UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-CSR

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

 

 

Investment Company Act file number 811-10543

 

Name of Fund: BlackRock Core Bond Trust (BHK)

 

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

 

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

 

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

 

Date of fiscal year end: 08/31/2013

 

Date of reporting period: 02/28/2013

 

Item 1 – Report to Stockholders

 

SEMI-ANNUAL REPORT (UNAUDITED)

BlackRock Corporate High Yield Fund V, Inc. (HYV)

BlackRock Corporate High Yield Fund VI, Inc. (HYT)

BlackRock High Income Shares (HIS)

BlackRock High Yield Trust (BHY)

BlackRock Income Opportunity Trust, Inc. (BNA)

BlackRock Income Trust, Inc. (BKT)

BlackRock Strategic Bond Trust (BHD)

Not FDIC Insured • May Lose Value • No Bank Guarantee

Table of Contents

					Page
Dear Shareholder					3
Semi-Annual Report:
Trust Summaries					4
The Benefits and Risks of Leveraging					20
Derivative Financial Instruments					20
Financial Statements:
Schedules of Investments					21
Statements of Assets and Liabilities					118
Statements of Operations					122
Statements of Changes in Net Assets					124
Statements of Cash Flows					126
Financial Highlights					128
Notes to Financial Statements					136
Officers and Trustees					150
Additional Information					151

2

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

Dear Shareholder

Despite a number of headwinds, risk assets generated strong returns during the 6- and 12-month periods as investors sought meaningful yields in the ongoing low-interest-rate environment. About this time one year ago, the European debt crisis returned to the headlines as unresolved policy decisions left it unclear as to how troubled peripheral countries would finance their sovereign debt, causing yields to soar. In the second quarter of 2012, political instability in Greece and severe deficit and liquidity problems in Spain raised the specter of a full-blown euro collapse. Alongside the drama in Europe, investors were discouraged by gloomy economic reports from various parts of the world. A slowdown in China, a key powerhouse for global growth, emerged as a particular concern. As the outlook for the global economy worsened, however, investors grew increasingly optimistic that the world’s largest central banks would soon intervene to stimulate growth. This theme, along with the announcement of the European Central Bank’s (“ECB’s”) firm commitment to preserve the euro currency bloc, drove most asset classes higher through the summer. Policy relief came in early September, when the ECB announced its decision to support the eurozone’s debt-laden countries with unlimited purchases of short term sovereign debt. Days later, the US Federal Reserve announced its own much-anticipated stimulus package.

Although financial markets world-wide were buoyed by accommodative monetary policies, risk assets weakened in the fall. Global trade began to slow as many European countries fell into recession and growth continued to decelerate in China, where a once-a-decade leadership change compounded uncertainty. In the United States, stocks slid on lackluster corporate earnings reports and market volatility rose in advance of the US Presidential election. In the post-election environment, investors grew increasingly concerned over the “fiscal cliff,” the automatic tax increases and spending cuts that had been scheduled to take effect at the beginning of 2013. There was widespread fear that the fiscal cliff would push the United States into recession unless politicians could agree upon alternate measures to reduce the deficit before the end of 2012. Worries that bipartisan gridlock would preclude a timely budget deal triggered higher levels of volatility in financial markets around the world in the months leading up to the last day of the year. Ultimately, the worst of the fiscal cliff was averted with a last-minute tax deal; however, decisions relating to spending cuts and the debt ceiling continued to weigh on investors’ minds.

Investors shook off the nerve-wracking finale to 2012 and began the New Year with a powerful equity rally. Money that had been pulled to the sidelines amid year-end tax-rate uncertainty poured back into the markets in January. Key indicators signaled modest but broad-based improvements in the world’s major economies, particularly in China. Global equities soared through January while rising US Treasury yields pressured high-quality fixed income assets. However, bond markets strengthened in February when economic momentum slowed and investors toned down their risk appetite. US stocks continued to rise, but at a more moderate pace. Uncertainty about how long the Federal Reserve would maintain its easing bias drove high levels of volatility later in the month, but these fears abated as the budget sequester (automatic spending cuts scheduled to take effect March 1) began to appear imminent and was deemed likely to deter any near-term curtailment of monetary easing policies. Outside the United States, equities largely declined as political uncertainty escalated after the Italian presidential election ended in a stalemate.

On the whole, riskier asset classes outperformed lower-risk investments for the 6- and 12-month periods ended February 28, 2013. International, US small cap and emerging market equities were the leading asset classes for the 6-month period, while US stocks and high yield bonds generated the strongest returns for the 12-month period. US Treasury yields remained relatively low overall, but have inched higher in recent months, pressuring Treasuries and investment-grade bonds. Tax-exempt municipal bonds, however, continued to benefit from favorable supply-and-demand dynamics. Near-zero short term interest rates continued to keep yields on money market securities near their all-time lows.

Investors continue to face many of the same risks as in years past. But we see a world of possibilities. BlackRock was built to provide the global market insight, breadth of capabilities, unbiased investment advice and deep risk management expertise these times require. Investors everywhere are asking, “So what do I do with my money?” Visit www.blackrock.com for answers.

Sincerely,

Rob Kapito
President, BlackRock Advisors, LLC

“Despite a number of headwinds, risk assets generated strong returns during the 6- and 12-month periods as investors sought meaningful yields in the ongoing low-interest-rate environment.”

Rob Kapito
President, BlackRock Advisors, LLC

---

Total Returns as of February 28, 2013

				6-month				12-month
US large cap equities (S&P 500® Index)					8.95	%			13.46	%
US small cap equities (Russell 2000® Index)					13.02				14.02
International equities (MSCI Europe, Australasia, Far East Index)					14.41				9.84
Emerging market equities (MSCI Emerging Markets Index)					12.06				0.28
3-month Treasury bill (BofA Merrill Lynch 3-Month US Treasury Bill Index)					0.05				0.11
US Treasury securities (BofA Merrill Lynch 10-Year US Treasury Index)					(1.51	)			3.66
US investment grade bonds (Barclays US Aggregate Bond Index)					0.15				3.12
Tax-exempt municipal bonds (S&P Municipal Bond Index)					2.40				5.71
US high yield bonds (Barclays US Corporate High Yield 2% Issuer Capped Index)					6.67				11.79

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

---

THIS PAGE NOT PART OF YOUR FUND REPORT

3

Trust Summary as of February 28, 2013	BlackRock Core Bond Trust

Trust Overview

BlackRock Core Bond Trust’s (BHK) (the “Trust”) investment objective is to provide current income and capital appreciation. The Trust seeks to achieve its investment objective by investing at least 75% of its assets in bonds that are investment grade quality at the time of investment. The Trust’s investments will include a broad range of bonds, including corporate bonds, US government and agency securities and mortgage-related securities. The Trust may invest directly in such securities or synthetically through the use of derivatives.

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

Portfolio Management Commentary

How did the Trust perform?

•

For the six-month period ended February 28, 2013, the Trust returned 0.49% based on market price and 3.30% based on net asset value (“NAV”). For the same period, the closed-end Lipper Corporate BBB-Rated Debt Funds (Leveraged) category posted an average return of 4.48% based on market price and 5.05% based on NAV. All returns reflect reinvestment of dividends. The Trust moved from a premium to NAV to a discount by period end, which 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?

•

Spread sectors outperformed government-related debt for the six-month period as accommodative monetary policy in the United States and Europe along with the continued recovery of the US economy drove credit spreads tighter. The Trust’s allocations to high yield and investment grade corporate credit were significant contributors to performance during the period. In particular, the Trust’s preference for banking, insurance and communication-related names contributed meaningfully to returns.

•

Additionally, the Trust benefited from its exposure to structured products including commercial mortgage-backed securities (“CMBS”), asset-backed securities (“ABS”) and non-agency residential mortgage-backed securities (“MBS”).

•

As interest rates generally trended higher during the period, the Trust’s duration profile (sensitivity to interest rate movements) detracted from performance, as did its yield curve positioning.

Describe recent portfolio activity.

•

During the six-month period, the Trust maintained a positive view on spread sectors and increased exposure to high yield credit and securitized products such as CMBS and ABS. Within investment grade credit, the Trust favored financials and industrials over utilities. In financials, the Trust rotated out of senior bank debt into subordinated bank debt to take advantage of the yield differential. In addition, the Trust added to positions in floating rate preferred securities to benefit from a potential rise in interest rates. Finally, the Trust shortened its duration profile in light of expectations that positive economic data may lead to a gradual increase in interest rates.

Describe portfolio positioning at period end.

•

At period end, the Trust maintained diversified exposure to non-government spread sectors, including investment grade credit, high yield corporate credit, CMBS, ABS and non-agency residential MBS. The Trust also held allocations to government-related sectors such as US Treasuries, US agency debt and agency MBS.

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

4

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

	BlackRock Core Bond Trust

Trust Information

Symbol on New York Stock Exchange (“NYSE”)				BHK
Initial Offering Date				November 27, 2001
Yield on Closing Market Price as of February 28, 2013 ($14.99)1				5.84%
Current Monthly Distribution per Common Share2				$0.073
Current Annualized Distribution per Common Share2				$0.876
Economic Leverage as of February 28, 20133				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 loan outstanding as a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to borrowings) minus the sum of liabilities (other than borrowings representing financial leverage). For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 20.

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

---

				2/28/13				8/31/12				Change				High				Low
Market Price				$	14.99			$	15.41				(2.73	)%		$	16.24			$	14.10
Net Asset Value				$	15.21			$	15.21				0.00	%		$	15.57			$	14.96

The following charts show the portfolio composition of the Trust’s long-term investments and credit quality allocation of the Trust’s corporate bond and US Government securities:

Portfolio Composition

				2/28/13				8/31/12
Corporate Bonds					58	%			52	%
US Government Sponsored Agency Securities					12				13
Non-Agency Mortgage-Backed Securities					11				11
US Treasury Obligations					8				14
Asset-Backed Securities					6				5
Taxable Municipal Bonds					3				2
Preferred Securities					2				2
Foreign Agency Obligations					—				1

Credit Quality Allocation⁴

				2/28/13				8/31/12
AAA/Aaa5					26	%			36	%
AA/Aa					3				3
A					24				20
BBB/Baa					22				23
BB/Ba					12				7
B					11				9
CCC/Caa					2				2

4

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

5

Includes US Government Sponsored Agency Securities, which were deemed AAA/Aaa by the investment advisor.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

5

Trust Summary as of February 28, 2013	BlackRock Corporate High Yield Fund V, Inc.

Trust Overview

BlackRock Corporate High Yield Fund V, Inc.’s (HYV) (the “Trust”) investment objective is to provide shareholders with current income by investing primarily in a diversified portfolio of fixed income securities that are rated in the lower rating categories of the established rating services (BB or lower by S&P or Ba or lower by Moody’s) or in unrated securities considered by the Trust’s investment adviser to be of comparable quality. The Trust also seeks to provide shareholders with capital appreciation. The Trust seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets in domestic and foreign high yield debt instruments, including high yield bonds (commonly referred to as “junk” bonds) and high yield corporate loans which are below investment grade quality. The Trust may invest directly in such securities or synthetically through the use of derivatives.

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

Portfolio Management Commentary

How did the Trust perform?

•

For the six-month period ended February 28, 2013, the Trust returned 1.78% based on market price and 9.62% based on NAV. For the same period, the closed-end Lipper High Yield Funds (Leveraged) category posted an average return of 4.30% based on market price and 8.66% based on NAV. All returns reflect reinvestment of dividends. The Fund moved from a premium to NAV to a discount by period-end, which accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.

What factors influenced performance?

•

Security selection among the lower quality tiers of high yield credit had a positive impact on performance. From an industry perspective, holdings within gaming, automotive and building materials boosted returns. The Trust’s exposure to select common stocks and preferred securities also enhanced results.

•

Detracting from performance was security selection within middle quality tier credits, as well as within non-rated securities. On an industry basis, selection in metals, paper and wireless impaired results. The Trust’s tactical allocation to floating rate loan interests (bank loans) hindered relative performance as the asset class underperformed high yield bonds during the period.

Describe recent portfolio activity.

•

The Trust maintained its focus on higher-quality income-oriented credit names with stable fundamentals, good earnings/revenue visibility and an attractive coupon rate. The Trust remained generally cautious of cyclical credits that tend to be more vulnerable to slower economic growth and bouts of weakness, but allowed some risk in companies with positive growth catalysts or idiosyncratic characteristics. Also during the period, the Trust increased exposure to floating rate loan interests as valuations appeared increasingly attractive relative to certain segments of the high yield universe such as higher-quality short-dated paper.

Describe portfolio positioning at period end.

•

At period end, the Trust held 73% of its total portfolio in corporate bonds and 19% in floating rate loan interests, with the remainder in common stocks and preferred stocks. The Trust held its largest industry exposures in healthcare, wirelines and consumer services (housing-related), while reflecting less emphasis on the riskier, more volatile segments of the market such as the banking sector and supermarkets and restaurants industries.

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

6

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

	BlackRock Corporate High Yield Fund V, Inc.

Trust Information

Symbol on NYSE				HYV
Initial Offering Date				November 30, 2001
Yield on Closing Market Price as of February 28, 2013 ($13.09)1				8.25%
Current Monthly Distribution per Common Share2				$0.09
Current Annualized Distribution per Common Share2				$1.08
Economic Leverage as of February 28, 20133				29%

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

2

The distribution rate is not constant and is subject to change.

3

Represents loan outstanding as a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to borrowings) minus the sum of liabilities (other than borrowings representing financial leverage). For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 20.

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

---

				2/28/13				8/31/12				Change				High				Low
Market Price				$	13.09			$	13.51				(3.11	)%		$	13.52			$	11.40
Net Asset Value				$	13.18			$	12.63				4.35	%		$	13.26			$	12.60

The following charts show the portfolio composition of the Trust’s long-term investments and credit quality allocation of the Trust’s corporate bond investments:

Portfolio Composition

				2/28/13				8/31/12
Corporate Bonds					73	%			75	%
Floating Rate Loan Interests					19				17
Common Stocks					7				6
Preferred Stocks					1				2

Credit Quality Allocation⁴

				2/28/13				8/31/12
A					1	%			1	%
BBB/Baa					5				6
BB/Ba					36				35
B					46				43
CCC/Caa					10				13
Not Rated					2				2

4

Using the higher of S&P’s or Moody’s ratings.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

7

Trust Summary as of February 28, 2013	BlackRock Corporate High Yield Fund VI, Inc.

Trust Overview

BlackRock Corporate High Yield Fund VI, Inc.’s (HYT) (the “Trust”) primary investment objective is to provide shareholders with current income. The Trust’s secondary investment objective is to provide shareholders with capital appreciation. The Trust seeks to achieve its objectives by investing, under normal market conditions, at least 80% of its assets in domestic and foreign high yield securities, including high yield bonds (commonly referred to as “junk” bonds), corporate loans, convertible debt securities and preferred securities which are below investment grade quality. The Trust may invest directly in such securities or synthetically through the use of derivatives.

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

Portfolio Management Commentary

How did the Trust perform?

•

For the six-month period ended February 28, 2013, the Trust returned 2.86% based on market price and 9.31% based on NAV. For the same period, the closed-end Lipper High Yield Funds (Leveraged) category posted an average return of 4.30% based on market price and 8.66% based on NAV. All returns reflect reinvestment of dividends. The Fund moved from a premium to NAV to a discount by period-end, which accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.

What factors influenced performance?

•

Security selection among the lower quality tiers of high yield credit had a positive impact on performance. From an industry perspective, holdings within gaming, automotive and building materials boosted returns. The Trust’s exposure to select common stocks and equity-correlated instruments also enhanced results.

•

Detracting from performance was security selection within middle quality tier credits, where the Trust held its quality bias. On an industry basis, selection in metals, paper and wireless impaired results. The Trust’s tactical allocation to floating rate loan interests (bank loans) hindered relative performance as the asset class underperformed high yield bonds during the period.

Describe recent portfolio activity.

•

The Trust maintained its focus on higher-quality income-oriented credit names with stable fundamentals, good earnings/revenue visibility and an attractive coupon rate. The Trust remained generally cautious of cyclical credits that tend to be more vulnerable to slower economic growth and bouts of weakness, but allowed some risk in companies with positive growth catalysts or idiosyncratic characteristics. Also during the period, the Trust increased exposure to floating rate loan interests as valuations appeared increasingly attractive relative to certain segments of the high yield universe such as higher-quality short-dated paper.

Describe portfolio positioning at period end.

•

At period end, the Trust held 73% of its total portfolio in corporate bonds and 19% in floating rate loan interests, with the remainder in common stocks and preferred stocks. The Trust held its largest industry exposures in healthcare, wirelines and consumer services (housing-related), while reflecting less emphasis on the riskier, more volatile segments of the market such as the banking sector and supermarkets and restaurants industries.

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

8

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

	BlackRock Corporate High Yield Fund VI, Inc.

Trust Information

Symbol on NYSE				HYT
Initial Offering Date				May 30, 2003
Yield on Closing Market Price as of February 28, 2013 ($12.72)1				8.25%
Current Monthly Distribution per Common Share2				$0.0875
Current Annualized Distribution per Common Share2				$1.0500
Economic Leverage as of February 28, 20133				28%

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

2

The distribution rate is not constant and is subject to change.

3

Represents loan outstanding as a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to borrowings) minus the sum of liabilities (other than borrowings representing financial leverage). For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 20.

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

---

				2/28/13				8/31/12				Change				High				Low
Market Price				$	12.72			$	12.96				(1.85	)%		$	13.37			$	11.31
Net Asset Value				$	12.85			$	12.32				4.30	%		$	12.94			$	12.28

The following charts show the portfolio composition of the Trust’s long-term investments and credit quality allocation of the Trust’s corporate bond investments:

Portfolio Composition

				2/28/13				8/31/12
Corporate Bonds					73	%			75	%
Floating Rate Loan Interests					19				17
Common Stocks					7				6
Preferred Stocks					1				2

Credit Quality Allocation⁴

				2/28/13				8/31/12
A					—				1	%
BBB/Baa					5	%			6
BB/Ba					36				35
B					47				43
CCC/Caa					10				14
Not Rated					2				1

4

Using the higher of S&P’s or Moody’s ratings.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

9

Trust Summary as of February 28, 2013	BlackRock High Income Shares

Trust Overview

BlackRock High Income Shares’ (HIS) (the “Trust”) primary investment objective is to provide the highest current income attainable consistent with reasonable risk as determined by the Trust’s investment adviser, through investment in a professionally managed, diversified portfolio of high yield, high risk fixed income securities (commonly referred to as “junk bonds”). The Trust’s secondary objective is to provide capital appreciation, but only when consistent with its primary objective. The Trust seeks to achieve its objectives by investing primarily in high yield, high risk debt instruments rated in the medium to lower categories by nationally recognized rating services (BBB or lower by S&P or Baa or lower by Moody’s) or non-rated securities, which, in the investment adviser’s opinion, are of comparable quality. Under normal market conditions, the average maturity of the Trust’s portfolio is between eight and twelve years. The Trust may invest directly in such securities or synthetically through the use of derivatives.

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

Portfolio Management Commentary

How did the Trust perform?

•

For the six-month period ended February 28, 2013, the Trust returned 5.48% based on market price and 6.92% based on NAV. For the same period, the closed-end Lipper High Yield Funds (Leveraged) category posted an average return of 4.30% based on market price and 8.66% based on NAV. All returns reflect reinvestment of dividends. The Fund’s premium to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.

What factors influenced performance?

•

Security selection among the lower quality tiers of high yield credit had a positive impact on performance. From an industry perspective, holdings within non-captive diversified (consumer credit-related businesses), automotive and building materials boosted returns. The Trust’s exposure to select common stocks and preferred securities also enhanced results.

•

Detracting from performance was security selection within middle quality tier credits, where the Trust held its quality bias. On an industry basis, selection in metals, paper and wireless impaired results. The Trust’s tactical allocation to floating rate loan interests (bank loans) hindered relative performance as the asset class underperformed high yield bonds during the period.

Describe recent portfolio activity.

•

The Trust maintained its focus on higher-quality income-oriented credit names with stable fundamentals, good earnings/revenue visibility and an attractive coupon rate. The Trust remained generally cautious of cyclical credits that tend to be more vulnerable to slower economic growth and bouts of weakness, but allowed some risk in companies with positive growth catalysts or idiosyncratic characteristics. Also during the period, the Trust increased exposure to floating rate loan interests as valuations appeared increasingly attractive relative to certain segments of the high yield universe such as higher-quality short-dated paper.

Describe portfolio positioning at period end.

•

At period end, the Trust held 78% of its total portfolio in corporate bonds and 19% in floating rate loan interests, with the remainder in preferred securities and common stocks. The Trust held its largest industry exposures in healthcare, wirelines and media non-cable, while reflecting less emphasis on the riskier, more volatile segments of the market such as the banking sector and supermarkets and restaurants industries.

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

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	BlackRock High Income Shares

Trust Information

Symbol on NYSE				HIS
Initial Offering Date				August 10, 1988
Yield on Closing Market Price as of February 28, 2013 ($2.42)1				7.54%
Current Monthly Distribution per Common Share2				$0.0152
Current Annualized Distribution per Common Share2				$0.1824
Economic Leverage as of February 28, 20133				26%

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 loan outstanding as a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to borrowings) minus the sum of liabilities (other than borrowings representing financial leverage). For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 20.

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

---

				2/28/13				8/31/12				Change				High				Low
Market Price				$	2.42			$	2.40				0.83	%		$	2.49			$	2.04
Net Asset Value				$	2.31			$	2.26				2.21	%		$	2.34			$	2.25

The following charts show the portfolio composition of the Trust’s long-term investments and credit quality allocation of the Trust’s corporate bond investments:

Portfolio Composition

				2/28/13				8/31/12
Corporate Bonds					78	%			79	%
Floating Rate Loan Interests					19				18
Preferred Securities					2				2
Common Stocks					1				1

Credit Quality Allocation⁴

				2/28/13				8/31/12
A					—				1	%
BBB/Baa					5	%			7
BB/Ba					36				34
B					47				43
CCC/Caa					10				14
Not Rated					2				1

4

Using the higher of S&P’s or Moody’s ratings.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

11

Trust Summary as of February 28, 2013	BlackRock High Yield Trust

Trust Overview

BlackRock High Yield Trust’s (BHY) (the “Trust”) primary investment objective is to provide high current income. The Trust’s secondary investment objective is to provide capital appreciation. The Trust seeks to achieve its objectives by investing, under normal market conditions, at least 80% of its assets in high-risk, high yield bonds and other such securities, such as preferred stocks, which are rated below investment grade. The Trust may invest directly in such securities or synthetically through the use of derivatives.

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

Portfolio Management Commentary

How did the Trust perform?

•

For the six-month period ended February 28, 2013, the Trust returned 4.11% based on market price and 8.14% based on NAV. For the same period, the closed-end Lipper High Yield Funds (Leveraged) category posted an average return of 4.30% based on market price and 8.66% based on NAV. All returns reflect reinvestment of dividends. The Trust’s premium to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.

What factors influenced performance?

•

Security selection among the lower quality tiers of high yield credit had a positive impact on performance. From an industry perspective, holdings within gaming, non-captive diversified (consumer credit-related businesses) and building materials boosted returns. The Trust’s exposure to select common stocks and preferred securities also enhanced results.

•

Detracting from performance was security selection within middle quality tier credits, where the Trust held its quality bias. On an industry basis, selection in metals, paper and wireless impaired results. The Trust’s tactical allocation to floating rate loan interests (bank loans) hindered relative performance as the asset class underperformed high yield bonds during the period.

Describe recent portfolio activity.

•

The Trust maintained its focus on higher-quality income-oriented credit names with stable fundamentals, good earnings/revenue visibility and an attractive coupon rate. The Trust remained generally cautious of cyclical credits that tend to be more vulnerable to slower economic growth and bouts of weakness, but allowed some risk in companies with positive growth catalysts or idiosyncratic characteristics. Also during the period, the Trust increased exposure to floating rate loan interests as valuations appeared increasingly attractive relative to certain segments of the high yield universe such as higher-quality short-dated paper.

Describe portfolio positioning at period end.

•

At period end, the Trust held 76% of its total portfolio in corporate bonds and 19% in floating rate loan interests, with the remainder in common stocks and preferred securities. The Trust held its largest industry exposures in healthcare, media non-cable and wireless, while reflecting less emphasis on the riskier, more volatile segments of the market such as the banking sector and supermarkets and restaurants industries.

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

FEBRUARY 28, 2013

	BlackRock High Yield Trust

Trust Information

Symbol on NYSE				BHY
Initial Offering Date				December 23, 1998
Yield on Closing Market Price as of February 28, 2013 ($8.08)1				6.61%
Current Monthly Distribution per Common Share2				$0.0445
Current Annualized Distribution per Common Share2				$0.5340
Economic Leverage as of February 28, 20133				27%

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

2

The distribution rate is not constant and is subject to change.

3

Represents loan outstanding as a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to borrowings) minus the sum of liabilities (other than borrowings representing financial leverage). For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 20.

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

---

				2/28/13				8/31/12				Change				High				Low
Market Price				$	8.08			$	8.04				0.50	%		$	8.54			$	6.64
Net Asset Value				$	7.61			$	7.29				4.39	%		$	7.66			$	7.26

The following charts show the portfolio composition of the Trust’s long-term investments and credit quality allocation of the Trust’s corporate bond investments:

Portfolio Composition

				2/28/13				8/31/12
Corporate Bonds					76	%			78	%
Floating Rate Loan Interests					19				17
Common Stocks					4				3
Preferred Securities					1				2

Credit Quality Allocation⁴

				2/28/13				8/31/12
A					1	%			1	%
BBB/Baa					7				7
BB/Ba					33				35
B					47				44
CCC/Caa					10				12
Not Rated					2				1

4

Using the higher of S&P’s or Moody’s ratings.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

13

Trust Summary as of February 28, 2013	BlackRock Income Opportunity Trust, Inc.

Trust Overview

BlackRock Income Opportunity Trust, Inc.’s (BNA) (the “Trust”) investment objective is to provide current income and capital appreciation. The Trust seeks to achieve its investment objective by investing at least 75% of its assets in bonds that are investment grade quality at the time of investment. The Trust’s investments will include a broad range of bonds, including corporate bonds, US government and agency securities and mortgage-related securities. The Trust may invest directly in such securities or synthetically through the use of derivatives.

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

Portfolio Management Commentary

How did the Trust perform?

•

For the six-month period ended February 28, 2013, the Trust returned (0.39)% based on market price and 3.33% based on NAV. For the same period, the closed-end Lipper Corporate BBB-Rated Debt Funds (Leveraged) category posted an average return of 4.48% based on market price and 5.05% based on NAV. All returns reflect reinvestment of dividends. The Trust’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?

•

Spread sectors outperformed government-related debt for the six-month period as accommodative monetary policy in the United States and Europe along with the continued recovery of the US economy drove credit spreads tighter. The Trust’s allocations to high yield and investment grade corporate credit were significant contributors to performance during the period. In particular, the Trust’s preference for banking, insurance and communication-related names contributed meaningfully to returns.

•

Additionally, the Trust benefited from its exposure to structured products including commercial mortgage-backed securities (“CMBS”), asset-backed securities (“ABS”) and non-agency residential mortgage-backed securities (“MBS”).

•

As interest rates generally trended higher during the period, the Trust’s duration profile (sensitivity to interest rate movements) detracted from performance, as did its yield curve positioning.

Describe recent portfolio activity.

•

During the six-month period, the Trust maintained a positive view on spread sectors and increased exposure to high yield credit and securitized products such as CMBS and ABS. Within investment grade credit, the Trust favored financials and industrials over utilities. In financials, the Trust rotated out of senior bank debt into subordinated bank debt to take advantage of the yield differential. In addition, the Trust added to positions in floating rate preferred securities to benefit from a potential rise in interest rates. Finally, the Trust shortened its duration profile in light of expectations that positive economic data may lead to a gradual increase in interest rates.

Describe portfolio positioning at period end.

•

At period end, the Trust maintained diversified exposure to non-government spread sectors, including investment grade credit, high yield corporate credit, CMBS, ABS and non-agency residential MBS. The Trust also held allocations to government-related sectors such as US Treasuries, US agency debt and agency MBS.

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

14

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

	BlackRock Income Opportunity Trust, Inc.

Trust Information

Symbol on NYSE				BNA
Initial Offering Date				December 20, 1991
Yield on Closing Market Price as of February 28, 2013 ($11.20)1				6.11%
Current Monthly Distribution per Common Share2				$0.057
Current Annualized Distribution per Common Share2				$0.684
Economic Leverage as of February 28, 20133				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 reverse repurchase agreements outstanding as a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to borrowings) minus the sum of liabilities (other than borrowings representing financial leverage). For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 20.

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

---

				2/28/13				8/31/12				Change				High				Low
Market Price				$	11.20			$	11.58				(3.28	)%		$	12.07			$	10.95
Net Asset Value				$	11.88			$	11.84				0.34	%		$	12.12			$	11.63

The following charts show the portfolio composition of the Trust’s long-term investments and credit quality allocation of the Trust’s corporate bond and US Government securities:

Portfolio Composition

				2/28/13				8/31/12
Corporate Bonds					58	%			51	%
US Government Sponsored Agency Securities					13				14
Non-Agency Mortgage-Backed Securities					12				11
US Treasury Obligations					7				15
Asset-Backed Securities					5				4
Preferred Securities					3				2
Taxable Municipal Bonds					2				2
Foreign Agency Obligations					—				1

Credit Quality Allocation⁴

				2/28/13				8/31/12
AAA/Aaa5					26	%			37	%
AA/Aa					3				3
A					22				19
BBB/Baa					24				23
BB/Ba					11				6
B					11				9
CCC/Caa					3				2
Not Rated					—				1

4

Using the higher of S&P’s or Moody’s ratings.

5

Includes US Government Sponsored Agency Securities, which were deemed AAA/Aaa by the investment advisor.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

15

Trust Summary as of February 28, 2013	BlackRock Income Trust, Inc.

Trust Overview

BlackRock Income Trust, Inc.’s (BKT) (the “Trust”) investment objective is to manage a portfolio of high-quality securities to achieve both preservation of capital and high monthly income. The Trust seeks to achieve its investment objective by investing at least 65% of its assets in mortgage-backed securities. The Trust invests at least 80% of its assets in securities that are (i) issued or guaranteed by the US government or one of its agencies or instrumentalities or (ii) rated at the time of investment either AAA by S&P or Aaa by Moody’s. Securities issued or guaranteed by the US government or its agencies or instrumentalities are generally considered to be of the same or higher credit or quality as privately issued securities rated AAA or Aaa. The Trust may invest directly in such securities or synthetically through the use of derivatives.

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

Portfolio Management Commentary

How did the Trust perform?

•

For the six-month period ended February 28, 2013, the Trust returned (3.47)% based on market price and (0.60)% based on NAV. For the same period, the closed-end Lipper US Mortgage Funds category posted an average return of 5.02% based on market price and 6.93% based on NAV. All returns reflect reinvestment of dividends. The Trust’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 Trust’s focus on high quality agency mortgage-backed securities (“MBS”) detracted from returns as the sector lagged other credit-sensitive fixed income assets during a period of rising interest rates. It should be noted that the Lipper US Mortgage Funds category experienced a wide dispersion of returns primarily determined by the extent to which a fund allocated to non-agency residential MBS.

•

Also detracting from performance during the period was the Trust’s yield curve positioning. Exposure to the long end of the US Treasury curve hurt returns as the yield curve steepened and interest rates moved higher in early 2013.

•

Contributing positively to performance was the Trust’s leveraged exposure to agency pass-through MBS, despite uncertainty around how long the US Federal Reserve would maintain its accommodative monetary policy programs. Further enhancing performance was the Trust’s positioning within the agency MBS coupon range, where heavier weightings in middle- and high-coupon issues proved beneficial. Higher coupons outperformed as rising interest rates led to reduced prepayment risk, making these issues more appealing to mortgage market participants.

•

The Trust uses interest rate derivatives including futures, options, swaps and swaptions, mainly for the purpose of managing duration, convexity and yield curve positioning. During the period, the Trust held short positions in US Treasury futures in order to reduce the overall duration profile of the portfolio. These positions were beneficial to the Trust’s performance during certain periods of rising interest rates.

Describe recent portfolio activity.

•

During the six-month period, the economy continued to show signs of growth despite higher tax rates and reduced government spending. As the economy’s resilience coupled with an improving housing market could cause interest rates to gradually move higher, the Trust increased exposure to agency MBS while reducing its strategic exposure to long-term US Treasuries.

•

The Trust maintained a strong level of yield by increasing exposure to stable-cash-flow collateralized mortgage obligations (“CMOs”), which tend to outperform pass-through agency MBS in a rising interest rate environment. The Trust also continued to maintain small allocations to commercial mortgage-backed securities (“CMBS”) and non-agency residential MBS, which have performed well primarily due to improving underlying fundamentals.

Describe portfolio positioning at period end.

•

Despite higher prices in agency MBS, the backdrop for the sector continued to appear constructive given the presence of the US Federal Reserve’s large asset purchase program, which has the effect of limiting net supply and is supportive of valuations. However, the Trust continued to maintain a cautious stance as prepayment risk for higher-coupon agency MBS still remains high as borrowers organically take advantage of historically low mortgage rates. As of period end, the Trust maintained leveraged exposure to high quality agency MBS with varying maturities and coupon rates. The Trust continued to hold positions in intermediate and longer dated stable-cash-flow CMOs as well as small allocations to non-agency MBS and CMBS.

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.

16

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

	BlackRock Income Trust, Inc.

Trust Information

Symbol on NYSE				BKT
Initial Offering Date				July 22, 1988
Yield on Closing Market Price as of February 28, 2013 ($7.13)1				6.82%
Current Monthly Distribution per Common Share2				$0.0405
Current Annualized Distribution per Common Share2				$0.4860
Economic Leverage as of February 28, 20133				30%

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 outstanding as a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to borrowings) minus the sum of liabilities (other than borrowings representing financial leverage). For a discussion of leveraging techniques utilized by the Trust, please see the Benefits and Risks of Leveraging on page 20.

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

---

				2/28/13				8/31/12				Change				High				Low
Market Price				$	7.13			$	7.63				(6.55	)%		$	7.74			$	7.07
Net Asset Value				$	7.64			$	7.94				(3.78	)%		$	7.96			$	7.63

The following charts show the portfolio composition of the Trust’s long-term investments and credit quality allocation of the Trust’s US Government securities:

Portfolio Composition

				2/28/13				8/31/12
US Government Sponsored Agency Securities					96	%			86	%
US Treasury Obligations					2				11
Non-Agency Mortgage-Backed Securities					1				2
Asset-Backed Securities					1				1

Credit Quality Allocation⁴

				2/28/13				8/31/12
AAA/Aaa5					100	%			100	%

4

Using the higher of S&P’s or Moody’s ratings.

5

Includes US Government Sponsored Agency Securities, which were deemed AAA/Aaa by the investment advisor.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

17

Trust Summary as of February 28, 2013	BlackRock Strategic Bond Trust

Trust Overview

BlackRock Strategic Bond Trust’s (BHD) (the “Trust”) investment objective is to provide total return through high current income and capital appreciation. The Trust seeks to achieve its investment objective by investing primarily in a diversified portfolio of fixed income securities including corporate bonds, US government and agency securities, mortgage-related and asset-backed securities and other types of fixed income securities. The Trust invests, under normal market conditions, a significant portion of its assets in corporate fixed income securities that are below investment grade quality, including high-risk, high yield bonds (commonly referred to as “junk” bonds) and other such securities, such as preferred stocks. The Trust may invest directly in such securities or synthetically through the use of derivatives.

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

Portfolio Management Commentary

How did the Trust perform?

•

For the six-month period ended February 28, 2013, the Trust returned 7.60% based on market price and 6.12% based on NAV. For the same period, the closed-end Lipper High Yield Funds (Leveraged) category posted an average return of 4.30% based on market price and 8.66% based on NAV. All returns reflect reinvestment of dividends. The Trust’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?

•

Security selection within investment-grade credits had a positive impact on performance. From an industry perspective, holdings within gaming, non-captive diversified (consumer credit-related businesses) and wirelines boosted returns. The Trust’s exposure to select equity positions also enhanced results.

•

Detracting from performance was security selection within middle quality tier credits, where the Trust held its quality bias. On an industry basis, selection in metals, paper and wireless impaired results. The Trust’s tactical allocation to floating rate loan interests (bank loans) hindered relative performance as the asset class underperformed high yield bonds during the period.

Describe recent portfolio activity.

•

The Trust maintained its focus on higher-quality income-oriented credit names with stable fundamentals, good earnings/revenue visibility and an attractive coupon rate. The Trust remained generally cautious of cyclical credits that tend to be more vulnerable to slower economic growth and bouts of weakness, but allowed some risk in companies with positive growth catalysts or idiosyncratic characteristics. Also during the period, the Trust increased exposure to floating rate loan interests as valuations appeared increasingly attractive relative to certain segments of the high yield universe such as higher-quality short-dated paper.

Describe portfolio positioning at period end.

•

At period end, the Trust held 79% of its total portfolio in corporate bonds and 19% in floating rate loan interests, with the remainder in preferred securities and US treasury obligations. The Trust held its largest industry exposures in healthcare, media non-cable and wireless, while reflecting less emphasis on the riskier, more volatile segments of the market such as the supermarkets and restaurants industries.

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.

18

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

	BlackRock Strategic Bond Trust

Trust Information

Symbol on NYSE				BHD
Initial Offering Date				February 26, 2002
Yield on Closing Market Price as of February 28, 2013 ($15.09)1				6.72%
Current Monthly Distribution per Common Share2				$0.0845
Current Annualized Distribution per Common Share2				$1.0140
Economic Leverage as of February 28, 20133				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 loan outstanding as a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to borrowings) minus the sum of liabilities (other than borrowings representing financial leverage). For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 20.

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

---

				2/28/13				8/31/12				Change				High				Low
Market Price				$	15.09			$	14.52				3.93	%		$	16.01			$	13.25
Net Asset Value				$	14.76			$	14.40				2.50	%		$	14.89			$	14.40

The following charts show the portfolio composition of the Trust’s long-term investments and credit quality allocation of the Trust’s corporate bond securities:

Portfolio Composition

				2/28/13				8/31/12
Corporate Bonds					79	%			79	%
Floating Rate Loan Interests					19				17
Preferred Securities					1				2
US Treasury Obligations					1				1
Common Stocks					—				1

Credit Quality Allocation⁴

				2/28/13				8/31/12
AAA/Aaa					1	%			—
AA/Aa					1				1	%
A					14				12
BBB/Baa					19				21
BB/Ba					28				26
B					32				32
CCC/Caa					4				7
Not Rated					1				1

4

Using the higher of S&P’s or Moody’s ratings.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

19

The Benefits and Risks of Leveraging

The Trusts 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 Trusts may utilize leverage through a credit facility, by entering into reverse repurchase agreements and/or treasury roll transactions. In general, the concept of leveraging is based on the premise that the financing 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 Trust on its longer-term portfolio investments. To the extent that the total assets of each Trust (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, each Trust’s shareholders will benefit from the incremental net income.

The interest earned on securities purchased with the proceeds from leverage is paid to shareholders in the form of dividends, and the value of these portfolio holdings is reflected in the per share NAV. However, in order to benefit 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 shareholders will be lower than if the Trusts had not used leverage.

To illustrate these concepts, assume a Trust’s capitalization is $100 million and it borrows for an additional $30 million, creating a total value of $130 million 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 Trust pays borrowing costs 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 Trust with assets received from the borrowings earn income based on long-term interest rates. In this case, the borrowing costs and interest expense of the borrowings is significantly lower than the income earned on the Trust’s long-term investments, and therefore the Trust’s 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 will be reduced or eliminated completely. Furthermore, if prevailing short-term interest rates rise above long-term interest rates, the yield curve has a negative slope. In this case, the Trust pays higher short-term interest rates whereas the Trust’s total portfolio earns income based on lower long-term interest rates.

Furthermore, the value of the Trusts’ 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 Trusts’ debt securities does not fluctuate in relation to interest rates. As a result, changes in interest rates can influence the Trusts’ NAVs positively or negatively in addition to the impact on Trust performance from leverage from borrowings discussed above.

The use of leverage may enhance opportunities for increased income to the Trusts, but as described above, it also creates risks as short- or long-term interest rates fluctuate. Leverage also will generally cause greater changes in the Trusts’ 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, the Trusts’ 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 Trust’s net income will be less than if leverage had not been used, and therefore the amount available for distribution to shareholders will be reduced. Each Trust 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 Trust to incur losses. The use of leverage may limit each Trust’s ability to invest in certain types of securities or use certain types of hedging strategies. Each Trust will incur expenses in connection with the use of leverage, all of which are borne by shareholders and may reduce income.

Under the Investment Company Act of 1940, as amended (the “1940 Act”), the Trusts are permitted to issue senior securities representing indebtedness up to 33¹⁄3% of their total managed assets (each Trust’s net assets plus the proceeds of any outstanding borrowings). If the Trusts segregate liquid assets having a value not less than the repurchase price (including accrued interest), a reverse repurchase agreement will not be considered a senior security and therefore will not be subject to this limitation. In addition, each Trust voluntarily limits its aggregate economic leverage to 50% of its managed assets. As of February 28, 2013, the Trusts had aggregate economic leverage from reverse repurchase agreements, treasury roll transactions and/or borrowings through a credit facility as a percentage of their total managed assets as follows:

				Percent of Economic Leverage
BHK					31	%
HYV					29	%
HYT					28	%
HIS					26	%
BHY					27	%
BNA					31	%
BKT					30	%
BHD					21	%

Derivative Financial Instruments

The Trusts may invest in various derivative financial instruments, including financial futures contracts, foreign currency exchange contracts, options and swaps, as specified in Note 2 of the Notes to Financial Statements, which may constitute forms of economic leverage. Such derivative financial instruments are used to obtain exposure to a security, index and/or market without owning or taking physical custody of securities or to hedge market, equity, credit, interest rate, foreign currency exchange rate and/or other risks. Derivative financial instruments involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the derivative financial instrument. The Trusts’ ability to use a derivative financial instrument successfully depends on the investment advisor’s ability to predict pertinent market movements accurately, which cannot be assured. The use of derivative financial instruments may result in losses greater than if they had not been used, may require a Trust to sell or purchase portfolio investments at inopportune times or for distressed values, may limit the amount of appreciation a Trust can realize on an investment, may result in lower dividends paid to shareholders or may cause a Trust to hold an investment that it might otherwise sell. The Trusts’ investments in these instruments are discussed in detail in the Notes to Financial Statements.

20

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

Schedule of Investments February 28, 2013 (Unaudited)	BlackRock Core Bond Trust (BHK) (Percentages shown are based on Net Assets)

Asset-Backed Securities								Par (000)				Value
Asset-Backed Securities — 8.1%
321 Henderson Receivables I LLC, Series 2010-3A, Class A, 3.82%, 12/15/48 (a)					USD				719			$	779,656
ACAS CLO Ltd., Series 2013-1A, Class C, 3.04%, 4/20/25 (a)(b)(c)									500				487,800
AH Mortgage Advance Co. Ltd., Series SART-3, Class 1A1, 2.98%, 3/13/43 (a)									630				631,104
AmeriCredit Automobile Receivables Trust, Series 2011-5, Class C, 3.44%, 10/08/17									400				419,704
Apidos CDO, Series 2012-11A, Class D, 4.74%, 1/17/23 (a)(b)									600				600,900
Atrium CDO Corp., Series 9A, Class D, 3.96%, 2/28/24 (a)(b)									500				483,500
CarMax Auto Owner Trust, Series 2012-1:
Class B, 1.76%, 8/15/17									210				214,781
Class C, 2.20%, 10/16/17									125				127,980
Class D, 3.09%, 8/15/18									155				160,475
Cavalry CLO Ltd., Series 2A (a)(b):
Class C, 3.23%, 1/17/24									1,035				1,014,300
Class D, 4.38%, 1/17/24									770				749,595
CenterPoint Energy Transition Bond Co. LLC, Series 2012-1, Class A3, 3.03%, 10/15/25									1,105				1,165,103
CIFC Funding Ltd. (a)(b):
Series 2012-1A, Class B1L, 5.54%, 8/14/24									750				757,500
Series 2013-1A, Class B, 3.10%, 4/16/25 (c)									500				493,750
Series 2013-1A, Class C, 3.89%, 4/16/25 (c)									500				486,500
Countrywide Asset-Backed Certificates, Series 2006-13, Class 3AV2, 0.35%, 1/25/37 (b)									1,039				897,095
Credit Acceptance Auto Loan Trust, Series 2010-1, Class B, 3.63%, 10/15/18 (a)									1,980				1,991,739
DT Auto Owner Trust (a):
Series 2011-2A, Class C, 3.05%, 2/16/16									1,500				1,504,674
Series 2011-3A, Class C, 4.03%, 2/15/17									255				259,733
Duane Street CLO IV Ltd., Series 2007-4A, Class D, 2.54%, 11/14/21 (a)(b)									500				445,000
Figueroa CLO Ltd., Series 2013-1A, Class C, 3.94%, 3/21/24 (a)(b)(c)									500				477,500
Ford Credit Floorplan Master Owner Trust:
Series 2012-1, Class B, 1.10%, 1/15/16 (b)									180				180,720
Series 2012-1, Class C, 1.70%, 1/15/16 (b)									475				478,373
Series 2012-1, Class D, 2.30%, 1/15/16 (b)									445				447,953
Series 2012-2, Class B, 2.32%, 1/15/19									245				252,913
Series 2012-2, Class C, 2.86%, 1/15/19									105				110,368
Series 2012-2, Class D, 3.50%, 1/15/19									200				211,127
Galaxy CLO Ltd., Series 2013-15A, Class C, 2.89%, 4/15/25 (a)(b)(c)									500				490,510
Home Equity Asset Trust, Series 2007-2, Class 2A1, 0.31%, 7/25/37 (b)									36				36,026
Mountain Hawk I CLO Ltd., Series 2013-1A, Class C, 3.12%, 1/20/24 (a)(b)									750				723,750
Nelnet Student Loan Trust (b):
Series 2006-1, Class A5, 0.40%, 8/23/27									525				514,436
Series 2008-3, Class A4, 1.94%, 11/25/24									615				654,947
OZLM Funding Ltd., Series 2013-3A (a)(b):
Class B, 3.35%, 1/22/25									750				754,725
Class C, 4.15%, 1/22/25									500				488,850

Asset-Backed Securities								Par (000)				Value
Asset-Backed Securities (concluded)
PFS Financing Corp., Series 2012-AA, Class A, 1.40%, 2/15/16 (a)(b)					USD				480			$	483,831
Santander Consumer Acquired Receivables Trust (a):
Series 2011-S1A, Class B, 1.66%, 8/15/16									460				463,693
Series 2011-S1A, Class C, 2.01%, 8/15/16									311				314,223
Series 2011-S1A, Class D, 3.15%, 8/15/16									325				330,281
Series 2011-WO, Class C, 3.19%, 10/15/15									580				596,183
Santander Drive Auto Receivables Trust:
Series 2010-2, Class B, 2.24%, 12/15/14									777				780,844
Series 2010-2, Class C, 3.89%, 7/17/17									1,010				1,044,275
Series 2010-B, Class B, 2.10%, 9/15/14 (a)									419				419,672
Series 2010-B, Class C, 3.02%, 10/17/16 (a)									740				752,697
Series 2011-1, Class D, 4.01%, 2/15/17									940				988,523
Series 2011-S1A, Class B, 1.48%, 5/15/17 (a)									197				198,187
Series 2011-S1A, Class D, 3.10%, 5/15/17 (a)									175				175,521
Series 2011-S2A, Class C, 2.86%, 6/15/17 (a)									511				515,497
Series 2012-1, Class B, 2.72%, 5/16/16									240				246,372
Series 2012-1, Class C, 3.78%, 11/15/17									325				341,443
SLM Student Loan Trust:
Series 2004-B, Class A2, 0.51%, 6/15/21 (b)									171				167,923
Series 2008-5, Class A3, 1.60%, 1/25/18 (b)									515				524,047
Series 2008-5, Class A4, 2.00%, 7/25/23 (b)									615				648,482
Series 2012-A, Class A1, 1.60%, 8/15/25 (a)(b)									296				300,469
Series 2012-A, Class A2, 3.83%, 1/17/45 (a)									345				378,332
Small Business Administration, Class 1:
Series 2003-P10B, 5.14%, 8/10/13									56				57,379
Series 2004-P10B, 4.75%, 8/10/14									96				98,780
Structured Asset Securities Corp., Series 2002-AL1, Class A2, 3.45%, 2/25/32									1,219				1,219,733
Symphony CLO VII Ltd., Series 2011-7A, Class E, 3.90%, 7/28/21 (a)(b)									750				727,500
Venture CDO Ltd., Series 2012-12A, Class D, 4.01%, 2/28/24 (a)(b)									770				723,800
World Financial Network Credit Card Master Trust, Series 2012-C, Class C, 4.55%, 8/15/22									1,180				1,286,930
													33,277,704
Interest Only Asset-Backed Securities — 0.2%
Sterling Bank Trust, Series 2004-2, Class Note, 2.08%, 3/30/30 (a)									3,590				277,179
Sterling Coofs Trust, Series 2004-1, 2.36%, 4/15/29 (a)									5,591				408,845
													686,024
Total Asset-Backed Securities — 8.3%													33,963,728
Common Stocks (d)									Shares
Paper & Forest Products — 0.1%
NewPage Corp.									1,720				146,200
Software — 0.0%
Bankruptcy Management Solutions, Inc.									135				1
Total Common Stocks — 0.1%													146,201

Portfolio Abbreviations

To simplify the listings of portfolio holdings in the Schedules of Investments, the names and descriptions of many of the securities have been abbreviated according to the following list:	AUD	Australian Dollar	FKA	Formerly Known As
	CAD	Canadian Dollar	FNMA	Federal National Mortgage Association
	DIP	Debtor-In-Possession	GBP	British Pound
	EBITDA	Earnings Before Interest, Taxes, Depreciation and Amortization	GO	General Obligation Bonds
	EUR	Euro	LIBOR	London Interbank Offered Rate
	EURIBOR	Euro Interbank Offered Rate	RB	Revenue Bonds
			TBA	To Be Announced
			USD	US Dollar

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

21

Schedule of Investments (continued)	BlackRock Core Bond Trust (BHK) (Percentages shown are based on Net Assets)

Corporate Bonds								Par (000)				Value
Aerospace & Defense — 0.7%
Bombardier, Inc., 4.25%, 1/15/16 (a)					USD				335			$	347,563
Huntington Ingalls Industries, Inc., 7.13%, 3/15/21									230				250,700
United Technologies Corp. (e):
4.88%, 5/01/15									1,125				1,230,691
6.13%, 7/15/38									700				909,242
													2,738,196
Airlines — 0.7%
Continental Airlines Pass-Through Trust:
Series 2010-1, Class B, 6.00%, 1/12/19									571				588,248
Series 2012-3, Class C, 6.13%, 4/29/18									500				498,750
US Airways Pass-Through Trust, Series 2012-1, Class C, 9.13%, 10/01/15									1,553				1,661,710
													2,748,708
Auto Components — 1.1%
Icahn Enterprises LP (b)(f):
4.00%, 8/15/13									1,455				1,458,637
4.00%, 8/15/13 (a)									2,900				2,907,250
													4,365,887
Automobiles — 0.5%
Ford Motor Co., 4.75%, 1/15/43									1,995				1,894,813
Beverages — 0.1%
Crown European Holdings SA, 7.13%, 8/15/18 (a)					EUR				287				405,605
Building Products — 0.1%
Momentive Performance Materials, Inc., 8.88%, 10/15/20					USD				255				261,694
Capital Markets — 3.8%
CDP Financial, Inc., 5.60%, 11/25/39 (a)(e)									2,935				3,559,768
The Goldman Sachs Group, Inc.:
5.38%, 3/15/20									1,220				1,402,524
5.25%, 7/27/21 (e)									3,165				3,602,254
5.75%, 1/24/22 (e)									1,800				2,111,742
Morgan Stanley:
4.20%, 11/20/14									490				513,514
4.00%, 7/24/15									410				432,664
6.25%, 8/28/17 (e)									1,930				2,239,229
Murray Street Investment Trust I, 4.65%, 3/09/17 (g)									1,650				1,806,722
													15,668,417
Chemicals — 1.7%
Axiall Corp., 4.88%, 5/15/23 (a)									248				251,720
The Dow Chemical Co., 4.13%, 11/15/21									350				378,147
Eagle Spinco, Inc., 4.63%, 2/15/21 (a)									527				535,564
Huntsman International LLC, 4.88%, 11/15/20 (a)									727				719,730
Methanex Corp., 3.25%, 12/15/19									2,074				2,107,825
Nufarm Australia Ltd., 6.38%, 10/15/19 (a)									245				259,700
Rockwood Specialties Group, Inc., 4.63%, 10/15/20									1,390				1,438,650
Tronox Finance LLC, 6.38%, 8/15/20 (a)									991				984,806
US Coatings Acquisition, Inc./Flash Dutch 2 BV, 7.38%, 5/01/21 (a)									151				156,285
													6,832,427
Commercial Banks — 3.0%
CIT Group, Inc.:
5.38%, 5/15/20									1,650				1,798,500
5.00%, 8/15/22									360				385,200
Depfa ACS Bank, 5.13%, 3/16/37 (a)									3,775				3,086,063
HSBC Bank Brasil SA—Banco Multiplo, 4.00%, 5/11/16 (a)									1,400				1,456,000
HSBC Bank Plc, 3.10%, 5/24/16 (a)(e)									700				743,324
HSBC Holdings Plc, 6.10%, 1/14/42 (e)									305				392,960
Rabobank Nederland (e):
3.88%, 2/08/22									1,390				1,476,819
3.95%, 11/09/22									1,500				1,524,342
Wells Fargo & Co., 3.50%, 3/08/22 (e)									1,390				1,466,087
													12,329,295
Corporate Bonds								Par (000)				Value
Commercial Services & Supplies — 0.7%
ADS Waste Holdings, Inc., 8.25%, 10/01/20 (a)					USD				246			$	264,450
The ADT Corp., 4.88%, 7/15/42 (a)									539				513,286
Aviation Capital Group Corp., 4.63%, 1/31/18 (a)									650				660,118
Clean Harbors, Inc., 5.25%, 8/01/20									391				402,730
HDTFS, Inc. (a):
5.88%, 10/15/20									230				239,200
6.25%, 10/15/22									385				413,875
Mobile Mini, Inc., 7.88%, 12/01/20									320				356,000
													2,849,659
Communications Equipment — 1.2%
ADC Telecommunications, Inc., 3.50%, 7/15/15 (f)									4,330				4,332,165
Zayo Group LLC/Zayo Capital, Inc., 8.13%, 1/01/20									530				592,275
													4,924,440
Construction & Engineering — 0.0%
ABB Finance USA, Inc., 4.38%, 5/08/42									192				201,667
Construction Materials — 0.6%
HD Supply, Inc. (a):
8.13%, 4/15/19									570				641,962
7.50%, 7/15/20									1,544				1,545,930
11.50%, 7/15/20									255				293,888
Lafarge SA, 7.13%, 7/15/36									135				141,075
													2,622,855
Consumer Finance — 1.1%
Discover Financial Services, 3.85%, 11/21/22 (a)									250				255,733
Ford Motor Credit Co. LLC:
8.13%, 1/15/20									1,265				1,593,667
4.25%, 9/20/22									800				824,824
SLM Corp.:
6.25%, 1/25/16									661				715,533
Series A, 0.60%, 1/27/14 (b)									550				546,015
Toll Brothers Finance Corp., 5.88%, 2/15/22									345				384,940
													4,320,712
Containers & Packaging — 1.1%
Ardagh Packaging Finance Plc (a):
7.38%, 10/15/17					EUR				425				602,022
7.38%, 10/15/17					USD				200				217,750
4.88%, 11/15/22									209				205,865
Crown Americas LLC/Crown Americas Capital Corp. III, 6.25%, 2/01/21									61				66,490
Crown Americas LLC/Crown Americas Capital Corp. IV, 4.50%, 1/15/23 (a)									662				647,105
Sealed Air Corp. (a):
6.50%, 12/01/20									550				598,125
8.38%, 9/15/21									225				256,500
Smurfit Kappa Acquisitions (a):
7.25%, 11/15/17					EUR				725				1,008,047
4.88%, 9/15/18					USD				410				420,250
7.75%, 11/15/19					EUR				410				587,465
													4,609,619
Diversified Consumer Services — 0.5%
313 Group, Inc., 6.38%, 12/01/19 (a)					USD				636				620,100
Service Corp. International, 4.50%, 11/15/20									1,243				1,238,339
													1,858,439
Diversified Financial Services — 7.6%
Aircastle Ltd., 6.25%, 12/01/19									708				762,870
Ally Financial, Inc.:
8.30%, 2/12/15									1,500				1,668,750
5.50%, 2/15/17									1,500				1,626,261
6.25%, 12/01/17									160				178,681
8.00%, 3/15/20									560				687,400
8.00%, 11/01/31									300				376,875
Bank of America Corp. (e):
5.63%, 7/01/20									1,100				1,287,086
3.30%, 1/11/23									4,990				4,974,052
Capital One Financial Corp., 4.75%, 7/15/21									960				1,092,672

See Notes to Financial Statements.

22

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

Schedule of Investments (continued)	BlackRock Core Bond Trust (BHK) (Percentages shown are based on Net Assets)

Corporate Bonds								Par (000)				Value
Diversified Financial Services (concluded)
FMR LLC, 4.95%, 2/01/33 (a)(e)					USD				1,150			$	1,167,765
General Electric Capital Corp. (e):
6.15%, 8/07/37									2,150				2,611,308
6.88%, 1/10/39									135				177,972
JPMorgan Chase & Co.:
3.70%, 1/20/15									3,425				3,606,957
6.30%, 4/23/19 (e)									2,000				2,449,740
JPMorgan Chase Bank NA, 6.00%, 10/01/17 (e)									2,050				2,427,040
Moody’s Corp., 4.50%, 9/01/22									900				904,224
Reynolds Group Issuer, Inc.:
7.88%, 8/15/19									560				618,800
5.75%, 10/15/20									1,000				1,032,500
6.88%, 2/15/21									680				725,900
Spirit Issuer Plc, 5.86%, 12/28/21					GBP				1,620				2,371,604
WMG Acquisition Corp., 11.50%, 10/01/18					USD				562				652,623
													31,401,080
Diversified Telecommunication Services — 2.3%
Level 3 Financing, Inc.:
8.13%, 7/01/19									698				760,820
8.63%, 7/15/20									650				721,500
Lynx I Corp., 5.38%, 4/15/21 (a)									395				404,875
Telecom Italia Capital SA:
4.95%, 9/30/14									1,075				1,112,625
6.00%, 9/30/34									1,550				1,420,790
Verizon Communications, Inc. (e):
3.50%, 11/01/21									500				525,624
6.40%, 2/15/38									3,483				4,378,438
Windstream Corp., 7.88%, 11/01/17									40				45,300
													9,369,972
Electric Utilities — 6.1%
The Cleveland Electric Illuminating Co.:
8.88%, 11/15/18									121				161,303
5.95%, 12/15/36									217				246,849
CMS Energy Corp., 5.05%, 3/15/22									915				1,029,661
Duke Energy Carolinas LLC:
6.10%, 6/01/37									315				398,262
6.00%, 1/15/38 (e)									825				1,059,048
4.25%, 12/15/41 (e)									375				393,690
E.ON International Finance BV, 6.65%, 4/30/38 (a)(e)									1,525				2,042,539
Electricite de France SA, 5.60%, 1/27/40 (a)(e)									1,400				1,582,339
Florida Power Corp. (e):
6.35%, 9/15/37									1,325				1,744,352
6.40%, 6/15/38									430				574,148
Hydro-Quebec (e):
9.40%, 2/01/21									390				582,362
8.40%, 1/15/22									730				1,043,297
8.05%, 7/07/24									1,900				2,773,230
Jersey Central Power & Light Co., 7.35%, 2/01/19									245				313,698
Nisource Finance Corp.:
6.40%, 3/15/18									280				336,096
5.25%, 2/15/43									500				530,513
Ohio Power Co., Series D, 6.60%, 3/01/33									1,500				1,933,883
PacifiCorp., 6.25%, 10/15/37 (e)									575				770,007
Public Service Co. of Colorado, 6.25%, 9/01/37 (e)									1,200				1,617,247
Southern California Edison Co. (e):
5.63%, 2/01/36									625				775,524
Series 08-A, 5.95%, 2/01/38									1,075				1,395,897
The Tokyo Electric Power Co., Inc., 4.50%, 3/24/14 (e)					EUR				1,000				1,333,358
Virginia Electric and Power Co., Series A, 6.00%, 5/15/37 (e)					USD				2,000				2,613,318
													25,250,621
Electrical Equipment — 0.1%
GrafTech International Ltd., 6.38%, 11/15/20 (a)									580				616,250
Corporate Bonds								Par (000)				Value
Energy Equipment & Services — 3.0%
Calfrac Holdings LP, 7.50%, 12/01/20 (a)(e)					USD				565			$	567,825
Ensco Plc:
3.25%, 3/15/16									160				170,029
4.70%, 3/15/21									1,745				1,952,852
EOG Resources, Inc., 2.63%, 3/15/23 (e)									1,902				1,886,556
FTS International Services LLC/FTS International Bonds, Inc., 8.13%, 11/15/18 (a)									807				835,245
Genesis Energy LP, 5.75%, 2/15/21 (a)									236				244,260
Noble Holding International Ltd., 5.25%, 3/15/42									350				353,231
Peabody Energy Corp.:
6.00%, 11/15/18									429				455,812
6.25%, 11/15/21									2,171				2,257,840
Seadrill Ltd., 5.63%, 9/15/17 (a)									1,590				1,609,875
Tervita Corp., 8.00%, 11/15/18 (a)									516				531,480
Transocean, Inc.:
5.05%, 12/15/16									850				946,873
6.50%, 11/15/20									350				407,990
													12,219,868
Food Products — 1.4%
Darling International, Inc., 8.50%, 12/15/18									335				381,063
Kraft Foods Group, Inc.:
5.38%, 2/10/20									1,570				1,874,520
5.00%, 6/04/42									997				1,088,216
Mondelez International, Inc. (FKA Kraft Foods, Inc.), 5.38%, 2/10/20									1,430				1,705,346
Post Holdings, Inc., 7.38%, 2/15/22									749				808,920
													5,858,065
Gas Utilities — 0.5%
CenterPoint Energy Resources Corp., 5.85%, 1/15/41									1,600				1,982,877
Health Care Equipment & Supplies — 0.7%
Boston Scientific Corp., 6.25%, 11/15/15									1,251				1,407,734
DJO Finance LLC, 7.75%, 4/15/18									735				731,325
Fresenius Medical Care US Finance II, Inc., 5.63%, 7/31/19 (a)									152				164,540
Teleflex, Inc., 6.88%, 6/01/19									385				418,688
													2,722,287
Health Care Providers & Services — 4.3%
Aviv Healthcare Properties LP, 7.75%, 2/15/19									175				187,688
CHS/Community Health Systems, Inc., 5.13%, 8/15/18									400				420,500
ConvaTec Healthcare E SA, 7.38%, 12/15/17 (a)					EUR				494				683,638
HCA, Inc.:
6.50%, 2/15/20					USD				1,990				2,228,800
7.88%, 2/15/20									205				227,294
7.25%, 9/15/20									900				999,000
4.75%, 5/01/23									1,289				1,285,777
IASIS Healthcare LLC, 8.38%, 5/15/19									550				566,500
INC Research LLC, 11.50%, 7/15/19 (a)									465				496,387
inVentiv Health, Inc. (a):
9.00%, 1/15/18									310				323,175
11.00%, 8/15/18									40				34,700
Omnicare, Inc., 7.75%, 6/01/20									805				893,550
Symbion, Inc., 8.00%, 6/15/16									455				475,475
Tenet Healthcare Corp.:
6.25%, 11/01/18									769				851,667
8.88%, 7/01/19									1,150				1,299,500
4.50%, 4/01/21 (a)									588				579,915
UnitedHealth Group, Inc., 2.88%, 3/15/22 (e)									2,000				2,019,720
WellPoint, Inc., 4.65%, 1/15/43 (e)									4,005				4,050,425
													17,623,711

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

23

Schedule of Investments (continued)	BlackRock Core Bond Trust (BHK) (Percentages shown are based on Net Assets)

Corporate Bonds								Par (000)				Value
Health Care Technology — 0.6%
Amgen, Inc. (e):
6.40%, 2/01/39					USD				750			$	948,013
5.15%, 11/15/41									1,500				1,642,570
													2,590,583
Hotels, Restaurants & Leisure — 1.7%
Caesars Operating Escrow LLC, 9.00%, 2/15/20 (a)									398				393,025
El Dorado Resorts LLC, 8.63%, 6/15/19 (a)									180				178,875
MCE Finance Ltd., 5.00%, 2/15/21 (a)									935				935,000
Six Flags Entertainment Corp., 5.25%, 1/15/21 (a)									865				847,700
The Unique Pub Finance Co. Plc:
Series A3, 6.54%, 3/30/21					GBP				900				1,361,931
Series A4, 5.66%, 6/30/27									1,327				1,867,174
Series N, 6.46%, 3/30/32									1,195				1,350,592
													6,934,297
Household Durables — 0.8%
Beazer Homes USA, Inc., 6.63%, 4/15/18					USD				580				619,875
Standard Pacific Corp., 10.75%, 9/15/16									2,100				2,614,500
United Rentals North America, Inc., 5.75%, 7/15/18									194				208,792
													3,443,167
Household Products — 0.2%
Ontex IV SA, 7.50%, 4/15/18 (a)					EUR				190				257,977
Spectrum Brands Escrow Corp. (a):
6.38%, 11/15/20					USD				200				212,750
6.63%, 11/15/22									275				296,312
													767,039
Independent Power Producers & Energy Traders — 0.8%
Calpine Corp., 7.50%, 2/15/21 (a)									157				170,737
Energy Future Intermediate Holding Co. LLC:
10.00%, 12/01/20									922				1,046,470
10.00%, 12/01/20 (a)									890				1,003,475
GenOn REMA LLC, Series C, 9.68%, 7/02/26									415				452,350
NRG Energy, Inc., 6.63%, 3/15/23 (a)									435				463,275
													3,136,307
Industrial Conglomerates — 0.0%
Smiths Group Plc, 3.63%, 10/12/22 (a)									180				178,797
Insurance — 4.5%
Alliant Holdings I, Inc., 7.88%, 12/15/20 (a)									613				616,065
Allianz Finance II BV, 5.75%, 7/08/41					EUR				500				733,220
American International Group, Inc. (e):
3.80%, 3/22/17					USD				5,580				6,058,747
5.45%, 5/18/17									800				917,591
AXA SA, 5.25%, 4/16/40					EUR				250				338,835
Hartford Financial Services Group, Inc.:
6.00%, 1/15/19					USD				345				407,716
5.13%, 4/15/22									930				1,071,440
Hartford Life Global Funding Trusts, 0.49%, 6/16/14 (b)									425				424,730
Liberty Mutual Group, Inc., 6.50%, 5/01/42 (a)									1,000				1,135,115
Lincoln National Corp., 6.25%, 2/15/20									630				764,436
Manulife Financial Corp., 3.40%, 9/17/15									1,630				1,715,528
MetLife Global Funding I, 5.13%, 6/10/14 (a)(e)									775				819,711
Montpelier Re Holdings Ltd., 4.70%, 10/15/22									450				453,858
MPL 2 Acquisition Canco, Inc., 9.88%, 8/15/18 (a)									340				336,600
Muenchener Rueckversicherungs AG, 6.00%, 5/26/41 (b)					EUR				200				302,077
Prudential Financial, Inc. (e):
7.38%, 6/15/19					USD				250				320,523
5.38%, 6/21/20									250				294,761
4.50%, 11/15/20									450				504,328
5.90%, 3/17/36									500				579,371
5.70%, 12/14/36									675				770,128
													18,564,780
Corporate Bonds								Par (000)				Value
Internet Software & Services — 0.0%
Equinix, Inc., 4.88%, 4/01/20					USD				86			$	86,000
IT Services — 0.7%
First Data Corp. (a):
7.38%, 6/15/19									775				814,719
6.75%, 11/01/20									680				697,850
8.25%, 1/15/21									30				30,675
SunGard Data Systems, Inc., 7.38%, 11/15/18									1,080				1,159,650
													2,702,894
Life Sciences Tools & Services — 0.1%
Agilent Technologies, Inc., 3.20%, 10/01/22									250				249,832
Machinery — 0.3%
UR Merger Sub Corp.:
7.38%, 5/15/20									495				542,025
7.63%, 4/15/22									452				500,590
													1,042,615
Marine — 0.3%
Nakilat, Inc., Series A, 6.07%, 12/31/33 (a)(e)									1,050				1,275,750
Media — 6.6%
Affinion Group, Inc., 7.88%, 12/15/18 (e)									507				385,320
AMC Networks, Inc.:
7.75%, 7/15/21									320				363,200
4.75%, 12/15/22									343				341,714
Cinemark USA, Inc., 5.13%, 12/15/22 (a)									175				175,875
Clear Channel Communications, Inc., 9.00%, 12/15/19 (a)									305				283,650
Clear Channel Worldwide Holdings, Inc. (a):
6.50%, 11/15/22									674				704,330
6.50%, 11/15/22									1,821				1,916,603
Comcast Cable Communications Holdings, Inc., 9.46%, 11/15/22									600				910,124
Comcast Corp., 6.45%, 3/15/37									790				1,013,708
Cox Communications, Inc., 8.38%, 3/01/39 (a)									1,740				2,569,510
DIRECTV Holdings LLC:
6.38%, 3/01/41									260				285,254
5.15%, 3/15/42									2,100				2,021,063
Intelsat Luxembourg SA:
11.25%, 2/04/17									750				796,875
11.50%, 2/04/17									415				441,456
Interactive Data Corp., 10.25%, 8/01/18									1,330				1,507,888
NBC Universal Media LLC (e):
5.15%, 4/30/20									1,983				2,354,009
4.38%, 4/01/21									1,015				1,143,202
The New York Times Co., 6.63%, 12/15/16									1,800				1,966,500
News America, Inc., 7.63%, 11/30/28									385				504,734
Omnicom Group, Inc., 3.63%, 5/01/22									2,355				2,398,544
TCI Communications, Inc., 7.88%, 2/15/26									610				841,889
Time Warner Cable, Inc.:
7.30%, 7/01/38									930				1,164,988
5.88%, 11/15/40									465				499,450
5.50%, 9/01/41									920				963,869
Time Warner, Inc.:
4.70%, 1/15/21									350				392,996
6.10%, 7/15/40									215				251,539
Unitymedia Hessen GmbH & Co. KG, 5.50%, 1/15/23 (a)									255				257,550
Virgin Media Secured Finance Plc, 6.50%, 1/15/18									525				560,438
													27,016,278
Metals & Mining — 4.3%
Alcoa, Inc., 5.40%, 4/15/21									1,450				1,523,909
ArcelorMittal:
9.50%, 2/15/15									410				462,788
4.25%, 2/25/15									174				179,660
4.25%, 8/05/15									233				241,235
4.25%, 3/01/16									175				180,250
5.00%, 2/25/17									243				252,842

See Notes to Financial Statements.

