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 811-21349

 

Name of Fund: BlackRock Limited Duration Income Trust (BLW)

 

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

 

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Limited Duration Income Trust, 55 East 52nd Street, New York, NY 10055

 

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

 

Date of fiscal year end: 08/31/2014

 

Date of reporting period: 02/28/2014

 

Item 1 – Report to Stockholders

 

 

 

 

 

 

 
 

FEBRUARY 28, 2014

SEMI-ANNUAL REPORT (UNAUDITED)  

BlackRock Defined Opportunity Credit Trust (BHL)

BlackRock Floating Rate Income Strategies Fund, Inc. (FRA)

BlackRock Limited Duration Income Trust (BLW)

Not FDIC Insured • May Lose Value • No Bank Guarantee
     
 
  

Table of Contents

 
           Page    
Dear Shareholder
           3    
Semi-Annual Report:
                
Fund Summaries
           4    
The Benefits and Risks of Leveraging
           10    
Derivative Financial Instruments
           10    
Financial Statements
                
Schedules of Investments
           11    
Statements of Assets and Liabilities
           52    
Statements of Operations
           53    
Statements of Changes in Net Assets
           54    
Statements of Cash Flows
           57    
Financial Highlights
           58    
Notes to Financial Statements
           61    
Officers and Directors
           74    
Additional Information
           75    
2 SEMI-ANNUAL REPORT FEBRUARY 28, 2014
 
  
Dear Shareholder  

One year ago, US financial markets were improving despite a sluggish global economy, as easy monetary policy gave investors enough conviction to take on more risk in their portfolios. Slow but positive growth in the US was sufficient to support corporate earnings, while uncomfortably high unemployment reinforced expectations that the Federal Reserve would continue its aggressive monetary stimulus programs. International markets were more volatile given uneven growth rates and more direct exposure to macro risks such as the banking crisis in Cyprus and a generally poor outlook for European economies. Emerging markets significantly lagged the rest of the world amid fears over slowing growth and debt problems.

Global financial markets were rattled in May when then-Fed Chairman Bernanke mentioned the possibility of reducing (or “tapering”) the central bank’s asset purchase programs — comments that were widely misinterpreted as signaling an end to the Fed’s zero-interest-rate policy. US Treasury yields rose sharply, triggering a steep sell-off across fixed income markets. (Bond prices move in the opposite direction of yields.) Equity prices also suffered as investors feared the implications of a potential end of a program that had greatly supported the markets. Markets rebounded in late June, however, when the Fed’s tone turned more dovish, and improving economic indicators and better corporate earnings helped extend gains through most of the summer.

Although autumn brought mixed events, it was a surprisingly positive period for most asset classes. Early on, the Fed defied market expectations with its decision to delay tapering, but higher volatility returned in late September when the US Treasury Department warned that the national debt would soon breach its statutory maximum. The ensuing political brinksmanship led to a partial government shutdown, roiling global financial markets through the first half of October. Equities and other so-called “risk assets” managed to resume their rally when politicians engineered a compromise to reopen the government and extend the debt ceiling, at least temporarily.

The remainder of 2013 was generally positive for stock markets in the developed world, although investors continued to grapple with uncertainty about when and how much the Fed would scale back on stimulus. When the long-awaited taper announcement ultimately came in mid-December, the Fed reduced the amount of its monthly asset purchases but at the same time reaffirmed its commitment to maintaining low short-term interest rates. Markets reacted positively, as the taper signaled the Fed’s perception of real improvement in the economy, and investors were finally relieved from the anxiety that had gripped them for quite some time.

The start of the new year brought another turn in sentiment, as heightened volatility in emerging markets and mixed US economic data caused global equities to weaken in January while bond markets found renewed strength. Although these headwinds persisted, equities were back on the rise in February thanks to positive developments in Washington, DC. For one, Congress extended the nation’s debt ceiling through mid-March 2015, thereby reducing some degree of fiscal uncertainty for the next year. Additionally, investors were encouraged by market-friendly comments in new Fed Chair Janet Yellen’s Congressional testimony, giving further assurance that short-term rates would remain low for a prolonged period.

While accommodative monetary policy was the main driver behind positive market performance over the period, it was also a key cause of investor uncertainty. Developed market stocks were the strongest performers for the six- and 12-month periods ended February 28. In contrast, emerging markets were weighed down by uneven growth, high levels of debt and severe currency weakness, in addition to the broader concern about reduced global liquidity. The anticipation of Fed tapering during 2013 pressured US Treasury bonds and other high-quality fixed income sectors, including tax-exempt municipals and investment grade corporate bonds. High yield bonds, to the contrary, benefited from income-oriented investors’ search for yield in the low-rate environment. Short-term interest rates remained near zero, keeping yields on money market securities close to historic lows.

At BlackRock, we believe investors need to think globally, extend their scope across a broad array of asset classes and be prepared to move freely as market conditions change over time. We encourage you to talk with your financial advisor and visit www.blackrock.com for further insight about investing in today’s world.

Sincerely,

Rob Kapito
President, BlackRock Advisors, LLC



 
 
“While accommodative monetary policy was the main driver behind positive market performance over the period, it was also a key cause of investor uncertainty.”

Rob Kapito

President, BlackRock Advisors, LLC


Total Returns as of February 28, 2014

         6-month      12-month
US large cap equities (S&P 500® Index)
           15.07 %           25.37 %  
US small cap equities (Russell 2000® Index)
           17.75            31.56   
International equities (MSCI Europe, Australasia, Far East Index)
           15.01            19.28   
Emerging market equities (MSCI Emerging Markets Index)
           4.77            (6.01 )  
3-month Treasury bill (BofA Merrill Lynch 3-Month US Treasury
Bill Index)
           0.03            0.08   
US Treasury securities (BofA Merrill Lynch
10-Year US Treasury Index)
           2.61            (3.65 )  
US investment grade bonds (Barclays US Aggregate Bond Index)
           2.84            0.15   
Tax-exempt municipal bonds (S&P Municipal Bond Index)
           6.08            (0.27 )  
US high yield bonds (Barclays US Corporate High Yield 2% Issuer Capped Index)
           7.46            8.36   

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


 
 

THIS PAGE NOT PART OF YOUR FUND REPORT

3
 
  
Fund Summary as of February 28, 2014 BlackRock Defined Opportunity Credit Trust

Fund Overview

BlackRock Defined Opportunity Credit Trust’s (BHL) (the “Fund”) primary investment objective is to provide high current income, with a secondary objective of long-term capital appreciation. The Fund seeks to achieve its investment objectives by investing substantially all of its assets in loan and debt instruments and loan-related and debt-related instruments (collectively “credit securities”). The Fund invests, under normal market conditions, at least 80% of its assets in any combination of the following credit securities: (i) senior secured floating rate and fixed rate loans; (ii) second lien or other subordinated or unsecured floating rate and fixed rate loans or debt; (iii) credit securities that are rated below investment grade quality; and (iv) investment grade corporate bonds. The Fund may invest directly in such securities or synthetically through the use of derivatives.

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

Portfolio Management Commentary

How did the Fund perform?

For the six-month period ended February 28, 2014, the Fund returned 4.22% based on market price and 3.75% based on NAV. For the same period, the closed-end Lipper Loan Participation Funds category posted an average return of 1.71% based on market price and 4.33% based on NAV. All returns reflect reinvestment of dividends. The Fund’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.

What factors influenced performance?

Security selection among higher quality loan instruments, where the Fund maintained a quality bias, had a positive impact on performance. From an industry perspective, holdings within gaming, wirelines and lodging boosted results. The Fund’s tactical allocation to high yield bonds generated additional gains as the asset class outperformed bank loans during the period. Exposure to high-quality collateralized loan obligations (“CLOs”) also enhanced results.
Conversely, security selection in the media non-cable and electric industries detracted from results. The Fund’s limited exposure to lower-rated loan credits represented a missed opportunity for additional gains as this segment performed well during the period.

Describe recent portfolio activity.

During the period, the Fund maintained its focus on the higher quality segments of the loan market in terms of loan structure, liquidity and overall credit quality. With the average loan trading recently at or just above par (i.e., with limited or no upside), the Fund has concentrated its investments in strong companies with stable cash flows and high quality collateral, with the ability to meet interest obligations and ultimately return principal. The Fund has been actively participating in the new-issue market, where the more appealing investment opportunities have been emerging. Although we expect modest growth and improving economic conditions, we continue to limit the Fund’s exposure to lower-rated segments of the market given less attractive risk-reward profiles in that space. From an asset allocation perspective, we continued to reduce exposure to higher-quality high yield bonds as valuations in that market also moved closer to fair value. In addition, we tactically added risk in high-quality CLOs.

Describe portfolio positioning at period end.

At period end, the Fund held 94% of its total portfolio in floating rate loan interests (bank loans), with the remainder in corporate bonds and other interests. The Fund’s highest-conviction holdings included La Quinta (lodging), Caesars Entertainment Resort Properties LLC (gaming) and Level 3 Financing, Inc. (wirelines).
  
  The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
4 SEMI-ANNUAL REPORT FEBRUARY 28, 2014
 
  
    BlackRock Defined Opportunity Credit Trust

Fund Information

Symbol on New York Stock Exchange (“NYSE”)
     
BHL
Initial Offering Date
     
January 31, 2008
Current Distribution Rate on Closing Market Price as of February 28, 2014 ($13.87)1
     
5.71%
Current Monthly Distribution per Common Share2
     
$0.066
Current Annualized Distribution per Common Share2
     
$0.792
Economic Leverage as of February 28, 20143
     
28%
1 Current distribution rate on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. The current distribution rate may consist of income, net realized gains and/or a tax return of capital. Past performance does not guarantee future results.
2 The monthly distribution per common share, declared on March 3, 2014, was decreased to $0.0605 per share. The current distribution rate on closing market price, current monthly distribution per common share and current annualized distribution per common share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to change in the future.
3 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 10.

