Edgar Filing: BLACKROCK DEBT STRATEGIES FUND, INC.

BLACKROCK DEBT STRATEGIES FUND, INC.

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 811-08603

Name of Fund: BlackRock Debt Strategies Fund, Inc. (DSU)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Debt Strategies

Fund, Inc., 55 East 52^nd Street, New York, NY 10055

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

Date of fiscal year end: 02/28/2019

Date of reporting period: 08/31/2018

Item 1 – Report to Stockholders

AUGUST 31, 2018


SEMI-ANNUAL REPORT (UNAUDITED)

BlackRock Debt Strategies Fund, Inc. (DSU)

Not FDIC Insured • May Lose Value • No Bank Guarantee

The Markets in Review

Dear Shareholder,

In the 12 months ended August 31, 2018, the strongest corporate profits in seven years drove the equity market higher, while rising interest rates constrained bond returns. Though the market’s appetite for risk remained healthy, risk-taking was tempered somewhat, as shorter-term, higher-quality securities led the bond market, and U.S. equities outperformed most international stock markets.

Volatility in emerging market stocks rose as U.S.-China trade relations and debt concerns adversely affected the Chinese stock market, while Turkey and Argentina became embroiled in currency crises, largely due to hyperinflation in both countries. An economic slowdown in Europe led to modest performance for European equities.

Short-term U.S. Treasury interest rates rose the fastest, while longer-term rates slightly increased, leading to a negative return for long-term U.S. Treasuries and a substantial flattening of the yield curve. Many investors are concerned with the flattening yield curve as a harbinger of recession, but given the extraordinary monetary measures in the last decade, we believe a more accurate barometer for the economy is the returns along the risk spectrums in stock and bond markets. Although the fundamentals in credit markets remained relatively solid, investment-grade bonds declined slightly, and high-yield bonds posted modest returns.

In response to rising growth and inflation, the U.S. Federal Reserve (the “Fed”) increased short-term interest rates three times during the reporting period. The Fed also reduced its $4.2 trillion balance sheet by approximately $230 billion during the reporting period, gradually reversing the unprecedented stimulus measures it enacted after the financial crisis. Meanwhile, the European Central Bank announced that its bond-purchasing program would conclude at the end of the year, while also expressing its commitment to low interest rates. In contrast, the Bank of Japan continued to expand its balance sheet through bond purchasing while lowering its expectations for inflation.

The U.S. economy continued to gain momentum despite the Fed’s modest reduction of economic stimulus; unemployment declined to 3.9%, wages increased, and the number of job openings reached a record high. Strong economic performance may justify a more rapid pace of rate hikes in 2018, as the headline inflation rate and investors’ expectations for inflation have already surpassed the Fed’s target of 2.0%.

While U.S. monetary policy is seeking to restrain economic growth and inflation, fiscal policy has produced new sources of growth that could nourish the economy for the next few years. Corporate tax cuts and repatriation of capital held abroad could encourage a virtuous cycle of business spending. Lower individual tax rates coupled with the robust job market may refresh consumer spending.

We continue to believe the primary risks to economic expansion are trade protectionism, rapidly rising interest rates, and geopolitical tension. Given the deflationary forces of technology and globalization, a substantial increase in inflation is unlikely to materialize as long as the unemployment rate remains above 3.0%. However, we are closely monitoring trade protectionism and the rise of populism in Western nations. In particular, the outcome of trade negotiations between the United States and China is likely to influence the global growth trajectory and set the tone for free trade in many other nations.

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 August 31, 2018
	6-month	12-month
U.S. large cap equities (S&P 500^® Index)	7.96%	19.66%
U.S. small cap equities (Russell 2000^® Index)	15.84	25.45
International equities (MSCI Europe, Australasia, Far East Index)	(2.55)	4.39
Emerging market equities (MSCI Emerging Markets Index)	(10.18)	(0.68)
3-month Treasury bills (ICE BofAML 3-Month U.S. Treasury Bill Index)	0.93	1.52
U.S. Treasury securities (ICE BofAML 10-Year U.S. Treasury Index)	1.42	(4.13)
U.S. investment grade bonds (Bloomberg Barclays U.S. Aggregate Bond Index)	1.15	(1.05)
Tax-exempt municipal bonds (S&P Municipal Bond Index)	1.78	0.61
U.S. high yield bonds (Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index)	2.26	3.40
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
Semi-Annual Report:
Fund Summary		4
The Benefits and Risks of Leveraging		7
Derivative Financial Instruments		7
Financial Statements:
Schedule of Investments		8
Statement of Assets and Liabilities		33
Statement of Operations		34
Statements of Changes in Net Assets		35
Statement of Cash Flows		36
Financial Highlights		37
Notes to Financial Statements		38
Disclosure of Investment Advisory Agreement		48
Director and Officer Information		51
Additional Information		52
Glossary of Terms Used in this Report		54


			3


Fund Summary as of August 31, 2018		BlackRock Debt Strategies Fund, Inc.

Fund Overview

BlackRock Debt Strategies Fund, Inc.’s (DSU) (the “Fund”) primary investment objective is to seek to provide current income by investing primarily in a diversified portfolio of U.S. companies’ debt instruments, including corporate loans, which are rated in the lower rating categories of the established rating services (BBB or lower by S&P’s or Baa or lower by Moody’s) or unrated debt instruments, which are in the judgment of the investment adviser of equivalent quality. Corporate loans include senior and subordinated corporate loans, both secured and unsecured. The Fund may invest directly in debt instruments or synthetically through the use of derivatives. The Fund’s secondary investment objective is to provide capital appreciation.

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

Fund Information


Symbol on New York Stock Exchange (“NYSE”)		DSU
Initial Offering Date		March 27, 1998
Current Distribution Rate on Closing Market Price as of August 31, 2018 ($11.34)^(a)		7.25%
Current Monthly Distribution per Common Share^(b)		$0.0685
Current Annualized Distribution per Common Share^(b)		$0.8220
Economic Leverage as of August 31, 2018^(c)		32%

^(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 bank borrowings outstanding as a percentage of total managed assets, which is the total assets of the Fund (including any assets attributable to borrowings) minus the sum of liabilities (other than borrowings representing financial leverage). For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 7.

Market Price and Net Asset Value Per Share Summary


	08/31/18		02/28/18		Change			High		Low
Market Price	$	11.34	$	11.47		(1.13	)%	$	11.72	$	11.11
Net Asset Value		12.58		12.62		(0.32	)		12.69		12.44

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

LOGO


4		2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Fund Summary as of August 31, 2018 (continued)		BlackRock Debt Strategies Fund, Inc.

Performance and Portfolio Management Commentary

Returns for the period ended August 31, 2018 were as follows:


				Average Annual Total Returns
	6-Month			1 Year			3 Years			5 Years
Fund at NAV^(a)(b)		3.34	%		6.45	%		8.09	%		7.01	%
Fund at Market Price^(a)(b)		2.49			4.97			10.07			6.76
Reference Benchmark^(c)		2.20			4.14			5.94			4.85
Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index^(d)		2.26			3.40			7.02			5.64
S&P/LSTA Leveraged Loan Index^(e)		2.14			4.88			4.85			4.04

^(a)

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

^(b)

The Fund’s discount to NAV widened 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. Corporate High Yield 2% Issuer Capped Index (50%) and the S&P/LSTA Leveraged Loan Index (50%). The Reference Benchmark’s index content and weightings may have varied over past periods.

^(d)

An unmanaged index comprised of issuers 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.

^(e)

An unmanaged market value-weighted index 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.

DSU is presenting the Reference Benchmark to accompany fund performance. The Reference Benchmark is presented for informational purposes only, as the Fund 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 Fund may differ substantially from the securities that comprise the indices within the Reference Benchmark, which may cause the Fund’s performance to differ materially from that of the Reference Benchmark. The Fund 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 Fund outperforming the Reference Benchmark in rising markets and underperforming in declining markets. The Board considers additional factors to evaluate the Fund’s performance, such as the performance of the Fund relative to a peer group of funds, a leverage-adjusted benchmark and/or other information provided by the Manager.

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

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

What factors influenced performance?

From a credit rating perspective, the Fund’s positions in B-rated and non-rated (namely, equity) securities provided the largest performance contributions over the period, as lower quality assets rallied. Most sectors within both high yield corporates and floating rate loan interests (“bank loans’) provided positive returns, with technology, health care and chemicals, providing the strongest contributions to performance. In addition, high yield exchange-traded funds, positions in collateralized loan obligations (“CLOs”) and equity holdings were substantial positive contributors.

Holdings within the automotive and banking sectors represented the most notable detractors from performance, followed by positions in consumer products.

Describe recent portfolio activity.

During the period, the portfolio’s beta (a measure of relative risk exposure versus the broader market) remained more or less in line with the market at approximately 1.00. The investment adviser remains focused on measured risk-taking at this point in the market cycle. From an asset allocation perspective, the Fund added to its bank loan positioning relative to high yield bonds as these senior secured positions offer attractive yield with next to no duration (and corresponding sensitivity to changes in interest rates). The Fund reduced its overall CLO exposure, which ended the period at approximately 8.6% of assets.

Other notable exposures included preferred and common equities as well as investment grade bonds. On a sector basis, the Fund added to its positions within the technology, chemicals and pharmaceuticals sectors. By contrast, the Fund reduced its exposure to metals & mining, health care and transportation. In terms of credit ratings, the Fund trimmed its holdings in BB-rated securities, while adding B-rated names.

Describe portfolio positioning at period end.

At period end, the Fund’s largest positions were within the technology, cable & satellite and health care sectors. By contrast, the Fund avoided consumer cyclical, retail and automotive issuers as fundamental headwinds for those segments remain. Within energy, the Fund favored higher quality issuers within the independent energy sector, while approaching more cyclical names within oil field services with caution.

The Fund’s core positioning remained within BB-rated and B-rated issues, with a higher allocation to B-rated names. The Fund also held a CCC-rated allocation. Issuer selection remained centered on favorable cash flows, identification of specific catalysts for price improvement, and/or idiosyncratic characteristics. The Fund also remained focused on industries and companies with stable business profiles and consistent cash flows, while avoiding areas of the markets with longer-term concerns and/or deteriorating fundamental trends.

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.


FUND SUMMARY			5


Fund Summary as of August 31, 2018 (continued)		BlackRock Debt Strategies Fund, Inc.

Overview of the Fund’s Total Investments

PORTFOLIO COMPOSITION


	08/31/18			02/28/18
Floating Rate Loan Interests		58	%		56	%
Corporate Bonds		34			36
Asset-Backed Securities		6			7
Investment Companies		—			—	^(a)
Preferred Securities		1			1
Common Stock		1			—	^(a)
Other		—	^(b)		—	^(c)

^(a)

Representing less than 1% of the Fund’s total investments.

^(b)

Includes a less than 1% holding in each of the following investment types: Options Purchased, Other Interests and Warrants.

^(c)

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

CREDIT QUALITY ALLOCATION^(d)


	08/31/18			02/28/18
A		4	%		3	%
BBB/Baa		5			11
BB/Ba		31			37
B		48			38
CCC/Caa		9			5
N/R		3			6

^(d)

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either Standard & Poor’s or Moody’s Investors Service. 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.


6		2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

The Benefits and Risks of Leveraging

The Fund may utilize leverage to seek to enhance the distribution rate on, and net asset value (“NAV”) of, its common shares (“Common Shares”). However, there is no guarantee that these objectives can 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 the Fund on its longer-term portfolio investments purchased with the proceeds from leverage. To the extent that the total assets of the Fund (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, the Fund’s 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 the Fund’s capitalization is $100 million and it utilizes leverage for an additional $30 million, creating a total value of $130 million available for investment in longer-term income securities. If prevailing short-term interest rates are 3% and longer-term interest rates are 6%, the yield curve has a strongly positive slope. In this case, the Fund’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 the Fund with the proceeds from leverage earn income based on longer-term interest rates. In this case, the Fund’s financing cost of leverage is significantly lower than the income earned on the Fund’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 Fund’s return on assets purchased with leverage proceeds, income to shareholders is lower than if the Fund had not used leverage. Furthermore, the value of the Fund’s portfolio investments generally varies inversely with the direction of long-term interest rates, although other factors can influence the value of portfolio investments. In contrast, the value of the Fund’s obligations under its leverage arrangement generally does not fluctuate in relation to interest rates. As a result, changes in interest rates can influence the Fund’s 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 Fund’s intended leveraging strategy will be successful.

The use of leverage also generally causes greater changes in the Fund’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 the Fund’s shares than if the Fund were not leveraged. In addition, the Fund may be required to sell portfolio securities at inopportune times or at distressed values in order to comply with regulatory requirements applicable to the use of leverage or as required by the terms of leverage instruments, which may cause the Fund to incur losses. The use of leverage may limit the Fund’s ability to invest in certain types of securities or use certain types of hedging strategies. The Fund 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 Fund’s investment advisory fees includes assets purchased with the proceeds of leverage, the investment advisory fees payable to the Fund’s investment adviser will be higher than if the Fund did not use leverage.

The Fund may utilize leverage through a credit facility as described in the Notes to Financial Statements.

Under the Investment Company Act of 1940, as amended (the “1940 Act”), the Fund is permitted to issue debt up to 33¹⁄₃% of its total managed assets. The Fund may voluntarily elect to limit its leverage to less than the maximum amount permitted under the 1940 Act. In addition, the Fund 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.

