BLACKROCK FLOATING RATE INCOME TRUST
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: 811-21566
Name of Fund: BlackRock Floating Rate Income Trust (BGT)
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Floating
Rate Income Trust, 55 East 52nd Street, New York, NY 10055
Registrant’s telephone number, including area code: (800) 882-0052, Option 4
Date of fiscal year end: 10/31/2016
Date of reporting period:
10/31/2016
Item 1 – Report to Stockholders
OCTOBER 31, 2016
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| ANNUAL
REPORT |
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BlackRock Credit Allocation Income
Trust (BTZ)
BlackRock Floating Rate Income Trust (BGT)
BlackRock Multi-Sector Income Trust (BIT)
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| Not FDIC Insured • May Lose Value • No Bank Guarantee |
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ANNUAL REPORT |
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OCTOBER 31, 2016 |
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Dear Shareholder,
Central bank policy decisions have
continued to provide support to financial markets, while changing economic outlooks and geopolitical risks have been major drivers of investor sentiment. After ending its near-zero interest rate policy at the end of 2015, the Federal Reserve (the
“Fed”) remained in focus as investors considered the anticipated pace of future rate hikes. With the European Central Bank and the Bank of Japan having moved into stimulus mode, the divergence in global monetary policies drove heightened
market volatility at the beginning of 2016 and caused the U.S. dollar to strengthen considerably.
Financial markets had a rough start to the year
as the strong dollar challenged U.S. companies that generate revenues overseas and pressured emerging market currencies and commodities prices. Low and volatile oil prices and signs of slowing growth in China were also meaningful factors behind the
decline in risk assets early in the year. However, as the first quarter wore on, these pressures abated and a more tempered outlook for U.S. rate hikes helped the markets rebound.
Volatility spiked in late June when the United Kingdom shocked investors with its vote to leave the European Union. Uncertainty around how the British exit might affect the global economy and political
landscape drove investors to high-quality assets, pushing already low global yields to even lower levels. However, risk assets recovered swiftly in July as economic data suggested that the consequences had thus far been contained to the United
Kingdom.
In a second episode of surprise vote results, equities fell sharply after the news of Donald Trump’s victory in the U.S.
presidential election, but quickly recovered, and the yield curve steepened due to expectations for rising inflation. Broadly, a reflation theme has been building amid signs of rising price pressures, central banks signaling a greater tolerance to
let inflation run hotter, and policy emphasis shifting from monetary to fiscal stimulus.
At BlackRock, we believe investors need to think
globally, extend their scope across a broad array of asset classes and be prepared to adjust accordingly as market conditions change over time. We encourage you to talk with your financial advisor and visit blackrock.com for further insight
about investing in today’s markets.
Sincerely,
Rob Kapito
President, BlackRock Advisors, LLC
Rob Kapito
President,
BlackRock Advisors, LLC
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| Total Returns as of October 31, 2016 |
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6-month |
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12-month |
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| U.S. large cap equities
(S&P
500® Index) |
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4.06 |
% |
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4.51 |
% |
| U.S. small cap equities
(Russell
2000® Index) |
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6.13 |
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4.11 |
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| International equities
(MSCI Europe, Australasia,
Far East Index) |
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(0.16 |
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(3.23 |
) |
| Emerging market equities
(MSCI Emerging Markets Index) |
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9.41 |
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9.27 |
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| 3-month Treasury bills
(BofA Merrill Lynch 3-Month
U.S. Treasury Bill Index) |
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0.17 |
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0.31 |
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| U.S. Treasury securities
(BofA Merrill Lynch
10-Year U.S. Treasury
Index) |
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0.46 |
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4.24 |
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| U.S. investment grade bonds
(Bloomberg Barclays U.S.
Aggregate Bond Index) |
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1.51 |
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4.37 |
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| Tax-exempt municipal
bonds (S&P Municipal
Bond Index) |
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0.98 |
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4.53 |
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| U.S. high yield bonds
(Bloomberg Barclays U.S. Corporate High Yield 2% Issuer
Capped Index) |
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7.59 |
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10.16 |
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| Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest
directly in an index. |
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THIS PAGE NOT PART OF YOUR FUND REPORT |
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3 |
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| Trust Summary as of
October 31, 2016 |
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BlackRock Credit Allocation Income Trust |
BlackRock Credit Allocation Income Trust’s (BTZ) (the “Trust”) investment objective is to provide current income, current gains and capital
appreciation. The Trust seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets in credit-related securities, including, but not limited to, investment grade corporate bonds, high yield
bonds (commonly referred to as “junk” bonds), bank loans, preferred securities or convertible bonds or derivatives with economic characteristics similar to these credit-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.
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| Trust Information |
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| Symbol on New York Stock Exchange (“NYSE”) |
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BTZ |
| Initial Offering Date |
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December 27, 2006 |
| Current Distribution Rate on Closing Market Price as of October 31, 2016 ($12.87)1 |
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6.57% |
| Current Monthly Distribution per Common Share2 |
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$0.0705 |
| Current Annualized Distribution per Common Share2 |
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$0.8460 |
| Economic Leverage as of October 31,
20163 |
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29% |
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1 |
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Current distribution rate on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. The
current distribution rate consists of income, net realized gains and/or a return of capital. Past performance does not guarantee future results. |
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2 |
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The distribution rate is not constant and is subject to change. A portion of the distribution may be deemed a return of capital or net realized gain.
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3 |
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Represents reverse repurchase agreements as a percentage of total managed assets, which is the total assets of the Trust (including any assets
attributable to any 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 10.
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| Performance and Portfolio Management Commentary |
Returns for the 12 months ended October 31, 2016 were as follows:
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Returns Based On |
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Market Price |
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NAV |
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BTZ1,2 |
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10.43 |
% |
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9.61 |
% |
| Lipper Corporate BBB-Rated Debt Funds
(Leveraged)3 |
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9.82 |
% |
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7.16 |
% |
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1 |
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All returns reflect reinvestment of dividends and/or distributions. |
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2 |
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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. |
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Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.
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The following discussion relates to the Trust’s absolute performance based on NAV:
What factors influenced performance?
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The Trust’s allocations to high yield bonds and capital securities aided performance, as did its positions in the financials, midstream energy and
wireline industries. (Capital securities are dividend-paying securities that combine some features of both corporate bonds and preferred stocks, while generally providing higher yields to compensate for being less senior in the issuer’s capital
structure.) The largest detractors from absolute performance included the Trust’s duration positioning and its allocation to the metals and mining industry. |
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The Trust held derivatives in the form of futures, swaps, swaptions and options in order to manage duration and convexity risk. (Duration is a measure of
interest rate sensitivity; convexity measures how duration changes as interest rates change.) Derivatives were also used to aid in implementing the Trust’s yield curve positioning. The Trust used credit default swaps, including those linked to
broad indices or individual
secu- |
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rities, to manage credit risk. In addition, the Trust employed leverage to enhance yield. |
Describe recent portfolio activity.
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The Trust became increasingly defensive over the year, as the investment adviser looked to focus less on market risk and more on idiosyncratic
opportunities and bottom-up security selection. After maintaining an overweight position in financials relative to industrials for several years, the investment adviser reduced the Trust’s weighting in
financials. In addition, it significantly decreased exposure to the insurance, financial companies, and banking industries. The investment adviser also lowered the Trust’s overall allocation to industrials, mainly by taking down its allocations
to the basic industries, energy, communications, and consumer areas. The Trust increased its weighting in technology, as many large issuers in the sector issued new debt at attractive levels. |
Describe portfolio positioning at period end.
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From a sector perspective, the Trust maintained its exposure to financials, with a preference for U.S. banks and brokers. Although financials lagged the
rally in industrials, the investment adviser believed the capital and liquidity of U.S. banks remained strong. |
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The Trust’s largest position was in the cable & satellite sector, where the investment adviser saw strong fundamental trends and compelling
valuations. The Trust also held an allocation to pharmaceuticals based on their attractive valuations, rising earnings and improving balance sheets. Additionally, the Trust had a large exposure to the pipeline industry on the belief that companies
in this area had adequate cash to support both their balance sheets and credit ratings. However, the investment adviser recognized that industry fundamentals were somewhat challenging, and that pipeline issues remained sensitive volatility in oil
prices. The Trust maintained an allocation to high yield bonds at the close of 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.
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ANNUAL REPORT |
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OCTOBER 31, 2016 |
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BlackRock Credit Allocation Income Trust |
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| Market Price and Net Asset Value Per Share
Summary |
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10/31/16 |
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10/31/15 |
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Change |
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High |
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Low |
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| Market Price |
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$ |
12.87 |
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$ |
12.53 |
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2.71 |
% |
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$ |
13.70 |
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$ |
11.60 |
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| Net Asset Value |
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$ |
14.61 |
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$ |
14.33 |
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1.95 |
% |
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$ |
14.90 |
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$ |
13.23 |
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| Market Price and Net Asset Value History For the Past Five
Years |
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| Overview of the Trust’s Total
Investments |
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| Portfolio Composition |
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10/31/16 |
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10/31/15 |
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| Corporate Bonds |
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71 |
% |
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76 |
% |
| Preferred Securities |
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17 |
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19 |
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| Asset-Backed Securities |
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4 |
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4 |
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| U.S. Treasury Obligations |
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6 |
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— |
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| Municipal Bonds |
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1 |
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1 |
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| Foreign Agency Obligations |
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1 |
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— |
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| Other |
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—
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1
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—
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2
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1 |
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Includes a less than 1% holding in each of the following investment types: Short-Term Securities, U.S. Government Sponsored Agency Securities, Options
Purchased, Options Written and Common Stocks. |
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2 |
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Includes a less than 1% holding in each of the following investment types: Foreign Agency Obligations, Options Purchased, Options Written, U.S. Government
Sponsored Agency Securities and Short-Term Securities.
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| Credit Quality Allocation3,4 |
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10/31/16 |
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10/31/15 |
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AAA/Aaa5 |
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7 |
% |
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1 |
% |
| AA/Aa |
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3 |
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2 |
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| A |
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17 |
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19 |
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| BBB/Baa |
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47 |
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48 |
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| BB/Ba |
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16 |
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18 |
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| B |
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8 |
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9 |
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| CCC/Caa |
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1 |
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1 |
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| N/R |
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1 |
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2 |
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3 |
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For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either Standard & Poor’s
(“S&P”) or Moody’s Investors Service (“Moody’s”) if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are
credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit
quality ratings are subject to change. |
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4 |
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Excludes Short-Term Securities, Options Purchased and Options Written. |
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5 |
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The investment adviser evaluates the credit quality of not-rated investments based upon certain factors including, but not limited to, credit ratings for
similar investments and financial analysis of sectors, individual investments and/or issuer. Using this approach, the investment adviser has deemed U.S. Government Sponsored Agency Securities and U.S. Treasury Obligations as AAA/Aaa.
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|
ANNUAL REPORT |
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OCTOBER 31, 2016 |
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5 |
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| Trust Summary as of October 31, 2016 |
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BlackRock Floating Rate Income Trust |
BlackRock Floating Rate Income Trust’s (BGT) (the “Trust”) primary investment objective is to provide a high level of current income. The
Trust’s secondary investment objective is to seek the preservation of capital. The Trust seeks to achieve its investment objectives by investing primarily, under normal conditions, at least 80% of its assets in floating and variable rate
instruments of U.S. and non-U.S. issuers, including a substantial portion of its assets in global floating and variable rate securities including senior secured floating rate loans made to corporate and other
business entities. Under normal market conditions, the Trust expects that the average effective duration of its portfolio will be no more than 1.5 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.
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| Symbol on NYSE |
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BGT |
| Initial Offering Date |
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August 30, 2004 |
| Current Distribution Rate on Closing Market Price as of October 31, 2016 ($13.58)1 |
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5.15% |
| Current Monthly Distribution per Common Share2 |
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$0.0583 |
| Current Annualized Distribution per Common Share2 |
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$0.6996 |
| Economic Leverage as of October 31,
20163 |
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30% |
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1 |
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Current distribution rate on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. The
current distribution rate consists of income, net realized gains and/or a return of capital. Past performance does not guarantee future results. |
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2 |
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The distribution rate is not constant and is subject to change. A portion of the distribution may be deemed a return of capital or net realized gain.
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3 |
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Represents bank borrowings outstanding as a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable
to any 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 10.
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| Performance and Portfolio Management Commentary |
Returns for the 12 months ended October 31, 2016 were as follows:
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Returns Based On |
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Market Price |
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NAV |
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BGT1,2 |
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12.25 |
% |
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7.27 |
% |
| Lipper Loan Participation Funds3 |
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15.20 |
% |
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8.16 |
% |
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1 |
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All returns reflect reinvestment of dividends and/or distributions. |
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2 |
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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. |
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Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.
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The following discussion relates to the Trust’s absolute performance based on NAV:
What factors influenced performance?
| • |
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Over the 12-month period, the broad floating rate bank loan market (i.e., bank loans) provided a positive return,
but gains were well below other credit markets, namely the high yield area. The Trust’s general outlook on bank loans and credit markets improved as volatility subsided and performance turned positive on an absolute basis. However, the
Trust’s exposure to integrated energy companies within the broader energy sector detracted from performance, despite gains more broadly across commodity-related sectors over the period. Small positions in convertible securities also negatively
affected results. |
| • |
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The Trust’s exposure to loans in the technology, health care, and consumer services sectors contributed positively to performance. Performance for
high yield bonds was positive and ahead of that for loans
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during the period, and the Trust’s tactical allocation to this asset class contributed to results. |
Describe recent portfolio activity.
| • |
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Throughout the 12-month period, the Trust maintained its focus on the higher quality segments of the loan market
in terms of loan structure, liquidity and overall credit quality. The Trust continued to concentrate its investments in strong companies with stable cash flows and high quality collateral, with the ability to meet interest obligations and ultimately
return principal. From a sector perspective, the Trust added to names in the technology and health care sectors, while trimming exposure to pharmaceuticals and lodging. The Trust selectively added to its high yield bond position.
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Describe portfolio positioning at period end.
| • |
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At period end, the Trust held 92% of its total portfolio in bank loans, with the remainder primarily in corporate bonds and CLOs. The Trust continued to
favor loans rated B where the investment adviser is comfortable with credit quality, in view of the incremental income they offered versus BB loans. Additionally, the Trust held a modest position in BB-rated
loans, while maintaining minimal exposure to loans rated CCC and below, especially avoiding the riskier segments among lower-rated loans within sectors such as energy, metals & mining, and media. Top issuer positions included Level 3
Financing, Inc. (Wirelines), Altice US Financing I Corp./Numericable Group SA (Cable & Satellite), and First Data Corp. (Technology). The strategy maintained a modest stake in more conservative high yield bonds.
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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.
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| 6 |
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ANNUAL REPORT |
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OCTOBER 31, 2016 |
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BlackRock Floating Rate Income Trust |
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| Market Price and Net Asset Value Per Share Summary |
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10/31/16 |
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10/31/15 |
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Change |
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High |
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|
Low |
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| Market Price |
|
$ |
13.58 |
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|
$ |
12.77 |
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|
6.34 |
% |
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$ |
13.82 |
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$ |
11.52 |
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| Net Asset Value |
|
$ |
14.41 |
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$ |
14.18 |
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|
1.62 |
% |
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$ |
14.41 |
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$ |
13.43 |
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| Market Price and Net Asset Value History For the Past Five
Years |
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| Overview of the Trust’s Total
Investments |
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| Portfolio Composition |
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10/31/16 |
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|
10/31/15 |
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| Floating Rate Loan Interests |
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|
92 |
% |
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|
93 |
% |
| Corporate Bonds |
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4 |
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3 |
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| Asset-Backed Securities |
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2 |
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4 |
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| Short-Term Securities |
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|
2 |
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|
— |
1
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| Other2
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— |
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—
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1 |
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Includes a less than 1% holding in Short-Term Securities. |
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2 |
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Includes a less than 1% holding in each of the following investment types:
Non-Agency Mortgage — Backed Securities, Other Interests, Investment Companies, Warrants, Common Stocks and Options Purchased.
