337,838
6.63%, 12/15/22 (b)			93		93,698
Intelsat Luxembourg SA:
11.25%, 2/04/17			270		286,875
11.50%, 2/04/17			998		1,061,750
Interactive Data Corp., 10.25%, 8/01/18			615		697,256
The Interpublic Group of Cos., Inc., 10.00%, 7/15/17			155		167,206
Kabel Deutschland Vertrieb und Service GmbH & Co. KG, 6.50%, 6/29/18 (b)	EUR		155		216,687
Live Nation Entertainment, Inc., 8.13%, 5/15/18 (b)	USD		335		363,475
NAI Entertainment Holdings LLC, 8.25%, 12/15/17 (b)			261		284,490
Nielsen Finance LLC:
11.63%, 2/01/14			72		78,660
7.75%, 10/15/18			517		572,577
Odeon & UCI Finco Plc, 9.00%, 8/01/18 (b)	GBP		100		157,773
ProQuest LLC, 9.00%, 10/15/18 (d)	USD		82		81,385
ProtoStar I Ltd., 18.00%, 10/15/13 (a)(b)(h)			1,427		714
Sterling Entertainment Corp., 10.00%, 12/15/19			375		375,000
Unitymedia GmbH:
9.63%, 12/01/19	EUR		100		144,459
9.63%, 12/01/19 (b)			245		353,925
9.50%, 3/15/21			190		282,435
Unitymedia Hessen GmbH & Co. KG, 7.50%, 3/15/19			304		431,615
Univision Communications, Inc., 6.75%, 9/15/22 (b)	USD		55		59,400
UPC Holding BV, 9.88%, 4/15/18 (b)			200		224,000
UPCB Finance II Ltd., 6.38%, 7/01/20 (b)	EUR		371		513,420
WaveDivision Escrow LLC/WaveDivision Escrow Corp., 8.13%, 9/01/20 (b)	USD		155		162,750
Ziggo Bond Co. BV, 8.00%, 5/15/18 (b)	EUR		85		119,849
					12,374,580
Metals & Mining — 4.4%
ArcelorMittal:
9.50%, 2/15/15	USD		295		332,981
4.00%, 8/05/15			173		179,114
4.25%, 3/01/16			50		51,500
5.00%, 2/25/17			180		187,290
6.13%, 6/01/18			181		195,172
6.00%, 3/01/21			26		27,593
6.75%, 2/25/22			214		235,637
7.50%, 10/15/39			26		26,953
7.25%, 3/01/41			99		98,753
FMG Resources August 2006 Property Ltd. (b):
6.38%, 2/01/16			195		203,079
6.00%, 4/01/17			208		216,840
Global Brass and Copper, Inc., 9.50%, 6/01/19 (b)			130		141,375
GoldCorp, Inc., 2.00%, 8/01/14 (c)			460		481,850

See Notes to Financial Statements.

66 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

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

Corporate Bonds		Par (000)		Value
Metals & Mining (concluded)
Kaiser Aluminum Corp., 8.25%, 6/01/20	USD		100	$	111,750
New Gold, Inc., 7.00%, 4/15/20 (b)			65		70,200
Newmont Mining Corp., Series A, 1.25%, 7/15/14 (c)			670		739,931
Novelis, Inc., 8.75%, 12/15/20			1,525		1,708,000
Steel Dynamics, Inc., 6.38%, 8/15/22 (b)			105		112,350
Taseko Mines Ltd., 7.75%, 4/15/19			190		189,050
Vedanta Resources Plc, 8.25%, 6/07/21 (b)			200		227,500
Walter Energy, Inc., 9.88%, 12/15/20 (b)			57		61,988
					5,598,906
Multiline Retail — 0.4%
Dollar General Corp., 4.13%, 7/15/17			351		371,183
Dufry Finance SCA, 5.50%, 10/15/20 (b)			200		208,500
					579,683
Oil, Gas & Consumable Fuels — 9.1%
Access Midstream Partners LP:
6.13%, 7/15/22			120		128,700
4.88%, 5/15/23			165		163,350
Alpha Appalachia Holdings, Inc., 3.25%, 8/01/15 (c)			385		367,434
Aurora USA Oil & Gas, Inc., 9.88%, 2/15/17 (b)			100		107,500
BreitBurn Energy Partners LP, 7.88%, 4/15/22			115		122,188
Carrizo Oil & Gas, Inc., 7.50%, 9/15/20			107		112,350
Chaparral Energy, Inc., 7.63%, 11/15/22			95		103,075
Chesapeake Energy Corp.:
7.25%, 12/15/18			50		56,500
6.63%, 8/15/20			80		87,600
6.88%, 11/15/20			80		88,000
6.13%, 2/15/21			35		37,100
Concho Resources, Inc.:
7.00%, 1/15/21			75		82,875
6.50%, 1/15/22			133		144,970
5.50%, 10/01/22			99		103,084
CONSOL Energy, Inc., 8.25%, 4/01/20			135		148,837
Continental Resources, Inc., 7.13%, 4/01/21			170		192,950
Crosstex Energy LP, 8.88%, 2/15/18			65		70,038
CVR Refining LLC/Coffeyville Finance, Inc., 6.50%, 11/01/22 (b)			165		166,237
Denbury Resources, Inc., 4.63%, 7/15/23			334		327,737
Energy XXI Gulf Coast, Inc.:
9.25%, 12/15/17			210		237,300
7.75%, 6/15/19			245		262,762
EP Energy LLC/Everest Acquisition Finance, Inc.:
6.88%, 5/01/19			155		168,950
7.75%, 9/01/22			95		102,838
EV Energy Partners LP, 8.00%, 4/15/19			70		73,325
Halcon Resources Corp., 8.88%, 5/15/21 (b)			179		192,425
Hilcorp Energy I LP, 7.63%, 4/15/21 (b)			124		136,710
Kodiak Oil & Gas Corp., 8.13%, 12/01/19			155		174,375
Linn Energy LLC:
6.50%, 5/15/19			20		20,700
6.25%, 11/01/19 (b)			515		525,300
8.63%, 4/15/20			50		55,313
7.75%, 2/01/21			75		81,000
MarkWest Energy Partners LP:
5.50%, 2/15/23			100		105,000
4.50%, 7/15/23			135		131,963
Newfield Exploration Co., 6.88%, 2/01/20			350		375,375
Northern Oil and Gas, Inc., 8.00%, 6/01/20			140		146,300
Oasis Petroleum, Inc.:
7.25%, 2/01/19			90		97,200
6.50%, 11/01/21			135		145,800
Offshore Group Investments Ltd., 11.50%, 8/01/15			332		361,880
PBF Holding Co. LLC, 8.25%, 2/15/20 (b)			100		108,750
PDC Energy, Inc., 7.75%, 10/15/22 (b)			90		95,175
PetroBakken Energy Ltd., 8.63%, 2/01/20 (b)			296		301,920
Corporate Bonds		Par (000)		Value
Oil, Gas & Consumable Fuels (concluded)
Petroleum Geo-Services ASA, 7.38%, 12/15/18 (b)	USD		465	$	511,500
Plains Exploration & Production Co., 6.88%, 2/15/23			460		530,150
Range Resources Corp.:
8.00%, 5/15/19			170		187,000
5.75%, 6/01/21			460		489,900
5.00%, 8/15/22			178		182,005
Regency Energy Partners LP:
6.88%, 12/01/18			173		186,840
5.50%, 4/15/23			287		302,785
Sabine Pass Liquefaction LLC, 5.63%, 2/01/21 (b)			699		721,717
Sabine Pass Liquified Natural Gas LP:
7.50%, 11/30/16			665		734,825
6.50%, 11/01/20 (b)			140		147,700
SandRidge Energy, Inc., 7.50%, 2/15/23			245		256,637
SESI LLC:
6.38%, 5/01/19			145		155,512
7.13%, 12/15/21			105		116,288
SM Energy Co.:
6.63%, 2/15/19			60		64,350
6.50%, 11/15/21			115		125,063
6.50%, 1/01/23			170		184,025
Tesoro Logistics LP/Tesoro Logistics Finance Corp., 5.88%, 10/01/20 (b)			68		70,890
Vanguard Natural Resources, 7.88%, 4/01/20			120		126,000
					11,604,073
Paper & Forest Products — 0.8%
Ainsworth Lumber Co. Ltd., 7.50%, 12/15/17 (b)			155		167,013
Boise Paper Holdings LLC:
9.00%, 11/01/17			25		27,031
8.00%, 4/01/20			50		55,125
Clearwater Paper Corp., 7.13%, 11/01/18			270		292,275
Longview Fibre Paper & Packaging, Inc., 8.00%, 6/01/16 (b)			155		162,750
NewPage Corp., 11.38%, 12/31/14 (a)(h)			919		—
Sappi Papier Holding GmbH (b):
8.38%, 6/15/19			200		224,000
6.63%, 4/15/21			65		67,275
					995,469
Pharmaceuticals — 1.2%
Capsugel Finance Co. SCA, 9.88%, 8/01/19 (b)	EUR		100		146,874
Jaguar Holding Co. II/Jaguar Merger Sub, Inc., 9.50%, 12/01/19 (b)	USD		174		199,665
Valeant Pharmaceuticals International (b):
6.50%, 7/15/16			260		273,163
6.88%, 12/01/18			330		358,462
6.38%, 10/15/20			180		193,725
6.75%, 8/15/21			280		302,750
					1,474,639
Professional Services — 0.2%
Truven Health Analytics, Inc., 10.63%, 6/01/20 (b)			220		246,400
Real Estate Investment Trusts (REITs) — 0.8%
Cantor Commercial Real Estate Co. LP, 7.75%, 2/15/18 (b)			122		122,610
Felcor Lodging LP:
6.75%, 6/01/19			463		497,436
5.63%, 3/01/23 (b)			112		112,700
The Rouse Co. LP, 6.75%, 11/09/15			240		249,600
					982,346
Real Estate Management & Development — 2.1%
CBRE Services, Inc., 6.63%, 10/15/20			160		172,800
Crescent Resources LLC/Crescent Ventures, Inc., 10.25%, 8/15/17 (b)			375		404,062
Mattamy Group Corp., 6.50%, 11/15/20 (b)			165		164,381

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 67

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

Corporate Bonds		Par (000)		Value
Real Estate Management & Development (concluded)
Realogy Corp.:
11.50%, 4/15/17	USD		175	$	186,594
12.00%, 4/15/17			45		48,038
7.88%, 2/15/19 (b)			560		609,000
7.63%, 1/15/20 (b)			220		248,050
9.00%, 1/15/20 (b)			145		166,387
Shea Homes LP, 8.63%, 5/15/19			635		704,850
					2,704,162
Road & Rail — 0.8%
The Hertz Corp.:
7.50%, 10/15/18			360		393,300
6.75%, 4/15/19 (b)			130		140,075
7.38%, 1/15/21			450		496,125
					1,029,500
Semiconductors & Semiconductor Equipment — 0.5%
Micron Technology, Inc., Series C, 2.38%, 5/01/32 (b)(c)			112		124,670
NXP BV/NXP Funding LLC, 5.75%, 2/15/21 (b)			200		204,500
Spansion LLC, 7.88%, 11/15/17			260		274,300
					603,470
Software — 1.3%
IAC/InterActiveCorp, 4.75%, 12/15/22 (b)			183		178,883
Igloo Holdings Corp., 8.25%, 12/15/17 (b)(f)			130		133,250
Infor US, Inc., 9.38%, 4/01/19			730		819,425
Interface Security Systems Holdings, Inc., 9.25%, 1/15/18 (b)			64		65,120
Nuance Communications, Inc., 5.38%, 8/15/20 (b)			225		227,812
Sophia LP, 9.75%, 1/15/19 (b)			198		219,037
					1,643,527
Specialty Retail — 2.8%
Asbury Automotive Group, Inc., 8.38%, 11/15/20			165		183,975
Claire’s Stores, Inc., 9.00%, 3/15/19 (b)			280		310,800
House of Fraser Funding Plc, 8.88%, 8/15/18 (b)	GBP		129		207,441
Limited Brands, Inc.:
8.50%, 6/15/19	USD		70		85,750
5.63%, 2/15/22			70		74,025
Michaels Stores, Inc., 7.75%, 11/01/18			103		112,399
New Academy Finance Co., 8.00%, 6/15/18 (b)(f)			94		97,055
Party City Holdings, Inc., 8.88%, 8/01/20 (b)			620		674,250
Penske Automotive Group, Inc., 5.75%, 10/01/22 (b)			490		512,662
QVC, Inc.:
7.13%, 4/15/17 (b)			105		109,364
7.50%, 10/01/19 (b)			285		314,552
7.38%, 10/15/20 (b)			130		144,097
5.13%, 7/02/22			11		11,632
Sally Holdings LLC:
6.88%, 11/15/19			245		273,175
5.75%, 6/01/22			223		235,544
Sonic Automotive, Inc., 9.00%, 3/15/18			175		192,500
					3,539,221
Textiles, Apparel & Luxury Goods — 0.2%
Levi Strauss & Co., 6.88%, 5/01/22			195		211,819
Phillips-Van Heusen Corp., 4.50%, 12/15/22			111		109,474
					321,293
Trading Companies & Distributors — 0.6%
Ashtead Capital, Inc., 6.50%, 7/15/22 (b)			215		231,663
Doric Nimrod Air Finance Alpha Ltd., Series 2012-1 (b):
Class A, 5.13%, 11/30/24			260		279,500
Class B 6.50%, 5/30/21			250		264,289
					775,452
Corporate Bonds		Par (000)		Value
Transportation Infrastructure — 0.2%
Aguila 3 SA, 7.88%, 1/31/18 (b)	USD		198	$	209,880
Wireless Telecommunication Services — 4.8%
Cricket Communications, Inc., 7.75%, 10/15/20			261		266,220
Crown Castle International Corp., 5.25%, 1/15/23 (b)			469		480,725
Digicel Group Ltd. (b):
8.25%, 9/01/17			565		596,075
8.25%, 9/30/20			245		261,293
Digicel, Ltd., 6.00%, 4/15/21 (b)(e)			545		543,637
MetroPCS Wireless, Inc., 6.63%, 11/15/20			309		323,291
NII Capital Corp., 7.63%, 4/01/21			152		106,400
Phones4u Finance Plc, 9.50%, 4/01/18 (b)	GBP		130		203,626
Sprint Capital Corp., 6.88%, 11/15/28	USD		718		725,180
Sprint Nextel Corp. (b):
9.00%, 11/15/18			2,001		2,481,240
7.00%, 3/01/20			90		105,300
					6,092,987
Total Corporate Bonds — 105.1%					133,398,490
Floating Rate Loan Interests (g)
Airlines — 1.2%
Delta Air Lines, Inc., Term Loan B, 4.50%, 4/20/17			212		213,426
Northwest Airlines, Inc.:
Term Loan, 2.32%, 3/10/17			309		287,679
Term Loan, 2.32%, 3/10/17			560		521,360
Term Loan, 1.70%, 9/10/18			254		226,771
Term Loan, 1.70%, 9/10/18			252		224,986
					1,474,222
Auto Components — 1.0%
Federal-Mogul Corp.:
Term Loan B, 2.14%, 12/29/14			720		670,319
Term Loan C, 2.14%, 12/28/15			352		327,049
Schaeffler AG, Term Loan B2, 6.00%, 1/27/17			225		224,944
					1,222,312
Building Products — 0.1%
Wilsonart International Holdings LLC, Term Loan B, 5.50%, 10/31/19			185		186,942
Capital Markets — 0.6%
American Capital Holdings, Inc., Term Loan, 5.50%, 8/22/16			411		415,110
Nuveen Investments, Inc.:
Incremental Term Loan, 7.25%, 5/13/17			215		216,075
Second Lien Term Loan, 8.25%, 2/28/19			185		188,700
					819,885
Chemicals — 0.4%
INEOS US Finance LLC, 6 Year Term Loan, 6.50%, 5/04/18			171		174,999
US Coatings Acquisition, Inc., Term Loan, 4.75%, 2/03/20			305		308,703
					483,702
Commercial Services & Supplies — 0.4%
AWAS Finance Luxembourg Sarl, Term Loan B, 5.25%, 6/10/16			195		196,326
Delos Aircraft, Inc., Term Loan 2, 4.75%, 4/12/16			325		326,895
					523,221
Communications Equipment — 1.4%
Alcatel-Lucent, Term Loan C, 7.25%, 1/31/19			955		965,505
Avaya, Inc., Term Loan B5, 8.00%, 3/30/18			57		57,199
Zayo Group LLC, Refinancing Term Loan B, 5.25%, 7/12/19			807		809,295
					1,831,999

See Notes to Financial Statements.

68 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

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

Floating Rate Loan Interests (g)		Par (000)		Value
Construction Materials — 0.4%
HD Supply, Inc., Senior Debt B, 4.50%, 10/12/17	USD		493	$	493,835
Consumer Finance — 1.4%
Springleaf Financial Funding Co., Term Loan, 5.50%, 5/10/17			1,772		1,778,273
Diversified Consumer Services — 0.2%
Laureate Education, Inc., Extended Term Loan, 5.25%, 6/18/18			64		64,687
ServiceMaster Co., New Term Loan, 2.70%, 4/01/17			200		199,321
					264,008
Diversified Telecommunication Services — 1.2%
Hawaiian Telcom Communications, Inc., Term Loan B, 7.00%, 2/28/17			404		411,562
Level 3 Financing, Inc.:
2016 Term Loan B, 4.75%, 2/01/16			150		151,309
2019 Term Loan B, 5.25%, 8/01/19			120		121,225
Term Loan, 4.75%, 8/01/19			800		806,400
					1,490,496
Energy Equipment & Services — 1.7%
Dynegy Midwest Generation LLC, CoalCo. Term Loan, 9.25%, 8/04/16			777		802,362
Dynegy Power LLC, GasCo. Term Loan, 9.25%, 8/04/16			1,255		1,304,710
Tervita Corp., Incremental Term Loan, 3.20%, 5/01/18			60		60,309
					2,167,381
Food & Staples Retailing — 0.0%
Rite Aid Corp., Second Lien Term Loan, 5.75%, 7/07/20			45		46,025
Food Products — 0.1%
AdvancePierre Foods, Inc., Term Loan, 5.75%, 7/10/17			95		96,158
Health Care Equipment & Supplies — 0.5%
Bausch & Lomb, Inc., Term Loan B, 5.25%, 5/17/19			174		175,310
Capital Safety North America, Term Loan, 4.50%, 1/21/19			347		347,375
LHP Hospital Group, Inc., Term Loan, 9.00%, 7/03/18			124		127,173
					649,858
Health Care Providers & Services — 0.5%
Genesis HealthCare Corp., Term Loan B, 10.00%—10.75%, 9/25/17			85		82,980
Harden Healthcare LLC:
Add on Term Loan A, 7.75%, 3/02/15			206		201,397
Term Loan A, 8.50%, 3/02/15			154		152,205
inVentiv Health, Inc., Combined Term Loan, 7.50%, 8/04/16			166		163,019
					599,601
Hotels, Restaurants & Leisure — 3.1%
Caesars Entertainment Operating Co., Inc.:
Term Loan B1, 3.20%, 1/28/15			214		213,334
Term Loan B3, 3.20%—3.31%, 1/28/15			13		13,175
Harrah’s Property Co., Mezzanine Term Loan, 3.69%, 2/13/14			2,355		2,166,600
MGM Resorts International, Term Loan B, 4.25%, 12/20/19			540		546,210
Station Casinos, Inc.:
Term Loan B, 5.50%, 9/27/19			454		456,508
Term Loan B, 5.00%, 2/13/20			440		443,667
Floating Rate Loan Interests (g)		Par (000)		Value
Hotels, Restaurants & Leisure (concluded)
Travelport Holdings Ltd.:
Extended Tranche A Term Loan, 6.40%, 12/01/16	USD		91	$	32,104
Extended Tranche B Term Loan, 13.80%, 12/01/16			304		28,386
					3,899,984
Industrial Conglomerates — 0.2%
Sequa Corp., Term Loan B, 5.25%, 6/19/17			254		256,448
Insurance — 0.1%
Alliant Holdings I, Inc., Term Loan B, 5.00%, 12/20/19			145		146,088
IT Services — 0.3%
First Data Corp., Extended 2018 Term Loan B, 4.20%, 3/23/18			355		350,527
Leisure Equipment & Products — 0.1%
Eastman Kodak Co., DIP Term Loan B, 8.50%, 7/19/13			108		107,612
Life Sciences Tools & Services — 0.1%
Patheon, Inc., Term Loan, 7.25%, 12/06/18			90		90,785
Machinery — 0.7%
Rexnord Corp., Term Loan B, 4.50%, 4/02/18			262		263,992
Silver II US Holdings LLC, Term Loan, 4.75%, 12/05/19			685		685,000
					948,992
Media — 4.1%
Cengage Learning Acquisitions, Inc.:
Non-Extended Term Loan, 2.71%, 7/03/14			139		108,406
Tranche 1 Incremental, 7.50%, 7/03/14			691		549,544
Cequel Communications LLC, Term Loan B, 4.00%, 2/14/19			124		124,307
Clear Channel Communications, Inc.:
Term Loan B, 3.85%, 1/29/16			599		512,255
Term Loan C, 3.85%, 1/29/16			178		150,332
EMI Music Publishing Ltd., Term Loan B, 5.50%, 6/29/18			194		196,111
Getty Images, Inc., Term Loan B, 4.75%, 10/18/19			180		181,019
Intelsat Jackson Holdings SA, Term Loan B1, 4.50%, 4/02/18			2,748		2,773,918
Interactive Data Corp., Term Loan B, 3.75%, 2/11/18			185		184,796
Univision Communications, Inc., Extended Term Loan, 4.45%, 3/31/17			120		120,031
Virgin Media Investment Holdings, Term Loan B, 3.50%, 2/17/20			320		318,089
					5,218,808
Metals & Mining — 0.9%
Constellium Holdco BV, Term Loan B, 9.25%, 5/25/18			189		192,831
FMG America Finance, Inc., Term Loan, 5.25%, 10/18/17			938		948,883
					1,141,714
Oil, Gas & Consumable Fuels — 1.5%
Chesapeake Energy Corp., Unsecured Term Loan, 5.75%, 12/01/17			975		995,212
Obsidian Natural Gas Trust, Term Loan, 7.00%, 11/02/15			396		400,026
Samson Investment Co., Second Lien Term Loan, 6.00%, 9/25/18			100		100,938
Vantage Drilling Co., Term Loan, 6.25%, 10/26/17			425		426,748
					1,922,924

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 69

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

Floating Rate Loan Interests (g)		Par (000)		Value
Pharmaceuticals — 0.4%
Par Pharmaceutical, Term Loan B, 5.00%, 9/28/19	USD		319	$	318,801
Pharmaceutical Product Development, Inc., Term Loan B, 4.25%, 12/05/18			138		139,256
					458,057
Professional Services — 0.1%
Truven Health Analytics, Inc., Term Loan B, 5.75%, 6/01/19			164		165,715
Real Estate Investment Trusts (REITs) — 0.3%
iStar Financial, Inc., Term Loan, 4.50%, 9/28/17			332		331,908
Real Estate Management & Development — 0.2%
Realogy Corp.:
Extended Letter of Credit, Loan, 4.46%, 10/10/16			29		28,913
Extended Term Loan, 4.42%, 10/10/16			245		245,263
					274,176
Road & Rail — 0.1%
Genesee & Wyoming, Inc., Term Loan A, 2.70%, 9/29/17			125		124,538
Semiconductors & Semiconductor Equipment — 0.1%
Freescale Semiconductor, Inc., Extended Term Loan B, 4.45%, 12/01/16			130		130,000
Software — 0.6%
GCA Services Group, Inc., Second Lien Term Loan, 9.25%, 10/22/20			25		24,750
Infor US, Inc., Term Loan B2, 5.25%, 4/05/18			542		548,151
Kronos, Inc., Second Lien Term Loan, 9.75%, 4/30/20			225		234,000
					806,901
Specialty Retail — 0.2%
David’s Bridal, Inc., Term Loan B, 5.00%, 10/11/19			235		237,409
Textiles, Apparel & Luxury Goods — 0.5%
Ascend Performance Materials LLC, Term Loan B, 6.75%, 4/10/18			506		511,237
PVH Corp., Term Loan B, 3.25%, 12/19/19			190		191,524
					702,761
Thrifts & Mortgage Finance — 0.2%
Ocwen Financial Corp., Term Loan, 5.00%, 1/22/18			260		263,142
Wireless Telecommunication Services — 1.2%
Vodafone Americas Finance 2, Inc.: (f)
Term Loan, 6.88%, 8/11/15			831		847,258
Term Loan B, 6.25%, 7/11/16			619		635,766
					1,483,024
Total Floating Rate Loan Interests — 26.1%					33,189,431
Preferred Securities		Shares		Value
Preferred Stocks
Auto Components — 0.7%
Dana Holding Corp., 4.00% (b)(c)			6,200	$	879,625
Diversified Financial Services — 0.8%
Ally Financial, Inc., 7.00% (b)			1,100		1,070,266
Media — 0.1%
Emmis Communications Corp., Series A, 6.25%			10,300		94,142
Real Estate Investment Trusts (REITs) — 0.1%
MPG Office Trust, Inc., Series A, 7.63% (a)			4,171		94,890
Thrifts & Mortgage Finance — 0.0%
Fannie Mae, Series O, 7.00% (a)(g)			10,000		38,500
Total Preferred Stocks — 1.7%					2,177,423
Trust Preferreds
Diversified Financial Services — 1.2%
GMAC Capital Trust I, Series 2, 8.13%, 2/15/40 (g)			56,340		1,490,178
Total Preferred Securities — 2.9%					3,667,601
Warrants (i)
Software — 0.0%
Bankruptcy Management Solutions, Inc. (Expires 9/28/17)			167		—
HMH Holdings/EduMedia (Issued/Exercisable 3/09/10, 19 Shares for 1 Warrant, Expires 6/22/19, Strike Price $42.27)			513		—
					—
Total Warrants — 0.0%					—
Total Long-Term Investments (Cost — $167,334,601) — 135.3%					171,735,959
Short-Term Securities
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.10% (j)(k)			2,757,840		2,757,840
Total Short-Term Securities (Cost — $2,757,840) — 2.2%					2,757,840
Total Investments (Cost—$170,092,441) — 137.5%					174,493,799
Liabilities in Excess of Other Assets — (37.5)%					(47,614,696	)
Net Assets — 100.0%				$	126,879,103

Notes to Schedule of Investments

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

Counterparty	Value		Unrealized Appreciation (Depreciation)
Citigroup Global Markets	$	543,637	$	(1,363	)
Goldman Sachs & Co	$	193,802	$	(1,354	)
Pershing LLC	$	287,640	$	3,824

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

See Notes to Financial Statements.

70 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

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

(g)	Variable rate security. Rate shown is as of report date.
(h)	Issuer filed for bankruptcy and/or is in default of principal and/or interest payments.
(i)	Warrants entitle the Trust to purchase a predetermined number of shares of common stock and are non-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the until the expiration date of the warrants, if any.
(j)	Investments in issuers considered to be an affiliate of the Trust 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		Realized Gain
BlackRock Liquidity Funds, TempFund, Institutional Class		—		2,757,840		2,757,840	$	402	$	33

(k)	Represents the current yield as of report date.
•	For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Trust management. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.
•	Financial futures contracts as of February 28, 2013 were as follows:

Contracts Sold	Issue	Exchange	Expiration	Notional Value		Unrealized  Depreciation
(25)	S&P 500 E-Mini Index	Chicago Mercantile	March 2013	USD	1,891,625	$ (38,018)

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

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
USD	897,075	GBP	560,000	Goldman Sachs Group, Inc.	4/17/13	$	47,728
EUR	100,000	USD	134,940	Citigroup, Inc.	4/23/13		(4,339	)
EUR	120,000	USD	160,434	Credit Suisse Group AG	4/23/13		(3,711	)
USD	4,571,808	EUR	3,431,000	Citigroup, Inc.	4/23/13		90,855
Total						$	130,533

• 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 Trust 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 Trust’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 Trust’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 Trust’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 71

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

The following tables summarize the Trust’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:
Common Stocks		—	$	172,491	$	1,307,946	$	1,480,437
Corporate Bonds		—		132,121,215		1,277,275		133,398,490
Floating Rate Loan Interests		—		27,496,800		5,692,631		33,189,431
Preferred Securities	$	2,787,976		879,625		—		3,667,601
Short-Term Securities		2,757,840		—		—		2,757,840
Total	$	5,545,816	$	160,670,131	$	8,277,852	$	174,493,799

	Level 1			Level 2			Level 3		Total
Derivative Financial Instruments1
Assets:
Foreign currency exchange contracts		—		$	138,583			—	$	138,583
Liabilities:
Foreign currency exchange contracts		—			(8,050	)		—		(8,050	)
Equity contracts	$	(38,018	)		—			—		(38,018	)
Total	$	(38,018	)	$	130,533			—	$	92,515

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

Certain of the Trust’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	$	31,721		—			—	$	31,721
Cash pledged as collateral for financial futures contracts		122,000		—			—		122,000
Liabilities:
Loan payable		—	$	(44,000,000	)		—		(44,000,000	)
Total	$	153,721	$	(44,000,000	)		—	$	(43,846,279	)

As of August 31, 2012, the Trust used observable inputs in determining the value of certain equity securities. As of February 28, 2013, the Trust valued the same securities using unadjusted price quotations from an exchange. As a result, investments with a beginning of period value of $1,778,390 transferred from Level 2 to Level 1 in the disclosure hierarchy.

A reconciliation of Level 3 investments is presented when the Trust 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:

	Common Stocks		Corporate Bonds			Floating Rate Loan Interests			Total
Assets:
Opening Balance, as of August 31, 2012	$	663,716	$	1,655,876		$	4,877,951		$	7,197,543
Transfers into Level 32		4,560		674,112			714,628			1,393,300
Transfers out of Level 33		—		—			(889,422	)		(889,422	)
Accrued discounts/premiums		—		—			—			—
Net realized gain (loss)		—		3,696			(1,498	)		2,198
Net change in unrealized appreciation/depreciation4		418,263		(678,693	)		261,564			1,134
Purchases		221,407		824,749			2,189,481			3,235,637
Sales		—		(1,202,465	)		(1,460,073	)		(2,662,538	)
Closing Balance, as of February 28, 2013	$	1,307,946	$	1,277,275		$	5,692,631		$	8,277,852

² As of August 31, 2012, the Trust used observable inputs in determining the value of certain investments. As of February 28, 2013, the Trust used significant unobservable inputs in determining the value of the same investments. As a result, investments with a beginning of period value of $1,393,300 transferred from Level 2 to Level 3 in the disclosure hierarchy.

³ As of August 31, 2012, the Trust used significant unobservable inputs in determining the value of certain investments. As of February 28, 2013, the Trust used observable inputs in determining the value of the same investments. As a result, investments with a beginning of period value of $889,422 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 $390,756.

See Notes to Financial Statements.

72 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

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

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 Trust’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 $5,912,283.

	Value		Valuation Techniques	Unobservable Inputs1	Range of Unobservable Inputs Utilized
Assets:
Common Stocks	$	864,928	Market Comparable Companies	EBITDA Multiple	6.56x
		104,364	Restructure Terms2	N/A	—
Corporate Bonds		714	Estimated Final Distribution	Recovery Rate	0.05%
		519,961	Market Comparable Companies	Yield	12.10%
		522,000	Cost3	N/A	—
Floating Rate Loan Interests		353,602	Discounted Cash Flow	Yield	9.50%
Total	$	2,365,569

¹ 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
Recovery Rate	Increase	Decrease
Yield	Decrease	Increase

² Investment is valued based on the company’s financial restructuring plan.

³ The Trust 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 Trust.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 73

Schedule of Investments February 28, 2013 (Unaudited) BlackRock High Yield Trust (BHY)
(Percentages shown are based on Net Assets)

Common Stocks		Shares			Value
Auto Components — 0.5%
Dana Holding Corp.			10,286		$	172,085
Delphi Automotive Plc (a)			1,500			62,290
						234,375
Biotechnology — 0.0%
Ironwood Pharmaceuticals, Inc. (a)			1,210			18,065
Capital Markets — 1.4%
American Capital Ltd. (a)			46,052			643,807
E*Trade Financial Corp. (a)			4,900			52,479
						696,286
Chemicals — 0.4%
ADA-ES, Inc. (a)			300			7,971
CF Industries Holdings, Inc.			500			100,415
Huntsman Corp.			5,600			96,488
						204,874
Commercial Banks — 0.5%
CIT Group, Inc. (a)			5,216			218,342
Diversified Financial Services — 0.1%
Bank of America Corp.			4,000			44,920
Diversified Telecommunication Services — 0.3%
Broadview Networks Holdings, Inc. (a)			6,337			42,394
Level 3 Communications, Inc. (a)			4,300			85,914
						128,308
Hotels, Restaurants & Leisure — 0.2%
Caesars Entertainment Corp. (a)			6,704			83,800
Travelport LLC (a)			12,460			125
						83,925
Insurance — 0.9%
American International Group, Inc. (a)			11,116			422,519
Media — 0.8%
Charter Communications, Inc., Class A (a)			4,631			400,072
Oil, Gas & Consumable Fuels — 0.0%
African Petroleum Corp. Ltd. (a)			17,200			3,338
Paper & Forest Products — 0.3%
Ainsworth Lumber Co. Ltd. (a)			8,875			28,142
Ainsworth Lumber Co. Ltd. (a)(b)			2,507			7,925
NewPage Corp. (a)			1,460			124,100
						160,167
Semiconductors & Semiconductor Equipment — 0.1%
Freescale Semiconductor Ltd. (a)			747			11,526
NXP Semiconductors NV (a)			1,568			50,678
						62,204
Software — 0.1%
Bankruptcy Management Solutions, Inc. (a)			91			1
HMH Holdings/EduMedia (a)			3,231			59,237
						59,238
Total Common Stocks — 5.6%						2,736,633
Corporate Bonds			Par (000	)
Aerospace & Defense — 0.9%
Bombardier, Inc., 4.25%, 1/15/16 (b)	USD		100			103,750
Huntington Ingalls Industries, Inc., 6.88%, 3/15/18			110			119,831
Kratos Defense & Security Solutions, Inc., 10.00%, 6/01/17			210			231,788
						455,369
Air Freight & Logistics — 0.4%
National Air Cargo Group, Inc.:
Series 1, 12.38%, 9/02/15			92			92,274
Series 2, 12.38%, 10/08/15			93			93,427
						185,701

Corporate Bonds			Par (000)		Value
Airlines — 1.6%
American Airlines Pass-Through Trust, Series 2011-2, Class A, 8.63%, 4/15/23		USD		185	$	192,614
Continental Airlines Pass-Through Trust:
Series 2010-1, Class B 6.00%, 7/12/20				82		84,035
Series 2012-3, Class C 6.13%, 4/29/18				155		154,613
Delta Air Lines Pass-Through Trust, Series 2002-1, Class G-1, 6.72%, 7/02/24				100		110,212
US Airways Pass-Through Trust:
Series 2011-1, Class C 10.88%, 10/22/14				90		95,226
Series 2012-1, Class C 9.13%, 10/01/15				74		79,180
Series 2012-2, Class B 6.75%, 12/03/22				60		62,700
						778,580
Auto Components — 2.4%
Dana Holding Corp., 6.75%, 2/15/21				180		195,975
Delphi Corp.:
6.13%, 5/15/21				15		16,350
5.00%, 2/15/23				25		26,031
Icahn Enterprises LP, 8.00%, 1/15/18				650		696,312
IDQ Holdings, Inc., 11.50%, 4/01/17 (b)				85		93,075
Jaguar Land Rover Automotive Plc (FKA Jaguar Land Rover Plc), 8.25%, 3/15/20		GBP		100		170,092
						1,197,835
Beverages — 0.3%
Crown European Holdings SA, 7.13%, 8/15/18		EUR		92		130,020
Building Products — 0.8%
Building Materials Corp. of America (b):
7.00%, 2/15/20		USD		20		21,650
6.75%, 5/01/21				160		171,800
Momentive Performance Materials, Inc., 8.88%, 10/15/20				60		61,575
USG Corp., 9.75%, 1/15/18	��			115		135,269
						390,294
Capital Markets — 0.5%
E*Trade Financial Corp., Series A, 0.00%, 8/31/19 (c)(d)				71		74,239
KKR Group Finance Co. LLC, 6.38%, 9/29/20 (b)				85		99,958
Nuveen Investments, Inc., 9.13%, 10/15/17 (b)				47		47,235
						221,432
Chemicals — 3.7%
Axiall Corp., 4.88%, 5/15/23 (b)				29		29,435
Basell Finance Co. BV, 8.10%, 3/15/27 (b)				60		79,200
Celanese US Holdings LLC, 5.88%, 6/15/21				234		255,645
Eagle Spinco, Inc., 4.63%, 2/15/21 (b)				64		65,040
Huntsman International LLC, 8.63%, 3/15/21				25		28,250
INEOS Finance Plc (b):
8.38%, 2/15/19				100		109,500
7.50%, 5/01/20				75		80,812
Kraton Polymers LLC, 6.75%, 3/01/19				20		20,800
LyondellBasell Industries NV, 5.75%, 4/15/24				485		563,812
Nexeo Solutions LLC, 8.38%, 3/01/18				15		14,663
Nufarm Australia Ltd., 6.38%, 10/15/19 (b)				35		37,100
Orion Engineered Carbons Bondco GmbH, 9.63%, 6/15/18 (b)				200		220,000
PolyOne Corp., 7.38%, 9/15/20				35		38,763
Rockwood Specialties Group, Inc., 4.63%, 10/15/20				125		129,375
Tronox Finance LLC, 6.38%, 8/15/20 (b)				158		157,012
						1,829,407
Commercial Banks — 0.9%
CIT Group, Inc.:
5.25%, 3/15/18				130		139,750
6.63%, 4/01/18 (b)				50		56,750
5.50%, 2/15/19 (b)				80		87,000
5.00%, 8/15/22				70		74,900
6.00%, 4/01/36				90		88,167
						446,567

See Notes to Financial Statements.

