bgtfinal.htm - Generated by SEC Publisher for SEC Filing

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: John M. Perlowski, 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: 10/31/2011

Date of reporting period: 04/30/2011

Item 1 – Report to Stockholders




April 30, 2011

Semi-Annual Report (Unaudited)

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

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

} BlackRock Credit Allocation Income Trust III (BPP)

} BlackRock Credit Allocation Income Trust IV (BTZ)

} BlackRock Floating Rate Income Trust (BGT)

Not FDIC Insured • No Bank Guarantee • May Lose Value



Table of Contents   
  Page 
Dear Shareholder  3 
Semi-Annual Report:   
Fund Summaries  4 
The Benefits and Risks of Leveraging  14 
Derivative Financial Instruments  15 
Financial Statements:   
Schedules of Investments  16 
Statements of Assets and Liabilities  48 
Statements of Operations  49 
Statements of Changes in Net Assets  50 
Statements of Cash Flows  53 
Financial Highlights  54 
Notes to Financial Statements  59 
Officers and Directors  70 
Additional Information  71 

 

2  SEMI-ANNUAL REPORT  APRIL 30, 2011 

 



Dear Shareholder

Time and again, we have seen how various global events and developing trends can have significant influence on financial markets. I hope you find
that the following review of recent market conditions provides additional perspective on the performance of your investments as you read this
shareholder report.

Over the past 12 months, we have seen a sluggish, stimulus-driven economic recovery at long last gain real traction, accelerate, and transition into a
consumption-driven expansion. For the most part, 2010 was plagued with widely fluctuating economic data, but as the year drew to a close, it became
clear that cyclical stimulus had beaten out structural problems as economic data releases generally became more positive and financial markets showed
signs of continuing improvement. Although the sovereign debt crisis in Europe and high inflation in developing markets that troubled the global economy
in 2010 remain challenges today, overall investor confidence has improved considerably. During the first four months of 2011, that confidence was shaken
by political turmoil in the Middle East/North Africa region, soaring prices of oil and other commodities, tremendous natural disasters in Japan and a
change in the ratings outlook for US debt. However, strong corporate earnings prevailed and financial markets resumed their course while the global
economy continued to garner strength.

Equity markets experienced uneven growth and high volatility in 2010, but ended the year with gains. Following a strong start to 2011, the series of confi-
dence-shaking events brought spurts of heightened volatility to markets worldwide, but was not enough to derail the bull market. Overall, global equities
posted strong returns over the past 12 months. Emerging market equities, which had outperformed developed markets earlier in the period, fell prey to
heightened inflationary pressures and underperformed developed markets later in the period. In the United States, strong corporate earnings and positive
signals from the labor market were sources of encouragement for equity investors, although the housing market did not budge from its slump. Early in
2011, the US Federal Reserve announced that it would continue its Treasury purchase program (“QE2”) through to completion and keep interest rates low
for an extended period. This compelled investors to continue buying riskier assets, furthering the trend of small cap stocks outperforming large caps.

While fixed income markets saw yields trend lower (pushing bond prices higher) through most of 2010, the abrupt reversal in investor sentiment and risk
tolerance in the fourth quarter drove yields sharply upward. Global credit markets were surprisingly resilient in the face of recent headwinds and yields
regained relative stability as the period came to a close. Yield curves globally remained steep by historical standards and higher-risk sectors continued
to outperform higher-quality assets. The tax-exempt municipal market enjoyed a powerful rally during the period of low yields in 2010, but when that
trend reversed, the market was dealt an additional blow as it became evident that the Build America Bond program would not be extended. Meanwhile,
municipal finance troubles raised credit concerns among investors and tax-exempt mutual funds experienced heavy outflows, resulting in wider spreads
and falling prices. The new year brought relief from these headwinds and a steady rebound in the tax-exempt municipal market.

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.

Risk Assets Rallied on Growing Investor Confidence: Total Returns as of April 30, 2011  6-month  12-month 
US large cap equities (S&P 500® Index)  16.36%  17.22% 
US small cap equities (Russell 2000® Index)  23.73  22.20 
International equities (MSCI Europe, Australasia, Far East Index)  12.71  19.18 
Emerging market equities (MSCI Emerging Markets Index)  9.74  20.67 
3-month Treasury bill (BofA Merrill Lynch 3-Month Treasury Bill Index)  0.09  0.17 
US Treasury securities (BofA Merrill Lynch 10-Year US Treasury Index)  (3.85)  6.37 
US investment grade bonds (Barclays Capital US Aggregate Bond Index)  0.02  5.36 
Tax-exempt municipal bonds (Barclays Capital Municipal Bond Index)  (1.68)  2.20 
US high yield bonds (Barclays Capital US Corporate High Yield 2% Issuer Capped Index)  6.18  13.32 
Past performance is no guarantee of future results. Index performance shown for illustrative purposes only. You cannot invest directly in an index.   

 

While no one can peer into a crystal ball and eliminate the uncertainties presented by the economic landscape and financial markets, BlackRock can
offer investors the next best thing: partnership with the world’s largest asset management firm that delivers consistent long-term investment results with
fewer surprises. For additional market perspective and investment insight, visit www.blackrock.com/shareholdermagazine, where you’ll find the most
recent issue of our award-winning Shareholder® magazine, as well as its quarterly companion newsletter, Shareholder Perspectives. As always, we thank
you for entrusting BlackRock with your investments, and we look forward to your continued partnership in the months and years ahead.


THIS PAGE NOT PART OF YOUR FUND REPORT  3 

 



Fund Summary as of April 30, 2011 BlackRock Credit Allocation Income Trust I, Inc.

Fund Overview

BlackRock Credit Allocation Income Trust I, Inc.’s (PSW) (the “Fund”) primary investment objective is to provide holders of common shares (“Common
Shareholders”) with high current income. The secondary investment objective of the Fund is to provide Common Shareholders with capital appreciation.
The
Fund seeks to achieve its investment objectives 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.

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

Portfolio Management Commentary

How did the Fund perform?
For the six months ended April 30, 2011, the Fund returned (0.82)%
based on market price and 3.73% based on net asset value (“NAV”).
For the same period, the closed-end Lipper Corporate Debt Funds
(BBB-Rated) category posted an average return of (0.45)% based on
market price and 2.46% based on NAV. All returns reflect reinvestment
of dividends. The Fund's discount to NAV, which widened during the
period, accounts for the difference between performance based on
price and performance based on NAV. The following discussion relates
to performance based on NAV.

What factors influenced performance?
The primary driver of the Fund’s positive performance was its allocation
to high yield corporate credit, as the sector broadly rallied during the
period on improving fundamentals and continued signs of economic
recovery in the United States. Also contributing positively was the
Fund’s allocation and security selection within investment grade corpo-
rate credit. In particular, an allocation to capital securities, including
trust preferreds and hybrid securities, had a positive impact due to a
technical rally in that space sparked by the favorable outcome of finan-
cial regulatory reform. Within the industrials sector, the Fund’s prefer-
ence for media cable and media non-cable as well as wireless names
boosted returns as these industries performed well during the period.
The Fund also benefited from reducing its portfolio duration (sensitivity
to interest rates) in the first half of the period, as interest rates rose fol-
lowing the announcement from the US Federal Reserve that it would
implement a second round of quantitative easing.

Conversely, the Fund’s shorter duration bias hurt performance in the
later half of the period when interest rates turned lower on rising oil
prices and the disastrous earthquake in Japan. In addition, as the yield
curve steepened near the end of 2010 and into early 2011, the Fund’s
yield curve-flattening bias (fewer holdings of short-dated bonds in favor
of longer-dated bonds) detracted from performance. Lastly, the Fund’s
financials and utilities holdings had a negative impact as both sectors
underperformed for the six-month period.

Describe recent portfolio activity.
During the six-month period, the Fund increased exposure to high yield
corporate credit in order to position itself to benefit from the positive
effects of an accommodative monetary policy fueling an economic
recovery and improving corporate fundamentals.

Describe Fund positioning at period end.
The Fund maintained diversified exposure across investment grade
and high yield corporate credits with a quality bias toward lower-quality
investment grade issues. The Fund ended the period with a smaller
allocation to financials in favor of the industrials and utilities sectors,
and a relatively short duration bias.

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

4  SEMI-ANNUAL REPORT  APRIL 30, 2011 

 



BlackRock Credit Allocation Income Trust I, Inc.

Fund Information   
Symbol on New York Stock Exchange (“NYSE”)  PSW 
Initial Offering Date  August 1, 2003 
Yield on Closing Market Price as of April 30, 2011 ($9.28)1  6.40% 
Current Monthly Distribution per Common Share2  $0.0495 
Current Annualized Distribution per Common Share2  $0.5940 
Leverage as of April 30, 20113  25% 
1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results. 
2 The distribution rate is not constant and is subject to change.   
3 Represents reverse repurchase agreements as a percentage of total managed assets, which is the total assets of the Fund (including any assets attributable to any borrowings) 
minus the sum of liabilities (other than borrowings representing financial leverage). For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks 
of Leveraging on page 14.   

 

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

  4/30/11  10/31/10  Change  High  Low 
Market Price  $ 9.28  $ 9.67  (4.03)%  $ 9.89  $ 8.52 
Net Asset Value  $10.79  $10.75  0.37%  $10.85  $10.24 

 

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

Portfolio Composition     
  4/30/11  10/31/10 
Corporate Bonds  77%  69% 
Preferred Securities  20  16 
U.S. Treasury Obligations  1  14 
Asset Backed Securities  1   
Taxable Municipal Bonds  1  1 

 

Credit Quality Allocations4     
  4/30/11  10/31/10 
AAA5  1%  14% 
AA/Aa  12  10 
A  22  23 
BBB/Baa  40  38 
BB/Ba  14  12 
B  7  1 
CCC/Caa  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. 

 

SEMI-ANNUAL REPORT  APRIL 30, 2011  5 

 



Fund Summary as of April 30, 2011 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 secondary investment objective of the Fund is to provide Common Shareholders with capital appreciation. The Fund
seeks to achieve its investment objec
tives by investing, under normal market conditions, at least 80% of its assets in credit-related
securities, including, but not limited to, investment grade corpo
rate 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.


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

Portfolio Management Commentary

How did the Fund perform?
For the six months ended April 30, 2011, the Fund returned 0.29%
based on market price and 3.73% based on NAV. For the same period,
the closed-end Lipper Corporate Debt Funds (BBB-Rated) category
posted an average return of (0.45)% based on market price and 2.46%
based on NAV. All returns reflect reinvestment of dividends. The Fund's
discount to NAV, which widened during the period, accounts for the dif-
ference between performance based on price and performance based
on NAV. The following discussion relates to performance based on NAV.

What factors influenced performance?
The primary driver of the Fund’s positive performance was its allocation
to high yield corporate credit, as the sector broadly rallied during the
period on improving fundamentals and continued signs of economic
recovery in the United States. Also contributing positively was the
Fund’s allocation and security selection within investment grade corpo-
rate credit. In particular, an allocation to capital securities, including
trust preferreds and hybrid securities, had a positive impact due to a
technical rally in that space sparked by the favorable outcome of finan-
cial regulatory reform. Within the industrials sector, the Fund’s prefer-
ence for media cable and media non-cable as well as wireless names
boosted returns as these industries performed well during the period.
The Fund also benefited from reducing its portfolio duration (sensitivity
to interest rates) in the first half of the period, as interest rates rose fol-
lowing the announcement from the US Federal Reserve that it would
implement a second round of quantitative easing.

Conversely, the Fund’s shorter duration bias hurt performance in the
later half of the period when interest rates turned lower on rising oil
prices and the disastrous earthquake in Japan. In addition, as the yield
curve steepened near the end of 2010 and into early 2011, the Fund’s
yield curve-flattening bias (fewer holdings of short-dated bonds in favor
of longer-dated bonds) detracted from performance. Lastly, the Fund’s
financials and utilities holdings had a negative impact as both sectors
underperformed for the six-month period.

Describe recent portfolio activity.
During the six-month period, the Fund increased exposure to high yield
corporate credit in order to position itself to benefit from the positive
effects of an accommodative monetary policy fueling an economic
recovery and improving corporate fundamentals.

Describe Fund positioning at period end.
The Fund maintained diversified exposure across investment grade and
high yield corporate credits with a quality bias toward lower-quality
investment grade issues. The Fund ended the period with a smaller allo-
cation to financials in favor of the industrials and utilities sectors, and a
relatively short duration bias.

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

6  SEMI-ANNUAL REPORT  APRIL 30, 2011 

 



BlackRock Credit Allocation Income Trust II, Inc.

Fund Information   
Symbol on NYSE  PSY 
Initial Offering Date  March 28, 2003 
Yield on Closing Market Price as of April 30, 2011 ($10.08)1  6.37% 
Current Monthly Distribution per Common Share2  $0.0535 
Current Annualized Distribution per Common Share2  $0.6420 
Leverage as of April 30, 20113  25% 
1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results. 
2 The distribution rate is not constant and is subject to change.   
3 Represents reverse repurchase agreements as a percentage of total managed assets, which is the total assets of the Fund (including any assets attributable to any borrowings) 
minus the sum of liabilities (other than borrowings representing financial leverage). For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks 
of Leveraging on page 14.   

 

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

  4/30/11  10/31/10  Change  High  Low 
Market Price  $10.08  $10.39  (2.98)%  $10.60  $ 9.23 
Net Asset Value  $11.63  $11.59  0.35%  $11.70  $11.01 

 

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

Portfolio Composition     
  4/30/11  10/31/10 
Corporate Bonds  76%  64% 
Preferred Securities  21  19 
U.S. Treasury Obligations  1  16 
Taxable Municipal Bonds  1  1 
Asset Backed Securities  1   

 

Credit Quality Allocations4     
  4/30/11  10/31/10 
AAA5  1%  16% 
AA/Aa  9  7 
A  23  21 
BBB/Baa  41  42 
BB/Ba  16  12 
B  7  1 
CCC/Caa  2   
Not Rated  1  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. 

 

SEMI-ANNUAL REPORT  APRIL 30, 2011  7 

 



Fund Summary as of April 30, 2011 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.

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

Portfolio Management Commentary

How did the Fund perform?
For the six months ended April 30, 2011, the Fund returned (1.30)%
based on market price and 3.95% based on NAV. For the same period,
the closed-end Lipper Corporate Debt Funds (BBB-Rated) category
posted an average return of (0.45)% based on market price and 2.46%
based on NAV. All returns reflect reinvestment of dividends. The Fund's
discount to NAV, which widened during the period, accounts for the dif-
ference between performance based on price and performance based
on NAV. The following discussion relates to performance based on NAV.

What factors influenced performance?
The primary driver of the Fund’s positive performance was its allocation
to high yield corporate credit, as the sector broadly rallied during the
period on improving fundamentals and continued signs of economic
recovery in the United States. Also contributing positively was the
Fund’s allocation and security selection within investment grade corpo-
rate credit. In particular, an allocation to capital securities, including
trust preferreds and hybrid securities, had a positive impact due to a
technical rally in that space sparked by the favorable outcome of finan-
cial regulatory reform. Within the industrials sector, the Fund’s prefer-
ence for media cable and media non-cable as well as wireless names
boosted returns as these industries performed well during the period.
The Fund also benefited from reducing its portfolio duration (sensitivity
to interest rates) in the first half of the period, as interest rates rose fol-
lowing the announcement from the US Federal Reserve that it would
implement a second round of quantitative easing.

Conversely, the Fund’s shorter duration bias hurt performance in the
later half of the period when interest rates turned lower on rising oil
prices and the disastrous earthquake in Japan. In addition, as the yield
curve steepened near the end of 2010 and into early 2011, the Fund’s
yield curve-flattening bias (fewer holdings of short-dated bonds in favor
of longer-dated bonds) detracted from performance. Lastly, the Fund’s
financials and utilities holdings had a negative impact as both sectors
underperformed for the six-month period.

Describe recent portfolio activity.
During the six-month period, the Fund increased exposure to high yield
corporate credit in order to position itself to benefit from the positive
effects of an accommodative monetary policy fueling an economic
recovery and improving corporate fundamentals.

Describe Fund positioning at period end.
The Fund maintained diversified exposure across investment grade and
high yield corporate credits with a quality bias toward lower-quality
investment grade issues. The Fund ended the period with a smaller
allocation to financials in favor of the industrials and utilities sectors,
and a relatively short duration bias.

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

8  SEMI-ANNUAL REPORT  APRIL 30, 2011 

 



BlackRock Credit Allocation Income Trust III

Fund Information   
Symbol on NYSE  BPP 
Initial Offering Date  February 28, 2003 
Yield on Closing Market Price as of April 30, 2011 ($10.74)1  6.03% 
Current Monthly Distribution per Common Share2  $0.054 
Current Annualized Distribution per Common Share2  $0.648 
Leverage as of April 30, 20113  19% 
1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results. 
2 The distribution rate is not constant and is subject to change.   
3 Represents reverse repurchase agreements as a percentage of total managed assets, which is the total assets of the Fund (including any assets attributable to any borrowings) 
minus the sum of liabilities (other than borrowings representing financial leverage). For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks 
of Leveraging on page 14.   

