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UNITEDSTATES
SECURITIESANDEXCHANGECOMMISSION
Washington,D.C.20549

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number 811-21566

Name of Fund: BlackRock Floating Rate Income Trust (BGT)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: Anne F. Ackerley, Chief Executive Officer, BlackRock
Floating Rate Income Trust, 55 East 52nd Street, New York, NY 10055.

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

Date of fiscal year end: 10/31/2010

Date of reporting period: 04/30/2010

Item 1 – Report to Stockholders



Semi-Annual Report

APRIL 30, 2010 I (UNAUDITED)

BlackRock Credit Allocation Income Trust I, Inc. (PSW)

BlackRock Credit Allocation Income Trust II, Inc. (PSY)

BlackRock Credit Allocation Income Trust III (BPP)

BlackRock Credit Allocation Income Trust IV (BTZ)

BlackRock Floating Rate Income Trust (BGT)

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  9 
Derivative Financial Instruments  10 
Financial Statements:   
   Schedules of Investments  11 
   Statements of Assets and Liabilities  38 
   Statements of Operations  39 
   Statements of Changes in Net Assets  40 
   Statement of Cash Flows  42 
Financial Highlights  44 
Notes to Financial Statements  48 
Officers and Directors  58 
Additional Information  59 

2 SEMI-ANNUAL REPORT

APRIL 30, 2010


Dear Shareholder

Although overall global economic and financial conditions have generally improved over the past year, the period ended with high levels of market volatility

and diminishing investor confidence sparked by the sovereign debt crisis in Europe, concerns over the strength of the economic recovery and uncertainty

surrounding the future of interest rate policies. Additionally, as the period drew to a close, the increasing likelihood of more stringent financial market regula-

tions added to the overall sense of investment uncertainty. Despite the uneven nature of recent market conditions, we continue to believe that the “Great

Recession” likely ended at some point last summer, thanks primarily to massive fiscal and monetary stimulus, and that the global economy remains in

recovery mode.

Global equity markets bottomed in early 2009 and since that time have moved unevenly higher as investors were lured back into the markets by depressed

valuations, desire for higher yields and improvements in corporate earnings prospects. There have been several corrections along the way and volatility levels

have remained elevated — reflections of mixed economic data, lingering deflation issues (especially in Europe) and uncertainty surrounding financial regula-

tions. On balance, however, improving corporate revenues and profits and a positive macro backdrop helped push stock prices higher over the last twelve

and six months. From a geographic perspective, US equities have outpaced their international counterparts in recent months, as the domestic economic

recovery has been more pronounced and as credit-related issues have held European markets down.

Within fixed income markets, yields have been moving unevenly as improving economic conditions have been acting to push Treasury yields higher (and

prices correspondingly lower), while concerns over ongoing deflation threats have acted as a counterweight. As the period drew to a close, Treasury yields

were falling as investors flocked to the “safe haven” asset class in the face of escalating uncertainty. Over the course of the last twelve and six months,

however, Treasuries underperformed other areas of the bond market, particularly the high yield sector, which has been benefiting from increased investor

demand. Meanwhile, municipal bonds slightly outperformed taxable sectors over both the six- and twelve-month periods thanks to continued high demand

levels, but have continued to face the headwinds of ongoing state and local budget problems. As in the taxable arena, high yield municipals have been out-

performing the rest of the market.

Regarding cash investments, yields on money market securities remain near all-time lows (producing returns only marginally above zero percent), with

the Federal Open Market Committee reiterating that economic circumstances are likely to necessitate an accommodative interest rate stance for an

“extended period.”

Against this backdrop, the major market averages posted the following returns:     
Total Returns as of April 30, 2010  6-month  12-month 
US equities (S&P 500 Index)  15.66%  38.84% 
Small cap US equities (Russell 2000 Index)  28.17  48.95 
International equities (MSCI Europe, Australasia, Far East Index)  2.48  34.43 
3-month Treasury bill (BofA Merrill Lynch 3-Month Treasury Bill Index)  0.04  0.15 
US Treasury securities (BofA Merrill Lynch 10-Year US Treasury Index)  (0.54)  (1.32) 
Taxable fixed income (Barclays Capital US Aggregate Bond Index)  2.54  8.30 
Tax-exempt fixed income (Barclays Capital Municipal Bond Index)  3.68  8.85 
High yield bonds (Barclays Capital US Corporate High Yield 2% Issuer Capped Index)  11.60  42.53 

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

Global financial markets continue to show signs of improvement, but questions about the strength and sustainability of the recovery abound. Through

periods of uncertainty, as ever, BlackRock’s full resources are dedicated to the management of our clients’ assets. For additional market perspective and

investment insight, visit www.blackrock.com/shareholdermagazine, where you’ll find the most recent issue of our award-winning Shareholder® magazine,

as well as its quarterly companion newsletter, Shareholder Perspectives. As always, we thank you for entrusting BlackRock with your investments, and we

look forward to your continued partnership in the months and years ahead.


THIS PAGE NOT PART OF YOUR FUND REPORT

3


Fund Summary as of April 30, 2010

BlackRock Credit Allocation Income Trust I, Inc.

Investment Objective

BlackRock Credit Allocation Income Trust I, Inc. (PSW) (formerly BlackRock Preferred and Corporate Income Strategies Fund, Inc.) (the “Fund”) seeks to
provide shareholders with high current income and capital appreciation. The Fund seeks to achieve its objectives by investing primarily in credit-related securi-
ties, including, but not limited to, investment grade corporate bonds, high yield bonds, bank loans, preferred securities or convertible bonds or derivatives with
economic characteristics similar to these credit-related securities.

Effective November 13, 2009, BlackRock Preferred and Corporate Income Strategies Fund, Inc. was renamed BlackRock Credit Allocation Income Trust I, Inc.

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

Performance

For the six months ended April 30, 2010, the Fund returned 17.86% based on market price and 16.40% based on net asset value (“NAV”). For the same
period, the closed-end Lipper Income & Preferred Stock Funds category posted an average return of 22.64% on a market price basis and 15.18% on a
NAV basis. 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. In accordance with a change to its investment policies the Fund transitioned its portfolio away
from primarily investing in preferred securities and corporate bonds into a broader spectrum of securities across the capital structure. Performance has been
driven by the strong rebound in preferred securities, along with asset allocation decisions within the preferred sector. In particular, the Fund benefited from
an overweight allocation to institutional corporate securities and hybrid securities as those sectors continued their dramatic outperformance versus $25 par
preferred securities, in which the Fund was underweight. The Fund’s performance also benefited from participation in several additional issuer-related ten-
ders in preferred equity exchanges, along with an overweight in the European banking sector. On the other hand, markets experienced substantial volatility
over the period, most notably during the first three months of 2010. Markets were robust in early January as improving economic conditions left investors
feeling underinvested and scrambling to purchase assets. The rally met an abrupt end in mid-January due to rising Greek default risk and the unexpected
tightening of monetary policy in China. Markets declined over the ensuing weeks until a European Union-led finance package for Greece was announced.
From that point, markets rallied on stronger economic data, including the first month of job creation (in March) and upward revisions to the previous three
months’ jobs data. The preferred market was largely immune from this volatility, however, as prices rose whether the broader market was rallying or selling
off. This was due to the previously discussed positive effect of market tenders in the European banking sector.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are no guarantee of future results.

Fund Information     
  Symbol on New York Stock Exchange (“NYSE”)  PSW 
  Initial Offering Date  August 1, 2003 
  Yield based on Closing Market Price as of April 30, 2010 ($9.32)1    7.73% 
  Current Monthly Distribution per Common Share2  $0.06 
  Current Annualized Distribution per Common Share2  $0.72 
  Leverage as of April 30, 20103  29% 

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.
2 The monthly distribution per Common Share, declared on June 1, 2010, was decreased to $0.057. The yield on the Closing Market Price, Current
Monthly Distribution per Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The
distribution rate is not constant and is subject to further change in the future. A portion of the distribution may be deemed a tax return of capital or
net realized gain.
3 Represents reverse repurchase agreements and Auction Market Preferred Shares (“Preferred Shares”) as a percentage of total managed assets,
which is the total assets of the Fund (including any assets attributable to any borrowings and Preferred Shares) 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 9.

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

  4/30/10  10/31/09  Change  High  Low 
Market Price  $ 9.32  $8.24  13.11%  $ 9.40  $7.93 
Net Asset Value  $10.40  $9.31  11.71%  $10.40  $9.22 

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

Portfolio Composition     
  4/30/10  10/31/09 
Corporate Bonds  67%  18% 
Preferred Securities  32     82 
Taxable Municipal Bonds  1   

     Credit Quality Allocations4     
  4/30/10  10/31/09 
AA/Aa  9%   
A  27  26% 
BBB/Baa  48  62 
BB/Ba  13  8 
B  1  2 
CCC/Caa  1   
Not Rated  1  2 

4 Using the higher of Standard & Poor’s (“S&P’s”) or Moody’s Investor
Service (“Moody’s”) ratings.

4 SEMI-ANNUAL REPORT

APRIL 30, 2010


Fund Summary as of April 30, 2010

BlackRock Credit Allocation Income Trust II, Inc.

Investment Objective

BlackRock Credit Allocation Income Trust II, Inc. (PSY) (formerly BlackRock Preferred Income Strategies Fund, Inc.) (the “Fund”) seeks to provide share-
holders with current income and capital appreciation. The Fund seeks to achieve its objectives by investing primarily in credit-related securities, including,
but not limited to, investment grade corporate bonds, high yield bonds, bank loans, preferred securities or convertible bonds or derivatives with economic
characteristics similar to these credit-related securities.

Effective November 13, 2009, BlackRock Preferred Income Strategies Fund, Inc. was renamed BlackRock Credit Allocation Income Trust II, Inc.

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

Performance

For the six months ended April 30, 2010, the Fund returned 21.75% based on market price and 18.47% based on net asset value (NAV). For the same
period, the closed-end Lipper Income & Preferred Stock Funds category posted an average return of 22.64% on a market price basis and 15.18% on a
NAV basis. 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. In accordance with a change to its investment policies the Fund transitioned its portfolio away
from primarily investing in preferred securities into a broader spectrum of securities across the capital structure. Performance has been driven by the strong
rebound in preferred securities, along with asset allocation decisions within the sector. In particular, the Fund benefited from an overweight allocation to
institutional corporate securities and hybrid securities as those sectors continued their dramatic outperformance versus $25 par preferred securities, in
which the Fund was underweight. The Fund’s performance also benefited from participation in several additional issuer-related tenders in preferred equity
exchanges, along with an overweight in the European banking sector. On the other hand, markets experienced substantial volatility over the period, most
notably during the first three months of 2010. Markets were robust in early January as improving economic conditions left investors feeling underinvested
and scrambling to purchase assets. The rally met an abrupt end in mid-January due to rising Greek default risk and the unexpected tightening of monetary
policy in China. Markets declined over the ensuing weeks until a European Union-led finance package for Greece was announced. From that point, markets
rallied on stronger economic data, including the first month of job creation (in March) and upward revisions to the previous three months’ jobs data. The
preferred market was largely immune from this volatility, however, as prices rose whether the broader market was rallying or selling off. This was due to the
previously discussed positive effect of market tenders in the European banking sector.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are no guarantee of future results.

Fund Information     
  Symbol on NYSE  PSY 
  Initial Offering Date  March 28, 2003 
  Yield on Closing Market Price as of April 30, 2010 ($10.35)1  8.70% 
  Current Monthly Distribution per Common Share2  $0.075 
  Current Annualized Distribution per Common Share2  $0.900 
  Leverage as of April 30, 20103  28% 

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.
2 The monthly distribution per Common Share, declared on June 1, 2010, was decreased to $0.0635. The yield on the Closing Market Price, Current
Monthly Distribution per Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The distribu-
tion rate is not constant and is subject to further change in the future. A portion of the distribution may be deemed a tax return of capital or net
realized gain.
3 Represents reverse repurchase agreements and Preferred Shares as a percentage of total managed assets, which is the total assets of the Fund
(including any assets attributable to any borrowings and Preferred Shares) 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 9.

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

  4/30/10  10/31/09  Change  High  Low 
Market Price  $10.35  $ 8.90  16.29%  $10.49  $8.53 
Net Asset Value  $11.35  $10.03  13.16%  $11.35  $9.91 

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

Portfolio Composition     
  4/30/10  10/31/09 
Corporate Bonds  56%    3% 
Preferred Securities  43  97 
Taxable Municipal Bonds  1        

     Credit Quality Allocations4     
  4/30/10  10/31/09 
AA/Aa  7%  1% 
A  26  26 
BBB/Baa  50  56 
BB/Ba  13  14 
B  2  3 
CCC/Caa  1   
Not Rated  1   
 4 Using the higher of S&P’s or Moody’s ratings.   

SEMI-ANNUAL REPORT

APRIL 30, 2010

5


Fund Summary as of April 30, 2010

BlackRock Credit Allocation Income Trust III

Investment Objective

BlackRock Credit Allocation Income Trust III (BPP) (formerly BlackRock Preferred Opportunity Trust) (the “Fund”) seeks high current income consistent
with capital preservation. The Fund seeks to achieve its objectives by investing primarily in credit-related securities, including, but not limited to, investment
grade corporate bonds, high yield bonds, bank loans, preferred securities or convertible bonds or derivatives with economic characteristics similar to these
credit-related securities.

Effective November 13, 2009, BlackRock Preferred Opportunity Trust was renamed BlackRock Credit Allocation Income Trust III.

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

Performance

For the six months ended April 30, 2010, the Fund returned 13.05% based on market price and 12.74% based on net asset value (NAV). For the same
period, the closed-end Lipper Income & Preferred Stock Funds category posted an average return of 22.64% on a market price basis and 15.18% on a
NAV basis. 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. In accordance with a change to its investment policies the Fund transitioned its portfolio away
from primarily investing in preferred securities into a broader spectrum of securities across the capital structure. Performance has been driven by the strong
rebound in preferred securities, along with asset allocation decisions within the preferred sector. In particular, the Fund benefited from an overweight alloca-
tion to institutional corporate securities and hybrid securities as those sectors continued their dramatic outperformance versus $25 par preferred securities,
in which the Fund was underweight. The Fund’s performance also benefited from participation in several additional issuer-related tenders in preferred equity
exchanges, along with an overweight in the European banking sector. On the other hand, markets experienced substantial volatility over the period, most
notably during the first three months of 2010. Markets were robust in early January as improving economic conditions left investors feeling underinvested
and scrambling to purchase assets. The rally met an abrupt end in mid-January due to rising Greek default risk and the unexpected tightening of monetary
policy in China. Markets declined over the ensuing weeks until a European Union-led finance package for Greece was announced. From that point, markets
rallied on stronger economic data, including the first month of job creation (in March) and upward revisions to the previous three months’ jobs data. The
preferred market was largely immune from this volatility, however, as prices rose whether the broader market was rallying or selling off. This was due to the
previously discussed positive effect of market tenders in the European banking sector.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are no guarantee of future results.

Fund Information     
  Symbol on NYSE  BPP 
  Initial Offering Date  February 28, 2003 
  Yield on Closing Market Price as of April 30, 2010 ($10.78)1  8.07% 
  Current Monthly Distribution per Common Share2  $0.0725 
  Current Annualized Distribution per Common Share2  $0.8700 
  Leverage as of April 30, 20103  24% 

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.
2 The monthly distribution per Common Share, declared on June 1, 2010, was decreased to $0.066500. The yield on the Closing Market Price, Current
Monthly Distribution per Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The distribu-
tion rate is not constant and is subject to further change in the future. A portion of the distribution may be deemed a tax return of capital or net
realized gain.
3 Represents reverse repurchase agreements and Preferred Shares as a percentage of total managed assets, which is the total assets of the Fund
(including any assets attributable to any borrowings and Preferred Shares) 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 9.

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

  4/30/10  10/31/09  Change  High  Low 
Market Price  $10.78  $ 9.94  8.45%  $10.85  $ 9.56 
Net Asset Value  $11.95  $11.05  8.14%  $11.95  $10.92 

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

     Portfolio Composition     
  4/30/10  10/31/09 
Corporate Bonds  58%  10% 
Preferred Securities  40  90 
Municipal Bonds  2   

     Credit Quality Allocations4     
  4/30/10  10/31/09 
AA/Aa  7%  4% 
A  32  28 
BBB/Baa  40  45 
BB/Ba  18  13 
B  2  5 
CCC/Caa  1  5 
 4 Using the higher of S&P’s or Moody’s ratings.   

6 SEMI-ANNUAL REPORT

APRIL 30, 2010


Fund Summary as of April 30, 2010

BlackRock Credit Allocation Income Trust IV

Investment Objective

BlackRock Credit Allocation Income Trust IV (BTZ) (formerly BlackRock Preferred and Equity Advantage Trust) (the “Fund”) seeks to achieve high
current income, current gains and capital appreciation. The Fund seeks to achieve its objectives by investing primarily in credit-related securities, including,
but not limited to, investment grade corporate bonds, high yield bonds, bank loans, preferred securities or convertible bonds or derivatives with economic char-
acteristics similar to these credit-related securities.

Effective November 13, 2009, BlackRock Preferred and Equity Advantage Trust was renamed BlackRock Credit Allocation Income Trust IV.
No assurance can be given that the Fund’s investment objective will be achieved.

Performance

For the six months ended April 30, 2010, the Fund returned 20.86% based on market price and 16.29% based on net asset value (NAV). For the same
period, the closed-end Lipper Income & Preferred Stock Funds category posted an average return of 22.64% on a market price basis and 15.18% on a
NAV basis. 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. In accordance with a change to its investment policies the Fund transitioned its portfolio away
from primarily investing in preferred and equity securities into a broader spectrum of securities across the capital structure. In addition, the Fund no longer
employs an option-writing strategy. Performance has been driven by the strong rebound in preferred securities, along with asset allocation decisions within
the preferred sector. In particular, the Fund benefited from an overweight allocation to institutional corporate securities and hybrid securities as those sec-
tors continued their dramatic outperformance versus $25 par preferred securities, in which the Fund was underweight. The Fund’s performance also bene-
fited from participation in several additional issuer-related tenders in preferred equity exchanges, along with an overweight in the European banking sector.
On the other hand, markets experienced substantial volatility over the period, most notably during the first three months of 2010. Markets were robust in
early January as improving economic conditions left investors feeling underinvested and scrambling to purchase assets. The rally met an abrupt end in mid-
January due to rising Greek default risk and the unexpected tightening of monetary policy in China. Markets declined over the ensuing weeks until a
European Union-led finance package for Greece was announced. From that point, markets rallied on stronger economic data, including the first month of
job creation (in March) and upward revisions to the previous three months’ jobs data. The preferred market was largely immune from this volatility, however,
as prices rose whether the broader market was rallying or selling off. This was due to the previously discussed positive effect of market tenders in the
European banking sector.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are no guarantee of future results.