74 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

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

Corporate Bonds		Par (000)		Value
Commercial Services & Supplies — 2.5%
ADS Waste Holdings, Inc., 8.25%, 10/01/20 (b)	USD		46	$	49,450
ARAMARK Holdings Corp. (b):
8.63%, 5/01/16 (e)			70		71,401
5.75%, 3/15/20 (f)			108		110,160
Aviation Capital Group Corp., 6.75%, 4/06/21 (b)			92		99,576
AWAS Aviation Capital Ltd., 7.00%, 10/17/16 (b)			162		169,680
Brickman Group Holdings, Inc., 9.13%, 11/01/18 (b)			7		7,525
Catalent Pharma Solutions, Inc., 7.88%, 10/15/18 (b)			101		102,262
Clean Harbors, Inc., 5.25%, 8/01/20			88		90,640
Covanta Holding Corp., 6.38%, 10/01/22			135		146,385
HDTFS, Inc. (b):
5.88%, 10/15/20			10		10,400
6.25%, 10/15/22			45		48,375
Mead Products LLC/ACCO Brands Corp., 6.75%, 4/30/20 (b)			14		14,823
Mobile Mini, Inc., 7.88%, 12/01/20			60		66,750
RSC Equipment Rental, Inc., 8.25%, 2/01/21			77		87,299
Verisure Holding AB, 8.75%, 9/01/18	EUR		100		140,999
West Corp., 8.63%, 10/01/18	USD		25		26,625
					1,242,350
Communications Equipment — 1.0%
Alcatel-Lucent USA, Inc.:
6.50%, 1/15/28			10		7,700
6.45%, 3/15/29			32		24,880
Avaya, Inc., 9.75%, 11/01/15			34		33,448
Zayo Group LLC/Zayo Capital, Inc.:
8.13%, 1/01/20			155		173,212
10.13%, 7/01/20			220		257,950
					497,190
Computers & Peripherals — 0.2%
EMC Corp., Series B, 1.75%, 12/01/13 (d)			31		44,834
SanDisk Corp., 1.50%, 8/15/17 (d)			50		61,562
					106,396
Construction & Engineering — 0.3%
Boart Longyear Management Property Ltd., 7.00%, 4/01/21 (b)			35		36,313
H&E Equipment Services, Inc., 7.00%, 9/01/22 (b)			79		86,505
Weekley Homes LLC, 6.00%, 2/01/23 (b)			26		26,520
					149,338
Construction Materials — 2.2%
HD Supply, Inc. (b):
8.13%, 4/15/19			215		242,144
11.00%, 4/15/20			215		259,075
7.50%, 7/15/20			336		336,420
11.50%, 7/15/20			85		97,963
Xefin Lux SCA, 8.00%, 6/01/18	EUR		100		140,183
					1,075,785
Consumer Finance — 1.5%
Credit Acceptance Corp., 9.13%, 2/01/17	USD		80		87,200
Ford Motor Credit Co. LLC:
12.00%, 5/15/15			120		145,650
6.63%, 8/15/17			230		268,594
5.88%, 8/02/21			200		228,108
					729,552
Containers & Packaging — 1.6%
Ardagh Packaging Finance Plc (b):
9.13%, 10/15/20			200		218,000
7.00%, 11/15/20			200		200,500
Berry Plastics Corp.:
4.18%, 9/15/14 (g)			50		50,000
8.25%, 11/15/15			20		20,844
9.75%, 1/15/21			30		34,650
Corporate Bonds		Par (000)		Value
Containers & Packaging (concluded)
Crown Americas LLC/Crown Americas Capital Corp. III, 6.25%, 2/01/21	USD		2	$	2,180
Crown Americas LLC/Crown Americas Capital Corp. IV, 4.50%, 1/15/23 (b)			20		19,550
Graphic Packaging International, Inc., 7.88%, 10/01/18			60		66,000
Pactiv LLC, 7.95%, 12/15/25			68		63,750
Tekni-Plex, Inc., 9.75%, 6/01/19 (b)			92		101,660
					777,134
Distributors — 0.5%
VWR Funding, Inc., 7.25%, 9/15/17 (b)			229		241,023
Diversified Consumer Services — 1.1%
313 Group, Inc. (b):
6.38%, 12/01/19			165		160,875
8.75%, 12/01/20			98		96,775
Laureate Education, Inc., 9.25%, 9/01/19 (b)			205		222,937
ServiceMaster Co., 8.00%, 2/15/20			35		37,100
					517,687
Diversified Financial Services — 5.1%
Air Lease Corp., 4.50%, 1/15/16			100		102,250
Aircastle Ltd., 6.25%, 12/01/19			53		57,108
Aircastle, Ltd., 6.75%, 4/15/17			55		60,638
Ally Financial, Inc., 8.00%, 11/01/31			672		844,200
CNG Holdings, Inc., 9.38%, 5/15/20 (b)			80		78,900
DPL, Inc.:
6.50%, 10/15/16			52		54,600
7.25%, 10/15/21			143		153,367
Leucadia National Corp., 8.13%, 9/15/15			140		158,200
Reynolds Group Issuer, Inc.:
9.00%, 4/15/19			100		106,000
9.88%, 8/15/19			175		191,625
5.75%, 10/15/20			390		402,675
6.88%, 2/15/21			115		122,762
WMG Acquisition Corp.:
11.50%, 10/01/18			72		83,610
6.00%, 1/15/21 (b)			54		55,890
					2,471,825
Diversified Telecommunication Services — 2.2%
Broadview Networks Holdings, Inc., 10.50%, 11/15/17			98		95,306
Cequel Communications Escrow I LLC/Cequel Communications Escrow Capital Corp., 6.38%, 9/15/20 (b)			75		77,531
Consolidated Communications Finance Co., 10.88%, 6/01/20 (b)			55		62,288
Level 3 Communications, Inc., 8.88%, 6/01/19 (b)			55		59,400
Level 3 Financing, Inc.:
8.13%, 7/01/19			355		386,950
7.00%, 6/01/20 (b)			75		78,750
8.63%, 7/15/20			140		155,400
tw telecom Holdings, Inc., 5.38%, 10/01/22			50		52,125
Windstream Corp.:
8.13%, 8/01/13			25		25,655
7.88%, 11/01/17			70		79,275
7.50%, 4/01/23			13		13,585
6.38%, 8/01/23 (b)			12		11,760
					1,098,025
Electric Utilities — 0.2%
Mirant Mid Atlantic Pass-Through Trust, Series B, 9.13%, 6/30/17			84		93,291
Electrical Equipment — 0.3%
Belden, Inc., 5.50%, 9/01/22 (b)			60		61,500
General Cable Corp., 5.75%, 10/01/22 (b)			100		102,500
					164,000

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 75

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

Corporate Bonds		Par (000)		Value
Electronic Equipment, Instruments & Components — 0.1%
Jabil Circuit, Inc., 8.25%, 3/15/18	USD		40	$	48,100
Energy Equipment & Services — 4.1%
Atwood Oceanics, Inc., 6.50%, 2/01/20			25		27,187
Calfrac Holdings LP, 7.50%, 12/01/20 (b)			55		55,275
Compagnie Générale de Géophysique, Veritas:
7.75%, 5/15/17			65		67,031
6.50%, 6/01/21			200		208,000
FTS International Services LLC/FTS International Bonds, Inc., 8.13%, 11/15/18 (b)			196		202,860
Genesis Energy LP/Genesis Energy Finance Corp., 5.75%, 2/15/21 (b)			28		28,980
Gulfmark Offshore, Inc., 6.38%, 3/15/22			25		25,813
Hornbeck Offshore Services, Inc., 5.88%, 4/01/20			50		52,500
MEG Energy Corp. (b):
6.50%, 3/15/21			230		242,650
6.38%, 1/30/23			60		62,100
Oil States International, Inc.:
6.50%, 6/01/19			50		53,500
5.13%, 1/15/23 (b)			20		20,000
Peabody Energy Corp.:
6.00%, 11/15/18			38		40,375
6.25%, 11/15/21			192		199,680
7.88%, 11/01/26			65		69,550
4.75%, 12/15/66 (d)			118		100,226
Precision Drilling Corp.:
6.63%, 11/15/20			10		10,625
6.50%, 12/15/21			45		47,700
Seadrill Ltd., 5.63%, 9/15/17 (b)			410		415,125
Tervita Corp., 8.00%, 11/15/18 (b)			61		62,830
					1,992,007
Food & Staples Retailing — 0.1%
Rite Aid Corp., 9.25%, 3/15/20			60		67,200
Food Products — 0.5%
Darling International, Inc., 8.50%, 12/15/18			20		22,750
Del Monte Corp., 7.63%, 2/15/19			9		9,338
Post Holdings, Inc., 7.38%, 2/15/22			110		118,800
Smithfield Foods, Inc., 6.63%, 8/15/22			82		89,175
					240,063
Health Care Equipment & Supplies — 2.8%
Biomet, Inc. (b):
6.50%, 8/01/20			296		313,020
6.50%, 10/01/20			383		394,490
DJO Finance LLC:
8.75%, 3/15/18			63		69,536
7.75%, 4/15/18			20		19,900
9.88%, 4/15/18			80		85,400
Fresenius Medical Care US Finance II, Inc., 5.63%, 7/31/19 (b)			204		220,830
Fresenius Medical Care US Finance, Inc., 5.75%, 2/15/21 (b)			50		54,500
Fresenius US Finance II, Inc., 9.00%, 7/15/15 (b)			80		91,800
Kinetic Concepts, Inc./KCI USA, Inc., 12.50%, 11/01/19 (b)			55		53,900
Teleflex, Inc., 6.88%, 6/01/19			50		54,375
					1,357,751
Health Care Providers & Services — 7.7%
Aviv Healthcare Properties LP, 7.75%, 2/15/19			95		101,887
CHS/Community Health Systems, Inc.:
5.13%, 8/15/18			140		147,175
7.13%, 7/15/20			75		80,812
Crown Newco 3 Plc, 7.00%, 2/15/18	GBP		100		156,635
DaVita HealthCare Partners, Inc., 5.75%, 8/15/22	USD		148		154,290
HCA Holdings, Inc., 6.25%, 2/15/21			183		193,065
Corporate Bonds		Par (000)		Value
Health Care Providers & Services (concluded)
HCA, Inc.:
8.50%, 4/15/19	USD		25	$	27,688
6.50%, 2/15/20			370		414,400
7.88%, 2/15/20			145		160,769
7.25%, 9/15/20			410		455,100
5.88%, 3/15/22			35		37,713
4.75%, 5/01/23			185		184,537
Hologic, Inc., 6.25%, 8/01/20 (b)			158		166,690
IASIS Healthcare LLC, 8.38%, 5/15/19			110		113,300
INC Research LLC, 11.50%, 7/15/19 (b)			59		62,983
inVentiv Health, Inc. (b):
9.00%, 1/15/18			100		104,250
11.00%, 8/15/18			5		4,338
Omnicare, Inc.:
7.75%, 6/01/20			160		177,600
3.75%, 4/01/42 (d)			27		28,148
Symbion, Inc., 8.00%, 6/15/16			55		57,475
Tenet Healthcare Corp.:
6.25%, 11/01/18			177		196,027
8.88%, 7/01/19			360		406,800
6.75%, 2/01/20			90		96,300
4.50%, 4/01/21 (b)			118		116,377
Vanguard Health Holding Co. II LLC:
8.00%, 2/01/18			40		42,600
7.75%, 2/01/19 (b)			75		80,344
					3,767,303
Health Care Technology — 1.1%
IMS Health, Inc. (b):
12.50%, 3/01/18			410		494,050
6.00%, 11/01/20			24		24,960
					519,010
Hotels, Restaurants & Leisure — 2.7%
Caesars Entertainment Operating Co., Inc.:
10.00%, 12/15/18			96		63,360
8.50%, 2/15/20			36		35,100
Caesars Operating Escrow LLC/Caesars Escrow Corp., 9.00%, 2/15/20 (b)			167		164,913
Diamond Resorts Corp., 12.00%, 8/15/18			200		220,000
El Dorado Resorts LLC, 8.63%, 6/15/19 (b)			25		24,844
MCE Finance Ltd., 5.00%, 2/15/21 (b)			200		200,000
MTR Gaming Group, Inc., 11.50%, 8/01/19 (e)			25		26,130
Regal Entertainment Group, 5.75%, 2/01/25			44		43,120
Six Flags Entertainment Corp., 5.25%, 1/15/21 (b)			100		98,000
Station Casinos LLC:
3.66%, 6/18/18			111		111,000
7.50%, 3/01/21 (b)(f)			194		195,212
Travelport LLC (g):
4.91%, 9/01/14			20		18,200
6.31%, 12/01/16 (b)(e)			70		63,640
Tropicana Entertainment LLC, 9.63%, 12/15/14 (a)(h)			25		—
Wynn Las Vegas LLC, 5.38%, 3/15/22			64		67,280
					1,330,799
Household Durables — 2.8%
Ashton Woods USA LLC/Ashton Woods Finance Corp., 6.88%, 2/15/21 (b)			38		38,190
Beazer Homes USA, Inc., 6.63%, 4/15/18			10		10,687
Brookfield Residential Properties, Inc., 6.50%, 12/15/20 (b)			70		74,200
Jarden Corp., 8.00%, 5/01/16			40		41,950
K. Hovnanian Enterprises, Inc., 7.25%, 10/15/20 (b)			160		176,000
Libbey Glass, Inc., 6.88%, 5/15/20			100		107,250
PH Holding LLC, 9.75%, 12/31/17			55		53,900
Pulte Group, Inc., 6.38%, 5/15/33			30		30,450
The Ryland Group, Inc., 6.63%, 5/01/20			60		66,000

See Notes to Financial Statements.

76 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

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

Corporate Bonds		Par (000)		Value
Household Durables (concluded)
Spie BondCo 3 SCA, 11.00%, 8/15/19	EUR		100	$	145,569
Standard Pacific Corp.:
10.75%, 9/15/16	USD		300		373,500
8.38%, 1/15/21			170		201,875
United Rentals North America, Inc., 5.75%, 7/15/18			43		46,279
					1,365,850
Household Products — 0.9%
Ontex IV SA, 7.50%, 4/15/18 (b)	EUR		100		135,777
Spectrum Brands Escrow Corp. (b):
6.38%, 11/15/20	USD		63		67,016
6.63%, 11/15/22			40		43,100
Spectrum Brands, Inc.:
9.50%, 6/15/18			160		181,400
6.75%, 3/15/20 (b)			17		18,318
					445,611
Independent Power Producers & Energy Traders — 3.9%
The AES Corp., 7.38%, 7/01/21			45		50,850
Calpine Corp. (b):
7.25%, 10/15/17			27		28,721
7.50%, 2/15/21			13		14,138
7.88%, 1/15/23			63		69,773
Energy Future Intermediate Holding Co. LLC:
6.88%, 8/15/17 (b)			125		131,875
10.00%, 12/01/20 (b)			265		298,787
10.00%, 12/01/20			508		576,580
GenOn REMA LLC, Series B, 9.24%, 7/02/17			70		77,191
Laredo Petroleum, Inc.:
9.50%, 2/15/19			90		101,700
7.38%, 5/01/22			60		65,100
NRG Energy, Inc.:
7.63%, 1/15/18			253		290,001
6.63%, 3/15/23 (b)			105		111,825
QEP Resources, Inc.:
5.38%, 10/01/22			56		58,660
5.25%, 5/01/23			40		41,400
					1,916,601
Industrial Conglomerates — 0.2%
Sequa Corp., 7.00%, 12/15/17 (b)			100		100,750
Insurance — 0.5%
A-S Co-Issuer Subsidiary, Inc./A-S Merger Sub LLC, 7.88%, 12/15/20 (b)			186		186,930
CNO Financial Group, Inc., 6.38%, 10/01/20 (b)			37		39,220
MPL 2 Acquisition Canco, Inc., 9.88%, 8/15/18 (b)			40		39,600
					265,750
Internet Software & Services — 0.1%
Equinix, Inc., 5.00%, 2/29/20			25		25,000
IT Services — 3.5%
Ceridian Corp., 8.88%, 7/15/19 (b)			210		236,775
Epicor Software Corp., 8.63%, 5/01/19			87		93,743
First Data Corp.:
7.38%, 6/15/19 (b)			265		278,581
8.88%, 8/15/20 (b)			90		99,450
6.75%, 11/01/20 (b)			326		334,557
8.25%, 1/15/21 (b)			20		20,450
11.25%, 1/15/21 (b)			82		83,640
12.63%, 1/15/21			181		192,991
SunGard Data Systems, Inc.:
7.38%, 11/15/18			150		161,062
6.63%, 11/01/19 (b)			130		133,575
WEX, Inc., 4.75%, 2/01/23 (b)			81		78,368
					1,713,192
Machinery — 1.7%
Dematic SA, 7.75%, 12/15/20 (b)			15		15,338
The Manitowoc Co., Inc., 5.88%, 10/15/22			80		82,000
SPX Corp., 6.88%, 9/01/17			30		33,525
Corporate Bonds		Par (000)		Value
Machinery (concluded)
Terex Corp., 6.00%, 5/15/21	USD		75	$	77,812
Trinseo Materials Operating SCA, 8.75%, 2/01/19 (b)			67		66,749
UR Merger Sub Corp.:
7.38%, 5/15/20			75		82,125
7.63%, 4/15/22			421		466,257
6.13%, 6/15/23			30		31,500
					855,306
Media — 9.2%
Affinion Group, Inc., 7.88%, 12/15/18			63		47,880
AMC Networks, Inc.:
7.75%, 7/15/21			40		45,400
4.75%, 12/15/22			59		58,779
Cablevision Systems Corp., 5.88%, 9/15/22			95		92,150
CCO Holdings LLC:
5.25%, 9/30/22			140		137,725
5.13%, 2/15/23			100		97,500
Cengage Learning Acquisitions, Inc., 11.50%, 4/15/20 (b)			99		78,210
Checkout Holding Corp., 11.47%, 11/15/15 (b)(c)			71		52,451
Cinemark USA, Inc.:
8.63%, 6/15/19			35		38,806
5.13%, 12/15/22 (b)			36		36,180
Clear Channel Communications, Inc.:
9.00%, 12/15/19 (b)(f)			85		79,050
9.00%, 3/01/21			76		68,780
Clear Channel Worldwide Holdings, Inc.:
6.50%, 11/15/22 (b)			102		106,590
6.50%, 11/15/22 (b)			277		291,542
Series B, 7.63%, 3/15/20			187		193,545
DISH DBS Corp.:
5.88%, 7/15/22			250		263,750
5.00%, 3/15/23 (b)			110		109,175
Harron Communications LP, 9.13%, 4/01/20 (b)			60		66,000
Intelsat Jackson Holdings SA:
7.25%, 10/15/20			110		117,975
6.63%, 12/15/22 (b)			27		27,203
Intelsat Luxembourg SA:
11.25%, 2/04/17			210		223,125
11.50%, 2/04/17			325		346,102
Interactive Data Corp., 10.25%, 8/01/18			220		249,425
The Interpublic Group of Cos., Inc., 10.00%, 7/15/17			55		59,331
Live Nation Entertainment, Inc., 8.13%, 5/15/18 (b)			125		135,625
The McClatchy Co., 9.00%, 12/15/22 (b)			70		74,025
NAI Entertainment Holdings LLC, 8.25%, 12/15/17 (b)			94		102,460
The New York Times Co., 6.63%, 12/15/16			225		245,812
Nielsen Finance LLC, 7.75%, 10/15/18			319		353,292
ProQuest LLC, 9.00%, 10/15/18 (b)			29		28,783
ProtoStar I Ltd., 18.00%, 10/15/13 (a)(b)(d)(h)			414		207
Sterling Entertainment Corp., 9.75%, 12/15/19			150		150,000
Unitymedia GmbH, 9.50%, 3/15/21	EUR		100		148,650
Unitymedia Hessen GmbH & Co. KG, 7.50%, 3/15/19			112		159,016
Univision Communications, Inc., 6.75%, 9/15/22 (b)	USD		78		84,240
WaveDivision Escrow LLC/WaveDivision Escrow Corp., 8.13%, 9/01/20 (b)			55		57,750
Ziggo Bond Co. BV, 8.00%, 5/15/18	EUR		65		91,650
					4,518,184
Metals & Mining — 3.7%
ArcelorMittal:
9.50%, 2/15/15	USD		40		45,150
4.25%, 8/05/15			65		67,297
4.25%, 3/01/16			25		25,750
5.00%, 2/25/17			68		70,754

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 77

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

Corporate Bonds		Par (000)		Value
Metals & Mining (concluded)
ArcelorMittal (concluded):
6.13%, 6/01/18	USD		68	$	73,324
6.00%, 3/01/21			10		10,613
6.75%, 2/25/22			80		88,089
7.50%, 10/15/39			10		10,367
7.25%, 3/01/41			38		37,905
FMG Resources August 2006 Property Ltd. (b):
6.38%, 2/01/16			27		27,731
6.00%, 4/01/17			75		78,187
Global Brass and Copper, Inc., 9.50%, 6/01/19 (b)			50		54,375
GoldCorp, Inc., 2.00%, 8/01/14 (d)			85		89,037
Kaiser Aluminum Corp., 8.25%, 6/01/20			35		39,112
New Gold, Inc., 7.00%, 4/15/20 (b)			25		27,000
New World Resources NV, 7.88%, 5/01/18	EUR		60		80,329
Newmont Mining Corp., Series A, 1.25%, 7/15/14 (d)	USD		90		99,394
Novelis, Inc., 8.75%, 12/15/20			545		610,400
Schmolz & Bickenbach Luxembourg SA, 9.88%, 5/15/19	EUR		100		116,886
Steel Dynamics, Inc., 6.38%, 8/15/22 (b)	USD		40		42,800
Taseko Mines Ltd., 7.75%, 4/15/19			70		69,650
Walter Energy, Inc., 9.88%, 12/15/20 (b)			22		23,925
					1,788,075
Multiline Retail — 0.7%
Dollar General Corp., 4.13%, 7/15/17			134		141,705
Dufry Finance SCA, 5.50%, 10/15/20 (b)			200		208,500
					350,205
Oil, Gas & Consumable Fuels — 8.9%
Access Midstream Partners LP:
6.13%, 7/15/22			45		48,263
4.88%, 5/15/23			60		59,400
Alpha Appalachia Holdings, Inc., 3.25%, 8/01/15 (d)			142		135,521
Aurora USA Oil & Gas, Inc., 9.88%, 2/15/17 (b)			115		123,625
BreitBurn Energy Partners LP, 7.88%, 4/15/22			40		42,500
Carrizo Oil & Gas, Inc., 7.50%, 9/15/20			38		39,900
Chaparral Energy, Inc., 7.63%, 11/15/22			35		37,975
Chesapeake Energy Corp.:
7.25%, 12/15/18			20		22,600
6.63%, 8/15/20			30		32,850
6.88%, 11/15/20			30		33,000
6.13%, 2/15/21			11		11,660
Concho Resources, Inc.:
7.00%, 1/15/21			25		27,625
6.50%, 1/15/22			52		56,680
5.50%, 10/01/22			38		39,568
CONSOL Energy, Inc., 8.25%, 4/01/20			50		55,125
Continental Resources, Inc., 7.13%, 4/01/21			60		68,100
Crosstex Energy LP, 8.88%, 2/15/18			25		26,938
CVR Refining LLC/Coffeyville Finance, Inc., 6.50%, 11/01/22 (b)			65		65,487
Denbury Resources, Inc., 4.63%, 7/15/23			128		125,600
Energy XXI Gulf Coast, Inc.:
9.25%, 12/15/17			75		84,750
7.75%, 6/15/19			90		96,525
EP Energy LLC/Everest Acquisition Finance, Inc.:
6.88%, 5/01/19			55		59,950
7.75%, 9/01/22			35		37,888
EV Energy Partners LP, 8.00%, 4/15/19			25		26,188
Halcon Resources Corp., 8.88%, 5/15/21 (b)			72		77,400
Hilcorp Energy I LP, 7.63%, 4/15/21 (b)			45		49,612
Holly Energy Partners LP, 6.50%, 3/01/20 (b)			25		26,750
Kodiak Oil & Gas Corp., 8.13%, 12/01/19			60		67,500
Linn Energy LLC:
6.50%, 5/15/19			7		7,245
6.25%, 11/01/19 (b)			238		242,760
8.63%, 4/15/20			20		22,125
7.75%, 2/01/21			60		64,800
Corporate Bonds		Par (000)		Value
Oil, Gas & Consumable Fuels (concluded)
MarkWest Energy Partners LP:
5.50%, 2/15/23	USD		45	$	47,250
4.50%, 7/15/23			25		24,438
Newfield Exploration Co., 6.88%, 2/01/20			135		144,787
Northern Oil and Gas, Inc., 8.00%, 6/01/20			55		57,475
Oasis Petroleum, Inc.:
7.25%, 2/01/19			35		37,800
6.50%, 11/01/21			50		54,000
Offshore Group Investments Ltd., 11.50%, 8/01/15			124		135,160
PBF Holding Co. LLC, 8.25%, 2/15/20 (b)			35		38,063
PDC Energy, Inc., 7.75%, 10/15/22 (b)			35		37,013
PetroBakken Energy Ltd., 8.63%, 2/01/20 (b)			112		114,240
Petroleum Geo-Services ASA, 7.38%, 12/15/18 (b)			95		104,500
Plains Exploration & Production Co., 6.88%, 2/15/23			175		201,687
Range Resources Corp.:
8.00%, 5/15/19			20		22,000
5.75%, 6/01/21			166		176,790
5.00%, 8/15/22			68		69,530
Regency Energy Partners LP:
6.88%, 12/01/18			70		75,600
5.50%, 4/15/23			115		121,325
Sabine Pass Liquefaction LLC, 5.63%, 2/01/21 (b)			270		278,775
Sabine Pass Liquified Natural Gas LP:
7.50%, 11/30/16			205		226,525
6.50%, 11/01/20 (b)			55		58,025
SandRidge Energy, Inc., 7.50%, 2/15/23			89		93,227
SESI LLC:
6.38%, 5/01/19			55		58,987
7.13%, 12/15/21			40		44,300
SM Energy Co.:
6.63%, 2/15/19			20		21,450
6.50%, 11/15/21			45		48,937
6.50%, 1/01/23			65		70,362
Tesoro Logistics LP/Tesoro Logistics Finance Corp., 5.88%, 10/01/20 (b)			26		27,105
Vanguard Natural Resources, 7.88%, 4/01/20			40		42,000
					4,347,261
Paper & Forest Products — 0.7%
Ainsworth Lumber Co. Ltd., 7.50%, 12/15/17 (b)			60		64,650
Boise Paper Holdings LLC:
9.00%, 11/01/17			15		16,219
8.00%, 4/01/20			5		5,513
Clearwater Paper Corp., 7.13%, 11/01/18			95		102,837
Longview Fibre Paper & Packaging, Inc., 8.00%, 6/01/16 (b)			55		57,750
NewPage Corp., 11.38%, 12/31/14 (a)(h)			337		—
Sappi Papier Holding GmbH, 6.63%, 4/15/21 (b)			25		25,875
Unifrax I LLC/Unifrax Holding Co., 7.50%, 2/15/19 (b)			45		45,675
					318,519
Pharmaceuticals — 1.2%
Jaguar Holding Co. II/Jaguar Merger Sub, Inc., 9.50%, 12/01/19 (b)			68		78,030
Mylan, Inc., 6.00%, 11/15/18 (b)			20		22,027
Valeant Pharmaceuticals International (b):
6.50%, 7/15/16			130		136,581
6.88%, 12/01/18			132		143,385
6.38%, 10/15/20			70		75,338
Warner Chilcott Co. LLC/Warner Chilcott Finance LLC, 7.75%, 9/15/18			102		110,160
					565,521
Professional Services — 0.2%
Truven Health Analytics, Inc., 10.63%, 6/01/20 (b)			90		100,800

See Notes to Financial Statements.

78 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

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

Corporate Bonds		Par (000)		Value
Real Estate Investment Trusts (REITs) — 0.8%
Cantor Commercial Real Estate Co. LP/CCRE Finance Corp., 7.75%, 2/15/18 (b)	USD		46	$	46,230
Felcor Lodging LP:
6.75%, 6/01/19			181		194,462
5.63%, 3/01/23 (b)			41		41,256
The Rouse Co. LP, 6.75%, 11/09/15			85		88,400
					370,348
Real Estate Management & Development — 2.4%
CBRE Services, Inc., 6.63%, 10/15/20			55		59,400
Crescent Resources LLC/Crescent Ventures, Inc., 10.25%, 8/15/17 (b)			145		156,237
Mattamy Group Corp., 6.50%, 11/15/20 (b)			60		59,775
Realogy Corp.:
11.50%, 4/15/17			60		63,975
12.00%, 4/15/17			15		16,013
7.88%, 2/15/19 (b)			345		375,187
7.63%, 1/15/20 (b)			120		135,300
9.00%, 1/15/20 (b)			55		63,113
Shea Homes LP, 8.63%, 5/15/19			230		255,300
					1,184,300
Road & Rail — 0.8%
The Hertz Corp.:
7.50%, 10/15/18			130		142,025
6.75%, 4/15/19 (b)			50		53,875
7.38%, 1/15/21			170		187,425
					383,325
Semiconductors & Semiconductor Equipment — 0.6%
Micron Technology, Inc., Series C, 2.38%, 5/01/32 (d)			41		45,638
NXP BV/NXP Funding LLC, 5.75%, 2/15/21 (b)			200		204,500
Spansion LLC, 7.88%, 11/15/17			50		52,750
					302,888
Software — 1.3%
IAC/InterActiveCorp, 4.75%, 12/15/22 (b)			71		69,403
Igloo Holdings Corp., 8.25%, 12/15/17 (b)(e)			47		48,175
Infor US, Inc., 9.38%, 4/01/19			280		314,300
Interface Security Systems Holdings, Inc./Interface Security Systems LLC, 9.25%, 1/15/18 (b)			27		27,473
Nuance Communications, Inc., 5.38%, 8/15/20 (b)			85		86,062
Sophia LP, 9.75%, 1/15/19 (b)			78		86,287
					631,700
Specialty Retail — 3.2%
Asbury Automotive Group, Inc.:
7.63%, 3/15/17			60		61,725
8.38%, 11/15/20			60		66,900
Claire’s Stores, Inc., 9.00%, 3/15/19 (b)			149		165,390
House of Fraser Funding Plc, 8.88%, 8/15/18	GBP		100		160,807
Limited Brands, Inc.:
8.50%, 6/15/19	USD		140		171,500
5.63%, 2/15/22			25		26,438
Michaels Stores, Inc., 7.75%, 11/01/18			39		42,559
New Academy Finance Co. LLC/New Academy Finance Corp., 8.00%, 6/15/18 (b)(e)			37		38,203
Party City Holdings, Inc., 8.88%, 8/01/20 (b)			173		188,137
Penske Automotive Group, Inc., 5.75%, 10/01/22 (b)			180		188,325
QVC, Inc. (b):
7.13%, 4/15/17			40		41,662
7.50%, 10/01/19			100		110,369
7.38%, 10/15/20			55		60,964
5.13%, 7/02/22			4		4,230
Sally Holdings LLC:
6.88%, 11/15/19			90		100,350
5.75%, 6/01/22			83		87,669
Sonic Automotive, Inc., 9.00%, 3/15/18			65		71,500
					1,586,728
Corporate Bonds		Par (000)		Value
Textiles, Apparel & Luxury Goods — 0.2%
Levi Strauss & Co., 6.88%, 5/01/22	USD		75	$	81,469
PVH Corp., 4.50%, 12/15/22			41		40,436
					121,905
Trading Companies & Distributors — 1.1%
Ashtead Capital, Inc., 6.50%, 7/15/22 (b)			90		96,975
Doric Nimrod Air Finance Alpha Ltd. (b):
Series 2012-1 6.50%, 5/30/21			200		211,431
Series 2012-1 5.13%, 11/30/24			200		215,000
					523,406
Transportation Infrastructure — 0.3%
Aguila 3 SA, 7.88%, 1/31/18			150		159,000
Wireless Telecommunication Services — 4.6%
Cricket Communications, Inc., 7.75%, 10/15/20			96		97,920
Crown Castle International Corp., 5.25%, 1/15/23 (b)			187		191,675
Digicel Group Ltd., 8.25%, 9/30/20 (b)			200		213,300
Digicel Ltd., 8.25%, 9/01/17 (b)			330		348,150
MetroPCS Wireless, Inc., 6.63%, 11/15/20			94		98,348
NII Capital Corp., 7.63%, 4/01/21			35		24,500
Phones4u Finance Plc, 9.50%, 4/01/18	GBP		100		156,635
Sprint Capital Corp., 6.88%, 11/15/28	USD		263		265,630
Sprint Nextel Corp. (b):
9.00%, 11/15/18			456		565,440
7.00%, 3/01/20			235		274,950
					2,236,548
Total Corporate Bonds — 102.8%					50,297,807
Floating Rate Loan Interests (g)
Airlines — 1.2%
Delta Air Lines, Inc., Term Loan B, 4.50%, 4/20/17			96		96,710
Northwest Airlines, Inc.:
Term Loan, 2.32%, 3/10/17			119		110,789
Term Loan, 2.32%, 3/10/17			216		201,096
Term Loan, 1.70%, 9/10/18			97		86,602
Term Loan, 1.70%, 9/10/18			98		87,494
					582,691
Auto Components — 0.1%
Schaeffler AG, Term Loan B2, 6.00%, 1/27/17			70		69,982
Building Products — 0.1%
Wilsonart International Holdings LLC, Term Loan B, 5.50%, 10/31/19			70		70,735
Capital Markets — 0.6%
American Capital Holdings, Inc., Term Loan, 5.50%, 8/22/16			156		157,560
Nuveen Investments, Inc.:
Incremental Term Loan, 7.25%, 5/13/17			80		80,400
Second Lien Term Loan, 8.25%, 2/28/19			70		71,400
					309,360
Chemicals — 0.4%
INEOS US Finance LLC, 6 Year Term Loan, 6.50%, 5/04/18			69		70,056
US Coatings Acquisition, Inc.:
Term Loan, 4.75%, 2/03/20			115		116,396
Term Loan B, 5.25%, 2/03/20	EUR		10		13,188
					199,640
Commercial Services & Supplies — 0.4%
AWAS Finance Luxembourg Sarl, Term Loan B, 5.25%, 6/10/16	USD		97		98,163
Delos Aircraft, Inc., Term Loan 2, 4.75%, 4/12/16			100		100,583
					198,746

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 79

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

Floating Rate Loan Interests (g)		Par (000)		Value
Communications Equipment — 1.4%
Alcatel-Lucent:
Term Loan C, 7.25%, 1/31/19	USD		235	$	237,585
Term Loan D, 7.75%, 1/31/19	EUR		90		117,810
Avaya, Inc., Term Loan B5, 8.00%, 3/30/18	USD		20		19,895
Zayo Group, LLC Refinancing, Term Loan B, 5.25%, 7/12/19			297		298,369
					673,659
Construction & Engineering — 0.5%
Safway Services LLC, Mezzanine Loan, 9.88%, 12/16/17			250		250,000
Construction Materials — 0.4%
HD Supply, Inc., Senior Debt B, 4.50%, 10/12/17			184		184,565
Consumer Finance — 1.4%
Springleaf Financial Funding Co., Term Loan, 5.50%, 5/10/17			661		663,340
Diversified Consumer Services — 0.2%
Laureate Education, Inc., Extended Term Loan, 5.25%, 6/18/18			25		24,879
ServiceMaster Co., New Term Loan, 2.70%, 4/01/17			80		79,729
					104,608
Diversified Telecommunication Services — 0.7%
Level 3 Financing, Inc.:
2016 Term Loan B, 4.75%, 2/01/16			50		50,436
2019 Term Loan B, 5.25%, 8/01/19			40		40,408
Term Loan, 4.75%, 8/01/19			250		252,000
					342,844
Energy Equipment & Services — 1.6%
Dynegy Midwest Generation LLC, Coal Co. Term Loan, 9.25%, 8/04/16			290		298,919
Dynegy Power LLC, Gas Co. Term Loan, 9.25%, 8/04/16			467		486,068
Tervita Corp., Incremental Term Loan, 6.50%, 5/01/18			25		25,129
					810,116
Food & Staples Retailing — 0.0%
Rite Aid Corp., Second Lien Term Loan, 5.75%, 7/07/20			20		20,456
Food Products — 0.1%
Advance Pierre Foods, Inc., Term Loan, 5.75%, 7/10/17			35		35,427
Health Care Equipment & Supplies — 0.5%
Bausch & Lomb, Inc., Term Loan B, 5.25%, 5/17/19			50		50,080
Capital Safety North America, Term Loan, 4.50%, 1/21/19			129		129,025
LHP Hospital Group, Inc., Term Loan, 9.00%, 7/03/18			45		45,782
					224,887
Health Care Providers & Services — 0.5%
Genesis HealthCare Corp., Term Loan B, 10.00%—10.75%, 9/25/17			33		32,145
Harden Healthcare LLC:
Add on Term Loan A, 7.75%, 3/02/15			69		67,133
Term Loan A, 8.50%, 3/02/15			58		57,499
inVentiv Health, Inc., Combined Term Loan, 7.50%, 8/04/16			79		77,546
					234,323
Hotels, Restaurants & Leisure — 3.1%
Caesars Entertainment Operating Co., Inc.:
Term Loan B1, 3.20%, 1/28/15			90		90,074
Term Loan B3, 3.20%—3.31%, 1/28/15			4		4,476
Harrah’s Property Co., Mezzanine Term Loan, 3.69%, 2/13/14			905		832,600
Floating Rate Loan Interests (g)		Par (000)		Value
Hotels, Restaurants & Leisure (concluded)
MGM Resorts International, Term Loan B, 4.25%, 12/20/19	USD		205	$	207,358
Station Casinos, Inc.:
Term Loan B, 5.50%, 9/27/19			175		175,580
Term Loan B, 5.50%, 2/13/20			170		171,417
Travelport Holdings Ltd.:
Extended Tranche A Term Loan, 6.40%, 12/01/16			32		11,402
Extended Tranche B Term Loan, 13.80%, 12/01/16			108		10,082
					1,502,989
Industrial Conglomerates — 0.2%
Sequa Corp., Term Loan B, 5.25%, 6/19/17			94		95,539
Insurance — 0.1%
Alliant Holdings I, Inc., Term Loan B, 5.00%, 12/20/19			55		55,413
IT Services — 0.3%
Ceridian Corp., Extended Term Loan, 5.95%, 5/09/17			12		11,980
First Data Corp., Extended 2018 Term Loan B, 4.20%, 3/23/18			130		128,362
					140,342
Leisure Equipment & Products — 0.1%
Eastman Kodak Co., DIP Term Loan B, 8.50%, 7/19/13			41		40,574
Life Sciences Tools & Services — 0.1%
Patheon, Inc., Term Loan, 7.25%, 12/06/18			35		35,305
Machinery — 0.7%
Rexnord Corp., Term Loan B, 4.50%, 4/02/18			99		99,620
Silver II US Holdings LLC, Term Loan, 4.75%, 12/05/19			225		225,000
					324,620
Media — 4.0%
Cengage Learning Acquisitions, Inc.:
Non-Extended Term Loan, 2.71%, 7/03/14			59		46,460
Tranche 1 Incremental, 7.50%, 7/03/14			239		189,806
Cequel Communications LLC, Term Loan B, 4.00%, 2/14/19			50		49,748
Clear Channel Communications, Inc.:
Term Loan B, 3.85%, 1/29/16			229		196,141
Term Loan C, 3.85%, 1/29/16			62		51,970
EMI Music Publishing Ltd., Term Loan B, 5.50%, 6/29/18			45		45,256
Getty Images, Inc., Term Loan B, 4.75%, 10/18/19			68		68,667
Intelsat Jackson Holdings SA, Term Loan B1, 4.50%, 4/02/18			1,042		1,051,638
Interactive Data Corp., Term Loan B, 3.75%, 2/11/18			70		69,923
Univision Communications, Inc., Extended Term Loan, 4.45%, 3/31/17			44		44,011
Virgin Media Investment Holdings, Term Loan B, 3.50%, 2/17/20			125		124,254
					1,937,874
Metals & Mining — 1.0%
Constellium Holdco BV, Term Loan B, 9.25%, 5/25/18			70		71,043
FMG America Finance, Inc., Term Loan, 5.25%, 10/18/17			394		398,733
					469,776
Oil, Gas & Consumable Fuels — 1.4%
Chesapeake Energy Corp., Unsecured Term Loan, 5.75%, 12/01/17			325		331,738
Obsidian Natural Gas Trust, Term Loan, 7.00%, 11/02/15			140		140,948

See Notes to Financial Statements.

80 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

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

Floating Rate Loan Interests (g)		Par (000)			Value
Oil, Gas & Consumable Fuels (concluded)
Samson Investment Co., Second Lien Term Loan, 6.00%, 9/25/18	USD		40		$	40,375
Vantage Drilling Co., Term Loan, 6.25%, 10/26/17			163			163,752
						676,813
Pharmaceuticals — 0.3%
Par Pharmaceutical Co., Inc., Term Loan B, 4.25%, 9/28/19			120			119,551
Pharmaceutical Product Development, Inc., Term Loan B, 4.25%, 12/05/18			49			49,741
						169,292
Professional Services — 0.1%
Truven Health Analytics, Inc.(FKA Thomson Reuters (Healthcare), Inc.), Term Loan B, 5.75%, 6/01/19			60			60,260
Real Estate Investment Trusts (REITs) — 0.2%
iStar Financial, Inc., Term Loan, 4.50%, 9/28/17			124			123,894
Real Estate Management & Development — 0.3%
Realogy Corp.:
Extended Letter of Credit Loan, 4.46%, 10/10/16			14			14,457
Extended Term Loan, 4.42%, 10/10/16			123			122,631
						137,088
Road & Rail — 0.1%
Genesee & Wyoming, Inc., Term Loan A, 2.70%, 9/29/17			48			47,899
Semiconductors & Semiconductor Equipment — 0.1%
Freescale Semiconductor, Inc., Extended Term Loan B, 4.45%, 12/01/16			50			50,000
Software — 0.6%
GCA Services Group, Inc., Second Lien Term Loan, 9.25%, 10/22/20			10			9,900
Infor US, Inc., Term Loan B2, 5.25%, 4/05/18			204			206,185
Kronos, Inc., Second Lien Term Loan, 9.75%, 4/30/20			85			88,400
						304,485
Specialty Retail — 0.2%
David’s Bridal, Inc., Term Loan B, 5.00%, 10/11/19			90			90,922
Textiles, Apparel & Luxury Goods — 0.5%				��
Ascend Performance Materials LLC, Term Loan B, 6.75%, 4/10/18			184			185,449
PVH Corp., Term Loan B, 3.25%, 12/19/19			75			75,601
						261,050
Thrifts & Mortgage Finance — 0.2%
Ocwen Financial Corp., Term Loan, 5.00%, 1/22/18			100			101,208
Wireless Telecommunication Services — 1.1%
Vodafone Americas Finance 2, Inc. (e):
Term Loan, 6.88%, 8/11/15			277			282,420
Term Loan B, 6.25%, 7/11/16			258			264,902
						547,322
Total Floating Rate Loan Interests — 24.8%						12,148,044

Preferred Securities	Shares		Value
Preferred Stocks
Auto Components — 0.6%
Dana Holding Corp., 4.00% (b)(d)		2,180	$	309,287
Trust Preferreds
Diversified Financial Services — 1.1%
GMAC Capital Trust I, Series 2, 8.13%, 2/15/40 (g)		19,710		521,325
Total Preferred Securities — 1.7%				830,612
Warrants (i)
Software — 0.0%
Bankruptcy Management Solutions, Inc. (Expires 9/28/17)		61		—
HMH Holdings/EduMedia (Issued/Exercisable 3/09/10, 19 Shares for 1 Warrant, Expires 6/22/19, Strike Price $42.27)		176		—
				—
Total Warrants — 0.0%				—
Total Long-Term Investments
(Cost — $62,945,241) — 134.9%				66,013,096
Short-Term Securities
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.10% (j)(k)		2,001,193		2,001,193
Total Short-Term Securities
(Cost — $2,001,193) — 4.1%				2,001,193
Options Purchased
(Cost — $2,933) — 0.0%				—
Total Investments Before Options Written
(Cost — $64,949,367) — 139.0%				68,014,289
Options Written
(Premiums Received— $18,225) — (0.0)%				(9,362	)
Total Investments, Net of Options Written (Cost—$64,931,142) — 139.0%				68,004,927
Liabilities in Excess of Other Assets — (39.0)%				(19,070,042	)
Net Assets — 100.0%			$	48,934,885

Notes to Schedule of Investments

(a)	Non-income producing security.
(b)	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.
(c)	Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(d)	Convertible security.
(e)	Represents a payment-in-kind security which may pay interest/dividends in additional par/shares.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 81

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

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

Counterparty	Value		Unrealized Appreciation (Depreciation)
Goldman Sachs Group, Inc	$	76,500	$	1,500
Deutsche Bank AG	$	159,994	$	994
Citigroup, Inc	$	6,510	$	901
Bank of America Corp	$	21,985	$	200
Pershing LLC	$	30,394	$	81
Bank of New York Mellon Corp./Suntrust Capital	$	18,360	$	(34	)

(g)	Variable rate security. Rate shown is as of report date.
(h)	Issuer filed for bankruptcy and/or is in default of principal and/or interest payments.
(i)	Warrants entitle the Trust to purchase a predetermined number of shares of common stock and are non-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date of the warrants, if any.
(j)	Investments in issuers considered to be an affiliate of the Trust 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		Realized Gain
BlackRock Liquidity Funds, TempFund, Institutional Class		1,204,968		796,225		2,001,193	$	366	$	12

(k)	Represents the current yield as of report date.
•	For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by Trust management. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.
•	Financial futures contracts as of February 28, 2013 were as follows:

Contracts Sold	Issue	Exchange	Expiration	Notional Value		Unrealized  Depreciation
(8)	S&P 500 E-Mini Index	Chicago Mercantile	March 2013	USD	605,320	$(11,294)

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

Currency Purchased			Currency Sold			Counterparty		Settlement Date		Unrealized Appreciation (Depreciation)
GBP	16,000	USD		24,255	Barclays Plc		4/17/13		$	12
USD	656,787	GBP		410,000	Goldman Sachs Group, Inc.		4/17/13			34,942
EUR	90,000	USD		120,141	Citigroup, Inc.		4/23/13			(2,598	)
USD	1,543,274	EUR		1,158,000	Citigroup, Inc.		4/23/13			30,892
Total									$	63,248

• 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	3		—

• Over-the-counter credit default swaptions written as of February 28, 2013 were as follows:

Description	Counterparty	Put/ Call	Strike Price	Pay/Receive Floating Rate Index	Floating Rate Index	Credit  Rating1	Expiration Date	Notional Amount (000)2		Market Value
Sold Protection on 5-Year Credit Default Swap	Credit Suisse Group AG	Call	USD   103.50	Receive	Dow Jones CDX North America High Yield, Series 19, Verison 1	B+	6/19/13	USD	750	$(4,053)
Sold Protection on 5-Year Credit Default Swap	Credit Suisse Group AG	Put	USD    97.50	Pay	Dow Jones CDX North America High Yield, Series 19, Verison 1	B+	6/19/13	USD	750	(5,309)
Total										$ (9,362)

¹ Using S&P’s rating of the underlying securities of the index.

² The maximum potential amount the Trust may pay should a negative credit event take place as defined under the terms of the agreement.

See Notes to Financial Statements.