24

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

Schedule of Investments (continued)	BlackRock Core Bond Trust (BHK) (Percentages shown are based on Net Assets)

Corporate Bonds								Par (000)				Value
Metals & Mining (concluded)
ArcelorMittal (concluded):
6.13%, 6/01/18					USD				313			$	337,507
6.75%, 2/25/22 (e)									252				277,479
Barrick Gold Corp., 2.90%, 5/30/16									1,690				1,775,507
Corp. Nacional del Cobre de Chile, 3.00%, 7/17/22 (a)									1,565				1,543,799
Falconbridge Ltd., 6.20%, 6/15/35									1,250				1,361,800
Freeport-McMoRan Copper & Gold, Inc.:
3.55%, 3/01/22									540				537,202
5.45%, 3/15/43 (a)									450				447,948
New Gold, Inc. (a):
7.00%, 4/15/20									105				113,400
6.25%, 11/15/22									440				463,100
New World Resources NV, 7.88%, 5/01/18					EUR				165				220,904
Newcrest Finance Property Ltd., 4.45%, 11/15/21 (a)					USD				475				504,598
Novelis, Inc., 8.75%, 12/15/20									4,120				4,614,400
Teck Resources Ltd., 5.38%, 10/01/15									2,359				2,598,979
													17,637,307
Multiline Retail — 0.3%
Dufry Finance SCA, 5.50%, 10/15/20 (a)									1,260				1,313,550
Oil, Gas & Consumable Fuels — 11.2%
Access Midstream Partners LP, 6.13%, 7/15/22									400				429,000
Anadarko Petroleum Corp., 5.95%, 9/15/16									1,916				2,203,042
BP Capital Markets Plc, 3.13%, 10/01/15 (e)									330				349,598
Burlington Resources Finance Co., 7.40%, 12/01/31 (e)									875				1,223,184
Carrizo Oil & Gas, Inc., 7.50%, 9/15/20									400				420,000
Cenovus Energy, Inc., 6.75%, 11/15/39									750				988,233
ConocoPhillips Canada Funding Co., 5.95%, 10/15/36 (e)									535				678,285
Continental Resources, Inc., 5.00%, 9/15/22									486				522,450
Denbury Resources, Inc., 4.63%, 7/15/23									623				611,319
El Paso Natural Gas Co. LLC, 8.38%, 6/15/32									275				390,763
El Paso Pipeline Partners Operating Co. LLC, 6.50%, 4/01/20									240				289,967
Energy Transfer Partners LP, 6.50%, 2/01/42									500				577,145
Energy XXI Gulf Coast, Inc., 9.25%, 12/15/17									455				514,150
Enterprise Products Operating LLC:
4.05%, 2/15/22									1,250				1,359,645
6.13%, 10/15/39									700				825,763
5.95%, 2/01/41									500				585,478
Series L, 6.30%, 9/15/17									575				693,642
KeySpan Gas East Corp., 5.82%, 4/01/41 (a)(e)									505				633,385
Kinder Morgan Energy Partners LP:
5.95%, 2/15/18									1,300				1,550,585
6.50%, 9/01/39									3,000				3,627,495
6.55%, 9/15/40									110				134,430
6.38%, 3/01/41									150				180,688
Kodiak Oil & Gas Corp., 8.13%, 12/01/19									110				123,750
Linn Energy LLC, 6.25%, 11/01/19 (a)									355				362,100
Marathon Petroleum Corp., 6.50%, 3/01/41									997				1,252,804
MarkWest Energy Partners LP:
5.50%, 2/15/23									160				168,000
4.50%, 7/15/23									206				201,365
MidAmerican Energy Co., 5.80%, 10/15/36									700				877,932
MidAmerican Energy Holdings Co.:
5.95%, 5/15/37									800				989,205
6.50%, 9/15/37									1,900				2,492,217
Newfield Exploration Co., 5.63%, 7/01/24									710				741,950
Nexen, Inc., 7.50%, 7/30/39									1,000				1,433,105
Offshore Group Investments Ltd., 11.50%, 8/01/15									163				177,670
PBF Holding Co. LLC, 8.25%, 2/15/20 (a)									110				119,625
PDC Energy, Inc., 7.75%, 10/15/22 (a)									300				317,250
Petrobras International Finance Co.:
3.88%, 1/27/16									1,340				1,400,741
5.75%, 1/20/20									1,725				1,914,862
Corporate Bonds								Par (000)				Value
Oil, Gas & Consumable Fuels (concluded)
Pioneer Natural Resources Co., 3.95%, 7/15/22					USD				350			$	364,750
Plains Exploration & Production Co., 6.88%, 2/15/23									950				1,094,875
Premier Oil Plc, 5.00%, 6/09/18									1,900				1,992,625
Range Resources Corp., 5.75%, 6/01/21									935				995,775
Sabine Pass Liquefaction LLC, 5.63%, 2/01/21 (a)									2,246				2,318,995
Sabine Pass Liquified Natural Gas LP:
7.50%, 11/30/16									1,475				1,629,875
6.50%, 11/01/20 (a)									475				501,125
SandRidge Energy, Inc., 7.50%, 2/15/23									588				615,930
Tennessee Gas Pipeline Co. LLC, 7.50%, 4/01/17									1,040				1,278,551
Western Gas Partners LP:
5.38%, 6/01/21									710				802,705
4.00%, 7/01/22									200				207,069
The Williams Cos., Inc., Series A, 7.50%, 1/15/31									2,500				3,077,585
													46,240,683
Paper & Forest Products — 0.3%
Boise Paper Holdings LLC:
9.00%, 11/01/17									180				194,625
8.00%, 4/01/20									155				170,887
International Paper Co.:
7.50%, 8/15/21									75				97,868
4.75%, 2/15/22									420				471,177
6.00%, 11/15/41									435				507,082
NewPage Corp., 11.38%, 12/31/14 (d)(h)									397				—
													1,441,639
Pharmaceuticals — 0.4%
Capsugel Finance Co. SCA, 9.88%, 8/01/19 (a)					EUR				200				293,748
Jaguar Holding Co. II/Jaguar Merger Sub, Inc., 9.50%, 12/01/19 (a)					USD				520				596,700
Valeant Pharmaceuticals International, 6.38%, 10/15/20 (a)									575				618,844
													1,509,292
Real Estate Investment Trusts (REITs) — 0.7%
Felcor Lodging LP, 5.63%, 3/01/23 (a)									247				248,544
Simon Property Group LP, 4.75%, 3/15/42									835				885,314
Ventas Realty LP/Ventas Capital Corp., 4.75%, 6/01/21									275				304,264
Vornado Realty LP, 5.00%, 1/15/22									1,185				1,315,747
													2,753,869
Real Estate Management & Development — 0.8%
Lennar Corp., 4.75%, 11/15/22 (a)									440				425,150
Mattamy Group Corp., 6.50%, 11/15/20 (a)									540				537,975
Punch Taverns Finance Plc, Series A2R, 6.82%, 7/15/20					GBP				704				1,076,013
Realogy Corp. (a)(e):
7.88%, 2/15/19					USD				374				406,725
7.63%, 1/15/20									520				586,300
WEA Finance LLC, 4.63%, 5/10/21 (a)									305				338,649
													3,370,812
Road & Rail — 0.4%
Burlington Northern Santa Fe LLC, 5.75%, 5/01/40									950				1,147,220
The Hertz Corp., 7.38%, 1/15/21									620				683,550
													1,830,770
Semiconductors & Semiconductor Equipment — 0.2%
NXP BV/NXP Funding LLC, 5.75%, 2/15/21 (a)									470				480,575
Spansion LLC, 7.88%, 11/15/17									390				411,450
													892,025
Software — 0.5%
IAC/InterActiveCorp, 4.75%, 12/15/22 (a)									598				584,545
Nuance Communications, Inc., 5.38%, 8/15/20 (a)									555				561,938
Oracle Corp., 5.38%, 7/15/40 (e)									775				935,416
													2,081,899

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

25

Schedule of Investments (continued)	BlackRock Core Bond Trust (BHK) (Percentages shown are based on Net Assets)

Corporate Bonds								Par (000)				Value
Specialty Retail — 0.5%
The Home Depot, Inc., 5.88%, 12/16/36 (e)					USD				830			$	1,052,685
New Academy Finance Co. LLC, 8.00%, 6/15/18 (a)(i)									244				251,930
QVC, Inc. (a):
7.50%, 10/01/19									395				435,958
7.38%, 10/15/20									275				304,821
5.13%, 7/02/22									35				37,009
													2,082,403
Textiles, Apparel & Luxury Goods — 0.1%
PVH Corp., 4.50%, 12/15/22									490				483,262
Thrifts & Mortgage Finance — 0.3%
Radian Group, Inc., 5.38%, 6/15/15									1,400				1,400,000
Tobacco — 1.1%
Altria Group, Inc.:
9.95%, 11/10/38									800				1,330,455
10.20%, 2/06/39									1,388				2,352,645
Reynolds American, Inc., 4.75%, 11/01/42									1,050				1,027,370
													4,710,470
Wireless Telecommunication Services — 2.2%
America Movil SAB de CV, 2.38%, 9/08/16									795				823,162
Crown Castle International Corp., 5.25%, 1/15/23 (a)									465				476,625
Crown Castle Towers LLC, 6.11%, 1/15/40 (a)									1,560				1,894,428
Digicel Group Ltd., 8.25%, 9/30/20 (a)									460				490,590
Digicel Ltd. (a):
8.25%, 9/01/17									150				158,250
6.00%, 4/15/21 (c)									445				443,887
MetroPCS Wireless, Inc., 6.63%, 11/15/20									660				690,525
Rogers Communications, Inc., 7.50%, 8/15/38									1,150				1,590,971
SBA Tower Trust, 5.10%, 4/15/42 (a)									360				403,894
Sprint Capital Corp., 6.88%, 11/15/28									570				575,700
Sprint Nextel Corp. (a):
9.00%, 11/15/18									530				657,200
7.00%, 3/01/20									770				900,900
													9,106,132
Total Corporate Bonds — 82.8%													340,519,616
Foreign Agency Obligations — 0.1%
Italy Government International Bond, 5.38%, 6/15/33									455				462,708
Non-Agency Mortgage-Backed Securities
Collateralized Mortgage Obligations — 2.4%
Banc of America Funding Corp., Series 2007-2, Class 1A2, 6.00%, 3/25/37									953				860,374
Countrywide Alternative Loan Trust:
Series 2005-64CB, Class 1A15, 5.50%, 12/25/35									1,344				1,186,368
Series 2006-OA21, Class A1, 0.39%, 3/20/47 (b)									757				514,744
Series 2007-HY4, Class 4A1, 5.05%, 6/25/47 (b)									684				553,527
Countrywide Home Loan Mortgage Pass-Through Trust:
Series 2006-OA5, Class 2A1, 0.40%, 4/25/46 (b)									306				206,062
Series 2007-10, Class A22, 6.00%, 7/25/37									528				471,869
Credit Suisse Mortgage Capital Certificates, Series 2011-2R, Class 2A1, 2.63%, 7/27/36 (a)(b)									1,204				1,185,366
GMAC Mortgage Corp. Loan Trust, Series 2005-AR3, Class 5A1, 5.20%, 6/19/35 (b)									911				924,132
GSR Mortgage Loan Trust:
Series 2006-4F, Class 1A1, 5.00%, 5/25/36									484				463,503
Series 2007-4F, Class 3A1, 6.00%, 7/25/37									645				608,839

Non-Agency Mortgage-Backed Securities								Par (000)				Value
Collateralized Mortgage Obligations (concluded)
Homebanc Mortgage Trust, Series 2006-2, Class A1, 0.38%, 12/25/36 (b)					USD				557			$	451,768
IndyMac IMJA Mortgage Loan Trust, Series 2007-A1, Class A4, 6.00%, 8/25/37									771				658,967
JPMorgan Mortgage Trust, Series 2006-S3, Class 1A12, 6.50%, 8/25/36									232				212,285
Merrill Lynch Mortgage Investors, Inc., Series 2006-A3, Class 3A1, 2.97%, 5/25/36 (b)									619				493,468
Monastery BV, Series 2004-I, Class A2, 0.52%, 3/17/37 (b)					EUR				957				1,070,896
Wells Fargo Mortgage-Backed Securities Trust, Series 2007-10, Class 1A21, 6.00%, 7/25/37					USD				43				42,417
													9,904,585
Commercial Mortgage-Backed Securities — 12.3%
Banc of America Merrill Lynch Commercial Mortgage, Inc., Class A4:
Series 2007-1, 5.45%, 1/15/49									500				570,795
Series 2007-2, 5.63%, 4/10/49 (b)									750				868,175
Bear Stearns Commercial Mortgage Securities, Series 2005-PWR9, Class A4A, 4.87%, 9/11/42									800				867,762
Citigroup Commercial Mortgage Trust, Series 2008-C7, Class A4, 6.06%, 12/10/49 (b)									1,370				1,626,675
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2006-CD3, Class AM, 5.65%, 10/15/48									1,093				1,228,286
Commercial Mortgage Pass-Through Certificates:
Series 2006-C7, Class AM, 5.77%, 6/10/46 (b)									1,750				1,924,666
Series 2013-LC6, Class B, 3.74%, 1/10/46									695				715,320
Series 2013-LC6, Class D, 4.29%, 1/10/46 (a)(b)									835				762,006
Credit Suisse Mortgage Capital Certificates:
Series 2006-C3, Class AM, 5.80%, 6/15/38 (b)									1,000				1,098,945
Series 2006-C5, Class AM, 5.34%, 12/15/39									1,750				1,925,779
Series 2010-RR2, Class 2A, 5.76%, 9/15/39 (a)(b)									1,010				1,159,595
CS First Boston Mortgage Securities Corp., Series 2005-C3, Class AJ, 4.77%, 7/15/37									705				730,171
DBRR Trust, Series 2011-C32, Class A3A, 5.74%, 6/17/49 (a)(b)									365				417,394
Greenwich Capital Commercial Funding Corp.:
Series 2006-GG7, Class A4, 5.86%, 7/10/38 (b)									1,165				1,318,213
Series 2007-GG9, Class A4, 5.44%, 3/10/39									2,190				2,495,188
GS Mortgage Securities Corp. II:
Series 2007-GG10, Class A4, 5.79%, 8/10/45 (b)(e)									435				497,085
Series 2013-GC10, Class B, 3.68%, 2/10/46 (a)									1,250				1,285,841
JPMorgan Chase Commercial Mortgage Securities Corp.:
Series 2004-CB8, Class A1A, 4.16%, 1/12/39 (a)									2,248				2,298,647
Series 2004-LN2, Class A2, 5.12%, 7/15/41									820				859,954
Series 2006-CB14, Class AM, 5.45%, 12/12/44 (b)									330				356,979
Series 2006-CB16, Class AJ, 5.62%, 5/12/45									730				694,324
LB-UBS Commercial Mortgage Trust (b):
Series 2004-C8, Class C, 4.93%, 12/15/39									1,385				1,456,181
Series 2007-C6, Class A4, 5.86%, 7/15/40									5,201				6,024,199
Series 2007-C7, Class A3, 5.87%, 9/15/45									1,460				1,685,532
Morgan Stanley Capital I Trust (b):
Series 2007-HQ11, Class A4, 5.45%, 2/12/44									4,000				4,577,876
Series 2007-XLC1, Class A2, 0.56%, 7/17/17									124				119,282
Morgan Stanley Reremic Trust, Series 2011, Class A, 2.50%, 3/23/51 (a)									600				605,727
RCMC LLC, Series 2012-CRE1, Class A, 5.62%, 11/15/44 (a)									989				990,519

See Notes to Financial Statements.

26

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

Schedule of Investments (continued)	BlackRock Core Bond Trust (BHK) (Percentages shown are based on Net Assets)

Non-Agency Mortgage-Backed Securities								Par (000)				Value
Commercial Mortgage-Backed Securities (concluded)
Titan Europe Plc, Series 2007-1X, Class A, 0.76%, 1/20/17 (b)					GBP				1,607			$	2,048,313
Wachovia Bank Commercial Mortgage Trust:
Series 2006-C28, Class A2, 5.50%, 10/15/48					USD				4,203				4,247,949
Series 2007-C33, Class A4, 5.92%, 2/15/51 (b)									2,185				2,521,872
WF-RBS Commercial Mortgage Trust:
Series 2012-C8, Class B, 4.31%, 8/15/45									695				753,349
Series 2012-C8, Class C, 4.88%, 8/15/45 (b)									895				978,836
Series 2013-C11, Class D, 4.19%, 3/15/45 (a)(b)									800				764,750
													50,476,185
Interest Only Commercial Mortgage-Backed Securities — 1.3%
Morgan Stanley Bank of America Merrill Lynch Trust, Series 2012-C5, Class XA, 1.93%, 8/15/45 (a)(b)									15,852				1,780,987
Morgan Stanley Capital I Trust, Series 2012-C4, Class XA, 2.69%, 3/15/45 (a)(b)									9,551				1,395,889
WF-RBS Commercial Mortgage Trust, Class XA (a)(b):
Series 2012-C8, 2.25%, 8/15/45									6,065				824,576
Series 2012-C9, 2.28%, 11/15/45									10,842				1,552,528
													5,553,980
Total Non-Agency Mortgage-Backed Securities — 16.0%													65,934,750
Preferred Securities
Capital Trusts
Capital Markets — 0.0%
State Street Capital Trust IV, 1.31%, 6/01/67 (b)									70				56,175
Commercial Banks — 0.1%
Fifth Third Capital Trust IV, 6.50%, 4/15/67 (b)									505				505,631
Diversified Financial Services — 1.0%
JPMorgan Chase & Co., Series 1, 7.90% (b)(e)(j)									3,500				4,036,718
Electric Utilities — 0.5%
Electricite de France SA, 5.25% (a)(b)(j)									2,100				2,067,450
Insurance — 2.3%
The Allstate Corp., 6.50%, 5/15/67 (b)									1,950				2,106,000
American International Group, Inc., 8.18%, 5/15/68 (b)									195				257,644
Lincoln National Corp., 6.05%, 4/20/67 (b)									675				681,750
MetLife Capital Trust IV, 7.88%, 12/15/67 (a)									640				790,400
MetLife, Inc., 6.40%, 12/15/66									3,500				3,783,790
Swiss Re Capital I LP, 6.85% (a)(b)(j)									1,060				1,120,950
XL Group Plc, Series E, 6.50% (b)(j)									815				794,625
													9,535,159
Total Capital Trusts — 3.9%													16,201,133
Preferred Stocks									Shares
Commercial Banks — 1.0%
US Bancorp, Series G, 6.00% (b)									150,000				4,057,500
Trust Preferreds
Commercial Banks — 0.1%
Citigroup Capital XIII, 7.88%, 10/30/40 (b)									14,773				414,914
Total Preferred Securities — 5.0%													20,673,547

Taxable Municipal Bonds								Par (000)				Value
City of Detroit Michigan, GO, Capital Improvement, Limited Tax, Series A-2, 8.00%, 4/01/14					USD				1,525			$	1,454,347
District of Columbia, Refunding RB, Howard University, Series B, 7.63%, 10/01/35									1,000				1,233,940
East Bay Municipal Utility District, RB, Build America Bonds, 5.87%, 6/01/40									950				1,245,697
Indianapolis Local Public Improvement Bond Bank, RB, Build America Bonds, 6.12%, 1/15/40									1,275				1,665,456
Metropolitan Transportation Authority, RB, Build America Bonds, 7.34%, 11/15/39									625				920,669
Municipal Electric Authority of Georgia Plant Vogtle Units 3 & 4, Refunding RB, Build America Bonds, 7.06%, 4/01/57									1,000				1,144,870
New York City Municipal Water Finance Authority, Refunding RB, Second General Resolution:
Series EE, 5.38%, 6/15/43									385				449,618
Series EE, 5.50%, 6/15/43									465				547,500
Series GG, Build America Bonds, 5.72%, 6/15/42									700				908,551
New York State Dormitory Authority, RB, Build America Bonds:
5.63%, 3/15/39									550				668,624
5.60%, 3/15/40									950				1,188,821
Port Authority of New York & New Jersey, RB, Consolidated, 159th Series, 6.04%, 12/01/29									385				494,494
State of California, GO, Build America Bonds:
7.63%, 3/01/40									860				1,252,968
Various Purpose, 7.55%, 4/01/39									140				203,202
State of Illinois, GO, Pension Funding, 5.10%, 6/01/33									1,000				991,140
University of California, RB, Build America Bonds, 5.95%, 5/15/45									445				543,803
Total Taxable Municipal Bonds — 3.6%													14,913,700
US Government Sponsored Agency Securities
Agency Obligations — 3.3%
Fannie Mae:
1.94%, 10/09/19 (e)(k)									7,055				6,212,577
5.63%, 7/15/37 (l)									775				1,085,216
Federal Home Loan Bank (e):
5.25%, 12/09/22									675				870,463
5.37%, 9/09/24									1,075				1,390,643
Resolution Funding Corp. (k):
1.13%, 7/15/18									525				492,272
1.20%, 10/15/18									525				492,826
Tennessee Valley Authority, 5.25%, 9/15/39 (e)									2,355				3,025,914
													13,569,911
Collateralized Mortgage Obligations — 0.2%
Fannie Mae Mortgage-Backed Securities, Series 2005-5, Class PK, 5.00%, 12/25/34									477				511,260
Freddie Mac Mortgage-Backed Securities, Series 2825, Class VP, 5.50%, 6/15/15									455				470,401
													981,661
Commercial Mortgage-Backed Securities — 0.7%
Freddie Mac Mortgage-Backed Securities (b):
Series 2012-K706, Class C, 4.02%, 11/25/44 (a)									165				167,604
Series 2013-K24, Class B, 3.50%, 11/25/45 (a)									1,750				1,742,442
Series K013, Class A2, 3.97%, 1/25/21									940				1,063,116
													2,973,162

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

27

Schedule of Investments (continued)	BlackRock Core Bond Trust (BHK) (Percentages shown are based on Net Assets)

US Government Sponsored Agency Securities								Par (000)				Value
Interest Only Collateralized Mortgage Obligations — 2.7%
Fannie Mae Mortgage-Backed Securities:
Series 2010-126, Class UI, 5.50%, 10/25/40					USD				5,342			$	785,430
Series 2012-47, Class NI, 4.50%, 4/25/42									5,749				885,314
Series 2012-96, Class DI, 4.00%, 2/25/27									8,614				964,773
Series 2012-M9, Class X1, 4.08%, 12/25/17 (b)									13,284				2,149,675
Freddie Mac Mortgage-Backed Securities:
Series 2611, Class QI, 5.50%, 9/15/32									1,324				148,903
Series K021, Class X1, 1.51%, 6/25/22 (b)									7,081				788,308
Series K707, Class X1, 1.56%, 12/25/18 (b)									2,503				195,151
Series K710, Class X1, 1.78%, 5/25/19 (b)									8,637				814,000
Ginnie Mae Mortgage-Backed Securities (b):
Series 2009-78, Class SD, 6.00%, 9/20/32									6,824				1,274,811
Series 2011-52, Class NS, 6.47%, 4/16/41									18,743				3,117,804
													11,124,169
Mortgage-Backed Securities — 11.4%
Fannie Mae Mortgage-Backed Securities:
3.00%, 3/15/43–4/15/43 (m)									24,700				25,549,906
3.50%, 3/01/42									1,218				1,290,183
4.00%, 12/01/41									3,962				4,228,886
4.50%, 7/01/41									5,361				5,793,808
5.00%, 8/01/34									3,799				4,145,365
5.50%, 6/01/38									2,543				2,787,312
6.00%, 12/01/38									2,187				2,402,471
Freddie Mac Mortgage-Backed Securities, 6.00%, 11/01/13–12/01/18									451				486,020
Ginnie Mae Mortgage-Backed Securities, 5.50%, 8/15/33									65				72,810
													46,756,761
Total US Government Sponsored Agency Securities — 18.3%													75,405,664
US Treasury Obligations
US Treasury Bonds (e):
8.13%, 8/15/21									1,550				2,368,836
6.25%, 8/15/23									5,085				7,196,068
3.50%, 2/15/39									330				360,834
4.25%, 5/15/39									6,045				7,468,410
4.38%, 5/15/40									6,375				8,035,490
4.75%, 2/15/41									1,630				2,176,559
4.38%, 5/15/41									800				1,009,000
3.13%, 11/15/41									9,930				10,040,163
3.13%, 2/15/42									6,268				6,330,680
3.00%, 5/15/42									2,730				2,685,637
US Treasury Notes:
2.25%, 7/31/18									495				531,274
2.00%, 2/15/22 (e)									1,826				1,871,223
1.75%, 5/15/22									156				155,854
Total US Treasury Obligations — 12.2%													50,230,028

Warrants (n)								Shares				Value
Software — 0.0%
Bankruptcy Management Solutions, Inc. (Expires 9/28/17)									90				—
Total Long-Term Investments
(Cost — $563,831,522) — 146.4%												$	602,249,942
Short-Term Securities
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.10% (o)(p)									2,677,125				2,677,125
Total Short-Term Securities
(Cost — $2,677,125) — 0.7%													2,677,125
Options Purchased
(Cost — $1,734,751) — 0.3%													1,321,160
Total Investments Before TBA Sale Commitments and Options Written
(Cost — $568,243,398) — 147.4%													606,248,227
TBA Sale Commitments (m)									Par (000)
Fannie Mae Mortgage-Backed Securities, 3.00%, 3/15/43					USD				8,400				(8,696,625	)
Total TBA Sale Commitments (Proceeds — $8,690,719) — (2.1)%													(8,696,625	)
Options Written
(Premiums Received — $3,446,258) — (0.7)%													(2,733,943	)
Total Investments, Net of TBA Sale Commitments and Options Written — 144.6%													594,817,659
Liabilities in Excess of Other Assets — (44.6)%													(183,617,467	)
Net Assets — 100.0%												$	411,200,192

Notes to Schedule of Investments

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

Counterparty				Value				Unrealized Depreciation
Deutsche Bank Securities, Inc.				$	487,800				—
JPMorgan Chase & Co.				$	493,750				—
JPMorgan Chase & Co.				$	486,500				—
Citigroup Global Markets				$	443,887			$	(1,113	)
Bank of New York Mellon				$	477,500				—
Goldman Sachs & Co.				$	490,510				—

See Notes to Financial Statements.

28

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

Schedule of Investments (continued)	BlackRock Core Bond Trust (BHK)

(d)				Non-income producing security.
(e)				All or a portion of security has been pledged as collateral in connection with open reverse repurchase agreements.
(f)				Convertible security.
(g)				Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown is as of report date.
(h)				Issuer filed for bankruptcy and/or is in default of principal and/or interest payments.
(i)				Represents a payment-in-kind security which may pay interest/dividends in additional par/shares.
(j)				Security is perpetual in nature and has no stated maturity date.
(k)				Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(l)				All or a portion of security has been pledged as collateral in connection with open financial futures contracts.
(m)				Represents or includes a TBA transaction. Unsettled TBA transactions as of February 28, 2013 were as follows:

Counterparty				Value				Unrealized Appreciation (Depreciation)
Goldman Sachs Group, Inc.				$	16,875,594			$	53,484
Deutsche Bank AG				$	(22,313	)		$	(984	)

(n)				Warrants entitle the Trust 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 of the warrants, if any.
(o)				Investments in issuers considered to be an affiliate of the Trust during the six months ended February 28, 2013, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliate				Shares Held at August 31, 2012				Net Activity				Shares Held at February 28, 2013				Income				Realized Gain
BlackRock Liquidity Funds, TempFund, Institutional Class					534,025				2,143,100				2,677,125			$	1,715			$	72

(p)				Represents the current yield as of report date.
•				For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Trust 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 February 28, 2013 were as follows:

Counterparty				Interest Rate				Trade Date				Maturity Date				Face Value				Face Value Including Accrued Interest
BNP Paribas Securities Corp.				0.18%				5/09/12				Open				$	1,039,000			$	1,040,538
BNP Paribas Securities Corp.				0.19%				5/09/12				Open					367,950				368,525
BNP Paribas Securities Corp.				0.17%				7/18/12				Open					7,051,500				7,059,025
Barclays Capital, Inc.				0.35%				8/09/12				Open					4,342,543				4,351,156
Barclays Capital, Inc.				0.35%				8/21/12				Open					5,635,800				5,640,049
BNP Paribas Securities Corp.				0.11%				8/21/12				Open					2,791,425				2,793,063
Credit Suisse Securities (USA) LLC				0.25%				9/06/12				Open					1,903,605				1,905,932
Barclays Capital, Inc.				0.35%				9/18/12				Open					3,346,988				3,352,324
Deutsche Bank Securities				(0.63)%				10/24/12				Open					345,482				344,715
Bank of America Merrill Lynch				0.21%				12/10/12				Open					15,392,700				15,399,973
Bank of America Merrill Lynch				0.24%				12/10/12				Open					2,309,750				2,310,997
Credit Suisse Securities (USA) LLC				0.37%				12/17/12				Open					19,400,364				19,415,117
BNP Paribas Securities Corp.				0.35%				1/11/13				Open					4,741,000				4,743,259
Credit Suisse Securities (USA) LLC				0.35%				1/14/13				Open					2,166,425				2,167,394
UBS Securities LLC				(0.50)%				1/15/13				Open					496,600				496,290
UBS Securities LLC				(0.25)%				1/15/13				Open					484,487				484,336
UBS Securities LLC				0.28%				1/15/13				Open					3,529,338				3,530,573
UBS Securities LLC				0.32%				1/15/13				Open					16,979,175				16,985,966
UBS Securities LLC				0.33%				1/15/13				Open					2,483,125				2,484,150
UBS Securities LLC				0.34%				1/15/13				Open					20,680,084				20,688,874
UBS Securities LLC				0.35%				1/15/13				Open					941,250				941,662
BNP Paribas Securities Corp.				0.35%				1/22/13				Open					2,126,000				2,126,785
Credit Suisse Securities (USA) LLC				0.35%				2/01/13				Open					3,673,140				3,674,140
Deutsche Bank Securities, Inc.				(0.75)%				2/06/13				Open					257,040				256,917
Credit Suisse Securities (USA) LLC				0.20%				2/07/13				Open					2,418,000				2,418,148
Credit Suisse Securities (USA) LLC				0.22%				2/07/13				Open					2,949,638				2,949,854
Deutsche Bank Securities, Inc.				0.17%				2/07/13				Open					2,194,387				2,194,589
Deutsche Bank Securities, Inc.				0.23%				2/07/13				Open					6,155,488				6,156,089
Bank of America Merrill Lynch				0.20%				2/07/13				Open					8,032,500				8,033,236
UBS Securities LLC				0.34%				2/07/13				Open					1,737,375				1,737,736
BNP Paribas Securities Corp.				0.32%				2/08/13				Open					2,473,000				2,473,461

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

29

Schedule of Investments (continued)	BlackRock Core Bond Trust (BHK)

Reverse repurchase agreements outstanding as of February 28, 2013 were as follows (concluded):

Counterparty				Interest Rate				Trade Date				Maturity Date				Face Value				Face Value Including Accrued Interest
HSBC Holdings Plc				0.27%				2/11/13				3/12/13				$	20,276,909			$	20,279,647
BNP Paribas Securities Corp.				0.20%				2/14/13				Open					9,942,413				9,943,034
BNP Paribas Securities Corp.				0.33%				2/14/13				Open					1,020,000				1,020,140
Barclays Capital, Inc.				(0.50)%				2/28/13				Open					371,377				371,372
BNP Paribas Securities Corp.				0.34%				2/28/13				Open					3,378,000				3,378,032
Total																$	183,433,858			$	183,517,098

•

Financial futures contracts as of February 28, 2013 were as follows:

Contracts Purchased (Sold)				Issue		Exchange		Expiration		Notional Value				Unrealized Appreciation (Depreciation)
50				5-Year US Treasury Note		Chicago Board of Trade		June 2013		USD		6,199,219		$	11,842
399				30-Year US Treasury Bond		Chicago Board of Trade		June 2013		USD		57,368,719			21,143
40				Ultra Long US Treasury Bond		Chicago Board of Trade		June 2013		USD		6,320,000			(35,585	)
300				90-Day Euro-Dollar		Chicago Mercantile		March 2015		USD		74,538,750			28,703
349				90-Day Euro-Dollar		Chicago Mercantile		March 2016		USD		86,320,787			25,076
(15)				90-Day Euro-Dollar		Chicago Mercantile		March 2013		USD		3,738,938			(6,038	)
(55)				2-Year US Treasury Note		Chicago Board of Trade		June 2013		USD		12,125,781			(6,426	)
(608)				10-Year US Treasury Note		Chicago Board of Trade		June 2013		USD		79,980,500			(282,000	)
(12)				90-Day Euro-Dollar		Chicago Mercantile		June 2013		USD		2,990,700			(3,780	)
(12)				90-Day Euro-Dollar		Chicago Mercantile		September 2013		USD		2,990,100			(7,059	)
(16)				90-Day Euro-Dollar		Chicago Mercantile		December 2013		USD		3,985,800			(13,342	)
(12)				90-Day Euro-Dollar		Chicago Mercantile		March 2014		USD		2,988,600			(9,354	)
(9)				90-Day Euro-Dollar		Chicago Mercantile		June 2014		USD		2,240,550			(5,348	)
(9)				90-Day Euro-Dollar		Chicago Mercantile		September 2014		USD		2,239,425			(8,900	)
(9)				90-Day Euro-Dollar		Chicago Mercantile		December 2014		USD		2,237,850			(9,848	)
(40)				90-Day Euro-Dollar		Chicago Mercantile		June 2015		USD		9,930,000			(51,783	)
(281)				90-Day Euro-Dollar		Chicago Mercantile		September 2015		USD		69,688,000			(29,294	)
(40)				90-Day Euro-Dollar		Chicago Mercantile		December 2015		USD		9,907,500			(63,610	)
(349)				90-Day Euro-Dollar		Chicago Mercantile		September 2016		USD		86,037,225			(2,617	)
Total														$	(448,220	)

•

Foreign currency exchange contracts as of February 28, 2013 were as follows:

Currency Purchased									Currency Sold							Counterparty				Settlement Date					Unrealized Appreciation (Depreciation)
GBP					421,000			USD					662,122			Royal Bank of Scotland Group Plc				4/17/13				$	(23,595	)
USD					803,177			EUR					610,000			BNP Paribas SA				4/17/13					6,541
USD					1,465,115			GBP					960,000			BNP Paribas SA				4/17/13					9,091
USD					425,257			GBP					268,237			Citigroup, Inc.				4/17/13					18,424
USD					159,501			GBP					99,323			Credit Suisse Group AG				4/17/13					8,858
USD					642,575			GBP					400,147			Credit Suisse Group AG				4/17/13					35,675
USD					111,188			GBP					69,600			Credit Suisse Group AG				4/17/13					5,626
USD					5,898,999			GBP					3,654,000			Deutsche Bank AG				4/17/13					357,008
USD					473,431			GBP					302,366			Deutsche Bank AG				4/17/13					14,836
USD					2,071,135			GBP					1,353,000			Deutsche Bank AG				4/17/13					19,051
USD					7,400,705			EUR					5,554,000			Citigroup, Inc.				4/23/13					147,073
Total																								$	598,588

See Notes to Financial Statements.

30

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

Schedule of Investments (continued)	BlackRock Core Bond Trust (BHK)

•

Over-the-counter interest rate swaptions purchased as of February 28, 2013 were as follows:

Description

Counterparty

Put/ Call

Exercise Rate

Pay/Receive Exercise Rate

Floating Rate Index

Expiration Date

Notional Amount (000)

Market Value

7-Year Interest Rate Swap

Citigroup, Inc.

Call

1.20%

Receive

3-month LIBOR

7/08/13

USD

11,700

$

16,112

7-Year Interest Rate Swap

Deutsche Bank AG

Call

1.30%

Receive

3-month LIBOR

8/21/13

USD

9,900

32,683

7-Year Interest Rate Swap

JPMorgan Chase & Co.

Call

1.39%

Receive

3-month LIBOR

10/06/14

USD

21,700

152,587

30-Year Interest Rate Swap

JPMorgan Chase & Co.

Put

3.75%

Pay

3-month LIBOR

6/03/13

USD

2,400

2,976

7-Year Interest Rate Swap

Citigroup, Inc.

Put

1.70%

Pay

3-month LIBOR

7/08/13

USD

16,700

104,861

7-Year Interest Rate Swap

Deutsche Bank AG

Put

1.80%

Pay

3-month LIBOR

8/21/13

USD

13,200

94,814

10-Year Interest Rate Swap

Deutsche Bank AG

Put

3.15%

Pay

3-month LIBOR

1/25/16

USD

2,500

112,322

10-Year Interest Rate Swap

Deutsche Bank AG

Put

3.75%

Pay

3-month LIBOR

2/16/16

USD

9,300

273,095

10-Year Interest Rate Swap

Deutsche Bank AG

Put

3.50%

Pay

3-month LIBOR

2/22/16

USD

10,000

357,303

10-Year Interest Rate Swap

Deutsche Bank AG

Put

4.50%

Pay

3-month LIBOR

3/16/17

USD

6,300

174,407

Total

$

1,321,160

•

Over-the-counter interest rate swaptions written as of February 28, 2013 were as follows:

Description

Counterparty

Put/ Call

Exercise Rate

Pay/Receive Exercise Rate

Floating Rate Index

Expiration Date

Notional Amount (000)

Market Value

7-Year Interest Rate Swap

Morgan Stanley

Call

1.45%

Pay

3-month LIBOR

4/05/13

USD

10,000

$

(45,852

)

7-Year Interest Rate Swap

Citigroup, Inc.

Call

1.45%

Pay

3-month LIBOR

7/08/13

USD

11,700

(74,185

)

7-Year Interest Rate Swap

Deutsche Bank AG

Call

1.55%

Pay

3-month LIBOR

8/21/13

USD

9,900

(98,182

)

5-Year Interest Rate Swap

JPMorgan Chase & Co.

Call

2.06%

Pay

3-month LIBOR

4/09/14

USD

16,100

(601,312

)

5-Year Interest Rate Swap

BNP Paribas SA

Call

1.15%

Pay

3-month LIBOR

6/09/14

USD

30,300

(207,371

)

5-Year Interest Rate Swap

JPMorgan Chase & Co.

Call

1.00%

Pay

3-month LIBOR

7/11/14

USD

15,500

(65,950

)

5-Year Interest Rate Swap

JPMorgan Chase & Co.

Call

1.48%

Pay

3-month LIBOR

7/31/14

USD

10,000

(140,910

)

5-Year Interest Rate Swap

Deutsche Bank AG

Call

1.00%

Pay

3-month LIBOR

8/01/14

USD

9,700

(41,107

)

5-Year Interest Rate Swap

Goldman Sachs Group, Inc.

Call

1.25%

Pay

3-month LIBOR

2/04/15

USD

6,200

(47,147

)

7-Year Interest Rate Swap

Citigroup, Inc.

Put

1.95%

Receive

3-month LIBOR

7/08/13

USD

16,700

(48,788

)

7-Year Interest Rate Swap

Deutsche Bank AG

Put

2.05%

Receive

3-month LIBOR

8/21/13

USD

13,200

(50,796

)

5-Year Interest Rate Swap

JPMorgan Chase & Co.

Put

2.06%

Receive

3-month LIBOR

4/09/14

USD

16,100

(85,287

)

5-Year Interest Rate Swap

BNP Paribas SA

Put

2.15%

Receive

3-month LIBOR

6/09/14

USD

30,300

(193,544

)

5-Year Interest Rate Swap

JPMorgan Chase & Co.

Put

2.00%

Receive

3-month LIBOR

7/11/14

USD

15,500

(136,543

)

5-Year Interest Rate Swap

JPMorgan Chase & Co.

Put

1.48%

Receive

3-month LIBOR

7/31/14

USD

10,000

(176,284

)

5-Year Interest Rate Swap

Deutsche Bank AG

Put

2.00%

Receive

3-month LIBOR

8/01/14

USD

9,700

(92,634

)

7-Year Interest Rate Swap

JPMorgan Chase & Co.

Put

2.39%

Receive

3-month LIBOR

10/06/14

USD

21,700

(402,164

)

5-Year Interest Rate Swap

Goldman Sachs Group, Inc.

Put

2.25%

Receive

3-month LIBOR

2/04/15

USD

6,200

(82,489

)

10-Year Interest Rate Swap

Deutsche Bank AG

Put

6.00%

Receive

3-month LIBOR

3/16/17

USD

12,600

(143,398

)

Total

$

(2,733,943

)

•

Credit default swaps — buy protection outstanding as of February 28, 2013 were as follows:

Issuer				Pay Fixed Rate		Counterparty		Expiration Date		Notional Amount (000)				Unrealized Depreciation
Radian Group, Inc.				5.00%		Citigroup, Inc.		6/20/15		USD		1,400		$	(83,197	)
The New York Times Co.				1.00%		Barclays Plc		12/20/16		USD		1,800			(40,920	)
Australia & New Zealand Banking Group Ltd.				1.00%		Deutsche Bank AG		9/20/17		USD		1			(17	)
Westpac Banking Corp.				1.00%		Deutsche Bank AG		9/20/17		USD		1			(17	)
Total														$	(124,151	)

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

31

Schedule of Investments (continued)	BlackRock Core Bond Trust (BHK)

•

Credit default swaps — sold protection outstanding as of February 28, 2013 were as follows:

Issuer/Index

Receive Fixed Rate

Counterparty

Expiration Date

Credit  Rating1

Notional Amount (000)2

Unrealized Appreciation

MetLife, Inc.

1.00%

Credit Suisse Group AG

9/20/16

A-

USD

535

$

36,926

MetLife, Inc.

1.00%

Deutsche Bank AG

9/20/16

A-

USD

730

46,262

MetLife, Inc.

1.00%

Goldman Sachs Group, Inc.

9/20/16

A-

USD

500

30,886

MetLife, Inc.

1.00%

Morgan Stanley

9/20/16

A-

USD

900

55,995

MetLife, Inc.

1.00%

Morgan Stanley

9/20/16

A-

USD

275

15,387

MetLife, Inc.

1.00%

Citigroup, Inc.

12/20/16

A-

USD

298

16,973

MetLife, Inc.

1.00%

Citigroup, Inc.

12/20/16

A-

USD

285

17,585

Markit CMBX North America AAA Index Series 3

0.08%

Morgan Stanley

12/13/49

AA

USD

525

39,810

Markit CMBX North America AAA Index Series 4

0.35%

Morgan Stanley

2/17/51

A

USD

525

42,507

Total

$

302,331

1

Using S&P’s rating of the issuer or the underlying securities of the index, as applicable.

2

The maximum potential amount the Trust may pay should a negative credit event take place as defined under the terms of the agreement.

•

Interest rate swaps outstanding as of February 28, 2013 were as follows:

Fixed Rate				Floating Rate		Counterparty		Expiration Date		Notional Amount (000)				Unrealized Appreciation (Depreciation)
0.39%3				3-month LIBOR		JPMorgan Chase & Co.		11/29/14		USD		50,000		$	(18,750	)
0.40%3				3-month LIBOR		Goldman Sachs Group, Inc.		12/27/14		USD		30,000			(12,195	)
0.66%4				6-month EURIBOR		Deutsche Bank AG		2/05/15		EUR		5,000			22,054
1.18%3				3-month LIBOR		JPMorgan Chase & Co.		10/05/19		USD		15,800			147,065
1.48%4				3-month LIBOR		Deutsche Bank AG		2/25/20		USD		4,600			20,806
1.41%4				3-month LIBOR		Bank of America Corp.		2/28/20		USD		5,800			(2,290	)
1.41%4				3-month LIBOR		JPMorgan Chase & Co.		3/01/20		USD		2,400			(1,056	)
1.41%4				3-month LIBOR		JPMorgan Chase & Co.		3/04/20		USD		18,000			(11,750	)
1.89%3				3-month LIBOR		JPMorgan Chase & Co.		10/08/21		USD		11,900			146,395
1.89%4				6-month EURIBOR		Citigroup, Inc.		6/27/22		EUR		1,800			46,955
1.90%3				3-month LIBOR		Royal Bank of Scotland Group Plc		1/28/23		USD		400			2,298
1.72%4				6-month EURIBOR		Deutsche Bank AG		1/28/23		EUR		1,200			(2,872	)
1.97%4				3-month LIBOR		Deutsche Bank AG		1/29/23		USD		1,000			736
2.08%4				3-month LIBOR		Deutsche Bank AG		2/19/23		USD		2,800			28,509
2.06%4				3-month LIBOR		Deutsche Bank AG		2/25/23		USD		3,400			27,406
2.58%3				6-month EURIBOR		Deutsche Bank AG		11/11/41		EUR		350			(17,925	)
2.68%3				6-month EURIBOR		Deutsche Bank AG		11/18/41		EUR		745			(58,915	)
3.07%3				3-month LIBOR		Barclays Plc		3/21/42		USD		4,000			(106,193	)
2.15%3				6-month EURIBOR		Citigroup, Inc.		6/27/42		EUR		770			48,886
2.49%3				3-month LIBOR		Deutsche Bank AG		7/05/42		USD		2,900			272,061
2.52%3				3-month LIBOR		Citigroup, Inc.		9/04/42		USD		1,600			139,724
2.49%3				6-month EURIBOR		Citigroup, Inc.		1/15/43		EUR		500			(13,085	)
3.05%3				3-month LIBOR		Deutsche Bank AG		2/07/43		USD		4,800			(97,771	)
2.95%3				3-month LIBOR		JPMorgan Chase & Co.		3/04/43		USD		2,600			1,070
Total														$	561,163

3

Trust pays the fixed rate and receives the floating rate.

4

Trust pays the floating rate and receives the fixed rate.

•

Fair Value Measurements—Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:

•				Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the Trust has the ability to access
•				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 Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

See Notes to Financial Statements.

32

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

Schedule of Investments (continued)	BlackRock Core Bond Trust (BHK)

				Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust’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 Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy as of February 28, 2013:

				Level 1				Level 2				Level 3				Total
Assets:
Investments:
Long-Term Investments:
Asset-Backed Securities					—			$	26,235,503			$	7,728,225			$	33,963,728
Common Stocks					—				—				146,201				146,201
Corporate Bonds					—				334,194,826				6,324,790				340,519,616
Foreign Agency Obligations					—				462,708				—				462,708
Non-Agency Mortgage-Backed Securities					—				65,050,718				884,032				65,934,750
Preferred Securities				$	4,472,414				16,201,133				—				20,673,547
Taxable Municipal Bonds					—				14,913,700				—				14,913,700
US Government Sponsored Agency Securities					—				75,405,664				—				75,405,664
US Treasury Obligations					—				50,230,028				—				50,230,028
Short-Term Securities					2,677,125				—				—				2,677,125
Options Purchased:
Interest Rate Contracts					—				1,321,160				—				1,321,160
Liabilities:
Investments:
TBA Sale Commitments					—				(8,696,625	)			—				(8,696,625	)
Total				$	7,149,539			$	575,318,815			$	15,083,248			$	597,551,602
				Level 1				Level 2				Level 3				Total
Derivative Financial Instruments1
Assets:
Credit contracts					—			$	302,331				—			$	302,331
Foreign currency exchange contracts					—				622,183				—				622,183
Interest rate contracts				$	86,764				903,965				—				990,729
Liabilities:
Credit contracts					—				(124,151	)			—				(124,151	)
Foreign currency exchange contracts					—				(23,595	)			—				(23,595	)
Interest rate contracts					(534,984	)			(3,076,745	)			—				(3,611,729	)
Total				$	(448,220	)		$	(1,396,012	)			—			$	(1,844,232	)

1

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

Certain of the Trust’s assets and liabilities are held at carrying amount or face value, which approximates fair value for financial statement purposes. As of February 28, 2013, such assets and liabilities are categorized within the disclosure hierarchy as follows:

				Level 1				Level 2				Level 3				Total
Assets:
Cash				$	60,313				—				—			$	60,313
Foreign currency at value					159,393				—				—				159,393
Cash pledged as collateral for financial futures contracts					882,000				—				—				882,000
Cash pledged as collateral for reverse repurchase agreements					1,615,619				—				—				1,615,619
Cash pledged as collateral for swaps					3,210,000				—				—				3,210,000
Liabilities:
Reverse repurchase agreements					—			$	(183,433,858	)			—				(183,433,858	)
Cash received as collateral for swaps					—				(1,100,000	)			—				(1,100,000	)
Total				$	5,927,325			$	(184,533,858	)			—			$	(178,606,533	)

There were no transfers between Level 1 and Level 2 during the six months ended February 28, 2013.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

33

Schedule of Investments (concluded)	BlackRock Core Bond Trust (BHK)

A reconciliation of Level 3 investments is presented when the Trust had a significant amount of Level 3 investments at the beginning and/or end of the period in relation to net assets. The following table is a reconciliation of Level 3 investments for which significant unobservable inputs were used in determining fair value:

				Asset-Backed Securities				Common Stocks				Corporate Bonds				Non-Agency Mortgage-Backed Securities				Total
Assets:
Opening Balance, as of August 31, 2012				$	1,505,315			$	1			$	5,224,808			$	511,457			$	7,241,581
Transfers into Level 31					—				—				4,712,948				—				4,712,948
Transfers out of Level 32					(365,529	)			—				—				—				(365,529	)
Accrued discounts/premiums					(212,482	)			—				(11,673	)			2,052				(222,103	)
Net realized gain (loss)					6				—				1,445				27,721				29,172
Net change in unrealized appreciation/depreciation3					254,004				146,200				(304,989	)			7,530				102,745
Purchases					6,603,254				—				—				755,446				7,358,700
Sales					(56,343	)			—				(3,297,749	)			(420,174	)			(3,774,266	)
Closing Balance, as of February 28, 2013				$	7,728,225			$	146,201			$	6,324,790			$	884,032			$	15,083,248

1

As of August 31, 2012, the Trust used observable inputs in determining the value of certain investments. As of February 28, 2013, the Trust used significant unobservable inputs in determining the value of the same investments. As a result, investments with a beginning of period value of $4,712,948 transferred from Level 2 to Level 3 in the disclosure hierarchy.

2

As of August 31, 2012, the Trust used significant unobservable inputs in determining the value of certain investments. As of February 28, 2013, the Trust used observable inputs in determining the value of the same investments. As a result, investments with a beginning of period value of $365,529 transferred from Level 3 to Level 2 in the disclosure hierarchy.

3

Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations. The change in unrealized appreciation/depreciation on investments still held as of February 28, 2013 was $365,574.

Certain of the Trust’s investments that are categorized as Level 3 were valued utilizing transaction prices or third party pricing information without adjustment. Such valuations are based on unobservable inputs. A significant change in third party information inputs could result in a significantly lower or higher value of such Level 3 investments.

See Notes to Financial Statements.

34

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

Consolidated Schedule of Investments February 28, 2013 (Unaudited)	BlackRock Corporate High Yield Fund V, Inc. (HYV) (Percentages shown are based on Net Assets)

Common Stocks								Shares				Value
Auto Components — 0.5%
Dana Holding Corp.									91,707			$	1,534,258
Delphi Automotive Plc									13,100				543,998
													2,078,256
Biotechnology — 0.0%
Ironwood Pharmaceuticals, Inc. (a)									10,590				158,109
Capital Markets — 1.7%
American Capital Ltd. (a)									412,530				5,767,169
E*Trade Financial Corp. (a)									109,400				1,171,674
Uranium Participation Corp. (a)									53,140				275,169
													7,214,012
Chemicals — 0.5%
ADA-ES, Inc. (a)									2,690				71,473
CF Industries Holdings, Inc.									5,300				1,064,399
Huntsman Corp.									51,100				880,453
													2,016,325
Commercial Banks — 0.6%
CIT Group, Inc. (a)									57,665				2,413,857
Communications Equipment — 0.3%
Loral Space & Communications Ltd.									19,132				1,114,248
Diversified Financial Services — 0.7%
Bank of America Corp.									35,400				397,542
Kcad Holdings I Ltd. (a)									422,854,200				2,854,266
													3,251,808
Diversified Telecommunication Services — 0.2%
Broadview Networks Holdings, Inc. (a)									49,725				332,660
Level 3 Communications, Inc. (a)									33,620				671,728
													1,004,388
Electrical Equipment — 0.0%
Medis Technologies Ltd. (a)									109,685				1
Energy Equipment & Services — 0.9%
Laricina Energy Ltd. (a)									70,588				2,395,714
Osum Oil Sands Corp. (a)									120,000				1,585,454
													3,981,168
Hotels, Restaurants & Leisure — 0.2%
Caesars Entertainment Corp. (a)									59,623				745,288
Travelport LLC (a)									113,632				1,136
													746,424
Insurance — 1.0%
American International Group, Inc. (a)									117,041				4,448,728
Media — 1.3%
Belo Corp., Class A									32,921				284,438
Charter Communications, Inc., Class A (a)									63,429				5,479,631
Clear Channel Outdoor Holdings, Inc., Class A (a)									14,202				107,935
													5,872,004
Metals & Mining — 0.1%
African Minerals Ltd. (a)									65,551				280,079
Peninsula Energy Ltd. (a)									11,250,902				375,911
													655,990
Oil, Gas & Consumable Fuels — 0.0%
African Petroleum Corp. Ltd. (a)									294,600				57,175
Paper & Forest Products — 1.0%
Ainsworth Lumber Co. Ltd. (a)									728,451				2,309,852
Ainsworth Lumber Co. Ltd. (a)(b)									208,741				659,875
NewPage Corp. (a)									12,520				1,064,200
Western Forest Products, Inc. (a)									74,889				95,483
Western Forest Products, Inc. (a)									74,936				90,831
													4,220,241
Semiconductors & Semiconductor Equipment — 0.3%
Freescale Semiconductor Ltd. (a)									6,695				103,304
NXP Semiconductors NV (a)									14,053				454,193
Spansion, Inc., Class A (a)									58,263				685,173

Common Stocks								Par (000)				Value
Semiconductors & Semiconductor Equipment (concluded)
SunPower Corp. (a)									200			$	2,348
													1,245,018
Software — 0.1%
Bankruptcy Management Solutions, Inc. (a)									737				7
HMH Holdings/EduMedia (a)									30,127				552,312
													552,319
Total Common Stocks — 9.4%													41,030,071
Corporate Bonds								Par (000)
Aerospace & Defense — 1.0%
Bombardier, Inc., 4.25%, 1/15/16 (b)					USD				900				933,750
Huntington Ingalls Industries, Inc.:
6.88%, 3/15/18									240				261,450
7.13%, 3/15/21									375				408,750
Kratos Defense & Security Solutions, Inc., 10.00%, 6/01/17									1,244				1,373,065
Meccanica Holdings USA, Inc., 6.25%, 7/15/19 (b)									690				709,030
Spirit Aerosystems, Inc., 7.50%, 10/01/17									498				527,880
													4,213,925
Air Freight & Logistics — 0.4%
National Air Cargo Group, Inc.:
Series 1, 12.38%, 9/02/15									822				826,775
Series 2, 12.38%, 8/16/15									833				837,101
													1,663,876
Airlines — 1.7%
American Airlines Pass-Through Trust, Series 2011-2, Class A, 8.63%, 4/15/23									999				1,039,334
Continental Airlines Pass-Through Trust:
Series 1997-4, Class B, 6.90%, 7/02/18									34				33,989
Series 2010-1, Class B, 6.00%, 7/12/20									571				588,248
Series 2012-3, Class C, 6.13%, 4/29/18									1,370				1,366,575
Delta Air Lines Pass-Through Trust:
Series 2002-1, Class G-1, 6.72%, 7/02/24									867				959,763
Series 2009-1, Class B, 9.75%, 6/17/18									257				285,173
Series 2010-1, Class B, 6.38%, 7/02/17									800				834,000
US Airways Pass-Through Trust:
Series 2011-1, Class C, 10.88%, 10/22/14									837				883,006
Series 2012-1, Class C, 9.13%, 10/01/15									622				665,540
Series 2012-2, Class B, 6.75%, 12/03/22									600				627,000
													7,282,628
Auto Components — 2.0%
Continental Rubber of America Corp., 4.50%, 9/15/19 (b)									300				306,000
Dana Holding Corp., 6.75%, 2/15/21									660				718,575
Delphi Corp.:
6.13%, 5/15/21									115				125,350
5.00%, 2/15/23									225				234,281
Icahn Enterprises LP, 8.00%, 1/15/18									4,455				4,772,419
IDQ Holdings, Inc., 11.50%, 4/01/17 (b)									585				640,575
Jaguar Land Rover Plc, 8.25%, 3/15/20					GBP				712				1,211,053
Titan International, Inc., 7.88%, 10/01/17					USD				685				734,662
													8,742,915
Beverages — 0.1%
Crown European Holdings SA:
7.13%, 8/15/18					EUR				91				128,607
7.13%, 8/15/18 (b)									230				325,049
Refresco Group BV, 7.38%, 5/15/18									107				146,022
													599,678
Building Products — 0.9%
Building Materials Corp. of America (b):
7.00%, 2/15/20					USD				810				876,825
6.75%, 5/01/21									1,170				1,256,288

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

35

Consolidated Schedule of Investments (continued)	BlackRock Corporate High Yield Fund V, Inc. (HYV) (Percentages shown are based on Net Assets)

Corporate Bonds								Par (000)				Value
Building Products (concluded)
Grohe Holding GmbH, 8.75%, 12/15/17 (c)					EUR				100			$	136,756
Momentive Performance Materials, Inc., 8.88%, 10/15/20					USD				515				528,519
USG Corp., 9.75%, 1/15/18									1,045				1,229,181
													4,027,569
Capital Markets — 0.4%
E*Trade Financial Corp., 0.01%, 8/31/19 (b)(d)(e)									356				372,242
KKR Group Finance Co. LLC, 6.38%, 9/29/20 (b)									670				787,904
Nuveen Investments, Inc., 9.13%, 10/15/17 (b)									699				702,495
													1,862,641
Chemicals — 3.4%
Axiall Corp., 4.88%, 5/15/23 (b)									260				263,900
Basell Finance Co. BV, 8.10%, 3/15/27 (b)									610				805,200
Celanese US Holdings LLC, 5.88%, 6/15/21									1,905				2,081,212
Ciech Group Financing AB, 9.50%, 11/30/19					EUR				137				194,958
Eagle Spinco, Inc., 4.63%, 2/15/21 (b)					USD				552				560,970
Huntsman International LLC, 8.63%, 3/15/21									250				282,500
INEOS Finance Plc, 7.50%, 5/01/20 (b)									570				614,175
Kinove German Bondco GmbH, 10.00%, 6/15/18					EUR				505				731,681
Kraton Polymers LLC, 6.75%, 3/01/19					USD				185				192,400
LyondellBasell Industries NV, 5.75%, 4/15/24 (f)									3,870				4,498,875
Nexeo Solutions LLC, 8.38%, 3/01/18									135				131,962
Nufarm Australia Ltd., 6.38%, 10/15/19 (b)									335				355,100
PolyOne Corp., 7.38%, 9/15/20									320				354,400
Rockwood Specialties Group, Inc., 4.63%, 10/15/20									1,095				1,133,325
Tronox Finance LLC, 6.38%, 8/15/20 (b)									1,997				1,984,519
US Coatings Acquisition, Inc./Flash Dutch 2 BV:
5.75%, 2/01/21					EUR				100				133,166
7.38%, 5/01/21 (b)					USD				525				543,375
													14,861,718
Commercial Banks — 0.9%
CIT Group, Inc.:
5.25%, 3/15/18									830				892,250
6.63%, 4/01/18 (b)									455				516,425
5.50%, 2/15/19 (b)									790				859,125
5.00%, 8/15/22									710				759,700
6.00%, 4/01/36									810				793,500
													3,821,000
Commercial Services & Supplies — 2.2%
ADS Waste Holdings, Inc., 8.25%, 10/01/20 (b)									412				442,900
ARAMARK Holdings Corp. (b):
8.63%, 5/01/16 (g)									650				663,006
5.75%, 3/15/20 (h)									962				981,240
Aviation Capital Group Corp., 6.75%, 4/06/21 (b)									800				865,874
AWAS Aviation Capital Ltd., 7.00%, 10/17/16 (b)									223				234,158
Brickman Group Holdings, Inc., 9.13%, 11/01/18 (b)									38				40,850
Casella Waste Systems, Inc., 7.75%, 2/15/19									79				75,643
Catalent Pharma Solutions, Inc., 7.88%, 10/15/18 (b)									918				929,475
Clean Harbors, Inc., 5.25%, 8/01/20									780				803,400
Covanta Holding Corp., 6.38%, 10/01/22									940				1,019,275
EC Finance Plc, 9.75%, 8/01/17					EUR				621				881,687
HDTFS, Inc. (b):
5.88%, 10/15/20					USD				95				98,800
6.25%, 10/15/22									395				424,625
Mead Products LLC/ACCO Brands Corp., 6.75%, 4/30/20 (b)									112				118,580
Mobile Mini, Inc., 7.88%, 12/01/20									545				606,313
RSC Equipment Rental, Inc., 8.25%, 2/01/21									686				777,752
Verisure Holding AB:
8.75%, 9/01/18					EUR				174				245,339
8.75%, 12/01/18									134				178,443
West Corp., 8.63%, 10/01/18					USD				205				218,325
													9,605,685

Corporate Bonds								Par (000)				Value
Communications Equipment — 1.1%
Alcatel-Lucent USA, Inc.:
6.50%, 1/15/28					USD				85			$	65,450
6.45%, 3/15/29									279				216,922
Avaya, Inc., 9.75%, 11/01/15									893				878,489
Zayo Group LLC/Zayo Capital, Inc.:
8.13%, 1/01/20									1,400				1,564,500
10.13%, 7/01/20									1,880				2,204,300
													4,929,661
Computers & Peripherals — 0.2%
EMC Corp., Series B, 1.75%, 12/01/13 (d)									298				430,983
SanDisk Corp., 1.50%, 8/15/17 (d)									425				523,281
													954,264
Construction & Engineering — 0.3%
Boart Longyear Management Property Ltd., 7.00%, 4/01/21 (b)									275				285,312
H&E Equipment Services, Inc., 7.00%, 9/01/22 (b)									654				716,130
Weekley Homes LLC, 6.00%, 2/01/23 (b)									230				234,600
													1,236,042
Construction Materials — 2.1%
Buzzi Unicem SpA, 6.25%, 9/28/18					EUR				201				282,280
HD Supply, Inc. (b):
8.13%, 4/15/19					USD				1,870				2,106,087
11.00%, 4/15/20									1,945				2,343,725
7.50%, 7/15/20									2,855				2,858,569
11.50%, 7/15/20									775				893,188
HeidelbergCement AG, 7.50%, 4/03/20					EUR				81				127,428
Xefin Lux SCA, 8.00%, 6/01/18 (b)									376				527,090
													9,138,367
Consumer Finance — 0.2%
Credit Acceptance Corp., 9.13%, 2/01/17					USD				660				719,400
Springleaf Finance, 6.90%, 12/15/17									155				151,900
													871,300
Containers & Packaging — 2.1%
Ardagh Packaging Finance Plc:
7.38%, 10/15/17					EUR				200				283,304
7.38%, 10/15/17									100				141,652
7.38%, 10/15/17 (b)									600				849,913
7.38%, 10/15/17 (b)					USD				200				217,750
9.13%, 10/15/20 (b)									590				643,100
9.13%, 10/15/20 (b)									459				502,605
7.00%, 11/15/20 (b)									912				914,280
4.88%, 11/15/22 (b)									218				214,730
5.00%, 11/15/22					EUR				320				414,643
Berry Plastics Corp.:
4.18%, 9/15/14 (c)					USD				445				445,000
8.25%, 11/15/15									175				182,385
9.75%, 1/15/21									270				311,850
Beverage Packaging Holdings Luxembourg II SA, 8.00%, 12/15/16					EUR				867				1,134,968
Crown Americas LLC/Crown Americas Capital Corp. III, 6.25%, 2/01/21					USD				16				17,440
Crown Americas LLC/Crown Americas Capital Corp. IV, 4.50%, 1/15/23 (b)									180				175,950
GCL Holdings SCA, 9.38%, 4/15/18 (b)					EUR				394				558,212
Graphic Packaging International, Inc., 7.88%, 10/01/18					USD				550				605,000
Pactiv LLC, 7.95%, 12/15/25									605				567,187
Tekni-Plex, Inc., 9.75%, 6/01/19 (b)									815				900,575
													9,080,544
Distributors — 0.5%
VWR Funding, Inc., 7.25%, 9/15/17 (b)									2,030				2,136,575
Diversified Consumer Services — 2.1%
313 Group, Inc. (b):
6.38%, 12/01/19									1,456				1,419,600
8.75%, 12/01/20									882				870,975

See Notes to Financial Statements.

36

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

Consolidated Schedule of Investments (continued)	BlackRock Corporate High Yield Fund V, Inc. (HYV) (Percentages shown are based on Net Assets)

Corporate Bonds								Par (000)				Value
Diversified Consumer Services (concluded)
Laureate Education, Inc., 9.25%, 9/01/19 (b)					USD				1,845			$	2,006,437
Service Corp. International, 7.00%, 6/15/17									4,095				4,632,469
ServiceMaster Co., 8.00%, 2/15/20									280				296,800
													9,226,281
Diversified Financial Services — 5.2%
Air Lease Corp., 4.50%, 1/15/16									880				899,800
Aircastle, Ltd.:
6.75%, 4/15/17									550				606,375
6.25%, 12/01/19									481				518,278
Ally Financial, Inc.:
7.50%, 12/31/13									460				483,000
8.00%, 11/01/31									4,534				5,695,837
CNG Holdings, Inc., 9.38%, 5/15/20 (b)									610				601,613
Co-Operative Group Ltd. (i):
5.63%, 7/08/20					GBP				250				397,467
6.25%, 7/08/26									100				159,745
DPL, Inc.:
6.50%, 10/15/16					USD				450				472,500
7.25%, 10/15/21									1,275				1,367,438
Gala Group Finance Plc, 8.88%, 9/01/18					GBP				706				1,156,720
General Motors Financial Co., Inc., 6.75%, 6/01/18					USD				460				529,000
Lehman Brothers Holdings, Inc. (a)(j):
1.00%, 5/17/13									915				237,900
5.38%, 10/17/13					EUR				200				71,152
4.75%, 1/16/14									1,130				402,011
1.00%, 2/05/14									2,350				820,701
1.00%, 9/22/18					USD				255				66,300
Leucadia National Corp., 8.13%, 9/15/15									1,148				1,297,240
Reynolds Group Issuer, Inc.:
7.13%, 4/15/19									365				391,919
9.00%, 4/15/19									700				742,000
7.88%, 8/15/19									485				535,925
9.88%, 8/15/19									910				996,450
5.75%, 10/15/20									3,080				3,180,100
WMG Acquisition Corp.:
11.50%, 10/01/18									618				717,653
6.00%, 1/15/21 (b)									449				464,715
													22,811,839
Diversified Telecommunication Services — 2.4%
Broadview Networks Holdings, Inc., 10.50%, 11/15/17									765				747,787
Cequel Communications Escrow I LLC/Cequel Communications Escrow Capital Corp., 6.38%, 9/15/20 (b)									705				728,794
Consolidated Communications Finance Co., 10.88%, 6/01/20 (b)									515				583,237
Level 3 Communications, Inc., 8.88%, 6/01/19 (b)									475				513,000
Level 3 Financing, Inc.:
8.13%, 7/01/19									1,736				1,892,240
7.00%, 6/01/20 (b)									639				670,950
8.63%, 7/15/20									1,260				1,398,600
Lynx I Corp., 5.38%, 4/15/21 (b)									420				430,500
OTE Plc, 7.25%, 2/12/15					EUR				256				335,892
Telenet Finance V Luxembourg SCA:
6.25%, 8/15/22									431				576,759
6.75%, 8/15/24									520				709,436
tw telecom holdings, Inc., 5.38%, 10/01/22					USD				440				458,700
Windstream Corp.:
8.13%, 8/01/13									510				523,362
7.88%, 11/01/17									630				713,475
7.50%, 4/01/23									120				125,400
6.38%, 8/01/23 (b)									120				117,600
													10,525,732

Corporate Bonds								Par (000)				Value
Electric Utilities — 0.7%
Mirant Mid Atlantic Pass-Through Trust, Series B, 9.13%, 6/30/17					USD				433			$	480,449
The Tokyo Electric Power Co., Inc., 4.50%, 3/24/14					EUR				1,800				2,400,044
													2,880,493
Electrical Equipment — 0.6%
Belden, Inc., 5.50%, 9/01/22 (b)					USD				550				563,750
General Cable Corp., 5.75%, 10/01/22 (b)									890				912,250
Techem GmbH:
6.13%, 10/01/19					EUR				633				878,064
6.13%, 10/01/19 (b)									105				145,650
													2,499,714
Electronic Equipment, Instruments & Components — 0.1%
Jabil Circuit, Inc., 8.25%, 3/15/18					USD				350				420,875
NXP BV/NXP Funding LLC, 9.75%, 8/01/18 (b)									100				114,250
													535,125
Energy Equipment & Services — 3.7%
Atwood Oceanics, Inc., 6.50%, 2/01/20									205				222,937
Calfrac Holdings LP, 7.50%, 12/01/20 (b)									497				499,485
Compagnie Générale de Géophysique, Veritas:
7.75%, 5/15/17									365				376,406
6.50%, 6/01/21									1,855				1,929,200
FTS International Services LLC/FTS International Bonds, Inc., 8.13%, 11/15/18 (b)									1,602				1,658,070
Genesis Energy LP, 5.75%, 2/15/21 (b)									250				258,750
Gulfmark Offshore, Inc., 6.38%, 3/15/22									230				237,475
Hornbeck Offshore Services, Inc., 5.88%, 4/01/20									465				488,250
MEG Energy Corp. (b):
6.50%, 3/15/21									2,025				2,136,375
6.38%, 1/30/23									535				553,725
Oil States International, Inc.:
6.50%, 6/01/19									470				502,900
5.13%, 1/15/23 (b)									200				200,000
Peabody Energy Corp.:
6.00%, 11/15/18									340				361,250
6.25%, 11/15/21									1,720				1,788,800
7.88%, 11/01/26									555				593,850
4.75%, 12/15/41 (d)									1,055				896,091
Precision Drilling Corp.:
6.63%, 11/15/20									115				122,188
6.50%, 12/15/21									440				466,400
Rain CII Carbon LLC/CII Carbon Corp., 8.25%, 1/15/21 (b)									349				366,450
Seadrill Ltd., 5.63%, 9/15/17 (b)									2,009				2,034,112
Tervita Corp., 8.00%, 11/15/18 (b)									549				565,470
													16,258,184
Food & Staples Retailing — 0.3%
Bakkavor Finance 2 Plc, 8.25%, 2/15/18					GBP				393				605,144
Rite Aid Corp., 9.25%, 3/15/20					USD				555				621,600
Zobele Holding SpA, 7.88%, 2/01/18					EUR				140				185,518
													1,412,262
Food Products — 0.5%
Darling International, Inc., 8.50%, 12/15/18					USD				170				193,375
Del Monte Corp., 7.63%, 2/15/19									90				93,375
Post Holdings, Inc., 7.38%, 2/15/22									840				907,200
Smithfield Foods, Inc., 6.63%, 8/15/22									702				763,425
													1,957,375
Health Care Equipment & Supplies — 2.3%
Biomet, Inc. (b):
6.50%, 8/01/20									2,623				2,773,822
6.50%, 10/01/20									3,189				3,284,670
DJO Finance LLC:
8.75%, 3/15/18									560				618,100
7.75%, 4/15/18									155				154,225
9.88%, 4/15/18									620				661,850

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

37

Consolidated Schedule of Investments (continued)	BlackRock Corporate High Yield Fund V, Inc. (HYV) (Percentages shown are based on Net Assets)

Corporate Bonds								Par (000)				Value
Health Care Equipment & Supplies (concluded)
Fresenius Medical Care US Finance, Inc., 5.75%, 2/15/21 (b)					USD				420			$	457,800
Fresenius Medical Care US Finance II, Inc., 5.63%, 7/31/19 (b)									308				333,410
Fresenius US Finance II, Inc., 9.00%, 7/15/15 (b)									800				918,000
Kinetic Concepts, Inc./KCI USA, Inc., 12.50%, 11/01/19 (b)									485				475,300
Teleflex, Inc., 6.88%, 6/01/19									435				473,063
													10,150,240
Health Care Providers & Services — 8.2%
Aviv Healthcare Properties LP, 7.75%, 2/15/19									845				906,262
Care UK Health & Social Care Plc, 9.75%, 8/01/17					GBP				130				198,696
CHS/Community Health Systems, Inc.:
5.13%, 8/15/18					USD				1,180				1,240,475
7.13%, 7/15/20									669				720,848
ConvaTec Healthcare E SA, 7.38%, 12/15/17 (b)					EUR				694				960,414
Crown Newco 3 Plc:
7.00%, 2/15/18					GBP				200				313,271
7.00%, 2/15/18 (b)									547				856,796
DaVita HealthCare Partners, Inc., 5.75%, 8/15/22					USD				1,319				1,375,057
HCA Holdings, Inc., 6.25%, 2/15/21									1,619				1,708,045
HCA, Inc.:
8.50%, 4/15/19									200				221,500
6.50%, 2/15/20									3,030				3,393,600
7.88%, 2/15/20									405				449,044
7.25%, 9/15/20									3,560				3,951,600
5.88%, 3/15/22									325				350,188
4.75%, 5/01/23									1,544				1,540,140
Hologic, Inc., 6.25%, 8/01/20 (b)									2,366				2,496,130
IASIS Healthcare LLC, 8.38%, 5/15/19									965				993,950
INC Research LLC, 11.50%, 7/15/19 (b)									516				550,830
inVentiv Health, Inc., 9.00%, 1/15/18 (b)									930				969,525
Omnicare, Inc.:
7.75%, 6/01/20									1,460				1,620,600
3.75%, 4/01/42 (d)									236				246,030
Symbion, Inc., 8.00%, 6/15/16									510				532,950
Tenet Healthcare Corp.:
6.25%, 11/01/18									1,579				1,748,742
8.88%, 7/01/19									4,505				5,090,650
6.75%, 2/01/20									775				829,250
4.50%, 4/01/21 (b)									1,059				1,044,439
Vanguard Health Holding Co. II LLC:
8.00%, 2/01/18									357				380,205
7.75%, 2/01/19 (b)									685				733,806
Voyage Care Bondco Plc, 6.50%, 8/01/18					GBP				170				262,412
													35,685,455
Health Care Technology — 1.0%
IMS Health, Inc. (b):
12.50%, 3/01/18					USD				3,290				3,964,450
6.00%, 11/01/20									212				220,480
													4,184,930
Hotels, Restaurants & Leisure — 3.3%
Caesars Entertainment Operating Co., Inc.:
10.00%, 12/15/18									732				483,120
8.50%, 2/15/20									298				290,550
Caesars Operating Escrow LLC, 9.00%, 2/15/20 (b)									1,484				1,465,450
Carlson Wagonlit BV, 6.88%, 6/15/19 (b)									485				506,825
Cirsa Funding Luxembourg SA, 8.75%, 5/15/18					EUR				680				870,018
Diamond Resorts Corp., 12.00%, 8/15/18					USD				1,770				1,947,000
El Dorado Resorts LLC, 8.63%, 6/15/19 (b)									200				198,750
Enterprise Inns Plc, 6.50%, 12/06/18					GBP				477				710,969
Gategroup Finance Luxembourg SA, 6.75%, 3/01/19					EUR				453				609,156
Little Traverse Bay Bands of Odawa Indians, 9.00%, 8/31/20 (b)					USD				433				415,680
MCE Finance, Ltd., 5.00%, 2/15/21 (b)									998				998,000
MTR Gaming Group, Inc., 11.50%, 8/01/19 (g)									221				229,944
Regal Entertainment Group, 5.75%, 2/01/25									385				377,300

Corporate Bonds								Par (000)				Value
Hotels, Restaurants & Leisure (concluded)
Six Flags Entertainment Corp., 5.25%, 1/15/21 (b)					USD				882			$	864,360
Station Casinos LLC:
3.66%, 6/18/18									991				991,000
7.50%, 3/01/21 (b)(h)									1,730				1,740,813
Travelport LLC (c):
4.91%, 9/01/14									245				222,950
6.31%, 12/01/16 (b)(g)									640				580,407
Tropicana Entertainment LLC, 9.63%, 12/15/14 (a)(j)									475				—
The Unique Pub Finance Co. Plc, Series A3, 6.54%, 3/30/21					GBP				200				302,652
Wynn Las Vegas LLC, 5.38%, 3/15/22					USD				579				608,674
													14,413,618
Household Durables — 2.6%
Algeco Scotsman Global Finance Plc, 9.00%, 10/15/18					EUR				205				278,343
Ashton Woods USA LLC, 6.88%, 2/15/21 (b)					USD				336				337,680
Beazer Homes USA, Inc., 6.63%, 4/15/18									55				58,781
Brookfield Residential Properties, Inc., 6.50%, 12/15/20 (b)									605				641,300
Jarden Corp., 7.50%, 1/15/20					EUR				447				628,808
K. Hovnanian Enterprises, Inc., 7.25%, 10/15/20 (b)					USD				1,400				1,540,000
Libbey Glass, Inc., 6.88%, 5/15/20									905				970,613
PH Holding LLC, 9.75%, 12/31/17									510				499,800
Pulte Group, Inc., 6.38%, 5/15/33									280				284,200
The Ryland Group, Inc., 6.63%, 5/01/20									500				550,000
Spie BondCo 3 SCA, 11.00%, 8/15/19					EUR				339				493,478
Standard Pacific Corp.:
10.75%, 9/15/16					USD				2,050				2,552,250
8.38%, 1/15/21									1,450				1,721,875
United Rentals North America, Inc., 5.75%, 7/15/18									379				407,899
William Lyon Homes, Inc., 8.50%, 11/15/20 (b)									445				478,375
													11,443,402
Household Products — 0.8%
Ontex IV SA:
7.50%, 4/15/18					EUR				100				135,777
7.50%, 4/15/18 (b)									220				298,710
9.00%, 4/15/19									321				429,559
Spectrum Brands Escrow Corp. (b):
6.38%, 11/15/20					USD				568				604,210
6.63%, 11/15/22									370				398,675
Spectrum Brands, Inc.:
9.50%, 6/15/18									1,395				1,581,581
6.75%, 3/15/20 (b)									142				153,005
													3,601,517
Independent Power Producers & Energy Traders — 3.6%
The AES Corp., 7.38%, 7/01/21									405				457,650
Calpine Corp. (b):
7.25%, 10/15/17									238				253,172
7.50%, 2/15/21									135				146,812
7.88%, 1/15/23									590				653,425
Energy Future Intermediate Holding Co. LLC:
6.88%, 8/15/17 (b)									1,115				1,176,325
10.00%, 12/01/20									3,357				3,810,195
10.00%, 12/01/20 (b)									2,090				2,356,475
GenOn REMA LLC:
Series B 9.24%, 7/02/17									357				393,673
Series C, 9.68%, 7/02/26									445				485,050
Laredo Petroleum, Inc.:
9.50%, 2/15/19									730				824,900
7.38%, 5/01/22									550				596,750
NRG Energy, Inc.:
7.63%, 1/15/18									2,243				2,571,039
6.63%, 3/15/23 (b)									965				1,027,725

See Notes to Financial Statements.