Fund Information     
  Symbol on NYSE  BTZ 
  Initial Offering Date  December 27, 2006 
  Yield on Closing Market Price as of April 30, 2010 ($12.59)1  9.53% 
  Current Monthly Distribution per Common Share2  $0.10 
  Current Annualized Distribution per Common Share2  $1.20 
  Leverage as of April 30, 20103  29% 

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.
2 The monthly distribution per Common Share, declared on June 1, 2010, was decreased to $0.079. The yield on the Closing Market Price, Current
Monthly Distribution per Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The distribu-
tion rate is not constant and is subject to further change in the future. A portion of the distribution may be deemed a tax return of capital or net
realized gain.
3 Represents reverse repurchase agreements and Preferred Shares as a percentage of total managed assets, which is the total assets of the Fund
(including any assets attributable to any borrowings and Preferred Shares) 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 9.

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

  4/30/10  10/31/09  Change  High  Low 
Market Price  $12.59  $10.96  14.87%  $12.65  $10.66 
Net Asset Value  $13.97  $12.64  10.52%  $13.97  $12.55 

The following charts show the portfolio composition of the Fund’s long-term investments and credit quality allocations of the Fund’s
long-term investments excluding Common Stocks:

Portfolio Composition     
  4/30/10  10/31/09 
Corporate Bonds  51%  6% 
Preferred Securities  38  84 
U.S. Treasury Obligations  8   
Taxable Municipal Bonds  2   
Common Stocks  1  10 

     Credit Quality Allocations4     
  4/30/10  10/31/09 
AA/Aa  7%  4% 
A  31  33 
BBB/Baa  40  53 
BB/Ba  11  6 
B  2  4 
CCC/Caa  1   
Not Rated  8   
 4 Using the higher of S&P’s or Moody’s ratings.   

SEMI-ANNUAL REPORT

APRIL 30, 2010

7


Fund Summary as of April 30, 2010

BlackRock Floating Rate Income Trust

Investment Objective

BlackRock Floating Rate Income Trust (BGT) seeks to provide a high level of current income and to seek the preservation of capital. The Fund seeks to
achieve its objective by investing in a global portfolio of primarily floating and variable rate securities.

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

Performance

For the six months ended April 30, 2010, the Fund returned 22.72% based on market price and 10.90% based on net asset value (NAV). For the same
period, the closed-end Lipper Loan Participation Funds category posted an average return of 29.63% on a market price basis and 11.27% on a NAV basis. All
returns reflect reinvestment of dividends. (The performance of the Lipper category does not necessarily correlate to that of the Fund, as the Lipper group com-
prises both closed-end funds that employ leverage and continuously offered closed-end funds that do not. For this reporting period, those Lipper peers that do
not employ leverage were at a disadvantage given the market rally.) The Fund moved from a discount to NAV to a premium by period-end, which accounts for
the difference between performance based on price and performance based on NAV. The Fund's use of leverage produced positive absolute performance but
accounted for the Fund’s underperformance versus its Lipper category, as many of the funds in the category employ higher levels of leverage. Conversely, the
Fund’s allocation to high yield bonds outperformed bank loans during the period and added to performance. Relative to its Lipper peers, the Fund continues to
focus on higher-quality sectors and structures, which underperformed in the market rally that favored riskier assets.

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

Fund Information     
  Symbol on NYSE  BGT 
  Initial Offering Date  August 30, 2004 
  Yield on Closing Market Price as of April 30, 2010 ($15.00)1  5.40% 
  Current Monthly Distribution per Common Share2  $0.0675 
  Current Annualized Distribution per Common Share2  $0.8100 
  Leverage as of April 30, 2010  22% 

1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.
2 The monthly distribution per Common Share, declared on June 1, 2010, was increased to $0.07. The yield on the Closing Market Price, Current
Monthly Distribution per Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The distri-
bution rate is not constant and is subject to further change in the future. A portion of the distribution may be deemed a tax return of capital or net
realized gain.
3 Represents loan outstanding and Preferred Shares as a percentage of total managed assets, which is the total assets of the Fund (including any
assets attributable to any borrowings and Preferred Shares) 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 9.

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

  4/30/10  10/31/09  Change  High  Low 
Market Price  $15.00  $12.58  19.24%  $15.93  $12.55 
Net Asset Value  $14.32  $13.29  7.75%  $14.32  $13.20 

The following charts show the portfolio composition of the Fund’s long-term investments and credit quality allocations of the
Fund’s long-term investments excluding Common Stocks and Floating Rate Loan Interests:

Portfolio Composition     
  4/30/10  10/31/09 
Floating Rate Loan Interests  76%  76% 
Corporate Bonds  17  20 
Foreign Government Obligations  6  3 
Other Interests  1  1 

     Credit Quality Allocations4     
  4/30/10  10/31/09 
AAA/Aaa    16% 
A  5%  4 
BBB/Baa  23  27 
BB/Ba  28  17 
B  27  22 
CCC/Caa  2  6 
C    5 
D    1 
Not Rated  155  2 

4 Using the higher of S&P’s or Moody’s ratings.
5 The investment advisor has deemed certain of these non-rated securi-
ties to be of investment grade quality. As of April 30, 2010, the mar-
ket value of these securities was $6,503,550 representing 6% of the
Fund’s long-term investments.

8 SEMI-ANNUAL REPORT

APRIL 30, 2010


The Benefits and Risks of Leveraging

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

The Funds may utilize leverage through borrowings, including by entering
into reverse repurchase agreements, or through the issuance of Preferred
Shares. In general, the concept of leveraging is based on the premise that
the cost of assets to be obtained from leverage will be based on short-
term interest rates, which normally will be lower than the income earned
by each Fund on its longer-term portfolio investments. To the extent that
the total assets of each Fund (including the assets obtained from leverage)
are invested in higher-yielding portfolio investments, each Fund’s Common
Shareholders will benefit from the incremental net income.

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

To illustrate these concepts, assume a Fund’s Common Shares capitalization
is $100 million and it borrows and/or issues Preferred Shares for an addi-
tional $50 million, creating a total value of $150 million available for invest-
ment in long-term securities. If prevailing short-term interest rates are 3%
and long-term interest rates are 6%, the yield curve has a strongly positive
slope. In this case, the Fund pays interest expense and/or dividends on
the $50 million of Preferred Shares based on the lower short-term interest
rates. At the same time, the securities purchased by the Fund with assets
received from the borrowings and/or issuance of Preferred Shares can earn
income based on long-term interest rates. In this case, the interest expense
and/or dividends paid to Preferred Shareholders are significantly lower
than the income earned on the Fund’s long-term investments, and there-
fore the Common Shareholders are the beneficiaries of the incremental
net income.

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

Furthermore, the value of a 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 redemption
value of the Funds’ borrowings and/or Preferred Shares does not fluctuate
in relation to interest rates. As a result, changes in interest rates can influ-
ence the Funds’ NAV positively or negatively in addition to the impact on
Fund performance from leverage from borrowings.

The use of leverage may enhance opportunities for increased income to the
Funds and Common Shareholders, but as described above, it also creates
risks as short- or long-term interest rates fluctuate. Leverage also will gener-
ally cause greater changes to each Fund’s NAV, market price and dividend
rates than a comparable portfolio without leverage. If the income derived
from securities purchased with assets received from leverage exceeds the
cost of leverage, each Fund’s net income will be greater than if leverage had
not been used. Conversely, if the income from the securities purchased is
not sufficient to cover the cost of leverage, each Fund’s net income will be
less than if leverage had not been used, and therefore the amount available
for distribution to shareholders will be reduced. Each 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 lever-
age or as required by the terms of leverage instruments which may cause
a Fund to incur losses. The use of leverage may limit each Fund’s ability to
invest in certain types of securities or use certain types of hedging strate-
gies, such as in the case of certain restrictions imposed by ratings agencies
that rate Preferred Shares issued by each Fund. Each Fund will incur
expenses in connection with the use of leverage, all of which are borne by
the Common Shareholders and may reduce income on the Common Shares.

Under the Investment Company Act of 1940, BGT is permitted to borrow
through a credit facility up to 33 1 / 3 % of its total managed assets and the
Funds are permitted to issue Preferred Shares in an amount of up to 50%
of their total managed assets at the time of issuance. Under normal cir-
cumstances, each Fund anticipates that the total economic leverage from
Preferred Shares, reverse repurchase agreements and credit facility borrow-
ings will not exceed 50% of its total managed assets at the time such lever-
age is incurred. As of April 30, 2010, the Funds had economic leverage from
Preferred Shares, reverse repurchase agreements and/or credit facility bor-
rowings as a percentage of their total managed assets as follows:

  Percent of 
  Leverage 
PSW  29% 
PSY  28% 
BPP  24% 
BTZ  29% 
BGT  22% 

SEMI-ANNUAL REPORT

APRIL 30, 2010

9


Derivative Financial Instruments

The Funds may invest in various derivative instruments, including financial
futures contracts, swaps, foreign currency exchange contracts and options,
as specified in Note 2 of the Notes to Financial Statements, which consti-
tute forms of economic leverage. Such instruments are used to obtain
exposure to a market without owning or taking physical custody of securi-
ties or to hedge market, equity, credit, interest rate and/or foreign currency
exchange rate risks. Such derivative instruments involve risks, including the
imperfect correlation between the value of a derivative instrument and the
underlying asset, possible default of the counterparty to the transaction
and illiquidity of the derivative instrument. Each Fund’s ability to success-

fully use a derivative instrument depends on the investment advisor’s
ability to accurately predict pertinent market movements, which cannot be
assured. The use of derivative instruments may result in losses greater than
if they had not been used, may require the Funds to sell or purchase port-
folio securities at inopportune times or at distressed values, may limit the
amount of appreciation the Funds can realize on an investment or may
cause the Funds to hold a security that they might otherwise sell. The
Funds’ investments in these instruments are discussed in detail in the
Notes to Financial Statements.

10 SEMI-ANNUAL REPORT

APRIL 30, 2010


Schedule of Investments April 30, 2010 (Unaudited)

BlackRock Credit Allocation Income Trust I, Inc. (PSW)

(Percentages shown are based on Net Assets)

  Par   
Corporate Bonds  (000)           Value 
Aerospace & Defense — 3.7%     
BE Aerospace, Inc., 8.50%, 7/01/18  $ 560  $ 599,200 
Bombardier, Inc., 7.75%, 3/15/20 (a)  720  765,000 
United Technologies Corp., 5.70%, 4/15/40  2,500  2,610,327 
    3,974,527 
Airlines — 0.4%     
Continental Airlines Pass-Through Certificates,     
Series 2009-2, Class B, 9.25%, 5/10/17  375  401,250 
Auto Components — 0.6%     
Icahn Enterprises LP (a):     
     7.75%, 1/15/16  200  194,500 
     8.00%, 1/15/18  500  486,250 
    680,750 
Beverages — 0.4%     
Constellation Brands, Inc., 7.25%, 5/15/17  460  469,200 
Capital Markets — 1.7%     
Ameriprise Financial, Inc., 5.30%, 3/15/20  750  780,626 
Morgan Stanley, 7.30%, 5/13/19  900  988,270 
    1,768,896 
Chemicals — 0.2%     
CF Industries, Inc., 7.13%, 5/01/20  250  263,125 
Commercial Services & Supplies — 2.6%     
Browning-Ferris Industries, Inc., 7.40%, 9/15/35  865  987,136 
Corrections Corp. of America, 7.75%, 6/01/17  775  821,500 
Waste Management, Inc., 6.13%, 11/30/39  900  937,159 
    2,745,795 
Communications Equipment — 0.7%     
Brocade Communications Systems, Inc.,     
6.88%, 1/15/20 (a)  700  722,750 
Consumer Finance — 5.2%     
American Express Co., 8.13%, 5/20/19  925  1,132,932 
Capital One Bank USA NA, 8.80%, 7/15/19  775  950,341 
Inmarsat Finance Plc, 7.38%, 12/01/17 (a)  520  542,100 
SLM Corp., 4.00%, 7/25/14 (b)  3,200  2,979,168 
    5,604,541 
Containers & Packaging — 1.0%     
Ball Corp.:     
     7.13%, 9/01/16  400  425,000 
     6.75%, 9/15/20  405  414,113 
Bemis Co., Inc., 6.80%, 8/01/19  200  227,786 
    1,066,899 
Diversified Financial Services — 2.5%     
Bank of America Corp., 7.63%, 6/01/19  1,575  1,797,891 
GMAC, Inc., 8.30%, 2/12/15 (a)  800  835,000 
    2,632,891 
Diversified Telecommunication Services — 3.7%     
AT&T, Inc., 6.30%, 1/15/38  1,000  1,038,919 
New Communications Holdings, Inc.,     
8.50%, 4/15/20 (a)  700  721,000 
Qwest Corp., 8.38%, 5/01/16  390  444,600 
Verizon Communications, Inc., 7.35%, 4/01/39  925  1,098,394 
Windstream Corp.:     
     8.63%, 8/01/16  250  255,938 
     7.88%, 11/01/17  400  397,000 
    3,955,851 

  Par   
Corporate Bonds  (000)           Value 
Electric Utilities — 1.7%     
Progress Energy Inc., 7.00%, 10/30/31  $ 1,000  $ 1,142,424 
Southern California Edison Co., 5.50%, 3/15/40  650  661,578 
    1,804,002 
Food & Staples Retailing — 3.9%     
CVS Caremark Corp., 6.30%, 6/01/62 (b)  1,500  1,447,500 
Wal-Mart Stores, Inc., 6.20%, 4/15/38  2,500  2,752,035 
    4,199,535 
Food Products — 0.8%     
Kraft Foods, Inc.:     
     6.50%, 8/11/17  385  436,215 
     6.13%, 8/23/18  390  430,336 
    866,551 
Gas Utilities — 0.9%     
Nisource Finance Corp., 6.13%, 3/01/22  900  955,581 
Health Care Equipment & Supplies — 1.7%     
Medtronic, Inc., 5.55%, 3/15/40  1,765  1,822,583 
Health Care Providers & Services — 2.4%     
Aetna, Inc., 6.75%, 12/15/37  800  881,674 
HCA, Inc./DE, 8.50%, 4/15/19 (a)  400  439,500 
Tenet Healthcare Corp., 10.00%, 5/01/18 (a)  350  398,563 
UnitedHealth Group, Inc., 6.88%, 2/15/38  800  878,953 
    2,598,690 
Insurance — 4.9%     
Lincoln National Corp.:     
     8.75%, 7/01/19  400  498,973 
     6.25%, 2/15/20  800  855,095 
Northwestern Mutual Life Insurance,     
6.06%, 3/30/40 (a)  900  929,587 
Principal Financial Group, Inc., 8.88%, 5/15/19  225  277,550 
Prudential Financial, Inc., 6.63%, 12/01/37  800  881,974 
QBE Insurance Group Ltd., 9.75%, 3/14/14 (a)  1,484  1,807,461 
    5,250,640 
Life Sciences Tools & Services — 1.8%     
Bio-Rad Laboratories, Inc., 8.00%, 9/15/16  865  923,387 
Life Technologies Corp., 6.00%, 3/01/20  1,000  1,052,160 
    1,975,547 
Machinery — 1.5%     
Ingersoll-Rand Global Holding Co., Ltd.,     
9.50%, 4/15/14  800  980,878 
Navistar International Corp., 8.25%, 11/01/21  600  633,000 
    1,613,878 
Media — 19.3%     
CSC Holdings, Inc., 8.63%, 2/15/19 (a)  275  300,438 
CSC Holdings LLC, 8.50%, 6/15/15 (a)  400  426,000 
Comcast Corp., 6.30%, 11/15/17  800  886,715 
Cox Communications, Inc., 8.38%, 3/01/39 (a)  10,800  14,023,940 
DISH DBS Corp.:     
     7.00%, 10/01/13  450  465,750 
     7.88%, 9/01/19  250  262,500 
Intelsat Corp., 9.25%, 6/15/16  350  369,250 
News America, Inc., 6.15%, 3/01/37  950  972,633 
Time Warner Cable, Inc., 6.75%, 6/15/39  925  999,820 
Time Warner, Inc., 7.70%, 5/01/32  950  1,114,834 
UPC Germany GmbH, 8.13%, 12/01/17 (a)  240  244,800 
Virgin Media Secured Finance Plc, 6.50%, 1/15/18 (a)  600  603,000 
    20,669,680 

     Portfolio Abbreviations         
To simplify the listings of portfolio holdings in the Schedules of  EUR  Euro  GO  General Obligation Bonds 
Investments, the names of many of the securities have been  FKA  Formerly Known As  RB  Revenue Bonds 
abbreviated according to the following list:  GBP  British Pound  USD  US Dollar 
See Notes to Financial Statements.         