82 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

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

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

Issuer	Pay Fixed Rate	Counterparty	Expiration Date	Notional Amount (000)		Unrealized Depreciation
The New York Times Co.	1.00%	Barclays Plc	12/20/16	USD	225	$	(5,115	)
State of Israel	1.00%	Deutsche Bank AG	3/20/17	USD	100		(3,939	)
State of Israel	1.00%	Deutsche Bank AG	3/20/17	USD	35		(1,358	)
Beazer Home USA, Inc.	5.00%	Bank of America Corp.	12/20/17	USD	15		(388	)
Total						$	(10,800	)

• 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	110	$	14,972
Goodyear Tire & Rubber Co.	5.00%	Barclays Plc	12/20/15	BB-	USD	95		8,217
Caesars Entertainment Operating Co., Inc.	5.00%	Barclays Plc	3/20/16	CCC	USD	23		740
Caesars Entertainment Operating Co., Inc.	5.00%	Goldman Sachs Group, Inc.	3/20/16	CCC	USD	187		7,478
Caesars Entertainment Operating Co., Inc.	5.00%	JPMorgan Chase & Co.	3/20/16	CCC	USD	13		472
Caesars Entertainment Operating Co., Inc.	5.00%	Goldman Sachs Group, Inc.	6/20/16	CCC	USD	200		9,641
ARAMARK Corp.	5.00%	Credit Suisse Group AG	9/20/16	B-	USD	50		5,586
ARAMARK Corp.	5.00%	Deutsche Bank AG	3/20/17	B-	USD	35		2,562
Caesars Entertainment Operating Co., Inc.	5.00%	Barclays Plc	3/20/17	CCC	USD	11		85
Caesars Entertainment Operating Co., Inc.	5.00%	Goldman Sachs Group, Inc.	3/20/17	CCC	USD	33		(253	)
Caesars Entertainment Operating Co., Inc.	5.00%	Goldman Sachs Group, Inc.	3/20/17	CCC	USD	63		1,549
Crown Castle International Corp.	7.25%	Deutsche Bank AG	3/20/17	B-	USD	80		13,848
CCO Holdings LLC	8.00%	Deutsche Bank AG	9/20/17	BB-	USD	280		67,699
Total							$	132,596

¹ Using S&P’s rating of the issuer.

² The maximum potential amount the Trust may pay should a negative credit event take place as defined under the terms of the agreement.

• Fair Value Measurements — Various inputs are used in determining the fair value of investments 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 Trust 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 Trust’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 Trust’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 Trust’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to the Note 1 of the Notes to Financial Statements.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 83

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

The following tables summarize the Trust’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:
Common Stocks	$	2,440,561	$	129,452	$	166,620	$	2,736,633
Corporate Bonds		—		49,812,693		485,114		50,297,807
Floating Rate Loan Interests		—		9,754,171		2,393,873		12,148,044
Preferred Securities		521,324		309,287		—		830,611
Warrants		—		—		1		1
Short-Term Securities		2,001,193		—		—		2,001,193
Total	$	4,963,078	$	60,005,603	$	3,045,608	$	68,014,289

	Level 1			Level 2			Level 3		Total
Derivative Financial Instruments1
Assets:
Credit contracts		—		$	132,849			—	$	132,849
Foreign currency exchange contracts		—			65,846			—		65,846
Liabilities:
Credit contracts		—			(20,415	)		—		(20,415	)
Equity contracts	$	(11,294	)		—			—		(11,294	)
Foreign currency exchange contracts		—			(2,598	)		—		(2,598	)
Total	$	(11,294	)	$	175,682			—	$	164,388

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

Certain of the Trust’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	$	11,231		—			—	$	11,231
Cash pledged as collateral for financial futures contracts		63,000		—			—		63,000
Liabilities:
Loan payable		—	$	(18,000,000	)		—		(18,000,000	)
Total	$	74,231	$	(18,000,000	)		—	$	(17,925,769	)

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

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

	Common Stocks		Corporate Bonds			Floating Rate Loan Interests			Warrants		Total
Assets:
Opening Balance, as of August 31, 2012	$	1	$	638,018		$	1,898,540		$	1	$	2,536,560
Transfers into Level 32		1,620		247,288			288,129			—		537,037
Transfers out of Level 33		—		—			(45,338	)		—		(45,338	)
Accrued discounts/premiums		—		(2,101	)		4,838			—		2,737
Net realized gain (loss)		—		1,228			(11,946	)		—		(10,718	)
Net change in unrealized appreciation/depreciation4		105,959		(262,173	)		120,250			—		(35,964	)
Purchases		59,040		339,683			837,714			—		1,236,437
Sales		—		(476,829	)		(698,314	)		—		(1,175,143	)
Closing Balance, as of February 28, 2013	$	166,620	$	485,114		$	2,393,873		$	1	$	3,045,608

² As of August 31, 2012, the Trust used observable inputs in determining the value of certain investments. As of February 28, 2013, the Trust used significant unobservable inputs in determining the value of the same investments. As a result, investments with a beginning of period value of $537,037 transferred from Level 2 to Level 3 in the disclosure hierarchy.

³ As of August 31, 2012, the Trust used significant unobservable inputs in determining the value of certain investments. As of February 28, 2013, the Trust used observable inputs in determining the value of the same investments. As a result, investments with a beginning of period value of $45,338 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 $82,969.

See Notes to Financial Statements.

84 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

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

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

	Credit Contracts
Assets:
Opening Balance, as of August 31, 2012	$	90,639
Transfers into Level 31		—
Transfers out of Level 31		(23,950	)
Accrued discounts/premiums		—
Net realized gain (loss)		—
Net change in unrealized appreciation/depreciation2		(66,689	)
Purchases		—
Issues3		—
Sales		—
Settlements4		—
Closing Balance, as of February 28, 2013		—

¹ Transfers into and transfers out of Level 3 represent the values as of the beginning of the reporting period.

² Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations.

³ Issues represent upfront cash received on certain derivative financial instruments.

⁴ Settlements represent periodic contractual cash flows and/or cash flows to terminate certain derivative financial instruments.

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 Trust’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 $2,238,774.

	Value		Valuation Techniques	Unobservable Inputs5	Range of Unobservable Inputs Utilized
Assets:
Common Stocks	$	42,394	Restructure Terms6	N/A	—
Corporate Bonds		185,701	Market Comparable Companies	Yield	12.10%
		207	Estimated Final Distribution	Recovery Rate	0.05%
		203,900	Cost7	N/A	—
Floating Rate Loan Interests		124,632	Discounted Cash Flow	Yield	9.50%
		250,000	Cost7	N/A	—
Total	$	806,834

⁵ 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
Recovery Rate	Increase	Decrease
Yield	Decrease	Increase

⁶ Investment is valued based on the company’s financial restructuring plan.

⁷ The Trust 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 Trust.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 85

Schedule of Investments 
February 28, 2013 (Unaudited) BlackRock Income Opportunity Trust, Inc. (BNA)
(Percentages shown are based on Net Assets)

Asset-Backed Securities		Par (000)		Value
Asset-Backed Securities — 7.6%
321 Henderson Receivables I LLC, Series 2010-3A, Class A, 3.82%, 12/15/48 (a)	USD		715	$	775,276
ACAS CLO Ltd., Series 2013-1A, Class C, 3.04%, 4/20/25 (a)(b)(c)			500		487,800
AH Mortgage Advance Co. Ltd., Series SART-3, Class 1A1, 2.98%, 3/13/43 (a)			630		631,104
AmeriCredit Automobile Receivables Trust, Series 2011-5, Class C, 3.44%, 10/08/17			400		419,704
Apidos CDO, Series 2012-11A, Class D, 4.74%, 1/17/23 (a)(b)			600		600,900
Atrium CDO Corp., Series 9A, Class D, 3.96%, 2/28/24 (a)(b)			500		483,500
CarMax Auto Owner Trust, Series 2012-1:
Class B, 1.76%, 8/15/17			210		214,781
Class C, 2.20%, 10/16/17			125		127,980
Class D, 3.09%, 8/15/18			160		165,651
Cavalry CLO Ltd., Series 2A (a)(b):
Class C, 3.23%, 1/17/24			1,040		1,019,200
Class D, 4.38%, 1/17/24			765		744,728
CenterPoint Energy Transition Bond Co. LLC, Series 2012-1, Class A3, 3.03%, 10/15/25			1,105		1,165,103
CIFC Funding Ltd. (a)(b):
Series 2012-1A, Class B1L, 5.54%, 8/14/24			750		757,500
Series 2013-1A, Class B, 3.10%, 4/16/25 (c)			500		493,750
Series 2013-1A, Class C, 3.89%, 4/16/25 (c)			500		486,500
Credit Acceptance Auto Loan Trust, Series 2010-1, Class B, 3.63%, 10/15/18 (a)			1,970		1,981,680
DT Auto Owner Trust (a):
Series 2011-2A, Class C, 3.05%, 2/16/16			1,500		1,504,674
Series 2011-3A, Class C, 4.03%, 2/15/17			260		264,825
Duane Street CLO IV Ltd., Series 2007-4A, Class D, 2.54%, 11/14/21 (a)(b)			500		445,000
Figueroa CLO Ltd., Series 2013-1A, Class C, 3.94%, 3/21/24 (a)(b)(c)			500		484,250
Ford Credit Floorplan Master Owner Trust:
Series 2012-1, Class B, 1.10%, 1/15/16 (b)			180		180,720
Series 2012-1, Class C, 1.70%, 1/15/16 (b)			480		483,409
Series 2012-1, Class D, 2.30%, 1/15/16 (b)			450		452,987
Series 2012-2, Class B, 2.32%, 1/15/19			245		252,913
Series 2012-2, Class C, 2.86%, 1/15/19			105		110,368
Series 2012-2, Class D, 3.50%, 1/15/19			200		211,127
Galaxy CLO Ltd., Series 2013-15A, Class C, 2.89%, 4/15/25 (a)(b)(c)			500		490,510
Home Equity Asset Trust, Series 2007-2, Class 2A1, 0.31%, 7/25/37 (b)			39		39,017
Mountain Hawk I CLO Ltd., Series 2013-1A, Class C, 3.12%, 1/20/24 (a)(b)			750		723,750
Nelnet Student Loan Trust (b):
Series 2006-1, Class A5, 0.40%, 8/23/27			525		514,436
Series 2008-3, Class A4, 1.94%, 11/25/24			620		660,272
OZLM Funding Ltd., Series 2013-3A (a)(b):
Class B, 3.35%, 1/22/25			750		754,725
Class C, 4.15%, 1/22/25			500		488,850
PFS Financing Corp., Series 2012-AA, Class A, 1.40%, 2/15/16 (a)(b)			480		483,831
Santander Consumer Acquired Receivables Trust (a):
Series 2011-S1A, Class B, 1.66%, 8/15/16			460		463,693
Series 2011-S1A, Class C, 2.01%, 8/15/16			317		319,460
Series 2011-S1A, Class D, 3.15%, 8/15/16			325		330,281
Series 2011-WO, Class C, 3.19%, 10/15/15			575		591,043
Santander Drive Auto Receivables Trust:
Series 2010-2, Class B, 2.24%, 12/15/14			786		789,924
Series 2010-2, Class C, 3.89%, 7/17/17			1,020		1,054,615
Series 2010-B, Class B, 2.10%, 9/15/14 (a)			419		419,672
Series 2010-B, Class C, 3.02%, 10/17/16 (a)			735		747,611
Series 2011-1, Class D, 4.01%, 2/15/17			940		988,523
Series 2011-S1A, Class B, 1.48%, 5/15/17 (a)			197		198,187
Series 2011-S1A, Class D, 3.10%, 5/15/17 (a)			175		175,521
Asset-Backed Securities		Par (000)		Value
Asset-Backed Securities (concluded)
Santander Drive Auto Receivables Trust (concluded):
Series 2011-S2A, Class C, 2.86%, 6/15/17 (a)	USD		511	$	515,497
Series 2012-1, Class B, 2.72%, 5/16/16			240		246,372
Series 2012-1, Class C, 3.78%, 11/15/17			325		341,443
SLM Student Loan Trust:
Series 2004-B, Class A2, 0.51%, 6/15/21 (b)			174		171,152
Series 2008-5, Class A3, 1.60%, 1/25/18 (b)			525		534,223
Series 2008-5, Class A4, 2.00%, 7/25/23 (b)			630		664,298
Series 2012-A, Class A1, 1.60%, 8/15/25 (a)(b)			296		300,469
Series 2012-A, Class A2, 3.83%, 1/17/45 (a)			345		378,332
Small Business Administration Participation Certificates, Series 1996-20K, Class 1, 6.95%, 11/01/16			137		145,843
Symphony CLO VII Ltd., Series 2011-7A, Class E, 3.90%, 7/28/21 (a)(b)			750		727,500
Venture CDO Ltd., Series 2012-12A, Class D, 4.01%, 2/28/24 (a)(b)			770		723,800
World Financial Network Credit Card Master Trust, Series 2012-C, Class C, 4.55%, 8/15/22			1,180		1,286,930
					31,215,210
Interest Only Asset-Backed Securities — 0.2%
Sterling Bank Trust, Series 2004-2, Class Note, 2.08%, 3/30/30 (a)			3,898		300,879
Sterling Coofs Trust, Series 2004-1, 2.36%, 4/15/29 (a)			5,591		408,845
					709,724
Total Asset-Backed Securities — 7.8%					31,924,934
Common Stocks (d)			Shares
Paper & Forest Products — 0.1%
NewPage Corp.			4,960		421,600
Software — 0.0%
Bankruptcy Management Solutions, Inc.			152		2
Total Common Stocks — 0.1%					421,602
Corporate Bonds			Par   (000)
Aerospace & Defense — 0.7%
Bombardier, Inc., 4.25%, 1/15/16 (a)	USD		340		352,750
Huntington Ingalls Industries, Inc., 7.13%, 3/15/21			230		250,700
United Technologies Corp. (e):
4.88%, 5/01/15			1,250		1,367,435
6.13%, 7/15/38			750		974,188
					2,945,073
Airlines — 0.7%
Continental Airlines Pass-Through Trust:
Series 2010-1, Class B, 6.00%, 1/12/19			571		588,248
Series 2012-3, Class C, 6.13%, 4/29/18			500		498,750
US Airways Pass-Through Trust, Series 2012-1, Class C, 9.13%, 10/01/15			1,553		1,661,710
					2,748,708
Auto Components — 1.1%
Icahn Enterprises LP:
4.00%, 8/15/13 (a)(b)(f)			2,900		2,907,250
4.00%, 8/15/13 (b)(f)			665		666,662
8.00%, 1/15/18			1,000		1,071,250
					4,645,162
Automobiles — 0.5%
Ford Motor Co., 4.75%, 1/15/43			2,005		1,904,311

See Notes to Financial Statements.

86 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

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

Corporate Bonds		Par (000)		Value
Building Products — 0.1%
Momentive Performance Materials, Inc., 8.88%, 10/15/20	USD		250	$	256,562
Capital Markets — 3.9%
CDP Financial, Inc., 5.60%, 11/25/39 (a)(e)			2,955		3,584,025
The Goldman Sachs Group, Inc. (e):
5.38%, 3/15/20			1,215		1,396,776
5.25%, 7/27/21			3,175		3,613,636
5.75%, 1/24/22			1,815		2,129,340
Lehman Brothers Holdings, Inc., 6.50%, 7/19/17 (d)(g)			225		—
Morgan Stanley:
4.20%, 11/20/14			680		712,632
4.00%, 7/24/15			400		422,112
6.25%, 8/28/17 (e)			1,925		2,233,427
Murray Street Investment Trust I, 4.65%, 3/09/17 (h)			1,640		1,795,772
					15,887,720
Chemicals — 1.4%
Axiall Corp., 4.88%, 5/15/23 (a)			248		251,720
The Dow Chemical Co., 4.13%, 11/15/21			350		378,147
Eagle Spinco, Inc., 4.63%, 2/15/21 (a)			528		536,580
Huntsman International LLC, 4.88%, 11/15/20 (a)			725		717,750
Methanex Corp., 3.25%, 12/15/19			2,074		2,107,825
Nufarm Australia Ltd., 6.38%, 10/15/19 (a)			240		254,400
Rockwood Specialties Group, Inc., 4.63%, 10/15/20			1,385		1,433,475
US Coatings Acquisition, Inc./Flash Dutch 2 BV, 7.38%, 5/01/21 (a)			151		156,285
					5,836,182
Commercial Banks — 3.1%
CIT Group, Inc.:
5.38%, 5/15/20			1,650		1,798,500
5.00%, 8/15/22			360		385,200
Depfa ACS Bank, 5.13%, 3/16/37 (a)			4,150		3,392,625
HSBC Bank Brasil SA—Banco Multiplo, 4.00%, 5/11/16 (a)(e)			1,400		1,456,000
HSBC Bank Plc, 3.10%, 5/24/16 (a)(e)			695		738,014
HSBC Holdings Plc, 6.10%, 1/14/42 (e)			305		392,960
Rabobank Nederland (e):
3.88%, 2/08/22			1,390		1,476,820
3.95%, 11/09/22			1,500		1,524,342
Wells Fargo & Co., 3.50%, 3/08/22 (e)			1,390		1,466,087
					12,630,548
Commercial Services & Supplies — 1.0%
ADS Waste Holdings, Inc., 8.25%, 10/01/20 (a)			245		263,375
The ADT Corp., 4.88%, 7/15/42 (a)			539		513,286
Aviation Capital Group Corp., 4.63%, 1/31/18 (a)			650		660,118
Clean Harbors, Inc., 5.25%, 8/01/20			390		401,700
HDTFS, Inc. (a):
5.88%, 10/15/20			230		239,200
6.25%, 10/15/22			385		413,875
Mobile Mini, Inc., 7.88%, 12/01/20			1,320		1,468,500
West Corp., 8.63%, 10/01/18			135		143,775
					4,103,829
Communications Equipment — 1.2%
ADC Telecommunications, Inc., 3.50%, 7/15/15 (f)			4,340		4,342,170
Zayo Group LLC/Zayo Capital, Inc., 8.13%, 1/01/20			530		592,275
					4,934,445
Construction & Engineering — 0.1%
ABB Finance USA, Inc., 4.38%, 5/08/42			194		203,768
Construction Materials — 0.6%
HD Supply, Inc. (a):
8.13%, 4/15/19			570		641,962
7.50%, 7/15/20			1,544		1,545,930
11.50%, 7/15/20			250		288,125
Corporate Bonds		Par (000)		Value
Construction Materials (concluded)
Lafarge SA, 7.13%, 7/15/36	USD		135	$	141,075
					2,617,092
Consumer Finance — 1.1%
Discover Financial Services, 3.85%, 11/21/22 (a)			250		255,733
Ford Motor Credit Co. LLC:
6.63%, 8/15/17			280		326,984
8.13%, 1/15/20			1,265		1,593,667
4.25%, 9/20/22			800		824,824
SLM Corp.:
6.25%, 1/25/16			651		704,708
Series A, 0.60%, 1/27/14 (b)			600		595,653
Toll Brothers Finance Corp., 5.88%, 2/15/22			345		384,940
					4,686,509
Containers & Packaging — 0.7%
Ardagh Packaging Finance Plc (a):
7.38%, 10/15/17	EUR		425		602,022
7.38%, 10/15/17	USD		200		217,750
4.88%, 11/15/22			209		205,865
Crown Americas LLC/Crown Americas Capital Corp. III, 6.25%, 2/01/21			61		66,490
Crown Americas LLC/Crown Americas Capital Corp. IV, 4.50%, 1/15/23 (a)			662		647,105
Sealed Air Corp. (a):
6.50%, 12/01/20			550		598,125
8.38%, 9/15/21			225		256,500
Smurfit Kappa Acquisitions, 4.88%, 9/15/18 (a)			410		420,250
					3,014,107
Diversified Consumer Services — 0.5%
313 Group, Inc., 6.38%, 12/01/19 (a)			634		618,150
Service Corp. International, 4.50%, 11/15/20			1,240		1,235,350
					1,853,500
Diversified Financial Services — 6.7%
Aircastle Ltd., 6.25%, 12/01/19			705		759,638
Ally Financial, Inc.:
8.30%, 2/12/15			860		956,750
5.50%, 2/15/17			1,500		1,626,261
6.25%, 12/01/17			160		178,681
8.00%, 3/15/20			560		687,400
8.00%, 11/01/31			300		376,875
Bank of America Corp. (e):
5.63%, 7/01/20			1,100		1,287,086
3.30%, 1/11/23			5,010		4,993,988
Capital One Financial Corp., 4.75%, 7/15/21			975		1,109,745
FMR LLC, 4.95%, 2/01/33 (a)(e)			1,150		1,167,765
General Electric Capital Corp., 6.75%, 3/15/32 (e)			2,500		3,199,692
JPMorgan Chase & Co., 6.30%, 4/23/19 (e)			1,375		1,684,196
JPMorgan Chase Bank NA, 6.00%, 10/01/17 (e)			2,045		2,421,120
Moody’s Corp., 4.50%, 9/01/22			900		904,224
Reynolds Group Issuer, Inc.:
7.88%, 8/15/19			560		618,800
5.75%, 10/15/20			1,000		1,032,500
6.88%, 2/15/21			1,255		1,339,713
Spirit Issuer Plc, 5.86%, 12/28/21	GBP		1,620		2,371,604
WMG Acquisition Corp., 11.50%, 10/01/18	USD		562		652,623
					27,368,661
Diversified Telecommunication Services — 2.8%
Level 3 Financing, Inc.:
8.13%, 7/01/19			671		731,390
8.63%, 7/15/20			580		643,800
Lynx I Corp., 5.38%, 4/15/21 (a)			395		404,875
Telecom Italia Capital SA, 4.95%, 9/30/14			4,375		4,528,125
Verizon Communications, Inc. (e):
3.50%, 11/01/21			500		525,624
6.40%, 2/15/38			3,396		4,269,071
Windstream Corp., 7.88%, 11/01/17			200		226,500
					11,329,385

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 87

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

Corporate Bonds		Par (000)		Value
Electric Utilities — 6.5%
The Cleveland Electric Illuminating Co.:
8.88%, 11/15/18	USD		121	$	161,303
5.95%, 12/15/36			217		246,849
CMS Energy Corp., 5.05%, 3/15/22			917		1,031,912
Duke Energy Carolinas LLC:
6.10%, 6/01/37			325		410,905
6.00%, 1/15/38 (e)			850		1,091,140
4.25%, 12/15/41 (e)			375		393,690
E.ON International Finance BV, 6.65%, 4/30/38 (a)(e)			1,575		2,109,508
Electricite de France SA, 5.60%, 1/27/40 (a)(e)			1,400		1,582,339
Florida Power Corp.:
6.35%, 9/15/37 (e)			1,450		1,908,913
6.40%, 6/15/38			340		453,978
Georgia Power Co., 3.00%, 4/15/16 (e)			800		854,020
Hydro-Quebec (e):
9.40%, 2/01/21			390		582,362
8.40%, 1/15/22			730		1,043,297
8.05%, 7/07/24			1,900		2,773,230
Jersey Central Power & Light Co., 7.35%, 2/01/19			245		313,698
Nisource Finance Corp.:
6.40%, 3/15/18			280		336,096
5.25%, 2/15/43			500		530,513
Ohio Power Co., Series D, 6.60%, 3/01/33			1,500		1,933,882
PacifiCorp., 6.25%, 10/15/37 (e)			650		870,443
Public Service Co. of Colorado, 6.25%, 9/01/37 (e)			1,350		1,819,403
Southern California Edison Co. (e):
5.63%, 2/01/36			675		837,566
Series 08-A, 5.95%, 2/01/38			1,100		1,428,360
The Tokyo Electric Power Co., Inc., 4.50%, 3/24/14	EUR		1,000		1,333,358
Virginia Electric and Power Co., Series A, 6.00%, 5/15/37 (e)	USD		1,920		2,508,785
					26,555,550
Electrical Equipment — 0.2%
GrafTech International Ltd., 6.38%, 11/15/20 (a)			580		616,250
Energy Equipment & Services — 3.1%
Calfrac Holdings LP, 7.50%, 12/01/20 (a)			565		567,825
Ensco Plc:
3.25%, 3/15/16			160		170,029
4.70%, 3/15/21			1,745		1,952,852
EOG Resources, Inc., 2.63%, 3/15/23 (e)			1,898		1,882,588
FTS International Services LLC/FTS International Bonds, Inc., 8.13%, 11/15/18 (a)			807		835,245
Genesis Energy LP, 5.75%, 2/15/21 (a)			238		246,330
MEG Energy Corp., 6.50%, 3/15/21 (a)			560		590,800
Noble Holding International Ltd., 5.25%, 3/15/42			350		353,231
Peabody Energy Corp.:
6.00%, 11/15/18			430		456,875
6.25%, 11/15/21			2,180		2,267,200
Seadrill Ltd., 5.63%, 9/15/17 (a)			1,590		1,609,875
Tervita Corp., 8.00%, 11/15/18 (a)			519		534,570
Transocean, Inc.:
5.05%, 12/15/16			850		946,873
6.50%, 11/15/20			350		407,990
					12,822,283
Food Products — 1.4%
Darling International, Inc., 8.50%, 12/15/18			335		381,063
Kraft Foods Group, Inc.:
5.38%, 2/10/20			1,570		1,874,520
5.00%, 6/04/42			997		1,088,216
Mondelez International, Inc. (FKA Kraft Foods, Inc.), 5.38%, 2/10/20			1,430		1,705,346
Post Holdings, Inc., 7.38%, 2/15/22			749		808,920
					5,858,065
Corporate Bonds		Par (000)		Value
Gas Utilities — 0.2%
CenterPoint Energy Resources Corp., 5.85%, 1/15/41	USD		700	$	867,509
Health Care Equipment & Supplies — 0.5%
Boston Scientific Corp., 6.25%, 11/15/15			1,260		1,417,862
DJO Finance LLC, 7.75%, 4/15/18			40		39,800
Teleflex, Inc., 6.88%, 6/01/19			385		418,687
					1,876,349
Health Care Providers & Services — 4.4%
Aviv Healthcare Properties LP, 7.75%, 2/15/19			535		573,787
CHS/Community Health Systems, Inc., 5.13%, 8/15/18			400		420,500
ConvaTec Healthcare E SA, 7.38%, 12/15/17 (a)	EUR		494		683,638
HCA, Inc.:
8.50%, 4/15/19	USD		17		18,828
6.50%, 2/15/20			1,895		2,122,400
7.88%, 2/15/20			215		238,381
7.25%, 9/15/20			907		1,006,770
4.75%, 5/01/23			1,310		1,306,725
IASIS Healthcare LLC, 8.38%, 5/15/19			550		566,500
INC Research LLC, 11.50%, 7/15/19 (a)			465		496,388
inVentiv Health, Inc. (a):
9.00%, 1/15/18			300		312,750
11.00%, 8/15/18			40		34,700
Omnicare, Inc., 7.75%, 6/01/20			805		893,550
Symbion, Inc., 8.00%, 6/15/16			455		475,475
Tenet Healthcare Corp.:
6.25%, 11/01/18			660		730,950
8.88%, 7/01/19			1,266		1,430,580
4.50%, 4/01/21 (a)			588		579,915
UnitedHealth Group, Inc., 2.88%, 3/15/22 (e)			2,000		2,019,720
WellPoint, Inc., 4.65%, 1/15/43 (e)			3,995		4,040,311
		��			17,951,868
Health Care Technology — 0.6%
Amgen, Inc. (e):
6.40%, 2/01/39			750		948,013
5.15%, 11/15/41			1,500		1,642,570
					2,590,583
Hotels, Restaurants & Leisure — 1.7%
Caesars Operating Escrow LLC, 9.00%, 2/15/20 (a)			398		393,025
El Dorado Resorts LLC, 8.63%, 6/15/19 (a)			180		178,875
MCE Finance Ltd., 5.00%, 2/15/21 (a)			941		941,000
Six Flags Entertainment Corp., 5.25%, 1/15/21 (a)			859		841,820
The Unique Pub Finance Co. Plc:
Series A3, 6.54%, 3/30/21	GBP		900		1,361,932
Series A4, 5.66%, 6/30/27			1,322		1,860,138
Series N, 6.46%, 3/30/32			1,195		1,350,592
					6,927,382
Household Durables — 0.4%
Standard Pacific Corp., 10.75%, 9/15/16	USD		1,000		1,245,000
United Rentals North America, Inc., 5.75%, 7/15/18			194		208,792
					1,453,792
Household Products — 0.2%
Ontex IV SA, 7.50%, 4/15/18 (a)	EUR		190		257,977
Spectrum Brands Escrow Corp. (a):
6.38%, 11/15/20	USD		200		212,750
6.63%, 11/15/22			275		296,312
					767,039
Independent Power Producers & Energy Traders — 0.7%
Energy Future Intermediate Holding Co. LLC, 10.00%, 12/01/20			1,955		2,218,925
NRG Energy, Inc., 6.63%, 3/15/23 (a)			435		463,275
					2,682,200

See Notes to Financial Statements.

88 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

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

Corporate Bonds		Par (000)		Value
Industrial Conglomerates — 0.0%
Smiths Group Plc, 3.63%, 10/12/22 (a)	USD		180	$	178,797
Insurance — 4.7%
Alliant Holdings I, Inc., 7.88%, 12/15/20 (a)			608		611,040
Allianz Finance II BV, 5.75%, 7/08/41	EUR		500		733,220
American International Group, Inc. (e):
3.80%, 3/22/17	USD		5,580		6,058,747
5.45%, 5/18/17			800		917,591
AXA SA, 5.25%, 4/16/40	EUR		250		338,835
Hartford Financial Services Group, Inc.:
6.00%, 1/15/19	USD		345		407,716
5.13%, 4/15/22			930		1,071,440
Liberty Mutual Group, Inc., 6.50%, 5/01/42 (a)			1,000		1,135,115
Lincoln National Corp., 6.25%, 2/15/20			630		764,436
Manulife Financial Corp., 3.40%, 9/17/15			1,625		1,710,265
MetLife Global Funding I, 5.13%, 6/10/14 (a)(e)			775		819,711
Montpelier Re Holdings Ltd., 4.70%, 10/15/22			450		453,858
MPL 2 Acquisition Canco, Inc., 9.88%, 8/15/18 (a)			340		336,600
Muenchener Rueckversicherungs AG, 6.00%, 5/26/41 (b)	EUR		200		302,077
Prudential Financial, Inc. (e):
4.75%, 9/17/15	USD		1,220		1,335,510
7.38%, 6/15/19			300		384,628
5.38%, 6/21/20			250		294,761
4.50%, 11/15/20			400		448,291
5.70%, 12/14/36			950		1,083,884
					19,207,725
Internet Software & Services — 0.0%
Equinix, Inc., 4.88%, 4/01/20			87		87,000
IT Services — 0.6%
First Data Corp. (a):
7.38%, 6/15/19			205		215,506
8.88%, 8/15/20			1,000		1,105,000
6.75%, 11/01/20			680		697,850
8.25%, 1/15/21			30		30,675
SunGard Data Systems, Inc., 7.38%, 11/15/18			490		526,138
					2,575,169
Life Sciences Tools & Services — 0.1%
Agilent Technologies, Inc., 3.20%, 10/01/22			250		249,831
Machinery — 0.3%
UR Merger Sub Corp.:
7.38%, 5/15/20			495		542,025
7.63%, 4/15/22			455		503,912
					1,045,937
Marine — 0.3%
Nakilat, Inc., Series A, 6.07%, 12/31/33 (a)(e)			1,100		1,336,500
Media — 7.1%
Affinion Group, Inc., 7.88%, 12/15/18 (e)			730		554,800
AMC Networks, Inc.:
7.75%, 7/15/21			320		363,200
4.75%, 12/15/22			343		341,714
Cinemark USA, Inc., 5.13%, 12/15/22 (a)			175		175,875
Clear Channel Communications, Inc., 9.00%, 12/15/19 (a)			306		284,580
Clear Channel Worldwide Holdings, Inc. (a):
6.50%, 11/15/22			671		701,195
6.50%, 11/15/22			1,814		1,909,235
Comcast Cable Communications Holdings, Inc., 9.46%, 11/15/22			2,000		3,033,746
Cox Communications, Inc. (a):
6.95%, 6/01/38			1,000		1,293,580
8.38%, 3/01/39			1,735		2,562,126
DIRECTV Holdings LLC:
6.38%, 3/01/41			260		285,254
5.15%, 3/15/42			2,100		2,021,063
Corporate Bonds		Par (000)		Value
Media (concluded)
Intelsat Luxembourg SA:
11.25%, 2/04/17	USD		750	$	796,875
11.50%, 2/04/17			420		446,775
NBC Universal Media LLC (e):
5.15%, 4/30/20			1,974		2,343,325
4.38%, 4/01/21			1,015		1,143,202
The New York Times Co., 6.63%, 12/15/16			1,800		1,966,500
Omnicom Group, Inc., 3.63%, 5/01/22			2,355		2,398,544
Time Warner Cable, Inc.:
7.30%, 7/01/38			970		1,215,095
5.88%, 11/15/40			460		494,080
5.50%, 9/01/41			920		963,869
Time Warner, Inc.:
4.70%, 1/15/21			1,000		1,122,846
6.10%, 7/15/40			615		719,519
Unitymedia Hessen GmbH & Co. KG, 5.50%, 1/15/23 (a)			250		252,500
Virgin Media Secured Finance Plc:
6.50%, 1/15/18			330		352,275
7.00%, 1/15/18	GBP		792		1,276,598
					29,018,371
Metals & Mining — 4.3%
Alcoa, Inc., 5.40%, 4/15/21	USD		1,450		1,523,909
ArcelorMittal:
9.50%, 2/15/15			395		445,856
4.25%, 2/25/15			174		179,660
4.25%, 8/05/15			234		242,270
4.25%, 3/01/16			175		180,250
5.00%, 2/25/17			245		254,923
6.13%, 6/01/18			314		338,586
6.75%, 2/25/22 (e)			252		277,479
Barrick Gold Corp., 2.90%, 5/30/16			1,685		1,770,254
Corp. Nacional del Cobre de Chile, 3.00%, 7/17/22 (a)(e)			1,566		1,544,785
Falconbridge Ltd., 6.20%, 6/15/35			1,550		1,688,632
Freeport-McMoRan Copper & Gold, Inc.:
3.55%, 3/01/22			540		537,202
5.45%, 3/15/43 (a)			450		447,948
New Gold, Inc. (a):
7.00%, 4/15/20			105		113,400
6.25%, 11/15/22			435		457,838
Newcrest Finance Property Ltd., 4.45%, 11/15/21 (a)			475		504,598
Novelis, Inc., 8.75%, 12/15/20 (e)			4,105		4,597,600
Teck Resources Ltd., 5.38%, 10/01/15			2,350		2,589,063
					17,694,253
Multiline Retail — 0.3%
Dufry Finance SCA, 5.50%, 10/15/20 (a)			1,260		1,313,550
Oil, Gas & Consumable Fuels — 11.3%
Access Midstream Partners LP, 6.13%, 7/15/22			400		429,000
Anadarko Petroleum Corp., 5.95%, 9/15/16			1,916		2,203,042
BP Capital Markets Plc, 3.13%, 10/01/15			330		349,598
Burlington Resources Finance Co., 7.40%, 12/01/31 (e)			950		1,328,029
Carrizo Oil & Gas, Inc., 7.50%, 9/15/20			400		420,000
Cenovus Energy, Inc., 6.75%, 11/15/39			750		988,233
ConocoPhillips Canada Funding Co., 5.95%, 10/15/36			150		190,173
CONSOL Energy, Inc.:
8.00%, 4/01/17			514		558,975
8.25%, 4/01/20			166		183,015
Denbury Resources, Inc., 4.63%, 7/15/23			627		615,244
El Paso Natural Gas Co. LLC, 8.38%, 6/15/32			275		390,764
El Paso Pipeline Partners Operating Co. LLC, 6.50%, 4/01/20			240		289,967

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 89

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

Corporate Bonds		Par (000)		Value
Oil, Gas & Consumable Fuels (concluded)
Energy Transfer Partners LP, 6.50%, 2/01/42	USD		500	$	577,145
Energy XXI Gulf Coast, Inc., 9.25%, 12/15/17			455		514,150
Enterprise Products Operating LLC:
4.05%, 2/15/22			1,250		1,359,645
6.13%, 10/15/39			700		825,763
5.95%, 2/01/41			500		585,478
Series L, 6.30%, 9/15/17			600		723,800
KeySpan Gas East Corp., 5.82%, 4/01/41 (a)(e)			505		633,385
Kinder Morgan Energy Partners LP:
5.95%, 2/15/18			1,300		1,550,585
6.50%, 9/01/39			3,000		3,627,495
6.55%, 9/15/40			110		134,430
6.38%, 3/01/41			160		192,734
Kodiak Oil & Gas Corp., 8.13%, 12/01/19			110		123,750
Linn Energy LLC, 6.25%, 11/01/19 (a)			355		362,100
Marathon Petroleum Corp., 6.50%, 3/01/41			1,052		1,321,916
MarkWest Energy Partners LP, 4.50%, 7/15/23			206		201,365
MidAmerican Energy Co., 5.80%, 10/15/36			800		1,003,350
MidAmerican Energy Holdings Co.:
5.95%, 5/15/37			950		1,174,681
6.50%, 9/15/37			2,115		2,774,231
Newfield Exploration Co., 5.63%, 7/01/24			710		741,950
Nexen, Inc.:
6.40%, 5/15/37			400		506,599
7.50%, 7/30/39			670		960,180
Offshore Group Investments Ltd., 11.50%, 8/01/15			163		177,670
PBF Holding Co. LLC, 8.25%, 2/15/20 (a)			110		119,625
PDC Energy, Inc., 7.75%, 10/15/22 (a)			300		317,250
Petrobras International Finance Co.:
3.88%, 1/27/16			1,335		1,395,514
5.75%, 1/20/20			1,760		1,953,714
Pioneer Natural Resources Co., 3.95%, 7/15/22			350		364,750
Plains Exploration & Production Co., 6.88%, 2/15/23			950		1,094,875
Premier Oil Plc, 5.00%, 6/09/18			1,900		1,992,625
Range Resources Corp., 5.75%, 6/01/21			941		1,002,165
Sabine Pass Liquefaction LLC, 5.63%, 2/01/21 (a)			2,250		2,323,125
Sabine Pass Liquified Natural Gas LP:
7.50%, 11/30/16			1,120		1,237,600
6.50%, 11/01/20 (a)			475		501,125
SandRidge Energy, Inc., 7.50%, 2/15/23			367		384,433
Tennessee Gas Pipeline Co. LLC, 7.50%, 4/01/17			1,030		1,266,257
Tesoro Corp., 5.38%, 10/01/22			360		374,400
Western Gas Partners LP:
5.38%, 6/01/21			715		808,358
4.00%, 7/01/22			200		207,069
The Williams Cos., Inc., Series A, 7.50%, 1/15/31			2,500		3,077,585
					46,438,912
Paper & Forest Products — 0.5%
Clearwater Paper Corp., 7.13%, 11/01/18			1,000		1,082,500
International Paper Co.:
7.50%, 8/15/21			75		97,868
4.75%, 2/15/22			420		471,176
6.00%, 11/15/41			435		507,082
NewPage Corp., 11.38%, 12/31/14 (d)(g)			1,146		—
					2,158,626
Pharmaceuticals — 0.4%
Capsugel Finance Co. SCA, 9.88%, 8/01/19 (a)	EUR		200		293,748
Jaguar Holding Co. II/Jaguar Merger Sub, Inc., 9.50%, 12/01/19 (a)	USD		520		596,700
Valeant Pharmaceuticals International, 6.38%, 10/15/20 (a)			575		618,844
					1,509,292
Corporate Bonds		Par (000)		Value
Real Estate Investment Trusts (REITs) — 0.7%
Felcor Lodging LP, 5.63%, 3/01/23 (a)	USD		247	$	248,544
Simon Property Group LP, 4.75%, 3/15/42			835		885,314
Ventas Realty LP/Ventas Capital Corp., 4.75%, 6/01/21			275		304,264
Vornado Realty LP, 5.00%, 1/15/22			1,190		1,321,299
					2,759,421
Real Estate Management & Development — 0.8%
Lennar Corp., 4.75%, 11/15/22 (a)			440		425,150
Mattamy Group Corp., 6.50%, 11/15/20 (a)			390		388,538
Punch Taverns Finance Plc, Series A2R, 6.82%, 7/15/20	GBP		704		1,076,013
Realogy Corp. (a)(e):
7.88%, 2/15/19	USD		369		401,287
7.63%, 1/15/20			520		586,300
WEA Finance LLC, 4.63%, 5/10/21 (a)			305		338,649
					3,215,937
Road & Rail — 0.7%
Burlington Northern Santa Fe LLC, 5.75%, 5/01/40			940		1,135,144
The Hertz Corp., 7.38%, 1/15/21			1,450		1,598,625
					2,733,769
Semiconductors & Semiconductor Equipment — 0.2%
NXP BV/NXP Funding LLC, 5.75%, 2/15/21 (a)			470		480,575
Spansion LLC, 7.88%, 11/15/17			390		411,450
					892,025
Software — 0.5%
IAC/InterActiveCorp, 4.75%, 12/15/22 (a)			598		584,545
Nuance Communications, Inc., 5.38%, 8/15/20 (a)			555		561,938
Oracle Corp., 5.38%, 7/15/40 (e)			800		965,591
					2,112,074
Specialty Retail — 0.4%
The Home Depot, Inc., 5.88%, 12/16/36 (e)			830		1,052,685
QVC, Inc. (a):
7.50%, 10/01/19			395		435,958
7.38%, 10/15/20			275		304,821
5.13%, 7/02/22			35		37,009
					1,830,473
Textiles, Apparel & Luxury Goods — 0.1%
PVH Corp., 4.50%, 12/15/22			487		480,304
Thrifts & Mortgage Finance — 0.3%
Radian Group, Inc., 5.38%, 6/15/15			1,400		1,400,000
Tobacco — 1.2%
Altria Group, Inc.:
9.95%, 11/10/38			800		1,330,455
10.20%, 2/06/39			1,389		2,354,340
Reynolds American, Inc., 4.75%, 11/01/42			1,050		1,027,370
					4,712,165
Wireless Telecommunication Services — 2.3%
America Movil SAB de CV, 2.38%, 9/08/16 (e)			800		828,339
Crown Castle International Corp., 5.25%, 1/15/23 (a)			465		476,625
Crown Castle Towers LLC, 6.11%, 1/15/40 (a)			1,595		1,936,931
Digicel Group Ltd., 8.25%, 9/30/20 (a)			405		431,933
Digicel Ltd. (a):
8.25%, 9/01/17			150		158,250
6.00%, 4/15/21 (c)			495		493,763
MetroPCS Wireless, Inc., 6.63%, 11/15/20			660		690,525
Rogers Communications, Inc., 7.50%, 8/15/38			1,175		1,625,557
SBA Tower Trust, 5.10%, 4/15/42 (a)			360		403,894
Sprint Capital Corp.:
6.88%, 11/15/28			490		494,900
8.75%, 3/15/32			350		411,250

See Notes to Financial Statements.