38

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

Consolidated Schedule of Investments (continued)	BlackRock Corporate High Yield Fund V, Inc. (HYV) (Percentages shown are based on Net Assets)

Corporate Bonds								Par (000)				Value
Independent Power Producers & Energy Traders (concluded)
QEP Resources, Inc.:
5.38%, 10/01/22					USD				488			$	511,180
5.25%, 5/01/23									380				393,300
													15,657,671
Industrial Conglomerates — 0.2%
Sequa Corp., 7.00%, 12/15/17 (b)									850				856,375
Insurance — 0.6%
Alliant Holdings I, Inc., 7.88%, 12/15/20 (b)									1,661				1,669,305
CNO Financial Group, Inc., 6.38%, 10/01/20 (b)									332				351,920
MPL 2 Acquisition Canco, Inc., 9.88%, 8/15/18 (b)									375				371,250
TMF Group Holding B.V., 9.88%, 12/01/19					EUR				270				356,023
													2,748,498
Internet Software & Services — 0.1%
Cerved Technologies SpA:
6.38%, 1/15/20									100				129,902
8.00%, 1/15/21									100				126,965
Equinix, Inc., 4.88%, 4/01/20					USD				219				219,000
													475,867
IT Services — 3.3%
Ceridian Corp., 8.88%, 7/15/19 (b)									1,855				2,091,512
Epicor Software Corp., 8.63%, 5/01/19									820				883,550
First Data Corp.:
7.38%, 6/15/19 (b)									2,315				2,433,644
8.88%, 8/15/20 (b)									795				878,475
6.75%, 11/01/20 (b)									2,793				2,866,316
8.25%, 1/15/21 (b)									186				190,185
11.25%, 1/15/21 (b)									733				747,660
12.63%, 1/15/21									1,170				1,247,512
SunGard Data Systems, Inc.:
7.38%, 11/15/18									810				869,738
6.63%, 11/01/19 (b)									1,190				1,222,725
WEX, Inc., 4.75%, 2/01/23 (b)									726				702,405
													14,133,722
Machinery — 1.7%
Dematic SA, 7.75%, 12/15/20 (b)									137				140,083
The Manitowoc Co., Inc., 5.88%, 10/15/22									705				722,625
Silver II Borrower/Silver II US Holdings LLC, 7.75%, 12/15/20 (b)									417				433,680
SPX Corp., 6.88%, 9/01/17									260				290,550
Terex Corp., 6.00%, 5/15/21									700				726,250
Trinseo Materials Operating SCA, 8.75%, 2/01/19 (b)									606				603,727
UR Merger Sub Corp.:
7.38%, 5/15/20									655				717,225
7.63%, 4/15/22									2,966				3,284,845
6.13%, 6/15/23									280				294,000
													7,212,985
Media — 10.0%
Affinion Group, Inc., 7.88%, 12/15/18									582				442,320
AMC Networks, Inc.:
7.75%, 7/15/21									330				374,550
4.75%, 12/15/22									529				527,016
Cablevision Systems Corp., 5.88%, 9/15/22									820				795,400
CCO Holdings LLC:
5.25%, 9/30/22									1,155				1,136,231
5.13%, 2/15/23									920				897,000
Cengage Learning Acquisitions, Inc., 11.50%, 4/15/20 (b)									942				744,180
Checkout Holding Corp., 11.47%, 11/15/15 (b)(e)									639				472,061
Cinemark USA, Inc.:
8.63%, 6/15/19									375				415,781
5.13%, 12/15/22 (b)									314				315,570
Clear Channel Communications, Inc., 9.00%, 12/15/19 (b)									1,101				1,023,930

Corporate Bonds								Par (000)				Value
Media (concluded)
Clear Channel Worldwide Holdings, Inc.:
6.50%, 11/15/22 (b)					USD				916			$	957,220
6.50%, 11/15/22 (b)									2,477				2,607,042
Series B, 7.63%, 3/15/20									1,677				1,735,695
DISH DBS Corp.:
5.88%, 7/15/22									1,505				1,587,775
5.00%, 3/15/23 (b)									1,000				992,500
Harron Communications LP, 9.13%, 4/01/20 (b)									470				517,000
Intelsat Jackson Holdings SA:
7.25%, 10/15/20									1,030				1,104,675
6.63%, 12/15/22 (b)									259				260,943
Intelsat Luxembourg SA:
11.25%, 2/04/17									910				966,875
11.50%, 2/04/17									3,306				3,517,130
Interactive Data Corp., 10.25%, 8/01/18									1,990				2,256,162
The Interpublic Group of Cos., Inc., 10.00%, 7/15/17									500				539,375
Kabel Deutschland Vertrieb und Service GmbH & Co. KG, 6.50%, 6/29/18 (b)					EUR				505				705,981
Live Nation Entertainment, Inc., 8.13%, 5/15/18 (b)					USD				1,130				1,226,050
Lynx I Corp., 6.00%, 4/15/21					GBP				1,676				2,612,497
Lynx II Corp., 6.38%, 4/15/23 (b)					USD				285				295,331
The McClatchy Co., 9.00%, 12/15/22 (b)									640				676,800
NAI Entertainment Holdings LLC, 8.25%, 12/15/17 (b)									743				809,870
Nara Cable Funding Ltd.:
8.88%, 12/01/18					EUR				200				274,165
8.88%, 12/01/18 (b)					USD				200				206,500
Nielsen Finance LLC:
11.63%, 2/01/14									91				99,418
7.75%, 10/15/18									1,779				1,970,243
Odeon & UCI Finco Plc, 9.00%, 8/01/18 (b)					GBP				308				485,942
ProQuest LLC, 9.00%, 10/15/18 (b)					USD				270				267,975
Sterling Entertainment Corp., 10.00%, 12/15/19									1,275				1,275,000
Unitymedia GmbH:
9.63%, 12/01/19 (b)					EUR				845				1,220,679
9.50%, 3/15/21									518				770,006
Unitymedia Hessen GmbH & Co. KG:
7.50%, 3/15/19									1,249				1,773,312
5.50%, 1/15/23 (b)					USD				760				767,600
Univision Communications, Inc., 6.75%, 9/15/22 (b)									652				704,160
UPCB Finance II Ltd.:
6.38%, 7/01/20									514				711,316
6.38%, 7/01/20 (b)					EUR				1,218				1,685,569
WaveDivision Escrow LLC/WaveDivision Escrow Corp., 8.13%, 9/01/20 (b)					USD				531				557,550
Ziggo Bond Co. BV, 8.00%, 5/15/18 (b)					EUR				273				384,928
													43,667,323
Metals & Mining — 4.8%
ArcelorMittal:
9.50%, 2/15/15					USD				445				502,294
4.25%, 8/05/15									581				601,534
4.25%, 3/01/16									175				180,250
5.00%, 2/25/17									620				645,110
6.13%, 6/01/18									619				667,466
6.00%, 3/01/21									87				92,331
6.75%, 2/25/22									727				800,505
7.50%, 10/15/39									90				93,300
7.25%, 3/01/41									342				341,145
Eco-Bat Finance Plc, 7.75%, 2/15/17					EUR				585				788,568
FMG Resources August 2006 Property Ltd. (b):
6.38%, 2/01/16					USD				661				689,092
6.00%, 4/01/17									709				739,132
Global Brass and Copper, Inc., 9.50%, 6/01/19 (b)									445				483,938
GoldCorp, Inc., 2.00%, 8/01/14 (d)									1,575				1,649,812
Kaiser Aluminum Corp., 8.25%, 6/01/20									330				368,775

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

39

Consolidated Schedule of Investments (continued)	BlackRock Corporate High Yield Fund V, Inc. (HYV) (Percentages shown are based on Net Assets)

Corporate Bonds								Par (000)				Value
Metals & Mining (concluded)
New Gold, Inc. (b):
7.00%, 4/15/20					USD				225			$	243,000
6.25%, 11/15/22									445				468,363
New World Resources NV:
7.88%, 5/01/18					EUR				324				433,776
7.88%, 1/15/21									360				434,748
Newmont Mining Corp., Series A, 1.25%, 7/15/14 (d)					USD				2,170				2,396,494
Novelis, Inc., 8.75%, 12/15/20									4,560				5,107,200
Peninsula Energy Ltd., 11.00%, 12/14/14									800				800,000
Perstorp Holding AB, 8.75%, 5/15/17 (b)									285				299,250
Schmolz + Bickenbach Luxembourg SA, 9.88%, 5/15/19					EUR				364				425,464
Steel Dynamics, Inc., 6.38%, 8/15/22 (b)					USD				355				379,850
Taseko Mines Ltd., 7.75%, 4/15/19									605				601,975
Vedanta Resources Plc, 8.25%, 6/07/21 (b)									415				472,063
Walter Energy, Inc., 9.88%, 12/15/20 (b)									198				215,325
													20,920,760
Multiline Retail — 0.5%
Dollar General Corp., 4.13%, 7/15/17									1,169				1,236,217
Dufry Finance SCA, 5.50%, 10/15/20 (b)									661				689,093
													1,925,310
Oil, Gas & Consumable Fuels — 9.1%
Access Midstream Partners LP:
6.13%, 7/15/22									405				434,362
4.88%, 5/15/23									555				549,450
Alpha Appalachia Holdings, Inc., 3.25%, 8/01/15 (d)									1,335				1,274,091
Aurora USA Oil & Gas, Inc., 9.88%, 2/15/17 (b)									990				1,064,250
BreitBurn Energy Partners LP, 7.88%, 4/15/22									375				398,437
Carrizo Oil & Gas, Inc., 7.50%, 9/15/20									354				371,700
Chaparral Energy, Inc., 7.63%, 11/15/22									325				352,625
Chesapeake Energy Corp.:
7.25%, 12/15/18									180				203,400
6.63%, 8/15/20									260				284,700
6.88%, 11/15/20									260				286,000
6.13%, 2/15/21									122				129,320
Concho Resources, Inc.:
7.00%, 1/15/21									245				270,725
6.50%, 1/15/22									436				475,240
5.50%, 10/01/22									332				345,695
CONSOL Energy, Inc., 8.25%, 4/01/20									460				507,150
Continental Resources, Inc., 7.13%, 4/01/21									545				618,575
Crosstex Energy LP, 8.88%, 2/15/18									225				242,438
Crown Oil Partners IV LP, 15.00%, 3/07/15									904				950,629
CVR Refining LLC/Coffeyville Finance, Inc., 6.50%, 11/01/22 (b)									565				569,237
Denbury Resources, Inc., 4.63%, 7/15/23									1,132				1,110,775
Energy XXI Gulf Coast, Inc.:
9.25%, 12/15/17									695				785,350
7.75%, 6/15/19									795				852,637
EP Energy LLC/Everest Acquisition Finance, Inc.:
6.88%, 5/01/19									510				555,900
7.75%, 9/01/22									315				340,988
EV Energy Partners LP, 8.00%, 4/15/19									215				225,213
Halcon Resources Corp., 8.88%, 5/15/21 (b)									616				662,200
Hilcorp Energy I LP, 7.63%, 4/15/21 (b)									392				432,180
Holly Energy Partners LP, 6.50%, 3/01/20 (b)									230				246,100
Kodiak Oil & Gas Corp., 8.13%, 12/01/19									510				573,750
Linn Energy LLC:
6.50%, 5/15/19									66				68,310
6.25%, 11/01/19 (b)									1,760				1,795,200
8.63%, 4/15/20									165				182,531
7.75%, 2/01/21									235				253,800
MarkWest Energy Partners LP:
5.50%, 2/15/23									350				367,500
4.50%, 7/15/23									221				216,028

Corporate Bonds								Par (000)				Value
Oil, Gas & Consumable Fuels (concluded)
Newfield Exploration Co., 6.88%, 2/01/20					USD				1,150			$	1,233,375
Northern Oil and Gas, Inc., 8.00%, 6/01/20									460				480,700
Oasis Petroleum, Inc.:
7.25%, 2/01/19									295				318,600
6.50%, 11/01/21									430				464,400
Offshore Group Investments Ltd., 11.50%, 8/01/15									1,023				1,115,070
PBF Holding Co. LLC, 8.25%, 2/15/20 (b)									325				353,438
PDC Energy, Inc., 7.75%, 10/15/22 (b)									310				327,825
PetroBakken Energy Ltd., 8.63%, 2/01/20 (b)									906				924,120
Petroleum Geo-Services ASA, 7.38%, 12/15/18 (b)									850				935,000
Plains Exploration & Production Co., 6.88%, 2/15/23									1,550				1,786,375
Range Resources Corp.:
8.00%, 5/15/19									515				566,500
5.75%, 6/01/21									1,496				1,593,240
5.00%, 8/15/22									593				606,342
Regency Energy Partners LP:
6.88%, 12/01/18									581				627,480
5.50%, 4/15/23									964				1,017,020
Sabine Pass Liquefaction LLC, 5.63%, 2/01/21 (b)									2,388				2,465,610
Sabine Pass Liquified Natural Gas LP:
7.50%, 11/30/16									2,245				2,480,725
6.50%, 11/01/20 (b)									480				506,400
SandRidge Energy, Inc., 7.50%, 2/15/23									762				798,195
SESI LLC:
6.38%, 5/01/19									480				514,800
7.13%, 12/15/21									345				382,087
SM Energy Co.:
6.63%, 2/15/19									195				209,138
6.50%, 11/15/21									390				424,125
6.50%, 1/01/23									575				622,437
Tesoro Logistics LP/Tesoro Logistics Finance Corp., 5.88%, 10/01/20 (b)									229				238,733
Vanguard Natural Resources, 7.88%, 4/01/20									400				420,000
													39,408,221
Paper & Forest Products — 0.7%
Ainsworth Lumber Co. Ltd., 7.50%, 12/15/17 (b)									520				560,300
Boise Paper Holdings LLC:
9.00%, 11/01/17									85				91,906
8.00%, 4/01/20									180				198,450
Clearwater Paper Corp., 7.13%, 11/01/18									865				936,363
Longview Fibre Paper & Packaging, Inc., 8.00%, 6/01/16 (b)									505				530,250
NewPage Corp., 11.38%, 12/31/14 (a)(j)									2,892				—
Sappi Papier Holding GmbH, 8.38%, 6/15/19 (b)									200				224,000
Unifrax I LLC, 7.50%, 2/15/19 (b)									385				390,775
													2,932,044
Pharmaceuticals — 1.5%
Capsugel Finance Co. SCA:
9.88%, 8/01/19					EUR				100				146,874
9.88%, 8/01/19 (b)									300				440,623
Elan Corp. Plc, 6.25%, 10/15/19 (b)					USD				756				866,565
Jaguar Holding Co. II/Jaguar Merger Sub, Inc., 9.50%, 12/01/19 (b)									632				725,220
Mylan, Inc., 6.00%, 11/15/18 (b)									160				176,219
Valeant Pharmaceuticals International (b):
6.50%, 7/15/16									640				672,400
6.88%, 12/01/18									1,128				1,225,290
6.38%, 10/15/20									600				645,750
6.75%, 8/15/21									725				783,906
Warner Chilcott Co. LLC, 7.75%, 9/15/18									905				977,400
													6,660,247
Professional Services — 0.3%
La Financiere Atalian SA, 7.25%, 1/15/20					EUR				324				423,633
Truven Health Analytics, Inc., 10.63%, 6/01/20 (b)					USD				760				851,200
													1,274,833

See Notes to Financial Statements.

40

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

Consolidated Schedule of Investments (continued)	BlackRock Corporate High Yield Fund V, Inc. (HYV) (Percentages shown are based on Net Assets)

Corporate Bonds								Par (000)				Value
Real Estate Investment Trusts (REITs) — 0.7%
Cantor Commercial Real Estate Co. LP, 7.75%, 2/15/18 (b)					USD				417			$	419,085
Felcor Lodging LP:
6.75%, 6/01/19									1,507				1,619,083
5.63%, 3/01/23 (b)									379				381,369
The Rouse Co. LP, 6.75%, 11/09/15									770				800,800
													3,220,337
Real Estate Management & Development — 2.6%
CBRE Services, Inc., 6.63%, 10/15/20									500				540,000
Country Garden Holdings Co. Ltd., 7.50%, 1/10/23 (b)									226				234,475
Crescent Resources LLC/Crescent Ventures, Inc., 10.25%, 8/15/17 (b)									1,270				1,368,425
Forest City Enterprises, Inc., 7.63%, 6/01/15									687				685,282
IVG Immobilien AG, 8.00% (a)(c)(j)(k)					EUR				300				227,166
Mattamy Group Corp., 6.50%, 11/15/20 (b)					USD				550				547,938
Realogy Corp.:
11.50%, 4/15/17									575				613,094
12.00%, 4/15/17									145				154,788
7.88%, 2/15/19 (b)									2,995				3,257,062
7.63%, 1/15/20 (b)									750				845,625
9.00%, 1/15/20 (b)									485				556,537
Shea Homes LP, 8.63%, 5/15/19									2,005				2,225,550
													11,255,942
Road & Rail — 0.5%
The Hertz Corp.:
7.50%, 10/15/18									820				895,850
6.75%, 4/15/19 (b)									430				463,325
7.38%, 1/15/21									645				711,112
Hertz Holdings Netherlands BV, 8.50%, 7/31/15					EUR				71				98,557
													2,168,844
Semiconductors & Semiconductor Equipment — 0.4%
Micron Technology, Inc., Series C, 2.38%, 5/01/32 (b)(d)					USD				391				435,232
NXP BV/NXP Funding LLC, 5.75%, 2/15/21 (b)									500				511,250
Spansion LLC, 7.88%, 11/15/17									850				896,750
													1,843,232
Software — 1.2%
IAC/InterActiveCorp, 4.75%, 12/15/22 (b)									621				607,027
Igloo Holdings Corp., 8.25%, 12/15/17 (b)(g)									436				446,900
Infor US, Inc., 9.38%, 4/01/19									2,270				2,548,075
Interface Security Systems Holdings, Inc., 9.25%, 1/15/18 (b)									219				222,833
Nuance Communications, Inc., 5.38%, 8/15/20 (b)									740				749,250
Sophia LP, 9.75%, 1/15/19 (b)									645				713,531
													5,287,616
Specialty Retail — 3.0%
Asbury Automotive Group, Inc., 8.38%, 11/15/20									540				602,100
Claire’s Stores, Inc., 9.00%, 3/15/19 (b)									1,288				1,429,680
House of Fraser Funding Plc:
8.88%, 8/15/18					GBP				221				355,384
8.88%, 8/15/18 (b)									420				675,391
Limited Brands, Inc.:
8.50%, 6/15/19					USD				1,170				1,433,250
5.63%, 2/15/22									235				248,513
Michaels Stores, Inc., 7.75%, 11/01/18									346				377,572
New Academy Finance Co., 8.00%, 6/15/18 (b)(g)									319				329,368
Party City Holdings, Inc., 8.88%, 8/01/20 (b)									1,500				1,631,250
Penske Automotive Group, Inc., 5.75%, 10/01/22 (b)									1,650				1,726,312
QVC, Inc.:
7.13%, 4/15/17 (b)									340				354,130
7.50%, 10/01/19 (b)									920				1,015,397
7.38%, 10/15/20 (b)									440				487,713
5.13%, 7/02/22									26				27,493

Corporate Bonds								Par (000)				Value
Specialty Retail (concluded)
Sally Holdings LLC:
6.88%, 11/15/19					USD				805			$	897,575
5.75%, 6/01/22									753				795,356
Sonic Automotive, Inc., 9.00%, 3/15/18									550				605,000
													12,991,484
Textiles, Apparel & Luxury Goods — 0.3%
Levi Strauss & Co., 6.88%, 5/01/22									645				700,632
Phillips-Van Heusen Corp., 4.50%, 12/15/22									373				367,871
													1,068,503
Thrifts & Mortgage Finance — 0.0%
Radian Group, Inc., 2.25%, 3/01/19 (d)									105				112,481
Trading Companies & Distributors — 0.7%
Ashtead Capital, Inc., 6.50%, 7/15/22 (b)									735				791,963
Doric Nimrod Air Finance Alpha Ltd., Series 2012-1 (b):
Class A, 5.13%, 11/30/24									1,130				1,214,750
Class B, 6.50%, 5/30/21									855				903,869
													2,910,582
Transportation Infrastructure — 0.2%
Aguila 3 SA, 7.88%, 1/31/18 (b)									632				669,920
Wireless Telecommunication Services — 4.3%
Cricket Communications, Inc., 7.75%, 10/15/20									865				882,300
Crown Castle International Corp., 5.25%, 1/15/23 (b)									1,658				1,699,450
Digicel Group Ltd. (b):
8.25%, 9/01/17									1,650				1,740,750
8.25%, 9/30/20									1,430				1,525,095
6.00%, 4/15/21 (h)									850				847,875
MetroPCS Wireless, Inc., 6.63%, 11/15/20									1,016				1,062,990
NII Capital Corp., 7.63%, 4/01/21									517				361,900
Phones4u Finance Plc:
9.50%, 4/01/18					GBP				200				313,271
9.50%, 4/01/18 (b)									545				853,663
Sprint Capital Corp., 6.88%, 11/15/28					USD				2,273				2,295,730
Sprint Nextel Corp. (b):
9.00%, 11/15/18									3,574				4,431,760
7.00%, 3/01/20									2,205				2,579,850
													18,594,634
Total Corporate Bonds — 103.6%													450,611,986
Floating Rate Loan Interests (c)
Airlines — 1.1%
Delta Air Lines, Inc., Term Loan B, 4.50%, 4/20/17									647				652,926
Northwest Airlines, Inc., Term Loan:
2.32%, 3/10/17									1,061				987,791
2.32%, 3/10/17									1,922				1,789,382
1.70%, 9/10/18									872				778,522
1.70%, 9/10/18									865				772,272
													4,980,893
Auto Components — 1.3%
Federal-Mogul Corp.:
Term Loan B, 2.14%, 12/29/14									2,563				2,384,748
Term Loan C, 2.14%, 12/28/15									1,230				1,143,487
Schaeffler AG, Term Loan B2, 6.00%, 1/27/17									2,135				2,134,466
													5,662,701
Building Products — 0.1%
Wilsonart International Holdings LLC, Term Loan B, 5.50%, 10/31/19									625				631,562
Capital Markets — 0.6%
American Capital Holdings, Inc., Term Loan, 5.50%, 8/22/16									1,382				1,395,820

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

41

Consolidated Schedule of Investments (continued)	BlackRock Corporate High Yield Fund V, Inc. (HYV) (Percentages shown are based on Net Assets)

Floating Rate Loan Interests (c)								Par (000)				Value
Capital Markets (concluded)
Nuveen Investments, Inc.:
Incremental Term Loan, 7.25%, 5/13/17					USD				725			$	728,625
Second Lien Term Loan, 8.25%, 2/28/19									615				627,300
													2,751,745
Chemicals — 0.4%
INEOS US Finance LLC, 6 Year Term Loan, 6.50%, 5/04/18									558				569,695
US Coatings Acquisition, Inc.:
Term Loan, 4.75%, 2/03/20									1,040				1,052,626
Term Loan B, 5.25%, 2/03/20					EUR				115				151,667
													1,773,988
Commercial Services & Supplies — 0.4%
AWAS Finance Luxembourg Sarl, Term Loan B, 5.25%, 6/10/16					USD				625				629,881
Delos Aircraft, Inc., Term Loan 2, 4.75%, 4/12/16									875				880,101
													1,509,982
Communications Equipment — 1.4%
Alcatel-Lucent:
Term Loan C, 7.25%, 1/31/19									2,080				2,102,880
Term Loan D, 7.75%, 1/31/19					EUR				810				1,060,287
Avaya, Inc., Term Loan B5, 8.00%, 3/30/18					USD				186				186,517
Zayo Group LLC, Refinancing Term Loan B, 5.25%, 7/12/19									2,691				2,699,297
													6,048,981
Construction & Engineering — 0.7%
Safway Services LLC, Mezzanine Loan, 9.88%, 12/16/17									3,000				3,000,000
Construction Materials — 0.4%
HD Supply, Inc., Senior Debt B, 4.50%, 10/12/17									1,642				1,646,117
Consumer Finance — 1.4%
Springleaf Financial Funding Co., Term Loan, 5.50%, 5/10/17									5,880				5,900,815
Diversified Consumer Services — 0.2%
Laureate Education, Inc., Extended Term Loan, 5.25%, 6/18/18									213				213,964
ServiceMaster Co., New Term Loan, 2.70%, 4/01/17									680				677,693
													891,657
Diversified Telecommunication Services — 0.8%
Level 3 Financing, Inc.:
2016 Term Loan B, 4.75%, 2/01/16									499				504,361
2019 Term Loan B, 5.25%, 8/01/19									405				409,135
Term Loan, 4.75%, 8/01/19									2,500				2,520,000
													3,433,496
Energy Equipment & Services — 1.6%
Dynegy Midwest Generation LLC, Coal Co. Term Loan, 9.25%, 8/04/16									2,546				2,627,341
Dynegy Power LLC, Gas Co. Term Loan, 9.25%, 8/04/16									4,108				4,272,285
Tervita Corp., Incremental Term Loan, 6.50%, 5/01/18									215				216,110
													7,115,736
Food & Staples Retailing — 0.0%
Rite Aid Corp., Second Lien Term Loan, 5.75%, 7/07/20									160				163,645
Food Products — 0.1%
AdvancePierre Foods, Inc., Term Loan, 5.75%, 7/10/17									320				323,901
Health Care Equipment & Supplies — 0.5%
Bausch & Lomb, Inc., Term Loan B, 5.25%, 5/17/19									567				570,996
Capital Safety North America Holdings, Inc., Term Loan, 4.50%, 1/21/19									1,112				1,111,600

Floating Rate Loan Interests (c)								Par (000)				Value
Health Care Equipment & Supplies (concluded)
LHP Hospital Group, Inc., Term Loan, 9.00%, 7/03/18					USD				413			$	422,216
													2,104,812
Health Care Providers & Services — 0.4%
Genesis HealthCare Corp., Term Loan B, 10.00%—10.75%, 9/25/17									278				272,487
Harden Healthcare LLC:
Add on Term Loan A, 7.75%, 3/02/15									549				537,061
Term Loan A, 8.50%, 3/02/15									478				473,526
inVentiv Health, Inc., Combined Term Loan, 7.50%, 8/04/16									576				566,604
													1,849,678
Hotels, Restaurants & Leisure — 3.2%
Caesars Entertainment Operating Co., Inc.:
Term Loan B1, 3.20%, 1/28/15									766				763,261
Term Loan B3, 3.20%—3.31%, 1/28/15									34				34,289
Harrah’s Property Co., Mezzanine Term Loan, 3.69%, 2/13/14									8,647				7,954,872
MGM Resorts International, Term Loan B, 4.25%, 12/20/19									1,840				1,861,160
Station Casinos, Inc., Term Loan B:
5.50%, 9/27/19									1,531				1,540,089
5.00%, 2/13/20									1,485				1,497,375
Travelport Holdings Ltd.:
Extended Tranche A Term Loan, 6.40%, 12/01/16									294				103,988
Extended Tranche B Term Loan, 13.80%, 12/01/16									985				91,946
													13,846,980
Industrial Conglomerates — 0.2%
Sequa Corp., Term Loan B, 5.25%, 6/19/17									860				869,911
Insurance — 0.1%
Alliant Holdings I, Inc., Term Loan B, 5.00%, 12/20/19									500				503,750
IT Services — 0.3%
Ceridian Corp., Extended Term Loan, 5.95%, 5/09/17									104				104,822
First Data Corp., Extended 2018 Term Loan B, 4.20%, 3/23/18									1,160				1,145,384
													1,250,206
Leisure Equipment & Products — 0.1%
Eastman Kodak Co., DIP Term Loan B, 8.50%, 7/19/13									355				354,732
Life Sciences Tools & Services — 0.1%
Patheon, Inc., Term Loan, 7.25%, 12/06/18									304				307,660
Machinery — 0.7%
Rexnord Corp., Term Loan B, 4.50%, 4/02/18									871				876,653
Silver II US Holdings LLC, Term Loan, 5.00%, 12/05/19									2,355				2,355,000
													3,231,653
Media — 3.7%
Cengage Learning Acquisitions, Inc.:
Non-Extended Term Loan, 2.71%, 7/03/14									480				375,549
Tranche 1 Incremental, 7.50%, 7/03/14									2,298				1,826,513
Cequel Communications LLC, Term Loan B, 4.00%, 2/14/19									425				427,355
Clear Channel Communications, Inc.:
Term Loan B, 3.85%, 1/29/16									1,968				1,682,959
Term Loan C, 3.85%, 1/29/16									581				490,625
EMI Music Publishing Ltd., Term Loan B, 5.50%, 6/29/18									632				638,617
Getty Images, Inc., Term Loan B, 4.75%, 10/18/19									607				611,484
Intelsat Jackson Holdings SA, Term Loan B1, 4.50%, 4/02/18									8,037				8,112,183

See Notes to Financial Statements.

42

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

Consolidated Schedule of Investments (continued)	BlackRock Corporate High Yield Fund V, Inc. (HYV) (Percentages shown are based on Net Assets)

Floating Rate Loan Interests (c)								Par (000)				Value
Media (concluded)
Interactive Data Corp., Term Loan B, 3.75%, 2/11/18					USD				608			$	609,327
Univision Communications, Inc., Extended Term Loan, 4.45%, 3/31/17									400				400,103
Virgin Media Investment Holdings Ltd., Term Loan B, 3.50%, 2/17/20									1,115				1,108,343
													16,283,058
Metals & Mining — 0.9%
Constellium Holdco BV, Term Loan B, 9.25%, 5/25/18									627				639,387
FMG America Finance, Inc., Term Loan, 5.25%, 10/18/17									3,307				3,346,327
													3,985,714
Multiline Retail — 0.4%
HEMA Holding BV, Mezzanine, 8.62%, 7/05/17 (g)					EUR				1,480				1,710,092
Oil, Gas & Consumable Fuels — 1.5%
Chesapeake Energy Corp., Unsecured Term Loan, 5.75%, 12/01/17					USD				3,255				3,322,476
Obsidian Natural Gas Trust, Term Loan, 7.00%, 11/02/15									1,247				1,258,978
Samson Investment Co., Second Lien Term Loan, 6.00%, 9/25/18									345				348,236
Vantage Drilling Co., Term Loan, 6.25%, 10/26/17									1,437				1,443,996
													6,373,686
Pharmaceuticals — 0.7%
Aptalis Pharma, Inc., Term Loan B, 5.50%, 2/10/17									1,470				1,472,940
Par Pharmaceutica, Term Loan B, 4.25%, 9/28/19									1,057				1,056,028
Pharmaceutical Product Development, Inc., Term Loan B, 4.25%, 12/05/18									460				462,555
													2,991,523
Professional Services — 0.1%
Truven Health Analytics, Inc., Term Loan B, 5.75%, 6/01/19									547				552,383
Real Estate Investment Trusts (REITs) — 0.4%
iStar Financial, Inc., Term Loan, 4.50%, 9/28/17									1,539				1,539,667
Real Estate Management & Development — 0.3%
Realogy Corp.:
Extended Letter of Credit, 4.46%, 10/10/16									136				136,303
Extended Term Loan, 4.42%, 10/10/16									1,084				1,084,047
													1,220,350
Road & Rail — 0.1%
Genesee & Wyoming, Inc., Term Loan A, 2.70%, 9/29/17									426				426,305
Semiconductors & Semiconductor Equipment — 0.1%
Freescale Semiconductor, Inc., Extended Term Loan B, 4.45%, 12/01/16									440				440,000
Software — 0.6%
GCA Services Group, Inc., Second Lien Term Loan, 9.25%, 10/22/20									85				84,150
Infor US, Inc., Term Loan B2, 5.25%, 4/05/18									1,811				1,830,524
Kronos, Inc., Second Lien Term Loan, 9.75%, 4/30/20									760				790,400
													2,705,074
Specialty Retail — 0.2%
David’s Bridal, Inc., Term Loan B, 5.00%, 10/11/19									800				808,200
Textiles, Apparel & Luxury Goods — 0.5%
Ascend Performance Materials LLC, Term Loan B, 6.75%, 4/10/18									1,628				1,643,977
PVH Corp., Term Loan B, 3.25%, 12/19/19									650				655,213
													2,299,190
Thrifts & Mortgage Finance — 0.2%
Ocwen Financial Corp., Term Loan, 5.00%, 1/22/18									900				910,872

Floating Rate Loan Interests (c)								Par (000)				Value
Wireless Telecommunication Services — 1.2%
Vodafone Americas Finance 2, Inc. (g):
Term Loan, 6.88%, 8/11/15					USD				3,046			$	3,106,615
Term Loan B, 6.25%, 7/11/16									1,908				1,960,277
													5,066,892
Total Floating Rate Loan Interests — 27.0%													117,467,607
Other Interests (l)								Beneficial Interest (000)
Auto Components — 0.0%
Lear Corp. Escrow									790				19,750
Chemicals — 0.0%
Wellman Holdings, Inc., Litigation Trust Certificate (a)									4,650				47
Hotels, Restaurants & Leisure — 0.0%
Buffets, Inc. (a)									970				10
Media — 0.0%
Adelphia Escrow (a)									1,250				12
Adelphia Recovery Trust (a)									1,568				157
													169
Total Other Interests — 0.0%													19,976
Preferred Securities								Shares
Preferred Stocks
Auto Components — 1.0%
Dana Holding Corp., 4.00% (b)(d)									29,460				4,179,637
Real Estate Investment Trusts (REITs) — 0.1%
MPG Office Trust, Inc., Series A, 7.63% (a)									13,326				303,167
Thrifts & Mortgage Finance — 0.0%
Fannie Mae, Series O, 7.00% (a)(c)									40,000				154,000
Total Preferred Stocks — 1.1%													4,636,804
Trust Preferreds
Diversified Financial Services — 1.1%
GMAC Capital Trust I, Series 2, 8.13%, 2/15/40 (c)									190,520				5,039,201
Total Preferred Securities — 2.2%													9,676,005
Warrants (m)
Containers & Packaging — 0.0%
MDP Acquisitions Plc (issued/exercisable 12/31/02, 5 shares for 1 warrant, Expires 10/01/13, Strike Price EUR 0.001) (b)									1,100				88,959
Health Care Providers & Services — 0.0%
HealthSouth Corp. (Expires 1/16/14)									52,465				1
Media — 0.0%
New Vision Holdings LLC:
(Expires 9/30/14)									22,194				41,052
(Expires 9/30/14)									3,995				7,390
													48,442
Metals & Mining — 0.1%
Peninsula Energy Ltd. (Expires 12/31/15)									5,850,469				89,639
Real Estate Investment Trusts (REITs) — 0.0%
Pepper Residential Securities Trust (Expires 12/31/15)									3,455,851				50,126

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

43

Consolidated Schedule of Investments (continued)	BlackRock Corporate High Yield Fund V, Inc. (HYV) (Percentages shown are based on Net Assets)

Warrants (m)								Shares				Value
Software — 0.0%
Bankruptcy Management Solutions, Inc. (Expires 9/28/17)									491				—
HMH Holdings/EduMedia (issued/exercisable 3/09/10, 19 shares for 1 warrant, Expires 6/22/19, Strike Price $42.27)									1,736				—
													—
Total Warrants — 0.1%												$	277,167
Total Long-Term Investments (Cost — $598,703,117) — 142.3%													619,082,812
Short-Term Securities
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.10% (n)(o)									4,128,807				4,128,807
Total Short-Term Securities (Cost — $4,128,807) — 0.9%													4,128,807

Options Purchased												Value
(Cost — $14,811) — 0.0%												$	3,140
Total Investments Before Options Written (Cost — $602,846,735) — 143.2%													623,214,759
Options Written
(Premiums Received — $157,950) — (0.0)%													(81,138	)
Total Investments, Net of Options Written — 143.2%													623,133,621
Liabilities in Excess of Other Assets — (43.2)%													(187,905,223	)
Net Assets — 100.0%												$	435,228,398

Notes to Consolidated Schedule of Investments

(a)				Non-income producing security.
(b)				Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(c)				Variable rate security. Rate shown is as of report date.
(d)				Convertible security.
(e)				Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(f)				All or a portion of security has been pledged as collateral in connection with swaps.
(g)				Represents a payment-in-kind security which may pay interest/dividends in additional par/shares.
(h)				When-issued security. Unsettled when-issued transactions were as follows:

Counterparty				Value				Unrealized Appreciation (Depreciation)
Bank of America Corp				$	171,063			$	971
Citigroup, Inc				$	847,875			$	(2,125	)
Deutsche Bank AG				$	1,418,813			$	8,053
Goldman Sachs & Co., Inc				$	657,900			$	8,705
Pershing LLC				$	309,037			$	2,949
Sun Trust Capital				$	165,240			$	2,187

(i)				Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown is as of report date.
(j)				Issuer filed for bankruptcy and/or is in default of principal and/or interest payments.
(k)				Security is perpetual in nature and has no stated maturity date.
(l)				Other interests represent beneficial interests in liquidation trusts and other reorganization or private entities.
(m)				Warrants entitle the Trust 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 of the warrants, if any.
(n)				Investments in issuers considered to be an affiliate of the Trust during the six months ended February 28, 2013, for purposes of Section 2(a)(3) 1940 act, were as follows:

Affiliate				Shares Held at August 31, 2012				Net Activity				Shares Held at February 28, 2013				Income				Realized Gain
BlackRock Liquidity Funds, TempFund, Institutional Class					—				4,128,807				4,128,807			$	893			$	114

(o)				Represents the current yield as of report date.
•				For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Trust management. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.
•				Financial futures contracts as of February 28, 2013 were as follows:

Contracts  Sold

Issue

Exchange

Expiration

Notional Value

Unrealized Depreciation

(73)

S&P 500 E-Mini Index

Chicago Mercantile

March 2013

USD

5,523,545

$(92,603)

See Notes to Financial Statements.

44

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

Consolidated Schedule of Investments (continued)	BlackRock Corporate High Yield Fund V, Inc. (HYV)

•

Foreign currency exchange contracts as of February 28, 2013 were as follows:

Currency Purchased									Currency Sold								Counterparty				Settlement Date				Unrealized Appreciation (Depreciation)
USD					774,720			AUD					747,000			Citigroup, Inc.				4/17/13				$	14,241
USD					6,869,115			CAD					6,777,000			Deutsche Bank AG				4/17/13					304,273
USD					2,490,823			GBP					1,610,000			Barclays Plc				4/17/13					48,943
USD					134,761			GBP					87,000			BNP Paribas SA				4/17/13					2,808
USD					179,331			GBP					111,000			BNP Paribas SA				4/17/13					10,978
USD					8,746,483			GBP					5,460,000			Goldman Sachs Group, Inc.				4/17/13					465,325
USD					261,627			GBP					165,000			Royal Bank of Scotland Group Plc				4/17/13					11,372
EUR					354,000			USD					474,805			Westpac Banking Corp.				4/23/13					(12,470	)
USD					3,986			EUR					3,000			BNP Paribas SA				4/23/13					67
USD					70,327			EUR					52,000			Citigroup, Inc.				4/23/13					2,414
USD					32,648,915			EUR					24,502,000			Citigroup, Inc.				4/23/13					648,581
USD					132,794			EUR					99,674			Deutsche Bank AG				4/23/13					2,617
USD					426,389			EUR					320,000			Goldman Sachs Group, Inc.				4/23/13					8,459
USD					128,211			EUR					95,000			Royal Bank of Scotland Group Plc				4/23/13					4,138
Total																								$	1,511,746

•

Exchange-traded options purchased as of February 28, 2013 were as follows:

Description

Put/ Call

Strike Price

Expiration Date

Contracts

Market Value

Life Technologies Corp.

Call

USD

70.00

3/16/13

157

$

3,140

•

Over-the-counter credit default swaptions written as of February 28, 2013 were as follows:

Description

Counterparty

Put/ Call

Strike Price

Pay/Receive Floating Rate Index

Floating Rate Index

Credit  Rating1

Expiration Date

Notional Amount (000)2

Market Value

Sold Protection on 5-Year Credit Default Swap

Credit Suisse Group AG

Call

USD

103.50

Receive

Dow Jones CDX North America High Yield, Series 19, Verison 1

B+

6/19/13

USD

6,500

$

(35,125

)

Sold Protection on 5-Year Credit Default Swap

Credit Suisse Group AG

Put

USD

97.50

Pay

Dow Jones CDX North America High Yield, Series 19, Verison 1

B+

6/19/13

USD

6,500

(46,013

)

Total

$

(81,138

)

1

Using S&P’s rating of the underlying securities of the index.

2

The maximum potential amount the Trust may pay should a negative credit event take place as defined under the terms of the agreement.

•

Credit default swaps—buy protection outstanding as of February 28, 2013 were as follows:

Issuer				Pay Fixed Rate				Counterparty				Expiration Date				Notional Amount (000)								Unrealized Depreciation
State of Israel				1.00%				Deutsche Bank AG				3/20/17				USD					335			$	(12,997	)
State of Israel				1.00%				Deutsche Bank AG				3/20/17				USD					1,000				(39,391	)
Beazer Homes USA, Inc.				5.00%				JPMorgan Chase & Co.				12/20/17				USD					100				(1,642	)
Total																								$	(54,030	)

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

45

Consolidated Schedule of Investments (continued)	BlackRock Corporate High Yield Fund V, Inc. (HYV)

•

Credit default swaps — sold protection outstanding as of February 28, 2013 were as follows:

Issuer

Receive Fixed Rate

Counterparty

Expiration Date

Credit  Rating1

Notional Amount (000)2

Unrealized Appreciation (Depreciation)

Caesars Entertainment Operating Co., Inc.

5.00%

JPMorgan Chase & Co.

12/20/15

CCC

USD

112

$

13,604

Caesars Entertainment Operating Co., Inc.

5.00%

JPMorgan Chase & Co.

12/20/15

CCC

USD

447

50,285

Caesars Entertainment Operating Co., Inc.

5.00%

JPMorgan Chase & Co.

12/20/15

CCC

USD

403

67,937

ARAMARK Corp.

5.00%

Goldman Sachs Group, Inc.

3/20/16

B-

USD

750

60,215

Caesars Entertainment Operating Co., Inc.

5.00%

Goldman Sachs Group, Inc.

3/20/16

CCC

USD

483

31,111

Caesars Entertainment Operating Co., Inc.

5.00%

Goldman Sachs Group, Inc.

3/20/16

CCC

USD

118

6,029

Caesars Entertainment Operating Co., Inc.

5.00%

Goldman Sachs Group, Inc.

3/20/16

CCC

USD

558

547

Caesars Entertainment Operating Co., Inc.

5.00%

Goldman Sachs Group, Inc.

3/20/16

CCC

USD

163

12,711

Caesars Entertainment Operating Co., Inc.

5.00%

Goldman Sachs Group, Inc.

3/20/16

CCC

USD

163

12,711

Caesars Entertainment Operating Co., Inc.

5.00%

JPMorgan Chase & Co.

3/20/16

CCC

USD

68

2,494

ARAMARK Corp.

5.00%

Goldman Sachs Group, Inc.

6/20/16

B-

USD

500

40,482

ARAMARK Corp.

5.00%

Goldman Sachs Group, Inc.

6/20/16

B-

USD

500

42,897

Caesars Entertainment Operating Co., Inc.

5.00%

Goldman Sachs Group, Inc.

6/20/16

CCC

USD

1,132

60,768

Caesars Entertainment Operating Co., Inc.

5.00%

Goldman Sachs Group, Inc.

6/20/16

CCC

USD

182

806

Caesars Entertainment Operating Co., Inc.

5.00%

Goldman Sachs Group, Inc.

6/20/16

CCC

USD

331

19,502

Caesars Entertainment Operating Co., Inc.

5.00%

Goldman Sachs Group, Inc.

6/20/16

CCC

USD

630

31,293

ARAMARK Corp.

5.00%

Credit Suisse Group AG

9/20/16

B-

USD

200

22,343

ARAMARK Corp.

5.00%

Deutsche Bank AG

3/20/17

B-

USD

295

21,596

Caesars Entertainment Operating Co., Inc.

5.00%

Goldman Sachs Group, Inc.

3/20/17

CCC

USD

355

11,195

Caesars Entertainment Operating Co., Inc.

5.00%

Goldman Sachs Group, Inc.

3/20/17

CCC

USD

207

2,579

Caesars Entertainment Operating Co., Inc.

5.00%

Goldman Sachs Group, Inc.

3/20/17

CCC

USD

299

(2,279

)

Crown Castle International Corp.

7.25%

Deutsche Bank AG

3/20/17

B-

USD

690

119,435

CCO Holdings LLC

8.00%

Deutsche Bank AG

9/20/17

BB-

USD

2,400

580,279

Level 3 Communications, Inc.

5.00%

Goldman Sachs Group, Inc.

6/20/19

CCC

USD

1,500

117,273

Total

$

1,325,813

1

Using S&P’s rating of the issuer.

2

The maximum potential amount the Trust may pay should a negative credit event take place as defined under the terms of the agreement.

•

Fair Value Measurements—Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for consolidated financial statement purposes as follows:

•				Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the Trust has the ability to access
•				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 Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)

				The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
				Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust’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 Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy as of February 28, 2013:

				Level 1				Level 2				Level 3				Total
Assets:
Investments:
Long-Term Investments:
Common Stocks				$	30,384,458			$	2,412,176			$	8,233,437			$	41,030,071
Corporate Bonds					—				444,259,214				6,352,772				450,611,986
Floating Rate Loan Interests					—				95,585,666				21,881,941				117,467,607
Other Interests					157				—				19,819				19,976
Preferred Securities					5,496,368				4,179,637				—				9,676,005
Warrants					89,639				88,959				98,569				277,167
Short-Term Securities					4,128,807				—				—				4,128,807
Options Purchased:
Equity Contracts					3,140				—				—				3,140
Total				$	40,102,569			$	546,525,652			$	36,586,538			$	623,214,759

See Notes to Financial Statements.

46

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

Consolidated Schedule of Investments (continued)	BlackRock Corporate High Yield Fund V, Inc. (HYV)

				Level 1				Level 2				Level 3				Total
Derivative Financial Instruments1
Assets:
Credit contracts					—			$	1,328,092				—			$	1,328,092
Foreign currency exchange contracts					—				1,524,216				—				1,524,216
Liabilities:
Credit contracts					—				(137,447	)			—				(137,447	)
Equity contracts				$	(92,603	)			—				—				(92,603	)
Foreign currency exchange contracts					—				(12,470	)			—				(12,470	)
Total				$	(92,603	)		$	2,702,391				—			$	2,609,788

1

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

Certain of the Trust’s assets and liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of February 28, 2013, such assets and liabilities are categorized within the disclosure hierarchy as follows:

				Level 1				Level 2				Level 3				Total
Assets:
Foreign currency at value				$	5,581				—				—			$	5,581
Cash pledged as collateral for financial futures contracts					307,000				—				—				307,000
Cash pledged as collateral for swaps					400,000				—				—				400,000
Liabilities:
Bank overdraft					—			$	(138,781	)			—				(138,781	)
Cash received as collateral for swaps					—				(1,200,000	)			—				(1,200,000	)
Loan payable					—				(174,000,000	)			—				(174,000,000	)
Total				$	712,581			$	(175,338,781	)			—			$	(174,626,200	)

There were no transfers between Level 1 and Level 2 during the six months ended February 28, 2013.

A reconciliation of Level 3 investments and derivative financial instruments is presented when the Trust had a significant amount of Level 3 investments and derivative financial instruments at the beginning and/or end of the period in relation to net assets. The following table is a reconciliation of Level 3 investments for which significant unobservable inputs were used in determining fair value:

				Common Stocks				Corporate Bonds				Floating Rate Loan Interests				Other Interests				Warrants				Total
Assets:
Opening Balance, as of August 31, 2012				$	6,755,302			$	6,576,954			$	19,411,992			$	8,463			$	1			$	32,752,712
Transfers into Level 32					15,101				2,120,575				2,296,471				—				—				4,432,147
Transfers out of Level 33					—				—				(1,924,364	)			—				—				(1,924,364	)
Accrued discounts/premiums					—				(13,760	)			69,718				—				—				55,958
Net realized gain (loss)					—				10,524				(117,320	)			—				—				(106,796	)
Net change in unrealized   appreciation/depreciation4					703,574				(1,945,433	)			1,097,715				11,356				98,568				(34,220	)
Purchases					759,460				3,657,923				7,418,353				—				—				11,835,736
Sales					—				(4,054,011	)			(6,370,624	)			—				—				(10,424,635	)
Closing Balance, as of February 28, 2013				$	8,233,437			$	6,352,772			$	21,881,941			$	19,819			$	98,569			$	36,586,538

2

As of August 31, 2012, the Trust used observable inputs in determining the value of certain investments. As of February 28, 2013, the Trust used significant unobservable inputs in determining the value of the same investments. As a result, investments with a beginning of period value of $4,432,147 transferred from Level 2 to Level 3 in the disclosure hierarchy.

3

As of August 31, 2012, the Trust used significant unobservable inputs in determining the value of certain investments. As of February 28, 2013, the Trust used observable inputs in determining the value on the same investments. As a result, investments with a beginning of period value of $1,924,364 transferred from Level 3 to Level 2 in the disclosure hierarchy.

4

Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations. The change in unrealized appreciation/depreciation on investments still held as of February 28, 2013 was $697,183.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

47

Consolidated Schedule of Investments (concluded)	BlackRock Corporate High Yield Fund V, Inc. (HYV)

The following table is a reconciliation of Level 3 derivative financial instruments for which significant unobservable inputs were used in determining fair value:

				Credit Contracts
Assets:
Opening Balance, as of August 31, 2012				$	829,910
Transfers into Level 31					—
Transfers out of Level 31					(205,351	)
Accrued discounts/premiums					—
Net realized gain (loss)					—
Net change in unrealized appreciation/depreciation2					(624,559	)
Purchases					—
Issues3					—
Sales					—
Settlements4					—
Closing Balance, as of February 28, 2013					—

1

Transfers into and transfers out of Level 3 represent the values as of the beginning of the reporting period.

2

Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations.

3

Issues represent upfront cash received on certain derivative financial instruments.

4

Settlements represent periodic contractual cash flows and/or cash flows to terminate certain derivative financial instruments.

The following table summarizes the valuation techniques used and unobservable inputs developed by the BlackRock Global Valuation Methodologies Committee (“Global Valuation Committee”) to determine the value of certain of the Trust’s Level 3 investments as of February 28, 2013. The table does not include Level 3 investments with values derived utilizing third party pricing information without adjustment. A significant change in third party pricing information could result in a significantly lower or higher value of such Level 3 investments. The value of Level 3 investments derived using third party pricing information is $20,080,471.

Value

Valuation Techniques

Unobservable Inputs5

Range of Unobservable Inputs Utilized

Assets:

Common Stocks

$

6,835,434

Market Comparable Companies

EBITDA Multiple

6.56x

Enterprise Value/Oil Barrel Multiple

CAD6  0.44x

332,660

Restructure Terms7

N/A

—

Corporate Bonds

1,663,876

Market Comparable Companies

Yield

12.10%

950,629

Discounted Cash Flow

Yield

12%

2,574,800

Cost8

N/A

—

Floating Rate Loan Interests

1,010,587

Discounted Cash Flow

Yield

9.50%

3,000,000

Cost8

N/A

—

Warrant

48,442

Discounted Vendor Price

Distribution Rate

0.51639

89,639

Black-Sholes

Implied Volatility

90%

Total

$

16,506,067

5

A change to the unobservable input may result in a significant change to the value of the investment as follows:

Unobservable Input				Impact to Value if Input Increases				Impact to Value if Input Decreases
EBITDA Multiple				Increase				Decrease
Enterprise Value/Oil Barrel Multiple				Increase				Decrease
Yield				Decrease				Increase
Distribution Rate				Decrease				Increase
Implied Volatility				Increase				Decrease

6

Canadian Dollar.

7

Investment is valued based on the company’s financial restructuring plan.

8

The Trust fair values certain of its Level 3 investments using prior transaction prices (acquisition cost), although the transaction may not have occurred during the current reporting period. In such cases, these investments are generally privately held investments. There may not be a secondary market, and/or there are a limited number of investors. The determination to fair value such investments at cost is based upon factors consistent with the principles of fair value measurement that are reasonably available to the Global Valuation Committee, or its delegate. Valuations are reviewed utilizing available market information to determine if the carrying value should be adjusted. Such market data may include, but is not limited to, observations of the trading multiples of public companies considered comparable to the private companies being valued, financial or operational information released by the company, and/or news or corporate events that affect the investment. Valuations may be adjusted to account for company-specific issues, the lack of liquidity inherent in a nonpublic investment and the fact that comparable public companies are not identical to the investments being fair valued by the Trust.

See Notes to Financial Statements.

48

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

Consolidated Schedule of Investments February 28, 2013 (Unaudited)	BlackRock Corporate High Yield Fund VI, Inc. (HYT) (Percentages shown are based on Net Assets)

Common Stocks								Shares				Value
Auto Components — 0.8%
Dana Holding Corp.									178,397			$	2,984,582
Delphi Automotive Plc									13,700				568,610
													3,553,192
Biotechnology — 0.0%
Ironwood Pharmaceuticals, Inc. (a)									11,018				164,499
Capital Markets — 1.7%
American Capital Ltd. (a)									433,202				6,056,164
E*Trade Financial Corp. (a)									116,200				1,244,502
Uranium Participation Corp. (a)									54,600				282,729
													7,583,395
Chemicals — 0.5%
ADA-ES, Inc. (a)									2,810				74,662
CF Industries Holdings, Inc.									5,500				1,104,565
Huntsman Corp.									53,600				923,528
													2,102,755
Commercial Banks — 0.5%
CIT Group, Inc. (a)									60,104				2,515,953
Communications Equipment — 0.3%
Loral Space & Communications Ltd.									21,531				1,253,965
Diversified Financial Services — 0.8%
Bank of America Corp.									37,100				416,633
Kcad Holdings I Ltd. (a)									461,295,490				3,113,744
													3,530,377
Diversified Telecommunication Services — 0.2%
Broadview Networks Holdings, Inc. (a)									54,600				365,274
Level 3 Communications, Inc. (a)									34,800				695,304
													1,060,578
Electrical Equipment — 0.0%
Medis Technologies Ltd. (a)									116,910				1
Energy Equipment & Services — 0.9%
Laricina Energy Ltd. (a)									70,588				2,395,714
Osum Oil Sands Corp. (a)									124,000				1,638,303
													4,034,017
Hotels, Restaurants & Leisure — 0.2%
Caesars Entertainment Corp. (a)									59,623				745,288
Travelport LLC (a)									118,935				1,189
													746,477
Insurance — 1.0%
American International Group, Inc. (a)									122,977				4,674,356
Media — 1.3%
Belo Corp., Class A									36,341				313,986
Charter Communications, Inc., Class A (a)									65,587				5,666,061
Clear Channel Outdoor Holdings, Inc., Class A (a)									14,553				110,603
													6,090,650
Metals & Mining — 0.1%
African Minerals Ltd. (a)									72,301				308,919
Peninsula Energy Ltd. (a)									11,756,996				392,821
													701,740
Oil, Gas & Consumable Fuels — 0.0%
African Petroleum Corp. Ltd. (a)									307,100				59,601
Paper & Forest Products — 1.0%
Ainsworth Lumber Co. Ltd. (a)									773,706				2,453,351
Ainsworth Lumber Co. Ltd. (a)(b)									221,591				700,496
NewPage Corp. (a)									13,400				1,139,000
Western Forest Products, Inc. (a)									78,039				94,593
													4,387,440
Semiconductors & Semiconductor Equipment — 0.3%
Freescale Semiconductor Ltd. (a)									6,695				103,304
NXP Semiconductors NV (a)									14,683				474,555
Spansion, Inc., Class A (a)									63,578				747,677
SunPower Corp. (a)									431				5,060
													1,330,596

Common Stocks								Par (000)				Value
Software — 0.1%
Bankruptcy Management Solutions, Inc. (a)									787			$	8
HMH Holdings/EduMedia (a)									31,742				581,930
													581,938
Total Common Stocks — 9.7%													44,371,530
Corporate Bonds									Par (000)
Aerospace & Defense — 1.0%
Bombardier, Inc., 4.25%, 1/15/16 (b)					USD				940				975,250
Huntington Ingalls Industries, Inc.:
6.88%, 3/15/18									260				283,238
7.13%, 3/15/21									410				446,900
Kratos Defense & Security Solutions, Inc., 10.00%, 6/01/17									1,274				1,406,177
Meccanica Holdings USA, Inc., 6.25%, 7/15/19 (b)									690				709,030
Spirit Aerosystems, Inc., 7.50%, 10/01/17									521				552,260
													4,372,855
Airlines — 1.8%
American Airlines Pass-Through Trust, Series 2011-2, Class A, 8.63%, 4/15/23									1,047				1,089,199
Continental Airlines Pass-Through Trust:
Series 1997-4, Class B, 6.90%, 7/02/18									538				543,821
Series 2010-1, Class B, 6.00%, 7/12/20									571				588,248
Series 2012-3, Class C, 6.13%, 4/29/18									1,435				1,431,412
Delta Air Lines Pass-Through Trust:
Series 2002-1, Class G-1, 6.72%, 7/02/24									904				1,001,092
Series 2009-1, Class B, 9.75%, 6/17/18									272				302,284
Series 2010-1, Class B, 6.38%, 7/02/17									900				938,250
US Airways Pass-Through Trust:
Series 2011-1, Class C, 10.88%, 10/22/14									878				926,291
Series 2012-1, Class C, 9.13%, 10/01/15									650				695,500
Series 2012-2, Class B, 6.75%, 12/03/22									600				627,000
													8,143,097
Auto Components — 2.0%
Continental Rubber of America Corp., 4.50%, 9/15/19 (b)									300				306,000
Dana Holding Corp., 6.75%, 2/15/21									700				762,125
Delphi Corp.:
6.13%, 5/15/21									115				125,350
5.00%, 2/15/23									235				244,694
Icahn Enterprises LP, 8.00%, 1/15/18									4,690				5,024,162
IDQ Holdings, Inc., 11.50%, 4/01/17 (b)									595				651,525
Jaguar Land Rover Plc, 8.25%, 3/15/20					GBP				745				1,267,183
Titan International, Inc., 7.88%, 10/01/17					USD				720				772,200
													9,153,239
Beverages — 0.2%
Crown European Holdings SA:
7.13%, 8/15/18					EUR				52				73,489
7.13%, 8/15/18 (b)									244				344,835
Refresco Group BV, 7.38%, 5/15/18									212				289,315
													707,639
Building Products — 0.9%
Building Materials Corp. of America (b):
7.00%, 2/15/20					USD				840				909,300
6.75%, 5/01/21									1,220				1,309,975
Grohe Holding GmbH, 8.75%, 12/15/17 (c)					EUR				100				136,756
Momentive Performance Materials, Inc., 8.88%, 10/15/20					USD				540				554,175
USG Corp., 9.75%, 1/15/18									1,100				1,293,875
													4,204,081
Capital Markets — 0.4%
E*Trade Financial Corp., 0.01%, 8/31/19 (b)(d)(e)									380				397,338
KKR Group Finance Co. LLC, 6.38%, 9/29/20 (b)									695				817,303
Nuveen Investments, Inc., 9.13%, 10/15/17 (b)									729				732,645
													1,947,286

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

49

Consolidated Schedule of Investments (continued)	BlackRock Corporate High Yield Fund VI, Inc. (HYT) (Percentages shown are based on Net Assets)

Corporate Bonds								Par (000)				Value
Chemicals — 3.4%
Axiall Corp., 4.88%, 5/15/23 (b)					USD				272			$	276,080
Basell Finance Co. BV, 8.10%, 3/15/27 (b)									645				851,400
Celanese US Holdings LLC, 5.88%, 6/15/21									2,015				2,201,387
Ciech Group Financing AB, 9.50%, 11/30/19					EUR				137				194,958
Eagle Spinco, Inc., 4.63%, 2/15/21 (b)					USD				576				585,360
Huntsman International LLC, 8.63%, 3/15/21									265				299,450
INEOS Finance Plc, 7.50%, 5/01/20 (b)									590				635,725
Kinove German Bondco GmbH, 10.00%, 6/15/18					EUR				532				770,808
Kraton Polymers LLC, 6.75%, 3/01/19					USD				195				202,800
LyondellBasell Industries NV, 5.75%, 4/15/24									4,050				4,708,125
Nexeo Solutions LLC, 8.38%, 3/01/18									145				141,738
Nufarm Australia Ltd., 6.38%, 10/15/19 (b)									350				371,000
PolyOne Corp., 7.38%, 9/15/20									335				371,013
Rockwood Specialties Group, Inc., 4.63%, 10/15/20									1,140				1,179,900
Tronox Finance LLC, 6.38%, 8/15/20 (b)									2,094				2,080,912
US Coatings Acquisition, Inc./Flash Dutch 2 BV:
5.75%, 2/01/21					EUR				100				133,166
7.38%, 5/01/21 (b)					USD				550				569,250
													15,573,072
Commercial Banks — 0.9%
CIT Group, Inc.:
5.25%, 3/15/18									860				924,500
6.63%, 4/01/18 (b)									475				539,125
5.50%, 2/15/19 (b)									840				913,500
5.00%, 8/15/22									740				791,800
6.00%, 4/01/36									850				832,686
													4,001,611
Commercial Services & Supplies — 2.2%
ADS Waste Holdings, Inc., 8.25%, 10/01/20 (b)									431				463,325
ARAMARK Holdings Corp. (b):
8.63%, 5/01/16 (f)									680				693,607
5.75%, 3/15/20 (g)									1,005				1,025,100
Aviation Capital Group Corp., 6.75%, 4/06/21 (b)									840				909,168
AWAS Aviation Capital Ltd., 7.00%, 10/17/16 (b)									142				149,318
Brickman Group Holdings, Inc., 9.13%, 11/01/18 (b)									43				46,225
Casella Waste Systems, Inc., 7.75%, 2/15/19									83				79,473
Catalent Pharma Solutions, Inc., 7.88%, 10/15/18 (b)									959				970,987
Clean Harbors, Inc., 5.25%, 8/01/20									817				841,510
Covanta Holding Corp., 6.38%, 10/01/22									985				1,068,070
EC Finance Plc, 9.75%, 8/01/17					EUR				677				961,194
HDTFS, Inc. (b):
5.88%, 10/15/20					USD				100				104,000
6.25%, 10/15/22									410				440,750
Mead Products LLC/ACCO Brands Corp., 6.75%, 4/30/20 (b)									117				123,874
Mobile Mini, Inc., 7.88%, 12/01/20									570				634,125
RSC Equipment Rental, Inc., 8.25%, 2/01/21									718				814,033
Verisure Holding AB:
8.75%, 9/01/18					EUR				275				387,748
8.75%, 12/01/18									139				185,101
West Corp., 8.63%, 10/01/18					USD				210				223,650
													10,121,258
Communications Equipment — 1.1%
Alcatel-Lucent USA, Inc.:
6.50%, 1/15/28									90				69,300
6.45%, 3/15/29									288				223,920
Avaya, Inc., 9.75%, 11/01/15									936				920,790
Zayo Group LLC/Zayo Capital, Inc.:
8.13%, 1/01/20									1,480				1,653,900
10.13%, 7/01/20									1,960				2,298,100
													5,166,010
Computers & Peripherals — 0.2%
EMC Corp., Series B, 1.75%, 12/01/13 (d)									307				443,999
SanDisk Corp., 1.50%, 8/15/17 (d)									445				547,906
													991,905

Corporate Bonds								Par (000)				Value
Construction & Engineering — 0.3%
Boart Longyear Management Property Ltd., 7.00%, 4/01/21 (b)					USD				300			$	311,250
H&E Equipment Services, Inc., 7.00%, 9/01/22 (b)									687				752,265
Weekley Homes LLC, 6.00%, 2/01/23 (b)									240				244,800
													1,308,315
Construction Materials — 2.1%
Buzzi Unicem SpA, 6.25%, 9/28/18					EUR				213				299,133
HD Supply, Inc. (b):
8.13%, 4/15/19					USD				1,970				2,218,712
11.00%, 4/15/20									2,045				2,464,225
7.50%, 7/15/20									2,995				2,998,744
11.50%, 7/15/20									810				933,525
HeidelbergCement AG, 7.50%, 4/03/20					EUR				83				130,574
Xefin Lux SCA, 8.00%, 6/01/18 (b)									393				550,921
													9,595,834
Consumer Finance — 0.2%
Credit Acceptance Corp., 9.13%, 2/01/17					USD				710				773,900
Springleaf Finance, 6.90%, 12/15/17									160				156,800
													930,700
Containers & Packaging — 2.1%
Ardagh Packaging Finance Plc:
7.38%, 10/15/17					EUR				200				283,304
7.38%, 10/15/17									100				141,652
7.38%, 10/15/17 (b)									574				813,083
7.38%, 10/15/17 (b)					USD				200				217,750
9.13%, 10/15/20 (b)									615				670,350
9.13%, 10/15/20 (b)									470				514,650
7.00%, 11/15/20 (b)									945				947,362
4.88%, 11/15/22 (b)									228				224,580
5.00%, 11/15/22					EUR				360				466,473
Berry Plastics Corp.:
4.18%, 9/15/14 (c)					USD				465				465,000
8.25%, 11/15/15									185				192,807
9.75%, 1/15/21									280				323,400
Beverage Packaging Holdings Luxembourg II SA, 8.00%, 12/15/16					EUR				882				1,154,604
Crown Americas LLC/Crown Americas Capital Corp. III, 6.25%, 2/01/21					USD				17				18,530
Crown Americas LLC/Crown Americas Capital Corp. IV, 4.50%, 1/15/23 (b)									189				184,748
GCL Holdings SCA, 9.38%, 4/15/18 (b)					EUR				414				586,548
Graphic Packaging International, Inc., 7.88%, 10/01/18					USD				580				638,000
Pactiv LLC, 7.95%, 12/15/25									632				592,500
Tekni-Plex, Inc., 9.75%, 6/01/19 (b)									849				938,145
													9,373,486
Distributors — 0.5%
VWR Funding, Inc., 7.25%, 9/15/17 (b)									2,126				2,237,615
Diversified Consumer Services — 2.2%
313 Group, Inc. (b):
6.38%, 12/01/19									1,527				1,488,825
8.75%, 12/01/20									924				912,450
Laureate Education, Inc., 9.25%, 9/01/19 (b)									1,930				2,098,875
Service Corp. International, 7.00%, 6/15/17									4,425				5,005,781
ServiceMaster Co., 8.00%, 2/15/20									295				312,700
													9,818,631
Diversified Financial Services — 5.0%
Air Lease Corp., 4.50%, 1/15/16									920				940,700
Aircastle, Ltd.:
6.75%, 4/15/17									575				633,938
6.25%, 12/01/19									500				538,750
Ally Financial, Inc.:
7.50%, 12/31/13									700				735,000
8.00%, 11/01/31 (h)									4,745				5,960,906
CNG Holdings, Inc., 9.38%, 5/15/20 (b)									630				621,338

See Notes to Financial Statements.

50

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

Consolidated Schedule of Investments (continued)	BlackRock Corporate High Yield Fund VI, Inc. (HYT) (Percentages shown are based on Net Assets)

Corporate Bonds								Par (000)				Value
Diversified Financial Services (concluded)
Co-Operative Group Ltd. (i):
5.63%, 7/08/20					GBP				370			$	588,251
6.25%, 7/08/26									100				159,745
DPL, Inc.:
6.50%, 10/15/16					USD				470				493,500
7.25%, 10/15/21									1,345				1,442,513
Gala Group Finance Plc, 8.88%, 9/01/18					GBP				802				1,314,008
General Motors Financial Co., Inc., 6.75%, 6/01/18					USD				460				529,000
Leucadia National Corp., 8.13%, 9/15/15									1,232				1,392,160
Reynolds Group Issuer, Inc.:
7.13%, 4/15/19									385				413,394
9.00%, 4/15/19									735				779,100
7.88%, 8/15/19									485				535,925
9.88%, 8/15/19									940				1,029,300
5.75%, 10/15/20									3,225				3,329,812
WMG Acquisition Corp.:
11.50%, 10/01/18									656				761,780
6.00%, 1/15/21 (b)									454				469,890
													22,669,010
Diversified Telecommunication Services — 2.5%
Broadview Networks Holdings, Inc., 10.50%, 11/15/17									840				821,100
Cequel Communications Escrow I LLC/Cequel Communications Escrow Capital Corp., 6.38%, 9/15/20 (b)									730				754,637
Consolidated Communications Finance Co., 10.88%, 6/01/20 (b)									530				600,225
Level 3 Communications, Inc., 8.88%, 6/01/19 (b)									495				534,600
Level 3 Financing, Inc.:
8.13%, 7/01/19									1,817				1,980,530
7.00%, 6/01/20 (b)									660				693,000
8.63%, 7/15/20									1,320				1,465,200
Lynx I Corp., 5.38%, 4/15/21 (b)									440				451,000
OTE Plc, 7.25%, 2/12/15					EUR				256				335,892
Telenet Finance V Luxembourg SCA:
6.25%, 8/15/22									444				594,156
6.75%, 8/15/24									645				879,973
tw telecom holdings, Inc., 5.38%, 10/01/22					USD				460				479,550
Windstream Corp.:
8.13%, 8/01/13									703				721,419
7.88%, 11/01/17									627				710,077
7.50%, 4/01/23									125				130,625
6.38%, 8/01/23 (b)									125				122,500
													11,274,484
Electric Utilities — 0.7%
Mirant Mid Atlantic Pass-Through Trust, Series B, 9.13%, 6/30/17									454				503,771
The Tokyo Electric Power Co., Inc., 4.50%, 3/24/14					EUR				1,900				2,533,380
													3,037,151
Electrical Equipment — 0.6%
Belden, Inc., 5.50%, 9/01/22 (b)					USD				570				584,250
General Cable Corp., 5.75%, 10/01/22 (b)									950				973,750
Techem GmbH:
6.13%, 10/01/19					EUR				644				893,322
6.13%, 10/01/19 (b)									105				145,651
													2,596,973
Electronic Equipment, Instruments & Components — 0.1%
Jabil Circuit, Inc., 8.25%, 3/15/18					USD				365				438,913
NXP BV/NXP Funding LLC, 9.75%, 8/01/18 (b)									100				114,250
													553,163
Energy Equipment & Services — 3.7%
Atwood Oceanics, Inc., 6.50%, 2/01/20									215				233,813
Calfrac Holdings LP, 7.50%, 12/01/20 (b)									518				520,590
Compagnie Générale de Géophysique, Veritas:
7.75%, 5/15/17									395				407,344
6.50%, 6/01/21									1,945				2,022,800

Corporate Bonds								Par (000)				Value
Energy Equipment & Services (concluded)
FTS International Services LLC/FTS International Bonds, Inc., 8.13%, 11/15/18 (b)					USD				1,686			$	1,745,010
Genesis Energy LP, 5.75%, 2/15/21 (b)									262				271,170
Gulfmark Offshore, Inc., 6.38%, 3/15/22									245				252,962
Hornbeck Offshore Services, Inc., 5.88%, 4/01/20									490				514,500
MEG Energy Corp. (b):
6.50%, 3/15/21									2,110				2,226,050
6.38%, 1/30/23									560				579,600
Oil States International, Inc.:
6.50%, 6/01/19									495				529,650
5.13%, 1/15/23 (b)									210				210,000
Peabody Energy Corp.:
6.00%, 11/15/18									359				381,437
6.25%, 11/15/21									1,811				1,883,440
7.88%, 11/01/26									580				620,600
4.75%, 12/15/41 (d)									1,103				936,861
Precision Drilling Corp.:
6.63%, 11/15/20									120				127,500
6.50%, 12/15/21									460				487,600
Rain CII Carbon LLC/CII Carbon Corp., 8.25%, 1/15/21 (b)									364				382,200
Seadrill Ltd., 5.63%, 9/15/17 (b)									2,107				2,133,337
Tervita Corp., 8.00%, 11/15/18 (b)									575				592,250
													17,058,714
Food & Staples Retailing — 0.4%
Bakkavor Finance 2 Plc, 8.25%, 2/15/18					GBP				502				772,982
Rite Aid Corp., 9.25%, 3/15/20					USD				580				649,600
Zobele Holding SpA, 7.88%, 2/01/18					EUR				140				185,519
													1,608,101
Food Products — 0.4%
Darling International, Inc., 8.50%, 12/15/18					USD				180				204,750
Del Monte Corp., 7.63%, 2/15/19									94				97,525
Post Holdings, Inc., 7.38%, 2/15/22									875				945,000
Smithfield Foods, Inc., 6.63%, 8/15/22									729				792,788
													2,040,063
Health Care Equipment & Supplies — 2.3%
Biomet, Inc. (b):
6.50%, 8/01/20									2,742				2,899,665
6.50%, 10/01/20									3,338				3,438,140
DJO Finance LLC:
8.75%, 3/15/18									586				646,797
7.75%, 4/15/18									160				159,200
9.88%, 4/15/18									650				693,875
Fresenius Medical Care US Finance, Inc., 5.75%, 2/15/21 (b)									440				479,600
Fresenius Medical Care US Finance II, Inc., 5.63%, 7/31/19 (b)									324				350,730
Fresenius US Finance II, Inc., 9.00%, 7/15/15 (b)									850				975,375
Kinetic Concepts, Inc./KCI USA, Inc., 12.50%, 11/01/19 (b)									495				485,100
Teleflex, Inc., 6.88%, 6/01/19									455				494,813
													10,623,295
Health Care Providers & Services — 8.0%
Aviv Healthcare Properties LP, 7.75%, 2/15/19									880				943,800
Care UK Health & Social Care Plc, 9.75%, 8/01/17					GBP				130				198,696
CHS/Community Health Systems, Inc.:
5.13%, 8/15/18					USD				1,180				1,240,475
7.13%, 7/15/20									703				757,482
ConvaTec Healthcare E SA, 7.38%, 12/15/17 (b)					EUR				694				960,414
Crown Newco 3 Plc:
7.00%, 2/15/18					GBP				200				313,271
7.00%, 2/15/18 (b)									575				900,654
DaVita HealthCare Partners, Inc., 5.75%, 8/15/22					USD				1,376				1,434,480
HCA Holdings, Inc., 6.25%, 2/15/21									1,688				1,780,840

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

51

Consolidated Schedule of Investments (continued)	BlackRock Corporate High Yield Fund VI, Inc. (HYT) (Percentages shown are based on Net Assets)

Corporate Bonds								Par (000)				Value
Health Care Providers & Services (concluded)
HCA, Inc.:
8.50%, 4/15/19					USD				205			$	227,038
6.50%, 2/15/20									3,190				3,572,800
7.88%, 2/15/20									430				476,762
7.25%, 9/15/20									3,720				4,129,200
5.88%, 3/15/22									340				366,350
4.75%, 5/01/23									1,645				1,640,887
Hologic, Inc., 6.25%, 8/01/20 (b)									2,475				2,611,125
IASIS Healthcare LLC, 8.38%, 5/15/19									953				981,590
INC Research LLC, 11.50%, 7/15/19 (b)									546				582,855
inVentiv Health, Inc., 9.00%, 1/15/18 (b)									970				1,011,225
Omnicare, Inc.:
7.75%, 6/01/20									1,520				1,687,200
3.75%, 4/01/42 (d)									247				257,498
Symbion, Inc., 8.00%, 6/15/16									535				559,075
Tenet Healthcare Corp.:
6.25%, 11/01/18									1,658				1,836,235
8.88%, 7/01/19									3,970				4,486,100
6.75%, 2/01/20									810				866,700
4.50%, 4/01/21 (b)									1,108				1,092,765
Vanguard Health Holding Co. II LLC:
8.00%, 2/01/18									374				398,310
7.75%, 2/01/19 (b)									720				771,300
Voyage Care Bondco Plc, 6.50%, 8/01/18					GBP				180				277,848
													36,362,975
Health Care Technology — 1.0%
IMS Health, Inc. (b):
12.50%, 3/01/18					USD				3,480				4,193,400
6.00%, 11/01/20									221				229,840
													4,423,240
Hotels, Restaurants & Leisure — 3.3%
Caesars Entertainment Operating Co., Inc.:
10.00%, 12/15/18									765				504,900
8.50%, 2/15/20									311				303,225
Caesars Operating Escrow LLC, 9.00%, 2/15/20 (b)									1,556				1,536,550
Carlson Wagonlit BV, 6.88%, 6/15/19 (b)									510				532,950
Cirsa Funding Luxembourg SA, 8.75%, 5/15/18					EUR				714				913,519
Diamond Resorts Corp., 12.00%, 8/15/18					USD				1,860				2,046,000
El Dorado Resorts LLC, 8.63%, 6/15/19 (b)									210				208,688
Enterprise Inns Plc, 6.50%, 12/06/18					GBP				501				746,741
Gategroup Finance Luxembourg SA, 6.75%, 3/01/19					EUR				455				611,846
Little Traverse Bay Bands of Odawa Indians, 9.00%, 8/31/20 (b)					USD				441				423,360
MCE Finance, Ltd., 5.00%, 2/15/21 (b)									1,044				1,044,000
MTR Gaming Group, Inc., 11.50%, 8/01/19 (f)									231				240,396
Regal Entertainment Group, 5.75%, 2/01/25									401				392,980
Six Flags Entertainment Corp., 5.25%, 1/15/21 (b)									918				899,640
Station Casinos LLC:
3.66%, 6/18/18									1,037				1,037,000
7.50%, 3/01/21 (b)(g)									1,810				1,821,312
Travelport LLC (c):
4.91%, 9/01/14									235				213,850
6.31%, 12/01/16 (b)(f)									669				607,492
Tropicana Entertainment LLC, 9.63%, 12/15/14 (a)(j)									515				—
The Unique Pub Finance Co. Plc, Series A3, 6.54%, 3/30/21					GBP				200				302,652
Wynn Las Vegas LLC, 5.38%, 3/15/22					USD				605				636,006
													15,023,107
Household Durables — 2.6%
Algeco Scotsman Global Finance Plc, 9.00%, 10/15/18					EUR				206				279,701
Ashton Woods USA LLC, 6.88%, 2/15/21 (b)					USD				352				353,760
Beazer Homes USA, Inc., 6.63%, 4/15/18									55				58,781

Corporate Bonds								Par (000)				Value
Household Durables (concluded)
Brookfield Residential Properties, Inc., 6.50%, 12/15/20 (b)					USD				635			$	673,100
Jarden Corp., 7.50%, 1/15/20					EUR				455				640,062
K. Hovnanian Enterprises, Inc., 7.25%, 10/15/20 (b)					USD				1,465				1,611,500
Libbey Glass, Inc., 6.88%, 5/15/20									945				1,013,512
PH Holding LLC, 9.75%, 12/31/17									535				524,300
Pulte Group, Inc., 6.38%, 5/15/33									290				294,350
The Ryland Group, Inc., 6.63%, 5/01/20									525				577,500
Spie BondCo 3 SCA, 11.00%, 8/15/19					EUR				264				384,302
Standard Pacific Corp.:
10.75%, 9/15/16					USD				2,185				2,720,325
8.38%, 1/15/21									1,510				1,793,125
United Rentals North America, Inc., 5.75%, 7/15/18									398				428,348
William Lyon Homes, Inc., 8.50%, 11/15/20 (b)									470				505,250
													11,857,916
Household Products — 0.8%
Ontex IV SA:
7.50%, 4/15/18					EUR				100				135,777
7.50%, 4/15/18 (b)									220				298,710
9.00%, 4/15/19									316				422,867
Spectrum Brands Escrow Corp. (b):
6.38%, 11/15/20					USD				592				629,740
6.63%, 11/15/22									385				414,838
Spectrum Brands, Inc.:
9.50%, 6/15/18									1,470				1,666,612
6.75%, 3/15/20 (b)									148				159,470
													3,728,014
Independent Power Producers & Energy Traders — 3.7%
The AES Corp., 7.38%, 7/01/21									425				480,250
Calpine Corp. (b):
7.25%, 10/15/17									247				262,746
7.50%, 2/15/21									144				156,600
7.88%, 1/15/23									612				677,790
Energy Future Intermediate Holding Co. LLC:
6.88%, 8/15/17 (b)									1,170				1,234,350
10.00%, 12/01/20									3,696				4,194,960
10.00%, 12/01/20 (b)									2,210				2,491,775
GenOn REMA LLC:
Series B, 9.24%, 7/02/17									375				412,970
Series C, 9.68%, 7/02/26									465				506,850
Laredo Petroleum, Inc.:
9.50%, 2/15/19									765				864,450
7.38%, 5/01/22									575				623,875
NRG Energy, Inc.:
7.63%, 1/15/18									2,345				2,687,956
6.63%, 3/15/23 (b)									1,010				1,075,650
QEP Resources, Inc.:
5.38%, 10/01/22									513				537,368
5.25%, 5/01/23									395				408,825
													16,616,415
Industrial Conglomerates — 0.2%
Sequa Corp., 7.00%, 12/15/17 (b)									890				896,675
Insurance — 0.6%
Alliant Holdings I, Inc., 7.88%, 12/15/20 (b)									1,731				1,739,655
CNO Financial Group, Inc., 6.38%, 10/01/20 (b)									346				366,760
MPL 2 Acquisition Canco, Inc., 9.88%, 8/15/18 (b)									395				391,050
TMF Group Holding B.V., 9.88%, 12/01/19					EUR				270				356,023
													2,853,488
Internet Software & Services — 0.1%
Cerved Technologies SpA:
6.38%, 1/15/20									100				129,902
8.00%, 1/15/21									100				126,965
Equinix, Inc., 4.88%, 4/01/20					USD				229				229,000
													485,867

See Notes to Financial Statements.

