Edgar Filing: BLACKROCK FLOATING RATE INCOME TRUST

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 52^nd Street, New York, NY 10055

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

Date of fiscal year end: 10/31/2017

Date of reporting period: 10/31/2017

Item 1 – Report to Stockholders

OCTOBER 31, 2017


ANNUAL REPORT

BlackRock Credit Allocation Income Trust (BTZ)

BlackRock Floating Rate Income Trust (BGT)

BlackRock Multi-Sector Income Trust (BIT)

Not FDIC Insured • May Lose Value • No Bank Guarantee

The Markets in Review

Dear Shareholder,

In the 12 months ended October 31, 2017, risk assets, such as stocks and high-yield bonds, continued to deliver strong performance. These markets showed great resilience during a period with big political surprises, including the aftermath of the U.K.’s vote to leave the European Union and the outcome of the U.S. presidential election, which brought only brief spikes in equity market volatility. In contrast, closely watched elections in France, the Netherlands, and Australia countered the isolationist and nationalist political developments in the U.K. and the United States.

Interest rates rose, which worked against high-quality assets with more interest rate sensitivity. Consequently, longer-term U.S. Treasuries posted negative returns, as rising energy prices, modest wage increases, and steady job growth led to expectations of higher inflation and further interest rate increases by the U.S. Federal Reserve (the “Fed”).

The market’s performance reflected reflationary expectations early in the reporting period, as investors began to sense that a global recovery was afoot. Thereafter, many countries throughout the world experienced sustained and synchronized growth for the first time since the financial crisis. Growth rates and inflation are still relatively low, but they are finally rising together.

The Fed responded to these positive developments by increasing short-term interest rates three times and setting expectations for additional interest rate increases. The Fed also began reducing the vast balance sheet reserves that had accumulated in the wake of the financial crisis. In October 2017, the Fed reduced its $4.5 trillion balance sheet by only $10 billion, while setting expectations for additional modest reductions and rate hikes in 2018.

By contrast, the European Central Bank (“ECB”) and the Bank of Japan (“BoJ”) both continued to expand their balance sheets despite nascent signs of sustained economic growth. The Eurozone and Japan are both approaching the limits of central banks’ ownership share of debt issued by their respective governments, which is a structural pressure point that limits their capacity to deliver additional monetary stimulus. In October 2017, the ECB announced plans to cut the amount of its bond purchases in half for 2018, while the BoJ reiterated its commitment to economic stimulus until the inflation rate rises to its target of 2.0%.

Emerging market growth also stabilized, as accelerating growth in China, the second largest economy in the world and the most influential of all developing economies, improved the outlook for corporate profits and economic growth across most developing nations. Chinese demand for commodities and other raw materials allayed concerns about the country’s banking system, leading to rising equity prices and foreign investment flows.

While escalating tensions between the United States and North Korea and our nation’s divided politics are significant concerns, benign credit conditions, modest inflation, solid corporate earnings, and the positive outlook for growth in the world’s largest economies have kept markets relatively tranquil.

High valuations across most assets have laid the groundwork for muted returns going forward. At current valuation levels, potential equity gains will likely be closely tied to the pace of earnings growth, which has remained solid thus far in 2017, particularly in emerging markets. In this environment, investors need to think globally, extend their scope across a broad array of asset classes, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit blackrock.com for further insight about investing in today’s markets.

Sincerely,

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

LOGO

Rob Kapito

President, BlackRock Advisors, LLC


Total Returns as of October 31, 2017
	6-month	12-month
U.S. large cap equities (S&P 500^® Index)	9.10%	23.63%
U.S. small cap equities (Russell 2000^® Index)	8.01	27.85
International equities (MSCI Europe, Australasia, Far East Index)	10.74	23.44
Emerging market equities (MSCI Emerging Markets Index)	16.14	26.45
3-month Treasury bills (BofA Merrill Lynch 3-Month U.S. Treasury Bill Index)	0.49	0.72
U.S. Treasury securities (BofA Merrill Lynch 10-Year U.S. Treasury Index)	0.15	(2.98)
U.S. investment grade bonds (Bloomberg Barclays U.S. Aggregate Bond Index)	1.58	0.90
Tax-exempt municipal bonds (S&P Municipal Bond Index)	2.22	1.80
U.S. high yield bonds (Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index)	3.44	8.92
Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.


2		THIS PAGE IS NOT PART OF YOUR FUND REPORT

Table of Contents


	Page
The Markets in Review		2
Annual Report:
Trust Summaries		4
The Benefits and Risks of Leveraging		13
Derivative Financial Instruments		13
Financial Statements:
Schedules of Investments		14
Statements of Assets and Liabilities		83
Statements of Operations		85
Statements of Changes in Net Assets		86
Statements of Cash Flows		88
Financial Highlights		90
Notes to Financial Statements		93
Report of Independent Registered Public Accounting Firm		106
Important Tax Information		106
Disclosure of Investment Advisory Agreements and Sub-Advisory Agreement		107
Automatic Dividend Reinvestment Plan		111
Trustee and Officer Information		112
Additional Information		115
Glossary of Terms Used in this Report		118


			3


Trust Summary as of October 31, 2017		BlackRock Credit Allocation Income Trust

Investment Objective

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.

Trust Information


Symbol on New York Stock Exchange (“NYSE”)		BTZ
Initial Offering Date		December 27, 2006
Current Distribution Rate on Closing Market Price as of October 31, 2017 ($13.36)^(a)		6.02%
Current Monthly Distribution per Common Share^(b)		$0.067
Current Annualized Distribution per Common Share^(b)		$0.804
Economic Leverage as of October 31, 2017^(c)		23%

^(a)

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.

^(b)

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.

^(c)

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 its 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 13.

Market Price and Net Asset Value Per Share Summary


	10/31/17		10/31/16		Change			High		Low
Market Price	$	13.36	$	12.87		3.81	%	$	13.66	$	12.06
Net Asset Value		14.88		14.61		1.85			14.93		14.14

Market Price and Net Asset Value History For the Past Five Years

LOGO


4		2017 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Trust Summary as of October 31, 2017 (continued)		BlackRock Credit Allocation Income Trust

Performance and Portfolio Management Commentary

Returns for the period ended October 31, 2017 were as follows:


	Average Annual Total Returns
	1 Year			3 Years			5 Years
Trust at NAV^(a)(b)		8.53	%		6.13	%		6.65	%
Trust at Market Price^(a)(b)		10.62			6.78			6.00
Reference Benchmark^(c)		5.48			4.62			4.58
Bloomberg Barclays U.S. Credit Index^(d)		3.18			3.62			3.07
Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index^(e)		8.92			5.58			6.27
Bloomberg Barclays USD Capital Securities Index^(f)		6.25			5.57			5.81

^(a)

All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices. Performance results reflect the Trust’s use of leverage.

^(b)

The Trust’s discount to NAV narrowed during the period, which accounts for the difference between performance based on market price and performance based on NAV.

^(c)

The Reference Benchmark is comprised of the Bloomberg Barclays U.S. Credit Index (50.36%), the Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index (29.93%), and the Bloomberg Barclays USD Capital Securities Index (19.71%).

^(d)

This unmanaged index measures the investment grade, U.S. dollar-denominated, fixed-rate, taxable corporate and government-related bond markets.

^(e)

An unmanaged index comprised of issues that meet the following criteria: at least $150 million par value outstanding; maximum credit rating of Ba1; at least one year to maturity; and no issuer represents more than 2% of the index.

^(f)

This unmanaged index tracks fixed-rate, investment grade capital securities denominated in USD.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Past performance is not indicative of future results.

Beginning with this reporting period, BTZ is presenting the Reference Benchmark to accompany trust performance. The Reference Benchmark is presented for informational purposes only, as the Trust is actively managed and does not seek to track or replicate the performance of the Reference Benchmark or any other index. The portfolio investments of the Trust may differ substantially from the securities that comprise the indices within the Reference Benchmark, which may cause the Trust’s performance to differ materially from that of the Reference Benchmark. The Trust employs leverage as part of its investment strategy, which may change over time at the discretion of BlackRock Advisors, LLC (the “Manager”) as market and other conditions warrant. In contrast, the Reference Benchmark is not adjusted for leverage. Therefore, leverage generally may result in the Trust outperforming the Reference Benchmark in rising markets and underperforming in declining markets. The Board considers additional factors to evaluate the Trust’s performance, such as the performance of the Trust relative to a peer group of funds, a leverage-adjusted benchmark and/or other information provided by the Manager.

More information about the Trust’s historical performance can be found in the “Closed End Funds” section of http://www.blackrock.com.

The following discussion relates to the Trust’s absolute performance based on NAV:

What factors influenced performance?

•

Positive contributors to performance during the period included the Trust’s exposure to capital securities (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). In terms of industries, holdings within midstream energy generated positive performance as companies there are benefiting from improved balance sheet fundamentals and a more favorable regulatory environment. Additionally, utilities and U.S. banks added to performance. Exposure to high yield bonds also contributed positively to performance on an absolute basis. Finally, positioning with respect to duration (and corresponding interest rate sensitivity) and yield curve positioning helped generate positive performance as well.

•

There were no detractors from the Trust’s performance on an absolute basis.

Describe recent portfolio activity.

•

The Trust tactically shortened duration early in the period in preparation for rates moving higher as a result of the reflationary environment and anticipated pro-growth policy initiatives. The Trust has had a preference for high quality assets given the compression in spreads seen during the reporting period, which has resulted in an environment with little dispersion in terms of opportunities to generate performance. The Trust maintained significant positions in banking, midstream energy, wirelines, and electric utilities throughout the period. The allocation to media names was reduced as industry disruption and merger and acquisition activity led to increased volatility in the sector.

Describe portfolio positioning at period end.

•

Despite somewhat rich valuations, the Trust was positioned with a constructive view on credit, on the basis that an extended credit cycle is supported by improved growth and the Fed’s effective telegraphing of its plans for tightening policy. The Trust ended the period with a significant allocation to the banking sector with a focus on capital securities down in the capital structure. The Trust also held select midstream energy names on the view that the energy industry is stabilizing.

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


TRUST SUMMARY			5


Trust Summary as of October 31, 2017 (continued)		BlackRock Credit Allocation Income Trust

Overview of the Trust’s Total Investments

PORTFOLIO COMPOSITION


	10/31/17			10/31/16
Corporate Bonds		73	%		71	%
Preferred Securities		19			17
Asset-Backed Securities		3			4
Foreign Agency Obligations		2			1
U.S. Treasury Obligations		1			6
Municipal Bonds		1			1
Other		1	^(a)		—	^(b)

^(a)

Includes a less than 1% holding in each of the following investment types: Short-Term Securities, U.S. Government Sponsored Agency Securities and Options Purchased.

^(b)

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.

CREDIT QUALITY ALLOCATION^(c)(d)


	10/31/17			10/31/16
AAA/Aaa^(e)		2	%		7	%
AA/Aa		3			3
A		16			17
BBB/Baa		51			47
BB/Ba		19			16
B		8			8
CCC/Caa		1			1
CC/Ca		—	^(f)		—
N/R		—			1

^(c)

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.

^(d)

Excludes Short-Term Securities, Options Purchased and Options Written.

^(e)

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.

^(f)

Represents less than 1% of total investments.


6		2017 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Trust Summary as of October 31, 2017		BlackRock Floating Rate Income Trust

Investment Objective

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 to the extent consistent with its primary objective of high current income. 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.

Trust Information


Symbol on NYSE		BGT
Initial Offering Date		August 30, 2004
Current Distribution Rate on Closing Market Price as of October 31, 2017 ($14.31)^(a)		4.89%
Current Monthly Distribution per Common Share^(b)		$0.0583
Current Annualized Distribution per Common Share^(b)		$0.6996
Economic Leverage as of October 31, 2017^(c)		30%

^(a)

^(b)

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.

^(c)

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 its 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 13.

Market Price and Net Asset Value Per Share Summary


	10/31/17		10/31/16		Change			High		Low
Market Price	$	14.31	$	13.58		5.38	%	$	14.79	$	13.23
Net Asset Value		14.49		14.41		0.56			14.59		14.30

Market Price and Net Asset Value History For the Past Five Years

LOGO


TRUST SUMMARY			7


Trust Summary as of October 31, 2017 (continued)		BlackRock Floating Rate Income Trust

Performance and Portfolio Management Commentary

Returns for the period ended October 31, 2017 were as follows:


	Average Annual Total Returns
	1 Year			3 Years			5 Years
Trust at NAV^(a)(b)		6.13	%		5.63	%		6.16	%
Trust at Market Price^(a)(b)		11.21			8.77			5.11
S&P/LSTA Leveraged Loan Index^(c)		5.06			3.99			4.15

^(a)

All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices. Performance results reflect the Trust’s use of leverage.

