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UNITEDSTATES
SECURITIESANDEXCHANGECOMMISSION
Washington,D.C.20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number 811-21566

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

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: 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: 10/31/2010

Item 1 – Report to Stockholders




Annual Report

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)

October 31, 2010

Not FDIC Insured • No Bank Guarantee • May Lose Value



Table of Contents   
  Page 
Dear Shareholder  3 
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  35 
Statements of Operations  36 
Statements of Changes in Net Assets  37 
Statement of Cash Flows  39 
Financial Highlights  40 
Notes to Financial Statements  45 
Report of Independent Registered Public Accounting Firm  56 
Important Tax Information  57 
Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements  58 
Automatic Dividend Reinvestment Plans  62 
Officers and Directors  63 
Additional Information  66 

 

2 ANNUAL REPORT

OCTOBER 31, 2010



Dear Shareholder

The global economic recovery that began in 2009 has continued on its choppy course this year, delivering mixed but slowly improving economic data and

gradual if uneven improvement of investor sentiment. The risks of a double-dip recession continue to recede, but the economy remains mired in a slow-

growth environment. In the United States, the National Bureau of Economic Research declared that the “Great Recession” ended in June 2009. Spanning

December 2007 to June 2009, this marked the longest reported recession since the Great Depression. Structural problems of ongoing deleveraging and

weak spending among businesses and households weigh heavily on the pace of economic growth. The unemployment rate remains stubbornly high in the

face of sluggish job gains in the private sector. The US dollar, along with other developed market currencies, has experienced devaluation resulting from

aggressively easy monetary and fiscal policies. Given these long-standing conditions, the Federal Reserve Board has announced that additional policy

action will be taken to combat deflation and unemployment and promote economic growth.

The high levels of volatility experienced in global equity markets throughout 2009 continued into 2010 as mixed economic data and lingering credit issues

caused stocks to trade in both directions, but by the end of the first quarter, most markets had managed to post gains. The second quarter, in contrast,

brought higher levels of volatility and a “flight to quality” as investor sentiment was dominated by fears of a double-dip recession. Global equity markets saw

negative quarterly returns — and for many markets, the first significant downturn since the bull market began in March 2009. In the third quarter, economic

data turned less negative and strong corporate earnings reports became increasingly consistent. These factors, along with attractive valuations and expec-

tations for additional quantitative easing, drove equity markets higher, with most markets recapturing their second quarter losses. Stocks continued their

rally into the beginning of the fourth quarter, closing out the 12-month period in positive territory. International equities posted gains on both a six- and

12-month basis. In the United States, both large and small cap equities posted robust gains for the 12-month period, while on a six-month basis, large

cap stocks remained relatively flat and small caps turned slightly negative.

In fixed income markets, yields fluctuated but declined significantly over the past 12 months amid heightened uncertainty. Weak economic data, lingering

credit problems and, near the end of the period, the expectation of additional quantitative easing drove interest rates lower and bond prices higher.

Treasuries rallied over the period, modestly outperforming the credit spread sectors of the market. Corporate credit spreads benefited from the low interest

rate environment and high yield fixed income became increasingly attractive due to declining default rates and better-than-expected results on European

bank stress tests. Tax-exempt municipal bonds performed well over the 12-month period, driven primarily by technical factors including favorable supply-

and-demand dynamics.

Cash investments, as represented by the 3-month Treasury bill, returned only a fraction over 0% for the 12-month period as short-term interest rates

remained low. Yields on money market securities remain near all-time lows.

Against this backdrop, the major market averages posted the following returns:     
Total Returns as of October 31, 2010  6-month  12-month 
US large cap equities (S&P 500 Index)  0.74%  16.52% 
US small cap equities (Russell 2000 Index)  (1.24)  26.58 
International equities (MSCI Europe, Australasia, Far East Index)  5.74  8.36 
3-month Treasury bill (BofA Merrill Lynch 3-Month Treasury Bill Index)  0.08  0.12 
US Treasury securities (BofA Merrill Lynch 10-Year US Treasury Index)  10.63  10.03 
US investment grade bonds (Barclays Capital US Aggregate Bond Index)  5.33  8.01 
Tax-exempt municipal bonds (Barclays Capital Municipal Bond Index)  3.95  7.78 
US high yield bonds (Barclays Capital US Corporate High Yield 2% Issuer Capped Index)  6.73  19.10 

 

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

As global economic conditions continue to improve, investors across the world continue to face uncertainty about the future of economic growth. 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 October 31, 2010

BlackRock Credit Allocation Income Trust I, Inc.

Fund Overview

BlackRock Credit Allocation Income Trust I, Inc.’s (PSW) (the “Fund”) investment objective is to provide Common Shareholders with high current income. The
Fund seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets in credit-related securities, including,
but not limited to, investment grade corporate bonds, high yield bonds (commonly referred to as “junk” bonds), bank loans, preferred securities or convertible
bonds or derivatives with economic characteristics similar to these credit-related securities. The Fund may invest directly in such securities or synthetically
through the use of derivatives.

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 12 months ended October 31, 2010, the Fund returned 26.81% based on market price and 24.77% based on NAV. For the same period, the Lipper
closed-end Corporate Debt Funds (BBB-Rated) category posted an average return of 21.98% based on market price and 16.32% based on NAV. All returns
reflect reinvestment of dividends. The Fund's discount to NAV, which narrowed during the period, accounts for the difference between performance based on
price and performance based on NAV. The following discussion relates to performance based on NAV. The Fund benefited from its asset allocation within
preferred securities, which experienced a rebound during the period. In particular, allocations to institutional corporate securities and hybrid securities had a
positive impact as those sectors significantly outperformed $25-par preferred securities, in which the Fund was underweight. The Fund’s participation in pre-
ferred equity exchange tender offers from several of its holdings added to performance, and an overweight in the insurance sector proved beneficial. The
Fund reduced its market risk prior to May when the European sovereign debt crisis triggered a dip in risk asset prices. This defensive move contributed posi-
tively to relative performance. Conversely, the Fund’s bias toward investment-grade securities detracted from performance near the end of the period when
lower quality sectors rebounded on heightened expectations for a second round of quantitative easing from the Federal Reserve Board. The Fund frequently
held cash committed for pending transactions; the cash balance did not have a material impact on performance.

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 October 31, 2010 ($9.67)1  7.07% 
Current Monthly Distribution per Common Share2  $0.057 
Current Annualized Distribution per Common Share2  $0.684 
Leverage as of October 31, 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 A change in the distribution rate was declared on December 6, 2010. The Monthly Distribution per Common Share was decreased to $0.0495. The Yield on Closing Market Price,
Current Monthly Distribution per Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not
constant and is subject to further change in the future.
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:

  10/31/10  10/31/09  Change  High  Low 
Market Price  $ 9.67  $8.24  17.35%  $ 9.98  $7.93 
Net Asset Value  $10.75  $9.31  15.47%  $10.90  $9.22 

 

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

Portfolio Composition     
  10/31/10  10/31/09 
Corporate Bonds  69%  18% 
Preferred Securities  16  82 
U.S. Treasury Obligations  14   
Taxable Municipal Bonds  1   

 

Credit Quality Allocations4     
  10/31/10  10/31/09 
AAA5  14%   
AA/Aa  10   
A  23  26% 
BBB/Baa  38  62 
BB/Ba  12  8 
B  1  2 
Not Rated  2  2 

 

4 Using the higher of Standard & Poor’s (“S&P’s”) or Moody’s Investors Service
(“Moody’s”) ratings.
5 Includes US Treasury obligations that are deemed AAA by the Investment Advisor.

4 ANNUAL REPORT

OCTOBER 31, 2010



Fund Summary as of October 31, 2010

BlackRock Credit Allocation Income Trust II, Inc.

Fund Overview

BlackRock Credit Allocation Income Trust II, Inc.’s (PSY) (the “Fund”) primary investment objective is to provide Common Shareholders with current income.
The Fund seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets in credit-related securities, includ-
ing, but not limited to, investment grade corporate bonds, high yield bonds (commonly referred to as “junk” bonds), bank loans, preferred securities or convert-
ible bonds or derivatives with economic characteristics similar to these credit-related securities. The Fund may invest directly in such securities or synthetically
through the use of derivatives.

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 12 months ended October 31, 2010, the Fund returned 26.99% based on market price and 25.70% based on NAV. For the same period, the Lipper
closed-end Corporate Debt Funds (BBB-Rated) category posted an average return of 21.98% based on market price and 16.32% based on NAV. All returns
reflect reinvestment of dividends. The Fund's discount to NAV, which narrowed during the period, accounts for the difference between performance based on
price and performance based on NAV. The following discussion relates to performance based on NAV. The Fund benefited from its asset allocation within
preferred securities, which experienced a rebound during the period. In particular, allocations to institutional corporate securities and hybrid securities had a
positive impact as those sectors significantly outperformed $25-par preferred securities, in which the Fund was underweight. The Fund’s participation in pre-
ferred equity exchange tender offers from several of its holdings added to performance, and an overweight in the insurance sector proved beneficial. The
Fund reduced its market risk prior to May when the European sovereign debt crisis triggered a dip in risk asset prices. This defensive move contributed posi-
tively to relative performance. Conversely, the Fund’s bias toward investment-grade securities detracted from performance near the end of the period when
lower quality sectors rebounded on heightened expectations for a second round of quantitative easing from the Federal Reserve Board. The Fund frequently
held cash committed for pending transactions; the cash balance did not have a material impact on performance.

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 October 31, 2010 ($10.39)1  7.33% 
Current Monthly Distribution per Common Share2  $0.0635 
Current Annualized Distribution per Common Share2  $0.7620 
Leverage as of October 31, 20103  27% 

 

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 A change in the distribution rate was declared on December 6, 2010. The Monthly Distribution per Common Share was decreased to $0.0535. The Yield on Closing Market Price,
Current Monthly Distribution per Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not
constant and is subject to further change in the future.
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:

  10/31/10  10/31/09  Change  High  Low 
Market Price  $10.39  $ 8.90  16.74%  $10.70  $7.85 
Net Asset Value  $11.59  $10.03  15.55%  $11.69  $9.91 

 

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

Portfolio Composition     
  10/31/10  10/31/09 
Corporate Bonds  64%  3% 
Preferred Securities  19  97 
U.S Treasury Obligations  16   
Taxable Municipal Bonds  1   

 

Credit Quality Allocations4     
  10/31/10  10/31/09 
AAA5  16%   
AA/Aa  7  1% 
A  21  26 
BBB/Baa  42  56 
BB/Ba  12  14 
B  1  3 
Not Rated  1   

 

4 Using the higher of S&P’s or Moody’s ratings.
5 Includes US Treasury obligations that are deemed AAA by the Investment Advisor.

ANNUAL REPORT

OCTOBER 31, 2010

5



Fund Summary as of October 31, 2010

BlackRock Credit Allocation Income Trust III

Fund Overview

BlackRock Credit Allocation Income Trust III’s (BPP) (the “Fund”) investment objective is to provide high current income consistent with capital preserva-
tion. The Fund seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets in credit-related securities,
including, but not limited to, investment grade corporate bonds, high yield bonds (commonly referred to as “junk” bonds), bank loans, preferred securities or
convertible bonds or derivatives with economic characteristics similar to these credit-related securities. The Fund may invest directly in such securities or
synthetically through the use of derivatives.

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 12 months ended October 31, 2010, the Fund returned 22.25% based on market price and 21.52% based on NAV. For the same period, the Lipper
closed-end Corporate Debt Funds (BBB-Rated) category posted an average return of 21.98% based on market price and 16.32% based on NAV. All returns
reflect reinvestment of dividends. The Fund's discount to NAV, which narrowed during the period, accounts for the difference between performance based on
price and performance based on NAV. The following discussion relates to performance based on NAV. The Fund benefited from its asset allocation within
preferred securities, which experienced a rebound during the period. In particular, allocations to institutional corporate securities and hybrid securities had a
positive impact as those sectors significantly outperformed $25-par preferred securities, in which the Fund was underweight. The Fund’s participation in pre-
ferred equity exchange tender offers from several of its holdings added to performance, and an overweight in the insurance sector proved beneficial. The
Fund reduced its market risk prior to May when the European sovereign debt crisis triggered a dip in risk asset prices. This defensive move contributed posi-
tively to relative performance. Conversely, the Fund’s bias toward investment-grade securities detracted from performance near the end of the period when
lower quality sectors rebounded on heightened expectations for a second round of quantitative easing from the Federal Reserve Board. The Fund frequently
held cash committed for pending transactions; the cash balance did not have a material impact on performance.
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 October 31, 2010 ($11.23)1  7.11% 
Current Monthly Distribution per Common Share2  $0.0665 
Current Annualized Distribution per Common Share2  $0.7980 
Leverage as of October 31, 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 A change in the distribution rate was declared on December 6, 2010. The Monthly Distribution per Common Share was decreased to $0.054. The Yield on Closing Market Price,
Current Monthly Distribution per Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not
constant and is subject to further change in the future.
3 Represents 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:

  10/31/10  10/31/09  Change  High  Low 
Market Price  $11.23  $ 9.94  12.98%  $11.42  $ 8.15 
Net Asset Value  $12.41  $11.05  12.31%  $12.52  $10.92 

 

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

Portfolio Composition     
  10/31/10  10/31/09 
Corporate Bonds  72%  10% 
Preferred Securities  18  90 
Taxable Municipal Bonds  1   
U.S Treasury Obligations  9   

 

Credit Quality Allocations4     
  10/31/10  10/31/09 
AAA5  9%   
AA/Aa  8  4% 
A  26  28 
BBB/Baa  40  45 
BB/Ba  14  13 
B  1  5 
CCC/Caa  1  5 
Not Rated  1   

 

4 Using the higher of S&P’s or Moody’s ratings.
5 Includes US Treasury obligations that are deemed AAA by the Investment Advisor.

6 ANNUAL REPORT

OCTOBER 31, 2010



Fund Summary as of October 31, 2010

BlackRock Credit Allocation Income Trust IV

Fund Overview

BlackRock Credit Allocation Income Trust IV’s (BTZ) (the “Fund”) investment objective is to provide current income, current gains and capital apprecia-
tion. The Fund seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets in credit-related securi-
ties, including, but not limited to, investment grade corporate bonds, high yield bonds (commonly referred to as “junk” bonds), bank loans, preferred
securities or convertible bonds or derivatives with economic characteristics similar to these credit-related securities. The Fund may invest directly in such
securities or synthetically through the use of derivatives.

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 12 months ended October 31, 2010, the Fund returned 29.98% based on market price and 25.16% based on NAV. For the same period, the Lipper
closed-end Corporate Debt Funds (BBB-Rated) category posted an average return of 21.98% based on market price and 16.32% based on NAV. All returns
reflect reinvestment of dividends. The Fund's discount to NAV, which narrowed during the period, accounts for the difference between performance based on
price and performance based on NAV. The following discussion relates to performance based on NAV. The Fund benefited from its asset allocation within
preferred securities, which experienced a rebound during the period. In particular, allocations to institutional corporate securities and hybrid securities had a
positive impact as those sectors significantly outperformed $25-par preferred securities, in which the Fund was underweight. The Fund’s participation in pre-
ferred equity exchange tender offers from several of its holdings added to performance, and an overweight in the insurance sector proved beneficial. The
Fund reduced its market risk prior to May when the European sovereign debt crisis triggered a dip in risk asset prices. This defensive move contributed posi-
tively to relative performance. Conversely, the Fund’s bias toward investment-grade securities detracted from performance near the end of the period when
lower quality sectors rebounded on heightened expectations for a second round of quantitative easing from the Federal Reserve Board. The Fund frequently
held cash committed for pending transactions; the cash balance did not have a material impact on performance.

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 October 31, 2010 ($13.02)1  7.28% 
Current Monthly Distribution per Common Share2  $0.079 
Current Annualized Distribution per Common Share2  $0.948 
Leverage as of October 31, 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 A change in the distribution rate was declared on December 6, 2010. The Monthly Distribution per Common Share was decreased to $0.069. The Yield on Closing Market Price,
Current Monthly Distribution per Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not
constant and is subject to further change in the future.
3 Represents 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:

  10/31/10  10/31/09  Change  High  Low 
Market Price  $13.02  $10.96  18.80%  $13.38  $10.66 
Net Asset Value  $14.46  $12.64  14.40%  $14.71  $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     
  10/31/10  10/31/09 
Corporate Bonds  64%  6% 
Preferred Securities  19  84 
U.S. Treasury Obligations  15   
Taxable Municipal Bonds  2   
Common Stocks    10 

 

Credit Quality Allocations4     
  10/31/10  10/31/09 
AA/Aa  11%  4% 
A  22  33 
BBB/Baa  44  53 
BB/Ba  19  6 
B  2  4 
Not Rated  2   
4 Using the higher of S&P’s or Moody’s ratings.     