Market Price and Net Asset Value Per Share Summary




   
2/28/14
   
8/31/13
   
Change
   
High
   
Low
Market Price
        $ 13.87         $ 13.77            0.73 %        $ 14.09         $ 13.48   
Net Asset Value
        $ 14.48         $ 14.44            0.28 %        $ 14.53         $ 14.39   

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



 
    

    

Overview of the Fund’s Long-Term Investments

Portfolio Composition



   
2/28/14
   
8/31/13
Floating Rate Loan Interests
           94 %           94 %  
Corporate Bonds
           3             3    
Asset-Backed Securities
           2             2    
Common Stocks
           1             1    

Corporate Bonds Credit Quality Allocation4



   
2/28/14
   
8/31/13
BBB/Baa
           12 %           11 %  
BB/Ba
           18             17    
B
           70             72    
4   Using the higher of Standard & Poor’s (“S&P”) or Moody’s Investors Service (“Moody’s”) ratings.
SEMI-ANNUAL REPORT FEBRUARY 28, 2014 5
 
  
Fund Summary as of February 28, 2014 BlackRock Floating Rate Income Strategies Fund, Inc.

Fund Overview

BlackRock Floating Rate Income Strategies Fund, Inc.’s (FRA) (the “Fund”) investment objective is to provide shareholders with high current income and such preservation of capital as is consistent with investment in a diversified, leveraged portfolio consisting primarily of floating rate debt securities and instruments. The Fund seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets in floating rate debt securities, including floating or variable rate debt securities that pay interest at rates that adjust whenever a specified interest rate changes and/or which reset on predetermined dates (such as the last day of a month or calendar quarter). The Fund invests a substantial portion of its investments in floating rate debt securities consisting of secured or unsecured senior floating rate loans that are rated below investment grade. The Fund may invest directly in such securities or synthetically through the use of derivatives.

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

Portfolio Management Commentary

How did the Fund perform?

For the six-month period ended February 28, 2014, the Fund returned 1.47% based on market price and 4.27% based on NAV. For the same period, the closed-end Lipper Loan Participation Funds category posted an average return of 1.71% based on market price and 4.33% based on NAV. All returns reflect reinvestment of dividends. The Fund’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.

What factors influenced performance?

Security selection among higher quality loan instruments, where the Fund maintained a quality bias, had a positive impact on performance. From an industry perspective, holdings within gaming, wirelines and lodging boosted results. The Fund’s tactical allocation to high yield bonds generated additional gains as the asset class outperformed bank loans during the period. Exposure to high-quality collateralized loan obligations (“CLOs”) also enhanced results.
Conversely, security selection in the media non-cable and electric industries detracted from results. The Fund’s limited exposure to lower-rated loan credits represented a missed opportunity for additional gains as this segment performed well during the period.

Describe recent portfolio activity.

During the period, the Fund maintained its focus on the higher quality segments of the loan market in terms of loan structure, liquidity and overall credit quality. With the average loan trading recently at or just above par (i.e., with limited or no upside), the Fund has concentrated its investments in strong companies with stable cash flows and high quality collateral, with the ability to meet interest obligations and ultimately return principal. The Fund has been actively participating in the new-issue market, where the more appealing investment opportunities have been emerging. Although we expect modest growth and improving economic conditions, we continue to limit the Fund’s exposure to lower-rated segments of the market given less attractive risk-reward profiles in that space. From an asset allocation perspective, we continued to reduce exposure to higher-quality high yield bonds as valuations in that market also moved closer to fair value. In addition, we tactically added risk in high-quality CLOs.

Describe portfolio positioning at period end.

At period end, the Fund held 93% of its total portfolio in floating rate loan interests (bank loans), with the remainder in corporate bonds and other interests. The Fund’s highest-conviction holdings included La Quinta (lodging), Caesars Entertainment Resort Properties LLC (gaming) and Level 3 Financing, Inc. (wirelines).
  
  The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
6 SEMI-ANNUAL REPORT FEBRUARY 28, 2014
 
  
    BlackRock Floating Rate Income Strategies Fund, Inc.

Fund Information

Symbol on NYSE
     
FRA
Initial Offering Date
     
October 31, 2003
Current Distribution Rate on Closing Market Price as of February 28, 2014 ($14.70)1
     
6.16%
Current Monthly Distribution per Common Share2
     
$0.0755
Current Annualized Distribution per Common Share2
     
$0.9060
Economic Leverage as of February 28, 20143
     
28%
1 Current distribution rate on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. The current distribution rate may consist of income, net realized gains and/or a tax return of capital. Past performance does not guarantee future results.
2 The monthly distribution per common share, declared on March 3, 2014, was decreased to $0.0700 per share. The current distribution rate on closing market price, current monthly distribution per common share and current annualized distribution per common share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to change in the future.
3 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 10.

Market Price and Net Asset Value Per Share Summary




   
2/28/14
   
8/31/13
   
Change
   
High
   
Low
Market Price
        $ 14.70         $ 14.96            (1.74 )%        $ 15.02         $ 14.30   
Net Asset Value
        $ 15.51         $ 15.36            0.98 %        $ 15.54         $ 15.33   
 

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



 
    

    

Overview of the Fund’s Long-Term Investments

Portfolio Composition



   
2/28/14
   
8/31/13
Floating Rate Loan Interests
           93 %           92 %  
Corporate Bonds
           4             4    
Asset-Backed Securities
           2             3    
Common Stocks
           1             1    

Corporate Bonds Credit Quality Allocation4



   
2/28/14
   
8/31/13
BBB/Baa
           9 %           10 %  
BB/Ba
           13             15    
B
           37             57    
CCC/Caa
           24             5    
Not Rated
           17             13    
4   Using the higher of S&P’s or Moody’s ratings.
SEMI-ANNUAL REPORT FEBRUARY 28, 2014 7
 
  
Fund Summary as of February 28, 2014 BlackRock Limited Duration Income Trust

Fund Overview

BlackRock Limited Duration Income Trust’s (BLW) (the “Fund”) investment objective is to provide current income and capital appreciation. The Fund seeks to achieve its investment objective by investing primarily in three distinct asset classes:

  intermediate duration, investment grade corporate bonds, mortgage-related securities, asset-backed securities and US Government and agency securities;
  senior, secured floating rate loans made to corporate and other business entities; and
  US dollar-denominated securities of US and non-US issuers rated below investment grade and, to a limited extent, non-US dollar denominated securities of non-US issuers rated below investment grade.

The Fund’s portfolio normally has an average portfolio duration of less than five years (including the effect of anticipated leverage), although it may be longer from time to time depending on market conditions. The Fund may invest directly in such securities or synthetically through the use of derivatives.

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

Portfolio Management Commentary

How did the Fund perform?

For the six-month period ended February 28, 2014, the Fund returned 6.32% based on market price and 7.35% based on NAV. For the same period, the closed-end Lipper High Yield Funds (Leveraged) category posted an average return of 12.50% based on market price and 10.48% based on NAV. All returns reflect reinvestment of dividends. The Fund’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.

What factors influenced performance?

Fixed income markets experienced a rally over the six-month period that was only temporarily suspended at the beginning of 2014 due to investors’ concern over softening US economic data, which appeared to be mostly driven by unusually harsh weather conditions. In addition, certain risk assets, including emerging market debt, were negatively impacted by the tightening of global liquidity as the Fed continued to reduce the size of its asset purchase program.
The Fund benefited from the generally positive market environment, with positions in corporate credit being the largest contributors to returns. Exposure to securitized assets, including asset-backed securities (“ABS”) and commercial mortgage-backed securities (“CMBS”) also had a positive impact on performance. In addition, positions in non-agency residential mortgage-backed securities (“MBS”) and high yield credit enhanced results.
Based on the view that short-term rates would remain low, the Fund maintained its leverage to augment income generation throughout the period.
As most fixed income sectors performed well during the period, there were no material detractors from the Fund’s performance.

Describe recent portfolio activity.

The Fund’s allocations remained consistent throughout the six-month period, with its largest position in high yield and investment grade corporate credit, followed by allocations to securitized credits, specifically, ABS and CMBS.

Describe portfolio positioning at period end.

At period end, the Fund maintained diversified exposure to non-government spread sectors including high yield and investment grade corporate credit, CMBS, ABS and non-agency residential MBS.

  
  The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
8 SEMI-ANNUAL REPORT FEBRUARY 28, 2014
 
  
    BlackRock Limited Duration Income Trust

Fund Information

Symbol on NYSE
     
BLW
Initial Offering Date
     
July 30, 2003
Current Distribution Rate on Closing Market Price as of February 28, 2014 ($17.31)1
     
7.24%
Current Monthly Distribution per Common Share2
     
$0.1045
Current Annualized Distribution per Common Share2
     
$1.2540
Economic Leverage as of February 28, 20143
     
30%
1 Current distribution rate on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. The current distribution rate may consist of income, net realized gains and/or a tax return of capital. Past performance does not guarantee future results.
2 The monthly distribution per common share, declared on March 3, 2014, was decreased to $0.0995 per share. The current distribution rate on closing market price, current monthly distribution per common share and current annualized distribution per common share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to change in the future.
3 Represents reverse repurchase agreements outstanding as a percentage of total managed assets, which is the total assets of the Fund (including any assets attributable to borrowing) 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 10.

Market Price and Net Asset Value Per Share Summary




   
2/28/14
   
8/31/13
   
Change
   
High
   
Low
Market Price
        $ 17.31         $ 16.89            2.49 %        $ 17.62         $ 16.15   
Net Asset Value
        $ 18.15         $ 17.54            3.48 %        $ 18.15         $ 17.54   
 
Market Price and Net Asset Value History For the Past Five Years



 
    

    

Overview of the Fund’s Long-Term Investments

Portfolio Composition



   
2/28/14
   
8/31/13
Corporate Bonds
           44 %           44 %  
Floating Rate Loan Interests
           36             36    
Non-Agency Mortgage-Backed Securities
           8             8    
Asset-Backed Securities
           4             6    
US Government Sponsored Agency Securities
           4             4    
Preferred Securities
           2             1    
Foreign Agency Obligations
           1             -    
Common Stocks
           1             1    

             
Corporate Bonds Credit Quality Allocation4



   
2/28/14
   
8/31/13
AAA/Aaa5
           9 %           9 %  
AA/Aa
           -             1    
A
           3             6    
BBB/Baa
           17             17    
BB/Ba
           30             25    
B
           33             34    
CCC/Caa
           7             7    
Not Rated
           1             1    
4 Using the higher of S&P’s or Moody’s ratings.
5 Includes US Government Sponsored Agency securities and US Treasury Obligations, which were deemed AAA/Aaa by the investment advisor.
SEMI-ANNUAL REPORT FEBRUARY 28, 2014 9
 
  
The Benefits and Risks of Leveraging 

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

In general, the concept of leveraging is based on the premise that the financing cost of leverage, which will be based on short-term interest rates, will normally be lower than the income earned by a 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 will benefit from the incremental net income. The interest earned on securities purchased with the proceeds from leverage is paid to shareholders in the form of dividends, and the value of these portfolio holdings is reflected in the per share NAV.