^(b)

The Trust’s discount to NAV narrowed during the period, which accounts for the difference between performance based on market price and performance based on NAV.

^(c)

This unmanaged market value-weighted index (the “Reference Benchmark”) is designed to measure the performance of the U.S. leveraged loan market based upon market weightings, spreads and interest payments.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Past performance is not indicative of future results.

Beginning with this reporting period, BGT is presenting the Reference Benchmark to accompany trust performance. The Reference Benchmark is presented for informational purposes only, as the Trust is actively managed and does not seek to track or replicate the performance of the Reference Benchmark or any other index. The portfolio investments of the Trust may differ substantially from the securities that comprise the indices within the Reference Benchmark, which may cause the Trust’s performance to differ materially from that of the Reference Benchmark. The Trust employs leverage as part of its investment strategy, which may change over time at the discretion of BlackRock Advisors, LLC (the “Manager”) as market and other conditions warrant. In contrast, the Reference Benchmark is not adjusted for leverage. Therefore, leverage generally may result in the Trust outperforming the Reference Benchmark in rising markets and underperforming in declining markets. The Board considers additional factors to evaluate the Trust’s performance, such as the performance of the Trust relative to a peer group of funds, a leverage-adjusted benchmark and/or other information provided by the Manager.

More information about the Trust’s historical performance can be found in the “Closed End Funds” section of http://www.blackrock.com.

The following discussion relates to the Trust’s absolute performance based on NAV:

What factors influenced performance?

•

The broad floating rate loan interest (“bank loan”) market provided a positive return for the 12-month period. Among the most notable drivers of positive returns in the Trust were allocations to the technology, health care and consumer cyclical sectors. The Trust’s B-rated, BB-rated, and CCC-rated positions positively contributed to performance. The Trust’s tactical allocations to high yield bonds, equities and collateralized loan obligations also benefited performance, as these segments outperformed bank loans over the 12-month period.

•

The Trust’s exposure to retailers and supermarkets was the leading detractor from performance, as secular changes in consumer spending behavior, shifting fashion trends, excess capacity, and uncertainty around fiscal reform all weighed on the segments. In terms of credit quality, the Trust’s lack of holdings in CC-rated, D-rated, and C-rated names detracted from performance.

Describe recent portfolio activity.

•

The Trust maintained its focus on the higher quality segments of the loan market in terms of loan structure, liquidity and overall credit quality, while gradually adding market risk as the 12-month period progressed. The majority of the Trust was invested in B-rated bank loans, followed by BB-rated names. Over the course of the period, the Trust increased its B-rated allocation while reducing positions in BB-rated names. On a sector basis, the Trust reduced its broad consumer cyclical allocation, trimming retailers specifically as the sector faces fundamental challenges. By contrast, the Trust increased its energy exposure, particularly within the higher-quality independent energy sector. Finally, with the bank loan market increasingly trading above par value, the Trust added to its high yield bond position based on relative valuation.

Describe portfolio positioning at period end.

•

At period end, the Trust held the majority of its portfolio in rated bank loans, with a meaningful position in high yield corporate bonds as well. The Trust maintained its highest concentration in B-rated loans of select issuers, while limiting exposure to both higher quality loans with less compelling risk/reward profiles and lower-rated loans with more equity-like profiles and greater downside risk should credit sentiment weaken. From a sector perspective, the Trust’s largest overweight positions were within the cable & satellite, wireless, and gaming sectors. By contrast, the Trust was underweight in retail and leisure, where fundamentals have continued to deteriorate. Within energy, the Trust was focused on higher-quality issuers within the independent energy segment. The Trust remained focused on industries and companies with stable business profiles and consistent cash flows, avoiding areas of the market with secular concerns and/or deteriorating fundamental trends. Top issuer positions included Altice (wireless), Centurylink (wirelines) and Liberty Global (cable & satellite).


8		2017 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Trust Summary as of October 31, 2017 (continued)		BlackRock Floating Rate Income Trust

Overview of the Trust’s Total Investments

PORTFOLIO COMPOSITION


	10/31/17			10/31/16
Floating Rate Loan Interests		93	%		92	%
Corporate Bonds		5			4
Asset-Backed Securities		1			2
Short-Term Securities		—	^(a)		2
Other		1	^(b)		—	^(c)

^(a)

Represents less than 1% of total investments.

^(b)

Includes a less than 1% holding in each of the following investment types: Common Stocks, Other Interests, Rights, Warrants, Short-Term Securities and Options Purchased.

^(c)

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.

CREDIT QUALITY ALLOCATION^(d)(e)


	10/31/17			10/31/16
A		1	%		—	^(a)
BBB/Baa		8			8	%
BB/Ba		42			43
B		42			41
CCC/Caa		3			3
N/R		4			5

^(d)

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.

^(e)

Excludes Short-Term Securities and Options Purchased.


TRUST SUMMARY			9


Trust Summary as of October 31, 2017		BlackRock Multi-Sector Income Trust

Investment Objective

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. Additionally, as part of the Trust’s investments in loans, the Trust may make loans directly to borrowers either as sole lender or by acting as a member of a syndicate of original lenders.

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

Trust Information


Symbol on NYSE		BIT
Initial Offering Date		February 27, 2013
Current Distribution Rate on Closing Market Price as of October 31, 2017 ($18.55)^(a)		7.55%
Current Monthly Distribution per Common Share^(b)		$0.1167
Current Annualized Distribution per Common Share^(b)		$1.4004
Economic Leverage as of October 31, 2017^(c)		38%

^(a)

^(b)

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.

^(c)

Market Price and Net Asset Value Per Share Summary


	10/31/17		10/31/16		Change			High		Low
Market Price	$	18.55	$	16.76		10.68	%	$	18.77	$	15.53
Net Asset Value		20.07		18.91		6.13			20.09		18.28

Market Price and Net Asset Value History Since Inception

LOGO

^(a)	Commencement of operations.


10		2017 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Trust Summary as of October 31, 2017 (continued)		BlackRock Multi-Sector Income Trust

Performance and Portfolio Management Commentary

Returns for the period ended October 31, 2017 were as follows:


	Average Annual Total Returns
	1 Year			3 Years			Since Inception^(a)
Trust at NAV^(b)(c)		17.34	%		10.38	%		10.41	%
Trust at Market Price^(b)(c)		22.36			11.61			7.51
Lipper General Bond Funds at NAV^(d)		11.20			6.38			6.46	^(e)
Lipper General Bond Funds at Market Price^(d)		14.75			8.52			6.01	^(e)

^(a)

The Trust commenced operations on February 27, 2013.

^(b)

All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices. Performance results reflect the Trust’s use of leverage.

^(c)

The Trust’s discount to NAV narrowed during the period, which accounts for the difference between performance based on market price and performance based on NAV.

^(d)

Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend date as calculated by Lipper. Historical performance shown is calculated based on the composition of the Lipper General Bond Fund category at the time of preparation of this report to shareholders.

^(e)

The Lipper category average return for the since inception period is from the close of February 28, 2013. Therefore, the category average is using 1 less day of performance (February 28, 2013) compared to the Trust (February 27, 2013).

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Past performance is not indicative of future results.

More information about the Trust’s historical performance can be found in the “Closed End Funds” section of http://www.blackrock.com.

The following discussion relates to the Trust’s absolute performance based on NAV:

What factors influenced performance?

•

The Trust’s positions in non-agency mortgage-backed securities (“MBS”), high yield corporate bonds, senior loans, commercial mortgage backed securities (“CMBS”) and capital securities were the largest positive contributors to return for the 12-month period. The Trust’s allocation to asset-backed securities (“ABS”), investment grade corporate debt and emerging market debt also supported absolute returns.

•

The Trust’s stance with respect to duration (sensitivity to interest rate movements) and yield curve positioning detracted from performance during the period.

Describe recent portfolio activity.

•

The Trust’s spread sector exposure was rotated out of ABS and investment grade corporate bonds and into non-agency MBS, capital securities and emerging market sovereign names. The Trust’s duration exposure increased over the period from 3.4 years to 3.9 years. The spread sector rotations over the period were based on the view that the upturn in global economic growth, low volatility and generally robust U.S. economic data are supportive of risk assets.

Describe portfolio positioning at period end.

•

At period end, the Trust maintained a diversified exposure within non-government spread sectors, including non-agency MBS, high yield corporates, capital securities, ABS, collateralized loan obligations, CMBS, emerging market debt and senior loans. The Trust also held marginal exposure to government-related sectors such as foreign agency obligations.


TRUST SUMMARY			11


Trust Summary as of October 31, 2017 (continued)		BlackRock Multi-Sector Income Trust

Overview of the Trust’s Total Investments

PORTFOLIO COMPOSITION


	10/31/17			10/31/16
Corporate Bonds		42	%		41	%
Asset-Backed Securities		17			19
Non-Agency Mortgage-Backed Securities		13			18
Preferred Securities		11			12
Foreign Agency Obligations		6			4
Floating Rate Loan Interests		9			5
U.S. Government Sponsored Agency Securities		2			—
Short-Term Securities		—	^(a)		1
Other		—	^(b)		—	^(c)

^(a)

Represents less than 1% of total investments.

^(b)

Includes a less than 1% holding in each of the following investment types: Common Stocks, Options Purchased, Options Written, and Short-Term Securities.

^(c)

Includes a less than 1% holding in each of the following investment types: Common Stocks, U.S. Treasury Obligations, Options Purchased and Options Written.

CREDIT QUALITY ALLOCATION^(d)(e)


	10/31/17			10/31/16
AAA/Aaa^(f)		—	^(a)		—	^(a)
AA/Aa		1	%		2	%
A		5			8
BBB/Baa		16			18
BB/Ba		29			22
B		18			20
CCC/Caa		16			16
CC/Ca		—	^(a)		5
C		4			1
N/R		11			8

^(d)

^(e)

Excludes Short-Term Securities, Options Purchased and Options Written.

^(f)


12		2017 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

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 Common Shares 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 Trusts’ 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”), each Trust is permitted to issue debt up to 33¹⁄₃% of its 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 a value 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 imposed by 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. BIT may use economic leverage up to 100% of its net assets (50% of its total managed assets). 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.


THE BENEFITS AND RISKS OF LEVERAGING / DERIVATIVE FINANCIAL INSTRUMENTS			13

Schedule of Investments

October 31, 2017

BlackRock Credit Allocation Income Trust (BTZ)

(Percentages shown are based on Net Assets)