 

ANNUAL REPORT

OCTOBER 31, 2010

7



Fund Summary as of October 31, 2010

BlackRock Floating Rate Income Trust

Fund Overview

BlackRock Floating Rate Income Trust’s (BGT) (the “Fund”) primary investment objective is to provide a high level of current income. The Fund’s secondary
investment objective is to seek the preservation of capital. The Fund seeks to achieve its investment objectives by investing primarily, under normal condi-
tions, at least 80% of its assets in floating and variable rate instruments of US and non-US issuers, including a substantial portion of its assets in global
floating and variable rate securities including senior secured floating rate loans made to corporate and other business entities. Under normal market condi-
tions, the Fund expects that the average effective duration of its portfolio will be no more than 1.5 years. The Fund may invest directly in such securities or
synthetically through the use of derivatives.

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

Performance

For the 12 months ended October 31, 2010, the Fund returned 22.41% based on market price and 15.55% based on net asset value (“NAV”). For the same
period, the closed-end Lipper Loan Participation Funds category posted an average return of 28.36% based on market price and 13.42% based on NAV. All
returns reflect reinvestment of dividends. The Fund moved from a discount to NAV to a premium by period end, which accounts for the difference between per-
formance based on price and performance based on NAV. The following discussion relates to performance based on NAV. The Fund’s exposure to high yield
and emerging markets contributed positively to performance as these sectors performed well during the period. Given the advisor’s outlook for a continued slow
economic environment, the Fund focused on higher quality loan structures, borrowers and sectors, and favored companies with relatively stable cash flows and
the ability to generate steady income. Outside of this focus, the Fund invested in a few special situations and recovery stories, which boosted relative perform-
ance. Detracting modestly from performance was the Fund’s bias toward higher quality sectors and credits, which generally underperformed lower quality sec-
tors and credits over the period. In addition, the Fund maintained its leverage below the Lipper category average, which detracted from relative performance, as
would be expected when markets are advancing.
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 October 31, 2010 ($14.52)1  5.99% 
Current Monthly Distribution per Common Share2  $0.0725 
Current Annualized Distribution per Common Share2  $0.8700 
Leverage as of October 31, 20103  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 A change in the distribution rate was declared on December 6, 2010. The Monthly Distribution per Common Share was increased to $0.075. The Yield on Closing Market Price,
Current Monthly Distribution per Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not
constant and is subject to further change in the future.
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 borrow-
ings 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:

  10/31/10  10/31/09  Change  High  Low 
Market Price  $14.52  $12.58  15.42%  $15.93  $12.29 
Net Asset Value  $14.48  $13.29  8.95%  $14.48  $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     
  10/31/10  10/31/09 
Floating Rate Loan Interests  79%  76% 
Corporate Bonds  16  20 
Foreign Agency Obligations  4  3 
Other Interests  1  1 

 

Credit Quality Allocations4     
  10/31/10  10/31/09 
AAA/Aaa    16% 
A  4%  4 
BBB/Baa  21  27 
BB/Ba  23  17 
B  29  22 
CCC/Caa  1  6 
C    5 
D    1 
Not Rated  225  2 

 

4 Using the higher of S&P’s or Moody’s ratings.
5 The investment advisor has deemed certain of these non-rated securities to be of
investment grade quality. As of October 31, 2010, the market value of these securi-
ties was $606,918 representing 1% of the Fund's long-term investments.

8 ANNUAL REPORT

OCTOBER 31, 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 by borrowing through a credit facility,
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 each Fund’s 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
Common Shareholders and may reduce income to 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 October 31, 2010, the Funds had economic leverage
from Preferred Shares, reverse repurchase agreements and/or credit facility
borrowings as a percentage of their total managed assets as follows:

  Percent of 
  Leverage 
PSW  29% 
PSY  27% 
BPP  24% 
BTZ  24% 
BGT  22% 

 

ANNUAL REPORT

OCTOBER 31, 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
portfolio investments at inopportune times or at distressed values, may
limit the amount of appreciation the Funds can realize on an investment,
may result in lower dividends paid to shareholders or may cause the
Funds to hold an investment that they might otherwise sell. The Funds’
investments in these instruments are discussed in detail in the Notes to
Financial Statements.

10 ANNUAL REPORT

OCTOBER 31, 2010



Schedule of Investments October 31, 2010

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

(Percentages shown are based on Net Assets)

    Par   
Corporate Bonds    (000)  Value 
Aerospace & Defense — 5.1%       
BE Aerospace, Inc., 8.50%, 7/01/18  $ 560  $ 627,200 
Bombardier, Inc., 7.75%, 3/15/20 (a)    720  799,200 
Goodrich Corp., 3.60%, 2/01/21    1,400  1,390,508 
United Technologies Corp., 5.70%, 4/15/40    2,500  2,799,605 
      5,616,513 
Airlines — 0.7%       
Continental Airlines Pass-Through Certificates,       
Series 2009-2, Class B, 9.25%, 5/10/17    375  406,875 
Delta Air Lines, Inc., Series 02G1, 6.72%, 7/02/24    328  333,857 
      740,732 
Auto Components — 0.6%       
Icahn Enterprises LP:       
7.75%, 1/15/16    200  205,500 
8.00%, 1/15/18    500  514,375 
      719,875 
Beverages — 0.5%       
Constellation Brands, Inc., 7.25%, 5/15/17    460  504,275 
Building Products — 0.1%       
Building Materials Corp. of America, 7.00%, 2/15/20 (a)  125  130,313 
Capital Markets — 0.7%       
Ameriprise Financial, Inc., 5.30%, 3/15/20    750  823,352 
Chemicals — 0.3%       
CF Industries, Inc., 7.13%, 5/01/20    250  290,000 
Commercial Banks — 1.5%       
City National Corp., 5.25%, 9/15/20    550  565,729 
Comerica, Inc., 3.00%, 9/16/15    550  561,273 
SVB Financial Group, 5.38%, 9/15/20    550  558,174 
      1,685,176 
Commercial Services & Supplies — 4.9%       
Aviation Capital Group, 7.13%, 10/15/20 (a)    2,200  2,264,671 
Browning-Ferris Industries, Inc., 7.40%, 9/15/35    865  1,046,346 
Clean Harbors, Inc., 7.63%, 8/15/16    306  323,213 
Corrections Corp. of America, 7.75%, 6/01/17    775  842,812 
Waste Management, Inc., 6.13%, 11/30/39    900  972,842 
      5,449,884 
Communications Equipment — 0.9%       
Brocade Communications Systems, Inc.,       
6.88%, 1/15/20    700  752,500 
CC Holdings GS V LLC, 7.75%, 5/01/17 (a)    220  246,950 
      999,450 
Consumer Finance — 5.3%       
American Express Credit Corp., 2.75%, 9/15/15    1,400  1,411,956 
Capital One Bank USA NA, 8.80%, 7/15/19    775  983,015 
Inmarsat Finance Plc, 7.38%, 12/01/17 (a)    520  556,400 
SLM Corp., 4.00%, 7/25/14 (b)    3,200  2,902,240 
      5,853,611 
Containers & Packaging — 1.3%       
Ball Corp.:       
7.13%, 9/01/16    400  436,000 
6.75%, 9/15/20    505  555,500 
Bemis Co., Inc., 6.80%, 8/01/19    200  237,550 
Owens-Brockway Glass Container, Inc.,       
6.75%, 12/01/14    135  138,038 
Rock-Tenn Co., 9.25%, 3/15/16    75  82,125 
      1,449,213 

 

  Par   
Corporate Bonds  (000)  Value 
Diversified Financial Services — 3.1%     
Ally Financial Inc., 8.30%, 2/12/15 (a)  $ 800  $ 872,000 
Moody’s Corp., 6.06%, 9/07/17  2,500  2,585,597 
    3,457,597 
Diversified Telecommunication Services — 3.8%     
AT&T Inc., 6.30%, 1/15/38  1,000  1,100,498 
Frontier Communications Corp., 8.50%, 4/15/20  700  808,500 
Qwest Corp., 8.38%, 5/01/16  390  469,950 
Verizon Communications, Inc., 7.35%, 4/01/39  925  1,163,635 
Windstream Corp.:     
8.63%, 8/01/16  250  265,625 
7.88%, 11/01/17  400  437,000 
    4,245,208 
Electric Utilities — 1.7%     
Progress Energy Inc., 7.00%, 10/30/31  1,000  1,199,895 
Southern California Edison Co., 5.50%, 3/15/40  650  700,030 
    1,899,925 
Electronic Equipment, Instruments     
& Components — 0.2%     
Jabil Circuit Inc., 8.25%, 3/15/18  200  234,500 
Energy Equipment & Services — 1.3%     
Compagnie Generale de Geophysique-Veritas,     
7.75%, 5/15/17  270  282,825 
Halliburton Co., 7.45%, 9/15/39  950  1,208,161 
    1,490,986 
Food & Staples Retailing — 3.9%     
CVS Caremark Corp., 6.30%, 6/01/62 (b)  1,500  1,391,250 
Wal-Mart Stores, Inc., 6.20%, 4/15/38  2,500  2,887,460 
    4,278,710 
Food Products — 1.0%     
Kraft Foods, Inc.:     
6.50%, 8/11/17  385  462,704 
6.13%, 8/23/18  390  460,972 
Smithfield Foods, Inc., 10.00%, 7/15/14 (a)  160  184,400 
    1,108,076 
Gas Utilities — 0.9%     
Nisource Finance Corp., 6.13%, 3/01/22  900  1,023,467 
Health Care Equipment & Supplies — 3.0%     
Boston Scientific Corp., 7.38%, 1/15/40  690  798,685 
Fresenius US Finance II, Inc., 9.00%, 7/15/15 (a)  500  583,750 
Medtronic, Inc., 5.55%, 3/15/40  1,765  1,942,515 
    3,324,950 
Health Care Providers & Services — 2.7%     
Aetna, Inc., 6.75%, 12/15/37  800  903,894 
HCA, Inc., 8.50%, 4/15/19  400  450,000 
Tenet Healthcare Corp.:     
10.00%, 5/01/18  350  406,000 
8.88%, 7/01/19  250  281,250 
UnitedHealth Group, Inc., 6.88%, 2/15/38  800  927,997 
    2,969,141 
Household Durables — 0.3%     
Cemex Espana Luxembourg, 9.25%, 5/12/20 (a)  365  351,313 

 

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

 

ANNUAL REPORT

OCTOBER 31, 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 
Insurance — 6.2%       
The Allstate Corp., 7.45%, 5/16/19  $ 900  $ 1,128,320 
Aon Corp., 5.00%, 9/30/20    1,600  1,647,371 
Lincoln National Corp., 6.25%, 2/15/20    800  891,798 
Manulife Financial Corp., 4.90%, 9/17/20    1,000  987,629 
Northwestern Mutual Life Insurance, 6.06%, 3/30/40 (a)  900  994,929 
Principal Financial Group, Inc., 8.88%, 5/15/19    225  293,924 
Prudential Financial, Inc., 6.63%, 12/01/37    800  883,691 
      6,827,662 
Life Sciences Tools & Services — 1.9%       
Bio-Rad Laboratories, Inc., 8.00%, 9/15/16    865  945,012 
Life Technologies Corp., 6.00%, 3/01/20    1,000  1,123,704 
      2,068,716 
Machinery — 1.5%       
Ingersoll-Rand Global Holding Co., Ltd., 9.50%, 4/15/14  800  991,373 
Navistar International Corp., 8.25%, 11/01/21    600  657,750 
      1,649,123 
Media — 7.4%       
CSC Holdings LLC:       
8.50%, 6/15/15    400  440,500 
8.63%, 2/15/19    275  317,969 
Comcast Corp., 6.30%, 11/15/17    800  948,764 
Cox Communications, Inc., 8.38%, 3/01/39 (a)    800  1,051,845 
DISH DBS Corp., 7.00%, 10/01/13    450  481,500 
Gannett Co., Inc., 9.38%, 11/15/17    450  505,125 
Intelsat Corp., 9.25%, 6/15/16    350  374,500 
News America, Inc., 6.15%, 3/01/37    950  999,806 
Time Warner Cable, Inc., 6.75%, 6/15/39    925  1,060,190 
Time Warner, Inc., 7.70%, 5/01/32    950  1,169,198 
UPC Germany GmbH, 8.13%, 12/01/17 (a)    240  251,400 
Virgin Media Secured Finance Plc, 6.50%, 1/15/18    600  643,500 
      8,244,297 
Metals & Mining — 1.2%       
Phelps Dodge Corp., 7.13%, 11/01/27    700  783,427 
Teck Resources Ltd., 10.75%, 5/15/19    400  511,000 
United States Steel Corp., 7.38%, 4/01/20    40  41,750 
      1,336,177 
Multi-Utilities — 1.6%       
CenterPoint Energy, Inc.:       
5.95%, 2/01/17    750  838,220 
6.50%, 5/01/18    775  893,218 
      1,731,438 
Multiline Retail — 2.6%       
Dollar General Corp., 10.63%, 7/15/15    750  828,750 
JC Penney Co., Inc., 5.65%, 6/01/20    2,100  2,031,750 
      2,860,500 
Oil, Gas & Consumable Fuels — 4.0%       
BP Capital Markets Plc, 3.88%, 3/10/15    350  370,365 
Enbridge Energy Partners LP, 9.88%, 3/01/19    475  648,096 
Enterprise Products Operating LLC, 6.65%, 4/15/18    1,000  1,187,436 
Kinder Morgan Energy Partners LP, 6.85%, 2/15/20    1,000  1,199,347 
ONEOK Partners LP, 8.63%, 3/01/19    800  1,041,018 
      4,446,262 
Paper & Forest Products — 2.5%       
Georgia-Pacific LLC, 8.25%, 5/01/16 (a)    785  900,787 
International Paper Co.:       
7.50%, 8/15/21    775  945,066 
7.30%, 11/15/39    800  911,861 
      2,757,714 
Pharmaceuticals — 11.8%       
Abbott Laboratories:       
6.15%, 11/30/37    235  275,624 
6.00%, 4/01/39    1,177  1,360,395 

 

    Par   
Corporate Bonds    (000)  Value 
Pharmaceuticals (concluded)       
Bristol-Myers Squibb Co.:       
5.88%, 11/15/36  $ 2,014  $ 2,284,929 
6.13%, 5/01/38    588  689,213 
Eli Lilly & Co., 5.95%, 11/15/37    588  668,360 
GlaxoSmithKline Capital, Inc., 6.38%, 5/15/38    1,690  2,046,974 
Merck & Co., Inc., 6.50%, 12/01/33    475  587,136 
Pfizer, Inc., 7.20%, 3/15/39    2,500  3,319,435 
Schering-Plough Corp., 6.55%, 9/15/37    1,504  1,873,179 
      13,105,245 
Real Estate Investment Trusts (REITs) — 1.7%       
AvalonBay Communities, Inc., 6.10%, 3/15/20    800  936,083 
ERP Operating LP, 5.75%, 6/15/17    800  899,790 
      1,835,873 
Road & Rail — 1.1%       
Norfolk Southern Corp., 6.00%, 3/15/2105    1,200  1,199,896 
Semiconductors & Semiconductor Equipment — 1.2%     
Advanced Micro Devices, Inc., 7.75%, 8/01/20 (a)    190  201,400 
KLA-Tencor Corp., 6.90%, 5/01/18    461  529,050 
National Semiconductor Corp., 6.60%, 6/15/17    539  626,880 
      1,357,330 
Specialty Retail — 1.0%       
AutoNation, Inc., 6.75%, 4/15/18    445  460,575 
AutoZone, Inc., 7.13%, 8/01/18    300  364,910 
Limited Brands, Inc., 7.00%, 5/01/20    230  253,000 
      1,078,485 
Tobacco — 1.4%       
Altria Group, Inc., 10.20%, 2/06/39    1,050  1,543,888 
Wireless Telecommunication Services — 1.6%       
Cricket Communications, Inc., 7.75%, 5/15/16    155  167,013 
Nextel Communications, Inc., Series E, 6.88%, 10/31/13  535  539,012 
SBA Tower Trust, 5.10%, 4/15/42 (a)    1,000  1,075,608 
      1,781,633 
Total Corporate Bonds — 92.5%      102,470,506 
Preferred Securities       
Capital Trusts       
Capital Markets — 4.3%       
Ameriprise Financial, Inc., 7.52%, 6/01/66 (b)    500  520,000 
State Street Capital Trust III, 8.25% (b)(c)    725  738,231 
State Street Capital Trust IV, 1.29%, 6/01/67 (b)    4,740  3,497,319 
      4,755,550 
Commercial Banks — 1.9%       
First Empire Capital Trust II, 8.28%, 6/01/27    910  860,705 
National City Preferred Capital Trust I, 12.00% (b)(c)    300  334,947 
SunTrust Preferred Capital I, 5.85% (b)(c)    135  102,769 
USB Capital XIII Trust, 6.63%, 12/15/39    825  839,413 
      2,137,834 
Consumer Finance — 0.8%       
Capital One Capital V, 10.25%, 8/15/39    780  846,300 
Diversified Financial Services — 2.1%       
JPMorgan Chase Capital XXIII, 1.38%, 5/15/77 (b)    3,085  2,349,672 
Electric Utilities — 0.4%       
PPL Capital Funding, 6.70%, 3/30/67 (b)    500  480,000 
Insurance — 7.3%       
AXA SA, 6.38% (a)(b)(c)    1,000  940,000 
Ace Capital Trust II, 9.70%, 4/01/30    500  600,013 
The Allstate Corp., 6.50%, 5/15/67 (b)    500  496,250 
Chubb Corp., 6.38%, 3/29/67 (b)    500  513,125 
Farmers Exchange Capital, 7.05%, 7/15/28 (a)    500  490,275 

 

See Notes to Financial Statements.

