Blackrock Income Opportunity Trust (BNA) N-CSR Certified 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: Anne F. Ackerley, 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: 08/31/2010

Date of reporting period: 08/31/2010

Item 1 – Report to Stockholders

August 31, 2010

Annual Report

BlackRock Core Bond Trust (BHK)

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

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

BlackRock High Income Shares (HIS)

BlackRock High Yield Trust (BHY)

BlackRock Income Opportunity Trust, Inc. (BNA)

BlackRock Income Trust, Inc. (BKT)

BlackRock Strategic Bond Trust (BHD)

Not FDIC Insured ▪ No Bank Guarantee ▪ May Lose Value

Table of Contents

	Page
Dear Shareholder	3
Annual Report:
Trust Summaries	4
The Benefits and Risks of Leveraging	12
Derivative Financial Instruments	12
Financial Statements:
Schedules of Investments	13
Statements of Assets and Liabilities	80
Statements of Operations	84
Statements of Changes in Net Assets	86
Statements of Cash Flows	88
Financial Highlights	89
Notes to Financial Statements	96
Report of Independent Registered Public Accounting Firm	110
Important Tax Information	110
Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements	111
Automatic Dividend Reinvestment Plans	115
Officers and Trustees	116
Additional Information	119

2 ANNUAL REPORT AUGUST 31, 2010

Dear Shareholder

The global economic recovery continues, although global and US economic statistics show that the pace of economic growth has slowed. The sovereign debt crisis in Europe, slowing growth in China and concerns over the possibility that the United States and other developed markets are heading for a double-dip recession have all acted to depress investor sentiment. Despite broadening evidence of a slowdown in global economic activity, market volatility has normalized from the extreme levels seen in recent months. In the United States, economic data continues to be mixed, but it is our view that the preponderance of data suggests that the recovery is continuing. The critical issue for investors remains the question of whether the economy will experience a double-dip recession. We are on the optimistic side of this debate and would point out that while the recovery has been slow, we have made significant progress.

Global equity markets have moved unevenly higher since bottoming out in early 2009 as investors were enticed by depressed valuations, improved corporate earnings, and their desire for higher yields. Several significant downturns, however, have occurred — primarily as a result of mixed economic data and concerns about the possibility of prolonged deflation (especially in Europe). As the period drew to a close, equity markets lost ground on weaker-than-expected economic data, most notably from the United States. International equities posted negative returns on both a six- and 12-month basis while US equities posted negative returns over the six months, but were still showing positive returns on a 12-month basis as the domestic economic recovery had been more pronounced and credit-related issues held European markets down. Within the United States, smaller cap stocks continue to outperform large caps year-to-date.

In fixed income markets, yields have fluctuated significantly over the past year as economic data has been mixed. Risk aversion and credit issues have kept interest rates low and US Treasury yields have fallen significantly as investors favored “safe haven” assets. As the period drew to a close, Treasuries modestly outperformed the spread sectors of the market (those driven by changes in credit risk). Corporate credit spreads benefited from the low rate environment and high yield fixed income remains attractive due to low default rates and better-than-expected results on European bank stress tests. Meanwhile, tax-exempt municipal bonds slightly outperformed US investment grade bonds on a 12-month basis, but underperformed year-to-date as investors rotated to the relative safety of Treasuries.

Regarding cash investments, yields on money market securities remain near all-time lows (producing returns only marginally above zero percent), with the Federal Open Market Committee reiterating that economic circumstances are likely to necessitate an accommodative interest rate stance for an “extended period.”

Against this backdrop, the major market averages posted the following returns:

Total Returns as of August 31, 2010	6-month		12-month
US large cap equities (S&P 500 Index)	(4.04	)%	4.91	%
US small cap equities (Russell 2000 Index)	(3.60	)	6.60
International equities (MSCI Europe, Australasia, Far East Index)	(3.04	)	(2.34	)
3-month Treasury bill (BofA Merrill Lynch 3-Month Treasury Bill Index)	0.07		0.14
US Treasury securities (BofA Merrill Lynch 10-Year US Treasury Index)	11.49		11.58
US investment grade bonds (Barclays Capital US Aggregate Bond Index)	5.81		9.18
Tax-exempt municipal bonds (Barclays Capital Municipal Bond Index)	5.42		9.78
US high yield bonds (Barclays Capital US Corporate High Yield 2% Issuer Capped Index)	6.62		21.40

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

Although conditions have improved over the past couple of years, investors across the globe continue to face uncertainty about the future direction of economic growth. Through periods of uncertainty, as ever, BlackRock’s full resources are dedicated to the management of our clients’ assets. For additional market perspective and investment insight, visit www.blackrock.com/shareholdermagazine, where you’ll find the most recent issue of our award-winning Shareholder^® magazine, as well as its quarterly companion newsletter, Shareholder Perspectives. We thank you for entrusting BlackRock with your investments, and we look forward to your continued partnership in the months and years ahead.

Sincerely,

Rob Kapito
President, BlackRock Advisors, LLC

THIS PAGE NOT PART OF YOUR FUND REPORT 3

Trust Summary as of August 31, 2010 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.

Performance

For the 12 months ended August 31, 2010, the Trust returned 25.93% based on market price and 22.44% based on net asset value (“NAV”). For the same period, the closed-end Lipper Corporate Debt Funds BBB-Rated category posted an average return of 22.14% based on market price and 19.62% based on NAV. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. The Trust benefited from its allocation to securi-tized sectors including commercial mortgage-backed securities (“MBS”), agency and non-agency MBS, and asset-backed securities. The Trust’s higher duration (greater sensitivity to interest rates) relative to its peers contributed to performance as interest rates declined in the latter part of the period. The Trust’s underweight in high yield corporate issues detracted from performance as risk assets rebounded sharply during the period and outperformed investment-grade credit. Rising interest rates during the first half of the period were detrimental to the Trust due to its higher duration.

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.

Trust Information
Symbol on New York Stock Exchange (“NYSE”)	BHK
Initial Offering Date	November 27, 2001
Yield on Closing Market Price as of August 31, 2010 ($13.92)1	5.78%
Current Monthly Distribution per Common Share2	$0.067
Current Annualized Distribution per Common Share2	$0.804
Leverage as of August 31, 20103	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 is not constant and is subject to change.
3	Represents reverse repurchase agreements, treasury roll transactions and the Term Asset-Backed Securities Loan Facility (“TALF”) 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 12.

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

	8/31/10		8/31/09		Change			High		Low
Market Price	$	13.92	$	11.98		16.19	%	$	14.09	$	11.50
Net Asset Value	$	14.19	$	12.56		12.98	%	$	14.20	$	12.48

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

Portfolio Composition
	8/31/10		8/31/09
Corporate Bonds	38	%	42	%
U.S. Government Sponsored Agency Securities	23		20
U.S. Treasury Obligations	19		12
Non-Agency Mortgage-Backed Securities	10		17
Asset-Backed Securities	5		4
Taxable Municipal Bonds	2		2
Foreign Agency Obligations	2		2
Preferred Securities	1		1
Credit Quality Allocations4
	8/31/10		8/31/09
AAA/Aaa5	43	%	43	%
Aa/Aa	11		9
A	17		17
BBB/Baa	11		12
BB/Ba	8		8
B	7		5
CCC/Caa	2		5
Not Rated	1		1

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

4 ANNUAL REPORT AUGUST 31, 2010

Trust Summary as of August 31, 2010 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.

Performance

For the 12 months ended August 31, 2010, the Trust returned 34.42% based on market price and 31.40% based on NAV. For the same period, the closed-end Lipper High Current Yield Funds (Leveraged) category posted an average return of 34.35% based on market price basis and 26.92% based on NAV. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. The high yield sector outperformed most other sectors of the fixed income market. We focused on sectors and companies with relatively stable cash flows and the ability to generate steady income. We also invested in a few special situations and recovery stories, most notably in the automotive sector, which contributed to the Trust’s outperformance versus its peer group. The Trust’s underweight in higher quality speculative grade names and overweight in lower quality credits benefited performance. Toward the end of the period, we moved to an underweight position in lower quality names, which have recently become expensive relative to higher quality names. During the period, the Trust maintained leverage at an average amount just below 20% of its total managed assets, which detracted from relative performance versus competitors that maintained higher leverage, as would be expected when markets are advancing. Exposure to floating rate loan interests also detracted as the bank loan sector underperformed the high yield sector during the period.

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.

Trust Information
Symbol on NYSE	HYV
Initial Offering Date	November 30, 2001
Yield on Closing Market Price as of August 31, 2010 ($11.40)1	8.68%
Current Monthly Distribution per Common Share2	$0.0825
Current Annualized Distribution per Common Share2	$0.9900
Leverage as of August 31, 20103	19%

1	Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2	The distribution 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 12.

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

	8/31/10		8/31/09		Change			High		Low
Market Price	$	11.40	$	9.32		22.32	%	$	11.78	$	9.02
Net Asset Value	$	11.61	$	9.71		19.57	%	$	11.95	$	9.69

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

Portfolio Composition
	8/31/10		8/31/09
Corporate Bonds	80	%	81	%
Floating Rate Loan Interests	15		17
Common Stocks	2		2
Other Interests	2		—
Preferred Stocks	1		—
Credit Quality Allocations4
	8/31/10		8/31/09
AA/Aa	—		1	%
BBB/Baa	3	%	5
BB/Ba	35		31
B	46		37
CCC/Caa	11		20
CC/Ca	1		3
D	—		1
Not Rated	4		2

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

ANNUAL REPORT AUGUST 31, 2010 5

Trust Summary as of August 31, 2010 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.

Performance

For the 12 months ended August 31, 2010, the Trust returned 29.92% based on market price and 29.26% based on NAV. For the same period, the closed-end Lipper High Current Yield Funds (Leveraged) category posted an average return of 34.35% based on market price and 26.92% based on NAV. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. The high yield sector outperformed most other sectors of the fixed income market, as the number of defaults declined and investors became less risk-averse and gravitated to higher yielding investments in the low yield environment. Given our outlook for a continued slow economic environment, we began to focus more on sectors and companies with relatively stable cash flows and the ability to generate steady income, and less on companies which require growth before they can achieve a steady income. Outside of this focus, we invested in a few special situations and recovery stories, most notably in the automotive sector. These investments were key contributors to the Trust’s outperformance versus its peer group for the period. The Trust’s underweight position in higher quality speculative grade names and overweight in lower quality credits benefited performance during the period. Toward the end of the period, we moved to an underweight position in lower quality names, which we believe will benefit the Trust going forward as lower quality issues have recently become expensive relative to higher quality names. During the period, the Trust maintained leverage at an average amount between 15% to 20% of its total managed assets, which detracted from relative performance versus competitors that maintained higher leverage, as would be expected when markets are advancing. The Trust’s exposure to floating rate loan interests detracted from performance (despite favorable security selection within the sector) as the bank loan sector underperformed the high yield sector during the period.

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.

Trust Information
Symbol on NYSE	HYT
Initial Offering Date	May 30, 2003
Yield on Closing Market Price as of August 31, 2010 ($11.19)1	8.85%
Current Monthly Distribution per Common Share2	$0.0825
Current Annualized Distribution per Common Share2	$0.9900
Leverage as of August 31, 20103	18%

1	Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2	The distribution 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 12.

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

	8/31/10		8/31/09		Change			High		Low
Market Price	$	11.19	$	9.47		18.16	%	$	11.76	$	9.15
Net Asset Value	$	11.38	$	9.68		17.56	%	$	11.67	$	9.66

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

Portfolio Composition
	8/31/10		8/31/09
Corporate Bonds	81	%	82	%
Floating Rate Loan Interests	15		16
Common Stocks	2		2
Other Interests	1		—
Preferred Stocks	1		—
Credit Quality Allocations4
	8/31/10		8/31/09
A	—		1	%
BBB/Baa	3	%	5
BB/Ba	36		27
B	47		41
CCC/Caa	11		25
Not Rated	3		1

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

6 ANNUAL REPORT AUGUST 31, 2010

Trust Summary as of August 31, 2010 BlackRock High Income Shares

Trust Overview

BlackRock High Income Shares’ (HIS) (the “Trust”) 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.

Performance

For the 12 months ended August 31, 2010, the Trust returned 35.52% based on market price and 28.95% based on NAV. For the same period, the closed-end Lipper High Current Yield Funds (Leveraged) category posted an average return of 34.35% based on market price and 26.92% based on NAV. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. The high yield sector outperformed most other sectors of the fixed income market. We focused on sectors and companies with relatively stable cash flows and the ability to generate steady income. Outside of this focus, we invested in a few special situations and recovery stories, most notably in the automotive sector, which contributed to the Trust’s outperformance versus its peer group. The Trust’s underweight in higher quality speculative grade names and overweight in lower quality credits benefited performance. Toward the end of the period, we moved to an underweight position in lower quality names, which have recently become expensive relative to higher quality names. During the period, the Trust maintained leverage at an average amount between 15% to 20% of its total managed assets, which detracted from relative performance versus competitors that maintained higher leverage, as would be expected when markets are advancing. Exposure to floating rate loan interests also detracted (despite favorable security selection within the sector) as the bank loan sector underperformed the high yield sector during the period.

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.

Trust Information
Symbol on NYSE	HIS
Initial Offering Date	August 10, 1988
Yield on Closing Market Price as of August 31, 2010 ($2.09)1	8.15%
Current Monthly Distribution per Common Share2	$0.0142
Current Annualized Distribution per Common Share2	$0.1704
Leverage as of August 31, 20103	17%

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 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 12.

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

	8/31/10		8/31/09		Change			High		Low
Market Price	$	2.09	$	1.68		24.40	%	$	2.15	$	1.65
Net Asset Value	$	2.19	$	1.85		18.38	%	$	2.24	$	1.85

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

Portfolio Composition
	8/31/10		8/31/09
Corporate Bonds	84	%	85	%
Floating Rate Loan Interests	13		13
Preferred Securities	2		1
Common Stock	1		1
Credit Quality Allocations4
	8/31/10		8/31/09
BBB/Baa	3	%	4	%
BB/Ba	35		33
B	46		32
CCC/Caa	11		24
C	—		2
D	—		1
Not Rated	5		4

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

ANNUAL REPORT AUGUST 31, 2010 7

Trust Summary as of August 31, 2010 BlackRock High Yield Trust

Trust Overview

BlackRock High Yield Trust’s (BHY) (the “Trust”) 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.

Performance

For the 12 months ended August 31, 2010, the Trust returned 19.76% based on market price and 25.70% based on NAV. For the same period, the closed-end Lipper High Current Yield Funds (Leveraged) category posted an average return of 34.35% based on market price and 26.92% 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. The high yield sector outperformed most other sectors of the fixed income market, as the number of defaults declined and investors became less risk-averse and gravitated to higher yielding investments in the low yield environment. During the period, the Trust maintained leverage at an average amount between 15% to 20% of its total managed assets, which detracted from relative performance versus competitors that maintained higher leverage, as would be expected when markets are advancing. The Trust’s exposure to floating rate loan interests also detracted from performance (despite favorable security selection within the sector) as the bank loan sector underperformed the high yield sector during the period. Given our outlook for a continued slow economic environment, we began to focus more on sectors and companies with relatively stable cash flows and the ability to generate steady income, and less on companies which require growth before they can achieve a steady income. Outside of this focus, we invested in a few special situations and recovery stories, most notably in the automotive sector. These investments benefited performance relative to the Trust’s peer group for the period. The Trust’s underweight position in higher quality speculative grade names and overweight in lower quality credits benefited performance during the period. Toward the end of the period, we moved to an underweight position in lower quality names, which we believe will benefit the Trust going forward as lower quality issues have recently become expensive relative to higher quality names.

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.

Trust Information
Symbol on NYSE	BHY
Initial Offering Date	December 23, 1998
Yield on Closing Market Price as of August 31, 2010 ($6.44)1	8.11%
Current Monthly Distribution per Common Share2	$0.0435
Current Annualized Distribution per Common Share2	$0.5220
Leverage as of August 31, 20103	16%

1	Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2	The distribution 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 12.

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

	8/31/10		8/31/09		Change			High		Low
Market Price	$	6.44	$	5.84		10.27	%	$	6.80	$	5.58
Net Asset Value	$	6.69	$	5.78		15.74	%	$	6.85	$	5.77

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

Portfolio Composition
	8/31/10		8/31/09
Corporate Bonds	84	%	86	%
Floating Rate Loan Interests	13		13
Other Interests	1		—
Common Stocks	1		1
Preferred Securities	1		—
Credit Quality Allocations4
	8/31/10		8/31/09
BBB/Baa	3	%	4	%
BB/Ba	38		38
B	42		29
CCC/Caa	12		24
CC/Ca	—		1
D	—		1
Not Rated	5		3

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

8 ANNUAL REPORT AUGUST 31, 2010

Trust Summary as of August 31, 2010 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.

Performance

For the 12 months ended August 31, 2010, the Trust returned 18.69% based on market price and 19.83% based on NAV. For the same period, the closed-end Lipper Corporate Debt Funds BBB-Rated category posted an average return of 22.14% based on market price and 19.62% 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. The Trust benefited from its allocation to securitized sectors, including commercial MBS, agency and non-agency MBS, and asset-backed securities. The Trust’s higher duration (greater sensitivity to interest rates) relative to its peers contributed to performance as interest rates declined in the latter part of the period. The Trust’s underweight in high yield corporate issues detracted from performance as risk assets rebounded sharply during the period and outperformed investment-grade credit. Rising interest rates during the first half of the period were detrimental to the Trust due to its higher duration.

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.

Trust Information
Symbol on NYSE	BNA
Initial Offering Date	December 20, 1991
Yield on Closing Market Price as of August 31, 2010 ($10.56)1	5.80%
Current Monthly Distribution per Common Share2	$0.051
Current Annualized Distribution per Common Share2	$0.612
Leverage as of August 31, 20103	29%

1	Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2	The distribution is not constant and is subject to change.
3	Represents reverse repurchase agreements, treasury roll transactions and TALF 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 12.

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

	8/31/10		8/31/09		Change			High		Low
Market Price	$	10.56	$	9.65		9.43	%	$	10.68	$	9.10
Net Asset Value	$	11.07	$	10.02		10.48	%	$	11.08	$	9.79

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

Portfolio Composition
	8/31/10		8/31/09
Corporate Bonds	38	%	36	%
U.S. Government Sponsored Agency Securities	23		21
U.S. Treasury Obligations	18		14
Non-Agency Mortgage-Backed Securities	12		19
Asset-Backed Securities	4		4
Taxable Municipal Bonds	2		2
Foreign Agency Obligations	2		2
Preferred Securities	1		2
Credit Quality Allocations4
	8/31/10		8/31/09
AAA/Aaa5	41	%	43	%
Aa/Aa	11		9
A	20		17
BBB/Baa	12		12
BB/Ba	9		8
B	6		5
CCC/Caa	1		5
Not Rated	—		1

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

ANNUAL REPORT AUGUST 31, 2010 9

Trust Summary as of August 31, 2010 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.

Performance

For the 12 months ended August 31, 2010, the Trust returned 11.19% based on market price and 13.86% based on NAV. For the same period, the closed-end Lipper US Mortgage Funds category posted an average return of 25.95% based on market price and 18.75% 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. The Trust’s underweight in agency mortgage-backed securities (MBS), in favor of US Treasuries and agency debt, detracted from performance as spread sectors (those driven by movements in credit risk) continued to rally during the period. The Trust makes use of derivatives to hedge interest rate risks associated with mortgage-related assets. Derivative losses were concentrated among the use of interest rate futures and interest rate swaps. The losses associated with these derivative positions are largely offset by long positions in mortgage assets. Conversely, the Trust benefited from its allocations to non-agency MBS and commercial MBS. Both of these sectors outperformed agency MBS as risk assets continued to rally on the extended accommodative monetary policy and improving (albeit mixed) economic indicators. In addition, the Trust benefited from security selection with a focus on active management of mortgage exposure across the spectrum of coupon rates.

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.

Trust Information
Symbol on NYSE	BKT
Initial Offering Date	July 22, 1988
Yield on Closing Market Price as of August 31, 2010 ($6.95)1	4.14%
Current Monthly Distribution per Common Share2	$0.024
Current Annualized Distribution per Common Share2	$0.288
Leverage as of August 31, 20103	18%

1	Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2	The distribution is not constant and is subject to change.
3	Represents reverse repurchase agreements, treasury roll transactions and TALF 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 12.

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

	8/31/10		8/31/09		Change			High		Low
Market Price	$	6.95	$	6.53		6.43	%	$	6.99	$	6.18
Net Asset Value	$	7.76	$	7.12		8.99	%	$	7.78	$	7.12

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

Portfolio Composition
		8/31/10		8/31/09
U.S. Government Sponsored Agency Securities		83	%	83	%
U.S. Treasury Obligations		11		6
Non-Agency Mortgage Backed Securities		5		9
Asset-Backed Securities		1		2
	��
Credit Quality Allocations4
		8/31/10		8/31/09
AAA/Aaa5		100	%	100	%

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

10 ANNUAL REPORT AUGUST 31, 2010

Trust Summary as of August 31, 2010 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.

Performance

For the 12 months ended August 31, 2010, the Trust returned 23.88% based on market price and 20.38% based on NAV. For the same period, the closed-end Lipper High Current Yield Funds (Leveraged) posted an average return of 34.35% based on market price and 26.92% based on NAV. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. The Trust’s allocation to investment-grade credit and bank loans detracted from performance relative to the Lipper category competitors that invest primarily in high yield bonds, which outperformed the broader market during the period. The Trust’s relatively conservative amount of leverage (averaging below 10% of total managed assets) detracted from the Trust’s performance versus its more highly levered competitors, as would be expected in an advancing market. Contributing positively to performance was the Trust’s allocation to high yield bonds and our focus on sectors and companies with relatively stable cash flows and the ability to generate steady income. Investments in a few special situations and recovery stories, most notably in the automotive sector, also aided performance.

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.

Trust Information
Symbol on NYSE	BHD
Initial Offering Date	February 26, 2002
Yield on Closing Market Price as of August 31, 2010 ($13.17)1	7.02%
Current Monthly Distribution per Common Share2	$0.077
Current Annualized Distribution per Common Share2	$0.924
Leverage as of August 31, 20103	11%

1	Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2	A change in the distribution rate was declared on September 1, 2010. The Monthly Distribution per Share was increased to $0.0795. The Yield on Closing Market Price, Current Monthly Distribution per Share and Current Annualized Distribution per Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to further change in the future.
3	Represents loan outstanding as a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to borrowings) minus the sum of liabilities (other than borrowings representing financial leverage). For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 12.

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

	8/31/10		8/31/09		Change			High		Low
Market Price	$	13.17	$	11.43		15.22	%	$	13.44	$	10.91
Net Asset Value	$	13.57	$	12.12		11.96	%	$	13.66	$	12.11

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

Portfolio Composition
	8/31/10		8/31/09
Corporate Bonds	85	%	87	%
Floating Rate Loan Interests	11		11
Preferred Securities	2		1
Other Interests	1		—
Common Stocks	1		1
Credit Quality Allocations4
	8/31/10		8/31/09
AAA/Aaa	—		1	%
AA/Aa	3	%	1
A	14		18
BBB/Baa	13		16
BB/Ba	28		26
B	33		17
CCC/Caa	8		15
CC/Ca	—		3
D	—		1
Not Rated	1		2

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

ANNUAL REPORT AUGUST 31, 2010 11

The Benefits and Risks of Leveraging

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

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

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

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

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

Furthermore, the value of the Trust’s portfolio investments generally varies inversely with the direction of long-term interest rates, although other factors can influence the value of portfolio investments. In contrast, the redemption value of the Trust’s borrowings do not fluctuate in relation to interest rates. As a result, changes in interest rates can influence the Trust’s NAV 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 and shareholders, but as described above, it also creates risks as short- or long-term interest rates fluctuate. Leverage also will generally cause greater changes in each Trust’s NAV, market price and dividend rate than a comparable portfolio without leverage. If the income derived from securities purchased with assets received from leverage exceeds the cost of leverage, each Trust’s net income will be greater than if leverage had not been used. Conversely, if the income from the securities purchased is not sufficient to cover the cost of leverage, each Trust’s net income will be less than if leverage had not been used, and therefore the amount available for distribution to shareholders will be reduced. Each Trust may be required to sell portfolio securities at inopportune times or at distressed values in order to comply with regulatory requirements applicable to the use of leverage or as required by the terms of leverage instruments, which may cause a Trust to incur losses. The use of leverage may limit each Trust’s ability to invest in certain types of securities or use certain types of hedging strategies. Each Trust will incur expenses in connection with the use of leverage, all of which are borne by shareholders and may reduce income.

Under the Investment Company Act of 1940, the Trusts are permitted to borrow through their credit facility, through participation in the TALF or entering into reverse repurchase agreements up to 33¹/₃% of their total managed assets. As of August 31, 2010, the Trusts had outstanding leverage from borrowings as a percentage of their total managed assets as follows:

	Percent of Leverage
BHK	31	%
HYV	19	%
HYT	18	%
HIS	17	%
BHY	16	%
BNA	29	%
BKT	18	%
BHD	11	%

Derivative Financial Instruments

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

12 ANNUAL REPORT AUGUST 31, 2010

Schedule of Investments August 31, 2010	BlackRock Core Bond Trust (BHK)
	(Percentages shown are based on Net Assets)

Asset-Backed Securities	Par (000)		Value
321 Henderson Receivables I LLC, Series 2010-1A, Class B, 9.31%, 7/15/61 (a)	USD	1,150	$	1,337,369
Chase Issuance Trust, Series 2009-A7, Class A7, 0.73%, 9/17/12 (b)		3,305		3,305,475
Countrywide Asset-Backed Certificates, Series 2006-13, Class 3AV2, 0.41%, 1/25/37 (b)		1,415		887,237
Ford Credit Auto Owner Trust, Series 2009-A:
Class A3B, 2.78%, 5/15/13 (b)		5,405		5,485,668
Class A4, 6.07%, 5/15/14		2,110		2,305,772
Globaldrive BV, Series 2008-2, Class A, 4.00%, 10/20/16	EUR	620		797,814
Home Equity Asset Trust, Series 2007-2, Class 2A1, 0.37%, 7/25/37 (b)	USD	294		284,847
Maryland Insurance Backed Securities Trust, Series 2006-1A, Class A, 5.55%, 12/10/65		2,500		875,000
Nelnet Student Loan Trust, Series 2008-3, Class A4, 4.61%, 11/25/24 (b)		650		674,375
Nissan Auto Receivables Owner Trust, Series 2009-A, Class A2, 2.94%, 7/15/11		213		213,369
SLM Student Loan Trust, Series 2008-5 (b):
Class A2, 1.60%, 10/25/16		3,200		3,246,604
Class A3, 1.80%, 1/25/18		1,140		1,175,352
Class A4, 2.20%, 7/25/23		2,330		2,431,780
Santander Drive Auto Receivables Trust, Series 2010-2:
Class B, 2.24%, 12/15/14		860		859,871
Class C, 3.89%, 7/17/17		1,010		1,010,000
Small Business Administration, Class 1:
Series 2003-P10B, 5.14%, 8/10/13		427		454,191
Series 2004-P10B, 4.75%, 8/10/14		257		273,784
				25,618,508
Interest Only — 0.3%
Sterling Bank Trust, Series 2004-2, Class Note, 2.08%, 3/30/30 (a)		4,748		250,767
Sterling Coofs Trust, Series 1, 2.36%, 4/15/29		7,549		771,402
				1,022,169
Total Asset-Backed Securities — 7.0%				26,640,677
Common Stocks	Shares
Machinery — 0.0%
Accuride Corp. (c)		43,487		47,836
Specialty Retail — 0.0%
Lazydays RV Center, Inc. (c)		2,249		11,492
Total Common Stocks — 0.0%				59,328
Corporate Bonds	Par (000)
Aerospace & Defense — 0.9%
Northrop-Grumman Corp., 7.88%, 3/01/26	USD	960		1,335,394
United Technologies Corp.:
4.88%, 5/01/15		1,125		1,281,138
6.13%, 7/15/38		700		861,747
				3,478,279

Corporate Bonds	Par (000)		Value
Airlines — 0.2%
American Airlines Pass-Through Trust, Series 2001-02, 7.86%, 4/01/13	USD	380	$	397,670
United Air Lines, Inc., 12.75%, 7/15/12		337		375,764
				773,434
Beverages — 1.1%
Anheuser-Busch InBev Worldwide, Inc., 7.75%, 1/15/19 (a)		2,950		3,778,268
Crown European Holdings SA, 7.13%, 8/15/18 (a)	EUR	355		461,121
				4,239,389
Building Products — 0.3%
Associated Materials LLC, 9.88%, 11/15/16	USD	650		689,000
CPG International I, Inc., 10.50%, 7/01/13		200		199,750
Momentive Performance Materials, Inc., Series WI, 9.75%, 12/01/14		250		244,063
				1,132,813
Capital Markets — 4.0%
CDP Financial, Inc. (a)(d):
3.00%, 11/25/14		1,935		1,997,843
5.60%, 11/25/39		2,935		3,344,562
Credit Suisse, 5.50%, 5/01/14		575		636,473
The Goldman Sachs Group, Inc.:
3.70%, 8/01/15		800		809,874
5.38%, 3/15/20		1,200		1,238,501
6.00%, 6/15/20		1,770		1,906,686
Morgan Stanley:
2.88%, 5/14/13 (b)		1,890		1,909,248
4.20%, 11/20/14 (d)		1,420		1,462,316
4.00%, 7/24/15		410		411,901
6.25%, 8/28/17		875		952,527
5.63%, 9/23/19 (e)		630		641,126
				15,311,057
Chemicals — 1.1%
American Pacific Corp., 9.00%, 2/01/15		250		247,187
Ames True Temper, Inc., 4.53%, 1/15/12 (b)		650		648,375
Hexion U.S. Finance Corp.:
9.75%, 11/15/14		920		903,900
8.88%, 2/01/18		595		550,375
Huntsman International LLC, 6.88%, 11/15/13 (a)	EUR	435		542,985
Innophos, Inc., 8.88%, 8/15/14	USD	885		907,125
NOVA Chemicals Corp.:
6.50%, 1/15/12		115		117,588
3.65%, 11/15/13 (b)		300		280,125
				4,197,660
Commercial Banks — 3.4%
DEPFA ACS Bank, 5.13%, 3/16/37 (a)		3,775		2,977,648
Dexia Credit Local SA, 2.00%, 3/05/13 (a)		1,060		1,067,137
Eksportfinans ASA:
1.88%, 4/02/13		2,835		2,889,503
3.00%, 11/17/14		1,475		1,552,671
5.50%, 6/26/17		950		1,126,979
HSBC Bank Plc, 3.50%, 6/28/15 (a)		780		813,212
HSBC Bank USA NA, 5.88%, 11/01/34		775		827,559
HSBC Holdings Plc, 6.50%, 5/02/36		300		342,016
The Toronto-Dominion Bank, 2.20%, 7/29/15 (a)		1,330		1,354,799
				12,951,524

Portfolio Abbreviations

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

CAD	Canadian Dollar
EUR	Euro
FKA	Formerly Known As
GBP	British Pound
GO	General Obligation Bonds
LIBOR	London Inter-Bank Offered Rate
RB	Revenue Bonds
USD	US Dollar

See Notes to Financial Statements.
	ANNUAL REPORT	AUGUST 31, 2010	13

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

Corporate Bonds	Par (000)		Value
Commercial Services & Supplies — 0.1%
West Corp., 9.50%, 10/15/14	USD	305	$	311,100
Consumer Finance — 0.2%
Ford Motor Credit Co. LLC:
7.80%, 6/01/12		340		357,796
3.28%, 1/13/12 (b)		125		122,500
SLM Corp., Series A, 0.80%, 1/27/14 (b)		550		448,894
				929,190
Containers & Packaging — 1.2%
Ball Corp.:
7.38%, 9/01/19		270		289,575
6.75%, 9/15/20		675		710,437
Berry Plastics Corp., 8.88%, 9/15/14		690		657,225
Crown Americas LLC, 7.75%, 11/15/15		150		155,625
Impress Holdings BV, 3.65%, 9/15/13 (a)(b)		300		283,500
Pregis Corp., 12.38%, 10/15/13		545		545,000
Smurfit Kappa Acquisitions (a):
7.25%, 11/15/17	EUR	725		937,132
7.75%, 11/15/19		685		889,768
				4,468,262
Diversified Financial Services — 5.1%
Ally Financial Inc., 8.30%, 2/12/15 (a)	USD	3,500		3,640,000
Bank of America Corp. (e):
7.63%, 6/01/19		450		526,706
5.63%, 7/01/20		1,310		1,349,588
FCE Bank Plc:
7.88%, 2/15/11	GBP	550		854,050
7.13%, 1/16/12	EUR	650		852,543
General Electric Capital Corp.:
6.15%, 8/07/37 (e)	USD	4,150		4,411,226
5.88%, 1/14/38		177		181,999
6.88%, 1/10/39		135		158,012
JPMorgan Chase & Co.:
3.70%, 1/20/15 (d)		3,425		3,585,191
6.00%, 1/15/18		125		141,947
6.30%, 4/23/19 (e)		2,000		2,298,422
Reynolds Group DL Escrow, Inc., 7.75%, 10/15/16 (a)		1,000		1,007,500
Reynolds Group Issuer, Inc., 7.75%, 10/15/16 (a)	EUR	550		707,436
				19,714,620
Diversified Telecommunication Services — 6.0%
AT&T Inc.:
6.45%, 6/15/34	USD	780		884,895
6.30%, 1/15/38		600		687,540
6.55%, 2/15/39		3,375		3,999,550
BellSouth Telecommunications, Inc., 8.18%, 12/15/95 (f)		1,700		1,256,917
Comcast Cable Holdings LLC, 7.88%, 8/01/13		10		11,492
GCI, Inc., 8.63%, 11/15/19		1,700		1,785,000
Nordic Telephone Co. Holdings ApS, 8.88%, 5/01/16 (a)		120		126,000
Qwest Communications International, Inc.:
7.50%, 2/15/14		60		61,125
Series B, 7.50%, 2/15/14		30		30,562
Qwest Corp.:
8.88%, 3/15/12		120		132,000
8.38%, 5/01/16		180		209,700
Telecom Italia Capital SA:
4.95%, 9/30/14		1,075		1,129,895
6.00%, 9/30/34		1,550		1,477,026
Telefonica Emisiones SAU, 7.05%, 6/20/36		1,975		2,375,635
Telefonica Europe BV, 7.75%, 9/15/10		725		726,140
Verizon Communications, Inc.:
6.40%, 2/15/38 (d)		2,125		2,486,802
8.95%, 3/01/39		900		1,336,347

Corporate Bonds	Par (000)		Value
Diversified Telecommunication Services (concluded)
Verizon Global Funding Corp., 7.75%, 12/01/30	USD	70	$	91,284
Verizon Maryland, Inc., Series B, 5.13%, 6/15/33		125		115,659
Verizon New Jersey, Inc.:
5.88%, 1/17/12		335		354,896
7.85%, 11/15/29		230		270,354
Verizon Virginia, Inc., Series A, 4.63%, 3/15/13 (d)		3,150		3,354,290
Windstream Corp.:
8.13%, 8/01/13		60		63,975
8.63%, 8/01/16		90		92,925
7.88%, 11/01/17		60		60,900
				23,120,909
Electric Utilities — 4.7%
Alabama Power Co., 6.00%, 3/01/39		1,275		1,525,849
Commonwealth Edison Co., 4.00%, 8/01/20		480		506,574
Duke Energy Carolinas LLC:
6.10%, 6/01/37		315		377,098
6.00%, 1/15/38		825		998,572
EDF SA, 5.60%, 1/27/40 (a)		1,400		1,532,030
E.ON International Finance BV, 6.65%, 4/30/38 (a)		1,525		1,950,168
Elwood Energy LLC, 8.16%, 7/05/26		98		90,516
Florida Power & Light Co., 4.95%, 6/01/35		950		1,000,928
Florida Power Corp.:
6.35%, 9/15/37		1,325		1,661,205
6.40%, 6/15/38		875		1,098,766
PacifiCorp., 6.25%, 10/15/37		575		712,324
Public Service Co. of Colorado, 6.25%, 9/01/37		1,200		1,507,590
Southern California Edison Co.:
5.63%, 2/01/36		625		721,936
Series 05-E, 5.35%, 7/15/35		125		139,093
Series 08-A, 5.95%, 2/01/38		1,075		1,302,613
The Toledo Edison Co., 6.15%, 5/15/37		350		398,501
Virginia Electric and Power Co., Series A, 6.00%, 5/15/37		2,000		2,398,174
				17,921,937
Energy Equipment & Services — 0.7%
Expro Finance Luxembourg SCA, 8.50%, 12/15/16 (a)		1,400		1,309,000
North American Energy Alliance LLC, 10.88%, 6/01/16 (a)		985		1,063,800
Thermon Industries, Inc., 9.50%, 5/01/17 (a)		180		184,500
				2,557,300
Food & Staples Retailing — 0.9%
Wal-Mart Stores, Inc.:
6.50%, 8/15/37		1,900		2,447,318
6.20%, 4/15/38		850		1,047,543
				3,494,861
Food Products — 0.5%
Kraft Foods, Inc., 7.00%, 8/11/37		1,455		1,810,035
Health Care Equipment & Supplies — 0.3%
Covidien International Finance SA, 2.80%, 6/15/15		230		237,382
DJO Finance LLC, 10.88%, 11/15/14		860		921,275
				1,158,657
Health Care Providers & Services — 0.3%
Tenet Healthcare Corp.:
9.00%, 5/01/15		410		436,650
10.00%, 5/01/18		170		191,250
8.88%, 7/01/19		330		356,813
				984,713
Hotels, Restaurants & Leisure — 0.3%
McDonald’s Corp., 5.70%, 2/01/39		825		988,829

See Notes to Financial Statements.
14	ANNUAL REPORT	AUGUST 31, 2010

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

Corporate Bonds	Par (000)		Value
Household Durables — 1.7%
Beazer Homes USA, Inc.:
6.88%, 7/15/15	USD	210	$	181,650
8.13%, 6/15/16		255		223,125
12.00%, 10/15/17		1,050		1,182,562
Belvoir Land LLC, Series A-1, 5.27%, 12/15/47 (a)		300		256,932
Irwin Land LLC (a):
Series A-1, 5.03%, 12/15/25		525		502,288
Series A-2, 5.40%, 12/15/47		1,500		1,259,415
Ohana Military Communities LLC, Series 04I, 6.19%, 4/01/49 (a)		350		355,702
Standard Pacific Corp.:
6.25%, 4/01/14		160		149,200
7.00%, 8/15/15		225		207,000
10.75%, 9/15/16		2,100		2,210,250
				6,528,124
Household Products — 0.3%
Kimberly-Clark, Corp., 6.63%, 8/01/37		850		1,133,405
IT Services — 0.2%
iPayment, Inc., 9.75%, 5/15/14		240		216,900
iPayment Investors LP, 12.75%, 7/15/14 (a)(g)		812		694,010
				910,910
Independent Power Producers & Energy Traders — 0.7%
Calpine Construction Finance Co. LP, 8.00%, 6/01/16 (a)		1,000		1,050,000
Energy Future Holdings Corp., 10.00%, 1/15/20 (a)		1,520		1,463,765
Energy Future Intermediate Holding Co. LLC, 10.00%, 12/01/20		97		93,215
NRG Energy, Inc.:
7.25%, 2/01/14		35		35,700
7.38%, 2/01/16		5		5,038
7.38%, 1/15/17		15		15,112
				2,662,830
Industrial Conglomerates — 0.7%
Sequa Corp. (a):
11.75%, 12/01/15		690		710,700
13.50%, 12/01/15 (g)		1,940		2,018,008
				2,728,708
Insurance — 1.8%
Chubb Corp., 6.00%, 5/11/37		1,100		1,271,766
Hartford Life Global Funding Trusts, 0.72%, 6/16/14 (b)		425		398,512
Metropolitan Life Global Funding I (a):
2.50%, 1/11/13 (d)		2,545		2,601,143
5.13%, 6/10/14		775		858,530
Prudential Financial, Inc.:
5.70%, 12/14/36		675		689,793
Series D, 5.90%, 3/17/36		500		523,729
Teachers Insurance & Annuity Association of America, 6.85%, 12/16/39 (a)		505		632,242
				6,975,715
Machinery — 0.9%
AGY Holding Corp., 11.00%, 11/15/14		310		263,500
Accuride Corp., 7.50%, 2/26/20 (g)(h)		5		11,771
Navistar International Corp.:
3.00%, 10/15/14 (h)		1,130		1,233,113
8.25%, 11/01/21		1,400		1,466,500
Titan International, Inc., 5.63%, 1/15/17 (a)(h)		340		404,600
				3,379,484

Corporate Bonds	Par (000)		Value
Marine — 0.8%
Horizon Lines, Inc., 4.25%, 8/15/12 (h)	USD	2,355	$	1,978,200
Nakilat, Inc., Series A, 6.07%, 12/31/33 (a)		1,050		1,155,063
				3,133,263
Media — 5.9%
Affinion Group, Inc., 10.13%, 10/15/13		695		712,375
CCH II LLC, 13.50%, 11/30/16		1,850		2,192,695
CMP Susquehanna Corp., 3.64%, 5/15/14 (a)(b)		52		1,040
Clear Channel Worldwide Holdings, Inc., Series B, 9.25%, 12/15/17		1,132		1,187,185
Comcast Cable Communications Holdings, Inc., 9.46%, 11/15/22		600		843,281
Comcast Corp.:
6.45%, 3/15/37		790		899,523
6.40%, 3/01/40		300		342,311
Cox Enterprises, Inc.:
Loan Close 2, 4.00%, 8/15/18		908		907,900
Loan Close 3, 12.00%, 8/15/18		1,050		1,050,000
Shares Loan, 4.00%, 8/15/18		1,071		1,070,532
DIRECTV Holdings LLC, 6.00%, 8/15/40		240		252,594
Discovery Communications LLC, 3.70%, 6/01/15		480		504,946
Interactive Data Corp., 10.25%, 8/01/18 (a)		1,480		1,535,500
NBC Universal, Inc., 5.15%, 4/30/20 (a)		680		731,937
News America Holdings, Inc.:
7.70%, 10/30/25		825		1,053,906
8.45%, 8/01/34		625		841,667
News America, Inc., 7.63%, 11/30/28		985		1,178,410
Nielsen Finance LLC, 10.00%, 8/01/14		500		525,000
Rainbow National Services LLC (a):
8.75%, 9/01/12		200		200,250
10.38%, 9/01/14		943		978,362
TCI Communications, Inc., 7.88%, 2/15/26		610		756,182
TL Acquisitions, Inc., 10.50%, 1/15/15 (a)		490		467,950
Time Warner Cable, Inc., 7.30%, 7/01/38		930		1,149,207
Time Warner Cos., Inc.:
6.95%, 1/15/28		70		81,557
6.63%, 5/15/29		90		102,124
Time Warner, Inc.:
7.63%, 4/15/31		205		255,516
7.70%, 5/01/32		85		107,042
Unitymedia Hessen GmbH & Co. KG, 8.13%, 12/01/17 (a)		2,600		2,671,500
				22,600,492
Metals & Mining — 1.6%
AK Steel Corp., 7.63%, 5/15/20		15		15,113
AngloGold Ashanti Holdings Plc, 5.38%, 4/15/20		270		282,064
Drummond Co., Inc.:
9.00%, 10/15/14 (a)		1,115		1,166,569
7.38%, 2/15/16		375		375,469
Falconbridge Ltd., 6.20%, 6/15/35		1,250		1,268,134
Goldcorp, Inc., 2.00%, 8/01/14 (h)		280		340,550
McJunkin Red Man Corp., 9.50%, 12/15/16 (a)		495		436,837
Murray Energy Corp., 10.25%, 10/15/15 (a)		245		250,512
New World Resources NV, 7.38%, 5/15/15	EUR	215		267,010
Novelis, Inc., 11.50%, 2/15/15	USD	1,070		1,177,000
United States Steel Corp., 7.38%, 4/01/20		715		723,937
				6,303,195
Oil, Gas & Consumable Fuels — 6.9%
Arch Coal, Inc., 7.25%, 10/01/20		1,225		1,243,375
Atlas Energy Operating Co. LLC:
12.13%, 8/01/17		600		689,250
10.75%, 2/01/18		105		115,763
BP Capital Markets Plc, 3.13%, 3/10/12		1,270		1,272,195
Bill Barrett Corp., 9.88%, 7/15/16		75		81,375
Burlington Resources Finance Co., 7.40%, 12/01/31		875		1,145,051

See Notes to Financial Statements.
	ANNUAL REPORT	AUGUST 31, 2010	15

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

Corporate Bonds	Par (000)		Value
Oil, Gas & Consumable Fuels (concluded)
Canadian Natural Resources, Ltd.:
6.50%, 2/15/37	USD	410	$	490,465
6.25%, 3/15/38		375		428,373
6.75%, 2/01/39		1,025		1,270,969
Cenovus Energy, Inc., 6.75%, 11/15/39		895		1,098,195
Chesapeake Energy Corp., 6.63%, 8/15/20		1,300		1,304,875
ConocoPhillips Canada Funding Co., 5.95%, 10/15/36		535		628,674
Crosstex Energy LP, 8.88%, 2/15/18		290		299,425
Devon Energy Corp., 7.95%, 4/15/32		625		859,685
EnCana Corp.:
6.50%, 8/15/34		670		766,882
6.63%, 8/15/37		700		839,668
Enterprise Products Operating LLC:
6.13%, 2/01/13		695		755,870
6.13%, 10/15/39		700		748,222
Kinder Morgan Energy Partners LP, 5.30%, 9/15/20		520		556,325
MidAmerican Energy Co., 5.80%, 10/15/36		700		811,022
MidAmerican Energy Holdings Co.:
5.95%, 5/15/37		800		906,773
6.50%, 9/15/37		1,900		2,308,644
Nexen, Inc., 6.40%, 5/15/37		750		823,130
Niska Gas Storage US LLC, 8.88%, 3/15/18 (a)		1,000		1,052,500
OPTI Canada, Inc., 9.00%, 12/15/12 (a)		700		701,750
Peabody Energy Corp., 6.50%, 9/15/20		1,230		1,293,038
Petrobras International Finance Co.:
5.88%, 3/01/18		75		81,454
5.75%, 1/20/20		1,725		1,848,988
Rockies Express Pipeline LLC, 3.90%, 4/15/15 (a)		680		675,995
Valero Energy Corp., 6.63%, 6/15/37		1,245		1,261,292
				26,359,223
Paper & Forest Products — 1.1%
Boise Paper Holdings LLC:
9.00%, 11/01/17		490		515,725
8.00%, 4/01/20		210		213,675
Clearwater Paper Corp., 10.63%, 6/15/16		620		697,500
Glatfelter, 7.13%, 5/01/16 (a)		295		296,844
International Paper Co., 7.30%, 11/15/39		750		845,108
NewPage Corp., 11.38%, 12/31/14		1,115		905,938
Verso Paper Holdings LLC, 11.50%, 7/01/14		745		785,975
				4,260,765
Pharmaceuticals — 1.7%
Roche Holdings, Inc., 7.00%, 3/01/39 (a)		850		1,165,327
Schering-Plough Corp., 6.55%, 9/15/37		1,125		1,480,373
Teva Pharmaceutical Finance LLC, 6.15%, 2/01/36		1,445		1,774,790
Wyeth:
6.00%, 2/15/36		675		821,636
5.95%, 4/01/37		925		1,113,760
				6,355,886
Road & Rail — 0.6%
Avis Budget Car Rental LLC, 9.63%, 3/15/18		715		747,175
Burlington Northern Santa Fe LLC, 5.75%, 5/01/40		950		1,067,479
Canadian National Railway Co., 6.25%, 8/01/34		350		441,830
				2,256,484
Software — 0.2%
BMS Holdings, Inc., 8.59%, 2/15/12 (a)(b)(g)		129		2,577
Oracle Corp., 5.38%, 7/15/40 (a)		895		970,169
				972,746
Textiles, Apparel & Luxury Goods — 0.0%
Quiksilver, Inc., 6.88%, 4/15/15		175		161,875

Corporate Bonds	Par (000)		Value
Thrifts & Mortgage Finance — 0.4%
Achmea Hypotheekbank NV, 3.20%, 11/03/14 (a)(d)	USD	1,305	$	1,378,488
Tobacco — 0.2%
Philip Morris International, Inc., 4.50%, 3/26/20		640		698,148
Wireless Telecommunication Services — 2.2%
Cricket Communications, Inc., 10.00%, 7/15/15		100		104,750
Crown Castle Towers LLC, 6.11%, 1/15/40 (a)		1,420		1,579,910
Digicel Group Ltd. (a):
9.13%, 1/15/15 (g)		560		562,800
8.25%, 9/01/17		150		155,813
MetroPCS Wireless, Inc., 9.25%, 11/01/14		60		62,400
Nextel Communications, Inc., Series E, 6.88%, 10/31/13		770		768,075
Rogers Communications, Inc., 7.50%, 8/15/38		1,150		1,528,062
SBA Tower Trust, 4.25%, 4/15/40 (a)		950		1,013,716
Sprint Capital Corp., 6.88%, 11/15/28		775		647,125
Vodafone Group Plc, 4.15%, 6/10/14		2,050		2,202,180
				8,624,831
Total Corporate Bonds — 59.2%				226,969,141
Foreign Agency Obligations
Hellenic Republic Government Bond, 4.60%, 9/20/40	EUR	160		105,934
Israel Government AID Bond:
5.50%, 4/26/24	USD	825		1,029,400
5.50%, 9/18/33		845		1,041,193
Italy Government International Bond, 5.38%, 6/15/33		455		472,646
Japan Finance Corp., 2.00%, 6/24/11		860		869,304
Kreditanstalt fuer Wiederaufbau:
1.38%, 7/15/13		660		668,719
2.75%, 9/08/20		300		297,870
Landwirtschaftliche Rentenbank:
4.13%, 7/15/13		115		124,799
Series E, 5.25%, 7/02/12		395		426,385
Series E, 4.38%, 1/15/13		250		270,788
Series E, 4.00%, 2/02/15		230		254,765
Mexico Government International Bond, 5.63%, 1/15/17		370		415,325
Province of Ontario Canada:
4.10%, 6/16/14		1,205		1,325,623
Series 1, 1.88%, 11/19/12		1,175		1,201,917
Qatari Diar Finance QSC, 3.50%, 7/21/15 (a)		910		927,290
Russian Foreign Bond Eurobond, 7.50%, 3/31/30		1,371		1,627,962
United Mexican States, Series A, 5.13%, 1/15/20		215		233,275
Total Foreign Agency Obligations — 2.9%				11,293,195
Non-Agency Mortgage-Backed Securities
Collateralized Mortgage Obligations — 5.1%
Banc of America Funding Corp., Series 2007-2, Class 1A2, 6.00%, 3/25/37		1,100		878,827
Bear Stearns Adjustable Rate Mortgage Trust, Series 2004-8, Class 14A1, 5.39%, 11/25/34 (b)		536		508,865
CS First Boston Mortgage Securities Corp., Series 2005-12, Class 6A1, 6.00%, 1/25/36		1,093		768,850

See Notes to Financial Statements.
16	ANNUAL REPORT	AUGUST 31, 2010

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

Non-Agency Mortgage-Backed Securities	Par (000)		Value
Collateralized Mortgage Obligations (concluded)
Countrywide Alternative Loan Trust:
Series 2005-64CB, Class 1A15, 5.50%, 12/25/35	USD	1,600	$	1,312,387
Series 2006-0A19, Class A1, 0.45%, 2/20/47 (b)		478		253,433
Series 2006-0A21, Class A1, 0.46%, 3/20/47 (b)		887		465,674
Series 2006-41CB, Class 1A4, 5.75%, 1/25/37		800		579,452
Series 2007-HY4, Class 4A1, 5.71%, 6/25/47 (b)		1,027		709,863
Countrywide Home Loan Mortgage Pass-Through Trust:
Series 2006-0A5, Class 2A1, 0.46%, 4/25/46 (b)		371		209,787
Series 2007-10, Class A22, 6.00%, 7/25/37		864		695,902
Credit Suisse Mortgage Capital Certificates, Series 2007-1, Class 5A14, 6.00%, 2/25/37		670		546,917
Deutsche ALT-A Securities, Inc., Alternate Loan Trust, Series 2006-0A1, Class A1, 0.46%, 2/25/47 (b)		298		179,450
GSR Mortgage Loan Trust:
Series 2005-AR4, Class 6A1, 5.25%, 7/25/35 (b)		468		437,436
Series 2006-4F, Class 1A1, 5.00%, 5/25/36		928		823,172
Series 2006-AR1, Class 2A1, 5.00%, 1/25/36 (b)		784		621,584
Series 2007-4F, Class 3A1, 6.00%, 7/25/37		1,017		917,545
Homebanc Mortgage Trust, Series 2006-2, Class A1, 0.44%, 12/25/36 (b)		783		557,836
IndyMac IMJA Mortgage Loan Trust, Series 2007-A1, Class A4, 6.00%, 8/25/37		1,100		885,121
JPMorgan Mortgage Trust:
Series 2006-S3, Class 1A12, 6.50%, 8/25/36		828		762,337
Series 2007-S1, Class 2A22, 5.75%, 3/25/37		755		638,681
Merrill Lynch Mortgage Investors, Inc., Series 2006-A3, Class 3A1, 5.64%, 5/25/36 (b)		782		531,631
Residential Funding Mortgage Securities I, Series 2007-S6, Class 1A16, 6.00%, 6/25/37		599		536,144
Station Place Securitization Trust, Series 2009-1, Class A, 1.76%, 1/25/40 (a)(b)		1,615		1,615,000
Structured Asset Securities Corp., Series 2002-AL1, Class A2, 3.45%, 2/25/32		1,703		1,618,242
WaMu Mortgage Pass-Through Certificates, Series 2007-0A4, Class 1A, 1.18%, 5/25/47 (b)		436		274,613
Wells Fargo Mortgage-Backed Securities Trust:
Series 2006, Class 1A29, 6.00%, 8/25/36		659		636,959
Series 2006-3, Class A9, 5.50%, 3/25/36		548		532,642
Series 2007-8, Class 2A9, 6.00%, 7/25/37		608		569,009
Series 2007-10, Class 1A21, 6.00%, 7/25/37		488		415,881
				19,483,240
Commercial Mortgage-Backed Securities — 10.9%
CS First Boston Mortgage Securities Corp., Series 2002-CP5, Class A2, 4.94%, 12/15/35		2,720		2,884,107
Citigroup Commercial Mortgage Trust, Series 2008-C7, Class A4, 6.29%, 12/10/49 (b)		1,370		1,461,833
Commercial Mortgage Pass-Through Certificates, Series 2004-LB3A, Class A3, 5.09%, 7/10/37 (b)		960		980,714
First Union National Bank Commercial Mortgage:
Series 2001-C3, Class A3, 6.42%, 8/15/33		2,655		2,724,606
Series 2001-C4, Class A2, 6.22%, 12/12/33		2,200		2,289,874
GMAC Commercial Mortgage Securities, Inc., Series 2002-C3, Class A2, 4.93%, 7/10/39		2,350		2,489,256
JPMorgan Chase Commercial Mortgage Securities Corp.:
Series 2001-C1, Class A3, 5.86%, 10/12/35		2,114		2,191,592
Series 2004-CB8, Class A1A, 4.16%, 1/12/39 (a)		827		847,078
Series 2004-CBX, Class A4, 4.53%, 1/12/37		2,180		2,225,592

Non-Agency Mortgage-Backed Securities	Par (000)		Value
Commercial Mortgage-Backed Securities (concluded)
LB-UBS Commercial Mortgage Trust, Series 2007-C6, Class A4, 5.86%, 7/15/40 (b)	USD	931	$	960,202
Merrill Lynch Mortgage Trust, Series 2004 BPC1, Class A3, 4.47%, 10/12/41 (b)		4,200		4,283,743
Morgan Stanley Capital I, Series 2005-T17, Class A4, 4.52%, 12/13/41		2,525		2,589,807
Wachovia Bank Commercial Mortgage Trust:
Series 2005-C21, Class A3, 5.38%, 10/15/44 (b)		624		624,546
Series 2006-C28, Class A2, 5.50%, 10/15/48 (i)		14,000		14,389,848
Series 2007-C33, Class A4, 6.10%, 2/15/51 (b)		995		1,010,471
				41,953,269
Total Non-Agency Mortgage-Backed Securities — 16.0%				61,436,509
Other Interests (j)	Beneficial Interest (000)
Health Care Providers & Services — 0.0%
Critical Care Systems International, Inc.		2		381
Total Other Interests — 0.0%				381
Preferred Securities
Capital Trusts	Par (000)
Capital Markets — 0.1%
Credit Suisse Guernsey Ltd., 5.86% (b)(k)		494		452,010
Electric Utilities — 0.2%
PECO Energy Capital Trust IV, 5.75%, 6/15/33		790		667,598
Insurance — 0.9%
The Allstate Corp., 6.50%, 5/15/67 (b)		1,950		1,774,500
Lincoln National Corp., 6.05%, 4/20/67 (b)		675		567,000
The Travelers Cos., Inc., 6.25%, 3/15/67 (b)		675		647,465
ZFS Finance (USA) Trust V, 6.50%, 5/09/67 (a)(b)		675		610,875
				3,599,840
Total Capital Trusts — 1.2%				4,719,448
Preferred Stocks	Shares
Media — 0.0%
CMP Susquehanna Radio Holdings Corp., 0.00% (a)(b)(c)		12,033		—
Specialty Retail — 0.0%
Lazydays RV Center, Inc., 0.00% (c)		48		56,838
Total Preferred Stocks — 0.0%				56,838
Total Preferred Securities — 1.2%				4,776,286

See Notes to Financial Statements.
	ANNUAL REPORT	AUGUST 31, 2010	17

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

Taxable Municipal Bonds	Par (000)		Value
The Board of Trustees of The Leland Stanford Junior University, 4.25%, 5/01/16	USD	435	$	491,106
City of Chicago Illinois, RB, Build America Bonds, 6.40%, 1/01/40		250		276,510
Dallas Area Rapid Transit, RB, Build America Bonds, 6.00%, 12/01/44		255		306,617
East Bay Municipal Utility District, RB, Build America Bonds, 5.87%, 6/01/40		950		1,105,619
Indianapolis Local Public Improvement Bond Bank, RB, Build America Bonds, 6.12%, 1/15/40		1,275		1,472,485
Metropolitan Transportation Authority, RB, Build America Bonds, 7.34%, 11/15/39		625		802,844
New York City Municipal Water Finance Authority, RB, Build America Bonds, 5.72%, 6/15/42		700		782,621
New York State Dormitory Authority, RB, Build America Bonds:
5.63%, 3/15/39		550		590,123
5.60%, 3/15/40		950		1,035,918
Port Authority of New York & New Jersey, RB, Consolidated, 159th Series, 6.04%, 12/01/29		385		438,742
Princeton University, 5.70%, 3/01/39		575		697,866
State of California, GO:
Build America Bonds, 7.30%, 10/01/39		1,090		1,201,660
Build America Bonds, 7.35%, 11/01/39		540		622,409
Build America Bonds, Various Purpose, 7.50%, 4/01/34		360		408,798
Various Purpose, Series 3, 5.45%, 4/01/15		2,300		2,461,184
State of Illinois, GO, Pension, 5.10%, 6/01/33		970		826,964
Total Taxable Municipal Bonds — 3.5%				13,521,466
U.S. Government Sponsored Agency Securities
Agency Obligations — 5.7%
Fannie Mae:
6.45%, 10/09/19 (d)(l)		5,875		3,872,976
7.13%, 1/15/30 (d)		2,775		4,031,304
5.63%, 7/15/37 (m)		775		979,692
Federal Home Loan Banks:
5.38%, 9/30/22 (d)		5,400		6,517,309
5.25%, 12/09/22 (m)		675		805,466
5.37%, 9/09/24 (d)		1,075		1,299,347
Freddie Mac:
5.50%, 7/18/16		210		252,043
5.00%, 2/16/17		425		499,242
Resolution Funding Corp. (l):
6.40%, 7/15/18		525		430,522
6.39%, 10/15/18		525		425,280
Tennessee Valley Authority, 5.25%, 9/15/39		2,355		2,792,886
				21,906,067
Collateralized Mortgage Obligations — 0.6%
Fannie Mae Mortgage-Backed Securities, Series 2005-5, Class PK, 5.00%, 12/25/34		1,263		1,380,715
Freddie Mac Mortgage-Backed Securities, Series 2825, Class VP, 5.50%, 6/15/15		885		973,240
				2,353,955

U.S. Government Sponsored Agency Securities	Par (000)		Value
Federal Deposit Insurance Corporation Guaranteed — 1.8%
Citigroup Funding, Inc. (d):
2.13%, 7/12/12	USD	1,415	$	1,454,399
1.88%, 10/22/12		2,800		2,868,505
General Electric Capital Corp.:
2.00%, 9/28/12 (d)		1,850		1,900,300
2.13%, 12/21/12		515		531,013
				6,754,217
Interest Only Collateralized Mortgage Obligations — 0.1%
Freddie Mac Mortgage-Backed Securities:
Series 2579, Class HI, 5.00%, 8/15/17		795		35,803
Series 2611, Class QI, 5.50%, 9/15/32		3,074		366,192
				401,995
Mortgage-Backed Securities — 27.5%
Fannie Mae Mortgage-Backed Securities (n):
4.00%, 4/01/25 – 9/15/40		9,038		9,481,632
4.50%, 9/15/40		8,500		8,925,000
5.00%, 9/15/25 – 9/15/40		29,192		31,025,794
5.50%, 9/15/25 – 9/15/40		11,339		12,126,069
6.00%, 8/01/29 – 9/15/40		15,967		17,256,715
Freddie Mac Mortgage-Backed Securities:
4.00%, 3/01/25 – 8/15/25 (d)(n)		16,551		17,432,611
4.50%, 4/01/40 – 9/15/40 (n)		6,092		6,402,662
5.00%, 10/15/40 (n)		100		105,859
5.50%, 6/01/40		1,018		1,087,410
6.00%, 2/01/13 – 12/01/18		1,178		1,273,874
Ginnie Mae Mortgage-Backed Securities, 5.50%, 8/15/33		142		154,154
				105,271,780
Total U.S. Government Sponsored Agency Securities — 35.7%				136,688,014
U.S. Treasury Obligations
U.S. Treasury Bonds:
8.13%, 8/15/21 (d)		1,550		2,361,086
8.00%, 11/15/21 (d)(e)		5,950		9,022,616
1.00%, 4/30/12 (d)		2,345		2,366,527
1.75%, 7/31/15 (d)		15,095		15,411,089
1.25%, 8/31/15		5,250		5,226,211
4.25%, 5/15/39 (d)		6,045		6,828,015
U.S. Treasury Notes:
2.63%, 8/15/20 (d)		57,203		57,935,916
4.50%, 8/15/39 (e)		290		341,022
4.63%, 2/15/40 (d)		4,333		5,198,248
4.38%, 5/15/40		2,855		3,294,402
3.88%, 8/15/40		1,625		1,727,325
Total U.S. Treasury Obligations — 28.6%				109,712,457
Warrants (o)	Shares
Media — 0.0%
CMP Susquehanna Radio Holdings Corp. (Expires 3/26/19) (a)		13,751		—
Total Warrants — 0.0%				—
Total Long-Term Investments (Cost — $565,036,740) — 154.1%				591,097,454