Security	Par (000)			Value
Asset-Backed Securities

Asset-Backed Securities — 4.5%
ALM XIV Ltd., Series 2014-14A, Class C, (3 mo. LIBOR US + 3.45%), 4.83%, 7/28/26^(a)(b)		USD	4,500	$	4,522,862
ALM XVII Ltd., Series 2015-17A, Class B1, (3 mo. LIBOR US + 3.40%), 4.76%, 1/15/28^(a)(b)			1,400		1,425,101
AMMC CLO Ltd., Series 2015-17A, Class C, (3 mo. LIBOR US + 3.25%), 4.57%, 11/15/27^(a)(b)			1,000		1,000,360
Anchorage Capital CLO Ltd.^(b):
Series 2013-1A, Class BR, 3.51%, 10/13/30^(c)(d)			1,000		1,000,000
Series 2014-3A, Class C, (3 mo. LIBOR US + 3.50%), 4.88%, 4/28/26^(a)			1,000		1,001,046
Series 2015-7A, Class CR, 3.06%, 10/15/27^(c)			1,000		1,001,300
Series 2015-7A, Class DR, 4.06%, 10/15/27^(c)			1,000		1,006,138
Apidos CLO XVIII, Series 2014-18A, Class CR, (3 mo. LIBOR US + 3.25%), 4.61%, 7/22/26^(a)(b)			1,300		1,314,973
Ares CLO Ltd., 1.00%, 10/15/30^(b)(c)			2,750		2,750,000
Atlas Senior Loan Fund II Ltd., Series 2012-2A, Class DR, (3 mo. LIBOR US + 3.90%), 5.28%, 1/30/24^(a)(b)			750		753,738
Atlas Senior Loan Fund VI Ltd., Series 2014-6A, Class DR, (3 mo. LIBOR US + 3.60%), 4.96%, 10/15/26^(a)(b)			2,500		2,505,282
Atrium X, Series 10A, Class DR, (3 mo. LIBOR US + 3.00%), 4.36%, 7/16/25^(a)(b)			1,500		1,500,724
Benefit Street Partners CLO XII Ltd., Series 2017-12A^(b)(c):
Class B, 3.35%, 10/15/30			1,000		1,005,895
Class C, 4.40%, 10/15/30			2,000		2,017,587
Bowman Park CLO Ltd., Series 2014-1A, Class D2R, (3 mo. LIBOR US + 3.35%), 4.66%, 11/23/25^(a)(b)			1,000		1,001,691
Carlyle Global Market Strategies CLO Ltd.^(a)(b):
Series 2013-3A, Class C, (3 mo. LIBOR US + 3.40%), 4.76%, 7/15/25			1,000		1,000,221
Series 2016-1A, Class C, (3 mo. LIBOR US + 4.90%), 6.26%, 4/20/27			1,000		1,014,421
Series 2016-3A, Class C, (3 mo. LIBOR US + 4.00%), 5.36%, 10/20/29			1,000		1,016,158
CIFC Funding Ltd., Series 2013-2A^(b)(c):
Class A3LR, 3.95%, 10/18/30			1,000		1,003,179
Class B1LR, 4.60%, 10/18/30			1,000		1,011,570
Elevation CLO Ltd., Series 2017-7A, Class C, 1.00%, 7/15/30^(b)(c)			1,500		1,500,000
GoldenTree Loan Opportunities IX Ltd., Series 2014-9A, Class D, (3 mo. LIBOR US + 3.50%), 4.88%, 10/29/26^(a)(b)			1,000		1,001,790
Highbridge Loan Management Ltd.^(a)(b):
Series 4A-2014, Class B, (3 mo. LIBOR US + 3.00%), 4.38%, 7/28/25			750		750,772
Series 6A-2015, Class C, (3 mo. LIBOR US + 3.07%), 4.38%, 5/05/27			1,500		1,501,337
Series 8A-2016, Class D, (3 mo. LIBOR US + 4.85%), 6.21%, 4/20/27			500		508,842
LCM XVIII LP, Series 18A, Class C1, (3 mo. LIBOR US + 3.15%), 4.51%, 4/20/27^(a)(b)			1,000		1,000,214
Limerock CLO III LLC, Series 2014-3A, Class C, (3 mo. LIBOR US + 3.60%), 4.96%, 10/20/26^(a)(b)			1,000		1,000,403
Madison Park Funding XIII Ltd., Series 2014-13A, Class CR, (3 mo. LIBOR US + 2.15%), 3.51%, 1/19/25^(a)(b)			1,000		1,002,862
Madison Park Funding XIV Ltd., Series 2014-14A, Class DR, (3 mo. LIBOR US + 3.25%), 4.61%, 7/20/26^(a)(b)			2,000		2,001,186


Security	Par (000)			Value
Asset-Backed Securities (continued)
Madison Park Funding XV Ltd., Series 2014-15A, Class B1R, (3 mo. LIBOR US + 2.20%), 3.57%, 1/27/26^(a)(b)		USD	2,000	$	2,003,422
Mill Creek II CLO Ltd., Series 2016-1A, Class D, (3 mo. LIBOR US + 4.85%), 6.21%, 4/20/28^(a)(b)			1,000		1,012,958
MP CLO III Ltd., Series 2013-1A, Class CR, 3.36%, 10/20/30^(b)(c)(d)			1,000		1,000,000
Neuberger Berman CLO XV, Series 2013-15A, Class CR, 3.41%, 10/15/29^(b)(c)			1,000		1,006,659
Neuberger Berman Loan Advisers CLO 26, Series 2017-26A^(b)(c)(d):
Class A, 1.00%, 10/18/30			2,000		2,000,000
Class B, 1.00%, 10/18/30			1,000		1,000,000
Class C, 1.00%, 10/18/30			1,500		1,500,000
Oak Hill Credit Partners XII Ltd., Series 2015-12A, Class C2, (3 mo. LIBOR US + 3.25%), 4.61%, 1/23/27^(a)(b)			1,600		1,607,144
OCP CLO Ltd., Series 2015-8A, Class CR, 4.18%, 4/17/27^(b)(c)(d)			1,000		1,000,000
Octagon Investment Partners Ltd.^(b):
Series 2016-1A, Class D, (3 mo. LIBOR US + 4.95%), 6.31%, 4/15/27^(a)			500		506,267
Series 2017-1A, Class C, 1.00%, 1/20/31^(c)			1,000		1,000,000
OHA Credit Partners XIV Ltd., Series 2017-14A, Class C, 1.00%, 1/21/30^(b)(c)			1,250		1,250,000
OZLM Funding IV Ltd., 3.56%, 10/22/30^(b)(c)			1,000		1,000,306
OZLM XIX Ltd., Series 2017-19A, Class C, 1.00%, 11/22/30^(b)(c)			1,000		1,000,000
Recette CLO Ltd., Series 2015-1A^(b)(c):
Class CR, 3.06%, 10/20/27			1,500		1,500,289
Class DR, 4.11%, 10/20/27			1,000		1,000,099
Regatta IV Funding Ltd., Series 2014-1A, Class CR, (3 mo. LIBOR US + 2.00%), 3.37%, 7/25/26^(a)(b)			1,500		1,500,746
Regatta V Funding Ltd., Series 2014-1A^(a)(b):
Class BR, (3 mo. LIBOR US + 2.30%), 3.67%, 10/25/26			1,000		1,002,130
Class C, (3 mo. LIBOR US + 3.45%), 4.82%, 10/25/26			1,000		1,000,632
Symphony CLO Ltd., Series 2016-17A, Class D, (3 mo. LIBOR US + 4.80%), 6.16%, 4/15/28^(a)(b)			1,000		1,015,766
Symphony CLO XV Ltd., Series 2014-15A^(a)(b):
Class CR, (3 mo. LIBOR US + 2.20%), 3.55%, 10/17/26			2,500		2,519,694
Class DR, (3 mo. LIBOR US + 3.35%), 4.70%, 10/17/26			1,000		1,006,772
Voya CLO Ltd., Series 2013-2A, Class C, (3 mo. LIBOR US + 3.50%), 4.87%, 4/25/25^(a)(b)			1,000		1,004,053
Webster Park CLO Ltd., Series 2015-1A, Class B1, (3 mo. LIBOR US + 3.10%), 4.41%, 1/20/27^(a)(b)			4,000		4,004,562

Total Asset-Backed Securities — 4.5%					71,561,151


Corporate Bonds

Aerospace & Defense — 0.9%
Arconic, Inc.:
5.13%, 10/01/24			2,871		3,081,249
6.75%, 1/15/28			178		210,040
Bombardier, Inc.^(b):
8.75%, 12/01/21			116		129,050
6.13%, 1/15/23			100		99,875
7.50%, 3/15/25			1,840		1,899,800


14		2017 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued)

October 31, 2017

BlackRock Credit Allocation Income Trust (BTZ)

(Percentages shown are based on Net Assets)


Security	Par (000)			Value
Aerospace & Defense (continued)
Huntington Ingalls Industries, Inc., 5.00%, 12/15/21^(b)		USD	536	$	550,740
KLX, Inc., 5.88%, 12/01/22^(b)			1,475		1,543,219
Mexico City Airport Trust, 4.25%, 10/31/26^(b)			1,350		1,371,600
TransDigm, Inc.:
6.00%, 7/15/22			4,360		4,523,500
6.50%, 7/15/24			1,560		1,610,700

					15,019,773
Air Freight & Logistics — 0.1%
XPO Logistics, Inc.^(b):
6.50%, 6/15/22			1,565		1,641,841
6.13%, 9/01/23			352		370,480

					2,012,321
Airlines — 0.8%
American Airlines Group, Inc., 4.63%, 3/01/20^(b)			692		714,490
Continental Airlines Pass-Through Trust, Series 2012-3, Class C, 6.13%, 4/29/18			2,040		2,069,988
Delta Air Lines Pass-Through Trust, Series 2002-1, Class G-1, 6.72%, 7/02/24			2,885		3,231,252
Turkish Airlines Pass-Through Trust, Series 2015-1 Class A, 4.20%, 9/15/28^(b)			2,593		2,524,618
United Airlines Pass-Through Trust, Series 2014-1, Class B, 4.75%, 10/11/23			3,234		3,375,453
Virgin Australia Trust, Series 2013-1, Class B, 6.00%, 4/23/22^(b)			639		651,541

					12,567,342
Auto Components — 0.9%
Allison Transmission, Inc., 5.00%, 10/01/24^(b)			68		70,890
General Motors Financial Co., Inc., 4.35%, 1/17/27			4,710		4,844,911
Goodyear Tire & Rubber Co., 5.00%, 5/31/26			535		548,375
Icahn Enterprises LP/Icahn Enterprises Finance Corp.:
4.88%, 3/15/19			3,950		3,969,750
6.00%, 8/01/20			3,108		3,205,125
Tesla, Inc., 5.30%, 8/15/25^(b)			1,116		1,076,940

					13,715,991
Automobiles — 0.5%
Ford Motor Co., 7.45%, 7/16/31			3,660		4,753,987
General Motors Co.:
4.88%, 10/02/23			1,875		2,044,387
6.25%, 10/02/43			940		1,085,010

					7,883,384
Banks — 4.2%
Barclays PLC, 4.84%, 5/09/28			4,975		5,189,752
CIT Group, Inc.:
5.50%, 2/15/19^(b)			3,967		4,150,474
5.00%, 8/01/23			660		713,922
City National Corp., 5.25%, 9/15/20			2,900		3,142,869
Cooperatieve Rabobank UA, 3.95%, 11/09/22^(e)			3,775		3,981,907
Credit Suisse Group AG, 6.50%, 8/08/23^(b)			6,000		6,795,000
Discover Bank/Greenwood, 8.70%, 11/18/19			748		832,163
Fifth Third Bancorp, (3 mo. LIBOR US + 3.03%), 5.10%^(f)(g)			5,000		5,112,500
HSBC Finance Corp., 6.68%, 1/15/21^(e)			5,150		5,792,021
Intesa Sanpaolo SpA, 5.71%, 1/15/26^(b)			5,840		6,207,367
Royal Bank of Scotland Group PLC, 6.00%, 12/19/23			10,080		11,230,977
SunTrust Banks, Inc., (3 mo. LIBOR US + 3.10%), 5.05%^(f)(g)			5,270		5,421,513
Wells Fargo & Co.^(e):
4.13%, 8/15/23			4,000		4,226,127
5.61%, 1/15/44			4,119		4,986,505

					67,783,097


Security	Par (000)			Value
Beverages — 0.5%
Anheuser-Busch InBev Finance, Inc., 4.90%, 2/01/46^(e)		USD	6,170	$	6,938,843
Molson Coors Brewing Co., 4.20%, 7/15/46			1,665		1,640,974

					8,579,817
Biotechnology — 0.5%
Amgen, Inc., 4.66%, 6/15/51^(e)			6,709		7,255,786

Building Products — 0.4%
American Builders & Contractors Supply Co., Inc., 5.75%, 12/15/23^(b)			424		450,500
Beacon Escrow Corp., 4.88%, 11/01/25^(b)			1,999		2,023,388
Building Materials Corp. of America, 6.00%, 10/15/25^(b)			1,832		1,980,850
Masonite International Corp., 5.63%, 3/15/23^(b)			610		639,737
Standard Industries, Inc.^(b):
5.13%, 2/15/21			420		433,125
5.50%, 2/15/23			745		785,975
USG Corp., 4.88%, 6/01/27^(b)			445		461,688

					6,775,263
Capital Markets — 2.5%
Goldman Sachs Group, Inc.:
7.50%, 2/15/19^(e)			5,165		5,520,200
5.25%, 7/27/21			1,175		1,287,261
5.75%, 1/24/22^(e)			5,500		6,157,223
6.25%, 2/01/41^(e)			15,000		19,849,982
Morgan Stanley, 5.63%, 9/23/19^(e)			6,770		7,199,071