52

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

Consolidated Schedule of Investments (continued)	BlackRock Corporate High Yield Fund VI, Inc. (HYT) (Percentages shown are based on Net Assets)

Corporate Bonds								Par (000)				Value
IT Services — 3.3%
Ceridian Corp., 8.88%, 7/15/19 (b)					USD				1,945			$	2,192,987
Epicor Software Corp., 8.63%, 5/01/19									860				926,650
First Data Corp.:
7.38%, 6/15/19 (b)									2,430				2,554,537
8.88%, 8/15/20 (b)									830				917,150
6.75%, 11/01/20 (b)									2,927				3,003,834
8.25%, 1/15/21 (b)									190				194,275
11.25%, 1/15/21 (b)									766				781,320
12.63%, 1/15/21									1,244				1,326,415
SunGard Data Systems, Inc.:
7.38%, 11/15/18									840				901,950
6.63%, 11/01/19 (b)									1,240				1,274,100
WEX, Inc., 4.75%, 2/01/23 (b)									759				734,333
													14,807,551
Machinery — 1.6%
Dematic SA, 7.75%, 12/15/20 (b)									144				147,240
The Manitowoc Co., Inc., 5.88%, 10/15/22									735				753,375
Silver II Borrower/Silver II US Holdings LLC, 7.75%, 12/15/20 (b)									434				451,360
SPX Corp., 6.88%, 9/01/17									275				307,313
Terex Corp., 6.00%, 5/15/21									730				757,375
Trinseo Materials Operating SCA, 8.75%, 2/01/19 (b)									634				631,622
UR Merger Sub Corp.:
7.38%, 5/15/20									675				739,125
7.63%, 4/15/22									2,939				3,254,942
6.13%, 6/15/23									295				309,750
													7,352,102
Media — 10.1%
Affinion Group, Inc., 7.88%, 12/15/18									612				465,120
AMC Networks, Inc.:
7.75%, 7/15/21									350				397,250
4.75%, 12/15/22									552				549,930
Cablevision Systems Corp., 5.88%, 9/15/22									855				829,350
CCO Holdings LLC:
5.25%, 9/30/22									1,210				1,190,337
5.13%, 2/15/23									955				931,125
Cengage Learning Acquisitions, Inc., 11.50%, 4/15/20 (b)									1,026				810,540
Checkout Holding Corp., 11.47%, 11/15/15 (b)(e)									667				492,746
Cinemark USA, Inc.:
8.63%, 6/15/19									390				432,413
5.13%, 12/15/22 (b)									328				329,640
Clear Channel Communications, Inc., 9.00%, 12/15/19 (b)									1,153				1,072,290
Clear Channel Worldwide Holdings, Inc.:
6.50%, 11/15/22 (b)									959				1,002,155
6.50%, 11/15/22 (b)									2,589				2,724,922
Series B, 7.63%, 3/15/20									1,753				1,814,355
DISH DBS Corp.:
5.88%, 7/15/22									1,575				1,661,625
5.00%, 3/15/23 (b)									1,045				1,037,163
Harron Communications LP, 9.13%, 4/01/20 (b)									500				550,000
Intelsat Jackson Holdings SA:
7.25%, 10/15/20									1,085				1,163,662
6.63%, 12/15/22 (b)									312				314,340
Intelsat Luxembourg SA:
11.25%, 2/04/17									950				1,009,375
11.50%, 2/04/17									3,480				3,702,329
Interactive Data Corp., 10.25%, 8/01/18									2,080				2,358,200
The Interpublic Group of Cos., Inc., 10.00%, 7/15/17									525				566,344
Kabel Deutschland Vertrieb und Service GmbH & Co. KG, 6.50%, 6/29/18 (b)					EUR				530				740,931
Live Nation Entertainment, Inc., 8.13%, 5/15/18 (b)					USD				1,170				1,269,450
Lynx I Corp., 6.00%, 4/15/21					GBP				1,876				2,924,251
Lynx II Corp., 6.38%, 4/15/23 (b)					USD				300				310,875

Corporate Bonds								Par (000)				Value
Media (concluded)
The McClatchy Co., 9.00%, 12/15/22 (b)					USD				670			$	708,525
NAI Entertainment Holdings LLC, 8.25%, 12/15/17 (b)									914				996,260
Nara Cable Funding Ltd.:
8.88%, 12/01/18					EUR				190				260,457
8.88%, 12/01/18 (b)					USD				200				206,500
Nielsen Finance LLC:
11.63%, 2/01/14									147				160,598
7.75%, 10/15/18									1,825				2,021,187
Odeon & UCI Finco Plc, 9.00%, 8/01/18 (b)					GBP				324				511,185
ProQuest LLC, 9.00%, 10/15/18 (b)					USD				281				278,893
Sterling Entertainment Corp., 10.00%, 12/15/19									1,335				1,335,000
Unitymedia GmbH:
9.63%, 12/01/19 (b)					EUR				900				1,300,131
9.50%, 3/15/21									548				814,601
Unitymedia Hessen GmbH & Co. KG:
7.50%, 3/15/19									1,313				1,864,178
5.50%, 1/15/23 (b)					USD				795				802,950
Univision Communications, Inc., 6.75%, 9/15/22 (b)									694				749,520
UPCB Finance II Ltd.:
6.38%, 7/01/20					EUR				514				711,316
6.38%, 7/01/20 (b)									1,273				1,761,682
WaveDivision Escrow LLC/WaveDivision Escrow Corp., 8.13%, 9/01/20 (b)					USD				555				582,750
Ziggo Bond Co. BV, 8.00%, 5/15/18 (b)					EUR				280				394,798
													46,111,249
Metals & Mining — 4.8%
ArcelorMittal:
9.50%, 2/15/15					USD				470				530,512
4.25%, 8/05/15									608				629,489
4.25%, 3/01/16									200				206,000
5.00%, 2/25/17									648				674,244
6.13%, 6/01/18									645				695,502
6.00%, 3/01/21									91				96,576
6.75%, 2/25/22									762				839,044
7.50%, 10/15/39									94				97,446
7.25%, 3/01/41									357				356,108
Eco-Bat Finance Plc, 7.75%, 2/15/17					EUR				610				822,268
FMG Resources August 2006 Property Ltd. (b):
6.38%, 2/01/16					USD				684				713,383
6.00%, 4/01/17									746				777,705
Global Brass and Copper, Inc., 9.50%, 6/01/19 (b)									460				500,250
GoldCorp, Inc., 2.00%, 8/01/14 (d)									1,650				1,728,375
Kaiser Aluminum Corp., 8.25%, 6/01/20									345				385,538
New Gold, Inc. (b):
7.00%, 4/15/20									235				253,800
6.25%, 11/15/22									465				489,412
New World Resources NV:
7.88%, 5/01/18					EUR				349				467,246
7.88%, 1/15/21									370				446,824
Newmont Mining Corp., Series A, 1.25%, 7/15/14 (d)					USD				2,275				2,512,453
Novelis, Inc., 8.75%, 12/15/20									4,760				5,331,200
Peninsula Energy Ltd.,11.00%, 12/14/14									900				900,000
Perstorp Holding AB, 8.75%, 5/15/17 (b)									295				309,750
Schmolz + Bickenbach Luxembourg SA, 9.88%, 5/15/19					EUR				383				447,673
Steel Dynamics, Inc., 6.38%, 8/15/22 (b)					USD				375				401,250
Taseko Mines Ltd., 7.75%, 4/15/19									650				646,750
Vedanta Resources Plc, 8.25%, 6/07/21 (b)									435				494,812
Walter Energy, Inc., 9.88%, 12/15/20 (b)									206				224,025
													21,977,635
Multiline Retail — 0.4%
Dollar General Corp., 4.13%, 7/15/17									1,225				1,295,438
Dufry Finance SCA, 5.50%, 10/15/20 (b)									672				700,560
													1,995,998

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

53

Consolidated Schedule of Investments (continued)	BlackRock Corporate High Yield Fund VI, Inc. (HYT) (Percentages shown are based on Net Assets)

Corporate Bonds								Par (000)				Value
Oil, Gas & Consumable Fuels — 9.1%
Access Midstream Partners LP:
6.13%, 7/15/22					USD				425			$	455,812
4.88%, 5/15/23									580				574,200
Alpha Appalachia Holdings, Inc., 3.25%, 8/01/15 (d)									1,381				1,317,992
Aurora USA Oil & Gas, Inc., 9.88%, 2/15/17 (b)									1,005				1,080,375
BreitBurn Energy Partners LP, 7.88%, 4/15/22									400				425,000
Carrizo Oil & Gas, Inc., 7.50%, 9/15/20									367				385,350
Chaparral Energy, Inc., 7.63%, 11/15/22									340				368,900
Chesapeake Energy Corp.:
7.25%, 12/15/18									190				214,700
6.63%, 8/15/20									270				295,650
6.88%, 11/15/20									275				302,500
6.13%, 2/15/21									130				137,800
Concho Resources, Inc.:
7.00%, 1/15/21									255				281,775
6.50%, 1/15/22									458				499,220
5.50%, 10/01/22									346				360,273
CONSOL Energy, Inc., 8.25%, 4/01/20									485				534,712
Continental Resources, Inc., 7.13%, 4/01/21									575				652,625
Crosstex Energy LP, 8.88%, 2/15/18									235				253,213
Crown Oil Partners IV LP, 15.00%, 3/07/15									948				996,332
CVR Refining LLC/Coffeyville Finance, Inc., 6.50%, 11/01/22 (b)									590				594,425
Denbury Resources, Inc., 4.63%, 7/15/23									1,187				1,164,744
Energy XXI Gulf Coast, Inc.:
9.25%, 12/15/17									725				819,250
7.75%, 6/15/19									830				890,175
EP Energy LLC/Everest Acquisition Finance, Inc.:
6.88%, 5/01/19									535				583,150
7.75%, 9/01/22									325				351,813
EV Energy Partners LP, 8.00%, 4/15/19									220				230,450
Halcon Resources Corp., 8.88%, 5/15/21 (b)									645				693,375
Hilcorp Energy I LP, 7.63%, 4/15/21 (b)									408				449,820
Holly Energy Partners LP, 6.50%, 3/01/20 (b)									245				262,150
Kodiak Oil & Gas Corp., 8.13%, 12/01/19									540				607,500
Linn Energy LLC:
6.50%, 5/15/19									66				68,310
6.25%, 11/01/19 (b)									1,840				1,876,800
8.63%, 4/15/20									170				188,063
7.75%, 2/01/21									245				264,600
MarkWest Energy Partners LP:
5.50%, 2/15/23									350				367,500
4.50%, 7/15/23									231				225,803
Newfield Exploration Co., 6.88%, 2/01/20									1,205				1,292,362
Northern Oil and Gas, Inc., 8.00%, 6/01/20									480				501,600
Oasis Petroleum, Inc.:
7.25%, 2/01/19									315				340,200
6.50%, 11/01/21									450				486,000
Offshore Group Investments Ltd., 11.50%, 8/01/15									1,070				1,166,300
PBF Holding Co. LLC, 8.25%, 2/15/20 (b)									345				375,187
PDC Energy, Inc., 7.75%, 10/15/22 (b)									325				343,688
PetroBakken Energy Ltd., 8.63%, 2/01/20 (b)									949				967,980
Petroleum Geo-Services ASA, 7.38%, 12/15/18 (b)									901				991,100
Plains Exploration & Production Co., 6.88%, 2/15/23									1,620				1,867,050
Range Resources Corp.:
8.00%, 5/15/19									600				660,000
5.75%, 6/01/21									1,571				1,673,115
5.00%, 8/15/22									593				606,342
Regency Energy Partners LP:
6.88%, 12/01/18									609				657,720
5.50%, 4/15/23									1,011				1,066,605
Sabine Pass Liquefaction LLC, 5.63%, 2/01/21 (b)									2,498				2,579,185
Sabine Pass Liquified Natural Gas LP:
7.50%, 11/30/16									2,345				2,591,225
6.50%, 11/01/20 (b)									505				532,775
SandRidge Energy, Inc., 7.50%, 2/15/23									809				847,427

Corporate Bonds								Par (000)				Value
Oil, Gas & Consumable Fuels (concluded)
SESI LLC:
6.38%, 5/01/19					USD				505			$	541,612
7.13%, 12/15/21									360				398,700
SM Energy Co.:
6.63%, 2/15/19									205				219,863
6.50%, 11/15/21									405				440,437
6.50%, 1/01/23									600				649,500
Tesoro Logistics LP/Tesoro Logistics Finance Corp., 5.88%, 10/01/20 (b)									240				250,200
Vanguard Natural Resources, 7.88%, 4/01/20									420				441,000
													41,261,530
Paper & Forest Products — 0.7%
Ainsworth Lumber Co. Ltd., 7.50%, 12/15/17 (b)									545				587,238
Boise Paper Holdings LLC:
9.00%, 11/01/17									90				97,313
8.00%, 4/01/20									180				198,450
Clearwater Paper Corp., 7.13%, 11/01/18									885				958,012
Longview Fibre Paper & Packaging, Inc., 8.00%, 6/01/16 (b)									535				561,750
NewPage Corp., 11.38%, 12/31/14 (a)(j)									3,095				—
Sappi Papier Holding GmbH, 8.38%, 6/15/19 (b)									200				224,000
Unifrax I LLC, 7.50%, 2/15/19 (b)									405				411,075
													3,037,838
Pharmaceuticals — 1.5%
Capsugel Finance Co. SCA:
9.88%, 8/01/19					EUR				105				154,218
9.88%, 8/01/19 (b)									300				440,623
Elan Corp. Plc, 6.25%, 10/15/19 (b)					USD				772				884,905
Jaguar Holding Co. II/Jaguar Merger Sub, Inc., 9.50%, 12/01/19 (b)									663				760,793
Mylan, Inc., 6.00%, 11/15/18 (b)									180				198,246
Valeant Pharmaceuticals International (b):
6.50%, 7/15/16									665				698,666
6.88%, 12/01/18									1,174				1,275,257
6.38%, 10/15/20									625				672,656
6.75%, 8/15/21									755				816,344
Warner Chilcott Co. LLC, 7.75%, 9/15/18									945				1,020,600
													6,922,308
Professional Services — 0.3%
La Financiere Atalian SA, 7.25%, 1/15/20					EUR				311				406,635
Truven Health Analytics, Inc., 10.63%, 6/01/20 (b)					USD				790				884,800
													1,291,435
Real Estate Investment Trusts (REITs) — 0.7%
Cantor Commercial Real Estate Co. LP, 7.75%, 2/15/18 (b)									436				438,180
Felcor Lodging LP:
6.75%, 6/01/19									1,578				1,695,364
5.63%, 3/01/23 (b)									397				399,481
The Rouse Co. LP, 6.75%, 11/09/15									805				837,200
													3,370,225
Real Estate Management & Development — 2.5%
CBRE Services, Inc., 6.63%, 10/15/20									520				561,600
Country Garden Holdings Co. Ltd., 7.50%,1/10/23 (b)									237				245,888
Crescent Resources LLC/Crescent Ventures, Inc., 10.25%, 8/15/17 (b)									1,330				1,433,075
Forest City Enterprises, Inc., 7.63%, 6/01/15									687				685,282
Mattamy Group Corp., 6.50%, 11/15/20 (b)									580				577,825
Realogy Corp.:
11.50%, 4/15/17									605				645,081
12.00%, 4/15/17									155				165,463
7.88%, 2/15/19 (b)									3,160				3,436,500
7.63%, 1/15/20 (b)									785				885,087
9.00%, 1/15/20 (b)									510				585,225
Shea Homes LP, 8.63%, 5/15/19									2,125				2,358,750
													11,579,776

See Notes to Financial Statements.

54

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

Consolidated Schedule of Investments (continued)	BlackRock Corporate High Yield Fund VI, Inc. (HYT) (Percentages shown are based on Net Assets)

Corporate Bonds								Par (000)				Value
Road & Rail — 0.5%
The Hertz Corp.:
7.50%, 10/15/18					USD				855			$	934,087
6.75%, 4/15/19 (b)									450				484,875
7.38%, 1/15/21									675				744,188
Hertz Holdings Netherlands BV, 8.50%, 7/31/15					EUR				89				123,543
													2,286,693
Semiconductors & Semiconductor Equipment — 0.4%
Micron Technology, Inc., Series C, 2.38%, 5/01/32 (b)(d)					USD				412				458,608
NXP BV/NXP Funding LLC, 5.75%, 2/15/21 (b)									525				536,812
Spansion LLC, 7.88%, 11/15/17									890				938,950
													1,934,370
Software — 1.2%
IAC/InterActiveCorp, 4.75%, 12/15/22 (b)									650				635,375
Igloo Holdings Corp., 8.25%, 12/15/17 (b)(f)									454				465,350
Infor US, Inc., 9.38%, 4/01/19									2,370				2,660,325
Interface Security Systems Holdings, Inc., 9.25%, 1/15/18 (b)									229				233,008
Nuance Communications, Inc., 5.38%, 8/15/20 (b)									775				784,687
Sophia LP, 9.75%, 1/15/19 (b)									666				736,762
													5,515,507
Specialty Retail — 3.0%
Asbury Automotive Group, Inc., 8.38%, 11/15/20									565				629,975
Claire’s Stores, Inc., 9.00%, 3/15/19 (b)									1,348				1,496,280
House of Fraser Funding Plc:
8.88%, 8/15/18					GBP				222				356,992
8.88%, 8/15/18 (b)									439				705,944
Limited Brands, Inc.:
8.50%, 6/15/19					USD				1,255				1,537,375
5.63%, 2/15/22									250				264,375
Michaels Stores, Inc., 7.75%, 11/01/18									362				395,033
New Academy Finance Co., 8.00%, 6/15/18 (b)(f)									334				344,855
Party City Holdings, Inc., 8.88%, 8/01/20 (b)									1,559				1,695,412
Penske Automotive Group, Inc., 5.75%, 10/01/22 (b)									1,725				1,804,781
QVC, Inc.:
7.13%, 4/15/17 (b)									355				369,754
7.50%, 10/01/19 (b)									970				1,070,581
7.38%, 10/15/20 (b)									455				504,340
5.13%, 7/02/22									28				29,608
Sally Holdings LLC:
6.88%, 11/15/19									840				936,600
5.75%, 6/01/22									788				832,325
Sonic Automotive, Inc., 9.00%, 3/15/18									580				638,000
													13,612,230
Textiles, Apparel & Luxury Goods — 0.2%
Levi Strauss & Co., 6.88%, 5/01/22									675				733,219
Phillips-Van Heusen Corp., 4.50%, 12/15/22									390				384,637
													1,117,856
Trading Companies & Distributors — 0.7%
Ashtead Capital, Inc., 6.50%, 7/15/22 (b)									765				824,288
Doric Nimrod Air Finance Alpha Ltd., Series 2012-1 (b):
Class A, 5.13%, 11/30/24									1,200				1,290,000
Class B, 6.50%, 5/30/21									900				951,441
													3,065,729
Transportation Infrastructure — 0.2%
Aguila 3 SA, 7.88%, 1/31/18 (b)									665				704,900
Wireless Telecommunication Services — 4.3%
Cricket Communications, Inc., 7.75%, 10/15/20									914				932,280
Crown Castle International Corp., 5.25%, 1/15/23 (b)									1,732				1,775,300
Digicel Group Ltd. (b):
8.25%, 9/01/17									1,720				1,814,600
8.25%, 9/30/20									1,520				1,621,080
6.00%, 4/15/21 (g)									890				887,775
Corporate Bonds								Par (000)				Value
Wireless Telecommunication Services (concluded)
MetroPCS Wireless, Inc., 6.63%, 11/15/20					USD				1,069			$	1,118,441
NII Capital Corp., 7.63%, 4/01/21									539				377,300
Phones4u Finance Plc:
9.50%, 4/01/18					GBP				200				313,271
9.50%, 4/01/18 (b)									570				892,822
Sprint Capital Corp., 6.88%, 11/15/28					USD				2,366				2,389,660
Sprint Nextel Corp. (b):
9.00%, 11/15/18									3,728				4,622,720
7.00%, 3/01/20									2,315				2,708,550
													19,453,799
Total Corporate Bonds — 103.0%													468,754,016
Floating Rate Loan Interests (c)
Airlines — 1.1%
Delta Air Lines, Inc., Term Loan B, 4.50%, 4/20/17									650				655,396
Northwest Airlines, Inc., Term Loan:
2.32%, 3/10/17									1,110				1,033,136
2.32%, 3/10/17									2,009				1,870,653
1.70%, 9/10/18									912				814,234
1.70%, 9/10/18									904				807,091
													5,180,510
Auto Components — 1.3%
Federal-Mogul Corp.:
Term Loan B, 2.14%, 12/29/14									2,534				2,357,271
Term Loan C, 2.14%, 12/28/15									1,225				1,139,089
Schaeffler AG, Term Loan B2, 6.00%, 1/27/17									2,225				2,224,444
													5,720,804
Building Products — 0.1%
Wilsonart International Holdings LLC, Term Loan B, 5.50%, 10/31/19									655				661,877
Capital Markets — 0.6%
American Capital Holdings, Inc., Term Loan, 5.50%, 8/22/16									1,450				1,464,500
Nuveen Investments, Inc.:
Incremental Term Loan, 7.25%, 5/13/17									770				773,850
Second Lien Term Loan, 8.25%, 2/28/19									640				652,800
													2,891,150
Chemicals — 0.4%
INEOS US Finance LLC, 6 Year Term Loan, 6.50%, 5/04/18									588				599,736
US Coatings Acquisition, Inc.:
Term Loan, 4.75%, 2/03/20									1,090				1,103,232
Term Loan B, 5.25%, 2/03/20					EUR				115				151,667
													1,854,635
Commercial Services & Supplies — 0.4%
AWAS Finance Luxembourg Sarl, Term Loan B, 5.25%, 6/10/16					USD				686				691,233
Delos Aircraft, Inc., Term Loan 2, 4.75%, 4/12/16									975				980,684
													1,671,917
Communications Equipment — 1.4%
Alcatel-Lucent:
Term Loan C, 7.25%, 1/31/19									2,175				2,198,925
Term Loan D, 7.75%, 1/31/19					EUR				845				1,106,102
Avaya, Inc., Term Loan B5, 8.00%, 3/30/18					USD				195				196,465
Zayo Group LLC, Refinancing Term Loan B, 5.25%, 7/12/19									2,809				2,818,046
													6,319,538
Construction & Engineering — 0.7%
Safway Services LLC, Mezzanine Loan, 9.88%, 12/16/17									3,250				3,250,000
Construction Materials — 0.4%
HD Supply, Inc., Senior Debt B, 4.50%, 10/12/17									1,721				1,725,929

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

55

Consolidated Schedule of Investments (continued)	BlackRock Corporate High Yield Fund VI, Inc. (HYT) (Percentages shown are based on Net Assets)

Floating Rate Loan Interests (c)								Par (000)				Value
Consumer Finance — 1.4%
Springleaf Financial Funding Co., Term Loan, 5.50%, 5/10/17					USD				6,153			$	6,174,782
Diversified Consumer Services — 0.2%
Laureate Education, Inc., Extended Term Loan, 5.25%, 6/18/18									223				223,916
ServiceMaster Co., New Term Loan, 2.70%, 4/01/17									710				707,591
													931,507
Diversified Telecommunication Services — 0.8%
Level 3 Financing, Inc.:
2016 Term Loan B, 4.75%, 2/01/16									514				519,492
2019 Term Loan B, 5.25%, 8/01/19									420				424,288
Term Loan, 4.75%, 8/01/19									2,700				2,721,600
													3,665,380
Energy Equipment & Services — 1.6%
Dynegy Midwest Generation LLC, Coal Co. Term Loan, 9.25%, 8/04/16									2,667				2,753,202
Dynegy Power LLC, Gas Co. Term Loan, 9.25%, 8/04/16									4,305				4,476,946
Tervita Corp., Incremental Term Loan, 6.50%, 5/01/18									225				226,161
													7,456,309
Food & Staples Retailing — 0.0%
Rite Aid Corp., Second Lien Term Loan, 5.75%, 7/07/20									165				168,759
Food Products — 0.1%
AdvancePierre Foods, Inc., Term Loan, 5.75%, 7/10/17									330				334,023
Health Care Equipment & Supplies — 0.5%
Bausch & Lomb, Inc., Term Loan B, 5.25%, 5/17/19									592				596,030
Capital Safety North America Holdings, Inc., Term Loan, 4.50%, 1/21/19									1,171				1,171,150
LHP Hospital Group, Inc., Term Loan, 9.00%, 7/03/18									433				442,563
													2,209,743
Health Care Providers & Services — 0.4%
Genesis HealthCare Corp., Term Loan B, 10.00%—10.75%, 9/25/17									294				288,560
Harden Healthcare LLC:
Add on Term Loan A, 7.75%, 3/02/15									617				604,193
Term Loan A, 8.50%, 3/02/15									478				473,526
inVentiv Health, Inc., Combined Term Loan, 7.50%, 8/04/16									576				566,604
													1,932,883
Hotels, Restaurants & Leisure — 3.1%
Caesars Entertainment Operating Co., Inc.:
Term Loan B1, 3.20%, 1/28/15									804				801,187
Term Loan B3, 3.20%—3.31%, 1/28/15									39				39,018
Harrah’s Property Co., Mezzanine Term Loan, 3.69%, 2/13/14									8,410				7,737,200
MGM Resorts International, Term Loan B, 4.25%, 12/20/19									1,925				1,947,137
Station Casinos, Inc., Term Loan B:
5.50%, 9/27/19									1,596				1,605,305
5.00%, 2/13/20									1,550				1,562,916
Travelport Holdings Ltd.:
Extended Tranche A Term Loan, 6.40%, 12/01/16									308				108,841
Extended Tranche B Term Loan, 13.80%, 12/01/16									1,031				96,237
													13,897,841
Industrial Conglomerates — 0.2%
Sequa Corp., Term Loan B, 5.25%, 6/19/17									895				905,110
Floating Rate Loan Interests (c)								Par (000)				Value
Insurance — 0.1%
Alliant Holdings I, Inc., Term Loan B, 5.00%, 12/20/19					USD				520			$	523,900
IT Services — 0.3%
Ceridian Corp., Extended Term Loan, 5.95%, 5/09/17									107				107,816
First Data Corp., Extended 2018 Term Loan B, 4.20%, 3/23/18									1,220				1,204,628
													1,312,444
Leisure Equipment & Products — 0.1%
Eastman Kodak Co., DIP Term Loan B, 8.50%, 7/19/13									373				372,346
Life Sciences Tools & Services — 0.1%
Patheon, Inc., Term Loan, 7.25%, 12/06/18									319				322,791
Machinery — 0.7%
Rexnord Corp., Term Loan B, 4.50%, 4/02/18									911				916,501
Silver II US Holdings LLC, Term Loan, 5.00%, 12/05/19									2,400				2,400,000
													3,316,501
Media — 3.8%
Cengage Learning Acquisitions, Inc.:
Non-Extended Term Loan, 2.71%, 7/03/14									495				387,164
Tranche 1 Incremental, 7.50%, 7/03/14									2,526				2,008,369
Cequel Communications LLC, Term Loan B, 4.00%, 2/14/19									440				442,392
Clear Channel Communications, Inc.:
Term Loan B, 3.85%, 1/29/16									2,054				1,756,554
Term Loan C, 3.85%, 1/29/16									617				520,938
EMI Music Publishing Ltd., Term Loan B, 5.50%, 6/29/18									672				678,845
Getty Images, Inc., Term Loan B, 4.75%, 10/18/19									635				639,883
Intelsat Jackson Holdings SA, Term Loan B1, 4.50%, 4/02/18									8,412				8,490,792
Interactive Data Corp., Term Loan B, 3.75%, 2/11/18									635				635,411
Univision Communications, Inc., Extended Term Loan, 4.45%, 3/31/17									416				416,107
Virgin Media Investment Holdings Ltd., Term Loan B, 3.50%, 2/17/20									1,170				1,163,015
													17,139,470
Metals & Mining — 0.9%
Constellium Holdco BV, Term Loan B, 9.25%, 5/25/18									657				669,834
FMG America Finance, Inc., Term Loan, 5.25%, 10/18/17									3,461				3,502,792
													4,172,626
Multiline Retail — 0.4%
HEMA Holding BV, Mezzanine, 8.62%, 7/05/17 (f)					EUR				1,776				2,052,111
Oil, Gas & Consumable Fuels — 1.5%
Chesapeake Energy Corp., Unsecured Term Loan, 5.75%, 12/01/17					USD				3,435				3,506,207
Obsidian Natural Gas Trust, Term Loan, 7.00%, 11/02/15									1,308				1,321,565
Samson Investment Co., Second Lien Term Loan, 6.00%, 9/25/18									360				363,377
Vantage Drilling Co., Term Loan, 6.25%, 10/26/17									1,501				1,508,505
													6,699,654
Pharmaceuticals — 0.7%
Aptalis Pharma, Inc., Term Loan B, 5.50%, 2/10/17									1,470				1,472,940
Par Pharmaceutica, Term Loan B, 4.25%, 9/28/19									1,107				1,105,841
Pharmaceutical Product Development, Inc., Term Loan B, 4.25%, 12/05/18									485				487,432
													3,066,213
Professional Services — 0.1%
Truven Health Analytics, Inc., Term Loan B, 5.75%, 6/01/19									572				577,492

See Notes to Financial Statements.

56

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

Consolidated Schedule of Investments (continued)	BlackRock Corporate High Yield Fund VI, Inc. (HYT) (Percentages shown are based on Net Assets)

Floating Rate Loan Interests (c)								Par (000)				Value
Real Estate Investment Trusts (REITs) — 0.4%
iStar Financial, Inc., Term Loan, 4.50%, 9/28/17					USD				1,615			$	1,615,689
Real Estate Management & Development — 0.3%
Realogy Corp.:
Extended Letter of Credit, 4.46%, 10/10/16									138				138,243
Extended Term Loan, 4.42%, 10/10/16									1,173				1,172,668
													1,310,911
Road & Rail — 0.1%
Genesee & Wyoming, Inc., Term Loan A, 2.70%, 9/29/17									445				445,464
Semiconductors & Semiconductor Equipment — 0.1%
Freescale Semiconductor, Inc., Extended Term Loan B, 4.45%, 12/01/16									455				455,000
Software — 0.6%
GCA Services Group, Inc., Second Lien Term Loan, 9.25%, 10/22/20									90				89,100
Infor US, Inc., Term Loan B2, 5.25%, 4/05/18									1,895				1,916,015
Kronos, Inc., Second Lien Term Loan, 9.75%, 4/30/20									795				826,800
													2,831,915
Specialty Retail — 0.2%
David’s Bridal, Inc., Term Loan B, 5.00%, 10/11/19									835				843,559
Textiles, Apparel & Luxury Goods — 0.5%
Ascend Performance Materials LLC, Term Loan B, 6.75%, 4/10/18									1,737				1,754,244
PVH Corp., Term Loan B, 3.25%, 12/19/19									680				685,453
													2,439,697
Thrifts & Mortgage Finance — 0.2%
Ocwen Financial Corp., Term Loan, 5.00%, 1/22/18									940				951,355
Wireless Telecommunication Services — 0.9%
Vodafone Americas Finance 2, Inc., Term Loan B, 6.25%, 7/11/16 (f)									4,022				4,132,477
Total Floating Rate Loan Interests — 26.7%													121,534,312
Other Interests (a)(k)									Beneficial Interest (000)
Chemicals — 0.0%
Wellman Holdings, Inc., Litigation Trust Certificate									4,870				49
Hotels, Restaurants & Leisure — 0.0%
Buffets, Inc.									950				9
Media — 0.0%
Adelphia Escrow									1,300				13
Adelphia Recovery Trust									1,630				163
													176
Total Other Interests — 0.0%													234
Preferred Securities
Preferred Stocks									Shares
Auto Components — 0.5%
Dana Holding Corp., 4.00% (b)(d)									16,400				2,326,750

Preferred Stocks								Shares				Value
Thrifts & Mortgage Finance — 0.0%
Fannie Mae, Series O, 7.00% (a)(c)									40,000			$	154,000
Total Preferred Stocks — 0.5%													2,480,750
Trust Preferreds
Diversified Financial Services — 1.2%
GMAC Capital Trust I, Series 2, 8.13%, 2/15/40 (c)									198,960				5,262,437
Total Preferred Securities — 1.7%													7,743,187
Warrants (l)
Health Care Providers & Services — 0.0%
HealthSouth Corp. (Expires 1/16/14)									54,577				1
Media — 0.0%
New Vision Holdings LLC:
(Expires 9/30/14)									22,194				41,052
(Expires 9/30/14)									3,995				7,390
													48,442
Metals & Mining — 0.0%
Peninsula Energy, Ltd. (Expires 12/31/15)									6,113,638				93,672
Real Estate Investment Trusts (REITs) — 0.0%
Pepper Residential Securities Trust (Expires 12/31/15)									3,611,304				52,380
Software — 0.0%
Bankruptcy Management Solutions, Inc. (Expires 9/28/17)									525				—
HMH Holdings/EduMedia (issued/exercisable 3/09/10, 19 shares for 1 warrant, Expires 6/22/19, Strike Price $42.27)									1,835				—
													—
Total Warrants — 0.0%													194,495
Total Long-Term Investments
(Cost — $622,067,211) — 141.1%													642,597,774
Short-Term Securities
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.10% (m)(n)									4,840,770				4,840,770
Total Short-Term Securities
(Cost — $4,840,770) — 1.1%													4,840,770
Options Purchased
(Cost — $15,647) — 0.0%													3,320
Total Investments Before Options Written
(Cost — $626,923,628) — 142.2%													647,441,864
Options Written
(Premiums Received — $165,240) — (0.0)%													(84,883	)
Total Investments, Net of Options Written - 142.2%													647,356,981
Liabilities in Excess of Other Assets — (42.2)%													(192,208,778	)
Net Assets — 100.0%												$	455,148,203

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

57

Consolidated Schedule of Investments (continued)	BlackRock Corporate High Yield Fund VI, Inc. (HYT)

Notes to Consolidated Schedule of Investments

(a)				Non-income producing security.
(b)				Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(c)				Variable rate security. Rate shown is as of report date.
(d)				Convertible security.
(e)				Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(f)				Represents a payment-in-kind security which may pay interest/dividends in additional par/shares.
(g)				When-issued security. Unsettled when-issued transactions were as follows:

Counterparty				Value				Unrealized Appreciation (Depreciation)
Bank of America Corp.				$	181,125			$	1,028
Citigroup, Inc.				$	887,775			$	(2,225	)
Deutsche AG				$	1,484,219			$	8,425
Goldman Sachs & Co., Inc				$	688,500			$	9,122
Pershing LLC				$	319,168			$	3,047
Sun Trust Capital				$	173,400			$	2,297

(h)				All or a portion of security has been pledged as collateral in connection with swaps.
(i)				Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown is as of report date.
(j)				Issuer filed for bankruptcy and/or is in default of principal and/or interest payments.
(k)				Other interests represent beneficial interests in liquidation trusts and other reorganization or private entities.
(l)				Warrants entitle the Trust 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 of the warrants, if any.
(m)				Investments in issuers considered to be an affiliate of the Trust during the six months ended February 28, 2013, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliate				Shares Held at August 31, 2012				Net Activity				Shares Held at February 28, 2013				Income				Realized Gain
BlackRock Liquidity Funds, TempFund, Institutional Class				—				4,840,770				4,840,770				$ 872				$ 110

(n)				Represents the current yield as of report date.
•				For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Trust management. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.
•				Financial futures contracts as of February 28, 2013 were as follows:

Contracts  Sold

Issue

Exchange

Expiration

Notional Value

Unrealized  Depreciation

(77)

S&P 500 E-Mini Index

Chicago Mercantile

March 2013

USD

5,826,205

$  (98,075)

•

Foreign currency exchange contracts as of February 28, 2013 were as follows:

Currency Purchased									Currency Sold							Counterparty				Settlement Date					Unrealized Appreciation (Depreciation)
USD					809,981			AUD					781,000			Citigroup, Inc.				4/17/13				$	14,889
USD					6,948,175			CAD					6,855,000			Deutsche Bank AG				4/17/13					307,775
USD					2,954,951			GBP					1,910,000			Barclays Plc				4/17/13					58,063
USD					134,761			GBP					87,000			BNP Paribas SA				4/17/13					2,808
USD					179,331			GBP					111,000			BNP Paribas SA				4/17/13					10,978
USD					459,795			GBP					285,000			BNP Paribas SA				4/17/13					27,537
USD					9,371,232			GBP					5,850,000			Goldman Sachs Group, Inc.				4/17/13					498,563
USD					280,654			GBP					177,000			Royal Bank of Scotland Group Plc				4/17/13					12,199
EUR					389,000			USD					521,749			Westpac Banking Corp.				4/23/13					(13,704	)
USD					67,622			EUR					50,000			Citigroup, Inc.				4/23/13					2,320
USD					33,853,495			EUR					25,406,000			Citigroup, Inc.				4/23/13					672,510
USD					132,419			EUR					99,392			Deutsche Bank AG				4/23/13					2,610
USD					479,687			EUR					360,000			Goldman Sachs Group, Inc.				4/23/13					9,517
USD					98,520			EUR					73,000			Royal Bank of Scotland Group Plc				4/23/13					3,180
Total																								$	1,609,245

See Notes to Financial Statements.

58

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

Consolidated Schedule of Investments (continued)	BlackRock Corporate High Yield Fund VI, Inc. (HYT)

•

Exchange-traded options purchased as of February 28, 2013 were as follows:

Description

Put/Call

Strike Price

Expiration Date

Contracts

Market Value

Life Technologies Corp.

Call

USD

70.00

3/16/13

166

$

3,320

•

Over-the-counter credit default swaptions written as of February 28, 2013 were as follows:

Description

Counterparty

Put/ Call

Strike Price

Pay/Receive Floating Rate Index

Floating Rate Index

Credit  Rating1

Expiration Date

Notional Amount (000)2

Market Value

Sold Protection on 5-Year Credit Default Swap

Credit Suisse Group AG

Call

USD

103.50

Receive

Dow Jones CDX North America High Yield, Series 19, Verison 1

B+

6/19/13

USD

6,800

$

(36,746

)

Sold Protection on 5-Year Credit Default Swap

Credit Suisse Group AG

Put

USD

97.50

Pay

Dow Jones CDX North America High Yield, Series 19, Verison 1

B+

6/19/13

USD

6,800

(48,137

)

Total

$

(84,883

)

•

Credit default swaps — buy protection outstanding as of February 28, 2013 were as follows:

Issuer				Pay Fixed Rate				Counterparty				Expiration Date				Notional Amount (000)								Unrealized Depreciation
State of Israel				1.00%				Deutsche Bank AG				3/20/17				USD					1,050			$	(41,360	)
State of Israel				1.00%				Deutsche Bank AG				3/20/17				USD					350				(13,579	)
Beazer Homes USA, Inc.				5.00%				JPMorgan Chase & Co.				12/20/17				USD					100				(1,642	)
Total																								$	(56,581	)

•

Credit default swaps — sold protection outstanding as of February 28, 2013 were as follows:

Issuer

Receive Fixed Rate

Counterparty

Expiration Date

Credit  Rating3

Notional Amount (000)2

Unrealized Appreciation (Depreciation)

Caesars Entertainment Operating Co., Inc.

5.00%

JPMorgan Chase & Co.

12/20/15

CCC

USD

117

$

14,244

Caesars Entertainment Operating Co., Inc.

5.00%

JPMorgan Chase & Co.

12/20/15

CCC

USD

422

71,137

Caesars Entertainment Operating Co., Inc.

5.00%

JPMorgan Chase & Co.

12/20/15

CCC

USD

468

52,653

ARAMARK Corp.

5.00%

Goldman Sachs Group, Inc.

3/20/16

B-

USD

750

60,215

Caesars Entertainment Operating Co., Inc.

5.00%

Goldman Sachs Group, Inc.

3/20/16

CCC

USD

170

13,213

Caesars Entertainment Operating Co., Inc.

5.00%

Goldman Sachs Group, Inc.

3/20/16

CCC

USD

170

13,213

Caesars Entertainment Operating Co., Inc.

5.00%

Goldman Sachs Group, Inc.

3/20/16

CCC

USD

113

5,788

Caesars Entertainment Operating Co., Inc.

5.00%

Goldman Sachs Group, Inc.

3/20/16

CCC

USD

558

547

Caesars Entertainment Operating Co., Inc.

5.00%

Goldman Sachs Group, Inc.

3/20/16

CCC

USD

506

32,569

Caesars Entertainment Operating Co., Inc.

5.00%

JPMorgan Chase & Co.

3/20/16

CCC

USD

66

2,395

ARAMARK Corp.

5.00%

Goldman Sachs Group, Inc.

6/20/16

B-

USD

475

38,458

ARAMARK Corp.

5.00%

Goldman Sachs Group, Inc.

6/20/16

B-

USD

475

40,752

Caesars Entertainment Operating Co., Inc.

5.00%

Goldman Sachs Group, Inc.

6/20/16

CCC

USD

1,184

63,566

Caesars Entertainment Operating Co., Inc.

5.00%

Goldman Sachs Group, Inc.

6/20/16

CCC

USD

190

843

Caesars Entertainment Operating Co., Inc.

5.00%

Goldman Sachs Group, Inc.

6/20/16

CCC

USD

345

20,332

Caesars Entertainment Operating Co., Inc.

5.00%

Goldman Sachs Group, Inc.

6/20/16

CCC

USD

660

32,783

ARAMARK Corp.

5.00%

Credit Suisse Group AG

9/20/16

B-

USD

200

22,343

ARAMARK Corp.

5.00%

Deutsche Bank AG

3/20/17

B-

USD

305

22,328

Caesars Entertainment Operating Co., Inc.

5.00%

Goldman Sachs Group, Inc.

3/20/17

CCC

USD

372

11,712

Caesars Entertainment Operating Co., Inc.

5.00%

Goldman Sachs Group, Inc.

3/20/17

CCC

USD

217

2,697

Caesars Entertainment Operating Co., Inc.

5.00%

Goldman Sachs Group, Inc.

3/20/17

CCC

USD

312

(2,376

)

Crown Castle International Corp.

7.25%

Deutsche Bank AG

3/20/17

B-

USD

720

124,628

CCO Holdings LLC

8.00%

Deutsche Bank AG

9/20/17

BB-

USD

2,400

580,278

Level 3 Communications, Inc.

5.00%

Goldman Sachs Group, Inc.

6/20/19

CCC

USD

1,600

125,091

Total

$

1,349,409

1

Using S&P’s rating of the underlying securities of the index.

2

The maximum potential amount the Trust may pay should a negative credit event take place as defined under the terms of the agreement.

3

Using S&P’s rating of the issuer.

•

Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for consolidated financial statement purposes as follows:

•

Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the Trust has the ability to access

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

59

Consolidated Schedule of Investments (continued)	BlackRock Corporate High Yield Fund VI, Inc. (HYT)

•				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 Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust’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 Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy as of February 28, 2013:

				Level 1				Level 2				Level 3				Total
Assets:
Investments:
Long-Term Investments:
Common Stocks				$	33,165,519			$	2,552,779			$	8,653,232			$	44,371,530
Corporate Bonds					—				463,753,924				5,000,092				468,754,016
Floating Rate Loan Interests					—				99,592,860				21,941,452				121,534,312
Other Interests					163				—				71				234
Preferred Securities					5,416,437				2,326,750				—				7,743,187
Warrants					93,672				—				100,823				194,495
Short-Term Securities					4,840,770				—				—				4,840,770
Options Purchased:
Equity Contracts					3,320				—				—				3,320
Total				$	43,519,881			$	568,226,313			$	35,695,670			$	647,441,864

				Level 1				Level 2				Level 3				Total
Derivative Financial Instruments1
Assets:
Credit contracts					—			$	1,351,785				—			$	1,351,785
Foreign currency exchange contracts					—				1,622,949				—				1,622,949
Liabilities:
Credit contracts					—				(143,840	)			—				(143,840	)
Equity contracts				$	(98,075	)			—				—				(98,075	)
Foreign currency exchange contracts					—				(13,704	)			—				(13,704	)
Total				$	(98,075	)		$	2,817,190				—			$	2,719,115

1

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

Certain of the Trust’s assets and liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of February 28, 2013, such assets and liabilities are categorized within the disclosure hierarchy as follows:

				Level 1				Level 2				Level 3				Total
Assets:
Foreign currency at value				$	317,411				—				—			$	317,411
Cash pledged as collateral for financial futures contracts					324,000				—				—				324,000
Cash pledged as collateral for swaps					400,000				—				—				400,000
Liabilities:
Bank overdraft					—			$	(307,820	)			—				(307,820	)
Cash held as collateral for swaps					—				(1,200,000	)			—				(1,200,000	)
Loan payable					—				(178,000,000	)			—				(178,000,000	)
Total				$	1,041,411			$	(179,507,820	)			—			$	(178,466,409	)

There were no transfers between Level 1 and Level 2 during the six months ended February 28, 2013.

See Notes to Financial Statements.

60

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

Consolidated Schedule of Investments (continued)	BlackRock Corporate High Yield Fund VI, Inc. (HYT)

A reconciliation of Level 3 investments and derivative financial instruments is presented when the Trust had a significant amount of Level 3 investments and derivative financial instruments at the beginning and/or end of the period in relation to net assets. The following table is a reconciliation of Level 3 investments for which significant unobservable inputs were used in determining fair value:

				Common Stocks				Corporate Bonds				Floating Rate Loan Interests				Other Interests				Warrants				Total
Assets:
Opening Balance, as of August 31, 2012				$	7,005,140			$	4,924,921			$	19,461,069			$	71			$	1			$	31,391,202
Transfers into Level 31					15,812				2,269,625				2,470,993				—				—				4,756,430
Transfers out of Level 32					—				—				(2,245,765	)			—				—				(2,245,765	)
Accrued discounts/premiums					—				(15,394	)			60,872				—				—				45,478
Net realized gain (loss)					—				11,264				(118,542	)			—				—				(107,278	)
Net change in unrealized appreciation/depreciation3					800,479				(2,291,902	)			1,226,432				—				100,822				(164,169	)
Purchases					831,801				3,947,719				7,770,453				—				—				12,549,973
Sales					—				(3,846,141	)			(6,684,060	)							—				(10,530,201	)
Closing Balance, as of February 28, 2013				$	8,653,232			$	5,000,092			$	21,941,452			$	71			$	100,823			$	35,695,670

1

As of August 31, 2012, the Trust used observable inputs in determining the value of certain investments. As of February 28, 2013, the Trust used significant unobservable inputs in determining the value of the same investments. As a result, investments with a beginning of period value of $4,756,430 transferred from Level 2 to Level 3 in the disclosure hierarchy.

2

As of August 31, 2012, the Trust used significant unobservable inputs in determining the value of certain investments. As of February 28, 2013, the Trust used observable inputs in determining the value of the same investments. As a result, investments with a beginning of period value of $2,245,765 transferred from Level 3 to Level 2 in the disclosure hierarchy.

3

Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations. The change in unrealized appreciation/depreciation on investments still held as of February 28, 2013 was $870,743.

The following table is a reconciliation of Level 3 derivative financial instruments for which significant unobservable inputs were used in determining fair value:

				Credit Contracts
Assets:
Opening Balance, as of August 31, 2012				$	869,356
Transfers into Level 34					—
Transfers out of Level 34					(205,779	)
Accrued discounts/premiums					—
Net realized gain (loss)					—
Net change in unrealized appreciation/depreciation5					(663,577	)
Purchases					—
Issues6					—
Sales					—
Settlements7					—
Closing Balance, as of February 28, 2013					—

4

Transfers into and transfers out of Level 3 represent the values as of the beginning of the reporting period.

5

Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations.

6

Issues represent upfront cash received on certain derivative financial instruments.

7

Settlements represent periodic contractual cash flows and/or cash flows to terminate certain derivative financial instruments.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

61

Consolidated Schedule of Investments (concluded)	BlackRock Corporate High Yield Fund VI, Inc. (HYT)

The following table summarizes the valuation techniques used and unobservable inputs developed by the Global Valuation Committee to determine the value of certain of the Trust’s Level 3 investments as of February 28, 2013. The table does not include Level 3 investments with values derived utilizing third party pricing information without adjustment. A significant change in third party pricing information could result in a significantly lower or higher value of such Level 3 investments. The value of Level 3 investments derived using third party pricing information is $19,957,170.

Value

Valuation Techniques

Unobservable Inputs1

Range of Unobservable Inputs Utilized

Assets:

Common Stocks

$

7,147,761

Market Comparable Companies

EBITDA Multiple

6.56x

Enterprise Value/Oil Barrel Multiple

CAD2  0.44x

365,274

Restructure Terms3

N/A

—

Corporate Bonds

996,332

Discounted Cash Flow

Yield

12%

2,759,300

Cost4

N/A

—

Floating Rate Loan Interests

1,077,719

Discounted Cash Flow

Yield

9.50%

3,250,000

Cost4

N/A

—

Warrant

48,442

Discounted Vendor Price

Distribution Rate

0.51639

93,672

Black-Sholes

Implied Volatility

90%

Total

$

15,738,500

1

A change to the unobservable input may result in a significant change to the value of the investment as follows:

Unobservable Input				Impact to Value if Input Increases				Impact to Value if Input Decreases
EBITDA Multiple				Increase				Decrease
Enterprise Value/Oil Barrel Multiple				Increase				Decrease
Yield				Decrease				Increase
Distribution Rate				Decrease				Increase
Implied Volatility				Increase				Decrease

2

Canadian Dollar.

3

Investment is valued based on the company’s financial restructuring plan.

4

The Trust fair values certain of its Level 3 investments using prior transaction prices (acquisition cost), although the transaction may not have occurred during the current reporting period. In such cases, these investments are generally privately held investments. There may not be a secondary market, and/or there are a limited number of investors. The determination to fair value such investments at cost is based upon factors consistent with the principles of fair value measurement that are reasonably available to the Global Valuation Committee, or its delegate. Valuations are reviewed utilizing available market information to determine if the carrying value should be adjusted. Such market data may include, but is not limited to, observations of the trading multiples of public companies considered comparable to the private companies being valued, financial or operational information released by the company, and/or news or corporate events that affect the investment. Valuations may be adjusted to account for company-specific issues, the lack of liquidity inherent in a nonpublic investment and the fact that comparable public companies are not identical to the investments being fair valued by the Trust.

See Notes to Financial Statements.

62

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

Schedule of Investments February 28, 2013 (Unaudited)	BlackRock High Income Shares (HIS) (Percentages shown are based on Net Assets)

Common Stocks								Shares				Value
Diversified Financial Services — 0.7%
Kcad Holdings I Ltd. (a)									128,137,634			$	864,928
Diversified Telecommunication Services — 0.1%
Broadview Networks Holdings, Inc. (a)									15,600				104,364
Hotels, Restaurants & Leisure — 0.0%
Travelport LLC (a)									35,081				351
Paper & Forest Products — 0.3%
NewPage Corp. (a)									3,980				338,300
Software — 0.1%
Bankruptcy Management Solutions, Inc. (a)									251				3
HMH Holdings/EduMedia (a)									9,409				172,491
													172,494
Total Common Stocks — 1.2%													1,480,437
Corporate Bonds									Par (000	)
Aerospace & Defense — 0.9%
Bombardier, Inc., 4.25%, 1/15/16 (b)					USD				265				274,938
Huntington Ingalls Industries, Inc.:
6.88%, 3/15/18									100				108,938
7.13%, 3/15/21									125				136,250
Kratos Defense & Security Solutions, Inc., 10.00%, 6/01/17									398				439,292
Spirit Aerosystems, Inc., 7.50%, 10/01/17									147				155,820
													1,115,238
Air Freight & Logistics — 0.4%
National Air Cargo Group, Inc.:
Series 1, 12.38%, 9/02/15									257				258,367
Series 2, 12.38%, 8/16/15									260				261,594
													519,961
Airlines — 1.5%
American Airlines Pass-Through Trust, Series 2011-2, Class A, 8.63%, 10/15/21									309				321,675
Continental Airlines Pass-Through Trust:
Series 2010-1, Class B, 6.00%, 1/12/19									163				168,071
Series 2012-3, Class C, 6.13%, 4/29/18									405				403,987
Delta Air Lines Pass-Through Trust:
Series 2002-1, Class G-1, 6.72%, 1/02/23									261				289,307
Series 2009-1, Class B, 9.75%, 12/17/16									90				99,811
US Airways Pass-Through Trust:
Series 2011-1, Class C, 10.88%, 10/22/14									254				268,365
Series 2012-1, Class C, 9.13%, 10/01/15									186				199,020
Series 2012-2, Class B, 6.75%, 6/03/21									150				156,750
													1,906,986
Auto Components — 1.8%
Dana Holding Corp., 6.75%, 2/15/21									200				217,750
Delphi Corp.:
6.13%, 5/15/21									35				38,150
5.00%, 2/15/23									65				67,681
Icahn Enterprises LP, 8.00%, 1/15/18									1,510				1,617,588
IDQ Holdings, Inc., 11.50%, 4/01/17 (b)									155				169,725
Titan International, Inc., 7.88%, 10/01/17									190				203,775
													2,314,669
Beverages — 0.2%
Crown European Holdings SA:
7.13%, 8/15/18 (b)					EUR				114				161,111
7.13%, 8/15/18									50				70,663
													231,774
Building Products — 1.1%
Building Materials Corp. of America (b):
7.00%, 2/15/20					USD				430				465,475
6.75%, 5/01/21									350				375,812

Corporate Bonds								Par (000)				Value
Building Products (concluded)
Momentive Performance Materials, Inc., 8.88%, 10/15/20					USD				155			$	159,069
USG Corp., 9.75%, 1/15/18									315				370,519
													1,370,875
Capital Markets — 0.6%
E*Trade Financial Corp., Series A, 0.00%, 8/31/19 (c)(d)									295				308,460
KKR Group Finance Co. LLC, 6.38%, 9/29/20 (b)									200				235,195
Nuveen Investments, Inc., 9.13%, 10/15/17 (b)									209				210,045
													753,700
Chemicals — 3.3%
Axiall Corp., 4.88%, 5/15/23 (b)									76				77,140
Celanese US Holdings LLC, 5.88%, 6/15/21									632				690,460
Eagle Spinco, Inc., 4.63%, 2/15/21 (b)									163				165,649
Huntsman International LLC, 8.63%, 3/15/21									80				90,400
INEOS Finance Plc, 7.50%, 5/01/20 (b)									195				210,112
Kraton Polymers LLC, 6.75%, 3/01/19									55				57,200
LyondellBasell Industries NV, 5.75%, 4/15/24									1,210				1,406,625
Nexeo Solutions LLC, 8.38%, 3/01/18									40				39,100
Nufarm Australia Ltd., 6.38%, 10/15/19 (b)									100				106,000
Orion Engineered Carbons Bondco GmbH (FKA Kinove German Bondco GmbH), 10.00%, 6/15/18					EUR				148				213,896
PolyOne Corp., 7.38%, 9/15/20					USD				100				110,750
Rockwood Specialties Group, Inc., 4.63%, 10/15/20									325				336,375
Tronox Finance LLC, 6.38%, 8/15/20 (b)									644				639,975
													4,143,682
Commercial Banks — 1.8%
CIT Group, Inc.:
5.25%, 3/15/18									1,440				1,548,000
6.63%, 4/01/18 (b)									285				323,475
5.50%, 2/15/19 (b)									240				261,000
5.00%, 8/15/22									210				224,700
													2,357,175
Commercial Services & Supplies — 2.0%
ADS Waste Holdings, Inc., 8.25%, 10/01/20 (b)									122				131,150
ARAMARK Corp., 5.75%, 3/15/20 (b)(e)									282				287,640
ARAMARK Holdings Corp., 8.63%, 5/01/16 (b)(e)(f)									190				193,802
Aviation Capital Group Corp., 6.75%, 4/06/21 (b)									230				248,939
AWAS Aviation Capital Ltd., 7.00%, 10/17/16 (b)									162				169,680
Brickman Group Holdings, Inc., 9.13%, 11/01/18 (b)									9				9,675
Casella Waste Systems, Inc., 7.75%, 2/15/19									25				23,938
Catalent Pharma Solutions, Inc., 7.88%, 10/15/18 (b)									270				273,375
Clean Harbors, Inc., 5.25%, 8/01/20									233				239,990
Covanta Holding Corp., 6.38%, 10/01/22									280				303,614
HDTFS, Inc. (b):
5.88%, 10/15/20									40				41,600
6.25%, 10/15/22									115				123,625
Mead Products LLC/ACCO Brands Corp., 6.75%, 4/30/20 (b)									34				35,998
Mobile Mini, Inc., 7.88%, 12/01/20									165				183,562
RSC Equipment Rental, Inc., 8.25%, 2/01/21									210				238,087
West Corp., 8.63%, 10/01/18									65				69,225
													2,573,900
Communications Equipment — 1.2%
Avaya, Inc., 9.75%, 11/01/15									310				304,962
Brocade Communications Systems, Inc., 4.63%, 1/15/23 (b)									90				87,750
Zayo Group LLC/Zayo Capital, Inc.:
8.13%, 1/01/20									430				480,525
10.13%, 7/01/20									560				656,600
													1,529,837

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

63

Schedule of Investments (continued)	BlackRock High Income Shares (HIS) (Percentages shown are based on Net Assets)

Corporate Bonds								Par (000)				Value
Computers & Peripherals — 0.3%
EMC Corp., Series B, 1.75%, 12/01/13 (c)					USD				89			$	128,716
NCR Corp., 5.00%, 7/15/22 (b)									120				119,400
SanDisk Corp., 1.50%, 8/15/17 (c)									130				160,063
													408,179
Construction & Engineering — 0.3%
Boart Longyear Management Property Ltd., 7.00%, 4/01/21 (b)									90				93,375
H&E Equipment Services, Inc., 7.00%, 9/01/22 (b)									193				211,335
Weekley Homes LLC, 6.00%, 2/01/23 (b)									67				68,340
													373,050
Construction Materials — 2.3%
HD Supply, Inc. (b):
8.13%, 4/15/19									560				630,700
11.00%, 4/15/20									590				710,950
7.50%, 7/15/20									917				918,146
11.50%, 7/15/20									620				714,550
													2,974,346
Consumer Finance — 1.0%
Credit Acceptance Corp., 9.13%, 2/01/17									220				239,800
Ford Motor Credit Co. LLC:
12.00%, 5/15/15									330				400,537
8.13%, 1/15/20									500				629,908
													1,270,245
Containers & Packaging — 1.9%
Ardagh Packaging Finance Plc (b):
7.38%, 10/15/17					EUR				285				403,709
9.13%, 10/15/20					USD				200				219,000
9.13%, 10/15/20									200				218,000
7.00%, 11/15/20									200				200,500
4.88%, 11/15/22									200				197,000
Berry Plastics Corp.:
4.18%, 9/15/14 (g)									135				135,000
8.25%, 11/15/15									55				57,321
9.75%, 1/15/21									85				98,175
Crown Americas LLC, 6.25%, 2/01/21									5				5,450
Crown Americas LLC/Crown Americas Capital Corp. IV, 4.50%, 1/15/23 (b)									52				50,830
GCL Holdings SCA, 9.38%, 4/15/18 (b)					EUR				120				170,014
Graphic Packaging International, Inc., 7.88%, 10/01/18					USD				175				192,500
Pactiv LLC, 7.95%, 12/15/25									177				165,937
Tekni-Plex, Inc., 9.75%, 6/01/19 (b)									243				268,515
													2,381,951
Distributors — 0.5%
VWR Funding, Inc., 7.25%, 9/15/17 (b)									605				636,763
Diversified Consumer Services — 1.1%
313 Group, Inc. (b):
6.38%, 12/01/19									432				421,200
8.75%, 12/01/20									261				257,737
Laureate Education, Inc., 9.25%, 9/01/19 (b)									550				598,125
ServiceMaster Co., 8.00%, 2/15/20									85				90,100
													1,367,162
Diversified Financial Services — 5.0%
Air Lease Corp., 4.50%, 1/15/16									260				265,850
Aircastle Ltd.:
6.75%, 4/15/17									160				176,400
6.25%, 12/01/19									140				150,850
Ally Financial, Inc.:
7.50%, 12/31/13									330				346,500
8.00%, 11/01/31									1,227				1,541,419
CNG Holdings, Inc., 9.38%, 5/15/20 (b)									180				177,525
DPL, Inc.:
6.50%, 10/15/16									146				153,300
7.25%, 10/15/21									384				411,840
Corporate Bonds								Par (000)				Value
Diversified Financial Services (concluded)
General Motors Financial Co., Inc., 6.75%, 6/01/18					USD				140			$	161,000
Leucadia National Corp., 8.13%, 9/15/15									378				427,140
Reynolds Group Issuer, Inc.:
7.13%, 4/15/19									115				123,481
9.00%, 4/15/19									210				222,600
7.88%, 8/15/19									150				165,750
9.88%, 8/15/19									580				635,100
5.75%, 10/15/20									985				1,017,012
WMG Acquisition Corp.:
11.50%, 10/01/18									190				220,638
6.00%, 1/15/21 (b)									154				159,390
													6,355,795
Diversified Telecommunication Services — 2.3%
Broadview Networks Holdings, Inc., 10.50%, 11/15/17									240				234,600
Cequel Communications Escrow I LLC/Cequel Communications Escrow Capital Corp., 6.38%, 9/15/20 (b)									205				211,919
Consolidated Communications Finance Co., 10.88%, 6/01/20 (b)									150				169,875
Level 3 Communications, Inc.:
6.50%, 10/01/16 (c)									125				165,078
8.88%, 6/01/19 (b)									145				156,600
Level 3 Financing, Inc.:
8.13%, 7/01/19									813				886,170
7.00%, 6/01/20 (b)									192				201,600
8.63%, 7/15/20									385				427,350
TW Telecom Holdings, Inc., 5.38%, 10/01/22									130				135,525
Windstream Corp.:
8.13%, 8/01/13									112				114,934
7.88%, 11/01/17									163				184,598
7.50%, 4/01/23									35				36,575
6.38%, 8/01/23 (b)									35				34,300
													2,959,124
Electric Utilities — 0.5%
Mirant Mid Atlantic Pass-Through Trust, Series B, 9.13%, 6/30/17									130				144,601
The Tokyo Electric Power Co., Inc., 4.50%, 3/24/14					EUR				350				466,675
													611,276
Electrical Equipment — 0.3%
Belden, Inc., 5.50%, 9/01/22 (b)					USD				160				164,000
General Cable Corp., 5.75%, 10/01/22 (b)									270				276,750
													440,750
Electronic Equipment, Instruments & Components — 0.1%
Jabil Circuit, Inc., 8.25%, 3/15/18									105				126,263
Energy Equipment & Services — 3.8%
Atwood Oceanics, Inc., 6.50%, 2/01/20									65				70,688
Calfrac Holdings LP, 7.50%, 12/01/20 (b)									185				185,925
Compagnie Générale de Géophysique, Veritas:
7.75%, 5/15/17									170				175,312
6.50%, 6/01/21									595				618,800
FTS International Services LLC/FTS International Bonds, Inc., 8.13%, 11/15/18 (b)									578				598,230
Genesis Energy LP, 5.75%, 2/15/21 (b)									74				76,590
Gulfmark Offshore, Inc., 6.38%, 3/15/22									70				72,275
Hornbeck Offshore Services, Inc., 5.88%, 4/01/20									140				147,000
MEG Energy Corp. (b):
6.50%, 3/15/21									455				480,025
6.38%, 1/30/23									160				165,600
Oil States International, Inc.:
6.50%, 6/01/19									140				149,800
5.13%, 1/15/23 (b)									60				60,000

See Notes to Financial Statements.

64

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

Schedule of Investments (continued)	BlackRock High Income Shares (HIS) (Percentages shown are based on Net Assets)

Corporate Bonds								Par (000)				Value
Energy Equipment & Services (concluded)
Peabody Energy Corp.:
6.25%, 11/15/21					USD				640			$	665,600
7.88%, 11/01/26									170				181,900
4.75%, 12/15/66 (c)									309				262,457
Precision Drilling Corp.:
6.63%, 11/15/20									35				37,188
6.50%, 12/15/21									135				143,100
Rain CII Carbon LLC/CII Carbon Corp., 8.25%, 1/15/21 (b)									200				210,000
Seadrill Ltd., 5.63%, 9/15/17 (b)									305				308,812
Tervita Corp., 8.00%, 11/15/18 (b)									159				163,770
													4,773,072
Food & Staples Retailing — 0.1%
Rite Aid Corp., 9.25%, 3/15/20									165				184,800
Food Products — 0.4%
Del Monte Corp., 7.63%, 2/15/19									27				28,013
Post Holdings, Inc., 7.38%, 2/15/22									255				275,400
Smithfield Foods, Inc., 6.63%, 8/15/22									205				222,937
													526,350
Health Care Equipment & Supplies — 3.4%
Biomet, Inc. (b):
6.50%, 8/01/20									1,680				1,776,600
6.50%, 10/01/20									1,002				1,032,060
DJO Finance LLC:
8.75%, 3/15/18									168				185,430
7.75%, 4/15/18									50				49,750
9.88%, 4/15/18									180				192,150
Fresenius Medical Care US Finance II, Inc., 5.63%, 7/31/19 (b)									48				51,960
Fresenius Medical Care US Finance, Inc., 5.75%, 2/15/21 (b)									120				130,800
Fresenius US Finance II, Inc., 9.00%, 7/15/15 (b)									505				579,487
Kinetic Concepts, Inc./KCI USA, Inc., 12.50%, 11/01/19 (b)									145				142,100
Teleflex, Inc., 6.88%, 6/01/19									130				141,375
													4,281,712
Health Care Providers & Services — 8.8%
Aviv Healthcare Properties LP, 7.75%, 2/15/19									255				273,488
CHS/Community Health Systems, Inc.:
5.13%, 8/15/18									395				415,244
7.13%, 7/15/20									202				217,655
ConvaTec Healthcare E SA, 7.38%, 12/15/17 (b)					EUR				200				276,776
Crown Newco 3 Plc, 7.00%, 2/15/18 (b)					GBP				200				313,271
DaVita HealthCare Partners, Inc., 5.75%, 8/15/22					USD				393				409,702
HCA Holdings, Inc., 6.25%, 2/15/21									540				569,700
HCA, Inc.:
8.50%, 4/15/19									60				66,450
6.50%, 2/15/20									1,010				1,131,200
7.88%, 2/15/20									40				44,350
7.25%, 9/15/20									1,400				1,554,000
4.75%, 5/01/23									660				658,350
Hologic, Inc., 6.25%, 8/01/20 (b)									703				741,665
IASIS Healthcare LLC, 8.38%, 5/15/19									286				294,580
INC Research LLC, 11.50%, 7/15/19 (b)									302				322,385
inVentiv Health, Inc., 9.00%, 1/15/18 (b)									280				291,900
Omnicare, Inc.:
7.75%, 6/01/20									450				499,500
3.75%, 4/01/42 (c)									69				71,933
Symbion, Inc., 8.00%, 6/15/16									155				161,975
Tenet Healthcare Corp.:
6.25%, 11/01/18									474				524,955
8.88%, 7/01/19									1,260				1,423,800
6.75%, 2/01/20									230				246,100
4.50%, 4/01/21 (b)									312				307,710
Corporate Bonds								Par (000)				Value
Health Care Providers & Services (concluded)
Vanguard Health Holding Co. II LLC:
8.00%, 2/01/18					USD				104			$	110,760
7.75%, 2/01/19 (b)									205				219,606
													11,147,055
Health Care Technology — 1.1%
IMS Health, Inc. (b):
12.50%, 3/01/18									1,125				1,355,625
6.00%, 11/01/20									63				65,520
													1,421,145
Hotels, Restaurants & Leisure — 2.6%
Caesars Entertainment Operating Co., Inc.:
10.00%, 12/15/15									389				353,990
10.00%, 12/15/18									335				221,100
9.00%, 2/15/20 (b)									382				377,225
Caesars Operating Escrow LLC:
8.50%, 2/15/20									88				85,800
9.00%, 2/15/20 (b)									431				425,612
Carlson Wagonlit BV, 6.88%, 6/15/19 (b)									200				209,000
Diamond Resorts Corp., 12.00%, 8/15/18									550				605,000
El Dorado Resorts LLC, 8.63%, 6/15/19 (b)									60				59,625
MTR Gaming Group, Inc., 11.50%, 8/01/19 (f)									65				67,938
Regal Entertainment Group, 5.75%, 2/01/25									112				109,760
Six Flags Entertainment Corp., 5.25%, 1/15/21 (b)									200				196,000
Travelport LLC:
4.91%, 9/01/14 (g)									85				77,350
6.31%, 12/01/16 (b)(f)									197				179,185
Tropicana Entertainment LLC, 9.63%, 12/15/14 (a)(h)									215				—
Wynn Las Vegas LLC, 5.38%, 3/15/22									270				283,838
													3,251,423
Household Durables — 2.8%
Ashton Woods USA LLC, 6.88%, 2/15/21 (b)									98				98,490
Beazer Homes USA, Inc., 6.63%, 4/15/18									15				16,031
Brookfield Residential Properties, Inc., 6.50%, 12/15/20 (b)									180				190,800
Jarden Corp., 7.50%, 1/15/20					EUR				140				196,942
K. Hovnanian Enterprises, Inc., 7.25%, 10/15/20 (b)					USD				415				456,500
Libbey Glass, Inc., 6.88%, 5/15/20									270				289,575
PH Holding LLC, 9.75%, 12/31/17									150				147,000
Pulte Group, Inc., 6.38%, 5/15/33									85				86,275
The Ryland Group, Inc., 6.63%, 5/01/20									160				176,000
Standard Pacific Corp.:
10.75%, 9/15/16									890				1,108,050
8.38%, 1/15/21									440				522,500
United Rentals North America, Inc., 5.75%, 7/15/18									114				122,693
William Lyon Homes, Inc., 8.50%, 11/15/20 (b)									130				139,750
													3,550,606
Household Products — 0.8%
Ontex IV SA, 7.50%, 4/15/18 (b)					EUR				100				135,777
Spectrum Brands Escrow Corp. (b):
6.38%, 11/15/20					USD				167				177,646
6.63%, 11/15/22									110				118,525
Spectrum Brands, Inc.:
9.50%, 6/15/18									430				487,512
6.75%, 3/15/20 (b)									43				46,333
													965,793
Independent Power Producers & Energy Traders — 4.7%
The AES Corp., 7.38%, 7/01/21									125				141,250
Calpine Corp. (b):
7.25%, 10/15/17									72				76,590
7.50%, 2/15/21									40				43,500
7.88%, 1/15/23									180				199,350

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

65

Schedule of Investments (continued)	BlackRock High Income Shares (HIS) (Percentages shown are based on Net Assets)

Corporate Bonds								Par (000)				Value
Independent Power Producers & Energy Traders (concluded)
Energy Future Intermediate Holding Co. LLC:
6.88%, 8/15/17 (b)					USD				330			$	348,150
10.00%, 12/01/20 (b)									670				755,425
10.00%, 12/01/20									1,936				2,197,360
GenOn REMA LLC:
Series B, 9.24%, 7/02/17									107				117,716
Series C, 9.68%, 7/02/26									135				147,150
Laredo Petroleum, Inc.:
9.50%, 2/15/19									340				384,200
7.38%, 5/01/22									165				179,025
NRG Energy, Inc.:
7.63%, 1/15/18									661				757,671
6.63%, 3/15/23 (b)									285				303,525
QEP Resources, Inc.:
5.38%, 10/01/22									148				155,030
5.25%, 5/01/23									115				119,025
													5,924,967
Industrial Conglomerates — 0.2%
Sequa Corp., 7.00%, 12/15/17 (b)									250				251,875
Insurance — 0.6%
Alliant Holdings I, Inc., 7.88%, 12/15/20 (b)									499				501,495
CNO Financial Group, Inc., 6.38%, 10/01/20 (b)									98				103,880
MPL 2 Acquisition Canco, Inc., 9.88%, 8/15/18 (b)									120				118,800
													724,175
Internet Software & Services — 0.1%
Equinix, Inc., 4.88%, 4/01/20									64				64,000
IT Services — 3.6%
Ceridian Corp., 8.88%, 7/15/19 (b)									650				732,875
Epicor Software Corp., 8.63%, 5/01/19									230				247,825
First Data Corp.:
7.38%, 6/15/19 (b)									895				940,869
6.75%, 11/01/20 (b)									1,131				1,160,689
8.25%, 1/15/21 (b)									58				59,305
11.25%, 1/15/21 (b)									214				218,280
12.63%, 1/15/21									365				389,181
SunGard Data Systems, Inc.:
7.38%, 11/15/18									250				268,437
6.63%, 11/01/19 (b)									350				359,625
WEX, Inc., 4.75%, 2/01/23 (b)									214				207,045
													4,584,131
Machinery — 1.8%
Dematic SA, 7.75%, 12/15/20 (b)									40				40,900
The Manitowoc Co., Inc., 5.88%, 10/15/22									205				210,125
Silver II Borrower/Silver II US Holdings LLC, 7.75%, 12/15/20 (b)									150				156,000
SPX Corp., 6.88%, 9/01/17									80				89,400
Terex Corp., 6.00%, 5/15/21									205				212,687
Trinseo Materials Operating SCA, 8.75%, 2/01/19 (b)									178				177,333
UR Merger Sub Corp.:
7.38%, 5/15/20									195				213,525
7.63%, 4/15/22									957				1,059,877
6.13%, 6/15/23									85				89,250
													2,249,097
Media — 9.7%
Affinion Group, Inc., 7.88%, 12/15/18									177				134,520
AMC Networks, Inc.:
7.75%, 7/15/21									100				113,500
4.75%, 12/15/22									156				155,415
Cablevision Systems Corp., 5.88%, 9/15/22									250				242,500
CCO Holdings LLC:
5.25%, 9/30/22									941				925,709
5.13%, 2/15/23									270				263,250
Corporate Bonds								Par (000)				Value
Media (concluded)
Cengage Learning Acquisitions, Inc., 11.50%, 4/15/20 (b)					USD				293			$	231,470
Checkout Holding Corp., 11.47%, 11/15/15 (b)(d)									199				147,011
Cinemark USA, Inc.:
8.63%, 6/15/19									120				133,050
5.13%, 12/15/22 (b)									93				93,465
Clear Channel Communications, Inc., 9.00%, 12/15/19 (b)									403				374,790
Clear Channel Worldwide Holdings, Inc.:
6.50%, 11/15/22 (b)									271				283,195
6.50%, 11/15/22 (b)									732				770,430
Series B 7.63%, 3/15/20									500				517,500
DISH DBS Corp.:
5.88%, 7/15/22									450				474,750
5.00%, 3/15/23 (b)									295				292,788
Harron Communications LP, 9.13%, 4/01/20 (b)									140				154,000
Intelsat Jackson Holdings SA:
7.25%, 10/15/20									315				337,838
6.63%, 12/15/22 (b)									93				93,698
Intelsat Luxembourg SA:
11.25%, 2/04/17									270				286,875
11.50%, 2/04/17									998				1,061,750
Interactive Data Corp., 10.25%, 8/01/18									615				697,256
The Interpublic Group of Cos., Inc., 10.00%, 7/15/17									155				167,206
Kabel Deutschland Vertrieb und Service GmbH & Co. KG, 6.50%, 6/29/18 (b)					EUR				155				216,687
Live Nation Entertainment, Inc., 8.13%, 5/15/18 (b)					USD				335				363,475
NAI Entertainment Holdings LLC, 8.25%, 12/15/17 (b)									261				284,490
Nielsen Finance LLC:
11.63%, 2/01/14									72				78,660
7.75%, 10/15/18									517				572,577
Odeon & UCI Finco Plc, 9.00%, 8/01/18 (b)					GBP				100				157,773
ProQuest LLC, 9.00%, 10/15/18 (d)					USD				82				81,385
ProtoStar I Ltd., 18.00%, 10/15/13 (a)(b)(h)									1,427				714
Sterling Entertainment Corp., 10.00%, 12/15/19									375				375,000
Unitymedia GmbH:
9.63%, 12/01/19					EUR				100				144,459
9.63%, 12/01/19 (b)									245				353,925
9.50%, 3/15/21									190				282,435
Unitymedia Hessen GmbH & Co. KG, 7.50%, 3/15/19									304				431,615
Univision Communications, Inc., 6.75%, 9/15/22 (b)					USD				55				59,400
UPC Holding BV, 9.88%, 4/15/18 (b)									200				224,000
UPCB Finance II Ltd., 6.38%, 7/01/20 (b)					EUR				371				513,420
WaveDivision Escrow LLC/WaveDivision Escrow Corp., 8.13%, 9/01/20 (b)					USD				155				162,750
Ziggo Bond Co. BV, 8.00%, 5/15/18 (b)					EUR				85				119,849
													12,374,580
Metals & Mining — 4.4%
ArcelorMittal:
9.50%, 2/15/15					USD				295				332,981
4.00%, 8/05/15									173				179,114
4.25%, 3/01/16									50				51,500
5.00%, 2/25/17									180				187,290
6.13%, 6/01/18									181				195,172
6.00%, 3/01/21									26				27,593
6.75%, 2/25/22									214				235,637
7.50%, 10/15/39									26				26,953
7.25%, 3/01/41									99				98,753
FMG Resources August 2006 Property Ltd. (b):
6.38%, 2/01/16									195				203,079
6.00%, 4/01/17									208				216,840
Global Brass and Copper, Inc., 9.50%, 6/01/19 (b)									130				141,375
GoldCorp, Inc., 2.00%, 8/01/14 (c)									460				481,850

See Notes to Financial Statements.