SEMI-ANNUAL REPORT

APRIL 30, 2010

11


Schedule of Investments (continued)

BlackRock Credit Allocation Income Trust I, Inc. (PSW)

(Percentages shown are based on Net Assets)

  Par   
Corporate Bonds  (000)           Value 
Metals & Mining — 1.2%     
Phelps Dodge Corp., 7.13%, 11/01/27  $ 700  $ 724,585 
Teck Resources Ltd., 10.75%, 5/15/19  400  498,000 
United States Steel Corp., 7.38%, 4/01/20  75  77,062 
    1,299,647 
Multi-Utilities — 1.5%     
CenterPoint Energy, Inc.:     
     5.95%, 2/01/17  750  789,789 
     6.50%, 5/01/18  775  844,879 
    1,634,668 
Multiline Retail — 0.8%     
Dollar General Corp., 10.63%, 7/15/15  750  833,438 
Oil, Gas & Consumable Fuels — 3.7%     
Enbridge Energy Partners LP, 9.88%, 3/01/19  475  628,835 
Enterprise Products Operating LLC, 6.65%, 4/15/18  1,000  1,139,448 
Kinder Morgan Energy Partners LP, 6.85%, 2/15/20  1,000  1,151,640 
ONEOK Partners LP, 8.63%, 3/01/19  800  1,004,031 
    3,923,954 
Paper & Forest Products — 2.5%     
Georgia-Pacific LLC, 8.25%, 5/01/16 (a)  785  859,575 
International Paper Co.:     
     7.50%, 8/15/21  775  910,322 
     7.30%, 11/15/39  800  886,953 
    2,656,850 
Pharmaceuticals — 11.5%     
Abbott Laboratories:     
     6.15%, 11/30/37  235  262,297 
     6.00%, 4/01/39  1,177  1,296,250 
Bristol-Myers Squibb Co.:     
     5.88%, 11/15/36  2,014  2,127,447 
     6.13%, 5/01/38  588  641,962 
Eli Lilly & Co., 5.95%, 11/15/37  588  639,820 
GlaxoSmithKline Capital, Inc., 6.38%, 5/15/38  1,690  1,913,246 
Merck & Co., Inc., 6.50%, 12/01/33  475  549,138 
Pfizer, Inc., 7.20%, 3/15/39  2,500  3,102,572 
Schering-Plough Corp., 6.55%, 9/15/37  1,504  1,754,663 
    12,287,395 
Real Estate Investment Trusts (REITs) — 3.1%     
AvalonBay Communities, Inc.:     
     5.70%, 3/15/17  775  830,277 
     6.10%, 3/15/20  800  866,981 
ERP Operating LP:     
     5.38%, 8/01/16  775  817,385 
     5.75%, 6/15/17  800  857,885 
    3,372,528 
Semiconductors & Semiconductor Equipment — 1.0%     
KLA-Tencor Corp., 6.90%, 5/01/18  461  509,796 
National Semiconductor Corp., 6.60%, 6/15/17  539  593,609 
    1,103,405 
Specialty Retail — 1.0%     
AutoNation, Inc., 6.75%, 4/15/18  445  446,669 
AutoZone, Inc., 7.13%, 8/01/18  300  346,753 
Ltd. Brands, Inc., 7.00%, 5/01/20 (c)  230  234,600 
    1,028,022 
Tobacco — 1.8%     
Altria Group, Inc.:     
     9.70%, 11/10/18  800  1,006,073 
     9.25%, 8/06/19  775  957,343 
    1,963,416 

  Par   
Corporate Bonds  (000)           Value 
Wireless Telecommunication Services — 4.0%     
Cricket Communications, Inc., 7.75%, 5/15/16  $ 155  $ 160,813 
Nextel Communications, Inc., Series E,     
 6.88%, 10/31/13  535  525,637 
SBA Tower Trust, 5.10%, 4/15/42 (a)  3,500  3,605,019 
    4,291,469 
Total Corporate Bonds — 93.7%    100,437,954 
Preferred Securities     
Capital Trusts     
Building Products — 0.3%     
C8 Capital SPV Ltd., 6.64% (a)(b)(d)  490  357,426 
Capital Markets — 4.6%     
Ameriprise Financial, Inc., 7.52%, 6/01/66 (b)  500  505,000 
Lehman Brothers Holdings Capital Trust V,     
 2.09% (d)(e)(f)  1,600  160 
State Street Capital Trust III, 8.25% (b)(d)  725  744,423 
State Street Capital Trust IV, 1.26%, 6/01/67 (b)  4,740  3,653,663 
    4,903,246 
Commercial Banks — 3.2%     
Bank of Ireland Capital Funding II, LP,     
 5.57% (a)(b)(d)(e)(f)  429  304,590 
Bank of Ireland Capital Funding III, LP,     
 6.11% (a)(b)(d)(e)(f)  740  525,400 
Barclays Bank Plc, 5.93% (a)(b)(d)  500  452,500 
First Empire Capital Trust II, 8.28%, 6/01/27  910  844,943 
National City Preferred Capital Trust I, 12.00% (b)(d)  300  347,226 
SunTrust Preferred Capital I, 5.85% (b)(d)  135  105,638 
USB Capital XIII Trust, 6.63%, 12/15/39  825  867,578 
    3,447,875 
Diversified Financial Services — 3.0%     
Farm Credit Bank of Texas, Series 1, 7.56% (b)(d)  1,000  853,270 
JPMorgan Chase Capital XXIII, 1.25%, 5/15/77 (b)(g)  3,085  2,395,900 
    3,249,170 
Electric Utilities — 0.4%     
PPL Capital Funding, 6.70%, 3/30/67 (b)  500  457,500 
Insurance — 10.6%     
AXA SA, 6.38% (a)(b)(d)  1,000  890,000 
Ace Capital Trust II, 9.70%, 4/01/30  500  606,907 
The Allstate Corp., 6.50%, 5/15/67 (b)  500  480,000 
Chubb Corp., 6.38%, 3/29/67 (b)(h)  500  500,625 
Farmers Exchange Capital, 7.05%, 7/15/28 (a)  500  471,639 
Genworth Financial, Inc., 6.15%, 11/15/66 (b)  750  600,000 
Great West Life & Annuity Insurance Co.,     
 7.15%, 5/16/46 (a)(b)  500  480,000 
Liberty Mutual Group, Inc., 10.75%, 6/15/88 (a)(b)  500  582,500 
Lincoln National Corp., 7.00%, 5/17/66 (b)  500  462,500 
MetLife, Inc., 6.40%, 12/15/66  500  472,500 
Nationwide Life Global Funding I, 6.75%, 5/15/67  500  427,500 
Progressive Corp., 6.70%, 6/15/67 (b)  500  495,481 
Reinsurance Group of America, 6.75%, 12/15/65 (b)  700  662,754 
The Travelers Cos., Inc., 6.25%, 3/15/67 (b)  500  491,739 
ZFS Finance (USA) (a)(b):     
Trust II, 6.45%, 12/15/65  1,800  1,737,000 
Trust IV, 5.88%, 5/09/32  146  139,485 
Trust V, 6.50%, 5/09/67  1,097  1,050,377 
Zenith National Insurance Capital Trust I,     
 8.55%, 8/01/28 (a)  1,000  865,000 
    11,416,007 

See Notes to Financial Statements.

12 SEMI-ANNUAL REPORT

APRIL 30, 2010


Schedule of Investments (continued)

BlackRock Credit Allocation Income Trust I, Inc. (PSW)

(Percentages shown are based on Net Assets)

  Par   
Capital Trusts  (000)  Value 
Multi-Utilities — 1.4%     
Dominion Resources Capital Trust I,     
 7.83%, 12/01/27 (g)  $ 500  $ 516,467 
Dominion Resources, Inc., 7.50%, 6/30/66 (b)  500  507,500 
Puget Sound Energy, Inc., Series A,     
 6.97%, 6/01/67 (b)  475  451,473 
    1,475,440 
Oil, Gas & Consumable Fuels — 1.3%     
Enterprise Products Operating LLC,     
 8.38%, 8/01/66 (b)  825  858,000 
TransCanada PipeLines Ltd., 6.35%, 5/15/67 (b)  500  480,821 
    1,338,821 
Total Capital Trusts — 24.8%    26,645,485 
Preferred Stocks  Shares   
Commercial Banks — 1.8%     
First Tennessee Bank NA, 3.75% (a)(b)  1,176  752,640 
Provident Financial Group, Inc., 7.75%  42,000  1,044,750 
Royal Bank of Scotland Group Plc, Series M, 6.40%  5,000  66,700 
    1,864,090 
Diversified Financial Services — 1.0%     
Falcons Funding Trust I, 8.88% (a)(b)  1,100  1,096,906 
Electric Utilities — 3.3%     
Alabama Power Co., 6.50%  25,000  649,750 
Entergy Arkansas, Inc., 6.45%  28,800  683,102 
Entergy Louisiana LLC, 6.95%  22,650  2,216,047 
    3,548,899 
Insurance — 3.6%     
Aspen Insurance Holdings Ltd., 7.40% (b)  55,000  1,276,000 
Axis Capital Holdings Ltd.:     
     Series A, 7.25%  35,000  853,650 
     Series B, 7.50% (b)  9,000  850,500 
Endurance Specialty Holdings Ltd., Series A, 7.75%  35,200  854,304 
    3,834,454 
Real Estate Investment Trusts (REITs) — 2.7%     
BRE Properties, Inc., Series D, 6.75%  10,000  228,200 
iStar Financial, Inc., Series I, 7.50%  59,500  952,000 
Public Storage:     
     Series F, 6.45%  10,000  235,400 
     Series I, 7.25%  40,000  1,016,400 
     Series M, 6.63%  20,000  491,600 
    2,923,600 
Wireless Telecommunication Services — 2.8%     
Centaur Funding Corp., 9.08%  2,720  2,992,850 
Total Preferred Stocks — 15.2%    16,260,799 
Trust Preferreds     
Consumer Finance — 1.4%     
Capital One Capital II, 7.50%, 6/15/66  63,034  1,514,729 
Insurance — 2.8%     
ABN AMRO North America Capital Funding Trust II,     
 0.31% (a)(b)(d)  80,000  1,586,536 
Lincoln National Capital VI, Series F, 6.75%, 9/11/52  58,966  1,396,139 
    2,982,675 
Total Trust Preferreds — 4.2%    4,497,404 
Total Preferred Securities — 44.2%    47,403,688 

Par 
Taxable Municipal Bonds  (000)  Value 
Metropolitan Transportation Authority, RB,     
Build America Bonds, 6.55%, 11/15/31  $ 800  $ 843,440 
State of California, GO, Build America Bonds,     
 7.35%, 11/01/39  400  432,152 
State of Illinois, GO, Pension, 5.10%, 6/01/33  775  668,461 
Total Taxable Municipal Bonds — 1.8%    1,944,053 
Total Long-Term Investments     
(Cost — $149,969,746) — 139.7%    149,785,695 
Short-Term Securities  Shares   
BlackRock Liquidity Funds, TempFund,     
 Institutional Class, 0.13% (i)(j)  124,379  124,379 
Total Short-Term Securities     
(Cost — $124,379) — 0.1%    124,379 
Total Investments (Cost — $150,094,125*) — 139.8%    149,910,074 
Liabilities in Excess of Other Assets — (2.2)%    (2,398,252) 
Preferred Shares, at Redemption Value — (37.6)%    (40,259,152) 
Net Assets Applicable to Common Shares — 100.0%    $107,252,670 

* The cost and unrealized appreciation (depreciation) of investments as of April 30,
2010, as computed for federal income tax purposes, were as follows:

Aggregate cost  $ 150,119,907 
Gross unrealized appreciation  $ 5,240,140 
Gross unrealized depreciation  (5,449,973) 
Net unrealized depreciation  $ (209,833) 

(a) Security exempt from registration under Rule 144A of the Securities Act of 1933.
These securities may be resold in transactions exempt from registration to qualified
institutional investors.
(b) Variable rate security. Rate shown is as of report date.
(c) When-issued security. Unsettled when-issued transactions were as follows:

    Unrealized 
Counterparty  Value  Appreciation 
Bank of America, NA  $ 234,600  $ 4,600 

(d) Security is perpetual in nature and has no stated maturity date.
(e) Issuer filed for bankruptcy and/or is in default of interest payments.
(f) Non-income producing security.
(g) All or a portion of security has been pledged as collateral in connection with open
reverse repurchase agreements.
(h) All or a portion of security has been pledged as collateral in connection with swaps.
(i) Investments in companies considered to be an affiliate of the Fund, for purposes of
Section 2(a)(3) of the Investment Company Act of 1940, were as follows:

  Shares    Shares   
  Held at    Held at   
  October 31,  Net  April 30,   
Affiliate  2009  Activity  2010  Income 
BlackRock Liquidity         
   Funds, TempFund,         
   Institutional Class  33,286,296  (33,161,917)  124,379  $25,184 

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

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

APRIL 30, 2010

13


Schedule of Investments (concluded)

BlackRock Credit Allocation Income Trust I, Inc. (PSW)

  Reverse repurchase agreements outstanding as of April 30, 2010 were as follows: 
    Interest  Trade  Maturity     Net Closing  Face 
  Counterparty  Rate  Date  Date         Amount  Amount 
  Credit Suisse             
  Securities  0.38%  4/22/10  5/24/10     $2,663,833  $2,662,946 
  Financial futures contracts purchased as of April 30, 2010 were as follows: 
      Expiration                    Notional  Unrealized 
  Contracts  Issue  Date       Value  Appreciation 
  39  2-Year U.S.           
                               Treasury Bond  June 2010                    $8,458,211  $ 27,336 
  6  30-Year U.S.           
                                 Treasury Bond  June 2010                     $ 694,935  19,440 
  Total            $ 46,776 
  Credit default swaps on single-name issues — buy protection outstanding as of April 
  30, 2010 were as follows:           
    Pay               Notional   
    Fixed  Counter-      Amount  Unrealized 
  Issuer  Rate  party    Expiration  (000)  Depreciation 
  Nordstrom, Inc.                      5.20%    Deutsche  June       
      Bank AG  2014            $ 1,000  $ (175,918) 

Fair Value Measurements — Various inputs are used in determining the fair value of
investments, which are as follows:
Level 1 — price quotations in active markets/exchanges for identical assets
and liabilities
Level 2 — other observable inputs (including, but not limited to: quoted prices for
similar assets or liabilities in markets that are active, quoted prices for identical
or similar assets or liabilities in markets that are not active, inputs other than
quoted prices that are observable for the assets or liabilities (such as interest
rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs)
Level 3 — unobservable inputs based on the best information available in the
circumstances, to the extent observable inputs are not available (including the
Fund’s own assumptions used in determining the fair value of investments)
The inputs or methodologies used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities. For information
about the Fund’s policy regarding valuation of investments and other significant
accounting policies, please refer to Note 1 of the Notes to Financial Statements.
The following tables summarize the inputs used as of April 30, 2010 in determining
the fair valuation of the Fund’s investments:

    Investments in Securities   
Valuation Inputs  Level 1  Level 2  Level 3  Total 
Assets:           
Long-Term           
Investments:           
   Capital           
   Trusts      $ 26,645,485               $ 26,645,485 
   Corporate           
   Bonds      100,437,954               100,437,954 
   Preferred           
   Stocks  $ 6,624,004  9,636,795               16,260,799 
   Taxable           
   Municipal           
   Bonds      1,944,053               1,944,053 
   Trust           
   Preferreds    2,910,868  1,586,536               4,497,404 
Short-Term           
Securities    124,379                 124,379 
Total  $ 9,659,251  140,250,823               $149,910,074 

Other Financial Instruments1

Valuation Inputs  Level 1  Level 2  Level 3  Total 
Assets  $ 46,776                 $ 46,776 
Liabilities             — $  (175,918)                      (175,918) 
Total  $ 46,776 $  (175,918)               $ (129,142) 

1 Other financial instruments are financial futures contracts and swaps, which are
shown at the unrealized appreciation/depreciation on the instrument.

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

Investments in Securities

  Capital 
  Trusts 
Balance, as of October 31, 2009  $ 576,450 
Accrued discounts/premiums   
Net realized gain (loss)  (156,053) 
Net change in unrealized appreciation/depreciation2  332,190 
Net purchases (sales)  (752,587) 
Net transfers in/out   
Balance, as of April 30, 2010  $ — 

2 Included in the related net change in unrealized appreciation/depreciation on
the Statements of Operations. The change in unrealized appreciation/deprecia-
tion on securities still held at April 30, 2010 was $0.

See Notes to Financial Statements.

14 SEMI-ANNUAL REPORT

APRIL 30, 2010


Schedule of Investments April 30, 2010 (Unaudited)

BlackRock Credit Allocation Income Trust II, Inc. (PSY)

(Percentages shown are based on Net Assets)

  Par   
Corporate Bonds  (000)  Value 
Aerospace & Defense — 2.7%     
BE Aerospace, Inc., 8.50%, 7/01/18  $ 2,500  $ 2,675,000 
Bombardier, Inc., 7.75%, 3/15/20 (a)  3,205  3,405,312 
United Technologies Corp., 5.70%, 4/15/40  6,250  6,525,819 
    12,606,131 
Airlines — 0.4%     
Continental Airlines Pass-Through Certificates,     
Series 2009-2, Class B, 9.25%, 5/10/17  1,625  1,738,750 
Auto Components — 0.6%     
Icahn Enterprises LP (a):     
     7.75%, 1/15/16  880  855,800 
     8.00%, 1/15/18  2,000  1,945,000 
    2,800,800 
Beverages — 0.4%     
Constellation Brands, Inc., 7.25%, 5/15/17  1,970  2,009,400 
Capital Markets — 1.7%     
Ameriprise Financial, Inc., 5.30%, 3/15/20  3,250  3,382,714 
Morgan Stanley, 7.30%, 5/13/19  4,000  4,392,312 
    7,775,026 
Chemicals — 0.3%     
CF Industries, Inc., 7.13%, 5/01/20  1,125  1,184,063 
Commercial Services & Supplies — 2.6%     
Browning-Ferris Industries, Inc., 7.40%, 9/15/35  3,742  4,270,363 
Corrections Corp.of America, 7.75%, 6/01/17  3,375  3,577,500 
Waste Management, Inc., 6.13%, 11/30/39  4,000  4,165,152 
    12,013,015 
Communications Equipment — 0.7%     
Brocade Communications Systems, Inc.,     
6.88%, 1/15/20 (a)  2,965  3,061,363 
Consumer Finance — 5.2%     
American Express Co., 8.13%, 5/20/19  4,000  4,899,164 
Capital One Bank USA NA, 8.80%, 7/15/19  3,325  4,077,271 
Inmarsat Finance Plc, 7.38%, 12/01/17 (a)  2,135  2,225,738 
SLM Corp., 4.00%, 7/25/14 (b)  13,900  12,940,761 
    24,142,934 
Containers & Packaging — 0.8%     
Ball Corp.:     
     7.13%, 9/01/16  1,750  1,859,375 
     6.75%, 9/15/20  1,835  1,876,288 
    3,735,663 
Diversified Financial Services — 2.2%     
Bank of America Corp., 7.63%, 6/01/19  6,750  7,705,246 
GMAC, Inc., 8.30%, 2/12/15 (a)  2,500  2,609,375 
    10,314,621 
Diversified Telecommunication Services — 3.9%     
AT&T, Inc., 6.30%, 1/15/38  4,000  4,155,676 
New Communications Holdings, Inc.,     
8.50%, 4/15/20 (a)  3,100  3,193,000 
Qwest Corp., 8.38%, 5/01/16  2,795  3,186,300 
Verizon Communications, Inc., 7.35%, 4/01/39  4,025  4,779,498 
Windstream Corp.:     
     8.63%, 8/01/16  1,000  1,023,750 
     7.88%, 11/01/17  1,900  1,885,750 
    18,223,974 
Electric Utilities — 1.6%     
Progress Energy Inc., 7.00%, 10/30/31  4,000  4,569,696 
Southern California Edison Co., 5.50%, 3/15/40  2,850  2,900,764 
    7,470,460 