12 ANNUAL REPORT

OCTOBER 31, 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 
Insurance (concluded)     
Great-West Life & Annuity Insurance Co.,     
7.15%, 5/16/46 (a)(b)  $ 500  $ 485,000 
Liberty Mutual Group, Inc., 10.75%, 6/15/88 (a)(b)  500  620,000 
Lincoln National Corp., 7.00%, 5/17/66 (b)  500  487,500 
MetLife, Inc., 6.40%, 12/15/66  500  490,000 
Reinsurance Group of America, 6.75%, 12/15/65 (b)  700  625,848 
The Travelers Cos., Inc., 6.25%, 3/15/67 (b)  500  520,000 
ZFS Finance (USA) (a)(b):     
Trust II, 6.45%, 12/15/65  1,800  1,728,000 
Trust IV, 5.88%, 5/09/32  146  139,189 
    8,135,200 
Multi-Utilities — 1.4%     
Dominion Resources Capital Trust I, 7.83%, 12/01/27  500  511,250 
Dominion Resources, Inc., 7.50%, 6/30/66 (b)  500  521,250 
Puget Sound Energy, Inc., Series A, 6.97%, 6/01/67 (b)  475  457,891 
    1,490,391 
Oil, Gas & Consumable Fuels — 1.2%     
Enterprise Products Operating LLC, 8.38%, 8/01/66 (b)  825  870,375 
TransCanada PipeLines Ltd., 6.35%, 5/15/67 (b)  500  478,750 
    1,349,125 
Total Capital Trusts — 19.4%    21,544,072 
Preferred Stocks  Shares   
Wireless Telecommunication Services — 2.6%     
Centaur Funding Corp., 9.08%  2,720  2,929,100 
Total Preferred Stocks — 2.6%    2,929,100 
Total Preferred Securities — 22.0%    24,473,172 
  Par   
Taxable Municipal Bonds  (000)   
Metropolitan Transportation Authority, RB,     
Build America Bonds, 6.55%, 11/15/31  $ 800  840,056 
State of California, GO, Build America Bonds,     
7.35%, 11/01/39  400  409,728 
State of Illinois, GO, Pension, 5.10%, 6/01/33  775  617,714 
Total Taxable Municipal Bonds — 1.7%    1,867,498 
U.S. Treasury Obligations     
U.S. Treasury Notes:     
1.75%, 7/31/15  8,000  8,238,160 
2.63%, 8/15/20 (d)  12,000  12,011,256 
Total U.S. Treasury Obligations — 18.3%    20,249,416 
Total Long-Term Investments     
(Cost — $142,780,701) — 134.5%    149,060,592 
Short-Term Securities  Shares   
BlackRock Liquidity Funds, TempFund,     
Institutional Class, 0.21% (e)(f)  5,884,098  5,884,098 
Total Short-Term Securities     
(Cost — $5,884,098) — 5.3%    5,884,098 
Total Investments (Cost — $148,664,799*) — 139.8%    154,944,690 
Liabilities in Excess of Other Assets — (3.5)%    (3,877,296) 
Preferred Shares, at Redemption Value — (36.3)%    (40,259,104) 
Net Assets Applicable to Common Shares — 100.0%    $110,808,290 

 

* The cost and unrealized appreciation (depreciation) of investments as of October 31,
2010, as computed for federal income tax purposes, were as follows:

Aggregate cost  $ 148,566,757 
Gross unrealized appreciation  $ 7,759,617 
Gross unrealized depreciation  (1,381,684) 
Net unrealized appreciation  $ 6,377,933 

 

(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) Security is perpetual in nature and has no stated maturity date.
(d) All or a portion of security has been pledged as collateral in connection with open
reverse repurchase agreements.
(e) Investments in companies considered to be an affiliate of the Fund during the
year, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as
amended, were as follows:

  Shares    Shares   
  Held at    Held at   
  October 31,  Net  October 31,   
Affiliate  2009  Activity  2010  Income 
BlackRock Liquidity         
Funds, TempFund,         
Institutional Class  33,286,296  (27,402,198)  5,884,098  $33,438 

 

(f) 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 October 31, 2010 were as follows: 
    Interest  Trade  Maturity  Net Closing  Face 
  Counterparty  Rate  Date  Date  Amount  Amount 
  Barclays           
  Capital Inc.  0.19%  9/30/10  Open  $2,032,843  $2,032,500 
  Barclays           
  Capital Inc.  0.22%  10/01/10  Open  4,050,768  4,050,000 
  Total        $6,083,611  $6,082,500 

 

  Financial futures contracts purchased as of October 31, 2010 were as follows: 
            Unrealized 
          Notional  Appreciation 
  Contracts  Issue  Exchange  Expiration  Value                        (Depreciation)       
  30  2-Year U.S.  Chicago Board  December     
  Treasury Bond       of Trade  2010  $6,577,088  $ 22,443 
  6  30-Year U.S.  Chicago Board  December     
  Treasury Bond        of Trade  2010  $ 805,324  (19,699) 
  Total          $ 2,744 

 

See Notes to Financial Statements.

ANNUAL REPORT

OCTOBER 31, 2010

13



Schedule of Investments (concluded)

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

Fair Value Measurements — Various inputs are used in determining the fair value of
investments and derivatives, 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
and derivatives)
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 October 31, 2010 in deter-
mining the fair valuation of the Fund’s investments and derivatives:

    Investments in Securities   
Valuation Inputs  Level 1  Level 2  Level 3  Total 
Assets:           
Investments in Securities:       
Long-Term           
Investments:           
Corporate           
Bonds      $102,470,506    $102,470,506 
Preferred           
Securities      24,473,172    24,473,172 
Taxable           
Municipal           
Bonds      1,867,498    1,867,498 
U.S. Treasury           
Obligations .      20,249,416    20,249,416 
Short-Term           
Securities  $ 5,884,098      5,884,098 
Total  $ 5,884,098  $149,060,592    $154,944,690 

 

Derivative Financial Instruments1

Valuation Inputs  Level 1  Level 2  Level 3  Total 
Assets:           
Interest rate           
contracts  $ 22,443      $ 22,443 
Liabilities:           
Interest rate           
contracts    (19,699)      (19,699) 
Total  $ 2,774      $ 2,744 

 

1 Derivative financial instruments are financial futures contracts, 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:

  Preferred 
  Securities 
Assets:   
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 
Purchases   
Sales  (752,587) 
Transfers in3   
Transfers out3   
Balance, as of October 31, 2010  $ — 

 

2 Included in the related net change in unrealized appreciation/depreciation
on the Statements of Operations. The net change in unrealized appreciation/
depreciation on securities still held at October 31, 2010 was $0.
3 The Fund’s policy is to recognize transfers in and transfers out as of the end of
the period of the event or the change in circumstances that caused the transfer.

See Notes to Financial Statements.

14 ANNUAL REPORT

OCTOBER 31, 2010



Schedule of Investments October 31, 2010

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

(Percentages shown are based on Net Assets)

    Par   
Corporate Bonds    (000)  Value 
Aerospace & Defense — 4.0%       
BE Aerospace, Inc., 8.50%, 7/01/18  $ 2,500  $ 2,800,000 
Bombardier, Inc., 7.75%, 3/15/20 (a)    3,205  3,557,550 
Goodrich Corp., 3.60%, 2/01/21    5,850  5,810,337 
United Technologies Corp., 5.70%, 4/15/40    6,250  6,999,012 
      19,166,899 
Airlines — 0.6%       
Continental Airlines Pass-Through Certificates,       
Series 2009-2, Class B, 9.25%, 5/10/17    1,625  1,763,125 
Delta Air Lines, Inc., Series 02G1, 6.72%, 7/02/24  1,279  1,301,485 
      3,064,610 
Auto Components — 0.6%       
Icahn Enterprises LP:       
7.75%, 1/15/16    880  904,200 
8.00%, 1/15/18    2,000  2,057,500 
      2,961,700 
Beverages — 0.5%       
Constellation Brands, Inc., 7.25%, 5/15/17    1,970  2,159,613 
Building Products — 0.1%       
Building Materials Corp. of America,       
7.00%, 2/15/20 (a)    525  547,313 
Capital Markets — 0.7%       
Ameriprise Financial, Inc., 5.30%, 3/15/20    3,250  3,567,857 
Chemicals — 0.3%       
CF Industries, Inc., 7.13%, 5/01/20    1,125  1,305,000 
Commercial Banks — 1.5%       
City National Corp., 5.25%, 9/15/20    2,350  2,417,205 
Comerica, Inc., 3.00%, 9/16/15    2,300  2,347,141 
SVB Financial Group, 5.38%, 9/15/20    2,300  2,334,185 
      7,098,531 
Commercial Services & Supplies — 5.0%       
Aviation Capital Group, 7.13%, 10/15/20 (a)    9,300  9,573,383 
Browning-Ferris Industries, Inc., 7.40%, 9/15/35    3,742  4,526,503 
Clean Harbors, Inc., 7.63%, 8/15/16    1,314  1,387,913 
Corrections Corp. of America, 7.75%, 6/01/17    3,375  3,670,312 
Waste Management, Inc., 6.13%, 11/30/39    4,000  4,323,744 
      23,481,855 
Communications Equipment — 0.9%       
Brocade Communications Systems, Inc.,       
6.88%, 1/15/20    2,965  3,187,375 
CC Holdings GS V LLC, 7.75%, 5/01/17 (a)    935  1,049,538 
      4,236,913 
Consumer Finance — 5.3%       
American Express Credit Corp., 2.75%, 9/15/15    5,850  5,899,959 
Capital One Bank USA NA, 8.80%, 7/15/19    3,325  4,217,453 
Inmarsat Finance Plc, 7.38%, 12/01/17 (a)    2,135  2,284,450 
SLM Corp., 4.00%, 7/25/14 (b)    13,900  12,606,605 
      25,008,467 
Containers & Packaging — 1.1%       
Ball Corp.:       
7.13%, 9/01/16    1,750  1,907,500 
6.75%, 9/15/20    2,210  2,431,000 
Owens-Brockway Glass Container, Inc.,       
6.75%, 12/01/14    570  582,825 
Rock-Tenn Co., 9.25%, 3/15/16    325  355,875 
      5,277,200 
Diversified Financial Services — 1.9%       
Ally Financial Inc., 8.30%, 2/12/15 (a)    2,500  2,725,000 
Moody’s Corp., 6.06%, 9/07/17    6,000  6,205,434 
      8,930,434 

 

    Par   
Corporate Bonds    (000)  Value 
Diversified Telecommunication Services — 4.1%       
AT&T Inc., 6.30%, 1/15/38  $ 4,000  $ 4,401,992 
Frontier Communications Corp., 8.50%, 4/15/20    3,100  3,580,500 
Qwest Corp., 8.38%, 5/01/16    2,795  3,367,975 
Verizon Communications, Inc., 7.35%, 4/01/39    4,025  5,063,386 
Windstream Corp.:       
8.63%, 8/01/16    1,000  1,062,500 
7.88%, 11/01/17    1,900  2,075,750 
      19,552,103 
Electric Utilities — 1.7%       
Progress Energy Inc., 7.00%, 10/30/31    4,000  4,799,580 
Southern California Edison Co., 5.50%, 3/15/40    2,850  3,069,362 
      7,868,942 
Electronic Equipment, Instruments       
& Components — 0.2%       
Jabil Circuit Inc., 8.25%, 3/15/18    800  938,000 
Energy Equipment & Services — 1.1%       
Compagnie Generale de Geophysique-Veritas,       
7.75%, 5/15/17    1,175  1,230,812 
Halliburton Co., 7.45%, 9/15/39    3,220  4,095,029 
      5,325,841 
Food & Staples Retailing — 3.4%       
CVS Caremark Corp., 6.30%, 6/01/62 (b)    6,600  6,121,500 
Wal-Mart Stores, Inc.:       
5.25%, 9/01/35    2,500  2,576,422 
6.20%, 4/15/38    6,250  7,218,650 
      15,916,572 
Food Products — 1.0%       
Kraft Foods, Inc.:       
6.50%, 8/11/17    1,665  2,001,045 
6.13%, 8/23/18    1,660  1,962,085 
Smithfield Foods, Inc., 10.00%, 7/15/14 (a)    700  806,750 
      4,769,880 
Gas Utilities — 1.0%       
Nisource Finance Corp., 6.13%, 3/01/22    4,000  4,548,744 
Health Care Equipment & Supplies — 1.5%       
Boston Scientific Corp., 7.38%, 1/15/40    2,935  3,397,303 
Fresenius US Finance II, Inc., 9.00%, 7/15/15 (a)  2,250  2,626,875 
Medtronic, Inc.:       
6.50%, 3/15/39    650  786,736 
5.55%, 3/15/40    412  453,437 
      7,264,351 
Health Care Providers & Services — 3.3%       
Aetna, Inc., 6.75%, 12/15/37    3,400  3,841,548 
HCA, Inc.:       
8.50%, 4/15/19    1,800  2,025,000 
7.25%, 9/15/20    2,550  2,789,062 
Tenet Healthcare Corp.:       
10.00%, 5/01/18    1,530  1,774,800 
8.88%, 7/01/19    1,125  1,265,625 
UnitedHealth Group, Inc., 6.88%, 2/15/38    3,400  3,943,990 
      15,640,025 
Household Durables — 0.3%       
Cemex Espana Luxembourg, 9.25%, 5/12/20 (a)  1,462  1,407,175 
Insurance — 6.2%       
The Allstate Corp., 7.45%, 5/16/19    5,600  7,020,658 
Aon Corp., 5.00%, 9/30/20    4,600  4,736,192 
Lincoln National Corp., 6.25%, 2/15/20    3,400  3,790,140 
Manulife Financial Corp., 4.90%, 9/17/20    4,700  4,641,856 
Northwestern Mutual Life Insurance, 6.06%, 3/30/40 (a)  3,800  4,200,813 
Principal Financial Group, Inc., 8.88%, 5/15/19    980  1,280,200 

 

See Notes to Financial Statements.