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| Credit Quality Allocation3,4 |
|
10/31/16 |
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|
10/31/15 |
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| A |
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|
— |
5 |
|
|
1 |
% |
| BBB/Baa |
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|
8 |
% |
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|
8 |
|
| BB/Ba |
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|
43 |
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|
45 |
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| B |
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|
41 |
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|
39 |
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| CCC/Caa |
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3 |
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|
3 |
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| N/R |
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5 |
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4 |
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| |
3 |
|
For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P’s or Moody’s if
ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of
BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change. |
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4 |
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Excludes Short-Term Securities and Options Purchased.
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5 |
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Represents less than 1% of total investments.
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|
ANNUAL REPORT |
|
OCTOBER 31, 2016 |
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7 |
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| Trust Summary as of October 31, 2016 |
|
BlackRock Multi-Sector Income Trust |
BlackRock Multi-Sector Income Trust’s (BIT) (the “Trust”) primary investment objective is to seek high current income, with a secondary
objective of capital appreciation. The Trust seeks to achieve its investment objectives by investing, under normal market conditions, at least 80% of its assets in loan and debt instruments and other investments with similar economic
characteristics. 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.
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| Trust Information |
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|
| Symbol on NYSE |
|
BIT |
| Initial Offering Date |
|
February 27, 2013 |
| Current Distribution Rate on Closing Market Price as of October 31, 2016 ($16.76)1 |
|
8.36% |
| Current Monthly Distribution per Common Share2 |
|
$0.1167 |
| Current Annualized Distribution per Common Share2 |
|
$1.4004 |
| Economic Leverage as of October 31,
20163 |
|
37% |
| |
1 |
|
Current distribution rate on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. The
current distribution rate consists of income, net realized gains and/or a return of capital. Past performance does not guarantee future results. |
| |
2 |
|
The distribution rate is not constant and is subject to change. A portion of the distribution may be deemed a return of capital or net realized gain.
|
| |
3 |
|
Represents reverse repurchase agreements as a percentage of total managed assets, which is the total assets of the Trust (including any assets
attributable to any 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 10.
|
|
| Performance and Portfolio Management Commentary |
Returns for the 12 months ended October 31, 2016 were as follows:
|
|
|
|
|
|
|
|
|
| |
|
Returns Based On |
|
| |
|
Market Price |
|
|
NAV |
|
|
BIT1,2 |
|
|
13.56 |
% |
|
|
10.51 |
% |
| Lipper General Bond Funds3 |
|
|
13.49 |
% |
|
|
8.59 |
% |
| |
1 |
|
All returns reflect reinvestment of dividends and/or distributions. |
| |
2 |
|
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. |
| |
|
|
Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.
|
The following discussion relates to the Trust’s absolute performance based on NAV:
What factors influenced performance?
| • |
|
The Trust’s positions in high yield corporate bonds, mortgage-backed securities (“MBS”), asset-backed securities (“ABS”) and
investment grade bonds were the most significant contributors to performance. The Trust’s stance with respect to duration (sensitivity to interest rate movements) and yield curve positioning also added to returns. |
| • |
|
The Trust’s allocations in foreign commercial mortgage-backed securities (“CMBS”) and senior loans detracted from performance.
|
Describe recent portfolio activity.
| • |
|
During the period, the Trust’s spread duration (sensitivity to credit spreads) was increased as its spread sector exposure was rotated away from MBS,
capital securities and ABS, and toward investment grade credit. These changes were made as divergent central bank monetary policies, improving oil prices and investors’ desire for yield created a strong technical backdrop that supported
credit-based assets. In addition, the Trust’s allocation in longer-dated credit was increased in anticipation of demand from foreign investors shifting toward the back end of the credit curve as a result of the higher cost of hedging U.S.
dollar exposure. Additionally, the Trust’s high yield allocation was tilted toward U.S. issuers due to concerns regarding the potential negative consequences of the U.K.’s planned exit from the European Union. The Trust’s duration was
increased in the expectation of continued low interest rates over the near term, based on tepid U.S. economic data and dovish rhetoric from the Fed. Additionally, the Trust’s allocation to floating rate securities was reduced.
|
Describe portfolio positioning at period end.
| • |
|
The Trust maintained a diversified exposure to non-government spread sectors, including non-agency MBS, high yield corporates, capital securities, ABS, collateralized loan obligations, CMBS and senior loans. The Trust also held marginal exposure to government-related sectors such as supranationals
(multinational foreign government obligations) and foreign agencies. |
The views expressed
reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future
results.
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
| 8 |
|
ANNUAL REPORT |
|
OCTOBER 31, 2016 |
|
|
|
|
|
| |
|
BlackRock Multi-Sector Income Trust |
|
|
|
|
|
|
|
|
|
|
|
| Market Price and Net Asset Value Per Share Summary |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
10/31/16 |
|
|
10/31/15 |
|
|
Change |
|
|
High |
|
|
Low |
|
| Market Price |
|
$ |
16.76 |
|
|
$ |
16.31 |
|
|
|
2.76 |
% |
|
$ |
17.43 |
|
|
$ |
14.70 |
|
| Net Asset Value |
|
$ |
18.91 |
|
|
$ |
18.91 |
|
|
|
0.00 |
% |
|
$ |
19.05 |
|
|
$ |
17.16 |
|
|
|
|
| Market Price and Net Asset Value History Since
Inception |
| |
1 |
|
Commencement of operations. |
|
|
|
| Overview of the Trust’s Total
Investments |
|
|
|
|
|
|
|
|
|
| Portfolio Composition |
|
10/31/16 |
|
|
10/31/15 |
|
| Corporate Bonds |
|
|
41 |
% |
|
|
33 |
% |
| Asset-Backed Securities |
|
|
19 |
|
|
|
21 |
|
| Non-Agency Mortgage-Backed Securities |
|
|
18 |
|
|
|
25 |
|
| Preferred Securities |
|
|
12 |
|
|
|
13 |
|
| Floating Rate Loan Interests |
|
|
5 |
|
|
|
5 |
|
| Foreign Agency Obligations |
|
|
4 |
|
|
|
2 |
|
| Short-Term Securities |
|
|
1 |
|
|
|
1 |
|
| Other |
|
|
—
|
1
|
|
|
—
|
2
|
| |
1 |
|
Includes a less than 1% holding in each of the following investment types: Common Stocks, U.S. Treasury Obligations, Options Purchased and Options
Written. |
| |
2 |
|
Includes a less than 1% holding in each of the following investment types: Options Purchased and Options Written.
|
|
|
|
|
|
|
|
|
|
| Credit Quality Allocation3,4 |
|
10/31/16 |
|
|
10/31/15 |
|
|
AAA/Aaa5 |
|
|
— |
6 |
|
|
— |
|
| AA/Aa |
|
|
2 |
% |
|
|
— |
|
| A |
|
|
8 |
|
|
|
3 |
% |
| BBB/Baa |
|
|
18 |
|
|
|
17 |
|
| BB/Ba |
|
|
22 |
|
|
|
28 |
|
| B |
|
|
20 |
|
|
|
12 |
|
| CCC/Caa |
|
|
16 |
|
|
|
19 |
|
| CC/Ca |
|
|
5 |
|
|
|
5 |
|
| C |
|
|
1 |
|
|
|
— |
|
| N/R |
|
|
8 |
|
|
|
16 |
|
| |
3 |
|
For financial reporting purposes, credit quality ratings shown above reflect
the highest rating assigned by either S&P’s or Moody’s if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of
BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are
subject to change. |
| |
4 |
|
Excludes Short-Term Securities, Options Purchased and Options Written. |
| |
5 |
|
The investment adviser evaluates the credit quality of not-rated investments based upon certain factors including, but not limited to, credit ratings for
similar investments and financial analysis of sectors, individual investments and/or issuer. Using this approach, the investment adviser has deemed U.S. Government Sponsored Agency Securities and U.S. Treasury Obligations as AAA/Aaa.
|
| |
6 |
|
Represents less than 1% of total investments.
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
ANNUAL REPORT |
|
OCTOBER 31, 2016 |
|
9 |
|
|
|
|
|
| The Benefits and Risks of Leveraging |
|
|
The Trusts may utilize leverage to seek to enhance the distribution rate on, and net asset value
(“NAV”) of, their common shares (“Common Shares”). However, these objectives cannot be achieved in all interest rate environments.
In general, the concept of leveraging is based on the premise that the financing cost of leverage, which is based on short-term interest rates, is normally lower than the income earned by a Trust on its
longer-term portfolio investments purchased with the proceeds from leverage. To the extent that the total assets of the Trusts (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, the Trusts’
shareholders 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.
To illustrate these concepts, assume a Trust’s capitalization is $100 million and it utilizes leverage for an additional $30
million, creating a total value of $130 million available for investment in longer-term income securities. If prevailing short-term interest rates are 3% and longer-term interest rates are 6%, the yield curve has a strongly positive slope. In this
case, a Trust’s financing costs on the $30 million of proceeds obtained from leverage are based on the lower short-term interest rates. At the same time, the securities purchased by a Trust with the proceeds from leverage earn income based on
longer-term interest rates. In this case, a Trust’s financing cost of leverage is significantly lower than the income earned on a Trust’s longer-term investments acquired from such leverage proceeds, and therefore the holders of Common
Shares (“Common Shareholders”) are the beneficiaries of the incremental net income.
However, in order to benefit shareholders, the
return on assets purchased with leverage proceeds must exceed the ongoing costs associated with the leverage. If interest and other costs of leverage exceed the Trusts’ return on assets purchased with leverage proceeds, income to shareholders
is lower than if the Trusts had not used leverage. Furthermore, the value of the Trusts’ portfolio investments generally varies inversely with the direction of long-term interest rates, although other factors can influence the value of
portfolio investments. In contrast, the value of the Trusts’ obligations under their respective leverage arrangements generally does not fluctuate in relation to interest rates. As a result, changes in interest
rates can influence the Trusts’ NAVs positively or negatively. Changes in
the future direction of interest rates are very difficult to predict accurately, and there is no assurance that the Trusts’ intended leveraging strategy will be successful.
The use of leverage also generally causes greater changes in each Trust’s NAV, market price and dividend rates than comparable portfolios without
leverage. In a declining market, leverage is likely to cause a greater decline in the NAV and market price of a Trust’s shares than if the Trust were not leveraged. In addition, 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 the Trusts to incur losses. The use of leverage may
limit a Trust’s ability to invest in certain types of securities or use certain types of hedging strategies. Each Trust incurs expenses in connection with the use of leverage, all of which are borne by shareholders and may reduce income to the
shareholders. Moreover, to the extent the calculation of the Trusts’ investment advisory fees includes assets purchased with the proceeds of leverage, the investment advisory fees payable to the Trust’ investment adviser will be higher
than if the Trusts did not use leverage.
Each Trust may utilize leverage through a credit facility or reverse repurchase agreements as described
in the Notes to Financial Statements.
Under the Investment Company Act of 1940, as amended (the “1940 Act”), the
Trusts are permitted to issue debt up to
33 1/3% of their total managed assets. BIT is permitted to use economic leverage (which includes leverage attributable to reverse repurchase agreements) of up to 50% of its total managed assets. A Trust may
voluntarily elect to limit its leverage to less than the maximum amount permitted under the 1940 Act. In addition, a Trust may also be subject to certain asset coverage, leverage or portfolio composition requirements imposed by its credit facility,
which may be more stringent than those imposed by the 1940 Act.
If a Trust segregates or designates on its books and records cash or
liquid assets having values not less than the value of a Trust’s obligations under the reverse repurchase agreement (including accrued interest) then such transaction is not considered a senior security and is not subject to the foregoing
limitations and requirements under the 1940 Act.
|
|
|
| Derivative Financial Instruments |
|
|
The Trusts may invest in various derivative financial instruments. These instruments are used to obtain
exposure to a security, commodity, index, market and/or other asset without owning or taking physical custody of securities, commodities and/or other referenced assets or to manage market, equity, credit, interest rate, foreign currency exchange
rate, commodity and/or other risks. Derivative financial instruments may give rise to a form of economic leverage and involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset,
possible default of the counterparty to the
transaction or illiquidity of the instrument. The Trusts’ successful use of a derivative financial instrument depends on the investment adviser’s ability to predict pertinent market
movements accurately, which cannot be assured. The use of these instruments may result in losses greater than if they had not been used, may limit the amount of appreciation a Trust can realize on an investment and/or may result in lower
distributions paid to shareholders. The Trusts’ investments in these instruments, if any, are discussed in detail in the Notes to Financial Statements.