Derivative Financial Instruments

The Fund may invest in various derivative financial instruments. These instruments are used to obtain exposure to a security, commodity, index, market, and/or other assets without owning or taking physical custody of securities, commodities and/or other referenced assets or to manage market, equity, credit, interest rate, foreign currency exchange rate, commodity and/or other risks. Derivative financial instruments may give rise to a form of economic leverage and involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the instrument. The Fund’s 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 the Fund can realize on an investment and/or may result in lower distributions paid to shareholders. The Fund’s 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			7

Schedule of Investments (unaudited)

August 31, 2018

BlackRock Debt Strategies Fund, Inc. (DSU)

(Percentages shown are based on Net Assets)


Security		Shares		Value
Common Stocks — 1.0%

Chemicals — 0.2%
GEO Specialty Chemicals, Inc.^(a)(b)(c)			3,062,990	$	1,182,234
LyondellBasell Industries NV, Class A			26		2,932

					1,185,166
Diversified Financial Services — 0.6%
Kcad Holdings I Ltd.^(a)(c)			1,075,282,733		4,075,322

Health Care Management Services — 0.0%
New Millennium HoldCo, Inc.^(c)			10,718		107

Independent Power and Renewable Electricity Producers — 0.2%
Vistra Energy Corp.^(c)			39,599		932,160

Internet Software & Services — 0.0%
New Holdings LLC			252		83,160

Media — 0.0%
Adelphia Communications Corp., Class A^(a)(c)			400,000		4
Adelphia Recovery Trust^(c)			396,568		198

					202
Metals & Mining — 0.0%
Ameriforge Group, Inc.			1,664		96,512

Semiconductors & Semiconductor Equipment — 0.0%
SunPower Corp.^(c)			1,707		11,471

Total Common Stocks — 1.0% (Cost — $21,334,060)					6,384,100


		Par (000)
Asset-Backed Securities — 8.8%

Asset-Backed Securities — 8.8%
ALM XVI Ltd./ALM XVI LLC, Series 2015-16A, Class CR2, 5.04%, 07/15/27^(b)(d)	USD		1,650		1,638,753
ALM XVI Ltd/ALM XVI LLC, Series 2015-16A, Class BR2, 4.24%, 07/15/27^(b)(d)			1,000		993,545
Anchorage Capital CLO 5-R, Ltd., Series 2014-5RA, Class C, 4.19%, 01/15/30^(b)(d)			2,000		1,989,153
Anchorage Capital CLO 6 Ltd., Series 2015-6A, Class CR, (3 mo. LIBOR US + 2.40%), 4.74%, 07/15/30^(b)(e)			700		701,080
Anchorage Capital CLO Ltd., Series 2013-1A, Class BR, 4.49%, 10/13/30^(b)(d)			1,000		1,000,654
Apidos CLO XII, Series 2013-12A, Class AR, 3.42%, 04/15/31^(b)(d)			776		774,910
Ares XLIV CLO Ltd., Series 2017-44A^(b)(e):
Class C, (3 mo. LIBOR US + 3.45%), 5.79%, 10/15/29			1,000		1,007,238
Class D, (3 mo. LIBOR US + 6.55%), 8.89%, 10/15/29			1,000		1,018,766
Ares XXVII CLO Ltd., Series 2013-2A^(b)(e):
Class CR, (3 mo. LIBOR US + 2.40%), 4.74%, 07/28/29			1,400		1,404,343
Class DR, (3 mo. LIBOR US + 3.75%), 6.09%, 07/28/29			1,000		1,010,965
Benefit Street Partners CLO XII Ltd., Series 2017-12A^(b)(d):
Class B, 4.34%, 10/15/30			1,000		994,761
Class C, 5.39%, 10/15/30			1,250		1,252,006
BlueMountain CLO Ltd., Series 2014-3A, Class CR, (3 mo. LIBOR US + 3.20%), 5.54%, 10/15/26^(b)(e)			1,000		1,000,502


Security		Par (000)		Value
Asset-Backed Securities (continued)
Burnham Park CLO Ltd., Series 2016-1A, Class D, (3 mo. LIBOR US + 3.85%), 6.20%, 10/20/29^(b)(e)	USD		1,000	$	1,003,901
Carlyle Global Market Strategies CLO Ltd.^(b):
Series 2012-4A, Class DR, (3 mo. LIBOR US + 4.10%), 6.45%, 01/20/29^(e)			1,000		1,007,963
Series 2015-1A, Class CR, (3 mo. LIBOR US + 2.00%), 4.35%, 04/20/27^(e)			1,250		1,251,079
Series 2015-1A, Class E1, (3 mo. LIBOR US + 5.30%), 7.65%, 04/20/27^(e)			1,000		1,005,055
Series 2015-2A, Class CR, 4.59%, 04/27/27^(d)			250		250,053
Catskill Park CLO, Ltd., Series 2017-1A, Class C, (3 mo. LIBOR US + 3.70%), 6.05%, 04/20/29^(b)(e)			1,000		1,009,002
CBAM 2017-3, Ltd., Series 2017-3A, Class E, 8.84%, 10/17/29^(b)(d)			1,000		1,013,203
Cedar Funding IV CLO, Ltd., Series 2014-4A, Class DR, (3 mo. LIBOR US + 3.65%), 6.00%, 07/23/30^(b)(e)			1,500		1,509,779
CIFC Funding III Ltd., Series 2014-3A, Class C1R, (3 mo. LIBOR US + 1.90%), 4.25%, 07/22/26^(b)(e)			1,375		1,375,716
CIFC Funding Ltd., Series 2014-3A, Class DR, (3 mo. LIBOR US + 3.15%), 5.50%, 07/22/26^(b)(e)			1,000		1,000,360
Dryden Senior Loan Fund, Series 2014-36A, Class DR, (3 mo. LIBOR US + 4.24%), 6.58%, 01/15/28^(b)(e)			1,000		1,008,062
Elevation CLO Ltd., Series 2013-1A, Class CR, (3 mo. LIBOR + 4.68%), 6.99%, 11/15/28^(b)(e)			800		805,167
Greenwood Park CLO, Ltd., Series 2018-1A, Class E, 6.98%, 04/15/31^(b)(d)			425		408,694
Highbridge Loan Management Ltd., Series 5A-2015^(b)(e):
Class C1R, (3 mo. LIBOR US + 2.10%), 4.44%, 01/29/26			1,250		1,250,575
Class C2R, (3 mo. LIBOR US + 2.10%), 4.44%, 01/29/26			500		500,722
Class D1R, (3 mo. LIBOR US + 3.30%), 5.64%, 01/29/26			1,250		1,250,952
LCM XV LP, Series 15A^(b)(e):
Class CR, (3 mo. LIBOR US + 2.40%), 4.75%, 07/20/30			2,250		2,259,348
Class DR, (3 mo. LIBOR US + 3.70%), 6.06%, 07/20/30			1,250		1,262,317
LCM XXV, Ltd., Series 25A, Class D, (3 mo. LIBOR US + 3.45%), 5.80%, 07/20/30^(b)(e)			1,000		1,008,341
Madison Park Funding Ltd., Series 2018-27A, Class B, 4.15%, 04/20/30^(b)(d)			1,000		987,967
Madison Park Funding X, Ltd., Series 2012-10A, Class DR, (3 mo. LIBOR US + 4.20%), 6.55%, 01/20/29^(b)(e)			1,500		1,512,490
Madison Park Funding XIV Ltd., Series 2014-14A, Class DR, (3 mo. LIBOR US + 3.25%), 5.60%, 07/20/26^(b)(e)			1,015		1,017,405
Madison Park Funding XVI Ltd., Series 2015-16A, Class D, (3 mo. LIBOR US + 5.50%), 7.85%, 04/20/26^(b)(e)			1,000		1,002,120
MP CLO VII, Ltd., Series 2015-1A, Class DR, 4.83%, 04/18/27^(b)(d)			280		279,958
Neuberger Berman CLO XV Ltd., Series 2013-15A, Class CR, 4.39%, 10/15/29^(b)(d)			1,000		998,805


8		2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (unaudited) (continued)

August 31, 2018

BlackRock Debt Strategies Fund, Inc. (DSU)

(Percentages shown are based on Net Assets)


Security		Par (000)		Value
Asset-Backed Securities (continued)
Neuberger Berman CLO XVII Ltd., Series 2014-17A, Class DR, (3 mo. LIBOR US + 3.65%), 6.00%, 04/22/29^(b)(e)	USD		1,000	$	1,008,988
Neuberger Berman CLO XVIII Ltd., Series 2014-18A, Class CR, (3 mo. LIBOR US + 4.25%), 6.57%, 11/14/27^(b)(e)			1,000		1,006,110
OCP CLO Ltd., Series 2012-2A, Class DR, (3 mo. LIBOR US + 4.47%), 6.78%, 11/22/25^(b)(e)			1,000		1,005,066
Octagon Investment Partners XXII Ltd., Series 2014-1A, Class CRR, 4.25%, 01/22/30^(b)(d)			1,500		1,487,831
OZLM Funding IV Ltd., 4.55%, 10/22/30^(b)(d)			1,000		1,000,828
OZLM Funding, Ltd., Series 2012-1A^(b)(e):
Class BR2, (3 mo. LIBOR US + 2.30%), 4.65%, 07/23/29			1,000		1,003,471
Class CR2, (3 mo. LIBOR US + 3.60%), 5.95%, 07/23/29			1,000		1,009,694
OZLM IX Ltd., Series 2014-9A Class CR, (3 mo. LIBOR US + 3.55%), 5.90%, 01/20/27^(b)(e)			750		750,786
Palmer Square CLO Ltd., Series 2015-2A^(b)(e):
Class CR, (3 mo. LIBOR US + 3.70%), 6.05%, 07/20/30			1,200		1,209,772
Class DR, (3 mo. LIBOR US + 6.50%), 8.85%, 07/20/30			1,000		1,021,466
Recette CLO Ltd., Series 2015-1A, Class DR, 5.10%, 10/20/27^(b)(d)			1,000		996,315
Symphony CLO Ltd.(3 mo. LIBOR US + 3.65%), 5.99%, 07/15/28^(b)(e)			1,700		1,700,014
THL Credit Wind River 2014-3 CLO, Ltd., Series 2014-3A, Class C1R, (3 mo. LIBOR US + 2.20%), 4.55%, 01/22/27^(b)(e)			1,000		1,001,147
Webster Park CLO Ltd., Series 2015-1A, Class CR, 5.25%, 07/20/30^(b)(d)			500		495,052
York CLO 1 Ltd:
Series 2014-1A, Class CRR, 1.00%, 10/22/29^(a)(b)(d)(f)			1,500		1,500,000
Series 2014-1A, Class CR, (3 mo. LIBOR US + 2.35%), 4.69%, 01/22/27^(b)(e)			1,500		1,498,083

Total Asset-Backed Securities — 8.8% (Cost — $58,243,375)					58,460,333


Corporate Bonds — 50.4%

Aerospace & Defense — 1.6%
Arconic, Inc.:
5.13%, 10/01/24			1,194		1,199,373
5.90%, 02/01/27			280		283,528
BBA US Holdings, Inc., 5.38%, 05/01/26^(b)			327		327,818
Bombardier, Inc.^(b):
7.75%, 03/15/20			168		176,400
8.75%, 12/01/21			122		134,200
6.00%, 10/15/22			1,356		1,359,390
6.13%, 01/15/23			1,285		1,294,637
7.50%, 12/01/24			750		788,438
7.50%, 03/15/25			925		950,437
KLX, Inc., 5.88%, 12/01/22^(b)			555		574,425
Koppers, Inc., 6.00%, 02/15/25^(b)			606		609,030
TransDigm UK Holdings PLC, 6.88%, 05/15/26^(b)			693		711,067
TransDigm, Inc.:
6.00%, 07/15/22			407		411,070
6.50%, 07/15/24			609		618,896
6.38%, 06/15/26			1,252		1,265,302

					10,704,011


Security		Par (000)		Value
Air Freight & Logistics — 0.0%
XPO Logistics, Inc., 6.50%, 06/15/22^(b)	USD		96	$	99,165

Airlines — 0.2%
US Airways Pass-Through Trust, Series 2013-1, Class B, 5.38%, 05/15/23			1,013		1,040,513
Virgin Australia Trust, Series 2013-1, Class C, 7.13%, 10/23/18^(b)			123		123,276

					1,163,789
Auto Components — 0.7%
Allison Transmission, Inc., 5.00%, 10/01/24^(b)			685		674,725
Fiat Chrysler Automobiles NV, 3.75%, 03/29/24	EUR		100		125,317
Fiat Chrysler Finance Europe, 4.75%, 07/15/22			100		129,855
GKN Holdings PLC, 3.38%, 05/12/32	GBP		100		132,629
Goodyear Tire & Rubber Co., 5.00%, 05/31/26	USD		133		124,854
HP Pelzer Holding GmbH, 4.13%, 04/01/24	EUR		100		116,510
Icahn Enterprises LP/Icahn Enterprises Finance Corp.:
6.25%, 02/01/22	USD		829		851,716
6.38%, 12/15/25			379		383,737
IHO Verwaltungs GmbH^(g):
(2.75% Cash or 3.50% PIK), 2.75%, 09/15/21	EUR		100		117,605
(3.25% Cash or 4.00% PIK), 3.25%, 09/15/23			100		118,961
(3.75% Cash or 4.50% PIK), 3.75%, 09/15/26			100		119,084
(4.50% Cash or 5.25% PIK), 4.50%, 09/15/23^(b)	USD		700		679,000
Jaguar Land Rover Automotive PLC, 5.63%, 02/01/23^(b)			425		419,156
Tesla, Inc., 5.30%, 08/15/25^(b)			518		448,070
Venture Holdings Co. LLC^(a)(c)(h):
12.00%, 06/01/09			5,150		—
Series B, 9.50%, 07/01/05			5,125		—
Volvo Car AB, 2.00%, 01/24/25	EUR		100		114,901

					4,556,120
Banks — 0.2%
Allied Irish Banks PLC (5 year EUR Swap + 3.95%), 4.13%, 11/26/25⁽ⁱ⁾			100		122,898
Banco Espirito Santo SA^(c)(h):
2.63%, 05/08/17			100		34,823
4.75%, 01/15/19			200		66,743
4.00%, 01/21/19			100		34,242
Banco Popolare, 2.75%, 07/27/20			100		116,935
Bank of Ireland (5 year EUR Swap + 3.55%), 4.25%, 06/11/24⁽ⁱ⁾			100		118,924
Bankia SA⁽ⁱ⁾:
(5 year EUR Swap + 3.17%), 4.00%, 05/22/24			100		118,344
(5 year EUR Swap + 3.35%), 3.38%, 03/15/27			100		118,772
CaixaBank SA (5 year EUR Swap + 3.35%), 3.50%, 02/15/27⁽ⁱ⁾			100		121,832
CIT Group, Inc.:
5.00%, 08/15/22	USD		74		75,480
5.25%, 03/07/25			108		109,822
IKB Deutsche Industriebank AG, 4.00%, 01/31/28^(d)	EUR		100		115,654
Intesa Sanpaolo SpA, 2.13%, 08/30/23			100		115,623

					1,270,092
Beverages — 0.0%
BWAY Holding Co., 4.75%, 04/15/24	EUR		100		119,076

Building Materials — 0.0%
Titan Global Finance PLC, 3.50%, 06/17/21			100		121,281

Building Products — 0.3%
Beacon Escrow Corp., 4.88%, 11/01/25^(b)	USD		314		289,665


SCHEDULE OF INVESTMENTS			9

Schedule of Investments (unaudited) (continued)