ANNUAL REPORT

OCTOBER 31, 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 
Insurance (concluded)       
Prudential Financial, Inc., 6.63%, 12/01/37  $ 3,400  $ 3,755,688 
Structured Asset Repackaged Trust, Series 2004-1,     
0.79%, 4/21/11 (a)(b)    108  103,025 
      29,528,572 
Life Sciences Tools & Services — 1.9%       
Bio-Rad Laboratories, Inc., 8.00%, 9/15/16    3,825  4,178,812 
Life Technologies Corp., 6.00%, 3/01/20    4,200  4,719,557 
      8,898,369 
Machinery — 1.5%       
Ingersoll-Rand Global Holding Co., Ltd.,       
9.50%, 4/15/14    3,400  4,213,334 
Navistar International Corp., 8.25%, 11/01/21    2,550  2,795,438 
      7,008,772 
Media — 7.5%       
CSC Holdings LLC:       
8.50%, 6/15/15    1,500  1,651,875 
8.63%, 2/15/19    1,200  1,387,500 
Comcast Corp., 6.30%, 11/15/17    3,400  4,032,247 
Cox Communications, Inc., 8.38%, 3/01/39 (a)    3,400  4,470,340 
DISH DBS Corp., 7.00%, 10/01/13    1,750  1,872,500 
Gannett Co., Inc., 9.38%, 11/15/17    1,800  2,020,500 
Intelsat Corp., 9.25%, 6/15/16    1,800  1,926,000 
News America, Inc., 6.15%, 3/01/37    4,200  4,420,193 
Time Warner Cable, Inc., 6.75%, 6/15/39    4,050  4,641,916 
Time Warner, Inc., 7.70%, 5/01/32    4,150  5,107,550 
UPC Germany GmbH, 8.13%, 12/01/17 (a)    1,030  1,078,925 
Virgin Media Secured Finance Plc, 6.50%, 1/15/18  2,675  2,868,938 
      35,478,484 
Metals & Mining — 1.2%       
Phelps Dodge Corp., 7.13%, 11/01/27    2,900  3,245,625 
Teck Resources Ltd., 10.75%, 5/15/19    1,750  2,235,625 
United States Steel Corp., 7.38%, 4/01/20    200  208,750 
      5,690,000 
Multi-Utilities — 1.6%       
CenterPoint Energy, Inc.:       
5.95%, 2/01/17    3,150  3,520,522 
6.50%, 5/01/18    3,350  3,861,009 
      7,381,531 
Multiline Retail — 2.6%       
Dollar General Corp., 10.63%, 7/15/15    3,275  3,618,875 
JC Penney Co., Inc., 5.65%, 6/01/20    9,000  8,707,500 
      12,326,375 
Oil, Gas & Consumable Fuels — 4.0%       
BP Capital Markets Plc, 3.88%, 3/10/15    1,500  1,587,278 
Enbridge Energy Partners LP, 9.88%, 3/01/19    2,100  2,865,267 
Enterprise Products Operating LLC, 6.65%, 4/15/18  4,200  4,987,231 
Kinder Morgan Energy Partners LP, 6.85%, 2/15/20  4,200  5,037,258 
ONEOK Partners LP, 8.63%, 3/01/19    3,400  4,424,328 
      18,901,362 
Paper & Forest Products — 2.5%       
Georgia-Pacific LLC, 8.25%, 5/01/16 (a)    3,400  3,901,500 
International Paper Co.:       
7.50%, 8/15/21    3,325  4,054,638 
7.30%, 11/15/39    3,400  3,875,408 
      11,831,546 
Pharmaceuticals — 8.9%       
Abbott Laboratories:       
6.15%, 11/30/37    588  689,646 
6.00%, 4/01/39    5,891  6,808,912 

 

    Par   
Corporate Bonds    (000)  Value 
Pharmaceuticals (concluded)       
Bristol-Myers Squibb Co.:       
5.88%, 11/15/36  $ 5,000  $ 5,672,615 
6.13%, 5/01/38    1,471  1,724,205 
Eli Lilly & Co., 5.95%, 11/15/37    1,471  1,672,036 
GlaxoSmithKline Capital, Inc., 6.38%, 5/15/38    7,250  8,781,396 
Merck & Co., Inc., 6.50%, 12/01/33    2,070  2,558,675 
Pfizer, Inc., 7.20%, 3/15/39    6,250  8,298,587 
Schering-Plough Corp., 6.55%, 9/15/37    4,572  5,694,266 
      41,900,338 
Real Estate Investment Trusts (REITs) — 1.6%       
AvalonBay Communities, Inc., 6.10%, 3/15/20    3,400  3,978,354 
ERP Operating LP, 5.75%, 6/15/17    3,405  3,829,729 
      7,808,083 
Road & Rail — 1.1%       
Norfolk Southern Corp., 6.00%, 3/15/2105    5,000  4,999,565 
Semiconductors & Semiconductor Equipment — 1.2%     
Advanced Micro Devices, Inc., 7.75%, 8/01/20 (a)  775  821,500 
KLA-Tencor Corp., 6.90%, 5/01/18    1,928  2,212,602 
National Semiconductor Corp., 6.60%, 6/15/17    2,334  2,714,540 
      5,748,642 
Specialty Retail — 1.0%       
AutoNation, Inc., 6.75%, 4/15/18    1,965  2,033,775 
AutoZone, Inc., 7.13%, 8/01/18    1,350  1,642,095 
Limited Brands, Inc., 7.00%, 5/01/20    980  1,078,000 
      4,753,870 
Tobacco — 1.4%       
Altria Group, Inc., 10.20%, 2/06/39    4,400  6,469,628 
Wireless Telecommunication Services — 1.6%       
Cricket Communications, Inc., 7.75%, 5/15/16    670  721,925 
Nextel Communications, Inc., Series E,       
6.88%, 10/31/13    2,340  2,357,550 
SBA Tower Trust, 5.10%, 4/15/42 (a)    4,225  4,544,444 
      7,623,919 
Total Corporate Bonds — 85.9%      406,387,081 
Preferred Securities       
Capital Trusts       
Capital Markets — 4.0%       
Ameriprise Financial, Inc., 7.52%, 6/01/66 (b)    2,500  2,600,000 
State Street Capital Trust III, 8.25% (b)(c)    2,920  2,973,290 
State Street Capital Trust IV, 1.29%, 6/01/67 (b)  18,235  13,454,348 
      19,027,638 
Commercial Banks — 5.6%       
Bank One Capital III, 8.75%, 9/01/30    2,000  2,346,242 
First Empire Capital Trust II, 8.28%, 6/01/27    3,630  3,433,363 
HSBC Capital Funding LP/Jersey Channel Islands,     
10.18% (a)(b)(c)    4,835  6,358,025 
National City Preferred Capital Trust I, 12.00% (b)(c)  1,100  1,228,139 
NationsBank Capital Trust III, 0.84%, 1/15/27 (b)  13,470  9,454,458 
SunTrust Preferred Capital I, 5.85% (b)(c)    307  233,704 
USB Capital XIII Trust, 6.63%, 12/15/39    3,500  3,561,145 
      26,615,076 
Consumer Finance — 0.8%       
Capital One Capital V, 10.25%, 8/15/39    3,190  3,461,150 
Diversified Financial Services — 1.2%       
JPMorgan Chase Capital XXIII, 1.38%, 5/15/77 (b)  7,500  5,712,330 

 

See Notes to Financial Statements.

16 ANNUAL REPORT

OCTOBER 31, 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 
Electric Utilities — 0.6%       
PPL Capital Funding, 6.70%, 3/30/67 (b)  $ 3,000  $ 2,880,000 
Insurance — 9.0%       
AXA SA, 6.38% (a)(b)(c)    3,000  2,820,000 
Ace Capital Trust II, 9.70%, 4/01/30    2,500  3,000,067 
The Allstate Corp., 6.50%, 5/15/67 (b)    5,000  4,962,500 
Aon Corp., 8.21%, 1/01/27    2,500  2,632,525 
Chubb Corp., 6.38%, 3/29/67 (b)    2,000  2,052,500 
Farmers Exchange Capital, 7.05%, 7/15/28 (a)    2,500  2,451,378 
GE Global Insurance Holding Corp., 7.75%, 6/15/30  2,000  2,326,548 
Liberty Mutual Group, Inc., 10.75%, 6/15/88 (a)(b)  2,925  3,627,000 
Lincoln National Corp., 7.00%, 5/17/66 (b)    3,350  3,266,250 
MetLife, Inc., 6.40%, 12/15/66    3,325  3,258,500 
Nationwide Life Global Funding I, 6.75%, 5/15/67  3,500  3,296,142 
Principal Life Insurance Co., 8.00%, 3/01/44 (a)  2,500  2,574,733 
Reinsurance Group of America, 6.75%, 12/15/65 (b)  3,000  2,682,204 
The Travelers Cos., Inc., 6.25%, 3/15/67 (b)    3,000  3,120,000 
ZFS Finance (USA) Trust IV, 5.88%, 5/09/32 (a)(b)  379  361,320 
      42,431,667 
Multi-Utilities — 1.4%       
Dominion Resources Capital Trust I,       
7.83%, 12/01/27    2,500  2,556,252 
Dominion Resources, Inc., 7.50%, 6/30/66 (b)    3,900  4,065,750 
      6,622,002 
Oil, Gas & Consumable Fuels — 1.3%       
Enterprise Products Operating LLC,       
8.38%, 8/01/66 (b)    2,000  2,110,000 
TransCanada PipeLines Ltd., 6.35%, 5/15/67 (b)  4,000  3,830,000 
      5,940,000 
Road & Rail — 0.8%       
BNSF Funding Trust I, 6.61%, 12/15/55 (b)    3,750  3,843,750 
Total Capital Trusts — 24.7%      116,533,613 
Preferred Stocks    Shares   
Commercial Banks — 0.4%       
First Tennessee Bank NA, 3.75% (a)    2,826  1,752,120 
Wireless Telecommunication Services — 0.5%       
Centaur Funding Corp., 9.08%    2,423  2,609,268 
Total Preferred Stocks — 0.9%      4,361,388 
Total Preferred Securities — 25.6%      120,895,001 
    Par   
Taxable Municipal Bonds    (000)   
Metropolitan Transportation Authority, RB,       
Build America Bonds, 6.55%, 11/15/31  $ 3,450  3,622,741 
State of California, GO, Build America Bonds,       
7.35%, 11/01/39    1,725  1,766,952 
State of Illinois, GO, Pension, 5.10%, 6/01/33    3,475  2,769,749 
Total Taxable Municipal Bonds — 1.7%      8,159,442 
U.S. Treasury Obligations       
U.S. Treasury Notes:       
1.75%, 7/31/15    70,000  72,083,900 
2.63%, 8/15/20 (d)    25,000  25,023,450 
Total U.S. Treasury Obligations — 20.5%      97,107,350 
Total Long-Term Investments       
(Cost — $612,196,614) — 133.7%      632,548,874 

 

Short-Term Securities  Shares  Value 
BlackRock Liquidity Funds, TempFund,     
Institutional Class, 0.21% (e)(f)  1,483,567  $ 1,483,567 
Total Short-Term Securities     
(Cost — $1,483,567) — 0.3%    1,483,567 
Total Investments (Cost — $613,680,181*) — 134.0%    634,032,441 
Other Assets Less Liabilities — 1.7%    8,043,463 
Preferred Shares, at Redemption Value — (35.7)%    (169,091,462) 
Net Assets Applicable to Common Shares — 100.0%    $472,984,442 

 

* The cost and unrealized appreciation (depreciation) of investments as of October 31,
2010, as computed for federal income tax purposes, were as follows:

Aggregate cost  $ 613,286,501 
Gross unrealized appreciation  $ 30,704,221 
Gross unrealized depreciation  (9,958,281) 
Net unrealized appreciation  $ 20,745,940 

 

(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) Security is perpetual in nature and has no stated maturity date.
(d) All or a portion of security has been pledged as collateral in connection with open
reverse repurchase agreements.
(e) Investments in companies considered to be an affiliate of the Fund during the
year, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as
amended, were as follows:

  Shares    Shares   
  Held at    Held at   
  October 31,  Net  October 31,   
Affiliate  2009  Activity  2010  Income 
BlackRock Liquidity         
Funds, TempFund,         
Institutional Class  41,019,397  (39,535,830)  1,483,567  $112,587 

 

(f) 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 October 31, 2010 were as follows: 
    Interest  Trade  Maturity  Net Closing  Face 
  Counterparty  Rate  Date  Date  Amount  Amount 
  Bank of America           
  Securities LLC  0.16%  10/28/10  11/01/10  $ 2,005,027  $ 2,005,000 
  Bank of America           
  Securities LLC  0.16%  10/29/10  11/02/10  $ 2,015,000  $ 2,015,000 
  Total        $ 4,020,027  $ 4,020,000 

 

  Financial futures contracts purchased as of October 31, 2010 were as follows: 
        Notional                      Unrealized  
  Contracts                          Issue  Exchange  Expiration  Value                      Depreciation 
  20                               30-Year U.S.  Chicago Board  December   
                                  Treasury Bond  of Trade  2010                     $2,684,413                  $ (65,663) 

 

See Notes to Financial Statements.

ANNUAL REPORT

OCTOBER 31, 2010

17



Schedule of Investments (concluded)

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

Fair Value Measurements — Various inputs are used in determining the fair value of
investments and derivatives, 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 and
derivatives)
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 October 31, 2010 in deter-
mining the fair valuation of the Fund’s investments and derivatives:

Valuation Inputs  Level 1  Level 2  Level 3  Total 
Assets:           
Investments in Securities:       
Long-Term           
Investments:           
Corporate           
Bonds      $406,284,056  $ 103,025  $406,387,081 
Preferred           
Securities      120,895,001    120,895,001 
Taxable           
Municipal           
Bonds      8,159,442    8,159,442 
U.S. Treasury           
Obligations .      97,107,350    97,107,350 
Short-Term           
Securities  $ 1,483,567      1,483,567 
Total  $ 1,483,567  $632,445,849  $ 103,025  $634,032,441 
Derivative Financial Instruments1

Valuation Inputs  Level 1  Level 2  Level 3  Total 
Liabilities:           
Interest rate           
contracts  $ (65,663)      $ (65,663) 

 

1 Derivative financial instruments are financial futures contracts, 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:     
  Corporate  Preferred   
  Bonds  Securities  Total 
Assets:       
Balance, as of October 31, 2009  $ 266,121  $ 16,071,150  $ 16,337,271 
Accrued discounts/premiums       
Net realized gain (loss)  60  (8,388,676)  (8,388,616) 
Net change in unrealized appreciation/depreciation2  27,409  11,957,639  11,985,048 
Purchases       
Sales  (190,565)  (19,640,113)  (19,830,678) 
Transfers in3       
Transfers out3       
Balance, as of October 31, 2010  $ 103,025    $ 103,025 

 

2 Included in the related net change in unrealized appreciation/depreciation on the Statements of Operations. The net change in unrealized appreciation/depreciation on
securities still held at October 31, 2010 was $27,409.
3 The Fund’s policy is to recognize transfers in and transfers out as of the end of the period of the event or the change in circumstances that caused the transfer.

See Notes to Financial Statements.

18 ANNUAL REPORT

OCTOBER 31, 2010



Schedule of Investments October 31, 2010

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  $ 54,708 
Total Common Stocks — 0.0%      54,708 
    Par   
Corporate Bonds    (000)   
Aerospace & Defense — 3.7%       
BE Aerospace, Inc., 8.50%, 7/01/18  $ 1,215  1,360,800 
Bombardier, Inc., 7.75%, 3/15/20 (b)    1,405  1,559,550 
Goodrich Corp., 3.60%, 2/01/21    2,750  2,731,355 
United Technologies Corp., 5.70%, 4/15/40    2,500  2,799,605 
      8,451,310 
Airlines — 0.7%       
Continental Airlines Pass-Through Certificates,       
Series 2009-2, Class B, 9.25%, 5/10/17    775  840,875 
Delta Air Lines, Inc., Series 02G1, 6.72%, 7/02/24    656  667,713 
      1,508,588 
Auto Components — 0.6%       
Icahn Enterprises LP:       
7.75%, 1/15/16    420  431,550 
8.00%, 1/15/18    1,000  1,028,750 
      1,460,300 
Beverages — 0.5%       
Constellation Brands, Inc., 7.25%, 5/15/17    955  1,046,919 
Building Products — 0.1%       
Building Materials Corp. of America, 7.00%, 2/15/20 (b)  250  260,625 
Capital Markets — 0.7%       
Ameriprise Financial, Inc., 5.30%, 3/15/20    1,500  1,646,703 
Chemicals — 0.3%       
CF Industries, Inc., 7.13%, 5/01/20    525  609,000 
Commercial Banks — 0.9%       
RESPARCS Funding LP I, 8.00% (a)(c)(d)    4,000  1,960,000 
Commercial Services & Supplies — 5.0%       
Aviation Capital Group, 7.13%, 10/15/20 (b)    4,500  4,632,282 
Browning-Ferris Industries, Inc., 7.40%, 9/15/35    1,824  2,206,398 
Clean Harbors, Inc., 7.63%, 8/15/16    630  665,438 
Corrections Corp. of America, 7.75%, 6/01/17    1,600  1,740,000 
Waste Management, Inc., 6.13%, 11/30/39    1,950  2,107,825 
      11,351,943 
Communications Equipment — 0.9%       
Brocade Communications Systems, Inc., 6.88%, 1/15/20  1,450  1,558,750 
CC Holdings GS V LLC, 7.75%, 5/01/17 (b)    440  493,900 
      2,052,650 
Consumer Finance — 5.3%       
American Express Credit Corp., 2.75%, 9/15/15    2,900  2,924,766 
Capital One Bank USA NA, 8.80%, 7/15/19    1,625  2,061,161 
Inmarsat Finance Plc, 7.38%, 12/01/17 (b)    1,020  1,091,400 
SLM Corp., 4.00%, 7/25/14 (e)    6,600  5,985,870 
      12,063,197 
Containers & Packaging — 1.2%       
Ball Corp.:       
7.13%, 9/01/16    850  926,500 
6.75%, 9/15/20    1,070  1,177,000 
Impress Holdings BV, 3.41%, 9/15/13 (b)(e)    240  238,800 
Owens-Brockway Glass Container, Inc., 6.75%, 12/01/14  270  276,075 
Rock-Tenn Co., 9.25%, 3/15/16    150  164,250 
      2,782,625 

 