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
| 10 |
|
ANNUAL REPORT |
|
OCTOBER 31, 2016 |
|
|
|
|
|
| Schedule of Investments October 31, 2016 |
|
BlackRock Credit Allocation Income Trust (BTZ)
(Percentages shown are based on Net Assets) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common Stocks |
|
|
|
|
Shares |
|
|
Value |
|
| Oil, Gas & Consumable Fuels — 0.0% |
|
| Denbury Resources, Inc. |
|
|
|
|
|
|
12,160 |
|
|
$ |
29,014 |
|
| Real Estate Investment Trusts (REITs) — 0.0% |
|
| Ovation Acquisition I LLC, (Acquired 12/28/15, cost $45,445) (a) |
|
|
|
|
|
|
2,951 |
|
|
|
2,951 |
|
| Total Common Stocks — 0.0% |
|
|
|
|
|
|
|
|
|
|
31,965 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Asset-Backed Securities (b) |
|
Par
(000) |
|
|
|
|
| Asset-Backed Securities — 5.6% |
|
|
|
|
|
|
|
|
|
|
|
|
| ACAS CLO Ltd., Series 2014-1A, Class C, 3.78%, 7/18/26 (c) |
|
|
USD |
|
|
|
750 |
|
|
|
747,982 |
|
| ALM Loan Funding (c): |
|
|
|
|
|
|
|
|
|
|
|
|
| Series 2012-5A, Class BR, 3.88%, 10/18/27 |
|
|
|
|
|
|
1,000 |
|
|
|
1,005,989 |
|
| Series 2013-7R2A, Class B, 3.48%, 4/24/24 |
|
|
|
|
|
|
3,000 |
|
|
|
2,980,073 |
|
| ALM XII Ltd., Series 2015-12A, Class B, 4.13%, 4/16/27 (c) |
|
|
|
|
|
|
1,000 |
|
|
|
1,005,665 |
|
| ALM XIV Ltd., Series 2014-14A, Class C, 4.34%, 7/28/26 (c) |
|
|
|
|
|
|
4,500 |
|
|
|
4,390,475 |
|
| ALM XVII Ltd., Series 2015-17A, Class B1, 4.28%, 1/15/28 (c) |
|
|
|
|
|
|
1,400 |
|
|
|
1,437,172 |
|
| AMMC CLO Ltd., Series 2015-17A, Class C, 4.07%, 11/15/27 (c) |
|
|
|
|
|
|
1,000 |
|
|
|
993,918 |
|
| Anchorage Capital CLO 3, Ltd., Series 2014-3A, Class C, 4.39%, 4/28/26
(c) |
|
|
|
|
|
|
1,000 |
|
|
|
1,000,008 |
|
| Apidos CDO, Series 2012-9AR, Class CR, 3.78%, 7/15/23 (c) |
|
|
|
|
|
|
1,000 |
|
|
|
1,000,077 |
|
| Apidos CLO XVIII, Series 2014-18A, Class C, 4.53%, 7/22/26 (c) |
|
|
|
|
|
|
1,300 |
|
|
|
1,282,128 |
|
| Ares CLO Ltd., Series 2012-2A, Class CR, 3.57%, 10/12/23 (c) |
|
|
|
|
|
|
1,000 |
|
|
|
997,810 |
|
| Atlas Senior Loan Fund II, Ltd., Series 2012-2A, Class DR, 4.73%, 1/30/24
(c) |
|
|
|
|
|
|
750 |
|
|
|
746,869 |
|
| Atlas Senior Loan Fund Ltd. (c): |
|
|
|
|
|
|
|
|
|
|
|
|
| Series 2012-1A, Class B1LR, 4.66%, 8/15/24 |
|
|
|
|
|
|
2,000 |
|
|
|
2,000,089 |
|
| Series 2014-6A, Class D, 4.58%, 10/15/26 |
|
|
|
|
|
|
3,000 |
|
|
|
2,900,705 |
|
| Atrium CDO Corp. (c): |
|
|
|
|
|
|
|
|
|
|
|
|
| Series 5A, Class A4, 1.20%, 7/20/20 |
|
|
|
|
|
|
9,000 |
|
|
|
8,960,273 |
|
| Series 9A, Class D, 4.33%, 2/28/24 |
|
|
|
|
|
|
1,000 |
|
|
|
982,552 |
|
| Benefit Street Partners CLO IV Ltd., Series 2014-IVA, Class B, 3.68%, 7/20/26
(c) |
|
|
|
|
|
|
1,250 |
|
|
|
1,250,000 |
|
| Benefit Street Partners CLO VI Ltd., Series 2015-VIA, Class B, 3.93%, 4/18/27
(c) |
|
|
|
|
|
|
1,000 |
|
|
|
1,002,500 |
|
| Bowman Park CLO Ltd., Series 2014-1A, Class D2, 4.77%, 11/23/25 (c) |
|
|
|
|
|
|
1,000 |
|
|
|
960,909 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Asset-Backed Securities (b) |
|
Par
(000) |
|
|
Value |
|
| Asset-Backed Securities (continued) |
|
|
|
|
|
|
|
|
|
|
|
|
| Carlyle Global Market Strategies CLO Ltd. (c): |
|
|
|
|
|
|
|
|
|
|
|
|
| Series 2012-2A, Class C1R, 3.78%, 7/20/23 |
|
|
USD |
|
|
|
1,000 |
|
|
$ |
1,003,167 |
|
| Series 2013-3A, Class C, 4.28%, 7/15/25 |
|
|
|
|
|
|
1,000 |
|
|
|
970,438 |
|
| Series 2014-5A, Class C, 5.03%, 10/16/25 |
|
|
|
|
|
|
1,000 |
|
|
|
1,000,273 |
|
| Series 2015-1A, Class C, 4.03%, 4/20/27 |
|
|
|
|
|
|
500 |
|
|
|
504,273 |
|
| Series 2016-1A, Class C, 5.78%, 4/20/27 |
|
|
|
|
|
|
1,000 |
|
|
|
1,006,500 |
|
| Series 2016-3A, Class C, 4.79%, 10/20/29 |
|
|
|
|
|
|
1,000 |
|
|
|
999,940 |
|
| CIFC Funding Ltd., Series 2014-3A (c): |
|
|
|
|
|
|
|
|
|
|
|
|
| Class C1, 3.68%, 7/22/26 |
|
|
|
|
|
|
1,500 |
|
|
|
1,498,818 |
|
| Class D, 4.28%, 7/22/26 |
|
|
|
|
|
|
1,071 |
|
|
|
1,015,494 |
|
| Dryden 34 Senior Loan Fund, Series 2014-34A, Class C, 3.68%, 10/15/26
(c) |
|
|
|
|
|
|
250 |
|
|
|
249,994 |
|
| GoldenTree Loan Opportunities IX Ltd., Series 2014-9A, Class D, 4.25%,
10/29/26 |
|
|
|
|
|
|
1,000 |
|
|
|
977,471 |
|
| Highbridge Loan Management Ltd. (c): |
|
|
|
|
|
|
|
|
|
|
|
|
| Series 4A-2014, Class B, 3.89%, 7/28/25 |
|
|
|
|
|
|
750 |
|
|
|
750,185 |
|
| Series 6A-2015, Class C, 3.85%, 5/05/27 |
|
|
|
|
|
|
1,500 |
|
|
|
1,497,199 |
|
| Series 8A-2016, Class D, 5.73%, 4/20/27 |
|
|
|
|
|
|
500 |
|
|
|
481,975 |
|
| ING IM CLO Ltd., Series 2013-2A, Class C, 4.38%, 4/25/25 (c) |
|
|
|
|
|
|
1,000 |
|
|
|
975,745 |
|
| LCM XVIII LP, Series 18A, Class C1, 4.03%, 4/20/27 (c) |
|
|
|
|
|
|
1,000 |
|
|
|
1,000,207 |
|
| Limerock CLO III LLC, Series 2014-3A, Class C, 4.48%, 10/20/26 (c) |
|
|
|
|
|
|
1,000 |
|
|
|
946,268 |
|
| Madison Park Funding IX Ltd., Series 2012-9AR, Class C1R, 3.67%, 8/15/22
(c) |
|
|
|
|
|
|
2,000 |
|
|
|
2,000,793 |
|
| Madison Park Funding Ltd. (c): |
|
|
|
|
|
|
|
|
|
|
|
|
| Series 2012-8AR, Class CR, 3.68%, 4/22/22 |
|
|
|
|
|
|
1,350 |
|
|
|
1,350,881 |
|
| Series 2012-8AR, Class DR, 4.73%, 4/22/22 |
|
|
|
|
|
|
1,500 |
|
|
|
1,499,230 |
|
| Series 2014-14A, Class D, 4.48%, 7/20/26 |
|
|
|
|
|
|
2,000 |
|
|
|
1,964,752 |
|
| Madison Park Funding XIII Ltd., Series 2014-13A, Class C, 3.63%, 1/19/25
(c) |
|
|
|
|
|
|
1,000 |
|
|
|
1,002,460 |
|
| Madison Park Funding XIV, Ltd., Series 2014-14A, Class C1, 3.98%, 7/20/26 (c) |
|
|
|
|
|
|
1,250 |
|
|
|
1,250,250 |
|
| Madison Park Funding XV Ltd., Series 2014-15A, Class B1, 4.14%, 1/27/26
(c) |
|
|
|
|
|
|
2,400 |
|
|
|
2,401,947 |
|
| Madison Park Funding XVI Ltd., Series 2015-16A, Class B, 3.88%, 4/20/26
(c) |
|
|
|
|
|
|
1,000 |
|
|
|
1,002,800 |
|
| Mill Creek II CLO, Ltd., Series 2016-1A, Class D, 5.73%, 4/20/28
(c) |
|
|
|
|
|
|
1,000 |
|
|
|
1,007,600 |
|
| Oak Hill Credit Partners XII Ltd., Series 2015-12A, Class C2, 4.13%, 1/23/27
(c) |
|
|
|
|
|
|
1,600 |
|
|
|
1,602,400 |
|
| Octagon Investment Partners 26 Ltd., Series 2016-1A, Class D, 5.83%, 4/15/27
(c) |
|
|
|
|
|
|
500 |
|
|
|
500,677 |
|
| Octagon Investment Partners XX Ltd., Series 2014-1A, Class C, 3.62%, 8/12/26
(c) |
|
|
|
|
|
|
750 |
|
|
|
748,350 |
|
| Octagon Loan Funding Ltd., Series 2014-1A, Class D, 4.45%, 11/18/26 (c) |
|
|
|
|
|
|
1,500 |
|
|
|
1,444,507 |
|
|
|
|
|
|
|
|
|
|
|
|
| ABS |
|
Asset-Backed Security |
|
COP |
|
Certificates of Participation |
|
NOK |
|
Norwegian Krone |
| ADS |
|
American Depositary Shares |
|
EUR |
|
Euro |
|
NZD |
|
New Zealand Dollar |
| ARB |
|
Airport Revenue Bonds |
|
FKA |
|
Formerly Known As |
|
OTC |
|
Over-the-Counter |
| ARS |
|
Argentine Peso |
|
GBP |
|
British Pound |
|
PIK |
|
Payment-In-Kind |
| AUD |
|
Australian Dollar |
|
INR |
|
Indian Rupee |
|
RB |
|
Revenue Bonds |
| BRL |
|
Brazilian Real |
|
JPY |
|
Japanese Yen |
|
REMIC |
|
Real Estate Mortgage Investment Conduit |
| BZDIOVER |
|
1-Day Brazil Interbank Deposit |
|
KRW |
|
South Korean Won |
|
RUB |
|
Russian Ruble |
| CAD |
|
Canadian Dollar |
|
KRWCD |
|
3-Month Certificate of Deposit Rate |
|
SEK |
|
Swedish Krona |
| CHF |
|
Swiss Franc |
|
LOC |
|
Letter of Credit |
|
TRY |
|
Turkish Lira |
| CLO |
|
Collateralized Loan Obligation |
|
MXIBTIIE |
|
Mexico Interbank TIIE 28 Day |
|
TWD |
|
Taiwan Dollar |
| CLP |
|
Chilean Peso |
|
MXN |
|
Mexican Peso |
|
USD |
|
U.S. Dollar |
| CNH |
|
Yuan Renminbi Offshore |
|
MYR |
|
Malaysian Ringgit |
|
ZAR |
|
South African Rand |
| CNY |
|
Chinese Renminbi |
|
|
|
|
|
|
|
|
See Notes to Financial Statements.
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
ANNUAL REPORT |
|
OCTOBER 31, 2016 |
|
11 |
|
|
|
| Schedule of Investments (continued) |
|
BlackRock Credit Allocation Income Trust (BTZ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Asset-Backed Securities (b) |
|
Par
(000) |
|
|
Value |
|
| Asset-Backed Securities (continued) |
|
|
|
|
|
|
|
|
|
|
|
|
| OZLM VI Ltd., Series 2014-6A, Class B, 3.78%, 4/17/26 (c) |
|
|
USD |
|
|
|
1,100 |
|
|
$
|
1,105,806 |
|
| OZLM VII Ltd., Series 2014-7A, Class C, 4.48%, 7/17/26 (c) |
|
|
|
|
|
|
1,500 |
|
|
|
1,440,821 |
|
| OZLM XI Ltd., Series 2015-11A, Class B, 3.76%, 1/30/27 (c) |
|
|
|
|
|
|
2,750 |
|
|
|
2,750,031 |
|
| Regatta IV Funding Ltd., Series 2014-1A, Class C, 3.83%, 7/25/26 (c) |
|
|
|
|
|
|
1,500 |
|
|
|
1,500,095 |
|
| Regatta V Funding Ltd., Series 2014-1A (c): |
|
|
|
|
|
|
|
|
|
|
|
|
| Class B, 3.88%, 10/25/26 |
|
|
|
|
|
|
1,000 |
|
|
|
1,000,096 |
|
| Class C, 4.33%, 10/25/26 |
|
|
|
|
|
|
1,000 |
|
|
|
919,963 |
|
| SLM Private Credit Student Loan Trust, Series 2004-B, Class A2, 1.05%,
6/15/21 |
|
|
|
|
|
|
522 |
|
|
|
521,154 |
|
| Symphony CLO Ltd., Series 2016-17A, Class D, 5.76%, 4/15/28 (c) |
|
|
|
|
|
|
1,000 |
|
|
|
1,012,000 |
|
| Symphony CLO XV Ltd., Series 2014-15A (c): |
|
|
|
|
|
|
|
|
|
|
|
|
| Class C, 4.08%, 10/17/26 |
|
|
|
|
|
|
2,500 |
|
|
|
2,499,978 |
|
| Class D, 4.63%, 10/17/26 |
|
|
|
|
|
|
1,000 |
|
|
|
991,460 |
|
| Venture XIII CLO Ltd., Series 2013-13A, Class D, 4.40%, 6/10/25
(c) |
|
|
|
|
|
|
800 |
|
|
|
785,015 |
|
| Vibrant CLO II, Ltd., Series 2013-2A, Class C, 4.48%, 7/24/24 (c) |
|
|
|
|
|
|
1,000 |
|
|
|
979,017 |
|
| Voya CLO Ltd., Series 2014-4A, Class C, 4.88%, 10/14/26 (c) |
|
|
|
|
|
|
1,000 |
|
|
|
983,373 |
|
| Webster Park CLO Ltd., Series 2015-1A,
Class B1, 3.98%, 1/20/27 (c) |
|
|
|
|
|
|
4,000 |
|
|
|
4,055,152 |
|
| Total Asset-Backed Securities — 5.6% |
|
|
|
|
|
|
|
|
|
|
88,843,749 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Corporate Bonds |
|
|
|
|
|
|
|
|
|
| Aerospace & Defense — 0.6% |
|
|
|
|
|
|
|
|
|
|
|
|
| Huntington Ingalls Industries, Inc., 5.00%, 12/15/21 (c) |
|
|
|
|
|
|
536 |
|
|
|
561,460 |
|
| KLX, Inc., 5.88%, 12/01/22 (c) |
|
|
|
|
|
|
725 |
|
|
|
737,832 |
|
| Mexico City Airport Trust, 4.25%, 10/31/26 (c) |
|
|
|
|
|
|
1,350 |
|
|
|
1,375,650 |
|
| TransDigm, Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 6.00%, 7/15/22 |
|
|
|
|
|
|
4,360 |
|
|
|
4,545,300 |
|
| 6.50%, 7/15/24 |
|
|
|
|
|
|
1,560 |
|
|
|
1,641,900 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
8,862,142 |
|
| Air Freight & Logistics — 0.1% |
|
|
|
|
|
|
|
|
|
|
|
|
| XPO Logistics, Inc. (c): |
|
|
|
|
|
|
|
|
|
|
|
|
| 6.50%, 6/15/22 |
|
|
|
|
|
|
1,421 |
|
|
|
1,477,840 |
|
| 6.13%, 9/01/23 |
|
|
|
|
|
|
496 |
|
|
|
510,260 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
1,988,100 |
|
| Airlines — 1.0% |
|
|
|
|
|
|
|
|
|
|
|
|
| American Airlines Group, Inc., 4.63%, 3/01/20 (c) |
|
|
|
|
|
|
692 |
|
|
|
696,325 |
|
| Continental Airlines Pass-Through Trust: |
|
|
|
|
|
|
|
|
|
|
|
|
| Series 2009-2, Class B, 9.25%, 11/10/18 |
|
|
|
|
|
|
1,574 |
|
|
|
1,603,752 |
|
| Series 2012-3, Class C, 6.13%, 4/29/18 |
|
|
|
|
|
|
2,040 |
|
|
|
2,142,000 |
|
| Delta Air Lines Pass-Through Trust, Series 2002-1,
Class G-1, 6.72%, 7/02/24 |
|
|
|
|
|
|
3,042 |
|
|
|
3,498,774 |
|
| Turkish Airlines Pass Through Trust, Series 2015-1 Class A, 4.20%, 9/15/28
(c) |
|
|
|
|
|
|
2,807 |
|
|
|
2,687,573 |
|
| United Airlines Pass-Through Trust, Series 2014-1, Class B, 4.75%,
10/11/23 |
|
|
|
|
|
|
3,616 |
|
|
|
3,705,993 |
|
| Virgin Australia Trust, Series 2013-1, Class B, 6.00%, 4/23/22 (c) |
|
|
|
|
|
|
1,001 |
|
|
|
1,015,907 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
15,350,324 |
|
| Auto Components — 0.5% |
|
|
|
|
|
|
|
|
|
|
|
|
| Allison Transmission, Inc., 5.00%, 10/01/24 (c) |
|
|
|
|
|
|
734 |
|
|
|
748,680 |
|
| Goodyear Tire & Rubber Co., 5.00%, 5/31/26 |
|
|
|
|
|
|
535 |
|
|
|
539,681 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Corporate Bonds |
|
Par
(000) |
|
|
Value |
|
| Auto Components (continued) |
|
|
|
|
|
|
|
|
|
|
|
|
| Icahn Enterprises LP/Icahn Enterprises Finance Corp.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 4.88%, 3/15/19 |
|
|
USD |
|
|
|
3,950 |
|
|
$ |
3,932,225 |
|
| 6.00%, 8/01/20 |
|
|
|
|
|
|
3,108 |
|
|
|
3,053,610 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
8,274,196 |
|
| Automobiles — 0.5% |
|
|
|