  Par   
Corporate Bonds  (000)  Value 
Food & Staples Retailing — 3.4%     
CVS Caremark Corp., 6.30%, 6/01/62 (b)  $ 6,600  $ 6,369,000 
Wal-Mart Stores, Inc.:     
     5.25%, 9/01/35  2,500  2,461,938 
     6.20%, 4/15/38  6,250  6,880,087 
    15,711,025 
Food Products — 0.8%     
Kraft Foods, Inc.:     
     6.50%, 8/11/17  1,665  1,886,490 
     6.13%, 8/23/18  1,660  1,831,685 
    3,718,175 
Gas Utilities — 0.9%     
Nisource Finance Corp., 6.13%, 3/01/22  4,000  4,247,028 
Health Care Equipment & Supplies — 1.1%     
Medtronic, Inc.:     
     6.50%, 3/15/39  650  750,740 
     5.55%, 3/15/40  4,412  4,555,942 
    5,306,682 
Health Care Providers & Services — 3.0%     
Aetna, Inc., 6.75%, 12/15/37  3,400  3,747,116 
HCA, Inc., 7.25%, 9/15/20 (a)  2,550  2,667,938 
HCA, Inc./DE, 8.50%, 4/15/19 (a)  1,800  1,977,750 
Tenet Healthcare Corp., 10.00%, 5/01/18 (a)  1,530  1,742,288 
UnitedHealth Group, Inc., 6.88%, 2/15/38  3,400  3,735,549 
    13,870,641 
Insurance — 4.8%     
Lincoln National Corp.:     
     8.75%, 7/01/19  1,750  2,183,006 
     6.25%, 2/15/20  3,400  3,634,155 
Northwestern Mutual Life Insurance,     
 6.06%, 3/30/40 (a)  3,800  3,924,921 
Principal Financial Group, Inc., 8.88%, 5/15/19  980  1,208,884 
Prudential Financial, Inc., 6.63%, 12/01/37  3,400  3,748,391 
QBE Insurance Group Ltd., 9.75%, 3/14/14 (a)  5,967  7,267,603 
Structured Asset Repackaged Trust,     
 Series 2004-1, 0.78%, 4/21/11 (a)(b)  214  207,440 
    22,174,400 
Life Sciences Tools & Services — 1.8%     
Bio-Rad Laboratories, Inc., 8.00%, 9/15/16  3,825  4,083,187 
Life Technologies Corp., 6.00%, 3/01/20  4,200  4,419,072 
    8,502,259 
Machinery — 1.5%     
Ingersoll-Rand Global Holding Co., Ltd.,     
 9.50%, 4/15/14  3,400  4,168,730 
Navistar International Corp., 8.25%, 11/01/21  2,550  2,690,250 
    6,858,980 
Media — 7.2%     
CSC Holdings, Inc., 8.63%, 2/15/19 (a)  1,200  1,311,000 
CSC Holdings LLC, 8.50%, 6/15/15 (a)  1,500  1,597,500 
Comcast Corp., 6.30%, 11/15/17  3,400  3,768,540 
Cox Communications, Inc., 8.38%, 3/01/39 (a)  3,400  4,414,944 
DISH DBS Corp.:     
     7.00%, 10/01/13  1,750  1,811,250 
     7.88%, 9/01/19  1,100  1,155,000 
Intelsat Corp., 9.25%, 6/15/16  1,800  1,899,000 
News America, Inc., 6.15%, 3/01/37  4,200  4,300,061 
Time Warner Cable, Inc., 6.75%, 6/15/39  4,050  4,377,592 
Time Warner, Inc., 7.70%, 5/01/32  4,150  4,870,062 
UPC Germany GmbH, 8.13%, 12/01/17 (a)  1,030  1,050,600 
Virgin Media Secured Finance Plc,     
 6.50%, 1/15/18 (a)  2,675  2,688,375 
    33,243,924 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

APRIL 30, 2010

15


Schedule of Investments (continued)

BlackRock Credit Allocation Income Trust II, Inc. (PSY)

(Percentages shown are based on Net Assets)

    Par   
Corporate Bonds    (000)  Value 
Metals & Mining — 1.2%       
Phelps Dodge Corp., 7.13%, 11/01/27  $ 2,900  $ 3,001,851 
Teck Resources Ltd., 10.75%, 5/15/19    1,750  2,178,750 
United States Steel Corp., 7.38%, 4/01/20    375  385,312 
      5,565,913 
Multi-Utilities — 1.5%       
CenterPoint Energy, Inc.:       
     5.95%, 2/01/17    3,150  3,317,114 
     6.50%, 5/01/18    3,350  3,652,056 
      6,969,170 
Multiline Retail — 0.8%       
Dollar General Corp., 10.63%, 7/15/15    3,275  3,639,344 
Oil, Gas & Consumable Fuels — 3.6%       
Enbridge Energy Partners LP, 9.88%, 3/01/19    2,100  2,780,114 
Enterprise Products Operating LLC, 6.65%, 4/15/18  4,200  4,785,682 
Kinder Morgan Energy Partners LP, 6.85%, 2/15/20  4,200  4,836,888 
ONEOK Partners LP, 8.63%, 3/01/19    3,400  4,267,129 
      16,669,813 
Paper & Forest Products — 2.5%       
Georgia-Pacific LLC, 8.25%, 5/01/16 (a)    3,400  3,723,000 
International Paper Co.:       
     7.50%, 8/15/21    3,325  3,905,575 
     7.30%, 11/15/39    3,400  3,769,549 
      11,398,124 
Pharmaceuticals — 8.5%       
Abbott Laboratories:       
     6.15%, 11/30/37    588  656,301 
     6.00%, 4/01/39    5,891  6,487,858 
Bristol-Myers Squibb Co.:       
     5.88%, 11/15/36    5,000  5,281,645 
     6.13%, 5/01/38    1,471  1,605,997 
Eli Lilly & Co., 5.95%, 11/15/37    1,471  1,600,638 
GlaxoSmithKline Capital, Inc., 6.38%, 5/15/38    7,250  8,207,711 
Merck & Co., Inc., 6.50%, 12/01/33    2,070  2,393,088 
Pfizer, Inc., 7.20%, 3/15/39    6,250  7,756,431 
Schering-Plough Corp., 6.55%, 9/15/37    4,572  5,333,988 
      39,323,657 
Real Estate Investment Trusts (REITs) — 3.1%       
AvalonBay Communities, Inc.:       
     5.70%, 3/15/17    3,350  3,588,939 
     6.10%, 3/15/20    3,400  3,684,668 
ERP Operating LP:       
     5.38%, 8/01/16    3,350  3,533,215 
     5.75%, 6/15/17    3,405  3,651,372 
      14,458,194 
Semiconductors & Semiconductor Equipment — 1.0%     
KLA-Tencor Corp., 6.90%, 5/01/18    1,928  2,132,073 
National Semiconductor Corp., 6.60%, 6/15/17    2,334  2,570,472 
      4,702,545 
Specialty Retail — 1.0%       
AutoNation, Inc., 6.75%, 4/15/18    1,965  1,972,369 
AutoZone, Inc., 7.13%, 8/01/18    1,350  1,560,389 
Ltd. Brands, Inc., 7.00%, 5/01/20 (c)    980  999,600 
      4,532,358 
Tobacco — 1.8%       
Altria Group, Inc.:       
     9.70%, 11/10/18    3,400  4,275,809 
     9.25%, 8/06/19    3,350  4,138,195 
      8,414,004 

    Par   
Corporate Bonds    (000)  Value 
Wireless Telecommunication Services — 4.0%       
Cricket Communications, Inc., 7.75%, 5/15/16  $ 670  $ 695,125 
Nextel Communications, Inc., Series E,       
 6.88%, 10/31/13    2,340  2,299,050 
SBA Tower Trust, 5.10%, 4/15/42 (a)    15,225  15,681,834 
      18,676,009 
Total Corporate Bonds — 76.6%      355,058,445 
Preferred Securities       
Capital Trusts       
Building Products — 0.3%       
C8 Capital SPV Ltd., 6.64% (a)(b)(d)    1,960  1,429,702 
Capital Markets — 4.2%       
Ameriprise Financial, Inc., 7.52%, 6/01/66 (b)    2,500  2,525,000 
Lehman Brothers Holdings Capital Trust V,       
 2.09% (d)(e)(f)    6,400  640 
State Street Capital Trust III, 8.25% (b)(d)    2,920  2,998,227 
State Street Capital Trust IV, 1.26%, 6/01/67 (b)  18,235  14,055,811 
      19,579,678 
Commercial Banks — 7.7%       
Bank of Ireland Capital Funding II, LP,       
 5.57% (a)(b)(d)(e)(f)    1,715  1,217,650 
Bank of Ireland Capital Funding III, LP,       
 6.11% (a)(b)(d)(e)(f)    2,951  2,095,210 
Bank One Capital III, 8.75%, 9/01/30    2,000  2,393,608 
Barclays Bank Plc, 5.93% (a)(b)(d)    2,500  2,262,500 
First Empire Capital Trust II, 8.28%, 6/01/27    3,630  3,370,488 
HSBC Capital Funding LP/Jersey Channel Islands,     
 10.18% (a)(b)(d)(g)    4,835  6,183,965 
Lloyds Banking Group Plc, 6.66% (a)(b)(d)    5,000  3,300,000 
National City Preferred Capital Trust I, 12.00% (b)(d)  1,100  1,273,162 
NationsBank Capital Trust III, 0.83%, 1/15/27 (b)  13,470  9,798,172 
SunTrust Preferred Capital I, 5.85% (b)(d)    307  240,227 
USB Capital XIII Trust, 6.63%, 12/15/39    3,500  3,680,635 
      35,815,617 
Diversified Financial Services — 1.7%       
Farm Credit Bank of Texas, Series 1, 7.56% (b)(d)  2,500  2,133,175 
JPMorgan Chase Capital XXIII, 1.25%, 5/15/77 (b)  7,500  5,824,718 
      7,957,893 
Electric Utilities — 0.6%       
PPL Capital Funding, 6.70%, 3/30/67 (b)    3,000  2,745,000 
Insurance — 13.5%       
AXA SA, 6.38% (a)(b)(d)    3,000  2,670,000 
Ace Capital Trust II, 9.70%, 4/01/30    5,000  6,069,070 
The Allstate Corp., 6.50%, 5/15/67 (b)    5,000  4,800,000 
Aon Corp., 8.21%, 1/01/27    2,500  2,723,765 
Chubb Corp., 6.38%, 3/29/67 (b)    2,000  2,002,500 
Farmers Exchange Capital, 7.05%, 7/15/28 (a)    2,500  2,358,193 
GE Global Insurance Holding Corp., 7.75%, 6/15/30  2,000  2,198,502 
Genworth Financial, Inc., 6.15%, 11/15/66 (b)    3,000  2,400,000 
Liberty Mutual Group, Inc., 10.75%, 6/15/88 (a)(b)  2,925  3,407,625 
Lincoln National Corp., 7.00%, 5/17/66 (b)    3,350  3,098,750 
MetLife, Inc., 6.40%, 12/15/66    6,825  6,449,625 
Nationwide Life Global Funding I, 6.75%, 5/15/67  7,000  5,985,000 
Principal Life Insurance Co., 8.00%, 3/01/44 (a)  2,500  2,611,485 
Progressive Corp., 6.70%, 6/15/67 (b)(g)    2,000  1,981,922 
Reinsurance Group of America, 6.75%, 12/15/65 (b)  3,000  2,840,376 
The Travelers Cos., Inc., 6.25%, 3/15/67 (b)    3,000  2,950,431 

See Notes to Financial Statements.

16 SEMI-ANNUAL REPORT

APRIL 30, 2010


Schedule of Investments (continued)

BlackRock Credit Allocation Income Trust II, Inc. (PSY)

(Percentages shown are based on Net Assets)

  Par   
Capital Trusts  (000)  Value 
Insurance (concluded)     
ZFS Finance (USA) (a)(b):     
     Trust IV, 5.88%, 5/09/32  $ 379  $ 362,089 
     Trust V, 6.50%, 5/09/67  4,312  4,128,740 
Zenith National Insurance Capital Trust I,     
 8.55%, 8/01/28 (a)  3,750  3,243,750 
    62,281,823 
Multi-Utilities — 1.4%     
Dominion Resources Capital Trust I,     
 7.83%, 12/01/27  2,500  2,582,335 
Dominion Resources, Inc., 7.50%, 6/30/66 (b)  3,900  3,958,500 
    6,540,835 
Oil, Gas & Consumable Fuels — 1.3%     
Enterprise Products Operating LLC,     
 8.38%, 8/01/66 (b)  2,000  2,080,000 
TransCanada PipeLines Ltd., 6.35%, 5/15/67 (b)  4,000  3,846,568 
    5,926,568 
Road & Rail — 0.8%     
BNSF Funding Trust I, 6.61%, 12/15/55 (b)  3,750  3,703,125 
Total Capital Trusts — 31.5%    145,980,241 
Preferred Stocks  Shares   
Capital Markets — 0.0%     
Deutsche Bank Contingent Capital Trust II, 6.55%  530  11,750 
Commercial Banks — 7.1%     
Barclays Bank Plc, 8.13% (h)  225,000  5,661,000 
First Tennessee Bank NA, 3.75% (a)(b)  4,650  2,976,000 
Provident Financial Group, Inc., 7.75%  166,800  4,149,150 
Royal Bank of Scotland Group Plc,     
 Series M, 6.40%  15,000  200,100 
SG Preferred Capital II, 6.30%  23,000  19,887,813 
    32,874,063 
Diversified Financial Services — 1.0%     
Falcons Funding Trust I, 8.88% (a)(b)  4,750  4,736,641 
Electric Utilities — 3.0%     
Alabama Power Co.:     
     5.83%  14,000  348,320 
     6.50%  145,000  3,768,550 
Entergy Arkansas, Inc., 6.45%  114,400  2,713,431 
Entergy Louisiana LLC, 6.95%  49,850  4,877,260 
Interstate Power & Light Co., Series B, 8.38%  80,000  2,338,400 
    14,045,961 
Insurance — 6.8%     
Aspen Insurance Holdings Ltd., 7.40% (b)  194,000  4,500,800 
Axis Capital Holdings Ltd.:     
     Series A, 7.25%  129,300  3,153,627 
     Series B, 7.50% (b)  36,000  3,402,000 
Endurance Specialty Holdings Ltd.,     
 Series A, 7.75%  139,200  3,378,384 
MetLife, Inc., Series B, 6.50%  237,606  5,757,193 
Prudential Plc, 6.50%  92,400  2,137,212 
Zurich RegCaPS Funding Trust II, 6.58% (a)(b)  9,800  9,077,250 
    31,406,466 
Real Estate Investment Trusts (REITs) — 2.4%     
BRE Properties, Inc., Series D, 6.75%  35,000  798,700 
Kimco Realty Corp., Series F, 6.65%  50,000  1,164,000 

Preferred Stocks    Shares  Value 
Real Estate Investment Trusts (REITs) (concluded)       
Public Storage:       
Series F, 6.45%    40,000  $ 941,600 
Series I, 7.25%    160,000  4,065,600 
Series M, 6.63%    71,900  1,767,302 
Regency Centers Corp., Series D, 7.25%    100,000  2,360,000 
      11,097,202 
Wireless Telecommunication Services — 0.6%       
Centaur Funding Corp., 9.08%    2,423  2,666,057 
Total Preferred Stocks — 20.9%      96,838,140 
Trust Preferreds       
Communications Equipment — 0.4%       
Corporate-Backed Trust Certificates, Motorola       
 Debenture Backed, Series 2002-14, 8.38%, 11/15/28  80,000  1,949,802 
Consumer Finance — 1.3%       
Capital One Capital II, 7.50%, 6/15/66    253,466  6,090,874 
Electric Utilities — 0.8%       
Georgia Power Co., Series O, 1.48%, 4/15/33    50,000  1,252,353 
HECO Capital Trust III, 6.50%, 3/18/34    50,000  1,264,993 
National Rural Utilities Cooperative Finance Corp.,       
 6.75%, 2/15/43    50,000  1,237,251 
      3,754,597 
Insurance — 4.2%       
ABN AMRO North America Capital Funding       
 Trust II, 0.31% (a)(b)(d)    440,000  8,726,578 
Lincoln National Capital VI, Series F,       
 6.75%, 9/11/52    131,034  3,102,494 
W.R. Berkley Capital Trust II, 6.75%, 7/26/45    295,000  7,264,742 
      19,093,814 
Total Trust Preferreds — 6.7%      30,889,087 
Total Preferred Securities — 59.1%      273,707,468 
    Par   
Taxable Municipal Bonds    (000)   
Metropolitan Transportation Authority, RB,       
 Build America Bonds, 6.55%, 11/15/31  $ 3,450  3,637,335 
State of California, GO, Build America Bonds,       
 7.35%, 11/01/39    1,725  1,863,655 
State of Illinois, GO, Pension, 5.10%, 6/01/33    3,475  2,997,292 
Total Taxable Municipal Bonds — 1.8%      8,498,282 
Total Long-Term Investments       
(Cost — $650,680,840) — 137.5%      637,264,195 
Short-Term Securities    Shares   
BlackRock Liquidity Funds, TempFund,       
 Institutional Class, 0.13% (i)(j)  1,817,048  1,817,048 
Total Short-Term Securities       
(Cost — $1,817,048) — 0.4%      1,817,048 
Total Investments (Cost — $652,497,888*) — 137.9%      639,081,243 
Liabilities in Excess of Other Assets — (1.4)%      (6,662,171) 
Preferred Shares, at Redemption Value — (36.5)%      (169,091,457) 
Net Assets Applicable to Common Shares — 100.0%      $ 463,327,615 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

APRIL 30, 2010

17


Schedule of Investments (continued)

BlackRock Credit Allocation Income Trust II, Inc. (PSY)

* The cost and unrealized appreciation (depreciation) of investments as of April 30,
2010, as computed for federal income tax purposes, were as follows:

Aggregate cost  $ 654,272,212 
Gross unrealized appreciation  $ 15,173,099 
Gross unrealized depreciation  (30,364,068) 
Net unrealized depreciation  $ (15,190,969) 

(a) Security exempt from registration under Rule 144A of the Securities Act of 1933.
These securities may be resold in transactions exempt from registration to qualified
institutional investors.
(b) Variable rate security. Rate shown is as of report date.
(c) When-issued security. Unsettled when-issued transactions were as follows:

    Unrealized 
Counterparty  Value  Appreciation 
Bank of America, NA  $ 999,600  $ 19,600 

(d) Security is perpetual in nature and has no stated maturity date.
(e) Issuer filed for bankruptcy and/or is in default of interest payments.
(f) Non-income producing security.
(g) All or a portion of security has been pledged as collateral in connection with open
reverse repurchase agreements.
(h) All or a portion of security has been pledged as collateral in connection with open
financial futures contracts.
(i) Investments in companies considered to be an affiliate of the Fund, for purposes of
Section 2(a)(3) of the Investment Company Act of 1940, were as follows:

        Shares    Shares   
        Held at    Held at   
      October 31,  Net     April 30,   
  Affiliate      2009  Activity  2010  Income 
  BlackRock Liquidity           
     Funds, TempFund,           
     Institutional Class  41,019,397     (39,202,349)      1,817,048  $87,691 
(j) Represents the current yield as of report date.     
  For Fund compliance purposes, the Fund's industry classifications refer to any one 
  or more of the industry sub-classifications used by one or more widely recognized 
  market indexes or rating group indexes, and/or as defined by Fund management. 
  This definition may not apply for purposes of this report, which may combine such 
  industry sub-classifications for reporting ease.     
  Reverse repurchase agreements outstanding as of April 30, 2010 were as follows: 
            Interest  Trade  Maturity  Net Closing  Face 
  Counterparty    Rate  Date  Date  Amount  Amount 
  Credit Suisse             
     Securities         0.38%  4/22/10  5/24/10  $ 7,709,771  $ 7,707,202 
  Financial futures contracts purchased as of April 30, 2010 were as follows: 
        Expiration  Notional  Unrealized 
  Contracts       Issue  Date  Amount  Appreciation 
  22  30-Year U.S.         
    Treasury Bond  June 2010  $2,548,095  $ 71,280 