 

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

  4/30/11  10/31/10  Change  High  Low 
Market Price  $10.74  $11.23  (4.36)%  $11.31  $10.01 
Net Asset Value  $12.50  $12.41  0.73%  $12.50  $11.79 

 

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

Portfolio Composition     
  4/30/11  10/31/10 
Corporate Bonds  78%  72% 
Preferred Securities  20  18 
Taxable Municipal Bonds  1  1 
U.S. Treasury Obligations  1  9 

 

Credit Quality Allocations4     
  4/30/11  10/31/10 
AAA5  1%  9% 
AA/Aa  10  8 
A  18  26 
BBB/Baa  43  40 
BB/Ba  16  14 
B  9  1 
CCC/Caa  2  1 
Not Rated  1  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. 

 

SEMI-ANNUAL REPORT  APRIL 30, 2011  9 

 



Fund Summary as of April 30, 2011 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 appreciation.
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.

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

Portfolio Management Commentary

How did the Fund perform?
For the six months ended April 30, 2011, the Fund returned (1.74)%
based on market price and 3.15% based on NAV. For the same period,
the closed-end Lipper Corporate Debt Funds (BBB-Rated) category
posted an average return of (0.45)% based on market price and 2.46%
based on NAV. All returns reflect reinvestment of dividends. The Fund's
discount to NAV, which widened during the period, accounts for the dif-
ference between performance based on price and performance based
on NAV. The following discussion relates to performance based on NAV.

What factors influenced performance?
The primary driver of the Fund’s positive performance was its allocation
to high yield corporate credit, as the sector broadly rallied during the
period on improving fundamentals and continued signs of economic
recovery in the United States. Also contributing positively was the
Fund’s allocation and security selection within investment grade corpo-
rate credit. In particular, an allocation to capital securities, including
trust preferreds and hybrid securities, had a positive impact due to a
technical rally in that space sparked by the favorable outcome of finan-
cial regulatory reform. Within the industrials sector, the Fund’s prefer-
ence for media cable and media non-cable as well as wireless names
boosted returns as these industries performed well during the period.
The Fund also benefited from reducing its portfolio duration (sensitivity
to interest rates) in the first half of the period, as interest rates rose fol-
lowing the announcement from the US Federal Reserve that it would
implement a second round of quantitative easing.

Conversely, the Fund’s shorter duration bias hurt performance in the
later half of the period when interest rates turned lower on rising oil
prices and the disastrous earthquake in Japan. In addition, as the yield
curve steepened near the end of 2010 and into early 2011, the Fund’s
yield curve-flattening bias (fewer holdings of short-dated bonds in favor
of longer-dated bonds) detracted from performance. Lastly, the Fund’s
financials and utilities holdings had a negative impact as both sectors
underperformed for the six-month period.

Describe recent portfolio activity.
During the six-month period, the Fund increased exposure to high yield
corporate credit in order to position itself to benefit from the positive
effects of an accommodative monetary policy fueling an economic
recovery and improving corporate fundamentals.

Describe Fund positioning at period end.
The Fund maintained diversified exposure across investment grade
and high yield corporate credits with a quality bias toward lower-quality
investment grade issues. The Fund ended the period with a smaller
allocation to financials in favor of the industrials and utilities sectors,
and a relatively short duration bias.

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.

10  SEMI-ANNUAL REPORT  APRIL 30, 2011 

 



BlackRock Credit Allocation Income Trust IV

Fund Information   
Symbol on NYSE  BTZ 
Initial Offering Date  December 27, 2006 
Yield on Closing Market Price as of April 30, 2011 ($12.36)1  6.70% 
Current Monthly Distribution per Common Share2  $0.069 
Current Annualized Distribution per Common Share2  $0.828 
Leverage as of April 30, 20113  21% 
1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results. 
2 The distribution rate is not constant and is subject to change.   
3 Represents reverse repurchase agreements as a percentage of total managed assets, which is the total assets of the Fund (including any assets attributable to any borrowings) 
minus the sum of liabilities (other than borrowings representing financial leverage). For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks 
of Leveraging on page 14.   

 

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

  4/30/11  10/31/10  Change  High  Low 
Market Price  $12.36  $13.02  (5.07)%  $13.20  $11.66 
Net Asset Value  $14.41  $14.46  (0.35)%  $14.56  $13.69 

 

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:

Portfolio Composition     
  4/30/11  10/31/10 
Corporate Bonds  73%  64% 
Preferred Securities  22  19 
U.S. Treasury Obligations  2  15 
Taxable Municipal Bonds  2  2 
Asset Backed Securities  1   

 

Credit Quality Allocations4     
  4/30/11  10/31/10 
AA/Aa  7%  11% 
A  26  22 
BBB/Baa  40  44 
BB/Ba  15  19 
B  7  2 
CCC/Caa  2   
Not Rated  3  2 
4 Using the higher of S&P’s or Moody’s ratings.     

 

SEMI-ANNUAL REPORT  APRIL 30, 2011  11 

 



Fund Summary as of April 30, 2011 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.

Portfolio Management Commentary

How did the Fund perform?
For the six months ended April 30, 2011, the Fund returned 12.37%
based on market price and 6.49% based on NAV. For the same period,
the closed-end Lipper Loan Participation Funds category posted an
average return of 11.45% based on market price and 6.56% based on
NAV. All returns reflect reinvestment of dividends. The Fund's premium
to NAV, which widened during the period, accounts for the difference
between performance based on price and performance based on NAV.
The following discussion relates to performance based on NAV.

What factors influenced performance?
The main driver of positive performance for the period was the Fund’s
allocation (approximately 10% of the portfolio) to high yield bonds, as
the asset class outperformed Floating Rate Loan Interests (bank loans).
In addition, the Fund maintained its level of leverage at or above the
Lipper category average, which benefited the Fund’s performance rela-
tive to its peer group competitors that do not employ leverage, as would
be expected when markets are advancing.

As a matter of investment style, the Fund holds a considerable alloca-
tion to foreign bonds (approximately 30% of the portfolio). Many of
those non-US issuers have investment grade credit quality ratings,
such as Gazprom (Russia), which underperformed the Fund’s high
yield bond holdings.

The Fund uses foreign currency exchange contracts to manage currency
risk in the portfolio. The net effect of the contracts duing the period
was negative.

Describe recent portfolio activity.
During the six-month period, the Fund decreased its exposure to higher-
quality high yield credits and increased exposure to high yield credits
with mid-range quality ratings as the economy gradually expanded and
a robust new-issue market provided greater access to attractive oppor-
tunities. Relative to its competitors, the Fund continues to maintain a
bias towards higher-quality and more liquid borrowers, sectors and loan
structures, particularly as loan prices generally are approaching par.

Describe Fund positioning at period end.
At period end, the Fund held 85% of its total portfolio in bank loans
and 15% in fixed-rate bonds, primarily high yield, with the remainder
invested in a mix of convertible bonds, preferred securities, equities and
cash. The Fund ended the period with leverage at approximately 31% of
its total managed assets.

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

12  SEMI-ANNUAL REPORT  APRIL 30, 2011 

 



BlackRock Floating Rate Income Trust

Fund Information   
Symbol on NYSE  BGT 
Initial Offering Date  August 30, 2004 
Yield on Closing Market Price as of April 30, 2011 ($15.65)1  5.94% 
Current Monthly Distribution per Common Share2  $0.0775 
Current Annualized Distribution per Common Share2  $0.9300 
Leverage as of April 30, 20113  31% 
1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results. 
2 The distribution rate is not constant and is subject to change.   
3 Represents the loan outstanding as a percentage of total managed assets, which is the total assets of the Fund (including any assets attributable to any borrowings) minus the sum 
of liabilities (other than borrowings representing financial leverage). For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging 
on page 14.   

 

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

  4/30/11  10/31/10  Change  High  Low 
Market Price  $15.65  $14.52  7.78%  $17.00  $14.04 
Net Asset Value  $14.79  $14.48  2.14%  $14.80  $14.35 

 

The following charts show the portfolio composition of the Fund’s long-term investments and credit quality allocations of the Fund’s long-term investments
excluding common stocks and floating rate loan interests:

Portfolio Composition     
  4/30/11  10/31/10 
Floating Rate Loan Interests  85%  79% 
Corporate Bonds  11  16 
Foreign Agency Obligations  2  4 
Other Interests  1  1 
Asset Backed Securities  1   

 

Credit Quality Allocations4     
  4/30/11  10/31/10 
AA/Aa  3%   
A  9  4% 
BBB/Baa  10  21 
BB/Ba  21  23 
B  37  29 
CCC/Caa    1 
Not Rated  20  225 
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.   

 

SEMI-ANNUAL REPORT  APRIL 30, 2011  13 

 



The Benefits and Risks of Leveraging

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

The Funds may utilize leverage by borrowing through a credit facility or
entering into reverse repurchase agreements. PSW, PSY, BPP, BTZ and BGT
had auction market preferred shares (“Preferred Shares”) issuances out-
standing during the six-month period ended April 30, 2011. In general, the
concept of leveraging is based on the premise that the cost of assets to
be obtained from leverage, which will be based on short-term interest
rates, will normally 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 capitalization is $100 million
and it borrows an additional $30 million, creating a total value of $130 mil-
lion available for investment 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 borrowing cost and
interest expense on the $30 million of borrowings based on the lower short-
term interest rates. At the same time, the securities purchased by the Fund
with assets received from the borrowings earn income based on long-term
interest rates. In this case, the borrowing cost and interest expense of the
borrowings is significantly lower than the income earned on the Fund’s
long-term investments, and therefore 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
portfolio 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 does not fluctuate in relation to interest
rates. As a result, changes in interest rates can influence each Fund’s NAV
positively or negatively in addition to the impact on Fund performance from
leverage and borrowings discussed above.

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 in the Funds’ NAVs, market prices and dividend
rates than comparable portfolios 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 Common 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 leverage 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 abil-
ity to invest in certain types of securities or use certain types of hedging
strategies. 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, each Fund is permitted to bor-
row up to 33 1 / 3 % of its total managed assets. Under normal circumstances,
each Fund anticipates that the total economic leverage from reverse repur-
chase agreements and credit facility borrowings will not exceed 33 1 / 3 % of its
total managed assets at the time such leverage is incurred. As of April 30,
2011, the Funds had economic leverage from reverse repurchase agree-
ments and/or credit facility borrowings as a percentage of their total man-
aged assets as follows:

  Percent of 
  Leverage 
PSW  25% 
PSY  25% 
BPP  19% 
BTZ  21% 
BGT  31% 

 

14  SEMI-ANNUAL REPORT  APRIL 30, 2011 

 



Derivative Financial Instruments

The Funds may invest in various derivative financial instruments, including
financial futures contracts, swaps, options and foreign currency exchange
contracts, as specified in Note 2 of the Notes to Financial Statements,
which may constitute forms of economic leverage. Such instruments are
used to obtain exposure to a market without owning or taking physical cus-
tody of securities or to hedge market, equity, credit, foreign currency
exchange rate, interest rate and/or other risks. Such derivative financial
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 or illiquidity of the derivative instru-
ment. The Funds’ ability to use a derivative instrument successfully
depends on the investment advisor’s ability to predict pertinent market
movements accurately, which cannot be assured. The use of derivative
financial instruments may result in losses greater than if they had not been
used, may require a Fund to sell or purchase portfolio investments at inop-
portune times or for distressed values, may limit the amount of apprecia-
tion a Fund can realize on an investment, may result in lower dividends
paid to shareholders or may cause a Fund to hold an investment that it
might otherwise sell. The Funds’ investments in these instruments are dis-
cussed in detail in the Notes to Financial Statements.

SEMI-ANNUAL REPORT  APRIL 30, 2011  15 

 



BlackRock Credit Allocation Income Trust I, Inc. (PSW)
Schedule of Investments
April 30, 2011 (Unaudited)
(Percentages shown are based on Net Assets)

  Par   
Asset-Backed Securities  (000)  Value 
Atrium CDO Corp., Series 5A, Class A4,     
2.83%, 7/20/20 (a)(b)  $ 650  $ 542,750 
SLM Student Loan Trust, Series 2004-B, Class A2,     
0.51%, 6/15/21 (b)  573  558,562 
Total Asset-Backed Securities — 1.0%    1,101,312 
Corporate Bonds     
Aerospace & Defense — 1.8%     
BE Aerospace, Inc., 8.50%, 7/01/18  560  624,400 
Bombardier, Inc., 7.75%, 3/15/20 (a)  720  801,900 
Huntington Ingalls Industries, Inc. (a):     
6.88%, 3/15/18  90  94,725 
7.13%, 3/15/21  90  94,725 
Kratos Defense & Security Solutions, Inc.,     
10.00%, 6/01/17 (a)  342  375,345 
    1,991,095 
Airlines — 0.9%     
American Airlines Pass-Through Trust, Series 2011-1,     
Class A, 5.25%, 7/31/22  325  315,250 
Continental Airlines Pass-Through Certificates,     
Series 2009-2, Class B, 9.25%, 5/10/17  356  375,789 
Delta Air Lines, Inc., Series 02G1, 6.72%, 7/02/24  294  297,722 
    988,761 
Auto Components — 0.7%     
Icahn Enterprises LP:     
7.75%, 1/15/16  200  206,000 
8.00%, 1/15/18  500  516,250 
    722,250 
Beverages — 0.5%     
Constellation Brands, Inc., 7.25%, 5/15/17  460  501,400 
Building Products — 0.5%     
Building Materials Corp. of America (a):     
7.00%, 2/15/20  85  88,613 
6.75%, 5/01/21  270  273,712 
Nortek, Inc., 10.00%, 12/01/18 (a)  220  235,400 
    597,725 
Capital Markets — 4.1%     
Ameriprise Financial, Inc., 5.30%, 3/15/20  750  810,774 
The Goldman Sachs Group, Inc., 6.25%, 2/01/41 (c)  1,050  1,077,214 
Macquarie Bank Ltd., 6.63%, 4/07/21 (a)(c)  525  543,407 
Morgan Stanley, 5.75%, 1/25/21 (c)  1,025  1,066,167 
UBS AG (c):     
2.25%, 1/28/14  375  379,631 
5.88%, 7/15/16  650  714,591 
    4,591,784 
Chemicals — 0.4%     
CF Industries, Inc., 7.13%, 5/01/20  250  286,250 
Omnova Solutions, Inc., 7.88%, 11/01/18 (a)  170  174,250 
    460,500 
Commercial Banks — 8.4%     
Amsouth Bank, 4.85%, 4/01/13  200  203,739 
Associated Banc-Corp., 5.13%, 3/28/16  515  524,774 
BNP Paribas, 3.60%, 2/23/16 (c)  1,020  1,037,168 
Branch Banking & Trust Co. (b):     
1.00%, 9/13/16  250  241,091 
1.00%, 5/23/17  150  140,613 

 

    Par   
Corporate Bonds    (000)  Value 
Commercial Banks (concluded)       
CIT Group, Inc., 6.63%, 4/01/18 (a)  $ 378  $ 406,034 
City National Corp., 5.25%, 9/15/20    550  560,534 
Comerica, Inc., 3.00%, 9/16/15    550  553,027 
Credit Agricole SA, 8.38%, 10/29/49 (a)(b)(c)(d)    350  382,375 
Discover Bank, 8.70%, 11/18/19    300  368,905 
Fifth Third Bamcorp, 3.63%, 1/25/16    650  659,479 
HSBC Holdings Plc, 5.10%, 4/05/21 (c)    1,300  1,338,016 
KeyCorp, 5.10%, 3/24/21    180  184,359 
Lloyds TSB Bank Plc, 4.88%, 1/21/16    200  209,937 
Regions Financial Corp.:       
4.88%, 4/26/13    600  610,877 
5.75%, 6/15/15    460  473,800 
SVB Financial Group, 5.38%, 9/15/20    550  546,967 
Societe Generale, 5.20%, 4/15/21 (a)    700  706,093 
SunTrust Banks, Inc., 3.60%, 4/15/16    200  202,578 
      9,350,366 
Commercial Services & Supplies — 3.8%       
Aviation Capital Group Corp. (a):       
7.13%, 10/15/20 (c)    2,200  2,280,823 
6.75%, 4/06/21    550  554,306 
Casella Waste Systems, Inc., 7.75%, 2/15/19 (a)    149  152,352 
Clean Harbors, Inc., 7.63%, 8/15/16    306  327,420 
Corrections Corp. of America, 7.75%, 6/01/17    775  848,625 
Mobile Mini, Inc., 7.88%, 12/01/20 (a)    65  69,063 
      4,232,589 
Communications Equipment — 1.2%       
Avaya, Inc.:       
9.75%, 11/01/15    200  206,500 
7.00%, 4/01/19 (a)    125  123,750 
Brocade Communications Systems, Inc., 6.88%, 1/15/20  700  761,250 
CC Holdings GS V LLC, 7.75%, 5/01/17 (a)    220  243,100 
      1,334,600 
Construction Materials — 0.2%       
Inversiones CMPC SA, 4.75%, 1/19/18 (a)    200  197,334 
Consumer Finance — 5.6%       
American Express Credit Corp., 2.75%, 9/15/15 (c)    1,400  1,395,572 
Capital One Bank USA NA, 8.80%, 7/15/19    775  992,535 
Ford Motor Credit Co. LLC, 7.00%, 4/15/15    100  109,829 
Inmarsat Finance Plc, 7.38%, 12/01/17 (a)    520  549,900 
SLM Corp., 6.25%, 1/25/16    3,050  3,234,049 
      6,281,885 
Containers & Packaging — 1.5%       
Ball Corp.:       
7.13%, 9/01/16    400  436,000 
6.75%, 9/15/20    505  531,512 
Bemis Co., Inc., 6.80%, 8/01/19    200  230,622 
Crown Americas LLC, 6.25%, 2/01/21 (a)    200  205,500 
Owens-Brockway Glass Container, Inc., 6.75%, 12/01/14  135  137,869 
Rock-Tenn Co., 9.25%, 3/15/16    75  81,750 
      1,623,253 
Diversified Financial Services — 6.0%       
Ally Financial, Inc.:       
4.50%, 2/11/14    225  227,250 
8.30%, 2/12/15    390  438,750 
8.00%, 11/01/31    470  529,925 
Bank of America Corp., 3.63%, 3/17/16    1,175  1,180,968 
Citigroup, Inc., 4.59%, 12/15/15    225  238,108 
General Electric Capital Corp., 5.30%, 2/11/21 (c)    1,125  1,167,338 
Moody’s Corp., 6.06%, 9/07/17    2,500  2,575,147 