  Par   
Corporate Bonds  (000)  Value 
Diversified Financial Services — 1.1%     
Ally Financial Inc., 8.30%, 2/12/15 (b)  $ 1,000  $ 1,090,000 
Moody’s Corp., 6.06%, 9/07/17  1,500  1,551,358 
    2,641,358 
Diversified Telecommunication Services — 4.1%     
AT&T Inc., 6.30%, 1/15/38  2,000  2,200,996 
Frontier Communications Corp., 8.50%, 4/15/20  1,500  1,732,500 
Qwest Corp., 8.38%, 5/01/16  1,360  1,638,800 
Verizon Communications, Inc., 7.35%, 4/01/39  1,950  2,453,069 
Windstream Corp.:     
8.63%, 8/01/16  320  340,000 
7.88%, 11/01/17  900  983,250 
    9,348,615 
Electric Utilities — 1.7%     
Progress Energy Inc., 7.00%, 10/30/31  2,000  2,399,790 
Southern California Edison Co., 5.50%, 3/15/40  1,400  1,507,757 
    3,907,547 
Electronic Equipment, Instruments     
& Components — 0.2%     
Jabil Circuit Inc., 8.25%, 3/15/18  400  469,000 
Energy Equipment & Services — 1.3%     
Compagnie Generale de Geophysique-Veritas,     
7.75%, 5/15/17  555  581,362 
Halliburton Co., 7.45%, 9/15/39  1,945  2,473,550 
    3,054,912 
Food & Staples Retailing — 3.3%     
CVS Caremark Corp., 6.30%, 6/01/62 (e)  3,100  2,875,250 
Wal-Mart Stores, Inc.:     
5.25%, 9/01/35  1,850  1,906,553 
6.20%, 4/15/38  2,500  2,887,460 
    7,669,263 
Food Products — 1.0%     
Kraft Foods, Inc.:     
6.50%, 8/11/17  800  961,463 
6.13%, 8/23/18  800  945,583 
Smithfield Foods, Inc., 10.00%, 7/15/14 (b)  350  403,375 
    2,310,421 
Gas Utilities — 1.0%     
Nisource Finance Corp., 6.13%, 3/01/22  1,950  2,217,513 
Health Care Equipment & Supplies — 2.2%     
Boston Scientific Corp., 7.38%, 1/15/40  1,425  1,649,457 
Fresenius US Finance II, Inc., 9.00%, 7/15/15 (b)  1,000  1,167,500 
Medtronic, Inc.:     
6.50%, 3/15/39  300  363,109 
5.55%, 3/15/40  1,765  1,942,515 
    5,122,581 
Health Care Providers & Services — 3.4%     
Aetna, Inc., 6.75%, 12/15/37  1,725  1,949,021 
HCA, Inc.:     
8.50%, 4/15/19  800  900,000 
7.25%, 9/15/20  1,250  1,367,187 
Tenet Healthcare Corp.:     
10.00%, 5/01/18  745  864,200 
8.88%, 7/01/19  550  618,750 
UnitedHealth Group, Inc., 6.88%, 2/15/38  1,725  2,000,995 
    7,700,153 
Household Durables — 0.3%     
Cemex Espana Luxembourg, 9.25%, 5/12/20 (b)  723  695,888 

 

See Notes to Financial Statements.

ANNUAL REPORT

OCTOBER 31, 2010

19



Schedule of Investments (continued)

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

  Par   
Corporate Bonds  (000)  Value 
Insurance — 2.8%     
Lincoln National Corp., 6.25%, 2/15/20  $ 1,725  $ 1,922,938 
Northwestern Mutual Life Insurance,     
6.06%, 3/30/40 (b)  1,800  1,989,859 
Principal Financial Group, Inc., 8.88%, 5/15/19  475  620,505 
Prudential Financial, Inc., 6.63%, 12/01/37  1,725  1,905,459 
    6,438,761 
Life Sciences Tools & Services — 1.9%     
Bio-Rad Laboratories, Inc., 8.00%, 9/15/16  1,830  1,999,275 
Life Technologies Corp., 6.00%, 3/01/20  2,000  2,247,408 
    4,246,683 
Machinery — 1.7%     
AGY Holding Corp., 11.00%, 11/15/14  390  357,825 
Ingersoll-Rand Global Holding Co., Ltd.,     
9.50%, 4/15/14  1,725  2,137,648 
Navistar International Corp., 8.25%, 11/01/21  1,245  1,364,831 
    3,860,304 
Media — 7.6%     
CMP Susquehanna Corp., 3.64%, 5/15/14 (a)(b)  9  180 
CSC Holdings LLC:     
8.50%, 6/15/15  800  881,000 
8.63%, 2/15/19  580  670,625 
Comcast Corp., 6.30%, 11/15/17  1,725  2,045,772 
Cox Communications, Inc., 8.38%, 3/01/39 (b)  1,725  2,268,040 
DISH DBS Corp., 7.00%, 10/01/13  850  909,500 
Gannett Co., Inc., 9.38%, 11/15/17  900  1,010,250 
Intelsat Corp., 9.25%, 6/15/16  850  909,500 
News America, Inc., 6.15%, 3/01/37  2,000  2,104,854 
Time Warner Cable, Inc., 6.75%, 6/15/39  1,950  2,234,997 
Time Warner, Inc., 7.70%, 5/01/32  2,000  2,461,470 
UPC Germany GmbH, 8.13%, 12/01/17 (b)  505  528,988 
Virgin Media Secured Finance Plc, 6.50%, 1/15/18  1,300  1,394,250 
    17,419,426 
Metals & Mining — 1.2%     
Phelps Dodge Corp., 7.13%, 11/01/27  1,400  1,566,854 
Teck Resources Ltd., 10.75%, 5/15/19  850  1,085,875 
United States Steel Corp., 7.38%, 4/01/20  95  99,156 
    2,751,885 
Multi-Utilities — 1.5%     
CenterPoint Energy, Inc.:     
5.95%, 2/01/17  1,500  1,676,439 
6.50%, 5/01/18  1,600  1,844,064 
    3,520,503 
Multiline Retail — 2.5%     
Dollar General Corp., 10.63%, 7/15/15  1,550  1,712,750 
JC Penney Co., Inc., 5.65%, 6/01/20  4,100  3,966,750 
    5,679,500 
Oil, Gas & Consumable Fuels — 4.0%     
BP Capital Markets Plc, 3.88%, 3/10/15  700  740,729 
Enbridge Energy Partners LP, 9.88%, 3/01/19  1,000  1,364,413 
Enterprise Products Operating LLC, 6.65%, 4/15/18  2,000  2,374,872 
Kinder Morgan Energy Partners LP, 6.85%, 2/15/20  2,000  2,398,694 
ONEOK Partners LP, 8.63%, 3/01/19  1,725  2,244,696 
    9,123,404 
Paper & Forest Products — 3.0%     
Georgia-Pacific LLC, 8.25%, 5/01/16 (b)  1,635  1,876,163 
International Paper Co.:     
7.50%, 8/15/21  1,625  1,981,590 
8.70%, 6/15/38  900  1,149,647 
7.30%, 11/15/39  1,725  1,966,200 
    6,973,600 

 

Corporate Bonds  (000)  Value 
Pharmaceuticals — 8.0%     
Abbott Laboratories:     
6.15%, 11/30/37  $ 235  $ 275,624 
6.00%, 4/01/39  2,777  3,209,701 
Bristol-Myers Squibb Co.:     
5.88%, 11/15/36  1,994  2,262,239 
6.13%, 5/01/38  588  689,213 
Eli Lilly & Co., 5.95%, 11/15/37  588  668,360 
GlaxoSmithKline Capital, Inc., 6.38%, 5/15/38  3,460  4,190,845 
Merck & Co., Inc., 6.50%, 12/01/33  990  1,223,714 
Pfizer, Inc., 7.20%, 3/15/39  2,500  3,319,435 
Schering-Plough Corp., 6.55%, 9/15/37  1,979  2,464,775 
    18,303,906 
Professional Services — 0.0%     
FTI Consulting, Inc., 7.75%, 10/01/16  100  105,875 
Real Estate Investment Trusts (REITs) — 1.7%     
AvalonBay Communities, Inc., 6.10%, 3/15/20  1,725  2,018,429 
ERP Operating LP, 5.75%, 6/15/17  1,715  1,928,924 
    3,947,353 
Road & Rail — 1.1%     
Norfolk Southern Corp., 6.00%, 3/15/2105  2,500  2,499,783 
Semiconductors & Semiconductor Equipment — 1.2%     
Advanced Micro Devices, Inc., 7.75%, 8/01/20 (b)  400  424,000 
KLA-Tencor Corp., 6.90%, 5/01/18  918  1,053,511 
National Semiconductor Corp., 6.60%, 6/15/17  1,123  1,306,096 
    2,783,607 
Specialty Retail — 1.0%     
AutoNation, Inc., 6.75%, 4/15/18  940  972,900 
AutoZone, Inc., 7.13%, 8/01/18  650  790,639 
Limited Brands, Inc., 7.00%, 5/01/20  470  517,000 
    2,280,539 
Tobacco — 1.4%     
Altria Group, Inc., 10.20%, 2/06/39  2,150  3,161,295 
Wireless Telecommunication Services — 1.8%     
Cricket Communications, Inc., 7.75%, 5/15/16  325  350,188 
Nextel Communications, Inc., Series E,     
6.88%, 10/31/13  1,105  1,113,287 
SBA Tower Trust, 5.10%, 4/15/42 (b)  2,500  2,689,020 
    4,152,495 
Total Corporate Bonds — 81.9%    187,580,030 
Preferred Securities     
  Par   
Capital Trusts  (000)   
Capital Markets — 3.7%     
State Street Capital Trust III, 8.25% (c)(e)  $ 1,385  1,410,276 
State Street Capital Trust IV, 1.29%, 6/01/67 (e)  9,675  7,138,515 
    8,548,791 
Commercial Banks — 4.6%     
CBA Capital Trust I, 5.81% (b)(c)  2,000  1,999,204 
FCB/NC Capital Trust I, 8.05%, 3/01/28  1,100  1,086,276 
NBP Capital Trust III, 7.38% (c)  2,000  1,760,000 
National City Preferred Capital Trust I, 12.00% (c)(e)  600  669,894 
SunTrust Preferred Capital I, 5.85% (c)(e)  303  230,659 
USB Capital XIII Trust, 6.63%, 12/15/39  1,725  1,755,136 
Westpac Capital Trust IV, 5.26% (b)(c)(e)  3,000  2,945,400 
    10,446,569 

 

See Notes to Financial Statements.

20 ANNUAL REPORT

OCTOBER 31, 2010



Schedule of Investments (continued)

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

  Par   
Capital Trusts  (000)  Value 
Consumer Finance — 0.7%     
Capital One Capital V, 10.25%, 8/15/39  $ 1,570  $ 1,703,450 
Diversified Financial Services — 4.4%     
JPMorgan Chase Capital XXI, Series U,     
1.42%, 1/15/87 (e)  7,125  5,349,187 
JPMorgan Chase Capital XXIII, 1.38%, 5/15/77 (e)  6,190  4,714,576 
    10,063,763 
Electric Utilities — 0.4%     
PPL Capital Funding, 6.70%, 3/30/67 (e)  900  864,000 
Insurance — 6.0%     
AXA SA, 6.38% (b)(c)(e)  900  846,000 
The Allstate Corp., 6.50%, 5/15/67 (e)  900  893,250 
Chubb Corp., 6.38%, 3/29/67 (e)  900  923,625 
Liberty Mutual Group, Inc., 10.75%, 6/15/88 (b)(e)  900  1,116,000 
Lincoln National Corp., 7.00%, 5/17/66 (e)  900  877,500 
MetLife, Inc., 6.40%, 12/15/66  900  882,000 
Prudential Plc, 6.50% (c)  6,000  5,887,500 
Reinsurance Group of America, 6.75%, 12/15/65 (e)  1,300  1,162,288 
The Travelers Cos., Inc., 6.25%, 3/15/67 (e)  900  936,000 
ZFS Finance (USA) Trust IV, 5.88%, 5/09/32 (b)(e)  190  181,137 
    13,705,300 
Multi-Utilities — 0.4%     
Puget Sound Energy, Inc., Series A, 6.97%, 6/01/67 (e)  925  891,681 
Oil, Gas & Consumable Fuels — 0.4%     
TransCanada PipeLines Ltd., 6.35%, 5/15/67 (e)  900  861,750 
Total Capital Trusts — 20.6%    47,085,304 
Preferred Stocks  Shares   
Media — 0.0%     
CMP Susquehanna Radio Holdings Corp.,     
0.00% (a)(b)  2,052   
Specialty Retail — 0.1%     
Lazydays RV Center, Inc., 0.00% (a)  182  270,532 
Total Preferred Stocks — 0.1%    270,532 
Total Preferred Securities — 20.7%    47,355,836 
  Par   
Taxable Municipal Bonds  (000)   
Metropolitan Transportation Authority, RB,     
Build America Bonds, 6.55%, 11/15/31  $ 1,675  1,758,867 
State of California, GO, Build America Bonds,     
7.35%, 11/01/39  825  845,064 
State of Illinois, GO, Pension, 5.10%, 6/01/33  1,675  1,335,059 
Total Taxable Municipal Bonds — 1.7%    3,938,990 
U.S. Treasury Obligations     
U.S. Treasury Notes, 1.75%, 7/31/15  22,000  22,654,940 
Total U.S. Treasury Obligations — 9.9%    22,654,940 

 

Warrants (f)  Shares  Value 
Media — 0.0%     
CMP Susquehanna Radio Holdings Corp.     
(Expires 3/26/19) (b)  2,345  $ 
Total Warrants — 0.0%     
Total Long Term Investments     
(Cost — $254,407,512) — 114.2%  261,584,504 
Short-Term Securities     
BlackRock Liquidity Funds, TempFund,     
Institutional Class, 0.21% (g)(h)  34,466,527  34,466,527 
Total Short-Term Securities     
(Cost — $34,466,527) — 15.0%    34,466,527 
Total Investments (Cost — $288,874,039*) — 129.2%  296,051,031 
Other Assets Less Liabilities — 1.5%    3,474,382 
Preferred Shares, at Redemption Value — (30.7)%    (70,427,344) 
Net Assets Applicable to Common Shares — 100.0%  $ 229,098,069 
* The cost and unrealized appreciation (depreciation) of investments as of October 31, 
2010, as computed for federal income tax purposes, were as follows:   
Aggregate cost  $ 288,411,422 
Gross unrealized appreciation  $ 14,629,466 
Gross unrealized depreciation    (6,989,857) 
Net unrealized appreciation  $ 7,639,609 

 

(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) 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,
if any.
(g) Investments in companies considered to be an affiliate of the Fund during the
year, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as
amended, were as follows:

  Shares Held at    Shares Held at   
  October 31,  Net  October 31,   
Affiliate  2009  Activity  2010  Income 
BlackRock Liquidity         
Funds, TempFund,         
Institutional Class  51,450,797  (16,984,270)  34,466,527  $52,739 

 

(h) 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.
Financial futures contracts purchased as of October 31, 2010 were as follows:

      Notional     Unrealized   
Contracts           Issue  Exchange  Expiration  Value      Depreciation 
12       30-Year U.S.  Chicago Board  December   
Treasury Bond  of Trade  2010  $1,610,648   $ (39,398) 

 

See Notes to Financial Statements.

ANNUAL REPORT

OCTOBER 31, 2010

21



Schedule of Investments (concluded)

BlackRock Credit Allocation Income Trust III (BPP)

Fair Value Measurements — Various inputs are used in determining the fair value of
investments and derivatives, 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
and derivatives)
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 October 31, 2010 in deter-
mining the fair valuation of the Fund’s investments and derivatives:

Valuation Inputs  Level 1  Level 2  Level 3  Total 
Assets:           
Investments in Securities:       
Long-Term           
Investments:           
Common           
Stocks        $ 54,708  $ 54,708 
Corporate           
Bonds      $187,579,850  180  187,580,030 
Preferred           
Securities      47,085,304  270,532  47,355,836 
Taxable           
Municipal           
Bonds      3,938,990    3,938,990 
U.S. Treasury           
Obligations .      22,654,940    22,654,940 
Short-Term           
Securities  $34,466,527      34,466,527 
Total  $34,466,527  $261,259,084  $ 325,420  $296,051,031 
Derivative Financial Instruments1

Valuation Inputs  Level 1  Level 2  Level 3  Total 
Liabilities:           
Interest rate           
contracts  $ (39,398)      $ (39,398) 

 

1 Derivative financial instruments are financial futures contracts, 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:     
  Common  Corporate  Preferred   
  Stocks  Bonds  Securities  Total 
Assets:         
Balance, as of October 31, 2009    $ 12,000  $ 3,027,189  $ 3,039,189 
Accrued discounts/premiums    684    684 
Net realized gain (loss)      (925,530)  (925,530) 
Net change in unrealized appreciation/depreciation2    1,171,753  815,841  1,987,594 
Purchases         
Sales    (1,184,257)  (2,917,500)  (4,101,757) 
Transfers in3  $ 54,708    270,532  325,420 
Transfers out3         
Balance, as of October 31, 2010  $ 54,708  $ 180  $ 270,532  $ 325,420 

 

2 Included in the related net change in unrealized appreciation/depreciation on the Statements of Operations. The net change in unrealized appreciation/depreciation on
securities still held at October 31, 2010 was $(684).
3 The Fund’s policy is to recognize transfers in and transfers out as of the end of the period of the event or the change in circumstances that caused the transfer.