To illustrate these concepts, assume a 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 costs of leverage are significantly lower than the income earned on the Fund’s longer-term investments acquired from 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 or dividends and other costs of leverage exceed the Fund’s return on assets purchased with leverage proceeds, income to shareholders will be 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 a Fund’s intended leveraging strategy will be successful.

Leverage also will generally cause greater changes in the Funds’ NAVs, market prices and dividend rates than comparable portfolios without leverage. In a declining market, leverage is likely to cause a greater decline in the net asset value and market price of a 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 will incur expenses in connection with the use of leverage, all of which are borne by shareholders and may reduce income to the shares.

Each Fund may utilize leverage through a credit facility or reverse repurchase agreements as described in the Notes to Financial Statements.

Under the Investment Company Act of 1940, as amended (the “1940 Act”), each Fund is permitted to issue debt up to 3313% of its total managed assets. A Fund may voluntarily elect to limit its leverage to less than the maximum amount permitted under the 1940 Act. In addition, a 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 Funds may invest in various derivative financial instruments, including financial futures contracts, foreign currency exchange contracts, options and swaps, as specified in Note 4 of the Notes to Financial Statements, which may constitute forms of economic leverage. Such derivative financial instruments are used to obtain exposure to a market without owning or taking physical custody of securities or to hedge market, equity, credit, interest rate and/or foreign currency exchange rate risks. Derivative financial instruments involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the derivative financial instrument. The Funds’ ability to use a derivative financial instrument successfully depends on the investment advisor’s ability to predict pertinent market movements accurately, which cannot be assured. The use of derivative financial instruments may result in losses greater than if they had not been used, may require a Fund to sell or purchase portfolio investments at inopportune times or for distressed values, may limit the amount of appreciation a Fund can realize on an investment, may result in lower dividends paid to shareholders and/or may cause a Fund to hold an investment that it might otherwise sell. The Funds’ investments in these instruments are discussed in detail in the Notes to Financial Statements.

10 SEMI-ANNUAL REPORT FEBRUARY 28, 2014
 
  
Schedule of Investments February 28, 2014 (Unaudited) BlackRock Defined Opportunity Credit Trust (BHL)
(Percentages shown are based on Net Assets)
Common Stocks (a)                     
Shares
     Value
Hotels, Restaurants & Leisure — 0.4%
                                                            
BLB Worldwide Holdings, Inc.
     
 
        21,020         $     524,449     
Software — 0.4%
                                                            
HMH Holdings/EduMedia
     
 
        24,355            470,149   
Total Common Stocks — 0.8%
     
 
                      994,598   

Asset-Backed Securities (b)(c)
     
 
  
Par
(000)
  
  
ALM Loan Funding, Series 2013-7RA, Class C, 3.69%, 4/24/24
     
USD
        835             807,395   
Atrium CDO Corp., Series 9A,Class D, 3.73%, 2/28/24
     
 
        250             242,219   
Carlyle Global Market Strategies CLO Ltd., Series 2012-4A, Class D, 4.74%, 1/20/25
     
 
        250             251,422   
Figueroa CLO Ltd., Series 2013-1A, Class C, 3.88%, 3/21/24
     
 
        250             243,188   
Fraser Sullivan CLO VII Ltd., Series 2012-7A, Class C, 4.24%, 4/20/23
     
 
        215             214,994   
Highbridge Loan Management Ltd., Series 2012-1A, Class C, 5.25%, 9/20/22
     
 
        350             352,038   
Marea CLO Ltd., Series 2012-1A, Class D, 4.79%, 10/16/23
     
 
        400             401,120   
Neuberger Berman CLO XV, Series 2013-15A, Class C, 3.09%, 10/15/25
     
 
        500             489,415   
North End CLO Ltd., Series 2013-1A, Class D, 3.74%, 7/17/25
     
 
        250             242,227   
Octagon Investment Partners XVII Ltd., Series 2013-1A, Class D, 3.44%, 10/25/25
     
 
        250             238,487   
Race Point CLO Ltd., Series 2012-6A, Class D, 4.74%, 5/24/23
     
 
        250             250,082   
Symphony CLO Ltd., Series 2012-10A,
Class D, 5.49%, 7/23/23
     
 
        350             351,927   
Total Asset-Backed Securities — 3.1%
     
 
                      4,084,514   

Corporate Bonds
     
 
                           
Airlines — 0.7%
                                                            
American Airlines Pass-Through Trust, Series 2013-2, Class C, 6.00%, 1/15/17 (c)
     
 
        250             259,375   
Delta Air Lines Pass-Through Trust, Series 2009-1, Class B, 9.75%, 6/17/18
     
 
        48             54,006   
US Airways Pass-Through Trust, Series 2012-2, Class C, 5.45%, 6/03/18
     
 
        590             601,800   
 
     
 
                      915,181   
Auto Components — 0.2%
                                                            
Icahn Enterprises LP/Icahn Enterprises Finance Corp., 3.50%, 3/15/17 (c)
     
 
        269             272,363   
Chemicals — 0.1%
                                                            
INEOS Finance PLC, 8.38%, 2/15/19 (c)
     
 
        110             121,825   
                         
Corporate Bonds                 Par
(000)
     Value
Commercial Services & Supplies — 0.3%
                                                            
Avis Budget Car Rental LLC/Avis Budget Finance, Inc., 2.99%, 12/01/17 (b)(c)
     
USD
        68          $      68,680     
AWAS Aviation Capital Ltd., 7.00%, 10/17/16 (c)
     
 
        268             277,751   
United Rentals North America, Inc., 5.75%, 7/15/18
     
 
        80             85,800   
 
     
 
                      432,231   
Communications Equipment — 0.4%
                                                            
Avaya, Inc., 7.00%, 4/01/19 (c)
     
 
        101             100,242   
Zayo Group LLC/Zayo Capital, Inc., 8.13%, 1/01/20
     
 
        380             418,950   
 
     
 
                      519,192   
Diversified Financial Services — 0.3%
                                                            
Ally Financial, Inc., 2.92%, 7/18/16 (b)
     
 
        275             280,714   
Reynolds Group Issuer, Inc., 7.13%, 4/15/19
     
 
        120             127,650   
 
     
 
                      408,364   
Diversified Telecommunication Services — 0.3%
                                                            
Level 3 Financing, Inc. (c):
                                                            
3.85%, 1/15/18 (b)
     
 
        228             231,420   
6.13%, 1/15/21
     
 
        127             134,303   
 
     
 
                      365,723   
Health Care Technology — 0.3%
                                                            
IMS Health, Inc., 12.50%, 3/01/18 (c)
     
 
        295             339,250   
Household Durables — 0.1%
                                                            
Beazer Homes USA, Inc., 6.63%, 4/15/18
     
 
        180             194,400   
Independent Power Producers & Energy Traders — 0.8%
                                  
Calpine Corp., 6.00%, 1/15/22 (c)
     
 
        80             84,800   
Energy Future Intermediate Holding Co. LLC/EFIH Finance, Inc.:
                                                            
10.00%, 12/01/20
     
 
        700             728,000   
10.25%, 12/01/20 (c)
     
 
        230             239,200   
 
     
 
                      1,052,000   
Media — 0.1%
                                                            
NAI Entertainment Holdings/NAI Entertainment Holdings Finance Corp., 5.00%, 8/01/18 (c)
     
 
        96             100,080   
Oil, Gas & Consumable Fuels — 0.1%
                                                            
EP Energy LLC/Everest Acquisition Finance, Inc., 6.88%, 5/01/19
     
 
        145             156,419   
Wireless Telecommunication Services — 0.0%
                                                            
T-Mobile USA, Inc., 6.13%, 1/15/22
     
 
        50             52,813   
Total Corporate Bonds — 3.7%
     
 
                      4,929,841   

Floating Rate Loan Interests (b)
     
 
                           
Aerospace & Defense — 2.1%
                                                            
DigitalGlobe, Inc., Term Loan B, 3.75%, 1/31/20
     
 
        511             510,499   
The SI Organization, Inc., Term Loan B, 5.50%, 11/22/16
     
 
        410             401,671   
Spirit Aerosystems, Inc., Term Loan B, 3.75%, 4/18/19
     
 
        364             364,888   
Transdigm, Inc., Term Loan C, 3.75%, 2/28/20
     
 
        223             223,585   
TransUnion LLC, Term Loan, 4.25%, 2/08/19
     
 
        1,276            1,279,733   
 
     
 
                      2,780,376   

Portfolio Abbreviations

 
CAD
EBITDA
  
EUR
  
Canadian Dollar
Earnings Before Interest, Taxes, Depreciation and Amortization
Euro
  
GBP
OTC
PIK
USD
  
British Pound
Over-the-Counter
Payment-In-Kind
US Dollar

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2014 11
 
  
Schedule of Investments (continued)   BlackRock Defined Opportunity Credit Trust (BHL)
(Percentages shown are based on Net Assets)
Floating Rate Loan Interests (b)                 Par
(000)
     Value
Airlines — 1.0%
                                                            
Delta Air Lines, Inc.:
                                                            
Term Loan, 3.49%, 9/16/15
     
USD
        317          $ 306,656     
Term Loan B1, 3.50%, 10/18/18
     
 
        325             326,023   
Northwest Airlines, Inc., Term Loan:
                                                            
2.24%, 3/10/17
     
 
        208             201,148   
1.62%, 9/10/18
     
 
        273             257,513   
US Airways Group, Inc., Term Loan B1, 3.50%, 5/23/19
     
 
        260             260,081   
 
     
 
                       1,351,421   
Auto Components — 4.6%
                                                            
Affinia Group Intermediate Holdings, Inc., Term Loan B2, 4.75%, 4/27/20
     
 
        358             358,497   
Armored Autogroup, Inc., Term Loan B, 6.00%, 11/05/16
     
 
        60             59,887   
Autoparts Holdings Ltd., 1st Lien Term Loan, 6.50%, 7/29/17
     
 
        627             627,309   
Dayco Products LLC, Term Loan B, 5.25%, 12/12/19
     
 
        360             363,150   
Federal-Mogul Corp.:
                                                            