90 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

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

Corporate Bonds		Par (000)			Value
Wireless Telecommunication Services (concluded)
Sprint Nextel Corp. (a):
9.00%, 11/15/18	USD		530		$	657,200
7.00%, 3/01/20			770			900,900
						9,510,067
Total Corporate Bonds — 83.2%						340,394,630
Foreign Agency Obligations — 0.1%
Italy Government International Bond, 5.38%, 6/15/33			470			477,962
Non-Agency Mortgage-Backed Securities
Collateralized Mortgage Obligations — 2.4%
Banc of America Funding Corp., Series 2007-2, Class 1A2, 6.00%, 3/25/37			953			860,374
Collateralized Mortgage Obligation Trust, Series 40, Class R, 580.50%, 4/01/18			—	(i)		34
Countrywide Alternative Loan Trust:
Series 2005-64CB, Class 1A15, 5.50%, 12/25/35			1,429			1,260,516
Series 2006-OA21, Class A1, 0.39%, 3/20/47 (b)			815			554,339
Countrywide Home Loan Mortgage Pass-Through Trust:
Series 2006-OA5, Class 2A1, 0.40%, 4/25/46 (b)			319			215,021
Series 2007-10, Class A22, 6.00%, 7/25/37			528			471,869
Credit Suisse Mortgage Capital Certificates, Series 2011-2R, Class 2A1, 2.63%, 7/27/36 (a)(b)			1,214			1,195,825
GMAC Mortgage Corp. Loan Trust, Series 2005-AR3, Class 5A1, 5.20%, 6/19/35 (b)			907			920,155
Homebanc Mortgage Trust, Series 2006-2, Class A1, 0.38%, 12/25/36 (b)			567			460,456
IndyMac IMJA Mortgage Loan Trust, Series 2007-A1, Class A4, 6.00%, 8/25/37			771			658,968
Merrill Lynch Mortgage Investors, Inc., Series 2006-A3, Class 3A1, 2.97%, 5/25/36 (b)			637			507,982
Monastery BV, Series 2004-I, Class A2, 0.52%, 3/17/37 (b)	EUR		957			1,070,896
Residential Funding Securities LLC, Series 2003-RM2, Class AI5, 8.50%, 5/25/33	USD		1,140			1,203,093
WaMu Mortgage Pass-Through Certificates, Series 2007-OA4, Class 1A, 0.94%, 5/25/47 (b)			352			298,791
Wells Fargo Mortgage-Backed Securities Trust, Series 2007-10, Class 1A21, 6.00%, 7/25/37			46			45,447
						9,723,766
Commercial Mortgage-Backed Securities — 12.7%
Banc of America Merrill Lynch Commercial Mortgage, Inc.:
Series 2006-6, Class A2, 5.31%, 10/10/45			1,351			1,402,116
Series 2007-1, Class A4, 5.45%, 1/15/49			500			570,794
Series 2007-2, Class A4, 5.63%, 4/10/49 (b)			750			868,175
Bear Stearns Commercial Mortgage Securities, Series 2005-PWR9, Class A4A, 4.87%, 9/11/42			800			867,762
Citigroup Commercial Mortgage Trust, Series 2008-C7, Class A4, 6.06%, 12/10/49 (b)			1,200			1,424,825
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2006-CD3, Class AM, 5.65%, 10/15/48			1,100			1,236,152
Commercial Mortgage Loan Trust, Series 2008-LS1, Class A4B, 6.01%, 12/10/49 (b)			1,515			1,776,592

Non-Agency Mortgage-Backed Securities		Par (000)		Value
Commercial Mortgage-Backed Securities (concluded)
Commercial Mortgage Pass-Through Certificates:
Series 2006-C7, Class AM, 5.77%, 6/10/46 (b)	USD		1,750	$	1,924,666
Series 2013-LC6, Class B, 3.74%, 1/10/46			695		715,320
Series 2013-LC6, Class D, 4.29%, 1/10/46 (a)(b)			835		762,006
Credit Suisse Mortgage Capital Certificates:
Series 2006-C3, Class AM, 5.80%, 6/15/38 (b)			1,000		1,098,945
Series 2006-C5, Class AM, 5.34%, 12/15/39			1,750		1,925,779
Series 2010-RR2, Class 2A, 5.76%, 9/15/39 (a)(b)			1,010		1,159,595
CS First Boston Mortgage Securities Corp., Series 2005-C3, Class AJ, 4.77%, 7/15/37			705		730,171
DBRR Trust, Series 2011-C32, Class A3A, 5.74%, 6/17/49 (a)(b)			365		417,394
GMAC Commercial Mortgage Securities, Inc., Series 2004-C3, Class A4, 4.55%, 12/10/41			456		457,723
Greenwich Capital Commercial Funding Corp.:
Series 2006-GG7, Class A4, 5.86%, 7/10/38 (b)			1,169		1,322,739
Series 2007-GG9, Class A4, 5.44%, 3/10/39			2,165		2,466,703
GS Mortgage Securities Corp. II:
Series 2007-GG10, Class A4, 5.79%, 8/10/45 (b)			430		491,372
Series 2013-GC10, Class B, 3.68%, 2/10/46 (a)			1,255		1,290,985
JPMorgan Chase Commercial Mortgage Securities Corp.:
Series 2004-LN2, Class A2, 5.12%, 7/15/41			820		859,954
Series 2006-CB14, Class AM, 5.45%, 12/12/44 (b)			330		356,979
Series 2006-CB16, Class AJ, 5.62%, 5/12/45			720		684,813
LB-UBS Commercial Mortgage Trust (b):
Series 2004-C4, Class A3, 5.39%, 6/15/29			342		349,047
Series 2004-C8, Class C, 4.93%, 12/15/39			1,385		1,456,181
Series 2007-C6, Class A4, 5.86%, 7/15/40			5,225		6,051,997
Series 2007-C7, Class A3, 5.87%, 9/15/45			1,460		1,685,532
Morgan Stanley Capital I Trust (b):
Series 2007-HQ11, Class A4, 5.45%, 2/12/44			4,000		4,577,876
Series 2007-XLC1, Class A2, 0.56%, 7/17/17			127		122,056
Morgan Stanley Reremic Trust, Series 2011, Class A, 2.50%, 3/23/51 (a)			600		605,727
RCMC LLC, Series 2012-CRE1, Class A, 5.62%, 11/15/44 (a)			984		985,517
Titan Europe Plc, Series 2007-1X, Class A, 0.76%, 1/20/17 (b)	GBP		1,607		2,048,313
Wachovia Bank Commercial Mortgage Trust:
Series 2006-C28, Class A2, 5.50%, 10/15/48	USD		4,203		4,247,948
Series 2007-C33, Class A4, 5.92%, 2/15/51 (b)			2,285		2,637,290
WF-RBS Commercial Mortgage Trust:
Series 2012-C8, Class B, 4.31%, 8/15/45			700		758,769
Series 2012-C8, Class C, 4.88%, 8/15/45 (b)			900		984,305
Series 2013-C11, Class D, 4.19%, 3/15/45 (a)(b)			800		764,750
					52,086,868
Interest Only Collateralized Mortgage Obligations — 0.0%
GSMPS Mortgage Loan Trust, Series 1998-5, 0.01%, 6/19/27 (a)(b)			1,920		39,254
Interest Only Commercial Mortgage-Backed Securities — 1.4%
Morgan Stanley Bank of America Merrill Lynch Trust, Series 2012-C5, Class XA, 1.93%, 8/15/45 (a)(b)			15,886		1,784,893
Morgan Stanley Capital I Trust, Series 2012-C4, Class XA, 2.69%, 3/15/45 (a)(b)			9,551		1,395,889

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 91

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

Non-Agency Mortgage-Backed Securities		Par (000)		Value
Interest Only Commercial Mortgage-Backed Securities (concluded)
WF-RBS Commercial Mortgage Trust, Class XA (a)(b):
Series 2012-C8, 2.25%, 8/15/45	USD		6,079	$	826,603
Series 2012-C9, 2.28%, 11/15/45			10,812		1,548,255
					5,555,640
Total Non-Agency Mortgage-Backed Securities — 16.5%					67,405,528
Preferred Securities
Capital Trusts
Capital Markets — 0.0%
State Street Capital Trust IV, 1.31%, 6/01/67 (b)			70		56,175
Commercial Banks — 0.1%
Fifth Third Capital Trust IV, 6.50%, 4/15/67 (b)			505		505,631
Diversified Financial Services — 1.0%
JPMorgan Chase & Co., Series 1, 7.90% (b)(j)			3,500		4,036,718
Electric Utilities — 0.5%
Electricite de France SA, 5.25% (a)(b)(j)			2,100		2,067,450
Insurance — 2.4%
The Allstate Corp., 6.50%, 5/15/67 (b)			2,150		2,322,000
American International Group, Inc., 8.18%, 5/15/68 (b)			195		257,644
Lincoln National Corp., 6.05%, 4/20/67 (b)			750		757,500
MetLife Capital Trust IV, 7.88%, 12/15/67 (a)			645		796,575
MetLife, Inc., 6.40%, 12/15/66			3,500		3,783,790
Swiss Re Capital I LP, 6.85% (a)(b)(j)			1,060		1,120,950
XL Group Plc, Series E, 6.50% (b)(j)			810		789,750
					9,828,209
Total Capital Trusts — 4.0%					16,494,183
Preferred Stocks			Shares
Commercial Banks — 1.0%
US Bancorp, Series G, 6.00% (b)			150,000		4,057,500
Thrifts & Mortgage Finance — 0.1%
Fannie Mae (b)(d):
Series O, 7.00%			40,000		154,000
Series S, 7.75%			10,000		20,400
					174,400
Total Preferred Stocks — 1.1%					4,231,900
Trust Preferreds
Commercial Banks — 0.1%
Citigroup Capital XIII, 7.88%, 10/30/40 (b)			14,810		415,953
Total Preferred Securities — 5.2%					21,142,036
Taxable Municipal Bonds			Par   (000)
City of Detroit Michigan, GO, Capital Improvement, Limited Tax, Series A-2, 8.00%, 4/01/14	USD		1,525		1,454,347
District of Columbia, Refunding RB, Howard University, Series B, 7.63%, 10/01/35			1,000		1,233,940
East Bay Municipal Utility District, RB, Build America Bonds, 5.87%, 6/01/40			950		1,245,697
Indianapolis Local Public Improvement Bond Bank, RB, Build America Bonds, 6.12%, 1/15/40			1,260		1,645,862
Metropolitan Transportation Authority, RB, Build America Bonds, 7.34%, 11/15/39			670		986,957

Taxable Municipal Bonds		Par (000)			Value
Municipal Electric Authority of Georgia Plant Vogtle Units 3 & 4, Refunding RB, Build America Bonds, 7.06%, 4/01/57	USD		1,000		$	1,144,870
New York City Municipal Water Finance Authority, Refunding RB, Second General Resolution:
Series EE, 5.38%, 6/15/43			385			449,618
Series EE, 5.50%, 6/15/43			465			547,500
Series GG, Build America Bonds, 5.72%, 6/15/42			690			895,572
New York State Dormitory Authority, RB, Build America Bonds:
5.63%, 3/15/39			550			668,624
5.60%, 3/15/40			950			1,188,821
Port Authority of New York & New Jersey, RB, Consolidated, 159th Series, 6.04%, 12/01/29			395			507,338
State of California, GO, Build America Bonds:
7.63%, 3/01/40			860			1,252,968
Various Purpose, 7.55%, 4/01/39			140			203,202
State of Illinois, GO, Pension Funding, 5.10%, 6/01/33			1,000			991,140
University of California, RB, Build America Bonds, 5.95%, 5/15/45			440			537,693
Total Taxable Municipal Bonds — 3.6%						14,954,149
US Government Sponsored Agency Securities
Agency Obligations — 4.0%
Fannie Mae (e):
1.94%, 10/09/19 (k)			7,305			6,432,725
5.63%, 7/15/37			825			1,155,230
Federal Home Loan Bank (e):
5.25%, 12/09/22			700			902,703
5.37%, 9/09/24			1,100			1,422,983
Resolution Funding Corp., 3.15%, 4/15/30 (k)			6,055			3,542,986
Tennessee Valley Authority, 5.25%, 9/15/39 (e)			2,405			3,090,158
						16,546,785
Collateralized Mortgage Obligations — 0.2%
Fannie Mae Mortgage-Backed Securities:
Series 1991-46, Class S, 2,468.91%, 5/25/21 (b)			—	(i)		2,522
Series 1991-87, Class S, 26.10%, 8/25/21 (b)			17			27,676
Series 2005-5, Class PK, 5.00%, 12/25/34			506			542,884
Series G-7, Class S, 1,119.90%, 3/25/21 (b)			—	(i)		1,377
Series G-17, Class S, 1,058.38%, 6/25/21 (b)			—	(i)		1,747
Series G-33, Class PV, 1,078.42%, 10/25/21			—	(i)		1,675
Series G-49, Class S, 1,012.05%, 12/25/21 (b)			—	(i)		696
Freddie Mac Mortgage-Backed Securities:
Series 19, Class R, 16,196.33%, 3/15/20 (b)			—	(i)		398
Series 75, Class R, 9.50%, 1/15/21			—	(i)		1
Series 75, Class RS, 29.91%, 1/15/21 (b)			—	(i)		1
Series 173, Class R, 9.00%, 11/15/21			—	(i)		4
Series 173, Class RS, 9.37%, 11/15/21 (b)			—	(i)		4
Series 192, Class U, 1,009.03%, 2/15/22 (b)			—	(i)		—
Series 1057, Class J, 1,008.00%, 3/15/21			—	(i)		567
						579,552
Commercial Mortgage-Backed Securities — 0.7%
Freddie Mac Mortgage-Backed Securities (a)(b):
Series 2012-K706, Class C, 4.02%, 11/25/44			170			172,682
Series 2013-K024, Class B, 3.50%, 11/25/45			1,750			1,742,442
Series K013, Class A2, 3.97%, 1/25/21 (b)			930			1,051,807
						2,966,931
Interest Only Collateralized Mortgage Obligations — 2.7%
Fannie Mae Mortgage-Backed Securities:
Series 7, Class 2, 8.50%, 4/01/17			1			183
Series 89, Class 2, 8.00%, 10/01/18			2			257

See Notes to Financial Statements.

92 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

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

US Government Sponsored Agency Securities		Par (000)			Value
Interest Only Collateralized Mortgage Obligations (concluded)
Fannie Mae Mortgage-Backed Securities (concluded):
Series 94, Class 2, 9.50%, 8/01/21	USD		1		$	183
Series 1990-123, Class M, 1,009.50%, 10/25/20			—	(i)		185
Series 1990-136, Class S, 19.86%, 11/25/20 (b)			5			6,754
Series 1991-99, Class L, 930.00%, 8/25/21			—	(i)		754
Series 1991-139, Class PT, 648.35%, 10/25/21			—	(i)		1,303
Series 1997-50, Class SI, 1.20%, 4/25/23 (b)			128			4,280
Series 2010-126, Class UI, 5.50%, 10/25/40			5,307			780,225
Series 2012-47, Class NI, 4.50%, 4/25/42			5,734			883,068
Series 2012-96, Class DI, 4.00%, 2/25/27			8,614			964,772
Series 2012-M9, Class X1, 4.08%, 12/25/17 (b)			13,393			2,167,401
Series G-10, Class S, 1,083.41%, 5/25/21 (b)			—	(i)		5,432
Series G-12, Class S, 1,150.07%, 5/25/21 (b)			—	(i)		3,269
Series G92-5, Class H, 9.00%, 1/25/22			21			2,513
Freddie Mac Mortgage-Backed Securities:
Series 176, Class M, 1,010.00%, 7/15/21			—	(i)		232
Series 200, Class R, 196,091.09%, 12/15/22 (b)			—	(i)		489
Series 1043, Class H, 43.88%, 2/15/21 (b)			3			6,665
Series 1054, Class I, 859.64%, 3/15/21 (b)			—	(i)		520
Series 1056, Class KD, 1,084.50%, 3/15/21			—	(i)		493
Series 1148, Class E, 1,167.37%, 10/15/21 (b)			—	(i)		1,315
Series 1254, Class Z, 8.50%, 4/15/22			46			9,428
Series 2611, Class QI, 5.50%, 9/15/32			1,324			148,903
Series K021, Class X1, 1.51%, 6/25/22 (b)			7,061			786,084
Series K707, Class X1, 1.56%, 12/25/18 (b)			2,517			196,239
Series K710, Class X1, 1.78%, 5/25/19 (b)			8,657			815,881
Ginnie Mae Mortgage-Backed Securities (b):
Series 2009-78, Class SD, 6.00%, 9/20/32			6,783			1,267,118
Series 2011-52, Class NS, 6.47%, 4/16/41			18,743			3,117,804
						11,171,750
Mortgage-Backed Securities — 11.4%
Fannie Mae Mortgage-Backed Securities:
3.00%, 3/15/43–4/15/43 (l)			24,700			25,549,906
3.50%, 3/01/42 (e)			1,218			1,290,183
4.00%, 12/01/41 (e)			3,962			4,228,886
4.50%, 7/01/41 (e)			5,361			5,793,808
5.00%, 8/01/34 (e)			3,797			4,142,906
5.50%, 12/01/13–6/01/38 (e)			2,644			2,896,294
6.00%, 3/01/16–12/01/38 (e)			2,347			2,572,571
Ginnie Mae Mortgage-Backed Securities, 8.00%, 7/15/24			—	(i)		343
						46,474,897
Principal Only Collateralized Mortgage Obligations — 0.0%
Fannie Mae Mortgage-Backed Securities:
Series 203, Class 1, 2/01/23			7			6,030
Series 228, Class 1, 6/01/23			5			4,959
Series 1993-51, Class E, 2/25/23			23			19,621
Series 1993-70, Class A, 5/25/23			3			3,226
Freddie Mac Mortgage-Backed Securities, Series 1739, Class B, 2/15/24			—	(i)		1
						33,837
Total US Government Sponsored Agency Securities — 19.0%						77,773,752

US Treasury Obligations		Par (000)		Value
US Treasury Bonds (e):
6.25%, 8/15/23	USD		4,355	$	6,163,004
5.38%, 2/15/31			375		521,895
3.50%, 2/15/39			2,865		3,132,700
4.25%, 5/15/39			2,770		3,422,249
4.38%, 5/15/40			8,225		10,367,358
4.75%, 2/15/41			1,621		2,164,541
4.38%, 5/15/41			805		1,015,306
3.13%, 11/15/41			9,925		10,035,108
3.13%, 2/15/42			2,368		2,391,680
3.00%, 5/15/42			2,730		2,685,637
US Treasury Notes (e):
2.00%, 2/15/22			1,937		1,984,972
1.75%, 5/15/22			152		151,857
Total US Treasury Obligations — 10.8%					44,036,307
Warrants (m)			Shares
Software — 0.0%
Bankruptcy Management Solutions, Inc. (Expires 9/28/17)			101		—
Total Long-Term Investments (Cost — $560,412,372) — 146.3%					598,530,900
Options Purchased
(Cost — $1,733,466) — 0.3%					1,320,456
Total Investments Before TBA Sale Commitments and Options Written (Cost — $562,145,838) — 146.6%					599,851,356
TBA Sale Commitments (l)			Par (000)
Fannie Mae Mortgage-Backed Securities, 3.00%, 3/15/43	USD		8,400		(8,696,625	)
Total TBA Sale Commitments (Proceeds — $8,690,719) — (2.1)%					(8,696,625	)
Options Written
(Premiums Received — $3,446,468) — (0.7)%					(2,733,396	)
Total Investments, Net of TBA Sale Commitments and Options Written — 143.8%					588,421,335
Liabilities in Excess of Other Assets — (43.8)%					(179,216,638	)
Net Assets — 100.0%				$	409,204,697

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.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 93

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

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

Counterparty	Value		Unrealized Depreciation
Deutsche Bank Securities, Inc.	$	487,800		—
JPMorgan Chase & Co.	$	493,750		—
JPMorgan Chase & Co.	$	486,500		—
Citigroup Global Markets	$	493,763	$	(1,238	)
Bank of New York Mellon	$	484,250		—
Goldman Sachs & Co.	$	490,510		—

(d)	Non-income producing security.
(e)	All or a portion of security has been pledged as collateral in connection with open reverse repurchase agreements.
(f)	Convertible security.
(g)	Issuer filed for bankruptcy and/or is in default of principal and/or interest payments.
(h)	Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown is as of report date.
(i)	Amount is less than $500.
(j)	Security is perpetual in nature and has no stated maturity date.
(k)	Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(l)	Represents or includes a TBA transaction. Unsettled TBA transactions as of February 28, 2013 were as follows:

Counterparty	Value			Unrealized Appreciation (Depreciation)
Goldman Sachs Group, Inc.	$	16,875,594		$	53,484
Deutsche Bank AG	$	(22,313	)	$	(984	)

(m)	Warrants entitle the Trust to purchase a predetermined number of shares of common stock and are non-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date of the warrants, if any.
•	Investments in issuers considered to be an affiliate of the Trust 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	Realized Gain
BlackRock Liquidity Funds, TempFund, Institutional Class	1,343,014	(1,343,014)	—	$960	$26

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

See Notes to Financial Statements.

94 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

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

• 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
BNP Paribas SA	0.17%	5/09/12	Open	$	2,212,665	$	2,215,758
BNP Paribas SA	0.18%	5/09/12	Open		1,045,494		1,047,041
BNP Paribas SA	0.20%	6/26/12	Open		1,214,812		1,216,486
BNP Paribas SA	0.32%	7/02/12	Open		2,979,000		2,987,029
BNP Paribas SA	0.27%	7/24/12	Open		573,750		574,697
Barclays Plc	0.35%	8/09/12	Open		3,435,469		3,442,282
Barclays Plc	0.35%	8/21/12	Open		1,290,812		1,293,222
BNP Paribas SA	0.11%	8/21/12	Open		2,791,425		2,793,063
Credit Suisse Group AG	0.25%	9/06/12	Open		2,019,322		2,021,791
Barclays Plc	0.35%	9/18/12	Open		3,357,563		3,362,916
Bank of America Merrill Lynch	0.28%	10/16/12	Open		3,276,844		3,280,310
Deutsche Bank AG	(0.63)%	10/24/12	Open		340,864		340,106
Bank of America Merrill Lynch	0.21%	12/10/12	Open		10,032,532		10,037,271
Bank of America Merrill Lynch	0.24%	12/10/12	Open		7,361,419		7,365,394
Credit Suisse Group AG	0.37%	12/18/12	Open		37,319,578		37,346,402
BNP Paribas SA	0.34%	1/09/13	Open		1,969,000		1,969,948
BNP Paribas SA	0.35%	1/11/13	Open		4,760,000		4,762,268
Credit Suisse Group AG	0.35%	1/14/13	Open		2,160,813		2,161,779
UBS AG	(0.50)%	1/16/13	Open		496,600		496,297
UBS AG	0.28%	1/16/13	Open		3,553,388		3,554,604
UBS AG	0.32%	1/16/13	Open		8,469,687		8,473,002
UBS AG	0.33%	1/16/13	Open		2,720,150		2,721,247
UBS AG	0.34%	1/16/13	Open		11,910,655		11,915,603
UBS AG	0.35%	1/16/13	Open		1,962,500		1,963,340
BNP Paribas SA	0.35%	1/22/13	Open		883,000		883,326
Credit Suisse Group AG	0.35%	2/01/13	Open		3,730,860		3,731,875
Deutsche Bank AG	(0.75)%	2/07/13	Open		257,040		256,922
Barclays Plc	0.35%	2/08/13	Open		1,579,969		1,580,291
BNP Paribas SA	0.32%	2/08/13	Open		2,889,000		2,889,539
Credit Suisse Group AG	0.12%	2/08/13	Open		3,012,263		3,012,473
Deutsche Bank AG	0.16%	2/08/13	Open		1,406,625		1,406,756
Bank of America Merrill Lynch	0.15%	2/08/13	Open		12,767,020		12,768,137
HSBC Holdings Plc	0.27%	2/12/13	Open		20,108,887		20,111,451
BNP Paribas SA	0.15%	2/14/13	Open		9,937,406		9,938,027
BNP Paribas SA	0.33%	2/14/13	Open		1,020,000		1,020,140
UBS AG	0.34%	2/14/13	Open		1,903,625		1,903,894
BNP Paribas SA	0.20%	2/20/13	Open		150,670		150,678
BNP Paribas SA	0.34%	2/28/13	Open		3,367,000		3,367,032
Barclays Plc	(0.50)%	3/05/13	Open		534,725		534,718
Total				$	180,802,432	$	180,897,115

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 95

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

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

Contracts Purchased     (Sold)	Issue	Exchange	Expiration	Notional Value		Unrealized Appreciation (Depreciation)
373	30-Year US Treasury Bond	Chicago Board of Trade	June 2013	USD	53,630,406	$	12,383
74	Ultra Long US Treasury Bond	Chicago Board of Trade	June 2013	USD	11,692,000		(65,833)
296	90-Day Euro-Dollar	Chicago Mercantile	March 2015	USD	73,544,900		28,287
349	90-Day Euro-Dollar	Chicago Mercantile	March 2016	USD	86,320,788		25,076
(15)	90-Day Euro-Dollar	Chicago Mercantile	March 2013	USD	3,738,938		(6,038)
(57)	2-Year US Treasury Note	Chicago Board of Trade	June 2013	USD	12,566,719		(6,659)
(5)	5-Year US Treasury Note	Chicago Board of Trade	June 2013	USD	619,922		(1,119)
(608)	10-Year US Treasury Note	Chicago Board of Trade	June 2013	USD	79,980,500		(281,165)
(12)	90-Day Euro-Dollar	Chicago Mercantile	June 2013	USD	2,990,700		(3,780)
(12)	90-Day Euro-Dollar	Chicago Mercantile	September 2013	USD	2,990,100		(7,059)
(16)	90-Day Euro-Dollar	Chicago Mercantile	December 2013	USD	3,985,800		(13,342)
(12)	90-Day Euro-Dollar	Chicago Mercantile	March 2014	USD	2,988,600		(9,354)
(9)	90-Day Euro-Dollar	Chicago Mercantile	June 2014	USD	2,240,550		(5,348)
(9)	90-Day Euro-Dollar	Chicago Mercantile	September 2014	USD	2,239,425		(8,900)
(9)	90-Day Euro-Dollar	Chicago Mercantile	December 2014	USD	2,237,850		(9,848)
(44)	90-Day Euro-Dollar	Chicago Mercantile	June 2015	USD	10,923,000		(57,494)
(284)	90-Day Euro-Dollar	Chicago Mercantile	September 2015	USD	70,432,000		(29,657)
(44)	90-Day Euro-Dollar	Chicago Mercantile	December 2015	USD	10,898,250		(69,971)
(349)	90-Day Euro-Dollar	Chicago Mercantile	September 2016	USD	86,037,225		(2,617)
Total						$	(512,438)

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

Currency Purchased		Currency Sold		Counterparty	Settlement Date	Unrealized Appreciation (Depreciation)
GBP	415,000	USD	652,749	State Street Corp.	4/17/13	$	(23,321	)
USD	855,844	EUR	650,000	BNP Paribas SA	4/17/13		6,964
USD	1,800,870	GBP	1,180,000	BNP Paribas SA	4/17/13		11,169
USD	425,255	GBP	268,236	Citigroup, Inc.	4/17/13		18,423
USD	111,188	GBP	69,600	Credit Suisse Group AG	4/17/13		5,625
USD	159,501	GBP	99,323	Credit Suisse Group AG	4/17/13		8,858
USD	641,138	GBP	399,252	Credit Suisse Group AG	4/17/13		35,594
USD	472,655	GBP	301,870	Deutsche Bank AG	4/17/13		14,810
USD	2,069,604	GBP	1,352,000	Deutsche Bank AG	4/17/13		19,031
USD	6,924,140	GBP	4,289,000	Deutsche Bank AG	4/17/13		419,033
USD	5,091,483	EUR	3,821,000	Citigroup, Inc.	4/23/13		101,144
Total						$	617,330

• Over-the-counter interest rate swaptions purchased as of February 28, 2013 were as follows:

Description	Counterparty	Put/ Call	Exercise Rate	Pay/Receive Exercise Rate	Floating Rate Index	Expiration Date	Notional Amount (000)		Market Value
7-Year Interest Rate Swap	Citigroup, Inc.	Call	1.20%	Receive	3-month LIBOR	7/08/13	USD	11,700	$	16,112
7-Year Interest Rate Swap	Deutsche Bank AG	Call	1.30%	Receive	3-month LIBOR	8/21/13	USD	9,900		32,683
7-Year Interest Rate Swap	JPMorgan Chase & Co.	Call	1.39%	Receive	3-month LIBOR	10/06/14	USD	21,600		151,884
30-Year Interest Rate Swap	JPMorgan Chase & Co.	Put	3.75%	Pay	3-month LIBOR	6/03/13	USD	2,400		2,976
7-Year Interest Rate Swap	Citigroup, Inc.	Put	1.70%	Pay	3-month LIBOR	7/08/13	USD	16,700		104,861
7-Year Interest Rate Swap	Deutsche Bank AG	Put	1.80%	Pay	3-month LIBOR	8/21/13	USD	13,200		94,814
10-Year Interest Rate Swap	Deutsche Bank AG	Put	3.15%	Pay	3-month LIBOR	1/25/16	USD	2,500		112,321
10-Year Interest Rate Swap	Deutsche Bank AG	Put	3.75%	Pay	3-month LIBOR	2/16/16	USD	9,300		273,095
10-Year Interest Rate Swap	Deutsche Bank AG	Put	3.50%	Pay	3-month LIBOR	2/22/16	USD	10,000		357,303
10-Year Interest Rate Swap	Deutsche Bank AG	Put	4.50%	Pay	3-month LIBOR	3/16/17	USD	6,300		174,407
Total									$	1,320,456

See Notes to Financial Statements.

96 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

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

• Over-the-counter interest rate swaptions written as of February 28, 2013 were as follows:

Description	Counterparty	Put/ Call	Exercise Rate	Pay/Receive Exercise Rate	Floating Rate Index	Expiration Date	Notional Amount (000)		Market Value
7-Year Interest Rate Swap	Morgan Stanley	Call	1.45%	Pay	3-month LIBOR	4/05/13	USD	10,000	$	(45,852	)
7-Year Interest Rate Swap	Citigroup, Inc.	Call	1.45%	Pay	3-month LIBOR	7/08/13	USD	11,700		(74,185	)
7-Year Interest Rate Swap	Deutsche Bank AG	Call	1.55%	Pay	3-month LIBOR	8/21/13	USD	9,900		(98,182	)
5-Year Interest Rate Swap	JPMorgan Chase & Co.	Call	2.06%	Pay	3-month LIBOR	4/09/14	USD	16,100		(601,312	)
5-Year Interest Rate Swap	BNP Paribas SA	Call	1.15%	Pay	3-month LIBOR	6/09/14	USD	30,300		(207,371	)
5-Year Interest Rate Swap	JPMorgan Chase & Co.	Call	1.00%	Pay	3-month LIBOR	7/11/14	USD	15,600		(66,375	)
5-Year Interest Rate Swap	JPMorgan Chase & Co.	Call	1.48%	Pay	3-month LIBOR	7/31/14	USD	10,000		(140,910	)
5-Year Interest Rate Swap	Deutsche Bank AG	Call	1.00%	Pay	3-month LIBOR	8/01/14	USD	9,700		(41,107	)
5-Year Interest Rate Swap	Goldman Sachs Group, Inc.	Call	1.25%	Pay	3-month LIBOR	2/04/15	USD	6,200		(47,147	)
7-Year Interest Rate Swap	Citigroup, Inc.	Put	1.95%	Receive	3-month LIBOR	7/08/13	USD	16,700		(48,788	)
7-Year Interest Rate Swap	Deutsche Bank AG	Put	2.05%	Receive	3-month LIBOR	8/21/13	USD	13,200		(50,796	)
5-Year Interest Rate Swap	JPMorgan Chase & Co.	Put	2.06%	Receive	3-month LIBOR	4/09/14	USD	16,100		(85,287	)
5-Year Interest Rate Swap	BNP Paribas SA	Put	2.15%	Receive	3-month LIBOR	6/09/14	USD	30,300		(193,544	)
5-Year Interest Rate Swap	JPMorgan Chase & Co.	Put	2.00%	Receive	3-month LIBOR	7/11/14	USD	15,600		(137,424	)
5-Year Interest Rate Swap	JPMorgan Chase & Co.	Put	1.48%	Receive	3-month LIBOR	7/31/14	USD	10,000		(176,284	)
5-Year Interest Rate Swap	Deutsche Bank AG	Put	2.00%	Receive	3-month LIBOR	8/01/14	USD	9,700		(92,634	)
7-Year Interest Rate Swap	JPMorgan Chase & Co.	Put	2.39%	Receive	3-month LIBOR	10/06/14	USD	21,600		(400,311	)
5-Year Interest Rate Swap	Goldman Sachs Group, Inc.	Put	2.25%	Receive	3-month LIBOR	2/04/15	USD	6,200		(82,489	)
10-Year Interest Rate Swap	Deutsche Bank AG	Put	6.00%	Receive	3-month LIBOR	3/16/17	USD	12,600		(143,398	)
Total									$	(2,733,396	)

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

Issuer	Pay Fixed Rate	Counterparty	Expiration Date	Notional Amount (000)		Unrealized Depreciation
Radian Group, Inc.	5.00%	Citigroup, Inc.	6/20/15	USD	1,400	$	(83,197	)
The New York Times Co.	1.00%	Barclays Plc	12/20/16	USD	1,800		(40,921	)
Total						$	(124,118	)

• 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
MetLife, Inc.	1.00%	Credit Suisse Group AG	9/20/16	A-	USD	545	$	37,616
MetLife, Inc.	1.00%	Deutsche Bank AG	9/20/16	A-	USD	730		46,262
MetLife, Inc.	1.00%	Goldman Sachs Group, Inc.	9/20/16	A-	USD	500		30,886
MetLife, Inc.	1.00%	Morgan Stanley	9/20/16	A-	USD	910		56,617
MetLife, Inc.	1.00%	Morgan Stanley	9/20/16	A-	USD	275		15,387
MetLife, Inc.	1.00%	Citigroup, Inc.	12/20/16	A-	USD	298		16,973
MetLife, Inc.	1.00%	Citigroup, Inc.	12/20/16	A-	USD	290		17,967
Markit CMBX North America AAA Index Series 3	0.08%	Morgan Stanley	12/13/49	AA	USD	530		40,189
Markit CMBX North America AAA Index Series 4	0.35%	Morgan Stanley	2/17/51	A	USD	530		42,912
Total							$	304,809

¹ Using S&P’s rating of the issuer or the underlying securities, as applicable.

² The maximum potential amount the Trust may pay should a negative credit event take place as defined under the terms of the agreement.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 97

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

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

Fixed Rate	Floating Rate	Counterparty	Expiration Date	Notional Amount (000)		Unrealized Appreciation (Depreciation)
0.39%1	3-month LIBOR	JPMorgan Chase & Co.	11/29/14	USD	50,000	$	(18,750)
0.40%1	3-month LIBOR	Goldman Sachs Group, Inc.	12/27/14	USD	30,000	(12,195)
0.66%2	6-month EURIBOR	Deutsche Bank AG	2/05/15	EUR	5,000	22,054
1.18%1	3-month LIBOR	JPMorgan Chase & Co.	10/05/19	USD	15,800	147,065
1.48%2	3-month LIBOR	Deutsche Bank AG	2/25/20	USD	4,600	20,806
1.41%2	3-month LIBOR	Bank of America Corp.	2/28/20	USD	5,800	(2,290)
1.41%2	3-month LIBOR	JPMorgan Chase & Co.	3/01/20	USD	2,400	(1,056)
1.41%2	3-month LIBOR	JPMorgan Chase & Co.	3/04/20	USD	18,000	(11,750)
1.89%1	3-month LIBOR	JPMorgan Chase & Co.	10/08/21	USD	11,900	146,395
1.89%2	6-month EURIBOR	Citigroup, Inc.	6/27/22	EUR	1,800	46,955
1.91%1	3-month LIBOR	Deutsche Bank AG	1/22/23	USD	500	2,522
1.90%1	3-month LIBOR	Royal Bank of Scotland Group Plc	1/28/23	USD	400	2,298
1.72%2	6-month EURIBOR	Deutsche Bank AG	1/28/23	EUR	1,200	(2,872)
1.97%2	3-month LIBOR	Deutsche Bank AG	1/29/23	USD	1,000	736
2.08%2	3-month LIBOR	Deutsche Bank AG	2/19/23	USD	2,800	28,510
2.06%2	3-month LIBOR	Deutsche Bank AG	2/25/23	USD	3,400	27,406
2.58%1	6-month EURIBOR	Deutsche Bank AG	11/11/41	EUR	350	(17,925)
2.68%1	6-month EURIBOR	Deutsche Bank AG	11/18/41	EUR	750	(59,311)
2.15%1	6-month EURIBOR	Citigroup, Inc.	6/27/42	EUR	770	52,637
2.52%1	3-month LIBOR	Citigroup, Inc.	9/04/42	USD	3,400	296,913
2.52%1	3-month LIBOR	Goldman Sachs Group, Inc.	9/04/42	USD	5,100	447,259
2.49%1	6-month EURIBOR	Citigroup, Inc.	1/15/43	EUR	500	(13,085)
3.05%1	3-month LIBOR	Deutsche Bank AG	2/07/43	USD	4,800	(97,771)
2.95%1	3-month LIBOR	JPMorgan Chase & Co.	3/04/43	USD	2,600	1,070
Total						$	1,005,621

¹ Trust pays the fixed rate and receives the floating rate.

² Trust pays the floating rate and receives the fixed rate.

• 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 Trust 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 Trust’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 Trust’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 Trust’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

See Notes to Financial Statements.

98 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

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

The following tables summarize the Trust’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		—	$	24,172,976		$	7,751,958	$	31,924,934
Common Stocks		—		—			421,602		421,602
Corporate Bonds		—		334,059,835			6,334,795		340,394,630
Foreign Agency Obligations		—		477,962			—		477,962
Non-Agency Mortgage-Backed Securities		—		66,518,688			886,840		67,405,528
Preferred Securities	$	4,647,853		16,494,183			—		21,142,036
Taxable Municipal Bonds		—		14,954,149			—		14,954,149
US Government Sponsored Agency Securities		—		77,772,854			898		77,773,752
US Treasury Obligations		—		44,036,307			—		44,036,307
Options Purchased:
Interest Rate Contracts		—		1,320,456			—		1,320,456
Liabilities:
Investments:
TBA Sale Commitments		—		(8,696,625	)		—		(8,696,625	)
Total	$	4,647,853	$	571,110,785		$	15,396,093	$	591,154,731

	Level 1			Level 2			Level 3		Total
Derivative Financial Instruments1
Assets:
Credit contracts		—		$	304,809			—	$	304,809
Foreign currency exchange contracts		—			640,651			—		640,651
Interest rate contracts	$	65,746			1,242,626			—		1,308,372
Liabilities:
Credit contracts		—			(124,118	)		—		(124,118	)
Foreign currency exchange contracts		—			(23,321	)		—		(23,321	)
Interest rate contracts		(578,184	)		(2,970,401	)		—		(3,548,585	)
Total	$	(512,438	)	$	(929,754	)		—	$	(1,442,192	)

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

Certain of the Trust’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	$	1,805,619		—			—	$	1,805,619
Foreign currency at value		22,379		—			—		22,379
Cash pledged as collateral for financial futures contracts		1,146,000		—			—		1,146,000
Cash pledged as collateral for reverse repurchase agreements		846,837		—			—		846,837
Cash pledged as collateral for swaps		3,210,000		—			—		3,210,000
Liabilities:
Cash received as collateral for swaps		—	$	(1,100,000	)		—		(1,100,000	)
Reverse repurchase agreements		—		(180,802,432	)		—		(180,802,432	)
Total	$	7,030,835	$	(181,902,432	)		—	$	(174,871,597	)

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 99

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

A reconciliation of Level 3 investments is presented when the Trust 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			Common Stocks		Corporate Bonds			Non-Agency Mortgage-Backed Securities			US Government Sponsored Agency Securities			Total
Assets:
Opening Balance, as of August 31, 2012	$	1,537,590		$	1	$	1,957,000		$	523,393		$	36,218		$	4,054,202
Transfers into Level 31		—			—		5,271,934			—			2,112			5,274,046
Transfers out of Level 32		(371,621	)		—		—			—			—			(371,621	)
Accrued discounts/premiums		(215,039	)		—		(11,700	)		2,100			(7	)		(224,646	)
Net realized gain (loss)		6			—		4,167			28,366			(1,379	)		31,160
Net change in unrealized appreciation/depreciation3		254,077			421,601		(792,382	)		7,480			2,523			(106,701	)
Purchases		6,603,287			—		—			755,446			—			7,358,733
Sales		(56,342	)		—		(94,224	)		(429,945	)		(38,569	)		(619,080	)
Closing Balance, as of February 28, 2013	$	7,751,958		$	421,602	$	6,334,795		$	886,840		$	898		$	15,396,093

¹ As of August 31, 2012, the Trust used observable inputs in determining the value of certain investments. As of February 28, 2013, the Trust used significant unobservable inputs in determining the value of the same investments. As a result, investments with a beginning of period value of $5,274,046 transferred from Level 2 to Level 3 in the disclosure hierarchy.

² As of August 31, 2012, the Trust used significant unobservable inputs in determining the value of certain investments. As of February 28, 2013, the Trust used observable inputs in determining the value of the same investments. As a result, investments with a beginning of period value of $371,621 transferred from Level 3 to Level 2 in the disclosure hierarchy.

³ 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 $641,226.

Certain of the Trust’s investments that are categorized as Level 3 were valued utilizing transaction prices or third party pricing information without adjustment. Such valuations are based on unobservable inputs. A significant change in third party information inputs could result in a significantly lower or higher value of such Level 3 investments.

See Notes to Financial Statements.