August 31, 2018

BlackRock Debt Strategies Fund, Inc. (DSU)

(Percentages shown are based on Net Assets)


Security		Par (000)		Value
Building Products (continued)
Building Materials Corp. of America, 6.00%, 10/15/25^(b)	USD		464	$	474,524
CPG Merger Sub LLC, 8.00%, 10/01/21^(b)			446		452,690
Masonite International Corp., 5.75%, 09/15/26^(b)			170		171,700
Standard Industries, Inc.^(b):
5.50%, 02/15/23			4		4,091
5.38%, 11/15/24			252		252,315
USG Corp., 4.88%, 06/01/27^(b)			214		216,613

					1,861,598
Capital Markets — 0.7%
Blackstone CQP Holdco LP^(b):
6.50%, 03/20/21			3,526		3,536,058
6.00%, 08/18/21			576		570,350
Lions Gate Capital Holdings LLC, 5.88%, 11/01/24^(b)			231		238,219
NFP Corp., 6.88%, 07/15/25^(b)			106		103,880

					4,448,507
Chemicals — 3.7%
Alpha 3 BV/Alpha US Bidco, Inc., 6.25%, 02/01/25^(b)			800		788,000
Axalta Coating Systems Dutch Holding B BV, 3.75%, 01/15/25	EUR		100		120,045
Axalta Coating Systems LLC, 4.88%, 08/15/24^(b)	USD		660		655,875
Blue Cube Spinco, Inc.:
9.75%, 10/15/23			364		412,685
10.00%, 10/15/25			581		672,508
CF Industries, Inc., 5.15%, 03/15/34			185		174,363
Chemours Co.:
6.63%, 05/15/23			140		146,650
7.00%, 05/15/25			121		129,168
5.38%, 05/15/27			1,205		1,183,912
GEO Specialty Chemicals, Inc., 15.24%, 10/18/25^(a)			7,378		11,204,412
Hexion, Inc., 10.38%, 02/01/22^(b)			311		306,033
Huntsman International LLC, 5.13%, 11/15/22			901		929,156
INEOS Finance PLC, 4.00%, 05/01/23	EUR		100		118,412
INEOS Group Holdings SA, 5.38%, 08/01/24			100		122,053
Momentive Performance Materials, Inc., 3.88%, 10/24/21	USD		2,375		2,535,312
Olin Corp., 5.00%, 02/01/30			281		268,355
Platform Specialty Products Corp.^(b):
6.50%, 02/01/22			2,045		2,091,012
5.88%, 12/01/25			910		903,175
PQ Corp.^(b):
6.75%, 11/15/22			509		531,905
5.75%, 12/15/25			507		499,395
PSPC Escrow Corp., 6.00%, 02/01/23	EUR		100		121,734
WR Grace & Co-Conn, 5.13%, 10/01/21^(b)	USD		410		421,275

					24,335,435
Commercial Services & Supplies — 0.6%
ADT Corp.:
3.50%, 07/15/22			299		282,929
4.13%, 06/15/23			304		289,180
4.88%, 07/15/32^(b)			736		599,840
Advanced Disposal Services, Inc., 5.63%, 11/15/24^(b)			310		310,000
CD&R Waterworks Merger Sub LLC, 6.13%, 08/15/25^(b)			305		292,800
Harland Clarke Holdings Corp., 8.38%, 08/15/22^(b)			740		693,750
KAR Auction Services, Inc., 5.13%, 06/01/25^(b)			258		252,840
Mobile Mini, Inc., 5.88%, 07/01/24			104		105,560


Security		Par (000)		Value
Commercial Services & Supplies (continued)
Paprec Holding SA, 4.00%, 03/31/25	EUR		100	$	117,209
Park Aerospace Holdings Ltd.^(b):
3.63%, 03/15/21	USD		62		60,915
5.25%, 08/15/22			32		32,600
5.50%, 02/15/24			136		139,740
Ritchie Bros Auctioneers, Inc., 5.38%, 01/15/25^(b)			152		150,480
United Rentals North America, Inc.:
4.63%, 07/15/23			114		115,225
5.75%, 11/15/24			165		170,313
5.50%, 07/15/25			2		2,040
4.63%, 10/15/25			292		285,430
5.50%, 05/15/27			177		176,557
Verisure Holding AB, 6.00%, 11/01/22	EUR		113		135,658

					4,213,066
Communications Equipment — 0.7%
CommScope Technologies LLC^(b):
6.00%, 06/15/25	USD		105		108,675
5.00%, 03/15/27			19		18,478
CommScope, Inc., 5.50%, 06/15/24^(b)			227		229,837
Zayo Group LLC/Zayo Capital, Inc.:
6.00%, 04/01/23			1,921		1,979,917
6.38%, 05/15/25			92		96,140
5.75%, 01/15/27^(b)			2,120		2,125,300

					4,558,347
Construction & Engineering — 0.6%
BlueLine Rental Finance Corp., 9.25%, 03/15/24^(b)			1,884		1,978,200
Brand Energy & Infrastructure Services, Inc., 8.50%, 07/15/25^(b)			502		515,805
Engility Corp., 8.88%, 09/01/24			468		499,590
frontdoor, Inc., 6.75%, 08/15/26^(b)			220		225,225
Pisces Midco, Inc., 8.00%, 04/15/26^(b)			208		213,200
SPIE SA, 3.13%, 03/22/24	EUR		100		116,641
SRS Distribution, Inc., 8.25%, 07/01/26^(b)	USD		265		249,100
Tutor Perini Corp., 6.88%, 05/01/25^(b)			182		185,185
Weekley Homes LLC/Weekley Finance Corp., 6.63%, 08/15/25			52		49,140

					4,032,086
Construction Materials — 0.6%
American Builders & Contractors Supply Co., Inc., 5.88%, 05/15/26^(b)			324		324,389
HD Supply, Inc., 5.75%, 04/15/24^(b)			3,295		3,463,869
PulteGroup, Inc., 5.50%, 03/01/26			235		233,238
Rexel SA, 3.50%, 06/15/23	EUR		130		156,865

					4,178,361
Consumer Discretionary — 0.3%
Blitz F18-674 GmbH, 6.00%, 07/30/26			100		116,580
Staples, Inc., 8.50%, 09/15/25^(b)	USD		512		483,789
Viking Cruises Ltd.^(b):
6.25%, 05/15/25			122		123,220
5.88%, 09/15/27			1,273		1,250,722

					1,974,311
Consumer Finance — 0.9%
Ally Financial, Inc.:
5.13%, 09/30/24			1,207		1,234,157
8.00%, 11/01/31			1,055		1,289,737
Navient Corp.:
6.63%, 07/26/21			177		184,301
6.50%, 06/15/22			326		337,100
5.50%, 01/25/23			195		192,804


10		2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (unaudited) (continued)

August 31, 2018

BlackRock Debt Strategies Fund, Inc. (DSU)

(Percentages shown are based on Net Assets)


Security		Par (000)		Value
Consumer Finance (continued)
7.25%, 09/25/23	USD		10	$	10,550
5.88%, 10/25/24			134		129,645
6.75%, 06/15/26			230		225,688
5.63%, 08/01/33			260		218,400
Nexi Capital SpA, 3.63%, 05/01/23^(d)	EUR		100		115,495
Springleaf Finance Corp.:
5.63%, 03/15/23	USD		22		21,945
6.88%, 03/15/25			395		395,119
7.13%, 03/15/26			1,110		1,104,528
Verscend Escrow Corp., 9.75%, 08/15/26^(b)			568		582,030

					6,041,499
Containers & Packaging — 1.1%
Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc.:
4.63%, 05/15/23^(b)			653		647,286
6.75%, 05/15/24	EUR		125		156,796
7.25%, 05/15/24^(b)	USD		1,820		1,913,275
4.75%, 07/15/27	GBP		100		126,247
BWAY Holding Co.^(b):
5.50%, 04/15/24	USD		482		478,987
7.25%, 04/15/25			45		43,875
Crown Americas LLC/Crown Americas Capital Corp.:
4.75%, 02/01/26^(b)			559		536,640
4.25%, 09/30/26			327		300,022
Mercer International, Inc., 6.50%, 02/01/24			144		147,600
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC:
6.88%, 02/15/21			57		57,893
(3 mo. LIBOR US + 3.50%), 5.84%, 07/15/21^(b)(e)			1,304		1,318,670
5.13%, 07/15/23^(b)			98		97,633
7.00%, 07/15/24^(b)			1,057		1,073,912
Sappi Papier Holding GmbH, 4.00%, 04/01/23	EUR		100		120,080
Sealed Air Corp., 4.88%, 12/01/22^(b)	USD		178		178,890
Silgan Holdings, Inc., 3.25%, 03/15/25	EUR		100		119,174
Smurfit Kappa Acquisitions ULC, 2.88%, 01/15/26			100		118,963

					7,435,943
Diversified Consumer Services — 0.5%
APX Group, Inc.:
8.75%, 12/01/20	USD		322		322,000
7.88%, 12/01/22			436		445,265
Laureate Education, Inc., 8.25%, 05/01/25^(b)			119		128,371
Pinnacle Bidco PLC, 6.38%, 02/15/25	GBP		100		132,724
Prime Security Services Borrower LLC/Prime Finance, Inc., 9.25%, 05/15/23^(b)	USD		1,836		1,966,907

					2,995,267
Diversified Financial Services — 0.5%
Arrow Global Finance PLC (3 mo. Euribor + 2.88%), 2.88%, 04/01/25⁽ⁱ⁾	EUR		100		107,902
Banca IFIS SpA, 4.50%, 10/17/27^(d)			100		106,237
Cabot Financial Luxembourg SA, 7.50%, 10/01/23	GBP		100		127,044
Intrum Justitia AB, 2.75%, 07/15/22	EUR		100		112,988
Jefferies Finance LLC/JFIN Co-Issuer Corp.^(b):
7.38%, 04/01/20	USD		625		635,938
6.88%, 04/15/22			516		521,160
Tempo Acquisition LLC/Tempo Acquisition Finance Corp., 6.75%, 06/01/25^(b)			272		264,520
Travelport Corporate Finance PLC, 6.00%, 03/15/26^(b)			208		211,640


Security		Par (000)		Value
Diversified Financial Services (continued)
UniCredit SpA:
6.95%, 10/31/22	EUR		100	$	131,811
(5 year EUR Swap + 4.32%), 4.38%, 01/03/27⁽ⁱ⁾			100		117,523
Vantiv LLC/Vanity Issuer Corp.^(b):
3.88%, 11/15/25	GBP		100		126,080
4.38%, 11/15/25	USD		221		210,503
WMG Acquisition Corp., 4.13%, 11/01/24	EUR		100		120,004

					2,793,350
Diversified Telecommunication Services — 1.9%
CenturyLink, Inc.:
Series P, 7.60%, 09/15/39	USD		117		104,715
Series S, 6.45%, 06/15/21			1,679		1,746,160
Series U, 7.65%, 03/15/42			401		358,895
Series W, 6.75%, 12/01/23			170		177,225
Series Y, 7.50%, 04/01/24			553		591,710
Cincinnati Bell, Inc., 7.00%, 07/15/24^(b)			754		663,520
Embarq Corp., 8.00%, 06/01/36			410		399,750
Frontier Communications Corp.:
10.50%, 09/15/22			376		330,880
11.00%, 09/15/25			2,020		1,545,300
8.50%, 04/01/26^(b)			482		453,465
Level 3 Financing, Inc.:
5.38%, 08/15/22			713		720,130
5.13%, 05/01/23			1,120		1,117,581
5.38%, 01/15/24			646		646,000
5.38%, 05/01/25			758		748,525
5.25%, 03/15/26			340		333,234
OTE PLC, 3.50%, 07/09/20	EUR		100		121,310
SoftBank Group Corp.:
(5 year USD ICE Swap + 4.85%), 6.88%^(i)(j)	USD		735		665,175
4.00%, 04/20/23	EUR		100		121,763
Telecom Italia Capital SA:
6.38%, 11/15/33	USD		279		283,185
6.00%, 09/30/34			720		709,056
7.72%, 06/04/38			59		64,605
Telecom Italia Finance SA, 7.75%, 01/24/33	EUR		100		158,016
Telecom Italia SpA, 3.25%, 01/16/23			150		183,221
Telecom Italia SpA/Milano, 2.88%, 01/28/26			100		115,355

					12,358,776
Electric Utilities — 0.1%
AES Corp., 5.50%, 04/15/25	USD		106		108,915
DPL, Inc., 7.25%, 10/15/21			52		56,290
NextEra Energy Operating Partners LP^(b):
4.25%, 09/15/24			131		127,725
4.50%, 09/15/27			38		36,100
Talen Energy Supply LLC, 6.50%, 06/01/25			45		33,525

					362,555
Electrical Equipment — 0.0%
Areva SA, 4.88%, 09/23/24	EUR		100		123,330

Electronic Equipment, Instruments & Components — 0.3%
CDW LLC/CDW Finance Corp., 5.50%, 12/01/24	USD		1,953		2,031,120
Energizer Gamma Acquisition, Inc., 6.38%, 07/15/26^(b)			190		196,412

					2,227,532
Energy Equipment & Services — 0.9%
Ensco PLC:
4.50%, 10/01/24			64		53,120
5.20%, 03/15/25			257		214,916
7.75%, 02/01/26			528		504,240


SCHEDULE OF INVESTMENTS			11

Schedule of Investments (unaudited) (continued)

August 31, 2018

BlackRock Debt Strategies Fund, Inc. (DSU)

(Percentages shown are based on Net Assets)


Security		Par (000)		Value
Energy Equipment & Services (continued)
Gates Global LLC/Gates Global Co., 6.00%, 07/15/22^(b)	USD		390	$	393,900
Pioneer Energy Services Corp., 6.13%, 03/15/22			573		501,375
Precision Drilling Corp.:
6.50%, 12/15/21			3		3,240
7.75%, 12/15/23			150		158,625
Transocean, Inc.:
8.38%, 12/15/21			425		455,813
5.80%, 10/15/22			260		257,400
9.00%, 07/15/23^(b)			714		770,227
6.80%, 03/15/38			267		219,941
Trinidad Drilling Ltd., 6.63%, 02/15/25^(b)			262		259,380
USA Compression Partners LP/USA Compression Finance Corp., 6.88%, 04/01/26^(b)			412		426,420
Weatherford International Ltd.:
7.75%, 06/15/21			992		972,160
8.25%, 06/15/23			351		326,430
6.50%, 08/01/36			266		197,505
7.00%, 03/15/38			180		136,800
5.95%, 04/15/42			189		132,773