|
|
|
|
|
|
|
|
|
| Ford Motor Co., 7.45%, 7/16/31 |
|
|
|
|
|
|
3,660 |
|
|
|
4,809,006 |
|
| General Motors Co.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 4.88%, 10/02/23 |
|
|
|
|
|
|
1,875 |
|
|
|
2,018,878 |
|
| 6.25%, 10/02/43 |
|
|
|
|
|
|
940 |
|
|
|
1,076,296 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
7,904,180 |
|
| Banks — 4.3% |
|
|
|
|
|
|
|
|
|
|
|
|
| CIT Group, Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 4.25%, 8/15/17 |
|
|
|
|
|
|
4,600 |
|
|
|
4,658,880 |
|
| 5.25%, 3/15/18 |
|
|
|
|
|
|
4,030 |
|
|
|
4,173,710 |
|
| 5.50%, 2/15/19 (c) |
|
|
|
|
|
|
3,967 |
|
|
|
4,175,267 |
|
| 5.00%, 8/01/23 |
|
|
|
|
|
|
660 |
|
|
|
702,966 |
|
| City National Corp., 5.25%, 9/15/20 (d) |
|
|
|
|
|
|
2,900 |
|
|
|
3,243,789 |
|
| Cooperatieve Rabobank UA, 3.95%, 11/09/22 (d) |
|
|
|
|
|
|
3,775 |
|
|
|
3,957,374 |
|
| Credit Suisse Group AG, 6.50%, 8/08/23 (c) |
|
|
|
|
|
|
6,000 |
|
|
|
6,532,500 |
|
| Discover Bank/Greenwood, 8.70%, 11/18/19 |
|
|
|
|
|
|
748 |
|
|
|
867,530 |
|
| Fifth Third Bancorp, 5.10% (b)(e) |
|
|
|
|
|
|
5,000 |
|
|
|
4,826,000 |
|
| HSBC Finance Corp., 6.68%, 1/15/21 (d) |
|
|
|
|
|
|
5,150 |
|
|
|
5,877,958 |
|
| Intesa Sanpaolo SpA, 5.71%, 1/15/26 (c) |
|
|
|
|
|
|
3,840 |
|
|
|
3,656,817 |
|
| Lloyds Banking Group PLC, 4.65%, 3/24/26 |
|
|
|
|
|
|
3,015 |
|
|
|
3,103,267 |
|
| Royal Bank of Scotland Group PLC, 6.00%, 12/19/23 |
|
|
|
|
|
|
10,080 |
|
|
|
10,404,929 |
|
| Wells Fargo & Co.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 3.45%, 2/13/23 |
|
|
|
|
|
|
2,325 |
|
|
|
2,386,482 |
|
| 4.13%, 8/15/23 (d) |
|
|
|
|
|
|
4,000 |
|
|
|
4,266,620 |
|
| 5.61%, 1/15/44 (d) |
|
|
|
|
|
|
4,119 |
|
|
|
4,829,956 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
67,664,045 |
|
| Beverages — 0.6% |
|
|
|
|
|
|
|
|
|
|
|
|
| Anheuser-Busch InBev Finance, Inc., 4.90%, 2/01/46 (d) |
|
|
|
|
|
|
6,170 |
|
|
|
7,055,623 |
|
| Molson Coors Brewing Co., 4.20%, 7/15/46 |
|
|
|
|
|
|
1,665 |
|
|
|
1,664,556 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
8,720,179 |
|
| Biotechnology — 0.4% |
|
|
|
|
|
|
|
|
|
|
|
|
| Amgen, Inc., 4.66%, 6/15/51 (c)(d) |
|
|
|
|
|
|
6,709 |
|
|
|
6,861,207 |
|
| Building Products — 0.3% |
|
|
|
|
|
|
|
|
|
|
|
|
| American Builders & Contractors Supply Co., Inc., 5.75%, 12/15/23 (c) |
|
|
|
|
|
|
424 |
|
|
|
442,020 |
|
| Builders FirstSource, Inc., 5.63%, 9/01/24 (c) |
|
|
|
|
|
|
586 |
|
|
|
591,860 |
|
| Building Materials Corp. of America, 6.00%, 10/15/25 (c) |
|
|
|
|
|
|
2,038 |
|
|
|
2,175,463 |
|
| Masonite International Corp., 5.63%, 3/15/23 (c) |
|
|
|
|
|
|
610 |
|
|
|
631,350 |
|
| Standard Industries, Inc., 5.13%, 2/15/21 (c) |
|
|
|
|
|
|
420 |
|
|
|
441,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
4,281,693 |
|
| Capital Markets — 2.9% |
|
|
|
|
|
|
|
|
|
|
|
|
| E*Trade Financial Corp., 5.38%, 11/15/22 |
|
|
|
|
|
|
1,348 |
|
|
|
1,440,817 |
|
| Goldman Sachs Group, Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 6.25%, 9/01/17 |
|
|
|
|
|
|
625 |
|
|
|
649,755 |
|
| 7.50%, 2/15/19 (d) |
|
|
|
|
|
|
5,165 |
|
|
|
5,806,927 |
|
| 5.25%, 7/27/21 |
|
|
|
|
|
|
1,175 |
|
|
|
1,320,628 |
|
| 5.75%, 1/24/22 |
|
|
|
|
|
|
5,500 |
|
|
|
6,358,918 |
|
| 6.25%, 2/01/41 (d) |
|
|
|
|
|
|
15,000 |
|
|
|
19,211,985 |
|
| Morgan Stanley (d): |
|
|
|
|
|
|
|
|
|
|
|
|
| 5.63%, 9/23/19 |
|
|
|
|
|
|
6,770 |
|
|
|
7,453,675 |
|
| 5.50%, 7/28/21 |
|
|
|
|
|
|
2,695 |
|
|
|
3,059,138 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
45,301,843 |
|
See Notes to Financial
Statements.
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
| 12 |
|
ANNUAL REPORT |
|
OCTOBER 31, 2016 |
|
|
|
|
|
| Schedule of Investments (continued) |
|
BlackRock Credit Allocation Income Trust (BTZ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Corporate Bonds |
|
Par
(000) |
|
|
Value |
|
| Chemicals — 1.2% |
|
|
|
|
|
|
|
|
|
|
|
|
| Axalta Coating Systems LLC, 4.88%, 8/15/24 (c) |
|
|
USD |
|
|
|
715 |
|
|
$ |
725,725 |
|
| Basell Finance Co. BV, 8.10%, 3/15/27 (c)(d) |
|
|
|
|
|
|
6,000 |
|
|
|
8,001,210 |
|
| CF Industries, Inc., 5.38%, 3/15/44 |
|
|
|
|
|
|
3,625 |
|
|
|
3,100,633 |
|
| Chemours Co.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 6.63%, 5/15/23 |
|
|
|
|
|
|
220 |
|
|
|
213,400 |
|
| 7.00%, 5/15/25 |
|
|
|
|
|
|
869 |
|
|
|
845,103 |
|
| Huntsman International LLC: |
|
|
|
|
|
|
|
|
|
|
|
|
| 4.88%, 11/15/20 |
|
|
|
|
|
|
72 |
|
|
|
74,714 |
|
| 5.13%, 11/15/22 |
|
|
|
|
|
|
2,495 |
|
|
|
2,582,325 |
|
| NOVA Chemicals Corp., 5.25%, 8/01/23 (c) |
|
|
|
|
|
|
772 |
|
|
|
786,475 |
|
| Platform Specialty Products Corp. (c): |
|
|
|
|
|
|
|
|
|
|
|
|
| 10.38%, 5/01/21 |
|
|
|
|
|
|
165 |
|
|
|
178,200 |
|
| 6.50%, 2/01/22 |
|
|
|
|
|
|
1,372 |
|
|
|
1,330,840 |
|
| PQ Corp., 6.75%, 11/15/22 (c) |
|
|
|
|
|
|
935 |
|
|
|
1,008,631 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
18,847,256 |
|
| Commercial Services & Supplies — 3.2% |
|
|
|
|
|
|
|
|
|
|
|
|
| ADS Waste Holdings, Inc., 8.25%, 10/01/20 |
|
|
|
|
|
|
1,003 |
|
|
|
1,048,135 |
|
| Aviation Capital Group Corp. (c): |
|
|
|
|
|
|
|
|
|
|
|
|
| 7.13%, 10/15/20 |
|
|
|
|
|
|
31,000 |
|
|
|
36,647,270 |
|
| 6.75%, 4/06/21 |
|
|
|
|
|
|
7,850 |
|
|
|
9,314,261 |
|
| Intelsat Jackson Holdings SA, 7.25%, 4/01/19 |
|
|
|
|
|
|
808 |
|
|
|
651,450 |
|
| United Rentals North America, Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 7.63%, 4/15/22 |
|
|
|
|
|
|
1,853 |
|
|
|
1,970,443 |
|
| 5.50%, 5/15/27 (f) |
|
|
|
|
|
|
790 |
|
|
|
786,050 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
50,417,609 |
|
| Communications Equipment — 0.3% |
|
|
|
|
|
|
|
|
|
|
|
|
| CommScope Technologies Finance LLC, 6.00%, 6/15/25 (c) |
|
|
|
|
|
|
2,242 |
|
|
|
2,354,100 |
|
| CommScope, Inc., 5.50%, 6/15/24 (c) |
|
|
|
|
|
|
254 |
|
|
|
266,065 |
|
| Zayo Group LLC/Zayo Capital, Inc., 6.38%, 5/15/25 |
|
|
|
|
|
|
2,126 |
|
|
|
2,238,295 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
4,858,460 |
|
| Construction & Engineering — 0.2% |
|
|
|
|
|
|
|
|
|
|
|
|
| AECOM Co.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 5.75%, 10/15/22 |
|
|
|
|
|
|
333 |
|
|
|
349,510 |
|
| 5.88%, 10/15/24 |
|
|
|
|
|
|
2,311 |
|
|
|
2,440,994 |
|
| BlueLine Rental Finance Corp., 7.00%, 2/01/19 (c) |
|
|
|
|
|
|
413 |
|
|
|
360,342 |
|
| Weekley Homes LLC/Weekley Finance Corp., 6.00%, 2/01/23 |
|
|
|
|
|
|
825 |
|
|
|
750,750 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
3,901,596 |
|
| Construction Materials — 0.5% |
|
|
|
|
|
|
|
|
|
|
|
|
| Allegion US Holding Co., Inc., 5.75%, 10/01/21 |
|
|
|
|
|
|
1,907 |
|
|
|
1,985,664 |
|
| HD Supply, Inc. (c): |
|
|
|
|
|
|
|
|
|
|
|
|
| 5.25%, 12/15/21 |
|
|
|
|
|
|
3,278 |
|
|
|
3,482,875 |
|
| 5.75%, 4/15/24 |
|
|
|
|
|
|
1,701 |
|
|
|
1,786,050 |
|
| PulteGroup, Inc., 5.50%, 3/01/26 |
|
|
|
|
|
|
926 |
|
|
|
963,040 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
8,217,629 |
|
| Consumer Finance — 1.5% |
|
|
|
|
|
|
|
|
|
|
|
|
| Ally Financial, Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 5.13%, 9/30/24 |
|
|
|
|
|
|
590 |
|
|
|
622,450 |
|
| 4.63%, 3/30/25 |
|
|
|
|
|
|
136 |
|
|
|
138,380 |
|
| 8.00%, 11/01/31 |
|
|
|
|
|
|
5,795 |
|
|
|
6,925,025 |
|
| Capital One Bank USA NA, 3.38%, 2/15/23 (d) |
|
|
|
|
|
|
6,610 |
|
|
|
6,751,745 |
|
| Discover Financial Services, 3.85%, 11/21/22 |
|
|
|
|
|
|
3,252 |
|
|
|
3,355,875 |
|
| Experian Finance PLC, 2.38%, 6/15/17 (c)(d) |
|
|
|
|
|
|
2,550 |
|
|
|
2,563,979 |
|
| Navient Corp.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 6.63%, 7/26/21 |
|
|
|
|
|
|
461 |
|
|
|
464,457 |
|
| 7.25%, 9/25/23 |
|
|
|
|
|
|
996 |
|
|
|
992,265 |
|
| Total System Services, Inc., 3.80%, 4/01/21 |
|
|
|
|
|
|
1,630 |
|
|
|
1,719,450 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
23,533,626 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Corporate Bonds |
|
Par
(000) |
|
|
Value |
|
| Containers & Packaging — 0.4% |
|
|
|
|
|
|
|
|
|
|
|
|
| Ardagh Packaging Finance PLC/Ardagh MP Holdings USA, Inc., 6.25%, 1/31/19 (c) |
|
|
USD |
|
|
|
400 |
|
|
$ |
407,500 |
|
| Ball Corp., 4.38%, 12/15/20 |
|
|
|
|
|
|
681 |
|
|
|
725,265 |
|
| Reynolds Group Issuer, Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 5.75%, 10/15/20 |
|
|
|
|
|
|
2,866 |
|
|
|
2,941,319 |
|
| 6.88%, 2/15/21 |
|
|
|
|
|
|
105 |
|
|
|
108,675 |
|
| 7.00%, 7/15/24 (c) |
|
|
|
|
|
|
1,247 |
|
|
|
1,332,731 |
|
| Sealed Air Corp., 6.88%, 7/15/33 (c) |
|
|
|
|
|
|
182 |
|
|
|
195,650 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
5,711,140 |
|
| Diversified Consumer Services — 0.4% |
|
|
|
|
|
|
|
|
|
|
|
|
| Prime Security Services Borrower LLC/Prime Finance, Inc., 9.25%, 5/15/23 (c) |
|
|
|
|
|
|
1,295 |
|
|
|
1,375,937 |
|
| Service Corp. International, 4.50%, 11/15/20 |
|
|
|
|
|
|
4,382 |
|
|
|
4,458,685 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
5,834,622 |
|
| Diversified Financial Services — 8.5% |
|
|
|
|
|
|
|
|
|
|
|
|
| AerCap Ireland Capital Ltd./AerCap Global Aviation Trust: |
|
|
|
|
|
|
|
|
|
|
|
|
| 4.63%, 10/30/20 |
|
|
|
|
|
|
961 |
|
|
|
1,011,452 |
|
| 4.63%, 7/01/22 |
|
|
|
|
|
|
518 |
|
|
|
540,663 |
|
| Air Lease Corp., 3.75%, 2/01/22 |
|
|
|
|
|
|
5,000 |
|
|
|
5,261,460 |
|
| Aircastle Ltd., 6.25%, 12/01/19 |
|
|
|
|
|
|
3,937 |
|
|
|
4,286,409 |
|
| Bank of America Corp.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 5.00%, 5/13/21 (d) |
|
|
|
|
|
|
17,100 |
|
|
|
18,957,812 |
|
| 5.70%, 1/24/22 |
|
|
|
|
|
|
2,590 |
|
|
|
2,991,875 |
|
| 4.45%, 3/03/26 |
|
|
|
|
|
|
1,765 |
|
|
|
1,884,079 |
|
| Bank of America NA, 5.30%, 3/15/17 (d) |
|
|
|
|
|
|
13,440 |
|
|
|
13,634,746 |
|
| Barclays PLC, 4.38%, 9/11/24 |
|
|
|
|
|
|
2,100 |
|
|
|
2,108,446 |
|
| Citigroup, Inc. (d): |
|
|
|
|
|
|
|
|
|
|
|
|
| 4.45%, 1/10/17 |
|
|
|
|
|
|
4,800 |
|
|
|
4,830,096 |
|
| 6.68%, 9/13/43 |
|
|
|
|
|
|
4,125 |
|
|
|
5,308,376 |
|
| Credit Suisse Group Funding Guernsey Ltd., 4.55%, 4/17/26 (c)(d) |
|
|
|
|
|
|
5,000 |
|
|
|
5,244,090 |
|
| Double Eagle Acquisition, Inc., 7.50%, 10/01/24 (c) |
|
|
|
|
|
|
739 |
|
|
|
761,170 |
|
| Ford Motor Credit Co. LLC: |
|
|
|
|
|
|
|
|
|
|
|
|
| 8.00%, 12/15/16 |
|
|
|
|
|
|
4,000 |
|
|
|
4,031,000 |
|
| 5.88%, 8/02/21 |
|
|
|
|
|
|
9,420 |
|
|
|
10,696,674 |
|
| General Motors Financial Co., Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 6.75%, 6/01/18 |
|
|
|
|
|
|
1,700 |
|
|
|
1,824,085 |
|
| 4.38%, 9/25/21 |
|
|
|
|
|
|
2,260 |
|
|
|
2,399,752 |
|
| 4.25%, 5/15/23 |
|
|
|
|
|
|
1,681 |
|
|
|
1,744,601 |
|
| ING Bank NV, 5.00%, 6/09/21 (c)(d) |
|
|
|
|
|
|
8,000 |
|
|
|
8,979,392 |
|
| Jefferies Finance LLC/JFIN Co-Issuer Corp., 7.38%, 4/01/20 (c) |
|
|
|
|
|
|
1,705 |
|
|
|
1,692,212 |
|
| Leucadia National Corp., 5.50%, 10/18/23 |
|
|
|
|
|
|
4,000 |
|
|
|
4,200,128 |
|
| Lloyds Banking Group PLC (c): |
|
|
|
|
|
|
|
|
|
|
|
|
| 4.58%, 12/10/25 |
|
|
|
|
|
|
1,985 |
|
|
|
2,017,084 |
|
| 5.30%, 12/01/45 |
|
|
|
|
|
|
1,120 |
|
|
|
1,181,986 |
|
| Moody’s Corp., 6.06%, 9/07/17 |
|
|
|
|
|
|
20,000 |
|
|
|
20,422,140 |
|
| Resparcs Funding LP I, 8.00% (e)(g) |
|
|
|
|
|
|
4,000 |
|
|
|
703,168 |
|
| Royal Bank of Scotland Group PLC: |
|
|
|
|
|
|
|
|
|
|
|
|
| 6.10%, 6/10/23 |
|
|
|
|
|
|
2,500 |
|
|
|
2,591,312 |
|
| 5.13%, 5/28/24 |
|
|
|
|
|
|
5,250 |
|
|
|
5,197,762 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
134,501,970 |
|
| Diversified Telecommunication Services — 6.1% |
|
| AT&T, Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 5.00%, 3/01/21 (d) |
|
|
|
|
|
|
8,575 |
|
|
|
9,426,154 |
|
| 6.30%, 1/15/38 (d) |
|
|
|
|
|
|
12,000 |
|
|
|
13,921,668 |
|
| 4.30%, 12/15/42 |
|
|
|
|
|
|
265 |
|
|
|
243,993 |
|
| 4.35%, 6/15/45 |
|
|
|
|
|
|
367 |
|
|
|
336,674 |
|
| CenturyLink, Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 6.45%, 6/15/21 |
|
|
|
|
|
|
1,660 |
|
|
|
1,772,050 |
|
| Series Y, 7.50%, 4/01/24 |
|
|
|
|
|
|
150 |
|
|
|
156,188 |
|
See Notes to Financial
Statements.