 

  Portfolio Abbreviations         
To simplify the listings of portfolio holdings in the Schedules of  CAD  Canadian Dollar  GO  General Obligation Bonds 
Investments, the names of many of the securities have been  CHF  Swiss Franc  LIBOR  London InterBank Offered Rate 
abbreviated according to the following list:  EUR  Euro  RB  Revenue Bonds 
    FKA  Formerly Known As  USD  US Dollar 
    GBP  British Pound     
See Notes to Financial Statements.         
16  SEMI-ANNUAL REPORT   APRIL 30, 2011     

 



BlackRock Credit Allocation Income Trust I, Inc. (PSW)
Schedule of Investments (continued)
(Percentages shown are based on Net Assets)

  Par   
Corporate Bonds  (000)  Value 
Diversified Financial Services (concluded)     
Reynolds Group Issuer, Inc. (a):     
6.88%, 2/15/21  $ 155  $ 159,844 
8.25%, 2/15/21  190  193,088 
    6,710,418 
Diversified Telecommunication Services — 4.7%     
AT&T, Inc., 6.30%, 1/15/38  1,000  1,054,861 
Level 3 Financing, Inc.:     
8.75%, 2/15/17  390  403,650 
10.00%, 2/01/18  130  140,400 
9.38%, 4/01/19 (a)  210  223,125 
Qwest Corp., 8.38%, 5/01/16  390  463,125 
Telecom Italia Capital SA, 6.18%, 6/18/14  225  245,394 
Telefonica Emisiones SAU, 5.46%, 2/16/21  310  321,752 
Verizon Communications, Inc.:     
1.95%, 3/28/14 (c)  875  882,521 
7.35%, 4/01/39  925  1,107,538 
Windstream Corp., 7.88%, 11/01/17  400  432,000 
    5,274,366 
Electric Utilities — 1.0%     
Progress Energy, Inc., 7.00%, 10/30/31  1,000  1,166,797 
Electronic Equipment, Instruments     
& Components — 0.8%     
Jabil Circuit, Inc., 8.25%, 3/15/18  200  229,500 
NXP BV, 3.05%, 10/15/13 (b)  700  696,500 
    926,000 
Energy Equipment & Services — 0.9%     
Ensco Plc, 4.70%, 3/15/21  460  464,427 
Frac Tech Services LLC, 7.13%, 11/15/18 (a)  85  90,525 
Key Energy Service, Inc., 6.75%, 3/01/21  175  179,812 
MEG Energy Corp., 6.50%, 3/15/21 (a)  225  230,906 
    965,670 
Food & Staples Retailing — 2.5%     
CVS Caremark Corp., 6.30%, 6/01/62 (b)  800  792,000 
Wal-Mart Stores, Inc., 6.20%, 4/15/38  1,825  2,017,103 
    2,809,103 
Food Products — 1.0%     
Blue Merger Sub, Inc., 7.63%, 2/15/19 (a)  100  102,375 
Kraft Foods, Inc.:     
6.50%, 8/11/17  385  446,565 
6.13%, 8/23/18  390  442,247 
Smithfield Foods, Inc., 10.00%, 7/15/14  86  101,910 
    1,093,097 
Gas Utilities — 0.1%     
Targa Resources Partners LP, 6.88%, 2/01/21 (a)  115  114,425 
Health Care Equipment & Supplies — 1.5%     
Boston Scientific Corp.:     
4.50%, 1/15/15  51  53,492 
6.40%, 6/15/16  45  50,412 
5.13%, 1/12/17  181  190,419 
7.38%, 1/15/40  690  798,000 
Fresenius US Finance II, Inc., 9.00%, 7/15/15 (a)  500  573,125 
    1,665,448 
Health Care Providers & Services — 2.7%     
Aetna, Inc., 6.75%, 12/15/37  800  910,806 
Aviv Healthcare Properties LP, 7.75%, 2/15/19 (a)  105  110,775 
HCA, Inc.:     
8.50%, 4/15/19  125  138,750 
7.25%, 9/15/20  195  209,625 
Tenet Healthcare Corp.:     
10.00%, 5/01/18  350  406,000 
8.88%, 7/01/19  250  282,500 
UnitedHealth Group, Inc., 6.88%, 2/15/38  800  919,714 
    2,978,170 
Household Durables — 0.3%     
Cemex Espana Luxembourg, 9.25%, 5/12/20 (a)  365  373,212 

 

    Par   
Corporate Bonds    (000)  Value 
IT Services — 0.5%       
First Data Corp. (a):       
7.38%, 6/15/19  $ 170  $ 173,187 
8.25%, 1/15/21    40  39,800 
12.63%, 1/15/21    275  301,469 
      514,456 
Independent Power Producers & Energy Traders — 0.7%     
AES Corp., 9.75%, 4/15/16    235  272,012 
Energy Future Intermediate Holding Co. LLC,       
10.00%, 12/01/20    345  370,903 
NRG Energy, Inc., 8.25%, 9/01/20    115  121,038 
      763,953 
Insurance — 7.0%       
The Allstate Corp., 7.45%, 5/16/19    900  1,084,129 
American International Group, Inc.,       
6.40%, 12/15/20 (c)(d)    410  448,547 
Aon Corp., 5.00%, 9/30/20 (c)    1,600  1,642,432 
Dai-ichi Life Insurance Co., Ltd.,       
7.25%, 12/31/49 (a)(b)(d)    138  138,609 
Forethough Financial Group, 8.63%, 4/15/21 (a)    250  251,894 
Genworth Financial, Inc., 7.63%, 9/24/21    225  231,090 
Lincoln National Corp., 6.25%, 2/15/20 (c)    800  898,462 
Manulife Financial Corp., 4.90%, 9/17/20 (c)    1,000  1,001,433 
Northwestern Mutual Life Insurance,       
6.06%, 3/30/40 (a)(c)    900  967,536 
Principal Financial Group, Inc., 8.88%, 5/15/19    225  288,098 
Prudential Financial, Inc., 6.63%, 12/01/37 (c)    800  892,352 
      7,844,582 
Life Sciences Tools & Services — 1.9%       
Bio-Rad Laboratories, Inc., 8.00%, 9/15/16    865  962,312 
Life Technologies Corp., 6.00%, 3/01/20    1,000  1,095,219 
      2,057,531 
Machinery — 1.1%       
Ingersoll-Rand Global Holding Co., Ltd.,       
9.50%, 4/15/14    800  963,298 
Navistar International Corp., 8.25%, 11/01/21    230  256,450 
      1,219,748 
Media — 8.2%       
CSC Holdings LLC:       
8.50%, 6/15/15    400  436,500 
8.63%, 2/15/19    275  316,938 
Cengage Learning Acquisitions, Inc.,       
10.50%, 1/15/15 (a)    365  375,037 
Comcast Corp., 6.30%, 11/15/17    800  919,931 
Cox Communications, Inc., 8.38%, 3/01/39 (a)    800  1,056,769 
DISH DBS Corp., 7.00%, 10/01/13    450  486,000 
DirectTV Holdings LLC, 5.00%, 3/01/21    600  615,563 
Gannett Co., Inc., 9.38%, 11/15/17    450  506,250 
Intelsat Bermuda Ltd. (e):       
11.50%, 2/04/17 (a)    60  65,700 
11.50%, 2/04/17    90  98,550 
Kabel BW Erste Beteiligungs GmbH,       
7.50%, 3/15/19 (a)    230  235,750 
News America, Inc., 6.15%, 3/01/37    950  970,810 
Time Warner Cable, Inc., 6.75%, 6/15/39    925  1,005,415 
Time Warner, Inc., 7.70%, 5/01/32    950  1,145,338 
UPC Germany GmbH, 8.13%, 12/01/17 (a)    240  253,800 
Virgin Media Secured Finance Plc, 6.50%, 1/15/18    600  657,000 
      9,145,351 
Metals & Mining — 2.0%       
Alcoa, Inc., 5.40%, 4/15/21    580  588,913 
Freeport-McMoRan Corp., 7.13%, 11/01/27    700  744,669 
JMC Steel Group, 8.25%, 3/15/18 (a)    75  78,563 
Novelis, Inc., 8.75%, 12/15/20    240  268,200 
Teck Resources Ltd., 10.75%, 5/15/19    400  511,520 
United States Steel Corp., 7.38%, 4/01/20    40  42,200 
      2,234,065 

 

See Notes to Financial Statements.     
SEMI-ANNUAL REPORT  APRIL 30, 2011  17 

 



BlackRock Credit Allocation Income Trust I, Inc. (PSW)
Schedule of Investments (continued)
(Percentages shown are based on Net Assets)

  Par   
Corporate Bonds  (000)  Value 
Multi-Utilities — 1.5%     
CenterPoint Energy, Inc.:     
5.95%, 2/01/17  $ 750  $ 825,322 
6.50%, 5/01/18  775  877,166 
    1,702,488 
Multiline Retail — 1.3%     
Dollar General Corp., 10.63%, 7/15/15  750  802,500 
JC Penney Co., Inc., 5.65%, 6/01/20  700  698,250 
    1,500,750 
Oil, Gas & Consumable Fuels — 7.6%     
Anadarko Petroleum Corp.:     
5.95%, 9/15/16  289  322,810 
6.38%, 9/15/17  10  11,295 
BP Capital Markets Plc (c):     
3.88%, 3/10/15  350  367,096 
3.20%, 3/11/16  425  428,451 
Buckeye Partners LP, 4.88%, 2/01/21  225  228,908 
Chesapeake Energy Corp., 6.13%, 2/15/21  770  795,025 
Consol Energy, Inc., 6.38%, 3/01/21 (a)  195  195,975 
Copano Energy LLC, 7.13%, 4/01/21  130  133,250 
Denbury Resources, Inc., 6.38%, 8/15/21  135  139,050 
Enbridge Energy Partners LP, 9.88%, 3/01/19  475  627,478 
Energy XXI Gulf Coast, Inc., 7.75%, 6/15/19 (a)  240  245,400 
Enterprise Products Operating LLC, 6.65%, 4/15/18  1,000  1,160,801 
Forest Oil Corp., 7.25%, 6/15/19  105  109,200 
Kinder Morgan Energy Partners LP, 6.85%, 2/15/20  1,000  1,164,871 
Linn Energy LLC, 7.75%, 2/01/21 (a)  245  262,456 
Marathon Petroleum Corp., 3.50%, 3/01/16 (a)  325  329,307 
ONEOK Partners LP, 8.63%, 3/01/19  800  1,018,774 
Oasis Petroleum, Inc., 7.25%, 2/01/19 (a)  90  90,900 
Petrobras International Finance Co., 3.88%, 1/27/16  350  354,822 
Range Resources Corp., 6.75%, 8/01/20  200  214,000 
SM Energy Co., 6.63%, 2/15/19 (a)  115  118,738 
SandRidge Energy, Inc., 7.50%, 3/15/21 (a)  170  178,925 
    8,497,532 
Paper & Forest Products — 2.5%     
Georgia-Pacific LLC, 8.25%, 5/01/16 (a)  785  890,975 
International Paper Co.:     
7.50%, 8/15/21  775  925,046 
7.30%, 11/15/39  800  913,506 
    2,729,527 
Pharmaceuticals — 7.6%     
Bristol-Myers Squibb Co., 5.88%, 11/15/36  892  981,919 
GlaxoSmithKline Capital, Inc., 6.38%, 5/15/38 (c)  1,690  1,933,384 
Merck & Co., Inc. (c):     
6.50%, 12/01/33  475  565,756 
6.55%, 9/15/37  1,504  1,788,824 
Pfizer, Inc., 7.20%, 3/15/39  2,500  3,157,112 
    8,426,995 
Real Estate Investment Trusts (REITs) — 1.9%     
AvalonBay Communities, Inc., 6.10%, 3/15/20  800  903,629 
ERP Operating LP, 5.75%, 6/15/17  800  896,113 
HCP, Inc., 5.38%, 2/01/21  250  259,864 
    2,059,606 
Real Estate Management & Development — 0.1%     
Realogy Corp., 7.88%, 2/15/19 (a)  160  161,600 
Road & Rail — 1.6%     
Asciano Finance Ltd., 5.00%, 4/07/18 (a)  200  203,493 
Avis Budget Car Rental LLC, 8.25%, 1/15/19  155  164,687 
Florida East Coast Railway Corp., 8.13%, 2/01/17 (a)  40  42,400 
The Hertz Corp., 6.75%, 4/15/19 (a)  207  211,140 
Norfolk Southern Corp., 6.00%, 3/15/2105  1,200  1,180,291 
    1,802,011 

 

  Par   
Corporate Bonds  (000)  Value 
Semiconductors & Semiconductor Equipment — 0.6%     
Advanced Micro Devices, Inc., 7.75%, 8/01/20  $ 190  $ 198,075 
KLA-Tencor Corp., 6.90%, 5/01/18  461  521,613 
    719,688 
Specialty Retail — 1.1%     
AutoNation, Inc., 6.75%, 4/15/18  445  466,137 
Best Buy Co., Inc., 5.50%, 3/15/21  350  352,088 
Claire’s Escrow Corp., 8.88%, 3/15/19 (a)  125  121,563 
Limited Brands, Inc., 7.00%, 5/01/20  230  243,800 
    1,183,588 
Tobacco — 1.4%     
Altria Group, Inc., 10.20%, 2/06/39  1,050  1,537,096 
Wireless Telecommunication Services — 2.5%     
American Tower Corp., 4.50%, 1/15/18  450  444,673 
Cricket Communications, Inc., 7.75%, 5/15/16  155  165,463 
Crown Castle Towers LLC (a):     
5.50%, 1/15/17  275  293,290 
6.11%, 1/15/40  300  324,682 
Digicel Group Ltd., 8.25%, 9/01/17 (a)  125  132,500 
Intelsat Jackson Holdings SA (a):     
7.25%, 4/01/19  50  50,844 
7.25%, 4/01/21  140  142,100 
Nextel Communications, Inc., Series E,     
6.88%, 10/31/13  195  196,950 
SBA Tower Trust, 5.10%, 4/15/42 (a)  1,000  1,025,000 
    2,775,502 
Total Corporate Bonds — 102.2%    113,826,317 
Preferred Securities     
Capital Trusts     
Capital Markets — 4.7%     
Ameriprise Financial, Inc., 7.52%, 6/01/66 (b)  500  535,625 
State Street Capital Trust III, 8.25% (b)(d)  725  725,819 
State Street Capital Trust IV, 1.31%, 6/01/67 (b)  4,740  3,968,959 
    5,230,403 
Commercial Banks — 4.1%     
ABN AMRO North America Holding Preferred Capital     
Repackaging Trust I, 6.52% (a)(b)(d)  800  760,000 
BNP Paribas, 7.20% (a)(b)(c)(d)  300  297,000 
Barclays Bank Plc (a)(b)(d):     
5.93%, 9/29/49 (c)  425  405,875 
7.43%, 12/15/49  150  155,700 
Credit Agricole SA, 6.64% (a)(b)(c)(d)  350  322,805 
Dresdner Funding Trust I, 8.15%, 6/30/31 (a)  530  519,400 
M&T Capital Trust II, 8.28%, 6/01/27  910  929,258 
National City Preferred Capital Trust I, 12.00% (b)(d)  300  336,261 
USB Capital XIII Trust, 6.63%, 12/15/39  825  880,877 
    4,607,176 
Diversified Financial Services — 2.7%     
ING Capital Funding Trust III, 8.44% (b)(d)  400  386,006 
JPMorgan Chase Capital XXIII, 1.31%, 5/15/77 (b)  3,085  2,593,692 
    2,979,698 
Electric Utilities — 0.5%     
PPL Capital Funding, 6.70%, 3/30/67 (b)  500  496,875 
Insurance — 7.6%     
AXA SA, 6.38% (a)(b)(d)  1,000  921,250 
Ace Capital Trust II, 9.70%, 4/01/30  500  652,505 
The Allstate Corp., 6.50%, 5/15/67 (b)  500  516,250 
Chubb Corp., 6.38%, 3/29/67 (b)(c)  500  535,000 
Farmers Exchange Capital, 7.05%, 7/15/28 (a)  500  503,883 
Great-West Life & Annuity Insurance Co.,     
7.15%, 5/16/46 (a)(b)(c)  500  515,000 

 

See Notes to Financial Statements.   
18  SEMI-ANNUAL REPORT  APRIL 30, 2011 

 