See Notes to Financial Statements.

22 ANNUAL REPORT

OCTOBER 31, 2010



Schedule of Investments October 31, 2010

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

    Par   
Corporate Bonds    (000)  Value 
Aerospace & Defense — 4.0%       
BE Aerospace, Inc., 8.50%, 7/01/18  $ 3,575  $ 4,004,000 
Bombardier, Inc., 7.75%, 3/15/20 (a)    4,500  4,995,000 
Goodrich Corp., 3.60%, 2/01/21    10,000  9,932,200 
United Technologies Corp., 5.70%, 4/15/40    10,000  11,198,420 
      30,129,620 
Airlines — 0.7%       
Continental Airlines Pass-Through Certificates,       
Series 2009-2, Class B, 9.25%, 5/10/17    2,225  2,414,125 
Delta Air Lines, Inc., Series 02G1, 6.72%, 7/02/24    2,461  2,503,925 
      4,918,050 
Auto Components — 0.6%       
Icahn Enterprises LP:       
7.75%, 1/15/16    1,700  1,746,750 
8.00%, 1/15/18    2,500  2,571,875 
      4,318,625 
Beverages — 0.5%       
Constellation Brands, Inc., 7.25%, 5/15/17    3,230  3,540,887 
Building Products — 0.2%       
Building Materials Corp. of America,       
7.00%, 2/15/20 (a)    1,100  1,146,750 
Capital Markets — 1.8%       
Ameriprise Financial, Inc., 5.30%, 3/15/20    4,500  4,940,109 
The Goldman Sachs Group, Inc., 7.50%, 2/15/19    6,850  8,245,715 
      13,185,824 
Chemicals — 0.3%       
CF Industries, Inc., 7.13%, 5/01/20    1,850  2,146,000 
Commercial Services & Supplies — 4.5%       
Aviation Capital Group, 7.13%, 10/15/20 (a)    15,000  15,440,941 
Browning-Ferris Industries, Inc., 7.40%, 9/15/35    4,420  5,346,644 
Clean Harbors, Inc., 7.63%, 8/15/16    2,250  2,376,563 
Corrections Corp. of America, 7.75%, 6/01/17    4,835  5,258,062 
Waste Management, Inc., 6.13%, 11/30/39    4,750  5,134,446 
      33,556,656 
Communications Equipment — 0.8%       
Brocade Communications Systems, Inc.,       
6.88%, 1/15/20    3,580  3,848,500 
CC Holdings GS V LLC, 7.75%, 5/01/17 (a)    1,725  1,936,312 
      5,784,812 
Consumer Finance — 4.3%       
American Express Credit Corp., 2.75%, 9/15/15    9,850  9,934,119 
Capital One Bank USA NA, 8.80%, 7/15/19    3,950  5,010,208 
Inmarsat Finance Plc, 7.38%, 12/01/17 (a)    2,975  3,183,250 
SLM Corp., 4.00%, 7/25/14 (b)    15,852  14,376,971 
      32,504,548 
Containers & Packaging — 1.1%       
Ball Corp.:       
7.13%, 9/01/16    2,000  2,180,000 
6.75%, 9/15/20    3,575  3,932,500 
Owens-Brockway Glass Container, Inc., 6.75%, 12/01/14  1,110  1,134,975 
Rock-Tenn Co., 9.25%, 3/15/16    800  876,000 
      8,123,475 
Diversified Financial Services — 2.0%       
Ally Financial Inc., 8.30%, 2/12/15 (a)    3,700  4,033,000 
Moody’s Corp., 6.06%, 9/07/17    10,000  10,342,390 
Stan IV Ltd., 2.48%, 7/20/11 (b)    283  280,170 
      14,655,560 

 

  Par   
Corporate Bonds  (000)  Value 
Diversified Telecommunication Services — 3.3%     
AT&T Inc., 6.30%, 1/15/38  $ 5,000  $ 5,502,490 
Frontier Communications Corp., 8.50%, 4/15/20  4,500  5,197,500 
Qwest Corp., 8.38%, 5/01/16  3,285  3,958,425 
Verizon Communications, Inc., 7.35%, 4/01/39  4,700  5,912,525 
Windstream Corp.:     
8.63%, 8/01/16  1,250  1,328,125 
7.88%, 11/01/17  2,700  2,949,750 
    24,848,815 
Electric Utilities — 1.4%     
Progress Energy Inc., 7.00%, 10/30/31  5,000  5,999,475 
Southern California Edison Co., 5.50%, 3/15/40  3,850  4,146,331 
    10,145,806 
Electronic Equipment, Instruments     
& Components — 0.3%     
Jabil Circuit Inc., 8.25%, 3/15/18  2,000  2,345,000 
Energy Equipment & Services — 1.6%     
Compagnie Generale de Geophysique-Veritas,     
7.75%, 5/15/17  2,500  2,618,750 
Halliburton Co., 7.45%, 9/15/39  5,076  6,455,393 
Hornbeck Offshore Services, Inc., Series B,     
6.13%, 12/01/14  2,695  2,695,000 
    11,769,143 
Food & Staples Retailing — 4.3%     
CVS Caremark Corp.:     
4.75%, 5/18/20  10,000  10,913,140 
6.30%, 6/01/62 (b)  7,800  7,234,500 
Wal-Mart Stores, Inc.:     
5.25%, 9/01/35  2,650  2,731,008 
6.20%, 4/15/38  10,000  11,549,840 
    32,428,488 
Food Products — 0.8%     
Kraft Foods, Inc.:     
6.50%, 8/11/17  1,985  2,385,631 
6.13%, 8/23/18  1,990  2,352,138 
Smithfield Foods, Inc., 10.00%, 7/15/14 (a)  1,250  1,440,625 
    6,178,394 
Gas Utilities — 0.7%     
Nisource Finance Corp., 6.13%, 3/01/22  4,750  5,401,633 
Health Care Equipment & Supplies — 2.6%     
Boston Scientific Corp., 7.38%, 1/15/40  4,950  5,729,694 
Fresenius US Finance II, Inc., 9.00%, 7/15/15 (a)  4,250  4,961,875 
Medtronic, Inc.:     
6.50%, 3/15/39  1,050  1,270,881 
5.55%, 3/15/40  7,058  7,767,859 
    19,730,309 
Health Care Providers & Services — 2.7%     
Aetna, Inc., 6.75%, 12/15/37  4,075  4,604,208 
HCA, Inc.:     
8.50%, 4/15/19  2,000  2,250,000 
7.25%, 9/15/20  3,600  3,937,500 
Tenet Healthcare Corp.:     
10.00%, 5/01/18  2,175  2,523,000 
8.88%, 7/01/19  1,825  2,053,125 
UnitedHealth Group, Inc., 6.88%, 2/15/38  4,075  4,726,988 
    20,094,821 
Household Durables — 0.6%     
Cemex Espana Luxembourg, 9.25%, 5/12/20 (a)  4,947  4,761,487 

 

See Notes to Financial Statements.

ANNUAL REPORT

OCTOBER 31, 2010

23



Schedule of Investments (continued)

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

    Par   
Corporate Bonds    (000)  Value 
IT Services — 0.7%       
International Business Machines Corp.,       
5.60%, 11/30/39  $ 4,400  $ 4,903,923 
Insurance — 3.0%       
AXA SA, 6.46% (a)(b)(c)    6,000  5,610,000 
Lincoln National Corp., 6.25%, 2/15/20    4,075  4,542,594 
Northwestern Mutual Life Insurance, 6.06%, 3/30/40 (a)  5,500  6,080,124 
Principal Financial Group, Inc., 8.88%, 5/15/19    1,145  1,495,743 
Prudential Financial, Inc., 6.63%, 12/01/37    4,075  4,501,302 
      22,229,763 
Life Sciences Tools & Services — 1.5%       
Bio-Rad Laboratories, Inc., 8.00%, 9/15/16    5,480  5,986,900 
Life Technologies Corp., 6.00%, 3/01/20    4,800  5,393,779 
      11,380,679 
Machinery — 1.3%       
Ingersoll-Rand Global Holding Co., Ltd., 9.50%, 4/15/14  4,075  5,049,805 
Navistar International Corp., 8.25%, 11/01/21    3,975  4,357,594 
      9,407,399 
Media — 5.8%       
CSC Holdings LLC:       
8.50%, 6/15/15    2,300  2,532,875 
8.63%, 2/15/19    1,950  2,254,688 
Comcast Corp., 6.30%, 11/15/17    4,075  4,832,767 
Cox Communications, Inc., 8.38%, 3/01/39 (a)    4,075  5,357,834 
DISH DBS Corp., 7.00%, 10/01/13    1,950  2,086,500 
Gannett Co., Inc., 9.38%, 11/15/17    3,100  3,479,750 
Intelsat Corp., 9.25%, 6/15/16    2,000  2,140,000 
News America, Inc., 6.15%, 3/01/37    4,850  5,104,271 
Time Warner Cable, Inc., 6.75%, 6/15/39    4,675  5,358,261 
Time Warner, Inc., 7.70%, 5/01/32    4,900  6,030,601 
UPC Germany GmbH, 8.13%, 12/01/17 (a)    1,225  1,283,188 
Virgin Media Secured Finance Plc, 6.50%, 1/15/18    3,175  3,405,187 
      43,865,922 
Metals & Mining — 0.9%       
Aleris International, Inc., 10.00%, 12/15/16 (d)(e)    5,000  25,000 
Phelps Dodge Corp., 7.13%, 11/01/27    3,500  3,917,133 
Teck Resources Ltd., 10.75%, 5/15/19    2,000  2,555,000 
United States Steel Corp., 7.38%, 4/01/20    290  302,688 
      6,799,821 
Multi-Utilities — 2.6%       
CenterPoint Energy, Inc.:       
5.95%, 2/01/17    3,600  4,023,454 
6.50%, 5/01/18    3,950  4,552,533 
Dominion Resources, Inc., 8.88%, 1/15/19    8,000  10,793,664 
      19,369,651 
Multiline Retail — 2.9%       
Dollar General Corp., 10.63%, 7/15/15    4,225  4,668,625 
JC Penney Co., Inc., 5.65%, 6/01/20    17,700  17,124,750 
      21,793,375 
Oil, Gas & Consumable Fuels — 3.4%       
BP Capital Markets Plc:       
5.25%, 11/07/13    2,100  2,297,056 
3.88%, 3/10/15    3,085  3,264,501 
Enbridge Energy Partners LP, 9.88%, 3/01/19    2,425  3,308,701 
Enterprise Products Operating LLC, 6.65%, 4/15/18    4,800  5,699,693 
Kinder Morgan Energy Partners LP, 6.85%, 2/15/20    4,800  5,756,866 
ONEOK Partners LP, 8.63%, 3/01/19    4,075  5,302,687 
      25,629,504 

 

    Par   
Corporate Bonds    (000)  Value 
Paper & Forest Products — 2.4%       
Georgia-Pacific LLC, 8.25%, 5/01/16 (a)  $ 3,955  $ 4,538,362 
International Paper Co.:       
7.50%, 8/15/21    3,950  4,816,788 
8.70%, 6/15/38    3,100  3,959,897 
7.30%, 11/15/39    4,075  4,644,791 
      17,959,838 
Pharmaceuticals — 8.6%       
Abbott Laboratories:       
6.15%, 11/30/37    942  1,104,842 
6.00%, 4/01/39    9,405  10,870,450 
Bristol-Myers Squibb Co.:       
5.88%, 11/15/36    8,015  9,093,202 
6.13%, 5/01/38    2,353  2,758,024 
Eli Lilly & Co., 5.95%, 11/15/37    2,353  2,674,575 
GlaxoSmithKline Capital, Inc., 6.38%, 5/15/38    10,100  12,233,393 
Merck & Co., Inc., 6.50%, 12/01/33    2,885  3,566,076 
Pfizer, Inc., 7.20%, 3/15/39    10,000  13,277,740 
Schering-Plough Corp., 6.55%, 9/15/37    6,945  8,649,754 
      64,228,056 
Real Estate Investment Trusts (REITs) — 1.2%       
AvalonBay Communities, Inc., 6.10%, 3/15/20    4,075  4,768,174 
ERP Operating LP, 5.75%, 6/15/17    4,080  4,588,927 
      9,357,101 
Road & Rail — 1.1%       
Norfolk Southern Corp., 6.00%, 3/15/2105    8,500  8,499,260 
Semiconductors & Semiconductor Equipment — 0.9%     
Advanced Micro Devices, Inc., 7.75%, 8/01/20 (a)    1,300  1,378,000 
KLA-Tencor Corp., 6.90%, 5/01/18    2,208  2,533,934 
National Semiconductor Corp., 6.60%, 6/15/17    2,770  3,221,626 
      7,133,560 
Specialty Retail — 0.8%       
AutoNation, Inc., 6.75%, 4/15/18    2,775  2,872,125 
AutoZone, Inc., 7.13%, 8/01/18    1,550  1,885,369 
Limited Brands, Inc., 7.00%, 5/01/20    1,370  1,507,000 
      6,264,494 
Tobacco — 2.9%       
Altria Group, Inc.:       
9.70%, 11/10/18    4,075  5,621,198 
9.25%, 8/06/19    3,950  5,423,247 
10.20%, 2/06/39    7,400  10,880,738 
      21,925,183 
Wireless Telecommunication Services — 1.4%       
Cricket Communications, Inc., 7.75%, 5/15/16    780  840,450 
Nextel Communications, Inc., Series E, 6.88%, 10/31/13  2,890  2,911,675 
SBA Tower Trust, 5.10%, 4/15/42 (a)    6,250  6,722,550 
      10,474,675 
Total Corporate Bonds — 80.5%      602,936,907 
Preferred Securities       
Capital Trusts       
Capital Markets — 2.9%       
Credit Suisse Guernsey Ltd., 5.86% (b)(c)    1,050  1,027,687 
State Street Capital Trust III, 8.25% (b)(c)    1,740  1,771,755 
State Street Capital Trust IV, 1.29%, 6/01/67 (b)    25,245  18,626,544 
      21,425,986 

 

See Notes to Financial Statements.

24 ANNUAL REPORT

OCTOBER 31, 2010



Schedule of Investments (continued)

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

  Par   
Capital Trusts  (000)  Value 
Commercial Banks — 5.7%     
BB&T Capital Trust IV, 6.82%, 6/12/77 (b)  $ 15,300  $ 15,261,750 
CBA Capital Trust II, 6.02% (a)(b)(c)  5,000  4,959,580 
HSBC Capital Funding LP/Jersey Channel Islands,     
10.18% (a)(b)(c)  7,000  9,205,000 
National City Preferred Capital Trust I, 12.00% (b)(c)  3,713  4,145,527 
Standard Chartered Bank, 7.01% (a)(b)(c)  5,000  4,944,090 
USB Capital XIII Trust, 6.63%, 12/15/39  4,100  4,171,627 
    42,687,574 
Consumer Finance — 0.8%     
Capital One Capital V, 10.25%, 8/15/39  5,460  5,924,100 
Diversified Financial Services — 3.4%     
JPMorgan Chase Capital XXI, Series U,     
1.42%, 1/15/87 (b)  12,875  9,666,074 
JPMorgan Chase Capital XXIII, 1.38%, 5/15/77 (b)  20,695  15,762,222 
    25,428,296 
Electric Utilities — 0.5%     
PPL Capital Funding, 6.70%, 3/30/67 (b)  3,900  3,744,000 
Insurance — 5.9%     
Ace Capital Trust II, 9.70%, 4/01/30  4,000  4,800,108 
The Allstate Corp., 6.50%, 5/15/67 (b)  4,000  3,970,000 
Aon Corp., 8.21%, 1/01/27  4,000  4,212,040 
Chubb Corp., 6.38%, 3/29/67 (b)  4,000  4,105,000 
Liberty Mutual Group, Inc., 10.75%, 6/15/88 (a)(b)  4,000  4,960,000 
Lincoln National Corp., 7.00%, 5/17/66 (b)  4,255  4,148,625 
MetLife, Inc., 6.40%, 12/15/66  4,550  4,459,000 
Reinsurance Group of America, 6.75%, 12/15/65 (b)  7,000  6,258,476 
Swiss Re Capital I LP, 6.85% (a)(b)(c)  3,000  2,978,280 
The Travelers Cos., Inc., 6.25%, 3/15/67 (b)  4,000  4,160,000 
ZFS Finance (USA) Trust IV, 5.88%, 5/09/32 (a)(b)  599  571,057 
    44,622,586 
Multi-Utilities — 0.2%     
Puget Sound Energy, Inc., Series A, 6.97%, 6/01/67 (b)  1,575  1,518,269 
Oil, Gas & Consumable Fuels — 1.1%     
Enterprise Products Operating LLC, 8.38%, 8/01/66 (b)  4,500  4,747,500 
TransCanada PipeLines Ltd., 6.35%, 5/15/67 (b)  4,000  3,830,000 
    8,577,500 
Total Capital Trusts — 20.5%    153,928,311 
Preferred Stocks  Shares   
Real Estate Investment Trusts (REITs) — 1.6%     
Sovereign Real Estate Investment Corp., 12.00%  10,000  11,625,000 
Wireless Telecommunication Services — 1.4%     
Centaur Funding Corp., 9.08%  10,000  10,768,750 
Total Preferred Stocks — 3.0%    22,393,750 
Total Preferred Securities — 23.5%    176,322,061 
  Par   
Taxable Municipal Bonds  (000)   
City of Chicago Illinois, RB, Build America Bonds,     
6.85%, 1/01/38  $ 5,000  5,155,450 
Metropolitan Transportation Authority, RB,     
Build America Bonds, 6.55%, 11/15/31  4,075  4,279,035 
State of California, GO, Build America Bonds,     
7.35%, 11/01/39  2,050  2,099,856 
State of Illinois, GO, Pension, 5.10%, 6/01/33  4,075  3,247,979 
Total Taxable Municipal Bonds — 2.0%    14,782,320 