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
ANNUAL REPORT |
|
OCTOBER 31, 2016 |
|
13 |
|
|
|
| Schedule of Investments (continued) |
|
BlackRock Credit Allocation Income Trust (BTZ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Corporate Bonds |
|
Par
(000) |
|
|
Value |
|
| Diversified Telecommunication Services (continued) |
|
|
|
|
|
| Frontier Communications Corp.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 6.25%, 9/15/21 |
|
|
USD |
|
|
|
980 |
|
|
$ |
931,000 |
|
| 7.13%, 1/15/23 |
|
|
|
|
|
|
55 |
|
|
|
49,466 |
|
| 7.63%, 4/15/24 |
|
|
|
|
|
|
1,309 |
|
|
|
1,165,010 |
|
| 6.88%, 1/15/25 |
|
|
|
|
|
|
3,964 |
|
|
|
3,319,850 |
|
| Level 3 Financing, Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 5.38%, 8/15/22 |
|
|
|
|
|
|
2,095 |
|
|
|
2,152,613 |
|
| 5.13%, 5/01/23 |
|
|
|
|
|
|
1,183 |
|
|
|
1,194,830 |
|
| 5.38%, 1/15/24 |
|
|
|
|
|
|
754 |
|
|
|
769,080 |
|
| 5.38%, 5/01/25 |
|
|
|
|
|
|
2,003 |
|
|
|
2,033,045 |
|
| SBA Communications Corp., 4.88%, 9/01/24 (c) |
|
|
|
|
|
|
1,658 |
|
|
|
1,658,000 |
|
| Telefonica Emisiones SAU, 3.19%, 4/27/18 |
|
|
|
|
|
|
6,550 |
|
|
|
6,690,059 |
|
| Verizon Communications, Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 5.15%, 9/15/23 (d) |
|
|
|
|
|
|
8,775 |
|
|
|
10,037,371 |
|
| 6.40%, 9/15/33 |
|
|
|
|
|
|
9,475 |
|
|
|
11,818,954 |
|
| 7.35%, 4/01/39 (d) |
|
|
|
|
|
|
7,825 |
|
|
|
10,693,496 |
|
| 6.55%, 9/15/43 (d) |
|
|
|
|
|
|
13,225 |
|
|
|
17,328,651 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
95,698,152 |
|
| Electric Utilities — 4.8% |
|
| CMS Energy Corp., 5.05%, 3/15/22 |
|
|
|
|
|
|
9,900 |
|
|
|
11,196,969 |
|
| Duke Energy Corp., 3.55%, 9/15/21 (d) |
|
|
|
|
|
|
3,650 |
|
|
|
3,897,353 |
|
| Emera, Inc., Series 16-A, 6.75%, 6/15/76 (b) |
|
|
|
|
|
|
7,500 |
|
|
|
8,287,500 |
|
| Great Plains Energy, Inc., 5.29%, 6/15/22 (h) |
|
|
|
|
|
|
5,550 |
|
|
|
6,151,304 |
|
| Midland Cogeneration Venture LP, 5.25%, 3/15/25 (c) |
|
|
|
|
|
|
4,102 |
|
|
|
4,131,531 |
|
| NiSource Finance Corp., 6.80%, 1/15/19 (d) |
|
|
|
|
|
|
3,075 |
|
|
|
3,406,783 |
|
| Oncor Electric Delivery Co. LLC (d): |
|
|
|
|
|
|
|
|
|
|
|
|
| 4.10%, 6/01/22 |
|
|
|
|
|
|
4,150 |
|
|
|
4,547,445 |
|
| 5.30%, 6/01/42 |
|
|
|
|
|
|
2,750 |
|
|
|
3,420,002 |
|
| Progress Energy, Inc., 7.00%, 10/30/31 (d) |
|
|
|
|
|
|
12,000 |
|
|
|
15,974,064 |
|
| Puget Energy, Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 6.00%, 9/01/21 |
|
|
|
|
|
|
275 |
|
|
|
316,885 |
|
| 5.63%, 7/15/22 |
|
|
|
|
|
|
5,550 |
|
|
|
6,329,603 |
|
| Southern Co., 4.40%, 7/01/46 |
|
|
|
|
|
|
7,500 |
|
|
|
7,920,915 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
75,580,354 |
|
| Electronic Equipment, Instruments & Components — 0.5% |
|
| CDW LLC/CDW Finance Corp.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 6.00%, 8/15/22 |
|
|
|
|
|
|
1,050 |
|
|
|
1,113,000 |
|
| 5.00%, 9/01/23 |
|
|
|
|
|
|
306 |
|
|
|
314,231 |
|
| 5.50%, 12/01/24 |
|
|
|
|
|
|
2,458 |
|
|
|
2,581,662 |
|
| Jabil Circuit, Inc., 8.25%, 3/15/18 |
|
|
|
|
|
|
2,600 |
|
|
|
2,808,000 |
|
| Sanmina Corp., 4.38%, 6/01/19 (c) |
|
|
|
|
|
|
1,415 |
|
|
|
1,475,138 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
8,292,031 |
|
| Energy Equipment & Services — 0.7% |
|
| Genesis Energy LP/Genesis Energy Finance Corp.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 5.75%, 2/15/21 |
|
|
|
|
|
|
473 |
|
|
|
471,818 |
|
| 6.75%, 8/01/22 |
|
|
|
|
|
|
1,175 |
|
|
|
1,207,312 |
|
| GrafTech International Ltd., 6.38%, 11/15/20 |
|
|
|
|
|
|
890 |
|
|
|
676,400 |
|
| Halliburton Co., 5.00%, 11/15/45 |
|
|
|
|
|
|
6,615 |
|
|
|
7,227,205 |
|
| Noble Holding International Ltd.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 4.63%, 3/01/21 |
|
|
|
|
|
|
85 |
|
|
|
71,780 |
|
| 7.20%, 4/01/25 |
|
|
|
|
|
|
180 |
|
|
|
146,700 |
|
| Transocean, Inc., 6.00%, 3/15/18 (d) |
|
|
|
|
|
|
880 |
|
|
|
882,640 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
10,683,855 |
|
| Food & Staples Retailing — 1.8% |
|
| Albertsons Cos. LLC/Safeway, Inc./New Albertson’s, Inc./Albertson’s LLC (c): |
|
|
|
|
|
|
|
|
|
|
|
|
| 6.63%, 6/15/24 |
|
|
|
|
|
|
775 |
|
|
|
804,062 |
|
| 5.75%, 3/15/25 |
|
|
|
|
|
|
1,120 |
|
|
|
1,105,653 |
|
| CVS Health Corp.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 4.75%, 12/01/22 |
|
|
|
|
|
|
289 |
|
|
|
324,002 |
|
| 5.00%, 12/01/24 |
|
|
|
|
|
|
183 |
|
|
|
208,800 |
|
| 5.13%, 7/20/45 (d) |
|
|
|
|
|
|
3,879 |
|
|
|
4,525,206 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Corporate Bonds |
|
Par
(000) |
|
|
Value |
|
| Food & Staples Retailing (continued) |
|
|
|
|
|
| Dollar Tree, Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 5.25%, 3/01/20 |
|
|
USD |
|
|
|
105 |
|
|
$ |
108,938 |
|
| 5.75%, 3/01/23 |
|
|
|
|
|
|
4,723 |
|
|
|
5,029,995 |
|
| H.J. Heinz Finance Co., 7.13%, 8/01/39 (c) |
|
|
|
|
|
|
4,415 |
|
|
|
6,034,528 |
|
| Pinnacle Foods Finance LLC/Pinnacle Foods Finance Corp., 5.88%, 1/15/24 |
|
|
|
|
|
|
191 |
|
|
|
204,848 |
|
| Rite Aid Corp.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 6.75%, 6/15/21 |
|
|
|
|
|
|
541 |
|
|
|
568,050 |
|
| 6.13%, 4/01/23 (c) |
|
|
|
|
|
|
2,974 |
|
|
|
3,137,570 |
|
| Wal-Mart Stores, Inc., 5.25%, 9/01/35 (d) |
|
|
|
|
|
|
5,150 |
|
|
|
6,579,424 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
28,631,076 |
|
| Food Products — 1.2% |
|
| Aramark Services, Inc., 5.13%, 1/15/24 (c) |
|
|
|
|
|
|
815 |
|
|
|
853,713 |
|
| FAGE International SA/FAGE USA Dairy Industry, Inc., 5.63%, 8/15/26 (c) |
|
|
|
|
|
|
830 |
|
|
|
856,975 |
|
| Kraft Foods, Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 6.50%, 8/11/17 (d) |
|
|
|
|
|
|
4,450 |
|
|
|
4,626,127 |
|
| 6.13%, 8/23/18 |
|
|
|
|
|
|
4,840 |
|
|
|
5,271,539 |
|
| Kraft Heinz Foods Co., 4.38%, 6/01/46 |
|
|
|
|
|
|
2,475 |
|
|
|
2,510,105 |
|
| Post Holdings, Inc. (c): |
|
|
|
|
|
|
|
|
|
|
|
|
| 7.75%, 3/15/24 |
|
|
|
|
|
|
1,502 |
|
|
|
1,660,010 |
|
| 8.00%, 7/15/25 |
|
|
|
|
|
|
743 |
|
|
|
847,020 |
|
| 5.00%, 8/15/26 |
|
|
|
|
|
|
1,349 |
|
|
|
1,308,530 |
|
| Smithfield Foods, Inc., 5.88%, 8/01/21 (c) |
|
|
|
|
|
|
715 |
|
|
|
745,388 |
|
| TreeHouse Foods, Inc., 6.00%, 2/15/24 (c) |
|
|
|
|
|
|
431 |
|
|
|
462,894 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
19,142,301 |
|
| Health Care Equipment & Supplies — 0.6% |
|
|
|
|
|
|
|
|
|
|
|
|
| DJO Finco, Inc./DJO Finance LLC/DJO Finance Corp., 8.13%, 6/15/21 (c) |
|
|
|
|
|
|
2,065 |
|
|
|
1,894,637 |
|
| Mallinckrodt International Finance SA/Mallinckrodt CB LLC (c): |
|
|
|
|
|
|
|
|
|
|
|
|
| 4.88%, 4/15/20 |
|
|
|
|
|
|
517 |
|
|
|
518,939 |
|
| 5.75%, 8/01/22 |
|
|
|
|
|
|
1,370 |
|
|
|
1,298,075 |
|
| 5.63%, 10/15/23 |
|
|
|
|
|
|
506 |
|
|
|
475,640 |
|
| Medtronic, Inc., 4.63%, 3/15/45 (d) |
|
|
|
|
|
|
4,565 |
|
|
|
5,164,672 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
9,351,963 |
|
| Health Care Providers & Services — 3.6% |
|
|
|
|
|
|
|
|
|
|
|
|
| Acadia Healthcare Co., Inc., 5.13%, 7/01/22 |
|
|
|
|
|
|
191 |
|
|
|
187,180 |
|
| Amsurg Corp., 5.63%, 7/15/22 |
|
|
|
|
|
|
1,466 |
|
|
|
1,495,320 |
|
| Centene Corp.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 5.63%, 2/15/21 |
|
|
|
|
|
|
875 |
|
|
|
917,884 |
|
| 6.13%, 2/15/24 |
|
|
|
|
|
|
645 |
|
|
|
686,925 |
|
| CHS/Community Health Systems, Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 5.13%, 8/15/18 |
|
|
|
|
|
|
1,620 |
|
|
|
1,605,825 |
|
| 6.88%, 2/01/22 |
|
|
|
|
|
|
1,111 |
|
|
|
847,138 |
|
| DaVita HealthCare Partners, Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 5.13%, 7/15/24 |
|
|
|
|
|
|
1,990 |
|
|
|
1,946,469 |
|
| 5.00%, 5/01/25 |
|
|
|
|
|
|
335 |
|
|
|
323,275 |
|
| HCA, Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 3.75%, 3/15/19 |
|
|
|
|
|
|
4,364 |
|
|
|
4,462,190 |
|
| 6.50%, 2/15/20 |
|
|
|
|
|
|
10,421 |
|
|
|
11,541,257 |
|
| 7.50%, 2/15/22 |
|
|
|
|
|
|
2,214 |
|
|
|
2,519,532 |
|
| 5.88%, 3/15/22 |
|
|
|
|
|
|
340 |
|
|
|
374,000 |
|
| 4.75%, 5/01/23 |
|
|
|
|
|
|
236 |
|
|
|
245,735 |
|
| 5.38%, 2/01/25 |
|
|
|
|
|
|
440 |
|
|
|
449,108 |
|
| 5.88%, 2/15/26 |
|
|
|
|
|
|
1,297 |
|
|
|
1,361,850 |
|
| HealthSouth Corp.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 5.13%, 3/15/23 |
|
|
|
|
|
|
512 |
|
|
|
517,120 |
|
| 5.75%, 11/01/24 |
|
|
|
|
|
|
637 |
|
|
|
656,906 |
|
| Hologic, Inc., 5.25%, 7/15/22 (c) |
|
|
|
|
|
|
742 |
|
|
|
784,739 |
|
| MEDNAX, Inc., 5.25%, 12/01/23 (c) |
|
|
|
|
|
|
587 |
|
|
|
613,415 |
|
| MPH Acquisition Holdings LLC, 7.13%, 6/01/24 (c) |
|
|
|
|
|
|
829 |
|
|
|
886,947 |
|
See Notes to Financial
Statements.