					5,984,265
Environmental, Maintenance, & Security Service — 0.2%
Tervita Escrow Corp., 7.63%, 12/01/21^(b)			894		926,407
Waste Pro USA, Inc., 5.50%, 02/15/26^(b)			266		256,690

					1,183,097
Equity Real Estate Investment Trusts (REITs) — 0.9%
GEO Group, Inc.:
5.88%, 01/15/22			90		91,293
5.13%, 04/01/23			227		219,055
5.88%, 10/15/24			454		442,650
6.00%, 04/15/26			100		96,500
Hilton Domestic Operating Co., Inc.:
4.25%, 09/01/24			200		194,500
5.13%, 05/01/26^(b)			349		349,436
Hilton Worldwide Finance LLC/Hilton Worldwide Finance Corp., 4.63%, 04/01/25			2		1,975
Iron Mountain, Inc., 3.00%, 01/15/25	EUR		100		114,641
Marriott Ownership Resorts, Inc., 6.50%, 09/15/26^(b)	USD		216		220,320
MGM Growth Properties Operating Partnership LP/MGP Finance Co-Issuer, Inc.:
5.63%, 05/01/24			398		409,443
4.50%, 09/01/26			1,978		1,884,045
4.50%, 01/15/28			745		686,815
MPT Operating Partnership LP/MPT Finance Corp.:
6.38%, 03/01/24			69		72,747
5.50%, 05/01/24			110		111,375
5.00%, 10/15/27			239		234,220
NH Hotel Group SA, 3.75%, 10/01/23	EUR		129		156,677
Starwood Property Trust, Inc., 5.00%, 12/15/21	USD		438		441,285
VICI Properties 1 LLC/VICI FC, Inc., 8.00%, 10/15/23			264		291,916

					6,018,893
Food & Staples Retailing — 0.1%
Albertsons Cos. LLC/Safeway, Inc./New Albertson’s, Inc./Albertson’s LLC:
6.63%, 06/15/24			204		196,860
5.75%, 03/15/25			54		48,870
B&M European Value Retail SA, 4.13%, 02/01/22	GBP		100		131,252
Casino Guichard Perrachon SA, 4.50%, 03/07/24	EUR		200		204,035


Security		Par (000)		Value
Food & Staples Retailing (continued)
Post Holdings, Inc., 5.63%, 01/15/28^(b)	USD		69	$	66,671
Rite Aid Corp., 6.13%, 04/01/23^(b)			36		32,299

					679,987
Food Products — 0.4%
Acosta, Inc., 7.75%, 10/01/22^(b)			180		81,450
Aramark Services, Inc., 5.00%, 02/01/28^(b)			588		575,505
B&G Foods, Inc., 5.25%, 04/01/25			72		69,930
Chobani LLC/Chobani Finance Corp., Inc., 7.50%, 04/15/25^(b)			536		451,580
JBS USA LUX SA/JBS USA Finance, Inc.^(b):
5.88%, 07/15/24			212		204,050
5.75%, 06/15/25			833		787,185
6.75%, 02/15/28			383		367,680
Post Holdings, Inc.^(b):
5.50%, 03/01/25			50		49,875
5.75%, 03/01/27			56		55,300

					2,642,555
Health Care Equipment & Supplies — 1.1%
Avantor, Inc.^(b):
6.00%, 10/01/24			2,156		2,188,340
9.00%, 10/01/25			130		134,062
Crimson Merger Sub, Inc., 6.63%, 05/15/22^(b)			2,159		2,118,519
DJO Finance LLC/DJO Finance Corp., 8.13%, 06/15/21^(b)			1,602		1,654,546
Mallinckrodt International Finance SA/Mallinckrodt CB LLC^(b):
4.88%, 04/15/20			350		348,687
5.75%, 08/01/22			1,102		1,027,615
5.63%, 10/15/23			118		105,168
5.50%, 04/15/25			63		53,786

					7,630,723
Health Care Providers & Services — 2.6%
Acadia Healthcare Co., Inc.:
5.13%, 07/01/22			458		460,290
5.63%, 02/15/23			215		219,300
6.50%, 03/01/24			122		126,423
AHP Health Partners, Inc., 9.75%, 07/15/26^(b)			200		209,500
Amsurg Corp., 5.63%, 07/15/22			50		51,250
Centene Corp.:
4.75%, 05/15/22			67		68,173
6.13%, 02/15/24			311		326,939
5.38%, 06/01/26^(b)			1,818		1,876,776
CHS/Community Health Systems, Inc., 8.63%, 01/15/24^(b)			228		237,690
DaVita, Inc., 5.13%, 07/15/24			317		305,626
Eagle Holding Co. II LLC, (7.63% Cash or 8.38% PIK), 7.63%, 05/15/22^(b)(g)			342		346,275
HCA, Inc.:
5.00%, 03/15/24			807		825,157
5.25%, 06/15/26			989		1,018,670
5.38%, 09/01/26			382		383,910
5.63%, 09/01/28			404		405,010
5.50%, 06/15/47			1,593		1,596,982
HealthSouth Corp., 5.75%, 11/01/24			179		181,238
MEDNAX, Inc., 5.25%, 12/01/23^(b)			208		207,480
MPH Acquisition Holdings LLC, 7.13%, 06/01/24^(b)			585		605,475
NVA Holdings, Inc., 6.88%, 04/01/26^(b)			204		202,725
Polaris Intermediate Corp., (8.50% Cash), 8.50%, 12/01/22^(b)(g)			875		903,437
Regional Care Hospital Partners Holdings, Inc., 8.25%, 05/01/23^(b)			169		179,563


12		2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (unaudited) (continued)

August 31, 2018

BlackRock Debt Strategies Fund, Inc. (DSU)

(Percentages shown are based on Net Assets)


Security		Par (000)		Value
Health Care Providers & Services (continued)
Sterigenics-Nordion Holdings LLC, 6.50%, 05/15/23^(b)	USD		128	$	131,763
Surgery Center Holdings, Inc., 8.88%, 04/15/21^(b)			322		335,283
Team Health Holdings, Inc., 6.38%, 02/01/25^(b)			573		497,077
Tenet Healthcare Corp.:
6.00%, 10/01/20			978		1,015,897
7.50%, 01/01/22^(b)			322		337,195
8.13%, 04/01/22			2,540		2,682,875
4.63%, 07/15/24			601		588,698
6.88%, 11/15/31			44		39,930
Vizient, Inc., 10.38%, 03/01/24^(b)			398		434,815
WellCare Health Plans, Inc., 5.38%, 08/15/26^(b)			337		347,110

					17,148,532
Health Care Technology — 0.0%
Change Healthcare Holdings LLC/Change Healthcare Finance, Inc., 5.75%, 03/01/25^(b)			198		193,545
Quintiles IMS, Inc., 3.25%, 03/15/25^(b)	EUR		100		117,269

					310,814
Hotels, Restaurants & Leisure — 1.8%
Boyd Gaming Corp., 6.00%, 08/15/26	USD		211		212,583
Burger King France SAS (3 mo. Euribor + 5.25%), 5.25%, 05/01/23⁽ⁱ⁾	EUR		100		117,229
Churchill Downs, Inc., 4.75%, 01/15/28^(b)	USD		94		88,478
Codere Finance 2 Luxembourg SA, 6.75%, 11/01/21	EUR		100		109,110
CRC Escrow Issuer LLC/CRC Finco, Inc., 5.25%, 10/15/25^(b)	USD		551		526,894
GLP Capital LP/GLP Financing II, Inc.:
5.25%, 06/01/25			80		83,200
5.38%, 04/15/26			106		110,076
5.75%, 06/01/28			29		30,734
Golden Nugget, Inc., 6.75%, 10/15/24^(b)			818		831,293
IRB Holding Corp., 6.75%, 02/15/26^(b)			221		211,055
KFC Holding Co./Pizza Hut Holdings LLC/Taco Bell of America LLC^(b):
5.00%, 06/01/24			66		65,835
5.25%, 06/01/26			250		250,000
Ladbrokes Group Finance PLC, 5.13%, 09/08/23	GBP		200		273,032
MGM Resorts International:
6.63%, 12/15/21	USD		1,352		1,429,740
7.75%, 03/15/22			328		360,390
4.63%, 09/01/26			987		930,247
New Red Finance, Inc.^(b):
4.25%, 05/15/24			7		6,685
5.00%, 10/15/25			1,546		1,491,890
Scientific Games International, Inc.:
10.00%, 12/01/22			1,689		1,786,286
5.00%, 10/15/25^(b)			438		416,100
Six Flags Entertainment Corp., 4.88%, 07/31/24^(b)			1,065		1,046,362
Station Casinos LLC, 5.00%, 10/01/25^(b)			642		620,333
Unique Pub Finance Co. PLC, Series A4, 5.66%, 06/30/27	GBP		60		85,808
Vue International Bidco PLC, 7.88%, 07/15/20			147		190,997
Wyndham Destinations, Inc., 4.15%, 04/01/24	USD		21		20,748
Wyndham Hotels & Resorts, Inc., 5.38%, 04/15/26^(b)			220		218,350
Wyndham Worldwide Corp., 3.90%, 03/01/23			262		244,315
Wynn Macau Ltd., 5.50%, 10/01/27^(b)			400		378,000

					12,135,770


Security		Par (000)		Value
Household Durables — 0.5%
Brookfield Residential Properties, Inc./Brookfield Residential US Corp., 6.13%, 07/01/22^(b)	USD		285	$	287,138
K Hovnanian Enterprises, Inc., 10.00%, 07/15/22^(b)			229		229,000
Lennar Corp.:
6.63%, 05/01/20			130		135,468
8.38%, 01/15/21			852		935,070
4.88%, 12/15/23			265		265,331
5.25%, 06/01/26			193		191,008
4.75%, 11/29/27			305		290,894
Mattamy Group Corp., 6.50%, 10/01/25^(b)			90		88,668
Tempur Sealy International, Inc., 5.50%, 06/15/26			227		221,325
Toll Brothers Finance Corp., 6.75%, 11/01/19			110		114,129
TRI Pointe Group, Inc., 4.88%, 07/01/21			325		324,187
TRI Pointe Group, Inc./TRI Pointe Homes, Inc., 4.38%, 06/15/19			435		437,175

					3,519,393
Household Products — 0.0%
Diamond (BC) BV, 5.63%, 08/15/25	EUR		102		110,784

Independent Power and Renewable Electricity Producers — 1.0%
AES Corp.:
4.50%, 03/15/23	USD		213		213,533
6.00%, 05/15/26			356		376,470
5.13%, 09/01/27			928		937,280
Calpine Corp.:
5.38%, 01/15/23			230		218,500
5.88%, 01/15/24^(b)			128		129,120
5.75%, 01/15/25			360		326,700
5.25%, 06/01/26^(b)			1,704		1,608,712
Dynegy, Inc.:
7.38%, 11/01/22			231		240,529
7.63%, 11/01/24			134		144,050
NRG Energy, Inc.:
6.63%, 01/15/27			1,062		1,111,117
5.75%, 01/15/28^(b)			298		300,980
NRG Yield Operating LLC, 5.38%, 08/15/24			341		342,705
TerraForm Power Operating LLC^(b):
4.25%, 01/31/23			222		216,450
5.00%, 01/31/28			222		207,848

					6,373,994
Industrial Conglomerates — 0.3%
BWX Technologies, Inc., 5.38%, 07/15/26^(b)			331		334,310
Colfax Corp., 3.25%, 05/15/25	EUR		100		118,524
Vertiv Group Corp., 9.25%, 10/15/24^(b)	USD		1,639		1,684,072

					2,136,906
Insurance — 0.5%
Assicurazioni Generali SpA⁽ⁱ⁾:
(3 mo. Euribor + 7.11%), 7.75%, 12/12/42	EUR		100		135,372
(3 mo. Euribor + 5.35%), 5.50%, 10/27/47			100		119,836
Groupama SA, 6.00%, 01/23/27			100		140,161
HUB International Ltd., 7.00%, 05/01/26^(b)	USD		667		662,698
USIS Merger Sub, Inc., 6.88%, 05/01/25^(b)			23		22,885
Wand Merger Corp.^(b):
8.13%, 07/15/23			387		401,513
9.13%, 07/15/26			200		208,250
Wayne Merger Sub LLC, 8.25%, 08/01/23^(b)			1,578		1,637,175

					3,327,890
Internet Software & Services — 0.4%
Equinix, Inc.:
2.88%, 03/15/24	EUR		100		116,825


SCHEDULE OF INVESTMENTS			13

Schedule of Investments (unaudited) (continued)

August 31, 2018

BlackRock Debt Strategies Fund, Inc. (DSU)

(Percentages shown are based on Net Assets)


Security		Par (000)		Value
Internet Software & Services (continued)
5.88%, 01/15/26	USD		797	$	826,887
Netflix, Inc., 5.88%, 11/15/28^(b)			548		549,266
Rackspace Hosting, Inc., 8.63%, 11/15/24^(b)			183		180,141
Sabre GLBL, Inc., 5.25%, 11/15/23^(b)			221		221,471
Symantec Corp., 5.00%, 04/15/25^(b)			422		418,529
United Group BV, 4.38%, 07/01/22	EUR		126		150,873

					2,463,992
IT Services — 1.4%
Banff Merger Sub, Inc.:
8.38%, 09/01/26			100		116,679
9.75%, 09/01/26^(b)	USD		1,448		1,451,620
First Data Corp.^(b):
7.00%, 12/01/23			2,653		2,760,446
5.75%, 01/15/24			3,837		3,913,740
Gartner, Inc., 5.13%, 04/01/25^(b)			320		324,000
InterXion Holding NV, 4.75%, 06/15/25	EUR		100		120,880
WEX, Inc., 4.75%, 02/01/23^(b)	USD		569		571,134

					9,258,499
Leisure Products — 0.1%
Mattel, Inc., 6.75%, 12/31/25^(b)			450		440,748

Machinery — 0.4%
EnPro Industries, Inc., 5.88%, 09/15/22			292		297,475
Platin 1426 GmbH, 5.38%, 06/15/23	EUR		109		124,733
RBS Global, Inc./Rexnord LLC, 4.88%, 12/15/25^(b)	USD		265		255,063
SPX FLOW, Inc.^(b):
5.63%, 08/15/24			359		359,897
5.88%, 08/15/26			209		211,090
Terex Corp., 5.63%, 02/01/25^(b)			1,070		1,061,975
Titan Acquisition Ltd./Titan Co-Borrower LLC, 7.75%, 04/15/26^(b)			684		587,180