100 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

Schedule of Investments February 28, 2013 (Unaudited) BlackRock Income Trust, Inc. (BKT)
(Percentages shown are based on Net Assets)

Asset-Backed Securities			Par (000)			Value
Asset-Backed Securities — 1.3%
First Franklin Mortgage Loan Asset-Backed Certificates, Series 2005-FF2, Class M2, 0.64%, 3/25/35 (a)		USD		4,205		$	4,112,005
Securitized Asset-Backed Receivables LLC Trust, Series 2005-OP2, Class M1, 0.63%, 10/25/35 (a)				1,875			1,583,196
Small Business Administration Participation Certificates, Class 1:
Series 1996-20E, 7.60%, 5/01/16				91			95,755
Series 1996-20G, 7.70%, 7/01/16				101			107,391
Series 1996-20H, 7.25%, 8/01/16				118			124,655
Series 1996-20K, 6.95%, 11/01/16				261			276,143
Series 1997-20C, 7.15%, 3/01/17				100			108,136
							6,407,281
Interest Only Asset-Backed Securities — 0.2%
Small Business Administration, Series 1, 2.00%, 4/01/15				1,324			11,585
Sterling Bank Trust, Series 2004-2, Class Note, 2.08%, 3/30/30 (b)				3,988			307,820
Sterling Coofs Trust, Series 2004-1, 2.36%, 4/15/29 (a)				6,958			508,785
							828,190
Total Asset-Backed Securities — 1.5%							7,235,471
Non-Agency Mortgage-Backed Securities
Collateralized Mortgage Obligations — 1.2%	��
Collateralized Mortgage Obligation Trust, Series 40, Class R, 580.50%, 4/01/18				—	(c)		73
Deutsche ALT-A Securities, Inc. Alternate Loan Trust, Series 2006-AR5, Class 22A, 5.50%, 10/25/21				689			704,579
Homebanc Mortgage Trust, Series 2005-4, Class A1, 0.47%, 10/25/35 (a)				2,752			2,256,441
Kidder Peabody Acceptance Corp., Series 1993-1, Class A6, 16.25%, 8/25/23 (a)				48			55,641
Residential Funding Securities LLC, Series 2003-RM2, Class AI5, 8.50%, 5/25/33				1,596			1,684,330
Structured Adjustable Rate Mortgage Loan Trust, Series 2004-11, Class A, 2.70%, 8/25/34 (a)				1,353			1,329,958
							6,031,022
Commercial Mortgage-Backed Securities — 0.6%
Credit Suisse Mortgage Capital Certificates, Series 2007-C2, Class A3, 5.54%, 1/15/49 (a)				2,420			2,764,668
Interest Only Collateralized Mortgage Obligations — 0.9%
Bank of America Mortgage Securities, Inc., Series 2003-3, Class 1A, 0.28%, 5/25/33 (a)				44,660			266,263
CitiMortgage Alternative Loan Trust, Series 2007-A5, Class 1A7, 6.00%, 5/25/37				836			208,456
First Boston Mortgage Securities Corp., Series C, 10.97%, 4/25/17				14			1,557
GSMPS Mortgage Loan Trust, Series 1998-5, 0.01%, 6/19/27 (a)(b)				3,816			78,034
IndyMac INDX Mortgage Loan Trust, Series 2006-AR33, Class 4AX, 0.17%, 1/25/37				84,453			323,625
MASTR Adjustable Rate Mortgages Trust, Series 2004-3, Class 3AX, 0.48%, 4/25/34 (a)				10,480			116,267
MASTR Alternative Loans Trust, Series 2003-9, Class 15X2, 6.00%, 1/25/19				372			44,825
Morgan Stanley Mortgage Loan Trust, Series 2004-3, Class 1AX, 5.00%, 5/25/19				327			28,342
Sequoia Mortgage Trust, Series 2005-2, Class XA, 1.05%, 3/20/35 (a)				37,336			600,879

Non-Agency Mortgage-Backed Securities		Par (000)			Value
Interest Only Collateralized Mortgage Obligations (concluded)
Structured Adjustable Rate Mortgage Loan Trust, Series 2006-7, Class 3AS, 5.14%, 8/25/36 (a)	USD		21,858		$	2,564,879
Vendee Mortgage Trust, Series 1999-2, Class 1, 0.03%, 5/15/29 (a)			47,033			80,087
						4,313,214
Interest Only Commercial Mortgage-Backed Securities — 0.0%
CS First Boston Mortgage Securities Corp., Series 1997-C1, Class AX, 1.12%, 6/20/29 (a)(b)			2,308			33,027
Principal Only Collateralized Mortgage Obligations — 0.4%
Countrywide Home Loan Mortgage Pass-Through Trust:
Series 2003-26, 8/25/33			939			842,587
Series 2003-J4, 6/25/33			183			162,162
Series 2003-J5, 7/25/33			311			275,533
Series 2003-J8, 9/25/23			210			192,888
Drexel Burnham Lambert CMO Trust, Class 1:
Series K, 9/23/17			6			6,013
Series V, 9/01/18			9			9,141
MASTR Asset Securitization Trust, Series 2004-3, Class 4A15, 3/25/34			25			22,740
Residential Asset Securitization Trust, Series 2005-A15, Class 1A8, 2/25/36			692			425,373
Structured Mortgage Asset Residential Trust, Series 1993-3C, Class CX, 4/25/24			7			5,831
Washington Mutual Alternative Mortgage Pass-Through Certificates, Series 2005-9, Class CP, 11/25/35			359			237,654
						2,179,922
Total Non-Agency Mortgage-Backed Securities — 3.1%						15,321,853
US Government Sponsored Agency Securities
Agency Obligations — 2.5%
Federal Housing Administration:
General Motors Acceptance Corp. Projects, Series 56, 7.43%, 11/01/22			147			143,611
Merrill Projects, Series 54, 7.43%, 5/15/23			2			1,756
Reilly Projects, Series 41, 8.28%, 3/01/20			181			180,363
USGI Projects, Series 87, 7.43%, 12/01/22			60			59,016
USGI Projects, Series 99, 7.43%, 6/01/21			3,929			3,850,661
USGI Projects, Series 99, 7.43%, 10/01/23			37			36,370
USGI Projects, Series 99, 7.43%, 10/01/23			110			107,456
Resolution Funding Corp., 3.15%, 4/15/30 (d)			13,000			7,606,742
						11,985,975
Collateralized Mortgage Obligations — 42.4%
Fannie Mae Mortgage-Backed Securities:
Series 1991-46, Class S, 2,468.91%, 5/25/21 (a)			—	(c)		5,414
Series 1991-87, Class S, 26.10%, 8/25/21 (a)			38			60,472
Series 1993-247, Class SN, 10.00%, 12/25/23 (a)			285			333,595
Series 2003-135, Class PB, 6.00%, 1/25/34			12,264			14,977,189
Series 2004-31, Class ZG, 7.50%, 5/25/34			3,548			4,416,193
Series 2005-73, Class DS, 17.03%, 8/25/35 (a)			2,165			2,862,439
Series 2011-99, Class CB, 4.50%, 10/25/41			43,000			50,304,238
Series 2011-117, Class CP, 4.00%, 11/25/41			14,350			16,378,824
Series 2011-142, Class PE, 3.50%, 1/25/42			15,567			16,401,570
Series G-7, Class S, 1,119.90%, 3/25/21 (a)			—	(c)		2,956
Series G-17, Class S, 1,058.38%, 6/25/21 (a)			—	(c)		3,751
Series G-33, Class PV, 1,078.42%, 10/25/21			—	(c)		3,595
Series G-49, Class S, 1,012.05%, 12/25/21 (a)			—	(c)		1,494

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 101

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

Non-Agency Mortgage-Backed Securities		Par (000)			Value
Collateralized Mortgage Obligations (concluded)
Freddie Mac Mortgage-Backed Securities:
Series 19, Class F, 8.50%, 3/15/20	USD		54		$	58,570
Series 19, Class R, 16,196.33%, 3/15/20 (a)			—	(c)		856
Series 40, Class K, 6.50%, 8/17/24			263			302,055
Series 75, Class R, 9.50%, 1/15/21			—	(c)		2
Series 75, Class RS, 29.92%, 1/15/21 (a)			—	(c)		2
Series 173, Class R, 9.00%, 11/15/21			—	(c)		9
Series 173, Class RS, 9.37%, 11/15/21 (a)			—	(c)		10
Series 192, Class U, 1,009.03%, 2/15/22 (a)			—	(c)		45
Series 1057, Class J, 1,008.00%, 3/15/21			—	(c)		1,217
Series 1160, Class F, 39.10%, 10/15/21 (a)			15			30,195
Series 2218, Class Z, 8.50%, 3/15/30			4,228			4,911,080
Series 2542, Class UC, 6.00%, 12/15/22			5,190			5,790,769
Series 2758, Class KV, 5.50%, 5/15/23			8,561			9,492,448
Series 2861, Class AX, 10.50%, 9/15/34 (a)			121			132,470
Series 2927, Class BZ, 5.50%, 2/15/35			3,219			3,918,647
Series 3856, Class PB, 5.00%, 5/15/41			10,000			11,858,570
Series 4016, Class BX, 4.00%, 9/15/41			15,408			17,019,294
Series T-11, Class A9, 2.80%, 1/25/28 (a)			1,788			1,893,257
Ginnie Mae Mortgage-Backed Securities:
Series 1996-5, Class Z, 7.00%, 5/16/26			421			452,039
Series 2001-33, Class PB, 6.50%, 7/20/31			733			848,625
Series 2004-89, Class PE, 6.00%, 10/20/34			3,392			3,528,405
Series 2011-80, Class PB, 4.00%, 10/20/39			11,489			12,855,008
Series 2011-88, Class PY, 4.00%, 6/20/41			15,402			17,046,964
Series 2012-16, Class HJ, 4.00%, 9/20/40			10,000			11,093,520
						206,985,787
Interest Only Collateralized Mortgage Obligations — 4.5%
Fannie Mae Mortgage-Backed Securities:
Series 7, Class 2, 8.50%, 4/01/17			3			393
Series 89, Class 2, 8.00%, 10/01/18			5			551
Series 94, Class 2, 9.50%, 8/01/21			2			393
Series 1990-123, Class M, 1,009.50%, 10/25/20			—	(c)		398
Series 1990-136, Class S, 19.86%, 11/25/20 (a)			10			14,500
Series 1991-99, Class L, 930.00%, 8/25/21			—	(c)		1,619
Series 1991-139, Class PT, 648.35%, 10/25/21			—	(c)		2,797
Series 1993-199, Class SB, 7.28%, 10/25/23 (a)			433			49,445
Series 1996-68, Class SC, 7.88%, 1/25/24 (a)			7			21
Series 1997-50, Class SI, 1.20%, 4/25/23 (a)			256			8,560
Series 1997-90, Class M, 6.00%, 1/25/28			4,020			631,364
Series 1999-W4, 6.50%, 12/25/28			253			51,833
Series 2010-74, Class DI, 5.00%, 12/25/39			27,040			2,377,257
Series 2010-75, Class PI, 4.50%, 12/25/36			3,716			44,035
Series 2010-126, Class UI, 5.50%, 10/25/40			16,464			2,420,506
Series 2012-96, Class DI, 4.00%, 2/25/27			10,936			1,224,742
Series G-10, Class S, 1083.41%, 5/25/21 (a)			—	(c)		11,663
Series G-12, Class S, 1,150.07%, 5/25/21 (a)			—	(c)		7,018
Series G92-5, Class H, 9.00%, 1/25/22			53			6,462
Series G92-12, Class C, 1,016.90%, 2/25/22			—	(c)		3,021
Series G92-60, Class SB, 1.60%, 10/25/22 (a)			175			6,782
Freddie Mac Mortgage-Backed Securities:
Series 176, Class M, 1,010.00%, 7/15/21			—	(c)		498
Series 200, Class R, 196,091.09%, 12/15/22 (a)			—	(c)		1,051
Series 1043, Class H, 43.88%, 2/15/21 (a)			7			14,310
Series 1054, Class I, 859.64%, 3/15/21 (a)			—	(c)		1,116
Series 1056, Class KD, 1,084.50%, 3/15/21			—	(c)		1,058
Series 1148, Class E, 1,167.37%, 10/15/21 (a)			—	(c)		2,822
Series 2559, 0.50%, 8/15/30 (a)			133			1,722
Series 2611, Class QI, 5.50%, 9/15/32			2,416			271,769
Series 2949, 5.50%, 3/15/35			269			4,803
Non-Agency Mortgage-Backed Securities		Par (000)			Value
Interest Only Collateralized Mortgage Obligations (concluded)
Freddie Mac Mortgage-Backed Securities (concluded):
Series 3744, Class PI, 4.00%, 6/15/39	USD		18,133		$	2,501,387
Series 3745, Class IN, 4.00%, 1/15/35			38,842			3,170,222
Series 4026, 4.50%, 4/15/32			6,358			885,591
Ginnie Mae Mortgage-Backed Securities:
Series 2010-101, Class YT, 2.00%, 8/16/13			42,595			334,621
Series 2011-52, Class MJ, 6.45%, 4/20/41 (a)			22,881			3,909,569
Series 2011-52, Class NS, 6.47%, 4/16/41 (a)			24,720			4,112,050
						22,075,949
Mortgage-Backed Securities — 113.1%
Fannie Mae Mortgage-Backed Securities:
3.00%, 3/15/43–5/15/43 (e)			1,900			1,964,407
3.50%, 10/01/42–4/15/43 (e)(f)			45,578			48,244,946
4.00%, 1/01/41–9/01/42 (f)			43,432			46,350,604
4.50%, 8/01/25–4/15/43 (e)(f)(g)			142,529			156,622,967
5.00%, 1/01/23–3/15/43 (e)(f)			120,276			131,714,822
5.50%, 3/15/28–10/01/39 (e)(f)(g)			57,478			63,311,689
5.97%, 8/01/16			2,996			3,387,919
6.00%, 3/15/43–4/15/43 (e)			65,400			71,670,903
6.50%, 12/01/37–10/01/39			24,712			27,630,786
7.50%, 2/01/22			—	(c)		101
9.50%, 1/01/19–9/01/19			2			2,415
Freddie Mac Mortgage-Backed Securities:
2.48%, 1/01/35 (a)			193			195,785
2.55%, 10/01/34 (a)			291			298,786
2.73%, 11/01/17 (a)			12			12,227
5.00%, 2/01/22–4/01/22			583			625,565
9.00%, 9/01/20			33			37,305
Ginnie Mae Mortgage-Backed Securities:
7.50%, 8/15/21–12/15/23			162			172,731
8.00%, 10/15/22–8/15/27			63			69,956
9.00%, 4/15/20–9/15/21			7			7,059
						552,320,973
Principal Only Collateralized Mortgage Obligations — 0.3%
Fannie Mae Mortgage-Backed Securities:
Series 203, Class 1, 2/01/23			15			12,947
Series 228, Class 1, 6/01/23			12			10,648
Series 1991-7, Class J, 2/25/21			14			12,002
Series 1993-51, Class E, 2/25/23			49			42,126
Series 1993-70, Class A, 5/25/23			7			6,926
Series 1999-W4, Class PO, 2/25/29			132			121,721
Series 2002-13B, Class PR, 3/25/32			276			261,559
Series G93-2, Class KB, 1/25/23			132			112,617
Freddie Mac Mortgage-Backed Securities:
Series 1418, Class M, 11/15/22			53			45,490
Series 1571, Class G, 8/15/23			336			312,226
Series 1691, Class B, 3/15/24			649			603,020
Series 1739, Class B, 2/15/24			—	(c)		1
Series T-8, Class A10, 11/15/28			102			95,533
						1,636,816
Total US Government Sponsored Agency Securities — 162.8%						795,005,500
US Treasury Obligations
US Treasury Notes:
0.63%, 9/30/17 (f)			7,945			7,925,137
1.00%, 11/30/19 (f)			2,965			2,928,169
1.63%, 11/15/22			780			763,791
2.00%, 2/15/23 (f)			1,635			1,651,605
Total US Treasury Obligations — 2.7%						13,268,702
Total Long-Term Investments (Cost — $819,292,461) — 170.1%						830,831,526

See Notes to Financial Statements.

102 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

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

Short-Term Securities		Par (000)		Value
Borrowed Bond Agreements — 0.2%
Credit Suisse Group AG, 0.04%, Open (Purchased on 2/4/13 to be repurchased at $847,102, collateralized by US Treasury Notes, 2.75%, par and fair value of USD 917,000 and $853,526, respectively)	USD		847	$	847,078
		Shares
Money Market Funds — 0.2%
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.10% (h)(i)			790,665		790,665
Total Short-Term Securities (Cost — $1,637,743) — 0.4%					1,637,743
Total Investments Before Borrowed Bonds and TBA Sale Commitments (Cost — $820,930,204) — 170.5%					832,469,269

Borrowed Bonds		Par (000)		Value
US Treasury Bonds, 2.75%, 11/15/42	USD		917	$	(853,526	)
Total Borrowed Bonds (Proceeds — $842,347) — (0.2)%					(853,526	)
TBA Sale Commitments (e)
Fannie Mae Mortgage-Backed Securities,
3.00%, 3/15/43–04/15/43			1,000		(1,034,781	)
3.50%, 3/15/43			6,000		(6,344,063	)
4.50%, 3/15/28–03/15/43			15,900		(17,104,351	)
5.00%, 3/15/28–04/15/43			33,800		(36,590,827	)
6.00%, 3/15/43			43,600		(47,776,060	)
Total TBA Sale Commitments (Proceeds — $108,711,141) — (22.3)%					(108,850,082	)
Total Investments, Net of Borrowed Bonds and TBA Sale Commitments — 148.0%					722,765,661
Liabilities in Excess of Other Assets — (48.0)%					(234,496,111	)
Net Assets — 100.0%				$	488,269,550

Notes to Schedule of Investments

(a)	Variable rate security. Rate shown is as of report date.
(b)	Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(c)	Amount is less than $500.
(d)	Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(e)	Represents or includes a TBA transaction. Unsettled TBA transactions as of February 28, 2013 were as follows:

Counterparty	Value			Unrealized Appreciation (Depreciation)
Bank of America Corp.	$	4,024,938		$	13,422
Credit Suisse Group AG	$	(563	)	$	16
Deutsche Bank AG	$	11,078,493		$	74,567
Goldman Sachs Group, Inc.	$	413,578		$	1,508
JPMorgan Chase & Co.	$	10,994,097		$	(29,661	)
Morgan Stanley	$	(442,125	)	$	4,016

(f)	All or a portion of security has been pledged as collateral in connection with open reverse repurchase agreements.
(g)	All or a portion of security has been pledged as collateral in connection with swaps.
(h)	Investments in issuers considered to be an affiliate of the Trust during the six months ended February 28, 2013, for purposes of Section 2(a)(3) of 1940 Act, were as follows:

Affiliate	Shares Held at August 31, 2012	Net Activity	Shares Held at February 28, 2013	Income	Realized Gain
BlackRock Liquidity Funds, TempFund, Institutional Class	2,187,808	(1,397,143)	790,665	$ 2,947	$ 94

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

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 103

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

• 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 Securities (USA) LLC	0.23%	10/23/12	Open	$	10,815,215	$	10,824,128
Deutsche Bank Securities, Inc.	0.26%	11/14/12	Open		7,954,931		7,961,079
Credit Suisse Securities (USA) LLC	0.15%	1/28/13	Open		19,590,818		19,593,430
Credit Suisse Securities (USA) LLC	0.15%	1/28/13	Open		22,922,685		22,925,742
BNP Paribas Securities Corp.	0.00%	2/08/13	Open		2,916,819		2,916,819
Barclays Capital, Inc.	0.30%	2/12/13	3/12/13		131,064,664		131,082,324
Credit Suisse Securities (USA) LLC	0.11%	2/28/13	3/01/13		1,653,394		1,653,399
Deutsche Bank Securities, Inc.	0.19%	2/28/13	3/01/13		10,872,531		10,872,589
Total				$	207,791,057	$	207,829,510

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

Contracts Purchased     (Sold)	Issue	Exchange	Expiration	Notional Value		Unrealized Appreciation (Depreciation)
24	90-Day Euro-Dollar	Chicago Mercantile	March 2013	USD	5,982,300	$	9,317
63	90-Day Euro-Dollar	Chicago Mercantile	June 2013	USD	15,701,175		40,012
57	90-Day Euro-Dollar	Chicago Mercantile	September 2013	USD	14,202,975		35,996
18	90-Day Euro-Dollar	Chicago Mercantile	December 2013	USD	4,484,025		8,268
(97)	2-Year US Treasury Note	Chicago Board of Trade	June 2013	USD	21,385,469		(11,333)
(303)	5-Year US Treasury Note	Chicago Board of Trade	June 2013	USD	37,567,266		(96,148)
(204)	10-Year US Treasury Note	Chicago Board of Trade	June 2013	USD	26,835,562		10,247
(636)	30-Year US Treasury Bond	Chicago Board of Trade	June 2013	USD	91,444,875		(854,492)
(7)	90-Day Euro-Dollar	Chicago Mercantile	March 2014	USD	1,743,350		(2,992)
(25)	90-Day Euro-Dollar	Chicago Mercantile	June 2014	USD	6,223,750		(18,491)
(25)	90-Day Euro-Dollar	Chicago Mercantile	September 2014	USD	6,220,625		(20,697)
(25)	90-Day Euro-Dollar	Chicago Mercantile	December 2014	USD	6,216,250		(22,152)
(25)	90-Day Euro-Dollar	Chicago Mercantile	March 2015	USD	6,211,562		(20,578)
(152)	Ultra Long US Treasury Bond	Chicago Board of Trade	June 2013	USD	24,016,000		(271,851)
Total						$	(1,214,894)

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

Fixed Rate	Floating Rate	Counterparty	Expiration Date	Notional Amount (000)		Unrealized Appreciation (Depreciation)
4.88%1	3-month LIBOR	UBS AG	3/21/15	USD	25,000	$	2,293,403
4.87%1	3-month LIBOR	Goldman Sachs Group, Inc.	1/25/16	USD	5,500		693,985
2.81%1	3-month LIBOR	Citigroup, Inc.	2/06/16	USD	20,000		1,348,662
5.72%1	3-month LIBOR	JPMorgan Chase & Co.	7/14/16	USD	5,400		930,570
4.31%2	3-month LIBOR	Deutsche Bank AG	10/01/18	USD	60,000		(10,587,370	)
3.43%1	3-month LIBOR	JPMorgan Chase & Co.	3/28/21	USD	6,000		1,050,648
5.41%1	3-month LIBOR	JPMorgan Chase & Co.	8/15/22	USD	9,565		2,993,286
Total						$	(1,276,816	)

¹ Trust pays the floating rate and receives the fixed rate.

² Trust pays the fixed interest rate and receives the floating rate.

• 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 Trust 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 Trust’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 Trust’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 Trust’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

See Notes to Financial Statements.

104 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

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

The following tables summarize the Trust’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		—	$	6,407,281		$	828,190	$	7,235,471
Non-Agency Mortgage-Backed Securities		—		12,039,755			3,282,098		15,321,853
US Government Sponsored Agency Securities		—		790,624,337			4,381,163		795,005,500
US Treasury Obligations		—		13,268,702			—		13,268,702
Short-Term Securities:
Borrowed Bond Agreements		—		847,078			—		847,078
Money Market Funds	$	790,665		—			—		790,665
Liabilities:
Investments:
Borrowed Bonds		—		(853,526	)		—		(853,526	)
TBA Sale Commitments		—		(108,850,082	)		—		(108,850,082	)
Total	$	790,665	$	713,483,545		$	8,491,451	$	722,765,661

	Level 1			Level 2			Level 3		Total
Derivative Financial Instruments1
Assets:
Interest rate contracts	$	103,840		$	9,310,554			—	$	9,414,394
Liabilities:
Interest rate contracts		(1,318,734	)		(10,587,370	)		—		(11,906,104	)
Total	$	(1,214,894	)	$	(1,276,816	)		—	$	(2,491,710	)

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

Certain of the Trust’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	$	3,087,000		—			—	$	3,087,000
Cash pledged as collateral for swaps		4,700,000		—			—		4,700,000
Liabilities:
Cash received as collateral for reverse repurchase agreements		—	$	(420,000	)		—		(420,000	)
Cash received as collateral for swaps		—		(6,700,000	)		—		(6,700,000	)
Reverse repurchase agreements		—		(207,791,057	)		—		(207,791,057	)
Total	$	7,787,000	$	(214,911,057	)		—	$	(207,124,057	)

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

Certain of the Trust’s investments are categorized as Level 3 and were valued utilizing third party pricing information without adjustment. Such valuations are based on unobservable inputs. A significant change in the unobservable inputs could result in a significantly lower or higher value in such Level 3 investments.

A reconciliation of Level 3 investments is presented when the Trust 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			Non-Agency Mortgage-Backed Securities			US Government Sponsored Agency Securities			Total
Assets:
Opening Balance, as of August 31, 2012	$	917,196		$	4,067,898		$	4,622,964		$	9,608,058
Transfers into Level 32		—			—			4,733			4,733
Transfers out of Level 33		—			(452,944	)		—			(452,944	)
Accrued discounts/premiums		(259,242	)		—			(6,679	)		(265,921	)
Net realized gain (loss)		—			—			(8,793	)		(8,793	)
Net change in unrealized appreciation/depreciation4		170,236			(332,856	)		21,024			(141,596	)
Sales		—			—			(252,086	)		(252,086	)
Closing Balance, as of February 28, 2013	$	828,190		$	3,282,098		$	4,381,163		$	8,491,451

² As of August 31, 2012, the Trust used observable inputs in determining the value of certain investments. As of February 28, 2013, the Trust used significant unobservable inputs in determining the value of the same investments. As a result, investments with a beginning of period value of $4,733 transferred from Level 2 to Level 3 in the disclosure hierarchy.

³ As of August 31, 2012, the Trust used significant unobservable inputs in determining the value of certain investments. As of February 28, 2013, the Trust used observable inputs in determining the value of the same investments. As a result, investments with a beginning of period value of $452,944 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 $(141,596).

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 105

Schedule of Investments February 28, 2013 (Unaudited) BlackRock Strategic Bond Trust (BHD)
(Percentages shown are based on Net Assets)

Common Stocks (a)		Shares		Value
Diversified Telecommunication Services — 0.0%
Broadview Networks Holdings, Inc.			5,037	$	33,697
Media — 0.0%
Adelphia Recovery Trust			396,568		793
Paper & Forest Products — 0.3%
NewPage Corp.			3,380		287,300
Software — 0.0%
Bankruptcy Management Solutions, Inc.			84		1
Total Common Stocks — 0.3%					321,791
Corporate Bonds			Par   (000)
Aerospace & Defense — 0.3%
Bombardier, Inc., 4.25%, 1/15/16 (b)	USD		85		88,187
Huntington Ingalls Industries, Inc., 7.13%, 3/15/21			60		65,400
Meccanica Holdings USA, Inc., 6.25%, 7/15/19 (b)			200		205,516
					359,103
Airlines — 0.5%
Continental Airlines Pass-Through Trust, Series 2012-3, Class C, 6.13%, 4/29/18			125		124,687
Delta Air Lines Pass-Through Trust:
Series 2002-1, Class G-1, 6.72%, 7/02/24			137		151,542
Series 2009-1, Class B, 9.75%, 2/17/16			36		39,924
US Airways Pass-Through Trust, Series 2011-1, Class C, 10.88%, 10/22/14			205		216,423
					532,576
Auto Components — 1.3%
Continental Rubber of America Corp., 4.50%, 9/15/19 (b)			150		153,000
Dana Holding Corp., 6.75%, 2/15/21			180		195,975
Icahn Enterprises LP, 8.00%, 1/15/18			670		717,738
Jaguar Land Rover Automotive Plc (FKA Jaguar Land Rover Plc), 8.25%, 3/15/20	GBP		177		301,062
					1,367,775
Beverages — 0.2%
Crown European Holdings SA:
7.13%, 8/15/18 (b)	EUR		89		125,780
7.13%, 8/15/18			50		70,663
					196,443
Building Products — 0.5%
Building Materials Corp. of America (b):
7.00%, 2/15/20	USD		210		227,325
6.75%, 5/01/21			230		246,963
Momentive Performance Materials, Inc., 8.88%, 10/15/20			65		66,706
					540,994
Capital Markets — 2.1%
E*Trade Financial Corp., Series A, 0.00%, 8/31/19 (b)(c)(d)			100		104,563
The Goldman Sachs Group, Inc.:
5.38%, 3/15/20			225		258,662
6.00%, 6/15/20			250		298,191
5.75%, 1/24/22			525		615,925
KKR Group Finance Co. LLC, 6.38%, 9/29/20 (b)			120		141,117
Merrill Lynch & Co., Inc., 6.05%, 5/16/16			325		362,582
Morgan Stanley, 5.63%, 9/23/19			320		370,186
					2,151,226
Chemicals — 2.9%
Axiall Corp., 4.88%, 5/15/23 (b)			63		63,945
Celanese US Holdings LLC, 5.88%, 6/15/21			507		553,897
Ciech Group Financing AB, 9.50%, 11/30/19	EUR		100		142,305
Eagle Spinco, Inc., 4.63%, 2/15/21 (b)	USD		133		135,161

Corporate Bonds		Par (000)		Value
Chemicals (concluded)
Huntsman International LLC:
4.88%, 11/15/20 (b)	USD		180	$	178,200
8.63%, 3/15/21			65		73,450
INEOS Finance Plc, 7.50%, 5/01/20 (b)			85		91,588
Kraton Polymers LLC, 6.75%, 3/01/19			45		46,800
LyondellBasell Industries NV, 5.75%, 4/15/24			664		771,900
Nexeo Solutions LLC, 8.38%, 3/01/18			30		29,325
Nufarm Australia Ltd., 6.38%, 10/15/19 (b)			60		63,600
Orion Engineered Carbons Bondco GmbH (FKA Kinove German Bondco GmbH), 10.00%, 6/15/18	EUR		98		142,163
PolyOne Corp., 7.38%, 9/15/20	USD		80		88,600
Rockwood Specialties Group, Inc., 4.63%, 10/15/20			350		362,250
Tronox Finance LLC, 6.38%, 8/15/20 (b)			251		249,431
					2,992,615
Commercial Banks — 1.6%
Amsouth Bank, Series AI, 4.85%, 4/01/13			650		652,275
Barclays Bank Plc, 5.14%, 10/14/20			100		106,077
CIT Group, Inc.:
5.25%, 3/15/18			110		118,250
6.63%, 4/01/18 (b)			110		124,850
5.50%, 2/15/19 (b)			120		130,500
5.00%, 8/15/22			90		96,300
HSBC Bank Plc, 7.65%, 5/01/25			350		474,519
					1,702,771
Commercial Services & Supplies — 1.5%
ADS Waste Holdings, Inc., 8.25%, 10/01/20 (b)			61		65,575
The ADT Corp. (b):
3.50%, 7/15/22			75		73,366
4.88%, 7/15/42			200		190,459
AWAS Aviation Capital Ltd., 7.00%, 10/17/16 (b)			183		191,738
Brickman Group Holdings, Inc., 9.13%, 11/01/18 (b)			11		11,825
Clean Harbors, Inc., 5.25%, 8/01/20			96		98,880
Covanta Holding Corp., 6.38%, 10/01/22			85		92,169
EC Finance Plc, 9.75%, 8/01/17	EUR		50		70,989
HDTFS, Inc. (b):
5.88%, 10/15/20	USD		55		57,200
6.25%, 10/15/22			95		102,125
Mobile Mini, Inc., 7.88%, 12/01/20			135		150,188
RSC Equipment Rental, Inc., 8.25%, 2/01/21			165		187,069
Verisure Holding AB:
8.75%, 9/01/18	EUR		100		140,999
8.75%, 12/01/18			100		133,166
West Corp., 8.63%, 10/01/18	USD		50		53,250
					1,618,998
Communications Equipment — 1.0%
Brocade Communications Systems, Inc., 6.88%, 1/15/20			175		191,187
Zayo Group LLC/Zayo Capital, Inc.:
8.13%, 1/01/20			578		645,915
10.13%, 7/01/20			186		218,085
					1,055,187
Construction & Engineering — 0.1%
Boart Longyear Management Property Ltd., 7.00%, 4/01/21			75		77,813
Construction Materials — 2.0%
Buzzi Unicem SpA, 6.25%, 9/28/18	EUR		100		140,438
HD Supply, Inc. (b):
8.13%, 4/15/19	USD		937		1,055,296
11.00%, 4/15/20			230		277,150
7.50%, 7/15/20			379		379,474
11.50%, 7/15/20			65		74,913

See Notes to Financial Statements.

106 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

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

Corporate Bonds		Par (000)		Value
Construction Materials (concluded)
HeidelbergCement AG, 7.50%, 4/03/20	EUR		21	$	33,037
Xefin Lux SCA, 8.00%, 6/01/18 (b)			100		140,183
					2,100,491
Consumer Finance — 1.4%
Credit Acceptance Corp., 9.13%, 2/01/17	USD		185		201,650
Ford Motor Credit Co. LLC, 2.75%, 5/15/15			500		510,842
SLM Corp., 5.38%, 5/15/14			675		704,564
Toll Brothers Finance Corp., 5.88%, 2/15/22			85		94,840
					1,511,896
Containers & Packaging — 1.3%
Ardagh Packaging Finance Plc, 7.38%, 10/15/17 (b)	EUR		260		368,296
Berry Plastics Corp., 8.25%, 11/15/15	USD		45		46,899
Beverage Packaging Holdings Luxembourg II SA, 8.00%, 12/15/16	EUR		54		70,690
Crown Americas LLC/Crown Americas Capital Corp. III, 6.25%, 2/01/21	USD		15		16,350
Crown Americas LLC/Crown Americas Capital Corp. IV, 4.50%, 1/15/23 (b)			169		165,197
GCL Holdings SCA, 9.38%, 4/15/18 (b)	EUR		100		141,678
Graphic Packaging International, Inc., 7.88%, 10/01/18	USD		135		148,500
Sealed Air Corp. (b):
6.50%, 12/01/20			120		130,500
8.38%, 9/15/21			60		68,400
Smurfit Kappa Acquisitions, 4.88%, 9/15/18 (b)			200		205,000
					1,361,510
Diversified Consumer Services — 0.4%
313 Group, Inc., 6.38%, 12/01/19 (b)			157		153,075
Service Corp. International, 4.50%, 11/15/20			307		305,849
					458,924
Corporate Bonds		Par (000)		Value
Diversified Financial Services — 6.8%
Aircastle Ltd., 6.25%, 12/01/19			174		187,485
Ally Financial, Inc.:
8.30%, 2/12/15			400		445,000
6.25%, 12/01/17			30		33,503
8.00%, 3/15/20			60		73,650
7.50%, 9/15/20			550		665,500
8.00%, 11/01/31			1,106		1,389,412
Bank of America Corp.:
4.50%, 4/01/15			375		398,833
6.50%, 8/01/16			410		473,104
5.63%, 10/14/16			100		112,974
5.75%, 12/01/17			240		277,759
Citigroup, Inc., 8.13%, 7/15/39			55		81,655
Co-Operative Group Ltd., 5.63%, 7/08/20 (e)	GBP		100		158,987
DPL, Inc.:
6.50%, 10/15/16	USD		115		120,750
7.25%, 10/15/21			310		332,475
Gala Group Finance Plc, 8.88%, 9/01/18	GBP		100		163,841
Itau Unibanco Holding SA, 5.75%, 1/22/21 (b)	USD		225		237,713
JPMorgan Chase & Co.:
5.50%, 10/15/40			175		208,169
5.60%, 7/15/41			175		211,152
Macquarie Bank Ltd., 5.00%, 2/22/17 (b)			200		219,930
Reynolds Group Issuer, Inc.:
7.88%, 8/15/19			180		198,900
9.88%, 8/15/19			200		219,000
5.75%, 10/15/20			510		526,575
6.88%, 2/15/21			125		133,438
WMG Acquisition Corp., 11.50%, 10/01/18			151		175,349
					7,045,154
Corporate Bonds		Par (000)		Value
Diversified Telecommunication Services — 2.8%
Broadview Networks Holdings, Inc., 10.50%, 11/15/17	USD		78	$	75,756
Level 3 Communications, Inc., 8.88%, 6/01/19 (b)			150		162,000
Level 3 Financing, Inc.:
8.13%, 7/01/19			1,310		1,427,900
8.63%, 7/15/20			188		208,680
Qwest Corp., 7.25%, 10/15/35			200		206,010
Telefonica Emisiones SAU, 5.46%, 2/16/21			250		263,556
Telenet Finance V Luxembourg SCA:
6.25%, 8/15/22	EUR		200		267,638
6.75%, 8/15/24			100		136,430
Windstream Corp.:
8.13%, 8/01/13	USD		45		46,179
7.88%, 11/01/17			142		160,815
					2,954,964
Electric Utilities — 3.0%
Exelon Generation Co. LLC, 4.25%, 6/15/22			472		496,833
Nisource Finance Corp., 3.85%, 2/15/23			400		410,503
Oncor Electric Delivery Co. LLC, 4.10%, 6/01/22			325		352,610
Progress Energy, Inc., 7.75%, 3/01/31			1,000		1,381,393
The Tokyo Electric Power Co., Inc., 4.50%, 3/24/14	EUR		400		533,343
					3,174,682
Electrical Equipment — 0.2%
GrafTech International Ltd., 6.38%, 11/15/20 (b)	USD		150		159,375
Electronic Equipment, Instruments & Components — 0.1%
Jabil Circuit, Inc., 8.25%, 3/15/18			45		54,113
Energy Equipment & Services — 4.5%
Calfrac Holdings LP, 7.50%, 12/01/20 (b)			145		145,725
Compagnie Générale de Géophysique, Veritas:
7.75%, 5/15/17			55		56,719
6.50%, 6/01/21			200		208,000
Energy Transfer Partners LP, 5.20%, 2/01/22			600		674,273
Ensco Plc, 4.70%, 3/15/21			425		475,623
FTS International Services LLC/FTS International Bonds, Inc., 8.13%, 11/15/18 (b)			465		481,275
Genesis Energy LP/Genesi Energy Finance Corp., 5.75%, 2/15/21 (b)			60		62,100
MEG Energy Corp. (b):
6.50%, 3/15/21			340		358,700
6.38%, 1/30/23			35		36,225
Oil States International, Inc., 6.50%, 6/01/19			115		123,050
Peabody Energy Corp.:
6.00%, 11/15/18			108		114,750
6.25%, 11/15/21			547		568,880
Precision Drilling Corp., 6.50%, 12/15/21			105		111,300
Seadrill Ltd., 5.63%, 9/15/17 (b)			535		541,687
Tervita Corp., 8.00%, 11/15/18 (b)			132		135,960
Transocean, Inc., 6.50%, 11/15/20			550		641,127
					4,735,394
Food & Staples Retailing — 0.2%
Bakkavor Finance 2 Plc, 8.25%, 2/15/18	GBP		104		160,140
Food Products — 1.3%
Darling International, Inc., 8.50%, 12/15/18	USD		90		102,375
Mondelez International, Inc.:
6.50%, 8/11/17			600		726,135
6.13%, 8/23/18			250		304,712
Post Holdings, Inc., 7.38%, 2/15/22			185		199,800
					1,333,022
Gas Utilities — 0.2%
El Paso Natural Gas Co. LLC, 8.63%, 1/15/22			145		198,023
Health Care Equipment & Supplies — 1.7%
Biomet, Inc. (b):
6.50%, 8/01/20			390		412,425
6.50%, 10/01/20			630		648,900
DJO Finance LLC, 7.75%, 4/15/18			40		39,800

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 107

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

Corporate Bonds		Par (000)		Value
Health Care Equipment & Supplies (concluded)
Fresenius Medical Care US Finance II, Inc., 5.63%, 7/31/19 (b)	USD		38	$	41,135
Fresenius US Finance II, Inc., 9.00%, 7/15/15 (b)			410		470,475
Teleflex, Inc., 6.88%, 6/01/19			105		114,187
					1,726,922
Health Care Providers & Services — 6.4%
Aviv Healthcare Properties LP, 7.75%, 2/15/19			150		160,875
Care UK Health & Social Care Plc, 9.75%, 8/01/17	GBP		65		99,348
CHS/Community Health Systems, Inc., 5.13%, 8/15/18	USD		100		105,125
ConvaTec Healthcare E SA, 7.38%, 12/15/17 (b)	EUR		200		276,776
Crown Newco 3 Plc, 7.00%, 2/15/18 (b)	GBP		200		313,271
HCA, Inc.:
8.50%, 4/15/19	USD		40		44,300
6.50%, 2/15/20			685		767,200
7.88%, 2/15/20			115		127,506
7.25%, 9/15/20			805		893,550
5.88%, 3/15/22			148		159,470
4.75%, 5/01/23			470		468,825
Hologic, Inc., 6.25%, 8/01/20 (b)			240		253,200
IASIS Healthcare LLC, 8.38%, 5/15/19			148		152,440
INC Research LLC, 11.50%, 7/15/19 (b)			124		132,370
inVentiv Health, Inc. (b):
9.00%, 1/15/18			80		83,400
11.00%, 8/15/18			10		8,675
Omnicare, Inc., 7.75%, 6/01/20			260		288,600
Symbion, Inc., 8.00%, 6/15/16			125		130,625
Tenet Healthcare Corp.:
6.25%, 11/01/18			627		694,402
8.88%, 7/01/19			195		220,350
4.50%, 4/01/21 (b)			150		147,938
WellPoint, Inc., 5.95%, 12/15/34			1,000		1,180,103
					6,708,349
Health Care Technology — 0.8%
IMS Health, Inc., 12.50%, 3/01/18 (b)			660		795,300
Hotels, Restaurants & Leisure — 1.3%
Caesars Entertainment Operating Co., Inc.:
10.00%, 12/15/18			288		190,080
9.00%, 2/15/20 (b)			94		92,825
Caesars Operating Escrow LLC, 9.00%, 2/15/20 (b)			98		96,775
Cirsa Funding Luxembourg SA, 8.75%, 5/15/18	EUR		51		65,251
Diamond Resorts Corp., 12.00%, 8/15/18	USD		310		341,000
El Dorado Resorts LLC, 8.63%, 6/15/19 (b)			50		49,687
Gategroup Finance Luxembourg SA, 6.75%, 3/01/19	EUR		100		134,472
Six Flags Entertainment Corp., 5.25%, 1/15/21 (b)	USD		212		207,760
Tropicana Entertainment LLC, 9.63%, 12/15/14 (a)(f)			50		—
The Unique Pub Finance Co. Plc, Series A3, 6.54%, 3/30/21	GBP		100		151,326
					1,329,176
Household Durables — 1.4%
Beazer Homes USA, Inc., 6.63%, 4/15/18	USD		145		154,969
The Ryland Group, Inc., 6.63%, 5/01/20			130		143,000
Spie BondCo 3 SCA, 11.00%, 8/15/19	EUR		109		158,670
Standard Pacific Corp.:
10.75%, 9/15/16	USD		565		703,425
8.38%, 1/15/21			200		237,500
United Rentals North America, Inc., 5.75%, 7/15/18			50		53,812
					1,451,376
Household Products — 0.4%
Ontex IV SA:
7.50%, 4/15/18 (b)	EUR		100		135,777
Series FEB, 7.50%, 4/15/18			100		135,777
Corporate Bonds		Par (000)		Value
Household Products (concluded)
Spectrum Brands Escrow Corp. (b):
6.38%, 11/15/20	USD		50	$	53,188
6.63%, 11/15/22			70		75,425
					400,167
Independent Power Producers & Energy Traders — 2.1%
The AES Corp., 7.38%, 7/01/21			95		107,350
Calpine Corp. (b):
7.25%, 10/15/17			72		76,590
7.50%, 2/15/21			72		78,300
7.88%, 1/15/23			63		69,773
Energy Future Intermediate Holding Co. LLC:
10.00%, 12/01/20			450		510,750
10.00%, 12/01/20 (b)			765		862,537
GenOn REMA LLC, Series C, 9.68%, 7/02/26			105		114,450
Laredo Petroleum, Inc.:
9.50%, 2/15/19			115		129,950
7.38%, 5/01/22			50		54,250
NRG Energy, Inc., 6.63%, 3/15/23 (b)			105		111,825
QEP Resources, Inc., 5.38%, 10/01/22			75		78,562
					2,194,337
Insurance — 3.2%
A-S Co-Issuer Subsidiary, Inc./A-S Merger Sub LLC, 7.88%, 12/15/20			147		147,735
American International Group, Inc., 6.40%, 12/15/20			1,130		1,405,518
Lincoln National Corp., 8.75%, 7/01/19			575		777,821
MetLife Global Funding I, 5.13%, 6/10/14 (b)			250		264,423
MPL 2 Acquisition Canco, Inc., 9.88%, 8/15/18 (b)			90		89,100
Prudential Financial, Inc., 5.38%, 6/21/20			400		471,617
TMF Group Holding B.V., 9.88%, 12/01/19	EUR		100		131,861
					3,288,075
Internet Software & Services — 0.0%
Equinix, Inc., 4.88%, 4/01/20	USD		22		22,000
IT Services — 2.3%
Ceridian Corp., 8.88%, 7/15/19 (b)			370		417,175
First Data Corp.:
7.38%, 6/15/19 (b)			481		505,651
8.88%, 8/15/20 (b)			195		215,475
6.75%, 11/01/20 (b)			275		282,219
8.25%, 1/15/21 (b)			61		62,373
12.63%, 1/15/21			425		453,156
SunGard Data Systems, Inc.:
7.38%, 11/15/18			280		300,650
6.63%, 11/01/19 (b)			205		210,637
					2,447,336
Machinery — 0.8%
SPX Corp., 6.88%, 9/01/17			65		72,637
UR Merger Sub Corp.:
7.38%, 5/15/20			125		136,875
7.63%, 4/15/22			550		609,125
					818,637
Media — 11.5%
Affinion Group, Inc., 7.88%, 12/15/18			141		107,160
AMC Networks, Inc.:
7.75%, 7/15/21			80		90,800
4.75%, 12/15/22			86		85,677
CCO Holdings LLC:
6.50%, 4/30/21			320		340,800
5.25%, 9/30/22			293		288,239
Checkout Holding Corp., 11.49%, 11/15/15 (b)(c)			157		115,984
Cinemark USA, Inc.:
8.63%, 6/15/19			60		66,525
5.13%, 12/15/22 (b)			44		44,220

See Notes to Financial Statements.