66

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

Schedule of Investments (continued)	BlackRock High Income Shares (HIS) (Percentages shown are based on Net Assets)

Corporate Bonds								Par (000)				Value
Metals & Mining (concluded)
Kaiser Aluminum Corp., 8.25%, 6/01/20					USD				100			$	111,750
New Gold, Inc., 7.00%, 4/15/20 (b)									65				70,200
Newmont Mining Corp., Series A, 1.25%, 7/15/14 (c)									670				739,931
Novelis, Inc., 8.75%, 12/15/20									1,525				1,708,000
Steel Dynamics, Inc., 6.38%, 8/15/22 (b)									105				112,350
Taseko Mines Ltd., 7.75%, 4/15/19									190				189,050
Vedanta Resources Plc, 8.25%, 6/07/21 (b)									200				227,500
Walter Energy, Inc., 9.88%, 12/15/20 (b)									57				61,988
													5,598,906
Multiline Retail — 0.4%
Dollar General Corp., 4.13%, 7/15/17									351				371,183
Dufry Finance SCA, 5.50%, 10/15/20 (b)									200				208,500
													579,683
Oil, Gas & Consumable Fuels — 9.1%
Access Midstream Partners LP:
6.13%, 7/15/22									120				128,700
4.88%, 5/15/23									165				163,350
Alpha Appalachia Holdings, Inc., 3.25%, 8/01/15 (c)									385				367,434
Aurora USA Oil & Gas, Inc., 9.88%, 2/15/17 (b)									100				107,500
BreitBurn Energy Partners LP, 7.88%, 4/15/22									115				122,188
Carrizo Oil & Gas, Inc., 7.50%, 9/15/20									107				112,350
Chaparral Energy, Inc., 7.63%, 11/15/22									95				103,075
Chesapeake Energy Corp.:
7.25%, 12/15/18									50				56,500
6.63%, 8/15/20									80				87,600
6.88%, 11/15/20									80				88,000
6.13%, 2/15/21									35				37,100
Concho Resources, Inc.:
7.00%, 1/15/21									75				82,875
6.50%, 1/15/22									133				144,970
5.50%, 10/01/22									99				103,084
CONSOL Energy, Inc., 8.25%, 4/01/20									135				148,837
Continental Resources, Inc., 7.13%, 4/01/21									170				192,950
Crosstex Energy LP, 8.88%, 2/15/18									65				70,038
CVR Refining LLC/Coffeyville Finance, Inc., 6.50%, 11/01/22 (b)									165				166,237
Denbury Resources, Inc., 4.63%, 7/15/23									334				327,737
Energy XXI Gulf Coast, Inc.:
9.25%, 12/15/17									210				237,300
7.75%, 6/15/19									245				262,762
EP Energy LLC/Everest Acquisition Finance, Inc.:
6.88%, 5/01/19									155				168,950
7.75%, 9/01/22									95				102,838
EV Energy Partners LP, 8.00%, 4/15/19									70				73,325
Halcon Resources Corp., 8.88%, 5/15/21 (b)									179				192,425
Hilcorp Energy I LP, 7.63%, 4/15/21 (b)									124				136,710
Kodiak Oil & Gas Corp., 8.13%, 12/01/19									155				174,375
Linn Energy LLC:
6.50%, 5/15/19									20				20,700
6.25%, 11/01/19 (b)									515				525,300
8.63%, 4/15/20									50				55,313
7.75%, 2/01/21									75				81,000
MarkWest Energy Partners LP:
5.50%, 2/15/23									100				105,000
4.50%, 7/15/23									135				131,963
Newfield Exploration Co., 6.88%, 2/01/20									350				375,375
Northern Oil and Gas, Inc., 8.00%, 6/01/20									140				146,300
Oasis Petroleum, Inc.:
7.25%, 2/01/19									90				97,200
6.50%, 11/01/21									135				145,800
Offshore Group Investments Ltd., 11.50%, 8/01/15									332				361,880
PBF Holding Co. LLC, 8.25%, 2/15/20 (b)									100				108,750
PDC Energy, Inc., 7.75%, 10/15/22 (b)									90				95,175
PetroBakken Energy Ltd., 8.63%, 2/01/20 (b)									296				301,920
Corporate Bonds								Par (000)				Value
Oil, Gas & Consumable Fuels (concluded)
Petroleum Geo-Services ASA, 7.38%, 12/15/18 (b)					USD				465			$	511,500
Plains Exploration & Production Co., 6.88%, 2/15/23									460				530,150
Range Resources Corp.:
8.00%, 5/15/19									170				187,000
5.75%, 6/01/21									460				489,900
5.00%, 8/15/22									178				182,005
Regency Energy Partners LP:
6.88%, 12/01/18									173				186,840
5.50%, 4/15/23									287				302,785
Sabine Pass Liquefaction LLC, 5.63%, 2/01/21 (b)									699				721,717
Sabine Pass Liquified Natural Gas LP:
7.50%, 11/30/16									665				734,825
6.50%, 11/01/20 (b)									140				147,700
SandRidge Energy, Inc., 7.50%, 2/15/23									245				256,637
SESI LLC:
6.38%, 5/01/19									145				155,512
7.13%, 12/15/21									105				116,288
SM Energy Co.:
6.63%, 2/15/19									60				64,350
6.50%, 11/15/21									115				125,063
6.50%, 1/01/23									170				184,025
Tesoro Logistics LP/Tesoro Logistics Finance Corp., 5.88%, 10/01/20 (b)									68				70,890
Vanguard Natural Resources, 7.88%, 4/01/20									120				126,000
													11,604,073
Paper & Forest Products — 0.8%
Ainsworth Lumber Co. Ltd., 7.50%, 12/15/17 (b)									155				167,013
Boise Paper Holdings LLC:
9.00%, 11/01/17									25				27,031
8.00%, 4/01/20									50				55,125
Clearwater Paper Corp., 7.13%, 11/01/18									270				292,275
Longview Fibre Paper & Packaging, Inc., 8.00%, 6/01/16 (b)									155				162,750
NewPage Corp., 11.38%, 12/31/14 (a)(h)									919				—
Sappi Papier Holding GmbH (b):
8.38%, 6/15/19									200				224,000
6.63%, 4/15/21									65				67,275
													995,469
Pharmaceuticals — 1.2%
Capsugel Finance Co. SCA, 9.88%, 8/01/19 (b)					EUR				100				146,874
Jaguar Holding Co. II/Jaguar Merger Sub, Inc., 9.50%, 12/01/19 (b)					USD				174				199,665
Valeant Pharmaceuticals International (b):
6.50%, 7/15/16									260				273,163
6.88%, 12/01/18									330				358,462
6.38%, 10/15/20									180				193,725
6.75%, 8/15/21									280				302,750
													1,474,639
Professional Services — 0.2%
Truven Health Analytics, Inc., 10.63%, 6/01/20 (b)									220				246,400
Real Estate Investment Trusts (REITs) — 0.8%
Cantor Commercial Real Estate Co. LP, 7.75%, 2/15/18 (b)									122				122,610
Felcor Lodging LP:
6.75%, 6/01/19									463				497,436
5.63%, 3/01/23 (b)									112				112,700
The Rouse Co. LP, 6.75%, 11/09/15									240				249,600
													982,346
Real Estate Management & Development — 2.1%
CBRE Services, Inc., 6.63%, 10/15/20									160				172,800
Crescent Resources LLC/Crescent Ventures, Inc., 10.25%, 8/15/17 (b)									375				404,062
Mattamy Group Corp., 6.50%, 11/15/20 (b)									165				164,381

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

67

Schedule of Investments (continued)	BlackRock High Income Shares (HIS) (Percentages shown are based on Net Assets)

Corporate Bonds								Par (000)				Value
Real Estate Management & Development (concluded)
Realogy Corp.:
11.50%, 4/15/17					USD				175			$	186,594
12.00%, 4/15/17									45				48,038
7.88%, 2/15/19 (b)									560				609,000
7.63%, 1/15/20 (b)									220				248,050
9.00%, 1/15/20 (b)									145				166,387
Shea Homes LP, 8.63%, 5/15/19									635				704,850
													2,704,162
Road & Rail — 0.8%
The Hertz Corp.:
7.50%, 10/15/18									360				393,300
6.75%, 4/15/19 (b)									130				140,075
7.38%, 1/15/21									450				496,125
													1,029,500
Semiconductors & Semiconductor Equipment — 0.5%
Micron Technology, Inc., Series C, 2.38%, 5/01/32 (b)(c)									112				124,670
NXP BV/NXP Funding LLC, 5.75%, 2/15/21 (b)									200				204,500
Spansion LLC, 7.88%, 11/15/17									260				274,300
													603,470
Software — 1.3%
IAC/InterActiveCorp, 4.75%, 12/15/22 (b)									183				178,883
Igloo Holdings Corp., 8.25%, 12/15/17 (b)(f)									130				133,250
Infor US, Inc., 9.38%, 4/01/19									730				819,425
Interface Security Systems Holdings, Inc., 9.25%, 1/15/18 (b)									64				65,120
Nuance Communications, Inc., 5.38%, 8/15/20 (b)									225				227,812
Sophia LP, 9.75%, 1/15/19 (b)									198				219,037
													1,643,527
Specialty Retail — 2.8%
Asbury Automotive Group, Inc., 8.38%, 11/15/20									165				183,975
Claire’s Stores, Inc., 9.00%, 3/15/19 (b)									280				310,800
House of Fraser Funding Plc, 8.88%, 8/15/18 (b)					GBP				129				207,441
Limited Brands, Inc.:
8.50%, 6/15/19					USD				70				85,750
5.63%, 2/15/22									70				74,025
Michaels Stores, Inc., 7.75%, 11/01/18									103				112,399
New Academy Finance Co., 8.00%, 6/15/18 (b)(f)									94				97,055
Party City Holdings, Inc., 8.88%, 8/01/20 (b)									620				674,250
Penske Automotive Group, Inc., 5.75%, 10/01/22 (b)									490				512,662
QVC, Inc.:
7.13%, 4/15/17 (b)									105				109,364
7.50%, 10/01/19 (b)									285				314,552
7.38%, 10/15/20 (b)									130				144,097
5.13%, 7/02/22									11				11,632
Sally Holdings LLC:
6.88%, 11/15/19									245				273,175
5.75%, 6/01/22									223				235,544
Sonic Automotive, Inc., 9.00%, 3/15/18									175				192,500
													3,539,221
Textiles, Apparel & Luxury Goods — 0.2%
Levi Strauss & Co., 6.88%, 5/01/22									195				211,819
Phillips-Van Heusen Corp., 4.50%, 12/15/22									111				109,474
													321,293
Trading Companies & Distributors — 0.6%
Ashtead Capital, Inc., 6.50%, 7/15/22 (b)									215				231,663
Doric Nimrod Air Finance Alpha Ltd., Series 2012-1 (b):
Class A, 5.13%, 11/30/24									260				279,500
Class B 6.50%, 5/30/21									250				264,289
													775,452
Corporate Bonds								Par (000)				Value
Transportation Infrastructure — 0.2%
Aguila 3 SA, 7.88%, 1/31/18 (b)					USD				198			$	209,880
Wireless Telecommunication Services — 4.8%
Cricket Communications, Inc., 7.75%, 10/15/20									261				266,220
Crown Castle International Corp., 5.25%, 1/15/23 (b)									469				480,725
Digicel Group Ltd. (b):
8.25%, 9/01/17									565				596,075
8.25%, 9/30/20									245				261,293
Digicel, Ltd., 6.00%, 4/15/21 (b)(e)									545				543,637
MetroPCS Wireless, Inc., 6.63%, 11/15/20									309				323,291
NII Capital Corp., 7.63%, 4/01/21									152				106,400
Phones4u Finance Plc, 9.50%, 4/01/18 (b)					GBP				130				203,626
Sprint Capital Corp., 6.88%, 11/15/28					USD				718				725,180
Sprint Nextel Corp. (b):
9.00%, 11/15/18									2,001				2,481,240
7.00%, 3/01/20									90				105,300
													6,092,987
Total Corporate Bonds — 105.1%													133,398,490
Floating Rate Loan Interests (g)
Airlines — 1.2%
Delta Air Lines, Inc., Term Loan B, 4.50%, 4/20/17									212				213,426
Northwest Airlines, Inc.:
Term Loan, 2.32%, 3/10/17									309				287,679
Term Loan, 2.32%, 3/10/17									560				521,360
Term Loan, 1.70%, 9/10/18									254				226,771
Term Loan, 1.70%, 9/10/18									252				224,986
													1,474,222
Auto Components — 1.0%
Federal-Mogul Corp.:
Term Loan B, 2.14%, 12/29/14									720				670,319
Term Loan C, 2.14%, 12/28/15									352				327,049
Schaeffler AG, Term Loan B2, 6.00%, 1/27/17									225				224,944
													1,222,312
Building Products — 0.1%
Wilsonart International Holdings LLC, Term Loan B, 5.50%, 10/31/19									185				186,942
Capital Markets — 0.6%
American Capital Holdings, Inc., Term Loan, 5.50%, 8/22/16									411				415,110
Nuveen Investments, Inc.:
Incremental Term Loan, 7.25%, 5/13/17									215				216,075
Second Lien Term Loan, 8.25%, 2/28/19									185				188,700
													819,885
Chemicals — 0.4%
INEOS US Finance LLC, 6 Year Term Loan, 6.50%, 5/04/18									171				174,999
US Coatings Acquisition, Inc., Term Loan, 4.75%, 2/03/20									305				308,703
													483,702
Commercial Services & Supplies — 0.4%
AWAS Finance Luxembourg Sarl, Term Loan B, 5.25%, 6/10/16									195				196,326
Delos Aircraft, Inc., Term Loan 2, 4.75%, 4/12/16									325				326,895
													523,221
Communications Equipment — 1.4%
Alcatel-Lucent, Term Loan C, 7.25%, 1/31/19									955				965,505
Avaya, Inc., Term Loan B5, 8.00%, 3/30/18									57				57,199
Zayo Group LLC, Refinancing Term Loan B, 5.25%, 7/12/19									807				809,295
													1,831,999

See Notes to Financial Statements.

68

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

Schedule of Investments (continued)	BlackRock High Income Shares (HIS) (Percentages shown are based on Net Assets)

Floating Rate Loan Interests (g)								Par (000)				Value
Construction Materials — 0.4%
HD Supply, Inc., Senior Debt B, 4.50%, 10/12/17					USD				493			$	493,835
Consumer Finance — 1.4%
Springleaf Financial Funding Co., Term Loan, 5.50%, 5/10/17									1,772				1,778,273
Diversified Consumer Services — 0.2%
Laureate Education, Inc., Extended Term Loan, 5.25%, 6/18/18									64				64,687
ServiceMaster Co., New Term Loan, 2.70%, 4/01/17									200				199,321
													264,008
Diversified Telecommunication Services — 1.2%
Hawaiian Telcom Communications, Inc., Term Loan B, 7.00%, 2/28/17									404				411,562
Level 3 Financing, Inc.:
2016 Term Loan B, 4.75%, 2/01/16									150				151,309
2019 Term Loan B, 5.25%, 8/01/19									120				121,225
Term Loan, 4.75%, 8/01/19									800				806,400
													1,490,496
Energy Equipment & Services — 1.7%
Dynegy Midwest Generation LLC, CoalCo. Term Loan, 9.25%, 8/04/16									777				802,362
Dynegy Power LLC, GasCo. Term Loan, 9.25%, 8/04/16									1,255				1,304,710
Tervita Corp., Incremental Term Loan, 3.20%, 5/01/18									60				60,309
													2,167,381
Food & Staples Retailing — 0.0%
Rite Aid Corp., Second Lien Term Loan, 5.75%, 7/07/20									45				46,025
Food Products — 0.1%
AdvancePierre Foods, Inc., Term Loan, 5.75%, 7/10/17									95				96,158
Health Care Equipment & Supplies — 0.5%
Bausch & Lomb, Inc., Term Loan B, 5.25%, 5/17/19									174				175,310
Capital Safety North America, Term Loan, 4.50%, 1/21/19									347				347,375
LHP Hospital Group, Inc., Term Loan, 9.00%, 7/03/18									124				127,173
													649,858
Health Care Providers & Services — 0.5%
Genesis HealthCare Corp., Term Loan B, 10.00%—10.75%, 9/25/17									85				82,980
Harden Healthcare LLC:
Add on Term Loan A, 7.75%, 3/02/15									206				201,397
Term Loan A, 8.50%, 3/02/15									154				152,205
inVentiv Health, Inc., Combined Term Loan, 7.50%, 8/04/16									166				163,019
													599,601
Hotels, Restaurants & Leisure — 3.1%
Caesars Entertainment Operating Co., Inc.:
Term Loan B1, 3.20%, 1/28/15									214				213,334
Term Loan B3, 3.20%—3.31%, 1/28/15									13				13,175
Harrah’s Property Co., Mezzanine Term Loan, 3.69%, 2/13/14									2,355				2,166,600
MGM Resorts International, Term Loan B, 4.25%, 12/20/19									540				546,210
Station Casinos, Inc.:
Term Loan B, 5.50%, 9/27/19									454				456,508
Term Loan B, 5.00%, 2/13/20									440				443,667
Floating Rate Loan Interests (g)								Par (000)				Value
Hotels, Restaurants & Leisure (concluded)
Travelport Holdings Ltd.:
Extended Tranche A Term Loan, 6.40%, 12/01/16					USD				91			$	32,104
Extended Tranche B Term Loan, 13.80%, 12/01/16									304				28,386
													3,899,984
Industrial Conglomerates — 0.2%
Sequa Corp., Term Loan B, 5.25%, 6/19/17									254				256,448
Insurance — 0.1%
Alliant Holdings I, Inc., Term Loan B, 5.00%, 12/20/19									145				146,088
IT Services — 0.3%
First Data Corp., Extended 2018 Term Loan B, 4.20%, 3/23/18									355				350,527
Leisure Equipment & Products — 0.1%
Eastman Kodak Co., DIP Term Loan B, 8.50%, 7/19/13									108				107,612
Life Sciences Tools & Services — 0.1%
Patheon, Inc., Term Loan, 7.25%, 12/06/18									90				90,785
Machinery — 0.7%
Rexnord Corp., Term Loan B, 4.50%, 4/02/18									262				263,992
Silver II US Holdings LLC, Term Loan, 4.75%, 12/05/19									685				685,000
													948,992
Media — 4.1%
Cengage Learning Acquisitions, Inc.:
Non-Extended Term Loan, 2.71%, 7/03/14									139				108,406
Tranche 1 Incremental, 7.50%, 7/03/14									691				549,544
Cequel Communications LLC, Term Loan B, 4.00%, 2/14/19									124				124,307
Clear Channel Communications, Inc.:
Term Loan B, 3.85%, 1/29/16									599				512,255
Term Loan C, 3.85%, 1/29/16									178				150,332
EMI Music Publishing Ltd., Term Loan B, 5.50%, 6/29/18									194				196,111
Getty Images, Inc., Term Loan B, 4.75%, 10/18/19									180				181,019
Intelsat Jackson Holdings SA, Term Loan B1, 4.50%, 4/02/18									2,748				2,773,918
Interactive Data Corp., Term Loan B, 3.75%, 2/11/18									185				184,796
Univision Communications, Inc., Extended Term Loan, 4.45%, 3/31/17									120				120,031
Virgin Media Investment Holdings, Term Loan B, 3.50%, 2/17/20									320				318,089
													5,218,808
Metals & Mining — 0.9%
Constellium Holdco BV, Term Loan B, 9.25%, 5/25/18									189				192,831
FMG America Finance, Inc., Term Loan, 5.25%, 10/18/17									938				948,883
													1,141,714
Oil, Gas & Consumable Fuels — 1.5%
Chesapeake Energy Corp., Unsecured Term Loan, 5.75%, 12/01/17									975				995,212
Obsidian Natural Gas Trust, Term Loan, 7.00%, 11/02/15									396				400,026
Samson Investment Co., Second Lien Term Loan, 6.00%, 9/25/18									100				100,938
Vantage Drilling Co., Term Loan, 6.25%, 10/26/17									425				426,748
													1,922,924

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

69

Schedule of Investments (continued)	BlackRock High Income Shares (HIS) (Percentages shown are based on Net Assets)

Floating Rate Loan Interests (g)								Par (000)				Value
Pharmaceuticals — 0.4%
Par Pharmaceutical, Term Loan B, 5.00%, 9/28/19					USD				319			$	318,801
Pharmaceutical Product Development, Inc., Term Loan B, 4.25%, 12/05/18									138				139,256
													458,057
Professional Services — 0.1%
Truven Health Analytics, Inc., Term Loan B, 5.75%, 6/01/19									164				165,715
Real Estate Investment Trusts (REITs) — 0.3%
iStar Financial, Inc., Term Loan, 4.50%, 9/28/17									332				331,908
Real Estate Management & Development — 0.2%
Realogy Corp.:
Extended Letter of Credit, Loan, 4.46%, 10/10/16									29				28,913
Extended Term Loan, 4.42%, 10/10/16									245				245,263
													274,176
Road & Rail — 0.1%
Genesee & Wyoming, Inc., Term Loan A, 2.70%, 9/29/17									125				124,538
Semiconductors & Semiconductor Equipment — 0.1%
Freescale Semiconductor, Inc., Extended Term Loan B, 4.45%, 12/01/16									130				130,000
Software — 0.6%
GCA Services Group, Inc., Second Lien Term Loan, 9.25%, 10/22/20									25				24,750
Infor US, Inc., Term Loan B2, 5.25%, 4/05/18									542				548,151
Kronos, Inc., Second Lien Term Loan, 9.75%, 4/30/20									225				234,000
													806,901
Specialty Retail — 0.2%
David’s Bridal, Inc., Term Loan B, 5.00%, 10/11/19									235				237,409
Textiles, Apparel & Luxury Goods — 0.5%
Ascend Performance Materials LLC, Term Loan B, 6.75%, 4/10/18									506				511,237
PVH Corp., Term Loan B, 3.25%, 12/19/19									190				191,524
													702,761
Thrifts & Mortgage Finance — 0.2%
Ocwen Financial Corp., Term Loan, 5.00%, 1/22/18									260				263,142
Wireless Telecommunication Services — 1.2%
Vodafone Americas Finance 2, Inc.: (f)
Term Loan, 6.88%, 8/11/15									831				847,258
Term Loan B, 6.25%, 7/11/16									619				635,766
													1,483,024
Total Floating Rate Loan Interests — 26.1%													33,189,431
Preferred Securities								Shares				Value
Preferred Stocks
Auto Components — 0.7%
Dana Holding Corp., 4.00% (b)(c)									6,200			$	879,625
Diversified Financial Services — 0.8%
Ally Financial, Inc., 7.00% (b)									1,100				1,070,266
Media — 0.1%
Emmis Communications Corp., Series A, 6.25%									10,300				94,142
Real Estate Investment Trusts (REITs) — 0.1%
MPG Office Trust, Inc., Series A, 7.63% (a)									4,171				94,890
Thrifts & Mortgage Finance — 0.0%
Fannie Mae, Series O, 7.00% (a)(g)									10,000				38,500
Total Preferred Stocks — 1.7%													2,177,423
Trust Preferreds
Diversified Financial Services — 1.2%
GMAC Capital Trust I, Series 2, 8.13%, 2/15/40 (g)									56,340				1,490,178
Total Preferred Securities — 2.9%													3,667,601
Warrants (i)
Software — 0.0%
Bankruptcy Management Solutions, Inc. (Expires 9/28/17)									167				—
HMH Holdings/EduMedia (Issued/Exercisable 3/09/10, 19 Shares for 1 Warrant, Expires 6/22/19, Strike Price $42.27)									513				—
													—
Total Warrants — 0.0%													—
Total Long-Term Investments (Cost — $167,334,601) — 135.3%													171,735,959
Short-Term Securities
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.10% (j)(k)									2,757,840				2,757,840
Total Short-Term Securities (Cost — $2,757,840) — 2.2%													2,757,840
Total Investments (Cost—$170,092,441) — 137.5%													174,493,799
Liabilities in Excess of Other Assets — (37.5)%													(47,614,696	)
Net Assets — 100.0%												$	126,879,103

Notes to Schedule of Investments

(a)				Non-income producing security.
(b)				Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(c)				Convertible security.
(d)				Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(e)				When-issued security. Unsettled when-issued transactions were as follows:

Counterparty				Value				Unrealized Appreciation (Depreciation)
Citigroup Global Markets				$	543,637			$	(1,363	)
Goldman Sachs & Co				$	193,802			$	(1,354	)
Pershing LLC				$	287,640			$	3,824

(f)

Represents a payment-in-kind security which may pay interest/dividends in additional par/shares.

See Notes to Financial Statements.

70

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Schedule of Investments (continued)	BlackRock High Income Shares (HIS)

(g)				Variable rate security. Rate shown is as of report date.
(h)				Issuer filed for bankruptcy and/or is in default of principal and/or interest payments.
(i)				Warrants entitle the Trust 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 until the expiration date of the warrants, if any.
(j)				Investments in issuers considered to be an affiliate of the Trust during the six months ended February 28, 2013, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliate				Shares Held at August 31, 2012				Net Activity				Shares Held at February 28, 2013				Income				Realized Gain
BlackRock Liquidity Funds, TempFund, Institutional Class					—				2,757,840				2,757,840			$	402			$	33

(k)				Represents the current yield as of report date.
•				For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Trust management. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.
•				Financial futures contracts as of February 28, 2013 were as follows:

Contracts Sold

Issue

Exchange

Expiration

Notional Value

Unrealized  Depreciation

(25)

S&P 500 E-Mini Index

Chicago Mercantile

March 2013

USD

1,891,625

$ (38,018)

•

Foreign currency exchange contracts as of February 28, 2013 were as follows:

Currency Purchased								Currency Sold								Counterparty				Settlement Date					Unrealized Appreciation (Depreciation)
USD					897,075			GBP					560,000			Goldman Sachs Group, Inc.				4/17/13				$	47,728
EUR					100,000			USD					134,940			Citigroup, Inc.				4/23/13					(4,339	)
EUR					120,000			USD					160,434			Credit Suisse Group AG				4/23/13					(3,711	)
USD					4,571,808			EUR					3,431,000			Citigroup, Inc.				4/23/13					90,855
Total																								$	130,533

•

Fair Value Measurements—Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:

•				Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the Trust has the ability to access
•				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 Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)

				The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
				Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust’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.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

71

Schedule of Investments (continued)	BlackRock High Income Shares (HIS)

The following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy as of February 28, 2013:

				Level 1				Level 2				Level 3				Total
Assets:
Investments:
Long-Term Investments:
Common Stocks					—			$	172,491			$	1,307,946			$	1,480,437
Corporate Bonds					—				132,121,215				1,277,275				133,398,490
Floating Rate Loan Interests					—				27,496,800				5,692,631				33,189,431
Preferred Securities				$	2,787,976				879,625				—				3,667,601
Short-Term Securities					2,757,840				—				—				2,757,840
Total				$	5,545,816			$	160,670,131			$	8,277,852			$	174,493,799

				Level 1				Level 2				Level 3				Total
Derivative Financial Instruments1
Assets:
Foreign currency exchange contracts					—			$	138,583				—			$	138,583
Liabilities:
Foreign currency exchange contracts					—				(8,050	)			—				(8,050	)
Equity contracts				$	(38,018	)			—				—				(38,018	)
Total				$	(38,018	)		$	130,533				—			$	92,515

1

Derivative financial instruments are financial futures contracts and foreign currency exchange contracts. Financial futures contracts and foreign currency exchange contracts are valued at the unrealized appreciation/depreciation on the instrument.

Certain of the Trust’s assets and liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of February 28, 2013, such assets and liabilities are categorized within the disclosure hierarchy as follows:

				Level 1				Level 2				Level 3				Total
Assets:
Foreign currency at value				$	31,721				—				—			$	31,721
Cash pledged as collateral for financial futures contracts					122,000				—				—				122,000
Liabilities:
Loan payable					—			$	(44,000,000	)			—				(44,000,000	)
Total				$	153,721			$	(44,000,000	)			—			$	(43,846,279	)

				As of August 31, 2012, the Trust used observable inputs in determining the value of certain equity securities. As of February 28, 2013, the Trust valued the same securities using unadjusted price quotations from an exchange. As a result, investments with a beginning of period value of $1,778,390 transferred from Level 2 to Level 1 in the disclosure hierarchy.
				A reconciliation of Level 3 investments is presented when the Trust had a significant amount of Level 3 investments at the beginning and/or end of the period in relation to net assets. The following table is a reconciliation of Level 3 investments for which significant unobservable inputs were used in determining fair value:

				Common Stocks				Corporate Bonds				Floating Rate Loan Interests				Total
Assets:
Opening Balance, as of August 31, 2012				$	663,716			$	1,655,876			$	4,877,951			$	7,197,543
Transfers into Level 32					4,560				674,112				714,628				1,393,300
Transfers out of Level 33					—				—				(889,422	)			(889,422	)
Accrued discounts/premiums					—				—				—				—
Net realized gain (loss)					—				3,696				(1,498	)			2,198
Net change in unrealized appreciation/depreciation4					418,263				(678,693	)			261,564				1,134
Purchases					221,407				824,749				2,189,481				3,235,637
Sales					—				(1,202,465	)			(1,460,073	)			(2,662,538	)
Closing Balance, as of February 28, 2013				$	1,307,946			$	1,277,275			$	5,692,631			$	8,277,852

2

As of August 31, 2012, the Trust used observable inputs in determining the value of certain investments. As of February 28, 2013, the Trust used significant unobservable inputs in determining the value of the same investments. As a result, investments with a beginning of period value of $1,393,300 transferred from Level 2 to Level 3 in the disclosure hierarchy.

3

As of August 31, 2012, the Trust used significant unobservable inputs in determining the value of certain investments. As of February 28, 2013, the Trust used observable inputs in determining the value of the same investments. As a result, investments with a beginning of period value of $889,422 transferred from Level 3 to Level 2 in the disclosure hierarchy.

4

Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations. The change in unrealized appreciation/depreciation on investments still held as of February 28, 2013 was $390,756.

See Notes to Financial Statements.

72

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Schedule of Investments (concluded)	BlackRock High Income Shares (HIS)

The following table summarizes the valuation techniques used and unobservable inputs developed by the Global Valuation Committee to determine the value of certain of the Trust’s Level 3 investments as of February 28, 2013. The table does not include Level 3 investments with values derived utilizing third party pricing information without adjustment. A significant change in third party pricing information could result in a significantly lower or higher value of such Level 3 investments. The value of Level 3 investments derived using third party pricing information is $5,912,283.

Value

Valuation Techniques

Unobservable Inputs1

Range of Unobservable Inputs Utilized

Assets:

Common Stocks

$

864,928

Market Comparable Companies

EBITDA Multiple

6.56x

104,364

Restructure Terms2

N/A

—

Corporate Bonds

714

Estimated Final Distribution

Recovery Rate

0.05%

519,961

Market Comparable Companies

Yield

12.10%

522,000

Cost3

N/A

—

Floating Rate Loan Interests

353,602

Discounted Cash Flow

Yield

9.50%

Total

$

2,365,569

1

A change to the unobservable input may result in a significant change to the value of the investment as follows:

Unobservable Input				Impact to Value if Input Increases				Impact to Value if Input Decreases
EBITDA Multiple				Increase				Decrease
Recovery Rate				Increase				Decrease
Yield				Decrease				Increase

2

Investment is valued based on the company’s financial restructuring plan.

3

The Trust fair values certain of its Level 3 investments using prior transaction prices (acquisition cost), although the transaction may not have occurred during the current reporting period. In such cases, these investments are generally privately held investments. There may not be a secondary market, and/or there are a limited number of investors. The determination to fair value such investments at cost is based upon factors consistent with the principles of fair value measurement that are reasonably available to the Global Valuation Committee, or its delegate. Valuations are reviewed utilizing available market information to determine if the carrying value should be adjusted. Such market data may include, but is not limited to, observations of the trading multiples of public companies considered comparable to the private companies being valued, financial or operational information released by the company, and/or news or corporate events that affect the investment. Valuations may be adjusted to account for company-specific issues, the lack of liquidity inherent in a nonpublic investment and the fact that comparable public companies are not identical to the investments being fair valued by the Trust.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

73

Schedule of Investments February 28, 2013 (Unaudited)	BlackRock High Yield Trust (BHY) (Percentages shown are based on Net Assets)

Common Stocks								Shares				Value
Auto Components — 0.5%
Dana Holding Corp.									10,286			$	172,085
Delphi Automotive Plc (a)									1,500				62,290
													234,375
Biotechnology — 0.0%
Ironwood Pharmaceuticals, Inc. (a)									1,210				18,065
Capital Markets — 1.4%
American Capital Ltd. (a)									46,052				643,807
E*Trade Financial Corp. (a)									4,900				52,479
													696,286
Chemicals — 0.4%
ADA-ES, Inc. (a)									300				7,971
CF Industries Holdings, Inc.									500				100,415
Huntsman Corp.									5,600				96,488
													204,874
Commercial Banks — 0.5%
CIT Group, Inc. (a)									5,216				218,342
Diversified Financial Services — 0.1%
Bank of America Corp.									4,000				44,920
Diversified Telecommunication Services — 0.3%
Broadview Networks Holdings, Inc. (a)									6,337				42,394
Level 3 Communications, Inc. (a)									4,300				85,914
													128,308
Hotels, Restaurants & Leisure — 0.2%
Caesars Entertainment Corp. (a)									6,704				83,800
Travelport LLC (a)									12,460				125
													83,925
Insurance — 0.9%
American International Group, Inc. (a)									11,116				422,519
Media — 0.8%
Charter Communications, Inc., Class A (a)									4,631				400,072
Oil, Gas & Consumable Fuels — 0.0%
African Petroleum Corp. Ltd. (a)									17,200				3,338
Paper & Forest Products — 0.3%
Ainsworth Lumber Co. Ltd. (a)									8,875				28,142
Ainsworth Lumber Co. Ltd. (a)(b)									2,507				7,925
NewPage Corp. (a)									1,460				124,100
													160,167
Semiconductors & Semiconductor Equipment — 0.1%
Freescale Semiconductor Ltd. (a)									747				11,526
NXP Semiconductors NV (a)									1,568				50,678
													62,204
Software — 0.1%
Bankruptcy Management Solutions, Inc. (a)									91				1
HMH Holdings/EduMedia (a)									3,231				59,237
													59,238
Total Common Stocks — 5.6%													2,736,633
Corporate Bonds									Par (000	)
Aerospace & Defense — 0.9%
Bombardier, Inc., 4.25%, 1/15/16 (b)					USD				100				103,750
Huntington Ingalls Industries, Inc., 6.88%, 3/15/18									110				119,831
Kratos Defense & Security Solutions, Inc., 10.00%, 6/01/17									210				231,788
													455,369
Air Freight & Logistics — 0.4%
National Air Cargo Group, Inc.:
Series 1, 12.38%, 9/02/15									92				92,274
Series 2, 12.38%, 10/08/15									93				93,427
													185,701

Corporate Bonds								Par (000)				Value
Airlines — 1.6%
American Airlines Pass-Through Trust, Series 2011-2, Class A, 8.63%, 4/15/23					USD				185			$	192,614
Continental Airlines Pass-Through Trust:
Series 2010-1, Class B 6.00%, 7/12/20									82				84,035
Series 2012-3, Class C 6.13%, 4/29/18									155				154,613
Delta Air Lines Pass-Through Trust, Series 2002-1, Class G-1, 6.72%, 7/02/24									100				110,212
US Airways Pass-Through Trust:
Series 2011-1, Class C 10.88%, 10/22/14									90				95,226
Series 2012-1, Class C 9.13%, 10/01/15									74				79,180
Series 2012-2, Class B 6.75%, 12/03/22									60				62,700
													778,580
Auto Components — 2.4%
Dana Holding Corp., 6.75%, 2/15/21									180				195,975
Delphi Corp.:
6.13%, 5/15/21									15				16,350
5.00%, 2/15/23									25				26,031
Icahn Enterprises LP, 8.00%, 1/15/18									650				696,312
IDQ Holdings, Inc., 11.50%, 4/01/17 (b)									85				93,075
Jaguar Land Rover Automotive Plc (FKA Jaguar Land Rover Plc), 8.25%, 3/15/20					GBP				100				170,092
													1,197,835
Beverages — 0.3%
Crown European Holdings SA, 7.13%, 8/15/18					EUR				92				130,020
Building Products — 0.8%
Building Materials Corp. of America (b):
7.00%, 2/15/20					USD				20				21,650
6.75%, 5/01/21									160				171,800
Momentive Performance Materials, Inc., 8.88%, 10/15/20									60				61,575
USG Corp., 9.75%, 1/15/18									115				135,269
													390,294
Capital Markets — 0.5%
E*Trade Financial Corp., Series A, 0.00%, 8/31/19 (c)(d)									71				74,239
KKR Group Finance Co. LLC, 6.38%, 9/29/20 (b)									85				99,958
Nuveen Investments, Inc., 9.13%, 10/15/17 (b)									47				47,235
													221,432
Chemicals — 3.7%
Axiall Corp., 4.88%, 5/15/23 (b)									29				29,435
Basell Finance Co. BV, 8.10%, 3/15/27 (b)									60				79,200
Celanese US Holdings LLC, 5.88%, 6/15/21									234				255,645
Eagle Spinco, Inc., 4.63%, 2/15/21 (b)									64				65,040
Huntsman International LLC, 8.63%, 3/15/21									25				28,250
INEOS Finance Plc (b):
8.38%, 2/15/19									100				109,500
7.50%, 5/01/20									75				80,812
Kraton Polymers LLC, 6.75%, 3/01/19									20				20,800
LyondellBasell Industries NV, 5.75%, 4/15/24									485				563,812
Nexeo Solutions LLC, 8.38%, 3/01/18									15				14,663
Nufarm Australia Ltd., 6.38%, 10/15/19 (b)									35				37,100
Orion Engineered Carbons Bondco GmbH, 9.63%, 6/15/18 (b)									200				220,000
PolyOne Corp., 7.38%, 9/15/20									35				38,763
Rockwood Specialties Group, Inc., 4.63%, 10/15/20									125				129,375
Tronox Finance LLC, 6.38%, 8/15/20 (b)									158				157,012
													1,829,407
Commercial Banks — 0.9%
CIT Group, Inc.:
5.25%, 3/15/18									130				139,750
6.63%, 4/01/18 (b)									50				56,750
5.50%, 2/15/19 (b)									80				87,000
5.00%, 8/15/22									70				74,900
6.00%, 4/01/36									90				88,167
													446,567

See Notes to Financial Statements.

74

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Schedule of Investments (continued)	BlackRock High Yield Trust (BHY) (Percentages shown are based on Net Assets)

Corporate Bonds								Par (000)				Value
Commercial Services & Supplies — 2.5%
ADS Waste Holdings, Inc., 8.25%, 10/01/20 (b)					USD				46			$	49,450
ARAMARK Holdings Corp. (b):
8.63%, 5/01/16 (e)									70				71,401
5.75%, 3/15/20 (f)									108				110,160
Aviation Capital Group Corp., 6.75%, 4/06/21 (b)									92				99,576
AWAS Aviation Capital Ltd., 7.00%, 10/17/16 (b)									162				169,680
Brickman Group Holdings, Inc., 9.13%, 11/01/18 (b)									7				7,525
Catalent Pharma Solutions, Inc., 7.88%, 10/15/18 (b)									101				102,262
Clean Harbors, Inc., 5.25%, 8/01/20									88				90,640
Covanta Holding Corp., 6.38%, 10/01/22									135				146,385
HDTFS, Inc. (b):
5.88%, 10/15/20									10				10,400
6.25%, 10/15/22									45				48,375
Mead Products LLC/ACCO Brands Corp., 6.75%, 4/30/20 (b)									14				14,823
Mobile Mini, Inc., 7.88%, 12/01/20									60				66,750
RSC Equipment Rental, Inc., 8.25%, 2/01/21									77				87,299
Verisure Holding AB, 8.75%, 9/01/18					EUR				100				140,999
West Corp., 8.63%, 10/01/18					USD				25				26,625
													1,242,350
Communications Equipment — 1.0%
Alcatel-Lucent USA, Inc.:
6.50%, 1/15/28									10				7,700
6.45%, 3/15/29									32				24,880
Avaya, Inc., 9.75%, 11/01/15									34				33,448
Zayo Group LLC/Zayo Capital, Inc.:
8.13%, 1/01/20									155				173,212
10.13%, 7/01/20									220				257,950
													497,190
Computers & Peripherals — 0.2%
EMC Corp., Series B, 1.75%, 12/01/13 (d)									31				44,834
SanDisk Corp., 1.50%, 8/15/17 (d)									50				61,562
													106,396
Construction & Engineering — 0.3%
Boart Longyear Management Property Ltd., 7.00%, 4/01/21 (b)									35				36,313
H&E Equipment Services, Inc., 7.00%, 9/01/22 (b)									79				86,505
Weekley Homes LLC, 6.00%, 2/01/23 (b)									26				26,520
													149,338
Construction Materials — 2.2%
HD Supply, Inc. (b):
8.13%, 4/15/19									215				242,144
11.00%, 4/15/20									215				259,075
7.50%, 7/15/20									336				336,420
11.50%, 7/15/20									85				97,963
Xefin Lux SCA, 8.00%, 6/01/18					EUR				100				140,183
													1,075,785
Consumer Finance — 1.5%
Credit Acceptance Corp., 9.13%, 2/01/17					USD				80				87,200
Ford Motor Credit Co. LLC:
12.00%, 5/15/15									120				145,650
6.63%, 8/15/17									230				268,594
5.88%, 8/02/21									200				228,108
													729,552
Containers & Packaging — 1.6%
Ardagh Packaging Finance Plc (b):
9.13%, 10/15/20									200				218,000
7.00%, 11/15/20									200				200,500
Berry Plastics Corp.:
4.18%, 9/15/14 (g)									50				50,000
8.25%, 11/15/15									20				20,844
9.75%, 1/15/21									30				34,650
Corporate Bonds								Par (000)				Value
Containers & Packaging (concluded)
Crown Americas LLC/Crown Americas Capital Corp. III, 6.25%, 2/01/21					USD				2			$	2,180
Crown Americas LLC/Crown Americas Capital Corp. IV, 4.50%, 1/15/23 (b)									20				19,550
Graphic Packaging International, Inc., 7.88%, 10/01/18									60				66,000
Pactiv LLC, 7.95%, 12/15/25									68				63,750
Tekni-Plex, Inc., 9.75%, 6/01/19 (b)									92				101,660
													777,134
Distributors — 0.5%
VWR Funding, Inc., 7.25%, 9/15/17 (b)									229				241,023
Diversified Consumer Services — 1.1%
313 Group, Inc. (b):
6.38%, 12/01/19									165				160,875
8.75%, 12/01/20									98				96,775
Laureate Education, Inc., 9.25%, 9/01/19 (b)									205				222,937
ServiceMaster Co., 8.00%, 2/15/20									35				37,100
													517,687
Diversified Financial Services — 5.1%
Air Lease Corp., 4.50%, 1/15/16									100				102,250
Aircastle Ltd., 6.25%, 12/01/19									53				57,108
Aircastle, Ltd., 6.75%, 4/15/17									55				60,638
Ally Financial, Inc., 8.00%, 11/01/31									672				844,200
CNG Holdings, Inc., 9.38%, 5/15/20 (b)									80				78,900
DPL, Inc.:
6.50%, 10/15/16									52				54,600
7.25%, 10/15/21									143				153,367
Leucadia National Corp., 8.13%, 9/15/15									140				158,200
Reynolds Group Issuer, Inc.:
9.00%, 4/15/19									100				106,000
9.88%, 8/15/19									175				191,625
5.75%, 10/15/20									390				402,675
6.88%, 2/15/21									115				122,762
WMG Acquisition Corp.:
11.50%, 10/01/18									72				83,610
6.00%, 1/15/21 (b)									54				55,890
													2,471,825
Diversified Telecommunication Services — 2.2%
Broadview Networks Holdings, Inc., 10.50%, 11/15/17									98				95,306
Cequel Communications Escrow I LLC/Cequel Communications Escrow Capital Corp., 6.38%, 9/15/20 (b)									75				77,531
Consolidated Communications Finance Co., 10.88%, 6/01/20 (b)									55				62,288
Level 3 Communications, Inc., 8.88%, 6/01/19 (b)									55				59,400
Level 3 Financing, Inc.:
8.13%, 7/01/19									355				386,950
7.00%, 6/01/20 (b)									75				78,750
8.63%, 7/15/20									140				155,400
tw telecom Holdings, Inc., 5.38%, 10/01/22									50				52,125
Windstream Corp.:
8.13%, 8/01/13									25				25,655
7.88%, 11/01/17									70				79,275
7.50%, 4/01/23									13				13,585
6.38%, 8/01/23 (b)									12				11,760
													1,098,025
Electric Utilities — 0.2%
Mirant Mid Atlantic Pass-Through Trust, Series B, 9.13%, 6/30/17									84				93,291
Electrical Equipment — 0.3%
Belden, Inc., 5.50%, 9/01/22 (b)									60				61,500
General Cable Corp., 5.75%, 10/01/22 (b)									100				102,500
													164,000

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

75

Schedule of Investments (continued)	BlackRock High Yield Trust (BHY) (Percentages shown are based on Net Assets)

Corporate Bonds								Par (000)				Value
Electronic Equipment, Instruments & Components — 0.1%
Jabil Circuit, Inc., 8.25%, 3/15/18					USD				40			$	48,100
Energy Equipment & Services — 4.1%
Atwood Oceanics, Inc., 6.50%, 2/01/20									25				27,187
Calfrac Holdings LP, 7.50%, 12/01/20 (b)									55				55,275
Compagnie Générale de Géophysique, Veritas:
7.75%, 5/15/17									65				67,031
6.50%, 6/01/21									200				208,000
FTS International Services LLC/FTS International Bonds, Inc., 8.13%, 11/15/18 (b)									196				202,860
Genesis Energy LP/Genesis Energy Finance Corp., 5.75%, 2/15/21 (b)									28				28,980
Gulfmark Offshore, Inc., 6.38%, 3/15/22									25				25,813
Hornbeck Offshore Services, Inc., 5.88%, 4/01/20									50				52,500
MEG Energy Corp. (b):
6.50%, 3/15/21									230				242,650
6.38%, 1/30/23									60				62,100
Oil States International, Inc.:
6.50%, 6/01/19									50				53,500
5.13%, 1/15/23 (b)									20				20,000
Peabody Energy Corp.:
6.00%, 11/15/18									38				40,375
6.25%, 11/15/21									192				199,680
7.88%, 11/01/26									65				69,550
4.75%, 12/15/66 (d)									118				100,226
Precision Drilling Corp.:
6.63%, 11/15/20									10				10,625
6.50%, 12/15/21									45				47,700
Seadrill Ltd., 5.63%, 9/15/17 (b)									410				415,125
Tervita Corp., 8.00%, 11/15/18 (b)									61				62,830
													1,992,007
Food & Staples Retailing — 0.1%
Rite Aid Corp., 9.25%, 3/15/20									60				67,200
Food Products — 0.5%
Darling International, Inc., 8.50%, 12/15/18									20				22,750
Del Monte Corp., 7.63%, 2/15/19									9				9,338
Post Holdings, Inc., 7.38%, 2/15/22									110				118,800
Smithfield Foods, Inc., 6.63%, 8/15/22									82				89,175
													240,063
Health Care Equipment & Supplies — 2.8%
Biomet, Inc. (b):
6.50%, 8/01/20									296				313,020
6.50%, 10/01/20									383				394,490
DJO Finance LLC:
8.75%, 3/15/18									63				69,536
7.75%, 4/15/18									20				19,900
9.88%, 4/15/18									80				85,400
Fresenius Medical Care US Finance II, Inc., 5.63%, 7/31/19 (b)									204				220,830
Fresenius Medical Care US Finance, Inc., 5.75%, 2/15/21 (b)									50				54,500
Fresenius US Finance II, Inc., 9.00%, 7/15/15 (b)									80				91,800
Kinetic Concepts, Inc./KCI USA, Inc., 12.50%, 11/01/19 (b)									55				53,900
Teleflex, Inc., 6.88%, 6/01/19									50				54,375
													1,357,751
Health Care Providers & Services — 7.7%
Aviv Healthcare Properties LP, 7.75%, 2/15/19									95				101,887
CHS/Community Health Systems, Inc.:
5.13%, 8/15/18									140				147,175
7.13%, 7/15/20									75				80,812
Crown Newco 3 Plc, 7.00%, 2/15/18					GBP				100				156,635
DaVita HealthCare Partners, Inc., 5.75%, 8/15/22					USD				148				154,290
HCA Holdings, Inc., 6.25%, 2/15/21									183				193,065
Corporate Bonds								Par (000)				Value
Health Care Providers & Services (concluded)
HCA, Inc.:
8.50%, 4/15/19					USD				25			$	27,688
6.50%, 2/15/20									370				414,400
7.88%, 2/15/20									145				160,769
7.25%, 9/15/20									410				455,100
5.88%, 3/15/22									35				37,713
4.75%, 5/01/23									185				184,537
Hologic, Inc., 6.25%, 8/01/20 (b)									158				166,690
IASIS Healthcare LLC, 8.38%, 5/15/19									110				113,300
INC Research LLC, 11.50%, 7/15/19 (b)									59				62,983
inVentiv Health, Inc. (b):
9.00%, 1/15/18									100				104,250
11.00%, 8/15/18									5				4,338
Omnicare, Inc.:
7.75%, 6/01/20									160				177,600
3.75%, 4/01/42 (d)									27				28,148
Symbion, Inc., 8.00%, 6/15/16									55				57,475
Tenet Healthcare Corp.:
6.25%, 11/01/18									177				196,027
8.88%, 7/01/19									360				406,800
6.75%, 2/01/20									90				96,300
4.50%, 4/01/21 (b)									118				116,377
Vanguard Health Holding Co. II LLC:
8.00%, 2/01/18									40				42,600
7.75%, 2/01/19 (b)									75				80,344
													3,767,303
Health Care Technology — 1.1%
IMS Health, Inc. (b):
12.50%, 3/01/18									410				494,050
6.00%, 11/01/20									24				24,960
													519,010
Hotels, Restaurants & Leisure — 2.7%
Caesars Entertainment Operating Co., Inc.:
10.00%, 12/15/18									96				63,360
8.50%, 2/15/20									36				35,100
Caesars Operating Escrow LLC/Caesars Escrow Corp., 9.00%, 2/15/20 (b)									167				164,913
Diamond Resorts Corp., 12.00%, 8/15/18									200				220,000
El Dorado Resorts LLC, 8.63%, 6/15/19 (b)									25				24,844
MCE Finance Ltd., 5.00%, 2/15/21 (b)									200				200,000
MTR Gaming Group, Inc., 11.50%, 8/01/19 (e)									25				26,130
Regal Entertainment Group, 5.75%, 2/01/25									44				43,120
Six Flags Entertainment Corp., 5.25%, 1/15/21 (b)									100				98,000
Station Casinos LLC:
3.66%, 6/18/18									111				111,000
7.50%, 3/01/21 (b)(f)									194				195,212
Travelport LLC (g):
4.91%, 9/01/14									20				18,200
6.31%, 12/01/16 (b)(e)									70				63,640
Tropicana Entertainment LLC, 9.63%, 12/15/14 (a)(h)									25				—
Wynn Las Vegas LLC, 5.38%, 3/15/22									64				67,280
													1,330,799
Household Durables — 2.8%
Ashton Woods USA LLC/Ashton Woods Finance Corp., 6.88%, 2/15/21 (b)									38				38,190
Beazer Homes USA, Inc., 6.63%, 4/15/18									10				10,687
Brookfield Residential Properties, Inc., 6.50%, 12/15/20 (b)									70				74,200
Jarden Corp., 8.00%, 5/01/16									40				41,950
K. Hovnanian Enterprises, Inc., 7.25%, 10/15/20 (b)									160				176,000
Libbey Glass, Inc., 6.88%, 5/15/20									100				107,250
PH Holding LLC, 9.75%, 12/31/17									55				53,900
Pulte Group, Inc., 6.38%, 5/15/33									30				30,450
The Ryland Group, Inc., 6.63%, 5/01/20									60				66,000

See Notes to Financial Statements.

76

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

Schedule of Investments (continued)	BlackRock High Yield Trust (BHY) (Percentages shown are based on Net Assets)

Corporate Bonds								Par (000)				Value
Household Durables (concluded)
Spie BondCo 3 SCA, 11.00%, 8/15/19					EUR				100			$	145,569
Standard Pacific Corp.:
10.75%, 9/15/16					USD				300				373,500
8.38%, 1/15/21									170				201,875
United Rentals North America, Inc., 5.75%, 7/15/18									43				46,279
													1,365,850
Household Products — 0.9%
Ontex IV SA, 7.50%, 4/15/18 (b)					EUR				100				135,777
Spectrum Brands Escrow Corp. (b):
6.38%, 11/15/20					USD				63				67,016
6.63%, 11/15/22									40				43,100
Spectrum Brands, Inc.:
9.50%, 6/15/18									160				181,400
6.75%, 3/15/20 (b)									17				18,318
													445,611
Independent Power Producers & Energy Traders — 3.9%
The AES Corp., 7.38%, 7/01/21									45				50,850
Calpine Corp. (b):
7.25%, 10/15/17									27				28,721
7.50%, 2/15/21									13				14,138
7.88%, 1/15/23									63				69,773
Energy Future Intermediate Holding Co. LLC:
6.88%, 8/15/17 (b)									125				131,875
10.00%, 12/01/20 (b)									265				298,787
10.00%, 12/01/20									508				576,580
GenOn REMA LLC, Series B, 9.24%, 7/02/17									70				77,191
Laredo Petroleum, Inc.:
9.50%, 2/15/19									90				101,700
7.38%, 5/01/22									60				65,100
NRG Energy, Inc.:
7.63%, 1/15/18									253				290,001
6.63%, 3/15/23 (b)									105				111,825
QEP Resources, Inc.:
5.38%, 10/01/22									56				58,660
5.25%, 5/01/23									40				41,400
													1,916,601
Industrial Conglomerates — 0.2%
Sequa Corp., 7.00%, 12/15/17 (b)									100				100,750
Insurance — 0.5%
A-S Co-Issuer Subsidiary, Inc./A-S Merger Sub LLC, 7.88%, 12/15/20 (b)									186				186,930
CNO Financial Group, Inc., 6.38%, 10/01/20 (b)									37				39,220
MPL 2 Acquisition Canco, Inc., 9.88%, 8/15/18 (b)									40				39,600
													265,750
Internet Software & Services — 0.1%
Equinix, Inc., 5.00%, 2/29/20									25				25,000
IT Services — 3.5%
Ceridian Corp., 8.88%, 7/15/19 (b)									210				236,775
Epicor Software Corp., 8.63%, 5/01/19									87				93,743
First Data Corp.:
7.38%, 6/15/19 (b)									265				278,581
8.88%, 8/15/20 (b)									90				99,450
6.75%, 11/01/20 (b)									326				334,557
8.25%, 1/15/21 (b)									20				20,450
11.25%, 1/15/21 (b)									82				83,640
12.63%, 1/15/21									181				192,991
SunGard Data Systems, Inc.:
7.38%, 11/15/18									150				161,062
6.63%, 11/01/19 (b)									130				133,575
WEX, Inc., 4.75%, 2/01/23 (b)									81				78,368
													1,713,192
Machinery — 1.7%
Dematic SA, 7.75%, 12/15/20 (b)									15				15,338
The Manitowoc Co., Inc., 5.88%, 10/15/22									80				82,000
SPX Corp., 6.88%, 9/01/17									30				33,525
Corporate Bonds								Par (000)				Value
Machinery (concluded)
Terex Corp., 6.00%, 5/15/21					USD				75			$	77,812
Trinseo Materials Operating SCA, 8.75%, 2/01/19 (b)									67				66,749
UR Merger Sub Corp.:
7.38%, 5/15/20									75				82,125
7.63%, 4/15/22									421				466,257
6.13%, 6/15/23									30				31,500
													855,306
Media — 9.2%
Affinion Group, Inc., 7.88%, 12/15/18									63				47,880
AMC Networks, Inc.:
7.75%, 7/15/21									40				45,400
4.75%, 12/15/22									59				58,779
Cablevision Systems Corp., 5.88%, 9/15/22									95				92,150
CCO Holdings LLC:
5.25%, 9/30/22									140				137,725
5.13%, 2/15/23									100				97,500
Cengage Learning Acquisitions, Inc., 11.50%, 4/15/20 (b)									99				78,210
Checkout Holding Corp., 11.47%, 11/15/15 (b)(c)									71				52,451
Cinemark USA, Inc.:
8.63%, 6/15/19									35				38,806
5.13%, 12/15/22 (b)									36				36,180
Clear Channel Communications, Inc.:
9.00%, 12/15/19 (b)(f)									85				79,050
9.00%, 3/01/21									76				68,780
Clear Channel Worldwide Holdings, Inc.:
6.50%, 11/15/22 (b)									102				106,590
6.50%, 11/15/22 (b)									277				291,542
Series B, 7.63%, 3/15/20									187				193,545
DISH DBS Corp.:
5.88%, 7/15/22									250				263,750
5.00%, 3/15/23 (b)									110				109,175
Harron Communications LP, 9.13%, 4/01/20 (b)									60				66,000
Intelsat Jackson Holdings SA:
7.25%, 10/15/20									110				117,975
6.63%, 12/15/22 (b)									27				27,203
Intelsat Luxembourg SA:
11.25%, 2/04/17									210				223,125
11.50%, 2/04/17									325				346,102
Interactive Data Corp., 10.25%, 8/01/18									220				249,425
The Interpublic Group of Cos., Inc., 10.00%, 7/15/17									55				59,331
Live Nation Entertainment, Inc., 8.13%, 5/15/18 (b)									125				135,625
The McClatchy Co., 9.00%, 12/15/22 (b)									70				74,025
NAI Entertainment Holdings LLC, 8.25%, 12/15/17 (b)									94				102,460
The New York Times Co., 6.63%, 12/15/16									225				245,812
Nielsen Finance LLC, 7.75%, 10/15/18									319				353,292
ProQuest LLC, 9.00%, 10/15/18 (b)									29				28,783
ProtoStar I Ltd., 18.00%, 10/15/13 (a)(b)(d)(h)									414				207
Sterling Entertainment Corp., 9.75%, 12/15/19									150				150,000
Unitymedia GmbH, 9.50%, 3/15/21					EUR				100				148,650
Unitymedia Hessen GmbH & Co. KG, 7.50%, 3/15/19									112				159,016
Univision Communications, Inc., 6.75%, 9/15/22 (b)					USD				78				84,240
WaveDivision Escrow LLC/WaveDivision Escrow Corp., 8.13%, 9/01/20 (b)									55				57,750
Ziggo Bond Co. BV, 8.00%, 5/15/18					EUR				65				91,650
													4,518,184
Metals & Mining — 3.7%
ArcelorMittal:
9.50%, 2/15/15					USD				40				45,150
4.25%, 8/05/15									65				67,297
4.25%, 3/01/16									25				25,750
5.00%, 2/25/17									68				70,754

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

77

Schedule of Investments (continued)	BlackRock High Yield Trust (BHY) (Percentages shown are based on Net Assets)

Corporate Bonds								Par (000)				Value
Metals & Mining (concluded)
ArcelorMittal (concluded):
6.13%, 6/01/18					USD				68			$	73,324
6.00%, 3/01/21									10				10,613
6.75%, 2/25/22									80				88,089
7.50%, 10/15/39									10				10,367
7.25%, 3/01/41									38				37,905
FMG Resources August 2006 Property Ltd. (b):
6.38%, 2/01/16									27				27,731
6.00%, 4/01/17									75				78,187
Global Brass and Copper, Inc., 9.50%, 6/01/19 (b)									50				54,375
GoldCorp, Inc., 2.00%, 8/01/14 (d)									85				89,037
Kaiser Aluminum Corp., 8.25%, 6/01/20									35				39,112
New Gold, Inc., 7.00%, 4/15/20 (b)									25				27,000
New World Resources NV, 7.88%, 5/01/18					EUR				60				80,329
Newmont Mining Corp., Series A, 1.25%, 7/15/14 (d)					USD				90				99,394
Novelis, Inc., 8.75%, 12/15/20									545				610,400
Schmolz & Bickenbach Luxembourg SA, 9.88%, 5/15/19					EUR				100				116,886
Steel Dynamics, Inc., 6.38%, 8/15/22 (b)					USD				40				42,800
Taseko Mines Ltd., 7.75%, 4/15/19									70				69,650
Walter Energy, Inc., 9.88%, 12/15/20 (b)									22				23,925
													1,788,075
Multiline Retail — 0.7%
Dollar General Corp., 4.13%, 7/15/17									134				141,705
Dufry Finance SCA, 5.50%, 10/15/20 (b)									200				208,500
													350,205
Oil, Gas & Consumable Fuels — 8.9%
Access Midstream Partners LP:
6.13%, 7/15/22									45				48,263
4.88%, 5/15/23									60				59,400
Alpha Appalachia Holdings, Inc., 3.25%, 8/01/15 (d)									142				135,521
Aurora USA Oil & Gas, Inc., 9.88%, 2/15/17 (b)									115				123,625
BreitBurn Energy Partners LP, 7.88%, 4/15/22									40				42,500
Carrizo Oil & Gas, Inc., 7.50%, 9/15/20									38				39,900
Chaparral Energy, Inc., 7.63%, 11/15/22									35				37,975
Chesapeake Energy Corp.:
7.25%, 12/15/18									20				22,600
6.63%, 8/15/20									30				32,850
6.88%, 11/15/20									30				33,000
6.13%, 2/15/21									11				11,660
Concho Resources, Inc.:
7.00%, 1/15/21									25				27,625
6.50%, 1/15/22									52				56,680
5.50%, 10/01/22									38				39,568
CONSOL Energy, Inc., 8.25%, 4/01/20									50				55,125
Continental Resources, Inc., 7.13%, 4/01/21									60				68,100
Crosstex Energy LP, 8.88%, 2/15/18									25				26,938
CVR Refining LLC/Coffeyville Finance, Inc., 6.50%, 11/01/22 (b)									65				65,487
Denbury Resources, Inc., 4.63%, 7/15/23									128				125,600
Energy XXI Gulf Coast, Inc.:
9.25%, 12/15/17									75				84,750
7.75%, 6/15/19									90				96,525
EP Energy LLC/Everest Acquisition Finance, Inc.:
6.88%, 5/01/19									55				59,950
7.75%, 9/01/22									35				37,888
EV Energy Partners LP, 8.00%, 4/15/19									25				26,188
Halcon Resources Corp., 8.88%, 5/15/21 (b)									72				77,400
Hilcorp Energy I LP, 7.63%, 4/15/21 (b)									45				49,612
Holly Energy Partners LP, 6.50%, 3/01/20 (b)									25				26,750
Kodiak Oil & Gas Corp., 8.13%, 12/01/19									60				67,500
Linn Energy LLC:
6.50%, 5/15/19									7				7,245
6.25%, 11/01/19 (b)									238				242,760
8.63%, 4/15/20									20				22,125
7.75%, 2/01/21									60				64,800
Corporate Bonds								Par (000)				Value
Oil, Gas & Consumable Fuels (concluded)
MarkWest Energy Partners LP:
5.50%, 2/15/23					USD				45			$	47,250
4.50%, 7/15/23									25				24,438
Newfield Exploration Co., 6.88%, 2/01/20									135				144,787
Northern Oil and Gas, Inc., 8.00%, 6/01/20									55				57,475
Oasis Petroleum, Inc.:
7.25%, 2/01/19									35				37,800
6.50%, 11/01/21									50				54,000
Offshore Group Investments Ltd., 11.50%, 8/01/15									124				135,160
PBF Holding Co. LLC, 8.25%, 2/15/20 (b)									35				38,063
PDC Energy, Inc., 7.75%, 10/15/22 (b)									35				37,013
PetroBakken Energy Ltd., 8.63%, 2/01/20 (b)									112				114,240
Petroleum Geo-Services ASA, 7.38%, 12/15/18 (b)									95				104,500
Plains Exploration & Production Co., 6.88%, 2/15/23									175				201,687
Range Resources Corp.:
8.00%, 5/15/19									20				22,000
5.75%, 6/01/21									166				176,790
5.00%, 8/15/22									68				69,530
Regency Energy Partners LP:
6.88%, 12/01/18									70				75,600
5.50%, 4/15/23									115				121,325
Sabine Pass Liquefaction LLC, 5.63%, 2/01/21 (b)									270				278,775
Sabine Pass Liquified Natural Gas LP:
7.50%, 11/30/16									205				226,525
6.50%, 11/01/20 (b)									55				58,025
SandRidge Energy, Inc., 7.50%, 2/15/23									89				93,227
SESI LLC:
6.38%, 5/01/19									55				58,987
7.13%, 12/15/21									40				44,300
SM Energy Co.:
6.63%, 2/15/19									20				21,450
6.50%, 11/15/21									45				48,937
6.50%, 1/01/23									65				70,362
Tesoro Logistics LP/Tesoro Logistics Finance Corp., 5.88%, 10/01/20 (b)									26				27,105
Vanguard Natural Resources, 7.88%, 4/01/20									40				42,000
													4,347,261
Paper & Forest Products — 0.7%
Ainsworth Lumber Co. Ltd., 7.50%, 12/15/17 (b)									60				64,650
Boise Paper Holdings LLC:
9.00%, 11/01/17									15				16,219
8.00%, 4/01/20									5				5,513
Clearwater Paper Corp., 7.13%, 11/01/18									95				102,837
Longview Fibre Paper & Packaging, Inc., 8.00%, 6/01/16 (b)									55				57,750
NewPage Corp., 11.38%, 12/31/14 (a)(h)									337				—
Sappi Papier Holding GmbH, 6.63%, 4/15/21 (b)									25				25,875
Unifrax I LLC/Unifrax Holding Co., 7.50%, 2/15/19 (b)									45				45,675
													318,519
Pharmaceuticals — 1.2%
Jaguar Holding Co. II/Jaguar Merger Sub, Inc., 9.50%, 12/01/19 (b)									68				78,030
Mylan, Inc., 6.00%, 11/15/18 (b)									20				22,027
Valeant Pharmaceuticals International (b):
6.50%, 7/15/16									130				136,581
6.88%, 12/01/18									132				143,385
6.38%, 10/15/20									70				75,338
Warner Chilcott Co. LLC/Warner Chilcott Finance LLC, 7.75%, 9/15/18									102				110,160
													565,521
Professional Services — 0.2%
Truven Health Analytics, Inc., 10.63%, 6/01/20 (b)									90				100,800

See Notes to Financial Statements.

78

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

Schedule of Investments (continued)	BlackRock High Yield Trust (BHY) (Percentages shown are based on Net Assets)

Corporate Bonds								Par (000)				Value
Real Estate Investment Trusts (REITs) — 0.8%
Cantor Commercial Real Estate Co. LP/CCRE Finance Corp., 7.75%, 2/15/18 (b)					USD				46			$	46,230
Felcor Lodging LP:
6.75%, 6/01/19									181				194,462
5.63%, 3/01/23 (b)									41				41,256
The Rouse Co. LP, 6.75%, 11/09/15									85				88,400
													370,348
Real Estate Management & Development — 2.4%
CBRE Services, Inc., 6.63%, 10/15/20									55				59,400
Crescent Resources LLC/Crescent Ventures, Inc., 10.25%, 8/15/17 (b)									145				156,237
Mattamy Group Corp., 6.50%, 11/15/20 (b)									60				59,775
Realogy Corp.:
11.50%, 4/15/17									60				63,975
12.00%, 4/15/17									15				16,013
7.88%, 2/15/19 (b)									345				375,187
7.63%, 1/15/20 (b)									120				135,300
9.00%, 1/15/20 (b)									55				63,113
Shea Homes LP, 8.63%, 5/15/19									230				255,300
													1,184,300
Road & Rail — 0.8%
The Hertz Corp.:
7.50%, 10/15/18									130				142,025
6.75%, 4/15/19 (b)									50				53,875
7.38%, 1/15/21									170				187,425
													383,325
Semiconductors & Semiconductor Equipment — 0.6%
Micron Technology, Inc., Series C, 2.38%, 5/01/32 (d)									41				45,638
NXP BV/NXP Funding LLC, 5.75%, 2/15/21 (b)									200				204,500
Spansion LLC, 7.88%, 11/15/17									50				52,750
													302,888
Software — 1.3%
IAC/InterActiveCorp, 4.75%, 12/15/22 (b)									71				69,403
Igloo Holdings Corp., 8.25%, 12/15/17 (b)(e)									47				48,175
Infor US, Inc., 9.38%, 4/01/19									280				314,300
Interface Security Systems Holdings, Inc./Interface Security Systems LLC, 9.25%, 1/15/18 (b)									27				27,473
Nuance Communications, Inc., 5.38%, 8/15/20 (b)									85				86,062
Sophia LP, 9.75%, 1/15/19 (b)									78				86,287
													631,700
Specialty Retail — 3.2%
Asbury Automotive Group, Inc.:
7.63%, 3/15/17									60				61,725
8.38%, 11/15/20									60				66,900
Claire’s Stores, Inc., 9.00%, 3/15/19 (b)									149				165,390
House of Fraser Funding Plc, 8.88%, 8/15/18					GBP				100				160,807
Limited Brands, Inc.:
8.50%, 6/15/19					USD				140				171,500
5.63%, 2/15/22									25				26,438
Michaels Stores, Inc., 7.75%, 11/01/18									39				42,559
New Academy Finance Co. LLC/New Academy Finance Corp., 8.00%, 6/15/18 (b)(e)									37				38,203
Party City Holdings, Inc., 8.88%, 8/01/20 (b)									173				188,137
Penske Automotive Group, Inc., 5.75%, 10/01/22 (b)									180				188,325
QVC, Inc. (b):
7.13%, 4/15/17									40				41,662
7.50%, 10/01/19									100				110,369
7.38%, 10/15/20									55				60,964
5.13%, 7/02/22									4				4,230
Sally Holdings LLC:
6.88%, 11/15/19									90				100,350
5.75%, 6/01/22									83				87,669
Sonic Automotive, Inc., 9.00%, 3/15/18									65				71,500
													1,586,728
Corporate Bonds								Par (000)				Value
Textiles, Apparel & Luxury Goods — 0.2%
Levi Strauss & Co., 6.88%, 5/01/22					USD				75			$	81,469
PVH Corp., 4.50%, 12/15/22									41				40,436
													121,905
Trading Companies & Distributors — 1.1%
Ashtead Capital, Inc., 6.50%, 7/15/22 (b)									90				96,975
Doric Nimrod Air Finance Alpha Ltd. (b):
Series 2012-1 6.50%, 5/30/21									200				211,431
Series 2012-1 5.13%, 11/30/24									200				215,000
													523,406
Transportation Infrastructure — 0.3%
Aguila 3 SA, 7.88%, 1/31/18									150				159,000
Wireless Telecommunication Services — 4.6%
Cricket Communications, Inc., 7.75%, 10/15/20									96				97,920
Crown Castle International Corp., 5.25%, 1/15/23 (b)									187				191,675
Digicel Group Ltd., 8.25%, 9/30/20 (b)									200				213,300
Digicel Ltd., 8.25%, 9/01/17 (b)									330				348,150
MetroPCS Wireless, Inc., 6.63%, 11/15/20									94				98,348
NII Capital Corp., 7.63%, 4/01/21									35				24,500
Phones4u Finance Plc, 9.50%, 4/01/18					GBP				100				156,635
Sprint Capital Corp., 6.88%, 11/15/28					USD				263				265,630
Sprint Nextel Corp. (b):
9.00%, 11/15/18									456				565,440
7.00%, 3/01/20									235				274,950
													2,236,548
Total Corporate Bonds — 102.8%													50,297,807
Floating Rate Loan Interests (g)
Airlines — 1.2%
Delta Air Lines, Inc., Term Loan B, 4.50%, 4/20/17									96				96,710
Northwest Airlines, Inc.:
Term Loan, 2.32%, 3/10/17									119				110,789
Term Loan, 2.32%, 3/10/17									216				201,096
Term Loan, 1.70%, 9/10/18									97				86,602
Term Loan, 1.70%, 9/10/18									98				87,494
													582,691
Auto Components — 0.1%
Schaeffler AG, Term Loan B2, 6.00%, 1/27/17									70				69,982
Building Products — 0.1%
Wilsonart International Holdings LLC, Term Loan B, 5.50%, 10/31/19									70				70,735
Capital Markets — 0.6%
American Capital Holdings, Inc., Term Loan, 5.50%, 8/22/16									156				157,560
Nuveen Investments, Inc.:
Incremental Term Loan, 7.25%, 5/13/17									80				80,400
Second Lien Term Loan, 8.25%, 2/28/19									70				71,400
													309,360
Chemicals — 0.4%
INEOS US Finance LLC, 6 Year Term Loan, 6.50%, 5/04/18									69				70,056
US Coatings Acquisition, Inc.:
Term Loan, 4.75%, 2/03/20									115				116,396
Term Loan B, 5.25%, 2/03/20					EUR				10				13,188
													199,640
Commercial Services & Supplies — 0.4%
AWAS Finance Luxembourg Sarl, Term Loan B, 5.25%, 6/10/16					USD				97				98,163
Delos Aircraft, Inc., Term Loan 2, 4.75%, 4/12/16									100				100,583
													198,746

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

79

Schedule of Investments (continued)	BlackRock High Yield Trust (BHY) (Percentages shown are based on Net Assets)

Floating Rate Loan Interests (g)								Par (000)				Value
Communications Equipment — 1.4%
Alcatel-Lucent:
Term Loan C, 7.25%, 1/31/19					USD				235			$	237,585
Term Loan D, 7.75%, 1/31/19					EUR				90				117,810
Avaya, Inc., Term Loan B5, 8.00%, 3/30/18					USD				20				19,895
Zayo Group, LLC Refinancing, Term Loan B, 5.25%, 7/12/19									297				298,369
													673,659
Construction & Engineering — 0.5%
Safway Services LLC, Mezzanine Loan, 9.88%, 12/16/17									250				250,000
Construction Materials — 0.4%
HD Supply, Inc., Senior Debt B, 4.50%, 10/12/17									184				184,565
Consumer Finance — 1.4%
Springleaf Financial Funding Co., Term Loan, 5.50%, 5/10/17									661				663,340
Diversified Consumer Services — 0.2%
Laureate Education, Inc., Extended Term Loan, 5.25%, 6/18/18									25				24,879
ServiceMaster Co., New Term Loan, 2.70%, 4/01/17									80				79,729
													104,608
Diversified Telecommunication Services — 0.7%
Level 3 Financing, Inc.:
2016 Term Loan B, 4.75%, 2/01/16									50				50,436
2019 Term Loan B, 5.25%, 8/01/19									40				40,408
Term Loan, 4.75%, 8/01/19									250				252,000
													342,844
Energy Equipment & Services — 1.6%
Dynegy Midwest Generation LLC, Coal Co. Term Loan, 9.25%, 8/04/16									290				298,919
Dynegy Power LLC, Gas Co. Term Loan, 9.25%, 8/04/16									467				486,068
Tervita Corp., Incremental Term Loan, 6.50%, 5/01/18									25				25,129
													810,116
Food & Staples Retailing — 0.0%
Rite Aid Corp., Second Lien Term Loan, 5.75%, 7/07/20									20				20,456
Food Products — 0.1%
Advance Pierre Foods, Inc., Term Loan, 5.75%, 7/10/17									35				35,427
Health Care Equipment & Supplies — 0.5%
Bausch & Lomb, Inc., Term Loan B, 5.25%, 5/17/19									50				50,080
Capital Safety North America, Term Loan, 4.50%, 1/21/19									129				129,025
LHP Hospital Group, Inc., Term Loan, 9.00%, 7/03/18									45				45,782
													224,887
Health Care Providers & Services — 0.5%
Genesis HealthCare Corp., Term Loan B, 10.00%—10.75%, 9/25/17									33				32,145
Harden Healthcare LLC:
Add on Term Loan A, 7.75%, 3/02/15									69				67,133
Term Loan A, 8.50%, 3/02/15									58				57,499
inVentiv Health, Inc., Combined Term Loan, 7.50%, 8/04/16									79				77,546
													234,323
Hotels, Restaurants & Leisure — 3.1%
Caesars Entertainment Operating Co., Inc.:
Term Loan B1, 3.20%, 1/28/15									90				90,074
Term Loan B3, 3.20%—3.31%, 1/28/15									4				4,476
Harrah’s Property Co., Mezzanine Term Loan, 3.69%, 2/13/14									905				832,600
Floating Rate Loan Interests (g)								Par (000)				Value
Hotels, Restaurants & Leisure (concluded)
MGM Resorts International, Term Loan B, 4.25%, 12/20/19					USD				205			$	207,358
Station Casinos, Inc.:
Term Loan B, 5.50%, 9/27/19									175				175,580
Term Loan B, 5.50%, 2/13/20									170				171,417
Travelport Holdings Ltd.:
Extended Tranche A Term Loan, 6.40%, 12/01/16									32				11,402
Extended Tranche B Term Loan, 13.80%, 12/01/16									108				10,082
													1,502,989
Industrial Conglomerates — 0.2%
Sequa Corp., Term Loan B, 5.25%, 6/19/17									94				95,539
Insurance — 0.1%
Alliant Holdings I, Inc., Term Loan B, 5.00%, 12/20/19									55				55,413
IT Services — 0.3%
Ceridian Corp., Extended Term Loan, 5.95%, 5/09/17									12				11,980
First Data Corp., Extended 2018 Term Loan B, 4.20%, 3/23/18									130				128,362
													140,342
Leisure Equipment & Products — 0.1%
Eastman Kodak Co., DIP Term Loan B, 8.50%, 7/19/13									41				40,574
Life Sciences Tools & Services — 0.1%
Patheon, Inc., Term Loan, 7.25%, 12/06/18									35				35,305
Machinery — 0.7%
Rexnord Corp., Term Loan B, 4.50%, 4/02/18									99				99,620
Silver II US Holdings LLC, Term Loan, 4.75%, 12/05/19									225				225,000
													324,620
Media — 4.0%
Cengage Learning Acquisitions, Inc.:
Non-Extended Term Loan, 2.71%, 7/03/14									59				46,460
Tranche 1 Incremental, 7.50%, 7/03/14									239				189,806
Cequel Communications LLC, Term Loan B, 4.00%, 2/14/19									50				49,748
Clear Channel Communications, Inc.:
Term Loan B, 3.85%, 1/29/16									229				196,141
Term Loan C, 3.85%, 1/29/16									62				51,970
EMI Music Publishing Ltd., Term Loan B, 5.50%, 6/29/18									45				45,256
Getty Images, Inc., Term Loan B, 4.75%, 10/18/19									68				68,667
Intelsat Jackson Holdings SA, Term Loan B1, 4.50%, 4/02/18									1,042				1,051,638
Interactive Data Corp., Term Loan B, 3.75%, 2/11/18									70				69,923
Univision Communications, Inc., Extended Term Loan, 4.45%, 3/31/17									44				44,011
Virgin Media Investment Holdings, Term Loan B, 3.50%, 2/17/20									125				124,254
													1,937,874
Metals & Mining — 1.0%
Constellium Holdco BV, Term Loan B, 9.25%, 5/25/18									70				71,043
FMG America Finance, Inc., Term Loan, 5.25%, 10/18/17									394				398,733
													469,776
Oil, Gas & Consumable Fuels — 1.4%
Chesapeake Energy Corp., Unsecured Term Loan, 5.75%, 12/01/17									325				331,738
Obsidian Natural Gas Trust, Term Loan, 7.00%, 11/02/15									140				140,948

See Notes to Financial Statements.

80

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

Schedule of Investments (continued)	BlackRock High Yield Trust (BHY) (Percentages shown are based on Net Assets)

Floating Rate Loan Interests (g)								Par (000)				Value
Oil, Gas & Consumable Fuels (concluded)
Samson Investment Co., Second Lien Term Loan, 6.00%, 9/25/18					USD				40			$	40,375
Vantage Drilling Co., Term Loan, 6.25%, 10/26/17									163				163,752
													676,813
Pharmaceuticals — 0.3%
Par Pharmaceutical Co., Inc., Term Loan B, 4.25%, 9/28/19									120				119,551
Pharmaceutical Product Development, Inc., Term Loan B, 4.25%, 12/05/18									49				49,741
													169,292
Professional Services — 0.1%
Truven Health Analytics, Inc.(FKA Thomson Reuters (Healthcare), Inc.), Term Loan B, 5.75%, 6/01/19									60				60,260
Real Estate Investment Trusts (REITs) — 0.2%
iStar Financial, Inc., Term Loan, 4.50%, 9/28/17									124				123,894
Real Estate Management & Development — 0.3%
Realogy Corp.:
Extended Letter of Credit Loan, 4.46%, 10/10/16									14				14,457
Extended Term Loan, 4.42%, 10/10/16									123				122,631
													137,088
Road & Rail — 0.1%
Genesee & Wyoming, Inc., Term Loan A, 2.70%, 9/29/17									48				47,899
Semiconductors & Semiconductor Equipment — 0.1%
Freescale Semiconductor, Inc., Extended Term Loan B, 4.45%, 12/01/16									50				50,000
Software — 0.6%
GCA Services Group, Inc., Second Lien Term Loan, 9.25%, 10/22/20									10				9,900
Infor US, Inc., Term Loan B2, 5.25%, 4/05/18									204				206,185
Kronos, Inc., Second Lien Term Loan, 9.75%, 4/30/20									85				88,400
													304,485
Specialty Retail — 0.2%
David’s Bridal, Inc., Term Loan B, 5.00%, 10/11/19									90				90,922
Textiles, Apparel & Luxury Goods — 0.5%
Ascend Performance Materials LLC, Term Loan B, 6.75%, 4/10/18									184				185,449
PVH Corp., Term Loan B, 3.25%, 12/19/19									75				75,601
													261,050
Thrifts & Mortgage Finance — 0.2%
Ocwen Financial Corp., Term Loan, 5.00%, 1/22/18									100				101,208
Wireless Telecommunication Services — 1.1%
Vodafone Americas Finance 2, Inc. (e):
Term Loan, 6.88%, 8/11/15									277				282,420
Term Loan B, 6.25%, 7/11/16									258				264,902
													547,322
Total Floating Rate Loan Interests — 24.8%													12,148,044

Preferred Securities								Shares				Value
Preferred Stocks
Auto Components — 0.6%
Dana Holding Corp., 4.00% (b)(d)									2,180			$	309,287
Trust Preferreds
Diversified Financial Services — 1.1%
GMAC Capital Trust I, Series 2, 8.13%, 2/15/40 (g)									19,710				521,325
Total Preferred Securities — 1.7%													830,612
Warrants (i)
Software — 0.0%
Bankruptcy Management Solutions, Inc. (Expires 9/28/17)									61				—
HMH Holdings/EduMedia (Issued/Exercisable 3/09/10, 19 Shares for 1 Warrant, Expires 6/22/19, Strike Price $42.27)									176				—
													—
Total Warrants — 0.0%													—
Total Long-Term Investments
(Cost — $62,945,241) — 134.9%													66,013,096
Short-Term Securities
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.10% (j)(k)									2,001,193				2,001,193
Total Short-Term Securities
(Cost — $2,001,193) — 4.1%													2,001,193
Options Purchased
(Cost — $2,933) — 0.0%													—
Total Investments Before Options Written
(Cost — $64,949,367) — 139.0%													68,014,289
Options Written
(Premiums Received— $18,225) — (0.0)%													(9,362	)
Total Investments, Net of Options Written (Cost—$64,931,142) — 139.0%													68,004,927
Liabilities in Excess of Other Assets — (39.0)%													(19,070,042	)
Net Assets — 100.0%												$	48,934,885

Notes to Schedule of Investments

(a)				Non-income producing security.
(b)				Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(c)				Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(d)				Convertible security.
(e)				Represents a payment-in-kind security which may pay interest/dividends in additional par/shares.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

81

Schedule of Investments (continued)	BlackRock High Yield Trust (BHY)

(f)

When-issued security. Unsettled when-issued transactions were as follows:

Counterparty				Value				Unrealized Appreciation (Depreciation)
Goldman Sachs Group, Inc				$	76,500			$	1,500
Deutsche Bank AG				$	159,994			$	994
Citigroup, Inc				$	6,510			$	901
Bank of America Corp				$	21,985			$	200
Pershing LLC				$	30,394			$	81
Bank of New York Mellon Corp./Suntrust Capital				$	18,360			$	(34	)

(g)				Variable rate security. Rate shown is as of report date.
(h)				Issuer filed for bankruptcy and/or is in default of principal and/or interest payments.
(i)				Warrants entitle the Trust 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 of the warrants, if any.
(j)				Investments in issuers considered to be an affiliate of the Trust during the six months ended February 28, 2013, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliate				Shares Held at August 31, 2012				Net Activity				Shares Held at February 28, 2013				Income				Realized Gain
BlackRock Liquidity Funds, TempFund, Institutional Class					1,204,968				796,225				2,001,193			$	366			$	12

(k)				Represents the current yield as of report date.
•				For Trust compliance purposes, the Trust’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 Trust management. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.
•				Financial futures contracts as of February 28, 2013 were as follows:

Contracts Sold

Issue

Exchange

Expiration

Notional Value

Unrealized  Depreciation

(8)

S&P 500 E-Mini Index

Chicago Mercantile

March 2013

USD

605,320

$(11,294)

•

Foreign currency exchange contracts as of February 28, 2013 were as follows:

Currency Purchased									Currency Sold								Counterparty				Settlement Date				Unrealized Appreciation (Depreciation)
GBP					16,000			USD					24,255			Barclays Plc				4/17/13				$	12
USD					656,787			GBP					410,000			Goldman Sachs Group, Inc.				4/17/13					34,942
EUR					90,000			USD					120,141			Citigroup, Inc.				4/23/13					(2,598	)
USD					1,543,274			EUR					1,158,000			Citigroup, Inc.				4/23/13					30,892
Total																								$	63,248

•

Over-the-counter options purchased as of February 28, 2013 were as follows:

Description

Counterparty

Put/Call

Strike Price

Expiration Date

Contracts

Market Value

Marsico Parent Superholdco LLC

Goldman Sachs Group, Inc.