					2,897,413
Media — 6.9%
Altice Financing SA^(b):
6.63%, 02/15/23			200		201,248
7.50%, 05/15/26			200		191,000
Altice France SA:
7.38%, 05/01/26^(b)			809		794,842
5.88%, 02/01/27	EUR		102		122,619
8.13%, 02/01/27^(b)	USD		1,939		1,968,085
Altice Luxembourg SA, 7.75%, 05/15/22^(b)			1,390		1,339,612
Altice US Finance I Corp.^(b):
5.38%, 07/15/23			1,707		1,717,669
5.50%, 05/15/26			1,437		1,411,852
AMC Networks, Inc.:
5.00%, 04/01/24			259		254,791
4.75%, 08/01/25			353		340,645
Cablevision Systems Corp., 8.00%, 04/15/20			502		528,355
CBS Radio, Inc., 7.25%, 11/01/24^(b)			31		29,683
CCO Holdings LLC/CCO Holdings Capital Corp.:
5.13%, 02/15/23			380		380,475
4.00%, 03/01/23^(b)			486		463,523
5.13%, 05/01/27^(b)			3,403		3,245,611
5.00%, 02/01/28^(b)			155		145,162
Cequel Communications Holdings I LLC/Cequel Capital Corp.^(b):
5.13%, 12/15/21			1,483		1,481,547
7.75%, 07/15/25			1,345		1,430,744
7.50%, 04/01/28			583		607,777
Charter Communications Operating LLC/Charter Communications Operating Capital, 4.91%, 07/23/25			1,300		1,327,585


Security		Par (000)		Value
Media (continued)
Clear Channel International BV, 8.75%, 12/15/20^(b)	USD		762	$	786,765
Clear Channel Worldwide Holdings, Inc.:
6.50%, 11/15/22			6,634		6,776,158
Series B, 7.63%, 03/15/20			1,993		2,000,474
CSC Holdings LLC:
10.13%, 01/15/23^(b)			390		427,050
5.25%, 06/01/24			742		719,740
6.63%, 10/15/25^(b)			400		415,500
10.88%, 10/15/25^(b)			2,849		3,315,524
DISH DBS Corp.:
6.75%, 06/01/21			10		10,150
5.88%, 07/15/22			2,125		2,040,000
5.00%, 03/15/23			281		250,090
7.75%, 07/01/26			633		571,283
DKT Finance ApS, 7.00%, 06/17/23	EUR		142		175,567
eircom Finance DAC, 4.50%, 05/31/22			100		118,640
Hughes Satellite Systems Corp., 5.25%, 08/01/26	USD		1,033		987,806
Intelsat Connect Finance SA, 9.50%, 02/15/23^(b)			228		227,248
Intelsat Jackson Holdings SA:
5.50%, 08/01/23			323		294,641
9.75%, 07/15/25^(b)			1,400		1,482,250
Level 3 Parent LLC, 5.75%, 12/01/22			200		201,500
LGE HoldCo VI BV, 7.13%, 05/15/24	EUR		100		124,360
Live Nation Entertainment, Inc., 4.88%, 11/01/24^(b)	USD		72		70,830
MDC Partners, Inc., 6.50%, 05/01/24^(b)			490		439,163
Meredith Corp., 6.88%, 02/01/26^(b)			378		382,725
Midcontinent Communications/Midcontinent Finance Corp., 6.88%, 08/15/23^(b)			463		486,729
Nielsen Finance LLC/Nielsen Finance Co., 5.00%, 04/15/22^(b)			680		660,314
Sirius XM Radio, Inc.^(b):
4.63%, 05/15/23			60		59,790
5.00%, 08/01/27			243		234,796
TEGNA, Inc.:
5.13%, 10/15/19			115		115,000
5.50%, 09/15/24^(b)			172		175,010
Telenet Finance Luxembourg Notes Sarl, 5.50%, 03/01/28^(b)			400		374,000
Telenet Finance VI Luxembourg SCA, 4.88%, 07/15/27	EUR		90		112,010
Telesat Canada/Telesat LLC, 8.88%, 11/15/24^(b)	USD		399		427,429
Tribune Media Co., 5.88%, 07/15/22			899		912,485
Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH, 3.50%, 01/15/27	EUR		100		122,311
Univision Communications, Inc.^(b):
5.13%, 05/15/23	USD		381		361,950
5.13%, 02/15/25			166		152,305
UPCB Finance IV Ltd., 5.38%, 01/15/25^(b)			200		197,520
Videotron Ltd., 5.13%, 04/15/27^(b)			632		625,680
Virgin Media Finance PLC, 5.75%, 01/15/25^(b)			722		695,827
Virgin Media Receivables Financing Notes I DAC, 5.50%, 09/15/24	GBP		200		257,708
Virgin Media Secured Finance PLC, 4.88%, 01/15/27			100		125,918
Ziggo Secured Finance BV, 5.50%, 01/15/27^(b)	USD		150		141,282

					46,038,353
Metals & Mining — 2.4%
Alcoa Nederland Holding BV^(b):
7.00%, 09/30/26			270		291,263
6.13%, 05/15/28			200		206,500


14		2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (unaudited) (continued)

August 31, 2018

BlackRock Debt Strategies Fund, Inc. (DSU)

(Percentages shown are based on Net Assets)


Security		Par (000)		Value
Metals & Mining (continued)
Big River Steel LLC/BRS Finance Corp., 7.25%, 09/01/25^(b)	USD		317	$	332,067
Constellium NV^(b):
5.75%, 05/15/24			250		249,063
5.88%, 02/15/26			926		907,480
First Quantum Minerals Ltd., 7.25%, 05/15/22^(b)			235		229,859
Freeport-McMoRan, Inc.:
4.00%, 11/14/21			804		795,711
3.55%, 03/01/22			2,317		2,235,905
3.88%, 03/15/23			1,905		1,831,181
5.40%, 11/14/34			1,469		1,356,533
5.45%, 03/15/43			1,200		1,070,520
Grinding Media, Inc./Moly-Cop AltaSteel Ltd., 7.38%, 12/15/23^(b)			342		358,994
Joseph T Ryerson & Son, Inc., 11.00%, 05/15/22^(b)			482		531,405
Novelis Corp.^(b):
6.25%, 08/15/24			1,988		2,012,850
5.88%, 09/30/26			491		478,136
Nyrstar Netherlands Holdings BV, 6.88%, 03/15/24	EUR		100		103,149
Schmolz & Bickenbach Luxembourg Finance SA, 5.63%, 07/15/22			100		120,547
Steel Dynamics, Inc.:
5.25%, 04/15/23	USD		295		299,514
5.50%, 10/01/24			138		141,450
4.13%, 09/15/25			243		231,458
5.00%, 12/15/26			35		34,825
Teck Resources Ltd.:
5.20%, 03/01/42			750		702,187
5.40%, 02/01/43			507		482,917
United States Steel Corp.:
6.88%, 08/15/25			274		278,110
6.25%, 03/15/26			394		392,522

					15,674,146
Multi-Utilities — 0.0%
NGL Energy Partners LP/NGL Energy Finance Corp., 6.88%, 10/15/21			323		327,845

Multiline Retail — 0.1%
Neiman Marcus Group Ltd.^(b):
8.00%, 10/15/21			1,035		701,213
(8.75% Cash or 9.50% PIK), 8.75%, 10/15/21^(g)			165		112,331

					813,544
Oil, Gas & Consumable Fuels — 5.8%
Andeavor Logistics LP, Series A, 6.88%^(d)(j)			155		155,349
Antero Resources Corp., 5.00%, 03/01/25			242		243,815
Ascent Resources Utica Holdings LLC/ARU Finance Corp., 10.00%, 04/01/22^(b)			348		384,540
California Resources Corp., 8.00%, 12/15/22^(b)			489		438,266
Calumet Specialty Products Partners LP/Calumet Finance Corp., 6.50%, 04/15/21			120		118,200
Carrizo Oil & Gas, Inc.:
6.25%, 04/15/23			321		328,222
8.25%, 07/15/25			319		342,127
Cheniere Corpus Christi Holdings LLC:
7.00%, 06/30/24			442		488,962
5.88%, 03/31/25			950		1,009,375
5.13%, 06/30/27			882		897,435
Cheniere Energy Partners LP, Series WI, 5.25%, 10/01/25			327		327,000


Security		Par (000)		Value
Oil, Gas & Consumable Fuels (continued)
Chesapeake Energy Corp.:
8.00%, 12/15/22^(b)	USD		48	$	50,460
8.00%, 06/15/27			956		967,950
CNX Resources Corp., 5.88%, 04/15/22			4,297		4,296,785
CONSOL Energy, Inc.:
8.00%, 04/01/23			16		16,925
11.00%, 11/15/25^(b)			288		327,600
Covey Park Energy LLC/Covey Park Finance Corp., 7.50%, 05/15/25^(b)			583		593,931
Crestwood Midstream Partners LP/Crestwood Midstream Finance Corp., 6.25%, 04/01/23			90		92,813
CrownRock LP/CrownRock Finance, Inc., 5.63%, 10/15/25^(b)			432		420,120
DCP Midstream LLC^(b):
4.75%, 09/30/21			745		756,175
6.45%, 11/03/36			250		263,125
6.75%, 09/15/37			226		243,515
DCP Midstream Operating LP, 5.38%, 07/15/25			276		282,900
DEA Finance SA, 7.50%, 10/15/22	EUR		100		124,810
Denbury Resources, Inc., 9.25%, 03/31/22^(b)	USD		514		549,337
Diamond Offshore Drilling, Inc.:
7.88%, 08/15/25			184		187,680
4.88%, 11/01/43			349		248,663
Diamondback Energy, Inc.:
4.75%, 11/01/24			104		104,650
5.38%, 05/31/25			60		61,350
Eclipse Resources Corp., 8.88%, 07/15/23			140		142,100
Endeavor Energy Resources LP/EER Finance, Inc.^(b):
5.50%, 01/30/26			564		562,590
5.75%, 01/30/28			111		110,723
EnLink Midstream Partners LP:
4.40%, 04/01/24			54		52,648
4.15%, 06/01/25			342		322,032
4.85%, 07/15/26			68		66,061
5.05%, 04/01/45			80		67,747
5.45%, 06/01/47			169		150,323
Ensco PLC, 5.75%, 10/01/44			342		248,805
EP Energy LLC/Everest Acquisition Finance, Inc.:
9.38%, 05/01/20			20		19,600
9.38%, 05/01/24^(b)			489		385,087
7.75%, 05/15/26^(b)			784		801,640
Extraction Oil & Gas, Inc.^(b):
7.38%, 05/15/24			164		166,870
5.63%, 02/01/26			658		616,052
Genesis Energy LP/Genesis Energy Finance Corp., 6.50%, 10/01/25			62		59,985
Great Western Petroleum LLC/Great Western Finance, Inc., 9.00%, 09/30/21^(b)			119		122,273
Gulfport Energy Corp.:
6.63%, 05/01/23			215		219,300
6.00%, 10/15/24			192		189,600
6.38%, 05/15/25			138		136,793
Hess Infrastructure Partners LP/Hess Infrastructure Partners Finance Corp., 5.63%, 02/15/26^(b)			206		207,545
Jagged Peak Energy LLC, 5.88%, 05/01/26^(b)			31		30,535
Magnolia Oil & Gas Operating LLC/Magnolia Oil & Gas Finance Corp., 6.00%, 08/01/26^(b)			249		249,622
Matador Resources Co., 5.88%, 09/15/26^(b)			458		466,107
MEG Energy Corp.^(b):
6.38%, 01/30/23			3		2,723
7.00%, 03/31/24			412		373,890
6.50%, 01/15/25			696		692,520


SCHEDULE OF INVESTMENTS			15

Schedule of Investments (unaudited) (continued)

August 31, 2018

BlackRock Debt Strategies Fund, Inc. (DSU)

(Percentages shown are based on Net Assets)


Security		Par (000)		Value
Oil, Gas & Consumable Fuels (continued)
Nabors Industries, Inc., 5.75%, 02/01/25^(b)	USD		380	$	365,594
Newfield Exploration Co., 5.38%, 01/01/26			485		505,612
NGPL PipeCo LLC^(b):
4.88%, 08/15/27			434		437,359
7.77%, 12/15/37			701		865,735
Noble Holding International Ltd.:
7.75%, 01/15/24			400		391,000
7.95%, 04/01/25			37		35,150
7.88%, 02/01/26^(b)			1,119		1,146,975
Paramount Resources Ltd., 6.88%, 06/30/23^(b)			457		475,280
Parsley Energy LLC/Parsley Finance Corp.^(b):
5.38%, 01/15/25			165		166,221
5.63%, 10/15/27			423		428,287
PDC Energy, Inc., 6.13%, 09/15/24			98		97,510
Petroleos Mexicanos, 5.38%, 03/13/22			102		104,244
Precision Drilling Corp., 7.13%, 01/15/26^(b)			64		65,840
QEP Resources, Inc.:
6.88%, 03/01/21			8		8,420
5.38%, 10/01/22			730		733,869
5.63%, 03/01/26			619		591,919
Range Resources Corp.:
5.88%, 07/01/22			561		566,610
5.00%, 03/15/23			125		122,288
4.88%, 05/15/25			261		249,907
Resolute Energy Corp., 8.50%, 05/01/20			639		639,000
Rockies Express Pipeline LLC, 6.88%, 04/15/40^(b)			157		182,120
Rowan Cos., Inc.:
4.88%, 06/01/22			449		417,570
4.75%, 01/15/24			117		100,620
7.38%, 06/15/25			322		309,120
Sanchez Energy Corp.:
7.75%, 06/15/21			1,254		871,530
6.13%, 01/15/23			473		267,079
7.25%, 02/15/23^(b)			226		220,068
SESI LLC:
7.13%, 12/15/21			180		182,700
7.75%, 09/15/24			265		274,275
Seven Generations Energy Ltd., 5.38%, 09/30/25^(b)			379		367,630
SM Energy Co.:
5.00%, 01/15/24			709		687,730
5.63%, 06/01/25			12		11,880
6.75%, 09/15/26			30		31,088
6.63%, 01/15/27			252		259,885
Southwestern Energy Co.:
6.20%, 01/23/25			292		292,365
7.50%, 04/01/26			413		432,617
7.75%, 10/01/27			276		291,870
Sunoco LP/Sunoco Finance Corp.^(b):
4.88%, 01/15/23			470		463,674
5.50%, 02/15/26			96		91,920
5.88%, 03/15/28			151		144,583
Tallgrass Energy Partners LP/Tallgrass Energy Finance Corp.^(b):
5.50%, 09/15/24			342		349,695
5.50%, 01/15/28			1,107		1,118,070
Targa Resources Partners LP/Targa Resources Partners Finance Corp.:
5.13%, 02/01/25			248		249,240
5.88%, 04/15/26^(b)			410		420,250
5.00%, 01/15/28^(b)			482		468,142
Transocean Guardian Ltd., 5.88%, 01/15/24^(b)			290		291,450