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
| 14 |
|
ANNUAL REPORT |
|
OCTOBER 31, 2016 |
|
|
|
|
|
| Schedule of Investments (continued) |
|
BlackRock Credit Allocation Income Trust (BTZ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Corporate Bonds |
|
Par
(000) |
|
|
Value |
|
| Health Care Providers & Services (continued) |
|
|
|
|
|
|
|
|
|
|
|
|
| RegionalCare Hospital Partners Holdings, Inc., 8.25%, 5/01/23 (c) |
|
|
USD |
|
|
|
1,109 |
|
|
$ |
1,124,249 |
|
| Tenet Healthcare Corp.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 6.25%, 11/01/18 |
|
|
|
|
|
|
736 |
|
|
|
778,320 |
|
| 4.75%, 6/01/20 |
|
|
|
|
|
|
1,450 |
|
|
|
1,482,625 |
|
| 6.00%, 10/01/20 |
|
|
|
|
|
|
3,645 |
|
|
|
3,839,570 |
|
| 4.50%, 4/01/21 |
|
|
|
|
|
|
73 |
|
|
|
73,000 |
|
| 8.13%, 4/01/22 |
|
|
|
|
|
|
1,907 |
|
|
|
1,864,092 |
|
| 6.75%, 6/15/23 |
|
|
|
|
|
|
1,758 |
|
|
|
1,615,163 |
|
| UnitedHealth Group, Inc., 6.88%, 2/15/38 (d) |
|
|
|
|
|
|
10,000 |
|
|
|
13,988,470 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
57,188,304 |
|
| Hotels, Restaurants & Leisure — 0.6% |
|
|
|
|
|
|
|
|
|
|
|
|
| Boyd Gaming Corp., 6.38%, 4/01/26 (c) |
|
|
|
|
|
|
71 |
|
|
|
75,970 |
|
| ESH Hospitality, Inc., 5.25%, 5/01/25 (c) |
|
|
|
|
|
|
1,970 |
|
|
|
1,950,300 |
|
| GLP Capital LP / GLP Financing II, Inc., 4.38%, 4/15/21 |
|
|
|
|
|
|
143 |
|
|
|
150,508 |
|
| KFC Holding Co/Pizza Hut Holdings LLC/Taco Bell of America LLC (c): |
|
|
|
|
|
|
|
|
|
|
|
|
| 5.00%, 6/01/24 |
|
|
|
|
|
|
600 |
|
|
|
624,000 |
|
| 5.25%, 6/01/26 |
|
|
|
|
|
|
650 |
|
|
|
677,625 |
|
| MGM Resorts International, 6.75%, 10/01/20 |
|
|
|
|
|
|
214 |
|
|
|
237,540 |
|
| MGP Escrow Issuer LLC/MGP Escrow Co-Issuer, Inc., 5.63%, 5/01/24 (c) |
|
|
|
|
|
|
627 |
|
|
|
667,379 |
|
| New Red Finance, Inc., 6.00%, 4/01/22 (c) |
|
|
|
|
|
|
2,215 |
|
|
|
2,314,675 |
|
| Sabre GLBL, Inc. (c): |
|
|
|
|
|
|
|
|
|
|
|
|
| 5.38%, 4/15/23 |
|
|
|
|
|
|
594 |
|
|
|
609,592 |
|
| 5.25%, 11/15/23 |
|
|
|
|
|
|
294 |
|
|
|
301,717 |
|
| Six Flags Entertainment Corp., 5.25%, 1/15/21 (c) |
|
|
|
|
|
|
1,718 |
|
|
|
1,769,540 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
9,378,846 |
|
| Household Durables — 0.8% |
|
|
|
|
|
|
|
|
|
|
|
|
| Brookfield Residential Properties, Inc./Brookfield Residential US Corp., 6.13%, 7/01/22 (c) |
|
|
|
|
|
|
1,647 |
|
|
|
1,671,705 |
|
| CalAtlantic Group, Inc., 8.38%, 1/15/21 |
|
|
|
|
|
|
3,015 |
|
|
|
3,580,313 |
|
| Lennar Corp.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 4.75%, 11/15/22 |
|
|
|
|
|
|
1,805 |
|
|
|
1,877,200 |
|
| 4.88%, 12/15/23 |
|
|
|
|
|
|
466 |
|
|
|
475,320 |
|
| Newell Brands, Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 3.85%, 4/01/23 |
|
|
|
|
|
|
2,585 |
|
|
|
2,743,228 |
|
| 4.20%, 4/01/26 |
|
|
|
|
|
|
955 |
|
|
|
1,031,890 |
|
| TRI Pointe Group, Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 4.38%, 6/15/19 |
|
|
|
|
|
|
920 |
|
|
|
940,700 |
|
| 5.88%, 6/15/24 |
|
|
|
|
|
|
625 |
|
|
|
647,656 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
12,968,012 |
|
| Household Products — 0.2% |
|
|
|
|
|
|
|
|
|
|
|
|
| Spectrum Brands, Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 6.63%, 11/15/22 |
|
|
|
|
|
|
1,110 |
|
|
|
1,189,787 |
|
| 6.13%, 12/15/24 |
|
|
|
|
|
|
231 |
|
|
|
252,945 |
|
| 5.75%, 7/15/25 |
|
|
|
|
|
|
1,002 |
|
|
|
1,084,665 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
2,527,397 |
|
| Independent Power and Renewable Electricity Producers — 0.7% |
|
| Calpine Corp.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 6.00%, 1/15/22 (c) |
|
|
|
|
|
|
1,548 |
|
|
|
1,618,140 |
|
| 5.88%, 1/15/24 (c) |
|
|
|
|
|
|
823 |
|
|
|
868,265 |
|
| 5.75%, 1/15/25 |
|
|
|
|
|
|
1,064 |
|
|
|
1,034,740 |
|
| Dynegy, Inc., 6.75%, 11/01/19 |
|
|
|
|
|
|
1,945 |
|
|
|
1,968,515 |
|
| NRG Energy, Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 6.25%, 5/01/24 |
|
|
|
|
|
|
135 |
|
|
|
130,950 |
|
| 7.25%, 5/15/26 (c) |
|
|
|
|
|
|
1,581 |
|
|
|
1,555,561 |
|
| 6.63%, 1/15/27 (c) |
|
|
|
|
|
|
2,521 |
|
|
|
2,361,068 |
|
| QEP Resources, Inc., 5.38%, 10/01/22 |
|
|
|
|
|
|
1,927 |
|
|
|
1,907,730 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
11,444,969 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Corporate Bonds |
|
Par
(000) |
|
|
Value |
|
| Industrial Conglomerates — 0.0% |
|
|
|
|
|
|
|
|
|
|
|
|
| Cortes NP Acquisition Corp., 9.25%, 10/15/24 (c) |
|
|
USD |
|
|
|
623 |
|
|
$ |
650,646 |
|
| Insurance — 3.0% |
|
|
|
|
|
|
|
|
|
|
|
|
| American International Group, Inc., 6.40%, 12/15/20 (d) |
|
|
|
|
|
|
8,710 |
|
|
|
10,141,375 |
|
| Aon Corp., 5.00%, 9/30/20 (d) |
|
|
|
|
|
|
7,700 |
|
|
|
8,480,187 |
|
| Aon PLC, 4.25%, 12/12/42 (d) |
|
|
|
|
|
|
6,500 |
|
|
|
6,262,178 |
|
| Forethought Financial Group, Inc., 8.63%, 4/15/21 (c) |
|
|
|
|
|
|
3,400 |
|
|
|
3,877,340 |
|
| Northwestern Mutual Life Insurance Co., 6.06%, 3/30/40 (c)(d) |
|
|
|
|
|
|
12,000 |
|
|
|
15,439,404 |
|
| Principal Financial Group, Inc., 8.88%, 5/15/19 |
|
|
|
|
|
|
2,825 |
|
|
|
3,318,270 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
47,518,754 |
|
| Internet Software & Services — 0.1% |
|
|
|
|
|
|
|
|
|
|
|
|
| Equinix, Inc., 5.88%, 1/15/26 |
|
|
|
|
|
|
1,061 |
|
|
|
1,134,124 |
|
| Netflix, Inc., 5.50%, 2/15/22 |
|
|
|
|
|
|
563 |
|
|
|
609,448 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
1,743,572 |
|
| IT Services — 0.8% |
|
|
|
|
|
|
|
|
|
|
|
|
| Ceridian HCM Holding, Inc., 11.00%, 3/15/21 (c) |
|
|
|
|
|
|
1,755 |
|
|
|
1,847,138 |
|
| Fidelity National Information Services, Inc., 5.00%, 10/15/25 |
|
|
|
|
|
|
1,935 |
|
|
|
2,177,719 |
|
| First Data Corp. (c): |
|
|
|
|
|
|
|
|
|
|
|
|
| 6.75%, 11/01/20 |
|
|
|
|
|
|
1,768 |
|
|
|
1,829,880 |
|
| 5.38%, 8/15/23 |
|
|
|
|
|
|
764 |
|
|
|
790,740 |
|
| 7.00%, 12/01/23 |
|
|
|
|
|
|
5,545 |
|
|
|
5,808,387 |
|
| 5.75%, 1/15/24 |
|
|
|
|
|
|
410 |
|
|
|
416,150 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
12,870,014 |
|
| Life Sciences Tools & Services — 0.8% |
|
|
|
|
|
|
|
|
|
|
|
|
| Life Technologies Corp., 6.00%, 3/01/20 (d) |
|
|
|
|
|
|
12,000 |
|
|
|
13,369,836 |
|
| Media — 7.2% |
|
|
|
|
|
|
|
|
|
|
|
|
| 21st Century Fox America, Inc., 6.15%, 3/01/37 (d) |
|
|
|
|
|
|
9,575 |
|
|
|
11,662,120 |
|
| A&E Television Networks LLC, 3.11%, 8/22/19 |
|
|
|
|
|
|
5,000 |
|
|
|
5,113,500 |
|
| Altice Financing SA, 7.50%, 5/15/26 (c) |
|
|
|
|
|
|
2,172 |
|
|
|
2,237,160 |
|
| Altice Luxembourg SA (c): |
|
|
|
|
|
|
|
|
|
|
|
|
| 7.75%, 5/15/22 |
|
|
|
|
|
|
2,362 |
|
|
|
2,466,814 |
|
| 7.63%, 2/15/25 |
|
|
|
|
|
|
1,752 |
|
|
|
1,822,080 |
|
| Altice US Finance I Corp. (c): |
|
|
|
|
|
|
|
|
|
|
|
|
| 5.38%, 7/15/23 |
|
|
|
|
|
|
2,919 |
|
|
|
2,986,283 |
|
| 5.50%, 5/15/26 |
|
|
|
|
|
|
1,211 |
|
|
|
1,235,220 |
|
| AMC Networks, Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 4.75%, 12/15/22 |
|
|
|
|
|
|
685 |
|
|
|
698,700 |
|
| 5.00%, 4/01/24 |
|
|
|
|
|
|
432 |
|
|
|
437,400 |
|
| CCO Holdings LLC/CCO Holdings Capital Corp. (c): |
|
|
|
|
|
|
|
|
|
|
|
|
| 5.88%, 4/01/24 |
|
|
|
|
|
|
1,759 |
|
|
|
1,860,142 |
|
| 5.75%, 2/15/26 |
|
|
|
|
|
|
499 |
|
|
|
519,896 |
|
| 5.50%, 5/01/26 |
|
|
|
|
|
|
1,219 |
|
|
|
1,248,719 |
|
| Charter Communications Operating LLC/Charter Communications Operating Capital (c): |
|
|
|
|
|
|
|
|
|
|
|
|
| 4.91%, 7/23/25 |
|
|
|
|
|
|
5,000 |
|
|
|
5,392,755 |
|
| 6.38%, 10/23/35 |
|
|
|
|
|
|
479 |
|
|
|
552,159 |
|
| 6.48%, 10/23/45 |
|
|
|
|
|
|
4,584 |
|
|
|
5,371,760 |
|
| 6.83%, 10/23/55 |
|
|
|
|
|
|
3,540 |
|
|
|
4,220,947 |
|
| Cinemark USA, Inc., 5.13%, 12/15/22 |
|
|
|
|
|
|
349 |
|
|
|
358,598 |
|
| Clear Channel Worldwide Holdings, Inc., 6.50%, 11/15/22 |
|
|
|
|
|
|
11,711 |
|
|
|
11,890,420 |
|
| Cox Communications, Inc., 8.38%, 3/01/39 (c)(d) |
|
|
|
|
|
|
5,000 |
|
|
|
6,481,580 |
|
| CSC Holdings LLC: |
|
|
|
|
|
|
|
|
|
|
|
|
| 8.63%, 2/15/19 |
|
|
|
|
|
|
4,005 |
|
|
|
4,445,550 |
|
| 6.63%, 10/15/25 (c) |
|
|
|
|
|
|
832 |
|
|
|
901,680 |
|
| DISH DBS Corp., 7.75%, 7/01/26 |
|
|
|
|
|
|
1,901 |
|
|
|
2,087,545 |
|
| Grupo Televisa SAB, 5.00%, 5/13/45 (d) |
|
|
|
|
|
|
3,345 |
|
|
|
3,165,718 |
|
See Notes to Financial
Statements.