See Notes to Financial Statements.
18	ANNUAL REPORT	AUGUST 31, 2010

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

Short-Term Securities	Shares		Value
Money Market Fund – 0.1%
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.25% (p)(q)		506,274	$	506,274
	Par (000)
Borrowed Bond Agreements – 0.1%
JPMorgan Securities Inc., 0.13%, 9/02/10	USD	299		299,425
Total Short-Term Securities (Cost – $805,699) – 0.2%				805,699
Options Purchased	Contracts
Exchange-Traded Call Options – 0.0%
Five-Year U.S. Treasury Note Future, Strike Price USD 121, Expires 11/26/10		21		12,469
Exchange-Traded Put Options – 0.0%
Five-Year U.S. Treasury Note Future, Strike Price USD 117, Expires 11/26/10		21		3,445
	Notional Amount (000)
Over-the-Counter Call Swaptions – 1.9%
Pay a fixed rate of 3.93% and receive a floating rate based on 3-month LIBOR, Expires 7/16/12, Broker Goldman Sachs Bank USA	USD	4,700		439,135
Receive a fixed rate of 4.22% and pay a floating rate based on 3-month LIBOR, Expires 4/29/11, Broker Credit Suisse International		9,000		1,228,005
Receive a fixed rate of 3.65% and pay a floating rate based on 3-month LIBOR, Expires 5/05/11, Broker Credit Suisse International		5,700		516,089
Receive a fixed rate of 4.01% and pay a floating rate based on 3-month LIBOR, Expires 5/16/11, Broker Goldman Sachs Bank USA		6,000		709,542
Receive a fixed rate of 3.86% and pay a floating rate based on 3-month LIBOR, Expires 5/19/11, Broker JPMorgan Chase Bank NA		10,700		1,133,055
Receive a fixed rate of 4.39% and pay a floating rate based on 3-month LIBOR, Expires 5/08/12, Broker Citibank NA		2,400		308,861
Receive a fixed rate of 3.89% and pay a floating rate based on 3-month LIBOR, Expires 7/09/12, Broker Goldman Sachs Bank USA		4,200		382,460
Receive a fixed rate of 3.70% and pay a floating rate based on 3-month LIBOR, Expires 8/03/12, Broker Credit Suisse International		4,800		377,986
Receive a fixed rate of 3.72% and pay a floating rate based on 3-month LIBOR, Expires 8/06/12, Broker Deutsche Bank AG		6,000		477,240
Receive a fixed rate of 4.21% and pay a floating rate based on 3-month LIBOR, Expires 4/22/13, Broker JPMorgan Chase Bank NA		5,400		214,715
Receive a fixed rate of 5.20% and pay a floating rate based on 3-month LIBOR, Expires 4/28/15, Broker Citibank NA		9,300		1,371,611
				7,158,699
Options Purchased	Notional Amount (000)		Value
Over-the-Counter Put Swaptions – 0.2%
Pay a fixed rate of 1.92% and receive a floating rate based on 3-month LIBOR, Expires 9/02/10, Broker Morgan Stanley Capital Services, Inc.	USD	25,900	$	259
Pay a fixed rate of 1.95% and receive a floating rate based on 3-month LIBOR, Expires 9/03/10, Broker Citibank NA		25,900		259
Pay a fixed rate of 4.22% and receive a floating rate based on 3-month LIBOR, Expires 4/29/11, Broker Credit Suisse International		9,000		27,297
Pay a fixed rate of 4.02% and receive a floating rate based on 3-month LIBOR, Expires 5/05/11, Broker Credit Suisse International		9,200		40,130
Pay a fixed rate of 4.01% and receive a floating rate based on 3-month LIBOR, Expires 5/16/11, Broker Goldman Sachs Bank USA		6,000		28,938
Pay a fixed rate of 3.86% and receive a floating rate based on 3-month LIBOR, Expires 5/19/11, Broker JPMorgan Chase Bank NA		10,700		66,843
Pay a fixed rate of 4.39% and receive a floating rate based on 3-month LIBOR, Expires 5/08/12, Broker Citibank NA		2,400		31,366
Pay a fixed rate of 3.89% and receive a floating rate based on 3-month LIBOR, Expires 7/09/12, Broker Goldman Sachs Bank USA		4,200		99,229
Pay a fixed rate of 3.93% and receive a floating rate based on 3-month LIBOR, Expires 7/16/12, Broker Goldman Sachs Bank USA		4,700		108,490
Pay a fixed rate of 3.70% and receive a floating rate based on 3-month LIBOR, Expires 8/03/12, Broker Credit Suisse International		4,800		138,965
Pay a fixed rate of 3.72% and receive a floating rate based on 3-month LIBOR, Expires 8/06/12, Broker Deutsche Bank AG		6,000		172,476
Pay a fixed rate of 4.21% and receive a floating rate based on 3-month LIBOR, Expires 4/22/13, Broker JPMorgan Chase Bank NA		5,400		19,418
Pay a fixed rate of 5.20% and receive a floating rate based on 3-month LIBOR, Expires 4/28/15, Broker Citibank NA		9,300		248,301
Receive a fixed rate of 2.02% and pay a floating rate based on 3-month LIBOR, Expires 11/10/10, Broker Bank of America NA		5,800		18,287
				1,000,258
Total Options Purchased (Cost – $6,493,601) – 2.1%				8,174,871
Total Investments Before Borrowed Bonds, TBA Sale Commitments and Options Written (Cost – $572,336,040*) – 156.4%				600,078,024
Borrowed Bonds
U.S. Treasury Notes, 2.63%, 8/15/20		295		(298,780	)
Total Borrowed Bonds (Proceeds – $298,807) – (0.1)%				(298,780	)

See Notes to Financial Statements.
	ANNUAL REPORT	AUGUST 31, 2010	19

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

TBA Sale Commitments (n)	Par (000)			Value
Fannie Mae Mortgage-Backed Securities:
4.00%, 4/01/25 - 9/15/40	USD	5,900	$	(6,196,841	)
4.50%, 9/15/40		8,500		(8,925,000	)
5.00%, 9/15/25 - 9/15/40		23,000		(24,419,332	)
5.50%, 9/15/25 - 9/15/40		500		(534,609	)
6.00%, 8/01/29 - 9/15/40		10,800		(11,626,870	)
Freddie Mac Mortgage-Backed Securities:
4.00%, 3/01/25 - 8/15/25		16,500		(17,319,852	)
4.50%, 4/01/40 - 9/15/40		6,000		(6,292,500	)
Ginnie Mae Mortgage-Backed Securities,
5.50%, 8/15/33		100		(108,219	)
Total TBA Sale Commitments (Proceeds – $75,294,672) – (19.7)%				(75,423,223	)
Options Written	Notional Amount (000)
Over-the-Counter Call Swaptions – (2.7)%
Pay a fixed rate of 4.92% and receive a floating rate based on 3-month LIBOR, Expires 11/04/10, Broker Barclays Bank Plc		15,000		(3,202,425	)
Pay a fixed rate of 4.06% and receive a floating rate based on 3-month LIBOR, Expires 5/12/11, Broker Royal Bank of Scotland Plc		6,800		(836,652	)
Pay a fixed rate of 4.06% and receive a floating rate based on 3-month LIBOR, Expires 5/13/11, Broker BNP Paribas SA		3,500		(429,674	)
Pay a fixed rate of 4.49% and receive a floating rate based on 3-month LIBOR, Expires 12/05/11, Broker Deutsche Bank AG		4,000		(580,088	)
Pay a fixed rate of 4.14% and receive a floating rate based on 3-month LIBOR, Expires 6/15/12, Broker Deutsche Bank AG		3,700		(403,448	)
Pay a fixed rate of 4.05% and receive a floating rate based on 3-month LIBOR, Expires 6/18/12, Broker Deutsche Bank AG		3,500		(359,842	)
Pay a fixed rate of 3.83% and receive a floating rate based on 3-month LIBOR, Expires 7/30/12, Broker Citibank NA		1,200		(104,231	)
Pay a fixed rate of 4.90% and receive a floating rate based on 3-month LIBOR, Expires 3/04/13, Broker Deutsche Bank AG		4,800		(728,155	)
Pay a fixed rate of 4.92% and receive a floating rate based on 3-month LIBOR, Expires 3/05/13, Broker Deutsche Bank AG		7,000		(1,074,318	)
Pay a fixed rate of 5.00% and receive a floating rate based on 3-month LIBOR, Expires 4/22/13, Broker JPMorgan Chase Bank NA		6,100		(958,335	)
Pay a fixed rate of 4.32% and receive a floating rate based on 3-month LIBOR, Expires 5/28/13, Broker Royal Bank of Scotland Plc		500		(54,225	)
Pay a fixed rate of 4.07% and receive a floating rate based on 3-month LIBOR, Expires 7/08/13, Broker Deutsche Bank AG		1,700		(156,432	)
Pay a fixed rate of 4.06% and receive a floating rate based on 3-month LIBOR, Expires 7/15/13, Broker Credit Suisse International		2,600		(237,206	)
Pay a fixed rate of 4.84% and receive a floating rate based on 3-month LIBOR, Expires 12/02/14, Broker JPMorgan Chase Bank NA		2,500		(318,915	)
Pay a fixed rate of 4.89% and receive a floating rate based on 3-month LIBOR, Expires 12/03/14, Broker Deutsche Bank AG		2,900		(378,917	)
Options Written	Notional Amount (000)		Value
Over-the-Counter Call Swaptions (concluded)
Pay a fixed rate of 4.21% and receive a floating rate based on 3-month LIBOR, Expires 8/06/15, Broker Goldman Sachs Bank USA	USD	3,800	$	(202,103	)
Pay a fixed rate of 3.97% and receive a floating rate based on 3-month LIBOR, Expires 8/11/15, Broker Bank of America NA		2,900		(134,203	)
Pay a fixed rate of 4.76% and receive a floating rate based on 3-month LIBOR, Expires 5/30/17, Broker JPMorgan Chase Bank NA		3,200		(362,883	)
				(10,522,052	)
Over-the-Counter Put Swaptions - (0.4)%
Pay a fixed rate of 4.06% and receive a floating rate based on 3-month LIBOR, Expires 7/15/13, Broker Credit Suisse International		2,600		(86,830	)
Receive a fixed rate of 2.32% and pay a floating rate based on 3-month LIBOR, Expires 11/10/10, Broker Bank of America NA		5,800		(7,523	)
Receive a fixed rate of 4.92% and pay a floating rate based on 3-month LIBOR, Expires 11/04/10, Broker Barclays Bank Plc		15,000		(285	)
Receive a fixed rate of 1.96% and pay a floating rate based on 3-month LIBOR, Expires 11/30/10, Broker Deutsche Bank AG		4,800		(24,720	)
Receive a fixed rate of 2.10% and pay a floating rate based on 3-month LIBOR, Expires 12/02/10, Broker Citibank NA		15,000		(1,065	)
Receive a fixed rate of 4.06% and pay a floating rate based on 3-month LIBOR, Expires 5/12/11, Broker Royal Bank of Scotland Plc		6,800		(29,254	)
Receive a fixed rate of 4.06% and pay a floating rate based on 3-month LIBOR, Expires 5/13/11, Broker BNP Paribas SA		3,500		(15,221	)
Receive a fixed rate of 4.49% and pay a floating rate based on 3-month LIBOR, Expires 12/05/11, Broker Deutsche Bank AG		4,000		(29,236	)
Receive a fixed rate of 4.14% and pay a floating rate based on 3-month LIBOR, Expires 6/15/12, Broker Deutsche Bank AG		3,700		(66,537	)
Receive a fixed rate of 4.05% and pay a floating rate based on 3-month LIBOR, Expires 6/18/12, Broker Deutsche Bank AG		3,500		(68,547	)
Receive a fixed rate of 3.83% and pay a floating rate based on 3-month LIBOR, Expires 7/30/12, Broker Citibank NA		1,200		(30,833	)
Receive a fixed rate of 4.00% and pay a floating rate based on 3-month LIBOR, Expires 8/13/12, Broker Morgan Stanley Capital Services, Inc.		8,100		(183,668	)
Receive a fixed rate of 4.90% and pay a floating rate based on 3-month LIBOR, Expires 3/04/13, Broker Deutsche Bank AG		4,800		(74,894	)
Receive a fixed rate of 4.92% and pay a floating rate based on 3-month LIBOR, Expires 3/05/13, Broker Deutsche Bank AG		7,000		(107,422	)
Receive a fixed rate of 5.00% and pay a floating rate based on 3-month LIBOR, Expires 4/22/13, Broker JPMorgan Chase Bank NA		6,100		(94,989	)
Receive a fixed rate of 4.32% and pay a floating rate based on 3-month LIBOR, Expires 5/28/13, Broker Royal Bank of Scotland Plc		500		(13,273	)
Receive a fixed rate of 4.07% and pay a floating rate based on 3-month LIBOR, Expires 7/08/13, Broker Deutsche Bank AG		1,700		(56,020	)
Receive a fixed rate of 4.84% and pay a floating rate based on 3-month LIBOR, Expires 12/02/14, Broker JPMorgan Chase Bank NA		2,500		(75,047	)

See Notes to Financial Statements.
20	ANNUAL REPORT	AUGUST 31, 2010

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

Options Written	Notional Amount (000)		Value
Over-the-Counter Put Swaptions (concluded)
Receive a fixed rate of 4.89% and pay a floating rate based on 3-month LIBOR, Expires 12/03/14, Broker Deutsche Bank AG	USD	2,900	$	(84,657	)
Receive a fixed rate of 4.47% and pay a floating rate based on 3-month LIBOR, Expires 8/05/15, Broker JPMorgan Chase Bank NA		7,900		(170,830	)
Receive a fixed rate of 4.21% and pay a floating rate based on 3-month LIBOR, Expires 8/06/15, Broker Goldman Sachs Bank USA		3,800		(93,700	)
Receive a fixed rate of 3.97% and pay a floating rate based on 3-month LIBOR, Expires 8/11/15, Broker Bank of America NA		2,900		(81,014	)
Receive a fixed rate of 4.76% and pay a floating rate based on 3-month LIBOR, Expires 5/30/17, Broker JPMorgan Chase Bank NA		3,200		(137,114	)
				(1,532,679	)
Total Options Written (Premiums Received – $8,630,370) – (3.1)%				(12,054,731	)
Total Investments, Net of Borrowed Bonds, TBA Sale Commitments and Options Written – 133.5%				512,301,290
Liabilities in Excess of Other Assets – (33.5)%				(128,761,725	)
Net Assets – 100.0%			$	383,539,565

* The cost and unrealized appreciation (depreciation) of investments as of August 31, 2010, as computed for federal income tax purposes, were as follows:

Aggregate cost	$	572,891,326
Gross unrealized appreciation	$	37,626,678
Gross unrealized depreciation		(10,439,980	)
Net unrealized appreciation	$	27,186,698

(a)	Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(b)	Variable rate security. Rate shown is as of report date.
(c)	Non-income producing security.
(d)	All or a portion of security has been pledged as collateral in connection with open reverse repurchase agreements.
(e)	All or a portion of security has been pledged as collateral in connection with swaps.
(f)	Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown reflects the current yield as of report date.
(g)	Represents a payment-in-kind security which may pay interest/dividends in additional face/shares.
(h)	Convertible security.
(i)	All or a portion of security has been pledged as collateral in connection with Term Asset-Backed Securities Loan Facility (“TALF”) Program.
(j)	Other interests represent beneficial interest in liquidation trusts and other reorganization entities and are non-income producing.
(k)	Security is perpetual in nature and has no stated maturity date.
(l)	Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(m)	All or a portion of security has been pledged as collateral in connection with open financial futures contracts.
(n)	Represents or includes a to-be-announced (“TBA”) transaction. Unsettled TBA transactions as of report date were as follows:

Counterparty	Value			Unrealized Appreciation (Depreciation)
Credit Suisse Securities LLC	$	(4,621,373	)	$	(10,998	)
Deutsche Bank Securities, Inc.	$	(1,368,049	)	$	(116,298	)
Goldman Sachs & Co.	$	337,489		$	68,762
Greenwich Financial Services	$	1,330,721		$	28,796
JPMorgan Securities, Inc.	$	(952,223	)	$	(1,220	)
Morgan Stanley Capital Services, Inc.		—		$	2,531
Nomura Securities International, Inc.	$	10,990,732		$	22,419
UBS Securities	$	(7,762,157	)	$	(44,493	)
Wells Fargo Bank, NA	$	(16,576,381	)	$	(46,116	)

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

Affiliate	Shares Held at August 31, 2009		Net Activity			Shares Held at August 31, 2010		Income
BlackRock Liquidity Funds, TempFund, Institutional Class		1,735,485		(1,229,211	)		506,274	$	4,243

(q)	Represents the current yield as of report date.
•	Reverse repurchase agreements outstanding as of August 31,2010 were as follows:

Counterparty	Interest Rate		Trade Date		Maturity Date		Net Closing Amount		Face Amount
Barclays Capital, Inc.		0.40%		11/25/09		Open	$	1,804,597	$	1,799,000
Barclays Capital, Inc.		0.40%		12/10/09		Open		3,163,286		3,154,000
Barclays Capital, Inc.		0.27%		3/04/10		Open		2,034,339		2,032,500
Barclays Capital, Inc.		0.29%		3/04/10		Open		12,548,160		12,536,815
Barclays Capital, Inc.		0.40%		3/05/10		Open		11,616,856		11,593,667
Credit Suisse Securities (USA), Inc.		0.30%		3/04/10		Open		2,772,827		2,770,320
Credit Suisse Securities (USA), Inc.		0.27%		3/05/10		Open		2,156,116		2,154,500
Credit Suisse Securities (USA), Inc.		0.30%		3/05/10		Open		3,241,547		3,238,309
Barclays Capital, Inc.		0.27%		3/25/10		Open		1,779,001		1,777,500
Barclays Capital, Inc.		0.29%		4/07/10		Open		1,121,687		1,120,687
Royal Bank of Scotland Plc		0.33%		5/14/10		Open		1,292,351		1,291,167
Morgan Stanley Capital Services, Inc.		0.23%		8/02/10		9/02/10		17,100,099		17,096,823
Barclays Capital, Inc.		0.27%		8/11/10		9/01/10		8,622,505		8,621,500
Barclays Capital, Inc.		0.25%		8/10/10		Open		1,857,667		1,857,450
BNP Paribas		0.25%		8/10/10		9/14/10		8,422,170		8,421,000
JPMorgan Chase Bank NA		0.11%		8/27/10		Open		11,985,093		11,985,000
JPMorgan Chase Bank NA		0.21%		8/30/10		Open		8,689,760		8,689,688
JPMorgan Chase Bank NA		0.26%		8/30/10		Open		7,140,067		7,140,000
Total							$	107,348,128	$	107,279,926

See Notes to Financial Statements.
	ANNUAL REPORT	AUGUST 31, 2010	21

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

• Foreign currency exchange contracts as of August 31, 2010 were as follows:

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
USD	5,910,772	GBP	3,710,000	Goldman Sachs International		9/07/10	$	221,199
GBP	2,190,000	USD	3,499,313	Royal Bank of Scotland Plc		9/07/10		(140,778	)
GBP	1,520,000	USD	2,430,146	UBS AG		9/07/10		(99,108	)
USD	5,238,016	EUR	4,144,000	Citibank NA		9/15/10		(13,357	)
USD	425,162	EUR	330,500	Deutsche Bank AG		9/15/10		6,345
EUR	3,210,000	USD	4,098,496	Goldman Sachs International		10/14/10		(30,849	)
USD	814,398	GBP	533,500	Citibank NA		10/20/10		(3,519	)
Total							$	(60,067	)

• Financial futures contracts purchased as of August 31, 2010 were as follows:

Contracts	Issue	Exchange	Expiration Date	Notional Value		Unrealized Appreciation
59	2-Year U.S. Treasury Bond	Chicago Mercantile	September 2010	$	12,929,153	$	17,660
63	10-Year U.S. Treasury Bond	Chicago Mercantile	September 2010	$	7,953,749		15,751
73	Euro-Bund	Eurex	September 2010	$	12,292,179		143,844
236	2-Year U.S. Treasury Bond	Chicago Mercantile	December 2010	$	51,701,756		15,432
329	30-Year U.S. Treasury Bond	Chicago Mercantile	December 2010	$	44,038,399		386,882
71	30-Year U.S. Treasury Ultra Bond	Chicago Mercantile	December 2010	$	10,125,395		140,761
Total						$	720,330

• Financial futures contracts sold as of August 31, 2010 were as follows:

Contracts	Issue	Exchange	Expiration Date	Notional Value		Unrealized Depreciation
935	5-Year U.S. Treasury Bond	Chicago Mercantile	December 2010	$	112,115,241	$	(384,252	)
40	10-Year U.S. Treasury Bond	Chicago Mercantile	December 2010	$	5,016,081		(8,919	)
59	Euro Dollars	Chicago Mercantile	December 2011	$	14,589,078		(39,972	)
Total						$	(433,143	)

• Interest rate swaps outstanding as of August 31, 2010 were as follows:

Fixed Rate	Floating Rate	Counterparty	Expiration	Notional Amount (000)		Unrealized Appreciation (Depreciation)
1.21% (a)	3-month LIBOR	Goldman Sachs Bank USA	May 2012	$	4,800	$	(49,674	)
0.79% (a)	3-month LIBOR	Deutsche Bank AG	July 2012	$	11,800		(31,727	)
0.81% (a)	3-month LIBOR	Morgan Stanley Capital Services, Inc.	July 2012	$	11,700		(36,208	)
0.85% (a)	3-month LIBOR	Morgan Stanley Capital Services, Inc	July 2012	$	11,700		(43,794	)
0.76% (a)	3-month LIBOR	Credit Suisse International	August 2012	$	7,800		(16,103	)
0.65% (a)	3-month LIBOR	Morgan Stanley Capital Services, Inc.	August 2012	$	1,900		179
1.59% (a)	3-month LIBOR	Deutsche Bank AG	August 2015	$	600		(785	)
1.62% (a)	3-month LIBOR	Deutsche Bank AG	August 2015	$	400		(1,187	)
2.13% (a)	3-month LIBOR	Barclays Bank Plc	August 2017	$	2,100		(12,154	)
3.34% (b)	3-month LIBOR	Morgan Stanley Capital Services, Inc.	June 2020	$	6,000		467,049
2.56% (a)	3-month LIBOR	Citibank NA	August 2020	$	400		(2,679	)
2.50% (a)	3-month LIBOR	Deutsche Bank AG	August 2020	$	11,800		(12,266	)
2.68% (b)	3-month LIBOR	Deutsche Bank AG	August 2020	$	3,100		55,238
4.84% (a)	3-month LIBOR	Morgan Stanley Capital Services, Inc.	January 2038	$	3,300		(1,063,503	)
4.58% (a)	3-month LIBOR	Morgan Stanley Capital Services, Inc.	February 2040	$	800		(226,944	)
4.44% (a)	3-month LIBOR	JPMorgan Chase Bank NA	April 2040	$	1,400		(358,199	)
Total						$	(1,332,757	)

	(a)	Pays fixed interest rate and receives floating rate.
	(b)	Pays floating interest rate and receives fixed rate.
•	Total return swaps outstanding as of August 31, 2010 were as follows:

Interest Receivable Rate	Counterparty	Expiration Date	Notional Amount (000)		Unrealized Appreciation
2.52%	Deutsche Bank AG	May 2020	$	4,300	$	207,062	(c)
2.62%	Morgan Stanley Capital Services, Inc.	May 2020	$	7,100	$	410,465	(c)
Total		��			$	617,527

(c) Based on the change in return of the Consumer Price Index for All Urban Consumers and pays at maturity.

See Notes to Financial Statements.

22 ANNUAL REPORT AUGUST 31, 2010

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

• Credit default swaps on single-name issuers — buy protection outstanding as of August 31, 2010 were as follows:

Issuer	Pay Fixed Rate	Counterparty	Expiration	Notional Amount (000)		Unrealized Depreciation
NOVA Chemicals Corp.	5.00%	Citibank NA	March 2012	$	50	$	(955	)
NOVA Chemicals Corp.	5.00%	JPMorgan Chase Bank NA	June 2012	$	65		(902	)
Macy’s, Inc.	7.50%	Morgan Stanley Capital Services, Inc.	June 2012	$	405		(44,120	)
Macy’s, Inc.	8.00%	Morgan Stanley Capital Services, Inc.	June 2012	$	145		(17,093	)
NOVA Chemicals Corp.	5.00%	Goldman Sachs Bank USA	December 2013	$	300		(9,775	)
Brunswick Corp.	5.00%	Credit Suisse International	September 2014	$	570		(30,123	)
Macy’s, Inc.	1.00%	Morgan Stanley International	September 2014	$	150		(429	)
Total						$	(103,397	)

• Credit default swaps on traded indexes — buy protection outstanding as of August 31, 2010 were as follows:

Issuer	Pay Fixed Rate	Counterparty	Expiration	Notional Amount (000)		Unrealized Appreciation
Dow Jones CDX North America Investment Grade High Volatility Index	1.00%	Citibank NA	June 2015	$	3,300	$	3,636
Dow Jones CDX North America Investment Grade Index Series 14	1.00%	Citibank NA	June 2015	$	3,300		641
Total						$	4,277

• Credit default swaps on traded indexes — sold protection outstanding as of August 31, 2010 were as follows:

Issuer	Receive Fixed Rate	Counterparty	Expiration	Average Credit Rating1		Notional Amount (000)2		Unrealized Appreciation
Dow Jones	5.00%	Credit Suisse	June 2015		B	$	4,100	$	27,442
CDX North		International
America High
Yield Index
Series 14

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

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

• Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivatives, which are as follows:

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

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following tables summarize the inputs used as of August 31, 2010 in determining the fair valuation of the Trust’s investments and derivatives:

Valuation Inputs	Level 1		Level 2			Level 3		Total
Assets:
Investments in Securities:
Long-Term Investments:
Asset-Backed Securities		—	$	21,536,268		$	5,104,409	$	26,640,677
Common Stocks		—		47,836			11,492		59,328
Corporate Bonds		—		223,939,669			3,029,472		226,969,141
Foreign Agency Obligations		—		11,293,195			—		11,293,195
Non-Agency Mortgage-Backed Securities		—		59,125,607			2,310,902		61,436,509
Other Interests		—		—			381		381
Preferred Securities		—		4,719,448			56,838		4,776,286
Taxable Municipal Bonds		—		13,521,466			—		13,521,466
U.S. Government Sponsored Agency Securities		—		136,688,014			—		136,688,014
U.S. Treasury Obligations		—		109,712,457			—		109,712,457
Short-Term Securities:
Money Market Fund	$	506,274		—			—		506,274
Borrowed Bond Agreements		—		299,425			—		299,425
Liabilities:
Borrowed Bonds		—		(298,780	)		—		(298,780	)
TBA Sale Commitments		—		(75,423,223	)		—		(75,423,223	)
TALF Loans		—		(11,763,225	)		—		(11,763,225	)
Total	$	506,274	$	493,398,157		$	10,513,494	$	504,417,925

See Notes to Financial Statements.
	ANNUAL REPORT	AUGUST 31, 2010	23

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

	Derivative Financial Instruments1
Valuation Inputs	Level 1			Level 2			Level 3		Total
Assets:
Credit contracts		—		$	31,719			—	$	31,719
Foreign currency exchange contracts		—			227,544			—		227,544
Interest rate contracts	$	736,244			8,681,423			—		9,417,667
Other contracts		—			617,527			—		617,527
Liabilities:
Credit contracts		—			(103,397	)		—		(103,397	)
Foreign currency exchange contracts		—			(287,611	)		—		(287,611	)
Interest rate contracts		(433,143	)		(13,909,954	)		—		(14,343,097	)
Total	$	303,101		$	(4,742,749	)		—	$	(4,439,648	)

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

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

	Asset-Backed Securities			Common Stocks		Corporate Bonds			Non-Agency Mortgage-Backed Securities			Other Interests		Preferred Securities		U.S. Government Sponsored Agency Securities			Total
Assets:
Balance, as of August 31, 2009	$	1,198,713			—	$	1,488,845		$	1,612,444		$	381		—	$	2,690,595		$	6,990,978
Accrued discounts/premiums		(91,357	)		—		9,357			2,177			—		—		(450,172	)		(529,995	)
Net realized gain (loss)		—			—		(202,155	)		30,370			—		—		1,504,160			1,332,375
Net change in unrealized appreciation/ depreciation2		(85,187	)		—		1,252,664			31,758			—		—		(1,012,830	)		186,405
Purchases		—			—		(2,081,954	)		—			—		—		—			(2,081,954	)
Sales		—			—		228,293			(105,847	)		—		—		(2,731,753	)		(2,609,307	)
Transfers in3		4,082,240		$	11,492		3,028,432			1,615,000			—	$	56,838		—			8,794,002
Transfers out3		—			—		(694,010	)		(875,000	)		—		—		—			(1,569,010	)
Balance, as of August 31, 2010	$	5,104,409		$	11,492	$	3,029,472		$	2,310,902		$	381	$	56,838		—		$	10,513,494

² Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations. The net change in unrealized appreciation/depreciation on securities still held at August 31, 2010 was $(56,998).

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

	Interest Rate Contracts
Liabilities:
Balance, as of August 31, 2009	$	(226,565	)
Accrued discounts/premiums		—
Net realized gain (loss)		(251,534	)
Net change in unrealized appreciation/depreciation		226,565
Purchases		251,534
Sales		—
Transfers in3		—
Transfers out3		—
Balance, as of August 31, 2010		—

³ The Trust’s policy is to recognize transfers in and transfers out as of the end of the period of the event or the change in circumstances that caused the transfer.

See Notes to Financial Statements.

24 ANNUAL REPORT AUGUST 31, 2010

Schedule of Investments August 31, 2010	BlackRock Corporate High Yield Fund V, Inc. (HYV)
	(Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Building Products — 0.2%
Masonite Worldwide Holdings (a)		16,727	$	635,626
Capital Markets — 0.1%
E*Trade Financial Corp. (a)		43,000		533,630
Chemicals — 0.2%
LyondellBasell Industries NV (a):
Class A		9,178		188,149
Class B		27,540		564,294
Wellman Holdings, Inc. (a)		2,499		125
				752,568
Commercial Services & Supplies — 0.1%
Air Lease Corp. (a)(b)		19,100		382,000
Communications Equipment — 0.5%
Loral Space & Communications Ltd. (a)		37,836		2,025,739
Construction Materials — 0.0%
Nortek, Inc. (a)		3,280		136,120
Electrical Equipment — 0.0%
Medis Technologies Ltd. (a)		109,685		3,400
Hotels, Restaurants & Leisure — 0.0%
Buffets Restaurants Holdings, Inc. (a)		1,854		7,787
Household Durables — 0.1%
Beazer Homes USA, Inc. (a)		154,708		535,290
Machinery — 0.2%
Accuride Corp. (a)		134,380		147,818
Navistar International Corp. (a)		14,100		590,508
				738,326
Media — 0.4%
Charter Communications, Inc. (a)		24,408		829,872
Gannett Co., Inc.		59,600		720,564
				1,550,436
Paper & Forest Products — 0.3%
Ainsworth Lumber Co. Ltd. (a)		181,600		425,751
Ainsworth Lumber Co. Ltd. (a)(b)		208,741		489,382
Western Forest Products, Inc. (a)		74,889		20,718
Western Forest Products, Inc. (a)(b)		74,936		20,731
				956,582
Semiconductors & Semiconductor Equipment — 0.0%
SunPower Corp., Class B (a)		573		5,925
Software — 0.3%
HMH Holdings/EduMedia (a)		134,843		674,214
TiVo, Inc. (a)		42,800		336,408
				1,010,622
Wireless Telecommunication Services — 0.1%
FiberTower Corp. (a)		127,570		457,976
Total Common Stocks — 2.5%				9,732,027
Corporate Bonds	Par (000)
Aerospace & Defense — 0.4%
Bombardier, Inc., 7.75%, 3/15/20 (b)	USD	280		301,000
DynCorp International, Inc., 10.38%, 7/01/17 (b)		410		407,950
Kratos Defense & Security Solutions, Inc., 10.00%, 6/01/17		800		826,000
				1,534,950

Corporate Bonds	Par (000)		Value
Air Freight & Logistics — 0.6%
National Air Cargo Group, Inc.:
Series 1, 12.38%, 8/16/15	USD	1,120	$	1,120,000
Series 2, 12.38%, 8/16/15		1,120		1,120,000
				2,240,000
Airlines — 2.6%
Air Canada (b):
9.25%, 8/01/15		1,570		1,538,600
12.00%, 2/01/16		420		392,700
American Airlines, Inc., 10.50%, 10/15/12 (b)		1,400		1,487,500
American Airlines Pass-Through Trust, Series 2001-02, 7.86%, 4/01/13		490		512,785
Continental Airlines, Inc.:
6.75%, 9/15/15 (b)		900		891,000
Series 1997-4-B, 6.90%, 7/02/18		93		90,862
Series 2001-1-C, 7.03%, 12/15/12		339		337,427
Delta Air Lines, Inc., Series B, 9.75%, 12/17/16		1,425		1,496,626
United Air Lines, Inc., 12.75%, 7/15/12		2,865		3,193,993
				9,941,493
Auto Components — 1.6%
Allison Transmission, Inc. (b):
11.00%, 11/01/15		350		376,250
11.25%, 11/01/15 (c)		272		292,400
Delphi International Holdings Unsecured, 12.00%, 10/06/14		134		131,770
The Goodyear Tire & Rubber Co.:
8.25%, 8/15/20		650		665,437
8.75%, 8/15/20		490		518,175
Icahn Enterprises LP, 8.00%, 1/15/18		3,980		3,960,100
				5,944,132
Beverages — 0.2%
Cott Beverages USA, Inc., 8.13%, 9/01/18 (b)		394		405,328
Crown European Holdings SA, 7.13%, 8/15/18 (b)	EUR	365		474,110
				879,438
Biotechnology — 0.2%
QHP Pharma, 10.25%, 3/15/15 (b)	USD	874		890,874
Building Products — 1.5%
Associated Materials LLC, 9.88%, 11/15/16		1,140		1,208,400
Building Materials Corp. of America (b):
6.88%, 8/15/18		785		763,412
7.00%, 2/15/20		930		925,350
Momentive Performance Materials, Inc., Series WI, 9.75%, 12/01/14		1,075		1,049,469
Ply Gem Industries, Inc., 11.75%, 6/15/13		1,765		1,817,950
				5,764,581
Capital Markets — 0.6%
E*Trade Financial Corp., 4.46%, 8/31/19 (d)(e)		356		427,200
MU Finance Plc, 8.75%, 2/01/17 (b)	GBP	626		921,661
Offshore Group Investments Ltd., 11.50%, 8/01/15 (b)	USD	770		768,075
				2,116,936
Chemicals — 3.5%
American Pacific Corp., 9.00%, 2/01/15		1,300		1,285,375
CF Industries, Inc.:
6.88%, 5/01/18		655		689,388
7.13%, 5/01/20		1,150		1,233,375
Chemtura Corp., 7.88%, 9/01/18 (b)		785		801,681
Georgia Gulf Corp., 9.00%, 1/15/17 (b)		245		253,881
Hexion U.S. Finance Corp.:
9.75%, 11/15/14		1,175		1,154,437
8.88%, 2/01/18		1,135		1,049,875

See Notes to Financial Statements.
	ANNUAL REPORT	AUGUST 31, 2010	25

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

Corporate Bonds	Par (000)		Value
Chemicals (concluded)
Huntsman International LLC (b):
6.88%, 11/15/13	EUR	415	$	518,020
8.63%, 3/15/20	USD	350		346,938
Ineos Finance Plc, 9.00%, 5/15/15 (b)		625		632,031
Innophos, Inc., 8.88%, 8/15/14		1,185		1,214,625
MacDermid, Inc., 9.50%, 4/15/17 (b)		1,845		1,870,369
OXEA Finance/Cy SCA, 9.50%, 7/15/17 (b)		825		870,375
Wellman Holdings, Inc., Subordinate Note (d):
(Second Lien), 10.00%, 1/29/19		1,385		1,204,950
(Third Lien), 5.00%, 1/29/19 (c)		454		177,197
				13,302,517
Commercial Banks — 3.1%
CIT Group, Inc.:
7.00%, 5/01/16		4,638		4,405,919
7.00%, 5/01/17		7,594		7,140,665
Glitnir Banki HF (a)(f):
4.15%, 4/20/10 (b)		165		47,025
6.38%, 9/25/12 (b)		1,005		286,425
Series EMTN, 5.07%, 1/27/10	EUR	50		17,742
Series EMTN, 3.00%, 6/30/10		65		23,064
Series GMTN, 4.38%, 2/05/10		75		26,612
				11,947,452
Commercial Services & Supplies — 1.0%
ACCO Brands Corp., 10.63%, 3/15/15	USD	365		401,500
RSC Equipment Rental, Inc., 10.00%, 7/15/17 (b)		870		948,300
Scientific Games International, Inc., 9.25%, 6/15/19		345		365,700
West Corp., 11.00%, 10/15/16		1,920		2,016,000
				3,731,500
Construction Materials — 1.0%
Nortek, Inc., 11.00%, 12/01/13		3,655		3,851,011
Consumer Finance — 1.0%
Credit Acceptance Corp., 9.13%, 2/01/17 (b)		1,010		1,046,613
Ford Motor Credit Co. LLC:
3.28%, 1/13/12 (g)		310		303,800
7.80%, 6/01/12		300		315,703
8.00%, 12/15/16		270		293,202
6.63%, 8/15/17		1,710		1,737,996
				3,697,314
Containers & Packaging — 3.1%
Ball Corp., 6.75%, 9/15/20		750		789,375
Berry Plastics Corp.:
8.88%, 9/15/14		1,205		1,147,762
8.25%, 11/15/15		205		205,513
9.50%, 5/15/18 (b)		640		588,800
Berry Plastics Holding Corp., 8.88%, 9/15/14		3,655		3,481,387
Graphic Packaging International, Inc., 9.50%, 6/15/17		1,180		1,256,700
Impress Holdings BV, 3.65%, 9/15/13 (b)(g)		545		515,025
Owens-Brockway Glass Container, Inc., 6.75%, 12/01/14	EUR	233		298,222
Pregis Corp., 12.38%, 10/15/13	USD	1,765		1,765,000
Smurfit Kappa Acquisitions (b):
7.25%, 11/15/17	EUR	735		950,058
7.75%, 11/15/19		700		909,252
				11,907,094
Diversified Consumer Services — 1.2%
Service Corp. International, 7.00%, 6/15/17	USD	4,425		4,579,875

Corporate Bonds	Par (000)		Value
Diversified Financial Services — 6.7%
Ally Financial Inc. (b):
8.30%, 2/12/15	USD	3,440	$	3,577,600
7.50%, 9/15/20		2,830		2,801,700
Axcan Intermediate Holdings, Inc., 12.75%, 3/01/16		1,485		1,486,856
FCE Bank Plc:
7.88%, 2/15/11	GBP	1,000		1,552,819
7.13%, 1/16/12	EUR	2,950		3,869,232
7.13%, 1/15/13		1,300		1,705,085
GMAC, Inc.:
7.50%, 12/31/13	USD	460		469,775
2.74%, 12/01/14 (g)		592		508,958
8.00%, 3/15/20 (b)		3,620		3,710,500
Leucadia National Corp., 8.13%, 9/15/15		1,780		1,895,700
Reynolds Group DL Escrow, Inc., 7.75%, 10/15/16 (b)		2,185		2,201,388
Reynolds Group Issuer, Inc. (b):
7.75%, 10/15/16	EUR	550		707,436
8.50%, 5/15/18	USD	1,150		1,104,000
				25,591,049
Diversified Telecommunication Services — 4.4%
Broadview Networks Holdings, Inc., 11.38%, 9/01/12		1,530		1,499,400
Frontier Communications Corp.:
7.88%, 4/15/15		870		917,850
8.25%, 4/15/17		1,100		1,163,250
8.50%, 4/15/20		500		530,625
GCI, Inc., 8.63%, 11/15/19		1,700		1,785,000
ITC Deltacom, Inc., 10.50%, 4/01/16		800		788,000
Nordic Telephone Co. Holdings ApS, 8.88%, 5/01/16 (b)		320		336,000
Qwest Communications International, Inc.:
7.50%, 2/15/14		2,990		3,046,062
8.00%, 10/01/15 (b)		800		860,000
Series B, 7.50%, 2/15/14		2,285		2,327,844
Qwest Corp.:
7.63%, 6/15/15		850		954,125
8.38%, 5/01/16		990		1,153,350
Windstream Corp.:
8.13%, 8/01/13		510		543,788
7.88%, 11/01/17		1,090		1,106,350
				17,011,644
Energy Equipment & Services — 1.9%
Compagnie Généralé de Géophysique-Veritas:
7.50%, 5/15/15		1,935		1,915,650
7.75%, 5/15/17		470		466,475
Expro Finance Luxembourg SCA, 8.50%, 12/15/16 (b)		2,730		2,552,550
Global Geophysical Services, Inc., 10.50%, 5/01/17 (b)		460		455,400
North American Energy Alliance LLC, 10.88%, 6/01/16 (b)		985		1,063,800
Thermon Industries, Inc., 9.50%, 5/01/17 (b)		810		830,250
				7,284,125
Food & Staples Retailing — 0.9%
AmeriQual Group LLC, 9.50%, 4/01/12 (b)		1,225		1,200,500
Rite Aid Corp.:
9.75%, 6/12/16		615		653,438
10.25%, 10/15/19		925		950,437
8.00%, 8/15/20 (b)		780		775,125
				3,579,500

See Notes to Financial Statements.
26	ANNUAL REPORT	AUGUST 31, 2010

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

Corporate Bonds	Par (000)		Value
Food Products — 0.5%
B&G Foods, Inc., 7.63%, 1/15/18	USD	330	$	339,488
Reddy Ice Corp., 11.25%, 3/15/15 (b)		650		658,938
Smithfield Foods, Inc., 10.00%, 7/15/14 (b)		710		792,537
TreeHouse Foods, Inc., 7.75%, 3/01/18		230		243,225
				2,034,188
Health Care Equipment & Supplies — 1.3%
DJO Finance LLC, 10.88%, 11/15/14		3,630		3,888,637
Hologic, Inc., 2.00%, 12/15/37 (d)(h)		1,410		1,274,288
				5,162,925
Health Care Providers & Services — 4.9%
American Renal Holdings, 8.38%, 5/15/18 (b)		415		415,000
Gentiva Health Services, Inc., 11.50%, 9/01/18 (b)		1,050		1,086,750
HCA, Inc.:
9.13%, 11/15/14		2,605		2,735,250
8.50%, 4/15/19		1,505		1,649,856
7.25%, 9/15/20		3,430		3,584,350
inVentiv Health Inc., 10.00%, 8/15/18 (b)		970		948,175
Omnicare, Inc., 7.75%, 6/01/20		745		745,000
Tenet Healthcare Corp.:
9.00%, 5/01/15		1,952		2,078,880
10.00%, 5/01/18		662		744,750
8.88%, 7/01/19		4,400		4,757,500
				18,745,511
Health Care Technology — 1.1%
IMS Health, Inc., 12.50%, 3/01/18 (b)		3,550		4,113,562
Hotels, Restaurants & Leisure — 2.3%
Diamond Resorts Corp., 12.00%, 8/15/18 (b)		1,770		1,672,650
Enterprise Inns Plc, 6.50%, 12/06/18	GBP	625		791,123
Harrah’s Operating Co., Inc., 11.25%, 6/01/17	USD	970		1,037,900
Inn of the Mountain Gods Resort & Casino, 12.00%, 11/15/10 (a)(f)		2,450		1,071,875
Little Traverse Bay Bands of Odawa Indians, 10.25%, 2/15/14 (a)(b)(f)		1,855		626,062
MGM Mirage, 13.00%, 11/15/13		45		51,975
MGM Resorts International:
10.38%, 5/15/14		395		430,550
11.13%, 11/15/17		1,220		1,363,350
Marina District Finance Co., Inc., 9.88%, 8/15/18 (b)		540		538,650
Travelport LLC:
5.16%, 9/01/14 (g)		210		194,775
9.88%, 9/01/14		310		316,975
Tropicana Entertainment LLC, Series WI, 9.63%, 12/15/14 (a)(f)		475		347
Virgin River Casino Corp., 9.00%, 1/15/12 (a)(f)		1,435		645,750
				8,741,982
Household Durables — 3.5%
Beazer Homes USA, Inc.:
6.88%, 7/15/15		270		233,550
8.13%, 6/15/16		470		411,250
12.00%, 10/15/17		1,960		2,207,450
9.13%, 6/15/18		2,615		2,314,275
DFS Furniture Holdings Plc, 9.75%, 7/15/17 (b)	GBP	310		445,717
K. Hovnanian Enterprises, Inc., 10.63%, 10/15/16	USD	2,560		2,483,200
Ryland Group Inc., 6.63%, 5/01/20		1,000		937,500
Standard Pacific Corp.:
9.25%, 4/15/12		200		205,250
6.25%, 4/01/14		535		498,888
7.00%, 8/15/15		395		363,400
10.75%, 9/15/16		2,210		2,326,025
8.38%, 5/15/18		825		794,062
				13,220,567

Corporate Bonds	Par (000)		Value
Independent Power Producers & Energy Traders — 2.7%
The AES Corp., 8.75%, 5/15/13 (b)	USD	509	$	517,271
Calpine Construction Finance Co. LP, 8.00%, 6/01/16 (b)		1,875		1,968,750
Energy Future Holdings Corp., 10.00%, 1/15/20 (b)		4,955		4,771,680
Energy Future Intermediate Holding Co. LLC, 10.00%, 12/01/20		253		243,128
NRG Energy, Inc.:
7.25%, 2/01/14		1,790		1,825,800
7.38%, 2/01/16		375		377,813
7.38%, 1/15/17		560		564,200
				10,268,642
Industrial Conglomerates — 2.5%
Sequa Corp. (b):
11.75%, 12/01/15		3,550		3,656,500
13.50%, 12/01/15 (c)		5,797		6,028,648
				9,685,148
Insurance — 0.9%
Alliant Holdings I, Inc., 11.00%, 5/01/15 (b)		2,500		2,565,625
USI Holdings Corp., 4.25%, 11/15/14 (b)(g)		1,000		847,500
				3,413,125
Leisure Equipment & Products — 0.3%
Brunswick Corp., 11.25%, 11/01/16 (b)		890		1,016,825
Life Sciences Tools & Services — 0.2%
Patheon, Inc., 8.63%, 4/15/17 (b)		865		861,756
Machinery — 1.7%
AGY Holding Corp., 11.00%, 11/15/14		1,640		1,394,000
Accuride Corp., 7.50%, 2/26/20 (c)(d)		14		36,370
Navistar International Corp.:
3.00%, 10/15/14 (d)		2,830		3,088,238
8.25%, 11/01/21		1,400		1,466,500
Oshkosh Corp., 8.25%, 3/01/17		210		221,025
Titan International, Inc., 5.63%, 1/15/17 (b)(d)		360		428,400
				6,634,533
Marine — 0.7%
Horizon Lines, Inc., 4.25%, 8/15/12 (d)		3,130		2,629,200
Media — 12.3%
Affinion Group, Inc.:
10.13%, 10/15/13		3,620		3,710,500
10.13%, 10/15/13		1,130		1,155,425
CCH II LLC, 13.50%, 11/30/16		539		638,753
CCO Holdings LLC (b):
7.88%, 4/30/18		700		724,500
8.13%, 4/30/20		700		736,750
CMP Susquehanna Corp., 3.64%, 5/15/14 (b)(g)		236		4,720
CSC Holdings, Inc., 8.50%, 4/15/14		580		633,650
Catalina Marketing Corp., 10.50%, 10/01/15 (b)(c)		885		946,950
Clear Channel Worldwide Holdings, Inc.:
9.25%, 12/15/17		1,236		1,282,350
Series B, 9.25%, 12/15/17		6,280		6,586,150
Cox Enterprises, Inc.:
Loan Close 2, 4.00%, 8/15/18		968		968,426
Loan Close 3, 12.00%, 8/15/18		1,120		1,120,000
Shares Loan, 4.00%, 8/15/18		1,142		1,141,901
DISH DBS Corp., 7.00%, 10/01/13		140		145,775
Gray Television, Inc., 10.50%, 6/29/15		680		654,500
Harland Clarke Holdings Corp.:
6.00%, 5/15/15 (g)		510		428,400
9.50%, 5/15/15		620		590,550
Intelsat Corp., 9.25%, 6/15/16		2,900		3,074,000
Interactive Data Corp., 10.25%, 8/01/18 (b)		1,525		1,582,187
Liberty Global, Inc., 4.50%, 11/15/16 (b)(d)		700		857,500
Liberty Media Corp., 3.13%, 3/30/23 (d)		1,616		1,757,400

See Notes to Financial Statements.
	ANNUAL REPORT	AUGUST 31, 2010	27

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

Corporate Bonds	Par (000)		Value
Media (concluded)
Lighthouse International Co. SA:
8.00%, 4/30/14	EUR	797	$	595,899
8.00%, 4/30/14 (b)		105		78,506
Live Nation Entertainment, Inc., 8.13%, 5/15/18 (b)	USD	965		931,225
McClatchy Co., 11.50%, 2/15/17 (b)		2,080		2,147,600
Nielsen Finance LLC:
11.63%, 2/01/14		140		156,975
10.00%, 8/01/14		3,340		3,507,000
Rainbow National Services LLC (b):
8.75%, 9/01/12		650		650,813
10.38%, 9/01/14		2,432		2,523,200
Regal Entertainment Group, 9.13%, 8/15/18		495		507,375
Seat Pagine Gialle SpA, 10.50%, 1/31/17 (b)	EUR	214		252,208
TL Acquisitions, Inc., 10.50%, 1/15/15 (b)	USD	2,030		1,938,650
UPC Holding BV, 9.88%, 4/15/18 (b)		800		833,000
Unitymedia GmbH:
9.63%, 12/01/19	EUR	235		311,950
9.63%, 12/01/19 (b)		845		1,121,691
Unitymedia Hessen GmbH & Co. KG (b):
8.13%, 12/01/17	USD	1,035		1,063,463
8.13%, 12/01/17	EUR	662		855,698
Ziggo Bond Co. BV, 8.00%, 5/15/18 (b)		583		749,889
				46,965,529
Metals & Mining — 4.0%
AK Steel Corp., 7.63%, 5/15/20	USD	30		30,225
Aleris International, Inc. (a)(f):
9.00%, 12/15/14 (c)		1,495		2,990
10.00%, 12/15/16		1,300		494
Drummond Co., Inc.:
9.00%, 10/15/14 (b)		1,175		1,229,344
7.38%, 2/15/16		335		335,419
FMG Finance Property Ltd. (b):
10.00%, 9/01/13		790		869,987
10.63%, 9/01/16		1,740		2,016,225
Foundation PA Coal Co., 7.25%, 8/01/14		2,925		2,932,312
Goldcorp, Inc., 2.00%, 8/01/14 (d)		980		1,191,925
McJunkin Red Man Corp., 9.50%, 12/15/16 (b)		915		807,487
Murray Energy Corp., 10.25%, 10/15/15 (b)		775		792,437
New World Resources NV:
7.38%, 5/15/15	EUR	415		515,391
7.88%, 5/01/18 (b)		310		396,776
7.88%, 5/01/18		265		339,180
Novelis, Inc., 11.50%, 2/15/15	USD	640		704,000
Ryerson, Inc.:
7.84%, 11/01/14 (g)		600		556,500
12.00%, 11/01/15		400		411,500
Steel Dynamics, Inc., 7.38%, 11/01/12		390		414,375
United States Steel Corp., 7.38%, 4/01/20		775		784,688
Vedanta Resources Plc, 9.50%, 7/18/18 (b)		950		997,500
				15,328,755
Multiline Retail — 2.5%
Dollar General Corp.:
10.63%, 7/15/15		2,074		2,276,215
11.88%, 7/15/17 (c)		6,421		7,384,150
				9,660,365
Oil, Gas & Consumable Fuels — 8.2%
Arch Coal, Inc.:
8.75%, 8/01/16		90		97,425
7.25%, 10/01/20		1,270		1,289,050
Atlas Energy Operating Co. LLC:
12.13%, 8/01/17		680		781,150
10.75%, 2/01/18		380		418,950
Berry Petroleum Co., 8.25%, 11/01/16		750		757,500
Corporate Bonds	Par (000)		Value
Oil, Gas & Consumable Fuels (concluded)
Bill Barrett Corp., 9.88%, 7/15/16	USD	70	$	75,950
Chesapeake Energy Corp.:
6.63%, 8/15/20		3,490		3,503,087
2.25%, 12/15/38 (d)		1,200		898,500
Coffeyville Resources LLC, 9.00%, 4/01/15 (b)		435		446,963
Connacher Oil and Gas Ltd. (b):
11.75%, 7/15/14		260		282,100
10.25%, 12/15/15		1,695		1,695,000
Consol Energy, Inc., 8.25%, 4/01/20 (b)		2,935		3,114,769
Crosstex Energy LP, 8.88%, 2/15/18		600		619,500
Denbury Resources, Inc., 8.25%, 2/15/20		1,025		1,094,187
Linn Energy LLC, 8.63%, 4/15/20 (b)		1,630		1,719,650
Massey Energy Co., 6.88%, 12/15/13		1,400		1,417,500
Niska Gas Storage US LLC, 8.88%, 3/15/18 (b)		2,775		2,920,687
OPTI Canada, Inc. (b):
9.00%, 12/15/12		2,560		2,566,400
9.75%, 8/15/13		1,425		1,407,187
Patriot Coal Corp., 8.25%, 4/30/18		620		615,350
Peabody Energy Corp., 6.50%, 9/15/20		1,500		1,576,875
Petrohawk Energy Corp.:
10.50%, 8/01/14		835		933,113
7.88%, 6/01/15		695		721,063
QEP Resources, Inc., 6.88%, 3/01/21		620		646,350
Range Resources Corp., 8.00%, 5/15/19		600		642,000
Teekay Corp., 8.50%, 1/15/20		970		1,035,475
				31,275,781
Paper & Forest Products — 2.9%
Ainsworth Lumber Co. Ltd., 11.00%, 7/29/15 (b)(c)		1,686		1,441,521
Boise Paper Holdings LLC:
9.00%, 11/01/17		495		520,988
8.00%, 4/01/20		240		244,200
Clearwater Paper Corp., 10.63%, 6/15/16		585		658,125
Georgia-Pacific LLC, 8.25%, 5/01/16 (b)		2,395		2,622,525
Glatfelter, 7.13%, 5/01/16 (b)		310		311,938
NewPage Corp., 11.38%, 12/31/14		4,725		3,839,062
Verso Paper Holdings LLC, 11.50%, 7/01/14		1,265		1,334,575
				10,972,934
Pharmaceuticals — 0.6%
Angiotech Pharmaceuticals, Inc., 4.29%, 12/01/13 (g)		1,605		1,296,037
Elan Finance Plc, 8.88%, 12/01/13		140		141,050
Novasep Holding SAS, 9.63%, 12/15/16 (b)	EUR	936		996,363
				2,433,450
Real Estate Management & Development — 0.5%
Forest City Enterprises, Inc., 7.63%, 6/01/15	USD	2,300		2,098,750
Road & Rail — 0.9%
Avis Budget Car Rental LLC, 9.63%, 3/15/18		760		794,200
Hertz Holdings Netherlands BV, 8.50%, 7/31/15 (b)	EUR	1,060		1,397,017
Syncreon Global Ireland Ltd., 9.50%, 5/01/18 (b)	USD	1,210		1,182,775
				3,373,992
Semiconductors & Semiconductor Equipment — 0.2%
Advanced Micro Devices, Inc.:
6.00%, 5/01/15 (d)		210		205,538
7.75%, 8/01/20 (b)		425		420,750
				626,288
Software — 0.0%
BMS Holdings, Inc., 8.59%, 2/15/12 (b)(c)(g)		701		14,028

See Notes to Financial Statements.
28	ANNUAL REPORT	AUGUST 31, 2010

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

Corporate Bonds	Par (000)		Value
Specialty Retail — 1.6%
Group 1 Automotive, Inc., 2.25%, 6/15/36 (d)(h)	USD	1,570	$	1,195,162
Hillman Group, Inc., 10.88%, 6/01/18 (b)		790		831,475
Limited Brands, Inc., 8.50%, 6/15/19		1,170		1,322,100
Sonic Automotive, Inc., 9.00%, 3/15/18		550		559,625
Toys ‘R’ Us-Delaware, Inc., 7.38%, 9/01/16 (b)		630		636,300
United Auto Group, Inc., 7.75%, 12/15/16		1,550		1,480,250
				6,024,912
Textiles, Apparel & Luxury Goods — 0.2%
Quiksilver, Inc., 6.88%, 4/15/15		780		721,500
Tobacco — 0.1%
Vector Group Ltd., 11.00%, 8/15/15		485		494,094
Wireless Telecommunication Services — 5.1%
Cricket Communications, Inc.:
10.00%, 7/15/15		2,800		2,933,000
7.75%, 5/15/16		1,140		1,177,050
Digicel Group Ltd. (b):
8.88%, 1/15/15		1,030		1,037,725
9.13%, 1/15/15 (c)		2,787		2,800,935
8.25%, 9/01/17		1,190		1,236,112
10.50%, 4/15/18		800		858,000
FiberTower Corp., 9.00%, 1/01/16 (c)		488		415,114
iPCS, Inc., 2.59%, 5/01/13 (g)		1,200		1,122,000
MetroPCS Wireless, Inc., 9.25%, 11/01/14		3,445		3,582,800
Nextel Communications, Inc.:
Series E, 6.88%, 10/31/13		1,770		1,765,575
Series F, 5.95%, 3/15/14		160		154,600
Orascom Telecom Finance SCA, 7.88%, 2/08/14 (b)		365		346,750
Sprint Capital Corp., 6.88%, 11/15/28		2,690		2,246,150
				19,675,811
Total Corporate Bonds — 97.2%				371,989,638
Floating Rate Loan Interests (g)
Auto Components — 1.0%
Affinion Group Holdings, Inc., Loan, 8.51%, 3/01/12 (c)		740		710,106
Allison Transmission, Inc., Term Loan, 3.04%, 8/07/14		3,340		3,077,691
				3,787,797
Automobiles — 1.3%
Ford Motor Co., Tranche B-1 Term Loan, 3.03%, 12/15/13		5,322		5,118,961
Building Products — 1.2%
CPG International I, Inc., Term Loan, 5.54%, 4/30/12		4,508		4,507,538
Capital Markets — 0.1%
Marsico Parent Co., LLC, Term Loan, 5.31% – 5.56%, 12/15/14		759		526,462
Chemicals — 0.7%
PQ Corp., Term Loan (First Lien), 3.52% – 3.73%, 7/30/14		451		412,702
Tronox Worldwide LLC:
Tranche B-1 Term Loan, 11.25%, 9/20/10		1,813		1,827,672
Tranche B-2 Term Loan, 11.25%, 9/20/10		487		491,016
				2,731,390
Commercial Services & Supplies — 0.9%
AWAS Finance Luxembourg Sarl, Term Loan B, 7.75%, 6/10/16		1,500		1,508,750
Delos Aircraft, Inc., Term Loan 2, 7.00%, 3/17/16		875		879,740
International Lease Finance Corp. (Delos Aircraft, Inc.), Term Loan 1, 6.75%, 3/17/15		1,175		1,184,302
				3,572,792
Floating Rate Loan Interests (g)	Par (000)		Value
Construction & Engineering — 0.8%
Safway Services, LLC, Last Out Term Loan, 15.63%, 12/14/17	USD	3,000	$	3,000,000
Consumer Finance — 1.6%
AGFS Funding Co., Term Loan, 7.25%, 4/21/15		6,000		5,928,750
DaimlerChrysler Financial Services Americas LLC, Term Loan (Second Lien), 6.78%, 8/05/13		365		363,704
				6,292,454
Diversified Telecommunication Services — 1.6%
Wind Finance SL SA, Euro Facility (Second Lien), 7.89%, 12/17/14	EUR	4,908		6,206,401
Electric Utilities — 0.5%
New Development Holdings LLC, Term Loan, 7.00%, 7/03/17	USD	1,800		1,818,000
Health Care Providers & Services — 0.8%
Harden Healthcare Term Loan A:
Add-on Term Loan, 7.75%, 3/02/15		800		784,000
Tranche A Term Loan, 8.50%, 3/02/15		694		679,764
inVentiv Health, Inc. (FKA Ventive Health, Inc.), Term Loan B, 6.50%, 7/31/16		1,400		1,397,375
				2,861,139
Hotels, Restaurants & Leisure — 1.2%
Travelport LLC (FKA Travelport, Inc.), Loan, 8.37%, 3/27/12 (c)		4,957		4,610,349
IT Services — 0.4%
First Data Corp.:
First Lien Term Loan, 3.01%, 9/24/14		255		217,781
Initial Tranche B-2 Term Loan, 3.01%, 9/24/14		610		520,147
Initial Tranche B-3 Term Loan, 3.01%, 9/24/14		1,122		956,855
				1,694,783
Independent Power Producers & Energy Traders — 1.0%
Texas Competitive Electric Holdings Co., LLC (TXU):
Initial Tranche B-1 Term Loan, 3.79% – 4.03%, 10/10/14		323		244,363
Initial Tranche B-2 Term Loan, 3.79% – 4.07%, 10/10/14		314		237,992
Initial Tranche B-3 Term Loan, 3.79% – 4.03%, 10/10/14		4,254		3,206,737
				3,689,092
Media — 1.6%
Cengage Learning Acquisitions, Inc. (Thomson Learning), Tranche 1 Incremental Term Loan, 7.50%, 7/03/14		2,450		2,441,834
HMH Publishing Co., Ltd. (FKA Education Media), Tranche A Term Loan, 5.80%, 6/12/14 (c)		1,392		1,267,830
Newsday, LLC, Fixed Rate Term Loan, 10.50%, 8/01/13		2,150		2,281,687
				5,991,351
Multiline Retail — 0.5%
Hema Holding BV, Mezzanine, 4.15% – 9.15%, 1/29/17	EUR	1,304		1,520,052
The Neiman Marcus Group, Inc., Term Loan, 2.29% – 2.54%, 4/06/13	USD	362		342,736
				1,862,788
Oil, Gas & Consumable Fuels — 0.7%
Turbo Beta Ltd., Dollar Facility, 2.50% – 14.50%, 3/15/18 (c)		3,482		2,759,849