108 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

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

Corporate Bonds		Par (000)		Value
Media (concluded)
Clear Channel Communications, Inc.:
9.00%, 12/15/19 (b)(g)	USD		130	$	120,900
9.00%, 3/01/21			276		249,780
Clear Channel Worldwide Holdings, Inc. (b):
6.50%, 11/15/22			167		174,515
6.50%, 11/15/22			452		475,730
DIRECTV Holdings LLC:
3.80%, 3/15/22			250		250,985
6.00%, 8/15/40			175		182,532
DISH DBS Corp.:
7.00%, 10/01/13			201		207,281
5.88%, 7/15/22			340		358,700
Intelsat Jackson Holdings SA, 7.25%, 10/15/20			154		165,165
Intelsat Luxembourg SA:
11.25%, 2/04/17			440		467,500
11.50%, 2/04/17 (h)			480		510,600
Interactive Data Corp., 10.25%, 8/01/18			340		385,475
The Interpublic Group of Cos., Inc., 10.00%, 7/15/17			45		48,544
Kabel Deutschland Vertrieb und Service GmbH & Co. KG, 6.50%, 6/29/18 (b)	EUR		125		174,748
Live Nation Entertainment, Inc., 8.13%, 5/15/18 (b)	USD		150		162,750
NAI Entertainment Holdings LLC, 8.25%, 12/15/17 (b)			243		264,870
Nara Cable Funding Ltd., 8.88%, 12/01/18	EUR		100		137,083
NBC Universal Media LLC, 6.40%, 4/30/40	USD		530		681,147
The New York Times Co., 6.63%, 12/15/16			500		546,250
News America, Inc., 6.20%, 12/15/34			825		983,906
Nielsen Finance LLC, 7.75%, 10/15/18			408		451,860
Odeon & UCI Finco Plc, 9.00%, 8/01/18 (b)	GBP		100		157,773
ProQuest LLC, 9.00%, 10/15/18 (b)	USD		47		46,647
TCI Communications, Inc., 7.88%, 2/15/26			1,000		1,380,146
Time Warner Cable, Inc., 5.88%, 11/15/40			410		440,376
Unitymedia GmbH:
9.63%, 12/01/19 (b)	EUR		190		274,472
9.50%, 3/15/21			150		222,975
Unitymedia Hessen GmbH & Co. KG, 7.50%, 3/15/19			337		478,468
UPCB Finance II Ltd., 6.38%, 7/01/20 (b)			292		404,094
Virgin Media Secured Finance Plc, 6.50%, 1/15/18	USD		200		213,500
Ziggo Bond Co. BV, 8.00%, 5/15/18 (b)	EUR		75		105,749
Ziggo Finance BV, 6.13%, 11/15/17 (b)			88		120,633
					11,984,559
Metals & Mining — 3.6%
ArcelorMittal:
9.50%, 2/15/15	USD		100		112,875
4.25%, 2/25/15			43		44,399
4.25%, 8/05/15			38		39,343
4.25%, 3/01/16			50		51,500
Barrick Gold Corp., 2.90%, 5/30/16			225		236,384
Barrick North America Finance LLC, 5.70%, 5/30/41			250		271,188
Eco-Bat Finance Plc, 7.75%, 2/15/17	EUR		100		134,798
GoldCorp, Inc., 2.00%, 8/01/14 (d)	USD		220		230,450
New Gold, Inc. (b):
7.00%, 4/15/20			30		32,400
6.25%, 11/15/22			105		110,513
New World Resources NV:
7.88%, 5/01/18	EUR		65		87,023
7.88%, 5/01/18 (b)			76		101,750
Newmont Mining Corp.:
5.13%, 10/01/19	USD		225		261,297
Series A, 1.25%, 7/15/14 (d)			200		220,875
Novelis, Inc., 8.75%, 12/15/20			1,195		1,338,400
Schmolz & Bickenbach Luxembourg SA, 9.88%, 5/15/19	EUR		115		134,419
Taseko Mines Ltd., 7.75%, 4/15/19			150		149,250
Corporate Bonds		Par (000)		Value
Metals & Mining (concluded)
Vedanta Resources Plc, 8.25%, 6/07/21 (b)	USD		200	$	227,500
					3,784,364
Multiline Retail — 0.6%
Dollar General Corp., 4.13%, 7/15/17			244		258,030
Dufry Finance SCA, 5.50%, 10/15/20 (b)			400		417,000
					675,030
Oil, Gas & Consumable Fuels — 10.0%
Access Midstream Partners LP, 6.13%, 7/15/22			100		107,250
Anadarko Petroleum Corp.:
5.95%, 9/15/16			365		419,682
6.38%, 9/15/17			75		89,559
6.95%, 6/15/19			150		187,838
Carrizo Oil & Gas, Inc., 7.50%, 9/15/20			100		105,000
Chesapeake Energy Corp.:
7.25%, 12/15/18			10		11,300
6.63%, 8/15/20			90		98,550
6.13%, 2/15/21			95		100,700
Concho Resources, Inc.:
7.00%, 1/15/21			80		88,400
6.50%, 1/15/22			50		54,500
CONSOL Energy, Inc., 8.25%, 4/01/20			625		689,062
Continental Resources, Inc.:
7.13%, 4/01/21			135		153,225
5.00%, 9/15/22			121		130,075
Denbury Resources, Inc., 4.63%, 7/15/23			157		154,056
El Paso Pipeline Partners Operating Co. LLC, 5.00%, 10/01/21			500		558,032
Energy XXI Gulf Coast, Inc.:
9.25%, 12/15/17			120		135,600
7.75%, 6/15/19			320		343,200
Enterprise Products Operating LLC, 3.70%, 6/01/15			500		530,635
EP Energy LLC/Everest Acquisition Finance, Inc., 6.88%, 5/01/19			60		65,400
EV Energy Partners LP, 8.00%, 4/15/19			55		57,613
Hilcorp Energy I LP, 7.63%, 4/15/21 (b)			70		77,175
Kinder Morgan Energy Partners LP, 3.95%, 9/01/22			475		503,781
Kodiak Oil & Gas Corp., 8.13%, 12/01/19			128		144,000
Linn Energy LLC:
6.50%, 5/15/19			16		16,560
6.25%, 11/01/19 (b)			316		322,320
7.75%, 2/01/21			130		140,400
MarkWest Energy Partners LP:
6.25%, 6/15/22			19		20,591
5.50%, 2/15/23			40		42,000
4.50%, 7/15/23			54		52,785
Newfield Exploration Co., 5.63%, 7/01/24			70		73,150
Nexen, Inc., 6.40%, 5/15/37			150		189,975
Oasis Petroleum, Inc.:
7.25%, 2/01/19			90		97,200
6.50%, 11/01/21			110		118,800
Offshore Group Investments Ltd., 11.50%, 8/01/15			41		44,690
PBF Holding Co. LLC, 8.25%, 2/15/20 (b)			25		27,188
PDC Energy, Inc., 7.75%, 10/15/22 (b)			75		79,312
Petrobras International Finance Co.:
3.88%, 1/27/16			1,100		1,149,862
5.88%, 3/01/18			200		223,979
7.88%, 3/15/19			100		122,419
6.88%, 1/20/40			25		29,098
Petroleum Geo-Services ASA, 7.38%, 12/15/18 (b)			210		231,000
Pioneer Natural Resources Co., 6.88%, 5/01/18			35		42,510
Plains Exploration & Production Co., 6.88%, 2/15/23			235		270,837
Range Resources Corp.:
8.00%, 5/15/19			45		49,500
5.75%, 6/01/21			350		372,750
Sabine Pass Liquefaction LLC, 5.63%, 2/01/21 (b)			572		590,590

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 109

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

Corporate Bonds		Par (000)		Value
Oil, Gas & Consumable Fuels (concluded)
Sabine Pass Liquified Natural Gas LP:
7.50%, 11/30/16	USD		380	$	419,900
6.50%, 11/01/20 (b)			120		126,600
SandRidge Energy, Inc., 7.50%, 2/15/23			146		152,935
SM Energy Co., 6.63%, 2/15/19			45		48,263
Western Gas Partners LP, 5.38%, 6/01/21			325		367,436
The Williams Cos., Inc., 8.75%, 3/15/32			124		169,216
					10,396,499
Paper & Forest Products — 0.8%
Boise Paper Holdings LLC:
9.00%, 11/01/17			45		48,656
8.00%, 4/01/20			50		55,125
Clearwater Paper Corp., 7.13%, 11/01/18			215		232,738
International Paper Co.:
7.95%, 6/15/18			220		283,052
7.30%, 11/15/39			5		6,632
Longview Fibre Paper & Packaging, Inc., 8.00%, 6/01/16 (b)			120		126,000
NewPage Corp., 11.38%, 12/31/14 (a)(f)			781		—
Sappi Papier Holding GmbH, 6.63%, 4/15/21 (b)			50		51,750
					803,953
Pharmaceuticals — 1.9%
Capsugel Finance Co. SCA, 9.88%, 8/01/19 (b)	EUR		100		146,874
Jaguar Holding Co. II/Jaguar Merger Sub, Inc., 9.50%, 12/01/19 (b)	USD		125		143,438
Valeant Pharmaceuticals International (b):
6.50%, 7/15/16			285		299,428
6.38%, 10/15/20			145		156,056
Watson Pharmaceuticals, Inc., 3.25%, 10/01/22			550		554,506
Wyeth LLC, 6.50%, 2/01/34			500		677,838
					1,978,140
Real Estate Investment Trusts (REITs) — 0.8%
Felcor Lodging LP:
6.75%, 6/01/19			290		311,569
5.63%, 3/01/23 (b)			62		62,387
HCP, Inc., 5.38%, 2/01/21			225		262,217
The Rouse Co. LP, 6.75%, 11/09/15			145		150,800
					786,973
Real Estate Management & Development — 2.0%
CBRE Services, Inc., 6.63%, 10/15/20			90		97,200
Lennar Corp., 4.75%, 11/15/22 (b)			110		106,288
Mattamy Group Corp., 6.50%, 11/15/20 (b)			100		99,625
Realogy Corp.:
11.50%, 4/15/17			110		117,287
12.00%, 4/15/17			35		37,363
7.88%, 2/15/19 (b)			951		1,034,212
7.63%, 1/15/20 (b)			130		146,575
Shea Homes LP, 8.63%, 5/15/19			445		493,950
					2,132,500
Road & Rail — 1.3%
Canadian National Railway Co., 6.90%, 7/15/28			500		675,012
The Hertz Corp.:
7.50%, 10/15/18			285		311,363
7.38%, 1/15/21			380		418,950
					1,405,325
Semiconductors & Semiconductor Equipment — 0.2%
NXP BV/NXP Funding LLC, 5.75%, 2/15/21 (b)			200		204,500
Software — 1.2%
IAC/InterActiveCorp, 4.75%, 12/15/22 (b)			151		147,602
Infor US, Inc., 9.38%, 4/01/19			630		707,175
Nuance Communications, Inc., 5.38%, 8/15/20 (b)			130		131,625
Oracle Corp., 5.38%, 7/15/40			210		253,468
					1,239,870
Corporate Bonds		Par (000)		Value
Specialty Retail — 1.5%
Asbury Automotive Group, Inc., 8.38%, 11/15/20	USD		130	$	144,950
Claire’s Stores, Inc., 9.00%, 3/15/19 (b)			85		94,350
House of Fraser Funding Plc:
8.88%, 8/15/18 (b)	GBP		100		160,807
8.88%, 8/15/18			125		201,009
Limited Brands, Inc., 8.50%, 6/15/19	USD		320		392,000
New Academy Finance Co. LLC/New Academy Finance Corp., 8.00%, 6/15/18 (b)(h)			59		60,918
QVC, Inc. (b):
7.13%, 4/15/17			80		83,325
7.50%, 10/01/19			135		148,998
7.38%, 10/15/20			95		105,302
Sonic Automotive, Inc., 9.00%, 3/15/18			115		126,500
					1,518,159
Textiles, Apparel & Luxury Goods — 0.1%
PVH Corp., 4.50%, 12/15/22			122		120,323
Tobacco — 0.1%
Altria Group, Inc., 9.95%, 11/10/38			50		83,153
Trading Companies & Distributors — 0.2%
Air Lease Corp., 4.50%, 1/15/16			257		262,782
Wireless Telecommunication Services — 6.0%
America Movil SAB de CV:
2.38%, 9/08/16			200		207,085
5.00%, 3/30/20			400		455,034
American Tower Corp.:
4.50%, 1/15/18			375		413,056
4.70%, 3/15/22			380		412,337
Crown Castle International Corp., 5.25%, 1/15/23 (b)			115		117,875
Crown Castle Towers LLC, 6.11%, 1/15/40 (b)			375		455,391
Digicel Group Ltd. (b):
8.25%, 9/01/17			365		385,075
10.50%, 4/15/18			90		99,000
8.25%, 9/30/20			220		234,630
MetroPCS Wireless, Inc., 6.63%, 11/15/20			123		128,689
Phones4u Finance Plc:
9.50%, 4/01/18 (b)	GBP		100		156,635
9.50%, 4/01/18			100		156,635
SBA Tower Trust, 4.25%, 4/15/40 (b)	USD		325		344,835
Sprint Capital Corp., 6.88%, 11/15/28			530		535,300
Sprint Nextel Corp. (b):
9.00%, 11/15/18			1,216		1,507,840
7.00%, 3/01/20			560		655,200
					6,264,617
Total Corporate Bonds — 98.4%					102,665,611
Floating Rate Loan Interests (i)
Airlines — 0.2%
Delta Air Lines, Inc., Term Loan B, 4.50%, 4/20/17			162		163,372
Auto Components — 0.5%
Schaeffler AG, Term Loan B2, 6.00%, 1/27/17			485		484,879
Building Products — 0.1%
Wilsonart International Holdings LLC, Term Loan B, 5.50%, 10/31/19			150		151,575
Capital Markets — 0.3%
American Capital Holdings, Inc., Term Loan, 5.50%, 8/22/16			343		346,430
Chemicals — 0.4%
INEOS US Finance LLC, 6 Year Term Loan, 6.50%, 5/04/18			142		144,997
US Coatings Acquisition, Inc., Term Loan, 4.75%, 2/03/20			255		258,096
					403,093

See Notes to Financial Statements.

110 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

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

Floating Rate Loan Interests (i)		Par (000)		Value
Commercial Services & Supplies — 0.3%
AWAS Finance Luxembourg Sarl, Term Loan B, 5.25%, 6/10/16	USD		134	$	134,974
Delos Aircraft, Inc., Term Loan 2, 4.75%, 4/12/16			225		226,312
					361,286
Communications Equipment — 1.4%
Alcatel-Lucent:
Term Loan C, 7.25%, 1/31/19			500		505,500
Term Loan D, 7.75%, 1/31/19	EUR		195		255,254
Zayo Group, LLC Refinancing, Term Loan B, 5.25%, 7/12/19	USD		751		753,667
					1,514,421
Construction & Engineering — 0.7%
Safway Services LLC, Mezzanine Loan, 9.88%, 12/16/17			750		750,000
Construction Materials — 0.4%
HD Supply, Inc., Senior Debt B, 4.50%, 10/12/17			408		409,035
Consumer Finance — 1.7%
Springleaf Financial Funding Co., Term Loan, 5.50%, 5/10/17			1,750		1,756,195
Diversified Consumer Services — 0.6%
Laureate Education, Inc., Extended Term Loan, 5.25%, 6/18/18			485		487,670
ServiceMaster Co., New Term Loan, 12.70%, 4/01/17			165		164,440
					652,110
Diversified Telecommunication Services — 0.6%
Level 3 Financing, Inc.:
2016 Term Loan B, 4.75%, 2/01/16			135		136,178
2019 Term Loan B, 5.25%, 8/01/19			110		111,123
Term Loan, 4.75%, 8/01/19			350		352,800
					600,101
Energy Equipment & Services — 1.6%
Dynegy Midwest Generation LLC, Coal Co. Term Loan, 9.25%, 8/04/16			610		629,303
Dynegy Power LLC, Gas Co. Term Loan, 9.25%, 8/04/16			984		1,023,302
Tervita Corp., Incremental Term Loan, 3.20%, 5/01/18			50		50,258
					1,702,863
Food & Staples Retailing — 0.0%
Rite Aid Corp., Second Lien Term Loan, 5.75%, 7/07/20			40		40,911
Food Products — 0.1%
Advance Pierre Foods, Inc., Term Loan, 5.75%, 7/10/17			80		80,975
Health Care Equipment & Supplies — 0.5%
Bausch & Lomb, Inc., Term Loan B, 5.25%, 5/17/19			134		135,316
Capital Safety North America Holding, Inc., Term Loan, 4.50%, 1/21/19			278		277,900
LHP Hospital Group, Inc., Term Loan, 9.00%, 7/03/18			104		106,826
					520,042
Health Care Providers & Services — 0.4%
Harden Healthcare LLC:
Add on Term Loan A, 7.75%, 3/02/15			137		134,265
Term Loan A, 8.50%, 3/02/15			137		135,293
inVentiv Health, Inc., Combined Term Loan, 7.50%, 8/04/16			107		105,748
					375,306
Floating Rate Loan Interests (i)		Par (000)		Value
Hotels, Restaurants & Leisure — 3.6%
Caesars Entertainment Operating Co., Inc.:
Term Loan B1, 3.20%—3.31%, 1/28/15	USD		185	$	184,889
Term Loan B3, 3.20%—3.31%, 1/28/15			9		8,699
Harrah’s Property Co., Mezzanine Term Loan, 3.69%, 2/13/14			1,940		1,784,800
MGM Resorts International, Term Loan B, 4.25%, 12/20/19			445		450,118
Station Casinos, Inc.:
Term Loan B, 5.50%, 9/27/19			369		371,227
Term Loan B, 5.00%, 2/13/20			625		630,208
Term Loan B1, 3.20%, 6/17/16			277		279,205
					3,709,146
Industrial Conglomerates — 0.2%
Sequa Corp., Term Loan B, 5.25%, 6/19/17			209		211,192
Insurance — 0.1%
Alliant Holdings I, Inc., Term Loan B, 5.00%, 12/20/19			120		120,900
IT Services — 0.3%
First Data Corp., Extended 2018 Term Loan B, 4.20%, 3/23/18			285		281,409
Leisure Equipment & Products — 0.1%
Eastman Kodak Co., DIP Term Loan B, 8.50%, 7/19/13			88		88,245
Life Sciences Tools & Services — 0.1%
Patheon, Inc., Term Loan, 7.25%, 12/06/18			75		75,654
Machinery — 0.4%
Rexnord Corp., Term Loan B, 4.50%, 4/02/18			213		214,182
Silver II US Holdings LLC, Term Loan, 4.75%, 12/05/19			230		230,000
					444,182
Media — 3.8%
Cengage Learning Acquisitions, Inc.:
Non-Extended Term Loan, 2.71%, 7/03/14			40		30,973
Tranche 1 Incremental, 7.50%, 7/03/14			478		379,612
Clear Channel Communications, Inc.:
Term Loan B, 3.85%, 1/29/16			357		305,205
Term Loan C, 3.85%, 1/29/16			79		66,415
EMI Music Publishing Ltd., Term Loan B, 5.50%, 6/29/18			104		105,598
Getty Images, Inc., Term Loan B, 4.75%, 10/18/19			235		236,828
Intelsat Jackson Holdings SA, Term Loan B1, 4.50%, 4/02/18			2,373		2,395,289
Interactive Data Corp., Term Loan B, 3.75%, 2/11/18			150		149,835
Virgin Media Investment Holdings, Term Loan B, 3.50%, 2/17/20			270		268,388
					3,938,143
Metals & Mining — 1.0%
Constellium Holdco BV, Term Loan B, 9.25%, 5/25/18			149		152,235
FMG America Finance, Inc., Term Loan, 5.25%, 10/18/17			853		863,080
					1,015,315
Oil, Gas & Consumable Fuels — 1.2%
Chesapeake Energy Corp., Unsecured Term Loan, 5.75%, 12/01/17			515		525,676
Obsidian Natural Gas Trust, Term Loan, 7.00%, 11/02/15			313		316,500
Samson Investment Co., Second Lien Term Loan, 6.00%, 9/25/18			85		85,797
Vantage Drilling Co., Term Loan, 6.25%, 10/26/17			351		352,315
					1,280,288

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 111

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

Floating Rate Loan Interests (i)		Par (000)		Value
Pharmaceuticals — 0.1%
Pharmaceutical Product Development, Inc., Term Loan B, 4.25%, 12/05/18	USD		109	$	109,426
Professional Services — 0.1%
Truven Health Analytics, Inc., Term Loan B, 5.75%, 6/01/19			134		135,585
Real Estate Investment Trusts (REITs) — 0.2%
iStar Financial, Inc., Term Loan, 4.50%, 9/28/17			200		199,851
Real Estate Management & Development — 0.5%
Realogy Corp.:
Extended Letter of Credit Loan, 4.46%, 10/10/16			50		50,179
Extended Term Loan, 4.42%, 10/10/16			426		425,650
					475,829
Road & Rail — 0.1%
Genesee & Wyoming, Inc., Term Loan A, 2.70%, 9/29/17			105		105,379
Software — 0.6%
Infor US, Inc., Term Loan B2, 5.25%, 4/05/18			443		447,573
Kronos, Inc., Second Lien Term Loan, 9.75%, 4/30/20			185		192,400
					639,973
Textiles, Apparel & Luxury Goods — 0.4%
Ascend Performance Materials LLC, Term Loan B, 6.75%, 4/10/18			402		405,982
Thrifts & Mortgage Finance — 0.2%
Ocwen Financial Corp., Term Loan, 1.00%, 1/22/18			215		217,597
Wireless Telecommunication Services — 1.2%
Vodafone Americas Finance 2, Inc. (h):
Term Loan, 6.88%, 8/11/15			831		847,258
Term Loan B, 6.25%, 7/11/16			413		423,844
					1,271,102
Total Floating Rate Loan Interests — 24.0%					25,037,792
Foreign Agency Obligations — 0.2%
Qatar Government International Bond, 4.00%, 1/20/15 (b)			200		211,000
Taxable Municipal Bonds — 0.4%
Metropolitan Transportation Authority, RB, Build America Bonds, Series TR, 6.81%, 11/15/40			300		398,238
Other Interests (j)		Beneficial Interest (000)
Media — 0.0%
Adelphia Communications Corp. Class A			400		2,520
Preferred Securities
Capital Trusts			Par (000)
Capital Markets — 0.2%
State Street Capital Trust IV, 1.31%, 6/01/67 (i)			200		160,500
Electric Utilities — 0.2%
Electricite de France SA, 5.25% (b)(i)(k)			225		221,513

Capital Trusts		Par (000)		Value
Insurance — 0.2%
MetLife Capital Trust X, 9.25%, 4/08/68 (b)	USD		150	$	207,000
Total Capital Trusts — 0.6%					589,013
Preferred Stocks			Shares
Real Estate Investment Trusts (REITs) — 0.1%
MPG Office Trust, Inc., Series A, 7.63% (a)			3,277		74,552
Trust Preferreds
Diversified Financial Services — 0.4%
GMAC Capital Trust I, Series 2, 8.13%, 2/15/40 (i)			17,380		459,696
Total Preferred Securities — 1.1%					1,123,261
US Government Sponsored Agency Securities			Par   (000)
Collateralized Mortgage Obligations — 0.2%
Ginnie Mae Mortgage-Backed Securities, Series 2006-68, Class B, 5.16%, 6/16/31 (i)	USD		155		156,260
US Treasury Obligations
US Treasury Bonds, 3.00%, 5/15/42			700		688,625
US Treasury Notes:
2.00%, 2/15/22			70		71,734
1.63%, 8/15/22			200		196,750
Total US Treasury Obligations — 0.9%					957,109
Warrants (l)			Shares
Software — 0.0%
Bankruptcy Management Solutions, Inc. (Expires 9/28/17)			56		—
Total Warrants — 0.0%					—
Total Long-Term Investments (Cost — $123,441,711) — 125.5%					130,873,582
Short-Term Securities
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.10%(m)(n)			3,272,481		3,272,481
Total Short-Term Securities (Cost — $3,272,481) — 3.1%					3,272,481
Options Purchased
(Cost — $84,104) — (0.0)%					35,168
Total Investments Before Options Written (Cost — $126,798,296) — 128.6%					134,181,231
Options Written
(Premium Received—$45,000) — (0.0)%					(29,046	)
Total Investments, Net of Options Written — 128.6%					134,152,185
Liabilities in Excess of Other Assets — (28.6)%					(29,845,931	)
Net Assets — 100.0%				$	104,306,254

See Notes to Financial Statements.

112 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

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

Notes to Schedule of Investments

(a)	Non-income producing security.
(b)	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.
(c)	Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(d)	Convertible security.
(e)	Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown is as of report date.
(f)	Issuer filed for bankruptcy and/or is in default of principal and/or interest payments.
(g)	When-issued security. Unsettled when-issued transactions were as follows:

Counterparty	Value	Unrealized Appreciation
Citigroup, Inc	$120,900	$2,948

(h)	Represents a payment-in-kind security which may pay interest/dividends in additional par/shares.
(i)	Variable rate security. Rate shown is as of report date.
(j)	Other interests represent beneficial interests in liquidation trusts and other reorganization or private entities.
(k)	Security is perpetual in nature and has no stated maturity date.
(l)	Warrants entitle the Trust to purchase a predetermined number of shares of common stock and are non-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date of the warrants, if any.
(m)	Investments in issuers considered to be an affiliate of the Trust during the six months ended February 28, 2013, for purposes of Section 2(a)(3) of the 1940 Act, as amended, were as follows:

Affiliate	Shares Held at August 31, 2012	Net Activity	Shares Held at February 28, 2013	Income	Realized Gain
BlackRock Liquidity Funds, TempFund, Institutional Class	—	3,272,481	3,272,481	$ 395	$ 22

(n)	Represents the current yield as of report date.
•	Financial futures contracts as of February 28, 2013 were as follows:

Contracts Purchased     (Sold)	Issue	Exchange	Expiration	Notional Value		Unrealized Appreciation (Depreciation)
60	2-Year US Treasury Note	Chicago Board of Trade	June 2013	USD	13,228,125	$	6,569
23	5-Year US Treasury Note	Chicago Board of Trade	June 2013	USD	2,851,641		5,447
8	Ultra Long US Treasury Bond	Chicago Board of Trade	June 2013	USD	1,264,000		(7,117)
(26)	10-Year US Treasury Note	Chicago Board of Trade	June 2013	USD	3,420,219		(20,936)
(30)	30-Year US Treasury Bond	Chicago Board of Trade	June 2013	USD	4,313,438		(40,312)
Total						$	(56,349)

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

Currency Purchased		Currency Sold		Counterparty	Settlement Date	Unrealized Appreciation (Depreciation)
USD	2,386,861	GBP	1,490,000	Goldman Sachs Group, Inc.	4/17/13	$	126,984
EUR	100,000	USD	134,940	Citigroup, Inc.	4/23/13		(4,337	)
USD	160,321	EUR	120,000	BNP Paribas SA	4/23/13		3,597
USD	6,349,363	EUR	4,765,000	Citigroup, Inc.	4/23/13		126,132
USD	284,215	EUR	212,000	Royal Bank of Scotland Group Plc	4/23/13		7,337
Total						$	259,713

• 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	6	—

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 113

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

• Over-the-counter interest rate swaptions purchased as of February 28, 2013 were as follows:

Description	Counterparty	Put/ Call	Exercise Rate	Pay/Receive Exercise Rate	Floating Rate Index	Expiration Date	Notional Amount (000)		Market Value
5-Year Interest Rate Swap	Citigroup, Inc.	Call	1.40%	Receive	3-Month LIBOR	5/08/14	USD	600	$	7,412
2-Year Interest Rate Swap	Credit Suisse Group AG	Put	0.71%	Pay	6-Month LIBOR	7/01/13	USD	4,525		1,103
30-Year Interest Rate Swap	Credit Suisse Group AG	Put	4.50%	Pay	3-Month LIBOR	9/16/13	EUR	600		71
10-Year Interest Rate Swap	Deutsche Bank AG	Put	4.50%	Pay	3-Month LIBOR	2/02/17	USD	1,000		26,582
Total									$	35,168

• Over-the-counter interest rate swaptions written as of February 28, 2013 were as follows:

Description	Counterparty	Put/ Call	Exercise Rate	Pay/Receive Exercise Rate	Floating Rate Index	Expiration Date	Notional Amount (000)		Market Value
5-Year Interest Rate Swap	Citigroup, Inc.	Call	1.40%	Pay	3-Month LIBOR	5/08/14	USD	600	$	(7,412	)
10-Year Interest Rate Swap	Deutsche Bank AG	Put	6.00%	Receive	3-Month LIBOR	2/02/17	USD	2,000		(21,634	)
Total									$	(29,046	)

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

Issuer	Pay Fixed Rate	Counterparty	Expiration Date	Notional Amount (000)		Unrealized Depreciation
The New York Times Co.	1.00%	Barclays Plc	12/20/16	USD	500	$	(11,367	)

• 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
MetLife, Inc.	5.00%	Deutsche Bank AG	6/20/15	A-	USD	150	$	10,351
MetLife, Inc.	1.00%	UBS AG	9/20/15	A-	USD	175		8,099
Caesars Entertainment Operating Co., Inc.	5.00%	Citigroup, Inc.	12/20/15	CCC	USD	56		7,333
Caesars Entertainment Operating Co., Inc.	5.00%	Citigroup, Inc.	12/20/15	CCC	USD	27		2,647
Caesars Entertainment Operating Co., Inc.	5.00%	JPMorgan Chase & Co.	12/20/15	CCC	USD	23		2,771
Caesars Entertainment Operating Co., Inc.	5.00%	JPMorgan Chase & Co.	12/20/15	CCC	USD	91		10,244
Caesars Entertainment Operating Co., Inc.	5.00%	JPMorgan Chase & Co.	12/20/15	CCC	USD	98		16,561
Caesars Entertainment Operating Co., Inc.	5.00%	UBS AG	12/20/15	CCC	USD	130		12,188
Caesars Entertainment Operating Co., Inc.	5.00%	Barclays Plc	3/20/16	CCC	USD	13		615
Caesars Entertainment Operating Co., Inc.	5.00%	Barclays Plc	3/20/16	CCC	USD	13		233
Caesars Entertainment Operating Co., Inc.	5.00%	Citigroup, Inc.	3/20/16	CCC	USD	14		324
Caesars Entertainment Operating Co., Inc.	5.00%	Goldman Sachs Group, Inc.	3/20/16	CCC	USD	39		3,011
Caesars Entertainment Operating Co., Inc.	5.00%	Goldman Sachs Group, Inc.	3/20/16	CCC	USD	121		7,778
Caesars Entertainment Operating Co., Inc.	5.00%	Goldman Sachs Group, Inc.	3/20/16	CCC	USD	30		1,507
Caesars Entertainment Operating Co., Inc.	5.00%	Goldman Sachs Group, Inc.	3/20/16	CCC	USD	36		35
Caesars Entertainment Operating Co., Inc.	5.00%	Goldman Sachs Group, Inc.	3/20/16	CCC	USD	39		3,011
Caesars Entertainment Operating Co., Inc.	5.00%	JPMorgan Chase & Co.	3/20/16	CCC	USD	15		536
ARAMARK Corp.	5.00%	Goldman Sachs Group, Inc.	6/20/16	B-	USD	150		12,145
ARAMARK Corp.	5.00%	Goldman Sachs Group, Inc.	6/20/16	B-	USD	150		12,869
ARAMARK Corp.	5.00%	JPMorgan Chase & Co.	6/20/16	B-	USD	50		4,195
ARAMARK Corp.	5.00%	JPMorgan Chase & Co.	6/20/16	B-	USD	100		8,389
Caesars Entertainment Operating Co., Inc.	5.00%	Goldman Sachs Group, Inc.	6/20/16	CCC	USD	77		4,564
Caesars Entertainment Operating Co., Inc.	5.00%	Goldman Sachs Group, Inc.	6/20/16	CCC	USD	150		7,451
Caesars Entertainment Operating Co., Inc.	5.00%	Barclays Plc	3/20/17	CCC	USD	13		100
Caesars Entertainment Operating Co., Inc.	5.00%	Goldman Sachs Group, Inc.	3/20/17	CCC	USD	27		337
Total							$	137,294

¹ Using S&P’s rating of the issuer.

² The maximum potential amount the Trust may pay should a negative credit event take place as defined under the terms of the agreement.

See Notes to Financial Statements.

114 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

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

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

Fixed Rate	Floating Rate	Counterparty	Expiration Date	Notional Amount (000)		Unrealized Appreciation (Depreciation)
0.44%1	3-month LIBOR	Credit Suisse Group AG	8/29/14	USD	2,000	$	(2,577)
0.42%1	3-month LIBOR	Goldman Sachs Group, Inc.	2/08/15	USD	1,800		(1,213)
2.48%1	3-month LIBOR	Credit Suisse Group AG	7/05/42	USD	500		47,228
2.26%1	3-month LIBOR	Goldman Sachs Group, Inc.	7/26/42	USD	200		28,168
2.46%1	3-month LIBOR	Deutsche Bank AG	8/07/42	USD	500		49,207
2.51%1	3-month LIBOR	Credit Suisse Group AG	8/10/42	USD	200		18,011
Total						$	138,824

¹ Trust pays the fixed rate and receives the floating rate.

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

• Fair Value Measurements—Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs 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 Trust 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 Trust’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 Trust’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 Trust’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 115

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

The following tables summarize the Trust’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:
Common Stocks	$	793		—	$	320,998	$	321,791
Corporate Bonds		—	$	102,589,855		75,756		102,665,611
Floating Rate Loan Interests		—		20,739,678		4,298,114		25,037,792
Foreign Agency Obligations		—		211,000		—		211,000
Municipal Bonds		—		398,238		—		398,238
Other Interests		—		2,520		—		2,520
Preferred Securities		534,248		589,013		—		1,123,261
US Government Sponsored Agency Securities		—		156,260		—		156,260
US Treasury Obligations		—		957,109		—		957,109
Short-Term Securities		3,272,481		—		—		3,272,481
Options Purchased:
Interest Rate Contracts		—		35,168		—		35,168
Total	$	3,807,522	$	125,678,841	$	4,694,868	$	134,181,231

	Level 1			Level 2			Level 3		Total
Derivative Financial Instruments1
Assets:
Credit contracts		—		$	137,294			—	$	137,294
Foreign currency exchange contracts		—			264,050			—		264,050
Interest rate contracts	$	12,016			142,614			—		154,630
Liabilities:
Credit contracts		—			(11,367	)		—		(11,367	)
Foreign currency exchange contracts		—			(4,337	)		—		(4,337	)
Interest rate contracts		(68,365	)		(32,836	)		—		(101,201	)
Total	$	(56,349	)	$	495,418			—	$	439,069

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

Certain of the Trust’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	$	63,496		—			—	$	63,496
Cash pledged as collateral for financial futures contracts......		98,660		—			—		98,660
Cash pledged as collateral for swaps		10,000		—			—		10,000
Liabilities:
Bank overdraft		—	$	(337,516	)		—		(337,516	)
Loan payable		—		(28,000,000	)		—		(28,000,000	)
Total	$	172,156	$	(28,337,516	)		—	$	(28,165,360	)

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

See Notes to Financial Statements.

116 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

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

A reconciliation of Level 3 investments is presented when the Trust 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:

	Common Stocks			Corporate Bonds			Floating Rate Loans			Total
Assets:
Opening Balance, as of August 31, 2012	$	1			—		$	4,212,613		$	4,212,614
Transfers into Level 31		—		$	572,487			545,048			1,117,535
Transfers out of Level 32		—			—			(400,306	)		(400,306	)
Accrued discounts/premiums		—			(1,725	)		3,429			1,704
Net realized gain		—			2,842			11,491			14,333
Net change in unrealized appreciation/depreciation3		274,078			(541,548	)		8,216			(259,254	)
Purchases		46,924			107,909			682,068			836,901
Sales		(5	)		(64,209	)		(764,445	)		(828,659	)
Closing Balance, as of February 28, 2013	$	320,998		$	75,756		$	4,298,114		$	4,694,868

¹ As of August 31, 2012, the Trust used observable inputs in determining the value of certain investments. As of February 28, 2013, the Trust used significant unobservable inputs in determining the value of the same investments. As a result, investments with a beginning of period value of $1,117,535 transferred from Level 2 to Level 3 in the disclosure hierarchy.

² As of August 31, 2012, the Trust used significant unobservable inputs in determining the value of certain investments. As of February 28, 2013, the Trust used observable inputs in determining the value of the same investments. As a result, investments with a beginning of period value of $400,306 transferred from Level 3 to Level 2 in the disclosure hierarchy.

³ 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 $265,255.

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 Trust’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 $3,641,613.

	Value		Valuation Techniques	Unobservable Inputs4	Range of Unobservable Inputs Utilized
Assets:
Common Stocks	$	33,697	Restructure Terms5	N/A	—
Floating Rate Loan Interests		269,558	Discounted Cash Flow	Yield	9.50%
		750,000	Cost6	N/A	—
Total	$	1,053,255

⁴ 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

⁵ Investment is valued based on the company’s financial restructuring plan.

⁶ The Trust 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 Trust.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 117

Statements of Assets and Liabilities

February 28, 2013 (Unaudited)	BlackRock Core Bond Trust (BHK)		BlackRock Corporate High Yield Fund V, Inc. (HYV)*		BlackRock Corporate High Yield Fund VI, Inc. (HYT)*		BlackRock High Income Shares (HIS)
Assets
Investments at value — unaffiliated1	$	603,571,102	$	619,085,952	$	642,601,094	$	171,735,959
Investments at value — affiliated2		2,677,125		4,128,807		4,840,770		2,757,840
Foreign currency at value3		159,393		5,581		317,411		31,721
Cash		60,313		—		—		—
Cash pledged as collateral for financial futures contracts		882,000		307,000		324,000		122,000
Cash pledged as collateral for reverse repurchase agreements		1,615,619		—		—		—
Cash pledged as collateral for swaps		3,210,000		400,000		400,000		—
TBA sale commitments receivable		8,690,719		—		—		—
Investments sold receivable		15,017,429		4,489,425		4,435,130		1,496,304
Interest receivable		6,196,024		8,392,201		8,759,343		2,506,481
Unrealized appreciation on swaps		1,206,296		1,328,092		1,351,785		—
Unrealized appreciation on foreign currency exchange contracts		622,183		1,524,216		1,622,949		138,583
Swaps receivable		90,131		252,044		255,273		—
Swap premiums paid		133,461		118,134		119,910		—
Principal paydown receivable		175,916		—		—		—
Variation margin receivable		27,006		9,125		9,625		3,125
Dividends receivable		—		6,488		3,278		—
Prepaid expenses		21,404		13,249		14,133		6,847
Other assets		30,391		—		—		—
Total assets		644,386,512		640,060,314		665,054,701		178,798,860
Liabilities
Bank overdraft		—		138,781		307,820		—
Reverse repurchase agreements		183,433,858		—		—		—
Loan payable		—		174,000,000		178,000,000		44,000,000
Cash received as collateral for swaps		1,100,000		1,200,000		1,200,000		—
Investments purchased payable		34,919,617		26,718,481		27,476,434		7,677,701
TBA sale commitments at value4		8,696,625		—		—		—
Unrealized depreciation on swaps		466,953		56,309		58,957		—
Options written at value5		2,733,943		81,138		84,883		—
Swap premiums received		328,028		1,786,064		1,861,346		—
Swaps payable		640,526		3,619		3,747		—
Investment advisory fees payable		238,879		276,770		335,392		94,722
Interest expense payable		83,240		122,838		128,677		28,691
Officer’s and Trustees’ fees payable		46,725		108,692		112,784		12,765
Income dividends payable		54,520		70,432		88,498		—
Unrealized depreciation on foreign currency exchange contracts		23,595		12,470		13,704		8,050
Other liabilities		240,760		—		—		—
Other accrued expenses payable		179,051		256,322		234,256		97,828
Total liabilities		233,186,320		204,831,916		209,906,498		51,919,757
Net Assets	$	411,200,192	$	435,228,398	$	455,148,203	$	126,879,103
1 Investments at cost — unaffiliated	$	565,566,273	$	598,717,928	$	622,082,858	$	167,334,601
2 Investments at cost — affiliated	$	2,677,125	$	4,128,807	$	4,840,770	$	2,757,840
3 Foreign currency at cost	$	165,295	$	5,647	$	320,044	$	32,595
4 Proceeds from TBA sale commitments	$	8,690,719		—		—		—
5 Premiums received	$	3,446,258	$	157,950	$	165,240		—

* Consolidated Statements of Assets and Liabilities.

See Notes to Financial Statements.