Term Loan B, 2.10%, 12/29/14
     
 
        1,354            1,342,640   
Term Loan C, 2.10%, 12/28/15
     
 
        1,258            1,247,910   
The Goodyear Tire & Rubber Co., 2nd Lien Term Loan, 4.75%, 4/30/19
     
 
        1,150            1,160,638   
Schaeffler AG, Term Loan C, 4.25%, 1/27/17
     
 
        15             15,098   
Transtar Holding Co., 1st Lien Term Loan, 5.50%, 10/09/18
     
 
        489             480,258   
UCI International, Inc., Term Loan B, 5.50%, 7/26/17
     
 
        340             338,865   
 
     
 
                      5,994,252   
Automobiles — 0.1%
                                                            
Chrysler Group LLC, 2018 Term Loan B, 3.25%, 12/31/18
     
 
        190             189,016   
Building Products — 2.1%
                                                            
Armstrong World Industries, Inc., Term Loan B, 3.50%, 3/15/20
     
 
        258             258,293   
Continental Building Products LLC, 1st Lien Term Loan, 4.75%, 8/28/20
     
 
        269             269,212   
CPG International, Inc., Term Loan, 4.75%, 9/30/20
     
 
        783             783,531   
Ply Gem Industries, Inc., Term Loan, 4.00%, 1/16/21
     
 
        200             200,334   
Quikrete Holdings, Inc., 1st Lien Term Loan, 4.00%, 9/28/20
     
 
        339             339,855   
Wilsonart LLC:
                                                            
Incremental Term Loan B2, 4.00%, 10/31/19
     
 
        110             109,725   
Term Loan B, 4.00%, 10/31/19
     
 
        792             791,010   
 
     
 
                      2,751,960   
Capital Markets — 0.2%
                                                            
American Capital Holdings, Inc., 2017 Term Loan, 3.50%, 8/22/17
     
 
        197             197,211   
KCG Holdings, Inc., Term Loan B, 5.75%, 12/05/17
     
 
        110             110,041   
 
     
 
                      307,252   
Chemicals — 4.1%
                                                            
Allnex USA, Inc.:
                                                            
Term Loan B1, 4.50%, 10/03/19
     
 
        255             256,554   
Term Loan B2, 4.50%, 10/03/19
     
 
        133             133,114   
Axalta Coating Systems US Holdings, Inc., Term Loan, 4.00%, 2/01/20
     
 
        729             732,092   
CeramTec Acquisition Corp., Term Loan B2, 4.25%, 8/28/20
     
 
        27             27,005   
Chemtura Corp., Term Loan B, 3.50%, 8/27/16
     
 
        324             326,003   
Chromaflo Technologies Corp.:
                                                            
1st Lien Term Loan, 4.50%, 12/02/19
     
 
        260             260,650   
2nd Lien Term Loan, 8.25%, 5/30/20
     
 
        110             110,825   
Evergreen Acqco 1 LP, Term Loan, 5.00%, 7/09/19
     
 
        478             479,404   
                         
Floating Rate Loan Interests (b)                 Par
(000)
     Value
Chemicals (concluded)
                                                            
INEOS Finance LLC:
                                                            
3 Year Term Loan, 2.15%, 5/04/15
     
USD
        88          $      88,142     
6 Year Term Loan, 2.75%, 5/04/18
     
 
        195             194,458   
MacDermid, Inc., 1st Lien Term Loan, 4.00%, 6/08/20
     
 
        353             354,638   
Nexeo Solutions LLC, Term Loan B, 5.00%, 9/08/17
     
 
        584             579,797   
OXEA Finance LLC:
                                                            
2nd Lien Term Loan, 8.25%, 7/15/20
     
 
        315             321,004   
Term Loan B2, 4.25%, 1/15/20
     
 
        584             587,185   
Royal Adhesives and Sealants LLC, 1st Lien Term Loan, 5.50%, 7/31/18
     
 
        159             160,875   
Tata Chemicals North America, Inc., Term Loan B, 3.75%, 8/07/20
     
 
        134             134,661   
Tronox Pigments (Netherlands) BV, Term Loan, 4.50%, 3/19/20
     
 
        409             409,636   
Univar, Inc., Term Loan B, 5.00%, 6/30/17
     
 
        223             221,861   
 
     
 
                      5,377,904   
Commercial Banks — 0.2%
                                                            
Redtop Acquisitions Ltd.:
                                                            
1st Lien Term Loan, 4.50%, 12/03/20
     
 
        190             191,108   
2nd Lien Term Loan, 8.25%, 6/03/21
     
 
        70             71,400   
 
     
 
                      262,508   
Commercial Services & Supplies — 4.2%
                                                            
ADS Waste Holdings, Inc., Term Loan, 3.75%, 10/09/19
     
 
        740             739,202   
ARAMARK Corp.:
                                                            
Extended Synthetic Line of Credit 2, 3.65%, 7/26/16
     
 
        14             13,860   
Extended Synthetic Line of Credit 3, 6.65%, 7/26/16
     
 
        9             9,373   
AWAS Finance Luxembourg 2012 SA, Term Loan, 3.50%, 7/16/18
     
 
        290             290,876   
Brand Energy & Infrastructure Services, Inc., Term Loan B, 4.75%, 11/26/20
     
 
        870             872,596   
Catalent Pharma Solutions, Inc., Term Loan, 6.50%, 12/29/17
     
 
        115             116,438   
KAR Auction Services, Inc., Term Loan B, 3.75%, 5/19/17
     
 
        555             555,490   
Livingston International, Inc.:
                                                            
1st Lien Term Loan, 5.00%, 4/16/19
     
 
        308             309,221   
2nd Lien Term Loan, 9.00%, 4/20/20
     
 
        200             204,373   
Progressive Waste Solutions Ltd., Term Loan B, 3.00%, 10/24/19
     
 
        312             312,942   
Protection One, Inc., Term Loan, 4.25%, 3/21/19
     
 
        471             469,371   
Spin Holdco, Inc., Term Loan B, 4.25%, 11/14/19
     
 
        928             928,970   
West Corp., Term Loan B10, 3.25%, 6/30/18
     
 
        681             677,103   
 
     
 
                      5,499,815   
Communications Equipment — 2.3%
                                                            
Alcatel-Lucent USA, Inc., Term Loan C, 4.50%, 1/30/19
     
 
        1,206            1,215,823   
Applied Systems, Inc.:
                                                            
1st Lien Term Loan, 4.25%, 1/25/21
     
 
        185             186,156   
2nd Lien Term Loan, 7.50%, 1/22/22
     
 
        85             86,764   
Avaya, Inc., Extended Term Loan B3, 4.73%, 10/26/17
     
 
        347             337,369   
Blackboard, Inc., Term Loan B3, 4.75%, 10/04/18
     
 
        115             115,685   
CommScope, Inc.:
                                                            
Term Loan B3, 2.65% - 2.73%, 1/21/17
     
 
        158             157,483   
Term Loan B4, 3.25%, 1/26/18
     
 
        237             236,962   
Zayo Group LLC/Zayo Capital, Inc., Term Loan B, 4.00%, 7/02/19
     
 
        649             650,673   
 
     
 
                      2,986,915   

See Notes to Financial Statements.

12 SEMI-ANNUAL REPORT FEBRUARY 28, 2014
 
  
Schedule of Investments (continued)   BlackRock Defined Opportunity Credit Trust (BHL)
(Percentages shown are based on Net Assets)
Floating Rate Loan Interests (b)                 Par
(000)
     Value
Construction & Engineering — 1.0%
                                                            
BakerCorp International, Inc., Term Loan, 4.25%, 2/14/20
     
USD
        301          $     300,759   
Centaur Acquisition LLC:
                                                            
1st Lien Term Loan, 5.25%, 2/20/19
     
 
        504             504,554     
2nd Lien Term Loan, 8.75%, 2/15/20
     
 
        280             285,600   
USIC Holdings, Inc., 1st Lien Term Loan, 4.00%, 7/10/20
     
 
        269             268,201   
 
     
 
                      1,359,114   
Construction Materials — 1.6%
                                                            
Filtration Group Corp.:
                                                            
1st Lien Term Loan, 4.50%, 11/21/20
     
 
        220             221,742   
2nd Lien Term Loan, 8.25%, 11/21/21
     
 
        120             122,550   
HD Supply, Inc., Term Loan B, 4.00%, 6/28/18
     
 
        1,612            1,616,736   
McJunkin Red Man Corp., Term Loan, 5.00%, 11/08/19
     
 
        150             151,159   
 
     
 
                      2,112,187   
Consumer Finance — 0.5%
                                                            
Springleaf Financial Funding Co., Term Loan B2, 4.75%, 9/25/19
     
 
        700             708,050   
Containers & Packaging — 1.1%
                                                            
Ardagh Holdings USA, Inc.:
                                                            
Incremental Term Loan, 4.00%, 12/17/19
     
 
        210             210,788   
Term Loan B, 4.25%, 12/17/19
     
 
        290             290,725   
Berry Plastics Holding Corp., Term Loan E, 3.75%, 1/09/21
     
 
        185             184,445   
Sealed Air Corp., 2013 Term Loan, 3.00%, 10/03/18
     
 
        331             332,584   
Tekni-Plex, Inc., Term Loan B, 5.50% – 6.50%, 8/25/19
     
 
        393             393,489   
 
     
 
                      1,412,031   
Distributors — 1.3%
                                                            
ABC Supply Co., Inc., Term Loan, 3.50%, 4/16/20
     
 
        1,147            1,147,481   
Crossmark Holdings, Inc., 1st Lien Term Loan, 4.50%, 12/20/19
     
 
        233             231,633   
VWR Funding, Inc., Term Loan, 3.45%, 4/03/17
     
 
        277             277,200   
 
     
 
                      1,656,314   
Diversified Consumer Services — 2.1%
                                                            
Allied Security Holdings LLC:
                                                            
1st Lien Term Loan, 4.25%, 2/12/21
     
 
        242             241,367   
Delayed Draw Term Loan, 0.50%, 2/12/21
     
 
        86             85,689   
Bright Horizons Family Solutions, Inc., Term Loan B, 4.00%, 1/30/20
     
 
        639             639,482   
Doncasters Finance US LLC, Term Loan, 5.50%, 4/09/20
     
 
        208             210,313   
Garda World Securities Corp.:
                                                            