Call

USD

942.86

12/14/19

3

—

•

Over-the-counter credit default swaptions written as of February 28, 2013 were as follows:

Description

Counterparty

Put/ Call

Strike Price

Pay/Receive Floating Rate Index

Floating Rate Index

Credit  Rating1

Expiration Date

Notional Amount (000)2

Market Value

Sold Protection on 5-Year Credit Default Swap

Credit Suisse Group AG

Call

USD   103.50

Receive

Dow Jones CDX North America High Yield, Series 19, Verison 1

B+

6/19/13

USD

750

$(4,053)

Sold Protection on 5-Year Credit Default Swap

Credit Suisse Group AG

Put

USD    97.50

Pay

Dow Jones CDX North America High Yield, Series 19, Verison 1

B+

6/19/13

USD

750

(5,309)

Total

$ (9,362)

1

Using S&P’s rating of the underlying securities of the index.

2

The maximum potential amount the Trust may pay should a negative credit event take place as defined under the terms of the agreement.

See Notes to Financial Statements.

82

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

Schedule of Investments (continued)	BlackRock High Yield Trust (BHY)

•

Credit default swaps — buy protection outstanding as of February 28, 2013 were as follows:

Issuer				Pay Fixed Rate				Counterparty				Expiration Date				Notional Amount (000)								Unrealized Depreciation
The New York Times Co.				1.00%				Barclays Plc				12/20/16				USD					225			$	(5,115	)
State of Israel				1.00%				Deutsche Bank AG				3/20/17				USD					100				(3,939	)
State of Israel				1.00%				Deutsche Bank AG				3/20/17				USD					35				(1,358	)
Beazer Home USA, Inc.				5.00%				Bank of America Corp.				12/20/17				USD					15				(388	)
Total																								$	(10,800	)

•

Credit default swaps — sold protection outstanding as of February 28, 2013 were as follows:

Issuer

Receive Fixed Rate

Counterparty

Expiration Date

Credit  Rating1

Notional Amount (000)2

Unrealized Appreciation (Depreciation)

Caesars Entertainment Operating Co., Inc.

5.00%

JPMorgan Chase & Co.

12/20/15

CCC

USD

110

$

14,972

Goodyear Tire & Rubber Co.

5.00%

Barclays Plc

12/20/15

BB-

USD

95

8,217

Caesars Entertainment Operating Co., Inc.

5.00%

Barclays Plc

3/20/16

CCC

USD

23

740

Caesars Entertainment Operating Co., Inc.

5.00%

Goldman Sachs Group, Inc.

3/20/16

CCC

USD

187

7,478

Caesars Entertainment Operating Co., Inc.

5.00%

JPMorgan Chase & Co.

3/20/16

CCC

USD

13

472

Caesars Entertainment Operating Co., Inc.

5.00%

Goldman Sachs Group, Inc.

6/20/16

CCC

USD

200

9,641

ARAMARK Corp.

5.00%

Credit Suisse Group AG

9/20/16

B-

USD

50

5,586

ARAMARK Corp.

5.00%

Deutsche Bank AG

3/20/17

B-

USD

35

2,562

Caesars Entertainment Operating Co., Inc.

5.00%

Barclays Plc

3/20/17

CCC

USD

11

85

Caesars Entertainment Operating Co., Inc.

5.00%

Goldman Sachs Group, Inc.

3/20/17

CCC

USD

33

(253

)

Caesars Entertainment Operating Co., Inc.

5.00%

Goldman Sachs Group, Inc.

3/20/17

CCC

USD

63

1,549

Crown Castle International Corp.

7.25%

Deutsche Bank AG

3/20/17

B-

USD

80

13,848

CCO Holdings LLC

8.00%

Deutsche Bank AG

9/20/17

BB-

USD

280

67,699

Total

$

132,596

1

Using S&P’s rating of the issuer.

2

The maximum potential amount the Trust may pay should a negative credit event take place as defined under the terms of the agreement.

•

Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:

•				Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the Trust has the ability to access
•				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 Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)

				The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
				Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to the Note 1 of the Notes to Financial Statements.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

83

Schedule of Investments (continued)	BlackRock High Yield Trust (BHY)

The following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy as of February 28, 2013:

				Level 1				Level 2				Level 3				Total
Assets:
Investments:
Long-Term Investments:
Common Stocks				$	2,440,561			$	129,452			$	166,620			$	2,736,633
Corporate Bonds					—				49,812,693				485,114				50,297,807
Floating Rate Loan Interests					—				9,754,171				2,393,873				12,148,044
Preferred Securities					521,324				309,287				—				830,611
Warrants					—				—				1				1
Short-Term Securities					2,001,193				—				—				2,001,193
Total				$	4,963,078			$	60,005,603			$	3,045,608			$	68,014,289

				Level 1				Level 2				Level 3				Total
Derivative Financial Instruments1
Assets:
Credit contracts					—			$	132,849				—			$	132,849
Foreign currency exchange contracts					—				65,846				—				65,846
Liabilities:
Credit contracts					—				(20,415	)			—				(20,415	)
Equity contracts				$	(11,294	)			—				—				(11,294	)
Foreign currency exchange contracts					—				(2,598	)			—				(2,598	)
Total				$	(11,294	)		$	175,682				—			$	164,388

1

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

Certain of the Trust’s assets and liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of February 28, 2013, such assets and liabilities are categorized within the disclosure hierarchy as follows:

				Level 1				Level 2				Level 3				Total
Assets:
Foreign currency at value				$	11,231				—				—			$	11,231
Cash pledged as collateral for financial futures contracts					63,000				—				—				63,000
Liabilities:
Loan payable					—			$	(18,000,000	)			—				(18,000,000	)
Total				$	74,231			$	(18,000,000	)			—			$	(17,925,769	)

				There were no transfers between Level 1 and Level 2 during the six months ended February 28, 2013.
				A reconciliation of Level 3 investments and derivative financial instruments is presented when the Trust had a significant amount of Level 3 investments and derivative financial instruments at the beginning and/or end of the period in relation to net assets. The following table is a reconciliation of Level 3 investments for which significant unobservable inputs were used in determining fair value:

				Common Stocks				Corporate Bonds				Floating Rate Loan Interests				Warrants				Total
Assets:
Opening Balance, as of August 31, 2012				$	1			$	638,018			$	1,898,540			$	1			$	2,536,560
Transfers into Level 32					1,620				247,288				288,129				—				537,037
Transfers out of Level 33					—				—				(45,338	)			—				(45,338	)
Accrued discounts/premiums					—				(2,101	)			4,838				—				2,737
Net realized gain (loss)					—				1,228				(11,946	)			—				(10,718	)
Net change in unrealized appreciation/depreciation4					105,959				(262,173	)			120,250				—				(35,964	)
Purchases					59,040				339,683				837,714				—				1,236,437
Sales					—				(476,829	)			(698,314	)			—				(1,175,143	)
Closing Balance, as of February 28, 2013				$	166,620			$	485,114			$	2,393,873			$	1			$	3,045,608

2

As of August 31, 2012, the Trust used observable inputs in determining the value of certain investments. As of February 28, 2013, the Trust used significant unobservable inputs in determining the value of the same investments. As a result, investments with a beginning of period value of $537,037 transferred from Level 2 to Level 3 in the disclosure hierarchy.

3

As of August 31, 2012, the Trust used significant unobservable inputs in determining the value of certain investments. As of February 28, 2013, the Trust used observable inputs in determining the value of the same investments. As a result, investments with a beginning of period value of $45,338 transferred from Level 3 to Level 2 in the disclosure hierarchy.

4

Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations. The change in unrealized appreciation/depreciation on investments still held as of February 28, 2013 was $82,969.

See Notes to Financial Statements.

84

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

Schedule of Investments (concluded)	BlackRock High Yield Trust (BHY)

The following table is a reconciliation of Level 3 derivative financial instruments for which significant unobservable inputs were used in determining fair value:

				Credit Contracts
Assets:
Opening Balance, as of August 31, 2012				$	90,639
Transfers into Level 31					—
Transfers out of Level 31					(23,950	)
Accrued discounts/premiums					—
Net realized gain (loss)					—
Net change in unrealized appreciation/depreciation2					(66,689	)
Purchases					—
Issues3					—
Sales					—
Settlements4					—
Closing Balance, as of February 28, 2013					—

1

Transfers into and transfers out of Level 3 represent the values as of the beginning of the reporting period.

2

Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations.

3

Issues represent upfront cash received on certain derivative financial instruments.

4

Settlements represent periodic contractual cash flows and/or cash flows to terminate certain derivative financial instruments.

The following table summarizes the valuation techniques used and unobservable inputs developed by the Global Valuation Committee to determine the value of certain of the Trust’s Level 3 investments as of February 28, 2013. The table does not include Level 3 investments with values derived utilizing third party pricing information without adjustment. A significant change in third party pricing information could result in a significantly lower or higher value of such Level 3 investments. The value of Level 3 investments derived using third party pricing information is $2,238,774.

				Value				Valuation Techniques				Unobservable Inputs5				Range of Unobservable Inputs Utilized
Assets:
Common Stocks				$	42,394			Restructure Terms6				N/A				—
Corporate Bonds					185,701			Market Comparable Companies				Yield				12.10%
					207			Estimated Final Distribution				Recovery Rate				0.05%
					203,900			Cost7				N/A				—
Floating Rate Loan Interests					124,632			Discounted Cash Flow				Yield				9.50%
					250,000			Cost7				N/A				—
Total				$	806,834

5

A change to the unobservable input may result in a significant change to the value of the investment as follows:

Unobservable Input				Impact to Value if Input Increases				Impact to Value if Input Decreases
Recovery Rate				Increase				Decrease
Yield				Decrease				Increase

6

Investment is valued based on the company’s financial restructuring plan.

7

The Trust fair values certain of its Level 3 investments using prior transaction prices (acquisition cost), although the transaction may not have occurred during the current reporting period. In such cases, these investments are generally privately held investments. There may not be a secondary market, and/or there are a limited number of investors. The determination to fair value such investments at cost is based upon factors consistent with the principles of fair value measurement that are reasonably available to the Global Valuation Committee, or its delegate. Valuations are reviewed utilizing available market information to determine if the carrying value should be adjusted. Such market data may include, but is not limited to, observations of the trading multiples of public companies considered comparable to the private companies being valued, financial or operational information released by the company, and/or news or corporate events that affect the investment. Valuations may be adjusted to account for company-specific issues, the lack of liquidity inherent in a nonpublic investment and the fact that comparable public companies are not identical to the investments being fair valued by the Trust.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

85

Schedule of Investments  February 28, 2013 (Unaudited)	BlackRock Income Opportunity Trust, Inc. (BNA) (Percentages shown are based on Net Assets)

Asset-Backed Securities								Par (000)				Value
Asset-Backed Securities — 7.6%
321 Henderson Receivables I LLC, Series 2010-3A, Class A, 3.82%, 12/15/48 (a)					USD				715			$	775,276
ACAS CLO Ltd., Series 2013-1A, Class C, 3.04%, 4/20/25 (a)(b)(c)									500				487,800
AH Mortgage Advance Co. Ltd., Series SART-3, Class 1A1, 2.98%, 3/13/43 (a)									630				631,104
AmeriCredit Automobile Receivables Trust, Series 2011-5, Class C, 3.44%, 10/08/17									400				419,704
Apidos CDO, Series 2012-11A, Class D, 4.74%, 1/17/23 (a)(b)									600				600,900
Atrium CDO Corp., Series 9A, Class D, 3.96%, 2/28/24 (a)(b)									500				483,500
CarMax Auto Owner Trust, Series 2012-1:
Class B, 1.76%, 8/15/17									210				214,781
Class C, 2.20%, 10/16/17									125				127,980
Class D, 3.09%, 8/15/18									160				165,651
Cavalry CLO Ltd., Series 2A (a)(b):
Class C, 3.23%, 1/17/24									1,040				1,019,200
Class D, 4.38%, 1/17/24									765				744,728
CenterPoint Energy Transition Bond Co. LLC, Series 2012-1, Class A3, 3.03%, 10/15/25									1,105				1,165,103
CIFC Funding Ltd. (a)(b):
Series 2012-1A, Class B1L, 5.54%, 8/14/24									750				757,500
Series 2013-1A, Class B, 3.10%, 4/16/25 (c)									500				493,750
Series 2013-1A, Class C, 3.89%, 4/16/25 (c)									500				486,500
Credit Acceptance Auto Loan Trust, Series 2010-1, Class B, 3.63%, 10/15/18 (a)									1,970				1,981,680
DT Auto Owner Trust (a):
Series 2011-2A, Class C, 3.05%, 2/16/16									1,500				1,504,674
Series 2011-3A, Class C, 4.03%, 2/15/17									260				264,825
Duane Street CLO IV Ltd., Series 2007-4A, Class D, 2.54%, 11/14/21 (a)(b)									500				445,000
Figueroa CLO Ltd., Series 2013-1A, Class C, 3.94%, 3/21/24 (a)(b)(c)									500				484,250
Ford Credit Floorplan Master Owner Trust:
Series 2012-1, Class B, 1.10%, 1/15/16 (b)									180				180,720
Series 2012-1, Class C, 1.70%, 1/15/16 (b)									480				483,409
Series 2012-1, Class D, 2.30%, 1/15/16 (b)									450				452,987
Series 2012-2, Class B, 2.32%, 1/15/19									245				252,913
Series 2012-2, Class C, 2.86%, 1/15/19									105				110,368
Series 2012-2, Class D, 3.50%, 1/15/19									200				211,127
Galaxy CLO Ltd., Series 2013-15A, Class C, 2.89%, 4/15/25 (a)(b)(c)									500				490,510
Home Equity Asset Trust, Series 2007-2, Class 2A1, 0.31%, 7/25/37 (b)									39				39,017
Mountain Hawk I CLO Ltd., Series 2013-1A, Class C, 3.12%, 1/20/24 (a)(b)									750				723,750
Nelnet Student Loan Trust (b):
Series 2006-1, Class A5, 0.40%, 8/23/27									525				514,436
Series 2008-3, Class A4, 1.94%, 11/25/24									620				660,272
OZLM Funding Ltd., Series 2013-3A (a)(b):
Class B, 3.35%, 1/22/25									750				754,725
Class C, 4.15%, 1/22/25									500				488,850
PFS Financing Corp., Series 2012-AA, Class A, 1.40%, 2/15/16 (a)(b)									480				483,831
Santander Consumer Acquired Receivables Trust (a):
Series 2011-S1A, Class B, 1.66%, 8/15/16									460				463,693
Series 2011-S1A, Class C, 2.01%, 8/15/16									317				319,460
Series 2011-S1A, Class D, 3.15%, 8/15/16									325				330,281
Series 2011-WO, Class C, 3.19%, 10/15/15									575				591,043
Santander Drive Auto Receivables Trust:
Series 2010-2, Class B, 2.24%, 12/15/14									786				789,924
Series 2010-2, Class C, 3.89%, 7/17/17									1,020				1,054,615
Series 2010-B, Class B, 2.10%, 9/15/14 (a)									419				419,672
Series 2010-B, Class C, 3.02%, 10/17/16 (a)									735				747,611
Series 2011-1, Class D, 4.01%, 2/15/17									940				988,523
Series 2011-S1A, Class B, 1.48%, 5/15/17 (a)									197				198,187
Series 2011-S1A, Class D, 3.10%, 5/15/17 (a)									175				175,521
Asset-Backed Securities								Par (000)				Value
Asset-Backed Securities (concluded)
Santander Drive Auto Receivables Trust (concluded):
Series 2011-S2A, Class C, 2.86%, 6/15/17 (a)					USD				511			$	515,497
Series 2012-1, Class B, 2.72%, 5/16/16									240				246,372
Series 2012-1, Class C, 3.78%, 11/15/17									325				341,443
SLM Student Loan Trust:
Series 2004-B, Class A2, 0.51%, 6/15/21 (b)									174				171,152
Series 2008-5, Class A3, 1.60%, 1/25/18 (b)									525				534,223
Series 2008-5, Class A4, 2.00%, 7/25/23 (b)									630				664,298
Series 2012-A, Class A1, 1.60%, 8/15/25 (a)(b)									296				300,469
Series 2012-A, Class A2, 3.83%, 1/17/45 (a)									345				378,332
Small Business Administration Participation Certificates, Series 1996-20K, Class 1, 6.95%, 11/01/16									137				145,843
Symphony CLO VII Ltd., Series 2011-7A, Class E, 3.90%, 7/28/21 (a)(b)									750				727,500
Venture CDO Ltd., Series 2012-12A, Class D, 4.01%, 2/28/24 (a)(b)									770				723,800
World Financial Network Credit Card Master Trust, Series 2012-C, Class C, 4.55%, 8/15/22									1,180				1,286,930
													31,215,210
Interest Only Asset-Backed Securities — 0.2%
Sterling Bank Trust, Series 2004-2, Class Note, 2.08%, 3/30/30 (a)									3,898				300,879
Sterling Coofs Trust, Series 2004-1, 2.36%, 4/15/29 (a)									5,591				408,845
													709,724
Total Asset-Backed Securities — 7.8%													31,924,934
Common Stocks (d)									Shares
Paper & Forest Products — 0.1%
NewPage Corp.									4,960				421,600
Software — 0.0%
Bankruptcy Management Solutions, Inc.									152				2
Total Common Stocks — 0.1%													421,602
Corporate Bonds									Par   (000)
Aerospace & Defense — 0.7%
Bombardier, Inc., 4.25%, 1/15/16 (a)					USD				340				352,750
Huntington Ingalls Industries, Inc., 7.13%, 3/15/21									230				250,700
United Technologies Corp. (e):
4.88%, 5/01/15									1,250				1,367,435
6.13%, 7/15/38									750				974,188
													2,945,073
Airlines — 0.7%
Continental Airlines Pass-Through Trust:
Series 2010-1, Class B, 6.00%, 1/12/19									571				588,248
Series 2012-3, Class C, 6.13%, 4/29/18									500				498,750
US Airways Pass-Through Trust, Series 2012-1, Class C, 9.13%, 10/01/15									1,553				1,661,710
													2,748,708
Auto Components — 1.1%
Icahn Enterprises LP:
4.00%, 8/15/13 (a)(b)(f)									2,900				2,907,250
4.00%, 8/15/13 (b)(f)									665				666,662
8.00%, 1/15/18									1,000				1,071,250
													4,645,162
Automobiles — 0.5%
Ford Motor Co., 4.75%, 1/15/43									2,005				1,904,311

See Notes to Financial Statements.

86

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

Schedule of Investments (continued)	BlackRock Income Opportunity Trust, Inc. (BNA) (Percentages shown are based on Net Assets)

Corporate Bonds								Par (000)				Value
Building Products — 0.1%
Momentive Performance Materials, Inc., 8.88%, 10/15/20					USD				250			$	256,562
Capital Markets — 3.9%
CDP Financial, Inc., 5.60%, 11/25/39 (a)(e)									2,955				3,584,025
The Goldman Sachs Group, Inc. (e):
5.38%, 3/15/20									1,215				1,396,776
5.25%, 7/27/21									3,175				3,613,636
5.75%, 1/24/22									1,815				2,129,340
Lehman Brothers Holdings, Inc., 6.50%, 7/19/17 (d)(g)									225				—
Morgan Stanley:
4.20%, 11/20/14									680				712,632
4.00%, 7/24/15									400				422,112
6.25%, 8/28/17 (e)									1,925				2,233,427
Murray Street Investment Trust I, 4.65%, 3/09/17 (h)									1,640				1,795,772
													15,887,720
Chemicals — 1.4%
Axiall Corp., 4.88%, 5/15/23 (a)									248				251,720
The Dow Chemical Co., 4.13%, 11/15/21									350				378,147
Eagle Spinco, Inc., 4.63%, 2/15/21 (a)									528				536,580
Huntsman International LLC, 4.88%, 11/15/20 (a)									725				717,750
Methanex Corp., 3.25%, 12/15/19									2,074				2,107,825
Nufarm Australia Ltd., 6.38%, 10/15/19 (a)									240				254,400
Rockwood Specialties Group, Inc., 4.63%, 10/15/20									1,385				1,433,475
US Coatings Acquisition, Inc./Flash Dutch 2 BV, 7.38%, 5/01/21 (a)									151				156,285
													5,836,182
Commercial Banks — 3.1%
CIT Group, Inc.:
5.38%, 5/15/20									1,650				1,798,500
5.00%, 8/15/22									360				385,200
Depfa ACS Bank, 5.13%, 3/16/37 (a)									4,150				3,392,625
HSBC Bank Brasil SA—Banco Multiplo, 4.00%, 5/11/16 (a)(e)									1,400				1,456,000
HSBC Bank Plc, 3.10%, 5/24/16 (a)(e)									695				738,014
HSBC Holdings Plc, 6.10%, 1/14/42 (e)									305				392,960
Rabobank Nederland (e):
3.88%, 2/08/22									1,390				1,476,820
3.95%, 11/09/22									1,500				1,524,342
Wells Fargo & Co., 3.50%, 3/08/22 (e)									1,390				1,466,087
													12,630,548
Commercial Services & Supplies — 1.0%
ADS Waste Holdings, Inc., 8.25%, 10/01/20 (a)									245				263,375
The ADT Corp., 4.88%, 7/15/42 (a)									539				513,286
Aviation Capital Group Corp., 4.63%, 1/31/18 (a)									650				660,118
Clean Harbors, Inc., 5.25%, 8/01/20									390				401,700
HDTFS, Inc. (a):
5.88%, 10/15/20									230				239,200
6.25%, 10/15/22									385				413,875
Mobile Mini, Inc., 7.88%, 12/01/20									1,320				1,468,500
West Corp., 8.63%, 10/01/18									135				143,775
													4,103,829
Communications Equipment — 1.2%
ADC Telecommunications, Inc., 3.50%, 7/15/15 (f)									4,340				4,342,170
Zayo Group LLC/Zayo Capital, Inc., 8.13%, 1/01/20									530				592,275
													4,934,445
Construction & Engineering — 0.1%
ABB Finance USA, Inc., 4.38%, 5/08/42									194				203,768
Construction Materials — 0.6%
HD Supply, Inc. (a):
8.13%, 4/15/19									570				641,962
7.50%, 7/15/20									1,544				1,545,930
11.50%, 7/15/20									250				288,125
Corporate Bonds								Par (000)				Value
Construction Materials (concluded)
Lafarge SA, 7.13%, 7/15/36					USD				135			$	141,075
													2,617,092
Consumer Finance — 1.1%
Discover Financial Services, 3.85%, 11/21/22 (a)									250				255,733
Ford Motor Credit Co. LLC:
6.63%, 8/15/17									280				326,984
8.13%, 1/15/20									1,265				1,593,667
4.25%, 9/20/22									800				824,824
SLM Corp.:
6.25%, 1/25/16									651				704,708
Series A, 0.60%, 1/27/14 (b)									600				595,653
Toll Brothers Finance Corp., 5.88%, 2/15/22									345				384,940
													4,686,509
Containers & Packaging — 0.7%
Ardagh Packaging Finance Plc (a):
7.38%, 10/15/17					EUR				425				602,022
7.38%, 10/15/17					USD				200				217,750
4.88%, 11/15/22									209				205,865
Crown Americas LLC/Crown Americas Capital Corp. III, 6.25%, 2/01/21									61				66,490
Crown Americas LLC/Crown Americas Capital Corp. IV, 4.50%, 1/15/23 (a)									662				647,105
Sealed Air Corp. (a):
6.50%, 12/01/20									550				598,125
8.38%, 9/15/21									225				256,500
Smurfit Kappa Acquisitions, 4.88%, 9/15/18 (a)									410				420,250
													3,014,107
Diversified Consumer Services — 0.5%
313 Group, Inc., 6.38%, 12/01/19 (a)									634				618,150
Service Corp. International, 4.50%, 11/15/20									1,240				1,235,350
													1,853,500
Diversified Financial Services — 6.7%
Aircastle Ltd., 6.25%, 12/01/19									705				759,638
Ally Financial, Inc.:
8.30%, 2/12/15									860				956,750
5.50%, 2/15/17									1,500				1,626,261
6.25%, 12/01/17									160				178,681
8.00%, 3/15/20									560				687,400
8.00%, 11/01/31									300				376,875
Bank of America Corp. (e):
5.63%, 7/01/20									1,100				1,287,086
3.30%, 1/11/23									5,010				4,993,988
Capital One Financial Corp., 4.75%, 7/15/21									975				1,109,745
FMR LLC, 4.95%, 2/01/33 (a)(e)									1,150				1,167,765
General Electric Capital Corp., 6.75%, 3/15/32 (e)									2,500				3,199,692
JPMorgan Chase & Co., 6.30%, 4/23/19 (e)									1,375				1,684,196
JPMorgan Chase Bank NA, 6.00%, 10/01/17 (e)									2,045				2,421,120
Moody’s Corp., 4.50%, 9/01/22									900				904,224
Reynolds Group Issuer, Inc.:
7.88%, 8/15/19									560				618,800
5.75%, 10/15/20									1,000				1,032,500
6.88%, 2/15/21									1,255				1,339,713
Spirit Issuer Plc, 5.86%, 12/28/21					GBP				1,620				2,371,604
WMG Acquisition Corp., 11.50%, 10/01/18					USD				562				652,623
													27,368,661
Diversified Telecommunication Services — 2.8%
Level 3 Financing, Inc.:
8.13%, 7/01/19									671				731,390
8.63%, 7/15/20									580				643,800
Lynx I Corp., 5.38%, 4/15/21 (a)									395				404,875
Telecom Italia Capital SA, 4.95%, 9/30/14									4,375				4,528,125
Verizon Communications, Inc. (e):
3.50%, 11/01/21									500				525,624
6.40%, 2/15/38									3,396				4,269,071
Windstream Corp., 7.88%, 11/01/17									200				226,500
													11,329,385

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

87

Schedule of Investments (continued)	BlackRock Income Opportunity Trust, Inc. (BNA) (Percentages shown are based on Net Assets)

Corporate Bonds								Par (000)				Value
Electric Utilities — 6.5%
The Cleveland Electric Illuminating Co.:
8.88%, 11/15/18					USD				121			$	161,303
5.95%, 12/15/36									217				246,849
CMS Energy Corp., 5.05%, 3/15/22									917				1,031,912
Duke Energy Carolinas LLC:
6.10%, 6/01/37									325				410,905
6.00%, 1/15/38 (e)									850				1,091,140
4.25%, 12/15/41 (e)									375				393,690
E.ON International Finance BV, 6.65%, 4/30/38 (a)(e)									1,575				2,109,508
Electricite de France SA, 5.60%, 1/27/40 (a)(e)									1,400				1,582,339
Florida Power Corp.:
6.35%, 9/15/37 (e)									1,450				1,908,913
6.40%, 6/15/38									340				453,978
Georgia Power Co., 3.00%, 4/15/16 (e)									800				854,020
Hydro-Quebec (e):
9.40%, 2/01/21									390				582,362
8.40%, 1/15/22									730				1,043,297
8.05%, 7/07/24									1,900				2,773,230
Jersey Central Power & Light Co., 7.35%, 2/01/19									245				313,698
Nisource Finance Corp.:
6.40%, 3/15/18									280				336,096
5.25%, 2/15/43									500				530,513
Ohio Power Co., Series D, 6.60%, 3/01/33									1,500				1,933,882
PacifiCorp., 6.25%, 10/15/37 (e)									650				870,443
Public Service Co. of Colorado, 6.25%, 9/01/37 (e)									1,350				1,819,403
Southern California Edison Co. (e):
5.63%, 2/01/36									675				837,566
Series 08-A, 5.95%, 2/01/38									1,100				1,428,360
The Tokyo Electric Power Co., Inc., 4.50%, 3/24/14					EUR				1,000				1,333,358
Virginia Electric and Power Co., Series A, 6.00%, 5/15/37 (e)					USD				1,920				2,508,785
													26,555,550
Electrical Equipment — 0.2%
GrafTech International Ltd., 6.38%, 11/15/20 (a)									580				616,250
Energy Equipment & Services — 3.1%
Calfrac Holdings LP, 7.50%, 12/01/20 (a)									565				567,825
Ensco Plc:
3.25%, 3/15/16									160				170,029
4.70%, 3/15/21									1,745				1,952,852
EOG Resources, Inc., 2.63%, 3/15/23 (e)									1,898				1,882,588
FTS International Services LLC/FTS International Bonds, Inc., 8.13%, 11/15/18 (a)									807				835,245
Genesis Energy LP, 5.75%, 2/15/21 (a)									238				246,330
MEG Energy Corp., 6.50%, 3/15/21 (a)									560				590,800
Noble Holding International Ltd., 5.25%, 3/15/42									350				353,231
Peabody Energy Corp.:
6.00%, 11/15/18									430				456,875
6.25%, 11/15/21									2,180				2,267,200
Seadrill Ltd., 5.63%, 9/15/17 (a)									1,590				1,609,875
Tervita Corp., 8.00%, 11/15/18 (a)									519				534,570
Transocean, Inc.:
5.05%, 12/15/16									850				946,873
6.50%, 11/15/20									350				407,990
													12,822,283
Food Products — 1.4%
Darling International, Inc., 8.50%, 12/15/18									335				381,063
Kraft Foods Group, Inc.:
5.38%, 2/10/20									1,570				1,874,520
5.00%, 6/04/42									997				1,088,216
Mondelez International, Inc. (FKA Kraft Foods, Inc.), 5.38%, 2/10/20									1,430				1,705,346
Post Holdings, Inc., 7.38%, 2/15/22									749				808,920
													5,858,065
Corporate Bonds								Par (000)				Value
Gas Utilities — 0.2%
CenterPoint Energy Resources Corp., 5.85%, 1/15/41					USD				700			$	867,509
Health Care Equipment & Supplies — 0.5%
Boston Scientific Corp., 6.25%, 11/15/15									1,260				1,417,862
DJO Finance LLC, 7.75%, 4/15/18									40				39,800
Teleflex, Inc., 6.88%, 6/01/19									385				418,687
													1,876,349
Health Care Providers & Services — 4.4%
Aviv Healthcare Properties LP, 7.75%, 2/15/19									535				573,787
CHS/Community Health Systems, Inc., 5.13%, 8/15/18									400				420,500
ConvaTec Healthcare E SA, 7.38%, 12/15/17 (a)					EUR				494				683,638
HCA, Inc.:
8.50%, 4/15/19					USD				17				18,828
6.50%, 2/15/20									1,895				2,122,400
7.88%, 2/15/20									215				238,381
7.25%, 9/15/20									907				1,006,770
4.75%, 5/01/23									1,310				1,306,725
IASIS Healthcare LLC, 8.38%, 5/15/19									550				566,500
INC Research LLC, 11.50%, 7/15/19 (a)									465				496,388
inVentiv Health, Inc. (a):
9.00%, 1/15/18									300				312,750
11.00%, 8/15/18									40				34,700
Omnicare, Inc., 7.75%, 6/01/20									805				893,550
Symbion, Inc., 8.00%, 6/15/16									455				475,475
Tenet Healthcare Corp.:
6.25%, 11/01/18									660				730,950
8.88%, 7/01/19									1,266				1,430,580
4.50%, 4/01/21 (a)									588				579,915
UnitedHealth Group, Inc., 2.88%, 3/15/22 (e)									2,000				2,019,720
WellPoint, Inc., 4.65%, 1/15/43 (e)									3,995				4,040,311
													17,951,868
Health Care Technology — 0.6%
Amgen, Inc. (e):
6.40%, 2/01/39									750				948,013
5.15%, 11/15/41									1,500				1,642,570
													2,590,583
Hotels, Restaurants & Leisure — 1.7%
Caesars Operating Escrow LLC, 9.00%, 2/15/20 (a)									398				393,025
El Dorado Resorts LLC, 8.63%, 6/15/19 (a)									180				178,875
MCE Finance Ltd., 5.00%, 2/15/21 (a)									941				941,000
Six Flags Entertainment Corp., 5.25%, 1/15/21 (a)									859				841,820
The Unique Pub Finance Co. Plc:
Series A3, 6.54%, 3/30/21					GBP				900				1,361,932
Series A4, 5.66%, 6/30/27									1,322				1,860,138
Series N, 6.46%, 3/30/32									1,195				1,350,592
													6,927,382
Household Durables — 0.4%
Standard Pacific Corp., 10.75%, 9/15/16					USD				1,000				1,245,000
United Rentals North America, Inc., 5.75%, 7/15/18									194				208,792
													1,453,792
Household Products — 0.2%
Ontex IV SA, 7.50%, 4/15/18 (a)					EUR				190				257,977
Spectrum Brands Escrow Corp. (a):
6.38%, 11/15/20					USD				200				212,750
6.63%, 11/15/22									275				296,312
													767,039
Independent Power Producers & Energy Traders — 0.7%
Energy Future Intermediate Holding Co. LLC, 10.00%, 12/01/20									1,955				2,218,925
NRG Energy, Inc., 6.63%, 3/15/23 (a)									435				463,275
													2,682,200

See Notes to Financial Statements.

88

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

Schedule of Investments (continued)	BlackRock Income Opportunity Trust, Inc. (BNA) (Percentages shown are based on Net Assets)

Corporate Bonds								Par (000)				Value
Industrial Conglomerates — 0.0%
Smiths Group Plc, 3.63%, 10/12/22 (a)					USD				180			$	178,797
Insurance — 4.7%
Alliant Holdings I, Inc., 7.88%, 12/15/20 (a)									608				611,040
Allianz Finance II BV, 5.75%, 7/08/41					EUR				500				733,220
American International Group, Inc. (e):
3.80%, 3/22/17					USD				5,580				6,058,747
5.45%, 5/18/17									800				917,591
AXA SA, 5.25%, 4/16/40					EUR				250				338,835
Hartford Financial Services Group, Inc.:
6.00%, 1/15/19					USD				345				407,716
5.13%, 4/15/22									930				1,071,440
Liberty Mutual Group, Inc., 6.50%, 5/01/42 (a)									1,000				1,135,115
Lincoln National Corp., 6.25%, 2/15/20									630				764,436
Manulife Financial Corp., 3.40%, 9/17/15									1,625				1,710,265
MetLife Global Funding I, 5.13%, 6/10/14 (a)(e)									775				819,711
Montpelier Re Holdings Ltd., 4.70%, 10/15/22									450				453,858
MPL 2 Acquisition Canco, Inc., 9.88%, 8/15/18 (a)									340				336,600
Muenchener Rueckversicherungs AG, 6.00%, 5/26/41 (b)					EUR				200				302,077
Prudential Financial, Inc. (e):
4.75%, 9/17/15					USD				1,220				1,335,510
7.38%, 6/15/19									300				384,628
5.38%, 6/21/20									250				294,761
4.50%, 11/15/20									400				448,291
5.70%, 12/14/36									950				1,083,884
													19,207,725
Internet Software & Services — 0.0%
Equinix, Inc., 4.88%, 4/01/20									87				87,000
IT Services — 0.6%
First Data Corp. (a):
7.38%, 6/15/19									205				215,506
8.88%, 8/15/20									1,000				1,105,000
6.75%, 11/01/20									680				697,850
8.25%, 1/15/21									30				30,675
SunGard Data Systems, Inc., 7.38%, 11/15/18									490				526,138
													2,575,169
Life Sciences Tools & Services — 0.1%
Agilent Technologies, Inc., 3.20%, 10/01/22									250				249,831
Machinery — 0.3%
UR Merger Sub Corp.:
7.38%, 5/15/20									495				542,025
7.63%, 4/15/22									455				503,912
													1,045,937
Marine — 0.3%
Nakilat, Inc., Series A, 6.07%, 12/31/33 (a)(e)									1,100				1,336,500
Media — 7.1%
Affinion Group, Inc., 7.88%, 12/15/18 (e)									730				554,800
AMC Networks, Inc.:
7.75%, 7/15/21									320				363,200
4.75%, 12/15/22									343				341,714
Cinemark USA, Inc., 5.13%, 12/15/22 (a)									175				175,875
Clear Channel Communications, Inc., 9.00%, 12/15/19 (a)									306				284,580
Clear Channel Worldwide Holdings, Inc. (a):
6.50%, 11/15/22									671				701,195
6.50%, 11/15/22									1,814				1,909,235
Comcast Cable Communications Holdings, Inc., 9.46%, 11/15/22									2,000				3,033,746
Cox Communications, Inc. (a):
6.95%, 6/01/38									1,000				1,293,580
8.38%, 3/01/39									1,735				2,562,126
DIRECTV Holdings LLC:
6.38%, 3/01/41									260				285,254
5.15%, 3/15/42									2,100				2,021,063
Corporate Bonds								Par (000)				Value
Media (concluded)
Intelsat Luxembourg SA:
11.25%, 2/04/17					USD				750			$	796,875
11.50%, 2/04/17									420				446,775
NBC Universal Media LLC (e):
5.15%, 4/30/20									1,974				2,343,325
4.38%, 4/01/21									1,015				1,143,202
The New York Times Co., 6.63%, 12/15/16									1,800				1,966,500
Omnicom Group, Inc., 3.63%, 5/01/22									2,355				2,398,544
Time Warner Cable, Inc.:
7.30%, 7/01/38									970				1,215,095
5.88%, 11/15/40									460				494,080
5.50%, 9/01/41									920				963,869
Time Warner, Inc.:
4.70%, 1/15/21									1,000				1,122,846
6.10%, 7/15/40									615				719,519
Unitymedia Hessen GmbH & Co. KG, 5.50%, 1/15/23 (a)									250				252,500
Virgin Media Secured Finance Plc:
6.50%, 1/15/18									330				352,275
7.00%, 1/15/18					GBP				792				1,276,598
													29,018,371
Metals & Mining — 4.3%
Alcoa, Inc., 5.40%, 4/15/21					USD				1,450				1,523,909
ArcelorMittal:
9.50%, 2/15/15									395				445,856
4.25%, 2/25/15									174				179,660
4.25%, 8/05/15									234				242,270
4.25%, 3/01/16									175				180,250
5.00%, 2/25/17									245				254,923
6.13%, 6/01/18									314				338,586
6.75%, 2/25/22 (e)									252				277,479
Barrick Gold Corp., 2.90%, 5/30/16									1,685				1,770,254
Corp. Nacional del Cobre de Chile, 3.00%, 7/17/22 (a)(e)									1,566				1,544,785
Falconbridge Ltd., 6.20%, 6/15/35									1,550				1,688,632
Freeport-McMoRan Copper & Gold, Inc.:
3.55%, 3/01/22									540				537,202
5.45%, 3/15/43 (a)									450				447,948
New Gold, Inc. (a):
7.00%, 4/15/20									105				113,400
6.25%, 11/15/22									435				457,838
Newcrest Finance Property Ltd., 4.45%, 11/15/21 (a)									475				504,598
Novelis, Inc., 8.75%, 12/15/20 (e)									4,105				4,597,600
Teck Resources Ltd., 5.38%, 10/01/15									2,350				2,589,063
													17,694,253
Multiline Retail — 0.3%
Dufry Finance SCA, 5.50%, 10/15/20 (a)									1,260				1,313,550
Oil, Gas & Consumable Fuels — 11.3%
Access Midstream Partners LP, 6.13%, 7/15/22									400				429,000
Anadarko Petroleum Corp., 5.95%, 9/15/16									1,916				2,203,042
BP Capital Markets Plc, 3.13%, 10/01/15									330				349,598
Burlington Resources Finance Co., 7.40%, 12/01/31 (e)									950				1,328,029
Carrizo Oil & Gas, Inc., 7.50%, 9/15/20									400				420,000
Cenovus Energy, Inc., 6.75%, 11/15/39									750				988,233
ConocoPhillips Canada Funding Co., 5.95%, 10/15/36									150				190,173
CONSOL Energy, Inc.:
8.00%, 4/01/17									514				558,975
8.25%, 4/01/20									166				183,015
Denbury Resources, Inc., 4.63%, 7/15/23									627				615,244
El Paso Natural Gas Co. LLC, 8.38%, 6/15/32									275				390,764
El Paso Pipeline Partners Operating Co. LLC, 6.50%, 4/01/20									240				289,967

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

89

Schedule of Investments (continued)	BlackRock Income Opportunity Trust, Inc. (BNA) (Percentages shown are based on Net Assets)

Corporate Bonds								Par (000)				Value
Oil, Gas & Consumable Fuels (concluded)
Energy Transfer Partners LP, 6.50%, 2/01/42					USD				500			$	577,145
Energy XXI Gulf Coast, Inc., 9.25%, 12/15/17									455				514,150
Enterprise Products Operating LLC:
4.05%, 2/15/22									1,250				1,359,645
6.13%, 10/15/39									700				825,763
5.95%, 2/01/41									500				585,478
Series L, 6.30%, 9/15/17									600				723,800
KeySpan Gas East Corp., 5.82%, 4/01/41 (a)(e)									505				633,385
Kinder Morgan Energy Partners LP:
5.95%, 2/15/18									1,300				1,550,585
6.50%, 9/01/39									3,000				3,627,495
6.55%, 9/15/40									110				134,430
6.38%, 3/01/41									160				192,734
Kodiak Oil & Gas Corp., 8.13%, 12/01/19									110				123,750
Linn Energy LLC, 6.25%, 11/01/19 (a)									355				362,100
Marathon Petroleum Corp., 6.50%, 3/01/41									1,052				1,321,916
MarkWest Energy Partners LP, 4.50%, 7/15/23									206				201,365
MidAmerican Energy Co., 5.80%, 10/15/36									800				1,003,350
MidAmerican Energy Holdings Co.:
5.95%, 5/15/37									950				1,174,681
6.50%, 9/15/37									2,115				2,774,231
Newfield Exploration Co., 5.63%, 7/01/24									710				741,950
Nexen, Inc.:
6.40%, 5/15/37									400				506,599
7.50%, 7/30/39									670				960,180
Offshore Group Investments Ltd., 11.50%, 8/01/15									163				177,670
PBF Holding Co. LLC, 8.25%, 2/15/20 (a)									110				119,625
PDC Energy, Inc., 7.75%, 10/15/22 (a)									300				317,250
Petrobras International Finance Co.:
3.88%, 1/27/16									1,335				1,395,514
5.75%, 1/20/20									1,760				1,953,714
Pioneer Natural Resources Co., 3.95%, 7/15/22									350				364,750
Plains Exploration & Production Co., 6.88%, 2/15/23									950				1,094,875
Premier Oil Plc, 5.00%, 6/09/18									1,900				1,992,625
Range Resources Corp., 5.75%, 6/01/21									941				1,002,165
Sabine Pass Liquefaction LLC, 5.63%, 2/01/21 (a)									2,250				2,323,125
Sabine Pass Liquified Natural Gas LP:
7.50%, 11/30/16									1,120				1,237,600
6.50%, 11/01/20 (a)									475				501,125
SandRidge Energy, Inc., 7.50%, 2/15/23									367				384,433
Tennessee Gas Pipeline Co. LLC, 7.50%, 4/01/17									1,030				1,266,257
Tesoro Corp., 5.38%, 10/01/22									360				374,400
Western Gas Partners LP:
5.38%, 6/01/21									715				808,358
4.00%, 7/01/22									200				207,069
The Williams Cos., Inc., Series A, 7.50%, 1/15/31									2,500				3,077,585
													46,438,912
Paper & Forest Products — 0.5%
Clearwater Paper Corp., 7.13%, 11/01/18									1,000				1,082,500
International Paper Co.:
7.50%, 8/15/21									75				97,868
4.75%, 2/15/22									420				471,176
6.00%, 11/15/41									435				507,082
NewPage Corp., 11.38%, 12/31/14 (d)(g)									1,146				—
													2,158,626
Pharmaceuticals — 0.4%
Capsugel Finance Co. SCA, 9.88%, 8/01/19 (a)					EUR				200				293,748
Jaguar Holding Co. II/Jaguar Merger Sub, Inc., 9.50%, 12/01/19 (a)					USD				520				596,700
Valeant Pharmaceuticals International, 6.38%, 10/15/20 (a)									575				618,844
													1,509,292
Corporate Bonds								Par (000)				Value
Real Estate Investment Trusts (REITs) — 0.7%
Felcor Lodging LP, 5.63%, 3/01/23 (a)					USD				247			$	248,544
Simon Property Group LP, 4.75%, 3/15/42									835				885,314
Ventas Realty LP/Ventas Capital Corp., 4.75%, 6/01/21									275				304,264
Vornado Realty LP, 5.00%, 1/15/22									1,190				1,321,299
													2,759,421
Real Estate Management & Development — 0.8%
Lennar Corp., 4.75%, 11/15/22 (a)									440				425,150
Mattamy Group Corp., 6.50%, 11/15/20 (a)									390				388,538
Punch Taverns Finance Plc, Series A2R, 6.82%, 7/15/20					GBP				704				1,076,013
Realogy Corp. (a)(e):
7.88%, 2/15/19					USD				369				401,287
7.63%, 1/15/20									520				586,300
WEA Finance LLC, 4.63%, 5/10/21 (a)									305				338,649
													3,215,937
Road & Rail — 0.7%
Burlington Northern Santa Fe LLC, 5.75%, 5/01/40									940				1,135,144
The Hertz Corp., 7.38%, 1/15/21									1,450				1,598,625
													2,733,769
Semiconductors & Semiconductor Equipment — 0.2%
NXP BV/NXP Funding LLC, 5.75%, 2/15/21 (a)									470				480,575
Spansion LLC, 7.88%, 11/15/17									390				411,450
													892,025
Software — 0.5%
IAC/InterActiveCorp, 4.75%, 12/15/22 (a)									598				584,545
Nuance Communications, Inc., 5.38%, 8/15/20 (a)									555				561,938
Oracle Corp., 5.38%, 7/15/40 (e)									800				965,591
													2,112,074
Specialty Retail — 0.4%
The Home Depot, Inc., 5.88%, 12/16/36 (e)									830				1,052,685
QVC, Inc. (a):
7.50%, 10/01/19									395				435,958
7.38%, 10/15/20									275				304,821
5.13%, 7/02/22									35				37,009
													1,830,473
Textiles, Apparel & Luxury Goods — 0.1%
PVH Corp., 4.50%, 12/15/22									487				480,304
Thrifts & Mortgage Finance — 0.3%
Radian Group, Inc., 5.38%, 6/15/15									1,400				1,400,000
Tobacco — 1.2%
Altria Group, Inc.:
9.95%, 11/10/38									800				1,330,455
10.20%, 2/06/39									1,389				2,354,340
Reynolds American, Inc., 4.75%, 11/01/42									1,050				1,027,370
													4,712,165
Wireless Telecommunication Services — 2.3%
America Movil SAB de CV, 2.38%, 9/08/16 (e)									800				828,339
Crown Castle International Corp., 5.25%, 1/15/23 (a)									465				476,625
Crown Castle Towers LLC, 6.11%, 1/15/40 (a)									1,595				1,936,931
Digicel Group Ltd., 8.25%, 9/30/20 (a)									405				431,933
Digicel Ltd. (a):
8.25%, 9/01/17									150				158,250
6.00%, 4/15/21 (c)									495				493,763
MetroPCS Wireless, Inc., 6.63%, 11/15/20									660				690,525
Rogers Communications, Inc., 7.50%, 8/15/38									1,175				1,625,557
SBA Tower Trust, 5.10%, 4/15/42 (a)									360				403,894
Sprint Capital Corp.:
6.88%, 11/15/28									490				494,900
8.75%, 3/15/32									350				411,250

See Notes to Financial Statements.

90

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

Schedule of Investments (continued)	BlackRock Income Opportunity Trust, Inc. (BNA) (Percentages shown are based on Net Assets)

Corporate Bonds								Par (000)				Value
Wireless Telecommunication Services (concluded)
Sprint Nextel Corp. (a):
9.00%, 11/15/18					USD				530			$	657,200
7.00%, 3/01/20									770				900,900
													9,510,067
Total Corporate Bonds — 83.2%													340,394,630
Foreign Agency Obligations — 0.1%
Italy Government International Bond, 5.38%, 6/15/33									470				477,962
Non-Agency Mortgage-Backed Securities
Collateralized Mortgage Obligations — 2.4%
Banc of America Funding Corp., Series 2007-2, Class 1A2, 6.00%, 3/25/37									953				860,374
Collateralized Mortgage Obligation Trust, Series 40, Class R, 580.50%, 4/01/18									—	(i)			34
Countrywide Alternative Loan Trust:
Series 2005-64CB, Class 1A15, 5.50%, 12/25/35									1,429				1,260,516
Series 2006-OA21, Class A1, 0.39%, 3/20/47 (b)									815				554,339
Countrywide Home Loan Mortgage Pass-Through Trust:
Series 2006-OA5, Class 2A1, 0.40%, 4/25/46 (b)									319				215,021
Series 2007-10, Class A22, 6.00%, 7/25/37									528				471,869
Credit Suisse Mortgage Capital Certificates, Series 2011-2R, Class 2A1, 2.63%, 7/27/36 (a)(b)									1,214				1,195,825
GMAC Mortgage Corp. Loan Trust, Series 2005-AR3, Class 5A1, 5.20%, 6/19/35 (b)									907				920,155
Homebanc Mortgage Trust, Series 2006-2, Class A1, 0.38%, 12/25/36 (b)									567				460,456
IndyMac IMJA Mortgage Loan Trust, Series 2007-A1, Class A4, 6.00%, 8/25/37									771				658,968
Merrill Lynch Mortgage Investors, Inc., Series 2006-A3, Class 3A1, 2.97%, 5/25/36 (b)									637				507,982
Monastery BV, Series 2004-I, Class A2, 0.52%, 3/17/37 (b)					EUR				957				1,070,896
Residential Funding Securities LLC, Series 2003-RM2, Class AI5, 8.50%, 5/25/33					USD				1,140				1,203,093
WaMu Mortgage Pass-Through Certificates, Series 2007-OA4, Class 1A, 0.94%, 5/25/47 (b)									352				298,791
Wells Fargo Mortgage-Backed Securities Trust, Series 2007-10, Class 1A21, 6.00%, 7/25/37									46				45,447
													9,723,766
Commercial Mortgage-Backed Securities — 12.7%
Banc of America Merrill Lynch Commercial Mortgage, Inc.:
Series 2006-6, Class A2, 5.31%, 10/10/45									1,351				1,402,116
Series 2007-1, Class A4, 5.45%, 1/15/49									500				570,794
Series 2007-2, Class A4, 5.63%, 4/10/49 (b)									750				868,175
Bear Stearns Commercial Mortgage Securities, Series 2005-PWR9, Class A4A, 4.87%, 9/11/42									800				867,762
Citigroup Commercial Mortgage Trust, Series 2008-C7, Class A4, 6.06%, 12/10/49 (b)									1,200				1,424,825
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2006-CD3, Class AM, 5.65%, 10/15/48									1,100				1,236,152
Commercial Mortgage Loan Trust, Series 2008-LS1, Class A4B, 6.01%, 12/10/49 (b)									1,515				1,776,592

Non-Agency Mortgage-Backed Securities								Par (000)				Value
Commercial Mortgage-Backed Securities (concluded)
Commercial Mortgage Pass-Through Certificates:
Series 2006-C7, Class AM, 5.77%, 6/10/46 (b)					USD				1,750			$	1,924,666
Series 2013-LC6, Class B, 3.74%, 1/10/46									695				715,320
Series 2013-LC6, Class D, 4.29%, 1/10/46 (a)(b)									835				762,006
Credit Suisse Mortgage Capital Certificates:
Series 2006-C3, Class AM, 5.80%, 6/15/38 (b)									1,000				1,098,945
Series 2006-C5, Class AM, 5.34%, 12/15/39									1,750				1,925,779
Series 2010-RR2, Class 2A, 5.76%, 9/15/39 (a)(b)									1,010				1,159,595
CS First Boston Mortgage Securities Corp., Series 2005-C3, Class AJ, 4.77%, 7/15/37									705				730,171
DBRR Trust, Series 2011-C32, Class A3A, 5.74%, 6/17/49 (a)(b)									365				417,394
GMAC Commercial Mortgage Securities, Inc., Series 2004-C3, Class A4, 4.55%, 12/10/41									456				457,723
Greenwich Capital Commercial Funding Corp.:
Series 2006-GG7, Class A4, 5.86%, 7/10/38 (b)									1,169				1,322,739
Series 2007-GG9, Class A4, 5.44%, 3/10/39									2,165				2,466,703
GS Mortgage Securities Corp. II:
Series 2007-GG10, Class A4, 5.79%, 8/10/45 (b)									430				491,372
Series 2013-GC10, Class B, 3.68%, 2/10/46 (a)									1,255				1,290,985
JPMorgan Chase Commercial Mortgage Securities Corp.:
Series 2004-LN2, Class A2, 5.12%, 7/15/41									820				859,954
Series 2006-CB14, Class AM, 5.45%, 12/12/44 (b)									330				356,979
Series 2006-CB16, Class AJ, 5.62%, 5/12/45									720				684,813
LB-UBS Commercial Mortgage Trust (b):
Series 2004-C4, Class A3, 5.39%, 6/15/29									342				349,047
Series 2004-C8, Class C, 4.93%, 12/15/39									1,385				1,456,181
Series 2007-C6, Class A4, 5.86%, 7/15/40									5,225				6,051,997
Series 2007-C7, Class A3, 5.87%, 9/15/45									1,460				1,685,532
Morgan Stanley Capital I Trust (b):
Series 2007-HQ11, Class A4, 5.45%, 2/12/44									4,000				4,577,876
Series 2007-XLC1, Class A2, 0.56%, 7/17/17									127				122,056
Morgan Stanley Reremic Trust, Series 2011, Class A, 2.50%, 3/23/51 (a)									600				605,727
RCMC LLC, Series 2012-CRE1, Class A, 5.62%, 11/15/44 (a)									984				985,517
Titan Europe Plc, Series 2007-1X, Class A, 0.76%, 1/20/17 (b)					GBP				1,607				2,048,313
Wachovia Bank Commercial Mortgage Trust:
Series 2006-C28, Class A2, 5.50%, 10/15/48					USD				4,203				4,247,948
Series 2007-C33, Class A4, 5.92%, 2/15/51 (b)									2,285				2,637,290
WF-RBS Commercial Mortgage Trust:
Series 2012-C8, Class B, 4.31%, 8/15/45									700				758,769
Series 2012-C8, Class C, 4.88%, 8/15/45 (b)									900				984,305
Series 2013-C11, Class D, 4.19%, 3/15/45 (a)(b)									800				764,750
													52,086,868
Interest Only Collateralized Mortgage Obligations — 0.0%
GSMPS Mortgage Loan Trust, Series 1998-5, 0.01%, 6/19/27 (a)(b)									1,920				39,254
Interest Only Commercial Mortgage-Backed Securities — 1.4%
Morgan Stanley Bank of America Merrill Lynch Trust, Series 2012-C5, Class XA, 1.93%, 8/15/45 (a)(b)									15,886				1,784,893
Morgan Stanley Capital I Trust, Series 2012-C4, Class XA, 2.69%, 3/15/45 (a)(b)									9,551				1,395,889

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

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91

Schedule of Investments (continued)	BlackRock Income Opportunity Trust, Inc. (BNA) (Percentages shown are based on Net Assets)

Non-Agency Mortgage-Backed Securities								Par (000)				Value
Interest Only Commercial Mortgage-Backed Securities (concluded)
WF-RBS Commercial Mortgage Trust, Class XA (a)(b):
Series 2012-C8, 2.25%, 8/15/45					USD				6,079			$	826,603
Series 2012-C9, 2.28%, 11/15/45									10,812				1,548,255
													5,555,640
Total Non-Agency Mortgage-Backed Securities — 16.5%													67,405,528
Preferred Securities
Capital Trusts
Capital Markets — 0.0%
State Street Capital Trust IV, 1.31%, 6/01/67 (b)									70				56,175
Commercial Banks — 0.1%
Fifth Third Capital Trust IV, 6.50%, 4/15/67 (b)									505				505,631
Diversified Financial Services — 1.0%
JPMorgan Chase & Co., Series 1, 7.90% (b)(j)									3,500				4,036,718
Electric Utilities — 0.5%
Electricite de France SA, 5.25% (a)(b)(j)									2,100				2,067,450
Insurance — 2.4%
The Allstate Corp., 6.50%, 5/15/67 (b)									2,150				2,322,000
American International Group, Inc., 8.18%, 5/15/68 (b)									195				257,644
Lincoln National Corp., 6.05%, 4/20/67 (b)									750				757,500
MetLife Capital Trust IV, 7.88%, 12/15/67 (a)									645				796,575
MetLife, Inc., 6.40%, 12/15/66									3,500				3,783,790
Swiss Re Capital I LP, 6.85% (a)(b)(j)									1,060				1,120,950
XL Group Plc, Series E, 6.50% (b)(j)									810				789,750
													9,828,209
Total Capital Trusts — 4.0%													16,494,183
Preferred Stocks									Shares
Commercial Banks — 1.0%
US Bancorp, Series G, 6.00% (b)									150,000				4,057,500
Thrifts & Mortgage Finance — 0.1%
Fannie Mae (b)(d):
Series O, 7.00%									40,000				154,000
Series S, 7.75%									10,000				20,400
													174,400
Total Preferred Stocks — 1.1%													4,231,900
Trust Preferreds
Commercial Banks — 0.1%
Citigroup Capital XIII, 7.88%, 10/30/40 (b)									14,810				415,953
Total Preferred Securities — 5.2%													21,142,036
Taxable Municipal Bonds									Par   (000)
City of Detroit Michigan, GO, Capital Improvement, Limited Tax, Series A-2, 8.00%, 4/01/14					USD				1,525				1,454,347
District of Columbia, Refunding RB, Howard University, Series B, 7.63%, 10/01/35									1,000				1,233,940
East Bay Municipal Utility District, RB, Build America Bonds, 5.87%, 6/01/40									950				1,245,697
Indianapolis Local Public Improvement Bond Bank, RB, Build America Bonds, 6.12%, 1/15/40									1,260				1,645,862
Metropolitan Transportation Authority, RB, Build America Bonds, 7.34%, 11/15/39									670				986,957

Taxable Municipal Bonds								Par (000)				Value
Municipal Electric Authority of Georgia Plant Vogtle Units 3 & 4, Refunding RB, Build America Bonds, 7.06%, 4/01/57					USD				1,000			$	1,144,870
New York City Municipal Water Finance Authority, Refunding RB, Second General Resolution:
Series EE, 5.38%, 6/15/43									385				449,618
Series EE, 5.50%, 6/15/43									465				547,500
Series GG, Build America Bonds, 5.72%, 6/15/42									690				895,572
New York State Dormitory Authority, RB, Build America Bonds:
5.63%, 3/15/39									550				668,624
5.60%, 3/15/40									950				1,188,821
Port Authority of New York & New Jersey, RB, Consolidated, 159th Series, 6.04%, 12/01/29									395				507,338
State of California, GO, Build America Bonds:
7.63%, 3/01/40									860				1,252,968
Various Purpose, 7.55%, 4/01/39									140				203,202
State of Illinois, GO, Pension Funding, 5.10%, 6/01/33									1,000				991,140
University of California, RB, Build America Bonds, 5.95%, 5/15/45									440				537,693
Total Taxable Municipal Bonds — 3.6%													14,954,149
US Government Sponsored Agency Securities
Agency Obligations — 4.0%
Fannie Mae (e):
1.94%, 10/09/19 (k)									7,305				6,432,725
5.63%, 7/15/37									825				1,155,230
Federal Home Loan Bank (e):
5.25%, 12/09/22									700				902,703
5.37%, 9/09/24									1,100				1,422,983
Resolution Funding Corp., 3.15%, 4/15/30 (k)									6,055				3,542,986
Tennessee Valley Authority, 5.25%, 9/15/39 (e)									2,405				3,090,158
													16,546,785
Collateralized Mortgage Obligations — 0.2%
Fannie Mae Mortgage-Backed Securities:
Series 1991-46, Class S, 2,468.91%, 5/25/21 (b)									—	(i)			2,522
Series 1991-87, Class S, 26.10%, 8/25/21 (b)									17				27,676
Series 2005-5, Class PK, 5.00%, 12/25/34									506				542,884
Series G-7, Class S, 1,119.90%, 3/25/21 (b)									—	(i)			1,377
Series G-17, Class S, 1,058.38%, 6/25/21 (b)									—	(i)			1,747
Series G-33, Class PV, 1,078.42%, 10/25/21									—	(i)			1,675
Series G-49, Class S, 1,012.05%, 12/25/21 (b)									—	(i)			696
Freddie Mac Mortgage-Backed Securities:
Series 19, Class R, 16,196.33%, 3/15/20 (b)									—	(i)			398
Series 75, Class R, 9.50%, 1/15/21									—	(i)			1
Series 75, Class RS, 29.91%, 1/15/21 (b)									—	(i)			1
Series 173, Class R, 9.00%, 11/15/21									—	(i)			4
Series 173, Class RS, 9.37%, 11/15/21 (b)									—	(i)			4
Series 192, Class U, 1,009.03%, 2/15/22 (b)									—	(i)			—
Series 1057, Class J, 1,008.00%, 3/15/21									—	(i)			567
													579,552
Commercial Mortgage-Backed Securities — 0.7%
Freddie Mac Mortgage-Backed Securities (a)(b):
Series 2012-K706, Class C, 4.02%, 11/25/44									170				172,682
Series 2013-K024, Class B, 3.50%, 11/25/45									1,750				1,742,442
Series K013, Class A2, 3.97%, 1/25/21 (b)									930				1,051,807
													2,966,931
Interest Only Collateralized Mortgage Obligations — 2.7%
Fannie Mae Mortgage-Backed Securities:
Series 7, Class 2, 8.50%, 4/01/17									1				183
Series 89, Class 2, 8.00%, 10/01/18									2				257

See Notes to Financial Statements.

92

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Schedule of Investments (continued)	BlackRock Income Opportunity Trust, Inc. (BNA) (Percentages shown are based on Net Assets)

US Government Sponsored Agency Securities								Par (000)				Value
Interest Only Collateralized Mortgage Obligations (concluded)
Fannie Mae Mortgage-Backed Securities (concluded):
Series 94, Class 2, 9.50%, 8/01/21					USD				1			$	183
Series 1990-123, Class M, 1,009.50%, 10/25/20									—	(i)			185
Series 1990-136, Class S, 19.86%, 11/25/20 (b)									5				6,754
Series 1991-99, Class L, 930.00%, 8/25/21									—	(i)			754
Series 1991-139, Class PT, 648.35%, 10/25/21									—	(i)			1,303
Series 1997-50, Class SI, 1.20%, 4/25/23 (b)									128				4,280
Series 2010-126, Class UI, 5.50%, 10/25/40									5,307				780,225
Series 2012-47, Class NI, 4.50%, 4/25/42									5,734				883,068
Series 2012-96, Class DI, 4.00%, 2/25/27									8,614				964,772
Series 2012-M9, Class X1, 4.08%, 12/25/17 (b)									13,393				2,167,401
Series G-10, Class S, 1,083.41%, 5/25/21 (b)									—	(i)			5,432
Series G-12, Class S, 1,150.07%, 5/25/21 (b)									—	(i)			3,269
Series G92-5, Class H, 9.00%, 1/25/22									21				2,513
Freddie Mac Mortgage-Backed Securities:
Series 176, Class M, 1,010.00%, 7/15/21									—	(i)			232
Series 200, Class R, 196,091.09%, 12/15/22 (b)									—	(i)			489
Series 1043, Class H, 43.88%, 2/15/21 (b)									3				6,665
Series 1054, Class I, 859.64%, 3/15/21 (b)									—	(i)			520
Series 1056, Class KD, 1,084.50%, 3/15/21									—	(i)			493
Series 1148, Class E, 1,167.37%, 10/15/21 (b)									—	(i)			1,315
Series 1254, Class Z, 8.50%, 4/15/22									46				9,428
Series 2611, Class QI, 5.50%, 9/15/32									1,324				148,903
Series K021, Class X1, 1.51%, 6/25/22 (b)									7,061				786,084
Series K707, Class X1, 1.56%, 12/25/18 (b)									2,517				196,239
Series K710, Class X1, 1.78%, 5/25/19 (b)									8,657				815,881
Ginnie Mae Mortgage-Backed Securities (b):
Series 2009-78, Class SD, 6.00%, 9/20/32									6,783				1,267,118
Series 2011-52, Class NS, 6.47%, 4/16/41									18,743				3,117,804
													11,171,750
Mortgage-Backed Securities — 11.4%
Fannie Mae Mortgage-Backed Securities:
3.00%, 3/15/43–4/15/43 (l)									24,700				25,549,906
3.50%, 3/01/42 (e)									1,218				1,290,183
4.00%, 12/01/41 (e)									3,962				4,228,886
4.50%, 7/01/41 (e)									5,361				5,793,808
5.00%, 8/01/34 (e)									3,797				4,142,906
5.50%, 12/01/13–6/01/38 (e)									2,644				2,896,294
6.00%, 3/01/16–12/01/38 (e)									2,347				2,572,571
Ginnie Mae Mortgage-Backed Securities, 8.00%, 7/15/24									—	(i)			343
													46,474,897
Principal Only Collateralized Mortgage Obligations — 0.0%
Fannie Mae Mortgage-Backed Securities:
Series 203, Class 1, 2/01/23									7				6,030
Series 228, Class 1, 6/01/23									5				4,959
Series 1993-51, Class E, 2/25/23									23				19,621
Series 1993-70, Class A, 5/25/23									3				3,226
Freddie Mac Mortgage-Backed Securities, Series 1739, Class B, 2/15/24									—	(i)			1
													33,837
Total US Government Sponsored Agency Securities — 19.0%													77,773,752

US Treasury Obligations								Par (000)				Value
US Treasury Bonds (e):
6.25%, 8/15/23					USD				4,355			$	6,163,004
5.38%, 2/15/31									375				521,895
3.50%, 2/15/39									2,865				3,132,700
4.25%, 5/15/39									2,770				3,422,249
4.38%, 5/15/40									8,225				10,367,358
4.75%, 2/15/41									1,621				2,164,541
4.38%, 5/15/41									805				1,015,306
3.13%, 11/15/41									9,925				10,035,108
3.13%, 2/15/42									2,368				2,391,680
3.00%, 5/15/42									2,730				2,685,637
US Treasury Notes (e):
2.00%, 2/15/22									1,937				1,984,972
1.75%, 5/15/22									152				151,857
Total US Treasury Obligations — 10.8%													44,036,307
Warrants (m)									Shares
Software — 0.0%
Bankruptcy Management Solutions, Inc. (Expires 9/28/17)									101				—
Total Long-Term Investments (Cost — $560,412,372) — 146.3%													598,530,900
Options Purchased
(Cost — $1,733,466) — 0.3%													1,320,456
Total Investments Before TBA Sale Commitments and Options Written (Cost — $562,145,838) — 146.6%													599,851,356
TBA Sale Commitments (l)									Par (000)
Fannie Mae Mortgage-Backed Securities, 3.00%, 3/15/43					USD				8,400				(8,696,625	)
Total TBA Sale Commitments (Proceeds — $8,690,719) — (2.1)%													(8,696,625	)
Options Written
(Premiums Received — $3,446,468) — (0.7)%													(2,733,396	)
Total Investments, Net of TBA Sale Commitments and Options Written — 143.8%													588,421,335
Liabilities in Excess of Other Assets — (43.8)%													(179,216,638	)
Net Assets — 100.0%												$	409,204,697

Notes to Schedule of Investments

(a)				Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. 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.

See Notes to Financial Statements.

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FEBRUARY 28, 2013

93

Schedule of Investments (continued)	BlackRock Income Opportunity Trust, Inc. (BNA)

(c)

When-issued security. Unsettled when-issued transactions were as follows:

Counterparty				Value				Unrealized Depreciation
Deutsche Bank Securities, Inc.				$	487,800				—
JPMorgan Chase & Co.				$	493,750				—
JPMorgan Chase & Co.				$	486,500				—
Citigroup Global Markets				$	493,763			$	(1,238	)
Bank of New York Mellon				$	484,250				—
Goldman Sachs & Co.				$	490,510				—

(d)				Non-income producing security.
(e)				All or a portion of security has been pledged as collateral in connection with open reverse repurchase agreements.
(f)				Convertible security.
(g)				Issuer filed for bankruptcy and/or is in default of principal and/or interest payments.
(h)				Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown is as of report date.
(i)				Amount is less than $500.
(j)				Security is perpetual in nature and has no stated maturity date.
(k)				Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(l)				Represents or includes a TBA transaction. Unsettled TBA transactions as of February 28, 2013 were as follows:

Counterparty				Value				Unrealized Appreciation (Depreciation)
Goldman Sachs Group, Inc.				$	16,875,594			$	53,484
Deutsche Bank AG				$	(22,313	)		$	(984	)

(m)				Warrants entitle the Trust 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 of the warrants, if any.
•				Investments in issuers considered to be an affiliate of the Trust during the six months ended February 28, 2013, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliate				Shares Held at August 31, 2012		Net Activity		Shares Held at February 28, 2013		Income		Realized Gain
BlackRock Liquidity Funds, TempFund, Institutional Class				1,343,014		(1,343,014)		—		$960		$26

•

For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Trust management. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.

See Notes to Financial Statements.

94

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Schedule of Investments (continued)	BlackRock Income Opportunity Trust, Inc. (BNA)

•

Reverse repurchase agreements outstanding as of February 28, 2013 were as follows:

Counterparty				Interest Rate		Trade Date		Maturity Date		Face Value				Face Value Including Accrued Interest
BNP Paribas SA				0.17%		5/09/12		Open		$	2,212,665			$	2,215,758
BNP Paribas SA				0.18%		5/09/12		Open			1,045,494				1,047,041
BNP Paribas SA				0.20%		6/26/12		Open			1,214,812				1,216,486
BNP Paribas SA				0.32%		7/02/12		Open			2,979,000				2,987,029
BNP Paribas SA				0.27%		7/24/12		Open			573,750				574,697
Barclays Plc				0.35%		8/09/12		Open			3,435,469				3,442,282
Barclays Plc				0.35%		8/21/12		Open			1,290,812				1,293,222
BNP Paribas SA				0.11%		8/21/12		Open			2,791,425				2,793,063
Credit Suisse Group AG				0.25%		9/06/12		Open			2,019,322				2,021,791
Barclays Plc				0.35%		9/18/12		Open			3,357,563				3,362,916
Bank of America Merrill Lynch				0.28%		10/16/12		Open			3,276,844				3,280,310
Deutsche Bank AG				(0.63)%		10/24/12		Open			340,864				340,106
Bank of America Merrill Lynch				0.21%		12/10/12		Open			10,032,532				10,037,271
Bank of America Merrill Lynch				0.24%		12/10/12		Open			7,361,419				7,365,394
Credit Suisse Group AG				0.37%		12/18/12		Open			37,319,578				37,346,402
BNP Paribas SA				0.34%		1/09/13		Open			1,969,000				1,969,948
BNP Paribas SA				0.35%		1/11/13		Open			4,760,000				4,762,268
Credit Suisse Group AG				0.35%		1/14/13		Open			2,160,813				2,161,779
UBS AG				(0.50)%		1/16/13		Open			496,600				496,297
UBS AG				0.28%		1/16/13		Open			3,553,388				3,554,604
UBS AG				0.32%		1/16/13		Open			8,469,687				8,473,002
UBS AG				0.33%		1/16/13		Open			2,720,150				2,721,247
UBS AG				0.34%		1/16/13		Open			11,910,655				11,915,603
UBS AG				0.35%		1/16/13		Open			1,962,500				1,963,340
BNP Paribas SA				0.35%		1/22/13		Open			883,000				883,326
Credit Suisse Group AG				0.35%		2/01/13		Open			3,730,860				3,731,875
Deutsche Bank AG				(0.75)%		2/07/13		Open			257,040				256,922
Barclays Plc				0.35%		2/08/13		Open			1,579,969				1,580,291
BNP Paribas SA				0.32%		2/08/13		Open			2,889,000				2,889,539
Credit Suisse Group AG				0.12%		2/08/13		Open			3,012,263				3,012,473
Deutsche Bank AG				0.16%		2/08/13		Open			1,406,625				1,406,756
Bank of America Merrill Lynch				0.15%		2/08/13		Open			12,767,020				12,768,137
HSBC Holdings Plc				0.27%		2/12/13		Open			20,108,887				20,111,451
BNP Paribas SA				0.15%		2/14/13		Open			9,937,406				9,938,027
BNP Paribas SA				0.33%		2/14/13		Open			1,020,000				1,020,140
UBS AG				0.34%		2/14/13		Open			1,903,625				1,903,894
BNP Paribas SA				0.20%		2/20/13		Open			150,670				150,678
BNP Paribas SA				0.34%		2/28/13		Open			3,367,000				3,367,032
Barclays Plc				(0.50)%		3/05/13		Open			534,725				534,718
Total										$	180,802,432			$	180,897,115

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

95

Schedule of Investments (continued)	BlackRock Income Opportunity Trust, Inc. (BNA)

•

Financial futures contracts as of February 28, 2013 were as follows:

Contracts Purchased     (Sold)		Issue		Exchange		Expiration		Notional Value			Unrealized Appreciation (Depreciation)
373		30-Year US Treasury Bond		Chicago Board of Trade		June 2013		USD	53,630,406		$	12,383
74		Ultra Long US Treasury Bond		Chicago Board of Trade		June 2013		USD	11,692,000			(65,833)
296		90-Day Euro-Dollar		Chicago Mercantile		March 2015		USD	73,544,900			28,287
349		90-Day Euro-Dollar		Chicago Mercantile		March 2016		USD	86,320,788			25,076
(15)		90-Day Euro-Dollar		Chicago Mercantile		March 2013		USD	3,738,938			(6,038)
(57)		2-Year US Treasury Note		Chicago Board of Trade		June 2013		USD	12,566,719			(6,659)
(5)		5-Year US Treasury Note		Chicago Board of Trade		June 2013		USD	619,922			(1,119)
(608)		10-Year US Treasury Note		Chicago Board of Trade		June 2013		USD	79,980,500			(281,165)
(12)		90-Day Euro-Dollar		Chicago Mercantile		June 2013		USD	2,990,700			(3,780)
(12)		90-Day Euro-Dollar		Chicago Mercantile		September 2013		USD	2,990,100			(7,059)
(16)		90-Day Euro-Dollar		Chicago Mercantile		December 2013		USD	3,985,800			(13,342)
(12)		90-Day Euro-Dollar		Chicago Mercantile		March 2014		USD	2,988,600			(9,354)
(9)		90-Day Euro-Dollar		Chicago Mercantile		June 2014		USD	2,240,550			(5,348)
(9)		90-Day Euro-Dollar		Chicago Mercantile		September 2014		USD	2,239,425			(8,900)
(9)		90-Day Euro-Dollar		Chicago Mercantile		December 2014		USD	2,237,850			(9,848)
(44)		90-Day Euro-Dollar		Chicago Mercantile		June 2015		USD	10,923,000			(57,494)
(284)		90-Day Euro-Dollar		Chicago Mercantile		September 2015		USD	70,432,000			(29,657)
(44)		90-Day Euro-Dollar		Chicago Mercantile		December 2015		USD	10,898,250			(69,971)
(349)		90-Day Euro-Dollar		Chicago Mercantile		September 2016		USD	86,037,225			(2,617)
Total											$	(512,438)

•

Foreign currency exchange contracts as of February 28, 2013 were as follows:

Currency Purchased			Currency Sold			Counterparty		Settlement Date		Unrealized Appreciation (Depreciation)
GBP	415,000		USD	652,749		State Street Corp.		4/17/13		$	(23,321	)
USD	855,844		EUR	650,000		BNP Paribas SA		4/17/13			6,964
USD	1,800,870		GBP	1,180,000		BNP Paribas SA		4/17/13			11,169
USD	425,255		GBP	268,236		Citigroup, Inc.		4/17/13			18,423
USD	111,188		GBP	69,600		Credit Suisse Group AG		4/17/13			5,625
USD	159,501		GBP	99,323		Credit Suisse Group AG		4/17/13			8,858
USD	641,138		GBP	399,252		Credit Suisse Group AG		4/17/13			35,594
USD	472,655		GBP	301,870		Deutsche Bank AG		4/17/13			14,810
USD	2,069,604		GBP	1,352,000		Deutsche Bank AG		4/17/13			19,031
USD	6,924,140		GBP	4,289,000		Deutsche Bank AG		4/17/13			419,033
USD	5,091,483		EUR	3,821,000		Citigroup, Inc.		4/23/13			101,144
Total										$	617,330

•

Over-the-counter interest rate swaptions purchased as of February 28, 2013 were as follows:

Description

Counterparty

Put/ Call

Exercise Rate

Pay/Receive Exercise Rate

Floating Rate Index

Expiration Date

Notional Amount (000)

Market Value

7-Year Interest Rate Swap

Citigroup, Inc.

Call

1.20%

Receive

3-month LIBOR

7/08/13

USD

11,700

$

16,112

7-Year Interest Rate Swap

Deutsche Bank AG

Call

1.30%

Receive

3-month LIBOR

8/21/13

USD

9,900

32,683

7-Year Interest Rate Swap

JPMorgan Chase & Co.

Call

1.39%

Receive

3-month LIBOR

10/06/14

USD

21,600

151,884

30-Year Interest Rate Swap

JPMorgan Chase & Co.

Put

3.75%

Pay

3-month LIBOR

6/03/13

USD

2,400

2,976

7-Year Interest Rate Swap

Citigroup, Inc.

Put

1.70%

Pay

3-month LIBOR

7/08/13

USD

16,700

104,861

7-Year Interest Rate Swap

Deutsche Bank AG

Put

1.80%

Pay

3-month LIBOR

8/21/13

USD

13,200

94,814

10-Year Interest Rate Swap

Deutsche Bank AG

Put

3.15%

Pay

3-month LIBOR

1/25/16

USD

2,500

112,321

10-Year Interest Rate Swap

Deutsche Bank AG

Put

3.75%

Pay

3-month LIBOR

2/16/16

USD

9,300

273,095

10-Year Interest Rate Swap

Deutsche Bank AG

Put

3.50%

Pay

3-month LIBOR

2/22/16

USD

10,000

357,303

10-Year Interest Rate Swap

Deutsche Bank AG

Put

4.50%

Pay

3-month LIBOR

3/16/17

USD

6,300

174,407

Total

$

1,320,456

See Notes to Financial Statements.