BlackRock Credit Allocation Income Trust I, Inc. (PSW)
Schedule of Investments (continued)
(Percentages shown are based on Net Assets)

  Par   
Capital Trusts  (000)  Value 
Insurance (concluded)     
Liberty Mutual Group, Inc., 10.75%, 6/15/88 (a)(b)  $ 500  $ 680,000 
Lincoln National Corp., 7.00%, 5/17/66 (b)  500  516,900 
MetLife, Inc., 6.40%, 12/15/66  500  500,018 
Reinsurance Group of America, 6.75%, 12/15/65 (b)  700  689,757 
Swiss Re Capital I LP, 6.85% (a)(b)(d)  450  447,195 
ZFS Finance (USA) (a)(b):     
Trust II, 6.45%, 12/15/65  1,800  1,885,500 
Trust IV, 5.88%, 5/09/32  146  145,553 
    8,508,811 
Multi-Utilities — 0.9%     
Dominion Resources Capital Trust I, 7.83%, 12/01/27  500  514,550 
Dominion Resources, Inc., 7.50%, 6/30/66 (b)  500  530,000 
    1,044,550 
Oil, Gas & Consumable Fuels — 1.3%     
Enterprise Products Operating LLC, 8.38%, 8/01/66 (b)  825  896,156 
TransCanada PipeLines Ltd., 6.35%, 5/15/67 (b)  500  509,289 
    1,405,445 
Total Capital Trusts — 21.8%    24,272,958 
Preferred Stocks  Shares   
Auto Components — 0.1%     
Dana Holding Corp., 4.00% (a)  1,000  156,125 
Commercial Banks — 0.9%     
SG Preferred Capital II, 6.30%  1,000  968,750 
Thrifts & Mortgage Finance — 0.0%     
Fannie Mae, 8.25% (f)  3,000  6,120 
Freddie Mac, Series Z, 8.38% (f)  3,000  6,060 
    12,180 
Wireless Telecommunication Services — 2.8%     
Centaur Funding Corp., 9.08%  2,720  3,054,900 
Total Preferred Stocks — 3.8%    4,191,955 
Trust Preferreds     
Diversified Financial Services — 0.5%     
GMAC Capital Trust I, Series 2, 8.13%, 2/15/40 (b)  566  587,994 
Total Trust Preferreds — 0.5%    587,994 
Total Preferred Securities — 26.1%    29,052,907 
  Par   
Taxable Municipal Bonds  (000)   
Metropolitan Transportation Authority, RB,     
Build America Bonds, 6.55%, 11/15/31  $ 800  838,744 
State of California, GO, Build America Bonds,     
7.35%, 11/01/39  205  227,478 
Total Taxable Municipal Bonds — 1.0%    1,066,222 
U.S. Treasury Obligations     
U.S. Treasury Notes:     
3.63%, 2/15/21  528  542,356 
4.75%, 2/15/41  600  633,937 
Total U.S. Treasury Obligations — 1.0%    1,176,293 
Total Long-Term Investments     
(Cost — $140,161,026) — 131.3%    146,223,051 

 

Short-Term Securities  Shares  Value 
BlackRock Liquidity Funds, TempFund,     
Institutional Class, 0.10% (g)(h)  183,531  $ 183,531 
Total Short-Term Securities     
(Cost — $183,531) — 0.2%    183,531 
Options Purchased  Contracts   
Over-the-Counter Put Options — 0.1%     
S&P 500 Index, Strike Price USD 1,250.00,     
Expires 9/17/11, Broker Credit Suisse International  28  69,440 
Total Options Purchased     
(Cost — $135,240) — 0.1%    69,440 
Total Investments Before Options Written     
(Cost — $140,479,797) — 131.6%    146,476,022 
  Notional   
  Amount   
Options Written  (000)   
Over-the-Counter Call Swaptions — (0.1)%     
Pay a fixed rate of 4.03% and receive a floating rate     
based on 3-month LIBOR, Expires 4/16/12,     
Broker UBS AG  $ 1,800  (77,823) 
Over-the-Counter Put Swaptions — (0.1)%     
Receive a fixed rate of 4.03% and pay a floating rate     
based on 3-month LIBOR, Expires 4/16/12,     
Broker UBS AG  1,800  (50,348) 
Sold credit default protection on Dow Jones CDX     
North America Investment Grade Series 16,     
Strike Price $120.00, Expires 9/21/11,     
Broker Credit Suisse International  35,000  (25,652) 
    (76,000) 
Total Options Written     
(Premiums Received — $255,600) — (0.2)%    (153,823) 
Total Investments, Net of Options Written     
(Cost — $140,735,397*) — 131.4%    146,322,199 
Liabilities in Excess of Other Assets — (31.4)%    (35,006,196) 
Net Assets — 100.0%    $111,316,003 


* The cost and unrealized appreciation (depreciation) of investments as of April 30,

2011, as computed for federal income tax purposes, were as follows:

Aggregate cost  $ 140,381,755 
Gross unrealized appreciation  $     6,636,174 
Gross unrealized depreciation  (541,907) 
Net unrealized appreciation  $     6,094,267 


(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) All or a portion of security has been pledged as collateral in connection with open
reverse repurchase agreements.
(d) Security is perpetual in nature and has no stated maturity date.
(e) Represents a payment-in-kind security which may pay interest/dividends in
additional par/shares.
(f) Non-income producing security.

See Notes to Financial Statements.     
SEMI-ANNUAL REPORT  APRIL 30, 2011  19 

 



BlackRock Credit Allocation Income Trust I, Inc. (PSW)
Schedule of Investments (continued)

(g) Investments in companies considered to be an affiliate of the Fund during the 
  period, 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    April 30,   
  Affiliate  2010  Activity    2011  Income 
  BlackRock Liquidity             
  Funds, TempFund,             
  Institutional Class  5,884,098  (5,700,567)  183,531  $ 1,655 
(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. 
  These definitions may not apply for purposes of this report, which may combine 
  such industry sub-classifications for reporting ease.       
  Reverse repurchase agreements outstanding as of April 30, 2011 were as follows: 
  Interest  Trade  Maturity    Net Closing  Face 
  Counterparty  Rate  Date  Date    Amount  Amount 
  UBS Securities LLC  0.38%  1/24/11  9/30/20  $ 1,541,593  $ 1,540,000 
  UBS Securities LLC  0.38%  1/24/11  10/15/20    2,158,230  2,156,000 
  UBS Securities LLC  0.38%  1/24/11  9/15/37    1,689,986  1,688,240 
  UBS Securities LLC  0.38%  1/24/11  5/15/38    1,844,006  1,842,100 
  UBS Securities LLC  0.38%  1/24/11  3/15/39    3,040,642  3,037,500 
  UBS Securities LLC  0.38%  1/24/11  4/01/39    1,078,717  1,077,625 
  UBS Securities LLC  0.38%  1/24/11  3/30/40    916,697  915,750 
  Credit Suisse             
  Securities             
  (USA) LLC  0.40%  1/26/11  1/25/21    987,615  986,563 
  UBS Securities LLC  0.38%  1/27/11  12/15/37    896,898  896,000 
  UBS Securities LLC  0.38%  1/27/11  1/15/38    977,229  976,250 
  UBS Securities LLC  0.38%  1/27/11  2/15/38    864,876  864,000 
  UBS Securities LLC  0.38%  2/03/11  12/01/37    816,758  816,000 
  Credit Suisse             
  Securities             
  (USA) LLC  0.40%  2/07/11  3/15/20    751,701  751,000 
  Credit Suisse             
  Securities             
  (USA) LLC  0.40%  2/08/11  3/29/37    513,473  513,000 
  UBS Securities LLC  0.38%  2/11/11  2/15/20    846,714  846,000 
  UBS Securities LLC  0.38%  2/11/11  9/17/20    950,802  950,000 
  UBS Securities LLC  0.38%  2/11/11  2/11/21    789,062  788,700 
  UBS Securities LLC  0.38%  2/11/11  12/01/33    525,318  524,875 
  UBS Securities LLC  0.38%  2/23/11  2/23/16    974,799  974,100 
  Credit Suisse             
  Securities             
  (USA) LLC  0.45%  3/02/11  12/15/20    418,519  418,200 
  Deutsche Bank             
  Securities, Inc.  0.40%  3/03/11  12/15/15    226,276  226,125 
  Credit Suisse             
  Securities             
  (USA) LLC  0.40%  3/04/11  2/01/41    999,467  998,813 
  UBS Securities LLC  0.38%  3/07/11  5/16/19    1,050,471  1,049,850 
  UBS Securities LLC  0.37%  3/28/11  3/28/14    833,738  833,438 
  Deutsche Bank             
  Securities, Inc.  0.40%  3/30/11  9/15/15    1,323,485  1,323,000 
  UBS Securities LLC  0.37%  3/31/11  11/15/36    934,231  933,924 
  Credit Suisse             
  Securities             
  (USA) LLC  0.35%  4/07/11  4/05/21    1,251,554  1,251,250 
  Credit Suisse             
  Securities             
  (USA) LLC  0.35%  4/11/11  3/17/16    1,110,227  1,110,000 

 

  Reverse repurchase agreements outstanding as of April 30, 2011 were as follows 
  (concluded):           
    Interest  Trade  Maturity  Net Closing  Face 
  Counterparty  Rate  Date  Date  Amount  Amount 
  Credit Suisse           
  Securities           
  (USA) LLC  0.35%  4/12/11  1/28/14  $ 363,352  $ 363,281 
  Credit Suisse           
  Securities           
  (USA) LLC  0.35%  4/12/11  7/15/16  677,757  677,625 
  UBS Securities LLC  0.40%  4/13/11  5/16/46  487,853  487,750 
  UBS Securities LLC  0.37%  4/13/11  2/11/21  292,261  291,900 
  UBS Securities LLC  0.37%  4/13/11  9/16/15  519,026  518,925 
  Barclays           
  Capital Inc.  0.35%  4/14/11  10/29/49  358,375  358,313 
  Barclays           
  Capital Inc.  0.35%  4/14/11  12/31/49  312,867  312,813 
  Deutsche Bank AG  0.38%  4/18/11  4/15/21  673,850  673,750 
  UBS Securities LLC  0.38%  4/18/11  4/15/38  1,916,533  1,916,250 
  Deutsche Bank           
  Securities, Inc.  0.35%  4/21/11  4/07/21  511,930  511,874 
  Deutsche Bank           
  Securities, Inc.  0.35%  4/21/11  12/31/49  643,881  643,812 
  UBS Securities LLC  0.35%  4/29/11  3/10/15  350,010  350,000 
  UBS Securities LLC  0.35%  4/29/11  3/11/16  408,013  408,000 
  Total        $37,828,792  $37,802,596 

 

  Financial futures contracts purchased as of April 30, 2011 were as follows: 
          Notional                        Unrealized 
  Contracts Issue  Exchange  Expiration  Value                       Appreciation 
  73  2-Year U.S.  Chicago Board  June   
    Treasury Note  of Trade  2011  $15,916,123                           $ 80,002 

 

  Financial futures contracts sold as of April 30, 2011 were as follows:   
          Notional  Unrealized 
  Contracts Issue  Exchange  Expiration  Value  Depreciation 
  56  5-Year U.S.  Chicago Board  June     
    Treasury Note  of Trade  2011  $ 6,574,284                          $ (59,966) 
  73  10-Year U.S.  Chicago Board  June     
    Treasury Note  of Trade  2011  8,666,225  (177,041) 
  23  Long-Term U.S.  Chicago Board  June     
    Treasury Bond  of Trade  2011  2,763,011  (51,614) 
  24  Ultra U.S.  Chicago Board  June     
    Treasury Bond  of Trade  2011  2,959,242  (61,758) 
  Total          $ (350,379) 

 

Credit default swaps on single-name issuer — sold protection outstanding as of
April 30, 2011 were as follows:

  Receive      Issuer  Notional   
  Fixed  Counter-    Credit  Amount  Unrealized 
Issuer  Rate  party  Expiration  Rating1  (000)2  Appreciation 
MetLife, Inc.  1.00%  Deutsche         
    Bank AG  3/20/18  A–  USD 200  $ 5,210 

1 Using S&P’s rating of the underlying securities.
2 The maximum potential amount the Fund may pay should a negative event take
place as defined under the terms of agreement.

See Notes to Financial Statements.   
20  SEMI-ANNUAL REPORT  APRIL 30, 2011 

 



BlackRock Credit Allocation Income Trust I, Inc. (PSW)
Schedule of Investments (concluded)

Credit default swaps on traded indexes — sold protection outstanding as of April 30,
2011 were as follows:

  Receive        Notional   
  Fixed  Counter-    Credit  Amount  Unrealized 
Index  Rate  party  Expiration  Rating1  (000)2  Appreciation 
iTraxx-Europe             
Sub             
Financial             
Index    Deutsche         
Series 15  1.00%  Bank AG  6/20/16  A  EUR 1,900  $ 2,644 

1 Using S&P’s rating of the underlying securities.
2 The maximum potential amount the Fund may pay should a negative event take
place as defined under the terms of agreement.

Interest rate swaps outstanding as of April 30, 2011 were as follows:

        Notional   
Fixed  Floating  Counter-  Expiration  Amount  Unrealized 
Rate  Rate  party  Date  (000)  Depreciation 
0.98%(a)  3-month           
  LIBOR  Citibank NA  3/30/13  USD  13,900  $ (63,910) 
4.34%(a)  3-month           
  LIBOR  Citibank NA  4/14/41  USD  400  (11,982) 
4.38%(a)  3-month  Goldman Sachs         
  LIBOR  International  4/14/41  USD  600  (21,744) 
4.35%(a)  3-month           
  LIBOR  Deutsche Bank AG  4/15/41  USD  700  (22,509) 
Total            $ (120,145) 

(a)Pays a fixed interest rate and receives floating rate.

Fair Value Measurements — Various inputs are used in determining the fair value of
investments and derivative financial instruments. These inputs are summarized in
three broad levels for financial statement purposes 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
derivative financial instruments)
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 derivative financial
instruments and other significant accounting policies, please refer to Note 1 of the
Notes to Financial Statements.

The following tables summarize the inputs used as of April 30, 2011 in determining
the fair valuation of the Fund’s investments and derivative financial instruments:

  Investments in Securities   
Valuation Inputs  Level 1  Level 2  Level 3  Total 
Assets:         
Investments:         
Long-Term         
Investments:         
Asset-Back         
Securities    $ 558,562   $542,750  $ 1,101,312 
Corporate         
Bonds    113,826,317    113,826,317 
Preferred         
Securities  $ 600,174  28,452,733    29,052,907 
Taxable         
Municipal         
Bonds    1,066,222    1,066,222 
U.S Treasury         
Obligations    1,176,293    1,176,293 
Short-Term         
Securities  183,531      183,531 
Total  $ 783,705  $145,080,127 $ 542,750  $146,406,582 

 

Derivative Financial Instruments1

Valuation Inputs  Level 1  Level 2  Level 3  Total 
Assets:         
Equity         
contracts    —   $69,440  $ 69,440 
Interest rate         
contracts  $ 80,002      80,002 
Credit         
contracts    $ 7,854    7,854 
Liabilities:         
Interest rate         
contracts  (350,379)  (248,316)    (598,695) 
Credit         
contracts      (25,652)  (25,652) 
Total  $ (270,377)  $ (240,462)  $ 43,788  $ (467,051) 

1 Derivative financial instruments are swaps, financial futures contracts, and
options. Financial futures contracts and swaps are valued at the unrealized
appreciation/depreciation on the instrument and options are shown at value.