118 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

Statements of Assets and Liabilities (concluded)

February 28, 2013 (Unaudited)	BlackRock Core Bond Trust (BHK)			BlackRock Corporate High Yield Fund V, Inc. (HYV)*			BlackRock Corporate High Yield Fund VI, Inc. (HYT)*			BlackRock High Income Shares (HIS)
Net Assets Consist of
Paid-in capital6,7,8	$	378,960,758		$	470,688,615		$	506,565,764		$	158,633,827
Undistributed net investment income		6,052,344			4,434,679			5,837,020			1,549,178
Accumulated net realized loss		(13,435,739	)		(63,018,441	)		(80,641,018	)		(37,796,069	)
Net unrealized appreciation/depreciation		39,622,829			23,123,545			23,386,437			4,492,167
Net Assets	$	411,200,192		$	435,228,398		$	455,148,203		$	126,879,103
Net asset value per share	$	15.21		$	13.18		$	12.85		$	2.31
6 Par value per share	$	0.001		$	0.100		$	0.100			—
7 Shares outstanding		27,041,847			33,015,111			35,414,156			54,824,195
8 Shares authorized		unlimited			200 million			200 million			unlimited

* Consolidated Statements of Assets and Liabilities.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 119

Statements of Assets and Liabilities

February 28, 2013 (Unaudited)	BlackRock High Yield Trust (BHY)		BlackRock Income Opportunity Trust, Inc. (BNA)		BlackRock Income Trust, Inc. (BKT)		BlackRock Strategic Bond Trust (BHD)
Assets
Investments at value — unaffiliated1	$	66,013,096	$	599,851,356	$	831,678,604	$	130,908,750
Investments at value — affiliated2		2,001,193		—		790,665		3,272,481
Foreign currency at value3		11,231		22,379		—		63,496
Cash		—		1,805,619		—		—
Cash pledged as collateral for financial futures contracts		63,000		1,146,000		3,087,000		98,660
Cash pledged as collateral for reverse repurchase agreements		—		846,837		—		—
Cash pledged as collateral for swaps		—		3,210,000		4,700,000		10,000
TBA sale commitments receivable		—		8,690,719		108,711,141		—
Investments sold receivable		868,700		15,991,976		11,068,127		530,766
Interest receivable		947,007		6,271,404		3,080,548		1,781,150
Unrealized appreciation on swaps		132,849		1,547,435		9,310,554		279,908
Unrealized appreciation on foreign currency exchange contracts		65,846		640,651		—		264,050
Swaps receivable		28,472		91,145		785,236		25,799
Swap premiums paid		19,640		133,273		—		43,465
Principal paydown receivable		—		—		152,793		—
Variation margin receivable		1,000		26,612		—		3,526
Dividends receivable		40		—		—		—
Prepaid expenses		2,408		18,889		19,633		4,578
Other assets		—		99,337		16,767		—
Total assets		70,154,482		640,393,632		973,401,068		137,286,629
Liabilities
Bank overdraft		—		—		—		337,516
Reverse repurchase agreements		—		180,802,432		207,791,057		—
Loan payable		18,000,000		—		—		28,000,000
Cash received as collateral for swaps		—		1,100,000		6,700,000		—
Cash received as collateral for reverse repurchase agreements		—		—		420,000		—
Investments purchased payable		2,832,853		34,977,401		147,730,464		4,092,370
TBA sale commitments at value4		—		8,696,625		108,850,082		—
Unrealized depreciation on swaps		11,053		361,123		10,587,370		15,157
Options written at value5		9,362		2,733,396		—		29,046
Swap premiums received		209,283		330,779		225,876		297,770
Swaps payable		858		666,035		1,111,577		9,129
Investment advisory fees payable		44,900		187,243		243,836		75,185
Borrowed bonds6		—		—		853,526		—
Interest expense payable		12,035		94,683		45,836		19,261
Officer’s and Trustees’ fees payable		13,311		95,553		99,505		12,268
Income dividends payable		—		49,992		111,430		—
Variation margin payable		—		—		149,679		—
Administration fees payable		4,992		31,209		56,339		—
Unrealized depreciation on foreign currency exchange contracts		2,598		23,321		—		4,337
Other liabilities		—		879,346		—		—
Other accrued expenses payable		78,352		159,797		154,941		88,336
Total liabilities		21,219,597		231,188,935		485,131,518		32,980,375
Net Assets	$	48,934,885	$	409,204,697	$	488,269,550	$	104,306,254
1 Investments at cost — unaffiliated	$	62,948,174	$	562,145,838	$	820,139,539	$	123,525,815
2 Investments at cost — affiliated	$	2,001,193		—	$	790,665	$	3,272,481
3 Foreign currency at cost	$	11,506	$	23,179		—	$	65,244
4 Proceeds from TBA sale commitments		—	$	8,690,719	$	108,711,141		—
5 Premiums received	$	18,225	$	3,446,468		—	$	45,000
6 Borrowed bonds — cost		—		—	$	842,347		—

See Notes to Financial Statements.

120 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

Statements of Assets and Liabilities (concluded)

February 28, 2013 (Unaudited)	BlackRock High Yield Trust (BHY)			BlackRock Income Opportunity Trust, Inc. (BNA)			BlackRock Income Trust, Inc. (BKT)			BlackRock Strategic Bond Trust (BHD)
Net Assets Consist of
Paid-in capital7,8,9	$	58,179,449		$	402,924,496		$	478,542,248		$	98,547,751
Cost of shares held in the treasury10		—			(17,377,850	)		—			—
Undistributed net investment income		200,744			5,361,903			2,970,779			623,475
Accumulated net realized loss		(12,691,635	)		(21,503,257	)		(2,157,480	)		(2,728,146	)
Net unrealized appreciation/depreciation		3,246,327			39,799,405			8,914,003			7,863,174
Net Assets	$	48,934,885		$	409,204,697		$	488,269,550		$	104,306,254
Net asset value per share	$	7.61		$	11.88		$	7.64		$	14.76
7  Par value per share	$	0.001		$	0.01		$	0.01		$	0.001
8  Shares outstanding		6,430,618			34,456,370			63,942,535			7,065,121
9  Shares authorized		unlimited			200 million			200 million			unlimited
10 Shares held in treasury		—			1,757,400			—			—

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 121

Statements of Operations

Six Months Ended February 28, 2013 (Unaudited)	BlackRock Core Bond Trust (BHK)			BlackRock Corporate High Yield Fund V, Inc. (HYV)1			BlackRock Corporate High Yield Fund VI, Inc. (HYT)1			BlackRock High Income Shares (HIS)
Investment Income
Interest	$	14,036,307		$	19,902,069		$	20,785,080		$	5,893,517
Dividends — unaffiliated		112,500			769,377			840,690			56,653
Dividends — affiliated		1,715			893			872			402
Total income		14,150,522			20,672,339			21,626,642			5,950,572
Expenses
Investment advisory		1,656,990			1,786,245			2,168,937			611,926
Professional		60,096			63,997			70,110			39,182
Accounting services		43,015			65,095			67,270			35,730
Borrowing costs2		—			102,238			109,816			38,537
Custodian		27,607			41,299			48,301			18,704
Transfer agent		25,011			22,157			25,067			27,580
Officer and Trustees		24,502			27,647			30,076			7,411
Printing		11,413			12,335			12,314			6,218
Registration		4,556			5,571			5,950			9,255
Miscellaneous		16,971			47,732			43,189			6,523
Total expenses excluding interest expense and income tax		1,870,161			2,174,316			2,581,030			801,066
Interest expense		266,182			810,947			834,304			181,839
Income tax		—			4,230			4,230			—
Total expenses		2,136,343			2,989,493			3,419,564			982,905
Less fees waived by Manager		(91,160	)		(511	)		(481	)		(212	)
Total expenses after fees waived		2,045,183			2,988,982			3,419,083			982,693
Net investment income		12,105,339			17,683,357			18,207,559			4,967,879
Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:
Investments — unaffiliated		798,600			15,843,838			15,155,587			2,261,074
Capital gain distributions received from affiliated investment companies		72			114			110			33
Financial futures contracts		(487,641	)		(1,190,225	)		(1,244,415	)		(352,864	)
Foreign currency transactions		(927,467	)		(2,739,206	)		(2,876,970	)		(405,782	)
Options written		833,231			—			—			—
Swaps		22,253			1,037,844			1,071,254			43,127
Borrowed bonds		155,006			—			—			—
		394,054			12,952,365			12,105,566			1,545,588
Net change in unrealized appreciation/depreciation on:
Investments		(1,740,284	)		5,306,703			5,911,289			1,656,322
Financial futures contracts		(221,494	)		748,203			781,449			222,399
Foreign currency translations		901,402			2,544,773			2,682,440			267,007
Options written		662,437			76,812			80,357			—
Swaps		1,178,428			93,922			79,613			—
		780,489			8,770,413			9,535,148			2,145,728
Total realized and unrealized gain		1,174,543			21,722,778			21,640,714			3,691,316
Net Increase in Net Assets Resulting from Operations	$	13,279,882		$	39,406,135		$	39,848,273		$	8,659,195

¹  Consolidated Statement of Operations.

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

See Notes to Financial Statements.

122 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

Statements of Operations

Six Months Ended February 28, 2013 (Unaudited)	BlackRock High Yield Trust (BHY)			BlackRock Income Opportunity Trust, Inc. (BNA)			BlackRock Income Trust, Inc. (BKT)			BlackRock Strategic Bond Trust (BHD)
Investment Income
Interest	$	2,240,324		$	13,510,406		$	12,978,930		$	4,180,508
Dividends — unaffiliated		20,368			112,500			—			33,810
Dividends — affiliated		366			960			2,947			395
Total income		2,261,058			13,623,866			12,981,877			4,214,713
Expenses
Investment advisory		292,616			1,221,104			1,603,578			493,276
Administration		32,513			203,517			370,057			—
Professional		29,111			49,416			56,310			33,994
Accounting services		26,068			42,902			40,297			30,821
Borrowing costs1		9,903			—			—			23,122
Custodian		13,350			27,910			31,790			16,546
Transfer agent		16,379			31,707			61,609			15,097
Officer and Trustees		3,693			27,317			32,161			6,672
Printing		4,844			11,718			11,564			5,806
Registration		4,573			5,832			10,875			4,528
Miscellaneous		5,237			18,903			17,328			4,670
Total expenses excluding interest expense		438,287			1,640,326			2,235,569			634,532
Interest expense		82,687			274,835			289,520			136,901
Total expenses		520,974			1,915,161			2,525,089			771,433
Less fees waived by Manager		(199	)		(543	)		(1,707	)		(202	)
Total expenses after fees waived		520,775			1,914,618			2,523,382			771,231
Net investment income		1,740,283			11,709,248			10,458,495			3,443,482
Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:
Investments		1,455,975			2,578,180			(4,457,570	)		2,661,057
Capital gain distributions received from affiliated investment companies		12			26			94			22
Financial futures contracts		(133,577	)		(651,542	)		1,194,444			105,956
Foreign currency transactions		(139,649	)		(789,721	)		—			(490,157	)
Options written		—			829,609			—			27,072
Swaps		73,654			(401,629	)		226,694			25,595
Borrowed bonds		—			342,608			343,788			—
		1,256,415			1,907,531			(2,692,550	)		2,329,545
Net change in unrealized appreciation/depreciation on:
Investments		550,111			(3,707,486	)		(12,785,293	)		(208,512	)
Financial futures contracts		75,707			(135,736	)		625,431			(23,586	)
Foreign currency translations		112,393			886,296			—			419,459
Options written		8,863			663,827			—			(486	)
Swaps		23,252			1,596,722			(311,671	)		205,542
Borrowed bonds		—			—			661,354			—
		770,326			(696,377	)		(11,810,179	)		392,417
Total realized and unrealized gain (loss)		2,026,741			1,211,154			(14,502,729	)		2,721,962
Net Increase (Decrease) in Net Assets Resulting from Operations	$	3,767,024		$	12,920,402		$	(4,044,234	)	$	6,165,444

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

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 123

Statements of Changes in Net Assets

	BlackRock Core Bond Trust (BHK)						BlackRock High Income Shares (HIS)
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	$	12,105,339		$	23,862,728		$	4,967,879		$	10,999,966
Net realized gain (loss)		394,054			12,725,546			1,545,588			(1,548,634	)
Net change in unrealized appreciation/depreciation		780,489			24,398,010			2,145,728			6,381,729
Net increase in net assets resulting from operations		13,279,882			60,986,284			8,659,195			15,833,061
Dividends to Shareholders From
Net investment income		(13,437,322	)		(22,212,928	)1		(5,707,816	)		(11,172,280	)1
Capital Share Transactions
Refund of offering costs previously charged to paid-in capital		—			—			—			2,126
Reinvestment of dividends		221,789			67,030			182,367			273,904
Net increase in net assets resulting from capital share transactions		221,789			67,030			182,367			276,030
Net Assets
Total increase in net assets		64,349			38,840,386			3,133,746			4,936,811
Beginning of period		411,135,843			372,295,457			123,745,357			118,808,546
End of period	$	411,200,192		$	411,135,843		$	126,879,103		$	123,745,357
Undistributed net investment income	$	6,052,344		$	7,384,327		$	1,549,178		$	2,289,115

Consolidated Statements of Changes in Net Assets

	BlackRock Corporate High Yield Fund V, Inc. (HYV)						BlackRock Corporate High Yield Fund VI, Inc. (HYT)
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	$	17,683,357		$	35,444,739		$	18,207,559		$	36,665,376
Net realized gain (loss)		12,952,365			(2,168,911	)		12,105,566			(3,682,719	)
Net change in unrealized appreciation/depreciation		8,770,413			32,228,184			9,535,148			32,859,977
Net increase in net assets resulting from operations		39,406,135			65,504,012			39,848,273			65,842,634
Dividends to Shareholders From
Net investment income		(21,029,035	)		(35,208,709	)1		(21,096,527	)		(36,599,844	)1
Capital Share Transactions
Refund of offering costs previously charged to paid-in capital		—			—			—			8,495
Reinvestment of dividends		150,281			718,285			441,434			1,006,632
Net increase in net assets resulting from capital share transactions		150,281			718,285			441,434			1,015,127
Net Assets
Total increase in net assets		18,527,381			31,013,588			19,193,180			30,257,917
Beginning of period		416,701,017			385,687,429			435,955,023			405,697,106
End of period	$	435,228,398		$	416,701,017		$	455,148,203		$	435,955,023
Undistributed net investment income	$	4,434,679		$	7,780,357		$	5,837,020		$	8,725,988

¹  Dividends are determined in accordance with federal income tax regulations.

See Notes to Financial Statements.

124 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

Statements of Changes in Net Assets

	BlackRock High Yield Trust (BHY)						BlackRock Income Opportunity Trust, Inc. (BNA)
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	$	1,740,283		$	3,397,215		$	11,709,248		$	23,112,371
Net realized gain		1,256,415			793,181			1,907,531			10,895,929
Net change in unrealized appreciation/depreciation		770,326			2,402,266			(696,377	)		25,143,570
Net increase in net assets resulting from operations		3,767,024			6,592,662			12,920,402			59,151,870
Dividends to Shareholders From
Net investment income		(1,716,806	)		(3,374,830	)1		(11,784,079	)		(22,258,816	)1
Capital Share Transactions
Reinvestment of dividends		8,274			14,323			—			—
Net Assets
Total increase in net assets		2,058,492			3,232,155			1,136,323			36,893,054
Beginning of period		46,876,393			43,644,238			408,068,374			371,175,320
End of period	$	48,934,885		$	46,876,393		$	409,204,697		$	408,068,374
Undistributed net investment income	$	200,744		$	177,267		$	5,361,903		$	5,436,734

	BlackRock Income Trust, Inc. (BKT)						BlackRock Strategic Bond Trust (BHD)
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	$	10,458,495		$	24,774,308		$	3,443,482		$	6,983,209
Net realized gain (loss)		(2,692,550	)		13,620,770			2,329,545			1,329,497
Net change in unrealized appreciation/depreciation		(11,810,179	)		(8,999,000	)		392,417			5,886,978
Net increase (decrease) in net assets resulting from operations		(4,044,234	)		29,396,078			6,165,444			14,199,684
Dividends and Distributions to Shareholders From
Net investment income		(15,538,036	)		(17,586,939	)2		(3,630,533	)		(7,652,086	)1
Net realized gain		—			(12,721,826	)2		—			—
Decrease in net assets resulting from dividends and distributions to shareholders		(15,538,036	)		(30,308,765	)		(3,630,533	)		(7,652,086	)
Capital Share Transactions
Reinvestment of dividends		—			—			46,856			50,250
Net Assets
Total decrease in net assets		(19,582,270	)		(912,687	)		2,581,767			6,597,848
Beginning of period		507,851,820			508,764,507			101,724,487			95,126,639
End of period	$	488,269,550		$	507,851,820		$	104,306,254		$	101,724,487
Undistributed net investment income	$	2,970,779		$	8,050,320		$	623,475		$	810,526

¹  Dividends are determined in accordance with federal income tax regulations.

²  Dividends and distributions are determined in accordance with federal income tax regulations.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 125

Statements of Cash Flows

Six Months Ended February 28, 2013 (Unaudited)	BlackRock Core Bond Trust (BHK)			BlackRock Corporate High Yield Fund V, Inc. (HYV)1			BlackRock Corporate High Yield Fund VI, Inc. (HYT)1			BlackRock High Income Shares (HIS)
Cash Provided by Operating Activities
Net increase in net assets resulting from operations	$	13,279,882		$	39,406,135		$	39,848,273		$	8,659,195
Adjustments to reconcile net increase in net assets resulting from operations to net cash used for operating activities:
(Increase) decrease in interest receivable		(167,454	)		440,587			524,481			47,159
(Increase) decrease in swaps receivable		91,141			(63,147	)		(61,906	)		—
Increase in other assets		(30,391	)		—			—			—
Increase in prepaid expenses		(19,201	)		(6,558	)		(6,757	)		(3,533	)
(Increase) decrease in dividends receivable		—			1,546			(371	)		—
Increase in variation margin receivable		(16,176	)		(9,125	)		(9,625	)		(3,125	)
(Increase) decrease in cash pledged as collateral for financial futures contracts		(423,000	)		424,000			441,000			86,000
Decrease in cash pledged as collateral for swaps		4,180,000			—			—			—
Decrease in cash pledged as collateral for reverse repurchase agreements		27,381			—			—			—
Decrease in investment advisory fees payable		(21,384	)		(18,524	)		(23,493	)		(8,577	)
Increase in interest expense payable		27,610			66,977			68,937			20,604
Decrease in other accrued expenses payable		(5,869	)		(48,803	)		(26,236	)		(12,230	)
Decrease in variation margin payable		—			(69,600	)		(72,800	)		(21,600	)
Increase (decrease) in swaps payable		383,228			(78,215	)		(83,517	)		—
Increase in Officer’s and Trustees’ fees payable		1,421			17,770			19,742			1,809
Increase (decrease) in cash received as collateral for swaps		(100,000	)		600,000			600,000			—
Decrease in cash received as collateral for reverse repurchase agreements		(590,475	)		—			—			—
Net periodic and termination payments of swaps		229,525			2,554,799			2,641,126			43,127
Net realized and unrealized gain on investments		(2,730,358	)		(23,823,358	)		(24,925,651	)		(4,135,089	)
Amortization of premium and accretion of discount on investments		2,172,048			(734,827	)		(49,369	)		(84,191	)
Premiums received from options written		5,066,398			157,950			165,240			—
Proceeds from sales of long-term investments		390,405,852			242,463,197			255,726,999			67,437,159
Purchases of long-term investments		(389,406,029	)		(237,301,794	)		(248,773,738	)		(66,923,392	)
Proceeds from borrowed bond transactions		12,005,469			—			—			—
Payments for borrowed bond transactions		(11,850,463	)		—			—			—
Net proceeds from sales (purchases) of short-term securities		(2,143,100	)		(4,128,668	)		(4,840,770	)		(2,757,840	)
Premiums paid on closing options written		(9,490,509	)		—			—			—
Cash provided by operating activities		10,875,546			19,850,342			21,161,565			2,345,476
Cash Used for Financing Activities
Net borrowing of reverse repurchase agreements		755,038			—			—			—
Cash receipts from borrowings		—			99,000,000			102,000,000			28,000,000
Cash payments on borrowings		—			(100,000,000	)		(105,000,000	)		(26,000,000	)
Cash dividends paid to shareholders		(13,161,013	)		(20,808,322	)		(20,566,595	)		(5,525,449	)
Increase in bank overdraft		—			138,781			307,820			—
Cash used for financing activities		(12,405,975	)		(21,669,541	)		(23,258,775	)		(3,525,449	)
Cash Impact from Foreign Exchange Fluctuations
Cash impact from foreign exchange fluctuations		(29,111	)		(505	)		(3,489	)		(1,473	)
Cash and Foreign Currency
Net increase in cash and foreign currency		(1,559,540	)		(1,819,704	)		(2,100,699	)		(1,181,446	)
Cash and foreign currency at beginning of period		1,779,246			1,825,285			2,418,110			1,213,167
Cash and foreign currency at end of period	$	219,706		$	5,581		$	317,411		$	31,721
Cash Flow Information
Cash paid during the period for interest	$	238,572		$	743,970		$	765,367		$	161,235
Non-cash Financing Activities
Capital shares issued in reinvestment of dividends	$	221,789		$	150,281		$	441,434		$	182,367

¹  Consolidated Statement of Cash Flows.

See Notes to Financial Statements.

126 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

Statements of Cash Flows

Six Months Ended February 28, 2013 (Unaudited)	BlackRock High Yield Trust (BHY)			BlackRock Income Opportunity Trust Inc. (BNA)			BlackRock Income Trust, Inc. (BKT)			BlackRock Strategic Bond Trust (BHD)
Cash Provided by (Used for) Operating Activities
Net increase (decrease) in net assets resulting from operations	$	3,767,024		$	12,920,402		$	(4,044,234	)	$	6,165,444
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used for) operating activities:
(Increase) decrease in interest receivable		57,473			(52,860	)		(149,051	)		78,264
(Increase) decrease in swaps receivable		(13,705	)		100,390			69,020			(16,353	)
Increase in other assets		—			(99,337	)		(16,767	)		—
Increase in prepaid expenses		(1,425	)		(1,842	)		(987	)		(3,695	)
Increase in dividends receivable		(40	)		—			—			—
Increase in variation margin receivable		(1,000	)		(26,612	)		—			(2,434	)
(Increase) decrease in cash pledged as collateral for financial futures contracts		8,000			198,000			(623,000	)		—
(Increase) derease in cash pledged as collateral for reverse repurchase agreements		—			(94,837	)		50,000			—
(Increase) decrease in cash pledged as collateral for swaps		—			4,110,000			(1,400,000	)		20,000
Decrease in investment advisory fees payable		(3,632	)		(17,795	)		(35,876	)		(5,081	)
Increase in interest expense payable		7,051			39,487			13,108			18,171
Decrease in administration fees payable		(402	)		(2,976	)		(8,250	)		—
Decrease in other accrued expenses payable		(11,915	)		(19,144	)		(24,755	)		(7,921	)
Decrease in variation margin payable		(7,200	)		(36,766	)		(937,600	)		(14,398	)
Increase (decrease) in swaps payable		(20,058	)		405,864			(47,093	)		3,168
Increase (decrease) in Officer’s and Trustees’ fees payable		1,558			5,927			(540	)		2,041
Increase in cash received as collateral for reverese repurchase agreements		—			(127,000	)		420,000			—
Increase (decrease) in cash received as collateral for swaps		—			(100,000	)		2,600,000			—
Net periodic and termination payments of swaps		260,099			(194,576	)		213,051			334,402
Net realized and unrealized (gain) loss on investments		(2,186,715	)		(2,583,504	)		17,300,030			(3,065,268	)
Amortization of premium and accretion of discount on investments		3,375			2,461,762			5,484,056			58,233
Premiums received from options written		18,225			5,072,909			—			143,425
Proceeds from sales of long-term investments		25,299,243			393,992,380			1,579,169,796			33,761,253
Purchases of long-term investments		(23,683,345	)		(388,140,937	)		(1,672,359,053	)		(30,620,607	)
Proceeds from borrowed bond transactions		—			13,456,176			41,962,393			—
Payments for borrowed bond transactions		—			(13,113,568	)		(59,828,221	)		—
Net proceeds from sales (purchases) of short-term securities		(796,225	)		1,343,014			19,658,846			(3,272,481	)
Premiums paid on closing options written		—			(9,491,046	)		—			(158,423	)
Cash provided by (used for) operating activities		2,696,386			20,003,511			(72,535,127	)		3,417,740
Cash Provided by (Used for) Financing Activities
Net borrowing of reverse repurchase agreements		—			(7,252,913	)		88,084,978			—
Cash receipts from borrowings		12,000,000			—			—			21,000,000
Cash payments on borrowings		(13,000,000	)		—			—			(23,000,000	)
Cash dividends paid to shareholders		(1,708,532	)		(11,788,309	)		(15,549,851	)		(3,583,677	)
Increase in bank overdraft		—			—			—			337,516
Cash provided by (used for) financing activities		(2,708,532	)		(19,041,222	)		72,535,127			(5,246,161	)
Cash Impact from Foreign Exchange Fluctuations
Cash impact from foreign exchange fluctuations		(688	)		(7,427	)	—				(2,024	)
Cash and Foreign Currency
Net increase (decrease) in cash and foreign currency		(12,834	)		954,862		—				(1,830,445	)
Cash and foreign currency at beginning of period		24,065			873,136		—				1,893,941
Cash and foreign currency at end of period	$	11,231		$	1,827,998		—			$	63,496
Cash Flow Information
Cash paid during the period for interest	$	75,636		$	235,348		$	276,412		$	118,473
Non-cash Financing Activities
Capital shares issued in reinvestment of dividends	$	8,274		—			—			$	46,856

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 127

Financial Highlights BlackRock Core Bond Trust (BHK)

	Six Months Ended February 28, 2013 (Unaudited)			Year Ended August 31,												Period November 1, 2007 to August 31, 2008			Year Ended October 31, 2007
				2012			2011			2010			2009
Per Share Operating Performance
Net asset value, beginning of period	$	15.21		$	13.78		$	14.19		$	12.56		$	12.81		$	13.63		$	13.82
Net investment income		0.45	1		0.88	1		0.83	1		0.87	1		0.80	1		0.50	1		0.74
Net realized and unrealized gain (loss)		0.05			1.37			(0.36	)		1.76			(0.28	)		(0.69	)		(0.13	)
Net increase (decrease) from investment operations		0.50			2.25			0.47			2.63			0.52			(0.19	)		0.61
Dividends and distributions from:
Net investment income		(0.50	)		(0.82	)2		(0.88	)2		(1.00	)2		(0.77	)2		(0.61	)2		(0.61	)2
Tax return of capital		—			—			—			—			—			(0.02	)2		(0.19	)2
Total dividends and distributions		(0.50	)		(0.82	)		(0.88	)		(1.00	)		(0.77	)		(0.63	)		(0.80	)
Net asset value, end of period	$	15.21		$	15.21		$	13.78		$	14.19		$	12.56		$	12.81		$	13.63
Market price, end of period	$	14.99		$	15.41		$	12.69		$	13.92		$	11.98		$	11.51		$	12.23
Total Investment Return3
Based on net asset value		3.30%	4		17.06%			4.02%			22.44%			5.28%			(1.00)%	4		5.04%
Based on market price		0.49%	4		28.78%			(2.35)%			25.93%			11.76%			(0.87)%	4		1.29%
Ratios to Average Net Assets
Total expenses		1.04%	5		0.95%			1.02%			1.18%			1.06%			2.29%	5		1.60%
Total expenses after fees waived and paid indirectly		1.00%	5		0.94%			1.02%			1.18%			1.06%			2.29%	5		1.60%
Total expenses after fees waived and paid indirectly and excluding interest expense and fees		0.87%	5		0.86%			0.93%			0.95%			0.83%			0.89%	5		0.78%
Net investment income		5.91%	5		6.13%			6.05%			6.62%			7.09%			4.55%	5		5.36%
Supplemental Data
Net assets, end of period (000)	$	411,200		$	411,136		$	372,295		$	383,540		$	339,524		$	346,177		$	368,335
Borrowings outstanding, end of period (000)	$	183,434		$	182,679		$	152,301		$	168,938		$	74,572		$	107,690		$	103,354
Average borrowings outstanding, during the period (000)	$	195,158		$	143,234		$	151,080		$	162,760		$	73,467		$	134,784		$	44,786
Portfolio turnover		63%	6		290%	7		824%	8		641%	9		315%	10		598%	11		122%
Asset coverage, end of period per $1,000	$	3,242		$	3,251		$	3,444		$	3,270		$	5,553		$	4,215		$	4,564

¹ Based on average shares outstanding.

² Dividends and distributions are determined in accordance with federal income tax regulations.

³ Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

⁴ Aggregate total investment return.

⁵ Annualized.

⁶ Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 42%.

⁷ Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 237%.

⁸ Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 544%.

⁹ Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 534%.

¹⁰ Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 184%.

¹¹ Includes TBA transactions. Excluding these transactions, the portfolio turnover would have been 337%.

See Notes to Financial Statements.

128 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

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

	Six Months Ended February 28, 20131 (Unaudited)			Year Ended August 31,
				20121			2011			2010			2009			2008
Per Share Operating Performance
Net asset value, beginning of period	$	12.63		$	11.71		$	11.61		$	9.71		$	11.94		$	13.83
Net investment income2		0.54			1.08			1.09			1.06			1.07			1.18
Net realized and unrealized gain (loss)		0.65			0.91			0.07			1.86			(2.10	)		(1.85	)
Net increase (decrease) from investment operations		1.19			1.99			1.16			2.92			(1.03	)		(0.67	)
Dividends and distributions from:
Net investment income		(0.64	)		(1.07	)3		(1.06	)3		(1.02	)3		(1.20	)3		(1.17	)3
Net realized gain		—			—			—			—			—			(0.05	)3
Total dividends and distributions		(0.64	)		(1.07	)		(1.06	)		(1.02	)		(1.20	)		(1.22	)
Net asset value, end of period	$	13.18		$	12.63		$	11.71		$	11.61		$	9.71		$	11.94
Market price, end of period	$	13.09		$	13.51		$	11.55		$	11.40		$	9.32		$	10.15
Total Investment Return4
Based on net asset value		9.62%	5		17.92%			10.29%			31.40%			(3.83)%			(3.99)%
Based on market price		1.78%	5		27.88%			10.79%			34.42%			8.59%			(7.78)%
Ratios to Average Net Assets
Total expenses		1.41%	6		1.42%			1.34%			1.26%			1.84%			2.11%
Total expenses after fees waived and paid indirectly		1.41%	6		1.42%			1.34%			1.26%			1.84%			2.11%
Total expenses after fees waived and paid indirectly and excluding interest expense and income tax		1.03%	6,7		1.08%	8		1.02%			0.99%			1.16%			0.97%
Net investment income		8.35%	6		8.96%			8.82%			9.52%			13.00%			9.16%
Supplemental Data
Net assets, end of period (000)	$	435,228		$	416,701		$	385,687		$	382,603		$	320,045		$	393,389
Borrowings outstanding, end of period (000)	$	174,000		$	175,000		$	129,000		$	92,000		$	54,000		$	94,700
Average borrowings outstanding, during the period (000)	$	173,282		$	140,036		$	119,652		$	79,427		$	65,403		$	106,140
Portfolio turnover		40%			61%			87%			90%			65%			46%
Asset coverage, end of period per $1,000	$	3,501		$	3,381		$	3,990		$	5,159		$	6,927		$	5,154

¹ Consolidated Financial Highlights.

² Based on average shares outstanding.

³ Dividends and distributions are determined in accordance with federal income tax regulations.

⁴ Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

⁵ Aggregate total investment return.

⁶ Annualized.

⁷ 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 0.98%.

⁸ 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 0.99%.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 129

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

	Six Months Ended February 28, 20131 (Unaudited)			Year Ended August 31,
				20121			2011			2010			2009			2008
Per Share Operating Performance
Net asset value, beginning of period	$	12.32		$	11.49		$	11.38		$	9.68		$	11.89		$	13.81
Net investment income2		0.51			1.04			1.06			1.05			1.05			1.16
Net realized and unrealized gain (loss)		0.62			0.83			0.05			1.67			(2.07	)		(1.87	)
Net increase (decrease) from investment operations		1.13			1.87			1.11			2.72			(1.02	)		(0.71	)
Dividends from net investment income		(0.60	)		(1.04	)3		(1.00	)3		(1.02	)3		(1.19	)3		(1.21	)3
Net asset value, end of period	$	12.85		$	12.32		$	11.49		$	11.38		$	9.68		$	11.89
Market price, end of period	$	12.72		$	12.96		$	11.21		$	11.19		$	9.47		$	10.14
Total Investment Return4
Based on net asset value		9.31%	5		17.14%			9.95%			29.26%			(4.03)%			(4.30)%
Based on market price		2.86%	5		26.30%			9.09%			29.92%			10.09%			(7.24)%
Ratios to Average Net Assets
Total expenses		1.54%	6		1.51%			1.41%			1.34%			2.01%			2.24%
Total expenses after fees waived and paid indirectly		1.54%	6		1.51%			1.41%			1.34%			2.01%			2.24%
Total expenses after fees waived and paid indirectly and excluding interest expense and income tax		1.17%	6,7		1.19%	8		1.12%			1.09%			1.28%			1.10%
Net investment income		8.22%	6		8.84%			8.80%			9.52%			12.82%			9.02%
Supplemental Data
Net assets, end of period (000)	$	455,148		$	435,955		$	405,697		$	401,760		$	341,415		$	419,502
Borrowings outstanding, end of period (000)	$	178,000		$	181,000		$	130,000		$	89,000		$	58,000		$	110,900
Average borrowings outstanding, during the period (000)	$	178,282		$	142,342		$	115,512		$	76,356		$	73,784		$	113,996
Portfolio turnover		41%			61%			87%			85%			60%			45%
Asset coverage, end of period per $1,000	$	3,557		$	3,409		$	4,121		$	5,514		$	6,886		$	4,783

¹ Consolidated Financial Highlights.

² Based on average shares outstanding.

³ Dividends are determined in accordance with federal income tax regulations.

⁴ Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

⁵ Aggregate total investment return.

⁶ Annualized.

⁷ 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 1.12%.

⁸ 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 1.09%.

See Notes to Financial Statements.

130 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

Financial Highlights BlackRock High Income Shares (HIS)

	Six Months Ended February 28, 2013 (Unaudited)			Year Ended August 31,												Period January 1, 2008 to August 31, 2008			Year Ended December 31, 2007
				2012			2011			2010			2009
Per Share Operating Performance
Net asset value, beginning of period	$	2.26		$	2.18		$	2.19		$	1.85		$	2.23		$	2.47		$	2.68
Net investment income		0.09	1		0.20	1		0.20	1		0.20	1		0.19	1		0.15	1		0.24
Net realized and unrealized gain (loss)		0.06			0.08			—			0.31			(0.36	)		(0.26	)		(0.21	)
Net increase (decrease) from investment operations		0.15			0.28			0.20			0.51			(0.17	)		(0.11	)		0.03
Dividends from net investment income		(0.10	)		(0.20	)2		(0.21	)2		(0.17	)2		(0.21	)2		(0.13	)2		(0.24	)2
Net asset value, end of period	$	2.31		$	2.26		$	2.18		$	2.19		$	1.85		$	2.23		$	2.47
Market price, end of period	$	2.42		$	2.40		$	2.10		$	2.09		$	1.68		$	1.88		$	2.14
Total Investment Return3
Based on net asset value		6.92%	4		13.91%			9.56%			28.95%			(3.01)%			(4.00)%	4		1.58%
Based on market price		5.48%	4		25.58%			10.59%			35.52%			4.47%			(6.59)%	4		(7.51)%
Ratios to Average Net Assets
Total expenses		1.58%	5		1.54%			1.49%			1.49%			2.01%			1.98%	5		3.56%
Total expenses after fees waived and paid indirectly		1.58%	5		1.54%			1.49%			1.49%			2.01%			1.98%	5		3.55%
Total expenses after fees waived and paid indirectly and excluding interest expense		1.28%	5,6		1.29%	6		1.25%			1.27%			1.41%			1.05%	5		1.27%
Net investment income		7.97%	5		9.19%			8.66%			9.34%			12.06%			9.52%	5		8.89%
Supplemental Data
Net assets applicable, end of period (000)	$	126,879		$	123,745		$	118,809		$	119,642		$	100,921		$	121,808		$	135,098
Borrowings outstanding, end of period (000)	$	44,000		$	42,000		$	29,000		$	25,000		$	18,000		$	27,000		$	46,000
Average borrowings outstanding, during the period (000)	$	38,862		$	30,746		$	26,729		$	21,027		$	21,220		$	27,069		$	55,868
Portfolio turnover		41%			63%			90%			85%			55%			25%			69%
Asset coverage, end of period per $1,000	$	3,884		$	3,946		$	5,097		$	5,786		$	6,607		$	5,512		$	3,937

¹ Based on average shares outstanding.

² Dividends are determined in accordance with federal income tax regulations.

³ Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

⁴ Aggregate total investment return.

⁵ Annualized.

⁶ 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 were 1.22% and 1.19%, respectively.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 131

Financial Highlights BlackRock High Yield Trust (BHY)

	Six Months Ended February 28, 2013 (Unaudited)			Year Ended August 31,												Period November 1, 2007 to August 31, 2008			Year Ended October 31, 2007
				2012			2011			2010			2009
Per Share Operating Performance
Net asset value, beginning of period	$	7.29		$	6.79		$	6.69		$	5.78		$	6.84		$	7.91		$	7.85
Net investment income		0.27	1		0.53	1		0.51	1		0.51	1		0.51	1		0.50	1		0.63
Net realized and unrealized gain (loss)		0.32			0.50			0.11			0.92			(1.00	)		(1.06	)		0.04
Net increase (decrease) from investment operations		0.59			1.03			0.62			1.43			(0.49	)		(0.56	)		0.67
Dividends and distributions from:
Net investment income		(0.27	)		(0.53	)2		(0.51	)2		(0.50	)2		(0.55	)2		(0.51	)2		(0.61	)2
Tax return of capital		—			—			(0.01	)2		(0.02	)2		(0.02	)2		—			—
Total dividends and distributions		(0.27	)		(0.53	)		(0.52	)		(0.52	)		(0.57	)		(0.51	)		(0.61	)
Net asset value, end of period	$	7.61		$	7.29		$	6.79		$	6.69		$	5.78		$	6.84		$	7.91
Market price, end of period	$	8.08		$	8.04		$	6.60		$	6.44		$	5.84		$	5.96		$	6.92
Total Investment Return3
Based on net asset value		8.14%	4		15.70%			9.66%			25.70%			(5.30)%			(6.47)%	4		9.03%
Based on market price		4.11%	4		31.27%			10.73%			19.76%			9.81%			(6.85)%	4		(3.63)%
Ratios to Average Net Assets
Total expenses		2.19%	5		2.01%			2.04%			2.10%			2.61%			2.61%	5		4.16%
Total expenses after fees waived and paid indirectly		2.19%	5		2.01%			2.04%			2.10%			2.61%			2.61%	5		4.14%
Total expenses after fees waived and paid indirectly and excluding interest expense and fees		1.84%	5,6		1.79%	6		1.85%			1.91%			2.16%			1.77%	5		2.10%
Net investment income		7.32%	5		7.59%			7.18%			7.89%			10.22%			8.34%	5		7.84%
Supplemental Data
Net assets, end of period (000)	$	48,935		$	46,876		$	43,644		$	42,980		$	37,137		$	43,897		$	50,782
Borrowings outstanding, end of period (000)	$	18,000		$	19,000		$	6,000		$	8,000		$	4,000		$	6,250		$	9,250
Average borrowings outstanding, during the period (000)	$	17,657		$	10,615		$	7,427		$	6,427		$	5,223		$	7,443		$	17,710
Portfolio turnover		40%			59%			81%			80%			54%			34%			69%
Asset coverage, end of period per $1,000	$	3,719		$	3,467		$	8,274		$	6,373		$	10,284		$	8,023		$	6,490

¹ Based on average shares outstanding.

² Dividends and distributions are determined in accordance with federal income tax regulations.

³ Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

⁴ Aggregate total investment return.

⁵ Annualized.

⁶ 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 cost was 1.80% and 1.69%, respectively.

See Notes to Financial Statements.

132 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

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

	Six Months Ended February 28, 2013 (Unaudited)			Year Ended August 31,												Period November 1, 2007 to August 31, 2008			Year Ended October 31, 2007
				2012			2011			2010			2009
Per Share Operating Performance
Net asset value, beginning of period	$	11.84		$	10.77		$	11.07		$	10.02		$	10.35		$	11.02		$	11.17
Net investment income		0.34	1		0.67	1		0.63	1		0.59	1		0.59	1		0.53	1		0.62
Net realized and unrealized gain (loss)		0.04			1.05			(0.28	)		1.25			(0.31	)		(0.69	)		(0.11	)
Net increase (decrease) from investment operations		0.38			1.72			0.35			1.84			0.28			(0.16	)		0.51
Dividends and distributions from:
Net investment income		(0.34	)		(0.65	)2		(0.65	)2		(0.79	)2		(0.61	)2		(0.51	)2		(0.61	)2
Tax return of capital		—			—			—			—			—			—			(0.05	)2
Total dividends and distributions		(0.34	)		(0.65	)		(0.65	)		(0.79	)		(0.61	)		(0.51	)		(0.66	)
Net asset value, end of period	$	11.88		$	11.84		$	10.77		$	11.07		$	10.02		$	10.35		$	11.02
Market price, end of period	$	11.20		$	11.58		$	9.85		$	10.56		$	9.65		$	9.82		$	10.19
Total Investment Return3
Based on net asset value		3.33%	4		16.81%			3.91%			19.83%			3.90%			(1.07)%	4		5.11%
Based on market price		(0.39)%	4		24.92%			(0.37)%			18.69%			5.46%			1.51%	4		2.62%
Ratios to Average Net Assets
Total expenses		0.94%	5		0.90%			0.95%			1.09%			0.95%			2.25%	5		2.01%
Total expenses after fees waived and paid indirectly		0.94%	5		0.90%			0.95%			1.09%			0.95%			2.25%	5		2.00%
Total expenses after fees waived and paid indirectly and excluding interest expense		0.81%	5		0.82%			0.85%			0.86%			0.85%			0.83%	5		0.87%
Net investment income		5.75%	5		5.97%			5.94%			5.81%			6.45%			5.89%	5		5.68%
Supplemental Data
Net assets, end of period (000)	$	409,205		$	408,068		$	371,175		$	381,379		$	345,101		$	356,456		$	379,605
Borrowings outstanding, end of period (000)	$	180,802		$	188,055		$	154,883		$	157,776		$	77,474		$	100,740		$	105,262
Average borrowings outstanding, during the period (000)	$	192,811		$	151,411		$	148,617		$	151,700		$	49,573		$	131,462		$	68,241
Portfolio turnover		64%	6		285%	7		774%	8		720%	9		270%	10		441%	11		196%
Asset coverage, end of period per $1,000	$	3,263		$	3,170		$	3,396		$	3,417		$	5,454		$	4,538		$	4,606

 ¹ Based on average shares outstanding.