96

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

Schedule of Investments (continued)	BlackRock Income Opportunity Trust, Inc. (BNA)

•

Over-the-counter interest rate swaptions written as of February 28, 2013 were as follows:

Description

Counterparty

Put/ Call

Exercise Rate

Pay/Receive Exercise Rate

Floating Rate Index

Expiration Date

Notional Amount (000)

Market Value

7-Year Interest Rate Swap

Morgan Stanley

Call

1.45%

Pay

3-month LIBOR

4/05/13

USD

10,000

$

(45,852

)

7-Year Interest Rate Swap

Citigroup, Inc.

Call

1.45%

Pay

3-month LIBOR

7/08/13

USD

11,700

(74,185

)

7-Year Interest Rate Swap

Deutsche Bank AG

Call

1.55%

Pay

3-month LIBOR

8/21/13

USD

9,900

(98,182

)

5-Year Interest Rate Swap

JPMorgan Chase & Co.

Call

2.06%

Pay

3-month LIBOR

4/09/14

USD

16,100

(601,312

)

5-Year Interest Rate Swap

BNP Paribas SA

Call

1.15%

Pay

3-month LIBOR

6/09/14

USD

30,300

(207,371

)

5-Year Interest Rate Swap

JPMorgan Chase & Co.

Call

1.00%

Pay

3-month LIBOR

7/11/14

USD

15,600

(66,375

)

5-Year Interest Rate Swap

JPMorgan Chase & Co.

Call

1.48%

Pay

3-month LIBOR

7/31/14

USD

10,000

(140,910

)

5-Year Interest Rate Swap

Deutsche Bank AG

Call

1.00%

Pay

3-month LIBOR

8/01/14

USD

9,700

(41,107

)

5-Year Interest Rate Swap

Goldman Sachs Group, Inc.

Call

1.25%

Pay

3-month LIBOR

2/04/15

USD

6,200

(47,147

)

7-Year Interest Rate Swap

Citigroup, Inc.

Put

1.95%

Receive

3-month LIBOR

7/08/13

USD

16,700

(48,788

)

7-Year Interest Rate Swap

Deutsche Bank AG

Put

2.05%

Receive

3-month LIBOR

8/21/13

USD

13,200

(50,796

)

5-Year Interest Rate Swap

JPMorgan Chase & Co.

Put

2.06%

Receive

3-month LIBOR

4/09/14

USD

16,100

(85,287

)

5-Year Interest Rate Swap

BNP Paribas SA

Put

2.15%

Receive

3-month LIBOR

6/09/14

USD

30,300

(193,544

)

5-Year Interest Rate Swap

JPMorgan Chase & Co.

Put

2.00%

Receive

3-month LIBOR

7/11/14

USD

15,600

(137,424

)

5-Year Interest Rate Swap

JPMorgan Chase & Co.

Put

1.48%

Receive

3-month LIBOR

7/31/14

USD

10,000

(176,284

)

5-Year Interest Rate Swap

Deutsche Bank AG

Put

2.00%

Receive

3-month LIBOR

8/01/14

USD

9,700

(92,634

)

7-Year Interest Rate Swap

JPMorgan Chase & Co.

Put

2.39%

Receive

3-month LIBOR

10/06/14

USD

21,600

(400,311

)

5-Year Interest Rate Swap

Goldman Sachs Group, Inc.

Put

2.25%

Receive

3-month LIBOR

2/04/15

USD

6,200

(82,489

)

10-Year Interest Rate Swap

Deutsche Bank AG

Put

6.00%

Receive

3-month LIBOR

3/16/17

USD

12,600

(143,398

)

Total

$

(2,733,396

)

•

Credit default swaps — buy protection outstanding as of February 28, 2013 were as follows:

Issuer		Pay Fixed Rate		Counterparty		Expiration Date		Notional Amount (000)			Unrealized Depreciation
Radian Group, Inc.		5.00%		Citigroup, Inc.		6/20/15		USD	1,400		$	(83,197	)
The New York Times Co.		1.00%		Barclays Plc		12/20/16		USD	1,800			(40,921	)
Total											$	(124,118	)

•

Credit default swaps — sold protection outstanding as of February 28, 2013 were as follows:

Issuer/Index

Receive Fixed Rate

Counterparty

Expiration Date

Credit  Rating1

Notional Amount (000)2

Unrealized Appreciation

MetLife, Inc.

1.00%

Credit Suisse Group AG

9/20/16

A-

USD

545

$

37,616

MetLife, Inc.

1.00%

Deutsche Bank AG

9/20/16

A-

USD

730

46,262

MetLife, Inc.

1.00%

Goldman Sachs Group, Inc.

9/20/16

A-

USD

500

30,886

MetLife, Inc.

1.00%

Morgan Stanley

9/20/16

A-

USD

910

56,617

MetLife, Inc.

1.00%

Morgan Stanley

9/20/16

A-

USD

275

15,387

MetLife, Inc.

1.00%

Citigroup, Inc.

12/20/16

A-

USD

298

16,973

MetLife, Inc.

1.00%

Citigroup, Inc.

12/20/16

A-

USD

290

17,967

Markit CMBX North America AAA Index Series 3

0.08%

Morgan Stanley

12/13/49

AA

USD

530

40,189

Markit CMBX North America AAA Index Series 4

0.35%

Morgan Stanley

2/17/51

A

USD

530

42,912

Total

$

304,809

1

Using S&P’s rating of the issuer or the underlying securities, as applicable.

2

The maximum potential amount the Trust may pay should a negative credit event take place as defined under the terms of the agreement.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

97

Schedule of Investments (continued)	BlackRock Income Opportunity Trust, Inc. (BNA)

•

Interest rate swaps outstanding as of February 28, 2013 were as follows:

Fixed Rate		Floating Rate		Counterparty		Expiration Date		Notional Amount (000)			Unrealized Appreciation (Depreciation)
0.39%1		3-month LIBOR		JPMorgan Chase & Co.		11/29/14		USD	50,000		$	(18,750)
0.40%1		3-month LIBOR		Goldman Sachs Group, Inc.		12/27/14		USD	30,000		(12,195)
0.66%2		6-month EURIBOR		Deutsche Bank AG		2/05/15		EUR	5,000		22,054
1.18%1		3-month LIBOR		JPMorgan Chase & Co.		10/05/19		USD	15,800		147,065
1.48%2		3-month LIBOR		Deutsche Bank AG		2/25/20		USD	4,600		20,806
1.41%2		3-month LIBOR		Bank of America Corp.		2/28/20		USD	5,800		(2,290)
1.41%2		3-month LIBOR		JPMorgan Chase & Co.		3/01/20		USD	2,400		(1,056)
1.41%2		3-month LIBOR		JPMorgan Chase & Co.		3/04/20		USD	18,000		(11,750)
1.89%1		3-month LIBOR		JPMorgan Chase & Co.		10/08/21		USD	11,900		146,395
1.89%2		6-month EURIBOR		Citigroup, Inc.		6/27/22		EUR	1,800		46,955
1.91%1		3-month LIBOR		Deutsche Bank AG		1/22/23		USD	500		2,522
1.90%1		3-month LIBOR		Royal Bank of Scotland Group Plc		1/28/23		USD	400		2,298
1.72%2		6-month EURIBOR		Deutsche Bank AG		1/28/23		EUR	1,200		(2,872)
1.97%2		3-month LIBOR		Deutsche Bank AG		1/29/23		USD	1,000		736
2.08%2		3-month LIBOR		Deutsche Bank AG		2/19/23		USD	2,800		28,510
2.06%2		3-month LIBOR		Deutsche Bank AG		2/25/23		USD	3,400		27,406
2.58%1		6-month EURIBOR		Deutsche Bank AG		11/11/41		EUR	350		(17,925)
2.68%1		6-month EURIBOR		Deutsche Bank AG		11/18/41		EUR	750		(59,311)
2.15%1		6-month EURIBOR		Citigroup, Inc.		6/27/42		EUR	770		52,637
2.52%1		3-month LIBOR		Citigroup, Inc.		9/04/42		USD	3,400		296,913
2.52%1		3-month LIBOR		Goldman Sachs Group, Inc.		9/04/42		USD	5,100		447,259
2.49%1		6-month EURIBOR		Citigroup, Inc.		1/15/43		EUR	500		(13,085)
3.05%1		3-month LIBOR		Deutsche Bank AG		2/07/43		USD	4,800		(97,771)
2.95%1		3-month LIBOR		JPMorgan Chase & Co.		3/04/43		USD	2,600		1,070
Total											$	1,005,621

1

Trust pays the fixed rate and receives the floating rate.

2

Trust pays the floating rate and receives the fixed rate.

•

Fair Value Measurements—Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:

•				Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the Trust has the ability to access
•				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 Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust’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.

See Notes to Financial Statements.

98

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

Schedule of Investments (continued)	BlackRock Income Opportunity Trust, Inc. (BNA)

The following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy as of February 28, 2013:

				Level 1				Level 2				Level 3				Total
Assets:
Investments:
Long-Term Investments:
Asset-Backed Securities					—			$	24,172,976			$	7,751,958			$	31,924,934
Common Stocks					—				—				421,602				421,602
Corporate Bonds					—				334,059,835				6,334,795				340,394,630
Foreign Agency Obligations					—				477,962				—				477,962
Non-Agency Mortgage-Backed Securities					—				66,518,688				886,840				67,405,528
Preferred Securities				$	4,647,853				16,494,183				—				21,142,036
Taxable Municipal Bonds					—				14,954,149				—				14,954,149
US Government Sponsored Agency Securities					—				77,772,854				898				77,773,752
US Treasury Obligations					—				44,036,307				—				44,036,307
Options Purchased:
Interest Rate Contracts					—				1,320,456				—				1,320,456
Liabilities:
Investments:
TBA Sale Commitments					—				(8,696,625	)			—				(8,696,625	)
Total				$	4,647,853			$	571,110,785			$	15,396,093			$	591,154,731

				Level 1				Level 2				Level 3				Total
Derivative Financial Instruments1
Assets:
Credit contracts					—			$	304,809				—			$	304,809
Foreign currency exchange contracts					—				640,651				—				640,651
Interest rate contracts				$	65,746				1,242,626				—				1,308,372
Liabilities:
Credit contracts					—				(124,118	)			—				(124,118	)
Foreign currency exchange contracts					—				(23,321	)			—				(23,321	)
Interest rate contracts					(578,184	)			(2,970,401	)			—				(3,548,585	)
Total				$	(512,438	)		$	(929,754	)			—			$	(1,442,192	)

1

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

Certain of the Trust’s assets and liabilities are held at carrying amount or face value, which approximates fair value for financial statement purposes. As of February 28, 2013, such assets and liabilities are categorized within the disclosure hierarchy as follows:

				Level 1				Level 2				Level 3				Total
Assets:
Cash				$	1,805,619				—				—			$	1,805,619
Foreign currency at value					22,379				—				—				22,379
Cash pledged as collateral for financial futures contracts					1,146,000				—				—				1,146,000
Cash pledged as collateral for reverse repurchase agreements					846,837				—				—				846,837
Cash pledged as collateral for swaps					3,210,000				—				—				3,210,000
Liabilities:
Cash received as collateral for swaps					—			$	(1,100,000	)			—				(1,100,000	)
Reverse repurchase agreements					—				(180,802,432	)			—				(180,802,432	)
Total				$	7,030,835			$	(181,902,432	)			—			$	(174,871,597	)

There were no transfers between Level 1 and Level 2 during the six months ended February 28, 2013.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

99

Schedule of Investments (concluded)	BlackRock Income Opportunity Trust, Inc. (BNA)

A reconciliation of Level 3 investments is presented when the Trust had a significant amount of Level 3 investments at the beginning and/or end of the period in relation to net assets. The following table is a reconciliation of Level 3 investments for which significant unobservable inputs were used in determining fair value:

				Asset-Backed Securities				Common Stocks				Corporate Bonds				Non-Agency Mortgage-Backed Securities				US Government Sponsored Agency Securities				Total
Assets:
Opening Balance, as of August 31, 2012				$	1,537,590			$	1			$	1,957,000			$	523,393			$	36,218			$	4,054,202
Transfers into Level 31					—				—				5,271,934				—				2,112				5,274,046
Transfers out of Level 32					(371,621	)			—				—				—				—				(371,621	)
Accrued discounts/premiums					(215,039	)			—				(11,700	)			2,100				(7	)			(224,646	)
Net realized gain (loss)					6				—				4,167				28,366				(1,379	)			31,160
Net change in unrealized appreciation/depreciation3					254,077				421,601				(792,382	)			7,480				2,523				(106,701	)
Purchases					6,603,287				—				—				755,446				—				7,358,733
Sales					(56,342	)			—				(94,224	)			(429,945	)			(38,569	)			(619,080	)
Closing Balance, as of February 28, 2013				$	7,751,958			$	421,602			$	6,334,795			$	886,840			$	898			$	15,396,093

1

As of August 31, 2012, the Trust used observable inputs in determining the value of certain investments. As of February 28, 2013, the Trust used significant unobservable inputs in determining the value of the same investments. As a result, investments with a beginning of period value of $5,274,046 transferred from Level 2 to Level 3 in the disclosure hierarchy.

2

As of August 31, 2012, the Trust used significant unobservable inputs in determining the value of certain investments. As of February 28, 2013, the Trust used observable inputs in determining the value of the same investments. As a result, investments with a beginning of period value of $371,621 transferred from Level 3 to Level 2 in the disclosure hierarchy.

3

Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations. The change in unrealized appreciation/depreciation on investments still held as of February 28, 2013 was $641,226.

Certain of the Trust’s investments that are categorized as Level 3 were valued utilizing transaction prices or third party pricing information without adjustment. Such valuations are based on unobservable inputs. A significant change in third party information inputs could result in a significantly lower or higher value of such Level 3 investments.

See Notes to Financial Statements.

100

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Schedule of Investments February 28, 2013 (Unaudited)	BlackRock Income Trust, Inc. (BKT) (Percentages shown are based on Net Assets)

Asset-Backed Securities								Par (000)				Value
Asset-Backed Securities — 1.3%
First Franklin Mortgage Loan Asset-Backed Certificates, Series 2005-FF2, Class M2, 0.64%, 3/25/35 (a)					USD				4,205			$	4,112,005
Securitized Asset-Backed Receivables LLC Trust, Series 2005-OP2, Class M1, 0.63%, 10/25/35 (a)									1,875				1,583,196
Small Business Administration Participation Certificates, Class 1:
Series 1996-20E, 7.60%, 5/01/16									91				95,755
Series 1996-20G, 7.70%, 7/01/16									101				107,391
Series 1996-20H, 7.25%, 8/01/16									118				124,655
Series 1996-20K, 6.95%, 11/01/16									261				276,143
Series 1997-20C, 7.15%, 3/01/17									100				108,136
													6,407,281
Interest Only Asset-Backed Securities — 0.2%
Small Business Administration, Series 1, 2.00%, 4/01/15									1,324				11,585
Sterling Bank Trust, Series 2004-2, Class Note, 2.08%, 3/30/30 (b)									3,988				307,820
Sterling Coofs Trust, Series 2004-1, 2.36%, 4/15/29 (a)									6,958				508,785
													828,190
Total Asset-Backed Securities — 1.5%													7,235,471
Non-Agency Mortgage-Backed Securities
Collateralized Mortgage Obligations — 1.2%
Collateralized Mortgage Obligation Trust, Series 40, Class R, 580.50%, 4/01/18									—	(c)			73
Deutsche ALT-A Securities, Inc. Alternate Loan Trust, Series 2006-AR5, Class 22A, 5.50%, 10/25/21									689				704,579
Homebanc Mortgage Trust, Series 2005-4, Class A1, 0.47%, 10/25/35 (a)									2,752				2,256,441
Kidder Peabody Acceptance Corp., Series 1993-1, Class A6, 16.25%, 8/25/23 (a)									48				55,641
Residential Funding Securities LLC, Series 2003-RM2, Class AI5, 8.50%, 5/25/33									1,596				1,684,330
Structured Adjustable Rate Mortgage Loan Trust, Series 2004-11, Class A, 2.70%, 8/25/34 (a)									1,353				1,329,958
													6,031,022
Commercial Mortgage-Backed Securities — 0.6%
Credit Suisse Mortgage Capital Certificates, Series 2007-C2, Class A3, 5.54%, 1/15/49 (a)									2,420				2,764,668
Interest Only Collateralized Mortgage Obligations — 0.9%
Bank of America Mortgage Securities, Inc., Series 2003-3, Class 1A, 0.28%, 5/25/33 (a)									44,660				266,263
CitiMortgage Alternative Loan Trust, Series 2007-A5, Class 1A7, 6.00%, 5/25/37									836				208,456
First Boston Mortgage Securities Corp., Series C, 10.97%, 4/25/17									14				1,557
GSMPS Mortgage Loan Trust, Series 1998-5, 0.01%, 6/19/27 (a)(b)									3,816				78,034
IndyMac INDX Mortgage Loan Trust, Series 2006-AR33, Class 4AX, 0.17%, 1/25/37									84,453				323,625
MASTR Adjustable Rate Mortgages Trust, Series 2004-3, Class 3AX, 0.48%, 4/25/34 (a)									10,480				116,267
MASTR Alternative Loans Trust, Series 2003-9, Class 15X2, 6.00%, 1/25/19									372				44,825
Morgan Stanley Mortgage Loan Trust, Series 2004-3, Class 1AX, 5.00%, 5/25/19									327				28,342
Sequoia Mortgage Trust, Series 2005-2, Class XA, 1.05%, 3/20/35 (a)									37,336				600,879

Non-Agency Mortgage-Backed Securities								Par (000)				Value
Interest Only Collateralized Mortgage Obligations (concluded)
Structured Adjustable Rate Mortgage Loan Trust, Series 2006-7, Class 3AS, 5.14%, 8/25/36 (a)					USD				21,858			$	2,564,879
Vendee Mortgage Trust, Series 1999-2, Class 1, 0.03%, 5/15/29 (a)									47,033				80,087
													4,313,214
Interest Only Commercial Mortgage-Backed Securities — 0.0%
CS First Boston Mortgage Securities Corp., Series 1997-C1, Class AX, 1.12%, 6/20/29 (a)(b)									2,308				33,027
Principal Only Collateralized Mortgage Obligations — 0.4%
Countrywide Home Loan Mortgage Pass-Through Trust:
Series 2003-26, 8/25/33									939				842,587
Series 2003-J4, 6/25/33									183				162,162
Series 2003-J5, 7/25/33									311				275,533
Series 2003-J8, 9/25/23									210				192,888
Drexel Burnham Lambert CMO Trust, Class 1:
Series K, 9/23/17									6				6,013
Series V, 9/01/18									9				9,141
MASTR Asset Securitization Trust, Series 2004-3, Class 4A15, 3/25/34									25				22,740
Residential Asset Securitization Trust, Series 2005-A15, Class 1A8, 2/25/36									692				425,373
Structured Mortgage Asset Residential Trust, Series 1993-3C, Class CX, 4/25/24									7				5,831
Washington Mutual Alternative Mortgage Pass-Through Certificates, Series 2005-9, Class CP, 11/25/35									359				237,654
													2,179,922
Total Non-Agency Mortgage-Backed Securities — 3.1%													15,321,853
US Government Sponsored Agency Securities
Agency Obligations — 2.5%
Federal Housing Administration:
General Motors Acceptance Corp. Projects, Series 56, 7.43%, 11/01/22									147				143,611
Merrill Projects, Series 54, 7.43%, 5/15/23									2				1,756
Reilly Projects, Series 41, 8.28%, 3/01/20									181				180,363
USGI Projects, Series 87, 7.43%, 12/01/22									60				59,016
USGI Projects, Series 99, 7.43%, 6/01/21									3,929				3,850,661
USGI Projects, Series 99, 7.43%, 10/01/23									37				36,370
USGI Projects, Series 99, 7.43%, 10/01/23									110				107,456
Resolution Funding Corp., 3.15%, 4/15/30 (d)									13,000				7,606,742
													11,985,975
Collateralized Mortgage Obligations — 42.4%
Fannie Mae Mortgage-Backed Securities:
Series 1991-46, Class S, 2,468.91%, 5/25/21 (a)									—	(c)			5,414
Series 1991-87, Class S, 26.10%, 8/25/21 (a)									38				60,472
Series 1993-247, Class SN, 10.00%, 12/25/23 (a)									285				333,595
Series 2003-135, Class PB, 6.00%, 1/25/34									12,264				14,977,189
Series 2004-31, Class ZG, 7.50%, 5/25/34									3,548				4,416,193
Series 2005-73, Class DS, 17.03%, 8/25/35 (a)									2,165				2,862,439
Series 2011-99, Class CB, 4.50%, 10/25/41									43,000				50,304,238
Series 2011-117, Class CP, 4.00%, 11/25/41									14,350				16,378,824
Series 2011-142, Class PE, 3.50%, 1/25/42									15,567				16,401,570
Series G-7, Class S, 1,119.90%, 3/25/21 (a)									—	(c)			2,956
Series G-17, Class S, 1,058.38%, 6/25/21 (a)									—	(c)			3,751
Series G-33, Class PV, 1,078.42%, 10/25/21									—	(c)			3,595
Series G-49, Class S, 1,012.05%, 12/25/21 (a)									—	(c)			1,494

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

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101

Schedule of Investments (continued)	BlackRock Income Trust, Inc. (BKT) (Percentages shown are based on Net Assets)

Non-Agency Mortgage-Backed Securities								Par (000)				Value
Collateralized Mortgage Obligations (concluded)
Freddie Mac Mortgage-Backed Securities:
Series 19, Class F, 8.50%, 3/15/20					USD				54			$	58,570
Series 19, Class R, 16,196.33%, 3/15/20 (a)									—	(c)			856
Series 40, Class K, 6.50%, 8/17/24									263				302,055
Series 75, Class R, 9.50%, 1/15/21									—	(c)			2
Series 75, Class RS, 29.92%, 1/15/21 (a)									—	(c)			2
Series 173, Class R, 9.00%, 11/15/21									—	(c)			9
Series 173, Class RS, 9.37%, 11/15/21 (a)									—	(c)			10
Series 192, Class U, 1,009.03%, 2/15/22 (a)									—	(c)			45
Series 1057, Class J, 1,008.00%, 3/15/21									—	(c)			1,217
Series 1160, Class F, 39.10%, 10/15/21 (a)									15				30,195
Series 2218, Class Z, 8.50%, 3/15/30									4,228				4,911,080
Series 2542, Class UC, 6.00%, 12/15/22									5,190				5,790,769
Series 2758, Class KV, 5.50%, 5/15/23									8,561				9,492,448
Series 2861, Class AX, 10.50%, 9/15/34 (a)									121				132,470
Series 2927, Class BZ, 5.50%, 2/15/35									3,219				3,918,647
Series 3856, Class PB, 5.00%, 5/15/41									10,000				11,858,570
Series 4016, Class BX, 4.00%, 9/15/41									15,408				17,019,294
Series T-11, Class A9, 2.80%, 1/25/28 (a)									1,788				1,893,257
Ginnie Mae Mortgage-Backed Securities:
Series 1996-5, Class Z, 7.00%, 5/16/26									421				452,039
Series 2001-33, Class PB, 6.50%, 7/20/31									733				848,625
Series 2004-89, Class PE, 6.00%, 10/20/34									3,392				3,528,405
Series 2011-80, Class PB, 4.00%, 10/20/39									11,489				12,855,008
Series 2011-88, Class PY, 4.00%, 6/20/41									15,402				17,046,964
Series 2012-16, Class HJ, 4.00%, 9/20/40									10,000				11,093,520
													206,985,787
Interest Only Collateralized Mortgage Obligations — 4.5%
Fannie Mae Mortgage-Backed Securities:
Series 7, Class 2, 8.50%, 4/01/17									3				393
Series 89, Class 2, 8.00%, 10/01/18									5				551
Series 94, Class 2, 9.50%, 8/01/21									2				393
Series 1990-123, Class M, 1,009.50%, 10/25/20									—	(c)			398
Series 1990-136, Class S, 19.86%, 11/25/20 (a)									10				14,500
Series 1991-99, Class L, 930.00%, 8/25/21									—	(c)			1,619
Series 1991-139, Class PT, 648.35%, 10/25/21									—	(c)			2,797
Series 1993-199, Class SB, 7.28%, 10/25/23 (a)									433				49,445
Series 1996-68, Class SC, 7.88%, 1/25/24 (a)									7				21
Series 1997-50, Class SI, 1.20%, 4/25/23 (a)									256				8,560
Series 1997-90, Class M, 6.00%, 1/25/28									4,020				631,364
Series 1999-W4, 6.50%, 12/25/28									253				51,833
Series 2010-74, Class DI, 5.00%, 12/25/39									27,040				2,377,257
Series 2010-75, Class PI, 4.50%, 12/25/36									3,716				44,035
Series 2010-126, Class UI, 5.50%, 10/25/40									16,464				2,420,506
Series 2012-96, Class DI, 4.00%, 2/25/27									10,936				1,224,742
Series G-10, Class S, 1083.41%, 5/25/21 (a)									—	(c)			11,663
Series G-12, Class S, 1,150.07%, 5/25/21 (a)									—	(c)			7,018
Series G92-5, Class H, 9.00%, 1/25/22									53				6,462
Series G92-12, Class C, 1,016.90%, 2/25/22									—	(c)			3,021
Series G92-60, Class SB, 1.60%, 10/25/22 (a)									175				6,782
Freddie Mac Mortgage-Backed Securities:
Series 176, Class M, 1,010.00%, 7/15/21									—	(c)			498
Series 200, Class R, 196,091.09%, 12/15/22 (a)									—	(c)			1,051
Series 1043, Class H, 43.88%, 2/15/21 (a)									7				14,310
Series 1054, Class I, 859.64%, 3/15/21 (a)									—	(c)			1,116
Series 1056, Class KD, 1,084.50%, 3/15/21									—	(c)			1,058
Series 1148, Class E, 1,167.37%, 10/15/21 (a)									—	(c)			2,822
Series 2559, 0.50%, 8/15/30 (a)									133				1,722
Series 2611, Class QI, 5.50%, 9/15/32									2,416				271,769
Series 2949, 5.50%, 3/15/35									269				4,803
Non-Agency Mortgage-Backed Securities								Par (000)				Value
Interest Only Collateralized Mortgage Obligations (concluded)
Freddie Mac Mortgage-Backed Securities (concluded):
Series 3744, Class PI, 4.00%, 6/15/39					USD				18,133			$	2,501,387
Series 3745, Class IN, 4.00%, 1/15/35									38,842				3,170,222
Series 4026, 4.50%, 4/15/32									6,358				885,591
Ginnie Mae Mortgage-Backed Securities:
Series 2010-101, Class YT, 2.00%, 8/16/13									42,595				334,621
Series 2011-52, Class MJ, 6.45%, 4/20/41 (a)									22,881				3,909,569
Series 2011-52, Class NS, 6.47%, 4/16/41 (a)									24,720				4,112,050
													22,075,949
Mortgage-Backed Securities — 113.1%
Fannie Mae Mortgage-Backed Securities:
3.00%, 3/15/43–5/15/43 (e)									1,900				1,964,407
3.50%, 10/01/42–4/15/43 (e)(f)									45,578				48,244,946
4.00%, 1/01/41–9/01/42 (f)									43,432				46,350,604
4.50%, 8/01/25–4/15/43 (e)(f)(g)									142,529				156,622,967
5.00%, 1/01/23–3/15/43 (e)(f)									120,276				131,714,822
5.50%, 3/15/28–10/01/39 (e)(f)(g)									57,478				63,311,689
5.97%, 8/01/16									2,996				3,387,919
6.00%, 3/15/43–4/15/43 (e)									65,400				71,670,903
6.50%, 12/01/37–10/01/39									24,712				27,630,786
7.50%, 2/01/22									—	(c)			101
9.50%, 1/01/19–9/01/19									2				2,415
Freddie Mac Mortgage-Backed Securities:
2.48%, 1/01/35 (a)									193				195,785
2.55%, 10/01/34 (a)									291				298,786
2.73%, 11/01/17 (a)									12				12,227
5.00%, 2/01/22–4/01/22									583				625,565
9.00%, 9/01/20									33				37,305
Ginnie Mae Mortgage-Backed Securities:
7.50%, 8/15/21–12/15/23									162				172,731
8.00%, 10/15/22–8/15/27									63				69,956
9.00%, 4/15/20–9/15/21									7				7,059
													552,320,973
Principal Only Collateralized Mortgage Obligations — 0.3%
Fannie Mae Mortgage-Backed Securities:
Series 203, Class 1, 2/01/23									15				12,947
Series 228, Class 1, 6/01/23									12				10,648
Series 1991-7, Class J, 2/25/21									14				12,002
Series 1993-51, Class E, 2/25/23									49				42,126
Series 1993-70, Class A, 5/25/23									7				6,926
Series 1999-W4, Class PO, 2/25/29									132				121,721
Series 2002-13B, Class PR, 3/25/32									276				261,559
Series G93-2, Class KB, 1/25/23									132				112,617
Freddie Mac Mortgage-Backed Securities:
Series 1418, Class M, 11/15/22									53				45,490
Series 1571, Class G, 8/15/23									336				312,226
Series 1691, Class B, 3/15/24									649				603,020
Series 1739, Class B, 2/15/24									—	(c)			1
Series T-8, Class A10, 11/15/28									102				95,533
													1,636,816
Total US Government Sponsored Agency Securities — 162.8%													795,005,500
US Treasury Obligations
US Treasury Notes:
0.63%, 9/30/17 (f)									7,945				7,925,137
1.00%, 11/30/19 (f)									2,965				2,928,169
1.63%, 11/15/22									780				763,791
2.00%, 2/15/23 (f)									1,635				1,651,605
Total US Treasury Obligations — 2.7%													13,268,702
Total Long-Term Investments (Cost — $819,292,461) — 170.1%													830,831,526

See Notes to Financial Statements.

102

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Schedule of Investments (continued)	BlackRock Income Trust, Inc. (BKT) (Percentages shown are based on Net Assets)

Short-Term Securities

Par (000)

Value

Borrowed Bond Agreements — 0.2%

Credit Suisse Group AG, 0.04%, Open (Purchased on 2/4/13 to be repurchased at $847,102, collateralized by US Treasury Notes, 2.75%, par and fair value of USD 917,000 and $853,526, respectively)

USD

847

$

847,078

Shares

Money Market Funds — 0.2%

BlackRock Liquidity Funds, TempFund, Institutional Class, 0.10% (h)(i)

790,665

790,665

Total Short-Term Securities (Cost — $1,637,743) — 0.4%

1,637,743

Total Investments Before Borrowed Bonds and TBA Sale Commitments (Cost — $820,930,204) — 170.5%

832,469,269

Borrowed Bonds								Par (000)				Value
US Treasury Bonds, 2.75%, 11/15/42					USD				917			$	(853,526	)
Total Borrowed Bonds (Proceeds — $842,347) — (0.2)%													(853,526	)
TBA Sale Commitments (e)
Fannie Mae Mortgage-Backed Securities,
3.00%, 3/15/43–04/15/43									1,000				(1,034,781	)
3.50%, 3/15/43									6,000				(6,344,063	)
4.50%, 3/15/28–03/15/43									15,900				(17,104,351	)
5.00%, 3/15/28–04/15/43									33,800				(36,590,827	)
6.00%, 3/15/43									43,600				(47,776,060	)
Total TBA Sale Commitments (Proceeds — $108,711,141) — (22.3)%													(108,850,082	)
Total Investments, Net of Borrowed Bonds and TBA Sale Commitments — 148.0%													722,765,661
Liabilities in Excess of Other Assets — (48.0)%													(234,496,111	)
Net Assets — 100.0%												$	488,269,550

Notes to Schedule of Investments

(a)				Variable rate security. Rate shown is as of report date.
(b)				Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(c)				Amount is less than $500.
(d)				Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(e)				Represents or includes a TBA transaction. Unsettled TBA transactions as of February 28, 2013 were as follows:

Counterparty				Value				Unrealized Appreciation (Depreciation)
Bank of America Corp.				$	4,024,938			$	13,422
Credit Suisse Group AG				$	(563	)		$	16
Deutsche Bank AG				$	11,078,493			$	74,567
Goldman Sachs Group, Inc.				$	413,578			$	1,508
JPMorgan Chase & Co.				$	10,994,097			$	(29,661	)
Morgan Stanley				$	(442,125	)		$	4,016

(f)				All or a portion of security has been pledged as collateral in connection with open reverse repurchase agreements.
(g)				All or a portion of security has been pledged as collateral in connection with swaps.
(h)				Investments in issuers considered to be an affiliate of the Trust during the six months ended February 28, 2013, for purposes of Section 2(a)(3) of 1940 Act, were as follows:

Affiliate		Shares Held at August 31, 2012		Net Activity		Shares Held at February 28, 2013		Income		Realized Gain
BlackRock Liquidity Funds, TempFund, Institutional Class		2,187,808		(1,397,143)		790,665		$ 2,947		$ 94

(i)

Represents the current yield as of report date.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

103

Schedule of Investments (continued)	BlackRock Income Trust, Inc. (BKT)

•

Reverse repurchase agreements outstanding as of February 28, 2013 were as follows:

Counterparty				Interest Rate				Trade Date				Maturity Date				Face Value				Face Value Including Accrued Interest
Credit Suisse Securities (USA) LLC				0.23%				10/23/12				Open				$	10,815,215			$	10,824,128
Deutsche Bank Securities, Inc.				0.26%				11/14/12				Open					7,954,931				7,961,079
Credit Suisse Securities (USA) LLC				0.15%				1/28/13				Open					19,590,818				19,593,430
Credit Suisse Securities (USA) LLC				0.15%				1/28/13				Open					22,922,685				22,925,742
BNP Paribas Securities Corp.				0.00%				2/08/13				Open					2,916,819				2,916,819
Barclays Capital, Inc.				0.30%				2/12/13				3/12/13					131,064,664				131,082,324
Credit Suisse Securities (USA) LLC				0.11%				2/28/13				3/01/13					1,653,394				1,653,399
Deutsche Bank Securities, Inc.				0.19%				2/28/13				3/01/13					10,872,531				10,872,589
Total																$	207,791,057			$	207,829,510

•

Financial futures contracts as of February 28, 2013 were as follows:

Contracts Purchased     (Sold)		Issue		Exchange		Expiration		Notional Value			Unrealized Appreciation (Depreciation)
24		90-Day Euro-Dollar		Chicago Mercantile		March 2013		USD	5,982,300		$	9,317
63		90-Day Euro-Dollar		Chicago Mercantile		June 2013		USD	15,701,175			40,012
57		90-Day Euro-Dollar		Chicago Mercantile		September 2013		USD	14,202,975			35,996
18		90-Day Euro-Dollar		Chicago Mercantile		December 2013		USD	4,484,025			8,268
(97)		2-Year US Treasury Note		Chicago Board of Trade		June 2013		USD	21,385,469			(11,333)
(303)		5-Year US Treasury Note		Chicago Board of Trade		June 2013		USD	37,567,266			(96,148)
(204)		10-Year US Treasury Note		Chicago Board of Trade		June 2013		USD	26,835,562			10,247
(636)		30-Year US Treasury Bond		Chicago Board of Trade		June 2013		USD	91,444,875			(854,492)
(7)		90-Day Euro-Dollar		Chicago Mercantile		March 2014		USD	1,743,350			(2,992)
(25)		90-Day Euro-Dollar		Chicago Mercantile		June 2014		USD	6,223,750			(18,491)
(25)		90-Day Euro-Dollar		Chicago Mercantile		September 2014		USD	6,220,625			(20,697)
(25)		90-Day Euro-Dollar		Chicago Mercantile		December 2014		USD	6,216,250			(22,152)
(25)		90-Day Euro-Dollar		Chicago Mercantile		March 2015		USD	6,211,562			(20,578)
(152)		Ultra Long US Treasury Bond		Chicago Board of Trade		June 2013		USD	24,016,000			(271,851)
Total											$	(1,214,894)

•

Interest rate swaps outstanding as of February 28, 2013 were as follows:

Fixed Rate		Floating Rate		Counterparty		Expiration Date		Notional Amount (000)			Unrealized Appreciation (Depreciation)
4.88%1		3-month LIBOR		UBS AG		3/21/15		USD	25,000		$	2,293,403
4.87%1		3-month LIBOR		Goldman Sachs Group, Inc.		1/25/16		USD	5,500			693,985
2.81%1		3-month LIBOR		Citigroup, Inc.		2/06/16		USD	20,000			1,348,662
5.72%1		3-month LIBOR		JPMorgan Chase & Co.		7/14/16		USD	5,400			930,570
4.31%2		3-month LIBOR		Deutsche Bank AG		10/01/18		USD	60,000			(10,587,370	)
3.43%1		3-month LIBOR		JPMorgan Chase & Co.		3/28/21		USD	6,000			1,050,648
5.41%1		3-month LIBOR		JPMorgan Chase & Co.		8/15/22		USD	9,565			2,993,286
Total											$	(1,276,816	)

1

Trust pays the floating rate and receives the fixed rate.

2

Trust pays the fixed interest rate and receives the floating rate.

•

Fair Value Measurements—Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:

•				Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the Trust has the ability to access
•				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 Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)

				The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
				Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust’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.

See Notes to Financial Statements.

104

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

Schedule of Investments (concluded)	BlackRock Income Trust, Inc. (BKT)

The following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy as of February 28, 2013:

				Level 1				Level 2				Level 3				Total
Assets:
Investments:
Long-Term Investments:
Asset-Backed Securities					—			$	6,407,281			$	828,190			$	7,235,471
Non-Agency Mortgage-Backed Securities					—				12,039,755				3,282,098				15,321,853
US Government Sponsored Agency Securities					—				790,624,337				4,381,163				795,005,500
US Treasury Obligations					—				13,268,702				—				13,268,702
Short-Term Securities:
Borrowed Bond Agreements					—				847,078				—				847,078
Money Market Funds				$	790,665				—				—				790,665
Liabilities:
Investments:
Borrowed Bonds					—				(853,526	)			—				(853,526	)
TBA Sale Commitments					—				(108,850,082	)			—				(108,850,082	)
Total				$	790,665			$	713,483,545			$	8,491,451			$	722,765,661

				Level 1				Level 2				Level 3				Total
Derivative Financial Instruments1
Assets:
Interest rate contracts				$	103,840			$	9,310,554				—			$	9,414,394
Liabilities:
Interest rate contracts					(1,318,734	)			(10,587,370	)			—				(11,906,104	)
Total				$	(1,214,894	)		$	(1,276,816	)			—			$	(2,491,710	)

1

Derivative financial instruments are swaps and financial futures contracts. Swaps and financial futures contracts are valued at the unrealized appreciation/depreciation on the instrument.

Certain of the Trust’s assets and liabilities are held at carrying amount or face value, which approximates fair value for financial statement purposes. As of February 28, 2013, such assets and liabilities are categorized within the disclosure hierarchy as follows:

				Level 1				Level 2				Level 3				Total
Assets:
Cash pledged as collateral for financial futures contracts				$	3,087,000				—				—			$	3,087,000
Cash pledged as collateral for swaps					4,700,000				—				—				4,700,000
Liabilities:
Cash received as collateral for reverse repurchase agreements					—			$	(420,000	)			—				(420,000	)
Cash received as collateral for swaps					—				(6,700,000	)			—				(6,700,000	)
Reverse repurchase agreements					—				(207,791,057	)			—				(207,791,057	)
Total				$	7,787,000			$	(214,911,057	)			—			$	(207,124,057	)

There were no transfers between Level 1 and Level 2 during the six months ended February 28, 2013.

Certain of the Trust’s investments are categorized as Level 3 and were valued utilizing third party pricing information without adjustment. Such valuations are based on unobservable inputs. A significant change in the unobservable inputs could result in a significantly lower or higher value in such Level 3 investments.

A reconciliation of Level 3 investments is presented when the Trust had a significant amount of Level 3 investments at the beginning and/or end of the period in relation to net assets. The following table is a reconciliation of Level 3 investments for which significant unobservable inputs were used in determining fair value:

				Asset-Backed Securities				Non-Agency Mortgage-Backed Securities				US Government Sponsored Agency Securities				Total
Assets:
Opening Balance, as of August 31, 2012				$	917,196			$	4,067,898			$	4,622,964			$	9,608,058
Transfers into Level 32					—				—				4,733				4,733
Transfers out of Level 33					—				(452,944	)			—				(452,944	)
Accrued discounts/premiums					(259,242	)			—				(6,679	)			(265,921	)
Net realized gain (loss)					—				—				(8,793	)			(8,793	)
Net change in unrealized appreciation/depreciation4					170,236				(332,856	)			21,024				(141,596	)
Sales					—				—				(252,086	)			(252,086	)
Closing Balance, as of February 28, 2013				$	828,190			$	3,282,098			$	4,381,163			$	8,491,451

2

As of August 31, 2012, the Trust used observable inputs in determining the value of certain investments. As of February 28, 2013, the Trust used significant unobservable inputs in determining the value of the same investments. As a result, investments with a beginning of period value of $4,733 transferred from Level 2 to Level 3 in the disclosure hierarchy.

3

As of August 31, 2012, the Trust used significant unobservable inputs in determining the value of certain investments. As of February 28, 2013, the Trust used observable inputs in determining the value of the same investments. As a result, investments with a beginning of period value of $452,944 transferred from Level 3 to Level 2 in the disclosure hierarchy.

4

Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations. The change in unrealized appreciation/depreciation on investments still held as of February 28, 2013 was $(141,596).

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

105

Schedule of Investments February 28, 2013 (Unaudited)	BlackRock Strategic Bond Trust (BHD) (Percentages shown are based on Net Assets)

Common Stocks (a)								Shares				Value
Diversified Telecommunication Services — 0.0%
Broadview Networks Holdings, Inc.									5,037			$	33,697
Media — 0.0%
Adelphia Recovery Trust									396,568				793
Paper & Forest Products — 0.3%
NewPage Corp.									3,380				287,300
Software — 0.0%
Bankruptcy Management Solutions, Inc.									84				1
Total Common Stocks — 0.3%													321,791
Corporate Bonds									Par   (000)
Aerospace & Defense — 0.3%
Bombardier, Inc., 4.25%, 1/15/16 (b)					USD				85				88,187
Huntington Ingalls Industries, Inc., 7.13%, 3/15/21									60				65,400
Meccanica Holdings USA, Inc., 6.25%, 7/15/19 (b)									200				205,516
													359,103
Airlines — 0.5%
Continental Airlines Pass-Through Trust, Series 2012-3, Class C, 6.13%, 4/29/18									125				124,687
Delta Air Lines Pass-Through Trust:
Series 2002-1, Class G-1, 6.72%, 7/02/24									137				151,542
Series 2009-1, Class B, 9.75%, 2/17/16									36				39,924
US Airways Pass-Through Trust, Series 2011-1, Class C, 10.88%, 10/22/14									205				216,423
													532,576
Auto Components — 1.3%
Continental Rubber of America Corp., 4.50%, 9/15/19 (b)									150				153,000
Dana Holding Corp., 6.75%, 2/15/21									180				195,975
Icahn Enterprises LP, 8.00%, 1/15/18									670				717,738
Jaguar Land Rover Automotive Plc (FKA Jaguar Land Rover Plc), 8.25%, 3/15/20					GBP				177				301,062
													1,367,775
Beverages — 0.2%
Crown European Holdings SA:
7.13%, 8/15/18 (b)					EUR				89				125,780
7.13%, 8/15/18									50				70,663
													196,443
Building Products — 0.5%
Building Materials Corp. of America (b):
7.00%, 2/15/20					USD				210				227,325
6.75%, 5/01/21									230				246,963
Momentive Performance Materials, Inc., 8.88%, 10/15/20									65				66,706
													540,994
Capital Markets — 2.1%
E*Trade Financial Corp., Series A, 0.00%, 8/31/19 (b)(c)(d)									100				104,563
The Goldman Sachs Group, Inc.:
5.38%, 3/15/20									225				258,662
6.00%, 6/15/20									250				298,191
5.75%, 1/24/22									525				615,925
KKR Group Finance Co. LLC, 6.38%, 9/29/20 (b)									120				141,117
Merrill Lynch & Co., Inc., 6.05%, 5/16/16									325				362,582
Morgan Stanley, 5.63%, 9/23/19									320				370,186
													2,151,226
Chemicals — 2.9%
Axiall Corp., 4.88%, 5/15/23 (b)									63				63,945
Celanese US Holdings LLC, 5.88%, 6/15/21									507				553,897
Ciech Group Financing AB, 9.50%, 11/30/19					EUR				100				142,305
Eagle Spinco, Inc., 4.63%, 2/15/21 (b)					USD				133				135,161

Corporate Bonds								Par (000)				Value
Chemicals (concluded)
Huntsman International LLC:
4.88%, 11/15/20 (b)					USD				180			$	178,200
8.63%, 3/15/21									65				73,450
INEOS Finance Plc, 7.50%, 5/01/20 (b)									85				91,588
Kraton Polymers LLC, 6.75%, 3/01/19									45				46,800
LyondellBasell Industries NV, 5.75%, 4/15/24									664				771,900
Nexeo Solutions LLC, 8.38%, 3/01/18									30				29,325
Nufarm Australia Ltd., 6.38%, 10/15/19 (b)									60				63,600
Orion Engineered Carbons Bondco GmbH (FKA Kinove German Bondco GmbH), 10.00%, 6/15/18					EUR				98				142,163
PolyOne Corp., 7.38%, 9/15/20					USD				80				88,600
Rockwood Specialties Group, Inc., 4.63%, 10/15/20									350				362,250
Tronox Finance LLC, 6.38%, 8/15/20 (b)									251				249,431
													2,992,615
Commercial Banks — 1.6%
Amsouth Bank, Series AI, 4.85%, 4/01/13									650				652,275
Barclays Bank Plc, 5.14%, 10/14/20									100				106,077
CIT Group, Inc.:
5.25%, 3/15/18									110				118,250
6.63%, 4/01/18 (b)									110				124,850
5.50%, 2/15/19 (b)									120				130,500
5.00%, 8/15/22									90				96,300
HSBC Bank Plc, 7.65%, 5/01/25									350				474,519
													1,702,771
Commercial Services & Supplies — 1.5%
ADS Waste Holdings, Inc., 8.25%, 10/01/20 (b)									61				65,575
The ADT Corp. (b):
3.50%, 7/15/22									75				73,366
4.88%, 7/15/42									200				190,459
AWAS Aviation Capital Ltd., 7.00%, 10/17/16 (b)									183				191,738
Brickman Group Holdings, Inc., 9.13%, 11/01/18 (b)									11				11,825
Clean Harbors, Inc., 5.25%, 8/01/20									96				98,880
Covanta Holding Corp., 6.38%, 10/01/22									85				92,169
EC Finance Plc, 9.75%, 8/01/17					EUR				50				70,989
HDTFS, Inc. (b):
5.88%, 10/15/20					USD				55				57,200
6.25%, 10/15/22									95				102,125
Mobile Mini, Inc., 7.88%, 12/01/20									135				150,188
RSC Equipment Rental, Inc., 8.25%, 2/01/21									165				187,069
Verisure Holding AB:
8.75%, 9/01/18					EUR				100				140,999
8.75%, 12/01/18									100				133,166
West Corp., 8.63%, 10/01/18					USD				50				53,250
													1,618,998
Communications Equipment — 1.0%
Brocade Communications Systems, Inc., 6.88%, 1/15/20									175				191,187
Zayo Group LLC/Zayo Capital, Inc.:
8.13%, 1/01/20									578				645,915
10.13%, 7/01/20									186				218,085
													1,055,187
Construction & Engineering — 0.1%
Boart Longyear Management Property Ltd., 7.00%, 4/01/21									75				77,813
Construction Materials — 2.0%
Buzzi Unicem SpA, 6.25%, 9/28/18					EUR				100				140,438
HD Supply, Inc. (b):
8.13%, 4/15/19					USD				937				1,055,296
11.00%, 4/15/20									230				277,150
7.50%, 7/15/20									379				379,474
11.50%, 7/15/20									65				74,913

See Notes to Financial Statements.

106

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

Schedule of Investments (continued)	BlackRock Strategic Bond Trust (BHD) (Percentages shown are based on Net Assets)

Corporate Bonds								Par (000)				Value
Construction Materials (concluded)
HeidelbergCement AG, 7.50%, 4/03/20					EUR				21			$	33,037
Xefin Lux SCA, 8.00%, 6/01/18 (b)									100				140,183
													2,100,491
Consumer Finance — 1.4%
Credit Acceptance Corp., 9.13%, 2/01/17					USD				185				201,650
Ford Motor Credit Co. LLC, 2.75%, 5/15/15									500				510,842
SLM Corp., 5.38%, 5/15/14									675				704,564
Toll Brothers Finance Corp., 5.88%, 2/15/22									85				94,840
													1,511,896
Containers & Packaging — 1.3%
Ardagh Packaging Finance Plc, 7.38%, 10/15/17 (b)					EUR				260				368,296
Berry Plastics Corp., 8.25%, 11/15/15					USD				45				46,899
Beverage Packaging Holdings Luxembourg II SA, 8.00%, 12/15/16					EUR				54				70,690
Crown Americas LLC/Crown Americas Capital Corp. III, 6.25%, 2/01/21					USD				15				16,350
Crown Americas LLC/Crown Americas Capital Corp. IV, 4.50%, 1/15/23 (b)									169				165,197
GCL Holdings SCA, 9.38%, 4/15/18 (b)					EUR				100				141,678
Graphic Packaging International, Inc., 7.88%, 10/01/18					USD				135				148,500
Sealed Air Corp. (b):
6.50%, 12/01/20									120				130,500
8.38%, 9/15/21									60				68,400
Smurfit Kappa Acquisitions, 4.88%, 9/15/18 (b)									200				205,000
													1,361,510
Diversified Consumer Services — 0.4%
313 Group, Inc., 6.38%, 12/01/19 (b)									157				153,075
Service Corp. International, 4.50%, 11/15/20									307				305,849
													458,924
Corporate Bonds								Par (000)				Value
Diversified Financial Services — 6.8%
Aircastle Ltd., 6.25%, 12/01/19									174				187,485
Ally Financial, Inc.:
8.30%, 2/12/15									400				445,000
6.25%, 12/01/17									30				33,503
8.00%, 3/15/20									60				73,650
7.50%, 9/15/20									550				665,500
8.00%, 11/01/31									1,106				1,389,412
Bank of America Corp.:
4.50%, 4/01/15									375				398,833
6.50%, 8/01/16									410				473,104
5.63%, 10/14/16									100				112,974
5.75%, 12/01/17									240				277,759
Citigroup, Inc., 8.13%, 7/15/39									55				81,655
Co-Operative Group Ltd., 5.63%, 7/08/20 (e)					GBP				100				158,987
DPL, Inc.:
6.50%, 10/15/16					USD				115				120,750
7.25%, 10/15/21									310				332,475
Gala Group Finance Plc, 8.88%, 9/01/18					GBP				100				163,841
Itau Unibanco Holding SA, 5.75%, 1/22/21 (b)					USD				225				237,713
JPMorgan Chase & Co.:
5.50%, 10/15/40									175				208,169
5.60%, 7/15/41									175				211,152
Macquarie Bank Ltd., 5.00%, 2/22/17 (b)									200				219,930
Reynolds Group Issuer, Inc.:
7.88%, 8/15/19									180				198,900
9.88%, 8/15/19									200				219,000
5.75%, 10/15/20									510				526,575
6.88%, 2/15/21									125				133,438
WMG Acquisition Corp., 11.50%, 10/01/18									151				175,349
													7,045,154
Corporate Bonds								Par (000)				Value
Diversified Telecommunication Services — 2.8%
Broadview Networks Holdings, Inc., 10.50%, 11/15/17					USD				78			$	75,756
Level 3 Communications, Inc., 8.88%, 6/01/19 (b)									150				162,000
Level 3 Financing, Inc.:
8.13%, 7/01/19									1,310				1,427,900
8.63%, 7/15/20									188				208,680
Qwest Corp., 7.25%, 10/15/35									200				206,010
Telefonica Emisiones SAU, 5.46%, 2/16/21									250				263,556
Telenet Finance V Luxembourg SCA:
6.25%, 8/15/22					EUR				200				267,638
6.75%, 8/15/24									100				136,430
Windstream Corp.:
8.13%, 8/01/13					USD				45				46,179
7.88%, 11/01/17									142				160,815
													2,954,964
Electric Utilities — 3.0%
Exelon Generation Co. LLC, 4.25%, 6/15/22									472				496,833
Nisource Finance Corp., 3.85%, 2/15/23									400				410,503
Oncor Electric Delivery Co. LLC, 4.10%, 6/01/22									325				352,610
Progress Energy, Inc., 7.75%, 3/01/31									1,000				1,381,393
The Tokyo Electric Power Co., Inc., 4.50%, 3/24/14					EUR				400				533,343
													3,174,682
Electrical Equipment — 0.2%
GrafTech International Ltd., 6.38%, 11/15/20 (b)					USD				150				159,375
Electronic Equipment, Instruments & Components — 0.1%
Jabil Circuit, Inc., 8.25%, 3/15/18									45				54,113
Energy Equipment & Services — 4.5%
Calfrac Holdings LP, 7.50%, 12/01/20 (b)									145				145,725
Compagnie Générale de Géophysique, Veritas:
7.75%, 5/15/17									55				56,719
6.50%, 6/01/21									200				208,000
Energy Transfer Partners LP, 5.20%, 2/01/22									600				674,273
Ensco Plc, 4.70%, 3/15/21									425				475,623
FTS International Services LLC/FTS International Bonds, Inc., 8.13%, 11/15/18 (b)									465				481,275
Genesis Energy LP/Genesi Energy Finance Corp., 5.75%, 2/15/21 (b)									60				62,100
MEG Energy Corp. (b):
6.50%, 3/15/21									340				358,700
6.38%, 1/30/23									35				36,225
Oil States International, Inc., 6.50%, 6/01/19									115				123,050
Peabody Energy Corp.:
6.00%, 11/15/18									108				114,750
6.25%, 11/15/21									547				568,880
Precision Drilling Corp., 6.50%, 12/15/21									105				111,300
Seadrill Ltd., 5.63%, 9/15/17 (b)									535				541,687
Tervita Corp., 8.00%, 11/15/18 (b)									132				135,960
Transocean, Inc., 6.50%, 11/15/20									550				641,127
													4,735,394
Food & Staples Retailing — 0.2%
Bakkavor Finance 2 Plc, 8.25%, 2/15/18					GBP				104				160,140
Food Products — 1.3%
Darling International, Inc., 8.50%, 12/15/18					USD				90				102,375
Mondelez International, Inc.:
6.50%, 8/11/17									600				726,135
6.13%, 8/23/18									250				304,712
Post Holdings, Inc., 7.38%, 2/15/22									185				199,800
													1,333,022
Gas Utilities — 0.2%
El Paso Natural Gas Co. LLC, 8.63%, 1/15/22									145				198,023
Health Care Equipment & Supplies — 1.7%
Biomet, Inc. (b):
6.50%, 8/01/20									390				412,425
6.50%, 10/01/20									630				648,900
DJO Finance LLC, 7.75%, 4/15/18									40				39,800

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

107

Schedule of Investments (continued)	BlackRock Strategic Bond Trust (BHD) (Percentages shown are based on Net Assets)

Corporate Bonds								Par (000)				Value
Health Care Equipment & Supplies (concluded)
Fresenius Medical Care US Finance II, Inc., 5.63%, 7/31/19 (b)					USD				38			$	41,135
Fresenius US Finance II, Inc., 9.00%, 7/15/15 (b)									410				470,475
Teleflex, Inc., 6.88%, 6/01/19									105				114,187
													1,726,922
Health Care Providers & Services — 6.4%
Aviv Healthcare Properties LP, 7.75%, 2/15/19									150				160,875
Care UK Health & Social Care Plc, 9.75%, 8/01/17					GBP				65				99,348
CHS/Community Health Systems, Inc., 5.13%, 8/15/18					USD				100				105,125
ConvaTec Healthcare E SA, 7.38%, 12/15/17 (b)					EUR				200				276,776
Crown Newco 3 Plc, 7.00%, 2/15/18 (b)					GBP				200				313,271
HCA, Inc.:
8.50%, 4/15/19					USD				40				44,300
6.50%, 2/15/20									685				767,200
7.88%, 2/15/20									115				127,506
7.25%, 9/15/20									805				893,550
5.88%, 3/15/22									148				159,470
4.75%, 5/01/23									470				468,825
Hologic, Inc., 6.25%, 8/01/20 (b)									240				253,200
IASIS Healthcare LLC, 8.38%, 5/15/19									148				152,440
INC Research LLC, 11.50%, 7/15/19 (b)									124				132,370
inVentiv Health, Inc. (b):
9.00%, 1/15/18									80				83,400
11.00%, 8/15/18									10				8,675
Omnicare, Inc., 7.75%, 6/01/20									260				288,600
Symbion, Inc., 8.00%, 6/15/16									125				130,625
Tenet Healthcare Corp.:
6.25%, 11/01/18									627				694,402
8.88%, 7/01/19									195				220,350
4.50%, 4/01/21 (b)									150				147,938
WellPoint, Inc., 5.95%, 12/15/34									1,000				1,180,103
													6,708,349
Health Care Technology — 0.8%
IMS Health, Inc., 12.50%, 3/01/18 (b)									660				795,300
Hotels, Restaurants & Leisure — 1.3%
Caesars Entertainment Operating Co., Inc.:
10.00%, 12/15/18									288				190,080
9.00%, 2/15/20 (b)									94				92,825
Caesars Operating Escrow LLC, 9.00%, 2/15/20 (b)									98				96,775
Cirsa Funding Luxembourg SA, 8.75%, 5/15/18					EUR				51				65,251
Diamond Resorts Corp., 12.00%, 8/15/18					USD				310				341,000
El Dorado Resorts LLC, 8.63%, 6/15/19 (b)									50				49,687
Gategroup Finance Luxembourg SA, 6.75%, 3/01/19					EUR				100				134,472
Six Flags Entertainment Corp., 5.25%, 1/15/21 (b)					USD				212				207,760
Tropicana Entertainment LLC, 9.63%, 12/15/14 (a)(f)									50				—
The Unique Pub Finance Co. Plc, Series A3, 6.54%, 3/30/21					GBP				100				151,326
													1,329,176
Household Durables — 1.4%
Beazer Homes USA, Inc., 6.63%, 4/15/18					USD				145				154,969
The Ryland Group, Inc., 6.63%, 5/01/20									130				143,000
Spie BondCo 3 SCA, 11.00%, 8/15/19					EUR				109				158,670
Standard Pacific Corp.:
10.75%, 9/15/16					USD				565				703,425
8.38%, 1/15/21									200				237,500
United Rentals North America, Inc., 5.75%, 7/15/18									50				53,812
													1,451,376
Household Products — 0.4%
Ontex IV SA:
7.50%, 4/15/18 (b)					EUR				100				135,777
Series FEB, 7.50%, 4/15/18									100				135,777
Corporate Bonds								Par (000)				Value
Household Products (concluded)
Spectrum Brands Escrow Corp. (b):
6.38%, 11/15/20					USD				50			$	53,188
6.63%, 11/15/22									70				75,425
													400,167
Independent Power Producers & Energy Traders — 2.1%
The AES Corp., 7.38%, 7/01/21									95				107,350
Calpine Corp. (b):
7.25%, 10/15/17									72				76,590
7.50%, 2/15/21									72				78,300
7.88%, 1/15/23									63				69,773
Energy Future Intermediate Holding Co. LLC:
10.00%, 12/01/20									450				510,750
10.00%, 12/01/20 (b)									765				862,537
GenOn REMA LLC, Series C, 9.68%, 7/02/26									105				114,450
Laredo Petroleum, Inc.:
9.50%, 2/15/19									115				129,950
7.38%, 5/01/22									50				54,250
NRG Energy, Inc., 6.63%, 3/15/23 (b)									105				111,825
QEP Resources, Inc., 5.38%, 10/01/22									75				78,562
													2,194,337
Insurance — 3.2%
A-S Co-Issuer Subsidiary, Inc./A-S Merger Sub LLC, 7.88%, 12/15/20									147				147,735
American International Group, Inc., 6.40%, 12/15/20									1,130				1,405,518
Lincoln National Corp., 8.75%, 7/01/19									575				777,821
MetLife Global Funding I, 5.13%, 6/10/14 (b)									250				264,423
MPL 2 Acquisition Canco, Inc., 9.88%, 8/15/18 (b)									90				89,100
Prudential Financial, Inc., 5.38%, 6/21/20									400				471,617
TMF Group Holding B.V., 9.88%, 12/01/19					EUR				100				131,861
													3,288,075
Internet Software & Services — 0.0%
Equinix, Inc., 4.88%, 4/01/20					USD				22				22,000
IT Services — 2.3%
Ceridian Corp., 8.88%, 7/15/19 (b)									370				417,175
First Data Corp.:
7.38%, 6/15/19 (b)									481				505,651
8.88%, 8/15/20 (b)									195				215,475
6.75%, 11/01/20 (b)									275				282,219
8.25%, 1/15/21 (b)									61				62,373
12.63%, 1/15/21									425				453,156
SunGard Data Systems, Inc.:
7.38%, 11/15/18									280				300,650
6.63%, 11/01/19 (b)									205				210,637
													2,447,336
Machinery — 0.8%
SPX Corp., 6.88%, 9/01/17									65				72,637
UR Merger Sub Corp.:
7.38%, 5/15/20									125				136,875
7.63%, 4/15/22									550				609,125
													818,637
Media — 11.5%
Affinion Group, Inc., 7.88%, 12/15/18									141				107,160
AMC Networks, Inc.:
7.75%, 7/15/21									80				90,800
4.75%, 12/15/22									86				85,677
CCO Holdings LLC:
6.50%, 4/30/21									320				340,800
5.25%, 9/30/22									293				288,239
Checkout Holding Corp., 11.49%, 11/15/15 (b)(c)									157				115,984
Cinemark USA, Inc.:
8.63%, 6/15/19									60				66,525
5.13%, 12/15/22 (b)									44				44,220

See Notes to Financial Statements.

108

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

Schedule of Investments (continued)	BlackRock Strategic Bond Trust (BHD) (Percentages shown are based on Net Assets)

Corporate Bonds								Par (000)				Value
Media (concluded)
Clear Channel Communications, Inc.:
9.00%, 12/15/19 (b)(g)					USD				130			$	120,900
9.00%, 3/01/21									276				249,780
Clear Channel Worldwide Holdings, Inc. (b):
6.50%, 11/15/22									167				174,515
6.50%, 11/15/22									452				475,730
DIRECTV Holdings LLC:
3.80%, 3/15/22									250				250,985
6.00%, 8/15/40									175				182,532
DISH DBS Corp.:
7.00%, 10/01/13									201				207,281
5.88%, 7/15/22									340				358,700
Intelsat Jackson Holdings SA, 7.25%, 10/15/20									154				165,165
Intelsat Luxembourg SA:
11.25%, 2/04/17									440				467,500
11.50%, 2/04/17 (h)									480				510,600
Interactive Data Corp., 10.25%, 8/01/18									340				385,475
The Interpublic Group of Cos., Inc., 10.00%, 7/15/17									45				48,544
Kabel Deutschland Vertrieb und Service GmbH & Co. KG, 6.50%, 6/29/18 (b)					EUR				125				174,748
Live Nation Entertainment, Inc., 8.13%, 5/15/18 (b)					USD				150				162,750
NAI Entertainment Holdings LLC, 8.25%, 12/15/17 (b)									243				264,870
Nara Cable Funding Ltd., 8.88%, 12/01/18					EUR				100				137,083
NBC Universal Media LLC, 6.40%, 4/30/40					USD				530				681,147
The New York Times Co., 6.63%, 12/15/16									500				546,250
News America, Inc., 6.20%, 12/15/34									825				983,906
Nielsen Finance LLC, 7.75%, 10/15/18									408				451,860
Odeon & UCI Finco Plc, 9.00%, 8/01/18 (b)					GBP				100				157,773
ProQuest LLC, 9.00%, 10/15/18 (b)					USD				47				46,647
TCI Communications, Inc., 7.88%, 2/15/26									1,000				1,380,146
Time Warner Cable, Inc., 5.88%, 11/15/40									410				440,376
Unitymedia GmbH:
9.63%, 12/01/19 (b)					EUR				190				274,472
9.50%, 3/15/21									150				222,975
Unitymedia Hessen GmbH & Co. KG, 7.50%, 3/15/19									337				478,468
UPCB Finance II Ltd., 6.38%, 7/01/20 (b)									292				404,094
Virgin Media Secured Finance Plc, 6.50%, 1/15/18					USD				200				213,500
Ziggo Bond Co. BV, 8.00%, 5/15/18 (b)					EUR				75				105,749
Ziggo Finance BV, 6.13%, 11/15/17 (b)									88				120,633
													11,984,559
Metals & Mining — 3.6%
ArcelorMittal:
9.50%, 2/15/15					USD				100				112,875
4.25%, 2/25/15									43				44,399
4.25%, 8/05/15									38				39,343
4.25%, 3/01/16									50				51,500
Barrick Gold Corp., 2.90%, 5/30/16									225				236,384
Barrick North America Finance LLC, 5.70%, 5/30/41									250				271,188
Eco-Bat Finance Plc, 7.75%, 2/15/17					EUR				100				134,798
GoldCorp, Inc., 2.00%, 8/01/14 (d)					USD				220				230,450
New Gold, Inc. (b):
7.00%, 4/15/20									30				32,400
6.25%, 11/15/22									105				110,513
New World Resources NV:
7.88%, 5/01/18					EUR				65				87,023
7.88%, 5/01/18 (b)									76				101,750
Newmont Mining Corp.:
5.13%, 10/01/19					USD				225				261,297
Series A, 1.25%, 7/15/14 (d)									200				220,875
Novelis, Inc., 8.75%, 12/15/20									1,195				1,338,400
Schmolz & Bickenbach Luxembourg SA, 9.88%, 5/15/19					EUR				115				134,419
Taseko Mines Ltd., 7.75%, 4/15/19									150				149,250
Corporate Bonds								Par (000)				Value
Metals & Mining (concluded)
Vedanta Resources Plc, 8.25%, 6/07/21 (b)					USD				200			$	227,500
													3,784,364
Multiline Retail — 0.6%
Dollar General Corp., 4.13%, 7/15/17									244				258,030
Dufry Finance SCA, 5.50%, 10/15/20 (b)									400				417,000
													675,030
Oil, Gas & Consumable Fuels — 10.0%
Access Midstream Partners LP, 6.13%, 7/15/22									100				107,250
Anadarko Petroleum Corp.:
5.95%, 9/15/16									365				419,682
6.38%, 9/15/17									75				89,559
6.95%, 6/15/19									150				187,838
Carrizo Oil & Gas, Inc., 7.50%, 9/15/20									100				105,000
Chesapeake Energy Corp.:
7.25%, 12/15/18									10				11,300
6.63%, 8/15/20									90				98,550
6.13%, 2/15/21									95				100,700
Concho Resources, Inc.:
7.00%, 1/15/21									80				88,400
6.50%, 1/15/22									50				54,500
CONSOL Energy, Inc., 8.25%, 4/01/20									625				689,062
Continental Resources, Inc.:
7.13%, 4/01/21									135				153,225
5.00%, 9/15/22									121				130,075
Denbury Resources, Inc., 4.63%, 7/15/23									157				154,056
El Paso Pipeline Partners Operating Co. LLC, 5.00%, 10/01/21									500				558,032
Energy XXI Gulf Coast, Inc.:
9.25%, 12/15/17									120				135,600
7.75%, 6/15/19									320				343,200
Enterprise Products Operating LLC, 3.70%, 6/01/15									500				530,635
EP Energy LLC/Everest Acquisition Finance, Inc., 6.88%, 5/01/19									60				65,400
EV Energy Partners LP, 8.00%, 4/15/19									55				57,613
Hilcorp Energy I LP, 7.63%, 4/15/21 (b)									70				77,175
Kinder Morgan Energy Partners LP, 3.95%, 9/01/22									475				503,781
Kodiak Oil & Gas Corp., 8.13%, 12/01/19									128				144,000
Linn Energy LLC:
6.50%, 5/15/19									16				16,560
6.25%, 11/01/19 (b)									316				322,320
7.75%, 2/01/21									130				140,400
MarkWest Energy Partners LP:
6.25%, 6/15/22									19				20,591
5.50%, 2/15/23									40				42,000
4.50%, 7/15/23									54				52,785
Newfield Exploration Co., 5.63%, 7/01/24									70				73,150
Nexen, Inc., 6.40%, 5/15/37									150				189,975
Oasis Petroleum, Inc.:
7.25%, 2/01/19									90				97,200
6.50%, 11/01/21									110				118,800
Offshore Group Investments Ltd., 11.50%, 8/01/15									41				44,690
PBF Holding Co. LLC, 8.25%, 2/15/20 (b)									25				27,188
PDC Energy, Inc., 7.75%, 10/15/22 (b)									75				79,312
Petrobras International Finance Co.:
3.88%, 1/27/16									1,100				1,149,862
5.88%, 3/01/18									200				223,979
7.88%, 3/15/19									100				122,419
6.88%, 1/20/40									25				29,098
Petroleum Geo-Services ASA, 7.38%, 12/15/18 (b)									210				231,000
Pioneer Natural Resources Co., 6.88%, 5/01/18									35				42,510
Plains Exploration & Production Co., 6.88%, 2/15/23									235				270,837
Range Resources Corp.:
8.00%, 5/15/19									45				49,500
5.75%, 6/01/21									350				372,750
Sabine Pass Liquefaction LLC, 5.63%, 2/01/21 (b)									572				590,590

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

109

Schedule of Investments (continued)	BlackRock Strategic Bond Trust (BHD) (Percentages shown are based on Net Assets)

Corporate Bonds								Par (000)				Value
Oil, Gas & Consumable Fuels (concluded)
Sabine Pass Liquified Natural Gas LP:
7.50%, 11/30/16					USD				380			$	419,900
6.50%, 11/01/20 (b)									120				126,600
SandRidge Energy, Inc., 7.50%, 2/15/23									146				152,935
SM Energy Co., 6.63%, 2/15/19									45				48,263
Western Gas Partners LP, 5.38%, 6/01/21									325				367,436
The Williams Cos., Inc., 8.75%, 3/15/32									124				169,216
													10,396,499
Paper & Forest Products — 0.8%
Boise Paper Holdings LLC:
9.00%, 11/01/17									45				48,656
8.00%, 4/01/20									50				55,125
Clearwater Paper Corp., 7.13%, 11/01/18									215				232,738
International Paper Co.:
7.95%, 6/15/18									220				283,052
7.30%, 11/15/39									5				6,632
Longview Fibre Paper & Packaging, Inc., 8.00%, 6/01/16 (b)									120				126,000
NewPage Corp., 11.38%, 12/31/14 (a)(f)									781				—
Sappi Papier Holding GmbH, 6.63%, 4/15/21 (b)									50				51,750
													803,953
Pharmaceuticals — 1.9%
Capsugel Finance Co. SCA, 9.88%, 8/01/19 (b)					EUR				100				146,874
Jaguar Holding Co. II/Jaguar Merger Sub, Inc., 9.50%, 12/01/19 (b)					USD				125				143,438
Valeant Pharmaceuticals International (b):
6.50%, 7/15/16									285				299,428
6.38%, 10/15/20									145				156,056
Watson Pharmaceuticals, Inc., 3.25%, 10/01/22									550				554,506
Wyeth LLC, 6.50%, 2/01/34									500				677,838
													1,978,140
Real Estate Investment Trusts (REITs) — 0.8%
Felcor Lodging LP:
6.75%, 6/01/19									290				311,569
5.63%, 3/01/23 (b)									62				62,387
HCP, Inc., 5.38%, 2/01/21									225				262,217
The Rouse Co. LP, 6.75%, 11/09/15									145				150,800
													786,973
Real Estate Management & Development — 2.0%
CBRE Services, Inc., 6.63%, 10/15/20									90				97,200
Lennar Corp., 4.75%, 11/15/22 (b)									110				106,288
Mattamy Group Corp., 6.50%, 11/15/20 (b)									100				99,625
Realogy Corp.:
11.50%, 4/15/17									110				117,287
12.00%, 4/15/17									35				37,363
7.88%, 2/15/19 (b)									951				1,034,212
7.63%, 1/15/20 (b)									130				146,575
Shea Homes LP, 8.63%, 5/15/19									445				493,950
													2,132,500
Road & Rail — 1.3%
Canadian National Railway Co., 6.90%, 7/15/28									500				675,012
The Hertz Corp.:
7.50%, 10/15/18									285				311,363
7.38%, 1/15/21									380				418,950
													1,405,325
Semiconductors & Semiconductor Equipment — 0.2%
NXP BV/NXP Funding LLC, 5.75%, 2/15/21 (b)									200				204,500
Software — 1.2%
IAC/InterActiveCorp, 4.75%, 12/15/22 (b)									151				147,602
Infor US, Inc., 9.38%, 4/01/19									630				707,175
Nuance Communications, Inc., 5.38%, 8/15/20 (b)									130				131,625
Oracle Corp., 5.38%, 7/15/40									210				253,468
													1,239,870
Corporate Bonds								Par (000)				Value
Specialty Retail — 1.5%
Asbury Automotive Group, Inc., 8.38%, 11/15/20					USD				130			$	144,950
Claire’s Stores, Inc., 9.00%, 3/15/19 (b)									85				94,350
House of Fraser Funding Plc:
8.88%, 8/15/18 (b)					GBP				100				160,807
8.88%, 8/15/18									125				201,009
Limited Brands, Inc., 8.50%, 6/15/19					USD				320				392,000
New Academy Finance Co. LLC/New Academy Finance Corp., 8.00%, 6/15/18 (b)(h)									59				60,918
QVC, Inc. (b):
7.13%, 4/15/17									80				83,325
7.50%, 10/01/19									135				148,998
7.38%, 10/15/20									95				105,302
Sonic Automotive, Inc., 9.00%, 3/15/18									115				126,500
													1,518,159
Textiles, Apparel & Luxury Goods — 0.1%
PVH Corp., 4.50%, 12/15/22									122				120,323
Tobacco — 0.1%
Altria Group, Inc., 9.95%, 11/10/38									50				83,153
Trading Companies & Distributors — 0.2%
Air Lease Corp., 4.50%, 1/15/16									257				262,782
Wireless Telecommunication Services — 6.0%
America Movil SAB de CV:
2.38%, 9/08/16									200				207,085
5.00%, 3/30/20									400				455,034
American Tower Corp.:
4.50%, 1/15/18									375				413,056
4.70%, 3/15/22									380				412,337
Crown Castle International Corp., 5.25%, 1/15/23 (b)									115				117,875
Crown Castle Towers LLC, 6.11%, 1/15/40 (b)									375				455,391
Digicel Group Ltd. (b):
8.25%, 9/01/17									365				385,075
10.50%, 4/15/18									90				99,000
8.25%, 9/30/20									220				234,630
MetroPCS Wireless, Inc., 6.63%, 11/15/20									123				128,689
Phones4u Finance Plc:
9.50%, 4/01/18 (b)					GBP				100				156,635
9.50%, 4/01/18									100				156,635
SBA Tower Trust, 4.25%, 4/15/40 (b)					USD				325				344,835
Sprint Capital Corp., 6.88%, 11/15/28									530				535,300
Sprint Nextel Corp. (b):
9.00%, 11/15/18									1,216				1,507,840
7.00%, 3/01/20									560				655,200
													6,264,617
Total Corporate Bonds — 98.4%													102,665,611
Floating Rate Loan Interests (i)
Airlines — 0.2%
Delta Air Lines, Inc., Term Loan B, 4.50%, 4/20/17									162				163,372
Auto Components — 0.5%
Schaeffler AG, Term Loan B2, 6.00%, 1/27/17									485				484,879
Building Products — 0.1%
Wilsonart International Holdings LLC, Term Loan B, 5.50%, 10/31/19									150				151,575
Capital Markets — 0.3%
American Capital Holdings, Inc., Term Loan, 5.50%, 8/22/16									343				346,430
Chemicals — 0.4%
INEOS US Finance LLC, 6 Year Term Loan, 6.50%, 5/04/18									142				144,997
US Coatings Acquisition, Inc., Term Loan, 4.75%, 2/03/20									255				258,096
													403,093

See Notes to Financial Statements.