					40,013,737
Chemicals — 1.1%
Axalta Coating Systems LLC, 4.88%, 8/15/24^(b)			715		747,175
Basell Finance Co. BV, 8.10%, 3/15/27^(b)(e)			6,000		8,030,614
Chemours Co., 5.38%, 5/15/27			317		338,398
Huntsman International LLC:
4.88%, 11/15/20			72		75,600
5.13%, 11/15/22			2,495		2,682,125
NOVA Chemicals Corp.^(b):
4.88%, 6/01/24			956		973,925
5.25%, 6/01/27			1,317		1,343,340
Platform Specialty Products Corp.^(b):
10.38%, 5/01/21			165		179,025
6.50%, 2/01/22			1,372		1,421,735
PQ Corp., 6.75%, 11/15/22^(b)			935		1,009,800

					16,801,737
Commercial Services & Supplies — 2.8%
Aviation Capital Group Corp.^(b):
7.13%, 10/15/20			31,000		35,036,946
6.75%, 4/06/21			7,850		8,860,570
CD&R Waterworks Merger Sub LLC, 6.13%, 8/15/25^(b)			437		442,462
KAR Auction Services, Inc., 5.13%, 6/01/25^(b)			859		889,065

					45,229,043
Communications Equipment — 0.2%
CommScope Technologies Finance LLC, 6.00%, 6/15/25^(b)			467		493,269
CommScope Technologies LLC, 5.00%, 3/15/27^(b)			659		641,701
CommScope, Inc., 5.50%, 6/15/24^(b)			254		264,478
Zayo Group LLC/Zayo Capital, Inc.:
6.38%, 5/15/25			1,418		1,526,278
5.75%, 1/15/27^(b)			593		624,874

					3,550,600


SCHEDULES OF INVESTMENTS			15

Schedule of Investments (continued)

October 31, 2017

BlackRock Credit Allocation Income Trust (BTZ)

(Percentages shown are based on Net Assets)


Security	Par (000)			Value
Construction & Engineering — 0.3%
BlueLine Rental Finance Corp., 9.25%, 3/15/24^(b)		USD	2,288	$	2,482,480
Brand Energy & Infrastructure Services, Inc., 8.50%, 7/15/25^(b)			2,160		2,284,200

					4,766,680
Construction Materials — 0.2%
HD Supply, Inc., 5.75%, 4/15/24^(b)			1,701		1,834,954
PulteGroup, Inc., 5.50%, 3/01/26			926		1,015,127

					2,850,081
Consumer Discretionary — 0.1%
Nielsen Co. Luxembourg SARL, 5.00%, 2/01/25^(b)			475		491,625
Viking Cruises Ltd., 5.88%, 9/15/27^(b)			1,092		1,100,190

					1,591,815
Consumer Finance — 0.9%
Ally Financial, Inc.:
5.13%, 9/30/24			590		646,050
8.00%, 11/01/31			3,832		5,067,820
Capital One Bank USA NA, 3.38%, 2/15/23^(e)			2,000		2,033,433
Discover Financial Services, 3.85%, 11/21/22			3,252		3,354,945
IHS Markit Ltd., 4.75%, 2/15/25^(b)			452		477,990
Navient Corp.:
6.63%, 7/26/21			461		493,846
7.25%, 9/25/23			996		1,078,793
Total System Services, Inc., 3.80%, 4/01/21			1,630		1,687,106

					14,839,983
Containers & Packaging — 1.3%
Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc.^(b):
4.63%, 5/15/23			760		780,900
6.00%, 2/15/25			811		860,674
Ball Corp., 4.38%, 12/15/20			681		715,050
International Paper Co., 7.30%, 11/15/39^(e)			10,000		13,937,649
Multi-Color Corp., 4.88%, 11/01/25^(b)			333		336,330
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC:
5.75%, 10/15/20			2,866		2,916,184
6.88%, 2/15/21			68		69,841
7.00%, 7/15/24^(b)			1,247		1,331,172
Sealed Air Corp., 6.88%, 7/15/33^(b)			182		211,575

					21,159,375
Diversified Consumer Services — 0.4%
Prime Security Services Borrower LLC/Prime Finance, Inc., 9.25%, 5/15/23^(b)			2,005		2,221,941
Service Corp. International, 4.50%, 11/15/20			4,382		4,425,820

					6,647,761
Diversified Financial Services — 5.7%
AerCap Ireland Capital DAC/AerCap Global Aviation Trust:
4.63%, 10/30/20			961		1,020,810
3.50%, 5/26/22			5,000		5,137,622
4.63%, 7/01/22			518		556,001
Air Lease Corp., 3.75%, 2/01/22			5,000		5,222,734
Aircastle Ltd., 6.25%, 12/01/19			3,937		4,212,590
Banco Santander SA, 3.13%, 2/23/23			2,200		2,207,875
Bank of America Corp.:
5.00%, 5/13/21^(e)			17,100		18,567,565
4.45%, 3/03/26			1,765		1,876,601
Citigroup, Inc., 6.68%, 9/13/43^(e)			4,125		5,652,705
Credit Suisse Group Funding Guernsey Ltd., 4.55%, 4/17/26^(e)			5,000		5,368,183
Ford Motor Credit Co. LLC, 5.88%, 8/02/21			9,420		10,501,095


Security	Par (000)			Value
Diversified Financial Services (continued)
General Motors Financial Co., Inc.:
6.75%, 6/01/18		USD	1,700	$	1,747,983
4.38%, 9/25/21			2,260		2,399,797
4.25%, 5/15/23			1,681		1,770,394
ING Bank NV, 5.00%, 6/09/21^(b)(e)			8,000		8,697,218
Jefferies Finance LLC/JFIN Co-Issuer Corp., 7.38%, 4/01/20^(b)			1,705		1,760,413
Leucadia National Corp., 5.50%, 10/18/23			4,000		4,257,275
Resparcs Funding LP I, 8.00%^(b)(g)(h)			4,000		1,640,000
Royal Bank of Scotland Group PLC:
6.10%, 6/10/23			2,500		2,783,855
5.13%, 5/28/24			5,250		5,617,586

					90,998,302
Diversified Telecommunication Services — 6.4%
AT&T, Inc.:
5.00%, 3/01/21^(e)			8,575		9,310,821
6.30%, 1/15/38^(e)			12,000		13,991,830
5.15%, 3/15/42			250		250,564
4.35%, 6/15/45			367		327,729
5.15%, 2/14/50			3,000		2,957,337
CenturyLink, Inc., Series S, 6.45%, 6/15/21			1,660		1,751,483
Frontier Communications Corp.:
6.25%, 9/15/21			359		294,380
7.63%, 4/15/24			1,309		1,001,385
6.88%, 1/15/25			3,964		2,946,996
Level 3 Financing, Inc.:
5.38%, 8/15/22			2,095		2,158,437
5.13%, 5/01/23			1,183		1,211,096
5.38%, 1/15/24			754		783,217
5.38%, 5/01/25			2,003		2,093,135
Telecom Italia SpA, 5.30%, 5/30/24^(b)			720		775,800
Telefonica Emisiones SAU:
3.19%, 4/27/18			6,550		6,595,353
5.21%, 3/08/47			6,000		6,606,624
Verizon Communications, Inc.^(e):
5.15%, 9/15/23			8,775		9,834,972
6.40%, 9/15/33			9,475		11,594,008
6.55%, 9/15/43			13,225		16,555,972
5.01%, 4/15/49			10,578		10,797,959

					101,839,098
Electric Utilities — 4.8%
CMS Energy Corp., 5.05%, 3/15/22			9,900		10,872,858
Duke Energy Corp., 3.55%, 9/15/21			3,650		3,798,708
Emera, Inc., Series 16-A, (3 mo. LIBOR US + 5.44%), 6.75%, 6/15/76^(f)			7,500		8,588,250
Great Plains Energy, Inc., 5.29%, 6/15/22⁽ⁱ⁾			5,550		6,081,999
Midland Cogeneration Venture LP, 5.25%, 3/15/25^(b)			3,744		3,764,348
NextEra Energy Capital Holdings, Inc., 4.80%, 12/01/77^(c)			5,000		5,000,000
NextEra Energy Operating Partners LP, 4.25%, 9/15/24^(b)			568		573,680
NiSource Finance Corp., 6.80%, 1/15/19			472		498,398
Oncor Electric Delivery Co. LLC ^(e):
4.10%, 6/01/22			4,150		4,413,624
5.30%, 6/01/42			2,750		3,376,241
Progress Energy, Inc., 7.00%, 10/30/31^(e)			12,000		16,050,881
Puget Energy, Inc.:
6.00%, 9/01/21			275		308,156
5.63%, 7/15/22			5,550		6,205,417
Southern Co., 4.40%, 7/01/46			7,500		7,892,334

					77,424,894


16		2017 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued)

October 31, 2017

BlackRock Credit Allocation Income Trust (BTZ)

(Percentages shown are based on Net Assets)


Security	Par (000)			Value
Electronic Equipment, Instruments & Components — 0.4%
CDW LLC/CDW Finance Corp.:
5.00%, 9/01/23		USD	306	$	319,388
5.50%, 12/01/24			2,458		2,722,235
Jabil Circuit, Inc., 8.25%, 3/15/18			2,600		2,657,200
Sanmina Corp., 4.38%, 6/01/19^(b)			1,415		1,453,318

					7,152,141
Energy Equipment & Services — 0.6%
Genesis Energy LP/Genesis Energy Finance Corp., 5.75%, 2/15/21			473		480,284
GrafTech International Ltd., 6.38%, 11/15/20			890		875,538
Halliburton Co., 5.00%, 11/15/45			6,615		7,400,685
Noble Holding International Ltd.:
4.63%, 3/01/21			34		31,450
7.70%, 4/01/25			364		316,680
Transocean, Inc., 6.00%, 3/15/18			156		158,090

					9,262,727
Food & Staples Retailing — 1.4%
Albertsons Cos. LLC/Safeway, Inc./New Albertson’s, Inc./Albertson’s LLC:
6.63%, 6/15/24			775		728,500
5.75%, 3/15/25			1,120		985,600
CVS Health Corp.:
4.75%, 12/01/22			289		314,767
5.00%, 12/01/24			183		200,518
5.13%, 7/20/45			3,879		4,334,510
Dollar Tree, Inc.:
5.25%, 3/01/20			105		107,428
5.75%, 3/01/23			3,938		4,129,977
H.J. Heinz Finance Co., 7.13%, 8/01/39^(b)			4,415		5,864,105
Wal-Mart Stores, Inc., 5.25%, 9/01/35^(e)			5,150		6,399,608

					23,065,013
Food Products — 0.9%
Aramark Services, Inc., 5.13%, 1/15/24			1,550		1,639,125
JBS USA LLC/JBS USA Finance, Inc., 5.75%, 6/15/25^(b)			1,590		1,542,300
Kraft Foods, Inc., 6.13%, 8/23/18			4,840		4,994,472
Kraft Heinz Foods Co., 4.38%, 6/01/46			2,475		2,416,807
Pilgrim’s Pride Corp.^(b):
5.75%, 3/15/25			624		660,660
5.88%, 9/30/27			491		510,640
Post Holdings, Inc., 5.00%, 8/15/26^(b)			1,349		1,355,745
TreeHouse Foods, Inc., 6.00%, 2/15/24^(b)			431		461,170

					13,580,919
Health Care Equipment & Supplies — 1.1%
Avantor, Inc., 6.00%, 10/01/24^(b)			6,794		6,929,880
DJO Finco, Inc./DJO Finance LLC/DJO Finance Corp., 8.13%, 6/15/21^(b)			2,065		1,972,075
Mallinckrodt International Finance SA/Mallinckrodt CB LLC ^(b):
4.88%, 4/15/20			517		516,354
5.75%, 8/01/22			2,165		2,118,994
5.63%, 10/15/23			381		355,759
5.50%, 4/15/25			125		112,187
Medtronic, Inc., 4.63%, 3/15/45^(e)			4,565		5,171,933

					17,177,182
Health Care Providers & Services — 3.6%
Acadia Healthcare Co., Inc., 5.13%, 7/01/22			191		194,820
Amsurg Corp., 5.63%, 7/15/22			1,313		1,335,977
Centene Corp.:
5.63%, 2/15/21			875		907,813
6.13%, 2/15/24			1,370		1,472,750