See Notes to Financial Statements.     
SEMI-ANNUAL REPORT  APRIL 30, 2011  21 

 



BlackRock Credit Allocation Income Trust II, Inc. (PSY)
Schedule of Investments
April 30, 2011 (Unaudited)
(Percentages shown are based on Net Assets)

    Par   
Asset-Backed Securities    (000)  Value 
Atrium CDO Corp., Series 5A, Class A4,       
2.83%, 7/20/20 (a)(b)  $ 2,650  $ 2,212,750 
SLM Student Loan Trust, Series 2004-B,       
Class A2, 0.51%, 6/15/21 (b)    2,410  2,350,616 
Total Asset-Backed Securities — 1.0%      4,563,366 
Corporate Bonds       
Aerospace & Defense — 1.8%       
BE Aerospace, Inc., 8.50%, 7/01/18    2,500  2,787,500 
Bombardier, Inc., 7.75%, 3/15/20 (a)    3,205  3,569,569 
Huntington Ingalls Industries, Inc. (a):       
6.88%, 3/15/18    360  378,900 
7.13%, 3/15/21    380  399,950 
Kratos Defense & Security Solutions, Inc.,       
10.00%, 6/01/17 (a)    1,254  1,376,265 
      8,512,184 
Airlines — 0.9%       
American Airlines Pass-Through Trust, Series 2011-1,     
Class A, 5.25%, 7/31/22    1,410  1,367,700 
Continental Airlines Pass-Through Certificates,       
Series 2009-2, Class B, 9.25%, 5/10/17    1,544  1,628,418 
Delta Air Lines, Inc., Series 02G1, 6.72%, 7/02/24  1,146  1,160,620 
      4,156,738 
Auto Components — 0.6%       
Icahn Enterprises LP:       
7.75%, 1/15/16    880  906,400 
8.00%, 1/15/18    2,000  2,065,000 
      2,971,400 
Beverages — 0.4%       
Constellation Brands, Inc., 7.25%, 5/15/17    1,970  2,147,300 
Building Products — 0.5%       
Building Materials Corp. of America (a):       
7.00%, 2/15/20    375  390,938 
6.75%, 5/01/21    1,160  1,175,950 
Nortek, Inc., 10.00%, 12/01/18 (a)    700  749,000 
      2,315,888 
Capital Markets — 4.0%       
Ameriprise Financial, Inc., 5.30%, 3/15/20    3,250  3,513,354 
The Goldman Sachs Group, Inc., 6.25%, 2/01/41 (c)  4,450  4,565,335 
Macquarie Bank Ltd., 6.63%, 4/07/21 (a)(c)    2,075  2,147,749 
Morgan Stanley, 5.75%, 1/25/21 (c)    3,915  4,072,238 
UBS AG:       
2.25%, 1/28/14    1,627  1,647,092 
5.88%, 7/15/16 (c)    2,800  3,078,239 
      19,024,007 
Chemicals — 0.4%       
CF Industries, Inc., 7.13%, 5/01/20    1,125  1,288,125 
Omnova Solutions, Inc., 7.88%, 11/01/18 (a)    735  753,375 
      2,041,500 
Commercial Banks — 7.5%       
Amsouth Bank, 4.85%, 4/01/13    1,050  1,069,629 
Associated Banc-Corp., 5.13%, 3/28/16    2,200  2,241,752 
BNP Paribas, 3.60%, 2/23/16 (c)    4,380  4,453,720 
Branch Banking & Trust Co. (b)(c):       
1.00%, 9/13/16    1,100  1,060,799 
1.00%, 5/23/17    675  632,761 
CIT Group, Inc., 6.63%, 4/01/18 (a)    1,617  1,736,923 
City National Corp., 5.25%, 9/15/20    2,350  2,395,007 

 

    Par   
Corporate Bonds    (000)  Value 
Commercial Banks (concluded)       
Comerica, Inc., 3.00%, 9/16/15 (c)  $ 2,300  $ 2,312,659 
Credit Agricole SA, 8.38%, 10/29/49 (a)(b)(c)(d)  1,475  1,611,437 
Discover Bank, 8.70%, 11/18/19    1,200  1,475,618 
Fifth Third Bamcorp, 3.63%, 1/25/16    2,775  2,815,468 
HSBC Holdings Plc, 5.10%, 4/05/21 (c)    1,625  1,672,520 
KeyCorp, 5.10%, 3/24/21    780  798,889 
Lloyds TSB Bank Plc, 4.88%, 1/21/16 (c)    925  970,959 
Regions Financial Corp.:       
4.88%, 4/26/13    2,525  2,570,776 
5.75%, 6/15/15    1,800  1,854,000 
SVB Financial Group, 5.38%, 9/15/20    2,300  2,287,315 
Societe Generale, 5.20%, 4/15/21 (a)(c)    2,850  2,874,809 
SunTrust Banks, Inc., 3.60%, 4/15/16    825  835,636 
      35,670,677 
Commercial Services & Supplies — 3.8%       
Aviation Capital Group Corp. (a):       
7.13%, 10/15/20    9,300  9,641,660 
6.75%, 4/06/21    2,325  2,343,205 
Casella Waste Systems, Inc., 7.75%, 2/15/19 (a)  621  634,972 
Clean Harbors, Inc., 7.63%, 8/15/16    1,314  1,405,980 
Corrections Corp. of America, 7.75%, 6/01/17    3,375  3,695,625 
Mobile Mini, Inc., 7.88%, 12/01/20 (a)    275  292,188 
      18,013,630 
Communications Equipment — 1.2%       
Avaya, Inc.:       
9.75%, 11/01/15    900  929,250 
7.00%, 4/01/19 (a)    500  495,000 
Brocade Communications Systems, Inc., 6.88%, 1/15/20  2,965  3,224,437 
CC Holdings GS V LLC, 7.75%, 5/01/17 (a)    935  1,033,175 
      5,681,862 
Construction Materials — 0.2%       
Inversiones CMPC SA, 4.75%, 1/19/18 (a)    825  814,001 
Consumer Finance — 5.7%       
American Express Credit Corp., 2.75%, 9/15/15  5,850  5,831,497 
Capital One Bank USA NA, 8.80%, 7/15/19    3,325  4,258,294 
Ford Motor Credit Co. LLC, 7.00%, 4/15/15    400  439,315 
Inmarsat Finance Plc, 7.38%, 12/01/17 (a)    2,135  2,257,763 
SLM Corp., 6.25%, 1/25/16    13,300  14,102,575 
      26,889,444 
Containers & Packaging — 1.3%       
Ball Corp.:       
7.13%, 9/01/16    1,750  1,907,500 
6.75%, 9/15/20    2,210  2,326,025 
Crown Americas LLC, 6.25%, 2/01/21 (a)    825  847,687 
Owens-Brockway Glass Container, Inc., 6.75%, 12/01/14  570  582,113 
Rock-Tenn Co., 9.25%, 3/15/16    325  354,250 
      6,017,575 
Diversified Financial Services — 5.0%       
Ally Financial, Inc.:       
4.50%, 2/11/14    1,775  1,792,750 
8.30%, 2/12/15    1,230  1,383,750 
8.00%, 11/01/31    1,730  1,950,575 
Bank of America Corp., 3.63%, 3/17/16 (c)    5,000  5,025,395 
Citigroup, Inc., 4.59%, 12/15/15 (c)    975  1,031,802 
General Electric Capital Corp., 5.30%, 2/11/21 (c)  4,600  4,773,116 
Moody’s Corp., 6.06%, 9/07/17    6,000  6,180,354 
Reynolds Group Issuer, Inc. (a):       
6.88%, 2/15/21    660  680,625 
8.25%, 2/15/21    815  828,244 
      23,646,611 

 

See Notes to Financial Statements.   
22  SEMI-ANNUAL REPORT  APRIL 30, 2011 

 



BlackRock Credit Allocation Income Trust II, Inc. (PSY)
Schedule of Investments (continued)
(Percentages shown are based on Net Assets)

  Par   
Corporate Bonds  (000)  Value 
Diversified Telecommunication Services — 5.0%     
AT&T, Inc., 6.30%, 1/15/38  $ 4,000  $ 4,219,444 
Level 3 Financing, Inc.:     
8.75%, 2/15/17  1,630  1,687,050 
10.00%, 2/01/18  560  604,800 
9.38%, 4/01/19 (a)  910  966,875 
Qwest Corp., 8.38%, 5/01/16  2,795  3,319,063 
Telecom Italia Capital SA, 6.18%, 6/18/14  975  1,063,374 
Telefonica Emisiones SAU, 5.46%, 2/16/21 (c)  1,360  1,411,556 
Verizon Communications, Inc.:     
1.95%, 3/28/14  3,650  3,681,375 
7.35%, 4/01/39 (c)  4,025  4,819,286 
Windstream Corp., 7.88%, 11/01/17  1,900  2,052,000 
    23,824,823 
Electric Utilities — 1.0%     
Progress Energy, Inc., 7.00%, 10/30/31  4,000  4,667,188 
Electronic Equipment, Instruments     
& Components — 0.8%     
Jabil Circuit, Inc., 8.25%, 3/15/18  800  918,000 
NXP BV, 3.05%, 10/15/13 (b)  2,950  2,935,250 
    3,853,250 
Energy Equipment & Services — 0.9%     
Ensco Plc, 4.70%, 3/15/21  1,965  1,983,909 
Frac Tech Services LLC, 7.13%, 11/15/18 (a)  370  394,050 
Key Energy Service, Inc., 6.75%, 3/01/21  745  765,487 
MEG Energy Corp., 6.50%, 3/15/21 (a)  955  980,069 
    4,123,515 
Food & Staples Retailing — 2.1%     
CVS Caremark Corp., 6.30%, 6/01/62 (b)  3,650  3,613,500 
Wal-Mart Stores, Inc.:     
5.25%, 9/01/35  2,500  2,480,245 
6.20%, 4/15/38  3,375  3,730,259 
    9,824,004 
Food Products — 1.0%     
Blue Merger Sub, Inc., 7.63%, 2/15/19 (a)  430  440,213 
Kraft Foods, Inc.:     
6.50%, 8/11/17  1,665  1,931,247 
6.13%, 8/23/18  1,660  1,882,385 
Smithfield Foods, Inc., 10.00%, 7/15/14  374  443,190 
    4,697,035 
Gas Utilities — 0.1%     
Targa Resources Partners LP, 6.88%, 2/01/21 (a)  495  492,525 
Health Care Equipment & Supplies — 1.5%     
Boston Scientific Corp.:     
4.50%, 1/15/15  215  225,506 
6.40%, 6/15/16  187  209,490 
5.13%, 1/12/17  761  800,603 
7.38%, 1/15/40  2,935  3,394,389 
Fresenius US Finance II, Inc., 9.00%, 7/15/15 (a)  2,250  2,579,063 
    7,209,051 
Health Care Providers & Services — 3.3%     
Aetna, Inc., 6.75%, 12/15/37  3,400  3,870,924 
Aviv Healthcare Properties LP, 7.75%, 2/15/19 (a)  460  485,300 
HCA, Inc.:     
8.50%, 4/15/19  545  604,950 
7.25%, 9/15/20  3,435  3,692,625 
Tenet Healthcare Corp.:     
10.00%, 5/01/18  1,530  1,774,800 
8.88%, 7/01/19  1,125  1,271,250 
UnitedHealth Group, Inc., 6.88%, 2/15/38  3,400  3,908,786 
    15,608,635 

 

  Par   
Corporate Bonds  (000)  Value 
Household Durables — 0.3%     
Cemex Espana Luxembourg, 9.25%, 5/12/20 (a)   $1,462  $ 1,494,895 
IT Services — 0.5%     
First Data Corp. (a):     
7.38%, 6/15/19  725  738,594 
8.25%, 1/15/21  190  189,050 
12.63%, 1/15/21  1,185  1,299,056 
    2,226,700 
Independent Power Producers & Energy Traders — 0.7%     
AES Corp., 9.75%, 4/15/16  985  1,140,138 
Energy Future Intermediate Holding Co. LLC,     
10.00%, 12/01/20  1,475  1,585,743 
NRG Energy, Inc., 8.25%, 9/01/20  490  515,725 
    3,241,606 
Insurance — 7.1%     
The Allstate Corp., 7.45%, 5/16/19  5,600  6,745,693 
American International Group, Inc., 6.40%, 12/15/20 (c)  1,690  1,848,890 
Aon Corp., 5.00%, 9/30/20 (c)  4,600  4,721,992 
Dai-ichi Life Insurance Co., Ltd.,     
7.25%, 12/31/49 (a)(b)(d)  677  679,986 
Forethough Financial Group, 8.63%, 4/15/21 (a)  1,000  1,007,574 
Genworth Financial, Inc., 7.63%, 9/24/21  970  996,256 
Lincoln National Corp., 6.25%, 2/15/20 (c)  3,400  3,818,465 
Manulife Financial Corp., 4.90%, 9/17/20  4,700  4,706,735 
Northwestern Mutual Life Insurance, 6.06%, 3/30/40 (a)  3,800  4,085,152 
Principal Financial Group, Inc., 8.88%, 5/15/19  980  1,254,825 
Prudential Financial, Inc., 6.63%, 12/01/37 (c)  3,400  3,792,496 
    33,658,064 
Life Sciences Tools & Services — 1.9%     
Bio-Rad Laboratories, Inc., 8.00%, 9/15/16  3,825  4,255,312 
Life Technologies Corp., 6.00%, 3/01/20  4,200  4,599,920 
    8,855,232 
Machinery — 1.1%     
Ingersoll-Rand Global Holding Co., Ltd., 9.50%, 4/15/14  3,400  4,094,018 
Navistar International Corp., 8.25%, 11/01/21  980  1,092,700 
    5,186,718 
Media — 8.3%     
CSC Holdings LLC:     
8.50%, 6/15/15  1,500  1,636,875 
8.63%, 2/15/19  1,200  1,383,000 
Cengage Learning Acquisitions, Inc., 10.50%, 1/15/15 (a)  1,720  1,767,300 
Comcast Corp., 6.30%, 11/15/17  3,400  3,909,708 
Cox Communications, Inc., 8.38%, 3/01/39 (a)  3,400  4,491,267 
DISH DBS Corp., 7.00%, 10/01/13  1,750  1,890,000 
DirectTV Holdings LLC, 5.00%, 3/01/21  2,575  2,641,793 
Gannett Co., Inc., 9.38%, 11/15/17  1,800  2,025,000 
Intelsat Bermuda Ltd. (e):     
11.50%, 2/04/17 (a)  280  306,600 
11.50%, 2/04/17  420  459,900 
Kabel BW Erste Beteiligungs GmbH, 7.50%, 3/15/19 (a)  1,040  1,066,000 
News America, Inc., 6.15%, 3/01/37  4,200  4,292,001 
Time Warner Cable, Inc., 6.75%, 6/15/39  4,050  4,402,087 
Time Warner, Inc., 7.70%, 5/01/32  4,150  5,003,319 
UPC Germany GmbH, 8.13%, 12/01/17 (a)  1,030  1,089,225 
Virgin Media Secured Finance Plc, 6.50%, 1/15/18  2,675  2,929,125 
    39,293,200 
Metals & Mining — 2.0%     
Alcoa, Inc., 5.40%, 4/15/21  2,455  2,492,728 
Freeport-McMoRan Corp., 7.13%, 11/01/27  2,900  3,085,058 
JMC Steel Group, 8.25%, 3/15/18 (a)  315  329,963 
Novelis, Inc., 8.75%, 12/15/20  1,035  1,156,612 
Teck Resources Ltd., 10.75%, 5/15/19  1,750  2,237,900 
United States Steel Corp., 7.38%, 4/01/20  200  211,000 
    9,513,261 

 

See Notes to Financial Statements.     
SEMI-ANNUAL REPORT  APRIL 30, 2011  23 

 



BlackRock Credit Allocation Income Trust II, Inc. (PSY)
Schedule of Investments (continued)
(Percentages shown are based on Net Assets)

    Par   
Corporate Bonds    (000)  Value 
Multi-Utilities — 1.5%       
CenterPoint Energy, Inc.:       
5.95%, 2/01/17  $ 3,150  $ 3,466,351 
6.50%, 5/01/18    3,350  3,791,621 
      7,257,972 
Multiline Retail — 2.1%       
Dollar General Corp., 10.63%, 7/15/15    3,275  3,504,250 
JC Penney Co., Inc., 5.65%, 6/01/20    6,300  6,284,250 
      9,788,500 
Oil, Gas & Consumable Fuels — 7.7%       
Anadarko Petroleum Corp.:       
5.95%, 9/15/16    1,175  1,312,462 
6.38%, 9/15/17    23  25,978 
BP Capital Markets Plc:       
3.88%, 3/10/15    1,500  1,573,267 
3.20%, 3/11/16 (c)    1,875  1,890,227 
Buckeye Partners LP, 4.88%, 2/01/21    1,000  1,017,369 
Chesapeake Energy Corp., 6.13%, 2/15/21    3,445  3,556,962 
Consol Energy, Inc., 6.38%, 3/01/21 (a)    835  839,175 
Copano Energy LLC, 7.13%, 4/01/21    560  574,000 
Denbury Resources, Inc., 6.38%, 8/15/21    575  592,250 
Enbridge Energy Partners LP, 9.88%, 3/01/19    2,100  2,774,115 
Energy XXI Gulf Coast, Inc., 7.75%, 6/15/19 (a)  1,025  1,048,063 
Enterprise Products Operating LLC, 6.65%, 4/15/18  4,200  4,875,364 
Forest Oil Corp., 7.25%, 6/15/19    445  462,800 
Kinder Morgan Energy Partners LP, 6.85%, 2/15/20  4,200  4,892,458 
Linn Energy LLC, 7.75%, 2/01/21 (a)    1,050  1,124,812 
Marathon Petroleum Corp., 3.50%, 3/01/16 (a)    1,375  1,393,223 
ONEOK Partners LP, 8.63%, 3/01/19    3,400  4,329,788 
Oasis Petroleum, Inc., 7.25%, 2/01/19 (a)    380  383,800 
Petrobras International Finance Co., 3.88%, 1/27/16  1,475  1,495,323 
Range Resources Corp., 6.75%, 8/01/20    855  914,850 
SM Energy Co., 6.63%, 2/15/19 (a)    480  495,600 
SandRidge Energy, Inc., 7.50%, 3/15/21 (a)    720  757,800 
      36,329,686 
Paper & Forest Products — 2.5%       
Georgia-Pacific LLC, 8.25%, 5/01/16 (a)    3,400  3,859,000 
International Paper Co.:       
7.50%, 8/15/21    3,325  3,968,746 
7.30%, 11/15/39    3,400  3,882,399 
      11,710,145 
Pharmaceuticals — 5.6%       
Bristol-Myers Squibb Co., 5.88%, 11/15/36 (c)    2,214  2,437,184 
GlaxoSmithKline Capital, Inc., 6.38%, 5/15/38    7,250  8,294,102 
Merck & Co., Inc.:       
6.50%, 12/01/33 (c)    2,070  2,465,505 
6.55%, 9/15/37    4,572  5,437,836 
Pfizer, Inc., 7.20%, 3/15/39    6,250  7,892,781 
      26,527,408 
Real Estate Investment Trusts (REITs) — 1.8%       
AvalonBay Communities, Inc., 6.10%, 3/15/20    3,400  3,840,422 
ERP Operating LP, 5.75%, 6/15/17    3,405  3,814,084 
HCP, Inc., 5.38%, 2/01/21    1,025  1,065,442 
      8,719,948 
Real Estate Management & Development — 0.1%     
Realogy Corp., 7.88%, 2/15/19 (a)    670  676,700 
Road & Rail — 1.6%       
Asciano Finance Ltd., 5.00%, 4/07/18 (a)    900  915,717 
Avis Budget Car Rental LLC, 8.25%, 1/15/19    650  690,625 
Florida East Coast Railway Corp., 8.13%, 2/01/17 (a)  200  212,000 
The Hertz Corp., 6.75%, 4/15/19 (a)    933  951,660 
Norfolk Southern Corp., 6.00%, 3/15/2105    5,000  4,917,880 
      7,687,882 