110

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

Schedule of Investments (continued)	BlackRock Strategic Bond Trust (BHD) (Percentages shown are based on Net Assets)

Floating Rate Loan Interests (i)								Par (000)				Value
Commercial Services & Supplies — 0.3%
AWAS Finance Luxembourg Sarl, Term Loan B, 5.25%, 6/10/16					USD				134			$	134,974
Delos Aircraft, Inc., Term Loan 2, 4.75%, 4/12/16									225				226,312
													361,286
Communications Equipment — 1.4%
Alcatel-Lucent:
Term Loan C, 7.25%, 1/31/19									500				505,500
Term Loan D, 7.75%, 1/31/19					EUR				195				255,254
Zayo Group, LLC Refinancing, Term Loan B, 5.25%, 7/12/19					USD				751				753,667
													1,514,421
Construction & Engineering — 0.7%
Safway Services LLC, Mezzanine Loan, 9.88%, 12/16/17									750				750,000
Construction Materials — 0.4%
HD Supply, Inc., Senior Debt B, 4.50%, 10/12/17									408				409,035
Consumer Finance — 1.7%
Springleaf Financial Funding Co., Term Loan, 5.50%, 5/10/17									1,750				1,756,195
Diversified Consumer Services — 0.6%
Laureate Education, Inc., Extended Term Loan, 5.25%, 6/18/18									485				487,670
ServiceMaster Co., New Term Loan, 12.70%, 4/01/17									165				164,440
													652,110
Diversified Telecommunication Services — 0.6%
Level 3 Financing, Inc.:
2016 Term Loan B, 4.75%, 2/01/16									135				136,178
2019 Term Loan B, 5.25%, 8/01/19									110				111,123
Term Loan, 4.75%, 8/01/19									350				352,800
													600,101
Energy Equipment & Services — 1.6%
Dynegy Midwest Generation LLC, Coal Co. Term Loan, 9.25%, 8/04/16									610				629,303
Dynegy Power LLC, Gas Co. Term Loan, 9.25%, 8/04/16									984				1,023,302
Tervita Corp., Incremental Term Loan, 3.20%, 5/01/18									50				50,258
													1,702,863
Food & Staples Retailing — 0.0%
Rite Aid Corp., Second Lien Term Loan, 5.75%, 7/07/20									40				40,911
Food Products — 0.1%
Advance Pierre Foods, Inc., Term Loan, 5.75%, 7/10/17									80				80,975
Health Care Equipment & Supplies — 0.5%
Bausch & Lomb, Inc., Term Loan B, 5.25%, 5/17/19									134				135,316
Capital Safety North America Holding, Inc., Term Loan, 4.50%, 1/21/19									278				277,900
LHP Hospital Group, Inc., Term Loan, 9.00%, 7/03/18									104				106,826
													520,042
Health Care Providers & Services — 0.4%
Harden Healthcare LLC:
Add on Term Loan A, 7.75%, 3/02/15									137				134,265
Term Loan A, 8.50%, 3/02/15									137				135,293
inVentiv Health, Inc., Combined Term Loan, 7.50%, 8/04/16									107				105,748
													375,306
Floating Rate Loan Interests (i)								Par (000)				Value
Hotels, Restaurants & Leisure — 3.6%
Caesars Entertainment Operating Co., Inc.:
Term Loan B1, 3.20%—3.31%, 1/28/15					USD				185			$	184,889
Term Loan B3, 3.20%—3.31%, 1/28/15									9				8,699
Harrah’s Property Co., Mezzanine Term Loan, 3.69%, 2/13/14									1,940				1,784,800
MGM Resorts International, Term Loan B, 4.25%, 12/20/19									445				450,118
Station Casinos, Inc.:
Term Loan B, 5.50%, 9/27/19									369				371,227
Term Loan B, 5.00%, 2/13/20									625				630,208
Term Loan B1, 3.20%, 6/17/16									277				279,205
													3,709,146
Industrial Conglomerates — 0.2%
Sequa Corp., Term Loan B, 5.25%, 6/19/17									209				211,192
Insurance — 0.1%
Alliant Holdings I, Inc., Term Loan B, 5.00%, 12/20/19									120				120,900
IT Services — 0.3%
First Data Corp., Extended 2018 Term Loan B, 4.20%, 3/23/18									285				281,409
Leisure Equipment & Products — 0.1%
Eastman Kodak Co., DIP Term Loan B, 8.50%, 7/19/13									88				88,245
Life Sciences Tools & Services — 0.1%
Patheon, Inc., Term Loan, 7.25%, 12/06/18									75				75,654
Machinery — 0.4%
Rexnord Corp., Term Loan B, 4.50%, 4/02/18									213				214,182
Silver II US Holdings LLC, Term Loan, 4.75%, 12/05/19									230				230,000
													444,182
Media — 3.8%
Cengage Learning Acquisitions, Inc.:
Non-Extended Term Loan, 2.71%, 7/03/14									40				30,973
Tranche 1 Incremental, 7.50%, 7/03/14									478				379,612
Clear Channel Communications, Inc.:
Term Loan B, 3.85%, 1/29/16									357				305,205
Term Loan C, 3.85%, 1/29/16									79				66,415
EMI Music Publishing Ltd., Term Loan B, 5.50%, 6/29/18									104				105,598
Getty Images, Inc., Term Loan B, 4.75%, 10/18/19									235				236,828
Intelsat Jackson Holdings SA, Term Loan B1, 4.50%, 4/02/18									2,373				2,395,289
Interactive Data Corp., Term Loan B, 3.75%, 2/11/18									150				149,835
Virgin Media Investment Holdings, Term Loan B, 3.50%, 2/17/20									270				268,388
													3,938,143
Metals & Mining — 1.0%
Constellium Holdco BV, Term Loan B, 9.25%, 5/25/18									149				152,235
FMG America Finance, Inc., Term Loan, 5.25%, 10/18/17									853				863,080
													1,015,315
Oil, Gas & Consumable Fuels — 1.2%
Chesapeake Energy Corp., Unsecured Term Loan, 5.75%, 12/01/17									515				525,676
Obsidian Natural Gas Trust, Term Loan, 7.00%, 11/02/15									313				316,500
Samson Investment Co., Second Lien Term Loan, 6.00%, 9/25/18									85				85,797
Vantage Drilling Co., Term Loan, 6.25%, 10/26/17									351				352,315
													1,280,288

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

111

Schedule of Investments (continued)	BlackRock Strategic Bond Trust (BHD) (Percentages shown are based on Net Assets)

Floating Rate Loan Interests (i)								Par (000)				Value
Pharmaceuticals — 0.1%
Pharmaceutical Product Development, Inc., Term Loan B, 4.25%, 12/05/18					USD				109			$	109,426
Professional Services — 0.1%
Truven Health Analytics, Inc., Term Loan B, 5.75%, 6/01/19									134				135,585
Real Estate Investment Trusts (REITs) — 0.2%
iStar Financial, Inc., Term Loan, 4.50%, 9/28/17									200				199,851
Real Estate Management & Development — 0.5%
Realogy Corp.:
Extended Letter of Credit Loan, 4.46%, 10/10/16									50				50,179
Extended Term Loan, 4.42%, 10/10/16									426				425,650
													475,829
Road & Rail — 0.1%
Genesee & Wyoming, Inc., Term Loan A, 2.70%, 9/29/17									105				105,379
Software — 0.6%
Infor US, Inc., Term Loan B2, 5.25%, 4/05/18									443				447,573
Kronos, Inc., Second Lien Term Loan, 9.75%, 4/30/20									185				192,400
													639,973
Textiles, Apparel & Luxury Goods — 0.4%
Ascend Performance Materials LLC, Term Loan B, 6.75%, 4/10/18									402				405,982
Thrifts & Mortgage Finance — 0.2%
Ocwen Financial Corp., Term Loan, 1.00%, 1/22/18									215				217,597
Wireless Telecommunication Services — 1.2%
Vodafone Americas Finance 2, Inc. (h):
Term Loan, 6.88%, 8/11/15									831				847,258
Term Loan B, 6.25%, 7/11/16									413				423,844
													1,271,102
Total Floating Rate Loan Interests — 24.0%													25,037,792
Foreign Agency Obligations — 0.2%
Qatar Government International Bond, 4.00%, 1/20/15 (b)									200				211,000
Taxable Municipal Bonds — 0.4%
Metropolitan Transportation Authority, RB, Build America Bonds, Series TR, 6.81%, 11/15/40									300				398,238
Other Interests (j)								Beneficial Interest (000)
Media — 0.0%
Adelphia Communications Corp. Class A									400				2,520
Preferred Securities
Capital Trusts									Par (000)
Capital Markets — 0.2%
State Street Capital Trust IV, 1.31%, 6/01/67 (i)									200				160,500
Electric Utilities — 0.2%
Electricite de France SA, 5.25% (b)(i)(k)									225				221,513

Capital Trusts								Par (000)				Value
Insurance — 0.2%
MetLife Capital Trust X, 9.25%, 4/08/68 (b)					USD				150			$	207,000
Total Capital Trusts — 0.6%													589,013
Preferred Stocks									Shares
Real Estate Investment Trusts (REITs) — 0.1%
MPG Office Trust, Inc., Series A, 7.63% (a)									3,277				74,552
Trust Preferreds
Diversified Financial Services — 0.4%
GMAC Capital Trust I, Series 2, 8.13%, 2/15/40 (i)									17,380				459,696
Total Preferred Securities — 1.1%													1,123,261
US Government Sponsored Agency Securities									Par   (000)
Collateralized Mortgage Obligations — 0.2%
Ginnie Mae Mortgage-Backed Securities, Series 2006-68, Class B, 5.16%, 6/16/31 (i)					USD				155				156,260
US Treasury Obligations
US Treasury Bonds, 3.00%, 5/15/42									700				688,625
US Treasury Notes:
2.00%, 2/15/22									70				71,734
1.63%, 8/15/22									200				196,750
Total US Treasury Obligations — 0.9%													957,109
Warrants (l)									Shares
Software — 0.0%
Bankruptcy Management Solutions, Inc. (Expires 9/28/17)									56				—
Total Warrants — 0.0%													—
Total Long-Term Investments (Cost — $123,441,711) — 125.5%													130,873,582
Short-Term Securities
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.10%(m)(n)									3,272,481				3,272,481
Total Short-Term Securities (Cost — $3,272,481) — 3.1%													3,272,481
Options Purchased
(Cost — $84,104) — (0.0)%													35,168
Total Investments Before Options Written (Cost — $126,798,296) — 128.6%													134,181,231
Options Written
(Premium Received—$45,000) — (0.0)%													(29,046	)
Total Investments, Net of Options Written — 128.6%													134,152,185
Liabilities in Excess of Other Assets — (28.6)%													(29,845,931	)
Net Assets — 100.0%												$	104,306,254

See Notes to Financial Statements.

112

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

Schedule of Investments (continued)	BlackRock Strategic Bond Trust (BHD)

Notes to Schedule of Investments

(a)				Non-income producing security.
(b)				Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(c)				Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(d)				Convertible security.
(e)				Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown is as of report date.
(f)				Issuer filed for bankruptcy and/or is in default of principal and/or interest payments.
(g)				When-issued security. Unsettled when-issued transactions were as follows:

Counterparty		Value		Unrealized Appreciation
Citigroup, Inc		$120,900		$2,948

(h)				Represents a payment-in-kind security which may pay interest/dividends in additional par/shares.
(i)				Variable rate security. Rate shown is as of report date.
(j)				Other interests represent beneficial interests in liquidation trusts and other reorganization or private entities.
(k)				Security is perpetual in nature and has no stated maturity date.
(l)				Warrants entitle the Trust 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 of the warrants, if any.
(m)				Investments in issuers considered to be an affiliate of the Trust during the six months ended February 28, 2013, for purposes of Section 2(a)(3) of the 1940 Act, as amended, were as follows:

Affiliate				Shares Held at August 31, 2012		Net Activity		Shares Held at February 28, 2013		Income		Realized Gain
BlackRock Liquidity Funds, TempFund, Institutional Class				—		3,272,481		3,272,481		$ 395		$ 22

(n)				Represents the current yield as of report date.
•				Financial futures contracts as of February 28, 2013 were as follows:

Contracts Purchased     (Sold)		Issue		Exchange		Expiration		Notional Value			Unrealized Appreciation (Depreciation)
60		2-Year US Treasury Note		Chicago Board of Trade		June 2013		USD	13,228,125		$	6,569
23		5-Year US Treasury Note		Chicago Board of Trade		June 2013		USD	2,851,641			5,447
8		Ultra Long US Treasury Bond		Chicago Board of Trade		June 2013		USD	1,264,000			(7,117)
(26)		10-Year US Treasury Note		Chicago Board of Trade		June 2013		USD	3,420,219			(20,936)
(30)		30-Year US Treasury Bond		Chicago Board of Trade		June 2013		USD	4,313,438			(40,312)
Total											$	(56,349)

•

Foreign currency exchange contracts as of February 28, 2013 were as follows:

Currency Purchased			Currency Sold			Counterparty		Settlement Date		Unrealized Appreciation (Depreciation)
USD	2,386,861		GBP	1,490,000		Goldman Sachs Group, Inc.		4/17/13		$	126,984
EUR	100,000		USD	134,940		Citigroup, Inc.		4/23/13			(4,337	)
USD	160,321		EUR	120,000		BNP Paribas SA		4/23/13			3,597
USD	6,349,363		EUR	4,765,000		Citigroup, Inc.		4/23/13			126,132
USD	284,215		EUR	212,000		Royal Bank of Scotland Group Plc		4/23/13			7,337
Total										$	259,713

•

Over-the-counter options purchased as of February 28, 2013 were as follows:

Description

Counterparty

Put/ Call

Strike Price

Expiration Date

Contracts

Market Value

Marsico Parent Superholdco LLC

Goldman Sachs Group, Inc.

Call

USD

942.86

12/14/19

6

—

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

113

Schedule of Investments (continued)	BlackRock Strategic Bond Trust (BHD)

•

Over-the-counter interest rate swaptions purchased as of February 28, 2013 were as follows:

Description

Counterparty

Put/ Call

Exercise Rate

Pay/Receive Exercise Rate

Floating Rate Index

Expiration Date

Notional Amount (000)

Market Value

5-Year Interest Rate Swap

Citigroup, Inc.

Call

1.40%

Receive

3-Month LIBOR

5/08/14

USD

600

$

7,412

2-Year Interest Rate Swap

Credit Suisse Group AG

Put

0.71%

Pay

6-Month LIBOR

7/01/13

USD

4,525

1,103

30-Year Interest Rate Swap

Credit Suisse Group AG

Put

4.50%

Pay

3-Month LIBOR

9/16/13

EUR

600

71

10-Year Interest Rate Swap

Deutsche Bank AG

Put

4.50%

Pay

3-Month LIBOR

2/02/17

USD

1,000

26,582

Total

$

35,168

•

Over-the-counter interest rate swaptions written as of February 28, 2013 were as follows:

Description

Counterparty

Put/ Call

Exercise Rate

Pay/Receive Exercise Rate

Floating Rate Index

Expiration Date

Notional Amount (000)

Market Value

5-Year Interest Rate Swap

Citigroup, Inc.

Call

1.40%

Pay

3-Month LIBOR

5/08/14

USD

600

$

(7,412

)

10-Year Interest Rate Swap

Deutsche Bank AG

Put

6.00%

Receive

3-Month LIBOR

2/02/17

USD

2,000

(21,634

)

Total

$

(29,046

)

•

Credit default swaps — buy protection outstanding as of February 28, 2013 were as follows:

Issuer

Pay Fixed Rate

Counterparty

Expiration Date

Notional Amount (000)

Unrealized Depreciation

The New York Times Co.

1.00%

Barclays Plc

12/20/16

USD

500

$

(11,367

)

•

Credit default swaps — sold protection outstanding as of February 28, 2013 were as follows:

Issuer

Receive Fixed Rate

Counterparty

Expiration Date

Credit  Rating1

Notional Amount (000)2

Unrealized Appreciation

MetLife, Inc.

5.00%

Deutsche Bank AG

6/20/15

A-

USD

150

$

10,351

MetLife, Inc.

1.00%

UBS AG

9/20/15

A-

USD

175

8,099

Caesars Entertainment Operating Co., Inc.

5.00%

Citigroup, Inc.

12/20/15

CCC

USD

56

7,333

Caesars Entertainment Operating Co., Inc.

5.00%

Citigroup, Inc.

12/20/15

CCC

USD

27

2,647

Caesars Entertainment Operating Co., Inc.

5.00%

JPMorgan Chase & Co.

12/20/15

CCC

USD

23

2,771

Caesars Entertainment Operating Co., Inc.

5.00%

JPMorgan Chase & Co.

12/20/15

CCC

USD

91

10,244

Caesars Entertainment Operating Co., Inc.

5.00%

JPMorgan Chase & Co.

12/20/15

CCC

USD

98

16,561

Caesars Entertainment Operating Co., Inc.

5.00%

UBS AG

12/20/15

CCC

USD

130

12,188

Caesars Entertainment Operating Co., Inc.

5.00%

Barclays Plc

3/20/16

CCC

USD

13

615

Caesars Entertainment Operating Co., Inc.

5.00%

Barclays Plc

3/20/16

CCC

USD

13

233

Caesars Entertainment Operating Co., Inc.

5.00%

Citigroup, Inc.

3/20/16

CCC

USD

14

324

Caesars Entertainment Operating Co., Inc.

5.00%

Goldman Sachs Group, Inc.

3/20/16

CCC

USD

39

3,011

Caesars Entertainment Operating Co., Inc.

5.00%

Goldman Sachs Group, Inc.

3/20/16

CCC

USD

121

7,778

Caesars Entertainment Operating Co., Inc.

5.00%

Goldman Sachs Group, Inc.

3/20/16

CCC

USD

30

1,507

Caesars Entertainment Operating Co., Inc.

5.00%

Goldman Sachs Group, Inc.

3/20/16

CCC

USD

36

35

Caesars Entertainment Operating Co., Inc.

5.00%

Goldman Sachs Group, Inc.

3/20/16

CCC

USD

39

3,011

Caesars Entertainment Operating Co., Inc.

5.00%

JPMorgan Chase & Co.

3/20/16

CCC

USD

15

536

ARAMARK Corp.

5.00%

Goldman Sachs Group, Inc.

6/20/16

B-

USD

150

12,145

ARAMARK Corp.

5.00%

Goldman Sachs Group, Inc.

6/20/16

B-

USD

150

12,869

ARAMARK Corp.

5.00%

JPMorgan Chase & Co.

6/20/16

B-

USD

50

4,195

ARAMARK Corp.

5.00%

JPMorgan Chase & Co.

6/20/16

B-

USD

100

8,389

Caesars Entertainment Operating Co., Inc.

5.00%

Goldman Sachs Group, Inc.

6/20/16

CCC

USD

77

4,564

Caesars Entertainment Operating Co., Inc.

5.00%

Goldman Sachs Group, Inc.

6/20/16

CCC

USD

150

7,451

Caesars Entertainment Operating Co., Inc.

5.00%

Barclays Plc

3/20/17

CCC

USD

13

100

Caesars Entertainment Operating Co., Inc.

5.00%

Goldman Sachs Group, Inc.

3/20/17

CCC

USD

27

337

Total

$

137,294

1

Using S&P’s rating of the issuer.

2

The maximum potential amount the Trust may pay should a negative credit event take place as defined under the terms of the agreement.

See Notes to Financial Statements.

114

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

Schedule of Investments (continued)	BlackRock Strategic Bond Trust (BHD)

•

Interest rate swaps outstanding as of February 28, 2013 were as follows:

Fixed Rate		Floating Rate		Counterparty		Expiration Date		Notional Amount (000)			Unrealized Appreciation (Depreciation)
0.44%1		3-month LIBOR		Credit Suisse Group AG		8/29/14		USD	2,000		$	(2,577)
0.42%1		3-month LIBOR		Goldman Sachs Group, Inc.		2/08/15		USD	1,800			(1,213)
2.48%1		3-month LIBOR		Credit Suisse Group AG		7/05/42		USD	500			47,228
2.26%1		3-month LIBOR		Goldman Sachs Group, Inc.		7/26/42		USD	200			28,168
2.46%1		3-month LIBOR		Deutsche Bank AG		8/07/42		USD	500			49,207
2.51%1		3-month LIBOR		Credit Suisse Group AG		8/10/42		USD	200			18,011
Total											$	138,824

1

Trust pays the fixed rate and receives the floating rate.

•

For Trust compliance purposes, the Trust’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 Trust management. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.

•

Fair Value Measurements—Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:

•				Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the Trust has the ability to access
•				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 Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)

				The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
				Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust’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.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

115

Schedule of Investments (continued)	BlackRock Strategic Bond Trust (BHD)

The following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy as of February 28, 2013:

				Level 1				Level 2				Level 3				Total
Assets:
Investments:
Long-Term Investments:
Common Stocks				$	793				—			$	320,998			$	321,791
Corporate Bonds					—			$	102,589,855				75,756				102,665,611
Floating Rate Loan Interests					—				20,739,678				4,298,114				25,037,792
Foreign Agency Obligations					—				211,000				—				211,000
Municipal Bonds					—				398,238				—				398,238
Other Interests					—				2,520				—				2,520
Preferred Securities					534,248				589,013				—				1,123,261
US Government Sponsored Agency Securities					—				156,260				—				156,260
US Treasury Obligations					—				957,109				—				957,109
Short-Term Securities					3,272,481				—				—				3,272,481
Options Purchased:
Interest Rate Contracts					—				35,168				—				35,168
Total				$	3,807,522			$	125,678,841			$	4,694,868			$	134,181,231

				Level 1				Level 2				Level 3				Total
Derivative Financial Instruments1
Assets:
Credit contracts					—			$	137,294				—			$	137,294
Foreign currency exchange contracts					—				264,050				—				264,050
Interest rate contracts				$	12,016				142,614				—				154,630
Liabilities:
Credit contracts					—				(11,367	)			—				(11,367	)
Foreign currency exchange contracts					—				(4,337	)			—				(4,337	)
Interest rate contracts					(68,365	)			(32,836	)			—				(101,201	)
Total				$	(56,349	)		$	495,418				—			$	439,069

1

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

Certain of the Trust’s assets and liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of February 28, 2013, such assets and liabilities are categorized within the disclosure hierarchy as follows:

				Level 1				Level 2				Level 3				Total
Assets:
Foreign currency at value				$	63,496				—				—			$	63,496
Cash pledged as collateral for financial futures contracts......					98,660				—				—				98,660
Cash pledged as collateral for swaps					10,000				—				—				10,000
Liabilities:
Bank overdraft					—			$	(337,516	)			—				(337,516	)
Loan payable					—				(28,000,000	)			—				(28,000,000	)
Total				$	172,156			$	(28,337,516	)			—			$	(28,165,360	)

There were no transfers between Level 1 and Level 2 during the six months ended February 28, 2013.

See Notes to Financial Statements.

116

SEMI-ANNUAL REPORT

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Schedule of Investments (concluded)	BlackRock Strategic Bond Trust (BHD)

A reconciliation of Level 3 investments is presented when the Trust had a significant amount of Level 3 investments at the beginning and/or end of the period in relation to net assets. The following table is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:

				Common Stocks				Corporate Bonds				Floating Rate Loans				Total
Assets:
Opening Balance, as of August 31, 2012				$	1				—			$	4,212,613			$	4,212,614
Transfers into Level 31					—			$	572,487				545,048				1,117,535
Transfers out of Level 32					—				—				(400,306	)			(400,306	)
Accrued discounts/premiums					—				(1,725	)			3,429				1,704
Net realized gain					—				2,842				11,491				14,333
Net change in unrealized appreciation/depreciation3					274,078				(541,548	)			8,216				(259,254	)
Purchases					46,924				107,909				682,068				836,901
Sales					(5	)			(64,209	)			(764,445	)			(828,659	)
Closing Balance, as of February 28, 2013				$	320,998			$	75,756			$	4,298,114			$	4,694,868

1

As of August 31, 2012, the Trust used observable inputs in determining the value of certain investments. As of February 28, 2013, the Trust used significant unobservable inputs in determining the value of the same investments. As a result, investments with a beginning of period value of $1,117,535 transferred from Level 2 to Level 3 in the disclosure hierarchy.

2

As of August 31, 2012, the Trust used significant unobservable inputs in determining the value of certain investments. As of February 28, 2013, the Trust used observable inputs in determining the value of the same investments. As a result, investments with a beginning of period value of $400,306 transferred from Level 3 to Level 2 in the disclosure hierarchy.

3

Included in the related net change in unrealized appreciation/depreciation in the Statements of Operations. The change in unrealized appreciation/depreciation on investments still held as of February 28, 2013 was $265,255.

The following table summarizes the valuation techniques used and unobservable inputs developed by the Global Valuation Committee to determine the value of certain of the Trust’s Level 3 investments as of February 28, 2013. The table does not include Level 3 investments with values derived utilizing third party pricing information without adjustment. A significant change in third party pricing information could result in a significantly lower or higher value of such Level 3 investments. The value of Level 3 investments derived using third party pricing information is $3,641,613.

				Value			Valuation Techniques		Unobservable Inputs4		Range of Unobservable Inputs Utilized
Assets:
Common Stocks				$	33,697		Restructure Terms5		N/A		—
Floating Rate Loan Interests					269,558		Discounted Cash Flow		Yield		9.50%
					750,000		Cost6		N/A		—
Total				$	1,053,255

4

A change to the unobservable input may result in a significant change to the value of the investment as follows:

Unobservable Input				Impact to Value if Input Increases		Impact to Value if Input Decreases
Yield				Decrease		Increase

5

Investment is valued based on the company’s financial restructuring plan.

6

The Trust fair values certain of its Level 3 investments using prior transaction prices (acquisition cost), although the transaction may not have occurred during the current reporting period. In such cases, these investments are generally privately held investments. There may not be a secondary market, and/or there are a limited number of investors. The determination to fair value such investments at cost is based upon factors consistent with the principles of fair value measurement that are reasonably available to the Global Valuation Committee, or its delegate. Valuations are reviewed utilizing available market information to determine if the carrying value should be adjusted. Such market data may include, but is not limited to, observations of the trading multiples of public companies considered comparable to the private companies being valued, financial or operational information released by the company, and/or news or corporate events that affect the investment. Valuations may be adjusted to account for company-specific issues, the lack of liquidity inherent in a nonpublic investment and the fact that comparable public companies are not identical to the investments being fair valued by the Trust.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

117

Statements of Assets and Liabilities

February 28, 2013 (Unaudited)				BlackRock Core Bond Trust (BHK)				BlackRock Corporate High Yield Fund V, Inc. (HYV)*				BlackRock Corporate High Yield Fund VI, Inc. (HYT)*				BlackRock High Income Shares (HIS)
Assets
Investments at value — unaffiliated1				$	603,571,102			$	619,085,952			$	642,601,094			$	171,735,959
Investments at value — affiliated2					2,677,125				4,128,807				4,840,770				2,757,840
Foreign currency at value3					159,393				5,581				317,411				31,721
Cash					60,313				—				—				—
Cash pledged as collateral for financial futures contracts					882,000				307,000				324,000				122,000
Cash pledged as collateral for reverse repurchase agreements					1,615,619				—				—				—
Cash pledged as collateral for swaps					3,210,000				400,000				400,000				—
TBA sale commitments receivable					8,690,719				—				—				—
Investments sold receivable					15,017,429				4,489,425				4,435,130				1,496,304
Interest receivable					6,196,024				8,392,201				8,759,343				2,506,481
Unrealized appreciation on swaps					1,206,296				1,328,092				1,351,785				—
Unrealized appreciation on foreign currency exchange contracts					622,183				1,524,216				1,622,949				138,583
Swaps receivable					90,131				252,044				255,273				—
Swap premiums paid					133,461				118,134				119,910				—
Principal paydown receivable					175,916				—				—				—
Variation margin receivable					27,006				9,125				9,625				3,125
Dividends receivable					—				6,488				3,278				—
Prepaid expenses					21,404				13,249				14,133				6,847
Other assets					30,391				—				—				—
Total assets					644,386,512				640,060,314				665,054,701				178,798,860
Liabilities
Bank overdraft					—				138,781				307,820				—
Reverse repurchase agreements					183,433,858				—				—				—
Loan payable					—				174,000,000				178,000,000				44,000,000
Cash received as collateral for swaps					1,100,000				1,200,000				1,200,000				—
Investments purchased payable					34,919,617				26,718,481				27,476,434				7,677,701
TBA sale commitments at value4					8,696,625				—				—				—
Unrealized depreciation on swaps					466,953				56,309				58,957				—
Options written at value5					2,733,943				81,138				84,883				—
Swap premiums received					328,028				1,786,064				1,861,346				—
Swaps payable					640,526				3,619				3,747				—
Investment advisory fees payable					238,879				276,770				335,392				94,722
Interest expense payable					83,240				122,838				128,677				28,691
Officer’s and Trustees’ fees payable					46,725				108,692				112,784				12,765
Income dividends payable					54,520				70,432				88,498				—
Unrealized depreciation on foreign currency exchange contracts					23,595				12,470				13,704				8,050
Other liabilities					240,760				—				—				—
Other accrued expenses payable					179,051				256,322				234,256				97,828
Total liabilities					233,186,320				204,831,916				209,906,498				51,919,757
Net Assets				$	411,200,192			$	435,228,398			$	455,148,203			$	126,879,103
1 Investments at cost — unaffiliated				$	565,566,273			$	598,717,928			$	622,082,858			$	167,334,601
2 Investments at cost — affiliated				$	2,677,125			$	4,128,807			$	4,840,770			$	2,757,840
3 Foreign currency at cost				$	165,295			$	5,647			$	320,044			$	32,595
4 Proceeds from TBA sale commitments				$	8,690,719				—				—				—
5 Premiums received				$	3,446,258			$	157,950			$	165,240				—

*

Consolidated Statements of Assets and Liabilities.

See Notes to Financial Statements.

118

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Statements of Assets and Liabilities (concluded)

February 28, 2013 (Unaudited)				BlackRock Core Bond Trust (BHK)				BlackRock Corporate High Yield Fund V, Inc. (HYV)*				BlackRock Corporate High Yield Fund VI, Inc. (HYT)*				BlackRock High Income Shares (HIS)
Net Assets Consist of
Paid-in capital6,7,8				$	378,960,758			$	470,688,615			$	506,565,764			$	158,633,827
Undistributed net investment income					6,052,344				4,434,679				5,837,020				1,549,178
Accumulated net realized loss					(13,435,739	)			(63,018,441	)			(80,641,018	)			(37,796,069	)
Net unrealized appreciation/depreciation					39,622,829				23,123,545				23,386,437				4,492,167
Net Assets				$	411,200,192			$	435,228,398			$	455,148,203			$	126,879,103
Net asset value per share				$	15.21			$	13.18			$	12.85			$	2.31
6 Par value per share				$	0.001			$	0.100			$	0.100				—
7 Shares outstanding					27,041,847				33,015,111				35,414,156				54,824,195
8 Shares authorized					unlimited				200 million				200 million				unlimited

*

Consolidated Statements of Assets and Liabilities.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

119

Statements of Assets and Liabilities

February 28, 2013 (Unaudited)				BlackRock High Yield Trust (BHY)				BlackRock Income Opportunity Trust, Inc. (BNA)				BlackRock Income Trust, Inc. (BKT)				BlackRock Strategic Bond Trust (BHD)
Assets
Investments at value — unaffiliated1				$	66,013,096			$	599,851,356			$	831,678,604			$	130,908,750
Investments at value — affiliated2					2,001,193				—				790,665				3,272,481
Foreign currency at value3					11,231				22,379				—				63,496
Cash					—				1,805,619				—				—
Cash pledged as collateral for financial futures contracts					63,000				1,146,000				3,087,000				98,660
Cash pledged as collateral for reverse repurchase agreements					—				846,837				—				—
Cash pledged as collateral for swaps					—				3,210,000				4,700,000				10,000
TBA sale commitments receivable					—				8,690,719				108,711,141				—
Investments sold receivable					868,700				15,991,976				11,068,127				530,766
Interest receivable					947,007				6,271,404				3,080,548				1,781,150
Unrealized appreciation on swaps					132,849				1,547,435				9,310,554				279,908
Unrealized appreciation on foreign currency exchange contracts					65,846				640,651				—				264,050
Swaps receivable					28,472				91,145				785,236				25,799
Swap premiums paid					19,640				133,273				—				43,465
Principal paydown receivable					—				—				152,793				—
Variation margin receivable					1,000				26,612				—				3,526
Dividends receivable					40				—				—				—
Prepaid expenses					2,408				18,889				19,633				4,578
Other assets					—				99,337				16,767				—
Total assets					70,154,482				640,393,632				973,401,068				137,286,629
Liabilities
Bank overdraft					—				—				—				337,516
Reverse repurchase agreements					—				180,802,432				207,791,057				—
Loan payable					18,000,000				—				—				28,000,000
Cash received as collateral for swaps					—				1,100,000				6,700,000				—
Cash received as collateral for reverse repurchase agreements					—				—				420,000				—
Investments purchased payable					2,832,853				34,977,401				147,730,464				4,092,370
TBA sale commitments at value4					—				8,696,625				108,850,082				—
Unrealized depreciation on swaps					11,053				361,123				10,587,370				15,157
Options written at value5					9,362				2,733,396				—				29,046
Swap premiums received					209,283				330,779				225,876				297,770
Swaps payable					858				666,035				1,111,577				9,129
Investment advisory fees payable					44,900				187,243				243,836				75,185
Borrowed bonds6					—				—				853,526				—
Interest expense payable					12,035				94,683				45,836				19,261
Officer’s and Trustees’ fees payable					13,311				95,553				99,505				12,268
Income dividends payable					—				49,992				111,430				—
Variation margin payable					—				—				149,679				—
Administration fees payable					4,992				31,209				56,339				—
Unrealized depreciation on foreign currency exchange contracts					2,598				23,321				—				4,337
Other liabilities					—				879,346				—				—
Other accrued expenses payable					78,352				159,797				154,941				88,336
Total liabilities					21,219,597				231,188,935				485,131,518				32,980,375
Net Assets				$	48,934,885			$	409,204,697			$	488,269,550			$	104,306,254
1 Investments at cost — unaffiliated				$	62,948,174			$	562,145,838			$	820,139,539			$	123,525,815
2 Investments at cost — affiliated				$	2,001,193				—			$	790,665			$	3,272,481
3 Foreign currency at cost				$	11,506			$	23,179				—			$	65,244
4 Proceeds from TBA sale commitments					—			$	8,690,719			$	108,711,141				—
5 Premiums received				$	18,225			$	3,446,468				—			$	45,000
6 Borrowed bonds — cost					—				—			$	842,347				—

See Notes to Financial Statements.

120

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Statements of Assets and Liabilities (concluded)

February 28, 2013 (Unaudited)				BlackRock High Yield Trust (BHY)				BlackRock Income Opportunity Trust, Inc. (BNA)				BlackRock Income Trust, Inc. (BKT)				BlackRock Strategic Bond Trust (BHD)
Net Assets Consist of
Paid-in capital7,8,9				$	58,179,449			$	402,924,496			$	478,542,248			$	98,547,751
Cost of shares held in the treasury10					—				(17,377,850	)			—				—
Undistributed net investment income					200,744				5,361,903				2,970,779				623,475
Accumulated net realized loss					(12,691,635	)			(21,503,257	)			(2,157,480	)			(2,728,146	)
Net unrealized appreciation/depreciation					3,246,327				39,799,405				8,914,003				7,863,174
Net Assets				$	48,934,885			$	409,204,697			$	488,269,550			$	104,306,254
Net asset value per share				$	7.61			$	11.88			$	7.64			$	14.76
7  Par value per share				$	0.001			$	0.01			$	0.01			$	0.001
8  Shares outstanding					6,430,618				34,456,370				63,942,535				7,065,121
9  Shares authorized					unlimited				200 million				200 million				unlimited
10 Shares held in treasury					—				1,757,400				—				—

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

121

Statements of Operations

Six Months Ended February 28, 2013 (Unaudited)				BlackRock Core Bond Trust (BHK)				BlackRock Corporate High Yield Fund V, Inc. (HYV)1				BlackRock Corporate High Yield Fund VI, Inc. (HYT)1				BlackRock High Income Shares (HIS)
Investment Income
Interest				$	14,036,307			$	19,902,069			$	20,785,080			$	5,893,517
Dividends — unaffiliated					112,500				769,377				840,690				56,653
Dividends — affiliated					1,715				893				872				402
Total income					14,150,522				20,672,339				21,626,642				5,950,572
Expenses
Investment advisory					1,656,990				1,786,245				2,168,937				611,926
Professional					60,096				63,997				70,110				39,182
Accounting services					43,015				65,095				67,270				35,730
Borrowing costs2					—				102,238				109,816				38,537
Custodian					27,607				41,299				48,301				18,704
Transfer agent					25,011				22,157				25,067				27,580
Officer and Trustees					24,502				27,647				30,076				7,411
Printing					11,413				12,335				12,314				6,218
Registration					4,556				5,571				5,950				9,255
Miscellaneous					16,971				47,732				43,189				6,523
Total expenses excluding interest expense and income tax					1,870,161				2,174,316				2,581,030				801,066
Interest expense					266,182				810,947				834,304				181,839
Income tax					—				4,230				4,230				—
Total expenses					2,136,343				2,989,493				3,419,564				982,905
Less fees waived by Manager					(91,160	)			(511	)			(481	)			(212	)
Total expenses after fees waived					2,045,183				2,988,982				3,419,083				982,693
Net investment income					12,105,339				17,683,357				18,207,559				4,967,879
Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:
Investments — unaffiliated					798,600				15,843,838				15,155,587				2,261,074
Capital gain distributions received from affiliated investment companies					72				114				110				33
Financial futures contracts					(487,641	)			(1,190,225	)			(1,244,415	)			(352,864	)
Foreign currency transactions					(927,467	)			(2,739,206	)			(2,876,970	)			(405,782	)
Options written					833,231				—				—				—
Swaps					22,253				1,037,844				1,071,254				43,127
Borrowed bonds					155,006				—				—				—
					394,054				12,952,365				12,105,566				1,545,588
Net change in unrealized appreciation/depreciation on:
Investments					(1,740,284	)			5,306,703				5,911,289				1,656,322
Financial futures contracts					(221,494	)			748,203				781,449				222,399
Foreign currency translations					901,402				2,544,773				2,682,440				267,007
Options written					662,437				76,812				80,357				—
Swaps					1,178,428				93,922				79,613				—
					780,489				8,770,413				9,535,148				2,145,728
Total realized and unrealized gain					1,174,543				21,722,778				21,640,714				3,691,316
Net Increase in Net Assets Resulting from Operations				$	13,279,882			$	39,406,135			$	39,848,273			$	8,659,195

1

Consolidated Statement of Operations.

2

See Note 6 of the Notes to Financial Statements for details of short-term borrowings.

See Notes to Financial Statements.

122

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Statements of Operations

Six Months Ended February 28, 2013 (Unaudited)				BlackRock High Yield Trust (BHY)				BlackRock Income Opportunity Trust, Inc. (BNA)				BlackRock Income Trust, Inc. (BKT)				BlackRock Strategic Bond Trust (BHD)
Investment Income
Interest				$	2,240,324			$	13,510,406			$	12,978,930			$	4,180,508
Dividends — unaffiliated					20,368				112,500				—				33,810
Dividends — affiliated					366				960				2,947				395
Total income					2,261,058				13,623,866				12,981,877				4,214,713
Expenses
Investment advisory					292,616				1,221,104				1,603,578				493,276
Administration					32,513				203,517				370,057				—
Professional					29,111				49,416				56,310				33,994
Accounting services					26,068				42,902				40,297				30,821
Borrowing costs1					9,903				—				—				23,122
Custodian					13,350				27,910				31,790				16,546
Transfer agent					16,379				31,707				61,609				15,097
Officer and Trustees					3,693				27,317				32,161				6,672
Printing					4,844				11,718				11,564				5,806
Registration					4,573				5,832				10,875				4,528
Miscellaneous					5,237				18,903				17,328				4,670
Total expenses excluding interest expense					438,287				1,640,326				2,235,569				634,532
Interest expense					82,687				274,835				289,520				136,901
Total expenses					520,974				1,915,161				2,525,089				771,433
Less fees waived by Manager					(199	)			(543	)			(1,707	)			(202	)
Total expenses after fees waived					520,775				1,914,618				2,523,382				771,231
Net investment income					1,740,283				11,709,248				10,458,495				3,443,482
Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:
Investments					1,455,975				2,578,180				(4,457,570	)			2,661,057
Capital gain distributions received from affiliated investment companies					12				26				94				22
Financial futures contracts					(133,577	)			(651,542	)			1,194,444				105,956
Foreign currency transactions					(139,649	)			(789,721	)			—				(490,157	)
Options written					—				829,609				—				27,072
Swaps					73,654				(401,629	)			226,694				25,595
Borrowed bonds					—				342,608				343,788				—
					1,256,415				1,907,531				(2,692,550	)			2,329,545
Net change in unrealized appreciation/depreciation on:
Investments					550,111				(3,707,486	)			(12,785,293	)			(208,512	)
Financial futures contracts					75,707				(135,736	)			625,431				(23,586	)
Foreign currency translations					112,393				886,296				—				419,459
Options written					8,863				663,827				—				(486	)
Swaps					23,252				1,596,722				(311,671	)			205,542
Borrowed bonds					—				—				661,354				—
					770,326				(696,377	)			(11,810,179	)			392,417
Total realized and unrealized gain (loss)					2,026,741				1,211,154				(14,502,729	)			2,721,962
Net Increase (Decrease) in Net Assets Resulting from Operations				$	3,767,024			$	12,920,402			$	(4,044,234	)		$	6,165,444

1

See Note 6 of the Notes to Financial Statements for details of short-term borrowings.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

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123

Statements of Changes in Net Assets

				BlackRock Core Bond Trust (BHK)												BlackRock High Income Shares (HIS)
Increase (Decrease) in Net Assets:				Six Months Ended February 28, 2013 (Unaudited)				Year Ended August 31, 2012								Six Months Ended February 28, 2013 (Unaudited)				Year Ended August 31, 2012
Operations
Net investment income				$	12,105,339			$	23,862,728							$	4,967,879			$	10,999,966
Net realized gain (loss)					394,054				12,725,546								1,545,588				(1,548,634	)
Net change in unrealized appreciation/depreciation					780,489				24,398,010								2,145,728				6,381,729
Net increase in net assets resulting from operations					13,279,882				60,986,284								8,659,195				15,833,061
Dividends to Shareholders From
Net investment income					(13,437,322	)			(22,212,928	)1							(5,707,816	)			(11,172,280	)1
Capital Share Transactions
Refund of offering costs previously charged to paid-in capital					—				—								—				2,126
Reinvestment of dividends					221,789				67,030								182,367				273,904
Net increase in net assets resulting from capital share transactions					221,789				67,030								182,367				276,030
Net Assets
Total increase in net assets					64,349				38,840,386								3,133,746				4,936,811
Beginning of period					411,135,843				372,295,457								123,745,357				118,808,546
End of period				$	411,200,192			$	411,135,843							$	126,879,103			$	123,745,357
Undistributed net investment income				$	6,052,344			$	7,384,327							$	1,549,178			$	2,289,115

Consolidated Statements of Changes in Net Assets

				BlackRock Corporate High Yield Fund V, Inc. (HYV)												BlackRock Corporate High Yield Fund VI, Inc. (HYT)
Increase (Decrease) in Net Assets:				Six Months Ended February 28, 2013 (Unaudited)				Year Ended August 31, 2012								Six Months Ended February 28, 2013 (Unaudited)				Year Ended August 31, 2012
Operations
Net investment income				$	17,683,357			$	35,444,739							$	18,207,559			$	36,665,376
Net realized gain (loss)					12,952,365				(2,168,911	)							12,105,566				(3,682,719	)
Net change in unrealized appreciation/depreciation					8,770,413				32,228,184								9,535,148				32,859,977
Net increase in net assets resulting from operations					39,406,135				65,504,012								39,848,273				65,842,634
Dividends to Shareholders From
Net investment income					(21,029,035	)			(35,208,709	)1							(21,096,527	)			(36,599,844	)1
Capital Share Transactions
Refund of offering costs previously charged to paid-in capital					—				—								—				8,495
Reinvestment of dividends					150,281				718,285								441,434				1,006,632
Net increase in net assets resulting from capital share transactions					150,281				718,285								441,434				1,015,127
Net Assets
Total increase in net assets					18,527,381				31,013,588								19,193,180				30,257,917
Beginning of period					416,701,017				385,687,429								435,955,023				405,697,106
End of period				$	435,228,398			$	416,701,017							$	455,148,203			$	435,955,023
Undistributed net investment income				$	4,434,679			$	7,780,357							$	5,837,020			$	8,725,988

1

Dividends are determined in accordance with federal income tax regulations.

See Notes to Financial Statements.

124

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Statements of Changes in Net Assets

				BlackRock High Yield Trust (BHY)												BlackRock Income Opportunity Trust, Inc. (BNA)
Increase (Decrease) in Net Assets:				Six Months Ended February 28, 2013 (Unaudited)				Year Ended August 31, 2012								Six Months Ended February 28, 2013 (Unaudited)				Year Ended August 31, 2012
Operations
Net investment income				$	1,740,283			$	3,397,215							$	11,709,248			$	23,112,371
Net realized gain					1,256,415				793,181								1,907,531				10,895,929
Net change in unrealized appreciation/depreciation					770,326				2,402,266								(696,377	)			25,143,570
Net increase in net assets resulting from operations					3,767,024				6,592,662								12,920,402				59,151,870
Dividends to Shareholders From
Net investment income					(1,716,806	)			(3,374,830	)1							(11,784,079	)			(22,258,816	)1
Capital Share Transactions
Reinvestment of dividends					8,274				14,323								—				—
Net Assets
Total increase in net assets					2,058,492				3,232,155								1,136,323				36,893,054
Beginning of period					46,876,393				43,644,238								408,068,374				371,175,320
End of period				$	48,934,885			$	46,876,393							$	409,204,697			$	408,068,374
Undistributed net investment income				$	200,744			$	177,267							$	5,361,903			$	5,436,734

				BlackRock Income Trust, Inc. (BKT)												BlackRock Strategic Bond Trust (BHD)
Increase (Decrease) in Net Assets:				Six Months Ended February 28, 2013 (Unaudited)				Year Ended August 31, 2012								Six Months Ended February 28, 2013 (Unaudited)				Year Ended August 31, 2012
Operations
Net investment income				$	10,458,495			$	24,774,308							$	3,443,482			$	6,983,209
Net realized gain (loss)					(2,692,550	)			13,620,770								2,329,545				1,329,497
Net change in unrealized appreciation/depreciation					(11,810,179	)			(8,999,000	)							392,417				5,886,978
Net increase (decrease) in net assets resulting from operations					(4,044,234	)			29,396,078								6,165,444				14,199,684
Dividends and Distributions to Shareholders From
Net investment income					(15,538,036	)			(17,586,939	)2							(3,630,533	)			(7,652,086	)1
Net realized gain					—				(12,721,826	)2							—				—
Decrease in net assets resulting from dividends and distributions to shareholders					(15,538,036	)			(30,308,765	)							(3,630,533	)			(7,652,086	)
Capital Share Transactions
Reinvestment of dividends					—				—								46,856				50,250
Net Assets
Total decrease in net assets					(19,582,270	)			(912,687	)							2,581,767				6,597,848
Beginning of period					507,851,820				508,764,507								101,724,487				95,126,639
End of period				$	488,269,550			$	507,851,820							$	104,306,254			$	101,724,487
Undistributed net investment income				$	2,970,779			$	8,050,320							$	623,475			$	810,526

1

Dividends are determined in accordance with federal income tax regulations.

2

Dividends and distributions are determined in accordance with federal income tax regulations.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

125

Statements of Cash Flows

Six Months Ended February 28, 2013 (Unaudited)				BlackRock Core Bond Trust (BHK)				BlackRock Corporate High Yield Fund V, Inc. (HYV)1				BlackRock Corporate High Yield Fund VI, Inc. (HYT)1				BlackRock High Income Shares (HIS)
Cash Provided by Operating Activities
Net increase in net assets resulting from operations				$	13,279,882			$	39,406,135			$	39,848,273			$	8,659,195
Adjustments to reconcile net increase in net assets resulting from operations to net cash used for operating activities:
(Increase) decrease in interest receivable					(167,454	)			440,587				524,481				47,159
(Increase) decrease in swaps receivable					91,141				(63,147	)			(61,906	)			—
Increase in other assets					(30,391	)			—				—				—
Increase in prepaid expenses					(19,201	)			(6,558	)			(6,757	)			(3,533	)
(Increase) decrease in dividends receivable					—				1,546				(371	)			—
Increase in variation margin receivable					(16,176	)			(9,125	)			(9,625	)			(3,125	)
(Increase) decrease in cash pledged as collateral for financial futures contracts					(423,000	)			424,000				441,000				86,000
Decrease in cash pledged as collateral for swaps					4,180,000				—				—				—
Decrease in cash pledged as collateral for reverse repurchase agreements					27,381				—				—				—
Decrease in investment advisory fees payable					(21,384	)			(18,524	)			(23,493	)			(8,577	)
Increase in interest expense payable					27,610				66,977				68,937				20,604
Decrease in other accrued expenses payable					(5,869	)			(48,803	)			(26,236	)			(12,230	)
Decrease in variation margin payable					—				(69,600	)			(72,800	)			(21,600	)
Increase (decrease) in swaps payable					383,228				(78,215	)			(83,517	)			—
Increase in Officer’s and Trustees’ fees payable					1,421				17,770				19,742				1,809
Increase (decrease) in cash received as collateral for swaps					(100,000	)			600,000				600,000				—
Decrease in cash received as collateral for reverse repurchase agreements					(590,475	)			—				—				—
Net periodic and termination payments of swaps					229,525				2,554,799				2,641,126				43,127
Net realized and unrealized gain on investments					(2,730,358	)			(23,823,358	)			(24,925,651	)			(4,135,089	)
Amortization of premium and accretion of discount on investments					2,172,048				(734,827	)			(49,369	)			(84,191	)
Premiums received from options written					5,066,398				157,950				165,240				—
Proceeds from sales of long-term investments					390,405,852				242,463,197				255,726,999				67,437,159
Purchases of long-term investments					(389,406,029	)			(237,301,794	)			(248,773,738	)			(66,923,392	)
Proceeds from borrowed bond transactions					12,005,469				—				—				—
Payments for borrowed bond transactions					(11,850,463	)			—				—				—
Net proceeds from sales (purchases) of short-term securities					(2,143,100	)			(4,128,668	)			(4,840,770	)			(2,757,840	)
Premiums paid on closing options written					(9,490,509	)			—				—				—
Cash provided by operating activities					10,875,546				19,850,342				21,161,565				2,345,476
Cash Used for Financing Activities
Net borrowing of reverse repurchase agreements					755,038				—				—				—
Cash receipts from borrowings					—				99,000,000				102,000,000				28,000,000
Cash payments on borrowings					—				(100,000,000	)			(105,000,000	)			(26,000,000	)
Cash dividends paid to shareholders					(13,161,013	)			(20,808,322	)			(20,566,595	)			(5,525,449	)
Increase in bank overdraft					—				138,781				307,820				—
Cash used for financing activities					(12,405,975	)			(21,669,541	)			(23,258,775	)			(3,525,449	)
Cash Impact from Foreign Exchange Fluctuations
Cash impact from foreign exchange fluctuations					(29,111	)			(505	)			(3,489	)			(1,473	)
Cash and Foreign Currency
Net increase in cash and foreign currency					(1,559,540	)			(1,819,704	)			(2,100,699	)			(1,181,446	)
Cash and foreign currency at beginning of period					1,779,246				1,825,285				2,418,110				1,213,167
Cash and foreign currency at end of period				$	219,706			$	5,581			$	317,411			$	31,721
Cash Flow Information
Cash paid during the period for interest				$	238,572			$	743,970			$	765,367			$	161,235
Non-cash Financing Activities
Capital shares issued in reinvestment of dividends				$	221,789			$	150,281			$	441,434			$	182,367

1

Consolidated Statement of Cash Flows.

See Notes to Financial Statements.

126

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Statements of Cash Flows

Six Months Ended February 28, 2013 (Unaudited)				BlackRock High Yield Trust (BHY)				BlackRock Income Opportunity Trust Inc. (BNA)				BlackRock Income Trust, Inc. (BKT)				BlackRock Strategic Bond Trust (BHD)
Cash Provided by (Used for) Operating Activities
Net increase (decrease) in net assets resulting from operations				$	3,767,024			$	12,920,402			$	(4,044,234	)		$	6,165,444
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used for) operating activities:
(Increase) decrease in interest receivable					57,473				(52,860	)			(149,051	)			78,264
(Increase) decrease in swaps receivable					(13,705	)			100,390				69,020				(16,353	)
Increase in other assets					—				(99,337	)			(16,767	)			—
Increase in prepaid expenses					(1,425	)			(1,842	)			(987	)			(3,695	)
Increase in dividends receivable					(40	)			—				—				—
Increase in variation margin receivable					(1,000	)			(26,612	)			—				(2,434	)
(Increase) decrease in cash pledged as collateral for financial futures contracts					8,000				198,000				(623,000	)			—
(Increase) derease in cash pledged as collateral for reverse repurchase agreements					—				(94,837	)			50,000				—
(Increase) decrease in cash pledged as collateral for swaps					—				4,110,000				(1,400,000	)			20,000
Decrease in investment advisory fees payable					(3,632	)			(17,795	)			(35,876	)			(5,081	)
Increase in interest expense payable					7,051				39,487				13,108				18,171
Decrease in administration fees payable					(402	)			(2,976	)			(8,250	)			—
Decrease in other accrued expenses payable					(11,915	)			(19,144	)			(24,755	)			(7,921	)
Decrease in variation margin payable					(7,200	)			(36,766	)			(937,600	)			(14,398	)
Increase (decrease) in swaps payable					(20,058	)			405,864				(47,093	)			3,168
Increase (decrease) in Officer’s and Trustees’ fees payable					1,558				5,927				(540	)			2,041
Increase in cash received as collateral for reverese repurchase agreements					—				(127,000	)			420,000				—
Increase (decrease) in cash received as collateral for swaps					—				(100,000	)			2,600,000				—
Net periodic and termination payments of swaps					260,099				(194,576	)			213,051				334,402
Net realized and unrealized (gain) loss on investments					(2,186,715	)			(2,583,504	)			17,300,030				(3,065,268	)
Amortization of premium and accretion of discount on investments					3,375				2,461,762				5,484,056				58,233
Premiums received from options written					18,225				5,072,909				—				143,425
Proceeds from sales of long-term investments					25,299,243				393,992,380				1,579,169,796				33,761,253
Purchases of long-term investments					(23,683,345	)			(388,140,937	)			(1,672,359,053	)			(30,620,607	)
Proceeds from borrowed bond transactions					—				13,456,176				41,962,393				—
Payments for borrowed bond transactions					—				(13,113,568	)			(59,828,221	)			—
Net proceeds from sales (purchases) of short-term securities					(796,225	)			1,343,014				19,658,846				(3,272,481	)
Premiums paid on closing options written					—				(9,491,046	)			—				(158,423	)
Cash provided by (used for) operating activities					2,696,386				20,003,511				(72,535,127	)			3,417,740
Cash Provided by (Used for) Financing Activities
Net borrowing of reverse repurchase agreements					—				(7,252,913	)			88,084,978				—
Cash receipts from borrowings					12,000,000				—				—				21,000,000
Cash payments on borrowings					(13,000,000	)			—				—				(23,000,000	)
Cash dividends paid to shareholders					(1,708,532	)			(11,788,309	)			(15,549,851	)			(3,583,677	)
Increase in bank overdraft					—				—				—				337,516
Cash provided by (used for) financing activities					(2,708,532	)			(19,041,222	)			72,535,127				(5,246,161	)
Cash Impact from Foreign Exchange Fluctuations
Cash impact from foreign exchange fluctuations					(688	)			(7,427	)		—					(2,024	)
Cash and Foreign Currency
Net increase (decrease) in cash and foreign currency					(12,834	)			954,862			—					(1,830,445	)
Cash and foreign currency at beginning of period					24,065				873,136			—					1,893,941
Cash and foreign currency at end of period				$	11,231			$	1,827,998			—				$	63,496
Cash Flow Information
Cash paid during the period for interest				$	75,636			$	235,348			$	276,412			$	118,473
Non-cash Financing Activities
Capital shares issued in reinvestment of dividends				$	8,274			—				—				$	46,856

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

127

Financial Highlights	BlackRock Core Bond Trust (BHK)

				Six Months Ended February 28, 2013 (Unaudited)				Year Ended August 31,																Period November 1, 2007 to August 31, 2008				Year Ended October 31, 2007
								2012				2011				2010				2009
Per Share Operating Performance
Net asset value, beginning of period				$	15.21			$	13.78			$	14.19			$	12.56			$	12.81			$	13.63			$	13.82
Net investment income					0.45	1			0.88	1			0.83	1			0.87	1			0.80	1			0.50	1			0.74
Net realized and unrealized gain (loss)					0.05				1.37				(0.36	)			1.76				(0.28	)			(0.69	)			(0.13	)
Net increase (decrease) from investment operations					0.50				2.25				0.47				2.63				0.52				(0.19	)			0.61
Dividends and distributions from:
Net investment income					(0.50	)			(0.82	)2			(0.88	)2			(1.00	)2			(0.77	)2			(0.61	)2			(0.61	)2
Tax return of capital					—				—				—				—				—				(0.02	)2			(0.19	)2
Total dividends and distributions					(0.50	)			(0.82	)			(0.88	)			(1.00	)			(0.77	)			(0.63	)			(0.80	)
Net asset value, end of period				$	15.21			$	15.21			$	13.78			$	14.19			$	12.56			$	12.81			$	13.63
Market price, end of period				$	14.99			$	15.41			$	12.69			$	13.92			$	11.98			$	11.51			$	12.23
Total Investment Return3
Based on net asset value					3.30%	4			17.06%				4.02%				22.44%				5.28%				(1.00)%	4			5.04%
Based on market price					0.49%	4			28.78%				(2.35)%				25.93%				11.76%				(0.87)%	4			1.29%
Ratios to Average Net Assets
Total expenses					1.04%	5			0.95%				1.02%				1.18%				1.06%				2.29%	5			1.60%
Total expenses after fees waived and paid indirectly					1.00%	5			0.94%				1.02%				1.18%				1.06%				2.29%	5			1.60%
Total expenses after fees waived and paid indirectly and excluding interest expense and fees					0.87%	5			0.86%				0.93%				0.95%				0.83%				0.89%	5			0.78%
Net investment income					5.91%	5			6.13%				6.05%				6.62%				7.09%				4.55%	5			5.36%
Supplemental Data
Net assets, end of period (000)				$	411,200			$	411,136			$	372,295			$	383,540			$	339,524			$	346,177			$	368,335
Borrowings outstanding, end of period (000)				$	183,434			$	182,679			$	152,301			$	168,938			$	74,572			$	107,690			$	103,354
Average borrowings outstanding, during the period (000)				$	195,158			$	143,234			$	151,080			$	162,760			$	73,467			$	134,784			$	44,786
Portfolio turnover					63%	6			290%	7			824%	8			641%	9			315%	10			598%	11			122%
Asset coverage, end of period per $1,000				$	3,242			$	3,251			$	3,444			$	3,270			$	5,553			$	4,215			$	4,564

1

Based on average shares outstanding.

2

Dividends and distributions are determined in accordance with federal income tax regulations.

3

Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

4

Aggregate total investment return.

5

Annualized.

6

Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 42%.

7

Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 237%.

8

Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 544%.

9

Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 534%.

10

Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 184%.

11

Includes TBA transactions. Excluding these transactions, the portfolio turnover would have been 337%.

See Notes to Financial Statements.

128

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FEBRUARY 28, 2013

Financial Highlights	BlackRock Corporate High Yield Fund V, Inc. (HYV)

				Six Months Ended February 28, 20131 (Unaudited)				Year Ended August 31,
								20121				2011				2010				2009				2008
Per Share Operating Performance
Net asset value, beginning of period				$	12.63			$	11.71			$	11.61			$	9.71			$	11.94			$	13.83
Net investment income2					0.54				1.08				1.09				1.06				1.07				1.18
Net realized and unrealized gain (loss)					0.65				0.91				0.07				1.86				(2.10	)			(1.85	)
Net increase (decrease) from investment operations					1.19				1.99				1.16				2.92				(1.03	)			(0.67	)
Dividends and distributions from:
Net investment income					(0.64	)			(1.07	)3			(1.06	)3			(1.02	)3			(1.20	)3			(1.17	)3
Net realized gain					—				—				—				—				—				(0.05	)3
Total dividends and distributions					(0.64	)			(1.07	)			(1.06	)			(1.02	)			(1.20	)			(1.22	)
Net asset value, end of period				$	13.18			$	12.63			$	11.71			$	11.61			$	9.71			$	11.94
Market price, end of period				$	13.09			$	13.51			$	11.55			$	11.40			$	9.32			$	10.15
Total Investment Return4
Based on net asset value					9.62%	5			17.92%				10.29%				31.40%				(3.83)%				(3.99)%
Based on market price					1.78%	5			27.88%				10.79%				34.42%				8.59%				(7.78)%
Ratios to Average Net Assets
Total expenses					1.41%	6			1.42%				1.34%				1.26%				1.84%				2.11%
Total expenses after fees waived and paid indirectly					1.41%	6			1.42%				1.34%				1.26%				1.84%				2.11%
Total expenses after fees waived and paid indirectly and excluding interest expense and income tax					1.03%	6,7			1.08%	8			1.02%				0.99%				1.16%				0.97%
Net investment income					8.35%	6			8.96%				8.82%				9.52%				13.00%				9.16%
Supplemental Data
Net assets, end of period (000)				$	435,228			$	416,701			$	385,687			$	382,603			$	320,045			$	393,389
Borrowings outstanding, end of period (000)				$	174,000			$	175,000			$	129,000			$	92,000			$	54,000			$	94,700
Average borrowings outstanding, during the period (000)				$	173,282			$	140,036			$	119,652			$	79,427			$	65,403			$	106,140
Portfolio turnover					40%				61%				87%				90%				65%				46%
Asset coverage, end of period per $1,000				$	3,501			$	3,381			$	3,990			$	5,159			$	6,927			$	5,154

1

Consolidated Financial Highlights.

2

Based on average shares outstanding.

3

Dividends and distributions are determined in accordance with federal income tax regulations.

4

Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

5

Aggregate total investment return.

6

Annualized.

7

For the six months ended February 28, 2013, the total expense ratio after fees waived and paid indirectly and excluding interest expense, borrowing costs and income tax was 0.98%.

8

For the year ended August 31, 2012, the total expense ratio after fees waived and paid indirectly and excluding interest expense and borrowing costs was 0.99%.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

129

Financial Highlights	BlackRock Corporate High Yield Fund VI, Inc. (HYT)

				Six Months Ended February 28, 20131 (Unaudited)				Year Ended August 31,
								20121				2011				2010				2009				2008
Per Share Operating Performance
Net asset value, beginning of period				$	12.32			$	11.49			$	11.38			$	9.68			$	11.89			$	13.81
Net investment income2					0.51				1.04				1.06				1.05				1.05				1.16
Net realized and unrealized gain (loss)					0.62				0.83				0.05				1.67				(2.07	)			(1.87	)
Net increase (decrease) from investment operations					1.13				1.87				1.11				2.72				(1.02	)			(0.71	)
Dividends from net investment income					(0.60	)			(1.04	)3			(1.00	)3			(1.02	)3			(1.19	)3			(1.21	)3
Net asset value, end of period				$	12.85			$	12.32			$	11.49			$	11.38			$	9.68			$	11.89
Market price, end of period				$	12.72			$	12.96			$	11.21			$	11.19			$	9.47			$	10.14
Total Investment Return4
Based on net asset value					9.31%	5			17.14%				9.95%				29.26%				(4.03)%				(4.30)%
Based on market price					2.86%	5			26.30%				9.09%				29.92%				10.09%				(7.24)%
Ratios to Average Net Assets
Total expenses					1.54%	6			1.51%				1.41%				1.34%				2.01%				2.24%
Total expenses after fees waived and paid indirectly					1.54%	6			1.51%				1.41%				1.34%				2.01%				2.24%
Total expenses after fees waived and paid indirectly and excluding interest expense and income tax					1.17%	6,7			1.19%	8			1.12%				1.09%				1.28%				1.10%
Net investment income					8.22%	6			8.84%				8.80%				9.52%				12.82%				9.02%
Supplemental Data
Net assets, end of period (000)				$	455,148			$	435,955			$	405,697			$	401,760			$	341,415			$	419,502
Borrowings outstanding, end of period (000)				$	178,000			$	181,000			$	130,000			$	89,000			$	58,000			$	110,900
Average borrowings outstanding, during the period (000)				$	178,282			$	142,342			$	115,512			$	76,356			$	73,784			$	113,996
Portfolio turnover					41%				61%				87%				85%				60%				45%
Asset coverage, end of period per $1,000				$	3,557			$	3,409			$	4,121			$	5,514			$	6,886			$	4,783

1

Consolidated Financial Highlights.

2

Based on average shares outstanding.

3

Dividends are determined in accordance with federal income tax regulations.

4

Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

5

Aggregate total investment return.

6

Annualized.

7

For the six months ended February 28, 2013, the total expense ratio after fees waived and paid indirectly and excluding interest expense, borrowing costs and income tax was 1.12%.

8

For the year ended August 31, 2012, the total expense ratio after fees waived and paid indirectly and excluding interest expense and borrowing costs was 1.09%.

See Notes to Financial Statements.

130

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

Financial Highlights	BlackRock High Income Shares (HIS)

				Six Months Ended February 28, 2013 (Unaudited)				Year Ended August 31,																Period January 1, 2008 to August 31, 2008				Year Ended December 31, 2007
								2012				2011				2010				2009
Per Share Operating Performance
Net asset value, beginning of period				$	2.26			$	2.18			$	2.19			$	1.85			$	2.23			$	2.47			$	2.68
Net investment income					0.09	1			0.20	1			0.20	1			0.20	1			0.19	1			0.15	1			0.24
Net realized and unrealized gain (loss)					0.06				0.08				—				0.31				(0.36	)			(0.26	)			(0.21	)
Net increase (decrease) from investment operations					0.15				0.28				0.20				0.51				(0.17	)			(0.11	)			0.03
Dividends from net investment income					(0.10	)			(0.20	)2			(0.21	)2			(0.17	)2			(0.21	)2			(0.13	)2			(0.24	)2
Net asset value, end of period				$	2.31			$	2.26			$	2.18			$	2.19			$	1.85			$	2.23			$	2.47
Market price, end of period				$	2.42			$	2.40			$	2.10			$	2.09			$	1.68			$	1.88			$	2.14
Total Investment Return3
Based on net asset value					6.92%	4			13.91%				9.56%				28.95%				(3.01)%				(4.00)%	4			1.58%
Based on market price					5.48%	4			25.58%				10.59%				35.52%				4.47%				(6.59)%	4			(7.51)%
Ratios to Average Net Assets
Total expenses					1.58%	5			1.54%				1.49%				1.49%				2.01%				1.98%	5			3.56%
Total expenses after fees waived and paid indirectly					1.58%	5			1.54%				1.49%				1.49%				2.01%				1.98%	5			3.55%
Total expenses after fees waived and paid indirectly and excluding interest expense					1.28%	5,6			1.29%	6			1.25%				1.27%				1.41%				1.05%	5			1.27%
Net investment income					7.97%	5			9.19%				8.66%				9.34%				12.06%				9.52%	5			8.89%
Supplemental Data
Net assets applicable, end of period (000)				$	126,879			$	123,745			$	118,809			$	119,642			$	100,921			$	121,808			$	135,098
Borrowings outstanding, end of period (000)				$	44,000			$	42,000			$	29,000			$	25,000			$	18,000			$	27,000			$	46,000
Average borrowings outstanding, during the period (000)				$	38,862			$	30,746			$	26,729			$	21,027			$	21,220			$	27,069			$	55,868
Portfolio turnover					41%				63%				90%				85%				55%				25%				69%
Asset coverage, end of period per $1,000				$	3,884			$	3,946			$	5,097			$	5,786			$	6,607			$	5,512			$	3,937

1

Based on average shares outstanding.

2

Dividends are determined in accordance with federal income tax regulations.

3

Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

4

Aggregate total investment return.

5

Annualized.

6

For the six months ended February 28, 2013 and the year ended August 31, 2012, the total expense ratio after fees waived and paid indirectly and excluding interest expense and borrowing costs were 1.22% and 1.19%, respectively.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

131

Financial Highlights	BlackRock High Yield Trust (BHY)

				Six Months Ended February 28, 2013 (Unaudited)				Year Ended August 31,																Period November 1, 2007 to August 31, 2008				Year Ended October 31, 2007
								2012				2011				2010				2009
Per Share Operating Performance
Net asset value, beginning of period				$	7.29			$	6.79			$	6.69			$	5.78			$	6.84			$	7.91			$	7.85
Net investment income					0.27	1			0.53	1			0.51	1			0.51	1			0.51	1			0.50	1			0.63
Net realized and unrealized gain (loss)					0.32				0.50				0.11				0.92				(1.00	)			(1.06	)			0.04
Net increase (decrease) from investment operations					0.59				1.03				0.62				1.43				(0.49	)			(0.56	)			0.67
Dividends and distributions from:
Net investment income					(0.27	)			(0.53	)2			(0.51	)2			(0.50	)2			(0.55	)2			(0.51	)2			(0.61	)2
Tax return of capital					—				—				(0.01	)2			(0.02	)2			(0.02	)2			—				—
Total dividends and distributions					(0.27	)			(0.53	)			(0.52	)			(0.52	)			(0.57	)			(0.51	)			(0.61	)
Net asset value, end of period				$	7.61			$	7.29			$	6.79			$	6.69			$	5.78			$	6.84			$	7.91
Market price, end of period				$	8.08			$	8.04			$	6.60			$	6.44			$	5.84			$	5.96			$	6.92
Total Investment Return3
Based on net asset value					8.14%	4			15.70%				9.66%				25.70%				(5.30)%				(6.47)%	4			9.03%
Based on market price					4.11%	4			31.27%				10.73%				19.76%				9.81%				(6.85)%	4			(3.63)%
Ratios to Average Net Assets
Total expenses					2.19%	5			2.01%				2.04%				2.10%				2.61%				2.61%	5			4.16%
Total expenses after fees waived and paid indirectly					2.19%	5			2.01%				2.04%				2.10%				2.61%				2.61%	5			4.14%
Total expenses after fees waived and paid indirectly and excluding interest expense and fees					1.84%	5,6			1.79%	6			1.85%				1.91%				2.16%				1.77%	5			2.10%
Net investment income					7.32%	5			7.59%				7.18%				7.89%				10.22%				8.34%	5			7.84%
Supplemental Data
Net assets, end of period (000)				$	48,935			$	46,876			$	43,644			$	42,980			$	37,137			$	43,897			$	50,782
Borrowings outstanding, end of period (000)				$	18,000			$	19,000			$	6,000			$	8,000			$	4,000			$	6,250			$	9,250
Average borrowings outstanding, during the period (000)				$	17,657			$	10,615			$	7,427			$	6,427			$	5,223			$	7,443			$	17,710
Portfolio turnover					40%				59%				81%				80%				54%				34%				69%
Asset coverage, end of period per $1,000				$	3,719			$	3,467			$	8,274			$	6,373			$	10,284			$	8,023			$	6,490

1

Based on average shares outstanding.

2

Dividends and distributions are determined in accordance with federal income tax regulations.

3

Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

4

Aggregate total investment return.

5

Annualized.

6

For the six months ended February 28, 2013 and the year ended August 31, 2012, the total expense ratio after fees waived and paid indirectly and excluding interest expense and borrowing cost was 1.80% and 1.69%, respectively.

See Notes to Financial Statements.

132

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

Financial Highlights	BlackRock Income Opportunity Trust, Inc. (BNA)

				Six Months Ended February 28, 2013 (Unaudited)				Year Ended August 31,																Period November 1, 2007 to August 31, 2008				Year Ended October 31, 2007
								2012				2011				2010				2009
Per Share Operating Performance
Net asset value, beginning of period				$	11.84			$	10.77			$	11.07			$	10.02			$	10.35			$	11.02			$	11.17
Net investment income					0.34	1			0.67	1			0.63	1			0.59	1			0.59	1			0.53	1			0.62
Net realized and unrealized gain (loss)					0.04				1.05				(0.28	)			1.25				(0.31	)			(0.69	)			(0.11	)
Net increase (decrease) from investment operations					0.38				1.72				0.35				1.84				0.28				(0.16	)			0.51
Dividends and distributions from:
Net investment income					(0.34	)			(0.65	)2			(0.65	)2			(0.79	)2			(0.61	)2			(0.51	)2			(0.61	)2
Tax return of capital					—				—				—				—				—				—				(0.05	)2
Total dividends and distributions					(0.34	)			(0.65	)			(0.65	)			(0.79	)			(0.61	)			(0.51	)			(0.66	)
Net asset value, end of period				$	11.88			$	11.84			$	10.77			$	11.07			$	10.02			$	10.35			$	11.02
Market price, end of period				$	11.20			$	11.58			$	9.85			$	10.56			$	9.65			$	9.82			$	10.19
Total Investment Return3
Based on net asset value					3.33%	4			16.81%				3.91%				19.83%				3.90%				(1.07)%	4			5.11%
Based on market price					(0.39)%	4			24.92%				(0.37)%				18.69%				5.46%				1.51%	4			2.62%
Ratios to Average Net Assets
Total expenses					0.94%	5			0.90%				0.95%				1.09%				0.95%				2.25%	5			2.01%
Total expenses after fees waived and paid indirectly					0.94%	5			0.90%				0.95%				1.09%				0.95%				2.25%	5			2.00%
Total expenses after fees waived and paid indirectly and excluding interest expense					0.81%	5			0.82%				0.85%				0.86%				0.85%				0.83%	5			0.87%
Net investment income					5.75%	5			5.97%				5.94%				5.81%				6.45%				5.89%	5			5.68%
Supplemental Data
Net assets, end of period (000)				$	409,205			$	408,068			$	371,175			$	381,379			$	345,101			$	356,456			$	379,605
Borrowings outstanding, end of period (000)				$	180,802			$	188,055			$	154,883			$	157,776			$	77,474			$	100,740			$	105,262
Average borrowings outstanding, during the period (000)				$	192,811			$	151,411			$	148,617			$	151,700			$	49,573			$	131,462			$	68,241
Portfolio turnover					64%	6			285%	7			774%	8			720%	9			270%	10			441%	11			196%
Asset coverage, end of period per $1,000				$	3,263			$	3,170			$	3,396			$	3,417			$	5,454			$	4,538			$	4,606

1

Based on average shares outstanding.

2

Dividends and distributions are determined in accordance with federal income tax regulations.

3

Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

4

Aggregate total investment return.

5

Annualized.

6

Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 42%.

7

Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 231%.

8

Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 492%.

9

Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 608%.

10

Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 165%.

11

Includes TBA transactions. Excluding these transactions, the portfolio turnover would have been 168%.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

133

Financial Highlights	BlackRock Income Trust, Inc. (BKT)

				Six Months Ended February 28, 2013 (Unaudited)				Year Ended August 31,																Period November 1, 2007 to August 31, 2008				Year Ended October 31, 2007
								2012				2011				2010				2009
Per Share Operating Performance
Net asset value, beginning of period				$	7.94			$	7.96			$	7.76			$	7.12			$	6.94			$	6.53			$	6.48
Net investment income					0.16	1			0.39	1			0.35	1			0.20	1			0.28	1			0.26	1			0.30
Net realized and unrealized gain (loss)					(0.22	)			0.06				0.19				0.73				0.19				0.40				0.12
Net increase (decrease) from investment operations					(0.06	)			0.45				0.54				0.93				0.47				0.66				0.42
Dividends and distributions from:
Net investment income					(0.24	)			(0.27	)2			(0.34	)2			(0.26	)2			(0.29	)2			(0.25	)2			(0.29	)2
Net realized gain					—				(0.20	)2			—				(0.03	)2			—				—				—
Tax return of capital					—				—				—				—				—				—				(0.08	)2
Total dividends and distributions					(0.24	)			(0.47	)			(0.34	)			(0.29	)			(0.29	)			(0.25	)			(0.37	)
Net asset value, end of period				$	7.64			$	7.94			$	7.96			$	7.76			$	7.12			$	6.94			$	6.53
Market price, end of period				$	7.13			$	7.63			$	7.18			$	6.95			$	6.53			$	6.07			$	5.81
Total Investment Return3
Based on net asset value					(0.60)%	4			6.24%				7.70%				13.86%				7.64%				10.82%	4			7.06%
Based on market price					(3.47)%	4			13.19%				8.47%				11.19%				12.87%				8.94%	4			1.69%
Ratios to Average Net Assets
Total expenses					1.02%	5			0.97%				1.06%				1.05%				1.09%				1.63%	5			2.77%
Total expenses after fees waived and before fees paid indirectly					1.02%	5			0.97%				1.05%				1.02%				1.08%				1.63%	5			2.77%
Total expenses after fees waived and paid indirectly					1.02%	5			0.97%				1.05%				1.02%				1.08%				1.63%	5			2.76%
Total expenses after fees waived and paid indirectly and excluding interest expense					0.91%	5			0.90%				0.94%				0.92%				0.93%				0.91%	5			0.98%
Net investment income					4.24%	5			4.86%				4.43%				2.72%				4.09%				4.67%	5			4.60%
Supplemental Data
Net assets, end of period (000)				$	488,270			$	507,852			$	508,765			$	496,260			$	455,529			$	444,054			$	417,651
Borrowings outstanding, end of period (000)				$	207,791			$	119,706			$	233,676			$	106,985			$	11,815				—			$	33,895
Average borrowings outstanding, during the period (000)				$	180,117			$	183,890			$	116,771			$	23,316			$	537			$	61,777			$	93,325
Portfolio turnover					214%	6			487%	7			899%	8			883%	9			700%	10			263%	11			250%
Asset coverage, end of period per $1,000				$	3,350			$	5,242			$	3,177			$	5,639			$	39,555				—			$	13,322

1

Based on average shares outstanding.

2

Dividends and distributions are determined in accordance with federal income tax regulations.

3

Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

4

Aggregate total investment return.

5

Annualized.

6

Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 134%.

7

Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 230%.

8

Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 387%.

9

Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 207%.

10

Includes mortgage dollar roll transactions. Excluding these transactions, the portfolio turnover would have been 184%.

11

Includes TBA transactions. Excluding these transactions, the portfolio turnover would have been 0%.

See Notes to Financial Statements.

134

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

Financial Highlights	BlackRock Strategic Bond Trust (BHD)

				Six Months Ended February 28, 2013 (Unaudited)				Year Ended August 31,																Period November 1, 2007 to August 31, 2008				Year Ended October 31, 2007
								2012				2011				2010				2009
Per Share Operating Performance
Net asset value, beginning of period				$	14.40			$	13.48			$	13.57			$	12.12			$	12.76			$	13.80			$	13.83
Net investment income					0.49	1			0.99	1			1.06	1			1.01	1			0.93	1			0.76	1			0.95
Net realized and unrealized gain (loss)					0.38				1.01				(0.04	)			1.35				(0.69	)			(1.03	)			(0.06	)
Net increase (decrease) from investment operations					0.87				2.00				1.02				2.36				0.24				(0.27	)			0.89
Dividends and distributions from net investment income					(0.51	)			(1.08	)2			(1.11	)2			(0.91	)2			(0.88	)2			(0.77	)2			(0.92	)2
Net asset value, end of period				$	14.76			$	14.40			$	13.48			$	13.57			$	12.12			$	12.76			$	13.80
Market price, end of period				$	15.09			$	14.52			$	12.93			$	13.17			$	11.43			$	10.85			$	11.88
Total Investment Return3
Based on net asset value					6.12%	4			15.66%				8.09%				20.38%				3.99%				(1.19)%	4			7.26%
Based on market price					7.60%	4			21.58%				6.83%				23.88%				15.34%				(2.40)%	4			(0.62)%
Ratios to Average Net Assets
Total expenses					1.50%	5			1.45%				1.52%				1.13%				1.00%				0.93%	5			1.45%
Total expenses after fees waived and before fees paid indirectly					1.50%	5			1.45%				1.51%				1.11%				0.92%				0.82%	5			1.27%
Total expenses after fees waived and paid indirectly					1.50%	5			1.45%				1.51%				1.11%				0.92%				0.82%	5			1.27%
Total expenses after fees waived and paid indirectly and excluding interest expense and fees2					1.24%	5,6			1.24%	6			1.26%				1.04%				0.92%				0.81%	5			0.87%
Net investment income					6.71%	5			7.15%				7.59%				7.77%				8.67%				6.85%	5			6.86%
Supplemental Data
Net assets, end of period (000)				$	104,306			$	101,724			$	95,127			$	95,794			$	85,581			$	90,092			$	97,410
Borrowings outstanding, end of period (000)				$	28,000			$	30,000			$	24,000			$	12,000				—			$	1,571			$	413
Average borrowings outstanding during the period (000)				$	29,384			$	22,089			$	22,696			$	5,701			$	303			$	391			$	7,240
Portfolio turnover					25%				47%				72%				83%				61%				27%				34%
Asset coverage, end of period per $1,000				$	4,725			$	4,391			$	4,964			$	8,983				—			$	58,347			$	236,789

1

Based on average shares outstanding.

2

Dividends and distributions are determined in accordance with federal income tax regulations.

3

Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

4

Aggregate total investment return.

5

Annualized.

6

For the six months ended February 28, 2013 and the year ended August 31, 2012, the total expense ratio after fees waived and paid indirectly and excluding interest expense and borrowing cost were 1.19% and 1.14%, respectively.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

FEBRUARY 28, 2013

135

Notes to Financial Statements (Unaudited)