Security	Par (000)			Value
Health Care Providers & Services (continued)
CHS/Community Health Systems, Inc., 6.25%, 3/31/23		USD	697	$	670,863
DaVita, Inc., 5.13%, 7/15/24			761		762,903
HCA, Inc.:
3.75%, 3/15/19			4,364		4,429,460
6.50%, 2/15/20			10,421		11,228,627
7.50%, 2/15/22			2,214		2,512,890
5.88%, 3/15/22			340		372,300
4.75%, 5/01/23			236		246,915
5.00%, 3/15/24			735		774,506
5.88%, 2/15/26			1,297		1,363,471
5.50%, 6/15/47			2,570		2,614,975
HealthSouth Corp., 5.75%, 11/01/24			637		652,129
Hologic, Inc., 5.25%, 7/15/22^(b)			742		774,463
MEDNAX, Inc., 5.25%, 12/01/23^(b)			587		610,480
MPH Acquisition Holdings LLC, 7.13%, 6/01/24^(b)			829		892,211
RegionalCare Hospital Partners Holdings, Inc., 8.25%, 5/01/23^(b)			607		637,350
Tenet Healthcare Corp.:
6.00%, 10/01/20			5,095		5,349,750
7.50%, 1/01/22^(b)			394		414,685
8.13%, 4/01/22			1,907		1,916,535
6.75%, 6/15/23			1,758		1,650,322
4.63%, 7/15/24^(b)			513		504,664
THC Escrow Corp. III, 5.13%, 5/01/25^(b)			435		423,581
UnitedHealth Group, Inc., 6.88%, 2/15/38^(e)			10,000		14,371,860

					57,086,300
Hotels, Restaurants & Leisure — 0.8%
CRC Escrow Issuer LLC/CRC Finco, Inc., 5.25%, 10/15/25^(b)			1,665		1,675,906
ESH Hospitality, Inc., 5.25%, 5/01/25^(b)			910		940,712
KFC Holding Co./Pizza Hut Holdings LLC/Taco Bell of America LLC^(b):
5.00%, 6/01/24			600		633,000
5.25%, 6/01/26			650		690,723
4.75%, 6/01/27			817		838,446
MGM Resorts International:
6.75%, 10/01/20			214		235,400
6.63%, 12/15/21			1,410		1,575,675
New Red Finance, Inc.^(b):
4.25%, 5/15/24			1,577		1,588,354
5.00%, 10/15/25			1,620		1,650,375
Sabre GLBL, Inc.^(b):
5.38%, 4/15/23			594		623,011
5.25%, 11/15/23			294		307,965
Scientific Games International, Inc., 7.00%, 1/01/22^(b)			735		777,263
Station Casinos LLC, 5.00%, 10/01/25^(b)			1,200		1,201,500

					12,738,330
Household Durables — 1.0%
Brookfield Residential Properties, Inc./Brookfield Residential US Corp., 6.13%, 7/01/22^(b)			1,647		1,719,056
CalAtlantic Group, Inc., 8.38%, 1/15/21			3,015		3,508,706
Lennar Corp.:
4.75%, 11/15/22			1,805		1,906,531
4.88%, 12/15/23			466		492,795
Newell Brands, Inc.:
3.85%, 4/01/23			5,085		5,334,837
4.20%, 4/01/26			955		1,006,418
TRI Pointe Group, Inc.:
4.38%, 6/15/19			920		944,150
5.88%, 6/15/24			625		676,563

					15,589,056


SCHEDULES OF INVESTMENTS			17

Schedule of Investments (continued)

October 31, 2017

BlackRock Credit Allocation Income Trust (BTZ)

(Percentages shown are based on Net Assets)


Security	Par (000)			Value
Household Products — 0.2%
Spectrum Brands, Inc.:
6.63%, 11/15/22		USD	1,110	$	1,153,823
6.13%, 12/15/24			231		246,662
5.75%, 7/15/25			1,002		1,064,304

					2,464,789
Independent Power and Renewable Electricity Producers — 0.7%
Calpine Corp.:
6.00%, 1/15/22^(b)			1,858		1,918,385
5.88%, 1/15/24^(b)			823		851,805
5.75%, 1/15/25			1,064		1,010,800
5.25%, 6/01/26^(b)			616		616,770
Dynegy, Inc., 6.75%, 11/01/19			1,471		1,524,324
NRG Energy, Inc., 6.63%, 1/15/27			2,746		2,924,490
QEP Resources, Inc., 5.38%, 10/01/22			1,927		1,912,547

					10,759,121
Industrial Conglomerates — 0.0%
Vertiv Group Corp., 9.25%, 10/15/24^(b)			623		682,185

Insurance — 3.0%
American International Group, Inc., 6.40%, 12/15/20^(e)			8,710		9,778,723
Aon Corp., 5.00%, 9/30/20^(e)			7,700		8,284,209
Aon PLC, 4.25%, 12/12/42^(e)			6,500		6,585,706
Forethought Financial Group, Inc., 8.63%, 4/15/21^(b)			3,400		3,874,537
Nationwide Building Society, 4.13%, 10/18/32^(b)(c)			2,520		2,519,639
Northwestern Mutual Life Insurance Co., 6.06%, 3/30/40^(b)(e)			12,000		15,718,881
Radian Group, Inc.:
5.25%, 6/15/20			271		289,293
4.50%, 10/01/24			774		793,350

					47,844,338
Internet Software & Services — 0.5%
Equinix, Inc., 5.88%, 1/15/26			1,061		1,149,859
Netflix, Inc.:
5.50%, 2/15/22			563		603,114
4.38%, 11/15/26^(b)			668		655,058
4.88%, 4/15/28^(b)			1,172		1,164,909
Priceline Group, Inc., 3.55%, 3/15/28			3,375		3,402,044
Symantec Corp., 5.00%, 4/15/25^(b)			347		362,615

					7,337,599
IT Services — 0.7%
Ceridian HCM Holding, Inc., 11.00%, 3/15/21^(b)			1,755		1,853,719
Fidelity National Information Services, Inc., 5.00%, 10/15/25			538		599,122
First Data Corp.^(b):
5.38%, 8/15/23			1,509		1,571,246
7.00%, 12/01/23			4,908		5,251,658
5.75%, 1/15/24			720		753,300
Gartner, Inc., 5.13%, 4/01/25^(b)			483		510,773
WEX, Inc., 4.75%, 2/01/23^(b)			760		779,000

					11,318,818
Life Sciences Tools & Services — 0.8%
Life Technologies Corp., 6.00%, 3/01/20^(e)			12,000		13,019,453

Media — 7.9%
21st Century Fox America, Inc., 6.15%, 3/01/37^(e)			9,575		11,995,256
A&E Television Networks LLC, 3.11%, 8/22/19^(d)			5,000		5,007,000
Altice Financing SA, 7.50%, 5/15/26^(b)			2,172		2,381,055
Altice Luxembourg SA^(b):
7.75%, 5/15/22			2,362		2,500,768
7.63%, 2/15/25			1,752		1,900,920


Security	Par (000)			Value
Media (continued)
Altice US Finance I Corp.^(b):
5.38%, 7/15/23		USD	2,919	$	3,043,057
5.50%, 5/15/26			1,211		1,259,440
AMC Networks, Inc.:
4.75%, 12/15/22			685		702,981
5.00%, 4/01/24			432		440,100
4.75%, 8/01/25			546		545,318
CCO Holdings LLC/CCO Holdings Capital Corp.^(b):
4.00%, 3/01/23			938		951,488
5.13%, 5/01/27			3,124		3,155,240
5.00%, 2/01/28			1,394		1,383,545
Charter Communications Operating LLC/Charter Communications Operating Capital:
6.38%, 10/23/35			479		552,037
6.48%, 10/23/45			9,584		10,973,933
5.38%, 5/01/47^(b)			1,500		1,518,535
6.83%, 10/23/55			3,540		4,253,263
Cinemark USA, Inc., 5.13%, 12/15/22			349		357,725
Clear Channel Worldwide Holdings, Inc., 6.50%, 11/15/22			10,189		10,538,720
Cox Communications, Inc.^(b):
8.38%, 3/01/39^(e)			5,000		6,994,177
4.60%, 8/15/47			625		620,494
CSC Holdings LLC:
8.63%, 2/15/19			4,005		4,290,356
5.25%, 6/01/24			1,160		1,154,925
6.63%, 10/15/25^(b)			832		911,872
Discovery Communications LLC:
3.95%, 3/20/28			4,665		4,626,814
4.88%, 4/01/43			4,000		3,917,080
DISH DBS Corp., 7.75%, 7/01/26			1,901		2,079,219
Grupo Televisa SAB, 5.00%, 5/13/45^(e)			3,345		3,338,373
Hughes Satellite Systems Corp.:
5.25%, 8/01/26			1,017		1,039,964
6.63%, 8/01/26			685		722,675
Intelsat Jackson Holdings SA:
5.50%, 8/01/23			268		228,470
9.75%, 7/15/25^(b)			152		152,950
Interpublic Group of Cos., Inc., 3.75%, 2/15/23			6,025		6,265,248
MDC Partners, Inc., 6.50%, 5/01/24^(b)			1,036		1,056,720
NAI Entertainment Holdings/NAI Entertainment Holdings Finance Corp., 5.00%, 8/01/18^(b)			1,471		1,472,471
Outfront Media Capital LLC/Outfront Media Capital Corp., 5.25%, 2/15/22			249		257,093
SFR Group SA^(b):
6.00%, 5/15/22			4,544		4,737,120
7.38%, 5/01/26			5,843		6,281,225
TEGNA, Inc., 5.50%, 9/15/24^(b)			351		367,673
Time Warner Cable, Inc., 6.55%, 5/01/37			3,519		4,133,506
Time Warner, Inc.:
4.65%, 6/01/44			28		27,073
4.85%, 7/15/45			97		96,667
Tribune Media Co., 5.88%, 7/15/22			1,308		1,357,050
Univision Communications, Inc.^(b):
5.13%, 5/15/23			5,293		5,359,162
5.13%, 2/15/25			375		372,656
Videotron Ltd., 5.13%, 4/15/27^(b)			1,099		1,155,324
Virgin Media Secured Finance PLC, 5.50%, 8/15/26^(b)			487		509,524

					126,986,262
Metals & Mining — 3.1%
Alcoa Nederland Holding BV, 7.00%, 9/30/26^(b)			291		331,740
AngloGold Ashanti Holdings PLC, 5.13%, 8/01/22			5,000		5,250,000


18		2017 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued)

October 31, 2017

BlackRock Credit Allocation Income Trust (BTZ)

(Percentages shown are based on Net Assets)


Security	Par (000)			Value
Metals & Mining (continued)
ArcelorMittal, 6.13%, 6/01/18		USD	2,575	$	2,630,877
Commercial Metals Co., 4.88%, 5/15/23			2,194		2,276,275
Constellium NV:
4.63%, 5/15/21		EUR	490		582,436
8.00%, 1/15/23^(b)		USD	1,728		1,851,120
6.63%, 3/01/25^(b)			1,353		1,403,737
First Quantum Minerals Ltd.^(b):
7.00%, 2/15/21			138		143,175
7.25%, 5/15/22			912		953,040
FMG Resources August 2006 Property Ltd., 9.75%, 3/01/22^(b)			826		923,055
Freeport-McMoRan, Inc.:
2.38%, 3/15/18			4,664		4,664,000
4.00%, 11/14/21			500		503,750
3.55%, 3/01/22			236		233,640
3.88%, 3/15/23			5,360		5,272,900
5.40%, 11/14/34			2,250		2,193,750
5.45%, 3/15/43			1,542		1,449,480
Grinding Media, Inc./Moly-Cop AltaSteel Ltd., 7.38%, 12/15/23^(b)			725		788,438
Kinross Gold Corp., 4.50%, 7/15/27^(b)			331		335,138
Novelis Corp.^(b):
6.25%, 8/15/24			2,862		3,019,410
5.88%, 9/30/26			2,820		2,906,348
Southern Copper Corp., 5.88%, 4/23/45			3,870		4,523,899
Steel Dynamics, Inc.:
5.13%, 10/01/21			1,105		1,134,006
5.25%, 4/15/23			309		319,043
5.50%, 10/01/24			240		256,920
4.13%, 9/15/25^(b)			518		519,295
5.00%, 12/15/26			35		37,100
Teck Resources Ltd.:
4.50%, 1/15/21			370		386,650
8.50%, 6/01/24^(b)			1,093		1,251,485
6.00%, 8/15/40			1,861		2,063,384
5.20%, 3/01/42			640		641,600
United States Steel Corp., 8.38%, 7/01/21^(b)			944		1,030,140