 

    Par   
Corporate Bonds    (000)  Value 
Semiconductors & Semiconductor Equipment — 0.6%     
Advanced Micro Devices, Inc., 7.75%, 8/01/20  $ 775  $ 807,938 
KLA-Tencor Corp., 6.90%, 5/01/18    1,928  2,181,495 
      2,989,433 
Specialty Retail — 1.0%       
AutoNation, Inc., 6.75%, 4/15/18    1,965  2,058,337 
Best Buy Co., Inc., 5.50%, 3/15/21    1,300  1,307,756 
Claire’s Escrow Corp., 8.88%, 3/15/19 (a)    530  515,425 
Limted Brands, Inc., 7.00%, 5/01/20    980  1,038,800 
      4,920,318 
Tobacco — 1.3%       
Altria Group, Inc., 10.20%, 2/06/39    4,400  6,441,164 
Wireless Telecommunication Services — 2.4%       
American Tower Corp., 4.50%, 1/15/18    1,925  1,902,212 
Cricket Communications, Inc., 7.75%, 5/15/16    670  715,225 
Crown Castle Towers LLC (a):       
5.50%, 1/15/17    1,175  1,253,148 
6.11%, 1/15/40    1,300  1,406,958 
Intelsat Jackson Holdings SA (a):       
7.25%, 4/01/19    190  193,206 
7.25%, 4/01/21    620  629,300 
Nextel Communications, Inc., Series E, 6.88%, 10/31/13  840  848,400 
SBA Tower Trust, 5.10%, 4/15/42 (a)    4,225  4,330,625 
      11,279,074 
Total Corporate Bonds — 99.1%      470,000,749 
Preferred Securities       
Capital Trusts       
Capital Markets — 4.4%       
Ameriprise Financial, Inc., 7.52%, 6/01/66 (b)    2,500  2,678,125 
State Street Capital Trust III, 8.25% (b)(d)    2,920  2,923,300 
State Street Capital Trust IV, 1.31%, 6/01/67 (b)  18,235  15,268,767 
      20,870,192 
Commercial Banks — 7.2%       
BNP Paribas, 7.20% (a)(b)(c)(d)    1,500  1,485,000 
Bank One Capital III, 8.75%, 9/01/30    2,000  2,551,106 
Barclays Bank Plc, 7.43% (a)(b)(c)(d)    650  674,700 
Credit Agricole SA, 6.64% (a)(b)(c)(d)    1,475  1,360,392 
Dresdner Funding Trust I, 8.15%, 6/30/31 (a)    2,240  2,195,200 
HSBC Capital Funding LP/Jersey Channel Islands,     
10.18% (a)(b)(d)    4,835  6,527,250 
M&T Capital Trust II, 8.28%, 6/01/27    3,630  3,706,818 
National City Preferred Capital Trust I, 12.00% (b)(d)  1,100  1,232,957 
NationsBank Capital Trust III, 0.84%, 1/15/27 (b)  13,470  10,793,673 
USB Capital XIII Trust, 6.63%, 12/15/39    3,500  3,737,055 
      34,264,151 
Diversified Financial Services — 1.9%       
ING Capital Funding Trust III, 8.44% (b)(d)    1,800  1,737,029 
JPMorgan Chase Capital XXIII, 1.31%, 5/15/77 (b)  8,775  7,377,520 
      9,114,549 
Electric Utilities — 0.7%       
PPL Capital Funding, 6.70%, 3/30/67 (b)    3,000  2,981,250 
Insurance — 8.7%       
AXA SA, 6.38% (a)(b)(d)    3,000  2,763,750 
Ace Capital Trust II, 9.70%, 4/01/30    2,500  3,262,525 
The Allstate Corp., 6.50%, 5/15/67 (b)    5,000  5,162,500 
American General Capital II, 8.50%, 7/01/30    100  113,000 
Aon Corp., 8.21%, 1/01/27    2,500  2,825,267 
Chubb Corp., 6.38%, 3/29/67 (b)(c)    2,000  2,140,000 
Farmers Exchange Capital, 7.05%, 7/15/28 (a)    2,500  2,519,415 
Liberty Mutual Group, Inc., 10.75%, 6/15/88 (a)(b)  2,925  3,978,000 

 

See Notes to Financial Statements.   
24  SEMI-ANNUAL REPORT  APRIL 30, 2011 

 



BlackRock Credit Allocation Income Trust II, Inc. (PSY)
Schedule of Investments (continued)
(Percentages shown are based on Net Assets)

    Par   
Capital Trusts    (000)  Value 
Insurance (concluded)       
Lincoln National Corp., 7.00%, 5/17/66 (b)  $ 3,350  $ 3,463,230 
MetLife, Inc., 6.40%, 12/15/66    3,325  3,325,120 
Nationwide Life Global Funding I, 6.75%, 5/15/67  3,500  3,307,500 
Principal Life Insurance Co., 8.00%, 3/01/44 (a)  2,500  2,743,693 
Reinsurance Group of America, 6.75%, 12/15/65 (b)  3,000  2,956,101 
Swiss Re Solutions Holding Corp., 7.75%, 6/15/30 (c)  2,000  2,340,700 
ZFS Finance (USA) Trust IV, 5.88%, 5/09/32 (a)(b)  379  377,840 
      41,278,641 
Multi-Utilities — 1.4%       
Dominion Resources Capital Trust I, 7.83%, 12/01/27  2,500  2,572,750 
Dominion Resources, Inc., 7.50%, 6/30/66 (b)    3,900  4,134,000 
      6,706,750 
Oil, Gas & Consumable Fuels — 1.3%       
Enterprise Products Operating LLC, 8.38%, 8/01/66 (b)  2,000  2,172,500 
TransCanada PipeLines Ltd., 6.35%, 5/15/67 (b)  4,000  4,074,312 
      6,246,812 
Road & Rail — 0.8%       
BNSF Funding Trust I, 6.61%, 12/15/55 (b)    3,750  3,895,312 
Total Capital Trusts — 26.4%      125,357,657 
Preferred Stocks    Shares   
Auto Components — 0.1%       
Dana Holding Corp., 4.00% (a)    4,000  624,500 
Commercial Banks — 0.4%       
SG Preferred Capital II, 6.30%    2,000  1,937,500 
Thrifts & Mortgage Finance — 0.0%       
Fannie Mae, 8.25% (f)    14,000  28,560 
Freddie Mac, Series Z, 8.38% (f)    14,000  28,280 
      56,840 
Wireless Telecommunication Services — 0.6%       
Centaur Funding Corp., 9.08%    2,423  2,721,332 
Total Preferred Stocks — 1.1%      5,340,172 
Trust Preferreds       
Diversified Financial Services — 0.5%       
GMAC Capital Trust I, Series 2, 8.13%, 2/15/40 (b)  2,335  2,424,924 
Total Trust Preferreds — 0.5%      2,424,924 
Total Preferred Securities — 28.0%      133,122,753 
    Par   
Taxable Municipal Bonds    (000)   
Metropolitan Transportation Authority, RB,       
Build America Bonds, 6.55%, 11/15/31  $ 3,450  3,617,083 
State of California, GO, Build America Bonds,       
7.35%, 11/01/39    870  965,396 
Total Taxable Municipal Bonds — 1.0%      4,582,479 
U.S. Treasury Obligations       
U.S. Treasury Notes:       
3.63%, 2/15/21    2,265  2,326,581 
4.75%, 2/15/41    2,500  2,641,405 
Total U.S. Treasury Obligations — 1.0%      4,967,986 
Total Long-Term Investments       
(Cost — $595,648,591) — 130.1%      617,237,333 

 

Short-Term Securities    Shares  Value 
BlackRock Liquidity Funds, TempFund,       
Institutional Class, 0.10% (g)(h)    2,023,400  $ 2,023,400 
Total Short-Term Securities       
(Cost — $2,023,400) — 0.4%      2,023,400 
Options Purchased    Contracts   
Over-the-Counter Put Options — 0.1%       
S&P 500 Index, Strike Price USD 1,250.00,       
Expires 9/17/11, Broker Credit       
Suisse International    118  292,640 
Total Options Purchased       
(Cost — $569,940) — 0.1%      292,640 
Total Investments Before Options Written       
(Cost — $598,241,931) — 130.6%      619,553,373 
    Notional   
    Amount   
Options Written    (000)   
Over-the-Counter Call Swaptions — (0.1)%       
Pay a fixed rate of 4.03% and receive a floating rate     
based on 3-month LIBOR, Expires 4/16/12,       
Broker UBS AG  $ 7,700  (332,911) 
Over-the-Counter Put Swaptions — 0.0%       
Receive a fixed rate of 4.03% and pay a floating rate     
based on 3-month LIBOR, Expires 4/16/12,       
Broker UBS AG    7,700  (215,379) 
Sold credit default protection on Dow Jones CDX       
North America Investment Grade Series 16,       
Strike Price $120.00, Expires 9/21/11,       
Broker Credit Suisse International    148,000  (108,469) 
      (323,848) 
Total Options Written       
(Premiums Received — $1,087,200) — (0.1)%      (656,759) 
Total Investments, Net of Options Written       
(Cost — $599,329,131*) — 130.5%      618,896,614 
Liabilities in Excess of Other Assets — (30.5)%      (144,511,018) 
Net Assets — 100.0%      $474,385,596 


* The cost and unrealized appreciation (depreciation) of investments as of April 30,

2011, as computed for federal income tax purposes, were as follows:

Aggregate cost  $ 597,853,769 
Gross unrealized appreciation  $   26,189,295 
Gross unrealized depreciation  (4,489,691) 
Net unrealized appreciation  $   21,699,604 


(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) All or a portion of security has been pledged as collateral in connection with open
reverse repurchase agreements.
(d) Security is perpetual in nature and has no stated maturity date.
(e) Represents a payment-in-kind security which may pay interest/dividends in
additional par/shares.
(f) Non-income producing security.

See Notes to Financial Statements.     
SEMI-ANNUAL REPORT  APRIL 30, 2011  25 

 



BlackRock Credit Allocation Income Trust II, Inc. (PSY)
Schedule of Investments (continued)

(g) Investments in companies considered to be an affiliate of the Fund during the
period, 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  April 30,   
Affiliate  2010  Activity  2011  Income 
BlackRock Liquidity         
Funds, TempFund,         
Institutional Class  1,483,567  539,833  2,023,400  $ 6,501 


(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.
These definitions may not apply for purposes of this report, which may combine
such industry sub-classifications for reporting ease.
Reverse repurchase agreements outstanding as of April 30, 2011 were as follows:

  Interest  Trade Maturity  Net Closing  Face 
Counterparty  Rate  Date  Date  Amount  Amount 
Credit Suisse           
Securities           
(USA) LLC  0.40%  11/02/01  3/05/15   $4,363,359 $ 4,359,000 
Deutsche Bank           
Securities Inc.  0.38%     11/02/03       12/01/37  2,041,895  2,040,000 
UBS Securities LLC  0.38%  11/03/04  2/11/21  1,105,737  1,104,000 
BNP Paribas           
Securities  0.39%  11/01/05  3/10/15  1,538,915  1,537,000 
Deutsche Bank           
Securities, Inc.  0.40%  11/01/05  5/16/19  6,580,558  6,572,160 
Credit Suisse           
Securities           
(USA) LLC  0.40%  11/02/07  3/15/20  3,431,199  3,428,000 
Credit Suisse           
Securities           
(USA) LLC  0.20%  11/04/07  4/05/21  1,564,280  1,564,063 
Credit Suisse           
Securities           
(USA) LLC  0.45%  11/03/09  1/28/14  1,558,904  1,557,853 
UBS Securities LLC  0.38%     11/02/10       12/01/33  2,304,844  2,302,875 
UBS Securities LLC  0.40%     11/02/10        2/15/20  1,727,043  1,725,490 
UBS Securities LLC  0.38%  11/03/10  2/01/41  4,229,865  4,227,500 
Warburg Pincus  0.38%  2/16/11  3/15/39  7,055,620  7,051,250 
Deutsche Bank           
Securities Inc.  0.40%  3/03/11  12/15/15  980,528  979,875 
Barclays           
Capital Inc.  0.40%  3/04/11  9/16/15  2,197,867  2,196,500 
Barclays           
Capital Inc.  0.40%  3/04/11  2/16/21  1,309,814  1,309,000 
Barclays           
Capital Inc.  0.40%  3/04/11  3/29/47  2,121,319  2,120,000 
Deutsche Bank           
Securities Inc.  0.40%  3/29/11  12/01/37  1,484,561  1,484,000 
Barclays           
Capital Inc.  0.35%  4/14/11  10/29/49  1,510,296  1,510,031 
Barclays           
Capital Inc.  0.35%  4/14/11  12/31/49  1,318,512  1,318,281 
Deutsche Bank           
Securities Inc.  0.38%  4/18/11  4/15/21  2,743,530  2,743,125 
Deutsche Bank           
Securities Inc.  0.35%  4/21/11  12/31/49  1,365,146  1,365,000 
UBS Securities LLC  0.38%  4/21/11  4/15/38  3,544,161  3,543,750 
Deutsche Bank           
Securities Inc.  0.40%  4/25/11  1/21/16  927,385  927,313 


Reverse repurchase agreements outstanding as of April 30, 2011 were as follows
(concluded):

  Interest  Trade Maturity  Net Closing  Face 
Counterparty  Rate  Date  Date  Amount  Amount 
Deutsche Bank           
Securities Inc.  0.35%  4/28/11  3/17/16   $2,040,079  $ 2,040,000 
Deutsche Bank           
Securities Inc.  0.35%  4/28/11  9/30/20  4,485,174  4,485,000 
UBS Securities LLC  0.38%  11/02/11  2/15/20  3,598,536  3,595,500 
UBS Securities LLC  0.38%  11/02/11  1/25/21  3,757,655  3,754,485 
UBS Securities LLC  0.38%  11/02/11  2/11/21  3,299,936  3,298,200 
Credit Suisse           
Securities           
(USA) LLC  0.35%  11/04/11  7/15/16  2,878,588  2,878,000 
Credit Suisse           
Securities           
(USA) LLC  0.35%  11/04/11  9/13/16  970,198  970,000 
Credit Suisse           
Securities           
(USA) LLC  0.40%        11/01/12       12/31/49  6,039,035  6,031,662 
UBS Securities LLC  0.38%  11/01/12  5/15/38  8,111,282  8,101,875 
Credit Suisse           
Securities           
(USA) LLC  0.35%  11/04/12  5/23/17  600,023  599,906 
Credit Suisse           
Securities           
(USA) LLC  0.35%       11/04/12        11/15/36  2,283,631  2,283,187 
Credit Suisse           
Securities           
(USA) LLC  0.35%  11/04/12  9/29/49  649,314  649,187 
Credit Suisse           
Securities           
(USA) LLC  0.35%  11/04/13  4/07/21  2,023,499  2,023,125 
UBS Securities LLC  0.40%        11/04/13        10/15/20  9,460,097  9,458,100 
UBS Securities LLC  0.38%  11/02/16  3/15/39  703,120  698,750 
UBS Securities LLC  0.38%  11/02/17  6/15/30  2,105,643  2,104,000 
UBS Securities LLC  0.38%  11/03/17  3/17/16  2,836,377  2,835,000 
UBS Securities LLC  0.38%  11/02/23  2/23/16  4,185,902  4,182,900 
UBS Securities LLC  0.38%  11/01/26  9/01/35  2,402,432  2,400,000 
UBS Securities LLC  0.38%  11/01/26  9/15/37  5,286,011  5,280,660 
UBS Securities LLC  0.38%  11/01/27  9/01/20  4,481,239  4,476,750 
UBS Securities LLC  0.38%        11/01/27         12/15/37  3,811,819  3,808,000 
UBS Securities LLC  0.38%  11/01/27  1/15/38  3,923,931  3,920,000 
UBS Securities LLC  0.38%  11/01/27  2/15/38  3,799,056  3,795,250 
UBS Securities LLC  0.38%  11/01/27  4/01/39  4,703,900  4,699,188 
UBS Securities LLC  0.38%  11/01/27  3/30/40  3,846,603  3,842,750 
UBS Securities LLC  0.37%  11/03/28  3/28/14  3,477,876  3,476,625 
UBS Securities LLC  0.37%  11/03/31  3/11/16  1,806,219  1,805,625 
Total      $154,572,513          $154,459,791 


Foreign currency exchange contracts as of April 30, 2011 were as follows:

Currency  Currency    Settlement  Unrealized 
Purchased  Sold  Counterparty  Date  Appreciation 
EUR 472,000  USD 686,128  UBS AG  7/27/11  $ 11,307 


Financial futures contracts purchased as of April 30, 2011 were as follows:

        Notional        Unrealized 
Contracts Issue  Exchange  Expiration  Value       Appreciation 
212  2-Year U.S.  Chicago Board  June   
  Treasury Note  of Trade  2011  $46,232,966       $ 221,534 

 

See Notes to Financial Statements.   
26  SEMI-ANNUAL REPORT  APRIL 30, 2011 

 



BlackRock Credit Allocation Income Trust II, Inc. (PSY)
Schedule of Investments (concluded)

Financial futures contracts sold as of April 30, 2011 were as follows:

        Notional  Unrealized 
Contracts Issue  Exchange  Expiration  Value  Depreciation 
237  5-Year U.S.  Chicago Board  June     
  Treasury Note  of Trade  2011  $27,823,308         $ (253,786) 
328  10-Year U.S.  Chicago Board  June     
  Treasury Note  of Trade  2011  38,900,454  (833,671) 
128  Long-Term U.S.  Chicago Board  June     
  Treasury Bond  of Trade  2011  15,318,757  (345,243) 
97  Ultra U.S.  Chicago Board  June     
  Treasury Bond  of Trade  2011  11,954,329  (255,546) 
Total          $(1,688,246) 


Credit default swaps on single-name issuer — sold protection outstanding as of
April 30, 2011 were as follows:

  Receive      Issuer  Notional   
  Fixed  Counter-    Credit  Amount  Unrealized 
Issuer  Rate  party  Expiration  Rating1  (000)2  Appreciation 
MetLife, Inc.  1.00%  Deutsche         
    Bank AG  3/20/18  A–  USD 900  $ 23,446 

1 Using S&P’s rating of the underlying securities.
2 The maximum potential amount the Fund may pay should a negative event take
place as defined under the terms of agreement.