Delayed Draw Term Loan, 4.00%, 11/06/20
     
 
        69             68,860   
Term Loan B, 4.00%, 11/06/20
     
 
        269             269,180   
ROC Finance LLC, Term Loan, 5.00%, 6/20/19
     
 
        249             242,829   
ServiceMaster Co., Term Loan, 4.25%, 1/31/17
     
 
        467             467,397   
Weight Watchers International, Inc., Term Loan B2, 4.00%, 4/02/20
     
 
        630             481,149   
 
     
 
                      2,706,266   
Diversified Financial Services — 2.3%
                                                            
ION Trading Technologies Sarl:
                                                            
1st Lien Term Loan, 4.50%, 5/22/20
     
 
        371             373,342   
2nd Lien Term Loan, 8.25%, 5/21/21
     
 
        80             80,800   
Kasima LLC, Term Loan B, 3.25%, 5/17/21
     
 
        355             354,556   
Reynolds Group Holdings, Inc., Dollar Term Loan, 4.00%, 12/01/18
     
 
        749             754,173   
RPI Finance Trust, Term Loan B3, 3.25%, 11/09/18
     
 
        88             88,247   
SAM Finance Luxembourg Sarl, Term Loan, 4.25%, 12/17/20
     
 
        595             595,994   
WMG Acquisition Corp., Term Loan, 3.75%, 7/01/20
     
 
        798             796,803   
 
     
 
                      3,043,915   
                         
Floating Rate Loan Interests (b)                 Par
(000)
     Value
Diversified Telecommunication Services — 4.4%
                                                            
Consolidated Communications, Inc., Term Loan B, 4.25%, 12/23/20
     
USD
        873          $     878,422     
Hawaiian Telcom Communications, Inc., Term Loan B, 5.00%, 6/06/19
     
 
        523             525,515   
Integra Telecom, Inc.:
                                                            
2nd Lien Term Loan, 9.75%, 2/21/20
     
 
        255             261,439   
Term Loan B, 5.25%, 2/22/19
     
 
        462             465,666   
Level 3 Financing, Inc.:
                                                            
2020 Term Loan B, 4.00%, 1/15/20
     
 
        2,160            2,165,400   
Term Loan, 4.00%, 8/01/19
     
 
        220             220,660   
Syniverse Holdings, Inc., Term Loan B, 4.00%, 4/23/19
     
 
        446             447,514   
US Telepacific Corp., Term Loan B, 5.75%, 2/23/17
     
 
        732             736,073   
 
     
 
                      5,700,689   
Electric Utilities — 0.5%
                                                            
American Energy – Utica LLC, 2nd Lien Term Loan, 11.00%, 9/30/18
     
 
        325             339,738   
Sandy Creek Energy Associates LP, Term Loan B, 5.00%, 11/06/20
     
 
        300             300,609   
 
     
 
                      640,347   
Electrical Equipment — 1.0%
                                                            
Southwire Co., Term Loan, 3.25%, 2/11/21
     
 
        265             264,857   
Texas Competitive Electric Holdings Co. LLC, Extended Term Loan, 4.74%, 10/10/17
     
 
        1,505            1,048,880   
 
     
 
                      1,313,737   
Electronic Equipment, Instruments & Components — 0.4%
CDW LLC, Term Loan, 3.25%, 4/29/20
     
 
        521             518,239   
Energy Equipment & Services — 0.7%
                                                            
Dynegy Holdings, Inc., Term Loan B2, 4.00%, 4/23/20
     
 
        259             259,476   
MEG Energy Corp., Refinancing Term Loan, 3.75%, 3/31/20
     
 
        360             360,880   
Seadrill Partners Finco LLC, Term Loan B, 4.00%, 2/21/21
     
 
        115             115,312   
Unifrax Corp., Term Loan, 4.25%, 11/28/18
     
 
        217             217,692   
 
     
 
                      953,360   
Food & Staples Retailing — 1.9%
                                                            
Alliance Boots Holdings Ltd., Term Loan B1, 3.47%, 7/09/15
     
GBP
        767             1,282,968   
Rite Aid Corp.:
                                                            
2nd Lien Term Loan, 5.75%, 8/21/20
     
USD
        235             239,895   
Term Loan 6, 4.00%, 2/21/20
     
 
        223             224,038   
Supervalu, Inc., Refinancing Term Loan B, 4.50%, 3/21/19
     
 
        511             512,257   
US Foods, Inc., Refinancing Term Loan, 4.50%, 3/29/19
     
 
        199             199,995   
 
     
 
                      2,459,153   
Food Products — 3.3%
                                                            
AdvancePierre Foods, Inc., Term Loan, 5.75%, 7/10/17
     
 
        200             200,701   
CTI Foods Holding Co. LLC, 1st Lien Term Loan, 4.50%, 6/29/20
     
 
        259             259,459   
Del Monte Foods Co., 1st Lien Term Loan, 4.25%, 11/06/20
     
 
        395             395,494   
Diamond Foods, Inc., Term Loan, 4.25%, 7/28/18
     
 
        180             179,885   
Dole Food Co., Inc., Term Loan B, 4.50%, 11/01/18
     
 
        605             608,176   
GFA Brands, Inc., Term Loan B, 5.00%, 7/09/20
     
 
        109             110,088   
H.J. Heinz Co., Term Loan B1, 3.25%, 6/07/19
     
 
        75             74,939   
Michael Foods Group, Inc., Term Loan, 4.25%, 2/23/18
     
 
        165             165,513   
Performance Food Group Co., 2nd Lien Term Loan, 6.25%, 11/14/19
     
 
        711             722,097   
Pinnacle Foods Finance LLC:
                                                            
Incremental Term Loan H, 3.25%, 4/29/20
     
 
        125             124,272   
Term Loan G, 3.25%, 4/29/20
     
 
        695             691,929   

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2014 13
 
  
Schedule of Investments (continued)   BlackRock Defined Opportunity Credit Trust (BHL)
(Percentages shown are based on Net Assets)
Floating Rate Loan Interests (b)                 Par
(000)
     Value
Food Products (concluded)
                                                            
Reddy Ice Corp.:
                                                            
1st Lien Term Loan, 6.75% – 7.75%, 5/01/19
     
USD
        566          $     562,897     
2nd Lien Term Loan, 10.75%, 11/01/19
     
 
        270             261,900   
 
     
 
                      4,357,350   
Health Care Equipment & Supplies — 5.5%
                                                            
Arysta LifeScience Corp.:
                                                            
1st Lien Term Loan, 4.50%, 5/29/20
     
 
        935             938,415   
2nd Lien Term Loan, 8.25%, 11/30/20
     
 
        380             385,225   
Biomet, Inc., Term Loan B2, 3.65% – 3.75%, 7/25/17
     
 
        756             757,221   
Capital Safety North America Holding, Inc., Term Loan, 4.50%, 1/21/19
     
 
        349             348,814   
Capsugel Holdings US, Inc., Term Loan B, 3.50%, 8/01/18
     
 
        472             471,238   
DJO Finance LLC, Term Loan B3, 4.75%, 9/15/17
     
 
        980             985,077   
Fresenius SE & Co. KGaA:
                                                            
Incremental Term Loan B, 2.25%, 6/25/19
     
EUR
        120             165,429   
Term Loan B, 2.25%, 8/07/19
     
USD
        618             617,504   
The Hologic, Inc., Term Loan B, 3.25%, 8/01/19
     
 
        765             763,460   
Iasis Healthcare LLC, Term Loan B2, 4.50%, 5/03/18
     
 
        95             95,715   
Immucor, Inc., Refinancing Term Loan B2, 5.00%, 8/17/18
     
 
        807             810,604   
Kinetic Concepts, Inc., Term Loan E1, 4.00%, 5/04/18
     
 
        120             120,048   
Leonardo Acquisition Corp., Term Loan, 4.25%, 1/31/21
     
 
        95             95,237   
LHP Hospital Group, Inc., Term Loan, 9.00%, 7/03/18
     
 
        132             128,213   
Onex Carestream Finance LP:
                                                            
1st Lien Term Loan, 5.00%, 6/07/19
     
 
        302             305,650   
2nd Lien Term Loan, 9.50%, 12/07/19
     
 
        245             249,900   
 
     
 
                      7,237,750   
Health Care Providers & Services — 6.7%
                                                            
American Renal Holdings, Inc.:
                                                            
1st Lien Term Loan, 4.50%, 9/20/19
     
 
        655             655,050   
2nd Lien Term Loan, 8.50%, 2/14/20
     
 
        410             411,025   
Ardent Medical Services, Inc., Term Loan, 6.75%, 7/02/18
     
 
        262             263,006   
CHG Buyer Corp., Term Loan, 4.50%, 11/19/19
     
 
        414             415,513   
CHS/Community Health Systems, Inc., Term Loan D, 4.25%, 1/27/21
     
 
        1,965            1,981,368   
ConvaTec, Inc., Term Loan, 4.00%, 12/22/16
     
 
        563             565,723   
DaVita, Inc.:
                                                            
Term Loan B, 4.50%, 10/20/16
     
 
        995             1,000,143   
Term Loan B2, 4.00%, 11/01/19
     
 
        405             406,623   
Envision Acquisition Co. LLC, 1st Lien Term Loan, 5.75%, 11/04/20
     
 
        239             241,196   
Envision Healthcare Corp., Term Loan, 4.00%, 5/25/18
     
 
        426             427,067   
Genesis HealthCare Corp., Term Loan B, 10.00% – 10.75%, 9/25/17
     
 
        276             283,410   
HCA, Inc., Extended Term Loan B4, 3.00%, 5/01/18
     
 
        234             234,150   
Ikaria, Inc.:
                                                            
1st Lien Term Loan, 5.00%, 2/12/21
     
 
        270             271,520   
2nd Lien Term Loan, 8.75%, 1/17/22
     
 
        70             70,992   
inVentiv Health, Inc.:
                                                            
Combined Term Loan, 7.50%, 8/04/16
     
 
        260             259,324   
Incremental Term Loan B3, 7.75%, 5/15/18
     
 
        219             217,161   
National Mentor Holdings, Inc., Term Loan B, 4.75%, 1/27/21
     
 
        190             191,663   
Surgical Care Affiliates, Inc., Class C Incremental Term Loan, 4.25%, 6/29/18
     
 
        423             422,524   
US Renal Care, Inc., 2013 Term Loan, 4.25%, 7/03/19
     
 
        482             484,653   
 
     
 