					49,875,831
Oil, Gas & Consumable Fuels — 15.0%
Andeavor Co.^(b):
5.13%, 12/15/26			937		1,038,164
4.75%, 12/15/23			1,230		1,330,349
Andeavor Logistics LP/Tesoro Logistics Finance Corp.:
6.13%, 10/15/21			125		129,063
6.25%, 10/15/22			1,519		1,617,735
California Resources Corp., 8.00%, 12/15/22^(b)			1,065		702,900
Carrizo Oil & Gas, Inc., 6.25%, 4/15/23			62		63,085
Cheniere Corpus Christi Holdings LLC:
7.00%, 6/30/24			1,916		2,186,635
5.13%, 6/30/27^(b)			1,298		1,338,562
Cheniere Energy Partners LP, 5.25%, 10/01/25^(b)			1,157		1,191,710
Concho Resources, Inc., 4.88%, 10/01/47			815		867,106
CONSOL Energy, Inc., 5.88%, 4/15/22			7,210		7,354,200
Continental Resources, Inc.:
5.00%, 9/15/22			7,519		7,603,589
4.50%, 4/15/23			795		804,938
CrownRock LP/CrownRock Finance, Inc., 5.63%, 10/15/25^(b)			798		810,273
DCP Midstream LLC, 6.75%, 9/15/37^(b)			1,527		1,641,525
Devon Energy Corp., 5.85%, 12/15/25			4,000		4,614,520
El Paso LLC:
7.80%, 8/01/31			197		253,905
7.75%, 1/15/32			4,586		5,890,866


Security	Par (000)			Value
Oil, Gas & Consumable Fuels (continued)
El Paso Natural Gas Co. LLC, 8.63%, 1/15/22		USD	2,345	$	2,844,586
El Paso Pipeline Partners Operating Co. LLC, 6.50%, 4/01/20			5,075		5,537,752
Enbridge Energy Partners LP, 9.88%, 3/01/19^(e)			6,000		6,596,227
Energy Transfer Equity LP:
7.50%, 10/15/20			598		672,750
4.25%, 3/15/23			461		469,072
5.88%, 1/15/24			5,241		5,686,485
5.50%, 6/01/27			870		922,200
Energy Transfer LP:
5.20%, 2/01/22			10,200		11,077,276
6.13%, 12/15/45			3,579		3,910,666
Enterprise Products Operating LLC:
4.90%, 5/15/46			5,375		5,916,826
Series E, 5.25%, 8/16/77^(c)			4,800		4,932,000
Series N, 6.50%, 1/31/19^(e)			12,000		12,652,502
EP Energy LLC/Everest Acquisition Finance, Inc., 8.00%, 11/29/24^(b)(e)			415		423,300
Gulfport Energy Corp.:
6.00%, 10/15/24			210		210,000
6.38%, 5/15/25			792		803,880
Kinder Morgan Energy Partners LP:
6.85%, 2/15/20^(e)			12,000		13,208,649
4.25%, 9/01/24			2,170		2,264,055
5.40%, 9/01/44			3,615		3,785,319
Matador Resources Co., 6.88%, 4/15/23			93		98,348
MEG Energy Corp.^(b):
7.00%, 3/31/24			2,844		2,580,930
6.50%, 1/15/25			2,021		2,010,895
Midcontinent Express Pipeline LLC, 6.70%, 9/15/19^(b)			3,500		3,731,875
MPLX LP:
4.13%, 3/01/27			825		848,672
5.20%, 3/01/47			3,500		3,747,285
Murphy Oil Corp., 6.88%, 8/15/24			752		808,400
Nexen Energy ULC, 6.40%, 5/15/37			2,000		2,606,752
NGPL PipeCo LLC^(b):
4.38%, 8/15/22			509		523,634
4.88%, 8/15/27			1,286		1,331,010
7.77%, 12/15/37			690		860,775
Noble Energy, Inc.:
5.63%, 5/01/21			1,784		1,830,830
5.05%, 11/15/44			3,500		3,679,263
Noble Holding International Ltd., 7.75%, 1/15/24			676		605,020
Oasis Petroleum, Inc., 6.88%, 1/15/23			133		135,328
ONEOK Partners LP, 8.63%, 3/01/19^(e)			10,000		10,798,199
Parsley Energy LLC/Parsley Finance Corp.^(b):
5.25%, 8/15/25			780		787,800
5.63%, 10/15/27			649		669,690
PDC Energy, Inc., 7.75%, 10/15/22			1,225		1,277,063
Petroleos Mexicanos:
3.50%, 1/30/23^(e)			5,000		4,881,500
4.63%, 9/21/23			3,965		4,054,212
4.88%, 1/18/24^(e)			2,000		2,049,400
Pioneer Natural Resources Co., 6.88%, 5/01/18			1,665		1,706,084
Plains All American Pipeline LP, Series B, 6.13%^(c)(g)			2,215		2,257,749
Plains All American Pipeline LP/PAA Finance Corp.:
4.70%, 6/15/44			1,498		1,383,869
4.90%, 2/15/45			2,102		1,994,836
Range Resources Corp., 5.00%, 8/15/22			32		31,600
Rockies Express Pipeline LLC^(b):
5.63%, 4/15/20			295		312,700
6.88%, 4/15/40			580		646,700
RSP Permian, Inc., 6.63%, 10/01/22			789		829,436


SCHEDULES OF INVESTMENTS			19

Schedule of Investments (continued)

October 31, 2017

BlackRock Credit Allocation Income Trust (BTZ)

(Percentages shown are based on Net Assets)


Security	Par (000)			Value
Oil, Gas & Consumable Fuels (continued)
Ruby Pipeline LLC, 6.00%, 4/01/22^(b)		USD	9,470	$	10,180,929
Sabine Pass Liquefaction LLC:
5.63%, 2/01/21			405		439,326
5.63%, 4/15/23			10,510		11,673,788
5.75%, 5/15/24			2,575		2,884,198
5.88%, 6/30/26			1,481		1,675,495
Sanchez Energy Corp.:
7.75%, 6/15/21			153		142,290
6.13%, 1/15/23			2,021		1,687,535
Seven Generations Energy Ltd., 5.38%, 9/30/25^(b)			898		906,980
SM Energy Co.:
6.50%, 1/01/23			177		180,098
5.00%, 1/15/24			181		172,855
5.63%, 6/01/25			350		340,375
Southwestern Energy Co.:
6.70%, 1/23/25			996		1,018,410
7.50%, 4/01/26			778		807,175
Tallgrass Energy Partners LP/Tallgrass Energy Finance Corp., 5.50%, 1/15/28^(b)			1,298		1,332,072
Targa Resources Partners LP/Targa Resources Partners Finance Corp.:
5.25%, 5/01/23			37		38,064
6.75%, 3/15/24			184		198,260
5.00%, 1/15/28^(b)			1,841		1,845,602
TransCanada PipeLines Ltd., 4.88%, 1/15/26^(e)			4,485		5,073,789
Weatherford International Ltd., 6.50%, 8/01/36			985		820,013
Western Gas Partners LP, 5.38%, 6/01/21			5,125		5,491,676
Williams Cos., Inc.:
3.70%, 1/15/23			2,245		2,264,644
4.55%, 6/24/24			527		550,715
8.75%, 3/15/32			2,478		3,264,765
5.75%, 6/24/44			685		726,100
Williams Partners LP, 5.10%, 9/15/45			5,075		5,437,030
WPX Energy, Inc., 6.00%, 1/15/22			72		74,970

					239,659,679
Paper & Forest Products — 1.1%
International Paper Co.^(e):
7.50%, 8/15/21			9,675		11,387,723
8.70%, 6/15/38			4,000		5,915,293

					17,303,016
Pharmaceuticals — 3.6%
AbbVie, Inc.:
2.90%, 11/06/22^(e)			5,675		5,735,023
4.70%, 5/14/45			3,255		3,531,444
Actavis Funding SCS:
3.45%, 3/15/22			7,335		7,531,973
3.85%, 6/15/24			6,000		6,224,769
4.75%, 3/15/45			485		511,637
Endo Finance LLC/Endo Finco, Inc., 6.00%, 7/15/23^(b)			1,514		1,226,340
Forest Laboratories LLC^(b):
4.38%, 2/01/19			2,924		2,991,588
5.00%, 12/15/21			1,631		1,770,517
inVentiv Group Holdings, Inc./inVentiv Health, Inc./inVentiv Health Clinical, Inc., 7.50%, 10/01/24^(b)			443		488,408
Merck & Co., Inc., 6.50%, 12/01/33			6,420		8,590,077
Mylan NV, 3.95%, 6/15/26			7,500		7,491,143
Shire Acquisitions Investments Ireland DAC, 2.88%, 9/23/23			5,000		4,949,661
Valeant Pharmaceuticals International, Inc.^(b):
7.50%, 7/15/21			148		145,595
6.75%, 8/15/21			584		565,750
5.63%, 12/01/21			1,177		1,072,541


Security	Par (000)			Value
Pharmaceuticals (continued)
Valeant Pharmaceuticals International, Inc.^(b) (continued):
6.50%, 3/15/22		USD	829	$	878,740
5.50%, 3/01/23			31		26,040
5.88%, 5/15/23			665		561,925
7.00%, 3/15/24			1,303		1,410,497
6.13%, 4/15/25			216		181,440
5.50%, 11/01/25			963		984,668

					56,869,776
Professional Services — 0.4%
Dun & Bradstreet Corp., 3.50%, 12/01/17			5,750		5,755,277

Real Estate Investment Trusts (REITs) — 1.8%
American Tower Corp.:
5.05%, 9/01/20			500		536,883
5.90%, 11/01/21^(e)			3,770		4,222,221
AvalonBay Communities, Inc., 6.10%, 3/15/20^(e)			10,000		10,909,795
Hilton Domestic Operating Co., Inc., 4.25%, 9/01/24			881		899,721
Host Hotels & Resorts LP, 3.75%, 10/15/23^(e)			3,600		3,701,074
MGM Growth Properties Operating Partnership LP/MGP Finance Co-Issuer, Inc.:
5.63%, 5/01/24			627		677,160
4.50%, 9/01/26			1,510		1,515,662
Starwood Property Trust, Inc., 5.00%, 12/15/21			627		656,783
UDR, Inc., 4.25%, 6/01/18^(e)			5,225		5,298,531

					28,417,830
Real Estate Management & Development — 0.4%
Northwest Florida Timber Finance LLC, 4.75%, 3/04/29^(b)(e)			4,485		4,328,993
Realogy Group LLC/Realogy Co-Issuer Corp.^(b):
4.50%, 4/15/19			803		821,068
5.25%, 12/01/21			344		356,040
4.88%, 6/01/23			1,332		1,371,560

					6,877,661
Road & Rail — 1.1%
Hertz Corp., 6.75%, 4/15/19			420		421,312
Norfolk Southern Corp., 6.00%, 3/15/2105			12,700		15,442,137
United Rentals North America, Inc.:
4.63%, 10/15/25			1,034		1,057,937
4.88%, 1/15/28			1,385		1,391,925

					18,313,311
Semiconductors & Semiconductor Equipment — 0.9%
Broadcom Corp./Broadcom Cayman Finance Ltd., 3.88%, 1/15/27^(b)			7,500		7,716,182
Micron Technology, Inc.:
5.25%, 8/01/23^(b)			745		779,717
5.50%, 2/01/25			40		42,500
NXP BV/NXP Funding LLC^(b):
4.13%, 6/15/20			951		990,229
4.13%, 6/01/21			1,461		1,526,745
4.63%, 6/15/22			490		524,913
4.63%, 6/01/23			204		219,810
Sensata Technologies BV^(b):
5.63%, 11/01/24			695		771,450
5.00%, 10/01/25			1,418		1,503,080

					14,074,626
Software — 0.8%
Infor US, Inc., 6.50%, 5/15/22			2,965		3,091,012
Informatica LLC, 7.13%, 7/15/23^(b)			477		485,348
Nuance Communications, Inc., 5.38%, 8/15/20^(b)			1,901		1,926,664
Oracle Corp., 2.65%, 7/15/26^(e)			4,890		4,798,042
PTC, Inc., 6.00%, 5/15/24			313		339,589


20		2017 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued)

October 31, 2017

BlackRock Credit Allocation Income Trust (BTZ)

(Percentages shown are based on Net Assets)