See Notes to Financial Statements.
	ANNUAL REPORT	AUGUST 31, 2010	29

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

Floating Rate Loan Interests (g)	Par (000)		Value
Paper & Forest Products — 0.3%
Verso Paper Finance Holdings LLC, Loan, 6.70% – 7.44%, 2/01/13 (c)	USD	1,954	$	1,172,201
Real Estate Management & Development — 0.6%
Realogy Corp.:
Initial Term Loan B, 3.30%, 10/10/13		589		508,539
Synthetic Letter of Credit, 0.11% – 3.15%, 10/10/13		119		102,536
Second Lien Term Facility, 13.50%, 10/15/17		1,500		1,582,500
				2,193,575
Specialty Retail — 0.2%
Claire’s Stores, Inc., Term Loan B, 3.05%, 5/29/14		216		184,874
Michaels Stores, Inc., Term Loan B-1, 2.63% – 2.81%, 10/31/13		525		494,961
				679,835
Wireless Telecommunication Services — 0.7%
Vodafone Group Plc, Revolving Credit, 6.88%, 7/30/15		2,750		2,750,000
Total Floating Rate Loan Interests — 17.7%				67,826,757
Other Interests (i)	Beneficial Interest (000)
Auto Components — 2.1%
Delphi Debtor-in-Possession Holding Co. LLP		1		7,840,033
Lear Corp. Escrow		790		9,875
				7,849,908
Media — 0.0%
Adelphia Escrow		1,250		125
Adelphia Recovery Trust		1,568		6,270
				6,395
Specialty Retail — 0.0%
Buffets, Inc.		970		97
Total Other Interests — 2.1%				7,856,400
Preferred Securities
Preferred Stocks	Shares
Auto Components — 0.1%
Dana Holding Corp., 4.00% (b)(d)		3,300		315,150
Diversified Financial Services — 1.5%
Ally Financial Inc., 7.00% (b)		4,593		3,793,962
Citigroup, Inc., 7.50% (d)		16,800		1,922,760
				5,716,722
Household Durables — 0.1%
Beazer Homes USA, Inc., 7.50% (d)		17,226		341,247
Media — 0.2%
CMP Susquehanna Radio Holdings Corp., 0.00% (a)(b)(g)		55,038		1
TRA Global, Inc., 0.00% (a)		420,689		679,707
				679,708
Real Estate Investment Trusts (REITs) — 0.0%
MPG Office Trust, Inc., Series A, 7.63% (a)		13,326		143,788
Preferred Stocks	Shares		Value
Thrifts & Mortgage Finance — 0.0%
Fannie Mae, Series O, 0.00% (a)		40,000	$	16,400
Freddie Mac, Series Z, 8.38% (a)		108,377		35,764
				52,164
Total Preferred Securities — 1.9%				7,248,779
Warrants (j)
Containers & Packaging — 0.0%
MDP Acquisitions Plc (Expires 10/01/13)		1,100		49,437
Health Care Providers & Services — 0.0%
HealthSouth Corp. (Expires 1/16/14)		52,465		1
Hotels, Restaurants & Leisure — 0.0%
Buffets Restaurants Holdings, Inc. (Expires 4/29/14)		819		8
Media — 0.0%
CMP Susquehanna Radio Holdings Corp. (Expires 3/26/19) (b)		62,894		1
New Vision Holdings LLC (Expires 9/30/14)		4		40
New Vision Holdings LLC (Expires 9/30/14)		22		221
				262
Oil, Gas & Consumable Fuels — 0.0%
Turbo Cayman Ltd. (No Expiration)		2		—
Software — 0.0%
HMH Holdings/EduMedia (Expires 3/09/17)		20,878		—
Total Warrants — 0.0%				49,708
Total Long-Term Investments (Cost — $470,023,714) — 121.4%				464,703,309
Short-Term Securities
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.25% (k)(l)		2,725,924		2,725,924
Total Short-Term Securities (Cost — $2,725,924) — 0.7%				2,725,924
Total Investments Before Options Written (Cost — $472,749,638*) — 122.1%				467,429,233
Options Written	Notional Amount (000)
Over-the-Counter Call Swaptions — 0.0%
Bought credit default protection on Dow Jones CDX North America High Yield Index Series 14 Volume 1, Strike Price USD 100.00, Expires 9/15/10, Broker Credit Suisse International	USD	8,500	$	(4,726	)
Bought credit default protection on Dow Jones CDX North America High Yield Index Series 14 Volume 1, Strike Price USD 96.00, Expires 9/15/10, Broker Credit Suisse International		4,750		(53,305	)
				(58,031	)

See Notes to Financial Statements.
30	ANNUAL REPORT	AUGUST 31, 2010

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

Options Written	Notional Amount (000)		Value
Over-the-Counter Put Swaptions — 0.0%
Sold credit default protection on Dow Jones CDX North America High Yield Series 14 Volume 1, Strike Price USD 87.00, Expires 9/15/10, Broker Credit Suisse International	USD	4,750	$	(76	)
Total Options Written (Premiums Received — $166,000) — 0.0%				(58,107	)
Total Investments, Net of Options Written — 122.1%				467,371,126
Liabilities in Excess of Other Assets — (22.1)%				(84,767,879	)
Net Assets — 100.0%			$	382,603,247

* The cost and unrealized appreciation (depreciation) of investments as of August 31, 2010, as computed for federal income tax purposes, were as follows:

Aggregate cost	$	474,121,453
Gross unrealized appreciation	$	22,278,093
Gross unrealized depreciation		(28,970,313	)
Net unrealized depreciation	$	(6,692,220	)

(a)	Non-income producing security.
(b)	Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(c)	Represents a payment-in-kind security which may pay interest/dividends in additional face/shares.
(d)	Convertible security.
(e)	Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(f)	Issuer filed for bankruptcy and/or is in default of interest payments.
(g)	Variable rate security. Rate shown is as of report date.
(h)	Represents a step-down bond that pays an initial coupon rate for the first period and then a lower coupon rate for the following periods. Rate shown is as of report date.
(i)	Other interests represent beneficial interest in liquidation trusts and other reorganization entities and are non-income producing.
(j)	Warrants entitle the Trust to purchase a predetermined number of shares of common stock and are non-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date, if any.
(k)	Investments in companies considered to be an affiliate of the Trust during the year, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate	Shares Held at August 31, 2009		Net Activity		Shares Held at August 31, 2010		Income
BlackRock Liquidity Funds, TempFund, Institutional Class		2,197,091		528,833		2,725,924	$	2,564

(l)	Represents the current yield as of report date.
•	Financial futures contracts sold as of August 31,2010 were as follows:

Contracts	Issue	Exchange	Expiration Date	Notional Value		Unrealized Appreciation
42	S&P 500 Index	Chicago Mercantile	September 2010	$	11,182,653	$	175,503

• Credit default swaps on single-name issuers — buy protection outstanding as of August 31, 2010 were as follows:

Issuer	Pay Fixed Rate	Counterparty	Expiration	Notional Amount (000)		Unrealized Appreciation (Depreciation)
K. Hovnanian Enterprises, Inc.	5.00%	Goldman Sachs International	December 2011	$	755	$	44,896
K. Hovnanian Enterprises, Inc.	5.00%	Goldman Sachs Bank USA	December 2013	$	1,475		248,530
Louisiana- Pacific Corp.	5.00%	JPMorgan Chase Bank NA	March 2014	$	1,000		(212,629	)
Brunswick Corp.	5.00%	Goldman Sachs Bank USA	September 2014	$	300		(15,811	)
Total						$	64,986

• Credit default swaps on single-name issuers — sold protection outstanding as of August 31, 2010 were as follows:

Issuer	Receive Fixed Rate	Counterparty	Expiration	Credit Rating1		Notional Amount (000)2		Unrealized Appreciation (Depreciation)
Texas Competitive Electric Holdings Co. LLC	5.00%	Goldman Sachs International	September 2012	CCC	$	750	$	(67,509	)
Advanced Micro Devices, Inc.	5.00%	JPMorgan Chase Bank NA	March 2015	B+	$	700		(7,841	)
Realogy Corp.	5.00%	Credit Suisse International	March 2015	C	$	150		1,048
Realogy Corp.	5.00%	JPMorgan Chase Bank NA	March 2015	C	$	250		(19,875	)
Realogy Corp.	5.00%	JPMorgan Chase Bank NA	March 2015	C	$	325		(5,607	)
Realogy Corp.	5.00%	JPMorgan Chase Bank NA	March 2015	C	$	150		(295	)
Levi Strauss & Co.	5.00%	Goldman Sachs International	June 2015	B+	$	345		1,841
NOVA Chemicals Corp.	5.00%	Goldman Sachs International	June 2015	B+	$	550		(10,082	)
Levi Strauss & Co.	5.00%	Goldman Sachs International	September 2015	B+	$	870		—
Realogy Corp.	5.00%	JPMorgan Chase Bank NA	September 2015	C	$	200		(720	)
Total							$	(109,040	)

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

See Notes to Financial Statements.
	ANNUAL REPORT	AUGUST 31, 2010	31

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

• Foreign currency exchange contracts as of August 31,2010 were as follows:

Currency Purchased		Currency Sold		Counterparty	Settlement Date	Unrealized Appreciation (Depreciation)
EUR	892,800	USD	1,152,062	Citibank NA	9/15/10	$	(20,686	)
USD	26,384,513	EUR	20,832,000	Citibank NA	9/15/10		(14,281	)
USD	430,698	EUR	334,000	Deutsche Bank AG	9/15/10		7,445
EUR	258,700	USD	327,839	Royal Bank of Scotland Plc	9/15/10		(8	)
USD	3,150,737	GBP	2,064,000	Citibank NA	10/20/10		(13,613	)
USD	552,136	CAD	583,000	Deutsche Bank AG	10/20/10		5,850
USD	472,382	GBP	309,500	Deutsche Bank AG	10/20/10		(2,117	)
USD	342,197	GBP	222,000	Royal Bank of Scotland Plc	10/20/10		1,845
GBP	247,000	USD	385,308	UBS AG	10/20/10		(6,628	)
Total						$	(42,193	)

•	For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by Trust management. This definition may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.
•	Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivatives, which are as follows:
	•	Level 1 — price quotations in active markets/exchanges for identical assets and liabilities
	•	Level 2 — other observable inputs (including,but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
	•	Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments and derivatives)
	The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.
	The following tables summarize the inputs used as of August 31, 2010 in determining the fair valuation of the Trust’s investments and derivatives:

Valuation Inputs	Level 1		Level 2			Level 3			Total
Assets:
Investments in Securities:
Long-Term Investments:
Common Stocks	$	8,038,488	$	637,200		$	1,056,339		$	9,732,027
Corporate Bonds		—		364,974,062			7,015,576			371,989,638
Floating Rate Loan Interest		—		45,951,371			21,875,386			67,826,757
Other Interest		—		7,840,033			16,367			7,856,400
Preferred Securities		6,253,921		315,150			679,708			7,248,779
Warrants		—		—			49,708			49,708
Short-Term Securities		2,725,924		—			—			2,725,924
Liabilities:
Unfunded Loan Commitments		—		—			(70,023	)		(70,023	)
Total	$	17,018,333	$	419,717,816		$	30,623,061		$	467,359,210
Derivative Financial Instruments1
Valuation Inputs	Level 1		Level 2			Level 3			Total
Assets:
Credit contracts		—	$	296,315			—		$	296,315
Foreign currency exchange contracts		—		15,140			—			15,140
Equity contracts	$	175,503		—			—			175,503
Liabilities:
Credit contracts		—		(398,476	)		—			(398,476	)
Foreign currency exchange contracts		—		(57,333	)		—			(57,333	)
Total	$	175,503	$	(144,354	)		—		$	31,149

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

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

	Common Stocks			Corporate Bonds			Floating Rate Loan Interests			Other Interests		Preferred Securities		Warrants			Unfunded Loan Commitments			Total
Assets/Liabilities:
Balance, as of August 31, 2009	$	645		$	2,089,671		$	34,290,990		$	6,493	$	1	$	10			—		$	36,387,810
Accrued discounts/premiums		—			31,439			391,386			—		—		—			—			422,825
Net realized gain (loss)		—			345,244			(5,841,748	)		—		—		—			—			(5,496,504	)
Net change in unrealized appreciation/depreciation2		7,267			(349,248	)		16,647,031			—		—		(9	)	$	(70,023	)		16,235,018
Purchases		—			(730,239	)		(23,216,310	)		—		—		—			—			(23,946,549	)
Sales		—			—			(1,907,650	)		—		—		—			—			(1,907,650	)
Transfers in3		1,056,214			5,628,709			14,216,481			9,874		679,707		49,707			—			21,640,692
Transfers out3		(7,787	)		—			(12,704,794	)		—		—		—			—			(12,712,581	)
Balance, as of August 31, 2010	$	1,056,339		$	7,015,576		$	21,875,386		$	16,367	$	679,708	$	49,708		$	(70,023	)	$	30,623,061

2	Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations. The net change in the unrealized appreciation/depreciation on the securities still held on August 31, 2010 was $5,004,674.
3	The Trust’s policy is to recognize transfers in and transfers out as of the end of the period of the event or the change in circumstances that caused the transfer.

See Notes to Financial Statements.
32	ANNUAL REPORT	AUGUST 31, 2010

Schedule of Investments August 31, 2010	BlackRock Corporate High Yield Fund VI, Inc. (HYT)
	(Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Building Products — 0.2%
Masonite Worldwide Holdings (a)		19,572	$	743,736
Capital Markets — 0.1%
E*Trade Financial Corp. (a)		46,400		575,824
Chemicals — 0.0%
Wellman Holdings, Inc. (a)		2,616		131
Communications Equipment — 0.6%
Loral Space & Communications Ltd. (a)		44,428		2,378,675
Construction Materials — 0.0%
Nortek, Inc. (a)		3,445		142,968
Electrical Equipment — 0.0%
Medis Technologies Ltd. (a)		116,910		3,624
Hotels, Restaurants & Leisure — 0.0%
Buffets Restaurants Holdings, Inc. (a)		1,816		7,627
Household Durables — 0.1%
Beazer Homes USA, Inc. (a)		88,000		304,480
Machinery — 0.2%
Accuride Corp. (a)		141,777		155,955
Navistar International Corp. (a)		14,800		619,824
				775,779
Media — 0.4%
Charter Communications, Inc. (a)		25,576		869,584
Gannett Co., Inc.		68,400		826,956
				1,696,540
Paper & Forest Products — 0.3%
Ainsworth Lumber Co. Ltd. (a)		192,951		452,363
Ainsworth Lumber Co. Ltd. (a)(b)		221,591		519,508
Western Forest Products, Inc. (a)(b)		78,039		21,589
				993,460
Semiconductors & Semiconductor Equipment — 0.0%
SunPower Corp., Class B (a)		1,235		12,770
Software — 0.2%
HMH Holdings/EduMedia (a)		142,515		712,576
Wireless Telecommunication Services — 0.1%
FiberTower Corp. (a)		127,570		457,976
Total Common Stocks — 2.2%				8,806,166

Corporate Bonds	Par (000)
Aerospace & Defense — 0.4%
Bombardier, Inc., 7.75%, 3/15/20 (b)	USD	300	322,500
DynCorp International, Inc., 10.38%, 7/01/17 (b)		440	437,800
Kratos Defense & Security Solutions, Inc., 10.00%, 6/01/17		840	867,300
			1,627,600
Airlines — 3.0%
Air Canada (b):
9.25%, 8/01/15		1,640	1,607,200
12.00%, 2/01/16		440	411,400
American Airlines, Inc., 10.50%, 10/15/12 (b)		1,470	1,561,875
American Airlines Pass Through Trust, Series 2001-02, 7.86%, 4/01/13		510	533,715
Continental Airlines, Inc.:
6.75%, 9/15/15 (b)		900	891,000
Series 1997-4-B, 6.90%, 7/02/18		1,491	1,453,793
Series 2001-1-C, 7.03%, 12/15/12		358	356,599

Corporate Bonds	Par (000)		Value
Airlines (concluded)
Delta Air Lines, Inc., Series B, 9.75%, 12/17/16	USD	1,520	$	1,596,401
United Air Lines, Inc., 12.75%, 7/15/12		3,093		3,448,186
				11,860,169
Auto Components — 1.5%
Allison Transmission, Inc. (b):
11.00%, 11/01/15		360		387,000
11.25%, 11/01/15 (c)		284		305,300
Delphi International Holdings Unsecured, 12.00%, 10/06/14		69		67,753
The Goodyear Tire & Rubber Co.:
8.25%, 8/15/20		680		696,150
8.75%, 8/15/20		540		571,050
Icahn Enterprises LP, 8.00%, 1/15/18		4,180		4,159,100
				6,186,353
Beverages — 0.2%
Cott Beverages USA, Inc., 8.13%, 9/01/18 (b)		413		424,874
Crown European Holdings SA, 7.13%, 8/15/18 (b)	EUR	380		493,594
				918,468
Biotechnology — 0.2%
QHP Pharma, 10.25%, 3/15/15 (b)	USD	932		950,265
Building Products — 1.5%
Associated Materials LLC, 9.88%, 11/15/16		1,200		1,272,000
Building Materials Corp. of America (b):
6.88%, 8/15/18		825		802,312
7.00%, 2/15/20		980		975,100
Momentive Performance Materials, Inc., Series WI, 9.75%, 12/01/14		1,115		1,088,519
Ply Gem Industries, Inc., 11.75%, 6/15/13		1,880		1,936,400
				6,074,331
Capital Markets — 0.3%
E*Trade Financial Corp., 3.46%, 8/31/19 (d)(e)		380		456,000
Offshore Group Investments Ltd., 11.50%, 8/01/15 (b)		810		807,975
				1,263,975
Chemicals — 3.5%
American Pacific Corp., 9.00%, 2/01/15		1,400		1,384,250
CF Industries, Inc.:
6.88%, 5/01/18		685		720,962
7.13%, 5/01/20		1,205		1,292,362
Chemtura Corp., 7.88%, 9/01/18 (b)		825		842,531
Georgia Gulf Corp., 9.00%, 1/15/17 (b)		260		269,425
Hexion U.S. Finance Corp.:
9.75%, 11/15/14		1,240		1,218,300
8.88%, 2/01/18		1,225		1,133,125
Huntsman International LLC (b):
6.88%, 11/15/13	EUR	440		549,226
8.63%, 3/15/20	USD	370		366,763
Ineos Finance Plc, 9.00%, 5/15/15 (b)		655		662,369
Innophos, Inc., 8.88%, 8/15/14		1,250		1,281,250
MacDermid, Inc., 9.50%, 4/15/17 (b)		1,985		2,012,294
OXEA Finance/Cy SCA, 9.50%, 7/15/17 (b)		865		912,575
Wellman Holdings, Inc., Subordinate Note (d):
(Second Lien), 10.00%, 1/29/19		1,450		1,261,500
(Third Lien), 5.00%, 1/29/19 (c)		476		185,615
				14,092,547
Commercial Banks — 3.0%
CIT Group, Inc.:
7.00%, 5/01/16		2,145		2,037,750
7.00%, 5/01/17		10,685		10,047,234
				12,084,984

See Notes to Financial Statements.
	ANNUAL REPORT	AUGUST 31, 2010	33

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

Corporate Bonds	Par (000)		Value
Commercial Services & Supplies — 1.0%
ACCO Brands Corp., 10.63%, 3/15/15	USD	395	$	434,500
RSC Equipment Rental, Inc., 10.00%, 7/15/17 (b)		935		1,019,150
Scientific Games International, Inc., 9.25%, 6/15/19		360		381,600
West Corp., 11.00%, 10/15/16		2,050		2,152,500
				3,987,750
Construction Materials — 0.9%
Nortek, Inc., 11.00%, 12/01/13		3,460		3,646,303
Consumer Finance — 1.0%
Credit Acceptance Corp., 9.13%, 2/01/17 (b)		1,080		1,119,150
Ford Motor Credit Co. LLC:
3.28%, 1/13/12 (f)		340		333,200
7.80%, 6/01/12		300		315,703
8.00%, 12/15/16		290		314,921
6.63%, 8/15/17		1,700		1,727,832
				3,810,806
Containers & Packaging — 3.2%
Ball Corp., 6.75%, 9/15/20		785		826,213
Berry Plastics Corp.:
8.88%, 9/15/14		1,275		1,214,437
8.25%, 11/15/15		215		215,538
9.50%, 5/15/18 (b)		665		611,800
Berry Plastics Holding Corp., 8.88%, 9/15/14		3,830		3,648,075
Graphic Packaging International, Inc., 9.50%, 6/15/17		1,245		1,325,925
Impress Holdings BV, 3.65%, 9/15/13 (b)(f)		595		562,275
Owens-Brockway Glass Container, Inc., 6.75%, 12/01/14	EUR	254		325,100
Pregis Corp., 12.38%, 10/15/13	USD	1,920		1,920,000
Smurfit Kappa Acquisitions (b):
7.25%, 11/15/17	EUR	785		1,014,687
7.75%, 11/15/19		745		967,704
				12,631,754
Diversified Consumer Services — 1.2%
Service Corp. International, 7.00%, 6/15/17	USD	4,775		4,942,125
Diversified Financial Services — 6.8%
Ally Financial Inc. (b):
8.30%, 2/12/15		3,510		3,650,400
7.50%, 9/15/20		2,970		2,940,300
Axcan Intermediate Holdings, Inc., 12.75%, 3/01/16		1,545		1,546,931
FCE Bank Plc:
7.88%, 2/15/11	GBP	1,050		1,630,460
7.13%, 1/16/12	EUR	3,000		3,934,813
7.13%, 1/15/13		1,450		1,901,826
GMAC, Inc.:
7.50%, 12/31/13	USD	700		714,875
2.74%, 12/01/14 (f)		635		545,927
8.00%, 3/15/20 (b)		3,930		4,028,250
Leucadia National Corp., 8.13%, 9/15/15		1,870		1,991,550
Reynolds Group DL Escrow, Inc., 7.75%, 10/15/16 (b)		2,305		2,322,287
Reynolds Group Issuer, Inc. (b):
7.75%, 10/15/16	EUR	600		771,748
8.50%, 5/15/18	USD	1,200		1,152,000
				27,131,367

Corporate Bonds	Par (000)		Value
Diversified Telecommunication Services — 4.5%
Broadview Networks Holdings, Inc., 11.38%, 9/01/12	USD	1,680	$	1,646,400
Frontier Communications Corp.:
7.88%, 4/15/15		950		1,002,250
8.25%, 4/15/17		1,200		1,269,000
8.50%, 4/15/20		500		530,625
GCI, Inc., 8.63%, 11/15/19		1,700		1,785,000
ITC Deltacom, Inc., 10.50%, 4/01/16		840		827,400
Nordic Telephone Co. Holdings ApS, 8.88%, 5/01/16 (b)		340		357,000
Qwest Communications International, Inc.:
7.50%, 2/15/14		3,190		3,249,812
8.00%, 10/01/15 (b)		900		967,500
Series B, 7.50%, 2/15/14		2,370		2,414,437
Qwest Corp.:
7.63%, 6/15/15		875		982,188
8.38%, 5/01/16		1,120		1,304,800
Windstream Corp.:
8.13%, 8/01/13		703		749,574
7.88%, 11/01/17		1,017		1,032,255
				18,118,241
Energy Equipment & Services — 1.9%
Compagnie Générale de Géophysique-Veritas:
7.50%, 5/15/15		2,045		2,024,550
7.75%, 5/15/17		510		506,175
Expro Finance Luxembourg SCA, 8.50%, 12/15/16 (b)		2,890		2,702,150
Global Geophysical Services, Inc., 10.50%, 5/01/17 (b)		480		475,200
North American Energy Alliance LLC, 10.88%, 6/01/16 (b)		1,055		1,139,400
Thermon Industries, Inc., 9.50%, 5/01/17 (b)		850		871,250
				7,718,725
Food & Staples Retailing — 0.9%
AmeriQual Group LLC, 9.50%, 4/01/12 (b)		1,300		1,274,000
Rite Aid Corp.:
9.75%, 6/12/16		660		701,250
10.25%, 10/15/19		945		970,988
8.00%, 8/15/20 (b)		820		814,875
				3,761,113
Food Products — 0.5%
B&G Foods, Inc., 7.63%, 1/15/18		340		349,775
Reddy Ice Corp., 11.25%, 3/15/15 (b)		690		699,488
Smithfield Foods, Inc., 10.00%, 7/15/14 (b)		730		814,862
TreeHouse Foods, Inc., 7.75%, 3/01/18		250		264,375
				2,128,500
Health Care Equipment & Supplies — 1.4%
DJO Finance LLC, 10.88%, 11/15/14		3,810		4,081,463
Hologic, Inc., 2.00%, 12/15/37 (d)(g)		1,495		1,351,106
				5,432,569
Health Care Providers & Services — 4.9%
American Renal Holdings, 8.38%, 5/15/18 (b)		435		435,000
Gentiva Health Services, Inc., 11.50%, 9/01/18 (b)		1,095		1,133,325
HCA, Inc.:
9.13%, 11/15/14		2,745		2,882,250
8.50%, 4/15/19		1,550		1,699,188
7.25%, 9/15/20		3,605		3,767,225
inVentiv Health Inc., 10.00%, 8/15/18 (b)		1,020		997,050
Omnicare, Inc., 7.75%, 6/01/20		785		785,000
Tenet Healthcare Corp.:
9.00%, 5/01/15		2,935		3,125,775
10.00%, 5/01/18		1,050		1,181,250
8.88%, 7/01/19		3,360		3,633,000
				19,639,063

See Notes to Financial Statements.
34	ANNUAL REPORT	AUGUST 31, 2010

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 Technology — 1.1%
IMS Health, Inc., 12.50%, 3/01/18 (b)	USD	3,760	$	4,356,900
Hotels, Restaurants & Leisure — 2.3%
Diamond Resorts Corp., 12.00%, 8/15/18 (b)		1,860		1,757,700
Enterprise Inns Plc, 6.50%, 12/06/18	GBP	656		830,363
Harrah’s Operating Co., Inc., 11.25%, 6/01/17	USD	980		1,048,600
Inn of the Mountain Gods Resort & Casino, 12.00%, 11/15/10 (a)(h)		2,575		1,126,562
Little Traverse Bay Bands of Odawa Indians, 10.25%, 2/15/14 (a)(b)(h)		1,895		639,562
MGM Mirage, 13.00%, 11/15/13		130		150,150
MGM Resorts International:
10.38%, 5/15/14		415		452,350
11.13%, 11/15/17		1,310		1,463,925
Marina District Finance Co., Inc., 9.88%, 8/15/18 (b)		570		568,575
Travelport LLC:
5.16%, 9/01/14 (f)		195		180,863
9.88%, 9/01/14		320		327,200
Tropicana Entertainment LLC, Series WI, 9.63%, 12/15/14 (a)(h)		515		376
Virgin River Casino Corp., 9.00%, 1/15/12 (a)(h)		1,500		675,000
				9,221,226
Household Durables — 3.6%
Beazer Homes USA, Inc.:
6.88%, 7/15/15		285		246,525
8.13%, 6/15/16		495		433,125
12.00%, 10/15/17		2,080		2,342,600
9.13%, 6/15/18		3,240		2,867,400
DFS Furniture Holdings Plc, 9.75%, 7/15/17 (b)	GBP	325		467,283
K. Hovnanian Enterprises, Inc., 10.63%, 10/15/16	USD	2,730		2,648,100
Ryland Group Inc., 6.63%, 5/01/20		1,045		979,687
Standard Pacific Corp.:
9.25%, 4/15/12		210		215,513
6.25%, 4/01/14		570		531,525
7.00%, 8/15/15		420		386,400
10.75%, 9/15/16		2,355		2,478,637
8.38%, 5/15/18		865		832,563
				14,429,358
Independent Power Producers & Energy Traders — 2.6%
The AES Corp., 8.75%, 5/15/13 (b)		21		21,341
Calpine Construction Finance Co. LP, 8.00%, 6/01/16 (b)		2,010		2,110,500
Energy Future Holdings Corp., 10.00%, 1/15/20 (b)		5,200		5,007,616
Energy Future Intermediate Holding Co. LLC, 10.00%, 12/01/20		271		260,426
NRG Energy, Inc.:
7.25%, 2/01/14		1,960		1,999,200
7.38%, 2/01/16		405		408,038
7.38%, 1/15/17		615		619,612
				10,426,733
Industrial Conglomerates — 2.6%
Sequa Corp. (b):
11.75%, 12/01/15		3,810		3,924,300
13.50%, 12/01/15 (c)		6,236		6,485,556
				10,409,856
Insurance — 0.9%
Alliant Holdings I, Inc., 11.00%, 5/01/15 (b)		2,600		2,668,250
USI Holdings Corp., 4.25%, 11/15/14 (b)(f)		1,070		906,825
				3,575,075

Corporate Bonds	Par (000)		Value
Leisure Equipment & Products — 0.3%
Brunswick Corp., 11.25%, 11/01/16 (b)	USD	950	$	1,085,375
Life Sciences Tools & Services — 0.2%
Patheon, Inc., 8.63%, 4/15/17 (b)		910		906,588
Machinery — 1.6%
AGY Holding Corp., 11.00%, 11/15/14		1,650		1,402,500
Accuride Corp., 7.50%, 2/26/20 (c)(d)		15		38,372
Navistar International Corp.:
3.00%, 10/15/14 (d)		2,960		3,230,100
8.25%, 11/01/21		1,500		1,571,250
Oshkosh Corp., 8.25%, 3/01/17		220		231,550
				6,473,772
Marine — 0.7%
Horizon Lines, Inc., 4.25%, 8/15/12 (d)		3,340		2,805,600
Media — 12.3%
Affinion Group, Inc.:
10.13%, 10/15/13		3,824		3,919,600
10.13%, 10/15/13		1,195		1,221,888
CCH II LLC, 13.50%, 11/30/16		876		1,038,517
CCO Holdings LLC (b):
7.88%, 4/30/18		730		755,550
8.13%, 4/30/20		730		768,325
CMP Susquehanna Corp., 3.64%, 5/15/14 (b)(f)		254		5,080
CSC Holdings, Inc., 8.50%, 4/15/14		550		600,875
Catalina Marketing Corp., 10.50%, 10/01/15 (b)(c)		935		1,000,450
Clear Channel Worldwide Holdings, Inc.:
9.25%, 12/15/17		1,313		1,362,237
Series B, 9.25%, 12/15/17		6,656		6,980,480
Cox Enterprises, Inc.:
Loan Close 2, 4.00%, 8/15/18		999		998,690
Loan Close 3, 12.00%, 8/15/18		1,155		1,155,000
Shares Loan, 4.00%, 8/15/18		1,178		1,177,586
DISH DBS Corp., 7.00%, 10/01/13		150		156,188
Gray Television, Inc., 10.50%, 6/29/15		715		688,188
Harland Clarke Holdings Corp.:
6.00%, 5/15/15 (f)		550		462,000
9.50%, 5/15/15		660		628,650
Intelsat Corp., 9.25%, 6/15/16		3,400		3,604,000
Interactive Data Corp., 10.25%, 8/01/18 (b)		1,600		1,660,000
Liberty Global, Inc., 4.50%, 11/15/16 (b)(d)		700		857,500
Liberty Media Corp., 3.13%, 3/30/23 (d)		1,748		1,900,950
Lighthouse International Co. SA:
8.00%, 4/30/14	EUR	822		614,591
8.00%, 4/30/14 (b)		120		89,721
Live Nation Entertainment, Inc., 8.13%, 5/15/18 (b)	USD	1,010		974,650
McClatchy Co., 11.50%, 2/15/17 (b)		2,180		2,250,850
Nielsen Finance LLC:
11.63%, 2/01/14		225		252,281
10.00%, 8/01/14		3,425		3,596,250
Rainbow National Services LLC, 10.38%, 9/01/14 (b)		2,570		2,666,375
Regal Entertainment Group, 9.13%, 8/15/18		520		533,000
Seat Pagine Gialle SpA, 10.50%, 1/31/17 (b)	EUR	228		268,708
TL Acquisitions, Inc., 10.50%, 1/15/15 (b)	USD	2,120		2,024,600
UPC Holding BV, 9.88%, 4/15/18 (b)		800		833,000
Unitymedia GmbH:
9.63%, 12/01/19	EUR	244		323,897
9.63%, 12/01/19 (b)		900		1,194,700
Unitymedia Hessen GmbH & Co. KG:
8.13%, 12/01/17		120		155,111
8.13%, 12/01/17 (b)	USD	985		1,012,088
8.13%, 12/01/17 (b)	EUR	701		906,109
Ziggo Bond Co. BV, 8.00%, 5/15/18 (b)		610		784,618
				49,422,303

See Notes to Financial Statements.
	ANNUAL REPORT	AUGUST 31, 2010	35

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

Corporate Bonds	Par (000)		Value
Metals & Mining — 4.1%
AK Steel Corp., 7.63%, 5/15/20	USD	35	$	35,263
Aleris International, Inc. (a)(h):
9.00%, 12/15/14		1,625		3,250
10.00%, 12/15/16		1,300		494
Drummond Co., Inc.:
9.00%, 10/15/14 (b)		1,250		1,307,812
7.38%, 2/15/16		360		360,450
FMG Finance Property Ltd. (b):
10.00%, 9/01/13		850		936,062
10.63%, 9/01/16		1,875		2,172,656
Foundation PA Coal Co., 7.25%, 8/01/14		3,250		3,258,125
Goldcorp, Inc., 2.00%, 8/01/14 (d)		1,040		1,264,900
McJunkin Red Man Corp., 9.50%, 12/15/16 (b)		980		864,850
Murray Energy Corp., 10.25%, 10/15/15 (b)		830		848,675
New World Resources NV:
7.38%, 5/15/15	EUR	439		545,196
7.88%, 5/01/18 (b)		326		417,255
7.88%, 5/01/18		290		371,178
Novelis, Inc., 11.50%, 2/15/15	USD	685		753,500
Ryerson, Inc.:
7.84%, 11/01/14 (f)		640		593,600
12.00%, 11/01/15		450		462,938
Steel Dynamics, Inc., 7.38%, 11/01/12		410		435,625
United States Steel Corp., 7.38%, 4/01/20		815		825,188
Vedanta Resources Plc, 9.50%, 7/18/18 (b)		1,015		1,065,750
				16,522,767
Multiline Retail — 2.5%
Dollar General Corp.:
10.63%, 7/15/15		2,215		2,430,963
11.88%, 7/15/17 (c)		6,753		7,765,950
				10,196,913
Oil, Gas & Consumable Fuels — 8.2%
Arch Coal, Inc.:
8.75%, 8/01/16		95		102,838
7.25%, 10/01/20		1,335		1,355,025
Atlas Energy Operating Co. LLC:					��
12.13%, 8/01/17		750		861,563
10.75%, 2/01/18		405		446,513
Berry Petroleum Co., 8.25%, 11/01/16		800		808,000
Bill Barrett Corp., 9.88%, 7/15/16		70		75,950
Chesapeake Energy Corp.:
6.63%, 8/15/20		3,665		3,678,744
2.25%, 12/15/38 (d)		1,250		935,937
Coffeyville Resources LLC, 9.00%, 4/01/15 (b)		460		472,650
Connacher Oil and Gas Ltd. (b):
11.75%, 7/15/14		280		303,800
10.25%, 12/15/15		1,755		1,755,000
Consol Energy, Inc., 8.25%, 4/01/20 (b)		3,095		3,284,569
Crosstex Energy LP, 8.88%, 2/15/18		630		650,475
Denbury Resources, Inc., 8.25%, 2/15/20		1,095		1,168,912
Linn Energy LLC, 8.63%, 4/15/20 (b)		1,715		1,809,325
Massey Energy Co., 6.88%, 12/15/13		1,465		1,483,312
Niska Gas Storage US LLC, 8.88%, 3/15/18 (b)		2,930		3,083,825
OPTI Canada, Inc. (b):
9.00%, 12/15/12		2,715		2,721,787
9.75%, 8/15/13		1,500		1,481,250
Patriot Coal Corp., 8.25%, 4/30/18		645		640,163
Peabody Energy Corp., 6.50%, 9/15/20		1,600		1,682,000
Petrohawk Energy Corp.:
10.50%, 8/01/14		895		1,000,162
7.88%, 6/01/15		680		705,500
QEP Resources, Inc., 6.88%, 3/01/21		650		677,625
Range Resources Corp., 8.00%, 5/15/19		700		749,000
Teekay Corp., 8.50%, 1/15/20		1,020		1,088,850
				33,022,775

Corporate Bonds	Par (000)		Value
Paper & Forest Products — 2.9%
Ainsworth Lumber Co. Ltd., 11.00%, 7/29/15 (b)(c)	USD	1,790	$	1,530,264
Boise Paper Holdings LLC:
9.00%, 11/01/17		525		552,562
8.00%, 4/01/20		240		244,200
Clearwater Paper Corp., 10.63%, 6/15/16		625		703,125
Georgia-Pacific LLC, 8.25%, 5/01/16 (b)		2,570		2,814,150
Glatfelter, 7.13%, 5/01/16 (b)		330		332,063
NewPage Corp., 11.38%, 12/31/14		5,045		4,099,062
Verso Paper Holdings LLC, 11.50%, 7/01/14		1,335		1,408,425
				11,683,851
Pharmaceuticals — 0.6%
Angiotech Pharmaceuticals, Inc., 4.29%, 12/01/13 (f)		1,696		1,369,520
Elan Finance Plc, 8.88%, 12/01/13		150		151,125
Novasep Holding SAS, 9.63%, 12/15/16 (b)	EUR	979		1,042,136
				2,562,781
Real Estate Management & Development — 0.5%
Forest City Enterprises, Inc., 7.63%, 6/01/15	USD	2,300		2,098,750
Road & Rail — 0.9%
Avis Budget Car Rental LLC, 9.63%, 3/15/18		800		836,000
Hertz Holdings Netherlands BV, 8.50%, 7/31/15 (b)	EUR	1,120		1,476,093
Syncreon Global Ireland Ltd., 9.50%, 5/01/18 (b)	USD	1,260		1,231,650
				3,543,743
Semiconductors & Semiconductor Equipment — 0.2%
Advanced Micro Devices, Inc.:
6.00%, 5/01/15 (d)		219		214,346
7.75%, 8/01/20 (b)		445		440,550
				654,896
Software — 0.0%
BMS Holdings, Inc., 8.59%, 2/15/12 (b)(c)(f)		749		14,982
Specialty Retail — 1.6%
Group 1 Automotive, Inc., 2.25%, 6/15/36 (d)(g)		1,685		1,282,706
Hillman Group, Inc., 10.88%, 6/01/18 (b)		830	��	873,575
Limited Brands, Inc., 8.50%, 6/15/19		1,255		1,418,150
Sonic Automotive, Inc., 9.00%, 3/15/18		580		590,150
Toys ‘R’ Us-Delaware, Inc., 7.38%, 9/01/16 (b)		660		666,600
United Auto Group, Inc., 7.75%, 12/15/16		1,670		1,594,850
				6,426,031
Textiles, Apparel & Luxury Goods — 0.2%
Quiksilver, Inc., 6.88%, 4/15/15		810		749,250
Tobacco — 0.1%
Vector Group Ltd., 11.00%, 8/15/15		505		514,469
Wireless Telecommunication Services — 5.2%
Cricket Communications, Inc.:
10.00%, 7/15/15		2,870		3,006,325
7.75%, 5/15/16		1,080		1,115,100
Digicel Group Ltd. (b):
8.88%, 1/15/15		1,120		1,128,400
9.13%, 1/15/15 (c)		2,864		2,878,320
8.25%, 9/01/17		1,240		1,288,050
10.50%, 4/15/18		800		858,000
FiberTower Corp., 9.00%, 1/01/16 (c)		488		415,114
iPCS, Inc., 2.59%, 5/01/13 (f)		1,295		1,210,825
MetroPCS Wireless, Inc., 9.25%, 11/01/14		3,935		4,092,400
Nextel Communications, Inc.:
Series E, 6.88%, 10/31/13		1,880		1,875,300
Series F, 5.95%, 3/15/14		170		164,263

See Notes to Financial Statements.
36	ANNUAL REPORT	AUGUST 31, 2010

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

Corporate Bonds	Par (000)		Value
Wireless Telecommunication Services (concluded)
Orascom Telecom Finance SCA, 7.88%, 2/08/14 (b)	USD	385	$	365,750
Sprint Capital Corp., 6.88%, 11/15/28	��	2,770		2,312,950
				20,710,797
Total Corporate Bonds — 97.0%				389,821,799

Floating Rate Loan Interests (f)
Auto Components — 1.0%
Affinion Group Holdings, Inc., Loan, 8.51%, 3/01/12 (c)		740	710,106
Allison Transmission, Inc., Term Loan, 3,04%, 8/07/14		3,576	3,294,810
			4,004,916
Automobiles — 1.3%
Ford Motor Co., Tranche B-1 Term Loan, 3.03%, 12/15/13		5,619	5,405,222
Building Products — 1.2%
CPG International I, Inc., Term Loan, 5.54%, 4/30/12		4,912	4,911,746
Capital Markets — 0.1%
Marsico Parent Co., LLC, Term Loan, 5.31% – 5.56%, 12/15/14		759	526,462
Chemicals — 0.7%
PQ Corp., Term Loan (First Lien), 3.52% – 3.73%, 7/30/14		421	385,341
Tronox Worldwide LLC:
Tranche B-1 Term Loan, 11.25%, 9/20/10		1,892	1,907,135
Tranche B-2 Term Loan, 11.25%, 9/20/10		508	512,365
			2,804,841
Commercial Services & Supplies — 1.0%
AWAS Finance Luxembourg Sarl, Term Loan B, 7.75%, 6/10/16		1,500	1,508,750
Delos Aircraft, Inc., Term Loan 2, 7.00%, 3/17/16		975	980,282
International Lease Finance Corp. (Delos Aircraft, Inc.), Term Loan 1, 6.75%, 3/17/15		1,350	1,360,687
			3,849,719
Construction & Engineering — 0.8%
Safway Services, LLC, Last Out Term Loan, 15.63%, 12/14/17		3,250	3,250,000
Consumer Finance — 1.7%
AGFS Funding Co., Term Loan, 7.25%, 4/21/15		6,500	6,422,812
DaimlerChrysler Financial Services Americas LLC, Term Loan (Second Lien), 6.78%, 8/05/13		375	373,669
			6,796,481
Diversified Telecommunication Services — 1.7%
Wind Finance SL SA, Euro Facility (Second Lien), 7.89%, 12/17/14	EUR	5,258	6,649,038
Electric Utilities — 0.5%
New Development Holdings LLC, Term Loan, 7.00%, 7/03/17	USD	2,025	2,045,250
Health Care Providers & Services — 0.7%
Harden Healthcare Term Loan A:
Add-on Term Loan, 7.75%, 3/02/15		900	882,000
Tranche A Term Loan, 8.50%, 3/02/15		694	679,764
inVentiv Health, Inc. (FKA Ventive Health, Inc.), Term Loan B, 6.50%, 7/31/16		1,400	1,397,375
			2,959,139

Floating Rate Loan Interests (f)	Par (000)		Value
Hotels, Restaurants & Leisure — 1.2%
Travelport LLC (FKA Travelport, Inc.), Loan, 8.37%, 3/27/12 (c)	USD	5,326	$	4,952,993
IT Services — 0.4%
First Data Corp.:
First Lien Term Loan, 3.01%, 9/24/14		255		217,782
Initial Tranche B-2 Term Loan, 3.01%, 9/24/14		644		548,816
Initial Tranche B-3 Term Loan, 3.01%, 9/24/14		1,165		993,674
				1,760,272
Independent Power Producers & Energy Traders — 1.0%
Texas Competitive Electric Holdings Co., LLC (TXU):
Initial Tranche B-1 Term Loan, 3.79% – 4.03%, 10/10/14		342		259,173
Initial Tranche B-2 Term Loan, 3.79% – 4.07%, 10/10/14		215		162,617
Initial Tranche B-3 Term Loan, 3.79% – 4.03%, 10/10/14		4,542		3,423,268
				3,845,058
Media — 1.7%
Cengage Learning Acquisitions, Inc. (Thomson Learning), Tranche 1 Incremental Term Loan, 7.50%, 7/03/14		2,695		2,686,018
HMH Publishing Co., Ltd. (FKA Education Media), Tranche A Term Loan, 5.80%, 6/12/14 (c)		1,467		1,335,940
Newsday, LLC, Fixed Rate Term Loan, 10.50%, 8/01/13		2,450		2,600,062
				6,622,020
Multiline Retail — 0.5%
Hema Holding BV, Mezzanine, 4.15% – 9.00%, 1/29/17	EUR	1,565		1,824,063
The Neiman Marcus Group, Inc., Term Loan, 2.29% – 2.54%, 4/06/13	USD	390		369,366
				2,193,429
Oil, Gas & Consumable Fuels — 0.8%
Turbo Beta Ltd., Dollar Facility, 2.50% – 14.50%, 3/15/18 (c)		3,799		3,010,744
Paper & Forest Products — 0.3%
Verso Paper Finance Holdings LLC, Loan, 6.70% – 7.44%, 2/01/13		2,020		1,212,250
Real Estate Management & Development — 0.6%
Realogy Corp.:
Initial Term Loan B, 3.30%, 10/10/13		629		542,442
Synthetic Letter of Credit, 0.11% – 3.15%, 10/10/13		108		92,988
Second Lien Term Facility, 13.50%, 10/15/17		1,575		1,661,625
				2,297,055
Specialty Retail — 0.2%
Claire’s Stores, Inc., Term Loan B, 3.05%, 5/29/14		236		201,734
Michaels Stores, Inc., Term Loan B-1, 2.63% – 2.81%, 10/31/13		558		526,175
				727,909
Total Floating Rate Loan Interests — 17.4%				69,824,544

See Notes to Financial Statements.
	ANNUAL REPORT	AUGUST 31, 2010	37

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

Other Interests (i)	Beneficial Interest (000)			Value
Auto Components — 1.7%
Delphi Debtor-in-Possession Holding Co. LLP	USD	—	(j)	$	6,797,931
Hotels, Restaurants & Leisure — 0.0%
Buffets, Inc.		950			95
Media — 0.0%
Adelphia Escrow		1,300			130
Adelphia Recovery Trust		1,630			6,522
					6,652
Total Other Interests — 1.7%					6,804,678

Preferred Securities

Preferred Stocks	Shares
Diversified Financial Services — 0.9%
Ally Financial, Inc., 7.00% (d)		4,512	3,727,053
Media — 0.0%
CMP Susquehanna Radio Holdings Corp., 0.00% (a)(b)(f)		59,235	1
Thrifts & Mortgage Finance — 0.0%
Fannie Mae, Series O, 0.00% (a)		40,000	16,400
Freddie Mac, Series Z, 8.38% (a)		110,157	36,352
			52,752
Total Preferred Securities — 0.9%			3,779,806

Warrants (k)
Health Care Providers & Services — 0.0%
HealthSouth Corp. (Expires 1/16/14)	54,577	1
Hotels, Restaurants & Leisure — 0.0%
Buffets Restaurants Holdings, Inc. (Expires 4/29/14)	802	8
Media — 0.0%
CMP Susquehanna Radio Holdings Corp. (Expires 3/26/19) (b)	67,691	1
New Vision Holdings LLC (Expires 9/30/14)	4	40
New Vision Holdings LLC (Expires 9/30/14)	22	221
		262
Oil, Gas & Consumable Fuels — 0.0%
Turbo Cayman Ltd. (No Expiration)	2	—
Software — 0.0%
HMH Holdings/EduMedia (Expires 3/09/17)	22,578	—
Total Warrants — 0.0%		271
Total Long-Term Investments (Cost — $485,130,819) — 119.2%		479,037,264

Short-Term Securities
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.25% (l)(m)	1,808,758	1,808,758
Total Short-Term Securities (Cost — $1,808,758) — 0.5%		1,808,758
Total Investments Before Options Written (Cost — $486,939,577*) — 119.7%		480,846,022

Options Written	Notional Amount (000)			Value
Over-the-Counter Call Swaptions — 0.0%
Bought credit default protection on Dow Jones CDX North America High Yield Index Series 14 Volume 1, Strike Price USD 100.00, Expires 9/15/10, Broker Credit Suisse International	USD	8,950	$	(4,976	)
Bought credit default protection on Dow Jones CDX North America High Yield Series 14 Volume 1, Strike Price USD 96.00, Expires 9/15/10, Broker Credit Suisse International		5,000		(56,110	)
				(61,086	)
Over-the-Counter Put Swaptions — 0.0%
Sold credit default protection on Dow Jones CDX North America High Yield Series 14 Volume 1, Strike Price USD 87.00, Expires 9/15/10, Broker Credit Suisse International		5,000		(80	)
Total Options Written (Premiums Received — $174,750) — 0.0%				(61,166	)
Total Investments, Net of Options Written — 119.7%				480,784,856
Liabilities in Excess of Other Assets — (19.7)%				(79,025,046	)
Net Assets — 100.0%			$	401,759,810

* The cost and unrealized appreciation (depreciation) of investments as of August 31, 2010, as computed for federal income tax purposes, were as follows:

Aggregate cost	$	488,272,592
Gross unrealized appreciation	$	22,182,248
Gross unrealized depreciation		(29,608,818	)
Net unrealized depreciation	$	(7,426,570	)

(a)	Non-income producing security.
(b)	Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(c)	Represents a payment-in-kind security which may pay interest/dividends in additional face/shares.
(d)	Convertible security.
(e)	Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(f)	Variable rate security. Rate shown is as of report date.
(g)	Represents a step-down bond that pays an initial coupon rate for the first period and then a lower coupon rate for the following periods. Rate shown is as of report date.
(h)	Issuer filed for bankruptcy and/or is in default of interest payments.
(i)	Other interests represent beneficial interest in liquidation trusts and other reorganization entities and are non-income producing.
(j)	Amount is less than $1,000.
(k)	Warrants entitle the Trust to purchase a predetermined number of shares of common stock and are non-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date, if any.
(l)	Investments in companies considered to be an affiliate of the Trust during the year, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate	Shares Held at August 31, 2009		Net Activity			Shares Held at August 31, 2010		Income
BlackRock Liquidity Funds, TempFund, Institutional Class		2,267,254		(458,496	)		1,808,758		$4,114

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

See Notes to Financial Statements.
38	ANNUAL REPORT	AUGUST 31, 2010

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

• Financial futures contracts sold as of August 31,2010 were as follows:

Contracts	Issue	Exchange	Expiration Date	Notional Value		Unrealized Appreciation
43	S&P 500 Index	Chicago Mercantile	September 2010	$	11,449,781	$	180,556

• Foreign currency exchange contracts as of August 31,2010 were as follows:

Currency Purchased		Currency Sold		Counterparty		Settlement Date		Unrealized Appreciation (Depreciation)
EUR	1,210,100	USD	1,554,487		Citibank NA		9/15/10	$	(21,019	)
USD	28,359,688	EUR	22,392,500		Citibank NA		9/15/10		(16,607	)
USD	446,817	EUR	346,500		Deutsche Bank AG		9/15/10		7,724
GBP	333,000	USD	519,463		UBS AG		10/20/10		(8,936	)
USD	2,111,940	GBP	1,383,500		Citibank NA		10/20/10		(9,125	)
USD	518,041	CAD	547,000		Deutsche Bank AG		10/20/10		5,488
USD	496,039	GBP	325,000		Deutsche Bank AG		10/20/10		(2,223	)
USD	519,461	GBP	337,000		Royal Bank of Scotland Plc		10/20/10		2,801
Total								$	(41,897	)

• Credit default swaps on single-name issuers — buy protection outstanding as of August 31, 2010 were as follows:

Issuer	Pay Fixed Rate			Counterparty		Expiration		Notional Amount (000)		Unrealized Appreciation (Depreciation)
K. Hovnanian Enterprises, Inc.		5.00	%		Goldman Sachs International		December 2011	$	805	$	47,870
K. Hovnanian Enterprises, Inc.		5.00	%		Goldman Sachs USA		December 2013	$	1,600		269,592
Louisiana- Pacific Corp.		5.00	%		JPMorgan Chase Bank NA		March 2014	$	500		(106,314	)
Brunswick Corp.		5.00	%		Goldman Sachs Bank USA		September 2014	$	325		(17,128	)
Total										$	194,020

• Credit default swaps on single-name issuers — sold protection outstanding as of August 31, 2010 were as follows:

Issuer	Receive Fixed Rate			Counterparty		Expiration		Credit Rating1		Notional Amount (000)2		Unrealized Appreciation (Depreciation)
Texas Competitive Electric Holdings Co. LLC		5.00	%		Goldman Sachs International		September 2012		CCC	$	775	$	(69,761	)
Advanced Micro Devices, Inc.		5.00	%		JPMorgan Chase Bank NA		March 2015		B+	$	1,150		(12,882	)
Realogy Corp.		5.00	%		Credit Suisse International		March 2015		C	$	175		1,223
Realogy Corp.		5.00	%		JPMorgan Chase Bank NA		March 2015		C	$	175		(344	)
Realogy Corp.		5.00	%		JPMorgan Chase Bank NA		March 2015		C	$	250		(19,875	)
Realogy Corp.		5.00	%		JPMorgan Chase Bank NA		March 2015		C	$	350		(6,039	)
Levi Strauss & Co.		5.00	%		Goldman Sachs International		June 2015		B+	$	370		1,974
NOVA Chemicals Corp.		5.00	%		Goldman Sachs International		June 2015		B+	$	575		(10,540	)
Levi Strauss & Co.		5.00	%		Goldman Sachs International		September 2015		B+	$	870		—
Realogy Corp.		5.00	%		JPMorgan Chase Bank NA		September 2015		C	$	200		(720	)
Total												$	(116,964	)

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

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

See Notes to Financial Statements.
	ANNUAL REPORT	AUGUST 31, 2010	39

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

The following tables summarize the inputs used as of August 31, 2010 in determining the fair valuation of the Trust’s investments and derivatives:

Valuation Inputs	Level 1		Level 2		Level 3			Total
Assets:
Investments in Securities:
Long-Term Investments:
Common Stocks	$	7,417,996	$	675,463	$	712,707		$	8,806,166
Corporate Bonds		—		384,970,575		4,851,224			389,821,799
Floating Rate Loan Interest		—		49,221,694		20,602,850			69,824,544
Other Interest		—		6,797,931		6,747			6,804,678
Preferred Securities		3,779,805		—		1			3,779,806
Warrants		—		—		271			271
Short-Term Securities		1,808,758		—		—			1,808,758
Liabilities:
Unfunded Loan Commitments		—		—		(36,123	)		(36,123	)
Total	$	13,006,559	$	441,665,663	$	26,137,677		$	480,809,899

	Derivative Financial Instruments1
Valuation Inputs	Level 1		Level 2			Level 3		Total
Assets:
Credit contracts		—	$	320,659			—	$	320,659
Foreign currency exchange contracts		—		16,013			—		16,013
Equity contracts	$	180,556		—			—		180,556
Liabilities:
Credit contracts		—		(304,769	)		—		(304,769	)
Foreign currency exchange contracts		—		(57,910	)		—		(57,910	)
Total	$	180,556	$	(26,007	)		—	$	154,549

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

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

	Common Stocks			Corporate Bonds			Floating Rate Loan Interests			Other Interests		Preferred Securities		Warrants			Unfunded Loan Commitments			Total
Assets/ Liabilities:
Balance, as of August 31, 2009	$	672		$	2,197,802		$	33,422,195		$	6,747	$	1	$	10			—		$	35,627,427
Accrued discounts/premiums		—			40,503			437,076			—		—		—			—			477,579
Net realized gain (loss)		—			368,701			(7,090,984	)		—		—		—			—			(6,722,283	)
Net change in unrealized
appreciation/depreciation2		7,086			(374,968	)		18,219,951			—		—		(9	)	$	(36,123	)		17,815,937
Purchases		—			(779,842	)		(19,872,397	)		—		—		—			—			(20,652,239	)
Sales		—			—			(3,034,891	)		—		—		—			—			(3,034,891	)
Transfers in3		712,576			3,399,028			12,407,148			—		—		270			—			16,519,022
Transfers out3		(7,627	)		—			(13,885,248	)		—		—		—			—			(13,892,875	)
Balance, as of August 31, 2010	$	712,707		$	4,851,224		$	20,602,850		$	6,747	$	1	$	271		$	(36,123	)	$	26,137,677

2	Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations. The net change in the unrealized appreciation/depreciation on the securities still held on August 31, 2010 was $3,575,817.
3	The Trust’s policy is to recognize transfers in and transfers out as of the end of the period of the event or the change in circumstances that caused the transfer.

See Notes to Financial Statements.
40	ANNUAL REPORT	AUGUST 31, 2010

Schedule of Investments August 31, 2010	BlackRock High Income Shares (HIS)
	(Percentages shown are based on Net Assets)

Common Stocks (a)	Shares		Value
Building Products — 0.2%
Masonite Worldwide Holdings		4,901	$	186,238
Construction Materials — 0.0%
Nortek, Inc.		960		39,840
Containers & Packaging — 0.2%
Smurfit-Stone Container Corp.		14,168		243,265
Independent Power Producers & Energy Traders — 0.4%
NRG Energy, Inc.		25,000		508,000
Machinery — 0.0%
Accuride Corp.		55,784		61,362
Software — 0.2%
HMH Holdings/EduMedia		39,824		199,122
Specialty Retail — 0.1%
Lazydays RV Center, Inc.		16,505		84,341
Wireless Telecommunication Services — 0.1%
FiberTower Corp.		38,271		137,393
Total Common Stocks — 1.2%				1,459,561
Corporate Bonds	Par (000)
Aerospace & Defense — 0.4%
Bombardier, Inc., 7.75%, 3/15/20 (b)	USD	120		129,000
DynCorp International, Inc., 10.38%, 7/01/17 (b)		120		119,400
Kratos Defense & Security Solutions, Inc., 10.00%, 6/01/17		240		247,800
L-3 Communications Corp., 5.88%, 1/15/15		30		30,563	��
				526,763
Air Freight & Logistics — 0.6%
National Air Cargo Group, Inc.:
Series 1, 12.38%, 8/16/15		350		350,000
Series 2, 12.38%, 8/16/15		350		350,000
				700,000
Airlines — 2.5%
Air Canada (b):
9.25%, 8/01/15		490		480,200
12.00%, 2/01/16		130		121,550
American Airlines, Inc., 10.50%, 10/15/12 (b)		440		467,500
American Airlines Pass-Through Trust, Series 2001-02, 7.86%, 4/01/13		160		167,440
Continental Airlines, Inc., 6.75%, 9/15/15 (b)		270		267,300
Delta Air Lines, Inc., Series B, 9.75%, 12/17/16		499		523,819
United Air Lines, Inc., 12.75%, 7/15/12		843		939,410
				2,967,219
Auto Components — 1.8%
Allison Transmission, Inc. (b):
11.00%, 11/01/15		100		107,500
11.25%, 11/01/15 (c)		83		89,225
Delphi International Holdings Unsecured, 12.00%, 10/06/14		4		3,799
The Goodyear Tire & Rubber Co.:
8.25%, 8/15/20		200		204,750
8.75%, 8/15/20		170		179,775
Icahn Enterprises LP, 8.00%, 1/15/18		1,250		1,243,750
Stanadyne Corp., Series 1, 10.00%, 8/15/14		335		316,575
				2,145,374
Corporate Bonds	Par (000)		Value
Beverages — 0.2%
Cott Beverages USA, Inc., 8.13%, 9/01/18 (b)	USD	125	$	128,594
Crown European Holdings SA, 7.13%, 8/15/18 (b)	EUR	115		149,377
				277,971
Biotechnology — 0.2%
QHP Pharma, 10.25%, 3/15/15 (b)	USD	275		279,989
Building Products — 2.0%
Associated Materials LLC, 9.88%, 11/15/16		370		392,200
Building Materials Corp. of America (b):
6.88%, 8/15/18		245		238,263
7.00%, 2/15/20		290		288,550
CPG International I, Inc., 10.50%, 7/01/13		540		539,325
Momentive Performance Materials, Inc., Series WI, 9.75%, 12/01/14		360		351,450
Ply Gem Industries, Inc., 11.75%, 6/15/13		530		545,900
				2,355,688
Capital Markets — 0.5%
E*Trade Financial Corp., Series A, 8/31/19 (d)(e)		295		354,000
Offshore Group Investments Ltd., 11.50%, 8/01/15 (b)		240		239,400
				593,400
Chemicals — 4.7%
American Pacific Corp., 9.00%, 2/01/15		400		395,500
Ames True Temper, Inc., 4.53%, 1/15/12 (f)		1,070		1,067,325
CF Industries, Inc.:
6.88%, 5/01/18		205		215,762
7.13%, 5/01/20		360		386,100
Chemtura Corp., 7.88%, 9/01/18 (b)		245		250,206
Georgia Gulf Corp., 9.00%, 1/15/17 (b)		75		77,719
Hexion U.S. Finance Corp.:
9.75%, 11/15/14		370		363,525
8.88%, 2/01/18		345		319,125
Huntsman International LLC (b):
6.88%, 11/15/13	EUR	130		162,271
8.63%, 3/15/20	USD	110		109,038
Ineos Finance Plc, 9.00%, 5/15/15 (b)		195		197,194
Innophos, Inc., 8.88%, 8/15/14		1,170		1,199,250
MacDermid, Inc., 9.50%, 4/15/17 (b)		555		562,631
OXEA Finance/Cy SCA, 9.50%, 7/15/17 (b)		255		269,025
				5,574,671
Commercial Banks — 3.0%
CIT Group, Inc.:
7.00%, 5/01/16		858		815,495
7.00%, 5/01/17		2,971		2,793,462
				3,608,957
Commercial Services & Supplies — 1.0%
ACCO Brands Corp., 10.63%, 3/15/15		120		132,000
RSC Equipment Rental, Inc., 10.00%, 7/15/17 (b)		275		299,750
Scientific Games International, Inc., 9.25%, 6/15/19		110		116,600
West Corp.:
9.50%, 10/15/14		25		25,500
11.00%, 10/15/16		580		609,000
				1,182,850
Construction Materials — 0.8%
Nortek, Inc., 11.00%, 12/01/13		964		1,016,095

See Notes to Financial Statements.
	ANNUAL REPORT	AUGUST 31, 2010	41

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

Corporate Bonds	Par (000)		Value
Consumer Finance — 1.3%
Credit Acceptance Corp., 9.13%, 2/01/17 (b)	USD	320	$	331,600
Ford Motor Credit Co. LLC:
8.63%, 11/01/10		140		141,445
3.28%, 1/13/12 (f)		145		142,100
7.80%, 6/01/12		300		315,703
8.00%, 12/15/16		100		108,593
6.63%, 8/15/17		530		538,677
				1,578,118
Containers & Packaging — 3.6%
Ball Corp., 6.75%, 9/15/20		250		263,125
Berry Plastics Corp.:
8.88%, 9/15/14		375		357,187
8.25%, 11/15/15		65		65,163
9.50%, 5/15/18 (b)		285		262,200
Berry Plastics Holding Corp., 8.88%, 9/15/14		950		904,875
Crown Americas LLC, 7.75%, 11/15/15		255		264,562
Graphic Packaging International, Inc., 9.50%, 6/15/17		355		378,075
Impress Holdings BV, 3.65%, 9/15/13 (b)(f)		700		661,500
Owens-Brockway Glass Container, Inc., 6.75%, 12/01/14	EUR	70		89,595
Pregis Corp., 12.38%, 10/15/13	USD	1,034		1,034,000
				4,280,282
Diversified Financial Services — 6.2%
Ally Financial Inc. (b):
8.30%, 2/12/15		870		904,800
7.50%, 9/15/20		880		871,200
Axcan Intermediate Holdings, Inc., 12.75%, 3/01/16		465		465,581
FCE Bank Plc:
7.13%, 1/16/12	EUR	1,250		1,639,505
7.13%, 1/15/13		450		590,222
GMAC, Inc.:
7.50%, 12/31/13	USD	90		91,913
2.74%, 12/01/14 (f)		156		134,117
8.00%, 3/15/20 (b)		1,090		1,117,250
Leucadia National Corp., 8.13%, 9/15/15		540		575,100
Reynolds Group DL Escrow, Inc., 7.75%, 10/15/16 (b)		695		700,213
Reynolds Group Issuer, Inc., 8.50%, 5/15/18 (b)		360		345,600
				7,435,501
Diversified Telecommunication Services — 5.1%
Broadview Networks Holdings, Inc., 11.38%, 9/01/12		480		470,400
Frontier Communications Corp.:
7.88%, 4/15/15		320		337,600
8.25%, 4/15/17		400		423,000
8.50%, 4/15/20		180		191,025
GCI, Inc., 8.63%, 11/15/19		600		630,000
ITC Deltacom, Inc., 10.50%, 4/01/16		250		246,250
Nordic Telephone Co. Holdings ApS, 8.88%, 5/01/16 (b)		90		94,500
Qwest Communications International, Inc.:
7.50%, 2/15/14		910		927,062
8.00%, 10/01/15 (b)		300		322,500
Series B, 7.50%, 2/15/14		540		550,125
Qwest Corp., 8.38%, 5/01/16		350		407,750
Wind Acquisition Finance SA, 12.00%, 12/01/15 (b)		850		896,750
Windstream Corp.:
8.13%, 8/01/13		112		119,420
8.63%, 8/01/16		205		211,663
7.88%, 11/01/17		253		256,795
				6,084,840
Corporate Bonds	Par (000)		Value
Electric Utilities — 0.6%
Elwood Energy LLC, 8.16%, 7/05/26	USD	384	$	353,579
Salton Sea Funding Corp., Series E, 8.30%, 5/30/11		375		382,826
				736,405
Energy Equipment & Services — 2.0%
Compagnie Générale de Géophysique-Veritas:
7.50%, 5/15/15		645		638,550
7.75%, 5/15/17		220		218,350
Expro Finance Luxembourg SCA, 8.50%, 12/15/16 (b)		900		841,500
Global Geophysical Services, Inc., 10.50%, 5/01/17 (b)		145		143,550
North American Energy Alliance LLC, 10.88%, 6/01/16 (b)		310		334,800
Thermon Industries, Inc., 9.50%, 5/01/17 (b)		255		261,375
				2,438,125
Food & Staples Retailing — 0.6%
Rite Aid Corp.:
9.75%, 6/12/16		195		207,188
10.25%, 10/15/19		290		297,975
8.00%, 8/15/20 (b)		240		238,500
				743,663
Food Products — 0.5%
B&G Foods, Inc., 7.63%, 1/15/18		100		102,875
Reddy Ice Corp., 11.25%, 3/15/15 (b)		210		212,888
Smithfield Foods, Inc., 10.00%, 7/15/14 (b)		200		223,250
TreeHouse Foods, Inc., 7.75%, 3/01/18		70		74,025
				613,038
Health Care Equipment & Supplies — 1.4%
DJO Finance LLC, 10.88%, 11/15/14		1,135		1,215,869
Hologic, Inc., 2.00%, 12/15/37 (d)(g)		470		424,762
				1,640,631
Health Care Providers & Services — 4.9%
American Renal Holdings, 8.38%, 5/15/18 (b)		130		130,000
Gentiva Health Services, Inc., 11.50%, 9/01/18 (b)		325		336,375
HCA, Inc.:
9.13%, 11/15/14		620		651,000
8.50%, 4/15/19		465		509,756
7.25%, 9/15/20		1,295		1,353,275
inVentiv Health Inc., 10.00%, 8/15/18 (b)		300		293,250
Omnicare, Inc., 7.75%, 6/01/20		230		230,000
Tenet Healthcare Corp.:
9.00%, 5/01/15		747		795,555
10.00%, 5/01/18		257		289,125
8.88%, 7/01/19		1,175		1,270,469
				5,858,805
Health Care Technology — 1.1%
IMS Health, Inc., 12.50%, 3/01/18 (b)		1,125		1,303,594
Hotels, Restaurants & Leisure — 1.7%
Diamond Resorts Corp., 12.00%, 8/15/18 (b)		550		519,750
Harrah’s Operating Co., Inc., 11.25%, 6/01/17		310		331,700
MGM Mirage, 13.00%, 11/15/13		30		34,650
MGM Resorts International:
10.38%, 5/15/14		125		136,250
11.13%, 11/15/17		390		435,825
Marina District Finance Co., Inc., 9.88%, 8/15/18 (b)		170		169,575
Travelport LLC:
5.16%, 9/01/14 (f)		75		69,562
9.88%, 9/01/14		100		102,250
Tropicana Entertainment LLC, Series WI, 9.63%, 12/15/14 (a)(h)		215		157