Credit default swaps on single-name issues — buy protection outstanding as of
April 30, 2010 were as follows:

  Pay      Notional   
  Fixed  Counter-    Amount  Unrealized 
Issuer  Rate  party  Expiration  (000)  Depreciation 
Nordstrom, Inc.  5.20%  Deutsche  June     
    Bank AG  2014  $ 2,000  $ (351,837) 

Fair Value Measurements — Various inputs are used in determining the fair value of
investments, which are as follows:
Level 1 — price quotations in active markets/exchanges for identical assets
and liabilities
Level 2 — other observable inputs (including, but not limited to: quoted prices for
similar assets or liabilities in markets that are active, quoted prices for identical
or similar assets or liabilities in markets that are not active, inputs other than
quoted prices that are observable for the assets or liabilities (such as interest
rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs)
Level 3 — unobservable inputs based on the best information available in the
circumstances, to the extent observable inputs are not available (including the
Fund's own assumptions used in determining the fair value of investments)
The inputs or methodologies used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities. For information
about the Fund's policy regarding valuation of investments and other significant
accounting policies, please refer to Note 1 of the Notes to Financial Statements.
The following tables summarize the inputs used as of April 30, 2010 in determining
the fair valuation of the Fund's investments:

Investments in Securities

Valuation Inputs  Level 1  Level 2  Level 3  Total 
Assets:           
Long-Term           
Investments:           
   Capital           
   Trusts      $145,980,241    $145,980,241 
   Corporate           
   Bonds      354,851,005 $  207,440  355,058,445 
   Preferred           
   Stocks  $42,352,538  54,485,602    96,838,140 
   Taxable           
   Municipal           
   Bonds      8,498,282    8,498,282 
   Trust           
   Preferreds  22,162,509  8,726,578    30,889,087 
Short-Term           
Securities    1,817,048      1,817,048 
Total  $66,332,095  $572,541,708 $  207,440  $639,081,243 
Other Financial Instruments1

Valuation Inputs  Level 1  Level 2  Level 3  Total 
Assets  $ 71,280      $ 71,280 
Liabilities      $ (351,837)    (351,837) 
Total  $ 71,280  $ (351,837)    $ (280,557) 

1 Other financial instruments are financial futures contracts and swaps, which are
shown at the unrealized appreciation/depreciation on the instrument.

See Notes to Financial Statements.

18 SEMI-ANNUAL REPORT

APRIL 30, 2010


Schedule of Investments (concluded)

BlackRock Credit Allocation Income Trust II, Inc. (PSY)

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

    Investments in Securities   
     Capital  Corporate  Preferred   
  Trusts  Bonds  Stocks  Total 
Balance, as of October 31, 2009  $ 2,271,150  $ 266,121  $ 13,800,000  $ 16,337,271 
Accrued discounts/premiums         
Net realized gain (loss)  (614,833)  27    (614,806) 
Net change in unrealized appreciation/depreciation1  1,308,795  26,449  6,087,813  7,423,057 
Net purchases (sales)  (2,965,112)  (85,157)    (3,050,269) 
Net transfers in/out      (19,887,813)  (19,887,813) 
Balance, as of April 30, 2010  $ —  $ 207,440    $ 207,440 

1 Included in the related net change in unrealized appreciation/depreciation on the Statements of Operations. The change in unrealized appreciation/depreciation on securities
still held at April 30, 2010 was $26,449.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

APRIL 30, 2010

19


Schedule of Investments April 30, 2010 (Unaudited)

BlackRock Credit Allocation Income Trust III (BPP)
(Percentages shown are based on Net Assets)

Common Stocks  Shares  Value 
Specialty Retail — 0.0%     
Lazydays RV Center, Inc. (a)  8,575  $ 33,444 
Total Common Stocks — 0.0%    33,444 
  Par   
Corporate Bonds  (000)   
Aerospace & Defense — 2.5%     
BE Aerospace, Inc., 8.50%, 7/01/18  $ 1,215  1,300,050 
Bombardier, Inc., 7.75%, 3/15/20 (b)  1,405  1,492,813 
United Technologies Corp., 5.70%, 4/15/40  2,500  2,610,327 
    5,403,190 
Airlines — 0.4%     
Continental Airlines Pass-Through Certificates,     
Series 2009-2, Class B, 9.25%, 5/10/17  775  829,250 
Auto Components — 0.6%     
Icahn Enterprises LP (b):     
     7.75%, 1/15/16  420  408,450 
     8.00%, 1/15/18  1,000  972,500 
    1,380,950 
Beverages — 0.4%     
Constellation Brands, Inc., 7.25%, 5/15/17  955  974,100 
Capital Markets — 1.7%     
Ameriprise Financial, Inc., 5.30%, 3/15/20  1,500  1,561,253 
Morgan Stanley, 7.30%, 5/13/19  1,950  2,141,252 
    3,702,505 
Chemicals — 0.3%     
CF Industries, Inc., 7.13%, 5/01/20  525  552,562 
Commercial Banks — 0.7%     
RESPARCS Funding LP I, 8.00% (a)(c)(d)  4,000  1,620,000 
Commercial Services & Supplies — 2.6%     
Browning-Ferris Industries, Inc., 7.40%, 9/15/35  1,824  2,081,545 
Corrections Corp.of America, 7.75%, 6/01/17  1,600  1,696,000 
Waste Management, Inc., 6.13%, 11/30/39  1,950  2,030,512 
    5,808,057 
Communications Equipment — 0.7%     
Brocade Communications Systems, Inc.,     
6.88%, 1/15/20 (b)  1,450  1,497,125 
Consumer Finance — 5.3%     
American Express Co., 8.13%, 5/20/19  1,950  2,388,343 
Capital One Bank USA NA, 8.80%, 7/15/19  1,625  1,992,651 
Inmarsat Finance Plc, 7.38%, 12/01/17 (b)  1,020  1,063,350 
SLM Corp., 4.00%, 7/25/14 (e)  6,600  6,144,534 
    11,588,878 
Containers & Packaging — 0.9%     
Ball Corp.:     
     7.13%, 9/01/16  850  903,125 
     6.75%, 9/15/20  870  889,575 
Impress Holdings BV, 3.43%, 9/15/13 (b)(e)  240  230,400 
    2,023,100 
Diversified Financial Services — 2.2%     
Bank of America Corp., 7.63%, 6/01/19  3,325  3,795,547 
GMAC, Inc., 8.30%, 2/12/15 (b)  1,000  1,043,750 
    4,839,297 
Diversified Telecommunication Services — 4.0%     
AT&T, Inc., 6.30%, 1/15/38  2,000  2,077,838 
New Communications Holdings, Inc.,     
8.50%, 4/15/20 (b)  1,500  1,545,000 
Qwest Corp., 8.38%, 5/01/16  1,360  1,550,400 
Verizon Communications, Inc., 7.35%, 4/01/39  1,950  2,315,533 

    Par   
Corporate Bonds    (000)  Value 
Diversified Telecommunication Services (concluded)       
Windstream Corp.:       
     8.63%, 8/01/16  $ 320  $ 327,600 
     7.88%, 11/01/17    900  893,250 
      8,709,621 
Electric Utilities — 1.7%       
Progress Energy Inc., 7.00%, 10/30/31    2,000  2,284,848 
Southern California Edison Co., 5.50%, 3/15/40    1,400  1,424,937 
      3,709,785 
Food & Staples Retailing — 3.4%       
CVS Caremark Corp., 6.30%, 6/01/62 (e)    3,100  2,991,500 
Wal-Mart Stores, Inc.:       
     5.25%, 9/01/35    1,850  1,821,834 
     6.20%, 4/15/38    2,500  2,752,035 
      7,565,369 
Food Products — 0.8%       
Kraft Foods, Inc.:       
     6.50%, 8/11/17    800  906,422 
     6.13%, 8/23/18    800  882,740 
      1,789,162 
Gas Utilities — 0.9%       
Nisource Finance Corp., 6.13%, 3/01/22    1,950  2,070,426 
Health Care Equipment & Supplies — 1.0%       
Medtronic, Inc.:       
     6.50%, 3/15/39    300  346,496 
     5.55%, 3/15/40    1,765  1,822,583 
      2,169,079 
Health Care Providers & Services — 3.1%       
Aetna, Inc., 6.75%, 12/15/37    1,725  1,901,110 
HCA, Inc., 7.25%, 9/15/20 (b)    1,250  1,307,813 
HCA, Inc./DE, 8.50%, 4/15/19 (b)    800  879,000 
Tenet Healthcare Corp., 10.00%, 5/01/18 (b)    745  848,369 
UnitedHealth Group, Inc., 6.88%, 2/15/38    1,725  1,895,242 
      6,831,534 
Hotels, Restaurants & Leisure — 0.0%       
Greektown Holdings, LLC, 10.75%, 12/01/13 (a)(b)(d)  362  23,982 
Insurance — 4.9%       
Lincoln National Corp.:       
     8.75%, 7/01/19    850  1,060,317 
     6.25%, 2/15/20    1,725  1,843,799 
Northwestern Mutual Life Insurance,       
6.06%, 3/30/40 (b)    1,800  1,859,173 
Principal Financial Group, Inc., 8.88%, 5/15/19    475  585,939 
Prudential Financial, Inc., 6.63%, 12/01/37    1,725  1,901,757 
QBE Insurance Group Ltd., 9.75%, 3/14/14 (b)    2,975  3,623,449 
      10,874,434 
Life Sciences Tools & Services — 1.8%       
Bio-Rad Laboratories, Inc., 8.00%, 9/15/16    1,830  1,953,525 
Life Technologies Corp., 6.00%, 3/01/20    2,000  2,104,320 
      4,057,845 
Machinery — 1.7%       
AGY Holding Corp., 11.00%, 11/15/14    390  343,200 
Ingersoll-Rand Global Holding Co., Ltd., 9.50%, 4/15/14  1,725  2,115,017 
Navistar International Corp., 8.25%, 11/01/21    1,245  1,313,475 
      3,771,692 
Media — 7.4%       
CMP Susquehanna Corp., 3.20%, 5/15/14 (a)(b)(d)    9  180 
CSC Holdings, Inc., 8.63%, 2/15/19 (b)    580  633,650 
CSC Holdings LLC, 8.50%, 6/15/15 (b)    800  852,000 
Comcast Corp., 6.30%, 11/15/17    1,725  1,911,980 
Cox Communications, Inc., 8.38%, 3/01/39 (b)    1,725  2,239,935 

See Notes to Financial Statements.

20 SEMI-ANNUAL REPORT

APRIL 30, 2010


Schedule of Investments (continued)

BlackRock Credit Allocation Income Trust III (BPP)
(Percentages shown are based on Net Assets)

    Par   
Corporate Bonds    (000)  Value 
Media (concluded)       
DISH DBS Corp.:       
     7.00%, 10/01/13  $ 850  $ 879,750 
     7.88%, 9/01/19    550  577,500 
Intelsat Corp., 9.25%, 6/15/16    850  896,750 
News America, Inc., 6.15%, 3/01/37    2,000  2,047,648 
Time Warner Cable, Inc., 6.75%, 6/15/39    1,950  2,107,729 
Time Warner, Inc., 7.70%, 5/01/32    2,000  2,347,018 
UPC Germany GmbH, 8.13%, 12/01/17 (b)    505  515,100 
Virgin Media Secured Finance Plc, 6.50%, 1/15/18 (b)  1,300  1,306,500 
      16,315,740 
Metals & Mining — 1.2%       
Phelps Dodge Corp., 7.13%, 11/01/27    1,400  1,449,169 
Teck Resources Ltd., 10.75%, 5/15/19    850  1,058,250 
United States Steel Corp., 7.38%, 4/01/20    175  179,813 
      2,687,232 
Multi-Utilities — 1.5%       
CenterPoint Energy, Inc.:       
     5.95%, 2/01/17    1,500  1,579,578 
     6.50%, 5/01/18    1,600  1,744,266 
      3,323,844 
Multiline Retail — 0.8%       
Dollar General Corp., 10.63%, 7/15/15    1,550  1,722,437 
Oil, Gas & Consumable Fuels — 3.7%       
EXCO Resources, Inc., 7.25%, 1/15/11    40  39,950 
Enbridge Energy Partners LP, 9.88%, 3/01/19    1,000  1,323,864 
Enterprise Products Operating LLC, 6.65%, 4/15/18    2,000  2,278,896 
Kinder Morgan Energy Partners LP, 6.85%, 2/15/20    2,000  2,303,280 
ONEOK Partners LP, 8.63%, 3/01/19    1,725  2,164,941 
      8,110,931 
Paper & Forest Products — 3.1%       
Georgia-Pacific LLC, 8.25%, 5/01/16 (b)    1,635  1,790,325 
International Paper Co.:       
     7.50%, 8/15/21    1,625  1,908,740 
     8.70%, 6/15/38    900  1,152,653 
     7.30%, 11/15/39    1,725  1,912,492 
      6,764,210 
Pharmaceuticals — 7.8%       
Abbott Laboratories:       
     6.15%, 11/30/37    235  262,297 
     6.00%, 4/01/39    2,777  3,058,357 
Bristol-Myers Squibb Co.:       
     5.88%, 11/15/36    1,994  2,106,320 
     6.13%, 5/01/38    588  641,962 
Eli Lilly & Co., 5.95%, 11/15/37    588  639,820 
GlaxoSmithKline Capital, Inc., 6.38%, 5/15/38    3,460  3,917,059 
Merck & Co., Inc., 6.50%, 12/01/33    990  1,144,520 
Pfizer, Inc., 7.20%, 3/15/39    2,500  3,102,573 
Schering-Plough Corp., 6.55%, 9/15/37    1,979  2,308,828 
      17,181,736 
Professional Services — 0.0%       
FTI Consulting, Inc., 7.75%, 10/01/16    100  102,875 
Real Estate Investment Trusts (REITs) — 3.3%       
AvalonBay Communities, Inc.:       
     5.70%, 3/15/17    1,625  1,740,903 
     6.10%, 3/15/20    1,725  1,869,427 
ERP Operating LP:       
     5.38%, 8/01/16    1,625  1,713,873 
     5.75%, 6/15/17    1,715  1,839,091 
      7,163,294 

Corporate Bonds    (000)  Value 
Semiconductors & Semiconductor Equipment — 1.0%       
KLA-Tencor Corp., 6.90%, 5/01/18  $ 918  $ 1,015,167 
National Semiconductor Corp., 6.60%, 6/15/17    1,123  1,236,778 
      2,251,945 
Specialty Retail — 1.0%       
AutoNation, Inc., 6.75%, 4/15/18    940  943,525 
AutoZone, Inc., 7.13%, 8/01/18    650  751,299 
Ltd. Brands, Inc., 7.00%, 5/01/20 (g)    470  479,400 
      2,174,224 
Tobacco — 1.9%       
Altria Group, Inc.:       
9.70%, 11/10/18    1,725  2,169,345 
9.25%, 8/06/19    1,600  1,976,451 
      4,145,796 
Wireless Telecommunication Services — 0.6%       
Cricket Communications, Inc., 7.75%, 5/15/16    325  337,188 
Nextel Communications, Inc., Series E,       
6.88%, 10/31/13    1,105  1,085,662 
      1,422,850 
Total Corporate Bonds — 74.9%      165,159,057 
Investment Companies    Shares   
ProShares UltraShort Real Estate    12,000  310,080 
Total Investment Companies — 0.1%      310,080 
Preferred Securities       
    Par   
Capital Trusts    (000)   
Building Products — 0.3%       
C8 Capital SPV Ltd., 6.64% (b)(c)(e)  $ 970  707,557 
Capital Markets — 4.0%       
State Street Capital Trust III, 8.25% (c)(e)    1,385  1,422,104 
State Street Capital Trust IV, 1.26%, 6/01/67 (e)    9,675  7,457,635 
      8,879,739 
Commercial Banks — 7.8%       
Bank of Ireland Capital Funding II, LP, 5.57% (a)(b)(c)(d)(e)  854  606,340 
Bank of Ireland Capital Funding III, LP, 6.11% (a)(b)(c)(d)(e)  1,471  1,044,410 
Barclays Bank Plc, 5.93% (b)(c)(e)    890  805,450 
CBA Capital Trust I, 5.81% (b)(c)    5,000  4,943,700 
FCB/NC Capital Trust I, 8.05%, 3/01/28    1,100  1,039,309 
NBP Capital Trust III, 7.38% (c)    2,000  1,590,000 
National City Preferred Capital Trust I, 12.00% (c)(e)    600  694,452 
SunTrust Preferred Capital I, 5.85% (c)(e)    303  237,097 
USB Capital XIII Trust, 6.63%, 12/15/39    1,725  1,814,027 
Wells Fargo Capital XIII, Series GMTN, 7.70% (c)(e)    1,700  1,768,000 
Westpac Capital Trust IV, 5.26% (b)(c)(e)    3,000  2,753,040 
      17,295,825 
Diversified Financial Services — 4.7%       
JPMorgan Chase Capital XXI, Series U,       
1.29%, 1/15/87 (e)    7,125  5,542,708 
JPMorgan Chase Capital XXIII, 1.25%, 5/15/77 (e)    6,190  4,807,334 
      10,350,042 
Electric Utilities — 0.4%       
PPL Capital Funding, 6.70%, 3/30/67 (e)    900  823,500 
Insurance — 7.5%       
AXA SA, 6.38% (b)(c)(e)    900  801,000 
The Allstate Corp., 6.50%, 5/15/67 (e)    900  864,000 
Chubb Corp., 6.38%, 3/29/67 (e)    900  901,125 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

APRIL 30, 2010

21


Schedule of Investments (continued)

BlackRock Credit Allocation Income Trust III (BPP)
(Percentages shown are based on Net Assets)