Security		Par (000)		Value
Oil, Gas & Consumable Fuels (continued)
Transocean Pontus Ltd., 6.13%, 08/01/25^(b)	USD		341	$	347,820
Whiting Petroleum Corp., 6.63%, 01/15/26			236		245,440
WPX Energy, Inc., 8.25%, 08/01/23			400		454,000

					38,626,502
Paper & Forest Products — 0.0%
International Paper Co., 7.30%, 11/15/39			5		6,372

Pharmaceuticals — 1.3%
Charles River Laboratories International, Inc., 5.50%, 04/01/26^(b)			154		156,310
Elanco Animal Health, Inc.^(b):
4.27%, 08/28/23			141		141,756
4.90%, 08/28/28			151		152,046
Ephios Bondco PLC, 6.25%, 07/01/22	EUR		100		119,829
Ephios Holdco II PLC, 8.25%, 07/01/23			100		123,359
inVentiv Group Holdings, Inc./inVentiv Health, Inc./inVentiv Health Clinical, Inc., 7.50%, 10/01/24^(b)	USD		468		494,961
Jaguar Holding Co. II/Pharmaceutical Product Development LLC, 6.38%, 08/01/23^(b)			1,201		1,207,005
Valeant Pharmaceuticals International, Inc.^(b):
7.50%, 07/15/21			178		180,827
5.63%, 12/01/21			180		178,200
6.50%, 03/15/22			742		767,970
5.50%, 03/01/23			1,575		1,484,642
4.50%, 05/15/23	EUR		340		384,788
5.88%, 05/15/23	USD		602		575,512
7.00%, 03/15/24			1,166		1,230,130
6.13%, 04/15/25			525		488,250
5.50%, 11/01/25			302		301,245
9.25%, 04/01/26			231		245,040
8.50%, 01/31/27			606		622,665

					8,854,535
Real Estate Management & Development — 0.2%
ADLER Real Estate AG:
4.75%, 04/08/20	EUR		24		28,571
2.13%, 02/06/24			100		114,223
Greystar Real Estate Partners LLC, 5.75%, 12/01/25^(b)	USD		218		213,095
Howard Hughes Corp., 5.38%, 03/15/25^(b)			283		279,463
Realogy Group LLC/Realogy Co-Issuer Corp.^(b):
4.50%, 04/15/19			391		392,955
5.25%, 12/01/21			111		111,000
4.88%, 06/01/23			114		106,590
RESIDOMO Sro, 3.38%, 10/15/24	EUR		100		116,713

					1,362,610
Road & Rail — 0.4%
Ashtead Capital, Inc., 5.25%, 08/01/26^(b)	USD		252		258,930
Avis Budget Car Rental LLC/Avis Budget Finance, Inc., 5.13%, 06/01/22^(b)			1,035		1,028,531
EC Finance PLC, 2.38%, 11/15/22	EUR		100		116,789
Herc Rentals, Inc.^(b):
7.50%, 06/01/22	USD		126		131,828
7.75%, 06/01/24			112		120,786
Hertz Corp., 7.63%, 06/01/22^(b)			544		539,920
Hertz Holdings Netherlands BV, 5.50%, 03/30/23	EUR		100		117,897
Loxam SAS, 3.50%, 05/03/23			100		119,865
Watco Cos. LLC/Watco Finance Corp., 6.38%, 04/01/23^(b)	USD		350		357,875

					2,792,421
Semiconductors & Semiconductor Equipment — 0.1%
Advanced Micro Devices, Inc., 7.50%, 08/15/22			200		224,000


16		2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (unaudited) (continued)

August 31, 2018

BlackRock Debt Strategies Fund, Inc. (DSU)

(Percentages shown are based on Net Assets)


Security		Par (000)		Value
Semiconductors & Semiconductor Equipment (continued)
Micron Technology, Inc., 5.50%, 02/01/25	USD		24	$	24,838
Sensata Technologies BV, 5.00%, 10/01/25^(b)			625		623,437

					872,275
Software — 1.8%
BMC Software Finance, Inc., 8.13%, 07/15/21^(b)			143		146,176
CDK Global, Inc., 4.88%, 06/01/27			603		592,447
Genesys Telecommunications Laboratories, Inc./Greeneden Lux 3 Sarl/Greeneden US Holdings LLC, 10.00%, 11/30/24^(b)			721		803,915
Infor Software Parent LLC/Infor Software Parent, Inc., (7.13% Cash or 7.88% PIK), 7.13%, 05/01/21^(b)(g)			1,686		1,701,292
Infor (US), Inc., 6.50%, 05/15/22			2,397		2,428,089
Informatica LLC, 7.13%, 07/15/23^(b)			644		655,270
Nuance Communications, Inc., 6.00%, 07/01/24			835		855,875
PTC, Inc., 6.00%, 05/15/24			312		327,600
RP Crown Parent LLC, 7.38%, 10/15/24^(b)			433		446,943
Solera LLC/Solera Finance, Inc., 10.50%, 03/01/24^(b)			1,990		2,184,025
TIBCO Software, Inc., 11.38%, 12/01/21^(b)			1,466		1,568,620
Veritas US, Inc./Veritas Bermuda Ltd., 7.50%, 02/01/23^(b)			369		354,240

					12,064,492
Specialty Retail — 0.3%
Asbury Automotive Group, Inc., 6.00%, 12/15/24			741		742,852
Group 1 Automotive, Inc., 5.25%, 12/15/23^(b)			69		67,103
Hexion US Finance Corp., 6.63%, 04/15/20			269		254,541
L Brands, Inc.:
6.88%, 11/01/35			386		321,461
6.75%, 07/01/36			109		88,835
Masaria Investments SAU, 5.00%, 09/15/24	EUR		100		112,593
Penske Automotive Group, Inc., 5.75%, 10/01/22	USD		288		293,760
PVH Corp., 3.13%, 12/15/27	EUR		107		123,432

					2,004,577
Technology Hardware, Storage & Peripherals — 0.6%
Dell International LLC/EMC Corp.^(b):
7.13%, 06/15/24	USD		1,277		1,365,177
6.02%, 06/15/26			245		259,732
8.35%, 07/15/46			385		472,340
Western Digital Corp., 4.75%, 02/15/26			1,586		1,554,962

					3,652,211
Textiles, Apparel & Luxury Goods — 0.0%
BiSoho SAS, 5.88%, 05/01/23	EUR		49		59,374

Thrifts & Mortgage Finance — 0.0%
Jerrold Finco PLC, 6.25%, 09/15/21	GBP		100		132,238
Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp., 5.25%, 03/15/22^(b)	USD		169		169,634

					301,872
Trading Companies & Distributors — 0.1%
Ashtead Capital, Inc., 5.63%, 10/01/24^(b)			320		332,000

Transportation Infrastructure — 0.0%
Ceva Logistics Finance BV, 5.25%, 08/01/25	EUR		100		115,727
WFS Global Holding SAS, 9.50%, 07/15/22			100		121,976

					237,703
Utilities — 0.1%
ContourGlobal Power Holdings SA, 3.38%, 08/01/23			100		116,278


Security		Par (000)		Value
Utilities (continued)
Vistra Operations Co. LLC, 5.50%, 09/01/26^(b)	USD		225	$	228,026

					344,304
Wireless Telecommunication Services — 2.2%
CyrusOne LP/CyrusOne Finance Corp.:
5.00%, 03/15/24			547		553,837
5.38%, 03/15/27			97		97,485
Digicel Group Ltd., 8.25%, 09/30/20^(b)			222		166,991
Digicel Ltd., 6.00%, 04/15/21^(b)			2,074		1,936,307
Matterhorn Telecom SA:
3.88%, 05/01/22	EUR		100		118,231
4.00%, 11/15/27			100		110,833
Radiate Holdco LLC/Radiate Finance, Inc., 6.63%, 02/15/25^(b)	USD		380		355,300
SBA Communications Corp., 4.00%, 10/01/22			299		292,344
Sprint Capital Corp.:
6.90%, 05/01/19			270		276,075
6.88%, 11/15/28			516		512,130
8.75%, 03/15/32			168		185,640
Sprint Communications, Inc., 7.00%, 03/01/20^(b)			1,497		1,555,009
Sprint Corp.:
7.88%, 09/15/23			1,079		1,161,274
7.13%, 06/15/24			4,106		4,259,975
7.63%, 02/15/25			551		584,749
7.63%, 03/01/26			524		550,284
T-Mobile USA, Inc.:
6.38%, 03/01/25			292		303,680
6.50%, 01/15/26			429		453,534
4.50%, 02/01/26			510		486,412
4.75%, 02/01/28			361		339,990
Wind Tre SpA, 3.13%, 01/20/25	EUR		100		108,414

					14,408,494

Total Corporate Bonds — 50.4% (Cost — $343,952,316)					335,011,382


Floating Rate Loan Interests^(e) — 86.5%

Aerospace & Defense — 0.9%
Accudyne Industries LLC, 2017 Term Loan, (1 mo. LIBOR + 3.00%, 1.00% Floor), 5.08%, 08/18/24	USD		1,621		1,624,770
DAE Aviation Holdings, Inc., 1st Lien Term Loan, (1 mo. LIBOR + 3.75%, 1.00% Floor), 5.83%, 07/07/22			486		487,164
TransDigm, Inc., 2018 Term Loan F, (1 mo. LIBOR + 2.50%), 4.58%, 06/09/23			3,536		3,528,145
WP CPP Holdings LLC, 2018 Term Loan, (6 mo. LIBOR + 3.75%), 6.21%, 04/30/25			375		376,174

					6,016,253
Airlines — 0.0%
Northwest Airlines, Inc., Term Loan, (6 mo. LIBOR + 1.23%), 3.30%, 09/10/18^(a)			75		75,384

Auto Components — 0.3%
Dayco Products LLC, 2017 Term Loan B, (3 mo. LIBOR + 4.25%), 6.56%, 05/19/23			936		934,817
USI, Inc., 2017 Repriced Term Loan, (3 mo. LIBOR + 3.00%), 5.33%, 05/16/24			769		766,942

					1,701,759
Automobiles — 0.1%
CH Hold Corp., 1st Lien Term Loan, (1 mo. LIBOR + 3.00%, 1.00% Floor), 5.08%, 02/01/24			884		886,428


SCHEDULE OF INVESTMENTS			17

Schedule of Investments (unaudited) (continued)

August 31, 2018

BlackRock Debt Strategies Fund, Inc. (DSU)

(Percentages shown are based on Net Assets)


Security		Par (000)		Value
Banks — 0.1%
Capri Finance LLC, USD 2017 1st Lien Term Loan, (3 mo. LIBOR + 3.25%), 5.59%, 11/01/24	USD		468	$	465,312

Building Materials — 0.2%
Allied Universal HoldCo LLC, 2015 Term Loan, (1 mo. LIBOR + 3.75%, 1.00% Floor), 5.83%, 07/28/22			684		673,874
USAGM HoldCo LLC, 2015 2nd Lien Term Loan, (1 mo. LIBOR + 8.50%, 1.00% Floor), 10.58%, 07/28/23			395		389,940

					1,063,814
Building Products — 0.8%
Continental Building Products LLC, 2017 1st Lien Term Loan B, (1 mo. LIBOR + 2.25%), 4.33%, 08/18/23			370		370,098
CPG International, Inc., 2017 Term Loan, (6 mo. LIBOR + 3.75%, 1.00% Floor), 6.25%, 05/03/24			1,945		1,958,151
Jeld-Wen, Inc., 2017 1st Lien Term Loan, (3 mo. LIBOR + 2.00%), 4.33%, 12/14/24			940		939,692
Wilsonart LLC, 2017 Term Loan B, (3 mo. LIBOR + 3.25%, 1.00% Floor), 5.59%, 12/19/23			1,858		1,862,318

					5,130,259
Capital Markets — 1.0%
Duff & Phelps Corp., 2017 Term Loan B, (3 mo. LIBOR + 3.25%, 1.00% Floor), 5.58%, 02/13/25			484		484,494
EIG Management Company, LLC, 2018 Term Loan B, (3 mo. LIBOR + 3.75%), 6.06%, 02/22/25			1,572		1,580,952
Fortress Investment Group LLC, 2018 Term Loan B, (1 mo. LIBOR + 2.00%), 4.08%, 12/27/22			1,374		1,378,410
Greenhill & Co., Inc., 1st Lien Term Loan, (1 mo. LIBOR + 3.75%, 1.00% Floor), 5.84%, 10/12/22			1,412		1,422,388
RPI Finance Trust, Term Loan B6, (3 mo. LIBOR + 2.00%), 4.33%, 03/27/23			2,017		2,021,195

					6,887,439
Chemicals — 2.8%
Alpha 3 BV, 2017 Term Loan B1, (3 mo. LIBOR + 3.00%, 1.00% Floor), 5.33%, 01/31/24			2,583		2,589,654
Axalta Coating Systems US Holdings, Inc., Term Loan, (3 mo. LIBOR + 1.75%), 4.08%, 06/01/24			980		980,743
Charter NEX US Holdings, Inc., 2017 Term Loan B, (1 mo. LIBOR + 3.00%, 1.00% Floor), 5.08%, 05/16/24			1,341		1,338,432
Chemours Co. (The), 2018 Term Loan B, (1 mo. LIBOR + 1.75%), 3.83%, 04/03/25			112		111,760
Element Materials Technology Group US Holdings, Inc., 2017 Term Loan B, (1 mo. LIBOR + 3.50%, 1.00% Floor), 5.58%, 06/28/24			657		658,342
Encapsys LLC, 1st Lien Term Loan, (1 mo. LIBOR + 3.25%, 1.00% Floor), 5.33%, 11/07/24			998		999,375
Evergreen Acqco 1 LP, Term Loan, (3 mo. LIBOR + 3.75%), 6.10%, 07/09/19			195		189,372
Invictus U.S. LLC, 2nd Lien Term Loan, (1 mo. LIBOR + 6.75%), 8.83%, 03/25/26			390		389,513
Invictus US LLC, 1st Lien Term Loan, (2 mo. LIBOR + 3.00%), 5.20%, 03/28/25			1,504		1,508,653
LTI Holdings, Inc.^(k):
2018 2nd Lien Term Loan, 08/10/26			352		350,680
2018 Add On 1st Lien Term Loan, 08/10/25			1,121		1,123,803