See Notes to Financial Statements.
42	ANNUAL REPORT	AUGUST 31, 2010

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

Corporate Bonds	Par (000)		Value
Hotels, Restaurants & Leisure (concluded)
Virgin River Casino Corp., 9.00%, 1/15/12 (a)(h)	USD	585	$	263,250
				2,062,969
Household Durables — 2.9%
Beazer Homes USA, Inc.:
6.88%, 7/15/15		85		73,525
8.13%, 6/15/16		145		126,875
12.00%, 10/15/17		720		810,900
9.13%, 6/15/18		915		809,775
Ryland Group Inc., 6.63%, 5/01/20		315		295,312
Standard Pacific Corp.:
9.25%, 4/15/12		60		61,575
6.25%, 4/01/14		50		46,625
7.00%, 8/15/15		65		59,800
10.75%, 9/15/16		890		936,725
8.38%, 5/15/18		270		259,875
				3,480,987
IT Services — 0.5%
iPayment, Inc., 9.75%, 5/15/14		335		302,756
iPayment Investors LP, 12.75%, 7/15/14 (b)(c)		275		235,047
				537,803
Independent Power Producers & Energy Traders — 3.0%
AES Red Oak LLC, Series B, 9.20%, 11/30/29		1,250		1,250,000
Calpine Construction Finance Co. LP, 8.00%, 6/01/16 (b)		600		630,000
Energy Future Holdings Corp., 10.00%, 1/15/20 (b)		1,460		1,405,984
Energy Future Intermediate Holding Co. LLC, 10.00%, 12/01/20		81		77,840
NRG Energy, Inc.:
7.25%, 2/01/14		175		178,500
7.38%, 2/01/16		35		35,263
7.38%, 1/15/17		55		55,412
				3,632,999
Industrial Conglomerates — 2.5%
Sequa Corp. (b):
11.75%, 12/01/15		1,060		1,091,800
13.50%, 12/01/15 (c)		1,770		1,840,323
				2,932,123
Insurance — 0.9%
Alliant Holdings I, Inc., 11.00%, 5/01/15 (b)		800		821,000
USI Holdings Corp., 4.25%, 11/15/14 (b)(f)		310		262,725
				1,083,725
Life Sciences Tools & Services — 0.2%
Patheon, Inc., 8.63%, 4/15/17 (b)		270		268,988
Machinery — 1.9%
AGY Holding Corp., 11.00%, 11/15/14		700		595,000
Accuride Corp., 7.50%, 2/26/20 (c)(d)		6		15,099
Navistar International Corp.:
3.00%, 10/15/14 (d)		860		938,475
8.25%, 11/01/21		500		523,750
Oshkosh Corp., 8.25%, 3/01/17		70		73,675
Titan International, Inc., 5.63%, 1/15/17 (b)(d)		110		130,900
				2,276,899
Marine — 0.5%
Horizon Lines, Inc., 4.25%, 8/15/12 (d)		700		588,000
Media — 14.1%
Affinion Group, Inc.:
10.13%, 10/15/13		1,395		1,429,875
10.13%, 10/15/13		295		301,638
Corporate Bonds	Par (000)		Value
Media (concluded)
CCH II LLC, 13.50%, 11/30/16	USD	457	$	541,714
CCO Holdings LLC (b):
7.88%, 4/30/18		220		227,700
8.13%, 4/30/20		220		231,550
CMP Susquehanna Corp., 3.64%, 5/15/14 (b)(f)		69		1,380
CSC Holdings, Inc., 8.50%, 4/15/14		180		196,650
Clear Channel Worldwide Holdings, Inc.:
9.25%, 12/15/17		391		405,663
Series B, 9.25%, 12/15/17		1,986		2,082,817
Cox Enterprises, Inc.:
Loan Close 2, 4.00%, 8/15/18		303		302,633
Loan Close 3, 8/15/18		350		350,000
Shares Loan, 4.00%, 8/15/18		357		356,844
DISH DBS Corp., 7.00%, 10/01/13		192		199,920
Gray Television, Inc., 10.50%, 6/29/15		205		197,313
Harland Clarke Holdings Corp.:
6.00%, 5/15/15 (f)		160		134,400
9.50%, 5/15/15		190		180,975
Intelsat Corp., 9.25%, 6/15/16		1,010		1,070,600
Interactive Data Corp., 10.25%, 8/01/18 (b)		480		498,000
Liberty Global, Inc., 4.50%, 11/15/16 (b)(d)		220		269,500
Lighthouse International Co. SA:
8.00%, 4/30/14	EUR	50		37,384
8.00%, 4/30/14 (b)		100		74,768
Live Nation Entertainment, Inc., 8.13%, 5/15/18 (b)	USD	300		289,500
McClatchy Co., 11.50%, 2/15/17 (b)		650		671,125
Nielsen Finance LLC:
11.63%, 2/01/14		110		123,338
10.00%, 8/01/14		970		1,018,500
ProtoStar I Ltd., 18.00%, 10/15/12 (a)(b)(d)(h)		1,427		1,356,036
Rainbow National Services LLC, 10.38%, 9/01/14 (b)		1,813		1,880,987
Regal Entertainment Group, 9.13%, 8/15/18		155		158,875
TL Acquisitions, Inc., 10.50%, 1/15/15 (b)		630		601,650
UPC Holding BV, 9.88%, 4/15/18 (b)		300		312,375
Unitymedia GmbH:
9.63%, 12/01/19	EUR	100		132,744
9.63%, 12/01/19 (b)		245		325,224
Unitymedia Hessen GmbH & Co. KG (b):
8.13%, 12/01/17	USD	425		436,687
8.13%, 12/01/17	EUR	175		226,204
Ziggo Bond Co. BV, 8.00%, 5/15/18 (b)		175		225,095
				16,849,664
Metals & Mining — 3.2%
AK Steel Corp., 7.63%, 5/15/20	USD	30		30,225
Aleris International, Inc. (a)(h):
9.00%, 12/15/14		200		400
10.00%, 12/15/16		680		258
Drummond Co., Inc.:
9.00%, 10/15/14 (b)		400		418,500
7.38%, 2/15/16		105		105,131
FMG Finance Property Ltd. (b):
10.00%, 9/01/13		240		264,300
10.63%, 9/01/16		670		776,362
Goldcorp, Inc., 2.00%, 8/01/14 (d)		220		267,575
McJunkin Red Man Corp., 9.50%, 12/15/16 (b)		280		247,100
Murray Energy Corp., 10.25%, 10/15/15 (b)		245		250,513
Novelis, Inc., 11.50%, 2/15/15		325		357,500
Ryerson, Inc.:
7.84%, 11/01/14 (f)		180		166,950
12.00%, 11/01/15		100		102,875
Steel Dynamics, Inc., 7.38%, 11/01/12		220		233,750
United States Steel Corp., 7.38%, 4/01/20		245		248,063
Vedanta Resources Plc, 9.50%, 7/18/18 (b)		295		309,750
				3,779,252

See Notes to Financial Statements.
	ANNUAL REPORT	AUGUST 31, 2010	43

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

Corporate Bonds	Par (000)		Value
Multiline Retail — 2.5%
Dollar General Corp.:
10.63%, 7/15/15	USD	638	$	700,205
11.88%, 7/15/17 (c)		2,020		2,323,000
				3,023,205
Oil, Gas & Consumable Fuels — 8.6%
Arch Coal, Inc.:
8.75%, 8/01/16		25		27,063
7.25%, 10/01/20		400		406,000
Atlas Energy Operating Co. LLC:
12.13%, 8/01/17		225		258,469
10.75%, 2/01/18		120		132,300
Berry Petroleum Co., 8.25%, 11/01/16		275		277,750
Bill Barrett Corp., 9.88%, 7/15/16		20		21,700
Chesapeake Energy Corp.:
6.50%, 8/15/17		235		238,525
6.63%, 8/15/20		1,090		1,094,087
2.25%, 12/15/38 (d)		375		280,781
Coffeyville Resources LLC, 9.00%, 4/01/15 (b)		135		138,713
Connacher Oil and Gas Ltd. (b):
11.75%, 7/15/14		85		92,225
10.25%, 12/15/15		520		520,000
Consol Energy, Inc., 8.25%, 4/01/20 (b)		920		976,350
Crosstex Energy LP, 8.88%, 2/15/18		190		196,175
Denbury Resources, Inc.:
7.50%, 12/15/15		75		77,250
8.25%, 2/15/20		348		371,490
Linn Energy LLC, 8.63%, 4/15/20 (b)		515		543,325
Massey Energy Co., 6.88%, 12/15/13		435		440,437
Niska Gas Storage US LLC, 8.88%, 3/15/18 (b)		875		920,937
OPTI Canada, Inc. (b):
9.00%, 12/15/12		820		822,050
9.75%, 8/15/13		480		474,000
Patriot Coal Corp., 8.25%, 4/30/18		190		188,575
Peabody Energy Corp., 6.50%, 9/15/20		500		525,625
Petrohawk Energy Corp.:
10.50%, 8/01/14		275		307,312
7.88%, 6/01/15		210		217,875
QEP Resources, Inc., 6.88%, 3/01/21		195		203,288
Range Resources Corp., 8.00%, 5/15/19		200		214,000
Teekay Corp., 8.50%, 1/15/20		300		320,250
				10,286,552
Paper & Forest Products — 2.6%
Boise Paper Holdings LLC:
9.00%, 11/01/17		155		163,137
8.00%, 4/01/20		70		71,225
Clearwater Paper Corp., 10.63%, 6/15/16		185		208,125
Georgia-Pacific LLC, 8.25%, 5/01/16 (b)		755		826,725
Glatfelter, 7.13%, 5/01/16 (b)		100		100,625
NewPage Corp., 11.38%, 12/31/14		1,490		1,210,625
Norske Skog Canada Ltd., 7.38%, 3/01/14		175		70,000
Verso Paper Holdings LLC, 11.50%, 7/01/14		405		427,275
				3,077,737
Pharmaceuticals — 0.8%
Angiotech Pharmaceuticals, Inc., 4.29%, 12/01/13 (f)		495		399,712
Elan Finance Plc, 8.88%, 12/01/13		75		75,563
Novasep Holding SAS, 9.75%, 12/15/16 (b)		473		431,258
				906,533
Professional Services — 0.2%
FTI Consulting, Inc., 7.75%, 10/01/16		275		285,313

Corporate Bonds	Par (000)		Value
Road & Rail — 0.5%
Avis Budget Car Rental LLC, 9.63%, 3/15/18	USD	240	$	250,800
Syncreon Global Ireland Ltd., 9.50%, 5/01/18 (b)		380		371,450
				622,250
Semiconductors & Semiconductor Equipment — 0.2%
Advanced Micro Devices, Inc.:
6.00%, 5/01/15 (d)		67		65,576
7.75%, 8/01/20 (b)		135		133,650
				199,226
Software — 0.0%
BMS Holdings, Inc., 8.59%, 2/15/12 (b)(c)(f)		239		4,771
Specialty Retail — 1.4%
Group 1 Automotive, Inc., 2.25%, 6/15/36 (d)(g)		470		357,787
Hillman Group, Inc., 10.88%, 6/01/18 (b)		250		263,125
Limited Brands, Inc., 8.50%, 6/15/19		70		79,100
Sonic Automotive, Inc., 9.00%, 3/15/18		175		178,063
Toys ‘R’ Us-Delaware, Inc., 7.38%, 9/01/16 (b)		200		202,000
United Auto Group, Inc., 7.75%, 12/15/16		655		625,525
				1,705,600
Textiles, Apparel & Luxury Goods — 0.2%
Quiksilver, Inc., 6.88%, 4/15/15		210		194,250
Tobacco — 0.1%
Vector Group Ltd., 11.00%, 8/15/15		150		152,813
Wireless Telecommunication Services — 5.2%
Cricket Communications, Inc.:
10.00%, 7/15/15		810		848,475
7.75%, 5/15/16		320		330,400
Digicel Group Ltd. (b):
8.88%, 1/15/15		370		372,775
9.13%, 1/15/15 (c)		1,220		1,226,100
8.25%, 9/01/17		420		436,275
10.50%, 4/15/18		200		214,500
FiberTower Corp., 9.00%, 1/01/16 (c)		147		124,534
iPCS, Inc., 2.59%, 5/01/13 (f)		330		308,550
MetroPCS Wireless, Inc., 9.25%, 11/01/14		1,085		1,128,400
Nextel Communications, Inc.:
Series E, 6.88%, 10/31/13		500		498,750
Series F, 5.95%, 3/15/14		50		48,313
Sprint Capital Corp., 6.88%, 11/15/28		750		626,250
				6,163,322
Total Corporate Bonds — 98.7%				118,056,960
Floating Rate Loan Interests (f)
Auto Components — 0.8%
Allison Transmission, Inc., Term Loan, 3.04%, 8/07/14		1,006		927,169
Automobiles — 1.3%
Ford Motor Co., Tranche B-1 Term Loan, 3.03%, 12/15/13		1,662		1,598,424
Building Products — 1.2%
CPG International I, Inc., Term Loan, 5.54%, 4/30/12		1,470		1,469,849
Chemicals — 0.6%
Tronox Worldwide LLC:
Tranche B-1 Term Loan, 11.25%, 9/20/10		552		556,248
Tranche B-2 Term Loan, 11.25%, 9/20/10		148		149,439
				705,687

See Notes to Financial Statements.
44	ANNUAL REPORT	AUGUST 31, 2010

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

Floating Rate Loan Interests (f)	Par (000)			Value
Commercial Services & Supplies — 1.1%
AWAS Finance Luxembourg Sarl, Term Loan B, 7.75%, 6/10/16	USD	500		$	502,916
Delos Aircraft, Inc., Term Loan 2, 7.00%, 3/17/16		325			326,761
International Lease Finance Corp. (Delos Aircraft, Inc.) Term Loan 1, 6.75%, 3/17/15		450			453,563
					1,283,240
Consumer Finance — 1.8%
AGFS Funding Co., Term Loan, 7.25%, 4/21/15		2,000			1,976,250
DaimlerChrysler Financial Services Americas LLC, Term Loan (Second Lien), 6.78%, 8/05/13		113			112,101
					2,088,351
Diversified Telecommunication Services — 0.6%
Wind Finance SL SA, Euro Facility (Second Lien), 7.89%, 12/17/14	EUR	600			758,806
Electric Utilities — 0.6%
New Development Holdings LLC, Term Loan, 7.00%, 7/03/17	USD	675			681,750
Health Care Providers & Services — 0.8%
Harden Healthcare:
Add-on Term Loan, 7.75%, 3/02/15		300			294,000
Tranche A Term Loan, 8.50%, 3/02/15		223			218,495
inVentiv Health Inc. (FKA Ventive Health Inc.), Term Loan B, 6.50%, 7/31/16		400			399,250
					911,745
Hotels, Restaurants & Leisure — 1.7%
Travelport LLC (FKA Travelport, Inc.), Loan, 8.37%, 3/27/12 (c)		2,186			2,032,823
IT Services — 0.4%
First Data Corp.:
Initial Tranche B-2 Term Loan, 3.01%, 9/24/14		192			163,826
Initial Tranche B-3 Term Loan, 3.01%, 9/24/14		422			359,797
					523,623
Independent Power Producers & Energy Traders — 1.0%
Texas Competitive Electric Holdings Co., LLC (TXU):
Initial Tranche B-2 Term Loan, 3.79% – 4.07%, 10/10/14		89			67,717
Initial Tranche B-3 Term Loan, 3.79% – 4.03%, 10/10/14		1,459			1,099,533
					1,167,250
Media — 1.6%
Cengage Learning Acquisitions, Inc. (Thomson Learning), Tranche 1 Incremental Term Loan, 7.50%, 7/03/14		735			732,550
HMH Publishing Co., Ltd. (FKA Education Media), Tranche A Term Loan, 5.80%, 6/12/14 (c)		434			395,526
Newsday, LLC, Fixed Rate Term Loan, 10.50%, 8/01/13		750			795,938
					1,924,014
Multiline Retail — 0.1%
The Neiman Marcus Group, Inc., Term Loan, 2.29% – 2.54%, 4/06/13		117			111,303
Oil, Gas & Consumable Fuels — 0.7%
Turbo Beta Ltd., Dollar Facility, 2.50% – 14.50%, 3/15/18 (c)		1,055			836,318
Paper & Forest Products — 0.2%
Verso Paper Finance Holdings LLC, Loan, 6.70% – 7.45%, 2/01/13		483			289,584
Floating Rate Loan Interests (f)	Par (000)			Value
Real Estate Management & Development — 0.4%
Realogy Corp., Second Lien Term Facility, 13.50%, 10/15/17	USD	500		$	527,500
Specialty Retail — 0.2%
Claire’s Stores, Inc., Term Loan B, 3.05%, 5/29/14		74			63,079
Michaels Stores, Inc., Term Loan B-1, 2.63% – 2.81%, 10/31/13		165			156,069
					219,148
Wireless Telecommunication Services — 0.6%
Vodafone Group Plc, Revolving Credit, 6.88%, 7/30/15		750			750,000
Total Floating Rate Loan Interests — 15.7%					18,806,584
Other Interests (i)	Beneficial Interest (000)
Auto Components — 0.3%
Delphi Debtor-in-Possession Holding Co. LLP, Class B Membership Interests		—	(j)		374,153
Health Care Providers & Services — 0.0%
Critical Care Systems International, Inc.		5			953
Total Other Interests — 0.3%					375,106
Preferred Securities
Preferred Stocks	Shares
Diversified Financial Services — 1.1%
Ally Financial Inc., 7.00% (b)		1,521			1,256,394
Media — 0.2%
CMP Susquehanna Radio Holdings Corp., 0.00% (a)(b)(f)		16,138			—
Emmis Communications Corp., Series A, 6.25% (a)(d)		10,300			180,250
					180,250
Real Estate Investment Trusts (REITs) — 0.0%
MPG Office Trust, Inc., Series A, 7.63% (a)		4,171			45,005
Specialty Retail — 0.3%
Lazydays RV Center, Inc., 0.00% (a)		350			417,114
Thrifts & Mortgage Finance — 0.0%
Fannie Mae, Series O, 0.00% (a)		10,000			4,100
Freddie Mac, Series Z, 8.38% (a)		31,930			10,537
					14,637
Total Preferred Securities — 1.6%					1,913,400
Warrants (k)
Media — 0.0%
CMP Susquehanna Radio Holdings Corp. (Expires 3/26/19) (b)		18,441			—
Oil, Gas & Consumable Fuels — 0.0%
Turbo Cayman Ltd. (No Expiration)		1			—
Software — 0.0%
HMH Holdings/EduMedia (Expires 3/09/17)		3,476			—
Total Warrants — 0.0%					—
Total Long-Term Investments (Cost — $141,582,716) — 117.5%					140,611,611

See Notes to Financial Statements.
	ANNUAL REPORT	AUGUST 31, 2010	45

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

	Short-Term Securities	Shares	Value
	BlackRock Liquidity Funds, TempFund, Institutional Class, 0.25% (l)(m)	2,032,818	$	2,032,818
	Total Short-Term Securities (Cost — $2,032,818) — 1.7%			2,032,818
	Total Investments (Cost — $143,615,534*) — 119.2%			142,644,429
	Liabilities in Excess of Other Assets — (19.2)%			(23,002,738	)
	Net Assets — 100.0%		$	119,641,691
*	The cost and unrealized appreciation (depreciation) of investments as of August 31, 2010, as computed for federal income tax purposes, were as follows:
	Aggregate cost		$	143,737,652
	Gross unrealized appreciation		$	6,221,884
	Gross unrealized depreciation			(7,315,107	)
	Net unrealized depreciation		$	(1,093,223	)

(a)	Non-income producing security.
(b)	Security exempt from registration under Rule 144A of the Securities Act of 1933.
	These securities may be resold in transactions exempt from registration to qualified institutional investors.
(c)	Represents a payment-in-kind security which may pay interest/dividends in additional face/shares.
(d)	Convertible security.
(e)	Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(f)	Variable rate security. Rate shown is as of report date.
(g)	Represents a step-down bond that pays an initial coupon rate for the first period and then a lower coupon rate for the following periods. Rate shown is as of report date.
(h)	Issuer filed for bankruptcy and/or is in default of interest payments.
(i)	Other interests represent beneficial interest in liquidation trusts and other reorganization entities and are non-income producing.
(j)	Amount is less than $1,000.
(k)	Warrants entitle the Trust to purchase a predetermined number of shares of common stock and are non-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date, if any.
(l)	Investments in companies considered to be an affiliate of the Trust during the year, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

	Affiliate	Shares Held at August 31, 2009	Net Activity	Shares Held at August 31, 2010	Income
	BlackRock Liquidity Funds, TempFund, Institutional Class	1,250,194	782,624	2,032,818	$	2,933
(m)	Represents the current yield as of report date.
•	Foreign currency exchange contracts as of August 31, 2010 were as follows:

Currency Purchased		Currency Sold		Counterparty	Settlement Date	Unrealized Appreciation (Depreciation)
EUR	42,000	USD	53,174	Citibank NA	9/15/10	$	49
USD	4,420,402	EUR	3,490,500	Citibank NA	9/15/10		(2,840	)
USD	148,180	EUR	115,000	Deutsche Bank AG	9/15/10		2,449
Total						$	(342	)

•	Financial futures contracts sold as of August 31,2010 were as follows:
	Contracts	Issue	Exchange	Expiration Date	Notional Value		Unrealized Appreciation
	9	S&P 500 Index	Chicago Mercantile	September 2010	$	2,404,153	$	45,478

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

• Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivatives, which are as follows:

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

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following tables summarize the inputs used as of August 31, 2010 in determining the fair valuation of the Trust’s investments and derivatives:

Valuation Inputs	Level 1		Level 2		Level 3			Total
Assets:
Investments in Securities:
Long-Term Investments:
Common Stocks	$	1,114,736	$	61,362	$	283,463		$	1,459,561
Corporate Bonds		—		114,986,268		3,070,692			118,056,960
Floating Rate Loan Interests		—		13,615,526		5,191,058			18,806,584
Other interests		—		374,153		953			375,106
Preferred Securities		1,496,286		—		417,114			1,913,400
Short-Term Securities		2,032,818		—		—			2,032,818
Liabilities:
Unfunded Loan Commitments		—		—		(2,026	)		(2,026	)
Total	$	4,643,840	$	129,037,309	$	8,961,254		$	142,642,403

See Notes to Financial Statements.
46	ANNUAL REPORT	AUGUST 31, 2010

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

	Derivative Financial Instruments1
Valuation Inputs	Level 1		Level 2			Level 3		Total
Assets:
Foreign currency exchange contracts		—	$	2,498			—	$	2,498
Equity contracts	$	45,478		—			—		45,478
Liabilities:
Foreign currency exchange contracts		—		(2,840	)		—		(2,840	)
Total	$	45,478	$	(342	)		—	$	45,136

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.

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

	Common Stocks		Corporate Bonds			Floating Rate Loan Interests			Other Interests		Preferred Stocks		Unfunded Loan Commitments			Total
Assets/Liabilities:
Balance, as of August 31, 2009		—	$	2,463,780		$	8,875,772		$	953		—		—		$	11,340,505
Accrued discounts/premiums		—		2,965			41,176			—		—		—			44,141
Net realized gain (loss)		—		(422,836	)		(1,747,316	)		—		—		—			(2,170,152	)
Net change in unrealized appreciation/depreciation2		—		4,929,227			4,543,962			—		—	$	(2,026	)		9,471,163
Purchases		—		223,025			2,535,753			—		—		—			2,758,778
Sales		—		(5,603,699	)		(7,633,681	)		—		—		—			(13,237,380	)
Transfers in3	$	283,463		1,713,276			2,973,020			—	$	417,114		—			5,386,873
Transfers out3		—		(235,046	)		(4,397,628	)		—		—		—			(4,632,674	)
Balance, as of August 31, 2010	$	283,463	$	3,070,692		$	5,191,058		$	953	$	417,114	$	(2,026	)	$	8,961,254

2	Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations. The net change in unrealized appreciation/depreciation on securities still held at August 31, 2010 was $2,064,289.
3	The Trust’s policy is to recognize transfers in and transfers out as of the end of the period of the event or the change in circumstances that caused the transfer.

See Notes to Financial Statements.
	ANNUAL REPORT	AUGUST 31, 2010	47

Schedule of Investments August 31, 2010	BlackRock High Yield Trust (BHY)
	(Percentages shown are based on Net Assets)

Common Stocks (a)	Shares		Value
Building Products — 0.2%
Masonite Worldwide Holdings		2,527	$	96,026
Capital Markets — 0.2%
E*Trade Financial Corp.		4,900		60,809
Construction Materials — 0.0%
Nortek, Inc.		375		15,562
Machinery — 0.0%
Accuride Corp.		13,902		15,292
Paper & Forest Products — 0.0%
Ainsworth Lumber Co. Ltd.		2,234		5,237
Ainsworth Lumber Co. Ltd. (b)		2,507		5,878
				11,115
Software — 0.2%
HMH Holdings/EduMedia		13,732		68,660
Specialty Retail — 0.1%
Lazydays RV Center, Inc.		3,395		17,350
Total Common Stocks — 0.7%				284,814
Corporate Bonds	Par (000)
Aerospace & Defense — 0.0%
L-3 Communications Corp., 5.88%, 1/15/15	$	10		10,188
Air Freight & Logistics — 0.6%
National Air Cargo Group, Inc.:
Series 1, 12.38%, 8/16/15		125		125,000
Series 2, 12.38%, 8/16/15		125		125,000
				250,000
Airlines — 1.4%
Air Canada (b):
9.25%, 8/01/15		180		176,400
12.00%, 2/01/16		50		46,750
American Airlines Pass-Through Trust, Series 2001-02, 7.86%, 4/01/13		20		20,930
Continental Airlines, Inc., 6.75%, 9/15/15 (b)		90		89,100
United Air Lines, Inc., 12.75%, 7/15/12		248		276,297
				609,477
Auto Components — 2.2%
Delphi International Holdings Unsecured, 12.00%, 10/06/14		8		7,503
The Goodyear Tire & Rubber Co.:
8.25%, 8/15/20		70		71,663
8.75%, 8/15/20		20		21,150
Icahn Enterprises LP, 8.00%, 1/15/18		650		646,750
Stanadyne Corp., Series 1, 10.00%, 8/15/14		90		85,050
Tenneco, Inc., 7.75%, 8/15/18 (b)		90		91,800
				923,916
Beverages — 0.1%
Cott Beverages USA, Inc., 8.13%, 9/01/18 (b)		43		44,236
Biotechnology — 0.3%
QHP Pharma, 10.25%, 3/15/15 (b)		108		110,299
Building Products — 1.6%
Associated Materials LLC, 9.88%, 11/15/16		80		84,800
Building Materials Corp. of America, 6.88%, 8/15/18 (b)		90		87,525
CPG International I, Inc., 10.50%, 7/01/13		150		149,813
Momentive Performance Materials, Inc., Series WI, 9.75%, 12/01/14		125		122,031
Ply Gem Industries, Inc., 11.75%, 6/15/13		230		236,900
				681,069
Corporate Bonds	Par (000)		Value
Capital Markets — 0.6%
E*Trade Financial Corp., Series A, 2.51%, 8/31/19 (c)(d)	$	71	$	85,200
Marsico Parent Co., LLC, 10.63%, 1/15/16 (b)		154		56,980
Marsico Parent Holdco, LLC, 12.50%, 7/15/16 (b)(e)		72		6,465
Marsico Parent Superholdco, LLC, 14.50%, 1/15/18 (b)(e)		43		3,901
Offshore Group Investments Ltd., 11.50%, 8/01/15 (b)		85		84,787
				237,333
Chemicals — 4.4%
American Pacific Corp., 9.00%, 2/01/15		140		138,425
Ames True Temper, Inc., 4.53%, 1/15/12 (f)		265		264,337
CF Industries, Inc.:
6.88%, 5/01/18		70		73,675
7.13%, 5/01/20		130		139,425
Chemtura Corp., 7.88%, 9/01/18 (b)		90		91,913
Georgia Gulf Corp., 9.00%, 1/15/17 (b)		30		31,088
Hexion U.S. Finance Corp.:
9.75%, 11/15/14		135		132,637
8.88%, 2/01/18		130		120,250
Huntsman International LLC, 8.63%, 3/15/20 (b)		40		39,650
Ineos Finance Plc, 9.00%, 5/15/15 (b)		100		101,125
Innophos, Inc., 8.88%, 8/15/14		545		558,625
MacDermid, Inc., 9.50%, 4/15/17 (b)		195		197,681
				1,888,831
Commercial Banks — 3.0%
CIT Group, Inc.:
7.00%, 5/01/16		305		289,750
7.00%, 5/01/17		1,075		1,010,835
				1,300,585
Commercial Services & Supplies — 1.0%
ACCO Brands Corp., 10.63%, 3/15/15		45		49,500
RSC Equipment Rental, Inc., 10.00%, 7/15/17 (b)		100		109,000
Scientific Games International, Inc., 9.25%, 6/15/19		30		31,800
West Corp., 11.00%, 10/15/16		210		220,500
				410,800
Construction Materials — 0.9%
Nortek, Inc., 11.00%, 12/01/13		377		396,912
Consumer Finance — 2.3%
Credit Acceptance Corp., 9.13%, 2/01/17 (b)		120		124,350
Ford Motor Credit Co. LLC:
3.28%, 1/13/12 (f)		110		107,800
7.80%, 6/01/12		500		526,171
6.63%, 8/15/17		230		233,766
				992,087
Containers & Packaging — 3.4%
Ball Corp., 6.75%, 9/15/20		85		89,462
Berry Plastics Corp.:
8.88%, 9/15/14		140		133,350
8.25%, 11/15/15		25		25,063
9.50%, 5/15/18 (b)		105		96,600
Berry Plastics Holding Corp., 8.88%, 9/15/14		330		314,325
Crown Americas LLC, 7.75%, 11/15/15		85		88,187
Graphic Packaging International, Inc., 9.50%, 6/15/17		160		170,400
Impress Holdings BV, 3.65%, 9/15/13 (b)(f)		270		255,150
Pregis Corp., 12.38%, 10/15/13		310		310,000
				1,482,537
Diversified Financial Services — 6.3%
Ally Financial Inc.:
8.30%, 2/12/15 (b)		350		364,000
7.50%, 9/15/20 (b)		310		306,900
8.00%, 11/01/31		120		118,200

See Notes to Financial Statements.
48	ANNUAL REPORT	AUGUST 31, 2010

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

Corporate Bonds	Par (000)		Value
Diversified Financial Services (concluded)
Axcan Intermediate Holdings, Inc., 12.75%, 3/01/16	$	165	$	165,206
CDX North America High Yield, Series 6-T1, 8.63%, 6/29/11 (b)		435		457,272
GMAC, Inc.:
2.74%, 12/01/14 (f)		73		62,760
8.00%, 3/15/20 (b)		500		512,500
Leucadia National Corp.:
8.13%, 9/15/15		200		213,000
7.13%, 3/15/17		110		110,275
Reynolds Group DL Escrow, Inc., 7.75%, 10/15/16 (b)		250		251,875
Reynolds Group Issuer, Inc., 8.50%, 5/15/18 (b)		130		124,800
				2,686,788
Diversified Telecommunication Services — 5.0%
Asia Global Crossing Ltd., 13.38%, 10/15/10 (a)(g)		2,000		2,500
Broadview Networks Holdings, Inc., 11.38%, 9/01/12		195		191,100
Frontier Communications Corp.:
7.88%, 4/15/15		100		105,500
8.25%, 4/15/17		100		105,750
8.50%, 4/15/20		70		74,288
GCI, Inc., 8.63%, 11/15/19		200		210,000
Qwest Communications International, Inc.:
7.50%, 2/15/14		685		697,844
8.00%, 10/01/15 (b)		100		107,500
Series B, 7.50%, 2/15/14		235		239,406
Qwest Corp., 8.38%, 5/01/16		140		163,100
Wind Acquisition Finance SA, 12.00%, 12/01/15 (b)		150		158,250
Windstream Corp.:
8.13%, 8/01/13		25		26,656
8.63%, 8/01/16		50		51,625
7.88%, 11/01/17		25		25,375
				2,158,894
Electric Utilities — 0.8%
Elwood Energy LLC, 8.16%, 7/05/26		381		350,750
Energy Equipment & Services — 2.0%
Compagnie Généralé de Géophysique-Veritas:
7.50%, 5/15/15		235		232,650
7.75%, 5/15/17		80		79,400
Expro Finance Luxembourg SCA, 8.50%, 12/15/16 (b)		290		271,150
Global Geophysical Services, Inc., 10.50%, 5/01/17 (b)		50		49,500
Hornbeck Offshore Services, Inc., Series B, 6.13%, 12/01/14		5		4,688
North American Energy Alliance LLC, 10.88%, 6/01/16 (b)		115		124,200
Thermon Industries, Inc., 9.50%, 5/01/17 (b)		90		92,250
				853,838
Food & Staples Retailing — 0.3%
Rite Aid Corp., 10.25%, 10/15/19		120		123,300
Food Products — 0.2%
Smithfield Foods, Inc., 10.00%, 7/15/14 (b)		60		66,975
Health Care Equipment & Supplies — 1.4%
DJO Finance LLC, 10.88%, 11/15/14		410		439,212
Hologic, Inc., 2.00%,12/15/37 (d)(h)		170		153,638
				592,850
Health Care Providers & Services — 4.8%
American Renal Holdings, 8.38%, 5/15/18 (b)		50		50,000
Gentiva Health Services, Inc., 11.50%, 9/01/18 (b)		115		119,025
HCA, Inc.:
9.13%, 11/15/14		265		278,250
8.50%, 4/15/19		205		224,731
7.25%, 9/15/20		340		355,300
Corporate Bonds	Par (000)		Value
Health Care Providers & Services (concluded)
inVentiv Health Inc., 10.00%, 8/15/18 (b)	$	95	$	92,863
Omnicare, Inc., 7.75%, 6/01/20		85		85,000
Tenet Healthcare Corp.:
9.00%, 5/01/15		279		297,135
10.00%, 5/01/18		259		291,375
8.88%, 7/01/19		245		264,906
				2,058,585
Health Care Technology — 1.1%
IMS Health, Inc., 12.50%, 3/01/18 (b)		410		475,088
Hotels, Restaurants & Leisure — 2.3%
Diamond Resorts Corp., 12.00%, 8/15/18 (b)		200		189,000
MGM Mirage, 13.00%, 11/15/13		25		28,875
MGM Resorts International, 10.38%, 5/15/14		465		506,850
Marina District Finance Co., Inc., 9.88%, 8/15/18 (b)		60		59,850
Travelport LLC, 5.16%, 9/01/14 (f)		25		23,188
Tropicana Entertainment LLC, Series WI, 9.63%, 12/15/14 (a)(g)		25		18
Virgin River Casino Corp., 9.00%, 1/15/12 (a)(g)		445		200,250
				1,008,031
Household Durables — 2.5%
Beazer Homes USA, Inc.:
6.88%, 7/15/15		35		30,275
8.13%, 6/15/16		50		43,750
12.00%, 10/15/17		40		45,050
9.13%, 6/15/18		395		349,575
Jarden Corp., 8.00%, 5/01/16		40		42,250
Ryland Group Inc., 6.63%, 5/01/20		115		107,812
Standard Pacific Corp.:
9.25%, 4/15/12		20		20,525
6.25%, 4/01/14		10		9,325
7.00%, 8/15/15		25		23,000
10.75%, 9/15/16		300		315,750
8.38%, 5/15/18		90		86,625
				1,073,937
IT Services — 0.7%
iPayment, Inc., 9.75%, 5/15/14		120		108,450
iPayment Investors LP, 12.75%, 7/15/14 (b)(e)		98		83,587
SunGard Data Systems, Inc., 10.63%, 5/15/15		100		110,500
				302,537
Independent Power Producers & Energy Traders — 3.7%
AES Red Oak LLC:
Series A, 8.54%, 11/30/19		109		111,519
Series B, 9.20%, 11/30/29		500		500,000
Calpine Construction Finance Co. LP, 8.00%, 6/01/16 (b)		220		231,000
Energy Future Holdings Corp., 10.00%, 1/15/20 (b)		575		553,727
Energy Future Intermediate Holding Co. LLC, 10.00%, 12/01/20		28		26,907
NRG Energy, Inc.:
7.25%, 2/01/14		115		117,300
7.38%, 2/01/16		25		25,187
7.38%, 1/15/17		40		40,300
				1,605,940
Industrial Conglomerates — 2.3%
Sequa Corp. (b):
11.75%, 12/01/15		350		360,500
13.50%, 12/01/15 (e)		586		609,208
				969,708

See Notes to Financial Statements.
	ANNUAL REPORT	AUGUST 31, 2010	49

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

Corporate Bonds	Par (000)		Value
Insurance — 0.9%
Alliant Holdings I, Inc., 11.00%, 5/01/15 (b)	$	300	$	307,875
USI Holdings Corp., 4.25%, 11/15/14 (b)(f)		100		84,750
				392,625
Life Sciences Tools & Services — 0.2%
Patheon, Inc., 8.63%, 4/15/17 (b)		100		99,625
Machinery — 1.9%
AGY Holding Corp., 11.00%, 11/15/14		170		144,500
Accuride Corp., 7.50%, 2/26/20 (d)(e)		1		3,761
Navistar International Corp.:
3.00%, 10/15/14 (d)		260		283,725
8.25%, 11/01/21		300		314,250
Oshkosh Corp., 8.25%, 3/01/17		30		31,575
Titan International, Inc., 5.63%, 1/15/17 (b)(d)		40		47,600
				825,411
Marine — 0.5%
Horizon Lines, Inc., 4.25%, 8/15/12 (d)		240		201,600
Media — 13.9%
Affinion Group, Inc.:
10.13%, 10/15/13		390		399,750
10.13%, 10/15/13		130		132,925
CCH II LLC, 13.50%, 11/30/16		169		199,675
CMP Susquehanna Corp., 3.64%, 5/15/14 (b)(f)		23		460
CSC Holdings, Inc., 8.50%, 4/15/14		80		87,400
Clear Channel Worldwide Holdings, Inc.:
9.25%, 12/15/17		141		146,288
Series B, 9.25%, 12/15/17		716		750,905
Cox Enterprises, Inc.:
Loan Close 2, 4.00%, 8/15/18		121		121,053
Loan Close 3, 12.00%, 8/15/18		140		140,000
Shares Loan, 4.00%, 8/15/18		143		142,737
DISH DBS Corp., 7.00%, 10/01/13		40		41,650
Gannett Co., Inc., 10.00%, 4/01/16		60		67,054
Gray Television, Inc., 10.50%, 6/29/15		225		216,563
Harland Clarke Holdings Corp.:
6.00%, 5/15/15 (f)		50		42,000
9.50%, 5/15/15		60		57,150
Intelsat Corp., 6.88%, 1/15/28		210		177,450
Interactive Data Corp., 10.25%, 8/01/18 (b)		170		176,375
Liberty Global, Inc., 4.50%, 11/15/16 (b)(d)		70		85,750
Live Nation Entertainment, Inc., 8.13%, 5/15/18 (b)		110		106,150
McClatchy Co., 11.50%, 2/15/17 (b)		355		366,537
Nielsen Finance LLC, 10.00%, 8/01/14		600		630,000
ProtoStar I Ltd., 18.00%, 10/15/12 (a)(b)(d)(g)		414		393,352
Rainbow National Services LLC (b):
8.75%, 9/01/12		310		310,387
10.38%, 9/01/14		378		392,175
Regal Entertainment Group, 9.13%, 8/15/18		55		56,375
TL Acquisitions, Inc., 10.50%, 1/15/15 (b)		225		214,875
Unitymedia Hessen GmbH & Co. KG, 8.13%, 12/01/17 (b)		400		411,000
UPC Holding BV, 9.88%, 4/15/18 (b)		100		104,125
				5,970,161
Metals & Mining — 3.1%
AK Steel Corp., 7.63%, 5/15/20		10		10,075
Aleris International, Inc. (a)(g):
9.00%, 12/15/14		120		240
10.00%, 12/15/16		125		48
Drummond Co., Inc.:
9.00%, 10/15/14 (b)		150		156,937
7.38%, 2/15/16		40		40,050
FMG Finance Property Ltd. (b):
10.00%, 9/01/13		85		93,606
10.63%, 9/01/16		185		214,369
Goldcorp, Inc., 2.00%, 8/01/14 (d)		80		97,300
Corporate Bonds	Par (000)		Value
Metals & Mining (concluded)
McJunkin Red Man Corp., 9.50%, 12/15/16 (b)	$	110	$	97,075
Murray Energy Corp., 10.25%, 10/15/15 (b)		90		92,025
Novelis, Inc., 11.50%, 2/15/15		110		121,000
Ryerson, Inc.:
7.84%, 11/01/14 (f)		60		55,650
12.00%, 11/01/15		70		72,012
Steel Dynamics, Inc., 7.38%, 11/01/12		65		69,063
United States Steel Corp., 7.38%, 4/01/20		90		91,125
Vedanta Resources Plc, 9.50%, 7/18/18 (b)		105		110,250
				1,320,825
Multiline Retail — 2.8%
Dollar General Corp.:
10.63%, 7/15/15		132		144,870
11.88%, 7/15/17 (e)		929		1,068,350
				1,213,220
Oil, Gas & Consumable Fuels — 8.2%
Arch Coal, Inc.:
8.75%, 8/01/16		10		10,825
7.25%, 10/01/20		145		147,175
Atlas Energy Operating Co. LLC:
12.13%, 8/01/17		80		91,900
10.75%, 2/01/18		45		49,613
Berry Petroleum Co., 8.25%, 11/01/16		80		80,800
Bill Barrett Corp., 9.88%, 7/15/16		5		5,425
Chesapeake Energy Corp.:
6.50%, 8/15/17		250		253,750
6.63%, 8/15/20		185		185,694
2.25%, 12/15/38 (d)		125		93,594
Coffeyville Resources LLC, 9.00%, 4/01/15 (b)		50		51,375
Connacher Oil and Gas Ltd. (b):
11.75%, 7/15/14		30		32,550
10.25%, 12/15/15		170		170,000
Consol Energy, Inc., 8.25%, 4/01/20 (b)		335		355,519
Crosstex Energy LP, 8.88%, 2/15/18		70		72,275
Denbury Resources, Inc.:
7.50%, 12/15/15		30		30,900
8.25%, 2/15/20		119		127,032
Frontier Oil Corp., 6.63%, 10/01/11		65		65,162
Linn Energy LLC, 8.63%, 4/15/20 (b)		50		52,750
Massey Energy Co., 6.88%, 12/15/13		155		156,937
Niska Gas Storage US LLC, 8.88%, 3/15/18 (b)		320		336,800
OPTI Canada, Inc. (b):
9.00%, 12/15/12		290		290,725
9.75%, 8/15/13		150		148,125
Overseas Shipholding Group, Inc., 7.50%, 2/15/24		350		301,437
Patriot Coal Corp., 8.25%, 4/30/18		70		69,475
Peabody Energy Corp., 6.50%, 9/15/20		140		147,175
Petrohawk Energy Corp.:
10.50%, 8/01/14		100		111,750
7.88%, 6/01/15		15		15,563
QEP Resources, Inc., 6.88%, 3/01/21		70		72,975
				3,527,301
Paper & Forest Products — 2.7%
Ainsworth Lumber Co. Ltd., 11.00%, 7/29/15 (b)(e)		20		17,313
Boise Paper Holdings LLC:
9.00%, 11/01/17		55		57,888
8.00%, 4/01/20		30		30,525
Clearwater Paper Corp., 10.63%, 6/15/16		70		78,750
Georgia-Pacific LLC, 8.25%, 5/01/16 (b)		285		312,075
Glatfelter, 7.13%, 5/01/16 (b)		35		35,219
NewPage Corp., 11.38%, 12/31/14		535		434,687
Norske Skog Canada Ltd., 7.38%, 3/01/14		120		48,000
Verso Paper Holdings LLC, 11.50%, 7/01/14		150		158,250
				1,172,707

See Notes to Financial Statements.
50	ANNUAL REPORT	AUGUST 31, 2010

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

Corporate Bonds	Par (000)		Value
Pharmaceuticals — 0.4%
Angiotech Pharmaceuticals, Inc., 4.29%, 12/01/13 (f)	$	195	$	157,463
Professional Services — 0.2%
FTI Consulting, Inc., 7.75%, 10/01/16		100		103,750
Road & Rail — 0.2%
Avis Budget Car Rental LLC, 9.63%, 3/15/18		85		88,825
Semiconductors & Semiconductor Equipment — 0.2%
Advanced Micro Devices, Inc.:
6.00%, 5/01/15 (d)		16		15,660
7.75%, 8/01/20 (b)		50		49,500
				65,160
Software — 0.0%
BMS Holdings, Inc., 8.59%, 2/15/12 (b)(e)(f)		87		1,733
Specialty Retail — 1.2%
Asbury Automotive Group, Inc., 7.63%, 3/15/17		60		57,300
Group 1 Automotive, Inc., 2.25%, 6/15/36 (d)(h)		25		19,031
Limited Brands, Inc., 8.50%, 6/15/19		140		158,200
Sonic Automotive, Inc., 9.00%, 3/15/18		65		66,138
Toys ‘R’ Us-Delaware, Inc., 7.38%, 9/01/16 (b)		70		70,700
United Auto Group, Inc., 7.75%, 12/15/16		165		157,575
				528,944
Textiles, Apparel & Luxury Goods — 0.2%
Quiksilver, Inc., 6.88%, 4/15/15		100		92,500
Tobacco — 0.1%
Vector Group Ltd., 11.00%, 8/15/15		55		56,031
Trading Companies & Distributors — 0.3%
Russel Metals, Inc., 6.38%, 3/01/14		125		123,125
Wireless Telecommunication Services — 4.1%
Cricket Communications, Inc.:
10.00%, 7/15/15		225		235,687
7.75%, 5/15/16		270		278,775
Digicel Group Ltd. (b):
9.13%, 1/15/15 (e)		294		295,470
8.25%, 9/01/17		130		135,038
iPCS, Inc., 2.59%, 5/01/13 (f)		110		102,850
MetroPCS Wireless, Inc., 9.25%, 11/01/14		415		431,600
Nextel Communications, Inc.:
Series E, 6.88%, 10/31/13		130		129,675
Series F, 5.95%, 3/15/14		20		19,325
Sprint Capital Corp., 6.88%, 11/15/28		180		150,300
				1,778,720
Total Corporate Bonds — 96.3%				41,385,217
Floating Rate Loan Interests (f)
Auto Components — 1.6%
Affinion Group Holdings, Inc., Loan, 8.51%, 3/01/12 (e)		370		355,053
Allison Transmission, Inc., Term Loan, 3.04%, 8/07/14		383		353,072
				708,125
Automobiles — 1.4%
Ford Motor Co., Tranche B-1 Term Loan, 3.03%, 12/15/13		602		579,487
Chemicals — 0.7%
Tronox Worldwide LLC:
Tranche B-1 Term Loan, 11.25%, 9/20/10		236		238,392
Tranche B-2 Term Loan, 11.25%, 9/20/10		64		64,045
				302,437
Floating Rate Loan Interests (f)	Par (000)		Value
Commercial Services & Supplies — 1.2%
AWAS Finance Luxembourg Sarl, Term Loan B, 7.75%, 6/10/16	$	250	$	251,458
Delos Aircraft, Inc., Term Loan 2, 7.00%, 3/17/16		100		100,542
International Lease Finance Corp. (Delos Aircraft, Inc.), Term Loan 1, 6.75%, 3/17/15		150		151,187
				503,187
Construction & Engineering — 0.6%
Safway Services, LLC, Last Out Term Loan, 15.63%, 12/14/17		250		250,000
Consumer Finance — 1.7%
AGFS Funding Co., Term Loan, 7.25%, 4/21/15		750		741,094
Electric Utilities — 0.5%
New Development Holdings LLC, Term Loan, 7.00%, 7/03/17		225		227,250
Health Care Providers & Services — 0.9%
Harden Healthcare, Term Loan A:
Add-on Term Loan, 7.75%, 3/02/15		100		98,000
Tranche A Term Loan, 8.50%, 3/02/15		84		82,543
inVentiv Health, Inc. (FKA Ventive Health Inc.), Term Loan B, 6.50%, 7/31/16		200		199,625
				380,168
Hotels, Restaurants & Leisure — 1.2%
Travelport LLC (FKA Travelport, Inc.), Loan, 8.37%, 3/27/12 (e)		532		494,551
IT Services — 0.5%
First Data Corp.:
First Lien Term Loan, 3.01%, 9/24/14		29		24,603
Initial Tranche B-2 Term Loan, 3.01%, 9/24/14		67		57,339
Initial Tranche B-3 Term Loan, 3.01%, 9/24/14		177		151,268
				233,210
Independent Power Producers & Energy Traders — 0.9%
Texas Competitive Electric Holdings Co., LLC (TXU):
Initial Tranche B-2 Term Loan, 3.79% – 4.03%, 10/10/14		142		107,683
Initial Tranche B-3 Term Loan, 3.79% – 4.03%, 10/10/14		387		291,521
				399,204
Media — 1.8%
Cengage Learning Acquisitions, Inc. (Thomson Learning), Tranche 1 Incremental Term Loan, 7.50%, 7/03/14		245		244,184
HMH Publishing Co., Ltd. (FKA Education Media), Tranche A Term Loan, 5.80%, 6/12/14 (e)		150		136,223
Newsday, LLC, Fixed Rate Term Loan, 10.50%, 8/01/13		375		397,969
				778,376
Paper & Forest Products — 0.3%
Verso Paper Finance Holdings LLC, Term Loan with PIK option, 7.44%, 2/01/13 (e)		205		123,227
Real Estate Management & Development — 0.4%
Realogy Corp., Second Lien Term Facility, 13.50%, 10/15/17		175		184,625
Specialty Retail — 0.1%
Claire’s Stores, Inc., Term Loan B, 3.05%, 5/29/14		30		25,258
Wireless Telecommunication Services — 0.6%
Vodafone Group Plc, Revolving Credit, 6.88%, 7/30/15		250		250,000
Total Floating Rate Loan Interests — 14.4%				6,180,199

See Notes to Financial Statements.
	ANNUAL REPORT	AUGUST 31, 2010	51

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

Other Interests (i)	Beneficial Interest (000)			Value
Auto Components — 1.8%
Delphi Debtor-in-Possession Holding Co. LLP, Class B, Membership Interests	$	—	(j)	$	766,857
Health Care Providers & Services — 0.0%
Critical Care Systems International, Inc.		5			953
Total Other Interests — 1.8%					767,810

Preferred Securities
Preferred Stocks	Shares
Diversified Financial Services — 0.4%
Ally Financial Inc., 7.00% (b)		231	190,813
Media — 0.0%
CMP Susquehanna Radio Holdings Corp. 0.00% (a)(b)(f)		5,410	—
Specialty Retail — 0.2%
Lazydays RV Center, Inc. 0.00% (a)		72	85,806
Total Preferred Securities — 0.6%			276,619

Warrants (k)
Diversified Telecommunication Services — 0.0%
NEON Communications, Inc. (Expires 12/02/12)	53,622	1
Media — 0.0%
CMP Susquehanna Radio Holdings Corp. (Expires 3/26/19) (b)	6,182	—
Software — 0.0%
HMH Holdings/EduMedia (Expires 3/09/17)	1,184	—
Total Warrants — 0.0%		1
Total Long-Term Investments (Cost — $50,436,893) — 113.8%		48,894,660

Short-Term Securities
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.25% (l)(m)	1,573,222	1,573,222
Total Short-Term Securities (Cost — $1,573,222) — 3.6%		1,573,222

Options Purchased	Contracts
Over-the-Counter Call Options — 0.0%
Marsico Parent Superholdco LLC, Strike Price $942.86, expires 12/01/19, Broker Goldman Sachs Bank USA		3	—
Total Options Purchased (Cost — $2,933) — 0.0%			—
Total Investments Before Options Written (Cost — $52,013,048*) — 117.4%			50,467,882

Options Written	Notional Amount (000)		Value
Over-the-Counter Call Swaptions — 0.0%
Bought credit default protection on Dow Jones CDX North America High Yield Index Series 14 Volume 1, Strike Price $96.00, Expires 9/15/10, Broker Credit Suisse International	$	550	$	(528	)
Bought credit default protection on Dow Jones CDX North America High Yield Series 14 Volume 1, Strike Price $100.00, Expires 9/15/10, Broker Credit Suisse International		950		(6,172	)
				(6,700	)
Over-the-Counter Put Swaptions — 0.0%
Sold credit default protection on Dow Jones CDX North America High Yield Series 14 Volume 1, Strike Price $87.00, Expires 9/15/10, Broker Credit Suisse International		550		(9	)
Total Options Written (Premium Received — $19,050) — 0.0%				(6,709	)
Total Investments, Net of Options Written — 117.4%				50,461,173
Liabilities in Excess of Other Assets — (17.4)%				(7,481,041	)
Net Assets — 100.0%			$	42,980,132

* The cost and unrealized appreciation (depreciation) of investments as of August 31, 2010, as computed for federal income tax purposes, were as follows:

Aggregate cost	$	52,071,646
Gross unrealized appreciation	$	2,282,625
Gross unrealized depreciation		(3,886,389	)
Net unrealized depreciation	$	(1,603,764	)

(a)	Non-income producing security.
(b)	Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(c)	Represents a 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 face/shares.
(f)	Variable rate security. Rate shown is as of report date.
(g)	Issuer filed for bankruptcy and/or is in default of interest payments.
(h)	Represents a step-down bond that pays an initial coupon rate for the first period and then a lower coupon rate for the following periods. Rate shown is as of report date.
(i)	Other interests represent beneficial interest in liquidation trusts and other reorganization entities and are non-income producing.
(j)	Amount is less than $1,000.
(k)	Warrants entitle the Trust to purchase a predetermined number of shares of common stock and are non-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date, if any.
(l)	Investments in companies considered to be an affiliate of the Trust during the year, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate	Shares Held at at August 31, 2009		Net Activity			Shares Held at August 31, 2010		Income
BlackRock Liquidity Funds, TempFund, Institutional Class		2,180,193		(606,971	)		1,573,222	$	2,723

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

See Notes to Financial Statements.
52	ANNUAL REPORT	AUGUST 31, 2010

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

• Credit default swaps on single-name issuers — buy protection outstanding as of August 31, 2010 were as follows:

Issuer	Pay Fixed Rate	Counterparty	Expiration	Notional Amount (000)		Unrealized Depreciation
Brunswick Corp.	5.00%	Credit Suisse	September	$	70	$	(3,699	)
		International	2014

• Credit default swaps on single-name issuers — sold protection outstanding as of August 31, 2010 were as follows:

Issuer	Receive Fixed Rate	Counterparty	Expiration	Credit Rating1	Notional Amount (000)2		Unrealized Appreciation
Levi Strauss & Co.	5.00%	Deutsche Bank AG	June 2015	B+	$	55	$	168

1	Using S&P’s ratings 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.

•	For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by Trust management. This definition may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.
•	Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivatives, which are as follows:
	•	Level 1 — price quotations in active markets/exchanges for identical assets and liabilities
	•	Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
	•	Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments and derivatives)
	The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.
	The following tables summarize the inputs used as of August 31, 2010 in determining the fair valuation of the Trust’s investments and derivatives:

Valuation Inputs	Level 1		Level 2			Level 3			Total
Assets:
Investments in Securities:
Long-Term Investments:
Common Stocks	$	177,634	$	21,170		$	86,010		$	284,814
Corporate Bonds		—		39,870,340			1,514,877			41,385,217
Floating Rate Loan Interests		—		4,635,461			1,544,738			6,180,199
Other Interests		—		766,857			953			767,810
Preferred Securities		190,813		—			85,806			276,619
Warrants		—		—			1			1
Short-Term Securities		1,573,222		—			—			1,573,222
Liabilities:
Unfunded loan commitments		—		—			(4,001	)		(4,001	)
Total	$	1,941,669	$	45,293,828		$	3,228,384		$	50,463,881
	Derivative Financial Instruments1
Valuation Inputs	Level 1		Level 2			Level 3			Total
Assets:
Credit contracts		—	$	168			—		$	168
Liabilities:
Credit contracts		—		(10,408	)		—			(10,408	)
Total		—	$	(10,240	)		—		$	(10,240	)

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

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

	Common Stocks			Corporate Bonds			Floating Rate Loan Interests			Other Interests		Preferred Securities		Warrants		Unfunded Loan Commitments			Total
Assets/Liabilities:
Balance, as of August 31, 2009		—		$	1,149,295		$	2,581,647		$	953		—	$	1		—		$	3,731,896
Accrued discounts/premiums		—			5,159			5,282			—		—		—		—			10,441
Net realized gain (loss)	$	(957,501	)		(208,002	)		(557,300	)		—		—		—		—			(1,722,803	)
Net change in unrealized appreciation/depreciation2		957,501			1,278,827			1,633,274			—		—		—	$	(4,001	)		3,865,601
Purchases		—			27,502			3,200,033			—		—		—		—			3,227,535
Sales		—			(1,318,110	)		(4,862,218	)		—		—		—		—			(6,180,328	)
Transfers in3		86,010			663,793			680,543			—	$	85,806		—		—			1,516,152
Transfers out3		—			(83,587	)		(1,136,523	)		—		—		—		—			(1,220,110	)
Total	$	86,010		$	1,514,877		$	1,544,738		$	953	$	85,806	$	1	$	(4,001	)	$	3,228,384

2	Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations. The net change in unrealized appreciation/depreciation on securities still held at August 31, 2010 was $606,667.
3	The Trust’s policy is to recognize transfers in and transfers out as of the end of the period of the event or the change in circumstances that caused the transfer.