  Par   
Capital Trusts  (000)  Value 
Insurance (concluded)     
Genworth Financial, Inc., 6.15%, 11/15/66 (e)  $ 1,475  $ 1,180,000 
Liberty Mutual Group, Inc., 10.75%, 6/15/88 (b)(e)  900  1,048,500 
Lincoln National Corp., 7.00%, 5/17/66 (e)  900  832,500 
MetLife, Inc., 6.40%, 12/15/66  900  850,500 
Nationwide Life Global Funding I, 6.75%, 5/15/67  900  769,500 
Progressive Corp., 6.70%, 6/15/67 (e)  900  891,865 
Reinsurance Group of America, 6.75%, 12/15/65 (e)  1,300  1,230,830 
The Travelers Cos., Inc,, 6.25%, 3/15/67 (e)  900  885,129 
White Mountains Re Group Ltd., 7.51% (b)(c)(e)  2,600  2,388,776 
ZFS Finance (USA) (b)(e):     
     Trust IV, 5.88%, 5/09/32  190  181,522 
     Trust V, 6.50%, 5/09/67  2,209  2,115,117 
Zenith National Insurance Capital Trust I,     
8.55%, 8/01/28 (b)  1,800  1,557,000 
    16,497,364 
Multi-Utilities — 0.4%     
Puget Sound Energy, Inc., Series A, 6.97%, 6/01/67 (e)  925  879,185 
Oil, Gas & Consumable Fuels — 0.4%     
TransCanada PipeLines Ltd., 6.35%, 5/15/67 (e)  900  865,478 
Total Capital Trusts — 25.5%    56,298,690 
Preferred Stocks  Shares   
Capital Markets — 0.0%     
Lehman Brothers Holdings Inc., Series D, 5.67% (c)(d)  31,100  2,519 
Commercial Banks — 2.5%     
Banesto Holdings, Ltd., Series A, 10.50% (b)  30,000  754,689 
First Republic Preferred Capital Corp., 7.25%  42,512  885,100 
Royal Bank of Scotland Group Plc, Series M, 6.40%  10,000  133,400 
Union Planter Preferred Funding Corp., 7.75%  60  3,780,000 
    5,553,189 
Diversified Financial Services — 1.7%     
JPMorgan Chase & Co., Series E, 6.15%  75,000  3,728,250 
Electric Utilities — 0.6%     
Alabama Power Co., 6.50%  50,000  1,299,500 
Insurance — 10.2%     
Arch Capital Group Ltd., Series A, 8.00%  67,414  1,701,529 
Aspen Insurance Holdings Ltd., 7.40% (e)  115,000  2,668,000 
Endurance Specialty Holdings Ltd., Series A, 7.75%  122,400  2,970,648 
MetLife, Inc., Series B, 6.50%  61,294  1,485,154 
PartnerRe Ltd., Series C, 6.75%  209,400  5,182,650 
Prudential Plc:     
     6.50%  62,000  1,434,060 
     6.50% (c)  6,000,000  5,235,000 
Zurich RegCaPS Funding Trust II, 6.58% (b)(e)  2,000  1,852,500 
    22,529,541 
Media — 1.5%     
CMP Susquehanna Radio Holdings Corp. (a)(b)(e)  2,052   
Comcast Holdings Corp., 2.00%, 11/15/29 (f)  110  3,340,068 
    3,340,068 
Real Estate Investment Trusts (REITs) — 2.2%     
BRE Properties, Inc., Series D, 6.75%  20,000  456,400 
Public Storage:     
     Series F, 6.45%  20,000  470,800 
     Series M, 6.63%  35,000  860,300 
SunTrust Real Estate Investment Trust, 9.00%  30  3,027,187 
    4,814,687 
Specialty Retail — 0.1%     
Lazydays RV Center, Inc., 8.00%  182  181,809 
Total Preferred Stocks — 18.8%    41,449,563 

Trust Preferreds  Shares  Value 
Capital Markets — 1.1%     
Structured Asset Trust Unit Repackagings (SATURNS):     
     Credit Suisse First Boston (USA), Inc. Debenture     
     Backed, 6.25%, 7/15/32  11,100  $ 249,903 
     Goldman Sachs Group, Inc. Debenture Backed,     
     6.00%, 2/15/33  102,900  2,097,199 
    2,347,102 
Diversified Financial Services — 0.1%     
PPLUS Trust Certificates, Series VAL-1, Class A,     
 7.25%, 4/15/32 (f)  11,100  276,510 
Food Products — 1.1%     
Corporate-Backed Trust Certificates, Kraft     
 Foods, Inc. Debenture Backed, Series 2003-11,     
 5.88%, 11/01/31  100,000  2,401,202 
Insurance — 1.1%     
Assured Guaranty Municipal Holdings, Inc.,     
 5.60%, 7/15/03 (f)  15,200  279,692 
Everest Re Capital Trust, 6.20%, 3/29/34  30,000  642,884 
The Phoenix Cos., Inc., 7.45%, 1/15/32  79,385  1,552,604 
    2,475,180 
Media — 1.4%     
Comcast Corp.:     
     7.00%, 9/15/55  50,000  1,251,825 
     6.63%, 5/15/56  73,000  1,772,135 
Corporate-Backed Trust Certificates, News     
 America Debenture Backed, Series 2002-9,     
 8.13%, 12/01/45 (f)  7,200  180,197 
    3,204,157 
Oil, Gas & Consumable Fuels — 1.7%     
Nexen, Inc., 7.35%, 11/01/43  155,000  3,834,702 
Wireless Telecommunication Services — 0.9%     
Structured Repackaged Asset-Backed Trust     
 Securities, Sprint Capital Corp. Debenture Backed,     
 Series 2004-2, 6.50%, 11/15/28  103,439  1,892,041 
Total Trust Preferreds — 7.4%    16,430,894 
Total Preferred Securities — 51.7%    114,179,147 
  Par   
Taxable Municipal Bonds  (000)   
Metropolitan Transportation Authority, RB, Build     
 America Bonds, 6.55%, 11/15/31  $ 1,675  1,765,952 
State of California, GO, Build America Bonds,     
 7.35%, 11/01/39  825  891,314 
State of Illinois, GO, Pension, 5.10%, 6/01/33  1,675  1,444,738 
Total Taxable Municipal Bonds — 1.9%    4,102,004 
Warrants (h)  Shares   
Media — 0.0%     
CMP Susquehanna Radio Holdings Corp.     
 (Expires 3/26/19) (b)  2,345   
Total Warrants — 0.0%     
Total Long Term Investments     
(Cost — $295,822,018) — 128.6%    283,783,732 

See Notes to Financial Statements.

22 SEMI-ANNUAL REPORT

APRIL 30, 2010


Schedule of Investments (continued)

BlackRock Credit Allocation Income Trust III (BPP)
(Percentages shown are based on Net Assets)

Short-Term Securities  Shares  Value 
BlackRock Liquidity Funds, TempFund,     
Institutional Class, 0.13% (i)(j)  6,947,057  $ 6,947,057 
Total Short-Term Securities     
(Cost — $6,947,057) — 3.2%    6,947,057 
Total Investments (Cost — $302,769,075*) — 131.8%    290,730,789 
Other Assets Less Liabilities — 0.1%    300,013 
Preferred Shares, at Redemption Value — (31.9)%    (70,427,782) 
Net Assets Applicable to Common Shares — 100.0%    $ 220,603,020 

* The cost and unrealized appreciation (depreciation) of investments as of April 30,
2010, as computed for federal income tax purposes, were as follows:

Aggregate cost  $ 304,317,602 
Gross unrealized appreciation  $ 8,338,212 
Gross unrealized depreciation  (21,925,025) 
Net unrealized depreciation  $ (13,586,813) 

(a) Non-income producing security.
(b) Security exempt from registration under Rule 144A of the Securities Act of 1933.
These securities may be resold in transactions exempt from registration to qualified
institutional investors.
(c) Security is perpetual in nature and has no stated maturity date.
(d) Issuer filed for bankruptcy and/or is in default of interest payments.
(e) Variable rate security. Rate shown is as of report date.
(f) Convertible security.
(g) When-issued security. Unsettled when-issued transactions were as follows:

    Unrealized 
Counterparty  Value  Appreciation 
Bank of America, NA  $ 479,400  $ 9,400 

(h) Warrants entitle the Fund to purchase a predetermined number of shares of com-
mon stock and are non-income producing. The purchase price and number of
shares are subject to adjustment under certain conditions until the expiration date.
(i) Investments in companies considered to be an affiliate of the Fund, for purposes of
Section 2(a)(3) of the Investment Company Act of 1940, were as follows:

      Shares Held at          Shares Held at 
      October 31,  Net     April 30,   
  Affiliate      2009    Activity  2010  Income 
  BlackRock Liquidity             
   Funds, TempFund,             
   Institutional Class                                       51,450,797            (44,503,740) 6,947,057  $40,567 
(j) Represents the current yield as of report date.     
  For Fund compliance purposes, the Fund’s industry classifications refer to any one 
  or more of the industry sub-classifications used by one or more widely recognized 
  market indexes or rating group indexes, and/or as defined by Fund management. 
  This definition may not apply for purposes of this report, which may combine 
  industry sub-classifications for reporting ease.     
  Financial futures contracts purchased as of April 30, 2010 were as follows: 
        Expiration  Notional  Unrealized 
  Contracts  Issue  Date  Value  Appreciation 
     13  30-Year U.S.           
                                           Treasury Bond  June 2010  $ 1,505,693  $ 42,120 
  Credit default swaps on single-name issues — buy protection outstanding as of 
  April 30, 2010 were as follows:         
                Received        Notional   
      Fixed  Counter-    Amount  Unrealized 
  Issuer    Rate         party           Expiration  (000)  Depreciation 
  Nordstrom, Inc    5.20%  Deutsche  June     
        Bank AG  2014  $1,000  $ (175,919) 

Fair Value Measurements — Various inputs are used in determining the fair value of
investments, which are as follows:
Level 1 — price quotations in active markets/exchanges for identical assets
and liabilities
Level 2 — other observable inputs (including, but not limited to: quoted prices
for similar assets or liabilities in markets that are active, quoted prices for
identical or similar assets or liabilities in markets that are not active, inputs
other than quoted prices that are observable for the assets or liabilities (such
as interest rates, yield curves, volatilities, prepayment speeds, loss severities,
credit risks and default rates) or other market-corroborated inputs)
Level 3 — unobservable inputs based on the best information available in the
circumstances, to the extent observable inputs are not available (including the
Fund’s own assumptions used in determining the fair value of investments)
The inputs or methodologies used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities. For information
about the Fund’s policy regarding valuation of investments and other significant
accounting policies, please refer to Note 1 of the Notes to Financial Statements.
The following tables summarize the inputs used as of April 30, 2010 in determin-
ing the fair valuation of the Fund’s investments:

Investments in Securities

Valuation Inputs  Level 1  Level 2  Level 3  Total 
Assets:           
Long-Term           
Investments:           
   Capital           
   Trusts      $ 56,298,690    $ 56,298,690 
   Common           
   Stocks        $ 33,444  33,444 
   Corporate           
   Bonds      165,158,877  180  165,159,057 
   Investment           
   Companies .$  310,080      310,080 
   Preferred           
   Stocks  23,278,310  14,962,257  3,208,996  41,449,563 
   Taxable           
   Municipal           
   Bonds      4,102,004    4,102,004 
   Trust           
   Preferreds  16,151,202  279,692    16,430,894 
Short-Term           
Securities    6,947,057      6,947,057 
Total  $46,686,649  $240,801,520  $ 3,242,620  $290,730,789 
Other Financial Instruments1

Valuation Inputs  Level 1  Level 21  Level 3  Total 
Assets  $ 42,120      $ 42,120 
Liabilities      $ (175,919)    (175,919) 
Total  $ 42,120  $ (175,919)    $ (133,799) 

1 Other financial instruments are financial futures contracts and swaps, which are
shown at the unrealized appreciation/depreciation on the instrument.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

APRIL 30, 2010

23


Schedule of Investments (concluded)

BlackRock Credit Allocation Income Trust III (BPP)

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

    Investments in Securities   
  Common  Corporate  Preferred   
  Stocks    Bonds  Stocks  Total 
Balance, as of October 31, 2009    $ 12,000  $ 3,027,189  $ 3,039,189 
Accrued discounts/premiums         
Net realized gain (loss)         
Net change in unrealized appreciation/depreciation1      (2)  (2) 
Net purchases (sales)  $ 33,444  (11,820)  181,809  203,433 
Net transfers in/out         
Balance, as of April 30, 2010  $ 33,444  $ 180  $ 3,208,996  $ 3,242,620 

1 Included in the related net change in unrealized appreciation/depreciation on the Statements of Operations. The change in unrealized appreciation/depreciation on securities
still held at April 30, 2010 was $(2).

See Notes to Financial Statements.

24 SEMI-ANNUAL REPORT

APRIL 30, 2010


Schedule of Investments April 30, 2010 (Unaudited)

BlackRock Credit Allocation Income Trust IV (BTZ)
(Percentages shown are based on Net Assets)

Common Stocks  Shares  Value 
Commercial Banks — 1.1%     
Citizens Banking Corp. (a)  6,406,596  $ 8,008,245 
Total Common Stocks — 1.1%    8,008,245 
  Par   
Corporate Bonds  (000)   
Aerospace & Defense — 2.6%     
BE Aerospace, Inc., 8.50%, 7/01/18  $ 3,575  3,825,250 
Bombardier, Inc., 7.75%, 3/15/20 (b)  4,500  4,781,250 
United Technologies Corp., 5.70%, 4/15/40  10,000  10,441,310 
    19,047,810 
Airlines — 0.3%     
Continental Airlines Pass-Through Certificates,     
Series 2009-2, Class B, 9.25%, 5/10/17  2,225  2,380,750 
Auto Components — 0.6%     
Icahn Enterprises LP (b):     
     7.75%, 1/15/16  1,700  1,653,250 
     8.00%, 1/15/18  2,500  2,431,250 
    4,084,500 
Beverages — 0.5%     
Constellation Brands, Inc., 7.25%, 5/15/17  3,230  3,294,600 
Capital Markets — 1.4%     
Ameriprise Financial, Inc., 5.30%, 3/15/20  4,500  4,683,757 
Lehman Brothers Holdings, Inc. (a)(c):     
     3.95%, 11/10/09  105  23,100 
     4.38%, 11/30/10  325  71,500 
Morgan Stanley, 7.30%, 5/13/19  4,750  5,215,870 
    9,994,227 
Chemicals — 0.3%     
CF Industries, Inc., 7.13%, 5/01/20  1,850  1,947,125 
Commercial Banks — 0.1%     
Kazkommerts Finance 2 BV, 9.20%, (d)(e)  500  430,000 
Commercial Services & Supplies — 2.1%     
Browning-Ferris Industries, Inc., 7.40%, 9/15/35  4,420  5,044,095 
Corrections Corp.of America, 7.75%, 6/01/17  4,835  5,125,100 
Waste Management, Inc., 6.13%, 11/30/39  4,750  4,946,118 
    15,115,313 
Communications Equipment — 0.5%     
Brocade Communications Systems, Inc.,     
6.88%, 1/15/20 (b)  3,580  3,696,350 
Consumer Finance — 4.0%     
American Express Co., 8.13%, 5/20/19  4,725  5,787,137 
Capital One Bank USA NA, 8.80%, 7/15/19  3,950  4,843,676 
Inmarsat Finance Plc, 7.38%, 12/01/17 (b)  2,975  3,101,438 
SLM Corp., 4.00%, 7/25/14 (e)  16,300  15,175,137 
    28,907,388 
Containers & Packaging — 0.7%     
Ball Corp.:     
     7.13%, 9/01/16  2,000  2,125,000 
     6.75%, 9/15/20  2,750  2,811,875 
    4,936,875 
Diversified Financial Services — 3.0%     
Bank of America Corp., 7.63%, 6/01/19  8,025  9,160,682 
GMAC, Inc., 8.30%, 2/12/15 (b)  3,700  3,861,875 
ING Groep NV, 5.78% (d)(e)(f)  10,000  8,629,300 
Stan IV Ltd., 2.14%, 7/20/11 (e)  283  240,550 
    21,892,407 

  Par   
Corporate Bonds  (000)  Value 
Diversified Telecommunication Services — 3.2%     
AT&T, Inc., 6.30%, 1/15/38  $ 5,000  $ 5,194,595 
New Communications Holdings, Inc.,     
8.50%, 4/15/20 (b)  4,500  4,635,000 
Qwest Corp., 8.38%, 5/01/16  3,285  3,744,900 
Verizon Communications, Inc., 7.35%, 4/01/39  4,700  5,581,029 
Windstream Corp.:     
     8.63%, 8/01/16  1,250  1,279,688 
     7.88%, 11/01/17  2,700  2,679,750 
    23,114,962 
Electric Utilities — 1.3%     
Progress Energy Inc., 7.00%, 10/30/31  5,000  5,712,120 
Southern California Edison Co., 5.50%, 3/15/40  3,850  3,918,576 
    9,630,696 
Food & Staples Retailing — 2.9%     
CVS Caremark Corp., 6.30%, 6/01/62 (e)  7,800  7,527,000 
Wal-Mart Stores, Inc.:     
     5.25%, 9/01/35  2,650  2,609,654 
     6.20%, 4/15/38  10,000  11,008,140 
    21,144,794 
Food Products — 0.6%     
Kraft Foods, Inc.:     
     6.50%, 8/11/17  1,985  2,249,058 
     6.13%, 8/23/18  1,990  2,195,816 
    4,444,874 
Gas Utilities — 0.7%     
Nisource Finance Corp., 6.13%, 3/01/22  4,750  5,043,346 
Health Care Equipment & Supplies — 1.2%     
Medtronic, Inc.:     
     6.50%, 3/15/39  1,050  1,212,734 
     5.55%, 3/15/40  7,058  7,288,268 
    8,501,002 
Health Care Providers & Services — 2.4%     
Aetna, Inc., 6.75%, 12/15/37  4,075  4,491,029 
HCA, Inc., 7.25%, 9/15/20 (b)  3,600  3,766,500 
HCA, Inc./DE, 8.50%, 4/15/19 (b)  2,000  2,197,500 
Tenet Healthcare Corp., 10.00%, 5/01/18 (b)  2,175  2,476,781 
UnitedHealth Group, Inc., 6.88%, 2/15/38  4,075  4,477,166 
    17,408,976 
IT Services — 0.6%     
International Business Machines Corp.,     
5.60%, 11/30/39  4,400  4,575,644 
Insurance — 3.4%     
Lincoln National Corp.:     
     8.75%, 7/01/19  2,000  2,494,864 
     6.25%, 2/15/20  4,075  4,355,641 
Northwestern Mutual Life Insurance,     
6.06%, 3/30/40 (b)  5,500  5,680,807 
Principal Financial Group, Inc., 8.88%, 5/15/19  1,145  1,412,421 
Prudential Financial, Inc., 6.63%, 12/01/37  4,075  4,492,557 
QBE Insurance Group Ltd., 9.75%, 3/14/14 (b)  4,973  6,056,945 
    24,493,235 
Life Sciences Tools & Services — 1.5%     
Bio-Rad Laboratories, Inc., 8.00%, 9/15/16  5,480  5,849,900 
Life Technologies Corp., 6.00%, 3/01/20  4,800  5,050,368 
    10,900,268 
Machinery — 1.3%     
Ingersoll-Rand Global Holding Co LTD, 9.50%, 4/15/14  4,075  4,996,345 
Navistar International Corp., 8.25%, 11/01/21  3,975  4,193,625 
    9,189,970 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