Security	Par (000)			Value
Software (continued)
Rackspace Hosting, Inc., 8.63%, 11/15/24^(b)		USD	1,254	$	1,320,619
Solera LLC/Solera Finance, Inc., 10.50%, 3/01/24^(b)			670		763,800
Sophia LP/Sophia Finance, Inc., 9.00%, 9/30/23^(b)			740		767,750

					13,492,824
Specialty Retail — 0.6%
L Brands, Inc.:
7.00%, 5/01/20			3,050		3,351,187
6.88%, 11/01/35			1,119		1,110,608
PetSmart, Inc., 5.88%, 6/01/25^(b)			888		774,780
VF Corp., 5.95%, 11/01/17^(e)			5,000		5,000,000

					10,236,575
Technology Hardware, Storage & Peripherals — 0.4%
Dell International LLC/EMC Corp.^(b):
5.88%, 6/15/21			615		644,076
7.13%, 6/15/24			747		824,501
8.35%, 7/15/46			2,355		3,051,777
Western Digital Corp.:
7.38%, 4/01/23^(b)			1,199		1,312,905
10.50%, 4/01/24			584		685,324

					6,518,583
Textiles, Apparel & Luxury Goods — 0.2%
Levi Strauss & Co., 5.00%, 5/01/25			699		734,789
Springs Industries, Inc., 6.25%, 6/01/21			304		313,120
William Carter Co., 5.25%, 8/15/21			1,406		1,444,665

					2,492,574
Thrifts & Mortgage Finance — 0.1%
Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp.^(b):
5.25%, 3/15/22			639		661,365
5.25%, 10/01/25			268		266,995

					928,360
Tobacco — 2.0%
Altria Group, Inc., 10.20%, 2/06/39^(e)			13,392		23,163,140
BAT Capital Corp., 4.54%, 8/15/47^(b)			5,000		5,146,318
Reynolds American, Inc.:
4.85%, 9/15/23			1,120		1,231,932
5.85%, 8/15/45			2,335		2,869,929

					32,411,319
Trading Companies & Distributors — 0.3%
Doric Nimrod Air Alpha Ltd. Pass-Through Trust, Series 2013-1^(b):
Class A, 5.25%, 5/30/25			2,035		2,131,256
Class B, 6.13%, 11/30/21			1,823		1,882,555

					4,013,811
Transportation Infrastructure — 0.8%
CEVA Group PLC, (9.00% Cash or 3.00% PIK), 9.00%, 9/01/20^(b)(j)			1,845		1,872,675
Penske Truck Leasing Co. LP/PTL Finance Corp., 4.88%, 7/11/22^(b)(e)			10,500		11,435,653

					13,308,328
Wireless Telecommunication Services — 1.6%
America Movil SAB de CV, 3.13%, 7/16/22			1,275		1,302,701
Crown Castle International Corp., 5.25%, 1/15/23			6,380		7,061,336
Crown Castle Towers LLC, 6.11%, 1/15/40^(b)			4,555		4,846,432
Digicel Group Ltd., 7.13%, 4/01/22^(b)			370		348,725
Digicel Ltd., 6.00%, 4/15/21^(b)			1,285		1,264,003
SBA Communication Corp., 4.00%, 10/01/22^(b)			1,045		1,060,675
SBA Communications Corp., 4.88%, 9/01/24			1,658		1,703,595


Security	Par (000)			Value
Wireless Telecommunication Services (continued)
Sprint Communications, Inc.^(b):
9.00%, 11/15/18		USD	1,576	$	1,672,530
7.00%, 3/01/20			389		422,065
Sprint Corp.:
7.13%, 6/15/24			3,020		3,264,439
7.63%, 2/15/25			195		213,769
T-Mobile USA, Inc., 6.84%, 4/28/23			645		680,475
Wind Tre SpA, 5.00%, 1/20/26^(b)			1,320		1,328,564

					25,169,309

Total Corporate Bonds— 93.3%					1,491,088,803


Foreign Agency Obligations
Argentine Republic Government International Bond, 5.63%, 1/26/22			6,485		6,809,250
Brazilian Government International Bond, 5.00%, 1/27/45			6,525		6,038,126
Colombia Government International Bond, 5.63%, 2/26/44			4,000		4,456,000
Indonesia Government International Bond, 5.88%, 1/15/24^(b)			4,400		5,051,772
Mexico Government International Bond:
4.75%, 3/08/44			5,800		5,782,600
4.60%, 2/10/48			5,000		4,892,500
Uruguay Government International Bond, 5.10%, 6/18/50			3,500		3,753,750

Total Foreign Agency Obligations — 2.3%					36,783,998


Municipal Bonds
City of Chicago Illinois, Refunding ARB, O’Hare International Airport, General 3rd Lien, Build America Bonds, Series B, 6.85%, 1/01/38			5,000		5,438,650
Metropolitan Transportation Authority, RB, Build America Bonds, Series B-1, 6.55%, 11/15/31			10,000		13,102,400

Total Municipal Bonds — 1.1%					18,541,050


Preferred Securities

Capital Trusts
Auto Components — 0.2%
General Motors Financial Co., Inc., Series A, 5.75%^(c)(g)			3,000		3,135,000

Banks — 5.5%
BNP Paribas SA^(b)(f)(g):
6.75%			5,000		5,468,750
7.20%			5,000		5,834,400
7.38%			4,535		5,237,925
Capital One Financial Corp., Series E, 5.55%^(f)(g)			5,000		5,243,750
Citigroup, Inc.^(f)(g):
5.90%			2,210		2,370,468
Series P, 5.95%			7,000		7,658,770
Credit Suisse Group AG^(b)(f)(g):
6.25%			7,255		7,935,156
7.50%			3,250		3,778,125
HSBC Capital Funding LP^(b)(f)(g):
6.00%			1,550		1,646,875
10.18%			11,835		18,913,750
Macquarie Bank Ltd., 6.13%^(b)(f)(g)			1,885		1,982,078
Nordea Bank AB, 6.13%^(b)(f)(g)			5,540		6,045,525
U.S. Bancorp, Series J, 5.30%^(f)(g)			10,415		11,430,462


SCHEDULES OF INVESTMENTS			21

Schedule of Investments (continued)

October 31, 2017

BlackRock Credit Allocation Income Trust (BTZ)

(Percentages shown are based on Net Assets)


Security	Par (000)			Value
Banks (continued)
Wells Fargo & Co.^(f)(g):
Series K, 7.98%		USD	809	$	825,423
Series S, 5.90%			281		308,131
Series U, 5.88%			2,655		2,968,290

					87,647,878
Capital Markets — 2.3%
Charles Schwab Corp., Series E, 4.63%^(f)(g)			6,805		7,000,644
Goldman Sachs Group, Inc., Series L, 5.70%^(f)(g)			2,950		3,045,875
Morgan Stanley, Series H, 5.45%^(f)(g)			8,675		8,995,975
State Street Corp.:
2.32%, 6/15/47^(a)			17,845		16,287,131
Series F, 5.25%^(f)(g)			1,855		1,954,706

					37,284,331
Commercial Services & Supplies — 0.3%
AerCap Global Aviation Trust, 6.50%, 6/15/45^(b)(f)			5,000		5,450,000

Consumer Finance — 0.3%
American Express Co., Series C, 4.90%^(f)(g)			4,510		4,628,388

Diversified Financial Services — 4.4%
Bank of America Corp.^(f)(g):
Series AA, 6.10%			6,630		7,400,737
Series K, 8.00%			2,420		2,450,250
Series U, 5.20%			5,785		6,030,863
Barclays PLC, 6.63%^(f)(g)			7,385		7,717,325
Credit Agricole SA, 8.13%^(b)(f)(g)			5,000		6,018,370
JPMorgan Chase & Co.^(f)(g):
Series 1, 7.90%			3,650		3,743,075
Series Q, 5.15%			4,000		4,209,000
Series R, 6.00%			14,130		15,578,325
Series S, 6.75%			7,775		8,912,094
Royal Bank of Scotland Group PLC^(f)(g):
8.00%			970		1,108,904
8.63%			5,135		5,814,874
Societe Generale SA, 7.38%^(b)(f)(g)			1,980		2,182,950

					71,166,767
Electric Utilities — 0.5%
PPL Capital Funding, Inc., Series A, 4.00%, 3/30/67^(f)			8,300		8,189,610

Industrial Conglomerates — 0.9%
General Electric Co., Series D, 5.00%^(f)(g)			13,327		13,910,056

Insurance — 3.7%
ACE Capital Trust II, 9.70%, 4/01/30			7,000		10,570,000
Allstate Corp., (3 mo. LIBOR US + 2.94%), 5.75%, 8/15/53^(f)			5,000		5,462,500
American International Group, Inc., 8.18%, 5/15/58^(f)			3,755		5,125,575
Bank One Capital III, 8.75%, 9/01/30			2,000		2,956,160
Chubb Corp., 3.61%, 4/15/37^(f)			7,400		7,363,000
Equitable of Iowa Cos. Capital Trust II, Series B, 8.42%, 4/01/27			5,000		5,663,120
Farmers Exchange Capital II, 6.15%, 11/01/53^(b)(f)			4,890		5,559,588
Great-West Life & Annuity Insurance Capital LP II, 3.85%, 5/16/46^(b)(f)			500		494,125
Hartford Financial Services Group, Inc., 8.13%, 6/15/38^(f)			5,050		5,226,750
MetLife, Inc., 6.40%, 12/15/66			5,000		5,768,750
Principal Financial Group, Inc., 4.70%, 5/15/55^(f)			5,000		5,139,000

					59,328,568
Media — 0.4%
NBCUniversal Enterprise, Inc., 5.25%^(b)(g)			5,600		5,978,000


Security	Shares/Par (000)			Value
Oil, Gas & Consumable Fuels — 1.9%
Enbridge, Inc., Series 16-A, 6.00%, 1/15/77^(f)		USD	5,880	$	6,292,423
Enterprise Products Operating LLC^(f):
4.09%, 6/01/67			2,500		2,456,250
5.02%, 8/01/66			9,325		9,313,344
TransCanada PipeLines Ltd., 3.53%, 5/15/67^(f)			9,400		8,695,000
TransCanada Trust, 5.63%, 5/20/75^(f)			2,755		2,934,901

					29,691,918
Real Estate Investment Trusts (REITs) — 0.6%
Sovereign Real Estate Investment Trust, 12.00%^(b)(g)			7		8,750,000

Road & Rail — 0.4%
BNSF Funding Trust I, 6.61%, 12/15/55^(f)			6,125		7,078,663

Total Capital Trusts — 21.4%					342,239,179


Preferred Stocks

Banks — 1.8%
Citigroup, Inc., Series K, 6.88%^(f)(g)			488,320		14,107,565
Wells Fargo & Co., Series Q, 5.85%^(f)(g)			550,500		14,995,620

					29,103,185
Capital Markets — 0.7%
Goldman Sachs Group, Inc., Series J, 5.50%^(f)(g)			162,450		4,361,782
SCE Trust III, Series H, 5.75%^(f)(g)			31,650		851,069
State Street Corp., Series D, 5.90%^(f)(g)			220,495		6,109,916

					11,322,767
Electric Utilities — 0.2%
Entergy Louisiana LLC, 5.25%^(g)			90,000		2,259,000

Real Estate Investment Trusts (REITs) — 0.2%
Ventas Realty LP/Ventas Capital Corp., 5.45%^(g)			75,000		1,896,750
Vornado Realty Trust, Series K, 5.70%^(g)			50,000		1,272,000

					3,168,750
Wireless Telecommunication Services — 1.1%
Centaur Funding Corp., 9.08%^(b)(g)			15,143		17,480,701

Total Preferred Stocks — 4.0%					63,334,403


Trust Preferred

Diversified Financial Services — 0.5%
GMAC Capital Trust I, Series 2, 7.10%, 2/15/40^(c)			300,141		7,773,605

Total Preferred Securities — 25.9%					413,347,187


U.S. Government Sponsored Agency Securities — 0.2%

Agency Obligations — 0.2%
Fannie Mae, 0.00%, 10/09/19^(e)(k)		USD	3,945		3,804,151

U.S. Treasury Obligations — 1.5%
U.S. Treasury Bonds, 3.00%, 5/15/47^(e)			23,650		24,244,022

Total Long-Term Investments — 128.8% (Cost — $1,911,979,190)					2,059,370,362


22		2017 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued)

October 31, 2017

BlackRock Credit Allocation Income Trust (BTZ)

(Percentages shown are based on Net Assets)


Security	Shares		Value
Short-Term Securities
BlackRock Liquidity Funds, T-Fund, Institutional Class, 0.93%^(l)(m)		9,139,477	$	9,139,477

Total Short-Term Securities — 0.6% (Cost — $9,139,477)				9,139,477

Options Purchased — 0.1% (Cost — $1,143,668)				819,506


Total Investments — 129.5% (Cost — $1,922,262,335)				2,069,329,345
Liabilities in Excess of Other Assets — (29.5)%				(471,295,396	)

Net Assets — 100.0%			$	1,598,033,949

^(a)	Floating rate security. Rate shown is the rate in effect as of period end.