See Notes to Financial Statements.
	ANNUAL REPORT	AUGUST 31, 2010	53

Schedule of Investments August 31, 2010	BlackRock Income Opportunity Trust, Inc. (BNA)
	(Percentages shown are based on Net Assets)

Asset-Backed Securities	Par (000)		Value
321 Henderson Receivables I LLC, Series 2010-1A, Class B, 9.31%, 7/15/61 (a)	USD	1,150	$	1,337,369
Ameriquest Mortgage Securities, Inc., Series 2004-R11, Class A1, 0.57%, 11/25/34 (b)		819		745,745
Chase Issuance Trust, Series 2009-A7, Class A7, 0.73%, 9/17/12 (b)		3,375		3,375,485
Ford Credit Auto Owner Trust, Series 2009-A, Class A3B, 2.78%, 5/15/13 (b)		5,700		5,784,628
Globaldrive BV, Series 2008-2, Class A, 4.00%, 10/20/16		EUR 699		899,422
Home Equity Asset Trust, Series 2007-2, Class 2A1, 0.37%, 7/25/37 (b)		USD 318		308,499
Maryland Insurance Backed Securities Trust, Series 2006-1A, Class A, 5.55%, 12/10/65		2,500		875,000
Nelnet Student Loan Trust, Series 2008-3, Class A4, 4.61%, 11/25/24 (b)		650		674,375
SLM Student Loan Trust, Series 2008-5 (b):
Class A2, 1.60%, 10/25/16		3,300		3,348,061
Class A3, 1.80%, 1/25/18		1,170		1,206,282
Class A4, 2.20%, 7/25/23		2,400		2,504,838
Santander Drive Auto Receivables Trust, Series 2010-2:
Class B, 2.24%, 12/15/14		870		869,870
Class C, 3.89%, 7/17/17		1,020		1,020,000
Small Business Administration Participation Certificates, Series 1996-20K, Class 1, 6.95%, 11/01/16		367		392,288
				23,341,862
Interest Only — 0.3%
Sterling Bank Trust, Series 2004-2, Class Note, 2.08%, 3/30/30 (a)		5,154		272,208
Sterling Coofs Trust, Series 1, 2.36%, 4/15/29		7,549		771,402
				1,043,610
Total Asset-Backed Securities — 6.4%				24,385,472
Common Stocks	Shares
Specialty Retail — 0.0%
Lazydays RV Center, Inc. (c)		2,590		13,235
Total Common Stocks — 0.0%				13,235
Corporate Bonds	Par (000)
Aerospace & Defense — 0.6%
United Technologies Corp.:
4.88%, 5/01/15	USD	1,250	$	1,423,486
6.13%, 7/15/38		750		923,300
				2,346,786
Airlines — 0.2%
United Air Lines, Inc., 12.75%, 7/15/12		793		884,150
Beverages — 1.0%
Anheuser-Busch InBev Worldwide, Inc., 7.75%, 1/15/19 (a)		3,050		3,906,345
Building Products — 0.1%
CPG International I, Inc., 10.50%, 7/01/13		230		229,713
Corporate Bonds	Par (000)		Value
Capital Markets — 4.8%
CDP Financial, Inc. (a):
3.00%, 11/25/14 (d)	USD	1,950	$	2,013,330
5.60%, 11/25/39		2,955		3,367,352
Credit Suisse, Inc. (USA):
6.13%, 11/15/11		700		742,373
7.13%, 7/15/32		1,000		1,288,678
The Goldman Sachs Group, Inc.:
6.60%, 1/15/12		1,000		1,068,391
3.70%, 8/01/15		800		809,874
5.38%, 3/15/20 (d)		1,200		1,238,501
6.00%, 6/15/20		1,750		1,885,142
Lehman Brothers Holdings, Inc., 6.50%, 7/19/17 (c)(e)		225		70
Morgan Stanley:
2.88%, 5/14/13 (b)		1,880		1,899,146
4.20%, 11/20/14		1,620		1,668,276
4.00%, 7/24/15		400		401,855
6.25%, 8/28/17		900		979,742
5.63%, 9/23/19		760		773,422
				18,136,152
Chemicals — 1.1%
American Pacific Corp., 9.00%, 2/01/15		280		276,850
Ames True Temper, Inc., 4.53%, 1/15/12 (b)		720		718,200
CF Industries, Inc., 7.13%, 5/01/20		1,750		1,876,875
Innophos, Inc., 8.88%, 8/15/14		975		999,375
NOVA Chemicals Corp.:
6.50%, 1/15/12		115		117,588
3.75%, 11/15/13 (b)		275		256,781
				4,245,669
Commercial Banks — 3.6%
DEPFA ACS Bank, 5.13%, 3/16/37 (a)		4,150		3,273,441
Dexia Credit Local SA, 2.00%, 3/05/13 (a)		1,060		1,067,137
Eksportfinans ASA:
1.88%, 4/02/13		2,815		2,869,118
3.00%, 11/17/14		1,490		1,568,460
5.50%, 6/26/17		1,000		1,186,294
HSBC Bank Plc, 3.50%, 6/28/15 (a)		780		813,212
HSBC Holdings Plc, 6.50%, 5/02/36		1,275		1,453,568
The Toronto-Dominion Bank, 2.20%, 7/29/15 (a)		1,325		1,349,706
				13,580,936
Commercial Services & Supplies — 0.4%
West Corp.:
9.50%, 10/15/14		310		316,200
11.00%, 10/15/16		1,100		1,155,000
				1,471,200
Consumer Finance — 0.4%
Ford Motor Credit Co. LLC:
3.28%, 1/13/12 (b)		120		117,600
7.80%, 6/01/12		380		399,890
6.63%, 8/15/17		380		386,221
SLM Corp., Series A, 0.80%, 1/27/14 (b)		600		489,703
				1,393,414
Containers & Packaging — 1.1%
Ball Corp.:
7.13%, 9/01/16		275		294,937
7.38%, 9/01/19		275		294,938
Crown Americas LLC:
7.75%, 11/15/15		150		155,625
7.63%, 5/15/17 (a)		817		872,147
7.63%, 5/15/17		157		167,598

See Notes to Financial Statements.
54	ANNUAL REPORT	AUGUST 31, 2010

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

Corporate Bonds		Par (000)		Value
Containers & Packaging (concluded)
Impress Holdings BV, 3.65%, 9/15/13 (a)(b)		USD	330	$	311,850
Owens-Brockway Glass Container, Inc., 7.38%, 5/15/16			1,435		1,542,625
Pregis Corp., 12.38%, 10/15/13			535		535,000
					4,174,720
Diversified Financial Services — 3.9%
Ally Financial Inc., 8.30%, 2/12/15 (a)			2,000		2,080,000
Bank of America Corp.:
7.63%, 6/01/19			500		585,229
5.63%, 7/01/20			1,310		1,349,588
Citigroup, Inc., 5.38%, 8/09/20			840		847,747
FCE Bank Plc, 7.88%, 2/15/11		GBP	550		854,050
General Electric Capital Corp.:
5.50%, 1/08/20 (d)		USD	2,150		2,352,939
6.75%, 3/15/32 (f)			3,000		3,391,821
JPMorgan Chase & Co., 6.30%, 4/23/19			1,375		1,580,165
Reynolds Group DL Escrow, Inc., 7.75%, 10/15/16 (a)			1,000		1,007,500
Reynolds Group Issuer, Inc., 7.75%, 10/15/16 (a)		EUR	550		707,436
					14,756,475
Diversified Telecommunication Services — 6.1%
AT&T Inc., 6.55%, 2/15/39 (d)		USD	4,075		4,829,087
BellSouth Telecommunications, Inc., 8.18%, 12/15/95 (g)			1,700		1,256,917
Frontier Communications Corp., 8.25%, 4/15/17			1,810		1,914,075
GCI, Inc., 8.63%, 11/15/19			1,000		1,050,000
Nordic Telephone Co. Holdings ApS, 8.88%, 5/01/16 (a)			145		152,250
Qwest Communications International, Inc.:
7.50%, 2/15/14			15		15,281
Series B, 7.50%, 2/15/14			10		10,188
Qwest Corp.:
8.88%, 3/15/12			120		132,000
8.38%, 5/01/16			170		198,050
Telecom Italia Capital SA, 4.95%, 9/30/14			4,375		4,598,409
Telefonica Emisiones SAU, 7.05%, 6/20/36			1,000		1,202,853
Verizon Communications, Inc.:
6.40%, 2/15/38 (d)			2,100		2,457,546
8.95%, 3/01/39			1,125		1,670,434
Verizon Global Funding Corp., 7.75%, 6/15/32	��		575		752,543
Verizon Maryland, Inc.:
Series A, 6.13%, 3/01/12			1,355		1,444,457
Series B, 5.13%, 6/15/33			540		499,645
Verizon Virginia, Inc., Series A, 4.63%, 3/15/13			750		798,640
Wind Acquisition Finance SA, 12.00%, 12/01/15 (a)			85		89,675
Windstream Corp.:
8.13%, 8/01/13			50		53,313
8.63%, 8/01/16			100		103,250
7.88%, 11/01/17			50		50,750
					23,279,363
Electric Utilities — 3.9%
Alabama Power Co., 6.00%, 3/01/39			550		658,209
Commonwealth Edison Co., 4.00%, 8/01/20			480		506,574
Duke Energy Carolinas LLC:
6.10%, 6/01/37			325		389,069
6.00%, 1/15/38			850		1,028,831
EDF SA, 5.60%, 1/27/40 (a)			1,400		1,532,030
E.ON International Finance BV, 6.65%, 4/30/38 (a)			1,575		2,014,108
Elwood Energy LLC, 8.16%, 7/05/26			145		132,946
Corporate Bonds		Par (000)		Value
Electric Utilities (concluded)
Florida Power & Light Co., 4.95%, 6/01/35		USD	575	$	605,825
Florida Power Corp.:
6.35%, 9/15/37			1,450		1,817,923
6.40%, 6/15/38			800		1,004,586
PacifiCorp., 6.25%, 10/15/37			650		805,236
Public Service Co. of Colorado, 6.25%, 9/01/37			1,350		1,696,039
Southern California Edison Co.:
5.63%, 2/01/36			675		779,691
Series 05-E, 5.35%, 7/15/35			150		166,912
Series 08-A, 5.95%, 2/01/38			1,100		1,332,906
The Toledo Edison Co., 6.15%, 5/15/37			350		398,501
					14,869,386
Energy Equipment & Services — 0.6%
Expro Finance Luxembourg SCA, 8.50%, 12/15/16 (a)			2,480		2,318,800
Food & Staples Retailing — 0.9%
Wal-Mart Stores, Inc.:
6.50%, 8/15/37			1,975		2,543,923
6.20%, 4/15/38			850		1,047,543
					3,591,466
Food Products — 0.5%
Kraft Foods, Inc., 7.00%, 8/11/37			1,670		2,077,497
Health Care Equipment & Supplies — 0.3%
Covidien International Finance SA, 2.80%, 6/15/15			230		237,382
DJO Finance LLC, 10.88%, 11/15/14			900		964,125
					1,201,507
Health Care Providers & Services — 1.2%
HCA, Inc., 8.50%, 4/15/19			1,700		1,863,625
Tenet Healthcare Corp.:
9.00%, 5/01/15			1,200		1,278,000
10.00%, 5/01/18			280		315,000
8.88%, 7/01/19			1,150		1,243,437
					4,700,062
Hotels, Restaurants & Leisure — 0.3%
McDonald’s Corp., 5.70%, 2/01/39			850		1,018,794
Household Durables — 0.6%
Irwin Land LLC (a):
Series A-1, 5.03%, 12/15/25			575		550,126
Series A-2, 5.30%, 12/15/35			780		681,408
Standard Pacific Corp., 10.75%, 9/15/16			1,000		1,052,500
					2,284,034
Household Products — 0.3%
Kimberly-Clark, Corp., 6.63%, 8/01/37			975		1,300,083
IT Services — 0.2%
iPayment, Inc., 9.75%, 5/15/14			270		244,013
iPayment Investors LP, 12.75%, 7/15/14 (a)(h)			815		696,770
					940,783
Independent Power Producers & Energy Traders — 0.0%
NRG Energy, Inc.:
7.25%, 2/01/14			30		30,600
7.38%, 2/01/16			5		5,038
7.38%, 1/15/17			10		10,075
					45,713
Industrial Conglomerates — 0.5%
Sequa Corp. (a):
11.75%, 12/01/15			760		782,800
13.50%, 12/01/15 (h)			927		964,580
					1,747,380

See Notes to Financial Statements.
	ANNUAL REPORT	AUGUST 31, 2010	55

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

Corporate Bonds	Par (000)		Value
Insurance — 2.1%
Chubb Corp., 6.00%, 5/11/37	USD	1,415	$	1,635,954
Metropolitan Life Global Funding I (a):
2.50%, 1/11/13		2,550		2,606,253
5.13%, 6/10/14		775		858,529
Prudential Financial, Inc.:
4.75%, 9/17/15		1,220		1,308,667
5.70%, 12/14/36		950		970,820
Teachers Insurance & Annuity Association of America, 6.85%, 12/16/39 (a)		505		632,242
				8,012,465
Machinery — 0.4%
AGY Holding Corp., 11.00%, 11/15/14		340		289,000
Navistar International Corp., 8.25%, 11/01/21		1,200		1,257,000
				1,546,000
Marine — 0.3%
Nakilat, Inc., Series A, 6.07%, 12/31/33 (a)		1,100		1,210,066
Media — 5.4%
Affinion Group, Inc., 10.13%, 10/15/13		740		758,500
CCH II LLC, 13.50%, 11/30/16		1,815		2,150,302
CMP Susquehanna Corp., 3.64%, 5/15/14 (a)(b)		55		1,100
Clear Channel Worldwide Holdings, Inc.:
9.25%, 12/15/17		318		329,925
Series B, 9.25%, 12/15/17		1,272		1,334,010
Comcast Cable Communications Holdings, Inc., 9.46%, 11/15/22		2,000		2,810,936
Comcast Cable Communications LLC, 6.75%, 1/30/11		1,000		1,024,259
Comcast Corp., 6.40%, 3/01/40		350		399,363
DIRECTV Holdings LLC, 6.00%, 8/15/40		230		242,069
Discovery Communications LLC, 3.70%, 6/01/15		470		494,427
NBC Universal, Inc., 5.15%, 4/30/20 (a)		680		731,937
News America Holdings, Inc.:
8.45%, 8/01/34		2,475		3,333,003
8.15%, 10/17/36		145		186,081
Nielsen Finance LLC, 10.00%, 8/01/14		1,060		1,113,000
Rainbow National Services LLC (a):
8.75%, 9/01/12		225		225,281
10.38%, 9/01/14		1,070		1,110,125
TL Acquisitions, Inc., 10.50%, 1/15/15 (a)		1,310		1,251,050
Time Warner Cable, Inc., 7.30%, 7/01/38		970		1,198,635
Time Warner Cos., Inc., 7.57%, 2/01/24		1,635		2,045,774
				20,739,777
Metals & Mining — 0.6%
AngloGold Ashanti Holdings Plc, 5.38%, 4/15/20		270		282,064
Falconbridge Ltd., 6.20%, 6/15/35		1,550		1,572,486
McJunkin Red Man Corp., 9.50%, 12/15/16 (a)		495		436,837
				2,291,387
Multi-Utilities — 0.4%
Dominion Resources, Inc., 6.00%, 11/30/17		1,135		1,356,809
Multiline Retail — 0.4%
Dollar General Corp., 11.88%, 7/15/17 (h)		1,500		1,725,000
Oil, Gas & Consumable Fuels — 6.4%
BP Capital Markets Plc, 3.13%, 3/10/12 (d)		1,505		1,507,601
Berry Petroleum Co., 8.25%, 11/01/16		160		161,600
Burlington Resources Finance Co., 7.40%, 12/01/31		950		1,243,198
Canadian Natural Resources, Ltd.:
6.50%, 2/15/37		430		514,390
6.25%, 3/15/38		500		571,164
6.75%, 2/01/39		950		1,177,972
Cenovus Energy, Inc., 6.75%, 11/15/39		565		693,274
Corporate Bonds	Par (000)		Value
Oil, Gas & Consumable Fuels (concluded)
Chesapeake Energy Corp., 6.63%, 8/15/20	USD	1,280	$	1,284,800
Conoco Funding Co., 7.25%, 10/15/31		150		196,518
ConocoPhillips Canada Funding Co., 5.95%, 10/15/36		150		176,264
Consol Energy, Inc. (a):
8.00%, 4/01/17		1,139		1,201,645
8.25%, 4/01/20		861		913,736
Devon Energy Corp., 7.95%, 4/15/32		650		894,072
EnCana Corp.:
6.50%, 8/15/34		70		80,122
6.63%, 8/15/37		775		929,632
Enterprise Products Operating LLC:
6.13%, 2/01/13		710		772,184
6.13%, 10/15/39		700		748,222
Kinder Morgan Energy Partners LP, 5.30%, 9/15/20		510		545,626
MidAmerican Energy Co., 5.80%, 10/15/36		800		926,882
MidAmerican Energy Holdings Co.:
5.95%, 5/15/37		950		1,076,793
6.50%, 9/15/37		2,115		2,569,886
Nexen, Inc., 6.40%, 5/15/37		750		823,130
Peabody Energy Corp., 6.50%, 9/15/20		1,220		1,282,525
Petrobras International Finance Co.:
5.88%, 3/01/18		80		86,884
5.75%, 1/20/20		1,760		1,886,504
Rockies Express Pipeline LLC, 3.90%, 4/15/15 (a)		680		675,995
Valero Energy Corp., 6.63%, 6/15/37		1,300		1,317,012
Whiting Petroleum Corp., 7.25%, 5/01/12		20		20,000
				24,277,631
Paper & Forest Products — 1.1%
Georgia-Pacific LLC, 8.25%, 5/01/16 (a)		1,650		1,806,750
International Paper Co., 7.30%, 11/15/39		610		687,355
NewPage Corp., 11.38%, 12/31/14		2,005		1,629,062
				4,123,167
Pharmaceuticals — 2.3%
GlaxoSmithKline Capital, Inc., 6.38%, 5/15/38		1,500		1,903,332
Roche Holdings, Inc., 7.00%, 3/01/39 (a)		900		1,233,876
Schering-Plough Corp., 6.55%, 9/15/37		1,250		1,644,859
Teva Pharmaceutical Finance LLC, 6.15%, 2/01/36		1,475		1,811,636
Wyeth, 5.95%, 4/01/37 (d)		1,775		2,137,215
				8,730,918
Professional Services — 0.0%
FTI Consulting, Inc., 7.75%, 10/01/16		125		129,688
Road & Rail — 0.6%
Burlington Northern Santa Fe LLC, 5.75%, 5/01/40 (d)		940		1,056,242
Canadian National Railway Co., 6.38%, 10/15/11		1,000		1,062,017
				2,118,259
Software — 0.2%
BMS Holdings, Inc., 8.59%, 2/15/12 (a)(h)		145		2,895
Oracle Corp., 5.38%, 7/15/40 (a)		885		959,329
				962,224
Specialty Retail — 0.1%
General Nutrition Centers, Inc., 10.75%, 3/15/15		405		414,113
Textiles, Apparel & Luxury Goods — 0.1%
Quiksilver, Inc., 6.88%, 4/15/15		250		231,250
Thrifts & Mortgage Finance — 0.4%
Achmea Hypotheekbank NV, 3.20%, 11/03/14 (a)		1,325		1,399,615
Tobacco — 0.2%
Philip Morris International, Inc., 4.50%, 3/26/20		650		709,057

See Notes to Financial Statements.
56	ANNUAL REPORT	AUGUST 31, 2010

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 — 2.7%
Cricket Communications, Inc.:
10.00%, 7/15/15	USD	105		$	109,988
7.75%, 5/15/16		1,452			1,499,190
Crown Castle Towers LLC, 6.11%, 1/15/40 (a)		1,595			1,774,618
Digicel Group Ltd., 8.25%, 9/01/17 (a)		150			155,812
MetroPCS Wireless, Inc., 9.25%, 11/01/14		60			62,400
Nextel Communications, Inc., Series E, 6.88%, 10/31/13		410			408,975
Rogers Communications, Inc., 7.50%, 8/15/38		1,175			1,561,281
SBA Tower Trust, 4.25%, 4/15/40 (a)		950			1,013,716
Sprint Capital Corp.:
6.88%, 11/15/28		780			651,300
8.75%, 3/15/32		350			337,312
Vodafone Group Plc, 4.15%, 6/10/14		2,500			2,685,585
					10,260,177
Total Corporate Bonds — 56.3%					214,738,031
Foreign Agency Obligations
Hellenic Republic Government Bond, 4.60%, 9/20/40	EUR	160			105,934
Italy Government International Bond, 5.38%, 6/15/33	USD	470			488,228
Japan Finance Corp., 2.00%, 6/24/11		880			889,520
Kreditanstalt fuer Wiederaufbau, 1.38%, 7/15/13		655			663,653
Landwirtschaftliche Rentenbank:
4.13%, 7/15/13		120			130,225
Series E, 5.25%, 7/02/12		405			437,179
Series E, 4.38%, 1/15/13		260			281,620
Series E, 4.00%, 2/02/15		235			260,304
Mexico Government International Bond, 5.63%, 1/15/17		370			415,325
Province of Ontario Canada:
4.10%, 6/16/14		1,235			1,358,626
Series 1, 1.88%, 11/19/12		1,180			1,207,031
Qatari Diar Finance QSC, 3.50%, 7/21/15 (a)		915			932,385
Russian Foreign Bond Eurobond, 7.50%, 3/31/30		1,371			1,627,962
United Mexican States, Series A, 5.13%, 1/15/20		215			233,275
Total Foreign Agency Obligations — 2.4%					9,031,267
Non-Agency Mortgage-Backed Securities
Collateralized Mortgage Obligations — 4.6%
Banc of America Funding Corp., Series 2007-2, Class 1A2, 6.00%, 3/25/37		1,100			878,827
Collateralized Mortgage Obligation Trust, Series 40, Class R, 580.50%, 4/01/18		—	(j)		81
Countrywide Alternative Loan Trust:
Series 2005-64CB, Class 1A15, 5.50%, 12/25/35		1,700			1,394,411
Series 2006-0A21, Class A1, 0.46%, 3/20/47 (b)		955			501,495
Series 2006-41CB, Class 1A4, 5.75%, 1/25/37		800			579,452
Countrywide Home Loan Mortgage Pass-Through Trust:
Series 2006-0A5, Class 2A1, 0.46%, 4/25/46 (b)		387			218,908
Series 2007-10, Class A22, 6.00%, 7/25/37		864			695,901
Non-Agency Mortgage-Backed Securities	Par (000)			Value
Collateralized Mortgage Obligations (concluded)
Deutsche ALT-A Securities, Inc. Alternate Loan Trust, Series 2006-0A1, Class A1, 0.46%, 2/25/47 (b)	USD	309		$	185,937
GSR Mortgage Loan Trust (b):
Series 2005-AR4, Class 6A1, 5.25%, 7/25/35		3,183			2,974,567
Series 2006-AR1, Class 2A1, 5.00%, 1/25/36		804			636,959
Harborview Mortgage Loan Trust, Series 2005-8, Class 1A2A, 0.60%, 9/19/35 (b)		103			63,200
Homebanc Mortgage Trust, Series 2006-2, Class A1, 0.44%, 12/25/36 (b)		798			568,564
IndyMac IMJA Mortgage Loan Trust, Series 2007-A1, Class A4, 6.00%, 8/25/37		1,100			885,120
JPMorgan Mortgage Trust, Series 2007-S1, Class 2A22, 5.75%, 3/25/37		755			638,681
Merrill Lynch Mortgage Investors, Inc., Series 2006-A3, Class 3A1, 5.64%, 5/25/36 (b)		805			547,267
Residential Funding Securities LLC, Series 2003-RM2, Class AI5, 8.50%, 5/25/33		3,460			3,607,044
Station Place Securitization Trust, Series 2009-1, Class A, 1.76%, 1/25/40 (a)(b)		1,580			1,580,000
WaMu Mortgage Pass-Through Certificates, Series 2007-0A4, Class 1A, 1.18%, 5/25/47 (b)		436			274,613
Wells Fargo Mortgage-Backed Securities Trust:
Series 2006-3, Class A9, 5.50%, 3/25/36		590			573,615
Series 2006-AR4, Class 2A4, 5.69%, 4/25/36 (b)		300			265,480
Series 2007-10, Class 1A21, 6.00%, 7/25/37		523			445,587
					17,515,709
Commercial Mortgage-Backed Securities — 12.8%
CS First Boston Mortgage Securities Corp., Series 2002-CP5, Class A2, 4.94%, 12/15/35		2,970			3,149,190
Citigroup Commercial Mortgage Trust, Series 2008-C7, Class A4, 6.29%, 12/10/49 (b)		2,020			2,155,403
Commercial Mortgage Loan Trust, Series 2008-LS1, Class A4B, 6.02%, 12/10/49 (b)		1,515			1,569,447
Commercial Mortgage Pass-Through Certificates, Series 2004-LB3A, Class A3, 5.09%, 7/10/37 (b)		990			1,011,361
DLJ Commercial Mortgage Corp., Series 2000-CKP1, Class A1B, 7.18%, 11/10/33		3			2,790
First Union-Lehman Brothers-Bank of America, Series 1998-C2, Class D, 6.78%, 11/18/35		2,630			2,789,945
GE Capital Commercial Mortgage Corp., Series 2002-1A, Class A3, 6.27%, 12/10/35		2,310			2,441,978
GMAC Commercial Mortgage Securities, Inc.:
Series 2002-C3, Class A2, 4.93%, 7/10/39		2,580			2,732,885
Series 2004-C3, Class A4, 4.55%, 12/10/41		2,475			2,523,990
JPMorgan Chase Commercial Mortgage Securities Corp.:
Series 2001-C1, Class A3, 5.86%, 10/12/35		1,966			2,037,976
Series 2004-CBX, Class A4, 4.53%, 1/12/37		2,380			2,429,775
LB-UBS Commercial Mortgage Trust, Series 2004-C4, Class A3, 5.29%, 6/15/29 (b)		2,530			2,660,267
Merrill Lynch Mortgage Trust, Series 2004BPC1, Class A3, 4.47%, 10/12/41 (b)		4,280			4,365,337
Morgan Stanley Capital I, Series 2005-T17, Class A4, 4.52%, 12/13/41		2,663			2,731,714
Wachovia Bank Commercial Mortgage Trust:
Series 2005-C21, Class A3, 5.38%, 10/15/44 (b)		644			645,136
Series 2006-C28, Class A2, 5.50%, 10/15/48 (i)		14,000			14,389,848
Series 2007-C33, Class A4, 6.10%, 2/15/51 (b)		1,105			1,122,181
					48,759,223

See Notes to Financial Statements.
	ANNUAL REPORT	AUGUST 31, 2010	57

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

Non-Agency Mortgage-Backed Securities	Par (000)			Value
Interest Only Collateralized Mortgage Obligations — 0.0%
Collateralized Mortgage Obligation Trust, Series 42, Class R, 6,000.00%, 10/01/14	USD	—	(j)	$	399
GSMPS Mortgage Loan Trust, Series 1998-5, Class IO, 0.63%, 6/19/27 (a)(b)		2,776			55,527
Salomon Brothers Mortgage Securities VII, Inc., Series 2000-1, Class IO, 0.42%, 3/25/22 (b)		591			1
					55,927
Interest Only Commercial Mortgage-Backed Securities — 0.0%
Morgan Stanley Capital I, Series 1997-HF1, Class X, 2.23%, 7/15/29 (a)(b)		10			—
Total Non-Agency Mortgage-Backed Securities — 17.4%					66,330,859
Other Interests (k)	Beneficial Interest (000)
Health Care Providers & Services — 0.0%
Critical Care Systems International, Inc.		2			381
Total Other Interests — 0.0%					381
Preferred Securities
Capital Trusts	Par (000)
Insurance — 1.0%
The Allstate Corp., 6.50%, 5/15/67 (b)		2,150			1,956,500
The Lincoln National Corp., 6.05%, 4/20/67 (b)		750			630,000
The Travelers Cos., Inc., 6.25%, 3/15/67 (b)		750			719,405
ZFS Finance (USA) Trust V, 6.50%, 5/09/67 (a)(b)		575			520,375
Total Capital Trusts — 1.0%					3,826,280
Preferred Stocks	Shares
Media — 0.0%
CMP Susquehanna Radio Holdings Corp., 0.00% (a)(b)(c)		12,873			—
Specialty Retail — 0.0%
Lazydays RV Center, Inc., 0.00% (c)		55			65,455
Thrifts & Mortgage Finance — 0.0%
Fannie Mae, Series O, 0.00% (c)		40,000			16,400
Freddie Mac, Series Z, 8.38% (c)		94,539			31,198
					47,598
Total Preferred Stocks — 0.0%					113,053
Total Preferred Securities — 1.0%					3,939,333
Taxable Municipal Bonds	Par (000)
The Board of Trustees of The Leland Stanford Junior University, 4.25%, 5/01/16	USD	470			530,621
City of Chicago Illinois, RB, Build America Bonds, 6.40%, 1/01/40		250			276,510
Dallas Area Rapid Transit, RB, Build America Bonds, 6.00%, 12/01/44		260			312,629
Taxable Municipal Bonds	Par (000)			Value
East Bay Municipal Utility District, RB, Build America Bonds, 5.87%, 6/01/40	USD	950		$	1,105,619
Indianapolis Local Public Improvement Bond Bank, RB, Build America Bonds, 6.12%, 1/15/40		1,260			1,455,161
Metropolitan Transportation Authority, RB, Build America Bonds, 7.34%, 11/15/39		670			860,649
New York City Municipal Water Finance Authority, RB, Build America Bonds, 5.72%, 6/15/42		690			771,441
New York State Dormitory Authority, RB, Build America Bonds:
5.63%, 3/15/39		550			590,123
5.60%, 3/15/40		950			1,035,918
Port Authority of New York & New Jersey, RB, Consolidated, 159th Series, 6.04%, 12/01/29		395			450,138
Princeton University, 5.70%, 3/01/39		575			697,866
State of California, GO:
Build America Bonds, 7.30%, 10/01/39		1,100			1,212,684
Build America Bonds, 7.35%, 11/01/39		540			622,409
Build America Bonds, Various Purpose, 7.50%, 4/01/34		360			408,798
Various Purpose, Series 3, 5.45%, 4/01/15		2,475			2,648,448
State of Illinois, GO, Pension, 5.10%, 6/01/33		960			818,438
Total Taxable Municipal Bonds — 3.6%					13,797,452
U.S. Government Sponsored Agency Securities
Agency Obligations — 7.6%
Fannie Mae:
6.45%, 10/09/19 (f)(l)		6,125			4,037,784
7.13%, 1/15/30 (f)		4,000			5,810,888
5.63%, 7/15/37 (d)		825			1,042,898
Federal Home Loan Banks:
5.38%, 9/30/22 (f)		5,600			6,758,690
5.25%, 12/09/22 (m)		700			835,298
5.37%, 9/09/24 (m)		1,100			1,329,565
Federal Housing Administration, Merrill Projects:
Series 29, 7.43%, 10/01/20		43			42,852
Series 42, 7.43%, 9/25/22		42			41,968
Federal Housing Administration, Westmore Project, 7.25%, 4/01/21		1,428			1,414,135
Freddie Mac:
1.75%, 6/15/12 (f)		1,200			1,224,450
5.50%, 7/18/16		210			252,044
5.00%, 2/16/17		420			493,369
Resolution Funding Corp.,8.55%, 4/15/30 (l)		6,055			2,830,791
Tennessee Valley Authority, 5.25%, 9/15/39		2,405			2,852,183
					28,966,915
Collateralized Mortgage Obligations — 0.4%
Fannie Mae Mortgage-Backed Securities:
Series 1991-46, Class S, 2,454.59%, 5/25/21 (b)		—	(j)		3,263
Series 1991-87, Class S, 25.94%, 8/25/21 (b)		32			51,057
Series 2005-5, Class PK, 5.00%, 12/25/34		1,341			1,466,120
Series G-7, Class S, 1,112.85%, 3/25/21 (b)		—	(j)		2,209
Series G-17, Class S, 1,051.96%, 6/25/21 (b)		—	(j)		3,223
Series G-49, Class S, 1,005.55%, 12/25/21 (b)		—	(j)		1,242
Freddie Mac Mortgage-Backed Securities:
Series 19, Class R, 16,113.87%, 3/15/20 (b)		—	(j)		815
Series 75, Class R, 9.50%, 1/15/21		—	(j)		1
Series 75, Class RS, 21.65%, 1/15/21 (b)		—	(j)		1
Series 173, Class R, 9.00%, 11/15/21		—	(j)		8
Series 173, Class RS, 9.18%, 11/15/21 (b)		—	(j)		8
Series 1057, Class J, 1,008.00%, 3/15/21		—	(j)		1,215
					1,529,162

See Notes to Financial Statements.
58	ANNUAL REPORT	AUGUST 31, 2010

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

U.S. Government Sponsored Agency Securities	Par (000)			Value
Federal Deposit Insurance Corporation Guaranteed — 1.8%
Citigroup Funding, Inc. (f):
2.13%, 7/12/12	USD	1,460		$	1,500,652
1.88%, 10/22/12		2,900			2,970,952
General Electric Capital Corp.:
2.00%, 9/28/12		1,850			1,900,300
2.13%, 12/21/12		525			541,324
					6,913,228
Interest Only Collateralized Mortgage Obligations — 0.2%
Fannie Mae Mortgage-Backed Securities:
Series 7, Class 2, 8.50%, 4/01/17		3			477
Series 89, Class 2, 8.00%, 10/01/18		5			744
Series 94, Class 2, 9.50%, 8/01/21		2			354
Series 1990-123, Class M, 1,009.50%, 10/25/20		—	(j)		355
Series 1990-136, Class S, 19.80%, 11/25/20 (b)		8			12,227
Series 1991-38, Class N, 1,008.50%, 4/25/21		—	(j)		9
Series 1991-99, Class L, 930.00%, 8/25/21		—	(j)		1,444
Series 1991-139, Class PT, 648.35%, 10/25/21		—	(j)		2,125
Series 1997-50, Class SI, 1.20%, 4/25/23 (b)		209			7,400
Series G-10, Class S, 1,076.50%, 5/25/21 (b)		—	(j)		7,830
Series G-12, Class S, 1,142.80%, 5/25/21 (b)		—	(j)		4,905
Series G-33, Class PV, 1,078.40%, 10/25/21		—	(j)		4,285
Series G92-5, Class H, 9.00%, 1/25/22		44			7,985
Freddie Mac Mortgage-Backed Securities:
Series 176, Class M, 1,010.00%, 7/15/21		—	(j)		362
Series 192, Class U, 1,009.03%, 2/15/22 (b)		—	(j)		322
Series 200, Class R, 194,822.03%, 12/15/22 (b)		—	(j)		7
Series 1043, Class H, 43.59%, 2/15/21 (b)		4			9,715
Series 1054, Class I, 854.20%, 3/15/21 (b)		—	(j)		723
Series 1056, Class KD, 1,084.50%, 3/15/21		—	(j)		1,001
Series 1148, Class E, 1,160.00%, 10/15/21 (b)		—	(j)		2,692
Series 1254, Class Z, 8.50%, 4/15/22		91			22,624
Series 1831, Class PG, 6.50%, 3/15/11		9			95
Series 2611, Class QI, 5.50%, 9/15/32		3,074			366,192
					453,873
Mortgage-Backed Securities — 24.7%
Fannie Mae Mortgage-Backed Securities (n):
4.00%, 4/01/25 – 9/15/40 (f)		9,004			9,445,469
4.50%, 9/15/40		8,500			8,925,000
5.00%, 2/01/39 – 9/15/40 (f)		23,390			24,857,372
5.50%, 12/01/13 – 9/15/40 (f)		11,344			12,132,706
6.00%, 3/01/16 – 9/15/40 (f)		13,136			14,211,489
Freddie Mac Mortgage-Backed Securities:
4.00%, 3/01/25 – 6/01/25 (f)		16,453			17,329,762
4.50%, 4/01/40 – 9/15/40 (f)(n)		6,088			6,397,463
5.50%, 6/01/40		1,008			1,076,749
8.00%, 4/15/24 – 6/15/25		68			78,935
					94,454,945
Principal Only Collateralized Mortgage Obligations — 0.0%
Fannie Mae Mortgage-Backed Securities:
Series 203, Class 1, 2/01/23		12			10,255
Series 228, Class 1, 6/01/23		8			6,954
Series 1993-51, Class E, 2/25/23		39			34,414
Series 1993-70, Class A, 5/25/23		6			5,440
Freddie Mac Mortgage-Backed Securities, Series 1739, Class B, 2/15/24		32			30,812
					87,875
Total U.S. Government Sponsored Agency Securities — 34.7%					132,405,998
U.S. Treasury Obligations	Par (000)			Value
U.S. Treasury Bonds:
8.13%, 8/15/21	USD	1,550		$	2,361,086
8.00%, 11/15/21 (f)		12,255			18,583,556
U.S. Treasury Notes:
1.75%, 7/31/15 (f)		8,175			8,346,184
1.25%, 8/31/15		12,180			12,124,809
2.63%, 8/15/20 (f)		42,707			43,254,186
4.25%, 5/15/39 (f)		2,770			3,128,802
4.50%, 8/15/39 (d)		2,520			2,963,364
4.63%, 2/15/40 (f)		2,745			3,293,144
4.38%, 5/15/40		4,685			5,406,051
3.88%, 8/15/40		1,700			1,807,047
Total U.S. Treasury Obligations — 26.6%					101,268,229
Warrants (o)	Shares
Media — 0.0%
CMP Susquehanna Radio Holdings Corp. (Expires 3/26/19) (a)		14,710			—
Total Warrants — 0.0%					—
Total Long-Term Investments (Cost — $540,226,878) — 148.4%					565,910,257
Short-Term Securities	Par (000)
Borrowed Bond Agreement — 0.1%
JPMorgan Securities Inc., 0.13%, 9/02/10	USD	295		$	294,606
Total Short-Term Securities (Cost — $294,606) — 0.1%					294,606
Options Purchased	Contracts
Exchange-Traded Call Options — 0.0%
Five-Year U.S. Treasury Note Future, Strike Price USD 121.00, Expires 11/26/10		21			12,469
Exchange-Traded Put Options — 0.0%
Five-Year U.S. Treasury Note Future, Strike Price USD 117.00, Expires 11/26/10		21			3,445
	Notional Amount (000)
Over-the-Counter Call Swaptions — 1.7%
Receive a fixed rate of 4.22% and pay a floating rate based on 3-month LIBOR, Expires 4/29/11, Broker Credit Suisse International	USD	4,500			614,002
Receive a fixed rate of 3.65% and pay a floating rate based on 3-month LIBOR, Expires 5/05/11, Broker Credit Suisse International		5,600			507,035
Receive a fixed rate of 4.01% and pay a floating rate based on 3-month LIBOR, Expires 5/16/11, Broker Goldman Sachs Bank USA		6,000			709,542
Receive a fixed rate of 3.86% and pay a floating rate based on 3-month LIBOR, Expires 5/19/11, Broker JPMorgan Chase Bank NA		10,700			1,133,055
Receive a fixed rate of 4.39% and pay a floating rate based on 3-month LIBOR, Expires 5/08/12, Broker Citibank NA		2,300			295,992
Receive a fixed rate of 3.89% and pay a floating rate based on 3-month LIBOR, Expires 7/09/12, Broker Goldman Sachs Bank USA		4,200			382,460

See Notes to Financial Statements.
	ANNUAL REPORT	AUGUST 31, 2010	59

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

Options Purchased	Notional Amount (000)		Value
Over-the-Counter Call Swaptions (concluded)
Receive a fixed rate of 3.93% and pay a floating rate based on 3-month LIBOR, Expires 7/16/12, Broker Goldman Sachs Bank USA	USD	4,700	$	439,135
Receive a fixed rate of 3.70% and pay a floating rate based on 3-month LIBOR, Expires 8/03/12, Broker Credit Suisse International		4,700		370,111
Receive a fixed rate of 3.72% and pay a floating rate based on 3-month LIBOR, Expires 8/06/12, Broker Deutsche Bank AG		5,000		397,700
Receive a fixed rate of 4.21% and pay a floating rate based on 3-month LIBOR, Expires 4/22/13, Broker JPMorgan Chase Bank NA		5,300		210,739
Receive a fixed rate of 5.20% and pay a floating rate based on 3-month LIBOR, Expires 4/28/15, Broker Citibank NA		9,300		1,371,610
				6,431,381
Over-the-Counter Put Swaptions — 0.2%
Pay a fixed rate of 2.02% and receive a floating rate based on 3-month LIBOR, Expires 11/10/10, Broker Bank of America NA		5,700		17,972
Pay a fixed rate of 4.22% and receive a floating rate based on 3-month LIBOR, Expires 4/29/11, Broker Credit Suisse International		4,500		13,648
Pay a fixed rate of 4.02% and receive a floating rate based on 3-month LIBOR, Expires 5/05/11, Broker Credit Suisse International		9,100		39,694
Pay a fixed rate of 4.01% and receive a floating rate based on 3-month LIBOR, Expires 5/16/11, Broker Goldman Sachs Bank USA		6,000		28,938
Pay a fixed rate of 3.86% and receive a floating rate based on 3-month LIBOR, Expires 5/19/11, Broker JPMorgan Chase Bank NA		10,700		66,843
Pay a fixed rate of 4.39% and receive a floating rate based on 3-month LIBOR, Expires 5/08/12, Broker Citibank NA		2,300		30,059
Pay a fixed rate of 3.89% and receive a floating rate based on 3-month LIBOR, Expires 7/09/12, Broker Goldman Sachs Bank USA		4,200		99,229
Pay a fixed rate of 3.93% and receive a floating rate based on 3-month LIBOR, Expires 7/16/12, Broker Goldman Sachs Bank USA		4,700		108,490
Pay a fixed rate of 3.70% and receive a floating rate based on 3-month LIBOR, Expires 8/03/12, Broker Credit Suisse International		4,700		136,070
Pay a fixed rate of 3.72% and receive a floating rate based on 3-month LIBOR, Expires 8/06/12, Broker Deutsche Bank AG		5,000		143,730
Pay a fixed rate of 4.21% and receive a floating rate based on 3-month LIBOR, Expires 4/22/13, Broker JPMorgan Chase Bank NA		5,300		19,059
Pay a fixed rate of 5.20% and receive a floating rate based on 3-month LIBOR, Expires 4/28/15, Broker Citibank NA		9,300		248,301
				952,033
Total Options Purchased (Cost — $5,760,853) — 1.9%				7,399,328
Total Investments Before Borrowed Bonds, TBA Sale Commitments and Options Written (Cost — $546,282,337*) — 150.4%				573,604,191

Borrowed Bonds	Par (000)			Value
U.S. Treasury Notes, 2.63%, 8/15/20	USD	290	$	(293,716	)
Total Borrowed Bonds (Proceeds — $293,743) — (0.1)%				(293,716	)

TBA Sale Commitments (n)
Fannie Mae Mortgage-Backed Securities:
4.00%, 4/01/25 – 9/15/40	5,900	(6,196,841	)
4.50%, 9/15/40	8,500	(8,925,000	)
5.00%, 2/01/39 – 9/15/40	17,900	(19,007,563	)
5.50%, 12/01/13 – 9/15/40	800	(857,297	)
6.00%, 3/01/16 – 9/15/40	7,640	(8,224,933	)
Freddie Mac Mortgage-Backed Securities:
4.00%, 3/01/25 – 6/01/25	16,400	(17,214,883	)
4.50%, 4/01/40 – 9/15/40	6,000	(6,292,500	)
Total TBA Sale Commitments (Proceeds — $66,590,987) — (17.5)%		(66,719,017	)

Options Written	Notional Amount (000)
Over-the-Counter Call Swaptions — (2.7)%
Pay a fixed rate of 4.92% and receive a floating rate based on 3-month LIBOR, Expires 11/04/10, Broker Barclays Bank Plc		15,000	(3,202,425	)
Pay a fixed rate of 4.06% and receive a floating rate based on 3-month LIBOR, Expires 5/12/11, Broker Royal Bank of Scotland Plc		6,800	(836,652	)
Pay a fixed rate of 4.06% and receive a floating rate based on 3-month LIBOR, Expires 5/13/11, Broker BNP Paribas SA		3,500	(429,674	)
Pay a fixed rate of 3.86% and receive a floating rate based on 3-month LIBOR, Expires 6/02/11, Broker UBS AG		5,000	(528,005	)
Pay a fixed rate of 4.14% and receive a floating rate based on 3-month LIBOR, Expires 6/15/12, Broker Deutsche Bank AG		3,500	(381,640	)
Pay a fixed rate of 4.05% and receive a floating rate based on 3-month LIBOR, Expires 6/18/12, Broker Deutsche Bank AG		3,500	(359,842	)
Pay a fixed rate of 3.83% and receive a floating rate based on 3-month LIBOR, Expires 7/30/12, Broker Citibank NA		1,700	(147,660	)
Pay a fixed rate of 4.90% and receive a floating rate based on 3-month LIBOR, Expires 3/04/13, Broker Deutsche Bank AG		4,800	(728,155	)

See Notes to Financial Statements.
60	ANNUAL REPORT	AUGUST 31, 2010

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

Options Written	Notional Amount (000)			Value
Over-the-Counter Call Swaptions (concluded)
Pay a fixed rate of 4.92% and receive a floating rate based on 3-month LIBOR, Expires 3/05/13, Broker Deutsche Bank AG	USD	3,300	$	(506,464	)
Pay a fixed rate of 5.00% and receive a floating rate based on 3-month LIBOR, Expires 4/22/13, Broker JPMorgan Chase Bank NA		6,000		(942,624	)
Pay a fixed rate of 4.32% and receive a floating rate based on 3-month LIBOR, Expires 5/28/13, Broker Royal Bank of Scotland Plc		500		(54,225	)
Pay a fixed rate of 4.07% and receive a floating rate based on 3-month LIBOR, Expires 7/08/13, Broker Deutsche Bank AG		1,700		(156,432	)
Pay a fixed rate of 4.06% and receive a floating rate based on 3-month LIBOR, Expires 7/15/13, Broker Credit Suisse International		2,600		(237,206	)
Pay a fixed rate of 5.33% and receive a floating rate based on 3-month LIBOR, Expires 7/17/13, Broker JPMorgan Chase Bank NA		9,200		(1,021,044	)
Pay a fixed rate of 4.84% and receive a floating rate based on 3-month LIBOR, Expires 12/02/14, Broker JPMorgan Chase Bank NA		2,600		(331,672	)
Pay a fixed rate of 4.21% and receive a floating rate based on 3-month LIBOR, Expires 8/06/15, Broker Goldman Sachs Bank USA		3,800		(202,103	)
Pay a fixed rate of 3.97% and receive a floating rate based on 3-month LIBOR, Expires 8/11/15, Broker Bank of America NA		2,800		(129,575	)
Pay a fixed rate of 4.76% and receive a floating rate based on 3-month LIBOR, Expires 5/30/17, Broker JPMorgan Chase Bank NA		3,100		(351,543	)
				(10,546,941	)
Over-the-Counter Put Swaptions — (0.4)%
Receive a fixed rate of 2.32% and pay a floating rate based on 3-month LIBOR, Expires 11/10/10, Broker Bank of America NA		5,700		(7,393	)
Receive a fixed rate of 4.92% and pay a floating rate based on 3-month LIBOR, Expires 11/04/10, Broker Barclays Bank Plc		15,000		(285	)
Receive a fixed rate of 2.10% and pay a floating rate based on 3-month LIBOR, Expires 12/02/10, Broker Citibank NA		14,900		(1,058	)
Receive a fixed rate of 4.06% and pay a floating rate based on 3-month LIBOR, Expires 5/12/11, Broker Royal Bank of Scotland Plc		6,800		(29,254	)
Receive a fixed rate of 4.06% and pay a floating rate based on 3-month LIBOR, Expires 5/13/11, Broker BNP Paribas SA		3,500		(15,221	)
Receive a fixed rate of 3.86% and pay a floating rate based on 3-month LIBOR, Expires 6/02/11, Broker UBS AG		5,000		(33,845	)
Receive a fixed rate of 4.14% and pay a floating rate based on 3-month LIBOR, Expires 6/15/12, Broker Deutsche Bank AG		3,500		(62,940	)
Receive a fixed rate of 4.05% and pay a floating rate based on 3-month LIBOR, Expires 6/18/12, Broker Deutsche Bank AG		3,500		(68,547	)

Options Written	Notional Amount (000)			Value
Over-the-Counter Put Swaptions (concluded)
Receive a fixed rate of 3.83% and pay a floating rate based on 3-month LIBOR, Expires 7/30/12, Broker Citibank NA	USD	1,700	$	(43,680	)
Receive a fixed rate of 4.00% and pay a floating rate based on 3-month LIBOR, Expires 8/13/12, Broker Morgan Stanley Capital Services, Inc.		8,100		(183,668	)
Receive a fixed rate of 4.90% and pay a floating rate based on 3-month LIBOR, Expires 3/04/13, Broker Deutsche Bank AG		4,800		(74,894	)
Receive a fixed rate of 4.92% and pay a floating rate based on 3-month LIBOR, Expires 3/05/13, Broker Deutsche Bank AG		3,300		(50,642	)
Receive a fixed rate of 5.00% and pay a floating rate based on 3-month LIBOR, Expires 4/22/13, Broker JPMorgan Chase Bank NA		6,000		(93,432	)
Receive a fixed rate of 4.32% and pay a floating rate based on 3-month LIBOR, Expires 5/28/13, Broker Royal Bank of Scotland Plc		500		(13,273	)
Receive a fixed rate of 4.07% and pay a floating rate based on 3-month LIBOR, Expires 7/08/13, Broker Deutsche Bank AG		1,700		(56,020	)
Pay a fixed rate of 4.06% and receive a floating rate based on 3-month LIBOR, Expires 7/15/13, Broker Credit Suisse International		2,600		(86,830	)
Receive a fixed rate of 5.33% and pay a floating rate based on 3-month LIBOR, Expires 7/17/13, Broker JPMorgan Chase Bank NA		9,200		(57,868	)
Receive a fixed rate of 4.84% and pay a floating rate based on 3-month LIBOR, Expires 12/02/14, Broker JPMorgan Chase Bank NA		2,600		(78,049	)
Receive a fixed rate of 4.47% and pay a floating rate based on 3-month LIBOR, Expires 8/05/15, Broker JPMorgan Chase Bank NA		7,900		(170,830	)
Receive a fixed rate of 4.21% and pay a floating rate based on 3-month LIBOR, Expires 8/06/15, Broker Goldman Sachs Bank USA		3,800		(93,700	)
Receive a fixed rate of 3.97% and pay a floating rate based on 3-month LIBOR, Expires 8/11/15, Broker Bank of America NA		2,800		(78,221	)
Receive a fixed rate of 4.76% and pay a floating rate based on 3-month LIBOR, Expires 5/30/17, Broker JPMorgan Chase Bank NA		3,100		(132,829	)
				(1,432,479	)
Total Options Written (Premiums Received — $8,239,160) — (3.1)%				(11,979,420	)
Total Investments, Net of Borrowed Bonds, TBA Sale Commitments and Options Written — 129.7%				494,612,038
Liabilities in Excess of Other Assets — (29.7)%				(113,232,562	)
Net Assets — 100.0%			$	381,379,476

See Notes to Financial Statements.
	ANNUAL REPORT	AUGUST 31, 2010	61

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

* The cost and unrealized appreciation (depreciation) of investments as of August 31, 2010, as computed for federal income tax purposes, were as follows:

Aggregate cost	$	546,874,632
Gross unrealized appreciation	$	37,100,850
Gross unrealized depreciation		(10,371,291	)
Net unrealized appreciation	$	26,729,559

(a)	Security exempt from registration under Rule 144A of the Securities Act of 1933.
	These securities may be resold in transactions exempt from registration to qualified institutional investors.
(b)	Variable rate security. Rate shown is as of report date.
(c)	Non-income producing security.
(d)	All or a portion of security has been pledged as collateral in connection with swaps.
(e)	Issuer filed for bankruptcy and/or is in default of interest payments.
(f)	All or a portion of security has been pledged as collateral in connection with open reverse repurchase agreements.
(g)	Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown reflects the current yield as of report date.
(h)	Represents a payment-in-kind security which may pay interest/dividends in additional face/shares.
(i)	All or a portion of security has been pledged as collateral in connection with Term Asset-Backed Securities Loan Facility (“TALF”) Program.
(j)	Amount is less than $1,000.
(k)	Other interests represent beneficial interest in liquidation trusts and other reorganization entities and are non-income producing.
(l)	Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(m)	All or a portion of security has been pledged as collateral in connection with open financial futures contracts.
(n)	Represents or includes a to-be-announced (“TBA”) transaction. Unsettled TBA transactions as of report date were as follows:

Counterparty	Value			Unrealized Appreciation (Depreciation)
Credit Suisse Securities LLC	$	(4,516,342	)	$	(10,748	)
Deutsche Bank Securities, Inc.	$	(5,194,201	)	$	(52,467	)
Goldman Sachs & Co.	$	7,980,173		$	27,870
Greenwich Financial Services	$	(3,983,279	)	$	12,775
Morgan Stanley Capital Services, Inc.		—		$	2,531
Nomura Securities International, Inc.	$	10,990,732		$	22,419
UBS Securities	$	(7,867,126	)	$	(44,805	)
Wells Fargo Bank, NA	$	(17,215,882	)	$	(43,319	)

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

Affiliate	Shares Held at August 31, 2009		Net Activity			Shares Held at August 31, 2010		Income
BlackRock Liquidity Funds, TempFund, Institutional Class		30,000,661		(30,000,661	)		—		$4,942

• Foreign currency exchange contracts as of August 31, 2010 were as follows:

Currency Purchased		Currency Sold		Counterparty		Settlement Date		Unrealized Appreciation (Depreciation)
GBP	2,175,000	USD	3,475,346		Royal Bank of Scotland		9/07/10	$	(139,814	)
GBP	1,515,000	USD	2,422,152		UBS Securities		9/07/10		(98,782	)
USD	5,878,908	GBP	3,690,000		Goldman Sachs Bank USA		9/07/10		220,007
USD	1,776,552	EUR	1,405,500		Citibank NA		9/15/10		(4,530	)
EUR	3,205,000	USD	4,092,112		Goldman Sachs Bank USA		10/14/10		(30,801	)
USD	814,398	GBP	533,500		Citibank NA		10/20/10		(3,519	)
Total								$	(57,439	)

• Reverse repurchase agreements outstanding as of August 31, 2010 were as follows:

Counterparty	Interest Rate			Trade Date		Maturity Date		Net Closing Amount		Face Amount
RBS Securities, Inc.		0.40	%		1/13/10		Open	$	2,914,883	$	2,908,350
Barclays Capital, Inc.		0.27	%		3/04/10		Open		2,115,957		2,114,044
Barclays Capital, Inc.		0.29	%		3/04/10		Open		15,616,448		15,602,329
Credit Suisse Securities (USA) LLC		0.30	%		3/05/10		Open		4,318,122		4,313,809
Credit Suisse Securities (USA) LLC		0.27	%		7/28/10		Open		5,882,732		5,881,531
Morgan Stanley & Co., Inc.		0.23	%		8/02/10		9/02/10		14,194,951		14,192,230
Barclays Capital, Inc.		0.25	%		8/11/10		Open		1,867,818		1,867,600
Barclays Capital, Inc.		0.27	%		8/11/10		9/01/10		7,920,674		7,919,750
BNP Paribas Securities Corp.		0.25	%		8/11/10		9/14/10		35,286,900		35,282,000
JPMorgan Securities, Inc.		0.11	%		8/27/10		Open		3,995,031		3,995,000
JPMorgan Securities, Inc.		0.21	%		8/30/10		Open		12,835,657		12,835,550
Total								$	106,949,173	$	106,912,193

• Financial futures contracts purchased as of August 31, 2010 were as follows:

Contracts	Issue		Exchange		Expiration Date		Notional Value		Unrealized Appreciation
59		2-Year U.S. Treasury Bond		Chicago Mercantile		September 2010	$	12,929,154	$	17,659
63		10-Year U.S. Treasury Bond		Chicago Mercantile		September 2010	$	7,953,749		15,751
72		EuroBund		Eurex		September 2010	$	12,122,084		143,582
340		30-Year U.S. Treasury Bond		Chicago Mercantile		December 2010	$	45,456,879		453,746
129		30-Year Ultra U.S. Treasury Bond		Chicago Mercantile		December 2010	$	18,628,256		24,338
Total									$	655,076

See Notes to Financial Statements.
62	ANNUAL REPORT	AUGUST 31, 2010

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

• Financial futures contracts sold as of August 31, 2010 were as follows:

Contracts	Issue	Exchange	Expiration Date	Notional Value		Unrealized Depreciation
3	2-Year U.S. Treasury Bond	Chicago Mercantile	December 2010	$	657,229	$	(193	)
654	5-Year U.S. Treasury Bond	Chicago Mercantile	December 2010	$	78,471,718		(217,767	)
204	10-Year U.S. Treasury Bond	Chicago Mercantile	December 2010	$	25,524,501		(102,999	)
60	Euro Dollars	Chicago Mercantile	December 2011	$	14,836,350		(40,650	)
Total						$	(361,609	)

• Credit default swaps on traded indexes — buy protection outstanding as of August 31, 2010 were as follows:

Issuer	Received Rate	Counterparty	Expiration	Notional Amount (000)		Unrealized Appreciation
Dow Jones CDX North America Investment Grade Index 14	1.00%	Citibank NA	June 2015	$	3,300	$	3,636
Dow Jones CDX North America Investment Grade Volatility Index	1.00%	Citibank NA	June 2015	$	3,300		640
Total						$	4,276

• Credit default swaps on traded indexes — sold protection outstanding as of August 31, 2010 were as follows:

Issuer	Received Rate	Counterparty	Expiration	Average Credit Rating1	Notional Amount (000)2		Unrealized Appreciation
Dow Jones CDX North America High Yield	5.00%	Credit Suisse International	June 2015	B	$	13,400	$	119,048
Dow Jones CDX North America High Yield	5.00%	Credit Suisse International	June 2015	B	$	1,500		4,343
Total							$	123,391

		1	Using S&P’s rating.
		2	The maximum potential amount the Trust may pay should a negative event take place as defined under the terms of agreement.
•	Credit default swaps on single-name issuers — buy protection outstanding as of August 31, 2010 were as follows:

Issuer	Received Rate	Counterparty	Expiration	Notional Amount (000)		Unrealized Appreciation
NOVA Chemicals Corp.	5.00%	Citibank NA	March 2012	$	50	$	(956	)
Macy’s, Inc.	7.50%	Morgan Stanley Capital Services, Inc.	June 2012	$	425		(46,299	)
Macy’s, Inc.	8.00%	Morgan Stanley Capital Services, Inc.	June 2012	$	150		(17,683	)
NOVA Chemicals Corp.	5.00%	JPMorgan Chase Bank NA	June 2012	$	65		(902	)
NOVA Chemicals Corp.	5.00%	Goldman Sachs Bank USA	December 2013	$	275		(8,960	)
Macy’s, Inc.	1.00%	Morgan Stanley International	September 2014	$	155		(443	)
Total						$	(75,243	)

• Interest rate swaps outstanding as of August 31, 2010 were as follows:

Fixed Rate	Floating Rate	Counterparty	Expiration	Notional Amount (000)		Unrealized Appreciation (Depreciation)
0.79% (a)	3-month LIBOR	Deutsche Bank AG	July 2012	$	11,700	$	(31,458	)
0.81% (a)	3-month LIBOR	Morgan Stanley Capital Services, Inc.	July 2012	$	11,600		(35,899	)
0.85% (a)	3-month LIBOR	Morgan Stanley Capital Services, Inc.	July 2012	$	11,700		(43,794	)
0.65% (a)	3-month LIBOR	Morgan Stanley Capital Services, Inc.	August 2012	$	1,900		179
0.68% (b)	3-month LIBOR	Morgan Stanley Capital Services, Inc.	August 2012	$	8,700		4,435
0.76% (a)	3-month LIBOR	Credit Suisse International	August 2012	$	7,800		(16,103	)
3.66% (b)	3-month LIBOR	Citibank NA	April 2013	$	5,500		401,039
1.72% (b)	3-month LIBOR	Morgan Stanley Capital Services, Inc.	June 2013	$	9,200		210,174
4.28% (b)	3-month LIBOR	Credit Suisse International	July 2013	$	47,800		4,529,444
1.94% (b)	3-month LIBOR	Royal Bank of Scotland Plc	July 2015	$	2,700		51,070
1.59% (a)	3-month LIBOR	Deutsche Bank AG	August 2015	$	600		(785	)
1.62% (a)	3-month LIBOR	Deutsche Bank AG	August 2015	$	9,100		(27,004	)
1.64% (a)	3-month LIBOR	Morgan Stanley Capital Services, Inc.	August 2015	$	9,300		(38,334	)
1.66% (a)	3-month LIBOR	Royal Bank of Scotland Plc	August 2015	$	8,200		(39,811	)

See Notes to Financial Statements.
	ANNUAL REPORT	AUGUST 31, 2010	63

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

• Interest rate swaps outstanding as of August 31, 2010 were as follows (concluded):

Fixed Rate	Floating Rate	Counterparty	Expiration	Notional Amount (000)		Unrealized Appreciation (Depreciation)
1.67% (a)	3-month LIBOR	Bank of America NA	August 2015	$	2,800	$	(15,446	)
1.69% (a)	3-month LIBOR	Royal Bank of Scotland Plc	August 2015	$	2,300		(14,669	)
1.57% (b)	3-month LIBOR	JPMorgan Chase Bank NA	September 2015	$	1,000		—
2.13% (a)	3-month LIBOR	Barclays Bank Plc	August 2017	$	2,100		(12,154	)
3.34% (b)	3-month LIBOR	Morgan Stanley Capital Services, Inc.	June 2020	$	6,000		467,049
3.05% (b)	3-month LIBOR	Morgan Stanley Capital Services, Inc.	July 2020	$	2,300		118,983
3.05% (a)	3-month LIBOR	UBS AG	July 2020	$	2,100		(108,509	)
2.50% (a)	3-month LIBOR	Deutsche Bank AG	August 2020	$	11,800		(12,266	)
2.56% (a)	3-month LIBOR	Citibank NA	August 2020	$	400		(2,679	)
2.56% (b)	3-month LIBOR	Credit Suisse International	August 2020	$	900		5,922
2.57% (b)	3-month LIBOR	Deutsche Bank AG	August 2020	$	1,200		9,690
2.68% (b)	3-month LIBOR	Citibank NA	August 2020	$	1,500		26,728
2.70% (a)	3-month LIBOR	Morgan Stanley Capital Services, Inc.	August 2020	$	1,800		(35,708	)
2.88% (b)	3-month LIBOR	Bank of America NA	August 2020	$	800		28,790
2.76% (a)	3-month LIBOR	Royal Bank of Scotland Plc	August 2020	$	1,300		(32,633	)
2.92% (a)	3-month LIBOR	Barclays Bank Plc	August 2020	$	1,500		(59,243	)
4.84% (a)	3-month LIBOR	Morgan Stanley Capital Services, Inc.	January 2038	$	4,400		(1,418,003	)
4.44% (a)	3-month LIBOR	JPMorgan Chase Bank NA	April 2040	$	1,400		(358,199	)
Total						$	3,550,806

		(a)	Pays fixed interest rate and receives floating rate.
		(b)	Pays floating interest rate and receives fixed rate.
•	Total return swaps outstanding as of August 31, 2010 were as follows:

Interest Receivable Rate	Counterparty	Expiration Date	Notional Value		Unrealized Appreciation
2.52%	Deutsche Bank AG	May 2020	$	4,300	$	207,062	(a)
2.62%	Morgan Stanley	May 2020	$	7,100	$	410,465	(a)
	Capital Services, Inc.
Total					$	617,527

(a)	Based on the change in return of the Consumer Price Index for All Urban Consumers and pays at maturity.
•	For Trust compliance purposes, the Trust ‘s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by Trust management. This definition may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.
•	Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivatives, which are as follows:
	•	Level 1 — price quotations in active markets/exchanges for identical assets and liabilities
	•	Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
	•	Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments and derivatives)
	The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.
	The following tables summarize the inputs used as of August 31, 2010 in determining the fair valuation of the Trust’s investments and derivatives:

Valuation Inputs	Level 1		Level 2			Level 3		Total
Assets:
Investments in Securities:
Long-Term Investments:
Asset-Backed Securities		—	$	19,239,623		$	5,145,849	$	24,385,472
Common Stocks		—		—			13,235		13,235
Corporate Bonds		—		214,736,931			1,100		214,738,031
Foreign Agency Obligations		—		9,031,267			—		9,031,267
Non-Agency Mortgage-Backed Securities		—		63,998,951			2,331,908		66,330,859
Other Interests		—		—			381		381
Preferred Securities	$	47,598		3,826,280			65,455		3,939,333
Taxable Municipal Bonds		—		13,797,452			—		13,797,452
U.S. Government Sponsored Agency Securities		—		130,906,203			1,499,795		132,405,998
U.S. Treasury Obligations		—		101,268,229			—		101,268,229
Short-Term Securities		—		294,606			—		294,606
Liabilities:
Investments in Securities:
Long-Term Investments:
Borrowed Bonds		—		(293,716	)		—		(293,716	)
TBA Sale Commitments		—		(66,719,017	)		—		(66,719,017	)
TALF Loans		—		(11,763,225	)		—		(11,763,225	)
Total	$	47,598	$	478,323,584		$	9,057,723	$	487,428,905

See Notes to Financial Statements.
64	ANNUAL REPORT	AUGUST 31, 2010

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

	Derivative Financial Instruments1
Valuation Inputs	Level 1			Level 2			Level 3		Total
Assets:
Credit contracts		—		$	127,667			—	$	127,667
Foreign currency exchange contracts		—			220,007			—		220,007
Interest rate contracts	$	670,990			13,236,917			—		13,907,907
Other contracts		—			617,527			—		617,527
Liabilities:
Credit contracts		—			(75,243	)		—		(75,243	)
Foreign currency exchange contracts		—			(277,446	)		—		(277,446	)
Interest rate contracts		(361,609	)		(14,282,117	)		—		(14,643,726	)
Total	$	309,381		$	(432,688	)		—	$	(123,307	)

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

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

	Asset-Backed Securities			Common Stocks		Corporate Bonds			Non-Agency Mortgage-Backed Securities			Other Interests		Preferred Securities		U.S. Government Sponsored Agency Securities			Total
Assets:
Balance, as of August 31, 2009	$	1,229,483			—	$	1,073,273		$	6,225,096		$	381		—	$	11,194,451		$	19,722,684
Accrued discounts/premiums		(234,456	)		—		6,872			(17,469	)		—		—		(453,019	)		(698,072	)
Net realized gain (loss)		—			—		(98,527	)		(105,079	)		—		—		1,432,224			1,228,618
Net change in unrealized appreciation/depreciation2		48,583			—		1,251,947			664,082			—		—		(987,862	)		976,750
Purchases		—			—		91,852			—			—		—		—			91,852
Sales		—			—		(1,627,547	)		(1,532,677	)		—		—		(9,685,999	)		(12,846,223	)
Transfers in3		4,102,239		$	13,235		—			1,579,999			—	$	65,455		—			5,760,928
Transfers out3		—			—		(696,770	)		(4,482,044	)		—		—		—			(5,178,814	)
Balance, as of August 31, 2010	$	5,145,849		$	13,235	$	1,100		$	2,331,908		$	381	$	65,455	$	1,499,795		$	9,057,723

2	Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations. The net change in unrealized appreciation/depreciation on securities still held at August 31, 2010 was $103,970.
3	The Trust’s policy is to recognize transfers in and transfers out as of the end of the period of the event or the change in circumstances that caused the transfer.