APRIL 30, 2010

25


Schedule of Investments (continued)

BlackRock Credit Allocation Income Trust IV (BTZ)
(Percentages shown are based on Net Assets)

  Par   
Corporate Bonds  (000)  Value 
Media — 5.6%     
CSC Holdings LLC, 8.50%, 6/15/15 (b)  $ 2,300  $ 2,449,500 
CSC Holdings, Inc., 8.63%, 2/15/19 (b)  1,950  2,130,375 
Comcast Corp., 6.30%, 11/15/17  4,075  4,516,706 
Cox Communications, Inc., 8.38%, 3/01/39 (b)  4,075  5,291,440 
DISH DBS Corp:     
     7.00%, 10/01/13  1,950  2,018,250 
     7.88%, 9/01/19  1,850  1,942,500 
Intelsat Corp., 9.25%, 6/15/16  2,000  2,110,000 
News America, Inc., 6.15%, 3/01/37  4,850  4,965,546 
Time Warner Cable, Inc., 6.75%, 6/15/39  4,675  5,053,147 
Time Warner, Inc., 7.70%, 5/01/32  4,900  5,750,194 
UPC Germany GmbH, 8.13%, 12/01/17 (b)  1,225  1,249,500 
Virgin Media Secured Finance Plc, 6.50%, 1/15/18 (b)  3,175  3,190,875 
    40,668,033 
Metals & Mining — 0.9%     
Aleris International, Inc., 10.00%, 12/15/16 (a)(c)  5,000  25,000 
Phelps Dodge Corp., 7.13%, 11/01/27  3,500  3,622,924 
Teck Resources Ltd., 10.75%, 5/15/19  2,000  2,490,000 
United States Steel Corp., 7.38%, 4/01/20  550  565,125 
    6,703,049 
Multi-Utilities — 2.5%     
CenterPoint Energy, Inc.:     
     5.95%, 2/01/17  3,600  3,790,987 
     6.50%, 5/01/18  3,950  4,306,156 
Dominion Resources, Inc., 8.88%, 1/15/19  8,000  10,286,944 
    18,384,087 
Multiline Retail — 0.7%     
Dollar General Corp., 10.63%, 7/15/15  4,225  4,695,031 
Oil, Gas & Consumable Fuels — 2.7%     
Enbridge Energy Partners LP, 9.88%, 3/01/19  2,425  3,210,370 
Enterprise Products Operating LLC, 6.65%, 4/15/18  4,800  5,469,350 
Kinder Morgan Energy Partners LP, 6.85%, 2/15/20  4,800  5,527,872 
ONEOK Partners LP, 8.63%, 3/01/19  4,075  5,114,280 
    19,321,872 
Paper & Forest Products — 2.4%     
Georgia-Pacific LLC, 8.25%, 5/01/16 (b)  3,955  4,330,725 
International Paper Co.:     
     7.50%, 8/15/21  3,950  4,639,705 
     8.70%, 6/15/38  3,100  3,970,251 
     7.30%, 11/15/39  4,075  4,517,916 
    17,458,597 
Pharmaceuticals — 8.3%     
Abbott Laboratories:     
     6.15%, 11/30/37  942  1,051,422 
     6.00%, 4/01/39  9,405  10,357,886 
Bristol-Myers Squibb Co.:     
     5.88%, 11/15/36  8,015  8,466,477 
     6.13%, 5/01/38  2,353  2,568,939 
Eli Lilly & Co., 5.95%, 11/15/37  2,353  2,560,368 
GlaxoSmithKline Capital, Inc., 6.38%, 5/15/38  10,100  11,434,190 
Merck & Co., Inc., 6.50%, 12/01/33  2,885  3,335,294 
Pfizer, Inc., 7.20%, 3/15/39  10,000  12,410,290 
Schering-Plough Corp., 6.55%, 9/15/37  6,945  8,102,481 
    60,287,347 
Real Estate Investment Trusts (REITs) — 2.4%     
AvalonBay Communities, Inc.:     
     5.70%, 3/15/17  3,925  4,204,951 
     6.10%, 3/15/20  4,075  4,416,183 
ERP Operating LP:     
     5.38%, 8/01/16  3,925  4,139,662 
     5.75%, 6/15/17  4,080  4,375,213 
    17,136,009 

    Par   
Corporate Bonds    (000)  Value 
Semiconductors & Semiconductor Equipment — 3.1%       
KLA-Tencor Corp., 6.90%, 5/01/18  $ 2,208  $ 2,441,710 
National Semiconductor Corp.:       
     3.95%, 4/15/15    16,750  16,756,851 
     6.60%, 6/15/17    2,770  3,050,645 
      22,249,206 
Specialty Retail — 0.8%       
AutoNation, Inc., 6.75%, 4/15/18    2,775  2,785,406 
AutoZone, Inc., 7.13%, 8/01/18    1,550  1,791,558 
Ltd. Brands, Inc., 7.00%, 5/01/20 (g)    1,370  1,397,400 
      5,974,364 
Tobacco — 1.4%       
Altria Group, Inc.:       
     9.70%, 11/10/18    4,075  5,124,683 
     9.25%, 8/06/19    3,950  4,879,364 
      10,004,047 
Wireless Telecommunication Services — 3.5%       
Cricket Communications, Inc., 7.75%, 5/15/16    780  809,250 
Nextel Communications, Inc., Series E,       
6.88%, 10/31/13    2,890  2,839,425 
SBA Tower Trust, 5.10%, 4/15/42 (b)    21,250  21,887,617 
      25,536,292 
Total Corporate Bonds — 69.5%      502,593,046 
Investment Companies    Shares   
ProShares UltraShort Real Estate    30,000  775,200 
Total Investment Companies — 0.1%      775,200 
Preferred Securities       
    Par   
Capital Trusts    (000)   
Building Products — 0.6%       
C10 Capital SPV Ltd., 6.72% (b)(d)(e)  $ 5,000  3,655,700 
C8 Capital SPV Ltd., 6.64% (b)(d)(e)    1,580  1,152,515 
      4,808,215 
Capital Markets — 3.1%       
Credit Suisse Guernsey Ltd., 5.86% (d)(e)    1,050  990,937 
State Street Capital Trust III, 8.25% (d)(e)    1,740  1,786,615 
State Street Capital Trust IV, 1.26%, 6/01/67 (e)    25,245  19,459,225 
      22,236,777 
Commercial Banks — 14.2%       
BB&T Capital Trust IV, 6.82%, 6/12/77 (e)(f)    15,300  14,688,000 
Bank of Ireland Capital Funding II, LP, 5.57% (a)(b)(c)(d)(e)  1,422  1,009,620 
Bank of Ireland Capital Funding III, LP, 6.11% (a)(b)(c)(d)(e)  9,153  6,498,630 
Barclays Bank Plc (b)(d)(e):       
     5.93%    4,000  3,620,000 
     6.86%    11,500  10,522,500 
Commonwealth Bank of Australia, 6.02% (b)(d)(e)    20,000  19,073,160 
HSBC Capital Funding LP/Jersey Channel Islands,       
10.18% (b)(d)(e)    7,000  8,953,000 
Lloyds Banking Group Plc, 6.66% (b)(d)(e)    10,000  6,600,000 
National City Preferred Capital Trust I, 12.00% (d)(e)    3,713  4,297,500 
Shinsei Finance II (Cayman) Ltd., 7.16% (b)(d)(e)    1,005  775,421 
Standard Chartered Bank, 7.01% (b)(d)(e)    5,000  4,692,115 
USB Capital XIII Trust, 6.63%, 12/15/39    4,100  4,311,601 
Wells Fargo & Co., Series K, 7.98% (d)(e)    12,985  13,699,175 
Wells Fargo Capital XIII, Series GMTN, 7.70% (d)(e)    3,900  4,056,000 
      102,796,722 

See Notes to Financial Statements.

26 SEMI-ANNUAL REPORT

APRIL 30, 2010


Schedule of Investments (continued)

BlackRock Credit Allocation Income Trust IV (BTZ)
(Percentages shown are based on Net Assets)

  Par   
Capital Trusts  (000)  Value 
Diversified Financial Services — 3.6%     
JPMorgan Chase Capital XXI, Series U,     
1.29%, 1/15/87 (e)(f)  $ 12,875  $ 10,015,772 
JPMorgan Chase Capital XXIII, 1.25%, 5/15/77 (e)(f)  20,695  16,072,337 
    26,088,109 
Electric Utilities — 0.5%     
PPL Capital Funding, 6.70%, 3/30/67 (e)  3,900  3,568,500 
Insurance — 10.6%     
AXA SA, 6.46% (b)(d)(e)  12,000  10,680,000 
Ace Capital Trust II, 9.70%, 4/01/30 (f)  4,000  4,855,256 
The Allstate Corp. 6.50%, 5/15/67 (e)  4,000  3,840,000 
Aon Corp., 8.21%, 1/01/27  4,000  4,358,024 
Chubb Corp., 6.38%, 3/29/67 (e)(f)  4,000  4,005,000 
Liberty Mutual Group, Inc., 10.75%, 6/15/88 (b)(e)  4,000  4,660,000 
Lincoln National Corp., 7.00%, 5/17/66 (e)  4,255  3,935,875 
MetLife, Inc., 6.40%, 12/15/66  4,550  4,299,750 
Nationwide Life Global Funding I, 6.75%, 5/15/67  4,000  3,420,000 
Progressive Corp., 6.70%, 6/15/67 (e)(f)  4,000  3,963,844 
Reinsurance Group of America, 6.75%, 12/15/65 (e)(f)  15,000  14,201,880 
Swiss Re Capital I LP, 6.85% (b)(d)(e)  3,000  2,784,270 
The Travelers Cos., Inc., 6.25%, 3/15/67 (e)(f)  4,000  3,933,908 
White Mountains Re Group Ltd., 7.51% (b)(d)(e)  4,400  4,042,544 
ZFS Finance (USA) (b)(e):     
     Trust IV, 5.88%, 5/09/32  599  572,273 
     Trust V, 6.50%, 5/09/67  3,331  3,189,432 
    76,742,056 
Multi-Utilities — 0.2%     
Puget Sound Energy, Inc., Series A, 6.97%, 6/01/67 (e)  1,575  1,496,990 
Oil, Gas & Consumable Fuels — 1.2%     
Enterprise Products Operating LLC, 8.38%, 8/01/66 (e)  4,500  4,680,000 
TransCanada PipeLines Ltd., 6.35%, 5/15/67 (e)(f)  4,000  3,846,568 
    8,526,568 
Real Estate Investment Trusts (REITs) — 1.5%     
Sovereign Real Estate Investment Corp., 12.00% (d)  10  10,900,000 
Total Capital Trusts — 35.5%    257,163,937 
Preferred Stocks  Shares   
Commercial Banks — 0.0%     
Royal Bank of Scotland Group Plc, Series M, 6.40%  15,000  200,100 
Diversified Financial Services — 0.9%     
Falcons Funding Trust I, 8.88% (b)(e)  5,650  5,634,110 
ING Groep NV:     
     7.05%  5,800  115,420 
     7.38%  40,000  818,353 
    6,567,883 
Diversified Telecommunication Services — 0.1%     
AT&T, Inc., 6.38%  750,000  790,563 
Electric Utilities — 4.1%     
Alabama Power Co., 6.50%  100,000  2,599,000 
Entergy Louisiana LLC, 6.95%  40,000  3,913,549 
Interstate Power & Light Co., Series B, 8.38%  785,000  22,945,550 
    29,458,099 
Insurance — 7.0%     
Arch Capital Group Ltd., Series A, 8.00%  100,000  2,524,000 
Aspen Insurance Holdings Ltd., 7.40% (e)  655,000  15,196,000 
Axis Capital Holdings Ltd., Series B, 7.50% (e)  180,000  17,010,000 
Endurance Specialty Holdings Ltd., Series A, 7.75%  369,000  8,955,630 
PartnerRe Ltd., Series C, 6.75%  265,600  6,573,600 
    50,259,230 

Preferred Stocks    Shares  Value 
Real Estate Investment Trusts (REITs) — 0.5%       
BRE Properties, Inc., Series D, 6.75%    30,000  $ 684,600 
iStar Financial, Inc., Series I, 7.50%    55,000  880,000 
Public Storage:       
Series F, 6.45%    30,000  706,200 
Series M, 6.63%    55,000  1,351,900 
      3,622,700 
Wireless Telecommunication Services — 1.5%       
Centaur Funding Corp., 9.08%    10,000  11,003,125 
Total Preferred Stocks — 14.1%      101,901,700 
Trust Preferreds       
Capital Markets — 0.0%       
Credit Suisse Guernsey Ltd., 7.90%, (d)    10,000  255,424 
Insurance — 0.6%       
W.R. Berkley Capital Trust II, 6.75%, 7/26/45    170,731  4,204,463 
Media — 1.5%       
Comcast Corp., 6.63%, 5/15/56    447,000  10,818,022 
Oil, Gas & Consumable Fuels — 0.4%       
Nexen, Inc., 7.35%, 11/01/43    120,000  2,968,802 
Total Trust Preferreds — 2.5%      18,246,711 
Total Preferred Securities — 52.1%      377,312,348 
    Par   
Taxable Municipal Bonds    (000)   
City of Chicago Illinois, RB, Build America Bonds,       
 6.85%, 1/01/38  $ 5,000  5,187,200 
Metropolitan Transportation Authority, RB,       
 Build America Bonds, 6.55%, 11/15/31    4,075  4,296,272 
State of California, GO, Build America Bonds,       
 7.35%, 11/01/39    2,050  2,214,779 
State of Illinois, GO, Pension, 5.10%, 6/01/33    4,075  3,514,810 
Total Taxable Municipal Bonds — 2.1%      15,213,061 
U.S. Treasury Obligations       
U.S. Treasury Notes, 4.63%, 2/15/40 (h)    75,000  76,183,575 
Total U.S. Treasury Obligations — 10.5%      76,183,575 
Total Long-Term Investments       
(Cost — $1,003,236,130) — 135.4%      980,085,475 
Short-Term Securities    Shares   
BlackRock Liquidity Funds, TempFund       
 Institutional Class, 0.13% (i)(j)  41,474,360  41,474,360 
Total Short-Term Securities       
(Cost — $41,474,360) — 5.7%      41,474,360 
Total Investments (Cost — $1,044,710,490*) — 141.1%    1,021,559,835 
Liabilities in Excess of Other Assets — (9.2)%      (66,648,040) 
Preferred Shares at Redemption Value — (31.9)%      (231,045,162) 
Net Assets Applicable to Common Shares — 100.0%      $ 723,866,633 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

APRIL 30, 2010

27


Schedule of Investments (continued)

BlackRock Credit Allocation Income Trust IV (BTZ)

* The cost and unrealized appreciation (depreciation) of investments as of April 30,
2010, as computed for federal income tax purposes, were as follows:

Aggregate cost  $1,057,868,824 
Gross unrealized appreciation  $ 29,341,029 
Gross unrealized depreciation  (65,650,018) 
Net unrealized depreciation  $ (36,308,989) 

(a) Non-income producing security.
(b) Security exempt from registration under Rule 144A of the Securities Act of 1933.
These securities may be resold in transactions exempt from registration to qualified
institutional investors.
(c) Issuer filed for bankruptcy and/or is in default of interest payments.
(d) Security is perpetual in nature and has no stated maturity date.
(e) Variable rate security. Rate shown is as of report date.
(f) All or a portion of security has been pledged as collateral in connection with open
reverse repurchase agreements.
(g) When-issued security. Unsettled when-issued transactions were as follows:

    Unrealized 
Counterparty  Value  Appreciation 
Bank of America, NA  $1,397,400  $ 27,400 

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

        Shares Held at      Shares Held at 
        October 31,  Net           April 30,   
  Affiliate        2009  Activity    2010  Income 
  BlackRock Liquidity               
   Funds, TempFund               
   Institutional Class  267,832,781     (226,358,421)         41,474,360             $ 160,242     
(j) Represents the current yield as of report date.         
  For Fund compliance purposes, the Fund’s industry classifications refer to any one 
  or more of the industry sub-classifications used by one or more widely recognized 
  market indexes or rating group indexes, and/or as defined by Fund management. 
  This definition may not apply for purposes of this report, which may combine indus- 
  try sub-classifications for reporting ease.           
  Reverse repurchase agreements outstanding as of April 30, 2010 were as follows: 
      Interest  Trade  Maturity      Net Closing  Face 
  Counterparty   Rate  Date  Date      Amount     Amount 
  Credit Suisse                   
  International  0.38%  4/22/10  5/24/10    $68,676,775  $68,653,890 
  Financial futures contracts purchased as of April 30, 2010 were as follows: 
          Expiration    Notional  Unrealized 
  Contracts    Issue  Date      Value     Appreciation 
  380   10-Year US             
    Treasury Bond  June 2010  $44,273,953  $ 530,422 
  32   30-Year US             
    Treasury Bond  June 2010  $ 3,706,320  103,680 
  Total                  $ 634,102 
  Credit default swaps on single-name issues — buy protection outstanding as of 
  April 30, 2010 were as follows:           
        Pay          Notional   
        Fixed   Counter-        Amount  Unrealized 
  Issuer      Rate  party  Expiration   (000)  Depreciation 
  Nordstrom, Inc.    5.20%   Deutsche  June         
             Bank AG  2014      $4,000  $ (703,674) 

Fair Value Measurements — Various inputs are used in determining the fair value of
investments, which are as follows:
Level 1 — price quotations in active markets/exchanges for identical assets
and liabilities
Level 2 — other observable inputs (including, but not limited to: quoted prices for
similar assets or liabilities in markets that are active, quoted prices for identical
or similar assets or liabilities in markets that are not active, inputs other than
quoted prices that are observable for the assets or liabilities (such as interest
rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs)
Level 3 — unobservable inputs based on the best information available in the
circumstances, to the extent observable inputs are not available (including the
Fund’s own assumptions used in determining the fair value of investments)
The inputs or methodologies used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities. For information
about the Fund’s policy regarding valuation of investments and other significant
accounting policies, please refer to Note 1 of the Notes to Financial Statements.
The following tables summarize the inputs used as of April 30, 2010 in determining
the fair valuation of the Fund’s investments:

Investments in Securities

Valuation Inputs  Level 1  Level 2  Level 3  Total 
Assets:           
Long-Term           
Investments:           
   Capital           
   Trusts      $257,163,937    $ 257,163,937 
   Common           
   Stocks  $ 8,008,245      8,008,245 
   Corporate           
   Bonds      502,352,496 $  240,550  502,593,046 
   Investment           
   Companies .    775,200      775,200 
   Preferred           
   Stocks    64,340,916  37,560,784    101,901,700 
   Taxable           
   Municipal           
   Bonds      15,213,061    15,213,061 
   Trust           
   Preferreds    18,246,711      18,246,711 
   U.S. Treasury           
   Obligations .      76,183,575    76,183,575 
Short-Term           
Securities    41,474,360      41,474,360 
Total  $132,845,432  $888,473,853 $  240,550  $1,021,559,835 
Other Financial Instruments1

Valuation Inputs  Level 1  Level 2  Level 3  Total 
Assets  $ 634,102      $ 634,102 
Liabilities      $ (703,674)    (703,674) 
Total  $ 634,102  $ (703,674)    $ (69,572) 

1 Other financial instruments are financial futures contracts and swaps, which are
shown at the unrealized appreciation/depreciation on the instrument.