 

  Par   
U.S. Treasury Obligations  (000)  Value 
U.S. Treasury Notes:     
1.75%, 7/31/15  $ 60,000  $61,786,200 
4.63%, 2/15/40  75,000  83,226,600 
Total U.S. Treasury Obligations — 19.3%    145,012,800 
Total Long-Term Investments     
(Cost — $911,010,062) — 125.3%    939,054,088 
Short-Term Securities  Shares   
BlackRock Liquidity Funds, TempFund,     
Institutional Class, 0.21% (f)(g)  26,924,664  26,924,664 
Total Short-Term Securities     
(Cost — $26,924,664) — 3.6%    26,924,664 
Total Investments (Cost — $937,934,726*) — 128.9%    965,978,752 
Other Assets Less Liabilities — 1.9%    14,426,278 
Preferred Shares, at Redemption Value — (30.8)%  (231,045,110) 
Net Assets — 100.0%  $ 749,359,920 
* The cost and unrealized appreciation (depreciation) of investments as of October 31, 
2010, as computed for federal income tax purposes, were as follows:   
Aggregate cost  $ 937,254,273 
Gross unrealized appreciation  $ 53,165,500 
Gross unrealized depreciation    (24,441,021) 
Net unrealized appreciation  $ 28,724,479 

 

(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) 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) Non-income producing security.
(f) Investments in companies considered to be an affiliate of the Fund during the
year, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as
amended, were as follows:

  Shares Held at    Shares Held at   
  October 31,  Net  October 31,   
Affiliate  2009  Activity  2010  Income 
BlackRock Liquidity         
Funds, TempFund,         
Institutional Class  267,832,781       (240,908,117)        26,924,664        $173,294 

 

(g) 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.
Financial futures contracts purchased as of October 31, 2010 were as follows:

          Unrealized   
        Notional  Appreciation  
Contracts  Issue  Exchange  Expiration  Value             (Depreciation) 
346  10-Year U.S.  Chicago Board  December     
Treasury Bond   of Trade  2010  $43,373,650  $ 319,663 
28  30-Year U.S.  Chicago Board  December     
Treasury Bond    of Trade  2010  $ 3,758,178  (91,928) 
Total          $ 227,735 

 

See Notes to Financial Statements.

ANNUAL REPORT

OCTOBER 31, 2010

25



Schedule of Investments (concluded)

BlackRock Credit Allocation Income Trust IV (BTZ)

Fair Value Measurements — Various inputs are used in determining the fair value of
investments and derivatives, 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
and derivatives)
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 October 31, 2010 in deter-
mining the fair valuation of the Fund’s investments and derivatives:

Valuation Inputs  Level 1  Level 2  Level 3  Total 
Assets:           
Investments in Securities:       
Long-Term           
Investments:           
Corporate           
Bonds    —       $602,656,737  $ 280,170  $ 602,936,907 
Preferred           
Securities      176,322,061    176,322,061 
Taxable           
Municipal           
Bonds      14,782,320    14,782,320 
U.S. Treasury           
Obligations .    145,012,800    145,012,800 
Short-Term           
Securities  $ 26,924,664      26,924,664 
Total  $ 26,924,664  $938,773,918  $ 280,170  $ 965,978,752 
Derivative Financial Instruments1

Valuation Inputs  Level 1  Level 2  Level 3  Total 
Assets:           
Interest rate           
contracts  $ 319,663      $ 319,663 
Liabilities:           
Interest rate           
contracts    (91,928)      (91,928) 
Total  $ 227,735      $ 227,735 

 

1 Derivative financial instruments are financial futures contracts 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:

  Corporate 
  Bonds 
Assets:   
Balance, as of October 31, 2009  $ 240,550 
Accrued discounts/premiums  (764) 
Net realized gain (loss)   
Net change in unrealized appreciation/depreciation2  40,384 
Purchases   
Sales   
Transfers in3   
Transfers out3   
Balance, as of October 31, 2010  $ 280,170 

 

2 Included in the related net change in unrealized appreciation/depreciation
on the Statements of Operations. The net change in unrealized appreciation/
depreciation on securities still held at October 31, 2010 was $40,384.
3 The Fund’s policy is to recognize transfers in and transfers out as of the end of
the period of the event or the change in circumstances that caused the transfer.

See Notes to Financial Statements.

26 ANNUAL REPORT

OCTOBER 31, 2010



Schedule of Investments October 31, 2010

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

    Par   
Asset-Backed Securities    (000)  Value 
Flagship CLO, Series 2006-1A, Class B,       
0.64%, 9/20/19 (a)(b)  USD  696  $ 556,800 
Gold3, Series 2007-3X, Class B, 0.94%, 5/01/22 (b)    1,025  794,375 
Total Asset-Backed Securities — 0.4%      1,351,175 
Common Stocks (c)    Shares   
Construction & Engineering — 0.0%       
USI United Subcontractors Common    7,645  156,712 
Metals & Mining — 0.1%       
Euramax International    1,135  343,398 
Paper & Forest Products — 0.1%       
Ainsworth Lumber Co. Ltd. (a)    62,685  142,592 
Ainsworth Lumber Co. Ltd.    55,255  125,690 
      268,282 
Software — 0.2%       
Bankruptcy Management Solutions, Inc.    2,947  1,473 
HMH Holdings/EduMedia  115,632  578,162 
      579,635 
Specialty Retail — 0.0%       
Lazydays RV Center, Inc.    2,721  17,358 
Total Common Stocks — 0.4%      1,365,385 
    Par   
Corporate Bonds    (000)   
Airlines — 0.2%       
Air Canada, 9.25%, 8/01/15 (a)  USD  700  729,750 
Auto Components — 1.0%       
Delphi International Holdings Unsecured,       
12.00%, 10/06/14    39  39,931 
Icahn Enterprises LP:       
7.75%, 1/15/16    1,125  1,155,938 
8.00%, 1/15/18    2,250  2,314,687 
      3,510,556 
Beverages — 0.5%       
Central European Distribution Corp., 2.62%, 5/15/14  EUR  1,500  1,711,924 
Capital Markets — 0.2%       
E*Trade Financial Corp., 3.34%, 8/31/19 (a)(d)(e)  USD  439  606,918 
Chemicals — 0.3%       
OXEA Finance/Cy SCA, 9.50%, 7/15/17 (a)    715  782,925 
Commercial Banks — 1.2%       
VTB Capital SA, 6.88%, 5/29/18    3,940  4,155,124 
Containers & Packaging — 0.8%       
Ardagh Packaging Finance Plc, 7.38%, 10/15/17  EUR  400  567,028 
Impress Holdings BV, 3.41%, 9/15/13 (a)(b)  USD  150  149,250 
Smurfit Kappa Acquisitions (a):       
7.25%, 11/15/17  EUR  655  950,379 
7.75%, 11/15/19    620  916,853 
      2,583,510 
Diversified Financial Services — 0.3%       
Ally Financial Inc., 2.50%, 12/01/14 (b)  USD  1,050  932,316 
Diversified Telecommunication Services — 1.8%       
ITC Deltacom, Inc., 10.50%, 4/01/16    910  980,525 
Qwest Corp., 8.38%, 5/01/16    1,840  2,217,200 
Telefonica Emisiones SAU, 5.43%, 2/03/14  EUR  2,000  2,996,701 
      6,194,426 

 

    Par   
Corporate Bonds    (000)  Value 
Energy Equipment & Services — 0.0%       
Compagnie Generale de Geophysique-Veritas:       
7.50%, 5/15/15  USD  70  $ 72,275 
7.75%, 5/15/17    50  52,375 
      124,650 
Food & Staples Retailing — 0.2%       
Rite Aid Corp., 8.00%, 8/15/20 (a)    670  690,100 
Food Products — 0.4%       
B&G Foods, Inc., 7.63%, 1/15/18    700  745,500 
Smithfield Foods, Inc., 10.00%, 7/15/14 (a)    590  679,975 
      1,425,475 
Health Care Equipment & Supplies — 0.2%       
DJO Finance LLC, 10.88%, 11/15/14    635  696,119 
Health Care Providers & Services — 0.7%       
American Renal Holdings, 8.38%, 5/15/18 (a)    360  381,600 
HCA, Inc., 7.25%, 9/15/20    1,550  1,695,313 
Tenet Healthcare Corp.:       
9.00%, 5/01/15    95  104,500 
10.00%, 5/01/18    35  40,600 
      2,222,013 
Household Durables — 0.5%       
Beazer Homes USA, Inc., 12.00%, 10/15/17    1,500  1,739,063 
Berkline/BenchCraft, LLC, 4.50%, 11/03/12 (c)(f)    400   
      1,739,063 
Independent Power Producers & Energy Traders — 1.1%     
AES Ironwood LLC, 8.86%, 11/30/25    79  81,226 
Calpine Construction Finance Co. LP, 8.00%, 6/01/16 (a)  1,000  1,082,500 
Energy Future Holdings Corp., 10.00%, 1/15/20 (a)    1,000  1,047,402 
NRG Energy, Inc.:       
7.25%, 2/01/14    880  900,900 
7.38%, 2/01/16    570  593,512 
      3,705,540 
Machinery — 0.0%       
Synventive Molding Solutions, Sub-Series A,       
14.00%, 1/14/11 (g)    1,099  21,981 
Media — 2.0%       
Affinion Group, Inc., 10.13%, 10/15/13    50  51,437 
CCH II LLC, 13.50%, 11/30/16    224  267,712 
Clear Channel Worldwide Holdings, Inc.:       
9.25%, 12/15/17    501  541,080 
Series B, 9.25%, 12/15/17    1,704  1,861,620 
DISH DBS Corp., 7.00%, 10/01/13    58  62,060 
Nielsen Finance LLC, 10.00%, 8/01/14    55  57,819 
UPC Germany GmbH, 8.13%, 12/01/17 (a)    2,500  2,618,750 
Ziggo Finance BV, 6.13%, 11/15/17 (a)  EUR  1,005  1,391,773 
      6,852,251 
Metals & Mining — 0.8%       
FMG Resources August 2006 Property Ltd.,       
7.00%, 11/01/15 (a)  USD  1,695  1,737,375 
Foundation PA Coal Co., 7.25%, 8/01/14    505  508,787 
New World Resources NV, 7.38%, 5/15/15  EUR  285  393,988 
      2,640,150 
Oil, Gas & Consumable Fuels — 5.5%       
Coffeyville Resources LLC, 9.00%, 4/01/15 (a)  USD  380  407,550 
Morgan Stanley Bank AG for OAO Gazprom,       
9.63%, 3/01/13    7,230  8,206,050 
OPTI Canada, Inc., 9.00%, 12/15/12 (a)    1,575  1,606,500 
Petroleos de Venezuela SA:       
15.95%, 7/10/11 (e)    4,000  3,750,000 
5.25%, 4/12/17    4,000  2,360,000 
Repsol International Finance B.V., 6.50%, 3/27/14  EUR  1,500  2,310,679 
      18,640,779 

 

See Notes to Financial Statements.

ANNUAL REPORT

OCTOBER 31, 2010

27



Schedule of Investments (continued)

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

    Par   
Corporate Bonds    (000)  Value 
Paper & Forest Products — 0.5%       
Ainsworth Lumber Co. Ltd., 11.00%, 7/29/15 (a)(g)  USD  506  $ 448,076 
NewPage Corp., 11.38%, 12/31/14    1,015  974,400 
Verso Paper Holdings LLC, Series B, 4.04%, 8/01/14 (b)  450  403,875 
      1,826,351 
Pharmaceuticals — 0.2%       
Angiotech Pharmaceuticals, Inc., 4.05%, 12/01/13 (b)    765  638,775 
Novasep Holding SAS, 9.63%, 12/15/16 (a)  EUR  159  185,890 
      824,665 
Tobacco — 0.6%       
Imperial Tobacco Finance Plc, 4.38%, 11/22/13    1,500  2,195,260 
Wireless Telecommunication Services — 1.2%       
Cricket Communications, Inc., 7.75%, 5/15/16  USD  1,950  2,101,125 
iPCS, Inc., 2.41%, 5/01/13 (b)    1,155  1,114,575 
Nextel Communications, Inc., Series E,       
6.88%, 10/31/13    975  982,312 
      4,198,012 
Total Corporate Bonds — 20.2%      69,009,858 
Floating Rate Loan Interests (b)       
Aerospace & Defense — 1.6%       
DynCorp International, Term Loan, 6.25%, 7/07/16    1,500  1,507,013 
Hawker Beechcraft Acquisition Co., LLC:       
Facility Deposit, 0.19%, 3/26/14    104  87,166 
Term Loan, 2.26% – 2.29%, 3/26/14    1,788  1,492,376 
TASC, Inc.:       
Tranche A Term Loan, 5.50%, 12/18/14    786  788,216 
Tranche B Term Loan, 5.75%, 12/18/15    1,638  1,645,813 
      5,520,584 
Airlines — 0.3%       
Delta Air Lines, Inc., Credit-Linked Deposit Loan,       
2.25%, 4/30/12    1,132  1,107,255 
Auto Components — 2.8%       
Affinion Group, Inc., Tranche B Term Loan,       
5.00%, 10/09/16    1,990  1,968,448 
Allison Transmission, Inc., Term Loan,       
3.01% – 3.05%, 8/07/14    4,799  4,601,337 
Dana Holding Corp., Term Advance,       
4.51% – 4.70%, 1/30/15    801  798,468 
Dayco Products LLC (Mark IV Industries, Inc.):       
Facility B U.S. Term Loan, 10.50%, 5/13/14    405  402,569 
Facility C U.S. Term Loan, 12.50%, 11/13/14 (g)    64  60,974 
Exide Global Holdings Netherlands C.V., European       
Borrower Euro Term Loan, 4.06%, 5/15/12  EUR  388  506,375 
GPX International Tire Corp., Tranche B Term Loan (c)(f):       
8.37%, 3/30/12  USD  274   
14.00%, 4/11/12    4   
United Components, Inc., Term Loan, 6.25%, 3/23/17    1,125  1,133,438 
      9,471,609 
Automobiles — 1.2%       
Ford Motor Co., Tranche B-1 Term Loan,       
3.01% – 3.05%, 12/15/13    4,125  4,081,932 
Beverages — 0.1%       
Le-Nature’s, Inc., Tranche B Term Loan,       
10.25%, 3/01/11 (c)(f)    1,000  375,000 
Biotechnology — 0.4%       
Grifols SA, Term Loan B, 6.00% 10/01/16    1,100  1,111,000 

 