See Notes to Financial Statements.
	ANNUAL REPORT	AUGUST 31, 2010	65

Schedule of Investments August 31, 2010	BlackRock Income Trust, Inc. (BKT)
	(Percentages shown are based on Net Assets)

Asset-Backed Securities	Par (000)			Value
First Franklin Mortgage Loan Asset-Backed Certificates, Series 2005-FF2, Class M2, 0.70%, 3/25/35 (a)	$	5,890		$	5,319,088
Freddie Mac Mortgage-Backed Securities, Series T-11, Class A9, 2.36%, 1/25/28 (a)		2,776			2,833,723
GSAA Home Equity Trust, Series 2005-1, Class AF2, 4.32%, 11/25/34 (a)		1,244			1,198,353
Securitized Asset-Backed Receivables LLC Trust, Series 2005-OP2, Class M1, 0.69%, 10/25/35 (a)		1,875			818,396
Small Business Administration Participation Certificates, Class 1:
Series 1996-20E, 7.60%, 5/01/16		287			308,277
Series 1996-20G, 7.70%, 7/01/16		259			282,578
Series 1996-20H, 7.25%, 8/01/16		394			429,759
Series 1996-20K, 6.95%, 11/01/16		695			742,769
Series 1997-20C, 7.15%, 3/01/17		287			312,553
Small Business Administration, Series 1, 1.00%, 4/01/15		2,294			23,110
					12,268,606
Interest Only — 0.2%
Sterling Bank Trust, Series 2004-2, Class Note, 2.08%, 3/30/30 (b)		5,273			278,487
Sterling Coofs Trust, Series 1, 2.36%, 4/15/29		9,394			959,967
					1,238,454
Total Asset-Backed Securities — 2.7%					13,507,060
Non-Agency Mortgage-Backed Securities
Collateralized Mortgage Obligations — 3.0%
Collateralized Mortgage Obligation Trust, Series 40, Class R, 580.50%, 4/01/18		—	(c)		174
Countrywide Alternative Loan Trust, Series 2005-28CB, Class 1A5, 5.50%, 8/25/35		1,741			1,697,927
Deutsche ALT-A Securities, Inc. Alternate Loan Trust, Series 2006-AR5, Class 22A, 5.50%, 10/25/21		1,432			1,263,863
Homebanc Mortgage Trust, Series 2005-4, Class A1, 0.53%, 10/25/35 (a)		3,429			2,500,674
JPMorgan Mortgage Trust, Series 2006-A7, Class 2A2, 5.76%, 1/25/37 (a)		629			500,260
Kidder Peabody Acceptance Corp., Series 1993-1, Class A6, 16.13%, 8/25/23 (a)		95			99,146
Residential Funding Securities LLC, Series 2003-RM2, Class AI5, 8.50%, 5/25/33		4,844			5,049,861
Structured Adjustable Rate Mortgage Loan Trust, Series 2004-11, Class A, 2.83%, 8/25/34 (a)		1,555			1,320,380
WaMu Mortgage Pass-Through Certificates, Series 2006-AR1, Class 2A1C, 1.46%, 1/25/46 (a)		5,586			2,400,705
					14,832,990
Commercial Mortgage-Backed Securities — 4.5%
Credit Suisse Mortgage Capital Certificates:
Series 2006-C5, Class A2, 5.25%, 12/15/39 (d)		14,000			14,437,543
Series 2007-C2, Class A3, 5.54%, 1/15/49 (a)		2,420			2,406,134
First Union-Lehman Brothers Commercial Mortgage, Series 1997-C2, Class D, 7.12%, 11/18/29		2,875			3,065,969
Wachovia Bank Commercial Mortgage Trust, Series 2007-C32, Class A2, 5.93%, 6/15/49 (a)		2,200			2,289,102
					22,198,748
Interest Only Collateralized Mortgage Obligations — 1.3%
Bank of America Mortgage Securities Inc., Series 2003-3, Class 1AIO, 0.28%, 5/25/18 (a)		123,991			439,150
CitiMortgage Alternative Loan Trust, Series 2007-A5, Class 1A7, 6.00%, 5/25/37		1,115			125,461
Non-Agency Mortgage-Backed Securities	Par (000)			Value
Interest Only Collateralized Mortgage Obligations (concluded)
Collateralized Mortgage Obligation Trust, Series 42, Class R, 6,000.00%, 10/01/14	$	—	(c)	$	856
First Boston Mortgage Securities Corp., Series C, Class I-O, 10.97%, 4/25/17		35			5,315
GSMPS Mortgage Loan Trust, Series 1998-5, Class IO, 0.63%, 6/19/27 (a)(b)		5,519			110,384
IndyMac INDX Mortgage Loan Trust, Series 2006-AR33, Class 4AX, 0.17%, 1/25/37		120,588			528,177
Kidder Peabody Mortgage Assets Trust, Series B, Class A2, 9.50%, 4/22/18		32			5,528
MASTR Adjustable Rate Mortgages Trust, Series 2004-3, Class 3AX, 0.98%, 4/25/34		14,009			157,598
MASTR Alternative Loans Trust, Series 2003-9, Class 15X2, 6.00%, 1/25/19		732			101,507
Morgan Stanley Mortgage Loan Trust, Series 2004-3, Class 1AX, 5.00%, 5/25/19		816			57,152
Sequoia Mortgage Trust, Series 2005-2, Class XA, 1.11%, 3/20/35 (a)		40,296			654,802
Structured Adjustable Rate Mortgage Loan Trust:
Series 2005-18, Class 7AX, 5.50%, 9/25/35 (a)		1,200			134,987
Series 2005-20, Class 3AX, 5.50%, 10/25/35		2,566			304,528
Series 2006-2, Class 4AX, 5.50%, 3/25/36 (a)		561			67,371
Series 2006-7, Class 3AS, 6.28%, 8/25/36 (a)		31,666			3,562,450
Vendee Mortgage Trust, Series 1999-2, Class 1IO, 0.05%, 5/15/29 (a)		62,908			131,711
					6,386,977
Interest Only Commercial Mortgage-Backed Securities — 0.0%
CS First Boston Mortgage Securities Corp., Series 1997-C1, Class AX, 1.65%, 6/20/29 (a)(b)		4,248			135,743
Morgan Stanley Capital I, Series 1997-HF1, Class X, 2.23%, 7/15/29 (a)(b)		32			2
					135,745
Principal Only Collateralized Mortgage Obligations — 1.0%
Countrywide Home Loan Mortgage Pass-Through Trust:
Series 2003-26, Class PO, 8/25/33		2,724			1,875,752
Series 2003-J4, Class PO, 6/25/33		453			434,413
Series 2003-J5, Class PO, 7/25/33		889			672,181
Series 2003-J8, Class PO, 9/25/23		653			513,543
Drexel Burnham Lambert CMO Trust:
Series K, Class 1, 9/23/17		13			11,924
Series V, Class 1, 9/01/18		71			69,166
MASTR Asset Securitization Trust, Series 2004-3, Class 4A15, 3/25/34		247			198,605
Residential Asset Securitization Trust, Series 2005-A15, Class 1A8, 2/25/36		983			760,361
Structured Mortgage Asset Residential Trust, Series 1993-3C, Class CX, 4/25/24		8			5,679
Washington Mutual Alternative Mortgage Pass-Through Certificates, Series 2005-9, Class CP, 11/25/35		668			491,012
					5,032,636
Total Non-Agency Mortgage-Backed Securities — 9.8%					48,587,096

See Notes to Financial Statements.
66	ANNUAL REPORT	AUGUST 31, 2010

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

U.S. Government Sponsored Agency Securities	Par (000)			Value
Agency Obligations — 2.6%
Federal Housing Administration, General Motors Acceptance Corp. Projects, Series 56, 7.43%, 11/01/22	$	233		$	230,768
Federal Housing Administration, Merrill Projects, Series 54, 7.43%, 5/15/23		2			2,085
Federal Housing Administration, Reilly Project, Series 41, 8.28%, 3/01/20		622			616,190
Federal Housing Administration, USGI Projects:
Series 87, 7.43%, 12/01/22		70			69,207
Series 99, 7.43%, 6/01/21		4,708			4,660,875
Series 99, 7.43%, 10/01/23		43			42,926
Series 99, 7.43%, 10/01/23		128			126,826
Freddie Mac:
5.50%, 7/18/16 (f)		280			336,058
5.00%, 2/16/17		570			669,572
Resolution Funding Corp., 9.88%, 4/15/30 (e)		13,000			6,077,669
					12,832,176
Collateralized Mortgage Obligations — 14.4%
Fannie Mae Mortgage-Backed Securities:
Series 1991-38, Class F, 8.33%, 4/25/21 (a)		9			8,744
Series 1991-38, Class SA, 10.19%, 4/25/21 (a)		9			8,782
Series 1991-46, Class S, 2,454.59%, 5/25/21 (a)		—	(c)		7,006
Series 1991-87, Class S, 25.94%, 8/25/21 (a)		70			111,559
Series 1993-247, Class SN, 10.00%, 12/25/23 (a)		515			608,081
Series 2003-32, Class VT, 6.00%, 9/25/15		4,914			5,067,666
Series 2003-135, Class PB, 6.00%, 1/25/34		12,264			13,936,806
Series 2004-29, Class HC, 7.50%, 7/25/30		1,123			1,172,619
Series 2004-31, Class ZG, 7.50%, 5/25/34		2,943			3,615,045
Series 2005-68, Class PC, 5.50%, 7/25/35		1,197			1,327,805
Series 2005-73, Class DS, 16.86%, 8/25/35 (a)		3,656			4,620,255
Series 2006-2, Class KP, 0.00%, 2/25/35 (a)		679			632,485
Series G-7, Class S, 1,112.85%, 3/25/21 (a)		—	(c)		4,742
Series G-17, Class S, 1,051.96%, 6/25/21 (a)		—	(c)		6,920
Series G-49, Class S, 1,005.55%, 12/25/21 (a)		—	(c)		2,665
Freddie Mac Mortgage-Backed Securities:
Series 19, Class F, 8.50%, 3/15/20		113			123,505
Series 19, Class R, 16,113.87%, 3/15/20 (a)		—	(c)		1,784
Series 40, Class K, 6.50%, 8/17/24		433			488,398
Series 75, Class R, 9.50%, 1/15/21		—	(c)		3
Series 75, Class RS, 21.65%, 1/15/21 (a)		—	(c)		3
Series 173, Class R, 9.00%, 11/15/21		—	(c)		16
Series 173, Class RS, 9.18%, 11/15/21 (a)		—	(c)		16
Series 1057, Class J, 1,008.00%, 3/15/21		—	(c)		2,609
Series 1160, Class F, 38.83%, 10/15/21 (a)		23			43,927
Series 1961, Class H, 6.50%, 5/15/12		21			20,803
Series 2218, Class Z, 8.50%, 3/15/30		6,244			7,515,065
Series 2542, Class UC, 6.00%, 12/15/22		10,200			11,098,875
Series 2758, Class KV, 5.50%, 5/15/23		10,025			11,299,113
Series 2765, Class UA, 4.00%, 3/15/11		476			482,782
Series 2861, Class AX, 10.39%, 9/15/34 (a)		332			371,765
Series 2927, Class BZ, 5.50%, 2/15/35		2,806			3,209,548
Ginnie Mae Mortgage-Backed Securities:
Series 1996-5, Class Z, 7.00%, 5/16/26		662			704,033
Series 2001-33, Class PB, 6.50%, 7/20/31		1,078			1,151,735
Series 2004-89, Class PE, 6.00%, 10/20/34		3,392			3,804,411
					71,449,571
Federal Deposit Insurance Corporation Guaranteed — 0.8%
Citigroup Funding, Inc., 1.88%, 10/22/12		3,800			3,892,971
U.S. Government Sponsored Agency Securities	Par (000)			Value
Interest Only Collateralized Mortgage Obligations — 9.3%
Fannie Mae Mortgage-Backed Securities:
Series 7, Class 2, 8.50%, 4/01/17 (a)	$	6		$	1,025
Series 89, Class 2, 8.00%, 10/01/18		10			1,598
Series 94, Class 2, 9.50%, 8/01/21		4			759
Series 348, Class 25, 4.50%, 1/01/19		12,044			1,118,445
Series 1990-123, Class M, 1,009.50%, 10/25/20		—	(c)		762
Series 1990-136, Class S, 19.80%, 11/25/20 (a)		17			26,252
Series 1991-38, Class N, 1,008.50%, 4/25/21		—	(c)		18
Series 1991-99, Class L, 930.00%, 8/25/21		—	(c)		3,100
Series 1991-139, Class PT, 648.35%, 10/25/21		—	(c)		4,562
Series 1993-199, Class SB, 2.63%, 10/25/23 (a)		1,086			103,106
Series 1996-68, Class SC, 2.26%, 1/25/24 (a)		736			51,834
Series 1997-50, Class SI, 1.20%, 4/25/23 (a)		418			14,800
Series 1997-90, Class M, 6.00%, 1/25/28		7,699			1,058,046
Series 1999-W4, Class IO, 6.50%, 12/25/28		426			84,953
Series 2003-122, Class IC, 5.00%, 9/25/18		18			3
Series 2005-43, Class IC, 6.00%, 3/02/34		12			—
Series 2005-45, Class EW, 6.37%, 6/25/35 (a)		39,745			6,481,567
Series 2006-70, Class JI, 6.37%, 6/25/36 (a)		24,614			3,500,077
Series 2008-73, Class SA, 5.84%, 8/25/38 (a)		21,837			2,224,050
Series 2009-3, Class JI, 6.00%, 1/25/49		15,306			1,529,642
Series 2009-43, Class SA, 6.07%, 6/25/39 (a)		34,814			3,554,629
Series G-10, Class S, 1,076.59%, 5/25/21 (a)		—	(c)		16,811
Series G-12, Class S, 1,142.80%, 5/25/21 (a)		—	(c)		10,530
Series G-33, Class PV, 1,078.40%, 10/25/21		—	(c)		9,200
Series G-50, Class G, 1,158.63%, 12/25/21		—	(c)		1,174
Series G92-5, Class H, 9.00%, 1/25/22		113			20,533
Series G92-12, Class C, 1,016.90%, 2/25/22		—	(c)		6,926
Series G92-60, Class SB, 1.60%, 10/25/22 (a)		318			14,424
Freddie Mac Mortgage-Backed Securities:
Series 176, Class M, 1,010.00%, 7/15/21		—	(c)		782
Series 192, Class U, 1,009.03%, 2/15/22 (a)		—	(c)		70
Series 200, Class R, 194,822.03%, 12/15/22 (a)		—	(c)		16
Series 1043, Class H, 43.59%, 2/15/21 (a)		9			20,857
Series 1054, Class I, 854.20%, 3/15/21 (a)		—	(c)		1,553
Series 1056, Class KD, 1,084.80%, 3/15/21		—	(c)		2,150
Series 1148, Class E, 1,160.00%, 10/15/21 (a)		—	(c)		5,780
Series 1914, Class PC, 0.75%, 12/15/11		402			1,267
Series 2545, Class NI, 5.50%, 3/15/22		602			21,641
Series 2559, Class IO, 0.50%, 8/15/30 (a)		267			3,909
Series 2611, Class QI, 5.50%, 9/15/32		5,610			668,350
Series 2687, Class IL, 5.00%, 9/15/18		22			6
Series 2694, Class LI, 4.50%, 7/15/19		473			6,210
Series 2949, Class IO, 5.50%, 3/15/35		964			69,268
Series 3437, Class SD, 6.52%, 4/15/38 (a)		33,770			4,070,300
Ginnie Mae Mortgage-Backed Securities:
Series 2005-31, Class SA, 5.87%, 4/16/35 (a)		23,655			3,313,273
Series 2006-49, Class SA, 6.19%, 2/20/36 (a)		5,767			459,816
Series 2007-23, Class ST, 5.93%, 4/20/37 (a)		4,994			486,922
Series 2008-1, Class AS, 6.23%, 1/20/38 (a)		7,842			803,755
Series 2009-88, Class ES, 6.07%, 10/16/39 (a)		11,525			1,380,565
Series 2009-92, Class SC, 5.92%, 10/16/39 (a)		14,577			1,371,330
Series 2010-4, Class SJ, 6.32%, 5/16/34 (a)		33,955			6,696,808
Series 2010-47, Class BX, 6.27%, 8/16/34 (a)		24,062			3,997,051
Series 2010-101, Class YT, 2.00%, 8/16/13		67,517			2,785,083
					46,005,588
Interest Only Mortgage-Backed Securities — 0.0%
Freddie Mac Mortgage-Backed Securities, 2.73%, 1/01/35 (a)		208			216,782

See Notes to Financial Statements.
	ANNUAL REPORT	AUGUST 31, 2010	67

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

U.S. Government Sponsored Agency Securities	Par (000)			Value
Mortgage-Backed Securities — 148.5%
Fannie Mae Mortgage-Backed Securities:
4.00%, 9/15/40 (g)	$	9,000		$	9,319,221
4.50%, 1/01/39 – 11/15/40 (f)(g)		157,883			166,093,720
5.00%, 1/01/23 – 9/15/40 (f)(g)		157,921			167,821,851
5.50%, 9/15/25 – 10/15/40 (f)(g)		241,357			258,019,251
5.97%, 8/01/16		3,091			3,590,006
6.00%, 9/15/40 (g)		38,900			41,878,262
6.50%, 10/15/40 (g)		41,300			44,868,568
7.50%, 2/01/22		—	(d)		157
9.50%, 1/01/19 – 9/01/19		3			3,595
Freddie Mac Mortgage-Backed Securities:
4.51%, 11/01/17 (a)		20			21,019
4.98%, 10/01/34 (a)		546			569,260
5.00%, 2/01/22 – 4/01/22 (f)		1,776			1,893,891
5.50%, 9/15/25 (g)		7,000			7,520,625
6.50%, 9/15/40 (g)		100			108,672
9.00%, 9/01/20 (f)		67			73,837
Ginnie Mae Mortgage-Backed Securities:
5.00%, 9/15/40 (g)		23,900			25,681,291
6.50%, 9/15/40 (g)		8,500			9,332,737
7.50%, 8/15/21 – 12/15/23		274			312,797
8.00%, 10/15/22 – 2/15/29		95			110,068
9.00%, 6/15/18 – 9/15/21		9			10,512
					737,229,340
Principal Only Collateralized Mortgage Obligations — 0.6%
Fannie Mae Mortgage-Backed Securities:
Series 203, Class 1, 2/01/23		25			22,016
Series 228, Class 1, 6/01/23		17			14,931
Series 1991-7, Class J, 2/25/21		27			24,232
Series 1993-51, Class E, 2/25/23		84			74,624
Series 1993-70, Class A, 5/25/23		13			11,679
Series 1999-W4, Class PO, 2/25/29		219			201,672
Series 2002-13, Class PR, 3/25/32		494			447,731
Series G93-2, Class KB, 1/25/23		195			171,802
Freddie Mac Mortgage-Backed Securities:
Series 1418, Class M, 11/15/22		89			79,823
Series 1571, Class G, 8/15/23		522			465,192
Series 1691, Class B, 3/15/24		1,221			1,086,689
Series 1739, Class B, 2/15/24		71			69,050
Series T-8, Class A10, 11/15/28		155			153,962
					2,823,403
Total U.S. Government Sponsored Agency Securities — 176.2%					874,449,831
U.S. Treasury Obligations
U.S. Treasury Bonds, 8.00%, 11/15/21 (f)(h)		3,450			5,231,601
U.S. Treasury Notes:
2.63%, 8/15/20 (i)		60,498			61,273,133
4.50%, 8/15/39 (f)		330			388,059
4.63%, 2/15/40 (f)(h)		2,885			3,461,100
4.38%, 5/15/40 (i)		32,935			38,003,904
3.88%, 8/15/40		2,835			3,013,517
Total U.S. Treasury Obligations — 22.4%					111,371,314
Total Long-Term Investments (Cost — $1,033,517,088) — 211.1%					1,047,915,301
Short-Term Securities	Shares			Value
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.25% (j)(k)		857,657		$	857,657
Total Short-Term Securities (Cost — $857,657) — 0.2%					857,657
Options Purchased	Contracts
Exchange-Traded Call Options — 0.0%
Five-Year U.S. Treasury Note Future, Strike Price $121.00, Expires 11/26/10		29			17,218
Exchange-Traded Put Options — 0.0%
Five-Year U.S. Treasury Note Future, Strike Price $117.00, Expires 11/26/10		29			4,758
	Notional Amount (000)
Over-the-Counter Call Swaptions — 0.3%
Receive a fixed rate of 5.47% and pay a floating rate based on 3-month LIBOR, Expires 5/08/12, Broker Bank of America NA	$	6,200			1,325,989
Over-the-Counter Put Swaptions — 0.0%
Pay a fixed rate of 5.47% and receive a floating rate based on 3-month LIBOR, Expires 5/08/12, Broker Bank of America NA		6,200			29,729
Total Options Purchased (Cost — $512,420) — 0.3%					1,377,694
Total Investments Before TBA Sale Commitments and Options Written (Cost — $1,034,887,165*) — 211.6%					1,050,150,652
TBA Sale Commitments (g)	Par (000)
Fannie Mae Mortgage-Backed Securities:
4.50%, 1/01/39 – 11/15/40		11,300			(11,865,000)
5.00%, 1/01/23 – 9/15/40		48,300			(51,294,502)
5.50%, 9/15/25 – 10/15/40		87,000			(93,022,053)
6.00%, 9/15/40		2,700			(2,906,717)
Total TBA Sale Commitments (Proceeds — $158,720,620) — (32.0)%					(159,088,272)
Options Written	Notional Amount (000)
Over-the-Counter Call Swaptions — (0.4)%
Pay a fixed rate of 3.43% and receive a floating rate based on 3-month LIBOR, Expires 3/24/11, Broker JPMorgan Chase Bank NA		7,000			(524,944)
Pay a fixed rate of 5.33% and receive a floating rate based on 3-month LIBOR, Expires 7/17/13, Broker JPMorgan Chase Bank NA		11,100			(1,231,911)
					(1,756,855)

See Notes to Financial Statements.
68	ANNUAL REPORT	AUGUST 31, 2010

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

Options Written	Notional Amount (000)		Value
Over-the-Counter Put Swaptions — (0.0)%
Receive a fixed rate of 3.43% and pay a floating rate based on 3-month LIBOR, Expires 3/24/11, Broker JPMorgan Chase Bank NA	$	7,000	$	(60,221	)
Receive a fixed rate of 5.33% and pay a floating rate based on 3-month LIBOR, Expires 7/17/13, Broker JPMorgan Chase Bank NA		11,100		(69,819	)
				(130,040	)
Total Options Written (Premiums Received — $1,358,915) — (0.4)%				(1,886,895	)
Total Investments, Net of TBA Sale Commitments and Outstanding Options Written — 179.2%				889,175,485
Liabilities in Excess of Other Assets — (79.2)%				(392,915,632	)
Net Assets — 100.0%			$	496,259,853

*	The cost and unrealized appreciation (depreciation) of investments as of August 31, 2010,as computed for federal income tax purposes, were as follows:
	Aggregate cost	$	1,035,164,339
	Gross unrealized appreciation	$	38,286,881
	Gross unrealized depreciation		(23,300,568	)
	Net unrealized appreciation	$	14,986,313

(a)	Variable rate security. Rate shown is as of report date.
(b)	Security exempt from registration under Rule 144A of the Securities Act of 1933.
	These securities may be resold in transactions exempt from registration to qualified institutional investors.
(c)	Amount is less than $1,000.
(d)	All or a portion of security has been pledged as collateral in connection with Term Asset-Backed Securities Loan Facility (“TALF”) Program.
(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 or includes a to-be-announced (“TBA”) transaction. Unsettled TBA transactions as of report date were as follows:

Counterparty	Value			Unrealized Appreciation (Depreciation)
Citigroup Global Markets, Inc.	$	37,518,568		$	46,693
Credit Suisse Securities LLC	$	88,837,365		$	(199,916	)
Deutsche Bank Securities, Inc.	$	82,808,984		$	(393,006	)
Goldman Sachs & Co.	$	44,388,152		$	(88,057	)
Greenwich Financial Services	$	4,532,883		$	32,779
JPMorgan Chase Securities, Inc.	$	25,632,482		$	62,036
Morgan Stanley & Co., Inc.	$	(1,699,000	)		—
Nomura Securities International Inc.	$	15,471,840		$	28,278

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

Affiliate	Shares Held at August 31, 2009		Net Activity			Shares Held at August 31, 2010		Income
BlackRock Liquidity Funds, TempFund, Institutional Class		178,238,591		(177,380,934	)		857,657	$	222,652

(k)	Represents the current yield as of report date.
•	Interest rate floors outstanding as of August 31, 2010 were as follows:

	Notional Amount (000)		Value			Unrealized Depreciation
Pay to broker the difference between 3-month LIBOR and a floor of 4.80%
Broker Goldman Sachs Bank USA expires 3/25/11	$	65,000	$	(1,937,455	)	$	(1,218,122	)
Pay to broker the difference between 3-month LIBOR and a floor of 5.50%
Broker Citibank NA expires 9/15/11	$	24,000	$	(1,508,568	)		(1,048,568	)
Total			$	(3,446,023	)	$	(2,266,690	)

• Reverse repurchase agreements outstanding as of August 31, 2010 were as follows:

Counterparty	Interest Rate			Trade Date		Maturity Date		Net Closing Amount		Face Amount
Barclays Capital, Inc.		0.27	%		8/04/10		Open	$	12,767,482	$	12,765,000
Credit Suisse Securities (USA) LLC		0.26	%		8/25/10		Open		9,340,454		9,340,000
JPMorgan Securities, Inc.		0.11	%		8/27/10		Open		21,473,292		21,473,125
Total								$	43,581,228	$	43,578,125

• Financial futures contracts purchased as of August 31, 2010 were as follows:

Contracts	Issue	Exchange	Expiration Date	Unrealized Notional Value		Appreciation (Depreciation)
78	2-Year U.S.	Chicago	September	$	17,092,764	$	23,361
	Treasury	Mercantile	2010
	Bond
52	30-Year U.S.	Chicago	December	$	7,520,761		(1,886	)
	Treasury	Mercantile	2010
	Bond
25	Euro Dollars	Chicago Mercantile	December 2010	$	6,215,669		8,394
8	Euro Dollars	Chicago	June 2013	$	1,952,422		10,778
		Mercantile
Total						$	40,647

See Notes to Financial Statements.
	ANNUAL REPORT	AUGUST 31, 2010	69

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

• Financial futures contracts sold as of August 31, 2010 were as follows:

Contracts	Issue	Exchange	Expiration Date	Notional Value		Unrealized Depreciation
5	2-Year U.S.	Chicago	December	$	1,094,756	$	(947	)
	Treasury	Mercantile	2010
	Bond
664	5-Year U.S.	Chicago	December	$	79,835,303		(57,385	)
	Treasury	Mercantile	2010
	Bond
17	10-Year U.S.	Chicago	September	$	2,143,296		(7,204	)
	Treasury	Mercantile	2010
	Bond
1,214	10-Year U.S.	Chicago	December	$	151,854,035		(654,715	)
	Treasury	Mercantile	2010
	Bond
48	30-Year U.S.	Chicago	December	$	6,389,909		(91,591	)
	Treasury	Mercantile	2010
	Bond
151	Euro Dollars	Chicago	September	$	37,537,307		(94,724	)
		Mercantile	2010
132	Euro Dollars	Chicago	March 2011	$	32,833,536		(9,714	)
		Mercantile
107	Euro Dollars	Chicago	June 2011	$	26,551,229		(48,971	)
		Mercantile
110	Euro Dollars	Chicago	September	$	27,214,737		(101,013	)
		Mercantile	2011
368	Euro Dollars	Chicago	December	$	90,954,214		(291,386	)
		Mercantile	2011
62	Euro Dollars	Chicago	March 2012	$	15,345,520		(2,580	)
		Mercantile
39	Euro Dollars	Chicago	June 2012	$	9,611,093		(26,295	)
		Mercantile
24	Euro Dollars	Chicago	September	$	5,897,634		(23,166	)
		Mercantile	2012
24	Euro Dollars	Chicago	December	$	5,884,133		(25,567	)
		Mercantile	2012
24	Euro Dollars	Chicago	March 2013	$	5,872,434		(27,966	)
		Mercantile
Total						$	(1,463,224	)

• Interest rate swaps outstanding as of August 31, 2010 were as follows:

Fixed Rate	Floating Rate	Counterparty	Expiration		Notional Amount (000)		Unrealized Appreciation (Depreciation)
4.32% (a)	3-month LIBOR	UBS AG	September		$	12,000	$	3,057
			2010
1.45% (b)	3-month LIBOR	JPMorgan	July 2011		$	20,000		(180,398	)
		Chase Bank NA
0.83% (b)	3-month LIBOR	Deutsche	July 2012		$	34,800		(115,187	)
		Bank AG
0.65% (b)	3-month LIBOR	Morgan	August 2012		$	2,600		245
		Stanley Capital
		Services, Inc.
4.88% (a)	3-month LIBOR	UBS AG	March 2015		$	25,000		3,816,218
1.59% (b)	3-month LIBOR	Deutsche	August 2015	��	$	800		(1,046	)
		Bank AG
4.87% (a)	3-month LIBOR	Goldman Sachs	January		$	5,500		911,774
		Bank USA	2016

• Interest rate swaps outstanding as of August 31, 2010 were as follows (concluded):

Fixed Rate	Floating Rate	Counterparty	Expiration	Notional Amount (000)		Unrealized Appreciation (Depreciation)
2.81% (a)	3-month LIBOR	Citibank NA	February	$	20,000	$	1,172,137
			2016
5.72% (a)	3-month LIBOR	JPMorgan	July 2016	$	5,400		1,191,695
		Chase Bank NA
5.51% (a)	3-month LIBOR	Bank of	August 2017	$	159,147		36,209,744
		America NA
5.88% (b)	3-month LIBOR	Deutsche	June 2018	$	31,930		(8,059,914	)
		Bank AG
4.55% (b)	3-month LIBOR	Citibank NA	September	$	98,400		(17,057,208	)
			2018
4.31% (b)	3-month LIBOR	Deutsche	October	$	66,000		(10,286,405	)
		Bank AG	2018
3.09% (b)	3-month LIBOR	Deutsche	March 2019	$	25,700		(1,599,874	)
		Bank AG
3.17% (a)	3-month LIBOR	Bank of	March 2019	$	4,700		318,696
		America NA
2.88% (a)	3-month LIBOR	Deutsche	April 2019	$	39,700		1,777,529
		Bank AG
3.23% (b)	3-month LIBOR	Deutsche	May 2019	$	2,800		(201,967	)
		Bank AG
3.90% (b)	3-month LIBOR	Barclays	June 2019	$	20,000		(2,535,758	)
		Bank Plc
3.55% (b)	3-month LIBOR	Deutsche	August 2019	$	15,000		(1,614,387	)
		Bank AG
5.49% (b)	3-month LIBOR	JPMorgan	October	$	5,400		(1,217,269	)
		Chase Bank NA	2019
3.67% (a)	3-month LIBOR	Deutsche	December	$	4,600		494,388
		Bank AG	2019
5.67% (b)	3-month LIBOR	Citibank NA	January	$	12,400		(2,855,252	)
			2020
3.88% (a)	3-month LIBOR	Morgan	January	$	7,600		954,075
		Stanley Capital	2020
		Services, Inc.
3.71% (b)	3-month LIBOR	Deutsche	February	$	9,200		(1,015,827	)
		Bank AG	2020
3.73% (a)	3-month LIBOR	Morgan	May 2020	$	28,000		3,135,378
		Stanley Capital
		Services, Inc.
2.56% (b)	3-month LIBOR	Citibank NA	August 2020	$	600		(4,018	)
5.41% (a)	3-month LIBOR	JPMorgan	August 2022	$	9,565		2,750,663
		Chase Bank NA
Total						$	5,991,089

	(a)	Pays floating interest rate and receives fixed rate.
	(b)	Pays fixed interest rate and receives floating rate.
•	For Trust compliance purposes, the Trust ‘s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by Trust management. This definition may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.
•	Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivatives, which are as follows:
	•	Level 1 — price quotations in active markets/exchanges for identical assets and liabilities

See Notes to Financial Statements.
70	ANNUAL REPORT	AUGUST 31, 2010

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

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

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

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following tables summarize the inputs used as of August 31, 2010 in determining the fair valuation of the Trust’s investments and derivatives:

Valuation Inputs	Level 1			Level 2			Level 3			Total
Assets:
Investments in Securities:
Long-Term Investments:
Asset-Backed Securities		—		$	12,245,496		$	1,261,564		$	13,507,060
Non-Agency Mortgage-Backed Securities		—			40,501,465			8,085,631			48,587,096
U.S. Government Sponsored Agency Securities		—			868,699,116			5,750,715			874,449,831
Valuation Inputs	Level 1			Level 2			Level 3			Total
Assets (concluded):
U.S. Treasury Obligations		—		$	111,371,314			—		$	111,371,314
Short-Term Securities	$	857,657			—			—			857,657
Liabilities:
Investments in Securities:
Long-Term Investments:
TBA Sale Commitments		—			(159,088,272	)		—			(159,088,272	)
TALF Loans		—			(11,739,534	)		—			(11,739,534	)
Total	$	857,657		$	861,989,585		$	15,097,910		$	877,945,152
	Derivative Financial Instruments1
Valuation Inputs	Level 1			Level 2			Level 3			Total
Assets:
Interest rate contracts	$	64,509		$	54,091,317			—		$	54,155,826
Liabilities:
Interest rate contracts		(1,465,110	)		(48,631,405	)	$	(3,446,023	)		(53,542,538	)
Total	$	(1,400,601	)	$	5,459,912		$	(3,446,023	)	$	613,288

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

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

	Asset- Backed Securities			Corporate Bonds			Non-Agency Mortgage-Backed Securities			U.S. Government Sponsored Agency Securities			Total
Assets:
Balance, as of August 31, 2009	$	3,536,160		$	582,709		$	21,006,613		$	14,122,541		$	39,248,023
Accrued discounts/premiums		(285,413	)		—			(1,829,207	)		(185,468	)		(2,300,088	)
Net realized gain (loss)		—			—			—			1,311,671			1,311,671
Net change in unrealized appreciation/depreciation2		3,329,905			17,640			1,009,436			(977,634	)		3,379,347
Purchases		—			(2,447,899	)		—			—			(2,447,899	)
Sales		—			1,847,550			(3,335,945	)		(8,520,395	)		(10,008,790	)
Transfers in3		—			—			5,679			—			5,679
Transfers out3		(5,319,088	)		—			(8,770,945	)		—			(14,090,033	)
Balance, as of August 31, 2010	$	1,261,564			—		$	8,085,631		$	5,750,715		$	15,097,910

² Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations. The net change in unrealized appreciation/depreciation on securities still held at August 31, 2010 was $(1,017,399).

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

	Interest Rate Contracts
Liabilities:
Balance, as of August 31, 2009	$	(7,202,331	)
Accrued discounts/premiums		—
Net realized gain (loss)		278,833
Net change in unrealized appreciation/depreciation4		3,477,475
Purchases		—
Sales		—
Transfers in3		—
Transfers out3		—
Balance, as of August 31, 2010	$	(3,446,023	)

3	The Trust’s policy is to recognize transfers in and transfers out as of the end of the period of the event or the change in circumstances that caused the transfer.
4	Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations. The net change in unrealized appreciation/depreciation on securities still held at August 31, 2010 was $3,477,475.

See Notes to Financial Statements.
	ANNUAL REPORT	AUGUST 31, 2010	71

Schedule of Investments August 31, 2010	BlackRock Strategic Bond Trust (BHD)
	(Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Building Products — 0.2%
Masonite Worldwide Holdings (a)		4,486	$	170,468
Construction Materials — 0.0%
Nortek, Inc. (a)		450		18,675
Machinery — 0.0%
Accuride Corp. (a)		18,000		19,800
Media — 0.0%
Adelphia Recovery Trust (a)		396,568		8,328
Specialty Retail — 0.0%
Lazydays RV Center, Inc. (a)		2,590		13,235
Total Common Stocks — 0.2%		230,506
Corporate Bonds	Par (000)
Airlines — 0.4%
American Airlines Pass-Through Trust, Series 2001-02, 7.86%, 4/01/13	USD	190		198,835
Delta Air Lines, Inc., Series B, 9.75%, 12/17/16		190		199,550
				398,385
Auto Components — 0.8%
Delphi International Holdings Unsecured, 12.00%, 10/06/14		17		16,653
The Goodyear Tire & Rubber Co., 8.75%, 8/15/20		60		63,450
Icahn Enterprises LP, 8.00%, 1/15/18		670		666,650
				746,753
Automobiles — 1.1%
DaimlerChrysler NA Holding Corp., 7.30%, 1/15/12		1,000		1,076,254
Beverages — 0.1%
Crown European Holdings SA, 7.13%, 8/15/18 (b)	EUR	90		116,904
Biotechnology — 0.2%
QHP Pharma, 10.25%, 3/15/15 (b)	USD	225		229,082
Building Products — 1.4%
Associated Materials LLC, 9.88%, 11/15/16		170		180,200
Building Materials Corp. of America (b):
6.88%, 8/15/18		195		189,637
7.00%, 2/15/20		290		288,550
CPG International I, Inc., 10.50%, 7/01/13		150		149,813
Momentive Performance Materials, Inc., Series WI, 9.75%, 12/01/14		265		258,706
Ply Gem Industries, Inc., 11.75%, 6/15/13		250		257,500
				1,324,406
Capital Markets — 3.5%
Credit Suisse AG, 5.40%, 1/14/20		480		505,336
E*Trade Financial Corp., Series A, 0.00%, 8/31/19 (c)(d)		100		120,000
The Goldman Sachs Group, Inc.:
6.15%, 4/01/18		25		27,304
7.50%, 2/15/19		675		787,162
5.38%, 3/15/20		225		232,219
Marsico Parent Co., LLC, 10.63%, 1/15/16 (b)		306		113,220
Marsico Parent Holdco, LLC, 12.50%, 7/15/16 (b)(e)		140		12,559
Marsico Parent Superholdco, LLC, 14.50%, 1/15/18 (b)(e)		91		8,192
Merrill Lynch & Co., Inc., 6.05%, 5/16/16		325		344,262
Corporate Bonds	Par (000)		Value
Capital Markets (concluded)
Morgan Stanley:
5.63%, 9/23/19	USD	600	$	610,596
5.50%, 1/26/20		425		430,374
Offshore Group Investments Ltd., 11.50%, 8/01/15 (b)		190		189,525
				3,380,749
Chemicals — 3.4%
American Pacific Corp., 9.00%, 2/01/15		180		177,975
Ames True Temper, Inc., 4.53%, 1/15/12 (f)		350		349,125
CF Industries, Inc.:
6.88%, 5/01/18		160		168,400
7.13%, 5/01/20		280		300,300
Chemtura Corp., 7.88%, 9/01/18 (b)		195		199,144
Georgia Gulf Corp., 9.00%, 1/15/17 (b)		60		62,175
Hexion U.S. Finance Corp.:
9.75%, 11/15/14		295		289,837
8.88%, 2/01/18		275		254,375
Huntsman International LLC, 8.63%, 3/15/20 (b)		85		84,256
Ineos Finance Plc, 9.00%, 5/15/15 (b)		155		156,744
Innophos, Inc., 8.88%, 8/15/14		980		1,004,500
OXEA Finance/Cy SCA, 9.50%, 7/15/17 (b)		205		216,275
				3,263,106
Commercial Banks — 3.6%
CIT Group, Inc.:
7.00%, 5/01/16		409		388,085
7.00%, 5/01/17		1,756		1,651,109
HSBC Bank USA NA, 4.88%, 8/24/20		550		568,250
Lloyds TSB Bank Plc, 5.80%, 1/13/20 (b)		300		309,171
Standard Chartered Plc, 5.50%, 11/18/14 (b)		450		496,186
				3,412,801
Commercial Services & Supplies — 0.7%
ACCO Brands Corp., 10.63%, 3/15/15		95		104,500
RSC Equipment Rental, Inc., 10.00%, 7/15/17 (b)		240		261,600
West Corp., 11.00%, 10/15/16		300		315,000
				681,100
Communications Equipment — 0.2%
Harris Corp., 6.38%, 6/15/19		175		205,373
Construction Materials — 0.5%
Nortek, Inc., 11.00%, 12/01/13		452		476,294
Consumer Finance — 2.5%
Credit Acceptance Corp., 9.13%, 2/01/17 (b)		260		269,425
Ford Motor Credit Co. LLC:
5.51%, 6/15/11 (f)		1,600		1,628,000
7.80%, 6/01/12		250		263,086
8.00%, 12/15/16		240		260,624
				2,421,135
Containers & Packaging — 3.3%
Ball Corp., 6.75%, 9/15/20		180		189,450
Berry Plastics Corp.:
8.88%, 9/15/14		305		290,512
8.25%, 11/15/15		50		50,125
9.50%, 5/15/18 (b)		220		202,400
Berry Plastics Holding Corp., 8.88%, 9/15/14		660		628,650
Crown Americas LLC, 7.75%, 11/15/15		250		259,375
Graphic Packaging International, Inc., 9.50%, 6/15/17		250		266,250
Impress Holdings BV, 3.65%, 9/15/13 (b)(f)		260		245,700
Pregis Corp., 12.38%, 10/15/13		565		565,000

See Notes to Financial Statements.
72	ANNUAL REPORT	AUGUST 31, 2010

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

Corporate Bonds	Par (000)		Value
Containers & Packaging (concluded)
Smurfit Kappa Acquisitions (b):
7.25%, 11/15/17	EUR	190	$	245,593
7.75%, 11/15/19		180		233,808
				3,176,863
Diversified Financial Services — 5.6%
Ally Financial Inc.:
8.30%, 2/12/15 (b)	USD	920		956,800
7.50%, 9/15/20 (b)		1,490		1,475,100
8.00%, 11/01/31		340		334,900
Axcan Intermediate Holdings, Inc., 12.75%, 3/01/16		265		265,331
Bank of America Corp.:
4.50%, 4/01/15		375		388,608
6.50%, 8/01/16		410		458,052
5.75%, 12/01/17		340		359,890
7.63%, 6/01/19		45		52,671
Citigroup, Inc., 8.13%, 7/15/39		55		68,440
GMAC, Inc.:
2.74%, 12/01/14 (f)		110		94,570
8.00%, 3/15/20 (b)		80		82,000
Reynolds Group DL Escrow, Inc., 7.75%, 10/15/16 (b)		550		554,125
Reynolds Group Issuer, Inc., 8.50%, 5/15/18 (b)		280		268,800
				5,359,287
Diversified Telecommunication Services — 5.6%
Broadview Networks Holdings, Inc., 11.38%, 9/01/12		155		151,900
Frontier Communications Corp.:
7.88%, 4/15/15		150		158,250
8.25%, 4/15/17		150		158,625
8.50%, 4/15/20		140		148,575
GCI, Inc., 8.63%, 11/15/19		400		420,000
Nordic Telephone Co. Holdings ApS, 8.88%, 5/01/16 (b)		250		262,500
Qwest Communications International, Inc.:
7.50%, 2/15/14		1,120		1,141,000
Series B, 7.50%, 2/15/14		305		310,719
Qwest Corp., 8.38%, 5/01/16		270		314,550
Verizon New England, Inc., 6.50%, 9/15/11		2,000		2,109,908
Windstream Corp.:
8.13%, 8/01/13		45		47,981
8.63%, 8/01/16		70		72,275
7.88%, 11/01/17		45		45,675
				5,341,958
Electric Utilities — 1.4%
Elwood Energy LLC, 8.16%, 7/05/26		25		22,629
Progress Energy, Inc., 7.75%, 3/01/31		1,000		1,349,313
				1,371,942
Energy Equipment & Services — 2.2%
Compagnie Générale de Géophysique-Veritas:
7.50%, 5/15/15		470		465,300
7.75%, 5/15/17		70		69,475
Expro Finance Luxembourg SCA, 8.50%, 12/15/16 (b)		740		691,900
Global Geophysical Services, Inc., 10.50%, 5/01/17 (b)		110		108,900
North American Energy Alliance LLC, 10.88%, 6/01/16 (b)		255		275,400
Thermon Industries, Inc., 9.50%, 5/01/17 (b)		195		199,875
Transocean, Inc., 6.00%, 3/15/18		300		300,010
				2,110,860

Corporate Bonds	Par (000)		Value
Food & Staples Retailing — 0.3%
Rite Aid Corp.:
9.75%, 6/12/16	USD	45	$	47,813
10.25%, 10/15/19		195		200,362
				248,175
Food Products — 1.5%
Kraft Foods, Inc.:
6.13%, 8/23/18		250		293,425
5.38%, 2/10/20		1,000		1,111,315
				1,404,740
Health Care Equipment & Supplies — 2.0%
CareFusion Corp., 6.38%, 8/01/19		425		507,054
DJO Finance LLC, 10.88%, 11/15/14		880		942,700
Fresenius US Finance II, Inc., 9.00%, 7/15/15 (b)		410		459,200
				1,908,954
Health Care Providers & Services — 4.6%
American Renal Holdings, 8.38%, 5/15/18 (b)		70		70,000
Gentiva Health Services, Inc., 11.50%, 9/01/18 (b)		180		186,300
HCA, Inc.:
9.13%, 11/15/14		335		351,750
8.50%, 4/15/19		310		339,837
7.25%, 9/15/20		610		637,450
inVentiv Health Inc., 10.00%, 8/15/18 (b)		150		146,625
Omnicare, Inc., 7.75%, 6/01/20		95		95,000
Tenet Healthcare Corp.:
9.00%, 5/01/15		555		591,075
10.00%, 5/01/18		625		703,125
8.88%, 7/01/19		195		210,844
WellPoint, Inc., 5.95%, 12/15/34		1,000		1,085,234
				4,417,240
Health Care Technology — 0.8%
IMS Health, Inc., 12.50%, 3/01/18 (b)		660		764,775
Hotels, Restaurants & Leisure — 1.4%
Diamond Resorts Corp., 12.00%, 8/15/18 (b)		310		292,950
Harrah’s Operating Co., Inc., 11.25%, 6/01/17		135		144,450
MGM Resorts International, 10.38%, 5/15/14		750		817,500
Marina District Finance Co., Inc., 9.88%, 8/15/18 (b)		100		99,750
Tropicana Entertainment LLC, Series WI, 9.63%, 12/15/14 (a)(g)		50		37
				1,354,687
Household Durables — 2.4%
Beazer Homes USA, Inc.:
6.88%, 7/15/15		65		56,225
8.13%, 6/15/16		50		43,750
12.00%, 10/15/17		280		315,350
9.13%, 6/15/18		840		743,400
Ryland Group Inc., 6.63%, 5/01/20		250		234,375
Standard Pacific Corp.:
9.25%, 4/15/12		50		51,313
6.25%, 4/01/14		40		37,300
7.00%, 8/15/15		55		50,600
10.75%, 9/15/16		565		594,662
8.38%, 5/15/18		220		211,750
				2,338,725

See Notes to Financial Statements.
	ANNUAL REPORT	AUGUST 31, 2010	73

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

Corporate Bonds	Par (000)		Value
IT Services — 0.7%
iPayment, Inc., 9.75%, 5/15/14	USD	175	$	158,156
iPayment Investors LP, 12.75%, 7/15/14 (b)(e)		217		185,893
SunGard Data Systems, Inc., 10.63%, 5/15/15		295		325,975
				670,024
Independent Power Producers &
Energy Traders — 1.8%
AES Ironwood LLC, 8.86%, 11/30/25		91		92,161
Calpine Construction Finance Co. LP, 8.00%, 6/01/16 (b)		515		540,750
Energy Future Holdings Corp., 10.00%, 1/15/20 (b)		1,005		967,818
Energy Future Intermediate Holding Co. LLC, 10.00%, 12/01/20		28		26,907
NRG Energy, Inc.:
7.25%, 2/01/14		75		76,500
7.38%, 2/01/16		15		15,113
7.38%, 1/15/17		25		25,187
				1,744,436
Industrial Conglomerates — 1.4%
Sequa Corp. (b):
11.75%, 12/01/15		460		473,800
13.50%, 12/01/15 (e)		854		888,429
				1,362,229
Insurance — 1.8%
Lincoln National Corp., 8.75%, 7/01/19		575		734,188
MetLife, Inc., 4.75%, 2/08/21		300		313,682
Metropolitan Life Global Funding I, 5.13%, 6/10/14 (b)		250		276,945
Prudential Financial, Inc., 5.38%, 6/21/20		400		430,801
				1,755,616
Life Sciences Tools & Services — 0.2%
Patheon, Inc., 8.63%, 4/15/17 (b)		210		209,213
Machinery — 1.2%
AGY Holding Corp., 11.00%, 11/15/14		220		187,000
Accuride Corp., 7.50%, 2/26/20 (c)(e)		2		4,872
Navistar International Corp.:
3.00%, 10/15/14 (c)		470		512,888
8.25%, 11/01/21		400		419,000
				1,123,760
Marine — 0.5%
Horizon Lines, Inc., 4.25%, 8/15/12 (c)		595		499,800
Media — 12.3%
Affinion Group, Inc.:
10.13%, 10/15/13		750		768,750
10.13%, 10/15/13		155		158,488
CCH II LLC, 13.50%, 11/30/16		289		342,973
Clear Channel Worldwide Holdings, Inc.:
9.25%, 12/15/17		144		149,400
Series B, 9.25%, 12/15/17		1,439		1,509,151
CMP Susquehanna Corp., 3.64%, 5/15/14 (b)(f)		40		800
DIRECTV Holdings LLC, 6.00%, 8/15/40		175		184,183
DISH DBS Corp., 7.00%, 10/01/13		201		209,291
Gannett Co., Inc., 9.38%, 11/15/17 (b)		130		142,350
Gray Television, Inc., 10.50%, 6/29/15		15		14,438
Interactive Data Corp., 10.25%, 8/01/18 (b)		380		394,250
Live Nation Entertainment, Inc., 8.13%, 5/15/18 (b)		165		159,225
McClatchy Co., 11.50%, 2/15/17 (b)		340		351,050

Corporate Bonds	Par (000)		Value
Media (concluded)
News America, Inc., 6.20%, 12/15/34	USD	1,500	$	1,641,763
Nielsen Finance LLC, 10.00%, 8/01/14		435		456,750
Rainbow National Services LLC (b):
8.75%, 9/01/12		210		210,263
10.38%, 9/01/14		1,455		1,509,562
Regal Entertainment Group, 9.13%, 8/15/18		85		87,125
Seat Pagine Gialle SpA, 10.50%, 1/31/17 (b)	EUR	66		77,784
TCI Communications, Inc., 7.88%, 2/15/26	USD	1,000		1,239,642
TL Acquisitions, Inc., 10.50%, 1/15/15 (b)		490		467,950
Time Warner Cable, Inc., 6.75%, 6/15/39		400		469,520
UPC Germany GmbH (b):
8.13%, 12/01/17	USD	200		205,500
8.13%, 12/01/17	EUR	210		271,445
UPC Holding BV, 9.88%, 4/15/18 (b)	USD	200		208,250
Unitymedia Hessen GmbH & Co. KG:
9.63%, 12/01/19	EUR	50		66,372
9.63%, 12/01/19 (b)		190		252,215
Ziggo Bond Co. BV, 8.00%, 5/15/18 (b)		165		212,233
				11,760,723
Metals & Mining — 2.7%
AK Steel Corp., 7.63%, 5/15/20	USD	25		25,188
Aleris International, Inc., 10.00%, 12/15/16 (a)(g)		315		120
Drummond Co., Inc.:
9.00%, 10/15/14 (b)		285		298,181
7.38%, 2/15/16		95		95,119
FMG Finance Property Ltd., 10.63%, 9/01/16 (b)		390		451,912
Goldcorp, Inc., 2.00%, 8/01/14 (c)		245		297,981
McJunkin Red Man Corp., 9.50%, 12/15/16 (b)		225		198,562
Murray Energy Corp., 10.25%, 10/15/15 (b)		200		204,500
New World Resources NV:
7.38%, 5/15/15	EUR	65		80,724
7.88%, 5/01/18 (b)		76		97,274
Newmont Mining Corp., 5.13%, 10/01/19	USD	225		249,876
Novelis, Inc., 11.50%, 2/15/15		275		302,500
Steel Dynamics, Inc., 7.38%, 11/01/12		80		85,000
United States Steel Corp., 7.38%, 4/01/20		190		192,375
				2,579,312
Multi-Utilities — 0.4%
DTE Energy Co., 7.05%, 6/01/11		250		261,021
Dominion Resources, Inc., 5.70%, 9/17/12		100		108,962
				369,983
Multiline Retail — 1.4%
Dollar General Corp., 11.88%, 7/15/17 (e)		1,135		1,305,250
Oil, Gas & Consumable Fuels — 8.0%
Anadarko Petroleum Corp., 5.95%, 9/15/16		365		361,495
Arch Coal, Inc.:
8.75%, 8/01/16		25		27,063
7.25%, 10/01/20		315		319,725
Atlas Energy Operating Co. LLC:
12.13%, 8/01/17		425		488,219
10.75%, 2/01/18		25		27,563
Berry Petroleum Co., 8.25%, 11/01/16		100		101,000
Bill Barrett Corp., 9.88%, 7/15/16		20		21,700
Chesapeake Energy Corp.:
6.63%, 8/15/20		865		868,244
2.25%, 12/15/38 (c)		275		205,906
Coffeyville Resources LLC, 9.00%, 4/01/15 (b)		110		113,025
ConocoPhillips, 6.00%, 1/15/20		150		182,398
Consol Energy, Inc., 8.25%, 4/01/20 (b)		725		769,406
Crosstex Energy LP, 8.88%, 2/15/18		150		154,875
Denbury Resources, Inc., 8.25%, 2/15/20		259		276,482

See Notes to Financial Statements.
74	ANNUAL REPORT	AUGUST 31, 2010

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)
Enterprise Products Operating LLC, 3.70%, 6/01/15	USD	500	$	520,973
Linn Energy LLC, 8.63%, 4/15/20 (b)		115		121,325
Massey Energy Co., 6.88%, 12/15/13		340		344,250
Niska Gas Storage US LLC, 8.88%, 3/15/18 (b)		695		731,487
OPTI Canada, Inc. (b):
9.00%, 12/15/12		640		641,600
9.75%, 8/15/13		330		325,875
Patriot Coal Corp., 8.25%, 4/30/18		150		148,875
Peabody Energy Corp., 6.50%, 9/15/20		310		325,887
Petrobras International Finance Co.:
5.88%, 3/01/18		200		217,211
7.88%, 3/15/19		100		122,430
6.88%, 1/20/40		25		27,583
QEP Resources, Inc., 6.88%, 3/01/21		155		161,587
Whiting Petroleum Corp., 7.25%, 5/01/12		15		15,000
				7,621,184
Paper & Forest Products — 2.6%
Boise Paper Holdings LLC:
9.00%, 11/01/17		125		131,563
8.00%, 4/01/20		65		66,138
Clearwater Paper Corp., 10.63%, 6/15/16		160		180,000
Georgia-Pacific LLC, 8.25%, 5/01/16 (b)		355		388,725
Glatfelter, 7.13%, 5/01/16 (b)		80		80,500
International Paper Co., 7.30%, 11/15/39		225		253,533
NewPage Corp., 11.38%, 12/31/14		1,240		1,007,500
Verso Paper Holdings LLC, 11.50%, 7/01/14		330		348,150
				2,456,109
Pharmaceuticals — 0.9%
Novasep Holding SAS, 9.63%, 12/15/16 (b)	EUR	221		235,252
Wyeth, 6.50%, 2/01/34	USD	500		630,249
				865,501
Professional Services — 0.5%
FTI Consulting, Inc., 7.63%, 6/15/13		450		455,625
Real Estate Investment Trusts (REITs) — 0.5%
iStar Financial, Inc., 5.65%, 9/15/11		500		458,125
Road & Rail — 0.9%
Avis Budget Car Rental LLC, 9.63%, 3/15/18		190		198,550
Canadian National Railway Co., 6.90%, 7/15/28		500		641,535
				840,085
Software — 0.5%
BMS Holdings, Inc., 8.59%, 2/15/12 (b)(e)		80		1,590
Oracle Corp., 5.38%, 7/15/40 (b)		475		514,895
				516,485
Specialty Retail — 0.8%
Group 1 Automotive, Inc., 2.25%, 6/15/36 (c)(h)		50		38,063
Ltd. Brands, Inc., 8.50%, 6/15/19		320		361,600
Sonic Automotive, Inc.:
9.00%, 3/15/18		115		117,012
Series B, 8.63%, 8/15/13		205		208,075
				724,750
Textiles, Apparel & Luxury Goods — 0.1%
Quiksilver, Inc., 6.88%, 4/15/15		100		92,500
Tobacco — 0.3%
Altria Group, Inc., 9.25%, 8/06/19		105		137,605
Vector Group Ltd., 11.00%, 8/15/15		120		122,250
				259,855

Corporate Bonds	Par (000)		Value
Wireless Telecommunication Services — 4.4%
America Movil SAB de CV, 5.00%, 3/30/20	USD	400	$	435,901
Cricket Communications, Inc.:
10.00%, 7/15/15		310		324,725
7.75%, 5/15/16		530		547,225
Crown Castle Towers LLC, 6.11%, 1/15/40 (b)		375		417,230
Digicel Group Ltd. (b):
8.88%, 1/15/15		170		171,275
9.13%, 1/15/15 (e)		439		441,195
8.25%, 9/01/17		250		259,687
iPCS, Inc., 2.59%, 5/01/13 (f)		20		18,700
MetroPCS Wireless, Inc., 9.25%, 11/01/14		855		889,200
Nextel Communications, Inc.:
Series E, 6.88%, 10/31/13		210		209,475
Series F, 5.95%, 3/15/14		30		28,988
SBA Tower Trust, 4.25%, 4/15/40 (b)		325		346,797
Sprint Capital Corp., 6.88%, 11/15/28		200		167,000
				4,257,398
Total Corporate Bonds — 93.4%				89,458,511

Floating Rate Loan Interests (f)
Auto Components — 1.0%
Allison Transmission, Inc., Term Loan, 3.04%, 8/07/14	1,054	970,807
Automobiles — 1.3%
Ford Motor Co., Tranche B-1 Term Loan, 3.03%, 12/15/13	1,301	1,251,774
Commercial Services & Supplies — 1.1%
AWAS Finance Luxembourg Sarl, Term Loan, 7.75%, 6/10/16	500	502,917
Delos Aircraft, Inc., Term Loan 2, 7.00%, 3/17/16	225	226,219
International Lease Finance Corp. (Delos Aircraft, Inc.), Term Loan 1, 6.75%, 3/17/15	300	302,375
		1,031,511
Construction & Engineering — 0.8%
Safway Services, LLC, Last Out Term Loan, 15.63%, 12/14/17	750	750,000
Consumer Finance — 1.8%
AGFS Funding Co., Term Loan, 7.25%, 4/21/15	1,500	1,482,188
DaimlerChrysler Financial Services Americas LLC, Term Loan (Second Lien), 6.78%, 8/05/13	225	224,201
		1,706,389
Diversified Consumer Services — 0.5%
Laureate Education, Series A New Term Loan, 7.00%, 8/15/14	497	489,161
Electric Utilities — 0.5%
New Development Holdings LLC, Term Loan, 7.00%, 7/03/17	450	454,500
Health Care Providers & Services — 0.7%
Harden Healthcare:
Add-on Term Loan, 7.75%, 3/02/15	200	194,218
Tranche A Term Loan, 8.50%, 3/02/15	198	196,000
inVentiv Health, Inc. (FKA Ventive Health Inc.), Term Loan B, 6.50%, 7/31/16	300	299,438
		689,656

See Notes to Financial Statements.
	ANNUAL REPORT	AUGUST 31, 2010	75

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

Floating Rate Loan Interests (f)	Par (000)			Value
IT Services — 0.5%
First Data Corp.:
First Lien Term Loan, 3.01%, 9/24/14	USD	62		$	53,306
Initial Tranche B-2 Term Loan, 3.01%, 9/24/14		154			131,060
Initial Tranche B-3 Term Loan, 3.01%, 9/24/14		379			322,989
					507,355
Independent Power Producers & Energy Traders — 1.2%
Dynegy Holdings, Inc., Term Letter of Credit Facility, 4.02%, 4/02/13		45			44,313
NRG Energy, Inc.:
Extended Maturity Credit-Linked Deposit, 1.88%, 8/31/15		82			81,485
Original Maturity Credit-Linked Deposit, 2.03%, 2/01/13		—	(i)		31
Term Loan, 2.03%, 2/01/13		26			25,555
Term Loan, 3.78%, 8/31/15		98			96,211
Texas Competitive Electric Holdings Co., LLC (TXU):
Initial Tranche B-1 Term Loan, 3.79% – 4.03%, 10/10/14		987			748,010
Initial Tranche B-2 Term Loan, 3.79% – 4.07%, 10/10/14		237			179,894
					1,175,499
Media — 1.1%
Cengage Learning Acquisitions, Inc. (Thomson Learning), Tranche 1 Incremental Term Loan, 7.50%, 7/03/14		490			488,367
Newsday, LLC, Fixed Rate Term Loan, 10.50%, 8/01/13		550			583,687
					1,072,054
Multiline Retail — 0.0%
The Neiman Marcus Group, Inc., Term Loan, 2.29% – 2.54%, 4/06/13		4			3,752
Real Estate Management & Development — 0.5%
Realogy Corp.:
Initial Term Loan B, 3.30%, 10/10/13		392			338,170
Synthetic Letter of Credit, 0.11% – 3.15%, 10/10/13		67			57,971
Second Lien Term Facility, 13.50%, 10/15/17		75			79,125
					475,266
Specialty Retail — 0.1%
Claire’s Stores, Inc., Term Loan B, 3.05%, 5/29/14		64			54,681
Wireless Telecommunication Services — 0.8%
Vodafone Group Plc, Revolving Credit, 6.88%, 7/30/15		750			750,000
Total Floating Rate Loan Interests — 11.9%					11,382,405
Foreign Agency Obligations
Qatar Government International Bond, 4.00%, 1/20/15 (b)		200			210,000
Republic of Indonesia, 5.88%, 3/13/20 (b)		200			225,740
Total Foreign Agency Obligations — 0.4%					435,740
Other Interests (j)	Beneficial Interest (000)			Value
Auto Components — 1.5%
Delphi Debtor-in-Possession Holding Co. LLP	USD	—	(i)	$	1,416,687
Health Care Providers & Services — 0.0%
Critical Care Systems International, Inc.		1			190
Media — 0.0%
Adelphia Communications Corp.		400			6,000
Total Other Interests — 1.5%					1,422,877
Preferred Securities
Capital Trusts	Par (000)
Commercial Banks — 1.0%
Barclays Bank Plc, 8.55%, (b)(f)(k)		650			653,250
USB Capital XIII Trust, 6.63%, 12/15/39		225			248,258
					901,508
Consumer Finance — 0.5%
Capital One Capital V, 10.25%, 8/15/39		465			502,200
Total Capital Trusts — 1.5%					1,403,708
Preferred Stocks		Shares
Diversified Financial Services — 0.4%
Ally Financial Inc., 7.00% (b)		472			389,887
Media — 0.0%
CMP Susquehanna Radio Holdings Corp. (a)(b)		9,328			—
Real Estate Investment Trusts (REITs) — 0.0%
MPG Office Trust, Inc., Series A, 7.63% (a)		3,277			35,359
Specialty Retail — 0.1%
Lazydays RV Center, Inc. (a)		55			65,455
Total Preferred Stocks — 0.5%					490,701
Total Preferred Securities — 2.0%					1,894,409
Warrants (l)
Media — 0.0%
CMP Susquehanna Radio Holdings Corp. (Expires 3/26/19) (b)		10,660			—
Total Warrants — 0.0%					—
Total Long-Term Investments (Cost — $101,601,953) — 109.4%					104,824,448
Short-Term Securities
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.25% (m)(n)		1,132,209			1,132,209
Total Short-Term Securities (Cost — $1,132,209) — 1.2%					1,132,209

See Notes to Financial Statements.
76	ANNUAL REPORT	AUGUST 31, 2010

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

Options Purchased	Contracts		Value
Over-the-Counter Call Options — 0.0%
Marsico Parent Superholdco LLC, Strike Price USD 942.86, Expires 12/21/19, Broker Goldman Sachs Bank USA		6		—
Total Options Purchased (Cost — $5,867) — 0.0%				—
Total Investments Before Options Written (Cost — $102,740,029*) — 110.6%			$	105,956,657
Options Written	Notional Amount (000)
Over-the-Counter Call Swaptions — 0.0%
Bought credit default protection on Dow Jones CDX North America High Yield Index Series 14 Volume 1, Strike Price USD 100.00, Expires 9/15/10, Broker Credit Suisse International	USD	2,125		(1,182	)
Bought credit default protection on Dow Jones CDX North America High Yield Series 14 Volume 1, Strike Price USD 96.00, Expires 9/15/10, Broker Credit Suisse International		1,200		(13,466	)
				(14,648	)
Over-the-Counter Put Swaptions — 0.0%
Sold credit default protection on Dow Jones CDX North America High Yield Series 14 Volume 1, Strike Price USD 87.00, Expires 9/15/10, Broker Credit Suisse International		1,200		(19	)
Total Options Written (Premiums Received — $41,825) — 0.0%				(14,667	)
Total Investments, Net of Options Written — 110.6%				105,941,990
Liabilities in Excess of Other Assets — (10.6)%				(10,147,819	)
Net Assets — 100.0%			$	95,794,171

* The cost and unrealized appreciation (depreciation) of investments as of August 31, 2010, as computed for federal income tax purposes, were as follows:

Aggregate cost	$	102,781,211
Gross unrealized appreciation	$	5,574,363
Gross unrealized depreciation		(2,398,917	)
Net unrealized appreciation	$	3,175,446

(a)	Non-income producing security.
(b)	Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(c)	Convertible security.
(d)	Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(e)	Represents a payment-in-kind security which may pay interest/dividends in additional face/shares.
(f)	Variable rate security. Rate shown is as of report date.
(g)	Issuer filed for bankruptcy and/or is in default of interest payments.
(h)	Represents a step-down bond that pays an initial coupon rate for the first period and then a lower coupon rate for the following periods. Rate shown is as of report date.
(i)	Amount is less than $1,000.
(j)	Other interests represent beneficial interest in liquidation trusts and other reorganization entities and are non-income producing.
(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, if any.
(m)	Investments in companies considered to be an affiliate of the Trust during the year, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate	Shares Held at August 31, 2009	Net Activity	Shares Held at August 31, 2010	Income
BlackRock Liquidity Funds, TempFund, Institutional Class	4,155,886	(3,023,677)	1,132,209	$3,384

(n)	Represents the current yield as of report date.
•	Financial futures contracts purchased as of August 31, 2010 were as follows:

Contracts	Issue	Exchange	Expiration Date	Notional Value		Unrealized Appreciation (Depreciation)
11	2-Year U.S. Treasury Bond	Chicago Mercantile	September 2010	$	2,410,157	$	3,656
11	2-Year U.S. Treasury Bond	Chicago Mercantile	December 2010	$	2,408,849		1,698
2	5-Year U.S. Treasury Bond	Chicago Mercantile	December 2010	$	240,762		(121	)
28	30-Year U.S. Treasury Bond	Chicago Mercantile	December 2010	$	3,755,133		25,742
Total						$	30,975

• Financial futures contracts sold as of August 31, 2010 were as follows:

Contracts	Issue	Exchange	Expiration Date	Notional Value		Unrealized Depreciation
20	10-Year U.S. Treasury Bond	Chicago Mercantile	December 2010	$	2,507,071	$	(5,429	)
11	30-Year U.S. Treasury Bond	Chicago Mercantile	December 2010	$	1,559,367		(31,164	)
Total						$	(36,593	)

See Notes to Financial Statements.
	ANNUAL REPORT	AUGUST 31, 2010	77

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

• Foreign currency exchange contracts as of August 31, 2010 were as follows:

Currency Purchased		Currency Sold		Counterparty	Settlement Date	Unrealized Appreciation
USD	2,034,696	EUR	1,604,500	Citibank NA	9/15/10	$	1,437
USD	116,701	EUR	90,500	Deutsche Bank AG	9/15/10		2,017
Total						$	3,454

• Credit default swaps on single-name issuers — buy protection outstanding as of August 31, 2010 were as follows:

Issuer	Pay Fixed Rate	Counterparty	Expiration	Notional Amount (000)		Unrealized Appreciation
iStar Financial, Inc.	5.00%	Morgan Stanley Capital Services, Inc.	September 2011	$	250	$	6,269
iStar Financial, Inc.	5.00%	Morgan Stanley Capital Services, Inc.	September 2011	$	250		5,694
Total						$	11,963

• Credit default swaps on single-name issuers — sold protection outstanding as of August 31, 2010 were as follows:

Issuer	Receive Fixed Rate	Counterparty	Expiration	Credit Rating1	Notional Amount (000)2		Unrealized Appreciation
Levi Strauss & Co.	5.00%	Citibank NA	June 2015	B+	$	150	$	92
MetLife, Inc.	5.00%	Deutsche Bank AG	June 2015	A–	$	150		5,634
MetLife, Inc.	1.00%	UBS AG	September 2015	A–	$	175		117
Total							$	5,843

		1	Using S&P’s rating.
		2	The maximum potential amount the Trust may pay should a negative event take place as defined under the terms of agreement.
•	For Trust compliance purposes, the Trust’s sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Trust management. This definition may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.
•	Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivatives, which are as follows:
	•	Level 1 — price quotations in active markets/exchanges for identical assets and liabilities
	•	Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
	•	Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments and derivatives)
	The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.
	The following tables summarize the inputs used as of August 31, 2010 in determining the fair valuation of the Trust’s investments and derivatives:

Valuation Inputs	Level 1			Level 2			Level 3			Total
Assets:
Investments in Securities:
Common Stocks	$	197,471		$	19,800		$	13,235		$	230,506
Corporate Bonds		—			89,441,058			17,453			89,458,511
Floating Rate Loan Interests		—			7,961,531			3,420,874			11,382,405
Foreign Agency Obligations		—			435,740			—			435,740
Other Interests		—			1,422,686			191			1,422,877
Preferred Securities		425,246			1,403,708			65,455			1,894,409
Warrants		—			—			—			—
Short-Term Securities		1,132,209			—			—			1,132,209
Liabilities:
Unfunded Loan Commitments		—			—			(8,879	)		(8,879	)
Total	$	1,754,926		$	100,684,523		$	3,508,329		$	105,947,778
Derivative Financial Instruments1
Valuation Inputs	Level 1			Level 2			Level 3			Total
Assets:
Credit contracts		—		$	17,806			—		$	17,806
Foreign currency exchange contracts		—			3,454			—			3,454
Interest rate contracts	$	31,096			—			—			31,096
Liabilities:
Credit contracts		—			(14,667	)		—			(14,667	)
Interest rate contracts		(36,714	)		—			—			(36,714	)
Total	$	(5,618	)	$	6,593			—		$	975

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

See Notes to Financial Statements.
78	ANNUAL REPORT	AUGUST 31, 2010

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

The following table is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:
	Common Stocks		Corporate Bonds			Floating Rate Loan Interests			Other Interests		Preferred Stocks		Unfunded Loan Commitments			Total
Assets/Liabilities:
Balance, as of August 31, 2009		—	$	804,535		$	3,501,727		$	191		—		—		$	4,306,453
Accrued discounts/premiums		—		4,712			29,217			—		—		—			33,929
Realized gain (loss)		—		(64,033	)		262,611			—		—		—			198,578
Change in unrealized appreciation/depreciation2		—		1,003,734			316,547			—		—	$	(8,879	)		1,311,402
Purchases		—		(409,208	)		7,873,916			—		—		—			7,464,708
Sales		—		(1,153,048	)		(9,605,509	)		—		—		—			(10,758,557	)
Transfers in3	$	13,235		16,653			2,114,419			—	$	65,455		—			2,209,762
Transfers out3		—		(185,892	)		(1,072,054	)		—		—		—			(1,257,946	)
Balance, as of August 31, 2010	$	13,235	$	17,453		$	3,420,874		$	191	$	65,455	$	(8,879	)	$	3,508,329

2	Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations. The net change in unrealized appreciation/depreciation on securities still held at August 31, 2010 was $19,543.
3	The Trust’s policy is to recognize transfers in and transfers out as of the end of the period of the event or the change in circumstances that caused the transfer.