Security		Par (000)		Value
Chemicals (continued)
MacDermid, Inc.:
Term Loan B6, (1 mo. LIBOR + 3.00%, 1.00% Floor), 5.08%, 06/07/23	USD		1,687	$	1,691,210
Term Loan B7, (1 mo. LIBOR + 2.50%, 1.00% Floor), 4.58%, 06/07/20			311		311,304
Oxea Holding Drei GmbH, 2017 Term Loan B2, (1 mo. LIBOR + 3.50%), 5.63%, 10/11/24			3,552		3,567,651
PQ Corp., 2018 Term Loan B, (1 mo. LIBOR + 2.50%), 4.58%, 02/08/25			1,446		1,446,757
Tata Chemicals North America, Inc., Term Loan B, (3 mo. LIBOR + 2.75%, 1.00% Floor), 5.13%, 08/07/20			526		525,700
Vectra Co., 1st Lien Term Loan, (1 mo. LIBOR + 3.25%), 5.33%, 03/08/25			1,065		1,063,221

					18,846,170
Commercial Services & Supplies — 5.5%
Advanced Disposal Services, Inc., Term Loan B3, (1 Week LIBOR + 2.25%), 4.21%, 11/10/23			1,924		1,927,284
Asurion LLC :
2017 2nd Lien Term Loan, (1 mo. LIBOR + 6.50%), 8.58%, 08/04/25			2,364		2,430,972
2017 Term Loan B4, (1 mo. LIBOR + 3.00%), 5.08%, 08/04/22			1,830		1,838,391
2018 Term Loan B6, (1 mo. LIBOR + 3.00%), 5.08%, 11/03/23			1,659		1,663,725
2018 Term Loan B7, (1 mo. LIBOR + 3.00%), 5.08%, 11/03/24			2,731		2,737,828
Camelot UK Holdco Ltd., 2017 Repriced Term Loan, (1 mo. LIBOR + 3.25%, 1.00% Floor), 5.33%, 10/03/23			2,654		2,650,039
Catalent Pharma Solutions, Inc., Term Loan B, (1 mo. LIBOR + 2.25%, 1.00% Floor), 4.33%, 05/20/24			1,524		1,528,740
Creative Artists Agency LLC, 2018 Term Loan B, (1 mo. LIBOR + 3.00%), 5.06%, 02/15/24			1,281		1,282,166
Dealer Tire LLC, 2017 Term Loan B, (6 mo. LIBOR + 3.25%, 1.00% Floor), 5.70%, 12/22/21^(a)			64		61,882
EnergySolutions, LLC, 2018 Term Loan B, (3 mo. LIBOR + 3.75%, 1.00% Floor), 6.08%, 05/09/25^(a)			489		492,056
Garda World Security Corp., 2017 Term Loan, (3 mo. LIBOR + 3.50%, 1.00% Floor), 5.80%, 05/24/24			854		857,418
Harland Clarke Holdings Corp., Term Loan B7, (3 mo. LIBOR + 4.75%, 1.00% Floor), 7.08%, 11/03/23			795		746,908
KAR Auction Services, Inc., Term Loan B5, (1 mo. LIBOR + 2.50%), 4.63%, 03/09/23			1,131		1,134,398
Prime Security Services Borrower LLC, 2016 1st Lien Term Loan, (1 mo. LIBOR + 2.75%, 1.00% Floor), 4.83%, 05/02/22			2,161		2,165,134
US Security Associates Holdings, Inc., 2016 Term Loan, (3 mo. LIBOR + 3.50%, 1.00% Floor), 5.83%, 07/14/23			2,154		2,154,179
Verisure Holding AB, EUR Term Loan B1E, 10/20/22^(k)	EUR		1,000		1,151,487
Verscend Holding Corp., 2018 Term Loan B, 08/09/25^(k)	USD		5,163		5,192,119
West Corp., 2017 Term Loan, (1 mo. LIBOR + 4.00%, 1.00% Floor), 6.08%, 10/10/24			2,174		2,164,184
West Corporation, 2018 Term Loan B1, (1 mo. LIBOR + 3.50%, 1.00% Floor), 5.58%, 10/10/24			1,440		1,424,794


18		2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (unaudited) (continued)

August 31, 2018

BlackRock Debt Strategies Fund, Inc. (DSU)

(Percentages shown are based on Net Assets)


Security		Par (000)		Value
Commercial Services & Supplies (continued)
Wrangler Buyer Corp., Term Loan B, (1 mo. LIBOR + 2.75%), 4.83%, 09/27/24	USD		3,010	$	3,023,235

					36,626,939
Communications Equipment — 0.8%
Avantor, Inc., 2017 1st Lien Term Loan, (1 mo. LIBOR + 4.00%, 1.00% Floor), 6.08%, 11/21/24			3,213		3,248,820
Avaya, Inc. :
2018 Term Loan B, (1 mo. LIBOR + 4.25%), 6.31%, 12/15/24			1,530		1,539,673
Exit Term Loan B, 05/29/20^(a)			935		—
CommScope, Inc., Term Loan B5, (1 mo. LIBOR + 2.00%), 4.08%, 12/29/22			216		216,705
Securus Technologies Holdings, Inc., 2017 1st Lien Term Loan, (1 mo. LIBOR + 4.50%, 1.00% Floor), 6.58%, 11/01/24			578		577,701

					5,582,899
Construction & Engineering — 1.6%
Brand Energy & Infrastructure Services, Inc., 2017 Term Loan, (3 mo. LIBOR + 4.25%, 1.00% Floor), 6.60%, 06/21/24			5,613		5,638,755
Engility Corp., Term Loan B1, (1 mo. LIBOR + 2.25%), 4.33%, 08/12/20			135		135,060
FrontDoor Inc, 2018 Term Loan B, (3 mo. LIBOR + 2.50%), 4.63%, 08/14/25			815		816,019
Pike Corp., 2018 Term Loan B, (1 mo. LIBOR + 3.50%, 1.00% Floor), 5.58%, 03/23/25			1,006		1,012,533
SRS Distribution, Inc., 2018 1st Lien Term Loan, (3 mo. LIBOR + 3.25%), 5.44%, 05/23/25			2,050		2,001,214
USIC Holdings, Inc., 2017 Term Loan B, (1 mo. LIBOR + 3.25%, 1.00% Floor), 5.33%, 12/08/23			1,033		1,037,467

					10,641,048
Construction Materials — 1.6%
Core & Main LP, 2017 Term Loan B, (3 mo. LIBOR + 3.00%, 1.00% Floor), 5.31%, 08/01/24			2,356		2,363,290
Filtration Group Corp., 2018 1st Lien Term Loan, (1 mo. LIBOR + 3.00%), 5.08%, 03/29/25			4,603		4,617,871
GYP Holdings III Corp., 2018 Term Loan B, (1 mo. LIBOR + 2.75%), 4.83%, 06/01/25			2,621		2,596,455
Xella International GmbH, 2017 EUR Term Loan B, 04/11/24^(k)	EUR		1,000		1,152,671

					10,730,287
Containers & Packaging — 1.1%
Berry Global, Inc., Term Loan Q, (3 mo. LIBOR + 2.00%), 4.19%, 10/01/22	USD		3,032		3,032,789
BWAY Holding Co., 2017 Term Loan B, (3 mo. LIBOR + 3.25%), 5.58%, 04/03/24			2,194		2,184,656
Flex Acquisition Co., Inc., 2018 Incremental Term Loan, (3 mo. LIBOR + 3.25%), 5.75%, 06/29/25			1,984		1,981,520

					7,198,965
Distributors — 0.7%
American Builders & Contractors Supply Co., Inc., 2018 Term Loan B, (1 mo. LIBOR + 2.00%), 4.08%, 10/31/23			2,293		2,281,656
TriMark USA LLC, 2017 1st Lien Term Loan, (1 mo. LIBOR + 3.50%), 5.58%, 08/28/24			2,646		2,641,862

					4,923,518


Security		Par (000)		Value
Diversified Consumer Services — 3.0%
AI Aqua Merger Sub, Inc., 2017 1st Lien Term Loan B, (1 mo. LIBOR + 3.25%, 1.00% Floor), 5.33%, 12/13/23	USD		1,343	$	1,336,378
Ascend Learning LLC, 2017 Term Loan B, (1 mo. LIBOR + 3.00%, 1.00% Floor), 5.08%, 07/12/24			819		816,765
Bright Horizons Family Solutions, Inc., 2017 Term Loan B, (PRIME + 0.75%), 3.83%, 11/07/23			1,563		1,561,649
CHG PPC Parent LLC, 2018 Term Loan B, (1 mo. LIBOR + 2.75%), 4.83%, 03/31/25^(a)			660		657,525
Equian LLC, Add on Term Loan B, (1 mo. LIBOR + 3.25%, 1.00% Floor), 5.32%, 05/20/24			2,328		2,326,580
Genuine Financial Holdings LLC, 2018 1st Lien Term Loan, (3 mo. LIBOR + 3.75%), 5.94%, 07/12/25^(a)			1,501		1,504,753
J.D. Power and Associates, 1st Lien Term Loan, (1 mo. LIBOR + 4.25%, 1.00% Floor), 6.33%, 09/07/23			1,960		1,971,086
Nomad Foods Europe Midco Ltd., 2017 Term Loan B4, (1 mo. LIBOR + 2.25%), 4.31%, 05/15/24			1,402		1,394,290
Serta Simmons Bedding LLC:
1st Lien Term Loan, (1 mo. LIBOR + 3.50%, 1.00% Floor), 5.58%, 11/08/23			2,481		2,123,278
2nd Lien Term Loan, (1 mo. LIBOR + 8.00%, 1.00% Floor), 10.07%, 11/08/24			862		594,660
ServiceMaster Co., 2016 Term Loan B, (1 mo. LIBOR + 2.50%), 4.58%, 11/08/23			918		918,160
Spin Holdco, Inc., 2017 Term Loan B, (3 mo. LIBOR + 3.25%, 1.00% Floor), 5.59%, 11/14/22			1,823		1,826,718
Uber Technologies, 2018 Term Loan, (1 mo. LIBOR + 4.00%, 1.00% Floor), 6.08%, 04/04/25			1,235		1,242,719
Weight Watchers International, Inc., 2017 Term Loan B, (1 mo. LIBOR + 4.75%), 7.05%, 11/29/24			1,784		1,803,295

					20,077,856
Diversified Financial Services — 1.2%
AlixPartners LLP, 2017 Term Loan B, (1 mo. LIBOR + 2.75%, 1.00% Floor), 4.83%, 04/04/24			1,442		1,445,657
CRCI Holdings Inc., 2018 1st Lien Term Loan, (3 mo. LIBOR + 3.50%), 5.58%, 07/31/25			627		628,047
CVS Holdings I LP, 2018 1st Lien Term Loan, (1 mo. LIBOR + 3.00%, 1.00% Floor), 5.08%, 02/06/25			252		251,740
Edelman Financial Center LLC, 2018 1st Lien Term Loan, (3 mo. LIBOR + 3.25%), 5.59%, 07/21/25			858		862,024
EG Finco Ltd., 2018 Term Loan, (3 mo. LIBOR + 4.00%), 6.33%, 02/07/25			1,364		1,363,527
Global Business Travel Holdings Limited, 2018 Term Loan B, (3 mo. LIBOR + 2.50%), 4.84%, 07/20/25			456		457,710
Kingpin Intermediate Holdings LLC, 2018 Term Loan B, (1 mo. LIBOR + 3.50%, 1.00% Floor), 5.58%, 07/03/24			1,525		1,533,488
Oryx Southern Delaware Holdings LLC, Term Loan, (1 mo. LIBOR + 3.25%, 1.00% Floor), 5.33%, 02/09/25			1,102		1,078,352
SSH Group Holdings, Inc., 2018 1st Lien Term Loan, (3 mo. LIBOR + 4.25%), 6.59%, 07/30/25^(a)			625		631,563

					8,252,108


SCHEDULE OF INVESTMENTS			19

Schedule of Investments (unaudited) (continued)

August 31, 2018

BlackRock Debt Strategies Fund, Inc. (DSU)

(Percentages shown are based on Net Assets)


Security		Par (000)		Value
Diversified Telecommunication Services — 4.3%
CenturyLink, Inc. :
2017 Term Loan A, (1 mo. LIBOR + 2.75%), 4.83%, 11/01/22	USD		2,559	$	2,553,948
2017 Term Loan B, (1 mo. LIBOR + 2.75%), 4.83%, 01/31/25			7,705		7,613,015
Frontier Communications Corp., Delayed Draw Term Loan A, (1 mo. LIBOR + 2.75%), 4.83%, 03/31/21			2,675		2,594,746
Hargray Communications Group, Inc., 2017 Term Loan B, (1 mo. LIBOR + 3.00%, 1.00% Floor), 5.08%, 05/16/24			1,072		1,074,973
Level 3 Financing, Inc., 2017 Term Loan B, (1 mo. LIBOR + 2.25%), 4.32%, 02/22/24			2,685		2,687,368
MTN Infrastructure TopCo, Inc, 1st Lien Term Loan B, (1 mo. LIBOR + 3.00%, 1.00% Floor), 5.08%, 11/15/24			767		770,567
Sprint Communications, Inc., 1st Lien Term Loan B, (1 mo. LIBOR + 2.50%), 4.63%, 02/02/24			1,967		1,966,655
TDC A/S :
Term Loan, (EURIBOR + 3.50%), 3.50%, 05/31/25	EUR		1,000		1,163,141
USD Term Loan, (3 mo. LIBOR + 3.50%), 5.84%, 05/31/25	USD		1,382		1,392,365
Telenet Financing USD LLC, Term Loan AN, (1 mo. LIBOR + 2.25%), 4.31%, 08/15/26			4,625		4,565,892
Telesat Canada, Term Loan B4, (3 mo. LIBOR + 2.50%), 4.84%, 11/17/23			669		669,181
Virgin Media Investment Holdings Ltd., GBP Term Loan L, (LIBOR GBP + 3.25%), 3.97%, 01/15/27	GBP		1,400		1,797,697