                      8,802,111   
                         
Floating Rate Loan Interests (b)                 Par
(000)
     Value
Health Care Technology — 0.7%
                                                            
IMS Health, Inc., Term Loan B1, 3.75%, 9/01/17
     
USD
        744          $     743,568     
MedAssets, Inc., Term Loan B, 4.00%, 12/13/19
     
 
        182             182,913   
 
     
 
                      926,481   
Hotels, Restaurants & Leisure — 12.1%
                                                            
Bally Technologies, Inc., Term Loan B, 4.25%, 11/25/20
     
 
        429             431,284   
Boyd Gaming Corp., Term Loan B, 4.00%, 8/14/20
     
 
        269             269,524   
Bronco Midstream Funding LLC, Term Loan B, 5.00%, 8/17/20
     
 
        724             730,079   
Caesars Entertainment Resort Properties LLC, Term Loan B, 7.00%, 10/12/20
     
 
        2,835            2,877,015   
Four Seasons Holdings, Inc., 2nd Lien Term Loan, 6.25%, 12/28/20
     
 
        330             336,600   
Hilton Worldwide Finance LLC, Term Loan B2, 3.75%, 10/26/20
     
 
        2,093            2,098,767   
Intrawest ULC, Term Loan, 5.50%, 11/26/20
     
 
        370             373,237   
La Quinta Intermediate Holdings, Term Loan B, 3.00%, 2/19/21
     
 
        2,710            2,715,420   
Las Vegas Sands LLC, Term Loan B, 3.25%, 12/20/20
     
 
        600             599,376   
Marina District Finance Co., Inc., Term Loan B, 6.75%, 8/15/18
     
 
        335             337,791   
MGM Resorts International, Term Loan B, 3.50%, 12/20/19
     
 
        539             538,034   
OSI Restaurant Partners LLC, Term Loan, 3.50%, 10/25/19
     
 
        230             229,866   
Pinnacle Entertainment, Inc., Term Loan B2, 3.75%, 8/13/20
     
 
        517             517,886   
Playa Resorts Holding BV, Term Loan B, 4.75%, 8/06/19
     
 
        409             410,509   
Sabre, Inc.:
                                                            
Incremental Term Loan, 4.50%, 2/19/19
     
 
        115             114,820   
Term Loan B, 4.25%, 2/19/19
     
 
        317             316,867   
Six Flags Theme Parks, Inc., Term Loan B, 3.50%, 12/20/18
     
 
        303             304,232   
Station Casinos, Inc., Term Loan B, 5.00%, 3/02/20
     
 
        1,191            1,191,369   
Travelport LLC:
                                                            
2nd Lien Term Loan 1, 9.50%, 1/29/16
     
 
        250             258,692   
Refinancing Term Loan, 6.25%, 6/26/19
     
 
        269             275,283   
Twin River Management Group, Inc., Term Loan B, 5.25%, 11/09/18
     
 
        566             569,982   
Wendy’s International, Inc., Term Loan B, 3.25%, 5/15/19
     
 
        370             369,467   
 
     
 
                      15,866,100   
Household Products — 1.2%
                                                            
Bass Pro Group LLC, Term Loan, 3.75%, 11/20/19
     
 
        638             640,163   
Prestige Brands, Inc., Term Loan, 3.75% – 5.00%, 1/31/19
     
 
        311             312,034   
Spectrum Brands, Inc.:
                                                            
Term Loan A, 3.00%, 9/07/17
     
 
        231             231,007   
Term Loan C, 3.50%, 9/04/19
     
 
        342             342,035   
 
     
 
                      1,525,239   
Independent Power Producers & Energy Traders — 1.8%
The AES Corp., Refinancing Term Loan B, 3.75%, 6/01/18
     
 
        761             762,859   
Calpine Corp., Term Loan B1, 4.00%, 4/02/18
     
 
        212             212,588   
La Frontera Generation LLC, Term Loan, 4.50%, 9/30/20
     
 
        1,009            1,010,122   
Star West Generation LLC, Term Loan B, 4.25%, 3/13/20
     
 
        352             352,805   
 
     
 
                      2,338,374   
Industrial Conglomerates — 0.8%
                                                            
Sequa Corp., Term Loan B, 5.25%, 6/19/17
     
 
        1,045            1,028,203   

See Notes to Financial Statements.

14 SEMI-ANNUAL REPORT FEBRUARY 28, 2014
 
  
Schedule of Investments (continued)   BlackRock Defined Opportunity Credit Trust (BHL)
(Percentages shown are based on Net Assets)
Floating Rate Loan Interests (b)                 Par
(000)
     Value
Insurance — 3.2%
                                                            
Alliant Holdings I, Inc., Term Loan B, 4.25%, 12/20/19
     
USD
        421          $     423,119   
Asurion LLC:
                                                            
2nd Lien Term Loan, 8.50%, 2/19/21
     
 
        310                 319,687     
Term Loan B1, 4.50%, 5/24/19
     
 
        458             458,390   
CNO Financial Group, Inc.:
                                                            
Term Loan B1, 3.00%, 9/28/16
     
 
        308             308,462   
Term Loan B2, 3.75%, 9/20/18
     
 
        519             517,933   
Cooper Gay Swett & Crawford Ltd.:
                                                            
1st Lien Term Loan, 5.00%, 4/16/20
     
 
        418             411,285   
2nd Lien Term Loan, 8.25%, 10/16/20
     
 
        200             192,750   
Cunningham Lindsey US, Inc., 1st Lien Term Loan, 5.00%, 12/10/19
     
 
        366             364,468   
Hub International Ltd., Term Loan B, 4.75%, 10/02/20
     
 
        439             442,556   
National Financial Partners Corp., Term Loan, 5.25%, 7/01/20
     
 
        129             130,482   
Sedgwick CMS Holdings, Inc.:
                                                            
1st Lien Term Loan, 3.75%, 2/11/21
     
 
        345             343,189   
2nd Lien Term Loan, 6.75%, 12/12/18
     
 
        260             262,460   
 
     
 
                      4,174,781   
Internet Software & Services — 1.7%
                                                            
Dealertrack Technologies, Inc., Term Loan B, 3.50%, 2/26/21
     
 
        255             256,275   
Interactive Data Corp., Term Loan B, 3.75%, 2/11/18
     
 
        871             871,442   
Open Text Corp., Term Loan B, 3.25%, 1/04/21
     
 
        280             279,860   
W3 Co.:
                                                            
1st Lien Term Loan, 5.75%, 3/13/20
     
 
        407             407,942   
2nd Lien Term Loan, 9.25%, 9/11/20
     
 
        155             156,159   
Web.com Group, Inc., Term Loan B, 4.50%, 10/27/17
     
 
        281             283,923   
 
     
 
                      2,255,601   
IT Services — 3.5%
                                                            
Ceridian Corp., Term Loan B, 4.37% – 4.40%, 5/09/17
     
 
        899             901,891   
First Data Corp.:
                                                            
2018 Term Loan, 4.16%, 9/24/18
     
 
        270             270,451   
Extended 2018 Term Loan B, 4.16%, 3/23/18
     
 
        2,140            2,141,650   
Genpact International, Inc., Term Loan B, 3.50%, 8/30/19
     
 
        658             657,639   
InfoGroup, Inc., Term Loan, 8.00%, 5/25/18
     
 
        245             213,758   
SunGard Data Systems, Inc.:
                                                            
Term Loan D, 4.50%, 1/31/20
     
 
        262             262,678   
Term Loan E, 4.00%, 3/09/20
     
 
        144             144,495   
 
     
 
                      4,592,562   
Leisure Equipment & Products — 0.2%
                                                            
FGI Operating Co. LLC, Term Loan, 5.50%, 4/19/19
     
 
        205             208,273   
Life Sciences Tools & Services — 0.5%
                                                            
Patheon, Inc.:
                                                            
2nd Lien Term Loan, 6.25%, 1/09/21
     
 
        365             363,861   
Term Loan, 7.25%, 12/14/18
     
 
        272             270,748   
 
     
 
                      634,609   
Machinery — 4.4%
                                                            
Allegion US Holding Co., Inc., Term Loan B, 3.00%, 9/30/20
     
 
        210             209,649   
Alliance Laundry Systems LLC:
                                                            
2nd Lien Term Loan, 9.50%, 12/10/19
     
 
        131             132,545   
Refinancing Term Loan, 4.25%, 12/10/18
     
 
        257             257,672   
Faenza Acquisition GmbH:
                                                            
Term Loan B1, 4.25%, 8/31/20
     
 
        274             274,255   
Term Loan B3, 4.25%, 8/28/20
     
 
        83             83,419   
Gardner Denver, Inc., Term Loan, 4.25%, 7/30/20
     
EUR
        886             930,473   
Generac Power Systems, Inc., Term Loan B, 3.50%, 5/31/20
     
USD
        781             780,934   
                         
Floating Rate Loan Interests (b)                 Par
(000)
     Value
Machinery (concluded)
                                                            
Intelligrated, Inc., 1st Lien Term Loan, 4.50%, 7/30/18
     
USD
        395          $     395,744   
Mirror Bidco Corp., Term Loan, 4.25%, 12/27/19
     
 
        564             566,885   
Navistar International Corp., Term Loan B, 5.75%, 8/17/17
     
 
        206                 208,319     
Pacific Industrial Services US Finance Co. LLC:
                                                            
1st Lien Term Loan, 5.00%, 10/02/18
     
 
        499             504,984   
2nd Lien Term Loan, 8.75%, 4/02/19
     
 
        195             199,875   
Rexnord LLC, 1st Lien Term Loan B, 4.00%, 8/21/20
     
 
        480             480,671   
Silver II US Holdings LLC, Term Loan, 4.00%, 12/13/19
     
 
        286             286,262   
STS Operating, Inc., Term Loan, 4.75%, 2/19/21
     
 
        155             155,388   
Terex Corp., Term Loan, 4.00%, 4/28/17
     
EUR
        34             47,150   
Wabash National Corp., Term Loan B, 4.50%, 5/08/19
     
USD
        288             289,628   
 
     
 