See Notes to Financial Statements.
	ANNUAL REPORT	AUGUST 31, 2010	79

Statements of Assets and Liabilities

August 31, 2010	BlackRock Core Bond Trust (BHK)		BlackRock Corporate High Yield Fund V, Inc. (HYV)		BlackRock Corporate High Yield Fund VI, Inc. (HYT)		BlackRock High Income Shares (HIS)		BlackRock High Yield Trust (BHY)
Assets
Investments at value – unaffiliated1	$	599,571,750	$	464,703,309	$	479,037,264	$	140,611,611	$	48,894,660
Investments at value – affiliated2		506,274		2,725,924		1,808,758		2,032,818		1,573,222
Unrealized appreciation on foreign currency exchange contracts		227,544		15,140		16,013		2,498		—
Unrealized appreciation on swaps		1,171,712		296,315		320,659		—		168
Foreign currency at value3		32,477		45,065		48,921		11,693		—
Cash		164,635		—		—		—		1,952
Cash pledged as collateral in connection with swaps		—		—		—		—		—
Cash pledged as collateral in connection with financial futures contracts		529,000		1,130,000		1,160,000		240,000		—
TBA sale commitments receivable		75,294,672		—		—		—		—
Investments sold receivable		89,011,324		2,423,060		2,570,734		663,417		256,676
Interest receivable		5,410,808		8,379,727		8,925,199		2,616,487		874,752
Swaps receivable		285,103		73,350		79,350		—		550
Options written receivable		254,598		—		—		—		—
Margin variation receivable		182,210		—		—		—		—
Swap premiums paid		73,030		370,617		328,014		—		2,781
Dividend receivable — affiliated		288		189		282		74		59
Principal paydowns receivable		—		—		—		—		—
Prepaid expenses		31,911		118,864		124,771		50,948		17,494
Other assets		42,896		244,189		301,770		55,580		33,745
Total assets		772,790,232		480,525,749		494,721,735		146,285,126		51,656,059
Liabilities
Borrowed bonds4		298,780		—		—		—		—
TBA sale commitments at value5		75,423,223		—		—		—		—
Options written at value6		12,054,731		58,107		61,166		—		6,709
Loan payable		—		92,000,000		89,000,000		25,000,000		8,000,000
TALF loans at value7		11,763,225		—		—		—		—
Bank overdraft		—		—		212,807		—		—
Unrealized depreciation on swaps		1,958,620		340,369		243,603		—		3,699
Unrealized depreciation on foreign currency exchange contracts		287,611		57,333		57,910		2,840		—
Unrealized depreciation on unfunded loan commitments		—		70,023		36,123		2,026		4,001
Interest rate floors at value		—		—		—		—		—
Reverse repurchase agreements		107,279,926		—		—		—		—
Investments purchased payable		129,357,646		4,213,642		2,057,891		1,312,659		488,497
Treasury rolls payable		49,894,552		—		—		—		—
Investment advisory fees payable		235,473		238,017		289,140		90,314		45,384
Swap premiums received		198,261		410,896		453,043		—		2,201
Swaps payable		137,050		35,300		32,300		—		700
Interest expense payable		88,285		174,323		175,925		44,654		14,535
Officer’s and Trustees’ fees payable		45,292		60,833		62,855		10,306		9,981
Income dividends payable		44,861		75,857		93,493		33,106		5,591
Other affiliates payable		1,686		1,502		1,556		456		—
Commitment fees payable		682		2,524		2,737		829		333
Margin variation payable		—		33,600		34,400		7,200		—
Administration fees payable		—		—		—		—		4,332
Other accrued expenses payable		180,763		150,176		146,976		139,045		89,964
Total liabilities		389,250,667		97,922,502		92,961,925		26,643,435		8,675,927
Net Assets	$	383,539,565	$	382,603,247	$	401,759,810	$	119,641,691	$	42,980,132
1 Investments at cost — unaffiliated	$	571,829,766	$	470,023,714	$	485,130,819	$	141,582,716	$	50,439,826
2 Investments at cost — affiliated	$	506,274	$	2,725,924	$	1,808,758	$	2,032,818	$	1,573,222
3 Foreign currency at cost	$	32,447	$	45,294	$	49,021	$	11,837		—
4 Proceeds from borrowed bonds	$	298,807		—		—		—		—
5 Proceeds from TBA sale commitments	$	75,294,672		—		—		—		—
6 Premiums received	$	8,630,370	$	166,000	$	174,750		—	$	19,050
7 Proceeds from TALF loans	$	11,763,225		—		—		—		—

See Notes to Financial Statements.
80	ANNUAL REPORT	AUGUST 31, 2010

August 31, 2010	BlackRock Income Opportunity Trust, Inc. (BNA)		BlackRock Income Trust, Inc. (BKT)		BlackRock Strategic Bond Trust (BHD)
Assets
Investments at value – unaffiliated1	$	573,604,191	$	1,049,292,995	$	104,824,448
Investments at value – affiliated2		—		857,657		1,132,209
Unrealized appreciation on foreign currency exchange contracts		220,007		—		3,454
Unrealized appreciation on swaps		6,598,697		52,735,599		17,806
Foreign currency at value3		72,091		—		199,153
Cash		—		—		—
Cash pledged as collateral in connection with swaps		—		1,100,000		—
Cash pledged as collateral in connection with financial futures contracts		—		2,000,000		40,000
TBA sale commitments receivable		66,590,987		158,720,620		—
Investments sold receivable		90,643,769		76,917,999		137,035
Interest receivable		5,259,572		3,507,929		1,793,972
Swaps receivable		666,978		2,916,048		3,350
Options written receivable		204,336		—		—
Margin variation receivable		305,240		—		—
Swap premiums paid		50,712		145,853		79,250
Dividend receivable — affiliated		—		325		29
Principal paydowns receivable		—		1,744		—
Prepaid expenses		32,557		31,403		29,272
Other assets		66,480		82,606		7,527
Total assets		744,315,617		1,348,310,778		108,267,505
Liabilities
Borrowed bonds4		293,716		—		—
TBA sale commitments at value5		66,719,017		159,088,272		—
Options written at value6		11,979,420		1,886,895		14,667
Loan payable		—		—		12,000,000
TALF loans at value7		11,763,225		11,739,534		—
Bank overdraft		772,922		—		515
Unrealized depreciation on swaps		2,377,940		46,744,510		—
Unrealized depreciation on foreign currency exchange contracts		277,446		—		—
Unrealized depreciation on unfunded loan commitments		—		—		8,879
Interest rate floors at value		—		3,446,023		—
Reverse repurchase agreements		106,912,193		43,578,125		—
Investments purchased payable		121,203,349		526,612,873		216,926
Treasury rolls payable		39,100,437		51,666,935		—
Investment advisory fees payable		190,602		272,912		67,683
Swap premiums received		744,893		1,322,335		18,441
Swaps payable		206,922		4,628,505		5,000
Interest expense payable		56,946		23,029		20,978
Officer’s and Trustees’ fees payable		68,625		84,903		9,208
Income dividends payable		47,376		49,415		10,276
Other affiliates payable		—		—		334
Commitment fees payable		—		—		—
Margin variation payable		—		628,752		949
Administration fees payable		31,774		63,065		—
Other accrued expenses payable		189,338		214,842		99,478
Total liabilities		362,936,141		852,050,925		12,473,334
Net Assets	$	381,379,476	$	496,259,853	$	95,794,171
1 Investments at cost — unaffiliated	$	546,282,337	$	1,034,029,508	$	101,607,820
2 Investments at cost — affiliated		—	$	857,657	$	1,132,209
3 Foreign currency at cost	$	72,562		—	$	203,546
4 Proceeds from borrowed bonds	$	293,743		—		—
5 Proceeds from TBA sale commitments	$	66,590,987	$	158,720,620		—
6 Premiums received	$	8,239,160	$	1,358,915	$	41,825
7 Proceeds from TALF loans	$	11,763,225	$	11,739,534		—

ANNUAL REPORT AUGUST 31, 2010 81

Statements of Assets and Liabilities (concluded)

August 31, 2010	BlackRock Core Bond Trust (BHK)			BlackRock Corporate High Yield Fund V, Inc. (HYV)			BlackRock Corporate High Yield Fund VI, Inc. (HYT)			BlackRock High Income Shares (HIS)			BlackRock High Yield Trust (BHY)
Net Assets Consist of
Paid-in capital8,9,10	$	378,671,939		$	469,820,161		$	505,109,247		$	184,778,474		$	63,364,045
Cost of shares held in treasury11		—			—			—			—			—
Undistributed (distributions in excess of) net investment income		7,202,897			5,001,402			5,651,991			2,972,065			(99,314	)
Accumulated net realized gain (loss)		(25,964,063	)		(87,025,641	)		(103,201,884	)		(67,177,539	)		(18,745,127	)
Net unrealized appreciation/depreciation		23,628,792			(5,192,675	)		(5,799,544	)		(931,309	)		(1,539,472	)
Net Assets	$	383,539,565		$	382,603,247		$	401,759,810		$	119,641,691		$	42,980,132
Net asset value	$	14.19		$	11.61		$	11.38		$	2.19		$	6.69
8 Par value per share	$	0.001		$	0.100		$	0.100			—		$	0.001
9 Shares outstanding		27,023,027			32,944,087			35,294,009			54,620,872			6,427,525
10 Shares authorized		unlimited			200 million			200 million			unlimited			unlimited
11 Shares held in treasury		—			—			—			—			—

See Notes to Financial Statements.
82	ANNUAL REPORT	AUGUST 31, 2010

August 31, 2010	BlackRock Income Opportunity Trust, Inc. (BNA)			BlackRock Income Trust, Inc. (BKT)			BlackRock Strategic Bond Trust (BHD)
Net Assets Consist of
Paid-in capital8,9,10	$	402,924,496		$	478,542,248		$	98,450,652
Cost of shares held in treasury11		(17,377,850	)		—			—
Undistributed (distributions in excess of) net investment income		6,733,590			(83,711	)		1,512,890
Accumulated net realized gain (loss)		(38,810,910	)		1,131,639			(7,415,618	)
Net unrealized appreciation/depreciation		27,910,150			16,669,677			3,246,247
Net Assets	$	381,379,476		$	496,259,853		$	95,794,171
Net asset value	$	11.07		$	7.76		$	13.57
8 Par value per share	$	0.010		$	0.010		$	0.001
9 Shares outstanding		34,456,370			63,942,535			7,058,401
10 Shares authorized		200 million			200 million			unlimited
11 Shares held in treasury		1,757,400			—			—

ANNUAL REPORT AUGUST 31, 2010 83

Statements of Operations

Year Ended August 31, 2010	BlackRock Core Bond Trust (BHK)			BlackRock Corporate High Yield Fund V, Inc. (HYV)			BlackRock Corporate High Yield Fund VI, Inc. (HYT)			BlackRock High Income Shares (HIS)			BlackRock High Yield Trust (BHY)
Investment Income
Interest	$	27,666,931		$	38,809,542		$	41,920,599		$	12,252,265		$	4,109,081
Foreign taxes withheld		—			—			—			—			—
Dividends		—			287,874			116,472			52,374			5,062
Dividends — affiliated		8,237			6,768			8,450			3,742			3,537
Facility and other fees		26,632			520,074			72,010			210,031			56,267
Total income		27,701,800			39,624,258			42,117,531			12,518,412			4,173,947
Expenses
Investment advisory		2,801,761			2,681,548			3,249,917			1,024,332			506,315
Professional		120,539			144,167			154,968			97,909			67,936
Printing		96,851			47,194			50,173			53,112			18,469
Accounting services		86,388			101,942			105,915			28,517			14,662
Custodian		55,090			54,679			54,808			25,209			14,103
Officer and Trustees		46,712			48,277			48,490			13,996			6,235
Transfer agent		12,308			44,135			46,160			26,741			13,082
Registration		9,394			11,434			12,247			18,957			9,356
Borrowing costs1		—			420,986			423,029			124,201			53,494
Administration		—			—			—			—			48,221
Miscellaneous		138,172			81,065			81,918			51,770			46,761
Total expenses excluding interest expense		3,367,215			3,635,427			4,227,625			1,464,744			798,634
Interest expense		831,886			992,008			956,687			262,362			79,870
Total expenses		4,199,101			4,627,435			5,184,312			1,727,106			878,504
Less fees waived by advisor		(1,893	)		(1,917	)		(2,111	)		(1,309	)		(1,241	)
Less fees paid indirectly		—			—			(140	)		—			(155	)
Total expenses after fees waived and paid indirectly		4,197,208			4,625,518			5,182,061			1,725,797			877,108
Net investment income		23,504,592			34,998,740			36,935,470			10,792,615			3,296,839
Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:
Investments		12,485,829			3,892,608			(1,575,755	)		(886,564	)		(1,494,849	)
Financial futures contracts		5,177,443			674,074			674,284			88,964			—
Swaps		(269,014	)		(1,247,238	)		(1,225,327	)		—			(27,176	)
Foreign currency transactions		1,640,792			3,770,503			4,028,616			520,926			—
Options written		4,191,347			—			—			—			—
Borrowed bonds		(396,380	)		—			—			—			—
Interest rate floors		—			—			—			—			—
		22,830,017			7,089,947			1,901,818			(276,674	)		(1,522,025	)
Net change in unrealized appreciation/depreciation on:
Investments		26,237,551			52,457,266			55,646,301			17,290,835			7,422,799
Financial futures contracts		(171,320	)		175,503			180,556			45,478			—
Swaps		231,318			1,031,444			1,083,897			—			(7,473	)
Foreign currency transactions		(44,737	)		370,567			424,758			101,104			—
Options written		(1,549,056	)		107,893			113,584			—			12,341
Unfunded loan commitments		—			(70,023	)		(36,123	)		(2,026	)		(4,001	)
Borrowed bonds		27			—			—			—			—
Interest rate floors		—			—			—			—			—
		24,703,783			54,072,650			57,412,973			17,435,391			7,423,666
Total realized and unrealized gain		47,533,800			61,162,597			59,314,791			17,158,717			5,901,641
Net Increase in Net Assets Resulting from Operations	$	71,038,392		$	96,161,337		$	96,250,261		$	27,951,332		$	9,198,480

¹ See Note 9 of the Notes to Financial Statements for details of short-term borrowings.

See Notes to Financial Statements.
84	ANNUAL REPORT	AUGUST 31, 2010

Year Ended August 31, 2010	BlackRock Income Opportunity Trust, Inc. (BNA)			BlackRock Income Trust, Inc. (BKT)			BlackRock Strategic Bond Trust (BHD)
Investment Income
Interest	$	24,330,074		$	17,448,414		$	8,064,673
Foreign taxes withheld		—			—			(186	)
Dividends		—			—			19,783
Dividends — affiliated		11,142			230,135			4,487
Facility and other fees		—			—			88,655
Total income		24,341,216			17,678,549			8,177,412
Expenses
Investment advisory		2,115,802			3,073,121			733,733
Professional		123,039			109,777			57,729
Printing		100,182			142,535			26,998
Accounting services		77,037			101,089			19,244
Custodian		54,423			60,419			17,854
Officer and Trustees		50,226			65,735			11,355
Transfer agent		21,379			63,357			12,098
Registration		11,959			22,192			9,330
Borrowing costs1		—			—			44,649
Administration		352,634			709,182			—
Miscellaneous		117,109			92,121			52,467
Total expenses excluding interest expense		3,023,790			4,439,528			985,457
Interest expense		820,310			503,200			60,043
Total expenses		3,844,100			4,942,728			1,045,500
Less fees waived by advisor		(2,171	)		(112,085	)		(23,773	)
Less fees paid indirectly		(103	)		(111	)		(1,485	)
Total expenses after fees waived and paid indirectly		3,841,826			4,830,532			1,020,242
Net investment income		20,499,390			12,848,017			7,157,170
Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:		7,998,100			39,882,284			2,299,474
Investments		5,734,694			(10,940,497	)		179,359
Financial futures contracts		5,901,427			1,604,707			(255,692	)
Swaps		1,138,626			—			376,761
Foreign currency transactions		2,274,151			1,367,196			(2,512	)
Options written		(1,078,050	)		1,236,338			—
Borrowed bonds		—			(4,548,840	)		—
Interest rate floors		21,968,948			28,601,188			2,597,390
Net change in unrealized appreciation/depreciation on:
Investments		26,309,577			18,453,902			6,951,005
Financial futures contracts		(686,658	)		(1,315,975	)		5,565
Swaps		(3,529,176	)		(4,223,736	)		(87,130	)
Foreign currency transactions		(59,348	)		—			(848	)
Options written		(1,107,170	)		1,305,906			(10,205	)
Unfunded loan commitments		—			—			(8,879	)
Borrowed bonds		27			—			—
Interest rate floors		—			3,477,474			—
		20,927,252			17,697,571			6,849,508
Total realized and unrealized gain		42,896,200			46,298,759			9,446,898
Net Increase in Net Assets Resulting from Operations	$	63,395,590		$	59,146,776		$	16,604,068

ANNUAL REPORT AUGUST 31, 2010 85

Statements of Changes in Net Assets

	BlackRock Core Bond Trust (BHK)						BlackRock Corporate High Yield Fund V, Inc. (HYV)
	Year Ended August 31,						Year Ended August 31,
Increase (Decrease) in Net Assets:	2010			2009			2010			2009
Operations
Net investment income	$	23,504,592		$	21,687,724		$	34,998,740		$	35,228,086
Net realized gain (loss)		22,830,017			(17,850,763	)		7,089,947			(65,434,566	)
Net change in unrealized appreciation/depreciation		24,703,783			10,169,044			54,072,650			(3,440,186	)
Net increase (decrease) in net assets resulting from operations		71,038,392			14,006,005			96,161,337			(33,646,666	)
Dividends to Shareholders From
Net investment income		(27,023,027	)		(20,703,556	)		(33,602,969	)		(39,697,493	)
Capital Share Transactions
Reinvestment of dividends		—			45,125			—			—
Net Assets
Total increase (decrease) in net assets		44,015,365			(6,652,426	)		62,558,368			(73,344,159	)
Beginning of year		339,524,200			346,176,626			320,044,879			393,389,038
End of year	$	383,539,565		$	339,524,200		$	382,603,247		$	320,044,879
Undistributed net investment income	$	7,202,897		$	8,842,501		$	5,001,402		$	298,774
	BlackRock High Yield Trust (BHY)						BlackRock Income Opportunity Trust (BNA)
	Year Ended August 31,						Year Ended August 31,
Increase (Decrease) in Net Assets:	2010			2009			2010			2009
Operations
Net investment income	$	3,296,839		$	3,283,416		$	20,499,390		$	20,450,608
Net realized gain (loss)		(1,522,025	)		(5,522,049	)		21,968,948			(28,555,821	)
Net change in unrealized appreciation/depreciation		7,423,666			(923,193	)		20,927,252			17,777,805
Net increase (decrease) in net assets resulting from operations		9,198,480			(3,161,826	)		63,395,590			9,672,592
Dividends and Distributions to Shareholders From
Net investment income		(3,246,508	)		(3,522,285	)		(27,117,163	)		(21,085,255	)
Net realized gain		—			—			—			—
Tax return of capital		(108,660	)		(118,809	)		—			—
Decrease in net assets resulting from dividends and distributions to shareholders		(3,355,168	)		(3,641,094	)		(27,117,163	)		(21,085,255	)
Capital Share Transactions
Reinvestment of dividends		—			42,959			—			58,090
Net Assets
Total increase (decrease) in net assets		5,843,312			(6,759,961	)		36,278,427			(11,354,573	)
Beginning of year		37,136,820			43,896,781			345,101,049			356,455,622
End of year	$	42,980,132		$	37,136,820		$	381,379,476		$	345,101,049
Undistributed (distributions in excess of) net investment income	$	(99,314	)	$	(151,867	)	$	6,733,590		$	9,230,290

See Notes to Financial Statements.
86	ANNUAL REPORT	AUGUST 31, 2010

	BlackRock Corporate High Yield Fund VI, Inc. (HYT)						BlackRock High Income Shares (HIS)
	Year Ended August 31,						Year Ended August 31,
Increase (Decrease) in Net Assets:	2010			2009			2010			2009
Operations
Net investment income	$	36,935,470		$	37,172,718		$	10,792,615		$	10,431,902
Net realized gain (loss)		1,901,818			(70,303,662	)		(276,674	)		(17,141,802	)
Net change in unrealized appreciation/depreciation		57,412,973			(2,935,241	)		17,435,391			(2,717,262	)
Net increase (decrease) in net assets resulting from operations		96,250,261			(36,066,185	)		27,951,332			(9,427,162	)
Dividends to Shareholders From
Net investment income		(35,992,789	)		(42,020,500	)		(9,230,927	)		(11,459,895	)
Capital Share Transactions
Reinvestment of dividends		87,090			—			—			—
Net Assets
Total increase (decrease) in net assets		60,344,562			(78,086,685	)		18,720,405			(20,887,057	)
Beginning of year		341,415,248			419,501,933			100,921,286			121,808,343
End of year	$	401,759,810		$	341,415,248		$	119,641,691		$	100,921,286
Undistributed net investment income	$	5,651,991		$	1,222,688		$	2,972,065		$	505,871
	BlackRock Income Trust, Inc. (BKT)						BlackRock Strategic Bond Trust (BHD)
	Year Ended August 31,						Year Ended August 31,
Increase (Decrease) in Net Assets:	2010			2009			2010			2009
Operations
Net investment income	$	12,848,017		$	17,678,751		$	7,157,170		$	6,555,930
Net realized gain (loss)		28,601,188			54,373,285			2,597,390			(7,297,137	)
Net change in unrealized appreciation/depreciation		17,697,571			(42,161,969	)		6,849,508			2,434,562
Net increase (decrease) in net assets resulting from operations		59,146,776			29,890,067			16,604,068			1,693,355
Dividends and Distributions to Shareholders From
Net investment income		(16,372,760	)		(18,415,450	)		(6,391,382	)		(6,204,335	)
Net realized gain		(2,042,690	)		—			—			—
Tax return of capital		—			—			—			—
Decrease in net assets resulting from dividends and distributions to shareholders		(18,415,450	)		(18,415,450	)		(6,391,382	)		(6,204,335	)
Capital Share Transactions
Reinvestment of dividends		—			—			—			—
Net Assets
Total increase (decrease) in net assets		40,731,326			11,474,617			10,212,686			(4,510,980	)
Beginning of year		455,528,527			444,053,910			85,581,485			90,092,465
End of year	$	496,259,853		$	455,528,527		$	95,794,171		$	85,581,485
Undistributed (distributions in excess of) net investment income	$	(83,711	)	$	5,873,652		$	1,512,890		$	454,611

ANNUAL REPORT AUGUST 31, 2010 87

Statements of Cash Flows

Year Ended August 31, 2010	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)
Cash Provided by (Used for) Operating Activities
Net increase in net assets resulting from operations	$	71,038,392		$	96,161,337		$	96,250,261		$	27,951,332		$	9,198,480		$	63,395,590
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		(479,149	)		(267,817	)		(458,855	)		20,488			(38,676	)		(1,134,984	)
(Increase) decrease in swaps receivable		1,313,388			7,263			6,894			—			(550	)		3,312,944
(Increase) decrease in margin variation receivable		74,790			—			—			—			—			(43,615	)
Decrease in dividends receivable		—			—			—			5,000			—			—
Decrease in commitment fees receivable		682			2,524			—			—			—			—
(Increase) decrease in dividends receivable — affiliated		(72	)		(163	)		(127	)		(62	)		5			322
(Increase) decrease in prepaid expenses		4,152			(7,873	)		(6,716	)		(6,566	)		(689	)		4,267
(Increase) decrease in other assets		1,736			(208,871	)		(252,107	)		(46,936	)		(24,898	)		7,558
Increase in investment advisory fees payable		40,389			47,806			51,592			16,833			10,631			17,584
Increase in interest expense payable		73,817			113,221			109,778			28,173			12,059			29,793
Increase in commitment fees payable		—			—			2,737			829			333			—
Increase in administration fees payable		—			—			—			—			1,018			2,934
Increase in other affiliates payable		372			358			318			120			—			—
Increase in margin variation payable		—			33,600			34,400			7,200			—			—
Increase (decrease) in other accrued expenses payable		17,887			37,953			32,059			22,101			(2,783	)		8,563
Decrease in deferred income		—			—			(6,438	)		—			—			—
Decrease in swaps payable		(367,329	)		(66,056	)		(67,340	)		—			(1,095	)		(985,986	)
Decrease in cash held as collateral in connection with swaps		(912,000	)		—			—			—			—			(1,100,000	)
Increase (decrease) in cash held as collateral in connection with financial futures contracts		221,000			(1,130,000	)		(1,160,000	)		(240,000	)		—			—
Decrease in other liabilities		(363,231	)		—			—			—			—			(541,582	)
Increase (decrease) in Officer’s and Trustees’ fees payable		(448	)		24,567			24,761			663			325			112
Net periodic and termination payments of swaps		(1,214,411	)		(433,206	)		(416,913	)		—			6,968			2,483,488
Net realized and unrealized loss		(39,854,855	)		(56,443,997	)		(53,919,861	)		(16,459,420	)		(5,868,556	)		(33,469,404	)
Amortization of premium and discount on investments		(582,806	)		(3,702,639	)		(3,786,095	)		(944,966	)		(222,719	)		233,663
Paid-in-kind income		(177,601	)		(1,319,836	)		(1,597,605	)		(576,680	)		(182,467	)		(124,943	)
Premiums received from options written		18,973,747			166,000			174,750			—			19,050			17,198,909
Proceeds from sales and paydowns of long-term investments		3,873,820,320			393,119,710			387,238,215			113,206,581			37,064,028			4,220,247,442
Purchases of long-term investments		(3,954,222,668	)		(431,439,852	)		(417,542,441	)		(120,065,263	)		(41,265,822	)		(4,306,327,363	)
Net purchases of short-term securities		—			(528,833	)		458,496			(782,624	)		—			—
Net proceeds from sales of short-term securities		929,786			—			—			—			606,971			29,706,054
Premiums paid on closing options written		(15,735,705	)		—			—			—			—			(12,708,362	)
Cash provided by (used for) operating activities		(47,399,817	)		(5,834,804	)		5,169,763			2,136,803			(688,387	)		(19,787,016	)
Cash Provided by (Used for) Financing Activities
Cash receipts from borrowings		2,049,903,139			247,000,000			254,000,000			76,000,000			24,000,000			2,573,155,256
Cash payments from borrowings		(1,976,604,441	)		(209,000,000	)		(223,000,000	)		(69,000,000	)		(20,000,000	)		(2,526,387,987	)
Cash dividends paid to shareholders		(27,020,899	)		(33,616,408	)		(35,909,161	)		(9,232,253	)		(3,349,577	)		(27,123,926	)
Increase in bank overdraft		—			—			(212,807	)		—			—			(772,922	)
Cash provided by (used for) financing activities		46,277,799			4,383,592			(5,121,968	)		(2,232,253	)		650,423			18,870,421
Cash Impact from Foreign Exchange Fluctuations
Cash impact from foreign exchange fluctuations		13			14,203			(99	)		(3,167	)		—			(474	)
Cash
Net increase (decrease) in cash and foreign currency		(1,122,005	)		(1,437,009	)		47,696			(98,617	)		(37,964	)		(917,069	)
Cash and foreign currency at beginning of year		1,319,117			1,482,074			1,225			110,310			39,916			989,160
Cash and foreign currency at end of year	$	197,112		$	45,065		$	48,921		$	11,693		$	1,952		$	72,091
Cash Flow Information
Cash paid for interest	$	758,069		$	878,787		$	846,909		$	234,189		$	67,811		$	790,517
Noncash Financing Activities
Capital shares issued in reinvestment of dividends paid to shareholders		—			—		$	87,090			—			—			—

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

See Notes to Financial Statements.
88	ANNUAL REPORT	AUGUST 31, 2010

Financial Highlights BlackRock Core Bond Trust (BHK)

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

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

See Notes to Financial Statements.
	ANNUAL REPORT	AUGUST 31, 2010	89

Financial Highlights

	BlackRock Corporate High Yield Fund V, Inc. (HYV)															BlackRock Corporate High Yield Fund VI, Inc. (HYT)
	Year Ended August 31,															Year Ended August 31,
	2010			2009			2008			2007			2006			2010			2009			2008			2007			2006
Per Share Operating Performance
Net asset value, beginning of year	$	9.71		$	11.94		$	13.83		$	14.10		$	15.19		$	9.68		$	11.89		$	13.81		$	14.12		$	15.08
Net investment income1		1.06			1.07			1.18			1.20			1.22			1.05			1.05			1.16			1.18			1.16
Net realized and unrealized gain (loss)		1.86			(2.10	)		(1.85	)		(0.33	)		(0.50	)		1.67			(2.07	)		(1.87	)		(0.39	)		(0.49	)
Net increase (decrease) from investment operations		2.92			(1.03	)		(0.67	)		0.87			0.72			2.72			(1.02	)		(0.71	)		0.79			0.67
Dividends and distributions from:
Net investment income		(1.02	)		(1.20	)		(1.17	)		(1.14	)		(1.25	)		(1.02	)		(1.19	)		(1.21	)		(1.10	)		(1.17	)
Net realized gain		—			—			(0.05	)		—			(0.56	)		—			—			—			—			(0.46	)
Total dividends and distributions		(1.02	)		(1.20	)		(1.22	)		(1.14	)		(1.81	)		(1.02	)		(1.19	)		(1.21	)		(1.10	)		(1.63	)
Net asset value, end of year	$	11.61		$	9.71		$	11.94		$	13.83		$	14.10		$	11.38		$	9.68		$	11.89		$	13.81		$	14.12
Market price, end of year	$	11.40		$	9.32		$	10.15		$	12.24		$	12.81		$	11.19		$	9.47		$	10.14		$	12.15		$	12.48
Total Investment Return2
Based on net asset value		31.40	%		(3.83	)%		(3.99	)%		6.76	%		6.37	%		29.26	%		(4.03	)%		(4.30	)%		6.29	%		6.29	%
Based on market price		34.42	%		8.59	%		(7.78	)%		4.00	%		(2.40	)%		29.92	%		10.09	%		(7.24	)%		5.80	%		(1.07	)%
Ratios to Average Net Assets
Total expenses		1.26	%		1.84	%		2.11	%		3.20	%		2.87	%		1.34	%		2.01	%		2.24	%		3.35	%		2.89	%
Total expenses after fees waived and paid indirectly		1.26	%		1.84	%		2.11	%		3.20	%		2.87	%		1.34	%		2.01	%		2.24	%		3.35	%		2.89	%
Total expenses after fees waived and paid indirectly and excluding interest expense and fees		0.99	%		1.16	%		0.97	%		0.99	%		0.98	%		1.09	%		1.28	%		1.10	%		1.12	%		1.11	%
Net investment income		9.52	%		13.00	%		9.16	%		8.23	%		8.49	%		9.52	%		12.82	%		9.02	%		8.03	%		8.11	%
Supplemental Data
Net assets, end of year (000)	$	382,603		$	320,045		$	393,389		$	455,710		$	464,453		$	401,760		$	341,415		$	419,502		$	487,251		$	498,096
Borrowings outstanding, end of year (000)	$	92,000		$	54,000		$	94,700		$	127,700		$	200,100		$	89,000		$	58,000		$	110,900		$	135,900		$	216,200
Average borrowings outstanding during the year (000)	$	79,427		$	65,403		$	106,140		$	188,373		$	183,484		$	76,356		$	73,784		$	113,996		$	202,705		$	184,070
Portfolio turnover		90	%		65	%		46	%		51	%		64	%		85	%		60	%		45	%		51	%		62	%
Asset coverage, end of year per $1,000	$	5,159		$	6,927		$	5,154		$	4,569		$	3,321		$	5,514		$	6,886		$	4,783		$	4,585		$	3,304

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

See Notes to Financial Statements.
90	ANNUAL REPORT	AUGUST 31, 2010

Financial Highlights BlackRock High Income Shares (HIS)

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

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

See Notes to Financial Statements.
	ANNUAL REPORT	AUGUST 31, 2010	91

Financial Highlights BlackRock High Yield Trust (BHY)

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

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

See Notes to Financial Statements.
92	ANNUAL REPORT	AUGUST 31, 2010

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

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

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

See Notes to Financial Statements.
	ANNUAL REPORT	AUGUST 31, 2010	93

Financial Highlights BlackRock Income Trust, Inc. (BKT)

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

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

See Notes to Financial Statements.
94	ANNUAL REPORT	AUGUST 31, 2010

Financial Highlights BlackRock Strategic Bond Trust (BHD)

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

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

See Notes to Financial Statements.
	ANNUAL REPORT	AUGUST 31, 2010	95

Notes to Financial Statements

1. Organization and Significant Accounting Policies:

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

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

Valuation: The Trusts fair value their financial instruments at market value using independent dealers or pricing services under policies approved by the Board. The Trusts value their bond investments on the basis of last available bid prices or current market quotations provided by dealers or pricing services. Floating rate loan interests are valued at the mean of the bid prices from one or more brokers or dealers as obtained from a pricing service. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market transactions in comparable investments, various relationships observed in the market between investments and calculated yield measures based on valuation technology commonly employed in the market for such investments. 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 and trades and values of the underlying reference instruments. Investments in open-end investment companies are valued at net asset value each business day. Short-term securities with remaining maturities of 60 days or less may be valued at amortized cost, which approximates fair value.

Equity investments traded on a recognized securities exchange or the NASDAQ Global Market System are valued at the last reported sale price that day or the NASDAQ official closing price, if applicable. For equity investments traded on more than one exchange, the last reported sale price on the exchange where the stock is primarily traded is used. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last available bid 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 last bid (long positions) or ask (short positions) price. If no bid or ask price is available, the prior day’s price will be used, unless it is determined that the prior day’s price no longer reflects the fair value of the option. Over-the-counter (“OTC”) options and swaptions are valued by an independent pricing service using a mathematical model which incorporates a number of market data factors, such as the trades and prices of the underlying instruments.

In the event that application of these methods of valuation results in a price for an investment which is deemed not to be representative of the market value of such investment or is not available, the investment will be valued in accordance with a policy approved by the Board as reflecting fair value (“Fair Value Assets”). When determining the price for Fair Value Assets, the investment advisor and/or the sub-advisor seeks to determine the price that each Trust might reasonably expect to receive from the current sale of that asset in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the investment advisor and/or sub-advisor deems relevant. The pricing of all Fair Value Assets is subsequently reported to the Board or a committee thereof.

Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of business on the NYSE. Occasionally, events affecting the values of such instruments may occur between the foreign market close and the close of business on the NYSE that may not be reflected in the computation of each Trust’s net assets. If events (for example, a company announcement, market volatility or a natural disaster) occur during such periods that are expected to materially affect the value of such instruments, those instruments may be Fair Value Assets and be valued at their fair values, as determined in good faith by the investment advisor using a pricing service and/or policies approved by the Board.

96 ANNUAL REPORT AUGUST 31, 2010

Notes to Financial Statements (continued)

Foreign Currency Transactions: The Trusts’ books and records are maintained in US dollars. Purchases and sales of investments are recorded at the rates of exchange prevailing on the date the transactions are entered into. Generally, when the US dollar rises in value against foreign currency, the Trusts’ investments denominated in that currency will lose value because its currency is worth fewer US dollars; the opposite effect occurs if the US dollar falls in relative value.

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

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

Certain Trusts may purchase certain mortgage pass-through securities. There are a number of important differences among the agencies and instrumentalities of the US Government that issue mortgage-related securities and among the securities that they issue. For example, mortgage-related securities guaranteed by the Government National Mortgage Association (“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 the Federal Home Loan Mortgage Corporation (“Freddie Mac”) and Federal National Mortgage Association (“Fannie Mae”), including Freddie Mac and Fannie Mae guaranteed Mortgage Pass-Through Certificates which are solely the obligations of Freddie Mac and Fannie Mae, are not backed by or entitled to the full faith and credit of the United States and are supported by the right of the issuer to borrow from the Treasury.

Multiple Class Pass-Through Securities: Certain Trusts may invest in multiple class pass-through securities, including collateralized mortgage obligations (“CMOs”) and commercial mortgage-backed securities. These multiple class securities may be issued by Ginnie Mae, US government agencies or instrumentalities or by trusts formed by private originators of, or investors in, mortgage loans. In general, CMOs are debt obligations of a legal entity that are collateralized by, and multiple class pass-through securities represent direct ownership interests in, a pool of residential or commercial mortgage loans or mortgage pass-through securities (the “Mortgage Assets”), the payments on which are used to make payments on the CMOs or multiple pass-through securities. Classes of CMOs include 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 Trust may not fully recoup its initial investment in IOs.

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 can have a rating that is slightly below that of the issuing company’s senior debt securities.

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

Floating Rate Loan Interests: Certain Trusts may invest in floating rate loan interests. The floating rate loan interests the Trusts hold are typically issued to companies (the “borrower”) by banks, other financial institutions, and privately and publicly offered corporations (the “lender”). Floating rate loan

ANNUAL REPORT AUGUST 31, 2010 97

Notes to Financial Statements (continued)

interests are generally non-investment grade, often involve borrowers whose financial condition is troubled or uncertain and companies that are highly levered. The Trusts may invest in obligations of borrowers who are in bankruptcy proceedings. Floating rate loan interests may include fully funded term loans or revolving lines of credit. Floating rate loan interests are typically senior in the corporate capital structure of the borrower. Floating rate loan interests generally pay interest at rates that are periodically determined by reference to a base lending rate plus a premium. The base lending rates are generally the lending rate offered by one or more European banks, such as LIBOR (London Inter Bank Offered Rate), the prime rate offered by one or more US banks or the certificate of deposit rate. Floating rate loan interests may involve foreign borrowers, and investments may be denominated in foreign currencies. The Trusts consider these investments to be investments in debt securities for purposes of their investment policies.

When a Trust buys a floating rate loan interest it may receive a facility fee and when it sells a floating rate loan interest it may pay a facility fee. On an ongoing basis, the Trusts may receive a commitment fee based on the undrawn portion of the underlying line of credit amount of a floating rate loan interest. The Trusts earn and/or pay facility and other fees on floating rate loan interests, which are shown as facility and other fees in the Statements of Operations. Facility and commitment fees are typically amortized to income over the term of the loan or term of the commitment, respectively. Consent and amendment fees are recorded to income as earned. Prepayment penalty fees, which may be received by the 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”) and assignments of all or a portion of loans from third parties. Participations typically will result in the Trusts having a contractual relationship only with the lender, not with the borrower. The Trusts will have the right to receive payments of principal, interest and any fees to which it is entitled only from the lender selling the Participation and only upon receipt by the lender of the payments from the borrower. In connection with purchasing Participations, the Trusts generally will have no right to enforce compliance by the borrower with the terms of the loan agreement, nor any rights of offset against the borrower, and the Trusts may not benefit directly from any collateral supporting the loan in which it has purchased the Participation. As a result, the Trusts will assume the credit risk of both the borrower and the lender that is selling the Participation. The Trusts’ investment in loan participation interests involves the risk of insolvency of the financial intermediaries who are parties to the transactions. In the event of the insolvency of the lender selling the Participation, the Trusts may be treated as general creditors of the lender and may not benefit from any offset between the lender and the borrower.

Borrowed Bond Agreements: In a borrowed bond agreement, the Trusts borrow securities from a third party at an agreed upon rate, with the commitment that the securities be returned to the lender on an agreed-upon date. Borrowed bond agreements are primarily entered into to enable the Trusts to settle short bond positions. To support the borrowing, the Trusts’ third party broker or prime broker takes possession of collateral of securities or cash that will be released upon termination of the borrowing. The value of the underlying collateral securities or cash approximates the market value of the borrowed bond transaction, including accrued interest. To the extent that borrowed bond transactions exceed one business day, the value of the collateral in the possession of the Trusts’ prime broker or third party broker is marked to market on a daily basis to ensure the adequacy of the collateral. In the event of default by the counterparty and the value of noncash collateral increases, the Trusts’ amount of loss is the unrealized gain of the collateral. Full realization of the collateral by the Trusts may be limited if the value of an investment purchased with the cash collateral by the lender decreases. The Trusts may also experience delays in gaining access to the collateral.

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

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

Treasury Roll Transactions: A treasury roll transaction involves the sale of a Treasury security, with an agreement to repurchase the same security at an agreed upon price and date. Treasury rolls constitute a borrowing and the difference between the sale and repurchase price represents interest expense at an agreed upon rate. Whether such a transaction produces a positive impact on performance depends upon whether the income on the securities purchased with the proceeds received from the sale of the security exceeds the interest expense incurred by the Trusts. For accounting purposes, treasury rolls are not considered purchases and sales and any gains or losses incurred on the treasury rolls will be deferred until the Treasury securities are disposed.

98 ANNUAL REPORT AUGUST 31, 2010

Notes to Financial Statements (continued)

Treasury roll transactions involve the risk that the market value of the securities that the Trusts are required to purchase may decline below the agreed upon purchase price of those securities. If investment performance of securities purchased with proceeds from these transactions does not exceed the income, capital appreciation and gain or loss that would have been realized on the securities sold as part of the treasury roll, the use of this technique will adversely impact the investment performance of the Trusts.

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

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

Segregation and Collateralization: In cases in which the 1940 Act and the interpretive positions of the Securities and Exchange Commission (“SEC”) require that the Trusts either deliver collateral or segregate assets in connection with certain investments (e.g., dollar rolls, TBA sale commitments, financial futures contracts, foreign currency exchange contracts, swaps, short sales and options written), or certain borrowings (e.g., reverse repurchase agreements, treasury roll transactions, TALF loans and loan payable) the Trusts will, consistent with SEC rules and/or certain interpretive letters issued by the SEC, segregate collateral or designate on their books and records cash or other liquid securities having a market value at least equal to the amount that would otherwise be required to be physically segregated. Furthermore, based on requirements and agreements with certain exchanges and third party broker-dealers, each party has requirements to deliver/deposit securities as collateral for certain investments.

Investment Transactions and Investment Income: For financial reporting purposes, investment transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on the ex-dividend dates. Dividends from foreign securities where the ex-dividend date may have passed are subsequently recorded when the Trusts have determined the ex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Interest income, including amortization of premium and accretion of discount on debt securities, is recognized on the accrual basis. Consent fees are compensation for agreeing to changes in the terms of debt instruments and are included in facility and other fees in the Statements of Operations.

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

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

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

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

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

ANNUAL REPORT AUGUST 31, 2010 99

Notes to Financial Statements (continued)

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

2. Derivative Financial Instruments:

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

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

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

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

Financial Futures Contracts: The Trusts purchase or sell financial futures contracts and options on financial futures contracts to gain exposure to, or economically hedge against, changes in interest rates (interest rate risk) or in the values of equity securities (equity risk). Financial futures contracts are contracts for delayed delivery of securities or currencies at a specific future date and at a specific price or yield. Pursuant to the contract, the Trusts agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as margin variation and are recognized by the Trusts as unrealized gains or losses. 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 transactions involves the risk of an imperfect correlation in the movements in the price of financial futures contracts, interest rates and the underlying assets.

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

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

100 ANNUAL REPORT AUGUST 31, 2010

Notes to Financial Statements (continued)

write a call option, such option is “covered,” meaning that the Trusts hold the underlying instrument subject to being called by the option counterparty, or cash in an amount sufficient to cover the obligation. 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 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. When foreign currency is purchased or sold through an exercise of a foreign currency option, the related premium paid (or received) is added to (or deducted from) the basis of the foreign currency acquired or deducted from (or added to) the proceeds of the foreign currency sold. Such transactions may be effected with respect to hedges on non-US dollar denominated instruments owned by the Trusts but not yet delivered, or committed or anticipated to be purchased by the Trusts.

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

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

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

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

ANNUAL REPORT AUGUST 31, 2010 101

Notes to Financial Statements (continued)

Derivative Instruments Categorized by Risk Exposure:

Fair Values of Derivative Instruments as of August 31, 2010
	Asset Derivatives
	Statements of Assets and Liabilities Location	BHK		HYV		HYT		HIS		BHY		BNA		BKT		BHD
Interest rate contracts	Net unrealized appreciation/ depreciation*; Unrealized appreciation on swaps; Investments at value — unaffiliated**	$	9,417,667		—		—		—		—	$	13,907,907	$	54,155,826	$	31,096
Foreign currency exchange contracts	Unrealized appreciation on foreign currency exchange contracts		227,544	$	15,140	$	16,013	$	2,498		—		220,007		—		3,454
Credit contracts	Unrealized appreciation on swaps		31,719		296,315		320,659		—	$	168		127,667		—		17,806
Equity contracts	Net unrealized appreciation/depreciation*		—		175,503		180,556		45,478		—		—		—		—
Other contracts	Unrealized appreciation on swaps		617,527		—		—		—		—		617,527		—		—
Total		$	10,294,457	$	486,958	$	517,228	$	47,976	$	168	$	14,873,108	$	54,155,826	$	52,356

Liability Derivatives
	Statements of Assets and Liabilities Location	BHK		HYV		HYT		HIS		BHY		BNA		BKT		BHD
Interest rate contracts	Net unrealized appreciation/depreciation*; Unrealized depreciation on swaps; Options written at value; Interest rate floors at value	$	14,343,097		—		—		—		—	$	14,643,726	$	53,542,538	$	36,714
Foreign currency exchange contracts	Unrealized depreciation on foreign currency exchange contracts		287,611	$	57,333	$	57,910	$	2,840		—		277,446		—		—
Credit contracts	Unrealized depreciation on swaps; Options written at value		103,397		398,476		304,769		—	$	10,408		75,243		—		14,667
Total		$	14,734,105	$	455,809	$	362,679	$	2,840	$	10,408	$	14,996,415	$	53,542,538	$	51,381

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

The Effect of Derivative Instruments on the Statements of Operations Year Ended August 31, 2010
	Net Realized Gain (Loss) from
	BHK			HYV			HYT			HIS		BHY			BNA			BKT			BHD
Interest rate contracts:
Financial futures contracts	$	5,177,443		$	674,074		$	674,284			—		—		$	5,734,694		$	(10,940,497	)	$	179,359
Swaps		953,593			—			—			—		—			6,679,322			1,604,707			—
Interest rate floors		—			—			—			—		—			—			(4,548,840	)		—
Options***		2,202,642			—			—			—		—			2,526,615			756,243			(7,751	)
Foreign currency exchange contracts:
Foreign currency exchange contracts****		1,842,740			3,752,522			3,990,642		$	519,649		—			1,294,418			—			380,902
Credit contracts:
Swaps		(1,222,607	)		(1,247,238	)		(1,225,327	)		—	$	(27,176	)		(777,895	)		—			(255,692	)
Options***		45,188			—			—			—		—			45,054			—			(2,512	)
Equity contracts:
Financial futures contracts		—			—			—			88,964		—			—			—			—
Total	$	8,998,999		$	3,179,358		$	3,439,599		$	608,613	$	(27,176	)	$	15,502,208		$	(13,128,387	)	$	294,306

***	Options purchased are included in the net realized gain (loss) from investments and net change in unrealized appreciation/depreciation on investments.
****	Foreign currency exchange contracts are included in the net realized gain (loss) from foreign currency transactions and net change in unrealized appreciation/depreciation on foreign currency transactions.

102 ANNUAL REPORT AUGUST 31, 2010

Notes to Financial Statements (continued)

	Net Change in Unrealized Appreciation/Depreciation on
	BHK			HYV		HYT		HIS		BHY			BNA			BKT			BHD
Interest rate contracts:
Financial futures contracts	$	(171,320	)		—		—		—		—		$	(686,658	)	$	(1,315,975	)	$	5,565
Swaps		(851,732	)		—		—		—		—			(4,772,568	)		(4,223,736	)		—
Options***		(40,598	)		—		—		—		—			(648,506	)		1,662,022			—
Interest rate floors		—			—		—		—		—			—			3,477,474			—
Foreign currency exchange contracts:
Foreign currency exchange contracts****		(42,437	)	$	408,399	$	455,392	$	109,716		—			(59,119	)		—			3,454
Credit contracts:
Swaps		465,523			1,031,444		1,083,897		—	$	(7,473	)		625,865			—			(87,130	)
Options***		—			107,893		113,584		—		12,341			—			—			(10,205	)
Equity contracts:
Financial futures contracts		—			175,503		180,556		45,478		—			—			—			—
Options***		—			—		—		—		(3,000	)		—			—			(6,000	)
Other contracts:
Swaps		617,527			—		—		—		—			617,527			—			—
Total	$	(23,037	)	$	1,723,239	$	1,833,429	$	155,194	$	1,868		$	(4,923,459	)	$	(400,215	)	$	(94,316	)

***	Options purchased are included in the net realized gain (loss) from investments and net change in unrealized appreciation/depreciation on investments.
****	Foreign currency exchange contracts are included in the net realized gain (loss) from foreign currency transactions and net change in unrealized appreciation/depreciation on foreign currency transactions.

  For the year ended August 31, 2010, 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		741		—		—		—		—		800		216		39
Average number of contracts sold		913		19		18		4		—		1,020		1,577		21
Average notional value of contracts purchased	$	105,778,406		—		—		—		—	$	105,672,875	$	29,127,244	$	5,845,957
Average notional value of contracts sold	$	126,888,362	$	5,182,155	$	4,904,582	$	1,010,271		—	$	148,490,360	$	277,218,691	$	2,572,520
Foreign currency exchange contracts:
Average number of contracts — US dollars purchased		4		7		7		3		—		3		—		3
Average number of contracts — US dollars sold		1		3		3		1		—		1		—		1
Average US dollar amounts purchased	$	13,118,838	$	34,022,389	$	35,339,826	$	5,133,756		—	$	9,315,602		—	$	2,281,550
Average US dollar amounts sold	$	3,602,538	$	2,144,802	$	2,223,156	$	57,820		—	$	3,609,929		—	$	206,020
Options:
Average number of contracts purchased		554		—		—		—		3		474		34		6
Average number of contracts written		367		5		5		—		1		320		57		1
Average notional value of contracts purchased	$	252,594,625		—		—		—	$	2,829	$	133,909,500	$	19,714,500	$	5,657
Average notional value of contracts written	$	219,990,250	$	4,500,000	$	4,737,500		—	$	512,500	$	172,129,000	$	57,350,000	$	1,131,250
Credit default swaps:
Average number of contracts — buy protection		18		10		10		—		2		16		—		4
Average number of contracts — sell protection		1		8		8		—		1		1		—		1
Average notional value — buy protection	$	11,843,375	$	9,509,188	$	9,399,500		—	$	372,500	$	8,301,750		—	$	1,370,000
Average notional value — sell protection	$	1,025,000	$	3,202,500	$	3,674,375		—	$	27,500	$	3,725,000		—	$	193,750
Interest rate swaps:
Average number of contracts — pays fixed rate		20		—		—		—		—		20		14		—
Average number of contracts — receives fixed rate		14		—		—		—		—		18		11		—
Average notional value — pays fixed rate	$	102,823,750		—		—		—		—	$	122,550,000	$	408,630,000		—
Average notional value — receives fixed rate	$	103,358,750		—		—		—		—	$	166,528,750	$	304,161,600		—
Total return swaps:
Average number of contracts		1		—		—		—		—		1		—		—
Average notional value	$	5,700,000		—		—		—		—	$	5,700,000		—		—

3. Investment Advisory Agreement and Other Transactions with Affiliates:

The PNC Financial Services Group, Inc. (“PNC”), Bank of America Corporation (“BAC”) and Barclays Bank PLC (“Barclays”) are the largest stockholders of BlackRock, Inc. (“BlackRock”). Due to the ownership structure, PNC is an affiliate of the Trusts for 1940 Act purposes, but BAC and Barclays are not. Each Trust entered into an Investment Advisory Agreement with BlackRock Advisors, LLC (the “Manager”), the Trusts’ investment advisor, an indirect, wholly owned subsidiary of BlackRock, to provide investment advisory services for each Trust and administration services for BHK, HYV, HYT, HIS and BHD.

ANNUAL REPORT AUGUST 31, 2010 103

Notes to Financial Statements (continued)

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

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

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

HYV	0.60	%
HYT	0.70	%

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

BNA	0.60	%
BKT	0.65	%

The Manager voluntarily agreed to waive a portion of the investment advisory fees or other expenses on BHD by 0.05% of its average weekly managed assets through February 28, 2010. BHD waived $22,435, which is included in fees waived by advisor in the Statements of Operations.

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

The Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees each Trust pays to the Manager indirectly through its investment in affiliated money market funds; however, the Manager does not waive its investment advisory fees by the amount of investment advisory fees paid through each Trust’s investment in other affiliated investment companies, if any. These amounts are included in fees waived by advisor in the Statements of Operations. For the year ended August 31, 2010, the amounts waived were as follows:

BHK	$	1,893
HYV	$	1,917
HYT	$	2,111
HIS	$	1,309
BHY	$	1,241
BNA	$	2,171
BKT	$	112,085
BHD	$	1,338

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

For the year ended August 31, 2010, certain Trusts reimbursed the Manager for certain accounting services, which are included in accounting services in the Statements of Operations. The reimbursements were as follows:

BHK	$	9,657
HYV	$	8,683
HYT	$	8,999
HIS	$	2,684
BHD	$	1,885

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

4. Income Tax Information:

Reclassifications: US GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The following permanent differences as of August 31, 2010 attributable to the accounting for swap agreements, amortization and accretion methods on fixed income securities, foreign currency transactions, non-deductible expenses, securities in default, income recognized from pass-through entities, the classification of settlement proceeds, distributions paid in excess of taxable income and the expiration of capital loss carryforwards were reclassified to the following accounts:

	BHK			HYV			HYT			HIS			BHY			BNA			BKT			BHD
Paid-in capital		—			—		$	(43	)	$	(102,576,339	)	$	(8,468,860	)		—		$	(783,751	)		—
Undistributed (distributions in excess of) net investment income	$	1,878,831		$	3,306,857		$	3,486,622		$	904,506		$	2,222		$	4,121,073		$	(2,432,620	)	$	292,491
Accumulated net realized gain (loss)	$	(1,878,831	)	$	(3,306,857	)	$	(3,486,579	)	$	101,671,833		$	8,466,638		$	(4,121,073	)	$	3,216,371		$	(292,491	)

104 ANNUAL REPORT AUGUST 31, 2010

Notes to Financial Statements (continued)

The tax character of distributions paid during the fiscal years ended August 31, 2010 and August 31, 2009 was as follows:

	BHK		HYV		HYT		HIS		BHY		BNA		BKT		BHD
Ordinary income
8/31/2010	$	27,023,027	$	33,602,969	$	35,992,789	$	9,230,927	$	3,246,508	$	27,117,163	$	16,803,787	$	6,391,382
8/31/2009		20,703,556		39,697,493		42,020,500		11,459,895		3,522,285		21,085,255		18,415,450		6,204,335
Long-term capital gains
8/31/2010		—		—		—		—		—		—		1,611,663		—
Tax return of capital
8/31/2010		—		—		—		—		108,660		—		—		—
8/31/2009		—		—		—		—		118,809		—		—		—
Total distributions
8/31/2010	$	27,023,027	$	33,602,969	$	35,992,789	$	9,230,927	$	3,355,168	$	27,117,163	$	18,415,450	$	6,391,382
8/31/2009	$	20,703,556	$	39,697,493	$	42,020,500	$	11,459,895	$	3,641,094	$	21,085,255	$	18,415,450	$	6,204,335

As of August 31, 2010, the tax components of accumulated net earnings (losses) were as follows:

	BHK			HYV			HYT			HIS			BHY			BNA			BKT		BHD
Undistributed ordinary income	$	7,121,433		$	7,065,266		$	7,864,723		$	3,292,165			—		$	6,617,192			—	$	1,547,611
Capital loss carryforwards		(25,062,853	)		(83,968,877	)		(99,724,971	)		(66,989,586	)	$	(17,763,693	)		(37,862,770	)		—		(7,248,848	)
Net unrealized gains (losses)*		22,809,046			(10,313,303	)		(11,489,189	)		(1,439,362	)		(2,620,220	)		27,078,408		$	17,717,605		3,044,756
Total	$	4,867,626		$	(87,216,914	)	$	(103,349,437	)	$	(65,136,783	)	$	(20,383,913	)	$	(4,167,170	)	$	17,717,605	$	(2,656,481	)

* The differences between book-basis and tax-basis net unrealized gains (losses) were attributable primarily to the tax deferral of losses on wash sales, amortization and accretion methods of premiums and discounts on fixed income securities, the accrual of income on securities in default, the realization for tax purposes of unrealized gains/losses on certain futures and foreign currency exchange contracts, the deferral of post-October currency and capital losses for tax purposes, the timing and recognition of partnership income, the accounting for swap agreements, the deferral of compensation to trustees and other book/tax differences.