    Par   
Floating Rate Loan Interests (b)    (000)  Value 
Building Products — 2.4%       
Building Materials Corp. of America, Term Loan Advance,       
3.06%, 2/22/14  USD  273  $ 270,145 
Goodman Global, Inc., Term Loan B, 6.25%, 10/13/16    6,000  6,076,560 
Momentive Performance Materials (Blitz 06-103 GmbH):       
Tranche B-1 Term Loan, 2.56%, 12/04/13    587  570,503 
Tranche B-2 Term Loan, 3.10%, 12/04/13  EUR  823  1,084,186 
United Subcontractors, Inc., Term Loan (First Lien),       
1.79%, 6/30/15  USD  179  154,085 
      8,155,479 
Capital Markets — 0.6%       
American Capital Ltd., Term Loan B, 7.50%, 12/31/13    375  375,938 
Marsico Parent Co., LLC, Term Loan, 5.31%, 12/14/14    376  288,207 
Nuveen Investments, Inc., Term Loan (First Lien),       
3.29%, 11/13/14    1,574  1,471,346 
      2,135,491 
Chemicals — 6.9%       
Brenntag Holding Gmbh & Co. KG:       
Acquisition Facility 1, 4.01% – 4.48%, 1/20/14    232  232,858 
Acquisition Facility 2, 4.53% – 4.86%, 1/20/14  EUR  267  364,515 
Facility 2 (Second Lien), 6.45%, 7/17/15  USD  1,000  1,001,250 
Facility B2, 4.01% – 4.06%, 1/20/14    1,332  1,338,210 
Facility B6A, 4.97%, 1/20/14  EUR  233  323,732 
Facility B6B, 4.97%, 1/20/14    181  250,630 
CF Industries, Inc., Term Loan B-1, 4.50%, 4/05/15  USD  791  798,101 
Chemtura Corp.:       
Debtor in Possession Term Facility, 6.00%, 2/11/11    2,000  1,995,000 
Term Facility, 5.50%, 8/27/16    1,800  1,812,001 
Cognis GmbH, Facility A, 2.88%, 9/16/13  EUR  803  1,103,635 
Cognis GmbH, Facility B (French), 2.88%, 9/16/13    197  270,278 
Gentek Holding, LLC, Term Loan B, 6.75%, 9/30/15  USD  2,200  2,219,250 
Huish Detergents, Inc., Loan (Second Lien),       
4.51%, 10/26/14    750  713,438 
Ineos US Finance LLC, Senior Credit Term A2 Facility,       
7.00%, 12/17/12    227  232,102 
Lyondell Chemical Co., Term Loan, 5.50%, 4/08/16    808  814,363 
Matrix Acquisition Corp. (MacDermid, Inc.), Tranche C       
Term Loan, 3.05%, 4/11/14  EUR  1,535  1,975,632 
PQ Corp. (FKA Niagara Acquisition, Inc.), Original       
Term Loan (First Lien), 3.51% – 3.54%, 7/30/14  USD  2,489  2,376,024 
Rockwood Specialties Group, Inc., Tranche H Term Loan,       
6.00%, 5/15/14    1,024  1,023,123 
Solutia, Inc., Term Loan, 4.75%, 3/17/17    1,480  1,487,799 
Tronox Worldwide LLC, Exit Term Loan, 7.00%, 12/24/15    3,200  3,216,576 
      23,548,517 
Commercial Banks — 1.4%       
CIT Group, Inc., Tranche 3 Term Loan, 6.25%, 8/11/15    4,675  4,749,019 
Commercial Services & Supplies — 5.3%       
ARAMARK Corp.:       
Letter of Credit — 1 Facility, 0.10%, 1/26/14    38  36,561 
Letter of Credit — 2 Facility, 0.10%, 7/26/16    68  67,203 
US Term Loan, 2.16%, 1/26/14    467  453,845 
US Term Loan B, 3.54%, 7/26/16    1,031  1,021,874 
AWAS Finance Luxembourg Sarl, Term Loan,       
7.75%, 6/10/16    1,575  1,603,547 
Advanced Disposal Services, Inc., Term Loan B,       
6.00%, 1/14/15    1,241  1,245,277 
Altegrity, Inc., (FKA US Investigations Services, Inc.),       
Tranche D Term Loan, 7.75%, 2/21/15    2,145  2,149,987 
Casella Waste Systems, Inc., Term Loan B,       
7.00%, 4/09/14    1,086  1,093,039 
Delos Aircraft, Inc., Term Loan 2, 7.00%, 3/17/16    1,200  1,226,143 
Diversey, Inc. (FKA Johnson Diversey, Inc.), Tranche B       
Dollar Term Loan, 5.50%, 11/24/15    1,034  1,041,681 

 

See Notes to Financial Statements.

28 ANNUAL REPORT

OCTOBER 31, 2010



Schedule of Investments (continued)

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

    Par   
Floating Rate Loan Interests (b)    (000)  Value 
Commercial Services & Supplies (concluded)       
International Lease Finance Corp., Term Loan 1,       
6.75%, 3/17/15  USD  2,600  $ 2,659,894 
Protection One, Inc., Term Loan, 6.00%, 6/04/16    1,995  1,990,012 
Quad/Graphics, Term Loan, 5.50%, 4/20/16    723  718,957 
Synagro Technologies, Inc., Term Loan (First Lien),       
2.26%, 4/02/14    1,951  1,687,488 
Volume Services America, Inc. (Centerplate),       
Term Loan B, 10.75%, 9/16/16    1,225  1,203,562 
      18,199,070 
Communications Equipment — 0.2%       
Avaya, Inc., Term Loan B, 3.04%, 10/24/14    910  825,319 
Construction & Engineering — 0.9%       
Airport Development and Investment Ltd. (BAA), Facility       
(Second Lien), 4.57%, 4/07/11  GBP  168  267,456 
Aquilex Holdings LLC, Term Loan, 5.50%, 4/01/16  USD  299  294,520 
Brand Energy & Infrastructure Services, Inc. (FR Brand       
Acquisition Corp.), Synthetic Letter of Credit,       
Term Loan (First Lien), 0.19%, 2/07/14    500  470,000 
Safway Services, LLC, First Out Tranche Loan,       
9.00%, 12/18/17    2,100  2,100,000 
      3,131,976 
Construction Materials — 0.3%       
Fairmount Minerals Ltd., Tranche B Term Loan,       
6.25%, 8/05/16    1,100  1,112,375 
Consumer Finance — 1.0%       
AGFS Funding Co., Term Loan, 7.25%, 4/21/15    3,500  3,530,079 
Containers & Packaging — 1.2%       
Anchor Glass Container Corp., Term Loan (First Lien),       
6.00%, 3/02/16    811  810,771 
Graham Packaging Co., LP:       
Term Loan C, 6.75%, 4/05/14    718  724,287 
Term Loan D, 6.00%, 9/23/16    1,400  1,409,500 
Smurfit Kappa Acquisitions (JSG):       
Term B1, 4.11% – 4.39%, 12/02/13  EUR  458  631,840 
Term Loan Facility C1, 4.25% – 4.64%, 12/01/14    453  624,602 
      4,201,000 
Diversified Consumer Services — 3.3%       
Asurion Corp., Incremental Term Loan, 6.75%       
3/31/15  USD  2,000  1,962,188 
Coinmach Service Corp.:       
Delayed Draw Term Loan, 3.26% – 3.35%, 11/20/14  492  428,049 
Term Loan, 3.35%, 11/20/14    2,513  2,190,866 
Laureate Education, Series A New Term Loan,       
7.00%, 8/15/14    4,208  4,163,321 
ServiceMaster Co.:       
Closing Date Term Loan, 2.76% – 2.80%, 7/24/14    2,354  2,232,084 
Delayed Draw Term Loan, 2.76%, 7/24/14    234  222,282 
      11,198,790 
Diversified Financial Services — 2.7%       
MSCI, Inc., Term Loan, 4.75%, 6/01/16    1,970  1,979,298 
Professional Service Industries, Inc., Term Loan       
(First Lien), 3.01%, 10/31/12    461  368,507 
Reynolds Group Holdings, Inc., Incremental US       
Term Loan, 6.25%, 5/05/16    3,578  3,593,878 
SIG Euro Holding AG & Co., KGAA — European       
Term Loan, 6.75%, 10/28/15  EUR  2,453  3,405,743 
      9,347,426 
Diversified Telecommunication Services — 4.5%       
BCM Ireland Holdings Ltd. (Eircom):       
Facility B, 2.72%, 9/30/14    499  579,547 
Facility C, 2.97%, 9/30/15    499  579,565 
Cincinnati Bell Inc., Tranche B Term Loan,       
6.50%, 6/11/17  USD  490  492,590 

 

    Par   
Floating Rate Loan Interests (b)    (000)  Value 
Diversified Telecommunication Services (concluded)       
Hawaiian Telcom Communications, Inc., Term Loan B,       
9.00%, 10/28/15  USD  914  $ 913,859 
Integra Telecom Holdings, Inc., Term Loan,       
9.25%, 4/15/15    2,020  2,033,835 
Level 3 Financing, Inc., Tranche A Term Loan,       
2.54%, 3/13/14    4,800  4,465,713 
Nordic Telephone Co. Holdings APS:       
Facility B2 Swiss, 2.12%, 1/30/14  EUR  885  1,216,430 
Facility C2 Swiss, 2.75%, 1/30/15    1,058  1,453,397 
Wind Telecomunicazioni SpA:       
Term Loan Facility A1, 3.06%, 5/25/12    600  822,597 
Term Loan Facility B1, 3.81%, 5/27/13    993  1,365,485 
Term Loan Facility C1, 5.06%, 5/26/14    993  1,365,485 
      15,288,503 
Electric Utilities — 1.4%       
Astoria Generating Co. Acquisitions, LLC, Term B Facility,       
2.04%, 2/23/13  USD  258  253,963 
New Development Holdings LLC, Term Loan,       
7.00%, 7/03/17    3,741  3,807,657 
TPF Generation Holdings, LLC:       
Synthetic Letter of Credit Deposit (First Lien),       
0.19%, 12/15/13    151  143,705 
Synthetic Revolving Deposit, 0.19%, 12/15/11    47  45,049 
Term Loan (First Lien), 2.29%, 12/15/13    366  349,837 
      4,600,211 
Electronic Equipment, Instruments       
& Components — 2.0%       
CDW LLC (FKA CDW Corp.), Term Loan,       
4.26%, 10/10/14    1,727  1,640,299 
Flextronics International Ltd.:       
Closing Date Loan A, 2.51%, 10/01/14    1,151  1,120,862 
Closing Date Loan B, 2.51%, 10/01/12    2,233  2,194,222 
Styron S.A.R.L, Term Loan, 7.50%, 6/17/16    1,876  1,906,739 
      6,862,122 
Energy Equipment & Services — 0.6%       
MEG Energy Corp., Tranche D Term Loan,       
6.00%, 4/03/16    1,963  1,964,516 
Food & Staples Retailing — 2.6%       
AB Acquisitions UK Topco 2 Ltd. (FKA Alliance Boots),       
Facility B1, 3.56%, 7/06/15  GBP  3,000  4,327,570 
Pilot Travel Centers LLC, Initial Tranche B Term Loan,       
5.25%, 6/30/16  USD  3,020  3,057,249 
Rite Aid Corp., Tranche 3 Term Loan, 6.00%, 6/04/14    594  587,944 
U.S. Foodservice, Inc., Term Loan B,       
2.75% – 2.76%, 7/03/14    1,115  1,007,507 
      8,980,270 
Food Products — 4.7%       
Birds Eye Iglo Group Ltd. (Liberator Midco Ltd.):       
Sterling Tranche Loan (Mezzanine),       
5.69%, 11/02/15  GBP  429  694,959 
Facility D, 5.60%, 4/30/16  EUR  3,000  4,179,223 
CII Investment, LLC (FKA Cloverhill):       
Term Loan A, 8.50%, 10/14/14  USD  78  78,144 
Term Loan A, 8.50%, 10/14/14    1,075  1,074,864 
Term Loan B, 8.50%, 10/14/14    1,307  1,307,279 
Dole Food Co., Inc., Tranche B-1 Term Loan,       
5.00% – 5.50%, 3/02/17    152  152,321 
Michael Foods Group, Inc. (FKA M-Foods Holdings, Inc.),       
Term Loan B, 6.25%, 6/29/16    1,197  1,210,841 
Pierre Foods, Term Loan:       
(First Lien) 7.00% – 7.50%, 9/29/16    2,170  2,144,682 
(Second Lien) 11.25%, 9/29/17  GBP  1,400  1,407,000 
Pilgrim’s Pride Corp., Term Loan A, 5.29%, 12/01/12  USD  1,535  1,519,650 

 

See Notes to Financial Statements.

ANNUAL REPORT

OCTOBER 31, 2010

29



Schedule of Investments (continued)

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

    Par   
Floating Rate Loan Interests (b)    (000)  Value 
Food Products (concluded)       
Pinnacle Foods Finance LLC, Tranche D Term Loan,       
6.00%, 4/02/14  USD  1,954  $ 1,973,643 
Solvest Ltd. (Dole), Tranche C-1 Term Loan,       
5.00% – 5.50%, 3/02/17    379  379,931 
      16,122,537 
Health Care Equipment & Supplies — 1.7%       
Biomet, Inc., Euro Term Loan,       
3.79% – 3.83%, 3/25/15  EUR  2,496  3,358,445 
DJO Finance LLC (ReAble Therapeutics Finance LLC),       
Term Loan, 3.26%, 5/20/14  USD  1,212  1,177,373 
Fresenius SE:       
Tranche C-1 Dollar Term Loan, 4.50%, 9/10/14    837  840,318 
Tranche C-2 Term Loan, 4.50%, 9/10/14    448  449,701 
      5,825,837 
Health Care Providers & Services — 5.0%       
CHS/Community Health Systems, Inc.:       
Delayed Draw Term Loan, 2.55%, 7/25/14    179  175,394 
Term Loan Facility, 2.55%, 7/25/14    3,482  3,412,123 
DaVita, Inc., Term Loan B, 4.50%, 10/20/16    1,900  1,914,250 
HCA, Inc.:       
Tranche A-1 Term Loan, 1.54%, 11/14/12    2,335  2,284,315 
Tranche B-1 Term Loan, 2.54%, 11/18/13    185  180,875 
Harden Healthcare, Inc.:       
Add-on Term Loan, 7.75%, 3/02/15    1,609  1,576,575 
Tranche A Term Loan, 8.50%, 2/22/15    966  946,814 
inVentiv Health, Inc. (FKA Ventive Health, Inc.),       
Term Loan B, 6.50%, 8/04/16    3,078  3,092,178 
Renal Advantage Holdings, Inc., Tranche B Term Loan,       
6.00%, 6/03/16    1,396  1,405,228 
Vanguard Health Holding Co. II, LLC (Vanguard Health       
Systems, Inc.), Initial Term Loan, 5.00%, 1/29/16    2,099  2,097,665 
      17,085,417 
Health Care Technology — 0.8%       
IMS Health, Inc., Tranche B Dollar Term Loan,       
5.25%, 2/26/16    2,570  2,591,695 
Hotels, Restaurants & Leisure — 5.2%       
BLB Worldwide Holdings, Inc. (Wembley, Inc.):       
First Priority Term Loan, 4.75%, 7/18/11    2,418  1,819,703 
Second Priority Term Loan, 7.06%, 7/18/12 (c)(f)    1,500  18,750 
Harrah’s Operating Co., Inc.:       
Term Loan B-3, 3.29%, 1/28/15    2,751  2,421,897 
Term Loan B-4, 9.50%, 10/31/16    1,489  1,546,439 
OSI Restaurant Partners, LLC, Pre-Funded RC Loan,       
0.11% – 2.63%, 6/14/13    32  30,198 
Penn National Gaming, Inc., Term Loan B,       
2.01% – 2.17%, 10/03/12    997  988,716 
SW Acquisitions Co., Inc., Term Loan, 5.75%, 6/01/16    3,276  3,296,471 
Six Flags Theme Parks, Inc., Tranche B Term Loan       
(First Lien), 6.00%, 6/30/16    2,225  2,231,422 
Travelport LLC (FKA Travelport, Inc.):       
Delayed Draw Term Loan, 2.79% – 2.96%, 8/23/13    593  584,292 
Original Post-First Amendment and Restatement       
Synthetic Letter of Credit Loan, 2.79%, 8/23/13    56  55,225 
Tranche B Dollar Term Loan, 2.96%, 8/23/13    309  304,133 
Universal City Development Partners Ltd., Term Loan,       
5.50%, 11/06/14    447  449,684 
VML US Finance LLC (FKA Venetian Macau):       
Term B Delayed Draw Project Loan, 4.78%, 5/25/12  1,445  1,442,033 
Term B Funded Project Loan, 4.78%, 5/27/13    2,501  2,496,517 
      17,685,480 

 

    Par   
Floating Rate Loan Interests (b)    (000)  Value 
Household Durables — 0.5%       
Berkline/Benchcraft, LLC, Term Loan, 14.00%       
11/03/11 (c)(f)  USD  128  $ 6,418 
Visant Corp. (FKA Jostens), Tranche B Term Loan,       
7.00%, 12/20/16    1,600  1,613,000 
      1,619,418 
IT Services — 5.0%       
Amadeus IT Group SA/Amadeus Verwaltungs GmbH       
(WAM Acquisition):       
Term B3 Facility, 4.13%, 7/01/13  EUR  615  836,519 
Term B4 Facility, 4.13%, 7/01/13    317  431,603 
Term C3 Facility, 4.63%, 7/01/14    615  836,519 
Term C4 Facility, 4.63%, 7/01/14    314  421,585 
Ceridian Corp., US Term Loan, 3.26%, 11/09/14  USD  1,872  1,712,845 
EVERTEC, Inc., Term Loan B, 7.50%, 9/30/16    950  945,250 
First Data Corp.:       
Initial Tranche B-1 Term Loan, 3.01%, 9/24/14    2,549  2,288,510 
Initial Tranche B-2 Term Loan, 3.01%, 9/24/14    367  329,798 
Initial Tranche B-3 Term Loan, 3.01%, 9/24/14    2,442  2,192,373