See Notes to Financial Statements.

28 SEMI-ANNUAL REPORT

APRIL 30, 2010


Schedule of Investments (concluded)

BlackRock Credit Allocation Income Trust IV (BTZ)

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

Investments in Securities   
  Corporate 
  Bonds 
Balance, as of October 31, 2009  $ 240,550 
Accrued discounts/premiums   
Net realized gain (loss)   
Net change in unrealized appreciation/depreciation1   
Net purchases (sales)   
Net transfers in/out   
Balance, as of April 30, 2010  $ 240,550 

1 Included in the related net change in unrealized appreciation/depreciation on
the Statements of Operations. The change in unrealized appreciation/deprecia-
tion on securities still held at April 30, 2010 was $0.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

APRIL 30, 2010

29


Schedule of Investments April 30, 2010 (Unaudited)

BlackRock Floating Rate Income Trust (BGT)
(Percentages shown are based on Net Assets)

Common Stocks    Shares           Value 
Chemicals — 0.0%       
British Vita Holding Co. (a)(b)    166  $ 5,526 
Commercial Services & Supplies — 0.0%       
SIRVA (b)    554  5,540 
Construction & Engineering — 0.0%       
USI United Subcontractors Common (b)    7,644  99,379 
Metals & Mining — 0.1%       
Euramax International (b)    1,135  181,632 
Paper & Forest Products — 0.2%       
Ainsworth Lumber Co. Ltd. (a)(b)    62,685  277,695 
Ainsworth Lumber Co. Ltd. (b)    55,855  247,438 
      525,133 
Software — 0.3%       
HMH Holdings/EduMedia  154,601  1,082,207 
Specialty Retail — 0.0%       
Lazydays RV Center, Inc. (b)    2,721  10,610 
Total Common Stocks — 0.6%      1,910,027 
    Par   
Corporate Bonds    (000)   
Auto Components — 1.0%       
Delphi International Holdings Unsecured,       
12.00%, 10/06/14  USD  39  38,768 
Icahn Enterprises LP (a):       
     7.75%, 1/15/16    1,125  1,094,062 
     8.00%, 1/15/18    2,250  2,188,125 
      3,320,955 
Beverages — 0.5%       
Central European Distribution Corp., 2.62%, 5/15/14  EUR  1,500  1,677,629 
Capital Markets — 0.8%       
E*Trade Financial Corp., 3.34%, 8/31/19 (a)(c)(d)  USD  439  717,765 
MU Finance Plc, 8.75%, 2/01/17 (a)  GBP  544  811,626 
Marsico Parent Co., LLC, 10.63%, 1/15/16 (a)  USD  1,346  890,042 
Marsico Parent Holdco, LLC, 3.13%, 7/15/16 (a)(e)    588  159,617 
Marsico Parent Superholdco, LLC,       
3.63%, 1/15/18 (a)(e)    388  83,826 
      2,662,876 
Chemicals — 0.7%       
Ames True Temper, Inc., 4.30%, 1/15/12 (f)    1,100  1,050,500 
LBI Escrow Corp., 8.00%, 11/01/17 (a)    1,300  1,347,125 
      2,397,625 
Commercial Banks — 1.2%       
VTB Capital SA, 6.88%, 5/29/18    3,940  4,151,775 
Containers & Packaging — 0.6%       
Impress Holdings BV, 3.43%, 9/15/13 (a)(f)    150  144,000 
Smurfit Kappa Acquisitions (a):       
     7.25%, 11/15/17  EUR  655  902,624 
     7.75%, 11/15/19    620  858,520 
      1,905,144 
Diversified Financial Services — 0.7%       
FCE Bank Plc, 7.13%, 1/16/12    1,300  1,756,850 
GMAC, Inc., 2.45%, 12/01/14 (f)  USD  550  487,600 
      2,244,450 
Diversified Telecommunication Services — 2.0%       
ITC Deltacom, Inc., 10.50%, 4/01/16 (a)    1,000  995,000 
New Communications Holdings, Inc.,       
7.88%, 4/15/15 (a)    650  671,125 

    Par   
Corporate Bonds    (000)  Value 
Diversified Telecommunication Services (concluded)       
Qwest Corp., 8.38%, 5/01/16  USD  1,840  $ 2,097,600 
Telefonica Emisiones SAU, 5.43%, 2/03/14  EUR  2,000  2,892,525 
      6,656,250 
Energy Equipment & Services — 0.6%       
Compagnie Generale de Geophysique-Veritas:       
     7.50%, 5/15/15  USD  70  70,875 
     7.75%, 5/15/17    50  50,500 
Expro Finance Luxembourg SCA, 8.50%, 12/15/16 (a)    1,750  1,793,750 
      1,915,125 
Food Products — 0.8%       
B&G Foods, Inc., 7.63%, 1/15/18    700  719,250 
Bumble Bee Foods LLC, 7.75%, 12/15/15 (a)    560  572,600 
Smithfield Foods, Inc., 10.00%, 7/15/14 (a)    1,300  1,459,250 
      2,751,100 
Health Care Equipment & Supplies — 0.2%       
DJO Finance LLC, 10.88%, 11/15/14    635  695,325 
Health Care Providers & Services — 0.6%       
American Renal Holdings, 8.38%, 5/15/18 (a)(g)    360  362,700 
HCA, Inc., 7.25%, 9/15/20 (a)    1,550  1,621,688 
Tenet Healthcare Corp. (a):       
     9.00%, 5/01/15    95  103,431 
     10.00%, 5/01/18    35  39,856 
      2,127,675 
Hotels, Restaurants & Leisure — 0.0%       
Greektown Holdings, LLC, 10.75%, 12/01/13 (a)(b)(h)    97  6,426 
Household Durables — 0.5%       
Beazer Homes USA, Inc., 12.00%, 10/15/17    1,500  1,715,625 
Berkline/BenchCraft, LLC, 4.50%, 11/03/12 (b)(h)    400   
      1,715,625 
IT Services — 0.2%       
SunGard Data Systems, Inc., 4.88%, 1/15/14    763  725,804 
Independent Power Producers & Energy Traders — 1.1%     
AES Ironwood LLC, 8.86%, 11/30/25    81  79,377 
Calpine Construction Finance Co. LP,       
8.00%, 6/01/16 (a)    1,000  1,035,000 
Energy Future Holdings Corp., 10.00%, 1/15/20 (a)    1,000  1,050,000 
NRG Energy, Inc., 7.25%, 2/01/14    1,450  1,469,937 
      3,634,314 
Machinery — 0.0%       
Synventive Molding Solutions, Sub-Series A,       
14.00%, 1/14/11 (e)    1,041  52,050 
Media — 2.2%       
Affinion Group, Inc., 10.13%, 10/15/13    50  51,875 
CCH II LLC, 13.50%, 11/30/16    223  270,506 
Charter Communications Operating, LLC,       
10.00%, 4/30/12 (a)    210  222,600 
Clear Channel Worldwide Holdings, Inc. (a):       
     Series A, 9.25%, 12/15/17    501  534,818 
     Series B, 9.25%, 12/15/17    1,704  1,825,410 
DISH DBS Corp., 7.00%, 10/01/13    58  60,030 
Nielsen Finance LLC, 10.00%, 8/01/14    400  420,000 
Seat Pagine Gialle SpA, 10.50%, 1/31/17 (a)  EUR  1,118  1,458,792 
UPC Germany GmbH, 8.13%, 12/01/17 (a)  USD  2,500  2,550,000 
      7,394,031 
Metals & Mining — 0.2%       
Foundation PA Coal Co., 7.25%, 8/01/14    505  516,362 
New World Resources NV, 7.38%, 5/15/15  EUR  285  368,080 
      884,442 

See Notes to Financial Statements.

30 SEMI-ANNUAL REPORT

APRIL 30, 2010


Schedule of Investments (continued)

BlackRock Floating Rate Income Trust (BGT)
(Percentages shown are based on Net Assets)

    Par   
Corporate Bonds    (000)  Value 
Oil, Gas & Consumable Fuels — 3.5%       
Coffeyville Resources LLC, 9.00%, 4/01/15 (a)  USD  380  $ 387,600 
Morgan Stanley Bank AG for OAO Gazprom,       
 9.63%, 3/01/13    5,730  6,503,550 
Petroleos de Venezuela SA, 5.25%, 4/12/17    4,000  2,595,000 
Repsol International Finance B.V., 6.50%, 3/27/14  EUR  1,500  2,230,947 
      11,717,097 
Paper & Forest Products — 1.8%       
Ainsworth Lumber Co. Ltd., 11.00%, 7/29/15 (a)(e)  USD  494  474,195 
NewPage Corp., 11.38%, 12/31/14    4,970  5,106,675 
Verso Paper Holdings LLC, Series B, 4.09%, 8/01/14 (f)    520  473,200 
      6,054,070 
Pharmaceuticals — 0.3%       
Angiotech Pharmaceuticals, Inc., 4.00%, 12/01/13 (f)    900  734,625 
Novasep Holding SAS, 9.63%, 12/15/16 (a)  EUR  159  216,993 
      951,618 
Tobacco — 0.6%       
Imperial Tobacco Finance Plc, 4.38%, 11/22/13    1,500  2,096,155 
Wireless Telecommunication Services — 1.3%       
Cricket Communications, Inc., 7.75%, 5/15/16  USD  1,950  2,023,125 
iPCS, Inc., 2.47%, 5/01/13 (f)    1,155  1,091,475 
Nextel Communications, Inc., Series E,       
 6.88%, 10/31/13    975  957,938 
Sprint Capital Corp., 8.38%, 3/15/12    475  501,125 
      4,573,663 
Total Corporate Bonds — 21.4%      72,311,224 
Floating Rate Loan Interests (f)       
Aerospace & Defense — 1.1%       
Hawker Beechcraft Acquisition Co., LLC:       
     Letter of Credit Facility Deposit, 2.29%, 3/26/14    79  67,284 
     Term Loan, 2.27% – 2.29%, 3/26/14    1,323  1,131,260 
TASC, Inc.:       
     Tranche A Term Loan, 5.50%, 12/18/14    829  828,750 
     Tranche B Term Loan, 5.75%, 12/18/15    1,646  1,650,676 
      3,677,970 
Airlines — 0.8%       
Delta Air Lines, Inc., Revolving Credit, 2.27%, 4/30/12    2,700  2,551,500 
Auto Components — 2.9%       
Affinion Group Holdings, Inc.:       
     Loan, 7.89%, 3/01/12    1,063  1,004,986 
     Term Loan B, 5.00%, 4/08/16    2,000  1,985,000 
Allison Transmission, Inc., Term Loan,       
 3.00% – 3.05%, 8/07/14    4,297  4,102,263 
Cooper-Standard Automotive, Inc.:       
     Revolving Credit, 5.03%, 12/23/10    45  44,812 
     Revolving Credit, 5.03%, 12/23/10    41  41,289 
     Revolving Credit, 5.03%, 12/23/10    83  82,745 
     Term Loan A, 3.03%, 12/23/11    35  35,288 
     Term Loan B, 5.03%, 12/03/11    107  107,599 
     Term Loan C, 5.03%, 12/23/11    268  268,778 
     Term Loan D, 3.03%, 12/23/11    298  298,775 
     Term Loan E, 4.03%, 12/23/11    148  148,277 
Dana Holding Corp., Term Advance,       
 4.50% – 4.58%, 1/30/15    854  845,215 
Dayco Products:       
     Term Loan B, 10.50%, 5/13/14    205  203,569 
     Term Loan C, 12.50%, 11/13/14    30  27,550 
Exide Technologies, Term Loan, 3.69%, 5/15/12  EUR  399  500,006 

    Par   
Floating Rate Loan Interests (f)    (000)  Value 
Auto Components (concluded)       
GPX International Tire Corp., Tranche B       
 Term Loan (b)(h):       
     12.25%, 3/30/12  USD  286  $ — 
     14.00%, 4/11/12    5   
      9,696,152 
Automobiles — 0.6%       
Ford Motor Co., Tranche B-1 Term Loan,       
 3.26% – 3.31%, 12/15/13    2,217  2,137,597 
Beverages — 1.2%       
Culligan International Co., Loan (Second Lien),       
 5.15%, 4/24/13  EUR  1,000  661,288 
Le-Nature’s, Inc., Tranche B Term Loan,       
 9.50%, 3/01/11 (b)(h)  USD  1,000  393,333 
SW Acquisitions Co., Inc., Term Loan, 5.75%, 6/01/16    2,993  3,007,463 
      4,062,084 
Building Products — 1.2%       
Building Materials Corp. of America, Term Loan       
 Advance, 3.06%, 2/22/14    517  508,220 
Goodman Global, Inc., Term Loan, 6.25%, 2/13/14    2,840  2,845,851 
Momentive Performance Materials (Blitz 06-103       
 GmbH), Tranche B-1 Term Loan, 2.56%, 12/04/13    590  557,815 
United Subcontractors, First Lien Term Loan,       
 1.79%, 6/30/15    179  152,293 
      4,064,179 
Capital Markets — 0.4%       
Marsico Parent Co., LLC, Term Loan, 5.31%, 12/15/14    380  274,586 
Nuveen Investments, Inc., Term Loan,       
 3.32% – 3.33%, 11/13/14    999  910,951 
      1,185,537 
Chemicals — 8.5%       
Brenntag Holding Gmbh & Co. KG:       
     Acquisition Facility 1, 4.07% – 4.14%, 1/20/14    232  231,120 
     Facility 3B (Second Lien), 6.47%, 7/17/15    1,000  995,500 
     Facility B2, 4.01% – 4.07%, 1/20/14    1,332  1,328,223 
     Facility B6A and B6B, 4.70%, 11/24/37  EUR  414  547,763 
     Second Lien Term Loan, 4.73%, 1/20/14    267  348,707 
CF Industries Holdings, Inc., Bridge Loan,       
 5.25%, 3/17/15  USD  5,120  5,146,675 
Chemtura Corp., Debtor in Possession Return of       
 Capital Term Loan, 6.00%, 1/26/11    2,000  2,010,000 
Cognis GmbH, Facility B (French):       
     2.65%, 11/16/13  EUR  197  255,777 
     2.65%, 11/17/13    803  1,043,383 
ElectricInvest Holding Co. Ltd. (Viridian Group PLC),       
 Junior Term Facility, 5.05%, 12/21/12  GBP  1,800  2,285,907 
Huish Detergents, Inc., Loan (Second Lien),       
 4.51%, 10/26/14  USD  750  728,437 
Ineos US Finance LLC, Term A4 Facility,       
 7.00%, 12/14/12    1,087  1,090,300 
Lyondell Chemical Co.:       
     Debtor in Possession Term Loan,       
     13.00%, 6/03/10    1,165  1,199,950 
     Exit Term Loan, 5.50%, 3/24/16    1,200  1,203,205 
Matrix Acquisition Corp. (MacDermid, Inc.),       
 Tranche C Term Loan, 2.62%, 12/15/13  EUR  1,547  1,874,136 
Nalco Co., Term Loan, 6.50%, 5/13/16  USD  1,886  1,899,501 
PQ Corp., Term Loan (First Lien),       
 3.53% – 3.59%, 7/30/14    2,702  2,487,654 
Rockwood Specialties Group, Inc., Term Loan H,       
 6.00%, 5/15/14    1,223  1,229,697 
Solutia, Inc., Term Loan, 4.75%, 3/01/17    2,775  2,791,187 
      28,697,122 

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

APRIL 30, 2010

31


Schedule of Investments (continued)

BlackRock Floating Rate Income Trust (BGT)
(Percentages shown are based on Net Assets)

    Par   
Floating Rate Loan Interests (f)    (000)  Value 
Commercial Services & Supplies — 3.6%       
ARAMARK Corp.:       
     Facility Letter of Credit, 2.16%, 1/26/14  USD  38  $ 36,932 
     Line of Credit, 3.53%, 7/26/16    68  67,299 
     Term Loan B, 3.54%, 7/26/16    1,031  1,023,318 
     US Term Loan, 2.17%, 1/26/14    572  561,574 
Advanced Disposal Services, Inc., Term B Loan,       
 6.00%, 1/14/15    1,247  1,254,668 
Casella Waste Systems, Inc., Term B Loan,       
 7.00%, 4/09/14    1,092  1,098,573 
International Lease Finance Corp.:       
     Term Loan 1, 6.75%, 2/23/15    1,625  1,653,437 
     Term Loan 2, 7.00%, 3/05/16    1,200  1,212,900 
John Maneely Co., Term Loan, 3.55%, 12/09/13    1,125  1,079,439 
Johnson Diversey, Inc., Tranche B Dollar,       
 5.50%, 11/24/15    1,097  1,104,108 
Quad Graphics, Term Loan B, 4.00%, 4/20/16    725  721,828 
SIRVA Worldwide, Inc., Loan (Second Lien),       
 12.00%, 5/12/15    142  35,390 
Synagro Technologies, Inc., Term Loan (First Lien),       
 2.26%-2.28%, 4/02/14    1,961  1,772,195 
West Corp., Incremental Term B-3 Loan,       
 7.25%, 10/24/13    632  636,408 
      12,258,069 
Communications Equipment — 0.1%       
Safenet, Inc., Loan (Second Lien), 6.26%, 4/12/15    500  475,000 
Construction & Engineering — 1.2%       
Brand Energy & Infrastructure Services, Inc.       
 (FR Brand Acquisition Corp.), Synthetic Letter of       
 Credit, Term Loan (First Lien), 2.69%, 2/07/14    500  460,000 
Safway Services, LLC, First Out Term Loan,       
 9.00%, 12/14/17    2,100  2,100,000 
Welding Services, Term Loan B, 5.50%, 3/23/16    1,450  1,457,250 
      4,017,250 
Consumer Finance — 2.5%       
American General Finance Corp., Term Loan,       
 7.25%, 4/16/16    3,500  3,506,125 
Chrysler Financial Corp., Second Lien Term Loan,       
 6.76%, 8/02/13    2,450  2,429,584 
Chrysler Financial Services Americas LLC,       
 Term Loan (First Lien), 4.26%