Credit default swaps on traded indexes — sold protection outstanding as of April 30,
2011 were as follows:

  Receive        Notional   
  Fixed  Counter-    Credit  Amount  Unrealized 
Index  Rate  party  Expiration  Rating3  (000)4  Appreciation 
iTraxx-Europe             
Sub             
Financial             
Index    Deutsche         
Series 15  1.00%  Bank AG  6/20/16  A  EUR 8,100  $ 11,272 

3 Using S&P’s rating of the underlying securities.
4 The maximum potential amount the Fund may pay should a negative event take
place as defined under the terms of agreement.

Interest rate swaps outstanding as of April 30, 2011 were as follows:

        Notional   
Fixed  Floating  Counter-  Expiration  Amount  Unrealized 
Rate  Rate  party  Date  (000)  Depreciation 
0.98%(a)  3-month           
  LIBOR  Citibank NA  3/30/13  USD  59,200  $ (272,191) 
4.34%(a)  3-month           
  LIBOR  Citibank NA  4/14/41  USD  1,700  (50,922) 
4.38%(a)  3-month  Goldman Sachs         
  LIBOR  International  4/14/41  USD  2,400  (86,978) 
4.35%(a)  3-month           
  LIBOR  Deutsche Bank AG  4/15/41  USD  3,000  (96,469) 
Total            $ (506,560) 
(a)Pays a fixed interest rate and receives floating rate.       


Fair Value Measurements — Various inputs are used in determining the fair value of
investments and derivative financial instruments. These inputs are summarized in
three broad levels for financial statement purposes 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
derivative financial instruments)

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 derivative financial
instruments and other significant accounting policies, please refer to Note 1 of the
Notes to Financial Statements.

The following tables summarize the inputs used as of April 30, 2011 in determining
the fair valuation of the Fund’s investments and derivative financial instruments:

  Investments in Securities   
Valuation Inputs  Level 1  Level 2  Level 3  Total 
Assets:         
Investments:         
Long-Term         
Investments:         
Asset-Back         
Securities    $ 2,350,616  $ 2,212,750  $ 4,563,366 
Corporate         
Bonds    470,000,749    470,000,749 
Preferred         
Securities  $2,481,764  130,640,989    133,122,753 
Taxable         
Municipal         
Bonds    4,582,479    4,582,479 
U.S Treasury         
Obligations    4,967,986    4,967,986 
Short-Term         
Securities  2,023,400      2,023,400 
Total  $4,505,164  $612,542,819  $ 2,212,750  $619,260,733 

 

Derivative Financial Instruments1

Valuation Inputs  Level 1  Level 2  Level 3  Total 
Assets:         
Interest rate         
contracts  $ 221,534      $ 221,534 
Credit         
contracts  $ 34,718    34,718 
Equity         
contracts    292,640    292,640 
Foreign         
currency         
exchange         
contracts    11,307    11,307 
Liabilities:         
Interest rate         
contracts  (1,688,246)         (1,054,850)    (2,743,096) 
Credit         
contracts    $ (108,469)  (108,469) 
Total  $ (1,466,712) $ (716,185)  $ (108,469)  $ (2,291,366) 

1 Derivative financial instruments are swaps, financial futures contracts,
foreign currency exchange contracts and options. Financial futures contracts,
foreign currency exchange contracts and swaps are valued at the unrealized
appreciation/depreciation on the instrument and options are shown at value.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT  APRIL 30, 2011  27 

 



BlackRock Credit Allocation Income Trust III (BPP)
Schedule of Investments
April 30, 2011 (Unaudited)
(Percentages shown are based on Net Assets)

  Par   
Asset-Backed Securities  (000)  Value 
Atrium CDO Corp., Series 5A, Class A4,     
2.83%, 7/20/20 (a)(b)  $ 1,300  $ 1,085,500 
Total Asset-Backed Securities — 0.5%    1,085,500 
Corporate Bonds     
Aerospace & Defense — 1.7%     
BE Aerospace, Inc., 8.50%, 7/01/18  1,215  1,354,725 
Bombardier, Inc., 7.75%, 3/15/20 (a)  1,405  1,564,819 
Huntington Ingalls Industries, Inc. (a):     
6.88%, 3/15/18  180  189,450 
7.13%, 3/15/21  190  199,975 
Kratos Defense & Security Solutions, Inc.,     
10.00%, 6/01/17 (a)  570  625,575 
    3,934,544 
Airlines — 0.9%     
American Airlines Pass-Through Trust, Series 2011-1,     
Class A, 5.25%, 7/31/22  640  620,800 
Continental Airlines Pass-Through Certificates,     
Series 2009-2, Class B, 9.25%, 5/10/17  736  776,630 
Delta Air Lines, Inc., Series 02G1, 6.72%, 7/02/24  588  595,444 
    1,992,874 
Auto Components — 0.6%     
Icahn Enterprises LP:     
7.75%, 1/15/16  420  432,600 
8.00%, 1/15/18  1,000  1,032,500 
    1,465,100 
Beverages — 0.5%     
Constellation Brands, Inc., 7.25%, 5/15/17  955  1,040,950 
Building Products — 0.3%     
Building Materials Corp. of America (a):     
7.00%, 2/15/20  180  187,650 
6.75%, 5/01/21  570  577,837 
    765,487 
Capital Markets — 2.4%     
Ameriprise Financial, Inc., 5.30%, 3/15/20  1,500  1,621,548 
The Goldman Sachs Group, Inc., 6.25%, 2/01/41 (c)  2,150  2,205,724 
Macquarie Bank Ltd., 6.63%, 4/07/21 (a)  975  1,009,184 
UBS AG, 2.25%, 1/28/14 (c)  775  784,570 
    5,621,026 
Chemicals — 0.4%     
CF Industries, Inc., 7.13%, 5/01/20  525  601,125 
Omnova Solutions, Inc., 7.88%, 11/01/18 (a)  355  363,875 
    965,000 
Commercial Banks — 7.9%     
Amsouth Bank, 4.85%, 4/01/13  525  534,814 
Associated Banc-Corp., 5.13%, 3/28/16  1,070  1,090,306 
BNP Paribas, 3.60%, 2/23/16  2,100  2,135,345 
Branch Banking & Trust Co. (b):     
1.00%, 9/13/16  550  530,400 
1.00%, 5/23/17  325  304,663 
CIT Group, Inc., 6.63%, 4/01/18 (a)  782  839,996 
Credit Agricole SA, 8.38% (a)(b)(c)(d)  725  792,063 
Discover Bank, 8.70%, 11/18/19  550  676,325 
Fifth Third Bamcorp, 3.63%, 1/25/16  1,350  1,369,687 
HSBC Holdings Plc, 5.10%, 4/05/21 (c)  2,700  2,778,956 
KeyCorp, 5.10%, 3/24/21  390  399,445 
Lloyds TSB Bank Plc, 4.88%, 1/21/16  475  498,600 
RESPARCS Funding LP I, 8.00% (d)(e)(f)  4,000  2,380,000 
Regions Financial Corp.:     
4.88%, 4/26/13  1,225  1,247,208 
5.75%, 6/15/15  850  875,500 

 

    Par   
Corporate Bonds    (000)  Value 
Commercial Banks (concluded)       
Societe Generale, 5.20%, 4/15/21 (a)(c)  $ 1,375  $ 1,386,969 
SunTrust Banks, Inc., 3.60%, 4/15/16    400  405,157 
      18,245,434 
Commercial Services & Supplies — 3.8%       
Aviation Capital Group Corp. (a):       
7.13%, 10/15/20    4,500  4,665,319 
6.75%, 4/06/21    1,125  1,133,809 
Casella Waste Systems, Inc., 7.75%, 2/15/19 (a)    296  302,660 
Clean Harbors, Inc., 7.63%, 8/15/16    630  674,100 
Corrections Corp. of America, 7.75%, 6/01/17    1,600  1,752,000 
Mobile Mini, Inc., 7.88%, 12/01/20 (a)    135  143,438 
      8,671,326 
Communications Equipment — 1.2%       
Avaya, Inc.:       
9.75%, 11/01/15    400  413,000 
7.00%, 4/01/19 (a)    225  222,750 
Brocade Communications Systems, Inc., 6.88%, 1/15/20  1,450  1,576,875 
CC Holdings GS V LLC, 7.75%, 5/01/17 (a)    440  486,200 
      2,698,825 
Construction Materials — 0.2%       
Inversiones CMPC SA, 4.75%, 1/19/18 (a)    400  394,667 
Consumer Finance — 5.6%       
American Express Credit Corp., 2.75%, 9/15/15 (c)    2,900  2,890,827 
Capital One Bank USA NA, 8.80%, 7/15/19    1,625  2,081,121 
Ford Motor Credit Co. LLC, 7.00%, 4/15/15    300  329,487 
Inmarsat Finance Plc, 7.38%, 12/01/17 (a)    1,020  1,078,650 
SLM Corp., 6.25%, 1/25/16    6,275  6,653,659 
      13,033,744 
Containers & Packaging — 1.3%       
Ball Corp.:       
7.13%, 9/01/16    850  926,500 
6.75%, 9/15/20    1,070  1,126,175 
Crown Americas LLC, 6.25%, 2/01/21 (a)    400  411,000 
Owens-Brockway Glass Container, Inc., 6.75%, 12/01/14  270  275,737 
Rock-Tenn Co., 9.25%, 3/15/16    150  163,500 
      2,902,912 
Diversified Financial Services — 4.3%       
Ally Financial, Inc.:       
4.50%, 2/11/14    400  404,000 
8.30%, 2/12/15    780  877,500 
8.00%, 11/01/31    1,060  1,195,150 
Bank of America Corp., 3.63%, 3/17/16 (c)    2,450  2,462,444 
Citigroup, Inc., 4.59%, 12/15/15    475  502,673 
General Electric Capital Corp., 5.30%, 2/11/21 (c)    2,225  2,308,736 
Moody’s Corp., 6.06%, 9/07/17    1,500  1,545,088 
Reynolds Group Issuer, Inc. (a):       
6.88%, 2/15/21    320  330,000 
8.25%, 2/15/21    390  396,337 
      10,021,928 
Diversified Telecommunication Services — 5.1%       
AT&T, Inc., 6.30%, 1/15/38 (c)    2,000  2,109,722 
Level 3 Financing, Inc.:       
8.75%, 2/15/17    870  900,450 
10.00%, 2/01/18    280  302,400 
9.38%, 4/01/19 (a)    430  456,875 
Qwest Corp., 8.38%, 5/01/16    1,360  1,615,000 
Telecom Italia Capital SA, 6.18%, 6/18/14    500  545,320 
Telefonica Emisiones SAU, 5.46%, 2/16/21    660  685,020 
Verizon Communications, Inc. (c):       
1.95%, 3/28/14    1,775  1,790,258 
7.35%, 4/01/39    1,950  2,334,809 
Windstream Corp., 7.88%, 11/01/17    900  972,000 
      11,711,854 

 

See Notes to Financial Statements.   
28  SEMI-ANNUAL REPORT  APRIL 30, 2011 

 



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

    Par   
Corporate Bonds    (000)  Value 
Electric Utilities — 1.0%       
Progress Energy, Inc., 7.00%, 10/30/31  $ 2,000  $ 2,333,594 
Electronic Equipment, Instruments       
& Components — 0.8%       
Jabil Circuit, Inc., 8.25%, 3/15/18    400  459,000 
NXP BV, 3.05%, 10/15/13 (b)    1,450  1,442,750 
      1,901,750 
Energy Equipment & Services — 0.9%       
Ensco Plc, 4.70%, 3/15/21    960  969,238 
Frac Tech Services LLC, 7.13%, 11/15/18 (a)    185  197,025 
Key Energy Service, Inc., 6.75%, 3/01/21    360  369,900 
MEG Energy Corp., 6.50%, 3/15/21 (a)    465  477,206 
      2,013,369 
Food & Staples Retailing — 2.0%       
CVS Caremark Corp., 6.30%, 6/01/62 (b)    1,650  1,633,500 
Wal-Mart Stores, Inc.:       
5.25%, 9/01/35    1,850  1,835,381 
6.20%, 4/15/38 (c)    1,075  1,188,157 
      4,657,038 
Food Products — 1.0%       
Blue Merger Sub, Inc., 7.63%, 2/15/19 (a)    210  214,987 
Kraft Foods, Inc.:       
6.50%, 8/11/17    800  927,926 
6.13%, 8/23/18    800  907,174 
Smithfield Foods, Inc., 10.00%, 7/15/14    187  221,595 
      2,271,682 
Gas Utilities — 0.1%       
Targa Resources Partners LP, 6.88%, 2/01/21 (a)    240  238,800 
Health Care Equipment & Supplies — 1.5%       
Boston Scientific Corp.:       
4.50%, 1/15/15    106  111,180 
6.40%, 6/15/16    92  103,065 
5.13%, 1/12/17    375  394,515 
7.38%, 1/15/40    1,425  1,648,042 
Fresenius US Finance II, Inc., 9.00%, 7/15/15 (a)    1,000  1,146,250 
      3,403,052 
Health Care Providers & Services — 3.3%       
Aetna, Inc., 6.75%, 12/15/37    1,725  1,963,925 
Aviv Healthcare Properties LP, 7.75%, 2/15/19 (a)    220  232,100 
HCA, Inc.:       
8.50%, 4/15/19    240  266,400 
7.25%, 9/15/20    1,645  1,768,375 
Tenet Healthcare Corp.:       
10.00%, 5/01/18    745  864,200 
8.88%, 7/01/19    550  621,500 
UnitedHealth Group, Inc., 6.88%, 2/15/38    1,725  1,983,134 
      7,699,634 
Household Durables — 0.3%       
Cemex Espana Luxembourg, 9.25%, 5/12/20 (a)    723  739,268 
IT Services — 0.5%       
First Data Corp. (a):       
7.38%, 6/15/19    355  361,656 
8.25%, 1/15/21    90  89,550 
12.63%, 1/15/21    580  635,825 
      1,087,031 
Independent Power Producers & Energy Traders — 0.7%     
AES Corp., 9.75%, 4/15/16    480  555,600 
Energy Future Intermediate Holding Co. LLC,       
10.00%, 12/01/20    720  774,058 
NRG Energy, Inc., 8.25%, 9/01/20    240  252,600 
      1,582,258 

 