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
ANNUAL REPORT |
|
OCTOBER 31, 2016 |
|
15 |
|
|
|
| Schedule of Investments (continued) |
|
BlackRock Credit Allocation Income Trust (BTZ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Corporate Bonds |
|
Par
(000) |
|
|
Value |
|
| Media (continued) |
|
|
|
|
|
|
|
|
|
|
|
|
| Hughes Satellite Systems Corp. (c): |
|
|
|
|
|
|
|
|
|
|
|
|
| 5.25%, 8/01/26 |
|
|
USD |
|
|
|
1,017 |
|
|
$ |
1,001,745 |
|
| 6.63%, 8/01/26 |
|
|
|
|
|
|
685 |
|
|
|
678,150 |
|
| Intelsat Jackson Holdings SA: |
|
|
|
|
|
|
|
|
|
|
|
|
| 7.25%, 10/15/20 |
|
|
|
|
|
|
380 |
|
|
|
288,088 |
|
| 5.50%, 8/01/23 (d) |
|
|
|
|
|
|
1,127 |
|
|
|
746,638 |
|
| Interpublic Group of Cos., Inc., 3.75%, 2/15/23 |
|
|
|
|
|
|
6,025 |
|
|
|
6,269,591 |
|
| MDC Partners, Inc., 6.50%, 5/01/24 (c) |
|
|
|
|
|
|
1,246 |
|
|
|
1,062,215 |
|
| NAI Entertainment Holdings/NAI Entertainment Holdings Finance Corp., 5.00%, 8/01/18 (c) |
|
|
|
|
|
|
1,471 |
|
|
|
1,485,710 |
|
| Nexstar Escrow Corp., 5.63%, 8/01/24 (c) |
|
|
|
|
|
|
495 |
|
|
|
491,288 |
|
| Nielsen Finance LLC/Nielsen Finance Co., 5.00%, 4/15/22 (c) |
|
|
|
|
|
|
475 |
|
|
|
484,500 |
|
| Outfront Media Capital LLC/Outfront Media Capital Corp.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 5.25%, 2/15/22 |
|
|
|
|
|
|
249 |
|
|
|
257,715 |
|
| 5.63%, 2/15/24 |
|
|
|
|
|
|
122 |
|
|
|
126,880 |
|
| SFR Group SA (c): |
|
|
|
|
|
|
|
|
|
|
|
|
| 6.00%, 5/15/22 |
|
|
|
|
|
|
4,544 |
|
|
|
4,659,054 |
|
| 7.38%, 5/01/26 |
|
|
|
|
|
|
5,843 |
|
|
|
5,901,430 |
|
| Time Warner Cable, Inc., 6.55%, 5/01/37 |
|
|
|
|
|
|
3,519 |
|
|
|
4,129,543 |
|
| Time Warner, Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 4.65%, 6/01/44 |
|
|
|
|
|
|
28 |
|
|
|
28,985 |
|
| 4.85%, 7/15/45 |
|
|
|
|
|
|
40 |
|
|
|
42,481 |
|
| Tribune Media Co., 5.88%, 7/15/22 |
|
|
|
|
|
|
1,308 |
|
|
|
1,308,000 |
|
| Univision Communications, Inc. (c): |
|
|
|
|
|
|
|
|
|
|
|
|
| 5.13%, 5/15/23 |
|
|
|
|
|
|
5,293 |
|
|
|
5,372,395 |
|
| 5.13%, 2/15/25 |
|
|
|
|
|
|
999 |
|
|
|
1,001,497 |
|
| Virgin Media Secured Finance PLC (c): |
|
|
|
|
|
|
|
|
|
|
|
|
| 5.38%, 4/15/21 |
|
|
|
|
|
|
1,255 |
|
|
|
1,295,374 |
|
| 5.50%, 8/15/26 |
|
|
|
|
|
|
487 |
|
|
|
491,261 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
114,279,286 |
|
| Metals & Mining — 3.3% |
|
|
|
|
|
|
|
|
|
|
|
|
| Alcoa, Inc., 5.13%, 10/01/24 |
|
|
|
|
|
|
1,903 |
|
|
|
1,983,916 |
|
| Alcoa Nederland Holding BV (c): |
|
|
|
|
|
|
|
|
|
|
|
|
| 6.75%, 9/30/24 |
|
|
|
|
|
|
310 |
|
|
|
320,850 |
|
| 7.00%, 9/30/26 |
|
|
|
|
|
|
291 |
|
|
|
299,672 |
|
| Anglo American Capital PLC, 4.45%, 9/27/20 (c) |
|
|
|
|
|
|
136 |
|
|
|
138,720 |
|
| AngloGold Ashanti Holdings PLC, 5.13%, 8/01/22 |
|
|
|
|
|
|
5,000 |
|
|
|
5,115,235 |
|
| ArcelorMittal: |
|
|
|
|
|
|
|
|
|
|
|
|
| 6.13%, 6/01/18 |
|
|
|
|
|
|
2,575 |
|
|
|
2,729,500 |
|
| 7.75%, 3/01/41 |
|
|
|
|
|
|
455 |
|
|
|
477,750 |
|
| Commercial Metals Co., 4.88%, 5/15/23 |
|
|
|
|
|
|
2,194 |
|
|
|
2,172,060 |
|
| Constellium NV: |
|
|
|
|
|
|
|
|
|
|
|
|
| 4.63%, 5/15/21 |
|
|
EUR |
|
|
|
490 |
|
|
|
486,797 |
|
| 5.75%, 5/15/24 (c) |
|
|
USD |
|
|
|
1,728 |
|
|
|
1,529,280 |
|
| First Quantum Minerals Ltd. (c): |
|
|
|
|
|
|
|
|
|
|
|
|
| 7.00%, 2/15/21 |
|
|
|
|
|
|
303 |
|
|
|
287,661 |
|
| 7.25%, 5/15/22 |
|
|
|
|
|
|
912 |
|
|
|
862,980 |
|
| FMG Resources August 2006 Property Ltd., 9.75%, 3/01/22 (c) |
|
|
|
|
|
|
826 |
|
|
|
958,160 |
|
| Freeport-McMoRan, Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 2.38%, 3/15/18 |
|
|
|
|
|
|
4,664 |
|
|
|
4,605,700 |
|
| 4.00%, 11/14/21 |
|
|
|
|
|
|
500 |
|
|
|
472,500 |
|
| 3.55%, 3/01/22 |
|
|
|
|
|
|
1,251 |
|
|
|
1,147,792 |
|
| 3.88%, 3/15/23 |
|
|
|
|
|
|
5,360 |
|
|
|
4,837,400 |
|
| 5.40%, 11/14/34 |
|
|
|
|
|
|
2,250 |
|
|
|
1,937,812 |
|
| 5.45%, 3/15/43 |
|
|
|
|
|
|
1,147 |
|
|
|
952,010 |
|
| Novelis Corp. (c): |
|
|
|
|
|
|
|
|
|
|
|
|
| 6.25%, 8/15/24 |
|
|
|
|
|
|
2,862 |
|
|
|
2,976,480 |
|
| 5.88%, 9/30/26 |
|
|
|
|
|
|
2,060 |
|
|
|
2,085,750 |
|
| Southern Copper Corp., 5.88%, 4/23/45 |
|
|
|
|
|
|
3,870 |
|
|
|
3,866,339 |
|
| Steel Dynamics, Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 5.13%, 10/01/21 |
|
|
|
|
|
|
1,105 |
|
|
|
1,151,962 |
|
| 6.38%, 8/15/22 |
|
|
|
|
|
|
1,430 |
|
|
|
1,490,775 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Corporate Bonds |
|
Par
(000) |
|
|
Value |
|
| Metals & Mining (continued) |
|
|
|
|
|
|
|
|
|
|
|
|
| Steel Dynamics, Inc. (continued): |
|
|
|
|
|
|
|
|
|
|
|
|
| 5.25%, 4/15/23 |
|
|
USD |
|
|
|
309 |
|
|
$ |
319,815 |
|
| 5.50%, 10/01/24 |
|
|
|
|
|
|
240 |
|
|
|
253,200 |
|
| Teck Resources Ltd.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 3.00%, 3/01/19 |
|
|
|
|
|
|
119 |
|
|
|
117,215 |
|
| 8.00%, 6/01/21 (c) |
|
|
|
|
|
|
1,202 |
|
|
|
1,313,185 |
|
| 8.50%, 6/01/24 (c) |
|
|
|
|
|
|
799 |
|
|
|
924,843 |
|
| 6.00%, 8/15/40 |
|
|
|
|
|
|
1,861 |
|
|
|
1,795,865 |
|
| 6.25%, 7/15/41 |
|
|
|
|
|
|
721 |
|
|
|
713,790 |
|
| 5.20%, 3/01/42 |
|
|
|
|
|
|
640 |
|
|
|
577,600 |
|
| United States Steel Corp., 8.38%, 7/01/21 (c) |
|
|
|
|
|
|
944 |
|
|
|
1,003,000 |
|
| Wise Metals Group LLC/Wise Alloys Finance Corp., 8.75%, 12/15/18 (c) |
|
|
|
|
|
|
1,472 |
|
|
|
1,457,280 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
51,362,894 |
|
| Multi-Utilities — 1.2% |
|
|
|
|
|
|
|
|
|
|
|
|
| CenterPoint Energy, Inc. (d): |
|
|
|
|
|
|
|
|
|
|
|
|
| 5.95%, 2/01/17 |
|
|
|
|
|
|
9,000 |
|
|
|
9,094,815 |
|
| 6.50%, 5/01/18 |
|
|
|
|
|
|
9,675 |
|
|
|
10,292,120 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
19,386,935 |
|
| Multiline Retail — 0.2% |
|
|
|
|
|
|
|
|
|
|
|
|
| Dufry Finance SCA, 5.50%, 10/15/20 (c) |
|
|
|
|
|
|
3,460 |
|
|
|
3,559,475 |
|
| Offshore Drilling & Other Services — 0.0% |
|
|
|
|
|
|
|
|
|
|
|
|
| Sensata Technologies BV, 5.63%, 11/01/24 (c) |
|
|
|
|
|
|
695 |
|
|
|
736,700 |
|
| Oil, Gas & Consumable Fuels — 14.4% |
|
|
|
|
|
|
|
|
|
|
|
|
| Access Midstream Partners LP/ACMP Finance Corp.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 6.13%, 7/15/22 |
|
|
|
|
|
|
1,668 |
|
|
|
1,731,854 |
|
| 4.88%, 5/15/23 |
|
|
|
|
|
|
343 |
|
|
|
347,379 |
|
| Anadarko Petroleum Corp., 6.38%, 9/15/17 |
|
|
|
|
|
|
75 |
|
|
|
78,150 |
|
| California Resources Corp., 8.00%, 12/15/22 (c) |
|
|
|
|
|
|
1,492 |
|
|
|
1,007,100 |
|
| Cheniere Corpus Christi Holdings LLC, 7.00%, 6/30/24 (c) |
|
|
|
|
|
|
1,231 |
|
|
|
1,304,860 |
|
| CONSOL Energy, Inc., 5.88%, 4/15/22 |
|
|
|
|
|
|
7,210 |
|
|
|
6,664,744 |
|
| Continental Resources, Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 5.00%, 9/15/22 |
|
|
|
|
|
|
7,519 |
|
|
|
7,368,620 |
|
| 4.50%, 4/15/23 |
|
|
|
|
|
|
469 |
|
|
|
446,723 |
|
| DCP Midstream LLC, 6.75%, 9/15/37 (c) |
|
|
|
|
|
|
1,527 |
|
|
|
1,595,715 |
|
| Denbury Resources, Inc., 9.00%, 5/15/21 (c) |
|
|
|
|
|
|
182 |
|
|
|
187,460 |
|
| Devon Energy Corp., 5.85%, 12/15/25 |
|
|
|
|
|
|
4,000 |
|
|
|
4,585,048 |
|
| El Paso LLC: |
|
|
|
|
|
|
|
|
|
|
|
|
| 7.80%, 8/01/31 |
|
|
|
|
|
|
197 |
|
|
|
244,177 |
|
| 7.75%, 1/15/32 |
|
|
|
|
|
|
4,586 |
|
|
|
5,608,238 |
|
| El Paso Natural Gas Co. LLC, 8.63%, 1/15/22 |
|
|
|
|
|
|
2,345 |
|
|
|
2,923,830 |
|
| El Paso Pipeline Partners Operating Co. LLC, 6.50%, 4/01/20 |
|
|
|
|
|
|
5,075 |
|
|
|
5,693,434 |
|
| Enbridge Energy Partners LP, 9.88%, 3/01/19 (d) |
|
|
|
|
|
|
6,000 |
|
|
|
6,934,974 |
|
| Energy Transfer Equity LP: |
|
|
|
|
|
|
|
|
|
|
|
|
| 7.50%, 10/15/20 |
|
|
|
|
|
|
598 |
|
|
|
651,820 |
|
| 5.88%, 1/15/24 |
|
|
|
|
|
|
5,241 |
|
|
|
5,326,821 |
|
| 5.50%, 6/01/27 |
|
|
|
|
|
|
870 |
|
|
|
848,250 |
|
| Energy Transfer Partners LP: |
|
|
|
|
|
|
|
|
|
|
|
|
| 5.20%, 2/01/22 |
|
|
|
|
|
|
10,200 |
|
|
|
11,179,067 |
|
| 6.13%, 12/15/45 |
|
|
|
|
|
|
3,579 |
|
|
|
3,731,311 |
|
| Enterprise Products Operating LLC: |
|
|
|
|
|
|
|
|
|
|
|
|
| 4.90%, 5/15/46 |
|
|
|
|
|
|
5,375 |
|
|
|
5,530,499 |
|
| Series N, 6.50%, 1/31/19 (d) |
|
|
|
|
|
|
12,000 |
|
|
|
13,274,964 |
|
| Gulfport Energy Corp., 6.00%, 10/15/24 (c) |
|
|
|
|
|
|
444 |
|
|
|
452,325 |
|
| Hilcorp Energy I LP/Hilcorp Finance Co., 5.00%, 12/01/24 (c) |
|
|
|
|
|
|
3,666 |
|
|
|
3,574,350 |
|
| Kinder Morgan Energy Partners LP: |
|
|
|
|
|
|
|
|
|
|
|
|
| 6.85%, 2/15/20 (d) |
|
|
|
|
|
|
12,000 |
|
|
|
13,524,288 |
|
| 4.25%, 9/01/24 |
|
|
|
|
|
|
2,170 |
|
|
|
2,237,292 |
|
| 5.40%, 9/01/44 |
|
|
|
|
|
|
3,615 |
|
|
|
3,621,279 |
|
See Notes to Financial
Statements.