                      5,803,853   
Marine — 0.4%
                                                            
HGIM Corp., Term Loan B, 5.50%, 6/18/20
     
 
        517             523,090   
Media — 13.4%
                                                            
Acosta, Inc., Term Loan B, 4.25%, 3/02/18
     
 
        45             45,157   
Activision Blizzard, Inc., Term Loan B, 3.25%, 10/12/20
     
 
        589             589,908   
Advanstar Communications, Inc., 2nd Lien Term Loan, 9.50%, 6/06/20
     
 
        255             255,849   
Catalina Marketing Corp., Term Loan B, 5.25%, 10/12/20
     
 
        574             576,189   
CBS Outdoor Americas Capital LLC, Term Loan B, 3.00%, 1/31/21
     
 
        170             169,548   
Cengage Learning Acquisitions, Inc.:
                                                            
Non-Extended Term Loan, 4.75%, 7/03/14
     
 
        226             212,603   
Tranche 1 Incremental, 9.50%, 7/03/14
     
 
        365             339,508   
Charter Communications Operating LLC, Term Loan E, 3.00%, 7/01/20
     
 
        463             460,246   
Clear Channel Communications, Inc.:
                                                            
Term Loan B, 3.80%, 1/29/16
     
 
        148             144,914   
Term Loan C, 3.80%, 1/29/16
     
 
        40             39,086   
Term Loan D, 6.90%, 1/30/19
     
 
        1,564            1,534,650   
Cumulus Media Holdings, Inc., 2013 Term Loan, 4.25%, 12/23/20
     
 
        559             561,740   
The E.W. Scripps Co., Term Loan B, 3.25%, 11/26/20
     
 
        350             350,735   
EMI Music Publishing Ltd., Term Loan B, 4.25%, 6/29/18
     
 
        249             249,455   
Fender Musical Instruments Corp., Term Loan B, 5.75%, 4/03/19
     
 
        62             62,827   
Getty Images, Inc., Term Loan B, 4.75%, 10/18/19
     
 
        45             42,981   
Hemisphere Media Group, Inc., Term Loan, 6.25%, 7/30/20
     
 
        367             368,394   
Hubbard Radio LLC, Term Loan B, 4.50%, 4/29/19
     
 
        386             387,464   
Intelsat Jackson Holdings SA, Term Loan B2, 3.75%, 6/30/19
     
 
        1,058            1,064,762   
Lions Gate Entertainment Corp., 2nd Lien Term Loan, 5.00%, 7/17/20
     
 
        150             151,875   
Live Nation Entertainment, Inc., 2020 Term Loan B1, 3.50%, 8/17/20
     
 
        115             114,856   
Media General, Inc., Delayed Draw Term Loan B, 4.25%, 7/31/20
     
 
        420             423,415   
Mediacom Communications Corp., Term Loan F, 2.63%, 1/31/18
     
 
        255             253,406   
Mediacom LLC, Term Loan E, 4.50%, 10/23/17
     
 
        483             482,900   
NEP/NCP Holdco, Inc.:
                                                            
2nd Lien Term Loan, 9.50%, 7/22/20
     
 
        131             134,386   
Incremental Term Loan, 4.50%, 1/22/20
     
 
        653             653,400   
Nielsen Finance LLC, Term Loan E, 2.91%, 5/02/16
     
 
        537             536,601   
Rentpath, Inc., Term Loan B, 6.25%, 5/29/20
     
 
        537             522,524   

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2014 15
 
  
Schedule of Investments (continued)   BlackRock Defined Opportunity Credit Trust (BHL)
(Percentages shown are based on Net Assets)
Floating Rate Loan Interests (b)                 Par
(000)
     Value
Media (concluded)
                                                            
Salem Communications Corp., Term Loan B, 4.50%, 3/13/20
     
USD
        388          $ 389,549   
SBA Senior Finance II LLC:
                                                            
Incremental Delayed Draw Term Loan B, 3.25%, 3/31/21
     
 
        248             246,728   
Incremental Term Loan B, 3.25%, 3/24/21
     
 
        248                 246,765     
Sinclair Television Group, Inc., Term Loan B, 3.00%, 4/09/20
     
 
        372             369,491   
Springer Science & Business Media Deutschland GmbH, Term Loan B2, 5.00%, 8/14/20
     
 
        494             496,108   
Tribune Co., Term Loan, 4.00%, 12/27/20
     
 
        650             649,389   
TWCC Holding Corp., 2nd Lien Term Loan, 7.00%, 6/26/20
     
 
        465             449,887   
Univision Communications, Inc., Term Loan C4, 4.00%, 3/01/20
     
 
        525             525,938   
UPC Financing Partnership, Term Loan AG, 3.98%, 3/31/21
     
EUR
        281             390,405   
Virgin Media Investment Holdings Ltd.:
                                                            
Term Loan B, 3.50%, 6/08/20
     
USD
        780             779,165   
Term Loan C, 4.50%, 6/05/20
     
GBP
        650             1,094,521   
WideOpenWest Finance LLC, Term Loan B, 4.75%, 4/01/19
     
USD
        512             514,606   
Ziggo NV:
                                                            
Term Loan B1, 3.50%, 1/15/22
     
 
        233             231,576   
Term Loan B2, 3.50%, 1/15/22
     
 
        150             149,251   
Term Loan B3, 2.75%, 1/15/22
     
 
        247             245,464   
 
     
 
                      17,508,222   
Metals & Mining — 3.3%
                                                            
Ameriforge Group, Inc.:
                                                            
1st Lien Term Loan, 5.00%, 12/19/19
     
 
        371             372,957   
2nd Lien Term Loan, 8.75%, 12/19/20
     
 
        185             189,163   
API Heat Transfer, Inc., Term Loan, 5.25%, 5/03/19
     
 
        370             369,850   
Constellium Holdco BV, Term Loan B, 6.00%, 3/25/20
     
 
        824             840,250   
FMG Resources August 2006 Property Ltd., Term Loan B, 4.25%, 6/28/19
     
 
        845             853,036   
Novelis, Inc., Term Loan, 3.75%, 3/10/17
     
 
        788             790,512   
SunCoke Energy, Inc., Term Loan B, 4.00%, 7/26/18
     
 
        137             136,503   
Walter Energy, Inc., Term Loan B, 6.75%, 4/02/18
     
 
        145             142,272   
Windsor Financing LLC, Term Loan B, 6.25%, 12/05/17
     
 
        607             621,952   
 
     
 
                      4,316,495   
Multiline Retail — 3.9%
                                                            
99¢ Only Stores, Term Loan, 4.50%, 1/11/19
     
 
        453             457,043   
Apex Tool Group LLC, Term Loan B, 4.50%, 1/31/20
     
 
        481             475,196   
BJ’s Wholesale Club, Inc.:
                                                            
1st Lien Term Loan, 4.50%, 9/26/19
     
 
        541             543,833   
2nd Lien Term Loan, 8.50%, 3/26/20
     
 
        200             205,188   
HEMA Holding BV, Extended 2nd Lien Term Loan, 5.97%, 1/05/18
     
EUR
        1,800            2,236,087   
Hudson’s Bay Co., 1st Lien Term Loan, 4.75%, 11/04/20
     
USD
        430             436,241   
The Neiman Marcus Group, Inc., Term Loan B, 5.00%, 10/25/20
     
 
        698             706,036   
 
     
 
                      5,059,624   
Oil, Gas & Consumable Fuels — 5.4%
                                                            
Arch Coal, Inc., Term Loan B, 5.75%, 5/16/18
     
 
        195             192,249   
Chesapeake Energy Corp., Unsecured Term Loan, 5.75%, 12/01/17
     
 
        985             1,006,463   
Drillships Financing Holding, Inc., Term Loan B1, 6.00%, 3/31/21
     
 
        591             601,434   
EP Energy LLC/Everest Acquisition Finance, Inc., Term Loan B3, 3.50%, 5/24/18
     
 
        440             439,670   
Fieldwood Energy LLC:
                                                            
1st Lien Term Loan, 3.88%, 9/28/18
     
 
        314             314,863   
2nd Lien Term Loan, 8.38%, 9/30/20
     
 
        135             139,641   
                         
Floating Rate Loan Interests (b)                 Par
(000)
     Value
Oil, Gas & Consumable Fuels (concluded)
                                                            
Moxie Patriot LLC, Term Loan B1, 6.75%, 12/18/20
     
USD
        325          $ 331,500   
Obsidian Natural Gas Trust, Term Loan, 7.00%, 11/02/15
     
 
        280             283,977   
Offshore Group Investment Ltd.:
                                                            
5.00%, 10/25/17
     
 
        678                 680,608     
5.75%, 3/28/19
     
 
        172             174,457   
Pacific Drilling SA, Term Loan B, 4.50%, 6/04/18
     
 
        552             555,505   
Panda Temple II Power LLC, Term Loan B, 7.25%, 4/03/19
     
 
        360             367,650   
Philadelphia Energy Solutions LLC, Term Loan B, 6.25%, 4/04/18
     
 
        52             46,499   
Power Buyer, LLC:
                                                            
1st Lien Term Loan, 4.25%, 5/06/20
     
 
        195             193,971   
2nd Lien Term Loan, 8.25%, 11/06/20
     
 
        105             103,950   
Delayed Draw Term Loan, 4.25%, 5/06/20
     
 
        11             10,600   
Raven Power Finance LLC, Term Loan, 5.25%, 12/19/20
     
 
        240             241,500   
Ruby Western Pipeline Holdings LLC, Term Loan B, 3.50%, 3/27/20
     
 
        404             402,935   
Tesoro Corp., Term Loan B, 2.40%, 5/30/16
     
 
        429             430,373   
Western Refining, Inc., Term Loan B, 4.25%, 11/12/20
     
 
        335             337,094   
WTG Holdings III Corp.:
                                                            
1st Lien Term Loan, 4.75%, 1/15/21
     
 
        135             135,338   
2nd Lien Term Loan, 8.50%, 1/15/22
     
 
        30             30,356   
 
     
 
                      7,020,633   
Pharmaceuticals — 4.4%
                                                            
Akorn, Inc., Term Loan B, 3.50%, 8/27/20
     
 
        410             412,562   
Amneal Pharmaceuticals LLC, Term Loan, 5.75% – 7.00%, 11/01/19
     
 
        279             280,697   
CCC Information Services, Inc., Term Loan, 4.00%, 12/20/19
     
 
        213             213,050   
Endo Health Solutions, Inc., Term Loan B, 3.75%, 11/05/20
     
 
        360             359,251   
Jazz Pharmaceuticals, Inc., Term Loan B, 3.50%, 6/12/18
     