  Par   
Corporate Bonds  (000)  Value 
Insurance — 3.8%     
American International Group, Inc., 6.40%, 12/15/20 $  810  $ 886,155 
Dai-ichi Life Insurance Co., Ltd., 7.25% (a)(b)(d)  337  338,486 
Forethough Financial Group, 8.63%, 4/15/21 (a)  525  528,976 
Genworth Financial, Inc., 7.63%, 9/24/21  480  492,993 
Lincoln National Corp., 6.25%, 2/15/20  1,725  1,937,309 
Northwestern Mutual Life Insurance,     
6.06%, 3/30/40 (a)(c)  1,800  1,935,072 
Principal Financial Group, Inc., 8.88%, 5/15/19  475  608,206 
Prudential Financial, Inc., 6.63%, 12/01/37  1,725  1,924,134 
    8,651,331 
Life Sciences Tools & Services — 1.8%     
Bio-Rad Laboratories, Inc., 8.00%, 9/15/16  1,830  2,035,875 
Life Technologies Corp., 6.00%, 3/01/20  2,000  2,190,438 
    4,226,313 
Machinery — 1.3%     
AGY Holding Corp., 11.00%, 11/15/14  390  379,275 
Ingersoll-Rand Global Holding Co., Ltd., 9.50%, 4/15/14  1,725  2,077,112 
Navistar International Corp., 8.25%, 11/01/21  475  529,625 
    2,986,012 
Media — 8.7%     
CMP Susquehanna Corp., 3.44%, 5/15/14 (a)(f)  9  6,787 
CSC Holdings LLC:     
8.50%, 6/15/15  800  873,000 
8.63%, 2/15/19  580  668,450 
Comcast Corp., 6.30%, 11/15/17  1,725  1,983,602 
Cox Communications, Inc., 8.38%, 3/01/39 (a)  1,725  2,278,658 
DISH DBS Corp., 7.00%, 10/01/13  850  918,000 
DirectTV Holdings LLC, 5.00%, 3/01/21  1,250  1,282,424 
Gannett Co., Inc., 9.38%, 11/15/17  900  1,012,500 
Intelsat Bermuda Ltd. (g):     
11.50%, 2/04/17 (a)  130  142,350 
11.50%, 2/04/17  200  219,000 
Kabel BW Erste Beteiligungs GmbH, 7.50%, 3/15/19 (a)  500  512,500 
The New York Times Co., 6.63%, 12/15/16  1,725  1,746,562 
News America, Inc., 6.15%, 3/01/37  2,000  2,043,810 
Time Warner Cable, Inc., 6.75%, 6/15/39  1,950  2,119,523 
Time Warner, Inc., 7.70%, 5/01/32  2,000  2,411,238 
UPC Germany GmbH, 8.13%, 12/01/17 (a)  505  534,037 
Virgin Media Secured Finance Plc, 6.50%, 1/15/18  1,300  1,423,500 
    20,175,941 
Metals & Mining — 2.0%     
Alcoa, Inc., 5.40%, 4/15/21  1,190  1,208,288 
Freeport-McMoRan Corp., 7.13%, 11/01/27  1,400  1,489,338 
JMC Steel Group, 8.25%, 3/15/18 (a)  150  157,125 
Novelis, Inc., 8.75%, 12/15/20  500  558,750 
Teck Resources Ltd., 10.75%, 5/15/19  850  1,086,980 
United States Steel Corp., 7.38%, 4/01/20  95  100,225 
    4,600,706 
Multi-Utilities — 1.5%     
CenterPoint Energy, Inc.:     
5.95%, 2/01/17  1,500  1,650,644 
6.50%, 5/01/18  1,600  1,810,923 
    3,461,567 
Multiline Retail — 1.3%     
Dollar General Corp., 10.63%, 7/15/15  1,550  1,658,500 
JC Penney Co., Inc., 5.65%, 6/01/20  1,400  1,396,500 
    3,055,000 
Oil, Gas & Consumable Fuels — 7.6%     
Anadarko Petroleum Corp.:     
5.95%, 9/15/16  497  555,144 
6.38%, 9/15/17  12  13,554 

 

See Notes to Financial Statements.     
SEMI-ANNUAL REPORT  APRIL 30, 2011  29 

 



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

    Par   
Corporate Bonds    (000)  Value 
Oil, Gas & Consumable Fuels (concluded)       
BP Capital Markets Plc:       
3.88%, 3/10/15  $ 700  $ 734,191 
3.20%, 3/11/16    925  932,512 
Buckeye Partners LP, 4.88%, 2/01/21    475  483,250 
Chesapeake Energy Corp., 6.13%, 2/15/21    1,690  1,744,925 
Consol Energy, Inc., 6.38%, 3/01/21 (a)    410  412,050 
Copano Energy LLC, 7.13%, 4/01/21    270  276,750 
Denbury Resources, Inc., 6.38%, 8/15/21    280  288,400 
Enbridge Energy Partners LP, 9.88%, 3/01/19    1,000  1,321,007 
Energy XXI Gulf Coast, Inc., 7.75%, 6/15/19 (a)    500  511,250 
Enterprise Products Operating LLC, 6.65%, 4/15/18    2,000  2,321,602 
Forest Oil Corp., 7.25%, 6/15/19    215  223,600 
Kinder Morgan Energy Partners LP, 6.85%, 2/15/20    2,000  2,329,742 
Linn Energy LLC, 7.75%, 2/01/21 (a)    510  546,337 
Marathon Petroleum Corp., 3.50%, 3/01/16 (a)    650  658,614 
ONEOK Partners LP, 8.63%, 3/01/19    1,725  2,196,731 
Oasis Petroleum, Inc., 7.25%, 2/01/19 (a)    185  186,850 
Petrobras International Finance Co., 3.88%, 1/27/16  700  709,645 
Range Resources Corp., 6.75%, 8/01/20    415  444,050 
SM Energy Co., 6.63%, 2/15/19 (a)    235  242,637 
SandRidge Energy, Inc., 7.50%, 3/15/21 (a)    350  368,375 
      17,501,216 
Paper & Forest Products — 3.0%       
Georgia-Pacific LLC, 8.25%, 5/01/16 (a)    1,635  1,855,725 
International Paper Co.:       
7.50%, 8/15/21    1,625  1,939,613 
8.70%, 6/15/38    900  1,170,386 
7.30%, 11/15/39    1,725  1,969,747 
      6,935,471 
Pharmaceuticals — 5.0%       
Bristol-Myers Squibb Co., 5.88%, 11/15/36 (c)    883  972,012 
GlaxoSmithKline Capital, Inc., 6.38%, 5/15/38    3,460  3,958,287 
Merck & Co., Inc. (c):       
6.50%, 12/01/33    990  1,179,154 
6.55%, 9/15/37    1,979  2,353,779 
Pfizer, Inc., 7.20%, 3/15/39    2,500  3,157,113 
      11,620,345 
Professional Services — 0.0%       
FTI Consulting, Inc., 7.75%, 10/01/16    100  105,000 
Real Estate Investment Trusts (REITs) — 1.9%       
AvalonBay Communities, Inc., 6.10%, 3/15/20    1,725  1,948,450 
ERP Operating LP, 5.75%, 6/15/17    1,715  1,921,043 
HCP, Inc., 5.38%, 2/01/21    500  519,728 
      4,389,221 
Road & Rail — 1.7%       
Asciano Finance Ltd., 5.00%, 4/07/18 (a)    425  432,422 
Avis Budget Car Rental LLC, 8.25%, 1/15/19    314  333,625 
Florida East Coast Railway Corp., 8.13%, 2/01/17 (a)  80  84,800 
The Hertz Corp., 6.75%, 4/15/19 (a)    518  528,360 
Norfolk Southern Corp., 6.00%, 3/15/2105 (c)    2,500  2,458,940 
      3,838,147 
Semiconductors & Semiconductor Equipment — 0.6%     
Advanced Micro Devices, Inc., 7.75%, 8/01/20    400  417,000 
KLA-Tencor Corp., 6.90%, 5/01/18    918  1,038,700 
      1,455,700 
Specialty Retail — 0.9%       
AutoNation, Inc., 6.75%, 4/15/18    940  984,650 
Best Buy Co., Inc., 5.50%, 3/15/21    650  653,878 
Limited Brands, Inc., 7.00%, 5/01/20    470  498,200 
      2,136,728 

 

  Par   
Corporate Bonds  (000)  Value 
Tobacco — 1.4%     
Altria Group, Inc., 10.20%, 2/06/39  $ 2,150  $ 3,147,387 
Wireless Telecommunication Services — 2.6%     
American Tower Corp., 4.50%, 1/15/18  925  914,050 
Cricket Communications, Inc., 7.75%, 5/15/16  325  346,937 
Crown Castle Towers LLC (a):     
5.50%, 1/15/17  575  613,243 
6.11%, 1/15/40  625  676,422 
Intelsat Jackson Holdings SA (a):     
7.25%, 4/01/19  150  152,531 
7.25%, 4/01/21  300  304,500 
Nextel Communications, Inc., Series E,     
6.88%, 10/31/13  395  398,950 
SBA Tower Trust, 5.10%, 4/15/42 (a)  2,500  2,562,500 
    5,969,133 
Total Corporate Bonds — 93.4%    215,648,365 
Preferred Securities     
Capital Trusts     
Capital Markets — 4.1%     
State Street Capital Trust III, 8.25% (b)(d)  1,385  1,386,565 
State Street Capital Trust IV, 1.31%, 6/01/67 (b)  9,675  8,101,197 
    9,487,762 
Commercial Banks — 7.1%     
ABN AMRO North America Holding Preferred Capital     
Repackaging Trust I, 6.52% (a)(b)(d)  1,650  1,567,500 
BNP Paribas, 7.20% (a)(b)(d)  700  693,000 
Barclays Bank Plc (a)(b)(d):     
5.93%, 9/29/49  1,700  1,623,500 
7.43%, 12/15/49  325  337,350 
CBA Capital Trust I, 5.81% (a)(c)(d)  2,000  2,052,500 
Credit Agricole SA, 6.64% (a)(b)(c)(d)  725  668,668 
Dresdner Funding Trust I, 8.15%, 6/30/31 (a)  1,095  1,073,100 
FCB/NC Capital Trust I, 8.05%, 3/01/28  1,100  1,101,109 
NBP Capital Trust III, 7.38% (d)  2,000  1,850,000 
National City Preferred Capital Trust I, 12.00% (b)(d)  600  672,522 
USB Capital XIII Trust, 6.63%, 12/15/39  1,725  1,841,834 
Westpac Capital Trust IV, 5.26% (a)(b)(d)  3,000  2,917,500 
    16,398,583 
Diversified Financial Services — 5.3%     
ING Capital Funding Trust III, 8.44% (b)(d)  850  820,264 
JPMorgan Chase Capital XXI, Series U,     
1.24%, 1/15/87 (b)  7,125  6,107,913 
JPMorgan Chase Capital XXIII, 1.31%, 5/15/77 (b)  6,190  5,204,199 
    12,132,376 
Electric Utilities — 0.4%     
PPL Capital Funding, 6.70%, 3/30/67 (b)  900  894,374 
Insurance — 3.6%     
AXA SA, 6.38% (a)(b)(d)  900  829,125 
The Allstate Corp., 6.50%, 5/15/67 (b)  900  929,250 
American General Capital II, 8.50%, 7/01/30  100  113,000 
Chubb Corp., 6.38%, 3/29/67 (b)  900  963,000 
Liberty Mutual Group, Inc., 10.75%, 6/15/88 (a)(b)  900  1,224,000 
Lincoln National Corp., 7.00%, 5/17/66 (b)  900  930,420 
MetLife, Inc., 6.40%, 12/15/66  900  900,032 
Reinsurance Group of America, 6.75%, 12/15/65 (b)  1,300  1,280,977 
Swiss Re Capital I LP, 6.85% (a)(b)(d)  1,000  993,766 
ZFS Finance (USA) Trust IV, 5.88%, 5/09/32 (a)(b)  190  189,419 
    8,352,989 

 

See Notes to Financial Statements.   
30  SEMI-ANNUAL REPORT  APRIL 30, 2011 

 



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

  Par   
Capital Trusts  (000)  Value 
Oil, Gas & Consumable Fuels — 0.4%     
TransCanada PipeLines Ltd., 6.35%, 5/15/67 (b)  $ 900  $ 916,720 
Total Capital Trusts — 20.9%    48,182,805 
Preferred Stocks  Shares   
Commercial Banks — 0.4%     
SG Preferred Capital II, 6.30%  1,000  968,750 
Insurance — 2.4%     
Prudential Plc, 6.50% (d)  6,000,000  5,640,000 
Media — 0.0%     
CMP Susquehanna Radio Holdings Corp.,     
6.30% (a)(b)(d)  2,052  21 
Total Preferred Stocks — 2.8%    6,608,771 
Trust Preferreds     
Diversified Financial Services — 0.5%     
GMAC Capital Trust I, Series 2, 8.13%, 2/15/40 (b)  1,061  1,101,483 
Total Trust Preferreds — 0.5%    1,101,483 
Total Preferred Securities — 24.2%    55,893,058 
  Par   
Taxable Municipal Bonds  (000)   
Metropolitan Transportation Authority, RB,     
Build America Bonds, 6.55%, 11/15/31  $ 1,675  1,756,121 
State of California, GO, Build America Bonds,     
7.35%, 11/01/39  425  471,601 
Total Taxable Municipal Bonds — 0.9%    2,227,722 
U.S. Treasury Obligations     
U.S. Treasury Notes (c):     
3.63%, 2/15/21  1,090  1,119,635 
4.75%, 2/15/41  1,200  1,267,875 
Total U.S. Treasury Obligations — 1.0%    2,387,510 
Warrants (h)  Shares   
Media — 0.0%     
CMP Susquehanna Radio Holdings Corp.     
(Expires 3/26/19) (a)  2,345   
Total Warrants — 0.0%     
Total Long-Term Investments     
(Cost — $268,777,557) — 120.0%    277,242,155 

 

Short-Term Securities  Shares  Value 
BlackRock Liquidity Funds, TempFund,     
Institutional Class, 0.10% (i)(j)  1,547,481  $ 1,547,481 
Total Short-Term Securities     
(Cost — $1,547,481) —0.7%    1,547,481 
Options Purchased  Contracts   
Over-the-Counter Dual Binary Options — 0.0%     
Receive 1.00% of notional amount at expiration date     
if 30 year swap is below or at 4.30% and 5 year     
swap is above or at 2.38% based on ISDAFIX,     
Expires 6/23/11, Broker Goldman Sachs Bank USA  22,700,000  29,692 
Over-the-Counter Put Options — 0.1%     
S&P 500 Index, Strike Price USD 1,250.00,     
Expires 9/17/11, Broker Credit Suisse International  58  143,840 
  Notional   
  Amount   
  (000)   
Over-the-Counter Put Swaptions — 0.0%     
Pay a fixed rate of 2.85% and receive a floating rate     
based on 3-month LIBOR, Expires 6/24/11,     
Broker Citibank NA  $ 3,700  2,564 
Total Options Purchased     
(Cost — $339,793) — 0.1%    176,096 
Total Investments Before Options Written     
(Cost — $270,664,831) — 120.8%    278,965,732 
Options Written     
Over-the-Counter Call Swaptions — (0.2)%     
Pay a fixed rate of 4.03% and receive a floating rate     
based on 3-month LIBOR, Expires 4/16/12,     
Broker UBS AG  3,700  (159,970) 
Pay a fixed rate of 4.75% and receive a floating rate     
based on 3-month LIBOR, Expires 3/24/14,     
Broker Citibank NA  5,000  (314,738) 
    (474,708) 
Over-the-Counter Put Swaptions — (0.2)%     
Receive a fixed rate of 4.03% and pay a floating rate     
based on 3-month LIBOR, Expires 4/16/12,     
Broker UBS AG  3,700  (103,493) 
Receive a fixed rate of 4.75% and pay a floating rate     
based on 3-month LIBOR, Expires 3/24/14,     
Broker Citibank NA  5,000  (261,611) 
Sold credit default protection on Dow Jones CDX     
North America Investment Grade Series 16,     
Strike Price $120.00, Expires 9/21/11,     
Broker Credit Suisse International  72,000  (52,769) 
    (417,873) 
Total Options Written     
(Premiums Received — $1,110,600) — (0.4)%    (892,581) 
Total Investments, Net of Options Written     
(Cost — $271,775,431*) — 120.4%    278,073,151 
Liabilities in Excess of Other Assets — (20.4)%    (47,165,129) 
Net Assets — 100.0%    $ 230,908,022 

 

See Notes to Financial Statements.     
SEMI-ANNUAL REPORT  APRIL 30, 2011  31 

 



BlackRock Credit Allocation Income Trust III (BPP)
Schedule of Investments (continued)

* The cost and unrealized appreciation (depreciation) of investments as of April 30,
2011, as computed for federal income tax purposes, were as follows:

Aggregate cost  $ 270,204,198 
Gross unrealized appreciation  $   12,291,763 
Gross unrealized depreciation  (3,530,229) 
Net unrealized appreciation  $     8,761,534 


(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) All or a portion of security has been pledged as collateral in connection with open
reverse repurchase agreements.
(d) Security is perpetual in nature and has no stated maturity date.
(e) Issuer filed for bankruptcy and/or is in default of interest payments.
(f) Non-income producing security.
(g) Represents a payment-in-kind security which may pay interest/dividends in
additional par/shares.
(h) Warrants entitle the Fund to purchase a predetermined number of shares of
common 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.
(i) Investments in companies considered to be an affiliate of the Fund during the
period, 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  April 30,   
Affiliate  2010  Activity  2011  Income 
BlackRock Liquidity         
Funds, TempFund,         
Institutional Class  34,466,527  (32,919,046)  1,547,481  $ 7,230 


(j) Represents the current yield as of report date.

For Fund compliance purposes, the Fund’s industry classifications refer to any one
or more of the industry sub-classifications used by one or more widely recognized
market indexes or rating group indexes, and/or as defined by Fund management.
These definitions may not apply for purposes of this report, which may combine
such industry sub-classifications for reporting ease.
Reverse repurchase agreements outstanding as of April 30, 2011 were as follows:

  Interest  Trade  Maturity  Net Closing  Face 
Counterparty  Rate  Date  Date  Amount  Amount 
Credit Suisse           
Securities           
(USA) LLC  0.40%  12/09/10  5/15/38  $ 3,790,213  $ 3,784,159 
Credit Suisse           
Securities