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
| 16 |
|
ANNUAL REPORT |
|
OCTOBER 31, 2016 |
|
|
|
|
|
| Schedule of Investments (continued) |
|
BlackRock Credit Allocation Income Trust (BTZ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Corporate Bonds |
|
Par
(000) |
|
|
Value |
|
| Oil, Gas & Consumable Fuels (continued) |
|
|
|
|
|
|
|
|
|
|
|
|
| MEG Energy Corp. (c): |
|
|
|
|
|
|
|
|
|
|
|
|
| 6.50%, 3/15/21 |
|
|
USD |
|
|
|
3,839 |
|
|
$ |
3,311,137 |
|
| 7.00%, 3/31/24 |
|
|
|
|
|
|
3,100 |
|
|
|
2,542,000 |
|
| Midcontinent Express Pipeline LLC, 6.70%, 9/15/19 (c) |
|
|
|
|
|
|
3,500 |
|
|
|
3,666,250 |
|
| Murphy Oil Corp., 6.88%, 8/15/24 |
|
|
|
|
|
|
752 |
|
|
|
793,326 |
|
| Nexen Energy ULC, 6.40%, 5/15/37 |
|
|
|
|
|
|
2,000 |
|
|
|
2,532,700 |
|
| NGPL PipeCo LLC (c): |
|
|
|
|
|
|
|
|
|
|
|
|
| 7.12%, 12/15/17 |
|
|
|
|
|
|
2,859 |
|
|
|
2,987,655 |
|
| 9.63%, 6/01/19 |
|
|
|
|
|
|
902 |
|
|
|
947,100 |
|
| Noble Energy, Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 5.63%, 5/01/21 |
|
|
|
|
|
|
1,784 |
|
|
|
1,849,726 |
|
| 5.05%, 11/15/44 |
|
|
|
|
|
|
3,500 |
|
|
|
3,531,661 |
|
| ONEOK Partners LP, 8.63%, 3/01/19 (d) |
|
|
|
|
|
|
10,000 |
|
|
|
11,390,800 |
|
| PDC Energy, Inc., 7.75%, 10/15/22 |
|
|
|
|
|
|
1,225 |
|
|
|
1,301,563 |
|
| Petroleos Mexicanos: |
|
|
|
|
|
|
|
|
|
|
|
|
| 3.50%, 1/30/23 (d) |
|
|
|
|
|
|
5,000 |
|
|
|
4,722,500 |
|
| 4.63%, 9/21/23 (c) |
|
|
|
|
|
|
3,965 |
|
|
|
3,954,294 |
|
| 4.88%, 1/18/24 (d) |
|
|
|
|
|
|
2,000 |
|
|
|
2,008,460 |
|
| Pioneer Natural Resources Co., 6.88%, 5/01/18 |
|
|
|
|
|
|
1,665 |
|
|
|
1,784,847 |
|
| Plains All American Pipeline LP/PAA Finance Corp.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 4.70%, 6/15/44 |
|
|
|
|
|
|
1,498 |
|
|
|
1,380,782 |
|
| 4.90%, 2/15/45 |
|
|
|
|
|
|
2,102 |
|
|
|
1,996,192 |
|
| Range Resources Corp., 5.00%, 8/15/22 (c) |
|
|
|
|
|
|
32 |
|
|
|
31,200 |
|
| Rockies Express Pipeline LLC (c): |
|
|
|
|
|
|
|
|
|
|
|
|
| 5.63%, 4/15/20 |
|
|
|
|
|
|
295 |
|
|
|
309,381 |
|
| 6.88%, 4/15/40 |
|
|
|
|
|
|
580 |
|
|
|
604,650 |
|
| RSP Permian, Inc., 6.63%, 10/01/22 |
|
|
|
|
|
|
789 |
|
|
|
831,409 |
|
| Ruby Pipeline LLC, 6.00%, 4/01/22 (c) |
|
|
|
|
|
|
10,000 |
|
|
|
10,292,310 |
|
| Sabine Pass Liquefaction LLC: |
|
|
|
|
|
|
|
|
|
|
|
|
| 5.63%, 4/15/23 |
|
|
|
|
|
|
10,510 |
|
|
|
11,166,875 |
|
| 5.75%, 5/15/24 |
|
|
|
|
|
|
2,575 |
|
|
|
2,723,062 |
|
| 5.88%, 6/30/26 (c) |
|
|
|
|
|
|
1,481 |
|
|
|
1,596,074 |
|
| 5.00%, 3/15/27 (c) |
|
|
|
|
|
|
774 |
|
|
|
787,545 |
|
| Sabine Pass LNG LP, 7.50%, 11/30/16 |
|
|
|
|
|
|
4,471 |
|
|
|
4,488,437 |
|
| Sanchez Energy Corp.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 7.75%, 6/15/21 |
|
|
|
|
|
|
153 |
|
|
|
142,290 |
|
| 6.13%, 1/15/23 |
|
|
|
|
|
|
2,119 |
|
|
|
1,811,745 |
|
| SM Energy Co.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 6.50%, 1/01/23 |
|
|
|
|
|
|
177 |
|
|
|
176,115 |
|
| 5.00%, 1/15/24 |
|
|
|
|
|
|
181 |
|
|
|
168,330 |
|
| Southwestern Energy Co.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 7.50%, 2/01/18 |
|
|
|
|
|
|
63 |
|
|
|
65,993 |
|
| 5.80%, 1/23/20 |
|
|
|
|
|
|
1,166 |
|
|
|
1,160,170 |
|
| 4.10%, 3/15/22 |
|
|
|
|
|
|
710 |
|
|
|
635,450 |
|
| 6.70%, 1/23/25 |
|
|
|
|
|
|
169 |
|
|
|
160,973 |
|
| Targa Resources Partners LP/Targa Resources Partners Finance Corp.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 6.88%, 2/01/21 |
|
|
|
|
|
|
1,449 |
|
|
|
1,499,715 |
|
| 6.38%, 8/01/22 |
|
|
|
|
|
|
255 |
|
|
|
262,650 |
|
| 5.25%, 5/01/23 |
|
|
|
|
|
|
37 |
|
|
|
36,726 |
|
| 6.75%, 3/15/24 |
|
|
|
|
|
|
184 |
|
|
|
196,880 |
|
| Tesoro Logistics LP/Tesoro Logistics Finance Corp.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 6.13%, 10/15/21 |
|
|
|
|
|
|
125 |
|
|
|
130,781 |
|
| 6.25%, 10/15/22 |
|
|
|
|
|
|
1,519 |
|
|
|
1,610,140 |
|
| 6.38%, 5/01/24 |
|
|
|
|
|
|
342 |
|
|
|
368,505 |
|
| TransCanada PipeLines Ltd., 4.88%, 1/15/26 |
|
|
|
|
|
|
4,485 |
|
|
|
5,142,873 |
|
| Weatherford International Ltd.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 4.50%, 4/15/22 |
|
|
|
|
|
|
75 |
|
|
|
67,500 |
|
| 6.50%, 8/01/36 |
|
|
|
|
|
|
45 |
|
|
|
35,550 |
|
| Western Gas Partners LP, 5.38%, 6/01/21 |
|
|
|
|
|
|
5,125 |
|
|
|
5,588,326 |
|
| Whiting Petroleum Corp.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 6.25%, 4/01/23 (i) |
|
|
|
|
|
|
116 |
|
|
|
113,602 |
|
| 6.25%, 4/01/23 |
|
|
|
|
|
|
1,697 |
|
|
|
1,565,483 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Corporate Bonds |
|
Par
(000) |
|
|
Value |
|
| Oil, Gas & Consumable Fuels (continued) |
|
|
|
|
|
|
|
|
|
|
|
|
| Williams Cos., Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 3.70%, 1/15/23 |
|
|
USD |
|
|
|
2,245 |
|
|
$ |
2,172,037 |
|
| 4.55%, 6/24/24 |
|
|
|
|
|
|
1,253 |
|
|
|
1,274,928 |
|
| 8.75%, 3/15/32 |
|
|
|
|
|
|
2,478 |
|
|
|
3,060,330 |
|
| 5.75%, 6/24/44 |
|
|
|
|
|
|
685 |
|
|
|
699,984 |
|
| Williams Partners LP, 5.10%, 9/15/45 |
|
|
|
|
|
|
5,075 |
|
|
|
4,876,882 |
|
| WPX Energy, Inc., 6.00%, 1/15/22 |
|
|
|
|
|
|
164 |
|
|
|
163,590 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
227,394,056 |
|
| Paper & Forest Products — 2.0% |
|
|
|
|
|
|
|
|
|
|
|
|
| International Paper Co. (d): |
|
|
|
|
|
|
|
|
|
|
|
|
| 7.50%, 8/15/21 |
|
|
|
|
|
|
9,675 |
|
|
|
11,883,309 |
|
| 8.70%, 6/15/38 |
|
|
|
|
|
|
4,000 |
|
|
|
5,892,964 |
|
| 7.30%, 11/15/39 |
|
|
|
|
|
|
10,000 |
|
|
|
13,146,570 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
30,922,843 |
|
| Pharmaceuticals — 3.7% |
|
|
|
|
|
|
|
|
|
|
|
|
| AbbVie, Inc. (d): |
|
|
|
|
|
|
|
|
|
|
|
|
| 2.90%, 11/06/22 |
|
|
|
|
|
|
5,675 |
|
|
|
5,744,587 |
|
| 4.70%, 5/14/45 |
|
|
|
|
|
|
3,255 |
|
|
|
3,358,343 |
|
| Actavis Funding SCS: |
|
|
|
|
|
|
|
|
|
|
|
|
| 3.45%, 3/15/22 |
|
|
|
|
|
|
7,335 |
|
|
|
7,615,204 |
|
| 3.85%, 6/15/24 |
|
|
|
|
|
|
6,000 |
|
|
|
6,241,230 |
|
| 4.75%, 3/15/45 |
|
|
|
|
|
|
1,450 |
|
|
|
1,520,951 |
|
| Endo Finance LLC/Endo Finco, Inc. (c): |
|
|
|
|
|
|
|
|
|
|
|
|
| 6.00%, 7/15/23 |
|
|
|
|
|
|
1,514 |
|
|
|
1,317,180 |
|
| 6.50%, 2/01/25 |
|
|
|
|
|
|
730 |
|
|
|
615,025 |
|
| Forest Laboratories, Inc. (c): |
|
|
|
|
|
|
|
|
|
|
|
|
| 4.38%, 2/01/19 |
|
|
|
|
|
|
2,924 |
|
|
|
3,071,384 |
|
| 5.00%, 12/15/21 |
|
|
|
|
|
|
1,631 |
|
|
|
1,820,662 |
|
| Grifols Worldwide Operations Ltd., 5.25%, 4/01/22 |
|
|
|
|
|
|
1,613 |
|
|
|
1,681,553 |
|
| Merck & Co., Inc., 6.50%, 12/01/33 |
|
|
|
|
|
|
6,420 |
|
|
|
8,707,433 |
|
| Mylan NV, 3.95%, 6/15/26 (c) |
|
|
|
|
|
|
7,500 |
|
|
|
7,480,650 |
|
| Valeant Pharmaceuticals International, Inc. (c): |
|
|
|
|
|
|
|
|
|
|
|
|
| 6.75%, 8/15/18 |
|
|
|
|
|
|
6,135 |
|
|
|
5,987,760 |
|
| 5.38%, 3/15/20 |
|
|
|
|
|
|
62 |
|
|
|
53,630 |
|
| 7.00%, 10/01/20 |
|
|
|
|
|
|
447 |
|
|
|
400,065 |
|
| 6.38%, 10/15/20 |
|
|
|
|
|
|
1,015 |
|
|
|
875,438 |
|
| 7.50%, 7/15/21 |
|
|
|
|
|
|
273 |
|
|
|
242,970 |
|
| 5.63%, 12/01/21 |
|
|
|
|
|
|
1,137 |
|
|
|
932,340 |
|
| 5.50%, 3/01/23 |
|
|
|
|
|
|
31 |
|
|
|
24,335 |
|
| 5.88%, 5/15/23 |
|
|
|
|
|
|
665 |
|
|
|
523,688 |
|
| 6.13%, 4/15/25 |
|
|
|
|
|
|
116 |
|
|
|
91,640 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
58,306,068 |
|
| Professional Services — 0.4% |
|
|
|
|
|
|
|
|
|
|
|
|
| Dun & Bradstreet Corp., 3.25%, 12/01/17 |
|
|
|
|
|
|
5,750 |
|
|
|
5,835,186 |
|
| Real Estate Investment Trusts (REITs) — 3.2% |
|
|
|
|
|
|
|
|
|
|
|
|
| American Tower Corp.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 4.50%, 1/15/18 |
|
|
|
|
|
|
6,500 |
|
|
|
6,719,758 |
|
| 5.05%, 9/01/20 |
|
|
|
|
|
|
500 |
|
|
|
550,252 |
|
| 5.90%, 11/01/21 (d) |
|
|
|
|
|
|
3,770 |
|
|
|
4,359,123 |
|
| AvalonBay Communities, Inc., 6.10%, 3/15/20 |
|
|
|
|
|
|
10,000 |
|
|
|
11,357,080 |
|
| DDR Corp.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 4.75%, 4/15/18 |
|
|
|
|
|
|
2,140 |
|
|
|
2,215,872 |
|
| 7.88%, 9/01/20 |
|
|
|
|
|
|
2,650 |
|
|
|
3,158,811 |
|
| ERP Operating LP, 5.75%, 6/15/17 (d) |
|
|
|
|
|
|
10,000 |
|
|
|
10,276,570 |
|
| Hilton Domestic Operating Co., Inc., 4.25%, 9/01/24 (c) |
|
|
|
|
|
|
881 |
|
|
|
883,202 |
|
| Host Hotels & Resorts LP, 3.75%, 10/15/23 (d) |
|
|
|
|
|
|
3,600 |
|
|
|
3,624,617 |
|
| iStar, Inc., 4.00%, 11/01/17 |
|
|
|
|
|
|
825 |
|
|
|
826,031 |
|
| MGM Growth Properties Operating Partnership LP/MGP Finance Co-Issuer, Inc.,
4.50%, 9/01/26 (c) |
|
|
|
|
|
|
740 |
|
|
|
727,050 |
|
| UDR, Inc., 4.25%, 6/01/18 (d) |
|
|
|
|
|
|
5,225 |
|
|
|
5,438,692 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
50,137,058 |
|
See Notes to Financial
Statements.
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
ANNUAL REPORT |
|
OCTOBER 31, 2016 |
|
17 |
|
|
|
| Schedule of Investments (continued) |
|
BlackRock Credit Allocation Income Trust (BTZ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Corporate Bonds |
|
Par
(000) |
|
|
Value |
|
| Real Estate Management & Development — 0.4% |
|
|
|
|
|
| Northwest Florida Timber Finance LLC, 4.75%, 3/04/29 (c)(d) |
|
|
USD |
|
|
|
4,485 |
|
|
$ |
4,043,142 |
|
| Realogy Group LLC/Realogy Co-Issuer Corp. (c): |
|
|
|
|
|
|
|
|
|
|
|
|
| 4.50%, 4/15/19 |
|
|
|
|
|
|
803 |
|
|
|
833,113 |
|
| 5.25%, 12/01/21 |
|
|
|
|
|
|
344 |
|
|
|
361,630 |
|
| 4.88%, 6/01/23 |
|
|
|
|
|
|
1,332 |
|
|
|
1,332,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
6,569,885 |
|
| Road & Rail — 1.1% |
|
|
|
|
|
|
|
|
|
|
|
|
| Hertz Corp.: |
|
|
|
|
|
|
|
|
|
|
|
|
| 6.75%, 4/15/19 |
|
|
|
|
|
|
420 |
|
|
|
428,488 |
|
| 5.88%, 10/15/20 |
|
|
|
|
|
|
925 |
|
|
|
950,438 |
|
| 7.38%, 1/15/21 |
|
|
|
|
|
|
310 |
|
|
|
319,300 |
|
| 5.50%, 10/15/24 (c) |
|
|
|
|
|
|
954 |
|
|
|
926,239 |
|
| Norfolk Southern Corp., 6.00%, 3/15/05 |
|
|
|
|
|
|
12,700 |
|
|
|
14,690,115 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
17,314,580 |
|
| Semiconductors & Semiconductor Equipment — 0.3% |
|
| NXP BV/NXP Funding LLC (c): |
|
|
|
|
|
|
|
|
|
|
|
|
| 4.13%, 6/15/20 |
|
|
|
|
|
|
951 |
|
|
|
1,003,305 |
|
| 4.13%, 6/01/21 |
|
|
|
|
|
|
1,461 |
|
|
|
1,559,617 |
|
| 4.63%, 6/15/22 |
|
|
|
|
|
|
490 |
|
|
|
534,100 |
|
| 4.63%, 6/01/23 |
|
|
|
|
|
|
204 |
|
|
|
223,380 |
|
| Sensata Technologies BV, 5.00%, 10/01/25 (c) |
|
|
|
|
|
|
1,418 |
|
|
|
1,453,450 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
4,773,852 |
|
| Software — 0.9% |
|
|
|
|
|
|
|
|
|
|
|
|
| Inception Merger Sub, Inc./Rackspace Hosting, Inc., 8.63%, 11/15/24 (c)(f) |
|
|
|
|
|
|
2,034 |
|
|
|
2,034,000 |
|
| Infor US, Inc., 6.50%, 5/15/22 |
|
|
|
|
|
|
2,425 |
|
|
|
2,506,844 |
|
| Informatica LLC, 7.13%, 7/15/23 (c) |
|
|
|
|
|
|
477 |
|
|
|
444,802 |
|
| |