 
        95             95,136   
Par Pharmaceutical Cos., Inc., Term Loan B, 4.00%, 9/30/19
     
 
        1,240            1,241,379   
Pharmaceutical Product Development LLC, Term Loan B, 4.00%, 12/05/18
     
 
        916             919,724   
Quintiles Transnational Corp., Term Loan B3, 3.75%, 6/08/18
     
 
        577             577,407   
Valeant Pharmaceuticals International, Inc.:
                                                            
Series C2 Term Loan B, 3.75%, 12/11/19
     
 
        607             608,831   
Series D2 Term Loan B, 3.75%, 2/13/19
     
 
        657             658,906   
Series E Term Loan B, 3.75%, 8/05/20
     
 
        378             379,743   
 
     
 
                      5,746,686   
Professional Services — 1.7%
                                                            
Emdeon Business Services LLC, Term Loan B2, 3.75%, 11/02/18
     
 
        720             721,099   
ON Assignment, Inc., Refinancing Term Loan B, 3.50%, 4/30/20
     
 
        170             170,585   
SIRVA Worldwide, Inc., Term Loan, 7.50%, 3/27/19
     
 
        427             434,243   
TriNet Group, Inc., Term Loan B2, 5.00%, 8/14/20
     
 
        259             260,971   
Truven Health Analytics, Inc., Term Loan B, 4.50%, 6/06/19
     
 
        596             597,151   
 
     
 
                      2,184,049   
Real Estate Investment Trusts (REITs) — 0.5%
                                                            
iStar Financial, Inc., Term Loan, 4.50%, 10/16/17
     
 
        587             587,837   
Starwood Property Trust, Inc., Term Loan B, 3.50%, 4/17/20
     
 
        125             124,257   
 
     
 
                      712,094   
Real Estate Management & Development — 1.4%
                                                            
CityCenter Holdings LLC, Term Loan B, 5.00%, 10/16/20
     
 
        575             580,301   

See Notes to Financial Statements.

16 SEMI-ANNUAL REPORT FEBRUARY 28, 2014
 
  
Schedule of Investments (continued)   BlackRock Defined Opportunity Credit Trust (BHL)
(Percentages shown are based on Net Assets)
Floating Rate Loan Interests (b)                 Par
(000)
     Value
Real Estate Management & Development (concluded)
Realogy Corp.:
                                                            
Extended Letter of Credit, 4.40%, 10/10/16
     
USD
        87          $      87,087   
Extended Term Loan, 4.50%, 3/05/20
     
 
        1,194            1,196,793   
 
     
 
                      1,864,181   
Road & Rail — 0.4%
                                                            
Genesee & Wyoming, Inc., Term Loan A, 1.90% – 1.91%, 9/29/17
     
 
        236                 235,989     
Road Infrastructure Investment LLC, Term Loan B, 6.25%, 3/30/18
     
 
        229             230,212   
 
     
 
                      466,201   
Semiconductors & Semiconductor Equipment — 0.8%
Freescale Semiconductor, Inc.:
                                                            
Term Loan B4, 5.00%, 2/28/20
     
 
        534             536,128   
Term Loan B5, 5.00%, 1/15/21
     
 
        165             166,439   
NXP BV, Term Loan D, 3.25%, 1/11/20
     
 
        329             328,846   
 
     
 
                      1,031,413   
Software — 4.9%
                                                            
BMC Software Finance, Inc., Term Loan, 5.00%, 9/10/20
     
 
        560             561,282   
CompuCom Systems, Inc., Refinancing Term Loan B, 4.25%, 5/11/20
     
 
        139             138,890   
Evertec Group LLC, Term Loan B, 3.50%, 4/17/20
     
 
        244             237,437   
GCA Services Group, Inc.:
                                                            
2nd Lien Term Loan, 9.25%, 10/22/20
     
 
        176             177,980   
Term Loan B, 4.25% – 5.50%, 11/01/19
     
 
        414             416,105   
Infor US, Inc., Term Loan B5, 3.75%, 6/03/20
     
 
        924             922,271   
IQOR US, Inc., Term Loan B, 6.00%, 2/19/21
     
 
        210             205,800   
Kronos Worldwide, Inc., 2020 Term Loan B, 4.75%, 2/12/20
     
 
        115             115,791   
Kronos, Inc., 2nd Lien Term Loan, 9.75%, 4/30/20
     
 
        409             416,390   
Mitchell International, Inc.:
                                                            
1st Lien Term Loan, 4.50%, 10/12/20
     
 
        310             310,775   
2nd Lien Term Loan, 8.50%, 10/11/21
     
 
        350             356,709   
RP Crown Parent LLC, 2013 Term Loan, 6.00%, 12/21/18
     
 
        357             357,682   
Shield Finance Co. Sarl, Term Loan, 5.00%, 1/27/21
     
 
        155             156,356   
Sophia LP, Term Loan B, 4.50%, 7/19/18
     
 
        603             607,224   
SS&C Technologies, Inc.:
                                                            
Term Loan B1, 3.25%, 6/07/19
     
 
        631             633,050   
Term Loan B2, 3.25%, 6/07/19
     
 
        65             65,488   
StoneRiver Holdings, Inc.:
                                                            
1st Lien Term Loan, 4.50%, 11/29/19
     
 
        146             146,198   
2nd Lien Term Loan, 8.50%, 5/29/20
     
 
        204             205,765   
Websence, Inc.:
                                                            
2nd Lien Term Loan, 8.25%, 12/24/20
     
 
        170             170,425   
Term Loan B, 4.50%, 6/25/20
     
 
        184             185,456   
 
     
 
                      6,387,074   
Specialty Retail — 4.7%
                                                            
Academy Ltd., Term Loan, 4.50%, 8/03/18
     
 
        614             617,139   
Burlington Coat Factory Warehouse Corp., Term Loan B2, 4.25%, 2/23/17
     
 
        146             146,643   
David’s Bridal, Inc., Term Loan B, 5.00%, 10/11/19
     
 
        846             850,520   
Equinox Holdings, Inc., Repriced Term Loan B, 4.50% – 5.50%, 1/31/20
     
 
        452             455,539   
The Gymboree Corp., Initial Term Loan, 5.00%, 2/23/18
     
 
        77             70,706   
Harbor Freight Tools USA, Inc., 1st Lien Term Loan, 4.75%, 7/26/19
     
 
        454             460,055   
Jo-Ann Stores, Inc., Term Loan, 4.00%, 3/16/18
     
 
        221             220,687   
Leslies Poolmart, Inc., Term Loan, 4.25%, 10/16/19
     
 
        554             556,305   
Michaels Stores, Inc., Term Loan, 3.75%, 1/28/20
     
 
        520             521,404   
Party City Holdings, Inc., Term Loan, 4.00%, 7/27/19
     
 
        753             752,988   
Petco Animal Supplies, Inc., Term Loan, 4.00%, 11/24/17
     
 
        779             781,781   
Sprouts Farmers Markets Holdings LLC, Term Loan, 4.00%, 4/23/20
     
 
        61             61,244   
                         
Floating Rate Loan Interests (b)                 Par
(000)
     Value
Specialty Retail (concluded)
                                                            
SRAM LLC, Term Loan B, 4.00% – 5.25%, 4/10/20
     
USD
        188          $ 187,810   
Things Remembered, Inc., Term Loan B, 8.00%, 5/24/18
     
 
        395             393,236   
Toys ‘R’ Us-Delaware, Inc., Term Loan B3, 5.25%, 5/25/18
     
 
        37             31,274   
 
     
 
                      6,107,331   
Textiles, Apparel & Luxury Goods — 1.2%
                                                            
Ascend Performance Materials LLC, Term Loan B, 6.75%, 4/10/18
     
 
        909             881,548   
J. Crew Group, Inc., Term Loan B, 4.00%, 2/20/21
     
 
        405             403,481   
Phillips-Van Heusen Corp., Term Loan B, 3.25%, 2/13/20
     
 
        239             239,105   
 
     
 
                      1,524,134   
Thrifts & Mortgage Finance — 0.3%
                                                            
IG Investments Holdings LLC, 1st Lien Term Loan, 5.25%, 10/31/19
     
 
        446             446,614   
Trading Companies & Distributors — 0.1%
                                                            
Fly Funding II Sarl, Term Loan B, 4.50%, 8/09/19
     
 
        54             55,059   
WESCO Distribution, Inc., Term Loan B, 3.75%, 12/12/19
     
 
        127             127,477   
 
     
 
                      182,536   
Wireless Telecommunication Services — 0.7%
                                                            
Cricket Communications, Inc., Term Loan, 4.75%, 10/10/19
     
 
        371             370,793   
Light Tower Fiber LLC, 1st Lien Term Loan, 4.00%, 4/13/20
     
 
        607             605,815   
 
     
 
                      976,608   
Total Floating Rate Loan Interests — 132.8%
     
 
                      173,893,093   

Non-Agency Mortgage-Backed Securities — 0.2%
Commercial Mortgage-Backed Securities — 0.2%
                                                            
Hilton USA Trust, Series 2013-HLT, Class EFX, 4.45%, 11/05/30 (b)(c)
     
 
        304             312,445   

Investment Companies
     
 
        Shares                  
Capital Markets — 0.0%
                                                            
Eaton Vance Floating-Rate Income Trust
     
 
        12             185    
Eaton Vance Senior Income Trust
     
 
        3,347            23,563   
Total Investment Companies — 0.0%
     
 
                      23,748   

Warrants (d) — 0.0%
Software — 0.0%
                                                            
HMH Holdings/EduMedia (issued/exercisable 3/09/10, 19 Shares for 1 Warrant, Expires 6/22/19, Strike Price $42.27)
     
 
        691             2,444   
Total Long-Term Investments
(Cost — $181,985,573) — 140.6%
     
 
                      184,240,683   

Short-Term Securities
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.03% (e)(f)
     
 
        2,835,510            2,835,510   
Total Short-Term Securities
(Cost — $2,835,510) — 2.2%
     
 
                      2,835,510   
Total Investments (Cost — $184,821,083) — 142.8%
                   187,076,193   
Liabilities in Excess of Other Assets — (42.8)%
     
 
                      (56,105,233 )  
Net Assets — 100.0%
                $ 130,970,960   

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2014 17
 
  
Schedule of Investments (continued)   BlackRock Defined Opportunity Credit Trust (BHL)