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

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

5. 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 year ended August 31, 2010, were as follows:

	Purchases			Sales
BHK	$	1,789,169,890	$	1,725,246,085
HYV	$	430,089,096	$	393,992,298
HYT	$	418,272,627	$	388,135,220
HIS	$	120,904,186	$	113,389,296
BHY	$	41,639,526	$	36,989,394
BNA	$	1,842,136,613	$	1,760,363,946
BKT	$	6,364,584,320	$	5,999,742,705
BHD	$	93,829,121	$	78,706,714

Purchases and sales of US government securities for the year ended August 31, 2010, were as follows:

	Purchases		Sales
BHK	$	1,391,711,583	$	1,344,547,113
BNA	$	1,550,482,926	$	1,515,261,791
BKT	$	442,024,169	$	383,571,810
BHD		—	$	437,367

For the year ended August 31, 2010, purchases and sales of mortgage dollar rolls were as follows:

		Purchases		Sales
BHK	$	512,616,428	$	512,636,492
BNA	$	510,771,621	$	510,586,149
BKT	$	4,873,523,094	$	4,888,969,832

ANNUAL REPORT AUGUST 31, 2010 105

Notes to Financial Statements (continued)

Transactions in options written for the year ended August 31, 2010, were as follows:

	Calls									Puts
	Contracts			Notional Amount (000)			Premium Received			Contracts			Notional Amount (000)			Premium Received
BHK
Outstanding options, beginning of year		—			122,600		$	5,356,030			—			125,800		$	5,504,520
Options written		252			195,140			8,211,794			457			312,340			11,016,551
Options expired		—			(37,998	)		(1,018,056	)		(153	)		(79,478	)		(2,019,049	)
Options exercised		(164	)		(39,900	)		(1,396,897	)		—			(3,500	)		(134,575	)
Options closed		(88	)		(164,142	)		(7,109,696	)		(304	)		(237,862	)		(9,780,252	)
Outstanding options, end of year		—			75,700		$	4,043,175			—			117,300		$	4,587,195
HYV
Outstanding options, beginning of year		—			—			—			—			—			—
Options written		—			13,250		$	94,750			—			4,750		$	71,250
Outstanding options, end of year		—			13,250		$	94,750			—			4,750		$	71,250
HYT
Outstanding options, beginning of year		—			—			—			—			—			—
Options written		—			13,950		$	99,750			—			5,000		$	75,000
Outstanding options, end of year		—			13,950		$	99,750			—			5,000		$	75,000
BHY
Outstanding options, beginning of year		—			—			—			—			—			—
Options written		—			1,500		$	10,800			—			550		$	8,250
Outstanding options, end of year		—			1,500		$	10,800			—			550		$	8,250
BNA
Outstanding options, beginning of year		—			74,200		$	3,488,657			—			77,500		$	3,653,658
Options written		252			194,110			7,805,309			460			263,510			9,597,936
Options expired		—			(24,377	)		(594,215	)		(153	)		(47,967	)		(1,407,957	)
Options exercised		(164	)		(38,100	)		(1,323,887	)		—			—			—
Options closed		(88	)		(126,433	)		(5,515,717	)		(307	)		(177,043	)		(7,464,624	)
Outstanding options, end of year		—			79,400		$	3,860,147			—			116,000		$	4,379,013
BKT
Outstanding options, beginning of year		—			40,800		$	1,740,902			—			40,800		$	1,740,907
Options written		78			31,000			1,361,155			78			31,000			1,377,041
Options expired		—			(4,900	)		(221,725	)		—			(17,800	)		(839,725	)
Options exercised		—			(17,800	)		(839,719	)		—			—			—
Options closed		(78	)		(31,000	)		(1,361,155	)		(78	)		(35,900	)		(1,598,766	)
Outstanding options, end of year		—			18,100		$	679,458			—			18,100		$	679,457
BHD
Outstanding options, beginning of year		—			8,235		$	77,409			—			8,235		$	83,174
Options written		—			3,325			23,825			—			1,200			18,000
Options expired		—			—			—			—			(8,235	)		(83,174	)
Options closed		—			(8,235	)		(77,409	)		—			—			—
Outstanding options, end of year		—			3,325		$	23,825			—			1,200		$	18,000

106 ANNUAL REPORT AUGUST 31, 2010

Notes to Financial Statements (continued)

6. Commitments:

Certain Trusts may invest in floating rate loan interests. In connection with these investments, the Trusts may also enter into unfunded loan commitments (“commitments”). Commitments may obligate the Trusts to furnish temporary financing to a borrower until permanent financing can be arranged. In connection with these commitments, the Trusts earn a commitment fee, typically set as a percentage of the commitment amount. Such fee income, which is classified in the Statements of Operations as facility and other fees, is recognized ratably over the commitment period. As of August 31, 2010, the Trusts had the following unfunded loan commitments:

Borrower	Unfunded Commitment		Value of Underlying Loan
HYV
Delphi International Holdings	$	1,277,361	$	1,207,338
HYT
Delphi International Holdings	$	656,788	$	620,665
HIS
Delphi International Holdings	$	36,829	$	34,803
BHY
Delphi International Holdings	$	72,738	$	68,737
BHD
Delphi International Holdings	$	161,435	$	152,556

7. Concentration, Market and Credit Risk:

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

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

8. Capital Share Transactions:

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

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

	Year Ended August 31, 2010	Year Ended August 31, 2009
BHK	—	4,253
HYT	7,573	—
BHY	—	8,666
BNA	—	6,677

Shares issued and outstanding remained constant during the years ended August 31, 2010 and August 31, 2009 for HYV, HIS, BKT and BHD.

At August 31, 2010, the shares owned by affiliates of the Manager of the Trusts were as follows:

	Shares
HYV	37,702
HYT	15,901

9. Borrowings:

On March 5, 2009, HYV, HVT, HIS and BHY entered into a senior committed secured, 364-day revolving line of credit and a separate security agreement (the “SSB Agreement”) with State Street Bank and Trust Company (“SSB”). The Trusts have granted a security interest in substantially all of their assets to SSB. The SSB Agreement allowed for the following maximum commitment amounts:

	Commitment Amounts
HYV	$	127,000,000
HYT	$	135,000,000
HIS	$	41,000,000
BHY	$	16,000,000

Advances are made by SSB to the Trusts, at the Trusts’ option of (a) the higher of (i) 1.0% above the Fed Effective Rate and (ii) 1.0% above the Overnight LIBOR or (b) 1.0% above 7-day, 30-day, 60-day or 90-day LIBOR. In addition, the Trusts pay a facility fee and a commitment fee based upon SSB’s total commitment to the Trusts. The fees associated with each of the agreements are included in the Statements of Operations as borrowing costs. Advances to the Trusts as of August 31, 2010 are shown in the Statements of Assets and Liabilities as loan payable. The SSB Agreement was renewed for 364 days under substantially the same terms effective March 4,

ANNUAL REPORT AUGUST 31, 2010 107

Notes to Financial Statements (continued)

2010. In addition, BHD entered into the SSB Agreement. The SSB Agreement allows for the following maximum commitment amounts:

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

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%.

BHK, BNA and BKT borrowed under the Term Asset-Backed Securities Loan Facility (“TALF”). The TALF program was launched by the U.S. Department of Treasury and the Federal Reserve Board as a credit facility designed to restore liquidity to the market for asset-backed securities. The Federal Reserve Bank of New York (“FRBNY”) will provide up to $1 trillion in non-recourse loans to support the issuance of certain AAA-rated asset-backed securities and commercial mortgage-backed securities (“Eligible Securities”). The Trusts posted as collateral already-held Eligible Securities, which were all commercial mortgage-backed securities, in return for non-recourse, 5-year term loans (“TALF loans”) in an amount equal to approximately 85% of the value of such Eligible Securities. The TALF loans are shown as TALF loans at value on the Statements of Assets and Liabilities. The following is a summary of the outstanding TALF loans and related information as of August 31, 2010:

	Number of Loans	Aggregate Amount of Loans		Maturity Dates	Interest Rates		Value of Eligible Securities
BHK	1	$	11,763,225	8/28/14		3.87%	$	14,389,848
BNA	1	$	11,763,225	8/28/14		3.87%	$	14,389,848
BKT	1	$	11,739,534	8/28/14		3.87%	$	14,437,543

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

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

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

For the year ended August 31, 2010 the daily weighted average interest rates for trusts with reverse repurchase agreements, treasury roll transactions and TALF loans were as follows:

	Daily Weighted Average Interest Rate
BHK	0.51%
BNA	0.54%
BKT	2.16%

For the year ended August 31, 2010 the daily weighted average interest rates for Trusts with loans under the revolving credit agreements were as follows:

	Daily Weighted Average Interest Rate
HYV	1.25%
HYT	1.25%
HIS	1.25%
BHY	1.24%
BHD	1.05%

108 ANNUAL REPORT AUGUST 31, 2010

Notes to Financial Statements (concluded)

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:

On September 7, 2010, BHK and BNA repaid their outstanding TALF loans and the securities posted as collateral were returned to the Trusts. The Trusts funded the repayment of the TALF loans by entering into reverse repurchase agreements.

Each Trust paid a net investment income dividend on September 30, 2010 to shareholders of record on September 15, 2010 as follows:

	Common Dividend Per Share
BHK	$0.0670
HYV	$0.0825
HYT	$0.0825
HIS	$0.0142
BHY	$0.0435
BNA	$0.0510
BKT	$0.0240
BHD	$0.0795

ANNUAL REPORT AUGUST 31, 2010 109

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Trustees/Directors of:
BlackRock Core Bond Trust
BlackRock Corporate High Yield Fund V, Inc.
BlackRock Corporate High Yield Fund VI, Inc.
BlackRock High Income Shares
BlackRock High Yield Trust
BlackRock Income Opportunity Trust, Inc.
BlackRock Income Trust, Inc.
BlackRock Strategic Bond Trust (Collectively the “Trusts”):

We have audited the accompanying statements of assets and liabilities of BlackRock Core Bond Trust, BlackRock Corporate High Yield Fund V, Inc., BlackRock Corporate High Yield Fund VI, Inc., BlackRock High Income Shares, BlackRock High Yield Trust, and BlackRock Income Opportunity Trust, Inc., including the schedules of investments, as of August 31, 2010, and the related statements of operations and cash flows for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented. We have also audited the accompanying statements of assets and liabilities of BlackRock Income Trust, Inc., and BlackRock Strategic Bond Trust, including the schedules of investments, as of August 31, 2010, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented. These financial statements and financial highlights are the responsibility of the Trusts’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Trusts are not required to have, nor were we engaged to perform an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trusts’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures include confirmation of the securities owned as of August 31, 2010, by correspondence with the custodian, brokers and agent banks; where replies were not received from brokers or agent banks, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of BlackRock Core Bond Trust, BlackRock Corporate High Yield Fund V, Inc., BlackRock Corporate High Yield Fund VI, Inc., BlackRock High Income Shares, BlackRock High Yield Trust, and BlackRock Income Opportunity Trust, Inc., the results of their operations and cash flows for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. Additionally, in our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of BlackRock Income Trust, Inc., and BlackRock Strategic Bond Trust, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America.

Deloitte & Touche LLP
Princeton, New Jersey
October 29, 2010

Important Tax Information (Unaudited)
The following information is provided with respect to the monthly distributions paid by the Trusts for the taxable year ended August 31, 2010.
	BHK			HYV			HYT			HIS			BHY			BNA			BKT			BHD
Federal Obligation Interest1		7.70	%		—			—			—			—			6.47	%		8.34	%		—
Interest-Related Dividends for Non-U.S. Residents:2
September 2009 – January 2010		53.96	%		86.39	%		79.72	%		76.61	%		92.81	%		50.09	%		100.00	%		88.99	%
February 2010 – July 2010		88.59	%		70.90	%		75.12	%		84.24	%		69.39	%		80.08	%		41.90	%		86.53	%
August 2010		88.59	%		70.90	%		75.12	%		84.24	%		69.39	%		80.08	%		—			86.53	%
Long-Term Capital Gain Distributed:3
July 2010		—			—			—			—			—			—			0.001205			—
August 2010		—			—			—			—			—			—			0.024000			—

1	The law varies in each state as to whether and what percentage of dividend income attributable to federal obligations is exempt from state income tax. We recommend that you consult your tax advisor to determine if any portion of the dividends you received is exempt from state income taxes.
2	Represents the portion of the taxable ordinary income dividends eligible for exemption from U.S. withholding tax for nonresident aliens and foreign corporations.
3	Represents the per share amount of the monthly dividend paid attributed to long-term capital gains.

110 ANNUAL REPORT AUGUST 31, 2010

Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements

The Board of Directors and the Board of Trustees, as the case may be (each, a “Board,” and, collectively, the “Boards,” and the members of which are referred to as “Board Members”) of each of 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,” and together with BHK, HYV, HYT, HIS, BHY, BNA and BKT, each, a “Trust,” and, collectively, the “Trusts”) met on April 8, 2010 and May 13 – 14, 2010 to consider the approval of each Trust’s investment advisory agreement (each, an “Advisory Agreement”) with BlackRock Advisors, LLC (the “Manager”), each Trust’s investment advisor. Each Board also considered the approval of the sub-advisory agreement (each, a “Sub-Advisory Agreement”) between the Manager and BlackRock Financial Management, Inc. (the “Sub-Advisor”), with respect to its Trust. The Manager and the Sub-Advisor are referred to herein as “BlackRock.” The Advisory Agreements and the Sub-Advisory Agreements are referred to herein as the “Agreements.”

Activities and Composition of the Board

The Board of each Trust consists of ten individuals, eight of whom are not “interested persons” of such Trust as defined in the Investment Company Act of 1940 (the “1940 Act”) (the “Independent Board Members”). The Board Members are responsible for the oversight of the operations of each Trust and perform the various duties imposed on the directors of investment companies by the 1940 Act. The Independent Board Members have retained independent legal counsel to assist them in connection with their duties. The Chairman of the Boards is an Independent Board Member. The Boards have established five standing committees: an Audit Committee, a Governance and Nominating Committee, a Compliance Committee, a Performance Oversight Committee and an Executive Committee, each of which is composed of Independent Board Members (except for the Executive Committee, which also has one interested Board Member) and is chaired by an Independent Board Member. The Boards also has one ad hoc committee, the Joint Product Pricing Committee, which consists of Independent Board Members and the directors/trustees of the boards of certain other BlackRock-managed funds, who are not “interested persons” of their respective funds.

The Agreements

Pursuant to the 1940 Act, the Boards are required to consider the continuation of the Agreements on an annual basis. In connection with this process, the Boards assessed, among other things, the nature, scope and quality of the services provided to the Trusts by the personnel of BlackRock and its affiliates, including investment management, administrative and shareholder services, oversight of fund accounting and custody, marketing services and assistance in meeting applicable legal and regulatory requirements.

From time to time throughout the year, each Board, acting directly and through its committees, considered at each of its meetings factors that are relevant to its annual consideration of the renewal of the Agreements, including the services and support provided by BlackRock to the respective Trust and its shareholders. Among the matters the Board considered were: (a) investment performance for one-, three- and five-year periods, as applicable, against peer funds, and applicable benchmarks, if any, as well as senior management’s and portfolio managers’ analysis of the reasons for any over performance or underperformance against a Trust’s peers and/or benchmark, as applicable; (b) fees, including advisory fees, administration fees with respect to BHY, BNA and BKT and other amounts paid to BlackRock and its affiliates by each Trust for services such as call center and fund accounting; (c) each Trust’s operating expenses; (d) the resources devoted to and compliance reports relating to each Trust’s investment objective, policies and restrictions; (e) each Trust’s compliance with its Code of Ethics and compliance policies and procedures; (f) the nature, cost and character of non-investment management services provided by BlackRock and its affiliates; (g) BlackRock’s and other service providers’ internal controls; (h) BlackRock’s implementation of the proxy voting policies approved by the Boards; (i) execution quality of portfolio transactions; (j) BlackRock’s implementation of each Trust’s valuation and liquidity procedures; (k) an analysis of contractual and actual management fees for products with similar investment objectives across the open-end fund, closed-end fund and institutional account product channels, as applicable; and (l) periodic updates on BlackRock’s business.

Board Considerations in Approving the Agreements

The Approval Process: Prior to the April 8, 2010 meeting, the Boards requested and received materials specifically relating to the Agreements. The Boards are engaged in a process with BlackRock to periodically review the nature and scope of the information provided to better assist their deliberations. The materials provided in connection with the April meeting included: (a) information independently compiled and prepared by Lipper, Inc. (“Lipper”) on Trust fees and expenses, and the investment performance of each Trust as compared with a peer group of funds as determined by Lipper (collectively, “Peers”); (b) information on the profitability of the Agreements to BlackRock and a discussion of fall-out benefits to BlackRock and its affiliates and significant shareholders; (c) a general analysis provided by BlackRock concerning investment advisory fees charged to other clients, such as institutional clients and open-end funds, under similar investment mandates; (d) the impact of economies of scale; (e) a summary of aggregate amounts paid by each Trust to BlackRock; and (f) if applicable, a comparison of management fees to similar BlackRock closed-end funds, as classified by Lipper.

At an in-person meeting held on April 8, 2010, the Boards reviewed materials relating to their consideration of the Agreements. As a result of the discussions that occurred during the April 8, 2010 meeting, the Boards presented BlackRock with questions and requests for additional information and BlackRock responded to these requests with additional written information in advance of the May 13 – 14, 2010 Board meeting.

At an in-person meeting held on May 13 – 14, 2010, each Trust’s Board, including the Independent Board Members, unanimously approved the continuation of the Advisory Agreement between the Manager and each respective Trust and the Sub-Advisory Agreement between the Manager and the Sub-Advisor with respect to each Trust, each for a one-year term ending June 30, 2011. In approving the continuation of the Agreements, the Boards considered: (a) the nature, extent and quality of the services provided by BlackRock; (b) the investment performance of each Trust and BlackRock; (c) the advisory fee and the cost of the services and profits to be realized

ANNUAL REPORT AUGUST 31, 2010 111

Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (continued)

by BlackRock and its affiliates from their relationship with each Trust; (d) economies of scale; and (e) other factors deemed relevant by the Board Members.

The Boards also considered other matters they deemed important to the approval process, such as services related to the valuation and pricing of each Trust’s portfolio holdings, direct and indirect benefits to BlackRock and its affiliates and significant shareholders from their relationship with each Trust and advice from independent legal counsel with respect to the review process and materials submitted for the Boards’ review. The Boards noted the willingness of BlackRock personnel to engage in open, candid discussions with the Boards. The Boards did not identify any particular information as controlling, and each Board Member may have attributed different weights to the various items considered.

A. Nature, Extent and Quality of the Services Provided by BlackRock: The Boards, including the Independent Board Members, reviewed the nature, extent and quality of services provided by BlackRock, including the investment advisory services and the resulting performance of each Trust. Throughout the year, the Boards compared each Trust’s performance to the performance of a comparable group of closed-end funds, and the performance of a relevant benchmark, if any. The Boards met with BlackRock’s senior management personnel responsible for investment operations, including the senior investment officers. The Boards also reviewed the materials provided by each Trust’s portfolio management team discussing each Trust’s performance and each Trust’s investment objective, strategies and outlook.

The Boards considered, among other factors, the number, education and experience of BlackRock’s investment personnel generally and each Trust’s portfolio management team, investments by portfolio managers in the funds they manage, BlackRock’s portfolio trading capabilities, BlackRock’s use of technology, BlackRock’s commitment to compliance, BlackRock’s credit analysis capabilities, BlackRock’s risk analysis capabilities and BlackRock’s approach to training and retaining portfolio managers and other research, advisory and management personnel. The Boards also reviewed a general description of BlackRock’s compensation structure with respect to each Trust’s portfolio management team and BlackRock’s ability to attract and retain high-quality talent.

In addition to advisory services, the Boards considered the quality of the administrative and non-investment advisory services provided to each Trust. BlackRock and its affiliates and significant shareholders provide each Trust with certain administrative and other services (in addition to any such services provided to each Trust by third parties) and officers and other personnel as are necessary for the operations of each Trust. In addition to investment advisory services, BlackRock and its affiliates provide each Trust with other services, including: (i) preparing disclosure documents, such as the prospectus and the statement of additional information in connection with the initial public offering and periodic shareholder reports; (ii) preparing communications with analysts to support secondary market trading of each Trust; (iii) assisting with daily accounting and pricing; (iv) preparing periodic filings with regulators and stock exchanges; (v) overseeing and coordinating the activities of other service providers; (vi) organizing Board meetings and preparing the materials for such Board meetings; (vii) providing legal and compliance support; and (viii) performing other administrative functions necessary for the operation of each Trust, such as tax reporting, fulfilling regulatory filing requirements, and call center services. The Boards reviewed the structure and duties of BlackRock’s fund administration, accounting, legal and compliance departments and considered BlackRock’s policies and procedures for assuring compliance with applicable laws and regulations.

B. The Investment Performance of the Trusts and BlackRock: The Boards, including the Independent Board Members, also reviewed and considered the performance history of each Trust. In preparation for the April 8, 2010 meeting, the Boards were provided with reports, independently prepared by Lipper, which included a comprehensive analysis of each Trust’s performance. The Boards also reviewed a narrative and statistical analysis of the Lipper data that was prepared by BlackRock, which analyzed various factors that affect Lipper’s rankings. In connection with their review, the Boards received and reviewed information regarding the investment performance of each Trust as compared to a representative group of similar funds as determined by Lipper and to all funds in each Trust’s applicable Lipper category. The Boards were provided with a description of the methodology used by Lipper to select peer funds. The Boards regularly review the performance of each Trust throughout the year.

The Board of BHK noted that BHK performed below the median of its Lipper Performance Universe in each of the one-, three- and five-year periods reported. The Board of BHK and BlackRock reviewed the reasons for BHK’s underperformance during these periods compared with its Peers. The Board of BHK was informed that, among other things, the single biggest factor which impacts performance relative to Peers is BNA’s benchmark and significant differences with other funds in the BBB-rated corporate debt funds category. While BHK holds an average credit quality of A–, many of the other funds in the category, which have outperformed BHK, carry a lower average credit quality and/or a higher allocation to spread assets, including mortgage-backed securities, investment grade corporates and high yield. This served as a detractor to performance due to the general outperformance of spread sectors and lower quality risk assets compared to U.S. Treasuries and government-related assets during 2009.

The Board of BNA noted that BNA performed below the median of its Lipper Performance Universe in each of the one-, three- and five-year periods reported. The Board of BNA and BlackRock reviewed the reasons for BNA’s underperformance during these periods compared with its Peers. The Board of BNA was informed that, among other things, the single biggest factor which impacts performance relative to Peers is BNA’s benchmark and its differences with other funds in the BBB-rated corporate debt funds category. Many of the other funds in the category, which have outperformed BNA, carry a lower average credit quality and/or a higher allocation to spread assets including, mortgage-backed securities, investment grade corporates and high yield. This served as a detractor to performance due to the general outperformance of spread sectors and lower quality risk assets compared to U.S. Treasuries and government-related assets during 2009.

The Boards of BHK and BNA and BlackRock discussed BlackRock’s strategy for improving each respective Trust’s performance and BlackRock’s commitment to providing the resources necessary to assist each Trust’s portfolio managers and to improve each Trust’s performance.

112 ANNUAL REPORT AUGUST 31, 2010

Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (continued)

The Boards of HYV, HIS and BHY noted that, in general, HYV, HIS and BHY performed better than their respective Peers in that the performance of each of HYV, HIS and BHY were at or above the median of their Lipper Performance Universe in each of the one-, three- and five-year periods reported.

The Boards of HYT, BKT and BHD noted that, in general, HYT, BKT and BHD performed better than their respective Peers in that the performance of each of HYT, BKT and BHD was at or above the median of their Lipper Performance Universe in two of the one-, three- and five-year periods reported.

The Boards noted that BlackRock has made changes to the organization of the overall fixed income group management structure designed to result in a strengthened leadership team with clearer accountability.

C. Consideration of the Advisory Fees and the Cost of the Services and Profits to be Realized by BlackRock and its Affiliates from their Relationship with the Trusts: The Boards, including the Independent Board Members, reviewed each Trust’s contractual advisory fee rate compared with the other funds in its Lipper category. The Boards also compared each Trust’s total expenses, as well as actual management fees, to those of other funds in its Lipper category. The Boards considered the services provided and the fees charged by BlackRock to other types of clients with similar investment mandates, including separately managed institutional accounts.

The Boards received and reviewed statements relating to BlackRock’s financial condition and profitability with respect to the services it provided each Trust. The Boards were also provided with a profitability analysis that detailed the revenues earned and the expenses incurred by BlackRock for services provided to each Trust. The Boards reviewed BlackRock’s profitability with respect to each Trust and other funds the Boards currently oversee for the year ended December 31, 2009 compared to available aggregate profitability data provided for the year ended December 31, 2008. The Boards reviewed BlackRock’s profitability with respect to other fund complexes managed by the Manager and/or its affiliates. The Boards reviewed BlackRock’s assumptions and methodology of allocating expenses in the profitability analysis, noting the inherent limitations in allocating costs among various advisory products. The Boards recognized that profitability may be affected by numerous factors including, among other things, fee waivers and expense reimbursements by the Manager, the types of funds managed, expense allocations and business mix, and the difficulty of comparing profitability as a result of those factors.

The Boards noted that, in general, individual fund or product line profitability of other advisors is not publicly available. Nevertheless, to the extent such information was available, the Boards considered BlackRock’s overall operating margin, in general, compared to the operating margin for leading investment management firms whose operations include advising closed-end funds, among other product types. That data indicates that operating margins for BlackRock with respect to its registered funds are generally consistent with margins earned by similarly situated publicly traded competitors. In addition, the Boards considered, among other things, certain third party data comparing BlackRock’s operating margin with that of other publicly traded asset management firms. That third party data indicates that larger asset bases do not, in themselves, translate to higher profit margins.

In addition, the Boards considered the cost of the services provided to each Trust by BlackRock, and BlackRock’s and its affiliates’ profits relating to the management and distribution of each Trust and the other funds advised by BlackRock and its affiliates. As part of their analysis, the Boards reviewed BlackRock’s methodology in allocating its costs to the management of each Trust. The Boards also considered whether BlackRock has the financial resources necessary to attract and retain high-quality investment management personnel to perform its obligations under the Agreements and to continue to provide the high quality of services that is expected by the Boards.

The Boards of BHK, HYV, HYT, BKT and BHD noted that their respective Trusts’ contractual management fee rate were lower than or equal to the median contractual management fee rates paid by the Trusts’ respective Peers, in each case, before taking into account any expense reimbursements or fee waivers.

The Board of HIS noted that HIS’s contractual management fee rate was lower than or equal to the median contractual management fee rate paid by HIS’s Peers, in each case, before taking into account any expense reimbursements or fee waivers. The Board of HIS also noted that HIS has an advisory fee arrangement that includes breakpoints that adjust the fee rate downward as the size of HIS increases above certain contractually specified levels.

The Board of BHY noted that BHY’s contractual management fee rate was above the median contractual management fee rate paid by BHY’s Peers, in each case, before taking into account any expense reimbursements or fee waivers. The Board of BHY also noted, however, that BHY’s actual total expenses, including investment-related expenses (e.g., interest expense related to BHY’s use of leverage) and taxes, were lower than the median actual total expenses, including investment-related expenses and taxes, of its Peers.

The Board of BNA noted that BNA’s contractual management fee rate was above the median contractual management fee rate paid by BNA’s Peers, in each case, before taking into account any expense reimbursements or fee waivers. The Board of BNA also noted, however, that BNA’s actual management fee rate, after giving effect to any expense reimbursements or fee waivers by BlackRock, was lower than or equal to the median actual management fee rate paid by BNA’s Peers, after giving effect to any expense reimbursements or fee waivers.

D. Economies of Scale: The Boards, including the Independent Board Members, considered the extent to which economies of scale might be realized as the assets of each Trust increase. The Boards also considered the extent to which each Trust benefits from such economies and whether there should be changes in the advisory fee rate or structure in order to enable each Trust to participate in these economies of scale, for example through the use of breakpoints, and in the case of HIS, revised breakpoints, in the advisory fee based upon the asset level of each Trust.

ANNUAL REPORT AUGUST 31, 2010 113

Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (concluded)

The Boards noted that most closed-end fund complexes do not have fund level breakpoints because closed-end funds generally do not experience substantial growth after the initial public offering and each fund is managed independently consistent with its own investment objectives. The Boards noted that only one closed-end fund in the Fund Complex, HIS, has breakpoints in its fee structure. Information provided by Lipper also revealed that only one closed-end fund complex with total closed-end fund nets assets exceeding $10 billion, as of December 31, 2009, used a complex level breakpoint structure.

E. Other Factors Deemed Relevant by the Board Members: The Boards, including the Independent Board Members, also took into account other ancillary or “fall-out” benefits that BlackRock or its affiliates and significant shareholders may derive from their respective relationships with the Trusts, both tangible and intangible, such as BlackRock’s ability to leverage its investment professionals who manage other portfolios, an increase in BlackRock’s profile in the investment advisory community, and the engagement of BlackRock’s affiliates and significant shareholders as service providers to each Trust, including for administrative and distribution services. The Boards also considered BlackRock’s overall operations and its efforts to expand the scale of, and improve the quality of, its operations. The Boards also noted that BlackRock may use and benefit from third party research obtained by soft dollars generated by certain mutual fund transactions to assist in managing all or a number of its other client accounts. The Boards further noted that BlackRock completed the acquisition of a complex of exchange-traded funds (“ETFs”) on December 1, 2009, and that BlackRock’s funds may invest in such ETFs without any offset against the management fees payable by the funds to BlackRock.

In connection with its consideration of the Agreements, the Boards also received information regarding BlackRock’s brokerage and soft dollar practices. The Boards received reports from BlackRock which included information on brokerage commissions and trade execution practices throughout the year.

The Boards noted the competitive nature of the closed-end fund marketplace, and that shareholders are able to sell their respective Trust shares in the secondary market if they believe that the Trust’s fees and expenses are too high or if they are dissatisfied with the performance of the Trust.

Conclusion

The Boards, including the Independent Board Members, unanimously approved the continuation of the Advisory Agreement between the Manager and each Trust for a one-year term ending June 30, 2011 and the Sub-Advisory Agreement between the Manager and the Sub-Advisor, with respect to each Trust, for a one-year term ending June 30, 2011. As part of its approval, each Board considered the discussions of BlackRock’s fee structure, as it applies to its respective Trust, being conducted by the ad hoc Joint Product Pricing Committee. Based upon its evaluation of all of the aforementioned factors in their totality, the Boards, including the Independent Board Members, were satisfied that the terms of the Agreements were fair and reasonable and in the best interest of each Trust and its shareholders. In arriving at a decision to approve the Agreements, the Boards did not identify any single factor or group of factors as all-important or controlling, but considered all factors together, and different Board Members may have attributed different weights to the various factors considered. The Independent Board Members were also assisted by the advice of independent legal counsel in making this determination. The contractual fee arrangements for each Trust reflect the results of several years of review by the Board Members and predecessor Board Members, and discussions between such Board Members (and predecessor Board Members) and BlackRock. Certain aspects of the arrangements may be the subject of more attention in some years than in others, and the Board Members’ conclusions may be based in part on their consideration of these arrangements in prior years.

114 ANNUAL REPORT AUGUST 31, 2010

Automatic Dividend Reinvestment Plans

Pursuant to each Trust’s Dividend Reinvestment Plan (the “Plan”), common shareholders are automatically enrolled to have all distributions of dividends and capital gains reinvested by Computershare Trust Company, N.A. (the “Plan Agent”) in the respective Trust’s shares pursuant to the Plan. Shareholders who do not participate in the Plan will receive all distributions in cash paid by check and mailed directly to the shareholders of record (or if the shares are held in street or other nominee name, then to the nominee) by the Plan Agent, which serves as agent for the shareholders in administering the Plan.

After the Trusts declare a dividend or determine to make a capital gain distribution, the Plan Agent will acquire shares for the participants’ accounts, depending upon the following circumstances, either (i) through receipt of unissued but authorized shares from the Trust (“newly issued shares”) or (ii) by purchase of outstanding shares on the open market or on the Trust’s primary exchange (“open-market purchases”). If, on the dividend payment date, the net asset value per share (“NAV”) is equal to or less than the market price per share plus estimated brokerage commissions (such condition often referred to as a “market premium”), the Plan Agent will invest the dividend amount in newly issued shares on behalf of the participants. The number of newly issued shares to be credited to each participant’s account will be determined by dividing the dollar amount of the dividend by the NAV on the date the shares are issued. However, if the NAV is less than 95% of the market price on the payment date, the dollar amount of the dividend will be divided by 95% of the market price on the payment date. If, on the dividend payment date, the NAV is greater than the market value per share plus estimated brokerage commissions (such condition often referred to as a “market discount”), the Plan Agent will invest the dividend amount in shares acquired on behalf of the participants in open-market purchases. If the Plan Agents are unable to invest the full dividend amount in open market purchases, or if the market discount shifts to a market premium during the purchase period, the Plan Agents will invest any un-invested portion in newly issued shares.

Participation in the Plan is completely voluntary and may be terminated or resumed at any time without penalty by notice if received and processed by the Plan Administrator prior to the dividend record date; otherwise such termination or resumption will be effective with respect to any subsequently declared dividend or other distribution.

The Plan Agent’s fees for the handling of the reinvestment of dividends and distributions will be paid by each Trust. However, each participant will pay a pro rata share of brokerage commissions incurred with respect to the Plan Agent’s open market purchases in connection with the reinvestment of dividends and distributions. The automatic reinvestment of dividends and distributions will not relieve participants of any federal income tax that may be payable on such dividends or distributions.

Each Trust reserves the right to amend or terminate the Plan. There is no direct service charge to participants in the Plan; however, each Fund reserves the right to amend the Plan to include a service charge payable by the participants. Participants that request a sale of shares through Computer-share Trust Company, N.A. are subject to a $2.50 sales fee and a $0.15 per share sold brokerage commission. All correspondence concerning the Plan should be directed to the Plan Agent: Computershare Trust Company, N.A., P.O. Box 43078, Providence, RI 02940-3078, Telephone: (800) 699-1BFM or overnight correspondence should be directed to the Plan Agent at 250 Royall Street, Canton, MA 02021.

ANNUAL REPORT AUGUST 31, 2010 115

Officers and Trustees

Name, Address and Year of Birth	Position(s) Held with Trusts	Length of Time Served as a Trustee2	Principal Occupation(s) During Past Five Years	Number of BlackRock- Advised Registered Investment Companies (“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen	Public Directorships
Non-Interested Trustees1
Richard E. Cavanagh 55 East 52nd Street New York, NY 10055 1946	Chairman of the Board and Trustee	Since 1994	Trustee, Aircraft Finance Trust from 1999 to 2009; Director, The Guardian Life Insurance Company of America since 1998; Trustee, Educational Testing Service from 1997 to 2009 and Chairman from 2005 to 2009; Senior Advisor, The Fremont Group since 2008 and Director thereof since 1996; Adjunct Lecturer, Harvard University since 2007; President and Chief Executive Officer of The Conference Board, Inc. (global business research organization) from 1995 to 2007.	100 RICs consisting of 98 Portfolios	Arch Chemical (chemical and allied products)
Karen P. Robards 55 East 52nd Street New York, NY 10055 1950	Vice Chair of the Board, Chair of the Audit Committee and Trustee	Since 2007	Partner of Robards & Company, LLC (financial advisory firm) since 1987; Co-founder and Director of the Cooke Center for Learning and Development (a not-for-profit organization) since 1987; Director of Care Investment Trust, Inc. (health care real estate investment trust) from 2007 to 2010; Director of Enable Medical Corp. from 1996 to 2005; Investment Banker at Morgan Stanley from 1976 to 1987.	100 RICs consisting of 98 Portfolios	AtriCure, Inc. (medical devices)
Frank J. Fabozzi 55 East 52nd Street New York, NY 10055 1948	Trustee and Member of the Audit Committee	Since 1988	Consultant/Editor of The Journal of Portfolio Management since 2006; Professor in the Practice of Finance and Becton Fellow, Yale University, School of Management since 2006; Adjunct Professor of Finance and Becton Fellow, Yale University from 1994 to 2006.	100 RICs consisting of 98 Portfolios	None
Kathleen F. Feldstein 55 East 52nd Street New York, NY 10055 1941	Trustee	Since 2005	President of Economics Studies, Inc. (private economic consulting firm) since 1987; Chair, Board of Trustees, McLean Hospital from 2000 to 2008 and Trustee Emeritus thereof since 2008; Member of the Board of Partners Community Healthcare, Inc. from 2005 to 2009; Member of the Corporation of Partners HealthCare since 1995; Trustee, Museum of Fine Arts, Boston since 1992; Member of the Visiting Committee to the Harvard University Art Museum since 2003; Director, Catholic Charities of Boston since 2009.	100 RICs consisting of 98 Portfolios	The McClatchy Company (publishing)
James T. Flynn 55 East 52nd Street New York, NY 10055 1939	Trustee and Member of the Audit Committee	Since 2007	Chief Financial Officer of JPMorgan & Co., Inc. from 1990 to 1995.	100 RICs consisting of 98 Portfolios	None
Jerrold B. Harris 55 East 52nd Street New York, NY 10055 1942	Trustee	Since 2007	Trustee, Ursinus College since 2000; Director, Troemner LLC (scientific equipment) since 2000; Director of Delta Waterfowl Foundation since 2001; President and Chief Executive Officer, VWR Scientific Products Corporation from 1990 to 1999.	100 RICs consisting of 98 Portfolios	BlackRock Kelso Capital Corp. (business development company)

116 ANNUAL REPORT AUGUST 31, 2010

Officers and Trustees (continued)

Name, Address and Year of Birth	Position(s) Held with Trusts		Length of Time Served as a Trustee2	Principal Occupation(s) During Past Five Years	Number of BlackRock- Advised Registered Investment Companies (“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen	Public Directorships
Non-Interested Trustees1 (concluded)
R. Glenn Hubbard 55 East 52nd Street New York, NY 10055 1958	Trustee		Since 2004	Dean, Columbia Business School since 2004; Columbia faculty member since 1988; Co-Director, Columbia Business School’s Entrepreneurship Program from 1997 to 2004; Chairman, U.S. Council of Economic Advisers under the President of the United States from 2001 to 2003; Chairman, Economic Policy Committee of the OECD from 2001 to 2003.	100 RICs consisting of 98 Portfolios	ADP (data and information services); KKR Financial Corporation (finance); Metropolitan Life Insurance Company (insurance)
W. Carl Kester 55 East 52nd Street New York, NY 10055 1951	Trustee and Member of the Audit Committee		Since 2007	George Fisher Baker Jr. Professor of Business Administration, Harvard Business School; Deputy Dean for Academic Affairs from 2006 to 2010; Unit Head, Finance, Harvard Business School from 2005 to 2006; Senior Associate Dean and Chairman of the MBA Program of Harvard Business School from 1999 to 2005; Member of the faculty of Harvard Business School since 1981; Independent Consultant since 1978.	100 RICs consisting of 98 Portfolios	None
	1	Trustees serve until their resignation, removal or death, or until December 31 of the year in which they turn 72.
	2	Date shown is the earliest date a person has served for any of the Trusts covered by this annual report. Following the combination of Merrill Lynch Investment Managers, L.P. (“MLIM”) and BlackRock, Inc. (“BlackRock”) in September 2006, the various legacy MLIM and legacy BlackRock Fund boards were realigned and consolidated into three new Fund boards in 2007. As a result, although the chart shows certain trustees as joining the Fund’s board in 2007, each director first became a member of the board of directors of other legacy MLIM or legacy BlackRock Funds as follows: Richard E. Cavanagh, 1994; Frank J. Fabozzi, 1988; Kathleen F. Feldstein, 2005; James T. Flynn, 1996; Jerrold B. Harris, 1999; R. Glenn Hubbard, 2004; W. Carl Kester, 1995 and Karen P. Robards, 1998.

Interested Trustees3
Richard S. Davis 55 East 52nd Street New York, NY 10055 1945	Trustee		Since 2007	Managing Director, BlackRock, Inc. since 2005; Chief Executive Officer, State Street Research & Management Company from 2000 to 2005; Chairman of the Board of Trustees, State Street Research Mutual Funds from 2000 to 2005.	170 RICs consisting of 291 Portfolios	None
Henry Gabbay 55 East 52nd Street New York, NY 10055 1947	Trustee		Since 2007	Consultant, BlackRock, Inc. from 2007 to 2008; Managing Director, BlackRock, Inc. from 1989 to 2007; Chief Administrative Officer, BlackRock Advisors, LLC from 1998 to 2007; President of BlackRock Funds and BlackRock Bond Allocation Target Shares from 2005 to 2007; Treasurer of certain closed-end funds in the BlackRock fund complex from 1989 to 2006.	170 RICs consisting of 291 Portfolios	None
	3	Mr. Davis is an “interested person,” as defined in the Investment Company Act of 1940, of the Trusts based on his position with BlackRock, Inc. and its affiliates. Mr. Gabbay is an “interested person” of the Trusts based on his former positions with BlackRock, Inc. and its affiliates as well as his ownership of BlackRock, Inc. and The PNC Financial Services Group, Inc. securities. Trustees serve until their resignation, removal or death, or until December 31 of the year in which they turn 72.

ANNUAL REPORT AUGUST 31, 2010 117

Officers and Trustees (concluded)

Name, Address and Year of Birth	Position(s) Held with Trusts		Length of Time Served	Principal Occupation(s) During Past Five Years
Trusts Officers1
Anne Ackerley 55 East 52nd Street New York, NY 10055 1962	President and Chief Executive Officer		Since 20092	Managing Director of BlackRock, Inc. since 2000; Vice President of the BlackRock-advised Funds from 2007 to 2009; Chief Operating Officer of BlackRock’s Global Client Group (GCG) since 2009; Chief Operating Officer of BlackRock’s US Retail Group from 2006 to 2009; Head of BlackRock’s Mutual Fund Group from 2000 to 2006.
Brendan Kyne 55 East 52nd Street New York, NY 10055 1977	Vice President		Since 2009	Managing Director of BlackRock, Inc. since 2010; Director of BlackRock, Inc. from 2008 to 2009; Head of Product Development and Management for BlackRock’s US Retail Group since 2009, co-head thereof from 2007 to 2009; Vice President of BlackRock, Inc. from 2005 to 2008.
Neal Andrews 55 East 52nd Street New York, NY 10055 1966	Chief Financial Officer		Since 2007	Managing Director of BlackRock, Inc. since 2006; Senior Vice President and Line of Business Head of Fund Accounting and Administration at PNC Global Investment Servicing (US) Inc. from 1992 to 2006.
Jay Fife 55 East 52nd Street New York, NY 10055 1970	Treasurer		Since 2007	Managing Director of BlackRock, Inc. since 2007 and Director in 2006; Assistant Treasurer of the Merrill Lynch Investment Managers, L.P. (“MLIM”) and Fund Asset Management, L.P.-advised funds from 2005 to 2006; Director of MLIM Fund Services Group from 2001 to 2006.
Brian Kindelan 55 East 52nd Street New York, NY 10055 1959	Chief Compliance Officer		Since 2007	Chief Compliance Officer of the BlackRock-advised funds since 2007; Managing Director and Senior Counsel of BlackRock, Inc. since 2005.
Howard Surloff 55 East 52nd Street New York, NY 10055 1965	Secretary		Since 2007	Managing Director and General Counsel of US Funds at BlackRock, Inc. since 2006; General Counsel (US) of Goldman Sachs Asset Management, L.P. from 1993 to 2006.
	1	Officers of the Trusts serve at the pleasure of the Board of Trustees.
	2	Ms. Ackerley has been President and Chief Executive Officer since 2009 and was Vice President from 2007 to 2009.

Investment Advisor

BlackRock Advisors, LLC

Wilmington, DE 19809

Sub-Advisor³

BlackRock Financial

Management, Inc.

New York, NY 10055

Custodian

State Street Bank and

Trust Company

Boston, MA 02111

Independent Registered

Public Accounting Firm

Deloitte & Touche LLP

Princeton, NJ 08540

Transfer Agent

Computershare Trust Company, N.A.

Providence, RI 02940

Legal Counsel

Skadden, Arps, Slate, Meagher & Flom LLP

New York, NY 10036

Accounting Agent

State Street Bank and Trust Company

Princeton, NJ 08540

Address of the Trusts

100 Bellevue Parkway

Wilmington, DE 19809

³ For BHK, HYV, HYT, HIS and BHD.

118 ANNUAL REPORT AUGUST 31, 2010

Additional Information

Trust Certification

Certain Trusts are listed for trading on the New York Stock Exchange (“NYSE”) and have filed with the NYSE their annual chief executive officer certification regarding compliance with the NYSE’s listing standards. The Trusts filed with the Securities and Exchange Commission (“SEC”) the certification of their chief executive officer and chief financial officer required by section 302 of the Sarbanes-Oxley Act.

Dividend Policy

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

ANNUAL REPORT AUGUST 31, 2010 119

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. Other than as disclosed below, there have been no changes in the persons who are primarily responsible for the day-to-day management of the Trusts’ portfolio.

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

Electronic Delivery

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

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

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

Householding

The Trusts will mail only one copy of shareholder documents, including annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call (800) 441-7762.

Availability of Quarterly Schedule of Investments

Each Trust files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Trusts’ Forms N-Q are available on the SEC’s website at http://www.sec.gov and may also be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330. Each Trust’s Forms N-Q may also be obtained upon request and without charge by calling (800) 441-7762.

Availability of Proxy Voting Policies and Procedures

A description of the policies and procedures that the Trusts use to determine how to vote proxies relating to portfolio securities is available (1) without charge, upon request, by calling (800) 441-7762; (2) at http://www.blackrock.com; and (3) on the SEC’s website at http://www.sec.gov.

Availability of Proxy Voting Record

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

120 ANNUAL REPORT AUGUST 31, 2010

Additional Information (continued)

Section 19(a) Notices

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

August 31, 2010
	Total Cumulative Distributions for the Fiscal Year-to-Date								% Breakdown of the Total Cumulative Distributions for the Fiscal Year-to-Date
	Net Investment Income		Net Realized Capital Gains		Return of Capital		Total Per Common Share		Net Investment Income		Net Realized Capital Gains		Return of Capital		Total Per Common Share
BHY	$	0.511865		—	$	0.010135	$	0.522000		98%		0%		2%		100%
BKT	$	0.288000		—		—	$	0.288000		100%		0%		0%		100%

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

ANNUAL REPORT AUGUST 31, 2010 121

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.

122 ANNUAL REPORT AUGUST 31, 2010

This report is transmitted to shareholders only. It is not a prospectus. Past performance results shown in this report should not be considered a representation of future performance. The 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-1-8-08/10

Item 2 –	Code of Ethics – The registrant (or the “Fund”) has adopted a code of ethics, as of the end of the period covered by this report, applicable to the registrant’s principal executive officer, principal financial officer and principal accounting officer, or persons performing similar functions. During the period covered by this report, there have been no amendments to or waivers granted under the code of ethics. A copy of the code of ethics is available without charge at www.blackrock.com.
Item 3 –	Audit Committee Financial Expert – The registrant’s board of directors or trustees, as applicable (the “board of directors”), has determined that (i) the registrant has the following audit committee financial experts serving on its audit committee and (ii) each audit committee financial expert is independent:
	Kent Dixon (retired effective December 31, 2009)
	Frank J. Fabozzi
	James T. Flynn
	W. Carl Kester
	Karen P. Robards
	The registrant’s board of directors has determined that W. Carl Kester and Karen P. Robards qualify as financial experts pursuant to Item 3(c)(4) of Form N-CSR.
	Prof. Kester has a thorough understanding of generally accepted accounting principles, financial statements and internal control over financial reporting as well as audit committee functions. Prof. Kester has been involved in providing valuation and other financial consulting services to corporate clients since 1978. Prof. Kester’s financial consulting services present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of issues that can reasonably be expected to be raised by the registrant’s financial statements.
	Ms. Robards has a thorough understanding of generally accepted accounting principles, financial statements and internal control over financial reporting as well as audit committee functions. Ms. Robards has been President of Robards & Company, a financial advisory firm, since 1987. Ms. Robards was formerly an investment banker for more than 10 years where she was responsible for evaluating and assessing the performance of companies based on their financial results. Ms. Robards has over 30 years of experience analyzing financial statements. She also is a member of the audit committee of one publicly held company and a non-profit organization.
	Under applicable securities laws, a person determined to be an audit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification. The designation or identification as an audit committee financial expert does not affect the duties, obligations, or liability of any other member of the audit committee or board of directors.

Item 4 – Principal Accountant Fees and Services

	(a) Audit Fees		(b) Audit-Related Fees1		(c) Tax Fees2		(d) All Other Fees3
Entity Name	Current Fiscal Year End	Previous Fiscal Year End	Current Fiscal Year End	Previous Fiscal Year End	Current Fiscal Year End	Previous Fiscal Year End	Current Fiscal Year End	Previous Fiscal Year End
BlackRock Income Opportunity Trust, Inc.	$58,300	$58,300	$0	$0	$6,100	$6,100	$0	$1,028

1 The nature of the services include assurance and related services reasonably related to the performance of the audit of financial statements not included in Audit Fees.

2 The nature of the services include tax compliance, tax advice and tax planning.

3 The nature of the services include a review of compliance procedures and attestation thereto.

(e)(1) Audit Committee Pre-Approval Policies and Procedures:

The registrant’s audit committee (the “Committee”) has adopted policies and procedures with regard to the pre-approval of services. Audit, audit-related and tax compliance services provided to the registrant on an annual basis require specific pre-approval by the Committee. The Committee also must approve other non-audit services provided to the registrant and those non-audit services provided to the registrant’s affiliated service providers that relate directly to the operations and the financial reporting of the registrant. Certain of these non-audit services that the Committee believes are a) consistent with the SEC’s auditor independence rules and b) routine and recurring services that will not impair the independence of the independent accountants may be approved by the Committee without consideration on a specific case-by-case basis (“general pre-approval”). The term of any general pre-approval is 12 months from the date of the pre-approval, unless the Committee provides for a different period. Tax or other non-audit services provided to the registrant which have a direct impact on the operation or financial reporting of the registrant will only be deemed pre-approved provided that any individual project does not exceed $10,000 attributable to the registrant or $50,000 per project. For this purpose, multiple projects will be aggregated to determine if they exceed the previously mentioned cost levels.

Any proposed services exceeding the pre-approved cost levels will require specific pre-approval by the Committee, as will any other services not subject to general pre-approval (e.g., unanticipated but permissible services). The Committee is informed of each service approved subject to general pre-approval at the next regularly scheduled in-person board meeting. At this meeting, an analysis of such services is presented to the Committee for ratification. The Committee may delegate to the Committee Chairman the authority to approve the provision of and fees for any specific engagement of permitted non-audit services, including services exceeding pre-approved cost levels.

(e)(2) None of the services described in each of Items 4(b) through (d) were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) Not Applicable

(g) Affiliates’ Aggregate Non-Audit Fees:

Entity Name	Current Fiscal Year End	Previous Fiscal Year End
BlackRock Income Opportunity Trust, Inc.	$16,877	$409,628

	(h) The registrant’s audit committee has considered and determined that the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any non-affiliated sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by the registrant’s investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.
	Regulation S-X Rule 2-01(c)(7)(ii) – $10,777, 0%
Item 5 –	Audit Committee of Listed Registrants –

(a)	The following individuals are members of the registrant’s separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(58)(A)):
	Kent Dixon (retired effective December 31, 2009)
	Frank J. Fabozzi
	James T. Flynn
	W. Carl Kester
	Karen P. Robards
(b)	Not Applicable

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 – The board of directors has delegated the voting of proxies for the Fund securities to the Fund’s investment adviser (“Investment Adviser”) pursuant to the Investment Adviser’s proxy voting guidelines. Under these guidelines, the Investment Adviser will vote proxies related to Fund securities in the best interests of the Fund and its stockholders. From time to time, a vote may present a conflict between the interests of the Fund’s stockholders, on the one hand, and those of the Investment Adviser, or any affiliated person of the Fund or the Investment Adviser, on the other. In such event, provided that the Investment Adviser’s Equity Investment Policy Oversight Committee, or a sub-committee thereof (the “Oversight Committee”) is aware of the real or potential conflict or material non-routine matter and if the Oversight Committee does not reasonably believe it is able to follow its general voting guidelines (or if the particular proxy matter is not addressed in the guidelines) and vote impartially, the Oversight Committee may retain an independent fiduciary to advise the Oversight Committee on how to vote or to cast votes on behalf of the Investment Adviser’s clients. If the Investment Adviser determines not to retain an independent fiduciary, or does not desire to follow the advice of such independent fiduciary, the Oversight Committee shall

determine how to vote the proxy after consulting with the Investment Adviser’s Portfolio Management Group and/or the Investment Adviser’s Legal and Compliance Department and concluding that the vote cast is in its client’s best interest notwithstanding the conflict. A copy of the Fund’s Proxy Voting Policy and Procedures are attached as Exhibit 99.PROXYPOL. Information on how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, (i) at www.blackrock.com and (ii) on the SEC’s website at http://www.sec.gov.

Item 8 –

Portfolio Managers of Closed-End Management Investment Companies – as of August 31, 2010.

(a)(1) The registrant (or “Fund”) is managed by a team of investment professionals comprised of Matthew Marra, Managing Director at BlackRock, Inc. and James E. Keenan, Managing Director at BlackRock, Inc. Messrs. Marra and Keenan are the Fund’s co-portfolio managers and are responsible for the day-to-day management of the Fund’s portfolio and the selection of its investments. Mr. Keenan has been a member of the Fund’s portfolio management team since 2007. Mr. Marra has been a member of the Fund’s portfolio management team since 2009.

Portfolio Manager	Biography
Matthew Marra	Deputy Head of Retail and Mutual Fund Products of BlackRock, Inc. since 2010; Managing Director of BlackRock, Inc. since 2006; Director of BlackRock, Inc. from 2002 to 2005.
James E. Keenan	Managing Director of BlackRock, Inc. since 2010; Director of Quantitative Active Management at Northern Trust Company from 2006 to 2010; Portfolio Manager of Smith Barney Midcap Strategies at Smith Barney/Legg Mason from 2005 to 2006; Head of Quantitative Equity Analysis – Director at Citigroup Asset Management from 1998 to 2005.

(a)(2) As of August 31, 2010:

	(ii) Number of Other Accounts Managed and Assets by Account Type			(iii) Number of Other Accounts and Assets for Which Advisory Fee is Performance-Based
(i) Name of Portfolio Manager	Other Registered Investment Companies	Other Pooled Investment Vehicles	Other Accounts	Other Registered Investment Companies	Other Pooled Investment Vehicles	Other Accounts
Matthew Marra	30	2	7	0	0	1
	$17.92 Billion	$463.6 Million	$2.06 Billion	$0	$0	$678.2 Million
James E. Keenan	23	21	49	0	11	6
	$3.14 Billion	$6.74 Billion	$6.04 Billion	$0	$3.91 Billion	$725.1 Million

(iv) Potential Material Conflicts of Interest

BlackRock, Inc., individually and together with its affiliates (“BlackRock”), has built a professional working environment, firm-wide compliance culture and compliance procedures and systems designed to protect against potential incentives that may favor one account over another. BlackRock has adopted policies and procedures that address the allocation of investment opportunities, execution of portfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to ensure that all client accounts are treated equitably over time.

Nevertheless, BlackRock furnishes investment management and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge funds or have performance or higher fees paid to BlackRock, or in which portfolio managers have a personal interest in the receipt of such fees), which may be the same as or different from those made to the Fund.  In addition, BlackRock, its affiliates and significant shareholders and any officer, director, stockholder or employee may or may not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund.  BlackRock, or any of its affiliates or significant shareholders, or any officer, director, stockholder, employee or any member of their families may take different actions than those recommended to the Fund by BlackRock with respect to the same securities.  Moreover, BlackRock may refrain from rendering any advice or services concerning securities of companies of which any of BlackRock’s (or its affiliates’ or significant shareholders’) officers, directors or employees are directors or officers, or companies as to which BlackRock or any of its affiliates or significant shareholders or the officers, directors and employees of any of them has any substantial economic interest or possesses material non-public information.  Each portfolio manager also may manage accounts whose investment strategies may at times be opposed to the strategy utilized for a fund.  In this connection, it should be noted that Messrs. Marra and Keenan currently manage certain accounts that are subject to performance fees.  In addition, Mr. Keenan assists in managing certain hedge funds and may be entitled to receive a portion of any incentive fees earned on such funds and a portion of such incentive fees may be voluntarily or involuntarily deferred.  Additional portfolio managers may in the future manage other such accounts or funds and may be entitled to receive incentive fees.

As a fiduciary, BlackRock owes a duty of loyalty to its clients and must treat each client fairly.  When BlackRock purchases or sells securities for more than one account, the trades must be allocated in a manner consistent with its fiduciary duties.  BlackRock attempts to allocate investments in a fair and equitable manner among client accounts, with no account receiving preferential treatment.  To this end, BlackRock has adopted a policy that is intended to ensure that investment opportunities are allocated fairly and equitably among client accounts over time.  This policy also seeks to achieve reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate investments in a manner that is consistent with the particular investment discipline and client base.

(a)(3) As of August 31, 2010:

Portfolio Manager Compensation Overview

BlackRock’s financial arrangements with its portfolio managers, its competitive compensation and its career path emphasis at all levels reflect the value senior management places on key resources. Compensation may include a variety of components and may vary from year to year based on a number of factors. The principal components of compensation include a base salary, a performance-based discretionary bonus, participation in various benefits programs and one or more of the incentive compensation programs established by BlackRock such as its Long-Term Retention and Incentive Plan and Restricted Stock Program.

Base compensation. Generally, portfolio managers receive base compensation based on their seniority and/or their position with the firm. Senior portfolio managers who perform additional management functions within the portfolio management group or within BlackRock may receive additional compensation for serving in these other capacities.

Discretionary Incentive Compensation

Discretionary incentive compensation is a function of several components: the performance of BlackRock, Inc., the performance of the portfolio manager’s group within BlackRock, the investment performance, including risk-adjusted returns, of the firm’s assets under management or supervision by that portfolio manager relative to predetermined benchmarks, and the individual’s seniority, role within the portfolio management team, teamwork and contribution to the overall performance of these portfolios and BlackRock.  In most cases, including for the portfolio managers of the Fund, these benchmarks are the same as the benchmark or benchmarks against which the performance of the Fund or other accounts managed by the portfolio managers are measured.  BlackRock’s Chief Investment Officers determine the benchmarks against which the performance of funds and other accounts managed by each portfolio manager is compared and the period of time over which performance is evaluated.  With respect to the portfolio managers, such benchmarks include the following:

Portfolio Manager	Applicable Benchmarks
James Keenan	A combination of market-based indices (e.g., The Barclays Capital U.S. Corporate High Yield 2% Issuer Capped™ Index), certain customized indices and certain fund industry peer groups.
Matthew Marra	A combination of market-based indices (e.g., Barclays Capital U.S. Aggregate Bond Index, Barclays Capital Universal Index, Barclays Capital Intermediate Government/Credit Index), certain customized indices and certain fund industry peer groups.

BlackRock’s Chief Investment Officers make a subjective determination with respect to the portfolio managers’ compensation based on the performance of the funds and other accounts managed by each portfolio manager relative to the various benchmarks noted above.  Performance is measured on both a pre-tax and after-tax basis over various time periods including 1, 3, 5 and 10-year periods, as applicable. 

Distribution of Discretionary Incentive Compensation

Discretionary incentive compensation is distributed to portfolio managers in a combination of cash and BlackRock, Inc. restricted stock units which vest ratably over a number of years. The BlackRock, Inc. restricted stock units, if properly vested, will be settled in BlackRock, Inc. common stock. Typically, the cash bonus, when combined with base salary, represents more than 60% of total compensation for the portfolio managers. Paying a portion of annual bonuses in stock puts compensation earned by a portfolio manager for a given year “at risk” based on BlackRock’s ability to sustain and improve its performance over future periods.

Long-Term Retention and Incentive Plan (“LTIP”) — From time to time long-term incentive equity awards are granted to certain key employees to aid in retention, align their interests with long-term shareholder interests and motivate performance.  Equity awards are generally granted in the form of BlackRock, Inc. restricted stock units that, once vested, settle in BlackRock, Inc. common stock. Messrs. Marra and Keenan have each received awards under the LTIP.

Deferred Compensation Program — A portion of the compensation paid to eligible BlackRock employees may be voluntarily deferred into an account that tracks the performance of certain of the firm’s investment products. Each participant in the deferred compensation program is permitted to allocate his deferred amounts among the various investment options. Messrs. Marra and Keenan have each participated in the deferred compensation program.

Other compensation benefits. In addition to base compensation and discretionary incentive compensation, portfolio managers may be eligible to receive or participate in one or more of the following:

Incentive Savings Plans — BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock employees are eligible to participate, including a 401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a company match equal to 50% of the first 6% of eligible pay contributed to the plan capped at $4,000 per year, and a company retirement contribution equal to 3-5% of eligible compensation.  The RSP offers a range of investment options, including registered investment companies managed by the firm. BlackRock contributions follow the investment direction set by participants for their own contributions or, absent employee investment direction, are invested into a balanced portfolio.  The ESPP allows for investment in BlackRock common stock at a 5% discount on the fair market value of the stock on the purchase date.  Annual participation in the ESPP is limited to the purchase of 1,000 shares or a dollar value of $25,000.  Each portfolio manager is eligible to participate in these plans.

(a)(4) Beneficial Ownership of Securities – As of August 31, 2010.

Portfolio Manager	Dollar Range of Equity Securities of the Fund Beneficially Owned
Matthew Marra	None
James E. Keenan	None

	(b) Not Applicable
Item 9 –	Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable due to no such purchases during the period covered by this report.
Item 10 –	Submission of Matters to a Vote of Security Holders – On September 17, 2010, the Board of Directors of the Fund amended and restated in its entirety the bylaws of the Fund (the “Amended and Restated Bylaws”). The Amended and Restated Bylaws were deemed effective as of September 17, 2010 and set forth, among other things, the processes and procedures that shareholders of the Fund must follow, and specifies additional information that shareholders of the Fund must provide, when proposing director nominations at any annual meeting or special meeting in lieu of an annual meeting or other business to be considered at an annual meeting or special meeting.
Item 11 –	Controls and Procedures
11(a) –	The registrant’s principal executive and principal financial officers or persons performing similar functions have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.
11(b) –	There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12 –	Exhibits attached hereto
12(a)(1) –	Code of Ethics – See Item 2
12(a)(2) –	Certifications – Attached hereto
12(a)(3) –	Not Applicable
12(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/ Anne F. Ackerley
	Anne F. Ackerley
	Chief Executive Officer of
	BlackRock Income Opportunity Trust, Inc.
Date: November 5, 2010
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By:	/s/ Anne F. Ackerley
	Anne F. Ackerley
	Chief Executive Officer (principal executive officer) of
	BlackRock Income Opportunity Trust, Inc.
Date: November 5, 2010
By:	/s/ Neal J. Andrews
	Neal J. Andrews
	Chief Financial Officer (principal financial officer) of
	BlackRock Income Opportunity Trust, Inc.
Date: November 5, 2010