					28,849,548
Electric Utilities — 0.4%
Texas Competitive Electric Holdings Co. LLC/TCEH Finance, Inc., Term Loan, 11/10/18^(a)	USD		2,375		—
Vistra Energy Corp., 1st Lien Term Loan B3, (1 mo. LIBOR + 2.00%), 4.06%, 12/31/25			2,680		2,673,300

					2,673,300
Electrical Equipment — 0.8%
EXC Holdings III Corp., 2017 1st Lien Term Loan, (3 mo. LIBOR + 3.50%, 1.00% Floor), 5.83%, 12/02/24			871		878,243
Gates Global LLC, 2017 Repriced Term Loan B, (3 mo. LIBOR + 2.75%, 1.00% Floor), 5.08%, 04/01/24			3,200		3,214,990
MLN US HoldCo LLC, 2018 1st Lien Term Loan, 07/13/25^(k)			1,034		1,037,877

					5,131,110
Energy Equipment & Services — 0.8%
Gavilan Resources LLC, 2nd Lien Term Loan, (1 mo. LIBOR + 6.00%, 1.00% Floor), 8.08%, 03/01/24			1,500		1,449,375
GrafTech Finance, Inc., 2018 Term Loan B, (1 mo. LIBOR + 3.50%, 1.00% Floor), 5.58%, 02/12/25^(a)			1,690		1,698,450
Ocean Rig UDW, Inc., Term Loan, (Fixed + 8.00%), 8.00%, 09/20/24			140		147,320
Pioneer Energy Services Corp., Term Loan, (1 mo. LIBOR + 7.75%, 1.00% Floor), 9.82%, 11/08/22^(a)			770		785,400
Seadrill Partners Finco LLC, Term Loan B, (3 mo. LIBOR + 6.00%, 1.00% Floor), 8.33%, 02/21/21			856		797,816


Security		Par (000)		Value
Energy Equipment & Services (continued)
Weatherford International Ltd., Term Loan, (1 mo. LIBOR + 1.42%), 3.51%, 07/13/20	USD		665	$	655,451

					5,533,812
Equity Real Estate Investment Trusts (REITs) — 1.8%
Capital Automotive LP, 2017 1st Lien Term Loan, (1 mo. LIBOR + 2.50%, 1.00% Floor), 4.58%, 03/24/24			571		570,314
DTZ U.S. Borrower LLC, 2018 Add On Term Loan B, (1 mo. LIBOR + 3.25%), 5.32%, 08/21/25			2,913		2,902,076
Iron Mountain, Inc., 2018 Term Loan B, (1 mo. LIBOR + 1.75%), 3.83%, 01/02/26			1,010		995,486
MGM Growth Properties Operating Partnership LP, 2016 Term Loan B, (1 mo. LIBOR + 2.00%), 4.08%, 03/21/25			3,139		3,136,949
VICI Properties 1 LLC, Replacement Term Loan B, (1 mo. LIBOR + 2.00%), 4.07%, 12/20/24			4,029		4,026,379

					11,631,204
Food & Staples Retailing — 0.9%
Albertsons LLC, 2017 Term Loan B4, (1 mo. LIBOR + 2.75%), 4.83%, 08/25/21			751		749,738
Hearthside Food Solutions LLC, 2018 Term Loan B, (1 mo. LIBOR + 3.00%), 5.06%, 05/23/25			701		695,305
Hostess Brands LLC, 2017 Repriced Term Loan, (1 mo. LIBOR + 2.25%), 4.33%, 08/03/22			1,792		1,785,298
US Foods, Inc., 2016 Term Loan B, (1 mo. LIBOR + 2.00%), 4.08%, 06/27/23			2,973		2,967,020

					6,197,361
Food Products — 1.3%
Chobani LLC, 2017 Term Loan B, (1 mo. LIBOR + 3.50%, 1.00% Floor), 5.58%, 10/10/23			2,109		2,000,576
Dole Food Co., Inc., 2017 Term Loan B, (1 mo. LIBOR + 2.75%, 1.00% Floor), 4.83%, 04/06/24			761		758,812
JBS USA LLC, 2017 Term Loan B, (3 mo. LIBOR + 2.50%), 4.83%, 10/30/22			1,945		1,943,488
Pinnacle Foods Finance LLC, 2018 Term Loan B, (1 mo. LIBOR + 1.75%), 3.83%, 02/02/24			1,408		1,408,137
Reynolds Group Holdings, Inc., 2017 Term Loan, (1 mo. LIBOR + 2.75%), 4.83%, 02/05/23			2,173		2,178,743

					8,289,756
Gas Utilities — 0.2%
AL Midcoast Holdings LLC, 2018 Term Loan B, (3 mo. LIBOR + 5.50%), 7.84%, 07/31/25			1,525		1,534,129

Health Care Equipment & Supplies — 2.1%
CryoLife, Inc., Term Loan B, (3 mo. LIBOR + 4.00%, 1.00% Floor), 6.33%, 11/14/24			1,736		1,744,956
DJO Finance LLC, 2015 Term Loan, (3 mo. LIBOR + 3.25%, 1.00% Floor), 5.46%, 06/08/20			5,268		5,264,045
Immucor, Inc., Extended Term Loan B, (2 mo. LIBOR + 5.00%, 1.00% Floor), 7.17%, 06/15/21			3,368		3,404,397
Ortho-Clinical Diagnostics SA, 2018 Term Loan B, (1 mo. LIBOR + 3.25%), 5.32%, 06/30/25			3,609		3,607,324

					14,020,722
Health Care Providers & Services — 3.4%
AHP Health Partners, Inc., 2018 Term Loan, (1 mo. LIBOR + 4.50%, 1.00% Floor), 6.58%, 06/30/25			859		864,369


20		2018 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (unaudited) (continued)

August 31, 2018

BlackRock Debt Strategies Fund, Inc. (DSU)

(Percentages shown are based on Net Assets)


Security		Par (000)		Value
Health Care Providers & Services (continued)
CHG Healthcare Services, Inc., 2017 1st Lien Term Loan B, (3 mo. LIBOR + 3.00%, 1.00% Floor), 5.25%, 06/07/23	USD		2,743	$	2,747,597
Concentra Inc., 2018 1st Lien Term Loan, (1 mo. LIBOR + 2.75%, 1.00% Floor), 4.84%, 06/01/22^(a)			1,780		1,786,675
DaVita HealthCare Partners, Inc., Term Loan B, (1 mo. LIBOR + 2.75%), 4.83%, 06/24/21			860		863,241
DentalCorp Perfect Smile ULC :
1st Lien Delayed Draw Term Loan, (1 mo. LIBOR + 3.75%, 1.00% Floor), 4.09%, 06/06/25			185		30,646
1st Lien Term Loan, (1 mo. LIBOR + 3.75%, 1.00% Floor), 5.83%, 06/06/25			741		743,832
Diplomat Pharmacy, Inc., 2017 Term Loan B, (1 mo. LIBOR + 4.50%, 1.00% Floor), 6.58%, 12/20/24			998		998,130
Envision Healthcare Corp., 2016 Term Loan B, (1 mo. LIBOR + 3.00%), 5.08%, 12/01/23			3,128		3,124,470
Gentiva Health Services, Inc.^(a):
2018 1st Lien Term Loan, (3 mo. LIBOR + 3.75%), 6.13%, 07/02/25			1,173		1,180,550
2018 2nd Lien Term Loan, (3 mo. LIBOR + 7.00%), 9.38%, 07/02/26			320		324,821
HCA, Inc., 2018 Term Loan B10, (1 mo. LIBOR + 2.00%), 4.08%, 03/13/25			963		967,400
Lifescan Global Corp., 2018 1st Lien Term Loan, 09/28/24^(a)(k)			404		391,880
MPH Acquisition Holdings LLC, 2016 Term Loan B, (3 mo. LIBOR + 2.75%, 1.00% Floor), 5.08%, 06/07/23			1,999		1,996,620
National Mentor Holdings, Inc., Term Loan B, (3 mo. LIBOR + 3.00%), 5.33%, 01/31/21			660		662,004
nThrive, Inc., 2016 1st Lien Term Loan, (1 mo. LIBOR + 4.50%, 1.00% Floor), 6.58%, 10/20/22			1,307		1,307,751
NVA Holdings, Inc., Term Loan B3, (1 mo. LIBOR + 2.75%, 1.00% Floor), 4.83%, 02/02/25			1,893		1,884,479
Team Health Holdings, Inc., 1st Lien Term Loan, (1 mo. LIBOR + 2.75%, 1.00% Floor), 4.83%, 02/06/24			1,117		1,065,738
Vizient, Inc., 2017 Term Loan B, (1 mo. LIBOR + 2.75%, 1.00% Floor), 4.83%, 02/13/23			450		449,484
WP CityMD Bidco LLC, 2018 1st Lien Term Loan, (3 mo. LIBOR + 3.50%, 1.00% Floor), 5.83%, 06/07/24			913		910,500

					22,300,187
Health Care Services — 0.2%
Sound Inpatient Physicians :
2018 1st Lien Term Loan, (1 mo. LIBOR + 3.00%), 5.08%, 06/27/25			753		754,258
Sound Inpatient Physicians (continued):
2018 2nd Lien Term Loan, (1 mo. LIBOR + 6.75%), 8.83%, 06/26/26			418		418,522

					1,172,780
Health Care Technology — 0.7%
Change Healthcare Holdings, Inc., 2017 Term Loan B, (1 mo. LIBOR + 2.75%, 1.00% Floor), 4.83%, 03/01/24			2,384		2,384,428
Press Ganey Holdings, Inc., 2018 1st Lien Term Loan, (1 mo. LIBOR + 2.75%, 1.00% Floor), 4.83%, 10/23/23			1,812		1,814,976


Security		Par (000)		Value
Health Care Technology (continued)
Quintiles IMS, Inc., 2017 Term Loan B, (3 mo. LIBOR + 2.00%), 4.33%, 03/07/24	USD		279	$	279,725

					4,479,129
Hotels, Restaurants & Leisure — 4.6%
Aristocrat Technologies, Inc., 2018 1st Lien Term Loan, (3 mo. LIBOR + 1.75%), 4.10%, 10/19/24			1,294		1,290,315
Boyd Gaming Corp., Term Loan B3, (1 Week LIBOR + 2.25%), 4.21%, 09/15/23			1,048		1,053,074
Bronco Midstream Funding LLC, Term Loan B, (3 mo. LIBOR + 3.50%), 5.57%, 08/14/23			481		482,875
Burger King Newco Unlimited Liability Co., Term Loan B3, (1 mo. LIBOR + 2.25%, 1.00% Floor), 4.33%, 02/16/24			2,324		2,322,339
Caesars Resort Collection LLC, 2017 1st Lien Term Loan B, (1 mo. LIBOR + 2.75%), 4.83%, 12/22/24			2,334		2,341,026
CCM Merger, Inc., Term Loan B, (1 mo. LIBOR + 2.75%), 4.83%, 08/08/21			745		747,499
CEC Entertainment, Inc., Term Loan B, (1 mo. LIBOR + 3.25%, 1.00% Floor), 5.33%, 02/14/21			698		654,867
ESH Hospitality, Inc., 2018 Term Loan B, (1 mo. LIBOR + 2.00%), 4.08%, 08/30/23			1,752		1,748,595
Four Seasons Hotels Ltd., 1st Lien Term Loan, (1 mo. LIBOR + 2.00%), 4.08%, 11/30/23			212		211,587
GVC Holdings PLC, 2018 Term Loan, (1 mo. LIBOR + 2.50%, 1.00% Floor), 4.58%, 03/29/24			933		932,373
Hilton Worldwide Finance LLC, Term Loan B2, (1 mo. LIBOR + 1.75%), 3.81%, 10/25/23			740		742,394
IRB Holding Corp., 1st Lien Term Loan, (3 mo. LIBOR + 3.25%, 1.00% Floor), 5.32%, 02/05/25			1,503		1,509,739
KFC Holding Co., 2018 Term Loan B, (1 mo. LIBOR + 1.75%), 3.83%, 04/03/25			894		892,849
Lakeland Tours, LLC, 2017 1st Lien Term Loan B, (3 mo. LIBOR + 4.00%, 1.00% Floor), 6.34%, 12/15/24			1,041		1,045,839
Marriott Ownership Resorts, Inc., 2018 Term Loan B, 08/09/25^(k)			1,346		1,347,683
Penn National Gaming, Inc., 2018 1st Lien Term Loan B, 08/14/25^(k)			649		649,811
Playa Resorts Holding BV, 2017 Term Loan B, (1 mo. LIBOR + 2.75%, 1.00% Floor), 4.83%, 04/29/24			1,835		1,818,895
Sabre GLBL, Inc., 2018 Term Loan B, (1 mo. LIBOR + 2.00%), 4.08%, 02/22/24			1,214		1,215,530
Scientific Games International, Inc., 2018 Term Loan B5, (1 mo. LIBOR + 2.75%), 4.83%, 08/14/24			1,515		1,510,485
Stars Group Holdings BV, 2018 Incremental Term Loan, (3 mo. LIBOR + 3.50%), 5.83%, 07/10/25			6,983		7,034,884
Tackle S.A.R.L, 2017 EUR Term Loan, 08/08/22^(k)	EUR		1,000		1,157,604

					30,710,263
Household Products — 0.5%
Energizer Holdings, Inc., 2018 Term Loan B, 06/20/25^(k)	USD		750		753,750
SIWF Holdings, Inc., 1st Lien Term Loan, (1 mo. LIBOR + 4.25%), 6.31%, 06/15/25			1,050		1,051,313


SCHEDULE OF INVESTMENTS			21

Schedule of Investments (unaudited) (continued)

August 31, 2018

BlackRock Debt Strategies Fund, Inc. (DSU)

(Percentages shown are based on Net Assets)


Security		Par (000)		Value
Household Products (continued)
Spectrum Brands, Inc., 2017 Term Loan B, (3 mo. LIBOR + 2.00%), 4.35%, 06/23/22	USD		1,741	$	1,741,153

					3,546,216
Independent Power and Renewable Electricity Producers — 1.1%
Calpine Construction Finance Co. LP, 2017 Term Loan B, (1 mo. LIBOR + 2.50%), 4.58%, 01/15/25			502		502,538
Calpine Corp., Term Loan B6, (3 mo. LIBOR + 2.50%), 4.84%, 01/15/23			652		652,593
Compass Power Generation LLC, 2018 Term Loan B, (1 mo. LIBOR + 3.50%, 1.00% Floor), 5.58%, 12/20/24			1,141		1,144,580
Granite Acquisition, Inc.:
Term Loan B, (3 m