^(b)	Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

^(c)	Variable or floating rate security, which interest rate adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. Rate shown is the rate in effect as of period end.

^(d)	Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

^(e)	All or a portion of the security has been pledged as collateral in connection with outstanding reverse repurchase agreements.

^(f)	Variable rate security. Security may be issued at a fixed coupon rate, which converts to a variable rate at a specified date. Rate shown is the rate in effect as of period end.

^(g)	Perpetual security with no stated maturity date.

^(h)	Issuer filed for bankruptcy and/or is in default.

⁽ⁱ⁾	Step-down bond that pays an initial coupon rate for the first period and then a lower coupon rate for the following periods. Rate as of period end.

^(j)	Payment-in-kind security which may pay interest/dividends in additional par/shares and/or in cash. Rates shown are the current rate and possible payment rates.

^(k)	Zero-coupon bond.

^(l)	Annualized 7-day yield as of period end.

^(m)

During the year ended October 31, 2017, investments in issuers considered to be an affiliate of the Trust for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:


Affiliate	Shares Held at 10/31/16		Net Activity			Shares Held at 10/31/17		Value at 10/31/17		Income		Net Realized Gain^(a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds, T-Fund, Institutional Class		9,872,272		(732,795	)		9,139,477	$	9,139,477	$	109,523	$	132	$	—

^(a)

Includes net capital gain distributions, if applicable.

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

Reverse Repurchase Agreements

Counterparty

Interest
Rate

Trade
Date

Maturity
Date^(a)

Face Value

Face Value
Including
Accrued Interest

Type of Non-Cash Underlying Collateral

Remaining Contractual
Maturity of the Agreements^(a)

RBC Capital Markets LLC

1.59

1/18/17

Open

1,898,800

1,919,471

Corporate Bonds

Open/Demand

Deutsche Bank Securities, Inc.

1.09

2/07/17

Open

3,757,000

3,784,158

U.S. Government Sponsored Agency Securities

Open/Demand

RBC Capital Markets LLC

1.59

2/13/17

Open

12,633,600

12,762,371

Corporate Bonds

Open/Demand

RBC Capital Markets LLC

1.59

2/13/17

Open

5,842,100

5,901,647

Corporate Bonds

Open/Demand

UBS Securities LLC

1.50

3/16/17

Open

8,300,000

8,373,144

Corporate Bonds

Open/Demand

UBS Securities LLC

1.50

3/16/17

Open

5,397,425

5,444,990

Corporate Bonds

Open/Demand

UBS Securities LLC

1.50

3/16/17

Open

3,079,844

3,106,985

Corporate Bonds

Open/Demand

RBC Capital Markets LLC

1.59

4/06/17

Open

6,324,250

6,378,660

Corporate Bonds

Open/Demand

BNP Paribas S.A.

1.61

6/15/17

Open

5,264,000

5,295,781

Corporate Bonds

Open/Demand

BNP Paribas S.A.

1.61

6/15/17

Open

9,475,000

9,532,205

Corporate Bonds

Open/Demand

BNP Paribas S.A.

1.61

6/15/17

Open

4,590,000

4,617,712

Corporate Bonds

Open/Demand

BNP Paribas S.A.

1.61

6/15/17

Open

10,738,000

10,802,831

Corporate Bonds

Open/Demand

BNP Paribas S.A.

1.61

6/15/17

Open

7,012,000

7,054,335

Corporate Bonds

Open/Demand

BNP Paribas S.A.

1.61

6/15/17

Open

4,720,000

4,748,497

Corporate Bonds

Open/Demand

BNP Paribas S.A.

1.61

6/15/17

Open

5,288,000

5,319,926

Corporate Bonds

Open/Demand

BNP Paribas S.A.

1.61

6/15/17

Open

2,007,000

2,019,117

Corporate Bonds

Open/Demand

BNP Paribas S.A.

1.61

6/15/17

Open

3,130,000

3,148,897

Corporate Bonds

Open/Demand

BNP Paribas S.A.

1.61

6/15/17

Open

4,869,000

4,898,397

Corporate Bonds

Open/Demand

BNP Paribas S.A.

1.61

6/15/17

Open

3,254,000

3,273,646

Corporate Bonds

Open/Demand

BNP Paribas S.A.

1.61

6/15/17

Open

15,996,000

16,092,576

Corporate Bonds

Open/Demand

BNP Paribas S.A.

1.61

6/15/17

Open

5,780,000

5,814,897

Corporate Bonds

Open/Demand

BNP Paribas S.A.

1.61

6/15/17

Open

6,088,000

6,124,756

Corporate Bonds

Open/Demand


SCHEDULES OF INVESTMENTS			23

Schedule of Investments (continued)

October 31, 2017

BlackRock Credit Allocation Income Trust (BTZ)

Reverse Repurchase Agreements (continued)

Counterparty

Interest
Rate

Trade
Date

Maturity
Date^(a)

Face Value

Face Value
Including
Accrued Interest

Type of Non-Cash Underlying Collateral

Remaining Contractual
Maturity of the Agreements^(a)

Credit Suisse Securities (USA) LLC

1.50

6/15/17

Open

4,608,825

4,635,326

Corporate Bonds

Open/Demand

Credit Suisse Securities (USA) LLC

1.50

6/15/17

Open

5,392,406

5,423,413

Corporate Bonds

Open/Demand

Credit Suisse Securities (USA) LLC

1.50

6/15/17

Open

5,002,938

5,031,704

Corporate Bonds

Open/Demand

Credit Suisse Securities (USA) LLC

1.50

6/15/17

Open

3,086,875

3,104,625

Corporate Bonds

Open/Demand

Credit Suisse Securities (USA) LLC

1.50

6/15/17

Open

3,805,939

3,827,823

Corporate Bonds

Open/Demand

Credit Suisse Securities (USA) LLC

1.55

6/15/17

Open

6,340,438

6,378,110

Corporate Bonds

Open/Demand

Credit Suisse Securities (USA) LLC

1.55

6/15/17

Open

3,172,031

3,190,878

Corporate Bonds

Open/Demand

RBC Capital Markets LLC

1.59

6/21/17

Open

4,040,000

4,063,553

Corporate Bonds

Open/Demand

RBC Capital Markets LLC

1.59

6/21/17

Open

4,058,925

4,082,589

Corporate Bonds

Open/Demand

RBC Capital Markets LLC

1.59

6/21/17

Open

14,910,000

14,996,925

Corporate Bonds

Open/Demand

RBC Capital Markets LLC

1.59

6/21/17

Open

3,551,512

3,572,218

Corporate Bonds

Open/Demand

RBC Capital Markets LLC

1.59

6/21/17

Open

9,220,000

9,273,753

Corporate Bonds

Open/Demand

RBC Capital Markets LLC

1.59

6/21/17

Open

7,710,000

7,754,949

Corporate Bonds

Open/Demand

RBC Capital Markets LLC

1.59

6/21/17

Open

7,672,875

7,717,608

Corporate Bonds

Open/Demand

RBC Capital Markets LLC

1.59

6/21/17

Open

3,727,812

3,749,546

Corporate Bonds

Open/Demand

RBC Capital Markets LLC

1.59

6/21/17

Open

5,600,000

5,632,648

Corporate Bonds

Open/Demand

RBC Capital Markets LLC

1.59

6/21/17

Open

12,360,000

12,432,059

Corporate Bonds

Open/Demand

RBC Capital Markets LLC

1.59

6/21/17

Open

17,613,000

17,715,684

Corporate Bonds

Open/Demand

RBC Capital Markets LLC

1.59

6/21/17

Open

6,480,000

6,517,778

Corporate Bonds

Open/Demand

RBC Capital Markets LLC

1.59

6/21/17

Open

7,873,250

7,919,151

Corporate Bonds

Open/Demand

RBC Capital Markets LLC

1.59

6/21/17

Open

3,483,000

3,503,306

Corporate Bonds

Open/Demand

RBC Capital Markets LLC

1.59

6/21/17

Open

22,532,040

22,663,402

Corporate Bonds

Open/Demand

RBC Capital Markets LLC

1.59

6/21/17

Open

4,907,375

4,935,985

Corporate Bonds

Open/Demand

RBC Capital Markets LLC

1.59

6/21/17

Open

6,012,500

6,047,553

Corporate Bonds

Open/Demand

RBC Capital Markets LLC

1.59

6/21/17

Open

4,181,125

4,205,501

Corporate Bonds

Open/Demand

RBC Capital Markets LLC

1.59

6/21/17

Open

5,025,000

5,054,296

Corporate Bonds

Open/Demand

RBC Capital Markets LLC

1.59

6/29/17

Open

8,853,688

8,901,512

Corporate Bonds

Open/Demand

BNP Paribas S.A.

1.61

7/11/17

Open

10,288,000

10,339,992

Corporate Bonds

Open/Demand

RBC Capital Markets LLC

1.59

8/24/17

Open

4,765,312

4,779,624

Corporate Bonds

Open/Demand

RBC Capital Markets LLC

1.59

8/24/17

Open

9,276,150

9,304,009

Corporate Bonds

Open/Demand

RBC Capital Markets LLC

1.59

8/24/17

Open

5,405,437

5,421,671

Corporate Bonds

Open/Demand

RBC Capital Markets LLC

1.59

8/24/17

Open

10,325,000

10,356,009

Corporate Bonds

Open/Demand

RBC Capital Markets LLC

1.59

8/24/17

Open

18,600,000

18,655,862

Corporate Bonds

Open/Demand

Deutsche Bank Securities, Inc.

1.06

9/20/17

Open

24,150,000

24,178,490

U.S. Treasury Obligations

Open/Demand

RBC Capital Markets LLC

1.59

10/02/17

Open

13,380,000

13,397,728

Corporate Bonds

Open/Demand

Credit Suisse Securities (USA) LLC

1.50

10/05/17

Open

13,437,500

13,452,617

Corporate Bonds

Open/Demand

Deutsche Bank Securities, Inc.

(0.50

)

10/05/17

Open

429,000

428,845

Corporate Bonds

Open/Demand

RBC Capital Markets LLC

1.59

10/11/17

Open

10,867,500

10,877,580

Corporate Bonds

Open/Demand

RBC Capital Markets LLC

1.59

10/19/17

Open

15,540,000

15,548,923

Corporate Bonds

Open/Demand

RBC Capital Markets LLC

1.59

10/26/17

Open

12,330,000

12,333,267

Corporate Bonds

Open/Demand

Total

475,459,472

477,821,511

^(a)

Certain agreements have no stated maturity and can be terminated by either party at any time.

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts


Description	Number of Contracts			Expiration Date		Notional Amount (000)		Value / Unrealized Appreciation (Depreciation)
Short Contracts
10-Year U.S. Treasury Note		(1,134	)		12/19/17	$	141,679	$	1,448,776
Ultra Long U.S. Treasury Bond		(13	)		12/19/17		2,142		36,172
2-Year U.S. Treasury Note		(368	)		12/29/17		79,252		120,120
5-Year U.S. Treasury Note		(24	)		12/29/17		2,813		3,158

Total								$	1,608,226


24		2017 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued)

October 31, 2017

BlackRock Credit Allocation Income Trust (BTZ)

OTC Interest Rate Swaptions Purchased

Description

Counterparty

Expiration
Date

Exercise
Rate

Received by the Trust

Paid by the Trust

Notional
Amount (000)

Value

Rate

Frequency

Rate

Frequency

Put

30-Year Interest Rate Swap, 6/08/49

JPMorgan Chase Bank N.A.

6/06/19

3.50

3-Month LIBOR

Quarterly

3.50

Semi-annual

USD

22,700

387,316

30-Year Interest Rate Swap, 6/08/49

Goldman Sachs Bank USA

6/06/19

3.50

3-Month LIBOR

Quarterly

3.50

Semi-annual

USD

25,330

432,190

819,506

Centrally Cleared Interest Rate Swaps