 ² Dividends and distributions are determined in accordance with federal income tax regulations.

 ³ Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

 ⁴ Aggregate total investment return.

 ⁵ Annualized.

 ⁶ Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 42%.

 ⁷ Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 231%.

 ⁸ Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 492%.

 ⁹ Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 608%.

¹⁰ Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 165%.

¹¹ Includes TBA transactions. Excluding these transactions, the portfolio turnover would have been 168%.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 133

Financial Highlights BlackRock Income Trust, Inc. (BKT)

	Six Months Ended February 28, 2013 (Unaudited)			Year Ended August 31,												Period November 1, 2007 to August 31, 2008			Year Ended October 31, 2007
				2012			2011			2010			2009
Per Share Operating Performance
Net asset value, beginning of period	$	7.94		$	7.96		$	7.76		$	7.12		$	6.94		$	6.53		$	6.48
Net investment income		0.16	1		0.39	1		0.35	1		0.20	1		0.28	1		0.26	1		0.30
Net realized and unrealized gain (loss)		(0.22	)		0.06			0.19			0.73			0.19			0.40			0.12
Net increase (decrease) from investment operations		(0.06	)		0.45			0.54			0.93			0.47			0.66			0.42
Dividends and distributions from:
Net investment income		(0.24	)		(0.27	)2		(0.34	)2		(0.26	)2		(0.29	)2		(0.25	)2		(0.29	)2
Net realized gain		—			(0.20	)2		—			(0.03	)2		—			—			—
Tax return of capital		—			—			—			—			—			—			(0.08	)2
Total dividends and distributions		(0.24	)		(0.47	)		(0.34	)		(0.29	)		(0.29	)		(0.25	)		(0.37	)
Net asset value, end of period	$	7.64		$	7.94		$	7.96		$	7.76		$	7.12		$	6.94		$	6.53
Market price, end of period	$	7.13		$	7.63		$	7.18		$	6.95		$	6.53		$	6.07		$	5.81
Total Investment Return3
Based on net asset value		(0.60)%	4		6.24%			7.70%			13.86%			7.64%			10.82%	4		7.06%
Based on market price		(3.47)%	4		13.19%			8.47%			11.19%			12.87%			8.94%	4		1.69%
Ratios to Average Net Assets
Total expenses		1.02%	5		0.97%			1.06%			1.05%			1.09%			1.63%	5		2.77%
Total expenses after fees waived and before fees paid indirectly		1.02%	5		0.97%			1.05%			1.02%			1.08%			1.63%	5		2.77%
Total expenses after fees waived and paid indirectly		1.02%	5		0.97%			1.05%			1.02%			1.08%			1.63%	5		2.76%
Total expenses after fees waived and paid indirectly and excluding interest expense		0.91%	5		0.90%			0.94%			0.92%			0.93%			0.91%	5		0.98%
Net investment income		4.24%	5		4.86%			4.43%			2.72%			4.09%			4.67%	5		4.60%
Supplemental Data
Net assets, end of period (000)	$	488,270		$	507,852		$	508,765		$	496,260		$	455,529		$	444,054		$	417,651
Borrowings outstanding, end of period (000)	$	207,791		$	119,706		$	233,676		$	106,985		$	11,815			—		$	33,895
Average borrowings outstanding, during the period (000)	$	180,117		$	183,890		$	116,771		$	23,316		$	537		$	61,777		$	93,325
Portfolio turnover		214%	6		487%	7		899%	8		883%	9		700%	10		263%	11		250%
Asset coverage, end of period per $1,000	$	3,350		$	5,242		$	3,177		$	5,639		$	39,555			—		$	13,322

¹ Based on average shares outstanding.

² Dividends and distributions are determined in accordance with federal income tax regulations.

³ Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

⁴ Aggregate total investment return.

⁵ Annualized.

⁶ Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 134%.

⁷ Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 230%.

⁸ Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 387%.

⁹ Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 207%.

¹⁰ Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 184%.

¹¹ Includes TBA transactions. Excluding these transactions, the portfolio turnover would have been 0%.

See Notes to Financial Statements.

134 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

Financial Highlights BlackRock Strategic Bond Trust (BHD)

	Six Months Ended February 28, 2013 (Unaudited)			Year Ended August 31,												Period November 1, 2007 to August 31, 2008			Year Ended October 31, 2007
				2012			2011			2010			2009
Per Share Operating Performance
Net asset value, beginning of period	$	14.40		$	13.48		$	13.57		$	12.12		$	12.76		$	13.80		$	13.83
Net investment income		0.49	1		0.99	1		1.06	1		1.01	1		0.93	1		0.76	1		0.95
Net realized and unrealized gain (loss)		0.38			1.01			(0.04	)		1.35			(0.69	)		(1.03	)		(0.06	)
Net increase (decrease) from investment operations		0.87			2.00			1.02			2.36			0.24			(0.27	)		0.89
Dividends and distributions from net investment income		(0.51	)		(1.08	)2		(1.11	)2		(0.91	)2		(0.88	)2		(0.77	)2		(0.92	)2
Net asset value, end of period	$	14.76		$	14.40		$	13.48		$	13.57		$	12.12		$	12.76		$	13.80
Market price, end of period	$	15.09		$	14.52		$	12.93		$	13.17		$	11.43		$	10.85		$	11.88
Total Investment Return3
Based on net asset value		6.12%	4		15.66%			8.09%			20.38%			3.99%			(1.19)%	4		7.26%
Based on market price		7.60%	4		21.58%			6.83%			23.88%			15.34%			(2.40)%	4		(0.62)%
Ratios to Average Net Assets
Total expenses		1.50%	5		1.45%			1.52%			1.13%			1.00%			0.93%	5		1.45%
Total expenses after fees waived and before fees paid indirectly		1.50%	5		1.45%			1.51%			1.11%			0.92%			0.82%	5		1.27%
Total expenses after fees waived and paid indirectly		1.50%	5		1.45%			1.51%			1.11%			0.92%			0.82%	5		1.27%
Total expenses after fees waived and paid indirectly and excluding interest expense and fees2		1.24%	5,6		1.24%	6		1.26%			1.04%			0.92%			0.81%	5		0.87%
Net investment income		6.71%	5		7.15%			7.59%			7.77%			8.67%			6.85%	5		6.86%
Supplemental Data
Net assets, end of period (000)	$	104,306		$	101,724		$	95,127		$	95,794		$	85,581		$	90,092		$	97,410
Borrowings outstanding, end of period (000)	$	28,000		$	30,000		$	24,000		$	12,000			—		$	1,571		$	413
Average borrowings outstanding during the period (000)	$	29,384		$	22,089		$	22,696		$	5,701		$	303		$	391		$	7,240
Portfolio turnover		25%			47%			72%			83%			61%			27%			34%
Asset coverage, end of period per $1,000	$	4,725		$	4,391		$	4,964		$	8,983			—		$	58,347		$	236,789

¹ Based on average shares outstanding.

² Dividends and distributions are determined in accordance with federal income tax regulations.

³ Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

⁴ Aggregate total investment return.

⁵ Annualized.

⁶ 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 cost were 1.19% and 1.14%, respectively.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 135

Notes to Financial Statements (Unaudited)  

1. Organization and Significant Accounting Policies:

BlackRock Core Bond Trust (“BHK”), BlackRock Corporate High Yield Fund V, Inc. (“HYV”), BlackRock Corporate High Yield Fund VI, Inc. (“HYT”), BlackRock High Income Shares (“HIS”), BlackRock High Yield Trust (“BHY”), BlackRock Income Opportunity Trust, Inc. (“BNA”), BlackRock Income Trust, Inc. (“BKT”) and BlackRock Strategic Bond Trust (“BHD”) (collectively, the “Trusts”) are registered under the 1940 Act, as diversified, closed-end management investment companies. HYV, HYT, BNA and BKT are organized as Maryland corporations. BHK, BHY and BHD are organized as Delaware statutory trusts. HIS is organized as a Massachusetts business trust. The Trusts’ financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”), which may require management to make estimates and assumptions that affect the reported amounts 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 Boards of Trustees of the Trusts are collectively referred to throughout this report as the “Board of Trustees” or the “Board”, and the directors/trustees thereof are collectively referred to throughout this report as “Trustees”. The Trusts determine and make available for publication the NAVs of their Common Shares on a daily basis.

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

Basis of Consolidation: The accompanying consolidated financial statements of HYV and HYT include the accounts of BLK HYV (Luxembourg) Investments, S.a.r.l. and BLK HYT (Luxembourg) Investments, S.a.r.l. (the “Taxable Subsidiaries”), which are wholly owned taxable subsidiaries of the Trusts which hold shares of private Canadian companies, Larcina Energy Ltd. and Osum Oil Sands Corp. Such shares are held in the Taxable Subsidiaries in order to realize benefits under the Double Tax Avoidance Convention between Canada and Luxembourg, the result of which is gains on the sale of such shares will not be subject to capital gains taxes in Canada. Income earned on the investments held by the Taxable Subsidiaries may be taxable to such subsidiaries in Luxembourg. A tax provision for income, if any, is shown as income tax on 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) on the Consolidated Statements of Operations. Intercompany accounts and transactions, if any, have been eliminated. The Taxable Subsidiaries are subject to the same investment policies and restrictions that apply to the Trusts.

Valuation: US GAAP defines fair value as the price the Trusts would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Trusts determine the fair values of 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 Trusts for all financial instruments.

The Trusts value their bond investments on the basis of last available bid prices or current market quotations provided by dealers or pricing services. Floating rate loan interests are valued at the mean of the bid prices from one or more brokers or dealers as obtained from a pricing service. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market transactions in comparable investments, various relationships observed in the market between investments and calculated yield measures. Asset-backed and mortgage-backed securities are valued by independent pricing services using models that consider estimated cash flows of each tranche of the security, establish a benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique attributes of the tranche. Financial futures contracts traded on exchanges are valued at their last sale price. To-be-announced (“TBA”) commitments are valued on the basis of last available bid prices or current market quotations provided by pricing services. Swap agreements are valued utilizing quotes received daily by the Trusts’ pricing service or through brokers, which are derived using daily swap curves and models that incorporate a number of market data factors, such as discounted cash flows, trades and values of the underlying reference instruments. Investments in open-end registered investment companies are valued at NAV each business day. Short-term securities with remaining maturities of 60 days or less may be valued at amortized cost, which approximates fair value.

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

Equity investments traded on a recognized securities exchange or the NASDAQ Global Market System (“NASDAQ”) are valued at the last reported sale price that day or the NASDAQ official closing price, if applicable. For equity investments traded on more than one exchange, the last reported sale price on the exchange where the stock is primarily traded is used. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last available bid (long positions) or ask (short positions) price. If no bid 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

136 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

Notes to Financial Statements (continued)

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 Trust might reasonably expect to receive from the current sale of that asset in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, 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 Trusts’ 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.

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 Trusts’ 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 Trusts’ books and records are maintained in US dollars. Purchases and sales of investment securities are recorded at the rates of exchange prevailing on the respective date of such transactions. Generally, when the US dollar rises in value against a foreign currency, the Trusts’ investments denominated in that currency will lose value because that currency is worth fewer US dollars; the opposite effect occurs if the US dollar falls in relative value.

The Trusts do not isolate the portion of the results of operations arising as a result of changes in the foreign exchange rates from the changes in the market prices of investments held or sold for financial reporting purposes. Accordingly, the effects of changes in foreign currency exchange rates on investments are not segregated in the Statements of Operations from the effects of changes in market prices of those investments but are included as a component of net realized and unrealized gain (loss) from investments. The Trusts report realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are treated as ordinary income for federal income tax purposes.

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

Certain Trusts may purchase certain mortgage pass-through securities (the “Mortgage Assets”). 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

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 137

Notes to Financial Statements (continued)

pass-through certificates, which are solely the obligations of Freddie Mac and Fannie Mae, are not backed by or entitled to the full faith and credit of the United States but are supported by the right of the issuer to borrow from the Treasury.

Collateralized Debt Obligations: Certain Trusts may invest in collateralized debt obligations (“CDOs”), which include collateralized bond obligations (“CBOs”) and collateralized loan obligations (“CLOs”). CBOs and CLOs are types of asset-backed securities. A CDO is an 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 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 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 its initial investment in IOs.

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

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

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

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

138 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

Notes to Financial Statements (continued)

the certificate of deposit rate. Floating rate loan interests may involve foreign borrowers, and investments may be denominated in foreign currencies. The Trusts consider these investments to be investments in debt securities for purposes of their investment policies.

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

Floating rate loan interests are usually freely callable at the borrower’s option. The Trusts may invest in such loans in the form of participations in loans (“Participations”) or assignments (“Assignments”) of all or a portion of loans from third parties. Participations typically will result in the Trusts having a contractual relationship only with the lender, not with the borrower. The Trusts will have the right to receive payments of principal, interest and any fees to which it is entitled only from the lender selling the Participation and only upon receipt by the lender of the payments from the borrower. In connection with purchasing Participations, the Trusts generally will have no right to enforce compliance by the borrower with the terms of the loan agreement, nor any rights of offset against the borrower, and the Trusts may not benefit directly from any collateral supporting the loan in which it has purchased the Participation. As a result, the Trusts will assume the credit risk of both the borrower and the lender that is selling the Participation. The Trusts’ investment in loan participation interests involves the risk of insolvency of the financial intermediaries who are parties to the transactions. In the event of the insolvency of the lender selling the Participation, the Trusts may be treated as a general creditor of the lender and may not benefit from any offset between the lender and the borrower. Assignments typically result in the Trusts having a direct contractual relationship with the borrower, and the Trusts may enforce compliance by the borrower with the terms of the loan agreement.

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

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

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

TBA Commitments: Certain Trusts may enter into TBA commitments. TBA commitments are forward agreements for the purchase or sale of mortgage-backed securities for a fixed price, with payment and delivery on an agreed upon future settlement date. The specific securities to be delivered are not identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate and mortgage terms. The Trusts generally enter into TBA commitments with the intent to take possession of or deliver the underlying mortgage-backed securities but

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Notes to Financial Statements (continued)

can extend the settlement or roll the transaction. TBA commitments involve a risk of loss if the value of the security to be purchased or sold declines or increases, respectively, prior to settlement date.

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

Treasury Roll Transactions: Certain Trusts may enter into treasury roll transactions. In a treasury roll transaction, the Trusts sell a Treasury security to a counterparty with a simultaneous agreement to repurchase the same security at an agreed upon price and future settlement date. The Trusts receive cash from the sale of the Treasury security to use for other investment purposes. The difference between the sale price and repurchase price represents net interest income or net interest expense reflective of an agreed upon rate between the Trusts and the counterparty over the term of the borrowing. For US GAAP purposes, a treasury roll transaction is accounted for as a secured borrowing and not as a purchase or sale. During the term of the borrowing, interest income from the Treasury security and the related interest expense on the secured borrowing is recorded by the Trusts on an accrual basis. The Trusts will benefit from the transaction if the income earned on the investment purchased with the cash received in the treasury roll transaction exceeds the interest expense incurred by the Trusts. If the interest expense exceeds the income earned, the Trusts’ net investment income and dividends to shareholders may be adversely impacted. Treasury roll transactions involve the risk that the market value of the securities that the Trusts are required to repurchase may decline below the agreed upon repurchase price of those securities.

Reverse Repurchase Agreements: Certain Trusts may enter into reverse repurchase agreements with qualified third party broker-dealers. In a reverse repurchase agreement, the Trusts sell securities to a bank or broker-dealer and agree 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 Statements 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 Trusts 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 Trusts may utilize reverse repurchase agreements when it is anticipated that the interest income to be earned from the investment of the proceeds of the transaction is greater than the interest expense of the transaction. Reverse repurchase agreements involve leverage risk and also the risk that the market value of the securities that the Trusts are obligated to repurchase under the agreement may decline below the repurchase price. In the event the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes insolvent, the Trusts’ use of the proceeds of the agreement may be restricted while the other party, or its trustee or receiver, determines whether or not to enforce the Trusts’ obligation to repurchase the securities.

Segregation and Collateralization: In cases in which the 1940 Act and the interpretive positions of the Securities and Exchange Commission (“SEC”) require that each Trust either delivers collateral or segregates assets in connection with certain investments (e.g., dollar rolls, TBA sale commitments, financial futures contracts, foreign currency exchange contracts, swaps, short sales and options written), or certain borrowings (e.g., reverse repurchase agreements, treasury roll transactions and loan payable), each Trust 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, a Trust engaging in such transactions may have requirements to deliver/deposit securities to/with an exchange or broker-dealer as collateral for certain investments.

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

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 distributions that exceeds a Trust’s current and accumulated earnings and profits, which are measured on a tax basis, will constitute a nontaxable return of capital. Distributions in excess of a Trust’s taxable income and net capital gains, but not in excess of a Trust’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.

140 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

Notes to Financial Statements (continued)

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

Each Trust files US federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Trust’s US federal tax returns remains open for each of the four years ended August 31, 2012. The statutes of limitations on each Trust’s 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 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 Trusts financial statement disclosures.

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

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

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

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

2. Derivative Financial Instruments:

The Trusts engage in various portfolio investment strategies using derivative contracts both to increase the returns of the Trusts and/or to economically hedge, or protect, their exposure to certain risks such as credit risk, equity risk, interest rate risk or 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 Trusts’ maximum risk of loss from counterparty credit risk on OTC derivatives is generally the aggregate unrealized gain netted against any collateral pledged by/posted to the counterparty. For OTC options purchased, the Trusts bear the risk of loss in the amount of the premiums paid plus the positive change in market values net of any collateral received on the options should the counterparty fail to perform under the contracts. Options written by the Trusts do not give rise to counterparty credit risk, as options written obligate the Trusts 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 Trusts may mitigate counterparty risk by procuring collateral and through netting provisions included within an International Swaps and Derivatives Association, Inc. master agreement (“ISDA Master Agreement”) implemented between a Trust and each of its respective counterparties. An ISDA Master Agreement allows each Trust to offset with each separate counterparty certain derivative financial instrument’s payables and/or receivables with collateral held. The amount of collateral moved to/from applicable counterparties is generally based upon minimum transfer amounts of up to $500,000. To the extent amounts due to the Trusts from their counterparties are not fully collateralized, contractually or otherwise, the Trusts bear the risk of loss from counterparty non-performance. See Note 1 “Segregation and Collateralization” for information with respect to collateral practices. In addition, the Trusts manage counterparty risk by entering into agreements only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties.

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

Financial Futures Contracts: The Trusts purchase or sell financial futures contracts and options on financial futures contracts to gain exposure to, or economically hedge against, changes in interest rates (interest rate risk), changes in the value of equity securities (equity risk) or foreign currencies

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 141

Notes to Financial Statements (continued)

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

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

Options: The Trusts purchase and write call and put options to increase or decrease their exposure to underlying instruments (including equity risk and interest rate risk) and/or, in the case of options written, to generate gains from options premiums. A call option gives the purchaser (holder) of the option the right (but not the obligation) to buy, and obligates the seller (writer) to sell (when the option is exercised), the underlying instrument at the exercise or strike price at any time or at a specified time during the option period. A put option gives the holder the right to sell and obligates the writer to buy the underlying instrument at the exercise or strike price at any time or at a specified time during the option period. When the Trusts purchase (write) an option, an amount equal to the premium paid (received) by the Trusts is reflected as an asset (liability). The amount of the asset (liability) is subsequently marked-to-market to reflect the current market value of the option purchased (written). When an instrument is purchased or sold through an exercise of an option, the related premium paid (or received) is added to (or deducted from) the basis of the instrument acquired or deducted from (or added to) the proceeds of the instrument sold. When an option expires (or the Trusts enter into a closing transaction), the Trusts realize a gain or loss on the option to the extent of the premiums received or paid (or gain or loss to the extent the cost of the closing transaction exceeds the premiums received or paid). When the Trusts write a call option, such option is “covered,” meaning that the Trusts hold the underlying instrument subject to being called by the option counterparty. When the Trusts write a put option, such option is covered by cash in an amount sufficient to cover the obligation.

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

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

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

Swaps: The Trusts enter into swap agreements, in which the Trusts and a counterparty agree 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 Trusts face the CCP through a future commission merchant. Unlike a bilateral swap agreement, for centrally cleared swaps, the Trusts have no credit exposure to the counterparty as the CCP stands between the Trusts and the counterparty. These payments received or made by the Trusts are recorded in the Statements of Operations as realized gains or losses, respectively. Any upfront fees paid are recorded as assets and any upfront fees received are recorded as liabilities and 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 Trusts will record a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Trusts’ basis in the contract, if any. Generally, the basis of the

142 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

Notes to Financial Statements (continued)

contracts is the premium received or paid. Swap transactions involve, to varying degrees, elements of interest rate, credit and market risk in excess of the amounts recognized in the Statements of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreements, and that there may be unfavorable changes in interest rates and/or market values associated with these transactions.

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

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

•   Interest rate swaps — The Trusts enter into interest rate swaps to gain or reduce exposure to interest rates or to manage duration, the yield curve or interest rate risk by economically hedging the value of the fixed rate bonds which may decrease when interest rates rise (interest rate risk). Interest rate swaps are agreements in which one party pays a stream of interest payments, either fixed or floating, 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.

•   Forward interest rate swaps — The Trusts enter into forward interest rate swaps 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). In a forward interest rate swap, each Trust and the counterparty agree to make periodic net payments on a specified notional contract amount, commencing on a specified future effective date, unless terminated earlier. The Trusts generally intend to close each forward interest rate swap before the effective date specified in the agreement and therefore avoid entering into the interest rate swap underlying each forward interest rate swap.

Derivative Financial Instruments Categorized by Risk Exposure:

Fair Values of Derivative Financial Instruments as of February 28, 2013
	Asset Derivatives
		BHK		HYV		HYT		HIS		BHY			BNA			BKT			BHD
	Statements of Assets and Liabilities Location	Value
Interest rate contracts	Net unrealized appreciation/ depreciation1; Unrealized appreciation on swaps1; Investments at value — unaffiliated2	$	2,312,048		—		—		—			—		$	2,628,828		$	9,414,394		$	189,825
Foreign currency exchange contracts	Unrealized appreciation on foreign currency exchange contracts		622,183	$	1,524,216	$	1,622,949	$	138,583		$	65,846			640,651			—		264,050
Credit contracts	Unrealized appreciation on swaps; swap premiums paid		435,633		1,446,226		1,471,695		—			152,489			438,082			—		180,732
Equity contracts	Investments at value — unaffiliated2		—		3,140		3,320		—			—			—			—		—
Total		$	3,369,864	$	2,973,582	$	3,097,964	$	138,583		$	218,335		$	3,707,561		$	9,414,394		$	634,607

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 143

Notes to Financial Statements (continued)

	Liability Derivatives
		BHK		HYV		HYT		HIS		BHY		BNA		BKT		BHD
	Statements of Assets and Liabilities Location	Value
Interest rate contracts	Net unrealized appreciation/ depreciation1; Unrealized appreciation on swaps1; Investments at value — unaffiliated2	$	3,611,868		—		—		—		—	$	3,548,724	$	12,131,980	$	101,201
Foreign currency exchange contracts	Unrealized appreciation on foreign currency exchange contracts		23,595	$	12,470	$	13,704	$	8,050	$	2,598		23,321		—		4,337
Credit contracts	Unrealized appreciation on swaps; Swap premiums received		452,040		1,923,511		2,005,186		—		229,698		454,758		—		309,137
Equity contracts	Investments at value — unaffiliated2		—		92,603		98,075		38,018		11,294		—		—		—
Total		$	4,087,503	$	2,028,584	$	2,116,965	$	46,068	$	243,590	$	4,026,803	$	12,131,980	$	414,675

¹ Includes cumulative appreciation/depreciation of 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.

² Includes options purchased at value as reported in the Schedules of Investments.

	The Effect of Derivative Financial Instruments in the Statements of Operations Six Months Ended February 28, 2013
	Net Realized Gain (Loss) From
	BHK			HYV			HYT			HIS			BHY			BNA			BKT		BHD
Interest rate contracts:
Financial futures contracts	$	(487,641	)		—			—			—			—		$	(651,542	)	$	1,194,444	$	105,956
Swaps		438,496			—			—			—			—			14,495			226,694		(18,175	)
Options3		(263,796	)		—			—			—			—			(267,965	)		—		(5,393	)
Foreign currency exchange contracts:
Foreign currency transactions		(765,221	)	$	(2,877,649	)	$	(3,050,555	)	$	(411,326	)	$	(145,723	)		(979,248	)		—		(504,549	)
Credit contracts:
Swaps		(331,356	)		1,037,844			1,071,254			43,127			73,654			(331,011	)		—		43,770
Equity contracts:
Financial futures contracts		—			(1,190,225	)		(1,244,415	)		(352,864	)		(133,577	)		—			—		—
Options3		(139,550	)		(268,903	)		(278,175	)		—			—			(139,550	)		—		—
Other contracts:
Swaps		(84,887	)		—			—			—			—			(85,113	)		—		—
Total	$	(1,633,955	)	$	(3,298,933	)	$	(3,501,891	)	$	(721,063	)	$	(205,646	)	$	(2,439,934	)	$	1,421,138	$	(378,391	)

	Net Change in Unrealized Appreciation/Depreciation on
	BHK			HYV			HYT			HIS		BHY		BNA			BKT			BHD
Interest rate contracts:
Financial futures contracts	$	(221,494	)		—			—			—		—	$	(135,736	)	$	625,431		$	(23,586	)
Swaps		1,285,384			—			—			—		—		1,702,493			(311,671	)		143,855
Options3		1,174,376			—			—			—	$	8,863		1,176,531			—			(27,919	)
Foreign currency exchange contracts:
Foreign currency translations		936,122		$	2,558,709		$	2,701,373		$	269,824		114,173		898,568			—			422,455
Options3		—			—			—			—		—		—			—			—
Credit contracts:
Swaps		(150,228	)		93,922			79,613			—		23,252		(149,158	)		—			61,687
Options3		—			76,812			80,357			—		—		—			—			—
Equity contracts:
Financial futures contracts		—			748,203			781,449			222,399		75,707		—			—			—
Options3		(1,964	)		(11,671	)		(12,327	)		—		—		(1,964	)		—			—
Other contracts:
Swaps		43,272			—			—			—		—		43,387			—			—
Total	$	3,065,468		$	3,465,975		$	3,630,465		$	492,223	$	221,995	$	3,534,121		$	313,760		$	576,492

³ Options purchased are included in the net realized gain (loss) from investments and net change in unrealized appreciation/depreciation on investments.

144 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

Notes to Financial Statements (continued)

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

	BHK		HYV		HYT		HIS			BHY		BNA		BKT		BHD
Financial futures contracts:
Average number of contracts purchased		883		—		—		—			—		821		210		94
Average number of contracts sold		1,171		81		84		17			9		1,176		2,180		58
Average notional value of contracts purchased	$	170,545,550		—		—		—			—	$	162,511,195	$	50,413,175	$	17,757,648
Average notional value of contracts sold	$	220,492,556	$	5,873,453	$	6,130,863	$	1,264,053		$	620,900	$	222,180,147	$	312,683,231	$	8,055,555
Foreign currency exchange contracts:
Average number of contracts — US dollars purchased		7		14		15		3			3		7		—		6
Average number of contracts — US dollars sold		1		5		4		3			1		1		—		3
Average US dollar amounts purchased	$	19,558,099	$	51,019,463	$	53,810,848	$	5,887,213		$	2,185,785	$	18,258,857		—	$	9,049,918
Average US dollar amounts sold	$	3,028,033	$	1,890,866	$	2,084,039	$	311,336		$	72,198	$	2,832,212		—	$	322,732
Options:
Average number of option contracts purchased		—		79		83		—			3		—		—		6
Average number of option contracts written		—		—		—		—			—		—		—		—
Average notional value of option contracts purchased		—	$	549,500	$	581,000		—		$	2,829		—		—		—
Average notional value of option contracts written		—		—		—		—			—		—		—	$	5,657
Average number of swaption contracts purchased		7		—		—		—			—		7		—		4
Average number of swaption contracts written		24		1		1		—			1		24		—	��	3
Average notional value of swaption contracts purchased	$	67,050,000		—		—		—			—	$	66,950,000		—	$	6,906,830
Average notional value of swaption contracts written	$	331,350,000	$	6,500,000	$	6,800,000		—		$	750,000	$	337,555,951		—	$	3,400,000
Credit default swaps:																	—
Average number of contracts — buy protection		6		5		5		1			6		5		—		2
Average number of contracts — sell protection		9		18		18		—			16		9		—		16
Average notional value — buy protection	$	6,323,939	$	1,760,500	$	1,840,000	$	30,000		$	412,000	$	6,323,823		—	$	555,000
Average notional value — sell protection	$	4,572,500	$	13,712,802	$	14,070,810		—		$	1,142,341	$	4,607,500		—	$	1,330,482
Interest rate swaps:									��
Average number of contracts — pays fixed rate		18		—		—		—			—		18		1		6
Average number of contracts — receives fixed rate		11		—		—		—			—		11		6		—
Average notional value — pays fixed rate	$	207,176,826		—		—		—			—	$	207,132,671	$	60,000,000	$	4,300,000
Average notional value — receives fixed rate	$	103,277,503		—		—		—			—	$	102,776,164	$	71,465,000		—
Total return swaps:
Average number of contracts		1		—		—		—			—		1		—		—
Average notional value	$	940,000		—		—		—			—	$	942,500		—		—

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

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

BHK	0.55%
HIS	0.75% of the first $200 million and 0.50% thereafter
BHY	0.90%
BHD	0.75%

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

HYV	0.60	%
HYT	0.70	%

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

BNA	0.60	%
BKT	0.65	%

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

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 145

Notes to Financial Statements (continued)

The Manager voluntarily agreed to waive a portion of investment advisory fee with respect to BHK at an annual rate of 0.03%, as a percentage of average weekly net assets. This voluntary waiver may be reduced or discontinued at any time without notice. For the six months ended February 28, 2013, the Manager waived the following amount, which is included in fees waived by Manager in the Statements of Operations:

BHK $ 90,381

The Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees each Trust pays to the Manager indirectly through its investment in affiliated money market funds. However, the Manager does not waive its investment advisory fees by the amount of investment advisory fees paid in connection with each Trust’s investment in other affiliated investment companies, if any. These amounts are included in fees waived by Manager in the Statements of Operations. For the six months ended February 28, 2013, the amounts waived were as follows:

BHK	$	779
HYV	$	511
HYT	$	481
HIS	$	212
BHY	$	199
BNA	$	543
BKT	$	1,707
BHD	$	202

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 Trust pays the Manager based on the Trusts’ net assets, which includes the assets of the Taxable Subsidiaries.

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

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

4. Investments:

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

	Purchases		Sales
BHK	$	359,465,493	$	345,110,737
HYV	$	259,172,617	$	245,394,516
HYT	$	271,192,662	$	258,681,116
HIS	$	73,370,773	$	68,761,170
BHY	$	26,048,353	$	26,039,058
BNA	$	358,074,886	$	335,872,650
BKT	$	1,313,380,047	$	1,225,253,757
BHD	$	33,743,186	$	33,419,076

Purchases and sales of US government securities for the six months ended February 28, 2013 were as follows:

	Purchases		Sales
BHK	$	36,329,415	$	67,590,342
BNA	$	36,515,382	$	81,523,172
BKT	$	227,836,022	$	307,949,374
BHD	$	196,876	$	199,969

For the six months ended February 28, 2013, purchases and sales related to mortgage dollar rolls were as follows:

	Purchases		Sales
BHK	$	135,272,813	$	135,530,805
BNA	$	135,277,438	$	135,535,719
BKT	$	573,220,504	$	573,457,053

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

	Calls								Puts
	Contracts		Notional (000)			Premiums Received			Contracts			Notional (000)			Premiums Received
BHK
Outstanding options, beginning of period		—	$	174,300		$	3,758,484			9,500		$	234,100		$	4,974,415
Options written		—		73,800			2,246,062			—			153,800			2,775,536
Options expired		—		—			—			(9,500	)		—			(119,700	)
Options closed		—		(128,700	)		(4,672,760	)		—			(235,900	)		(5,515,779	)
Outstanding options, end of period		—	$	119,400		$	1,331,786			—		$	152,000		$	2,114,472
HYV
Outstanding options, beginning of period		—		—			—			—			—			—
Options written		—	$	6,500		$	44,200			—		$	6,500		$	113,750
Outstanding options, end of period		—	$	6,500		$	44,200			—		$	6,500		$	113,750

146 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

Notes to Financial Statements (continued)

	Calls								Puts
	Contracts		Notional (000)			Premiums Received			Contracts			Notional (000)			Premiums Received
HYT
Outstanding options, beginning of period		—		—			—			—			—			—
Options written		—	$	6,800		$	46,240			—		$	6,800		$	119,000
Outstanding options, end of period		—	$	6,800		$	46,240			—		$	6,800		$	119,000
BHY
Outstanding options, beginning of period		—		—			—			—			—			—
Options written		—	$	750		$	5,100			—		$	750		$	13,125
Outstanding options, end of period		—	$	750		$	5,100			—		$	750		$	13,125
BNA
Outstanding options, beginning of period		—	$	173,900		$	3,754,227			9,500		$	233,700		$	4,969,287
Options written		—		73,900			2,250,197			—			153,800			2,777,911
Options expired		—		—			—			(9,500	)		—			(119,700	)
Options closed		—		(128,300	)		(4,671,896	)		—			(235,500	)		(5,513,558	)
Outstanding options, end of period		—	$	119,500		$	1,332,528			—		$	152,000		$	2,113,940
BHD
Outstanding options, beginning of period		—	$	2,300		$	17,900			—		$	4,300		$	69,170
Options written		—		4,500			62,250			—			4,500			81,175
Options closed		—		(6,200	)		(74,150	)		—			(6,800	)		(111,345	)
Outstanding options, end of period		—	$	600		$	6,000			—		$	2,000		$	39,000

5. Income Tax Information:

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

Expires August 31,	BHK		HYV		HYT		HIS		BHY		BNA		BHD
2014		—		—		—	$	7,043,976	$	2,060,533		—		—
2015		—		—		—		—		2,467,772		—		—
2016	$	5,726,723		—		—		10,829,322		2,039,760	$	4,475,065	$	49,487
2017		7,416,000	$	25,473,528	$	31,939,528		3,140,056		916,541		7,369,088		930,008
2018		—		45,786,653		54,927,764		15,169,557		5,191,260		10,964,638		3,835,687
2019		—		—		—		—		737,843		—		—
No expiration date1		—		5,919,232		5,403,603		2,557,959		657,820		—		—
Total	$	13,142,723	$	77,179,413	$	92,270,895	$	38,740,870	$	14,071,529	$	22,808,791	$	4,815,182

¹ Must be utilized 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:

	BHK			HYV			HYT			HIS			BHY			BNA			BKT			BHD
Tax cost	$	569,055,421		$	604,490,000		$	628,402,945		$	170,174,352		$	65,079,773		$	562,955,695		$	820,982,010		$	127,040,617
Gross unrealized appreciation	$	42,540,771		$	35,687,080		$	36,671,097		$	8,418,605		$	3,790,961		$	45,303,077		$	36,184,229		$	8,818,178
Gross unrealized depreciation		(5,347,965	)		(16,962,321	)		(17,632,178	)		(4,099,158	)		(856,445	)		(8,407,416	)		(24,696,970	)		(1,677,564	)
Net unrealized appreciation	$	37,192,806		$	18,724,759		$	19,038,919		$	4,319,447		$	2,934,516		$	36,895,661		$	11,487,259		$	7,140,614

 

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 147

Notes to Financial Statements (continued)

6. Borrowings:

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

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

Prior to March 1, 2013, advances were made by SSB to the Trusts, at the Trusts’ option of (a) the higher of (i) 0.75% above the Fed Funds rate and (ii) 0.75% above the Overnight LIBOR or (b) 0.75% above 7-day, 30-day, 60-day or 90-day LIBOR.

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 Trusts anytime after February 24, 2014. Advances will be made by SSB to the Trusts, at the Trusts’ option of (a) the higher of (i) 0.80% above the Fed Funds rate and (ii) 0.80% above the Overnight LIBOR or (b) 0.80% above 7-day, 30-day, 60-day or 90-day LIBOR.

In addition, the Trusts pay a facility fee and utilization fee (based on the daily unused portion of the commitments.) The commitment fees are waived if the Trusts meet certain conditions. The fees associated with each of the agreements are included in the Statements of Operations as borrowing costs. Advances to the Trusts as of February 28, 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 Trusts may not declare dividends or make other distributions on shares or purchase any such shares if, at the time of the declaration, distribution or purchase, asset coverage with respect to the outstanding short-term borrowings is less than 300%.

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

	Daily Weighted Average Interest Rate
HYV	0.94%
HYT	0.94%
HIS	0.94%
BHY	0.94%
BHD1	0.94%

¹ Includes treasury roll transactions.

For the six months ended February 28, 2013, the daily weighted average interest rates for Trusts with borrowings, which include reverse repurchase agreements and treasury roll transactions, were as follows:

	Daily Weighted Average Interest Rate
BHK	0.27%
BNA	0.28%
BKT	0.26%

7. Commitments:

Certain Trusts may invest in floating rate loan interests. In connection with these investments, the Trusts may also enter into bridge loan commitments (“commitments”). Bridge loan commitments may obligate the Trusts to furnish temporary financing to a borrower until permanent financing can be arranged. As of February 28, 2013, the Trusts had no outstanding bridge loan commitments. In connection with these commitments, the Trusts earn a commitment fee, typically set as a percentage of the commitment amount. Such fee income, which is included in interest income in the Statements of Operations, is recognized ratably over the commitment period. Commitment fees received in advance and unrecognized are recorded in the Statements of Assets and Liabilities as deferred income.

8. Concentration, Market and Credit Risk:

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

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

148 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

Notes to Financial Statements (concluded)

9. Capital Share Transactions:

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

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

	Six Months Ended February 28, 2013	Year Ended August 31, 2012
BHK	14,416	4,404
HYV	11,735	59,289
HYT	34,967	85,180
HIS	79,118	124,205
BHY	1,093	2,000
BHD	3,174	3,546

Shares issued and outstanding remained constant during the six months ended February 28, 2013 and the year ended August 31, 2012 for BNA and BKT.

10. Subsequent Events:

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

The Trusts paid a net investment income dividend in the following amounts per share on March 28, 2013 to shareholders of record on March 15, 2013:

	Common Dividend Per Share
BHK	$	0.0730
HYV	$	0.0900
HYT	$	0.0875
HIS	$	0.0152
BHY	$	0.0445
BNA	$	0.0570
BKT	$	0.0405
BHD	$	0.0845

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

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 149

Officers and Trustees

Richard E. Cavanagh, Chairman of the Board and Trustee
Karen P. Robards, Vice Chairperson of the Board,
    Chairperson of the Audit Committee and Trustee
Paul L. Audet, Trustee
Michael J. Castellano, Trustee and Member of the Audit
    Committee
Frank J. Fabozzi, Trustee and Member of the Audit
    Committee
Kathleen F. Feldstein, Trustee
James T. Flynn, Trustee and Member of the Audit Committee
Henry Gabbay, Trustee
Jerrold B. Harris, Trustee
R. Glenn Hubbard, Trustee
W. Carl Kester, Trustee and Member of the Audit Committee
John M. Perlowski, President and Chief Executive Officer
Anne Ackerley, Vice President
Brendan Kyne, Vice President
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-Advisor¹
BlackRock Financial Management, Inc.
New York, NY 10055

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

Transfer Agent
Computershare Trust Company, N.A.
Canton, MA 02021

Independent Registered Public Accounting Firm
Deloitte & Touche LLP
Boston, MA 02116

Legal Counsel
Skadden, Arps, Slate, Meagher & Flom LLP
New York, NY 10036

Address of the Trusts
100 Bellevue Parkway
Wilmington, DE 19809

¹ For BHK, HYV, HYT, HIS and BHD.

150 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

Additional Information

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 a fund markets itself as providing investment exposure to such instruments. To the extent a Trust 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 to each Trust.

A Trust 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 Trusts, has filed a claim with the CFTC to rely on this no-action relief.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 151

Additional Information (continued)

Dividend Policy

Each Trust’s dividend policy is to distribute all or a portion of its net investment income to its shareholders on a monthly basis. In order to provide shareholders with a more stable level of dividend distributions, the dividends paid by the Trusts for any particular month may be more or less than the amount of net investment income earned by the Trusts during such month. The portion of dividend distributions that exceeds a Trust’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 Trust’s taxable income and net capital gains, but not in excess of a Trust’s earnings and profits, will be taxable to shareholders as ordinary income and will not constitute a nontaxable return of capital. The Trusts’ current accumulated but undistributed net investment income, if any, is disclosed in the Statements of Assets and Liabilities, which comprises part of the financial information included in this report.

152 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

Additional Information (continued)

General Information

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

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

Quarterly performance, semi-annual and annual reports and other information regarding the Trusts may be found on BlackRock’s website, which can be accessed at http://www.blackrock.com. This reference to BlackRock’s web-site is intended to allow investors public access to information regarding the Trusts and does not, and is not intended to, incorporate BlackRock’s website in this report.

Electronic Delivery

Electronic copies of most financial reports are available on the Trusts’ web-site or shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual reports by enrolling in the Trusts’ electronic delivery program.

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

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

Householding

The Trusts will mail only one copy of shareholder documents, including annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Trusts at (800) 882-0052.

Availability of Quarterly Schedule of Investments

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

Availability of Proxy Voting Policies and Procedures

A description of the policies and procedures that the Trusts use to determine how to vote proxies relating to portfolio securities is available (1) without charge, upon request, by calling (800) 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 Trusts voted proxies relating to securities held in the Trusts’ portfolios during the most recent 12-month period ended June 30 is available upon request and without charge (1) at http://www.blackrock.com or by calling (800) 882-0052 and (2) on the SEC’s website at http://www.sec.gov.

Availability of Trust Updates

BlackRock will update performance and certain other data for the Trusts on a monthly basis on its website in the “Closed-end Funds” section of http://www.blackrock.com 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 Trusts. This reference to BlackRock’s website is intended to allow investors public access to information regarding the Trusts and does not, and is not intended to, incorporate BlackRock’s website in this report.

SEMI-ANNUAL REPORT FEBRUARY 28, 2013 153

Additional Information (concluded)

BlackRock Privacy Principles

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

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

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

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

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

154 SEMI-ANNUAL REPORT FEBRUARY 28, 2013

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

 

CEF-1-8-2/13-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 Income Opportunity Trust, Inc.

By: /s/ John M. Perlowski

John M. Perlowski

Chief Executive Officer (principal executive officer) of

BlackRock Income Opportunity Trust, Inc.

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 Income Opportunity Trust, Inc.

Date: May 1, 2013

By: /s/ Neal J. Andrews

Neal J. Andrews

Chief Financial Officer (principal financial officer) of

BlackRock Income Opportunity Trust, Inc.

Date: May 1, 2013